Exhibit 12
MONSANTO COMPANY
Ratio of Earnings to Fixed Charges(1)(2) | Year Ended Aug. 31, | |||||||||||||||||||
(Dollars in millions except for percentages) | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
EARNINGS: | ||||||||||||||||||||
Income from Continuing Operations Before Income Taxes | $ | 2,374 | $ | 1,490 | $ | 2,918 | $ | 2,926 | $ | 1,328 | ||||||||||
Add: | ||||||||||||||||||||
Fixed charges | 234 | 227 | 178 | 162 | 174 | |||||||||||||||
Dividends from affiliated companies | — | — | — | — | — | |||||||||||||||
Equity affiliate (income) expense — net | (21 | ) | (16 | ) | (17 | ) | (2 | ) | 34 | |||||||||||
Amortization of capitalized interest | 15 | 14 | 13 | 16 | 15 | |||||||||||||||
Less: | ||||||||||||||||||||
Capitalized interest | (22 | ) | (25 | ) | (34 | ) | (22 | ) | (14 | ) | ||||||||||
Earnings available for fixed charges | $ | 2,580 | $ | 1,690 | $ | 3,058 | $ | 3,080 | $ | 1,537 | ||||||||||
FIXED CHARGES: | ||||||||||||||||||||
Interest expense(3) | $ | 172 | $ | 167 | $ | 107 | $ | 110 | $ | 136 | ||||||||||
Capitalized interest | 22 | 25 | 34 | 22 | 14 | |||||||||||||||
Portion of rents representative of interest factor | 40 | 35 | 37 | 30 | 24 | |||||||||||||||
Total Fixed Charges | $ | 234 | $ | 227 | $ | 178 | $ | 162 | $ | 174 | ||||||||||
Ratio of Earnings to Fixed Charges | 11.03 | 7.44 | 17.18 | 19.01 | 8.83 | |||||||||||||||
(1) | Monsanto has not paid any preference security dividends and, therefore, has not included the ratio of combined fixed charges and preference security dividends to earnings for the relevant periods. | |
(2) | The operating results of the Dairy business have been conformed to discontinued operations presentation for all relevant fiscal years presented. | |
(3) | Includes amortization of deferred debt issuance costs and the interest component of the income tax provision. |
Debt to Capital Ratio(1) | Year Ended Aug. 31, | |||||||||||||||||||
(amounts in millions except for percentages) | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
Short-Term Debt | $ | 678 | $ | 241 | $ | 79 | $ | 24 | $ | 270 | ||||||||||
Long-Term Debt | 1,543 | 1,862 | 1,724 | 1,792 | 1,150 | |||||||||||||||
Total Debt | 2,221 | 2,103 | 1,803 | 1,816 | 1,420 | |||||||||||||||
Total Monsanto Company Shareowners’ Equity | 11,545 | 10,069 | 10,039 | 9,374 | 7,503 | |||||||||||||||
Debt-to-Capital Ratio | 16% | 17% | 15% | 16% | 16% |
(1) | Debt-to-capital ratio is the sum of short-term and long-term debt, divided by the sum of short-term and long-term debt and shareowners’ equity. |
Current Ratio(1) | Year Ended Aug. 31, | |||||||||||||||||||
(amounts in millions except for ratios) | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
Total Current Assets | $ | 8,809 | $ | 7,050 | $ | 7,783 | $ | 7,609 | $ | 5,084 | ||||||||||
Total Current Liabilities | 4,729 | 3,556 | 3,727 | 4,439 | 3,075 | |||||||||||||||
Current Ratio | 1.86 | 1.98 | 2.09 | 1.71 | 1.65 |
(1) | Current ratio represents total current assets divided by total current liabilities. |