Delaware | 001-16167 | 43-1878297 |
State of Incorporation | (Commission File Number) | (IRS Employer Identification No.) |
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Emerging growth company o |
MONSANTO COMPANY | |
By: /s/ Christopher A. Martin | |
Name: Christopher A. Martin | |
Title: Assistant Secretary |
Exhibit No. | Description of Exhibit | |
99 | Press Release, dated June 28, 2017, issued by Monsanto Company |
Release | IMMEDIATELY |
Contact | Media: Christi Dixon (314-694-1092) |
Analysts: Laura Meyer (314-694-8148) |
• | Company delivers FY17 Q3 as-reported earnings per share of $1.90, $1.93 on an ongoing EPS basis |
• | Expects full-year 2017 EPS at the high end of the range of $4.09 to $4.55 on an as-reported basis, and confirms EPS at the high end of the range of $4.50 to $4.90 on an ongoing basis |
• | INTACTA RR2 PROTM soybeans reach more than 50 million acres across South America in FY17 on the way to its full 100-million-acre opportunity |
• | Positive grower reception in initial year of system availability as Roundup Ready 2 Xtend® soybeans reach 20 million U.S. acres; Bollgard II® XtendFlex® cotton on greater than five million acres |
• | Paid acres for Climate FieldViewTM platform surpasses 35 million in U.S., exceeding annual target |
Third Quarter | Nine Months | |||||||||||
($ in millions, except per share amounts) | 2017 | 2016 | 2017 | 2016 | ||||||||
Net Sales by Segment | ||||||||||||
Corn seed and traits | $ | 1,491 | $ | 1,592 | $ | 5,342 | $ | 5,024 | ||||
Soybean seed and traits | 896 | 693 | 2,358 | 1,913 | ||||||||
Cotton seed and traits | 338 | 285 | 562 | 370 | ||||||||
Vegetable seeds | 199 | 196 | 523 | 526 | ||||||||
All other crops seeds and traits | 208 | 441 | 381 | 590 | ||||||||
TOTAL Seeds and Genomics | $ | 3,132 | $ | 3,207 | $ | 9,166 | $ | 8,423 | ||||
Agricultural productivity | $ | 1,098 | $ | 982 | $ | 2,788 | $ | 2,517 | ||||
TOTAL Agricultural Productivity | $ | 1,098 | $ | 982 | $ | 2,788 | $ | 2,517 | ||||
TOTAL Net Sales | $ | 4,230 | $ | 4,189 | $ | 11,954 | $ | 10,940 | ||||
Gross Profit | $ | 2,386 | $ | 2,380 | $ | 6,597 | $ | 5,879 | ||||
Operating Expenses | $ | 1,222 | $ | 1,131 | $ | 3,322 | $ | 3,239 | ||||
Interest Expense – Net | $ | 83 | $ | 86 | $ | 285 | $ | 281 | ||||
Other Expense (Income)– Net | $ | 4 | $ | (35 | ) | $ | (41 | ) | $ | 160 | ||
Net Income Attributable to Monsanto Company | $ | 843 | $ | 717 | $ | 2,240 | $ | 1,527 | ||||
Diluted Earnings per Share | $ | 1.90 | $ | 1.63 | $ | 5.06 | $ | 3.40 | ||||
Items Affecting Comparability – EPS Impact (For definitions of adjustments to EPS, see note 1.) | ||||||||||||
Restructuring Charges | — | 0.02 | (0.03 | ) | 0.50 | |||||||
Environmental and Litigation Matters | (0.02 | ) | 0.02 | 0.02 | 0.04 | |||||||
Pending Bayer Transaction Related Costs | 0.05 | — | 0.27 | — | ||||||||
Argentine-Related Tax Matters | — | 0.50 | 0.03 | 0.49 | ||||||||
Income from Discontinued Operations | — | — | (0.03 | ) | (0.03 | ) | ||||||
Diluted Earnings per Share from Ongoing Business (For the definition of ongoing EPS, see note 1.) | $ | 1.93 | $ | 2.17 | $ | 5.32 | $ | 4.40 | ||||
Effective Tax Rate | 21 | % | 40 | % | 26 | % | 32 | % |
Third Quarter | Nine Months | ||||
Comparison as a Percent of Net Sales: | 2017 | 2016 | 2017 | 2016 | |
Gross profit | 56% | 57% | 55% | 54% | |
Selling, general and administrative expenses | 19% | 17% | 17% | 17% | |
Research and development expenses | 10% | 9% | 10% | 10% | |
Income from continuing operations before income taxes | 25% | 29% | 25% | 20% | |
Net income attributable to Monsanto Company | 20% | 17% | 19% | 14% |
($ in millions) | Net Sales | Gross Profit(A) | ||||||||||||||||||||||
Third Quarter | Nine Months | Third Quarter | Nine Months | |||||||||||||||||||||
Seeds and Genomics | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||
Corn seed and traits | $ | 1,491 | $ | 1,592 | $ | 5,342 | $ | 5,024 | $ | 922 | $ | 976 | $ | 3,389 | $ | 3,063 | ||||||||
Soybean seed and traits | 896 | 693 | 2,358 | 1,913 | 588 | 391 | 1,667 | 1,220 | ||||||||||||||||
Cotton seed and traits | 338 | 285 | 562 | 370 | 268 | 205 | 418 | 248 | ||||||||||||||||
Vegetable seeds | 199 | 196 | 523 | 526 | 99 | 108 | 267 | 244 | ||||||||||||||||
All other crops seeds and traits | 208 | 441 | 381 | 590 | 138 | 369 | 191 | 430 | ||||||||||||||||
TOTAL Seeds and Genomics | $ | 3,132 | $ | 3,207 | $ | 9,166 | $ | 8,423 | $ | 2,015 | $ | 2,049 | $ | 5,932 | $ | 5,205 |
($ in millions) | Earnings Before Interest & Taxes (EBIT) | ||||||||||||
Third Quarter | Nine Months | ||||||||||||
Seeds and Genomics | 2017 | 2016 | 2017 | 2016 | |||||||||
EBIT (For a reconciliation of EBIT, see note 1.)(A) | $ | 995 | $ | 1,094 | $ | 3,033 | $ | 2,258 | |||||
Items Affecting EBIT: | |||||||||||||
EBIT from Restructuring Charges | 1 | (14 | ) | 7 | (312 | ) | |||||||
EBIT from Pending Bayer Transaction Related Costs | (27 | ) | — | (162 | ) | — | |||||||
EBIT from Argentine-Related Tax Matters | 9 | — | 19 | — |
($ in millions) | Net Sales | Gross Profit(A) | ||||||||||||||||||||||
Third Quarter | Nine Months | Third Quarter | Nine Months | |||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Agricultural productivity | $ | 1,098 | $ | 982 | $ | 2,788 | $ | 2,517 | $ | 371 | $ | 331 | $ | 665 | $ | 674 | ||||||||
TOTAL Agricultural Productivity | $ | 1,098 | $ | 982 | $ | 2,788 | $ | 2,517 | $ | 371 | $ | 331 | $ | 665 | $ | 674 |
($ in millions) | Earnings Before Interest & Taxes (EBIT) | |||||||||||||
Third Quarter | Nine Months | |||||||||||||
Agricultural Productivity | 2017 | 2016 | 2017 | 2016 | ||||||||||
EBIT (For a reconciliation of EBIT, see note 1.)(A) | $ | 160 | $ | 187 | $ | 292 | $ | 253 | ||||||
Items Affecting EBIT: | ||||||||||||||
EBIT from Restructuring Charges | 2 | (2 | ) | 2 | (31 | ) | ||||||||
EBIT from Environmental and Litigation Matters | 6 | (16 | ) | (11 | ) | (28 | ) | |||||||
EBIT from SEC Settlement Matters | — | — | — | 4 | ||||||||||
EBIT from Pending Bayer Transaction Related Costs | (5 | ) | — | (29 | ) | — | ||||||||
EBIT from Argentine-Related Tax Matters | 2 | — | 3 | — | ||||||||||
EBIT from Discontinued Operations | — | — | 21 | 24 |
Statements of Consolidated Operations | Three Months Ended | Nine Months Ended | ||||||||||
May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | |||||||||
Net Sales | $ | 4,230 | $ | 4,189 | $ | 11,954 | $ | 10,940 | ||||
Cost of goods sold | 1,844 | 1,809 | 5,357 | 5,061 | ||||||||
Gross Profit | 2,386 | 2,380 | 6,597 | 5,879 | ||||||||
Operating Expenses: | ||||||||||||
Selling, general and administrative expenses | 789 | 729 | 2,031 | 1,858 | ||||||||
Research and development expenses | 417 | 387 | 1,168 | 1,091 | ||||||||
Restructuring charges | (17 | ) | 15 | (30 | ) | 290 | ||||||
Pending Bayer transaction related costs | 33 | — | 153 | — | ||||||||
Total Operating Expenses | 1,222 | 1,131 | 3,322 | 3,239 | ||||||||
Income from Operations | 1,164 | 1,249 | 3,275 | 2,640 | ||||||||
Interest expense | 100 | 100 | 338 | 332 | ||||||||
Interest income | (17 | ) | (14 | ) | (53 | ) | (51 | ) | ||||
Other expense (income), net | 4 | (35 | ) | (41 | ) | 160 | ||||||
Income from Continuing Operations Before Income Taxes | 1,077 | 1,198 | 3,031 | 2,199 | ||||||||
Income tax provision | 230 | 483 | 796 | 696 | ||||||||
Income from Continuing Operations Including Portion Attributable to Noncontrolling Interest | $ | 847 | $ | 715 | $ | 2,235 | $ | 1,503 | ||||
Discontinued Operations: | ||||||||||||
Income from operations of discontinued business | — | — | 21 | 24 | ||||||||
Income tax provision | — | — | 8 | 9 | ||||||||
Income from Discontinued Operations | — | — | 13 | 15 | ||||||||
Net Income | $ | 847 | $ | 715 | $ | 2,248 | $ | 1,518 | ||||
Less: Net income (loss) attributable to noncontrolling interest | 4 | (2 | ) | 8 | (9 | ) | ||||||
Net Income Attributable to Monsanto Company | $ | 843 | $ | 717 | $ | 2,240 | $ | 1,527 | ||||
Basic Earnings per Share Attributable to Monsanto Company: | ||||||||||||
Income from continuing operations | $ | 1.92 | $ | 1.64 | $ | 5.08 | $ | 3.40 | ||||
Income from discontinued operations | — | — | 0.03 | 0.03 | ||||||||
Net Income Attributable to Monsanto Company | $ | 1.92 | $ | 1.64 | $ | 5.11 | $ | 3.43 | ||||
Diluted Earnings per Share Attributable to Monsanto Company: | ||||||||||||
Income from continuing operations | $ | 1.90 | $ | 1.63 | $ | 5.03 | $ | 3.37 | ||||
Income from discontinued operations | — | — | 0.03 | 0.03 | ||||||||
Net Income Attributable to Monsanto Company | $ | 1.90 | $ | 1.63 | $ | 5.06 | $ | 3.40 | ||||
Weighted Average Shares Outstanding: | ||||||||||||
Basic | 439.1 | 437.1 | 438.6 | 444.2 | ||||||||
Diluted | 443.4 | 440.3 | 443.0 | 448.2 |
Statements of Consolidated Financial Position | As of | As of | ||||
May 31, 2017 | Aug. 31, 2016 | |||||
Assets | ||||||
Current Assets: | ||||||
Cash and cash equivalents (variable interest entity restricted - 2017: $58 and 2016: $122) | $ | 1,614 | $ | 1,676 | ||
Short-term investments | 6 | 60 | ||||
Trade receivables, net (variable interest entity restricted - 2017: $56 and 2016: $7) | 3,913 | 1,926 | ||||
Miscellaneous receivables | 763 | 755 | ||||
Inventory, net | 3,189 | 3,241 | ||||
Assets held for sale | 302 | 272 | ||||
Other current assets | 231 | 227 | ||||
Total Current Assets | 10,018 | 8,157 | ||||
Property, Plant and Equipment, net | 5,500 | 5,231 | ||||
Goodwill | 4,032 | 4,020 | ||||
Other Intangible Assets, Net | 1,045 | 1,125 | ||||
Noncurrent Deferred Tax Assets | 534 | 613 | ||||
Long-Term Receivables, Net | 117 | 101 | ||||
Other Assets | 512 | 489 | ||||
Total Assets | $ | 21,758 | $ | 19,736 | ||
Liabilities and Shareowners’ Equity | ||||||
Current Liabilities: | ||||||
Short-term debt, including current portion of long-term debt (variable interest entity restricted - 2017: $0 and 2016: $113) | $ | 2,611 | $ | 1,587 | ||
Accounts payable | 753 | 1,006 | ||||
Income taxes payable | 243 | 41 | ||||
Accrued compensation and benefits | 366 | 239 | ||||
Accrued marketing programs | 1,455 | 1,650 | ||||
Deferred revenue | 545 | 568 | ||||
Grower production accruals | 68 | 47 | ||||
Dividends payable | — | 237 | ||||
Customer payable | 37 | 123 | ||||
Restructuring reserves | 67 | 227 | ||||
Miscellaneous short-term accruals | 813 | 1,004 | ||||
Total Current Liabilities | 6,958 | 6,729 | ||||
Long-Term Debt (variable interest entity restricted - 2017: $98 and 2016: $0) | 7,246 | 7,453 | ||||
Postretirement Liabilities | 316 | 371 | ||||
Long-Term Deferred Revenue | 24 | 35 | ||||
Noncurrent Deferred Tax Liabilities | 122 | 68 | ||||
Long-Term Portion of Environmental and Litigation Liabilities | 213 | 200 | ||||
Long-Term Restructuring Reserves | 10 | 17 | ||||
Other Liabilities | 321 | 318 | ||||
Monsanto Shareowners’ Equity | 6,532 | 4,534 | ||||
Noncontrolling Interest | 16 | 11 | ||||
Total Shareowners’ Equity | 6,548 | 4,545 | ||||
Total Liabilities and Shareowners’ Equity | $ | 21,758 | $ | 19,736 |
Statements of Consolidated Cash Flows | Nine Months Ended | |||||
May 31, 2017 | May 31, 2016 | |||||
Operating Activities: | ||||||
Net Income | $ | 2,248 | $ | 1,518 | ||
Adjustments to reconcile cash provided by operating activities: | ||||||
Items that did not require (provide) cash: | ||||||
Depreciation and amortization | 549 | 542 | ||||
Bad-debt expense | 61 | 81 | ||||
Stock-based compensation expense | 94 | 88 | ||||
Excess tax benefits from stock-based compensation | (6 | ) | (13 | ) | ||
Deferred income taxes | 83 | 168 | ||||
Restructuring impairments | 40 | 119 | ||||
Equity affiliate expense, net | 6 | 6 | ||||
Net gain on sale of a business or other assets | (88 | ) | (31 | ) | ||
Other items | 80 | 141 | ||||
Changes in assets and liabilities that (required) provided cash, net of acquisitions: | ||||||
Trade receivables, net | (2,062 | ) | (1,755 | ) | ||
Inventory, net | 14 | (6 | ) | |||
Deferred revenue | (35 | ) | 61 | |||
Accounts payable and other accrued liabilities | (129 | ) | (588 | ) | ||
Restructuring, net | (165 | ) | 90 | |||
Pension contributions | (31 | ) | (47 | ) | ||
Other items, net | 31 | 41 | ||||
Net Cash Provided by Operating Activities | 690 | 415 | ||||
Cash Flows Provided (Required) by Investing Activities: | ||||||
Maturities of short-term investments | 52 | 35 | ||||
Capital expenditures | (848 | ) | (666 | ) | ||
Acquisition of businesses, net of cash acquired | (11 | ) | (2 | ) | ||
Technology and other investments | (46 | ) | (43 | ) | ||
Other investments and property disposal proceeds | 101 | 37 | ||||
Net Cash Required by Investing Activities | (752 | ) | (639 | ) | ||
Cash Flows Provided (Required) by Financing Activities: | ||||||
Net change in financing with less than 90-day maturities | 514 | 1,942 | ||||
Short-term debt proceeds | 63 | 46 | ||||
Short-term debt reductions | (12 | ) | (252 | ) | ||
Long-term debt proceeds | 600 | 9 | ||||
Long-term debt reductions | (517 | ) | (305 | ) | ||
Debt issuance costs | (2 | ) | — | |||
Treasury stock purchases | — | (3,001 | ) | |||
Stock option exercises | 78 | 66 | ||||
Excess tax benefits from stock-based compensation | 6 | 13 | ||||
Tax withholding on restricted stock and restricted stock units | (18 | ) | (22 | ) | ||
Dividend payments | (712 | ) | (727 | ) | ||
Payments to noncontrolling interests | (4 | ) | (2 | ) | ||
Net Cash Required by Financing Activities | (4 | ) | (2,233 | ) | ||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 4 | (39 | ) | |||
Net Decrease in Cash and Cash Equivalents | (62 | ) | (2,496 | ) | ||
Cash and Cash Equivalents at Beginning of Period | 1,676 | 3,701 | ||||
Cash and Cash Equivalents at End of Period | $ | 1,614 | $ | 1,205 |
1. | This press release uses the non-GAAP financial measures of gross profit, operating expenses, net income (loss) attributable to Monsanto Company and diluted earnings per share (EPS), each on an ongoing basis (collectively, “Ongoing Financial Measures”), and EBIT and free cash flow. The Ongoing Financial Measures and EBIT are intended to supplement investor's understanding of our operating performance. The free cash flow measure is intended to supplement investor's understanding of our liquidity. They are different from and not intended to replace gross profit, operating expenses, other expense, net, net income (loss) attributable to Monsanto Company, diluted EPS, cash flows, financial position or comprehensive income, and they are not measures of financial performance as determined in accordance with U.S. generally accepted accounting principles (GAAP). These non-GAAP financial measures may not be comparable to similar measures used by other companies. |
Three Months Ended | |||||||||
May 31, 2017 | |||||||||
(in millions) | GAAP As Reported | Adjustments(A) | Ongoing Basis | ||||||
Net Sales | $ | 4,230 | $ | — | $ | 4,230 | |||
Gross Profit | 2,386 | 14 | 2,400 | ||||||
Operating Expenses(B) | 1,222 | (9 | ) | 1,213 | |||||
Net Income Attributable to Monsanto Company | 843 | 14 | 857 | ||||||
Diluted Earnings per Share | 1.90 | 0.03 | 1.93 |
Nine Months Ended | |||||||||
May 31, 2017 | |||||||||
(in millions) | GAAP As Reported | Adjustments(A) | Ongoing Basis | ||||||
Net Sales | $ | 11,954 | $ | — | $ | 11,954 | |||
Gross Profit | 6,597 | 21 | 6,618 | ||||||
Operating Expenses(B) | 3,322 | (133 | ) | 3,189 | |||||
Net Income Attributable to Monsanto Company | 2,240 | 117 | 2,357 | ||||||
Diluted Earnings per Share | 5.06 | 0.26 | 5.32 |
• | Fiscal third quarter 2017 included a pretax net reversal of previously recognized restructuring charge totaling $3 million ($0.01 a share), or after-tax less than $1 million (less than $0.01 a share), of which $20 million related to certain asset impairment charges and a $23 million net reversal of previously recognized expense related to various other operating activities. The nine months ended May 31, 2017, included a pretax net reversal of previously recognized restructuring charge totaling $9 million ($0.02 a share), or after-tax $11 million ($0.03 a share), of which $39 million related to certain asset impairment charges and a $48 million net reversal of previously recognized expense related to various other operating activities. For the three months ended May 31, 2017, $14 million of expense and $17 million of a net reversal of previously recognized expense are included in cost of goods sold and restructuring charges, respectively. For the nine months ended May 31, 2017, $21 million of expense and $30 million of a net reversal of previously recognized expense are included in cost of goods sold and restructuring charges, respectively. The restructuring charges relate to the 2015 Restructuring Plan. Implementation of the 2015 Restructuring Plan is expected to be completed by the end of fiscal year 2018. |
• | Fiscal third quarter 2017 included a pretax net reversal of previously recognized charges of $6 million ($0.02 a share), or after-tax $4 million ($0.02 a share). The nine months ended May 31, 2017, included charges of $11 million ($0.03 a share), or after-tax $7 million ($0.02 a share) for legacy litigation matters arising under indemnities from the 2000 Pharmacia Separation Agreement that are not considered a part of ongoing operations. The pretax charges were recorded in selling, general and administrative expenses. |
• | The three and nine months ended May 31, 2017, included pretax charges of $32 million ($0.07 a share), or after-tax $20 million ($0.05 a share), and $190 million ($0.43 a share), or after-tax $119 million ($0.27 a share), respectively, for expenses incurred associated with the merger agreement for the acquisition of Monsanto by Bayer Aktiengesellschaft entered into on Sep. 14, 2016. The pretax charges in the three months ended May 31, 2017 were recorded in operating expenses of $32 million. The pretax charges in the nine months ended May 31, 2017 were recorded in operating expenses of $152 million and other expense (income), net of $38 million. |
• | The three months ended May 31, 2017, included a net reversal of charges related to Argentine-related tax matters of $2 million (less than $0.01 a share). The nine months ended May 31, 2017, included charges related to Argentine-related tax matters of $15 million ($0.03 a share). Due to losses generated in Argentina in recent years as well as recent uncertainties around the Argentina business, the company evaluated the recoverability of various items on the Statement of Consolidated Financial Position related to the Argentina business and determined an allowance against certain assets was necessary. This resulted in a translation gain recorded in other expense (income), net of $11 million and a net charge against tax expense of $9 million for the three months ended May 31, 2017, and it resulted in a translation gain recorded in other expense (income), net of $22 million and a net charge against tax expense of $37 million for the nine months ended May 31, 2017. |
• | The company reports annual earn-out payments received as a result of the 2008 divestment of the Dairy Business as discontinued operations. The nine months ended May 31, 2017, included pretax income from discontinued operations of $21 million ($0.05 a share), or after-tax $13 million ($0.03 a share). |
Three Months Ended | |||||||||
May 31, 2016 | |||||||||
(in millions) | GAAP As Reported | Adjustments(A) | Ongoing Basis | ||||||
Net Sales | $ | 4,189 | $ | — | $ | 4,189 | |||
Gross Profit | 2,380 | 1 | 2,381 | ||||||
Operating Expenses(B) | 1,131 | (31 | ) | 1,100 | |||||
Net Income Attributable to Monsanto Company | 717 | 238 | 955 | ||||||
Diluted Earnings per Share | 1.63 | 0.54 | 2.17 |
Nine Months Ended | |||||||||
May 31, 2016 | |||||||||
(in millions) | GAAP As Reported | Adjustments(A) | Ongoing Basis | ||||||
Net Sales | $ | 10,940 | $ | — | $ | 10,940 | |||
Gross Profit | 5,879 | 53 | 5,932 | ||||||
Operating Expenses(B) | 3,239 | (314 | ) | 2,925 | |||||
Net Income Attributable to Monsanto Company | 1,527 | 444 | 1,971 | ||||||
Diluted Earnings per Share | 3.40 | 1.00 | 4.40 |
• | Fiscal third quarter 2016 included a pretax restructuring charge totaling $16 million ($0.04 a share), or after-tax $9 million ($0.02 a share), of which $15 million related to certain asset impairment charges and $1 million related to various other operating charges. The nine months ended May 31, 2016 included a pretax restructuring charge totaling $343 million ($0.76 a share), or after-tax $225 million ($0.50 a share), of which $119 million related to certain asset impairment charges and $224 million related to various other operating charges. For the three months ended May 31, 2016, expenses of $1 million and $15 million were included in cost of goods sold and restructuring charges, respectively. For the nine months ended May 31, 2016, expenses of $53 million and $290 million were included in cost of goods sold and restructuring charges, respectively. The restructuring charges relate to the 2015 Restructuring Plan. Implementation of the 2015 Restructuring Plan is expected to be completed by the end of fiscal year 2018. |
• | The three and nine months ended May 31, 2016, included pretax charges of $16 million ($0.03 a share), or after-tax $10 million ($0.02 a share), and $28 million ($0.06 a share), or after-tax $17 million ($0.04 a share), respectively, in selling, general and administrative expenses for legacy litigation matters arising under indemnities from the 2000 Pharmacia Separation Agreement that are not considered a part of ongoing operations. The pretax charges were recorded in selling, general and administrative expenses. |
• | The nine months ended May 31, 2016, included pretax income of $4 million ($0.01 a share), or after-tax $2 million (less than $0.01 a share), in selling, general and administrative expenses in connection with the previously disclosed SEC action. |
• | Fiscal third quarter 2016 included a net tax charge of $219 million, or $0.50 a share. The nine months ended May 31, 2016, included a net tax charge of $219 million, or $0.49 a share. Due to losses generated in Argentina in the current year as well as recent uncertainties around the Argentina business, the company evaluated the recoverability of various items on the Statement of Consolidated Financial Position related to the Argentina business and determined an allowance against certain assets was necessary, which resulted in the net charge to tax expense. |
• | The company reports annual earn-out payments received as a result of the 2008 divestment of the Dairy Business as discontinued operations. The nine months ended May 31, 2016 included pretax income from discontinued operations of $24 million ($0.05 a share), or after-tax $15 million ($0.03 a share). |
Three Months Ended | Nine Months Ended | |||||||||||
(in millions) | May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | ||||||||
EBIT – Seeds and Genomics Segment | $ | 995 | $ | 1,094 | $ | 3,033 | $ | 2,258 | ||||
EBIT – Agricultural Productivity Segment | 160 | 187 | 292 | 253 | ||||||||
EBIT– Total | 1,155 | 1,281 | 3,325 | 2,511 | ||||||||
Interest Expense – Net | 83 | 86 | 285 | 281 | ||||||||
Income Tax Provision(A) | 229 | 478 | 800 | 703 | ||||||||
Net Income Attributable to Monsanto Company | $ | 843 | $ | 717 | $ | 2,240 | $ | 1,527 |
Fiscal Year 2017 | Three Months Ended | Nine Months Ended | |||||||||||
Guidance | May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | |||||||||
Diluted Earnings per Share | $4.09-$4.55 | $ | 1.90 | $ | 1.63 | $ | 5.06 | $ | 3.40 | ||||
Restructuring Charges(A) | $0.02-$0.03 | — | 0.02 | (0.03 | ) | 0.50 | |||||||
Environmental and Litigation Matters(B) | $0.02-$0.03 | (0.02 | ) | 0.02 | 0.02 | 0.04 | |||||||
Pending Bayer Transaction Related Costs(C) | $0.27-$0.31 | 0.05 | — | 0.27 | — | ||||||||
Argentine-Related Tax Matters(D) | $0.06-$0.08 | — | 0.50 | 0.03 | 0.49 | ||||||||
Income from Discontinued Operations(E) | $(0.02)-$(0.04) | — | — | (0.03 | ) | (0.03 | ) | ||||||
Diluted Earnings per Share from Ongoing Business | $4.50-$4.90 | $ | 1.93 | $ | 2.17 | $ | 5.32 | $ | 4.40 |
Three Months Ended | Nine Months Ended | |||||||||||
(in millions) | May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | ||||||||
Gross Profit – Seeds and Genomics Segment | $ | 2,015 | $ | 2,049 | $ | 5,932 | $ | 5,205 | ||||
Gross Profit – Agricultural Productivity Segment | 371 | 331 | 665 | 674 | ||||||||
Gross Profit– Total | 2,386 | 2,380 | 6,597 | 5,879 | ||||||||
Restructuring Charges | 14 | 1 | 21 | 53 | ||||||||
Ongoing Gross Profit | $ | 2,400 | $ | 2,381 | $ | 6,618 | $ | 5,932 |
Three Months Ended | Nine Months Ended | |||||||||||
(in millions) | May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | ||||||||
Operating Expenses | $ | 1,222 | $ | 1,131 | $ | 3,322 | $ | 3,239 | ||||
Restructuring Charges | 17 | (15 | ) | 30 | (290 | ) | ||||||
Environmental and Litigation Matters | 6 | (16 | ) | (11 | ) | (28 | ) | |||||
SEC Settlement Matters | — | — | — | 4 | ||||||||
Pending Bayer Transaction Related Costs | (32 | ) | — | (152 | ) | — | ||||||
Ongoing Operating Expenses | $ | 1,213 | $ | 1,100 | $ | 3,189 | $ | 2,925 |
Three Months Ended | Nine Months Ended | |||||||||||
(in millions) | May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | ||||||||
Net Income Attributable to Monsanto Company | $ | 843 | $ | 717 | $ | 2,240 | $ | 1,527 | ||||
Pretax Restructuring Charges | (3 | ) | 16 | (9 | ) | 343 | ||||||
Pretax Environmental and Litigation Matters | (6 | ) | 16 | 11 | 28 | |||||||
Pretax SEC Settlement Matters | — | — | — | (4 | ) | |||||||
Pretax Pending Bayer Transaction Related Costs | 32 | — | 190 | — | ||||||||
Income Tax Benefit(A) | (7 | ) | (13 | ) | (77 | ) | (127 | ) | ||||
Argentine-Related Tax Matters(B) | (2 | ) | 219 | 15 | 219 | |||||||
Income from Discontinued Operations, Net of Tax(C) | — | — | (13 | ) | (15 | ) | ||||||
Ongoing Net Income Attributable to Monsanto Company | $ | 857 | $ | 955 | $ | 2,357 | $ | 1,971 |
Fiscal Year 2017 | Nine Months Ended | |||||||
Guidance | May 31, 2017 | May 31, 2016 | ||||||
Net Cash Provided by Operating Activities | $ | 2,400-2,800 | $ | 690 | $ | 415 | ||
Net Cash Required by Investing Activities | (900-1,000) | (752 | ) | (639 | ) | |||
Net Cash Required by Financing Activities | N/A | (4 | ) | (2,233 | ) | |||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | N/A | 4 | (39 | ) | ||||
Net Decrease in Cash and Cash Equivalents | N/A | $ | (62 | ) | $ | (2,496 | ) |
Fiscal Year 2017 | Nine Months Ended | ||||||||
Guidance | May 31, 2017 | May 31, 2016 | |||||||
Net Cash Provided by Operating Activities | $ | 2,400-2,800 | $ | 690 | $ | 415 | |||
Capital expenditures | (1,200 | ) | (848 | ) | (666 | ) | |||
Free Cash Flow | $ | 1,200-1,600 | $ | (158 | ) | $ | (251 | ) |
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