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 |
Exhibit No. | Description of Exhibit | |
99 |
MONSANTO COMPANY | |
By: /s/ Christopher A. Martin | |
Name: Christopher A. Martin | |
Title: Assistant Secretary |
Release | Immediately |
Contact | Media: Christi Dixon (314-694-1092) |
Analysts: Laura Meyer (314-694-8148) |
• | Achieves strong double-digit growth in full-year earnings per share |
• | Delivers FY17 as-reported earnings per share of $5.09 and ongoing earnings per share of $5.50 |
• | Continues progress to closure of pending combination with Bayer |
• | INTACTA RR2 PROTM soybeans propel FY17 growth in South America with more than 50 million acres; Roundup Ready 2 Xtend® soybeans surpass 20 million acres in U.S. and expects to have supply to double adoption for 2018 season to more than 40 million acres |
• | Strong gross profit growth in cotton driven by technology adoption and acre growth in FY17 |
• | Global corn business delivers pricing lift benefits, plus better-than-expected strategic licensing deal in Q4 |
• | Climate FieldViewTM platform reaches more than 35 million paid acres and 120 million total acres |
Fourth Quarter | Fiscal Year | |||||||||||
($ in millions, except per share amounts) | 2017 | 2016 | 2017 | 2016 | ||||||||
Net Sales by Segment | ||||||||||||
Corn seed and traits | $ | 928 | $ | 801 | $ | 6,270 | $ | 5,825 | ||||
Soybean seed and traits | 304 | 249 | 2,662 | 2,162 | ||||||||
Cotton seed and traits | 53 | 70 | 615 | 440 | ||||||||
Vegetable seeds | 292 | 275 | 815 | 801 | ||||||||
All other crops seeds and traits | 170 | 170 | 551 | 760 | ||||||||
TOTAL Seeds and Genomics | $ | 1,747 | $ | 1,565 | $ | 10,913 | $ | 9,988 | ||||
Agricultural productivity | $ | 939 | $ | 997 | $ | 3,727 | $ | 3,514 | ||||
TOTAL Agricultural Productivity | $ | 939 | $ | 997 | $ | 3,727 | $ | 3,514 | ||||
TOTAL Net Sales | $ | 2,686 | $ | 2,562 | $ | 14,640 | $ | 13,502 | ||||
Gross Profit | $ | 1,340 | $ | 1,138 | $ | 7,937 | $ | 7,017 | ||||
Operating Expenses | $ | 1,403 | $ | 1,403 | $ | 4,725 | $ | 4,642 | ||||
Interest Expense – Net | $ | 91 | $ | 81 | $ | 376 | $ | 362 | ||||
Other (Income) Expense – Net | $ | (9 | ) | $ | (138 | ) | $ | (50 | ) | $ | 22 | |
Net Income (Loss) Attributable to Monsanto Company | $ | 20 | $ | (191 | ) | $ | 2,260 | $ | 1,336 | |||
Diluted Earnings (Loss) per Share | $ | 0.05 | $ | (0.44 | ) | $ | 5.09 | $ | 2.99 | |||
Items Affecting Comparability – EPS Impact | ||||||||||||
Restructuring Charges | — | 0.09 | (0.03 | ) | 0.59 | |||||||
Environmental and Litigation Matters | 0.03 | 0.34 | 0.05 | 0.38 | ||||||||
Pending Bayer Transaction Related Costs | 0.05 | — | 0.32 | — | ||||||||
Argentine-Related Tax Matters | 0.07 | 0.08 | 0.10 | 0.56 | ||||||||
Income on Discontinued Operations | — | — | (0.03 | ) | (0.04 | ) | ||||||
Diluted Earnings per Share from Ongoing Business (For the definition of ongoing EPS, see note 1.) | $ | 0.20 | $ | 0.07 | $ | 5.50 | $ | 4.48 | ||||
Effective Tax Rate | 117 | % | — | % | 22 | % | 35 | % |
Fourth Quarter | Fiscal Year | ||||
Comparison as a Percent of Net Sales: | 2017 | 2016 | 2017 | 2016 | |
Gross profit | 50% | 44% | 54% | 52% | |
Selling, general and administrative expenses | 35% | 38% | 20% | 21% | |
Research and development expenses | 16% | 16% | 11% | 11% | |
(Loss) income from continuing operations before income taxes | (5)% | (8)% | 20% | 15% | |
Net income (loss) attributable to Monsanto Company | 1% | (7)% | 15% | 10% |
($ in millions) | Net Sales | Gross Profit (A) | ||||||||||||||||||||||
Fourth Quarter | Fiscal Year | Fourth Quarter | Fiscal Year | |||||||||||||||||||||
Seeds and Genomics | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||
Corn Seed and Traits | $ | 928 | $ | 801 | $ | 6,270 | $ | 5,825 | $ | 586 | $ | 387 | $ | 3,975 | $ | 3,450 | ||||||||
Soybean Seed and Traits | 304 | 249 | 2,662 | 2,162 | 217 | 179 | 1,884 | 1,399 | ||||||||||||||||
Cotton Seed and Traits | 53 | 70 | 615 | 440 | 39 | 34 | 457 | 282 | ||||||||||||||||
Vegetable Seeds | 292 | 275 | 815 | 801 | 168 | 157 | 435 | 401 | ||||||||||||||||
All Other Crops Seeds and Traits | 170 | 170 | 551 | 760 | 103 | 112 | 294 | 542 | ||||||||||||||||
TOTAL Seeds and Genomics | $ | 1,747 | $ | 1,565 | $ | 10,913 | $ | 9,988 | $ | 1,113 | $ | 869 | $ | 7,045 | $ | 6,074 |
($ in millions) | Earnings Before Interest & Taxes (EBIT) | |||||||||||||
Fourth Quarter | Fiscal Year | |||||||||||||
Seeds and Genomics | 2017 | 2016 | 2017 | 2016 | ||||||||||
EBIT (For a reconciliation of EBIT, see note 1.) (A) | $ | (123 | ) | $ | 34 | $ | 2,910 | $ | 2,292 | |||||
Unusual Items Affecting EBIT: Income (Expense) | ||||||||||||||
Restructuring Charges | 5 | (15 | ) | 12 | (327 | ) | ||||||||
SEC Settlement Matters | — | (1 | ) | — | 2 | |||||||||
Pending Bayer Transaction Related Costs | (27 | ) | — | (190 | ) | — | ||||||||
Argentine-Related Tax Matters | 18 | — | 37 | — |
($ in millions) | Net Sales | Gross Profit(A) | ||||||||||||||||||||||
Fourth Quarter | Fiscal Year | Fourth Quarter | Fiscal Year | |||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Agricultural Productivity | $ | 939 | $ | 997 | $ | 3,727 | $ | 3,514 | $ | 227 | $ | 269 | $ | 892 | $ | 943 | ||||||||
TOTAL Agricultural Productivity | $ | 939 | $ | 997 | $ | 3,727 | $ | 3,514 | $ | 227 | $ | 269 | $ | 892 | $ | 943 |
($ in millions) | Earnings Before Interest & Taxes (EBIT) | |||||||||||||
Fourth Quarter | Fiscal Year | |||||||||||||
Agricultural Productivity | 2017 | 2016 | 2017 | 2016 | ||||||||||
EBIT (For a reconciliation of EBIT, see note 1.)(A) | $ | 61 | $ | (137 | ) | $ | 353 | $ | 116 | |||||
Unusual Items Affecting EBIT: Income (Expense) | ||||||||||||||
Restructuring Charges | (3 | ) | (6 | ) | (1 | ) | (37 | ) | ||||||
Environmental and Litigation Matters | (22 | ) | (245 | ) | (33 | ) | (273 | ) | ||||||
SEC Settlement Matters | — | — | — | 1 | ||||||||||
Pending Bayer Transaction Related Costs | (5 | ) | — | (33 | ) | — | ||||||||
Argentine-Related Tax Matters | 3 | — | 6 | — | ||||||||||
Discontinued Operations | — | 3 | 21 | 27 |
Statements of Consolidated Operations | Three Months Ended Aug. 31, | Twelve Months Ended Aug. 31, | ||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||
Net Sales | $ | 2,686 | $ | 2,562 | $ | 14,640 | $ | 13,502 | ||||
Cost of Goods Sold | 1,346 | 1,424 | 6,703 | 6,485 | ||||||||
Gross Profit | 1,340 | 1,138 | 7,937 | 7,017 | ||||||||
Operating Expenses: | ||||||||||||
Selling, general and administrative expenses | 938 | 975 | 2,969 | 2,833 | ||||||||
Research and development expenses | 439 | 421 | 1,607 | 1,512 | ||||||||
Pending Bayer transaction related costs | 32 | — | 185 | — | ||||||||
Restructuring charges | (6 | ) | 7 | (36 | ) | 297 | ||||||
Total Operating Expenses | 1,403 | 1,403 | 4,725 | 4,642 | ||||||||
(Loss) Income From Operations | (63 | ) | (265 | ) | 3,212 | 2,375 | ||||||
Interest Expense | 114 | 104 | 452 | 436 | ||||||||
Interest Income | (23 | ) | (23 | ) | (76 | ) | (74 | ) | ||||
Other (Income) Expense, Net | (9 | ) | (138 | ) | (50 | ) | 22 | |||||
(Loss) Income from Continuing Operations Before Income Taxes | (145 | ) | (208 | ) | 2,886 | 1,991 | ||||||
Income Tax (Benefit) Provision | (170 | ) | (1 | ) | 626 | 695 | ||||||
Income (Loss) from Continuing Operations Including Portion Attributable to Noncontrolling Interest | $ | 25 | $ | (207 | ) | $ | 2,260 | $ | 1,296 | |||
Discontinued Operations: | ||||||||||||
Income from Operations of Discontinued Businesses | — | 3 | 21 | 27 | ||||||||
Income Tax Provision | — | 1 | 8 | 10 | ||||||||
Income on Discontinued Operations | — | 2 | 13 | 17 | ||||||||
Net Income (Loss) | $ | 25 | $ | (205 | ) | $ | 2,273 | $ | 1,313 | |||
Less: Net Income (Loss) Attributable to Noncontrolling Interest | 5 | (14 | ) | 13 | (23 | ) | ||||||
Net Income (Loss) Attributable to Monsanto Company | $ | 20 | $ | (191 | ) | $ | 2,260 | $ | 1,336 | |||
Basic Earnings (Loss) per Share Attributable to Monsanto Company: | ||||||||||||
Income (Loss) from Continuing Operations | $ | 0.05 | $ | (0.44 | ) | $ | 5.12 | $ | 2.98 | |||
Income on Discontinued Operations | — | — | 0.03 | 0.04 | ||||||||
Net Income (Loss) Attributable to Monsanto Company | $ | 0.05 | $ | (0.44 | ) | $ | 5.15 | $ | 3.02 | |||
Diluted Earnings (Loss) per Share Attributable to Monsanto Company: | ||||||||||||
Income (Loss) from Continuing Operations | $ | 0.05 | $ | (0.44 | ) | $ | 5.06 | $ | 2.95 | |||
Income on Discontinued Operations | — | — | 0.03 | 0.04 | ||||||||
Net Income (Loss) Attributable to Monsanto Company | $ | 0.05 | $ | (0.44 | ) | $ | 5.09 | $ | 2.99 | |||
Weighted Average Shares Outstanding: | ||||||||||||
Basic | 439.5 | 437.7 | 438.8 | 442.7 | ||||||||
Diluted | 444.4 | 437.7 | 443.8 | 447.1 |
Condensed Statements of Consolidated Financial Position | As of Aug. 31, | |||||
2017 | 2016 | |||||
Assets | ||||||
Current Assets: | ||||||
Cash and cash equivalents (variable interest entity restricted - 2017: $94 and 2016: $122) | $ | 1,856 | $ | 1,676 | ||
Short-term investments | 8 | 60 | ||||
Trade receivables, net (variable interest entity restricted - 2017: $74 and 2016: $7) | 2,163 | 1,926 | ||||
Miscellaneous receivables (variable interest entity restricted - 2017: $5 and 2016: $0) | 827 | 755 | ||||
Inventory, net | 3,340 | 3,241 | ||||
Assets held for sale | 199 | 272 | ||||
Other current assets (variable interest entity restricted - 2017: $1 and 2016: $0) | 260 | 227 | ||||
Total Current Assets | 8,653 | 8,157 | ||||
Property, Plant and Equipment, net | 5,930 | 5,231 | ||||
Goodwill | 4,088 | 4,020 | ||||
Other Intangible Assets, Net | 1,024 | 1,125 | ||||
Deferred Tax Assets (variable interest entity restricted - 2017: $11 and 2016: $0) | 564 | 613 | ||||
Long-Term Receivables, Net | 108 | 101 | ||||
Other Assets (variable interest entity restricted - 2017: $4 and 2016: $0) | 955 | 489 | ||||
Total Assets | $ | 21,322 | $ | 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) | $ | 870 | $ | 1,587 | ||
Accounts payable (variable interest entity restricted - 2017: $9 and 2016: $0) | 1,068 | 1,006 | ||||
Income taxes payable | 58 | 41 | ||||
Accrued compensation and benefits | 578 | 239 | ||||
Accrued marketing programs | 1,918 | 1,650 | ||||
Deferred revenues | 755 | 568 | ||||
Grower production accruals | 59 | 47 | ||||
Dividends payable | 237 | 237 | ||||
Customer payable | 106 | 123 | ||||
Restructuring reserves | 37 | 227 | ||||
Miscellaneous short-term accruals (variable interest entity restricted - 2017: $2 and 2016: $0) | 729 | 1,004 | ||||
Total Current Liabilities | 6,415 | 6,729 | ||||
Long-Term Debt (variable interest entity restricted - 2017: $104 and 2016: $0) | 7,254 | 7,453 | ||||
Postretirement Liabilities | 313 | 371 | ||||
Long-Term Deferred Revenue | 86 | 35 | ||||
Noncurrent Deferred Tax Liabilities | 192 | 68 | ||||
Long-Term Portion of Environmental and Litigation Reserves | 218 | 200 | ||||
Restructuring Reserves Long Term | 9 | 17 | ||||
Other Liabilities | 377 | 318 | ||||
Monsanto Shareowners’ Equity | 6,438 | 4,534 | ||||
Noncontrolling Interest | 20 | 11 | ||||
Total Shareowners’ Equity | 6,458 | 4,545 | ||||
Total Liabilities and Shareowners’ Equity | $ | 21,322 | $ | 19,736 |
Statements of Consolidated Cash Flows | Twelve Months Ended Aug. 31, | |||||
2017 | 2016 | |||||
Operating Activities: | ||||||
Net Income | $ | 2,273 | $ | 1,313 | ||
Adjustments to reconcile cash provided by operating activities: | ||||||
Items that did not require (provide) cash: | ||||||
Depreciation and amortization | 748 | 727 | ||||
Bad-debt expense | 69 | 152 | ||||
Stock-based compensation expense | 126 | 111 | ||||
Excess tax benefits from stock-based compensation | — | (16 | ) | |||
Deferred income taxes | 98 | 97 | ||||
Restructuring impairments | 46 | 147 | ||||
Equity affiliate loss, net | 15 | 15 | ||||
Net gain on sales of a business or other assets | (163 | ) | (181 | ) | ||
Other items, net | 103 | 181 | ||||
Changes in assets and liabilities that provided (required) cash, net of acquisitions: | ||||||
Trade receivables | (251 | ) | (498 | ) | ||
Inventory, net | (74 | ) | 181 | |||
Deferred revenues | 220 | 189 | ||||
Accounts payable and other accrued liabilities | 447 | 176 | ||||
Restructuring reserves | (198 | ) | 25 | |||
Pension contributions | (35 | ) | (78 | ) | ||
Other items, net | (198 | ) | 47 | |||
Net Cash Provided by Operating Activities | 3,226 | 2,588 | ||||
Cash Flows Provided (Required) by Investing Activities: | ||||||
Purchases of short-term investments | — | (50 | ) | |||
Maturities of short-term investments | 50 | 35 | ||||
Capital expenditures | (1,240 | ) | (923 | ) | ||
Acquisition of businesses, net of cash acquired | (11 | ) | (2 | ) | ||
Technology and other investments | (71 | ) | (69 | ) | ||
Other investments and property disposal proceeds | 165 | 145 | ||||
Net Cash Required by Investing Activities | (1,107 | ) | (864 | ) | ||
Cash Flows Provided (Required) by Financing Activities: | ||||||
Net change in financing with less than 90-day maturities | (695) | 676 | ||||
Short-term debt proceeds | 72 | 49 | ||||
Short-term debt reductions | (54 | ) | (272 | ) | ||
Long-term debt proceeds | 601 | 9 | ||||
Long-term debt reductions | (1,019 | ) | (306 | ) | ||
Debt issuance costs | (2 | ) | — | |||
Treasury stock purchases | — | (3,001 | ) | |||
Stock option exercises | 103 | 81 | ||||
Excess tax benefits from stock-based compensation | — | 16 | ||||
Tax withholding on restricted stock and restricted stock units | (19 | ) | (24 | ) | ||
Dividend payments | (948 | ) | (964 | ) | ||
Payments to noncontrolling interests | (5 | ) | (6 | ) | ||
Net Cash Required by Financing Activities | (1,966 | ) | (3,742 | ) | ||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 27 | (7 | ) | |||
Net Increase (Decrease) in Cash and Cash Equivalents | 180 | (2,025 | ) | |||
Cash and Cash Equivalents at Beginning of Period | 1,676 | 3,701 | ||||
Cash and Cash Equivalents at End of Period | $ | 1,856 | $ | 1,676 |
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 income (loss) attributable to Monsanto Company, diluted EPS, cash flows, financial position or comprehensive income (loss), 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 | |||||||||
Aug. 31, 2017 | |||||||||
GAAP As Reported | Adjustments(A) | Ongoing Basis | |||||||
Net Sales | $ | 2,686 | $ | — | $ | 2,686 | |||
Gross Profit | 1,340 | 4 | 1,344 | ||||||
Operating Expenses(B) | 1,403 | (48 | ) | 1,355 | |||||
Net Income Attributable to Monsanto Company | 20 | 62 | 82 | ||||||
Diluted Earnings per Share | 0.05 | 0.15 | 0.20 |
Twelve Months Ended | |||||||||
Aug. 31, 2017 | |||||||||
GAAP As Reported | Adjustments(A) | Ongoing Basis | |||||||
Net Sales | $ | 14,640 | $ | — | $ | 14,640 | |||
Gross Profit | 7,937 | 25 | 7,962 | ||||||
Operating Expenses(B) | 4,725 | (182 | ) | 4,543 | |||||
Net Income Attributable to Monsanto Company | 2,260 | 180 | 2,440 | ||||||
Diluted Earnings per Share | 5.09 | 0.41 | 5.50 |
• | Fiscal fourth quarter 2017 included a pretax net reversal of previously recognized restructuring charge totaling $2 million ($0.01 a share), or after-tax $1 million (less than $0.01 a share), of which $7 million related to certain asset impairment charges and a $9 million net reversal of previously recognized expense related to various other operating activities. The twelve months ended Aug. 31, 2017, included a pretax net reversal of previously recognized restructuring charges totaling $11 million ($0.03 a share), or after-tax $12 million ($0.03 a share), of which $46 million related to certain asset impairment charges and a $57 million net reversal of previously recognized expense related to various other operating charges. For the three months ended Aug. 31, 2017, expenses of $4 million and $6 million of a net reversal of expense are included in cost of goods sold and restructuring charges, respectively. For the twelve months ended Aug. 31, 2017, expenses of $25 million and $36 million of a net reversal of previously recognized expense are included in cost of goods sold and restructuring charges, respectively. |
• | Fiscal fourth quarter 2017 included pretax charges of $22 million ($0.05 a share), or after-tax $13 million ($0.03 a share), for legacy litigation matters arising under indemnities from the 2000 Pharmacia Separation Agreement. The twelve months ended Aug. 31, 2017, included pretax charges of $33 million ($0.08 a share), or after-tax $20 million ($0.05 a share), for legacy litigation matters. The pretax charges in the three and twelve months ended Aug. 31, 2017, were recorded in selling, general and administrative expenses. |
• | The three and twelve months ended Aug. 31, 2017, included pretax charges of $32 million ($0.07 a share), or after-tax $20 million ($0.05 a share), and $223 million ($0.50 a share), or after-tax $140 million ($0.32 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 Aug. 31, 2017 were recorded in operating expenses of $32 million. The pretax charges in the twelve months ended Aug. 31, 2017 were recorded in operating expenses of $185 million and other (income) expense, net of $38 million. |
• | The three and twelve months ended Aug. 31, 2017 included charges related to Argentine-related tax matters of $30 million ($0.07 a share) and $45 million ($0.10 a share), respectively. 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 (income) expense, net of $21 million and a net charge against tax expense of $51 million for the three months ended Aug. 31, 2017, and it resulted in a translation gain recorded in other (income) expense, net of $43 million and a net charge against tax expense of $88 million for the twelve months ended Aug. 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 twelve months ended Aug. 31, 2017, included pretax income on discontinued operations of $21 million ($0.05 a share), or after-tax $13 million ($0.03 a share). |
Three Months Ended | |||||||||
Aug. 31, 2016 | |||||||||
GAAP As Reported | Adjustments(A) | Ongoing Basis | |||||||
Net Sales | $ | 2,562 | $ | — | $ | 2,562 | |||
Gross Profit | 1,138 | 14 | 1,152 | ||||||
Operating Expenses(B) | 1,403 | (253 | ) | 1,150 | |||||
Net (Loss) Income Attributable to Monsanto Company | (191 | ) | 221 | 30 | |||||
Diluted (Loss) Earnings per Share | (0.44 | ) | 0.51 | 0.07 |
Twelve Months Ended | |||||||||
Aug. 31, 2016 | |||||||||
GAAP As Reported | Adjustments(A) | Ongoing Basis | |||||||
Net Sales | $ | 13,502 | $ | — | $ | 13,502 | |||
Gross Profit | 7,017 | 67 | 7,084 | ||||||
Operating Expenses(B) | 4,642 | (567 | ) | 4,075 | |||||
Net Income Attributable to Monsanto Company | 1,336 | 665 | 2,001 | ||||||
Diluted Earnings per Share | 2.99 | 1.49 | 4.48 |
• | Fiscal fourth quarter 2016 included a pretax restructuring charge totaling $21 million ($0.05 a share), or after-tax $38 million ($0.09 a share), of which $28 million related to certain asset impairment charges and $7 million offset to expense related to various other operating activities. The twelve months ended Aug. 31, 2016, included a pretax restructuring charges totaling $364 million ($0.81 a share), or after-tax $263 million ($0.59 a share), of which $147 million related to certain asset impairment charges and $217 million related to various other operating charges. For the three months ended Aug. 31, 2016, expenses of $14 million and $7 million are included in cost of goods sold and restructuring charges, respectively. For the twelve months ended Aug. 31, 2016, expenses of $67 million and $297 million are included in cost of goods sold and restructuring charges, respectively. |
• | Fiscal fourth quarter 2016 included pretax charges of $245 million ($0.55 a share), or after-tax $151 million ($0.34 a share), for legacy litigation matters arising under indemnities from the 2000 Pharmacia Separation Agreement. The twelve months ended Aug. 31, 2016, included pretax charges of $273 million ($0.61 a share), or after-tax $168 million ($0.38 a share), for legacy litigation matters. The pretax charges in the three and twelve months ended Aug. 31, 2016, were recorded in selling, general and administrative expenses. |
• | Fiscal fourth quarter 2016 included a pretax loss of $1 million in selling, general and administrative expenses in connection with the previously disclosed SEC action. The twelve months ended Aug. 31, 2016, included pretax income of $3 million in selling, general and administrative expenses. This income had less than a $0.01 effect on diluted earnings per share. |
• | Fiscal fourth quarter 2016 included a net tax charge of $33 million, of $0.08 a share. The twelve months ended Aug. 31, 2016, included a net tax charge of $252 million, or $0.56 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 twelve months ended Aug. 31, 2016, included pretax income on discontinued operations of $3 million, this income has less than a $0.01 effect on pretax per share basis, and $27 million ($0.06 a share), respectively, or after-tax $2 million, this income has less than a $0.01 effect on diluted earnings per share, and $17 million ($0.04 a share). |
(in millions) | Three Months Ended | Twelve Months Ended | ||||||||||
Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2017 | Aug. 31, 2016 | |||||||||
EBIT – Seeds and Genomics Segment | $ | (123 | ) | $ | 34 | $ | 2,910 | $ | 2,292 | |||
EBIT – Agricultural Productivity Segment | 61 | (137 | ) | 353 | 116 | |||||||
EBIT– Total | (62 | ) | (103 | ) | 3,263 | 2,408 | ||||||
Interest Expense, Net | 91 | 81 | 376 | 362 | ||||||||
Income Tax Provision (Benefit)(A) | (173 | ) | 7 | 627 | 710 | |||||||
Net Income (Loss) Attributable to Monsanto Company | $ | 20 | $ | (191 | ) | $ | 2,260 | $ | 1,336 |
Three Months Ended | Twelve Months Ended | |||||||||||
Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2017 | Aug. 31, 2016 | |||||||||
Diluted Earnings (Loss) per Share | $ | 0.05 | $ | (0.44 | ) | $ | 5.09 | $ | 2.99 | |||
Restructuring Charges(A) | — | 0.09 | (0.03 | ) | 0.59 | |||||||
Environmental and Litigation Matters(B) | 0.03 | 0.34 | 0.05 | 0.38 | ||||||||
Pending Bayer Transaction Related Costs(C) | 0.05 | — | 0.32 | — | ||||||||
Argentine-Related Tax Matters(D) | 0.07 | 0.08 | 0.10 | 0.56 | ||||||||
Income on Discontinued Operations(E) | — | — | (0.03 | ) | (0.04 | ) | ||||||
Diluted Earnings (Loss) per Share from Ongoing Business | $ | 0.20 | $ | 0.07 | $ | 5.50 | $ | 4.48 |
(in millions) | Three Months Ended | Twelve Months Ended | ||||||||||
Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2017 | Aug. 31, 2016 | |||||||||
Gross Profit - Seeds and Genomics Segment | $ | 1,113 | $ | 869 | $ | 7,045 | $ | 6,074 | ||||
Gross Profit - Agricultural Productivity Segment | 227 | 269 | 892 | 943 | ||||||||
Gross Profit - Total | $ | 1,340 | $ | 1,138 | $ | 7,937 | $ | 7,017 | ||||
Restructuring Charges | 4 | 14 | 25 | 67 | ||||||||
Ongoing Gross Profit | $ | 1,344 | 1,152 | 7,962 | 7,084 |
(in millions) | Three Months Ended | Twelve Months Ended | ||||||||||
Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2017 | Aug. 31, 2016 | |||||||||
Operating Expenses | $ | 1,403 | $ | 1,403 | $ | 4,725 | $ | 4,642 | ||||
Restructuring Charges | 6 | (7 | ) | 36 | (297 | ) | ||||||
Environmental and Litigation Matters | (22 | ) | (245 | ) | (33 | ) | (273 | ) | ||||
SEC Settlement Matters | — | (1 | ) | — | 3 | |||||||
Pending Bayer Transaction Related Costs | (32 | ) | — | (185 | ) | — | ||||||
Ongoing Operating Expenses | $ | 1,355 | $ | 1,150 | $ | 4,543 | $ | 4,075 |
(in millions) | Three Months Ended | Twelve Months Ended | ||||||||||
Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2017 | Aug. 31, 2016 | |||||||||
Net Income (Loss) Attributable to Monsanto Company | $ | 20 | $ | (191 | ) | $ | 2,260 | $ | 1,336 | |||
Pretax Restructuring Charges | (2 | ) | 21 | (11 | ) | 364 | ||||||
Pretax Environmental and Litigation Matters | 22 | 245 | 33 | 273 | ||||||||
Pretax SEC Settlement Matters | — | 1 | — | (3 | ) | |||||||
Pretax Pending Bayer Transaction Related Costs | 32 | — | 223 | — | ||||||||
Income Tax Benefit | (20 | ) | (77 | ) | (97 | ) | (204 | ) | ||||
Argentine-Related Tax Matters | 30 | 33 | 45 | 252 | ||||||||
Income on Discontinued Operations, Net of Tax | — | (2 | ) | (13 | ) | (17 | ) | |||||
Ongoing Net Income Attributable to Monsanto Company | $ | 82 | $ | 30 | $ | 2,440 | $ | 2,001 |
Twelve months ended | |||||||
Aug. 31, 2017 | Aug. 31, 2016 | ||||||
Net Cash Provided by Operating Activities | $ | 3,226 | $ | 2,588 | |||
Net Cash Required by Investing Activities | (1,107 | ) | (864 | ) | |||
Net Cash Required by Financing Activities | (1,966 | ) | (3,742 | ) | |||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 27 | (7 | ) | ||||
Net Increase (Decrease) in Cash and Cash Equivalents | $ | 180 | $ | (2,025 | ) |
Twelve months ended | |||||||
Aug. 31, 2017 | Aug. 31, 2016 | ||||||
Net Cash Provided by Operating Activities | $ | 3,226 | $ | 2,588 | |||
Capital expenditures | (1,240 | ) | (923 | ) | |||
Free Cash Flow | $ | 1,986 | $ | 1,665 |
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