Exhibit 99.5
Key Financial Data — Crop Year Basis
Dollars in millions, except per share amounts
Unaudited
CROP YEAR 2003
| FY03 | FY03 | FY03 | FY03 | FY03 | |||||||||||||||||
| 12 Months | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | |||||||||||||||||
| 9/1/02 - 8/31/03 | 6/1/03 - 8/31/03 | 3/1/03 - 5/31/03 | 12/1/02 - 2/28/03 | 9/1/02 - 11/30/02 | |||||||||||||||||
Financial Summary | |||||||||||||||||||||
| Net Sales | $ | 4,936 | $ | 1,307 | $ | 1,470 | $ | 1,301 | $ | 858 | |||||||||||
| Net Income (Loss) | 68 | (188 | ) | 174 | 100 | (18 | ) | ||||||||||||||
| Diluted Earnings (Loss) per Share | $ | 0.26 | $ | (0.72 | ) | $ | 0.67 | $ | 0.38 | $ | (0.07 | ) | |||||||||
Sales by Segment Summary | |||||||||||||||||||||
| Total seeds and genomics | $ | 1,905 | $ | 258 | $ | 615 | $ | 655 | $ | 377 | |||||||||||
| Roundup and other glyphosate-based agricultural herbicides | 1,804 | 708 | 463 | 373 | 260 | ||||||||||||||||
| All other agricultural productivity products | 1,227 | 341 | 392 | 273 | 221 | ||||||||||||||||
| Total agricultural productivity | 3,031 | 1,049 | 855 | 646 | 481 | ||||||||||||||||
Total Net Sales | $ | 4,936 | $ | 1,307 | $ | 1,470 | $ | 1,301 | $ | 858 | |||||||||||
Reconciliation of Earnings Before Interest and Taxes (EBIT) | |||||||||||||||||||||
| Seed and Genomics Segment EBIT | $ | 183 | $ | (145 | ) | $ | 139 | $ | 146 | $ | 43 | ||||||||||
| Agricultural Productivity Segment EBIT | — | (137 | ) | 137 | 55 | (55 | ) | ||||||||||||||
| Total Company EBIT | 183 | (282 | ) | 276 | 201 | (12 | ) | ||||||||||||||
| Net Interest Expense | 69 | 17 | 18 | 19 | 15 | ||||||||||||||||
| Income Tax Expense (Benefit) | 34 | (111 | ) | 84 | 70 | (9 | ) | ||||||||||||||
Income (Loss) Before Cumulative Effect of Accounting Change | $ | 80 | $ | (188 | ) | $ | 174 | $ | 112 | $ | (18 | ) | |||||||||
Depreciation and Amortization Summary | |||||||||||||||||||||
| Seed and Genomics Segment Depreciation | $ | 96 | $ | 24 | $ | 24 | $ | 24 | $ | 24 | |||||||||||
| Agricultural Productivity Segment Depreciation | 233 | 59 | 58 | 58 | 58 | ||||||||||||||||
| Total Company Depreciation | $ | 329 | $ | 83 | $ | 82 | $ | 82 | $ | 82 | |||||||||||
| Seed and Genomics Segment Amortization | $ | 121 | $ | 32 | $ | 31 | $ | 32 | $ | 26 | |||||||||||
| Agricultural Productivity Segment Amortization | 3 | 1 | — | 1 | 1 | ||||||||||||||||
| Total Company Amortization | $ | 124 | $ | 33 | $ | 31 | $ | 33 | $ | 27 | |||||||||||
Total Company Depreciation and Amortization | $ | 453 | $ | 116 | $ | 113 | $ | 115 | $ | 109 | |||||||||||
Reconciliation of Free Cash Flow Net Cash Provided (Required) by Operations | $ | 1,128 | |||||||||||||||||||
| Net Cash Provided (Required) by Investing Activities | (482 | ) | |||||||||||||||||||
Free Cash Flow * | $ | 646 | |||||||||||||||||||
* Sum of cash flows from operations and investing activities
| Page 1 | Key Financial Data |
Key Financial Data — Crop Year Basis
Dollars in millions, except per share amounts
Unaudited
CROP YEAR 2003
| FY03 | FY03 | FY03 | FY03 | FY03 | ||||||||||||||||||
| Full Year | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | ||||||||||||||||||
| 9/1/02 - 8/31/03 | 6/1/03 - 8/31/03 | 3/1/03 - 5/31/03 | 12/1/02 - 2/28/03 | 9/1/02 - 11/30/02 | ||||||||||||||||||
Net Sales by Geography** | ||||||||||||||||||||||
| North America | $ | 3,076 | $ | 770 | $ | 984 | $ | 840 | $ | 482 | ||||||||||||
| Latin America | 887 | 317 | 170 | 190 | 210 | |||||||||||||||||
| Europe — Africa | 709 | 163 | 230 | 196 | 120 | |||||||||||||||||
| Asia — Pacific | 264 | 57 | 86 | 75 | 46 | |||||||||||||||||
Total Company | $ | 4,936 | $ | 1,307 | $ | 1,470 | $ | 1,301 | $ | 858 | ||||||||||||
Net Trade Receivables by Geography** | ||||||||||||||||||||||
| United States | $ | 1,243 | ||||||||||||||||||||
| Argentina | 229 | |||||||||||||||||||||
| Brazil | 256 | |||||||||||||||||||||
| All Other Countries | 568 | |||||||||||||||||||||
Total Company | $ | 2,296 | ||||||||||||||||||||
Gross Profit by Segment Summary | ||||||||||||||||||||||
| Total seeds and genomics | $ | 1,085 | $ | 105 | $ | 363 | $ | 396 | $ | 221 | ||||||||||||
| Roundup and other glyphosate-based agricultural herbicides | 699 | 337 | 170 | 134 | 58 | |||||||||||||||||
| All other agricultural productivity products | 531 | 147 | 193 | 114 | 77 | |||||||||||||||||
| Total agricultural productivity | 1,230 | 484 | 363 | 248 | 135 | |||||||||||||||||
Total Gross Profit | $ | 2,315 | $ | 589 | $ | 726 | $ | 644 | $ | 356 | ||||||||||||
Roundup Branded Sales Volume Detail (Millions of Gallons) | ||||||||||||||||||||||
| United States | 36 | 17 | 9 | 6 | 4 | |||||||||||||||||
| Ex-United States | 59 | 18 | 17 | 13 | 11 | |||||||||||||||||
Total branded sales volume | 95 | 35 | 26 | 19 | 15 | |||||||||||||||||
| Roundup Branded Average Net Sales Price | Full Year | |||||||||||||||||||||
| Per Gallon | Crop Year 2003 | |||||||||||||||||||||
| United States | $ | 18.50 | ||||||||||||||||||||
| Ex-United States | $ | 12.50 | ||||||||||||||||||||
** Attributed to relevant Monsanto legal entities. For example, a sale from the United States to a customer in Latin America is reported as a U.S. export sale.
| Page 3 | Key Financial Data |
Key Financial Data — Crop Year Basis
Dollars in millions, except per share amounts
Unaudited
CROP YEAR 2002
| FY02 | FY02 | FY02 | FY02 | FY02 | |||||||||||||||||
| Full Year | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | |||||||||||||||||
| 9/1/01 - 8/31/02 | 6/1/02 - 8/31/02 | 3/1/02 - 5/31/02 | 12/1/01 - 2/28/02 | 9/1/01 - 11/30/01 | |||||||||||||||||
Financial Summary | |||||||||||||||||||||
| Net Sales | $ | 4,940 | $ | 1,190 | $ | 1,328 | $ | 1,359 | $ | 1,063 | |||||||||||
| Net Income (Loss) | (1,756 | ) | (27 | ) | 88 | (1,816 | ) | (1 | ) | ||||||||||||
| Diluted Earnings (Loss) per Share | $ | (6.67 | ) | $ | (0.10 | ) | $ | 0.33 | $ | (6.90 | ) | $ | — | ||||||||
Sales by Segment Summary | |||||||||||||||||||||
| Total seeds and genomics | $ | 1,560 | $ | 72 | $ | 469 | $ | 627 | $ | 392 | |||||||||||
| Roundup and other glyphosate-based agricultural herbicides | 2,107 | 774 | 454 | 429 | 450 | ||||||||||||||||
| All other agricultural productivity products | 1,273 | 344 | 405 | 303 | 221 | ||||||||||||||||
| Total agricultural productivity | 3,380 | 1,118 | 859 | 732 | 671 | ||||||||||||||||
Total Net Sales | $ | 4,940 | $ | 1,190 | $ | 1,328 | $ | 1,359 | $ | 1,063 | |||||||||||
Reconciliation of Earnings Before Interest and Taxes (EBIT) | |||||||||||||||||||||
| Seed and Genomics Segment EBIT | $ | (302 | ) | $ | (328 | ) | $ | 52 | $ | 33 | $ | (59 | ) | ||||||||
| Agricultural Productivity Segment EBIT | 439 | 292 | 96 | (7 | ) | 58 | |||||||||||||||
| Total Company EBIT | 137 | (36 | ) | 148 | 26 | (1 | ) | ||||||||||||||
| Net Interest Expense | 54 | 11 | 16 | 23 | 4 | ||||||||||||||||
| Income Tax Expense (Benefit) | 17 | (20 | ) | 44 | (3 | ) | (4 | ) | |||||||||||||
Income (Loss) Before Cumulative Effect of Accounting Change | $ | 66 | $ | (27 | ) | $ | 88 | $ | 6 | $ | (1 | ) | |||||||||
Depreciation and Amortization Summary | |||||||||||||||||||||
| Seed and Genomics Segment Depreciation | $ | 93 | $ | 23 | $ | 25 | $ | 24 | $ | 21 | |||||||||||
| Agricultural Productivity Segment Depreciation | 228 | 58 | 60 | 60 | 50 | ||||||||||||||||
| Total Company Depreciation | $ | 321 | $ | 81 | $ | 85 | $ | 84 | $ | 71 | |||||||||||
| Seed and Genomics Segment Amortization | $ | 164 | $ | 36 | $ | 32 | $ | 34 | $ | 62 | |||||||||||
| Agricultural Productivity Segment Amortization | 5 | 1 | 1 | 2 | 1 | ||||||||||||||||
| Total Company Amortization | $ | 169 | $ | 37 | $ | 33 | $ | 36 | $ | 63 | |||||||||||
Total Company Depreciation and Amortization | $ | 490 | $ | 118 | $ | 118 | $ | 120 | $ | 134 | |||||||||||
Reconciliation of Free Cash Flow | |||||||||||||||||||||
| Net Cash Provided (Required) by Operations | $ | 855 | |||||||||||||||||||
| Net Cash Provided (Required) by Investing Activities | (274 | ) | |||||||||||||||||||
Free Cash Flow * | $ | 581 | |||||||||||||||||||
* Sum of cash flows from operations and investing activities
| Page 4 | Key Financial Data |
Key Financial Data — Crop Year Basis
Dollars in millions, except per share amounts
Unaudited
CROP YEAR 2002
| FY02 | FY02 | FY02 | FY02 | FY02 | ||||||||||||||||||
| Full Year | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | ||||||||||||||||||
| 9/1/01 - 8/31/02 | 6/1/02 - 8/31/02 | 3/1/02 - 5/31/02 | 12/1/01 - 2/28/02 | 9/1/01 - 11/30/01 | ||||||||||||||||||
Net Sales by Geography** | ||||||||||||||||||||||
| North America | $ | 3,227 | $ | 877 | $ | 947 | $ | 886 | $ | 517 | ||||||||||||
| Latin America | 757 | 102 | 99 | 203 | 353 | |||||||||||||||||
| Europe — Africa | 593 | 133 | 173 | 175 | 112 | |||||||||||||||||
| Asia — Pacific | 363 | 78 | 109 | 95 | 81 | |||||||||||||||||
Total Company | $ | 4,940 | $ | 1,190 | $ | 1,328 | $ | 1,359 | $ | 1,063 | ||||||||||||
Net Trade Receivables by Geography** | ||||||||||||||||||||||
| United States | $ | 1,350 | ||||||||||||||||||||
| Argentina | 284 | |||||||||||||||||||||
| Brazil | 251 | |||||||||||||||||||||
| All Other Countries | 566 | |||||||||||||||||||||
Total Company | $ | 2,451 | ||||||||||||||||||||
Gross Profit by Segment Summary | ||||||||||||||||||||||
| Total seeds and genomics | $ | 753 | $ | (38 | ) | $ | 261 | $ | 347 | $ | 183 | |||||||||||
| Roundup and other glyphosate-based agricultural herbicides | 994 | 447 | 195 | 164 | 188 | |||||||||||||||||
| All other agricultural productivity products | 498 | 135 | 190 | 99 | 74 | |||||||||||||||||
| Total agricultural productivity | 1,492 | 582 | 385 | 263 | 262 | |||||||||||||||||
Total Gross Profit | $ | 2,245 | $ | 544 | $ | 646 | $ | 610 | $ | 445 | ||||||||||||
Roundup Branded Sales Volume Detail (Millions of Gallons) | ||||||||||||||||||||||
| United States | 42 | 20 | 8 | 7 | 7 | |||||||||||||||||
| Ex-United States | 66 | 16 | 16 | 16 | 18 | |||||||||||||||||
Total branded sales volume | 108 | 36 | 24 | 23 | 25 | |||||||||||||||||
| Roundup Branded Average Net Sales Price Per Gallon | Crop Year 2002 | Calendar Year 2002 | ||||||||||||||||||||
| United States | $ | 23.50 | $ | 23 | ||||||||||||||||||
| Ex-United States | $ | 13.00 | $ | 12 | ||||||||||||||||||
** Attributed to relevant Monsanto legal entities. For example, a sale from the United States to a customer in Latin America is reported as a U.S. export sale.
| Page 6 | Key Financial Data |
Key Financial Data — Crop Year Basis
Dollars in millions, except per share amounts
Unaudited
CROP YEAR 2001
| FY01 | FY01 | FY01 | FY01 | FY01 | |||||||||||||||||
| Full Year | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | |||||||||||||||||
| 9/1/00 - 8/31/01 | 6/1/01 - 8/31/01 | 3/1/01 - 5/31/01 | 12/1/00 - 2/28/01 | 9/1/00 - 11/30/00 | |||||||||||||||||
Financial Summary | |||||||||||||||||||||
| Net Sales | $ | 5,333 | $ | 1,524 | $ | 1,588 | $ | 1,273 | $ | 948 | |||||||||||
| Net Income (Loss) | 300 | 186 | 160 | 27 | (73 | ) | |||||||||||||||
| Diluted Earnings (Loss) per Share | $ | 1.15 | $ | 0.70 | $ | 0.61 | $ | 0.10 | $ | (0.28 | ) | ||||||||||
Sales by Segment Summary | |||||||||||||||||||||
| Total seeds and genomics | $ | 1,504 | $ | 305 | $ | 472 | $ | 480 | $ | 247 | |||||||||||
| Roundup and other glyphosate-based agricultural herbicides | 2,507 | 906 | 633 | 497 | 471 | ||||||||||||||||
| All other agricultural productivity products | 1,322 | 313 | 483 | 296 | 230 | ||||||||||||||||
| Total agricultural productivity | 3,829 | 1,219 | 1,116 | 793 | 701 | ||||||||||||||||
Total Net Sales | $ | 5,333 | $ | 1,524 | $ | 1,588 | $ | 1,273 | $ | 948 | |||||||||||
Reconciliation of Earnings Before Interest and Taxes (EBIT) | |||||||||||||||||||||
| Seed and Genomics Segment EBIT | $ | (423 | ) | $ | (126 | ) | $ | 2 | $ | (92 | ) | $ | (207 | ) | |||||||
| Agricultural Productivity Segment EBIT | 977 | 439 | 278 | 157 | 103 | ||||||||||||||||
| Total Company EBIT | 554 | 313 | 280 | 65 | (104 | ) | |||||||||||||||
| Net Interest Expense | 67 | 17 | 22 | 20 | 8 | ||||||||||||||||
| Income Tax Expense (Benefit) | 187 | 110 | 98 | 18 | (39 | ) | |||||||||||||||
Income (Loss) Before Cumulative Effect of Accounting Change | $ | 300 | $ | 186 | $ | 160 | $ | 27 | $ | (73 | ) | ||||||||||
Depreciation and Amortization Summary | |||||||||||||||||||||
| Seed and Genomics Segment Depreciation | $ | 86 | $ | 23 | $ | 21 | $ | 23 | $ | 19 | |||||||||||
| Agricultural Productivity Segment Depreciation | 207 | 56 | 50 | 56 | 45 | ||||||||||||||||
| Total Company Depreciation | $ | 293 | $ | 79 | $ | 71 | $ | 79 | $ | 64 | |||||||||||
| Seed and Genomics Segment Amortization | $ | 241 | $ | 61 | $ | 58 | $ | 63 | $ | 59 | |||||||||||
| Agricultural Productivity Segment Amortization | 5 | 1 | 1 | 2 | 1 | ||||||||||||||||
| Total Company Amortization | $ | 246 | $ | 62 | $ | 59 | $ | 65 | $ | 60 | |||||||||||
Total Company Depreciation and Amortization | $ | 539 | $ | 141 | $ | 130 | $ | 144 | $ | 124 | |||||||||||
| Reconciliation of Free Cash Flow Net Cash Provided (Required) by Operations | $ | 740 | |||||||||||||||||||
| Net Cash Provided (Required) by Investing Activities | (665 | ) | |||||||||||||||||||
Free Cash Flow * | $ | 75 | |||||||||||||||||||
Sum of cash flows from operations and investing activities
| Page 7 | Key Financial Data |
Key Financial Data — Crop Year Basis
Dollars in millions, except per share amounts
Unaudited
CROP YEAR 2001
| FY01 | FY01 | FY01 | FY01 | FY01 | ||||||||||||||||||
| Full Year | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | ||||||||||||||||||
| 9/1/00 - 8/31/01 | 6/1/01 - 8/31/01 | 3/1/01 - 5/31/01 | 12/1/00 - 2/28/01 | 9/1/00 - 11/30/00 | ||||||||||||||||||
Net Sales by Geography** | ||||||||||||||||||||||
| North America | $ | 3,318 | $ | 972 | $ | 1,222 | $ | 702 | $ | 422 | ||||||||||||
| Latin America | 1,017 | 347 | 43 | 278 | 349 | |||||||||||||||||
| Europe — Africa | 622 | 129 | 211 | 173 | 109 | |||||||||||||||||
| Asia — Pacific | 376 | 76 | 112 | 120 | 68 | |||||||||||||||||
Total Company | $ | 5,333 | $ | 1,524 | $ | 1,588 | $ | 1,273 | $ | 948 | ||||||||||||
Net Trade Receivables by Geography** | ||||||||||||||||||||||
| United States | $ | 1,698 | ||||||||||||||||||||
| Argentina | 380 | |||||||||||||||||||||
| Brazil | 293 | |||||||||||||||||||||
| All Other Countries | 619 | |||||||||||||||||||||
Total Company | $ | 2,990 | ||||||||||||||||||||
Gross Profit by Segment Summary | ||||||||||||||||||||||
| Total seeds and genomics | $ | 684 | $ | 148 | $ | 278 | $ | 177 | $ | 81 | ||||||||||||
| Roundup and other glyphosate-based agricultural herbicides | 1,304 | 548 | 322 | 223 | 211 | |||||||||||||||||
| All other agricultural productivity products | 579 | 134 | 241 | 120 | 84 | |||||||||||||||||
| Total agricultural productivity | 1,883 | 682 | 563 | 343 | 295 | |||||||||||||||||
Total Gross Profit | $ | 2,567 | $ | 830 | $ | 841 | $ | 520 | $ | 376 | ||||||||||||
Roundup Branded Sales Volume Detail (Millions of Gallons) | ||||||||||||||||||||||
| United States | 43 | 20 | 13 | 5 | 5 | |||||||||||||||||
| Ex-United States | 78 | 19 | 19 | 20 | 20 | |||||||||||||||||
Total branded sales volume | 121 | 39 | 32 | 25 | 25 | |||||||||||||||||
| Roundup Branded Average Net Sales Price Per Gallon | Crop Year 2001 | Calendar Year 2001 | ||||||||||||||||||||
| United States | $ | 27 | $ | 26 | ||||||||||||||||||
| Ex-United States | $ | 13 | $ | 13 | ||||||||||||||||||
** Attributed to relevant Monsanto legal entities. For example, a sale from the United States to a customer in Latin America is reported as a U.S. export sale.
| Page 8 | Key Financial Data |
Income Statements — Crop Year Basis
Dollars in millions, except per share amounts
Unaudited
CROP YEAR 2003
| FY03 | FY03 | FY03 | FY03 | FY03 | |||||||||||||||||
| 12 months | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | |||||||||||||||||
| 9/1/02 - 8/31/03 | 6/1/03 - 8/31/03 | 3/1/03 - 5/31/03 | 12/1/02 - 2/28/03 | 9/1/02 - 11/30/02 | |||||||||||||||||
Net Sales | $ | 4,936 | $ | 1,307 | $ | 1,470 | $ | 1,301 | $ | 858 | |||||||||||
| Cost of Goods Sold | 2,621 | 718 | 744 | 657 | 502 | ||||||||||||||||
Gross Profit | 2,315 | 589 | 726 | 644 | 356 | ||||||||||||||||
Operating Expenses: | |||||||||||||||||||||
| Selling, General and Administrative Expenses | 1,045 | 281 | 301 | 244 | 219 | ||||||||||||||||
| Bad-Debt Expense | 72 | 33 | 5 | 13 | 21 | ||||||||||||||||
| Research and Development Expenses | 510 | 131 | 123 | 135 | 121 | ||||||||||||||||
| Amortization and Adjustments of Goodwill | — | — | — | — | — | ||||||||||||||||
| Restructuring Charges — Net | 34 | (5 | ) | — | 31 | 8 | |||||||||||||||
| Total Operating Expenses | 1,661 | 440 | 429 | 423 | 369 | ||||||||||||||||
Income (Loss) from Operations | 654 | 149 | 297 | 221 | (13 | ) | |||||||||||||||
| Interest Expense — Net | 69 | 17 | 18 | 19 | 15 | ||||||||||||||||
| Other Expense (Income) — Net | 471 | 431 | 21 | 20 | (1 | ) | |||||||||||||||
Income (Loss) Before Taxes and Cumulative Effect of Acct Change | 114 | (299 | ) | 258 | 182 | (27 | ) | ||||||||||||||
| Income Tax Expense (Benefit) | 34 | (111 | ) | 84 | 70 | (9 | ) | ||||||||||||||
Income (Loss) Before Cumulative Effect of Accounting Change | 80 | (188 | ) | 174 | 112 | (18 | ) | ||||||||||||||
| Cumulative Effect of Accounting Change — Net of Tax | (12 | ) | — | — | (12 | ) | — | ||||||||||||||
Net Income (Loss) | $ | 68 | $ | (188 | ) | $ | 174 | $ | 100 | $ | (18 | ) | |||||||||
Earnings Before Interest and Taxes (EBIT)* | $ | 183 | $ | (282 | ) | $ | 276 | $ | 201 | $ | (12 | ) | |||||||||
| EPS — Basic (Net Income (Loss) before Accounting Change) | $ | 0.31 | $ | (0.72 | ) | $ | 0.67 | $ | 0.43 | $ | (0.07 | ) | |||||||||
| EPS — Basic (Cumulative Effect of Accounting Change — Net of tax) | $ | (0.05 | ) | $ | — | $ | — | $ | (0.05 | ) | $ | — | |||||||||
| EPS — Basic (Net Income (Loss)) | $ | 0.26 | $ | (0.72 | ) | $ | 0.67 | $ | 0.38 | $ | (0.07 | ) | |||||||||
| EPS — Diluted (Net Income (Loss) before Accounting Change) | $ | 0.31 | $ | (0.72 | ) | $ | 0.67 | $ | 0.43 | $ | (0.07 | ) | |||||||||
| EPS — Diluted (Cumulative Effect of Accounting Change — Net of tax) | $ | (0.05 | ) | $ | — | $ | — | $ | (0.05 | ) | $ | — | |||||||||
| EPS — Diluted (Net Income (Loss)) | $ | 0.26 | $ | (0.72 | ) | $ | 0.67 | $ | 0.38 | $ | (0.07 | ) | |||||||||
Shares Outstanding: | |||||||||||||||||||||
| Basic Shares | 261.6 | 262.1 | 261.4 | 261.4 | 261.4 | ||||||||||||||||
| Diluted Shares | 261.8 | 264.4 | 261.7 | 261.4 | 261.4 | ||||||||||||||||
* A reconciliation of earnings before interest and taxes (EBIT) is provided in the Key Financial Data worksheet.
| Income Statement | Page 10 |
Income Statements — Crop Year Basis
Dollars in millions, except per share amounts
Unaudited
CROP YEAR 2002
| FY02 | FY02 | FY02 | FY02 | FY02 | |||||||||||||||||
| Full Year | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | |||||||||||||||||
| 9/1/01 - 8/31/02 | 6/1/02 - 8/31/02 | 3/1/02 - 5/31/02 | 12/1/01 - 2/28/02 | 9/1/01 - 11/30/01 | |||||||||||||||||
Net Sales | $ | 4,940 | $ | 1,190 | $ | 1,328 | $ | 1,359 | $ | 1,063 | |||||||||||
| Cost of Goods Sold | 2,695 | 646 | 682 | 749 | 618 | ||||||||||||||||
Gross Profit | 2,245 | 544 | 646 | 610 | 445 | ||||||||||||||||
Operating Expenses: | |||||||||||||||||||||
| Selling, General and Administrative Expenses | 1,057 | 221 | 312 | 263 | 261 | ||||||||||||||||
| Bad-Debt Expense | 185 | 173 | 2 | 3 | 7 | ||||||||||||||||
| Research and Development Expenses | 546 | 134 | 135 | 132 | 145 | ||||||||||||||||
| Amortization and Adjustments of Goodwill | 41 | — | — | 9 | 32 | ||||||||||||||||
| Restructuring Charges — Net | 132 | 64 | (1 | ) | 61 | 8 | |||||||||||||||
| Total Operating Expenses | 1,961 | 592 | 448 | 468 | 453 | ||||||||||||||||
Income (Loss) from Operations | 284 | (48 | ) | 198 | 142 | (8 | ) | ||||||||||||||
| Interest Expense — Net | 54 | 11 | 16 | 23 | 4 | ||||||||||||||||
| Other Expense (Income) — Net | 147 | (12 | ) | 50 | 116 | (7 | ) | ||||||||||||||
Income (Loss) Before Taxes and Cumulative Effect of Acct Change | 83 | (47 | ) | 132 | 3 | (5 | ) | ||||||||||||||
| Income Tax Expense (Benefit) | 17 | (20 | ) | 44 | (3 | ) | (4 | ) | |||||||||||||
Income (Loss) Before Cumulative Effect of Accounting Change | 66 | (27 | ) | 88 | 6 | (1 | ) | ||||||||||||||
| Cumulative Effect of Accounting Change — Net of Tax | (1,822 | ) | — | — | (1,822 | ) | — | ||||||||||||||
Net Income (Loss) | $ | (1,756 | ) | $ | (27 | ) | $ | 88 | $ | (1,816 | ) | $ | (1 | ) | |||||||
Earnings Before Interest and Taxes (EBIT)* | $ | 137 | $ | (36 | ) | $ | 148 | $ | 26 | $ | (1 | ) | |||||||||
| EPS — Basic (Net Income (Loss) before Accounting Change) | $ | 0.25 | $ | (0.10 | ) | $ | 0.34 | $ | 0.02 | $ | — | ||||||||||
| EPS — Basic (Cumulative Effect of Accounting Change — Net of tax) | $ | (7.02 | ) | $ | — | $ | — | $ | (7.06 | ) | $ | — | |||||||||
| EPS — Basic (Net Income (Loss)) | $ | (6.77 | ) | $ | (0.10 | ) | $ | 0.34 | $ | (7.04 | ) | $ | — | ||||||||
| EPS — Diluted (Net Income (Loss) before Accounting Change) | $ | 0.25 | $ | (0.10 | ) | $ | 0.33 | $ | 0.02 | $ | — | ||||||||||
| EPS — Diluted (Cumulative Effect of Accounting Change — Net of tax) | $ | (6.92 | ) | $ | — | $ | — | $ | (6.92 | ) | $ | — | |||||||||
| EPS — Diluted (Net Income (Loss)) | $ | (6.67 | ) | $ | (0.10 | ) | $ | 0.33 | $ | (6.90 | ) | $ | — | ||||||||
Shares Outstanding: | |||||||||||||||||||||
| Basic Shares | 259.6 | 261.3 | 260.7 | 258.1 | 258.1 | ||||||||||||||||
| Diluted Shares | 263.3 | 261.8 | 264.8 | 263.2 | 263.6 | ||||||||||||||||
* A reconciliation of earnings before interest and taxes (EBIT) is provided in the Key Financial Data worksheet.
| Income Statement | Page 11 |
Income Statements — Crop Year Basis
Dollars in millions, except per share amounts
Unaudited
CROP YEAR 2001
| FY01 | FY01 | FY01 | FY01 | FY01 | |||||||||||||||||
| Full Year | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | |||||||||||||||||
| 9/1/00 - 8/31/01 | 6/1/01 - 8/31/01 | 3/1/01 - 5/31/01 | 12/1/00 - 2/28/01 | 9/1/00 - 11/30/00 | |||||||||||||||||
Net Sales | $ | 5,333 | $ | 1,524 | $ | 1,588 | $ | 1,273 | $ | 948 | |||||||||||
| Cost of Goods Sold | 2,766 | 694 | 747 | 753 | 572 | ||||||||||||||||
Gross Profit | 2,567 | 830 | 841 | 520 | 376 | ||||||||||||||||
Operating Expenses: | |||||||||||||||||||||
| Selling, General and Administrative Expenses | 1,166 | 299 | 352 | 267 | 248 | ||||||||||||||||
| Bad-Debt Expense | 12 | 7 | 2 | — | 3 | ||||||||||||||||
| Research and Development Expenses | 560 | 135 | 143 | 143 | 139 | ||||||||||||||||
| Amortization and Adjustments of Goodwill | 125 | 30 | 30 | 35 | 30 | ||||||||||||||||
| Restructuring Charges — Net | 111 | 32 | 20 | 16 | 43 | ||||||||||||||||
| Total Operating Expenses | 1,974 | 503 | 547 | 461 | 463 | ||||||||||||||||
Income (Loss) from Operations | 593 | 327 | 294 | 59 | (87 | ) | |||||||||||||||
| Interest Expense — Net | 67 | 17 | 22 | 20 | 8 | ||||||||||||||||
| Other Expense (Income) — Net | 39 | 14 | 14 | (6 | ) | 17 | |||||||||||||||
Income (Loss) Before Taxes and Cumulative Effect of Acct Change | 487 | 296 | 258 | 45 | (112 | ) | |||||||||||||||
| Income Tax Expense (Benefit) | 187 | 110 | 98 | 18 | (39 | ) | |||||||||||||||
Income (Loss) Before Cumulative Effect of Accounting Change | 300 | 186 | 160 | 27 | (73 | ) | |||||||||||||||
| Cumulative Effect of Accounting Change — Net of Tax | — | — | — | — | — | ||||||||||||||||
Net Income (Loss) | $ | 300 | $ | 186 | $ | 160 | $ | 27 | $ | (73 | ) | ||||||||||
Earnings Before Interest and Taxes (EBIT)* | $ | 554 | $ | 313 | $ | 280 | $ | 65 | $ | (104 | ) | ||||||||||
| EPS — Basic (Net Income (Loss) before Accounting Change) | $ | 1.16 | $ | 0.72 | $ | 0.62 | $ | 0.10 | $ | (0.28 | ) | ||||||||||
| EPS — Basic (Cumulative Effect of Accounting Change — Net of tax) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
| EPS — Basic (Net Income (Loss)) | $ | 1.16 | $ | 0.72 | $ | 0.62 | $ | 0.10 | $ | (0.28 | ) | ||||||||||
| EPS — Diluted (Net Income (Loss) before Accounting Change) | $ | 1.15 | $ | 0.70 | $ | 0.61 | $ | 0.10 | $ | (0.28 | ) | ||||||||||
| EPS — Diluted (Cumulative Effect of Accounting Change — Net of tax) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
| EPS — Diluted (Net Income (Loss)) | $ | 1.15 | $ | 0.70 | $ | 0.61 | $ | 0.10 | $ | (0.28 | ) | ||||||||||
Shares Outstanding: | |||||||||||||||||||||
| Basic Shares | 258.1 | 258.1 | 258.1 | 258.0 | 258.0 | ||||||||||||||||
| Diluted Shares | 262.2 | 263.8 | 263.7 | 258.8 | 262.3 | ||||||||||||||||
* A reconciliation of earnings before interest and taxes (EBIT) is provided in the Key Financial Data worksheet.
| Income Statement | Page 12 |
Items Included in Reported Earnings
Dollars in millions, except per share amounts
Unaudited
CROP YEAR 2003
| FY03 | FY03 | FY03 | FY03 | FY03 | ||||||||||||||||
| 12 months | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | ||||||||||||||||
| 9/1/02 - 8/31/03 | 6/1/03 - 8/31/03 | 3/1/03 - 5/31/03 | 12/1/02 - 2/28/03 | 9/1/02 - 11/30/02 | ||||||||||||||||
Items Included in Reported Earnings PRETAX | ||||||||||||||||||||
| Adoption of FAS 142 (goodwill impairment) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Adoption of FAS 143 (asset retirement obligations) | $ | (19 | ) | $ | — | $ | — | $ | (19 | ) | $ | — | ||||||||
| Anniston settlement | $ | (396 | ) | $ | (396 | ) | $ | — | $ | — | $ | — | ||||||||
| Argentine bad-debt reserve | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Japan asset sale | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Net restructuring charges | $ | (41 | ) | $ | 8 | $ | — | $ | (35 | ) | $ | (14 | ) | |||||||
Items Included in Reported Earnings AFTERTAX | ||||||||||||||||||||
| Adoption of FAS 142 (goodwill impairment) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Adoption of FAS 143 (asset retirement obligations) | $ | (12 | ) | $ | — | $ | — | $ | (12 | ) | $ | — | ||||||||
| Anniston settlement | $ | (252 | ) | $ | (252 | ) | $ | — | $ | — | $ | — | ||||||||
| Argentine bad-debt reserve | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Japan asset sale | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Net restructuring charges | $ | (27 | ) | $ | 4 | $ | — | $ | (22 | ) | $ | (9 | ) | |||||||
Items Included in Reported Earnings (Per Diluted Share Basis) PRETAX | ||||||||||||||||||||
| Adoption of FAS 142 (goodwill impairment) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Adoption of FAS 143 (asset retirement obligations) | $ | (0.07 | ) | $ | — | $ | — | $ | (0.07 | ) | $ | — | ||||||||
| Anniston settlement | $ | (1.50 | ) | $ | (1.51 | ) | $ | — | $ | — | $ | — | ||||||||
| Argentine bad-debt reserve | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Japan asset sale | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Net restructuring charges | $ | (0.16 | ) | $ | 0.03 | $ | — | $ | (0.13 | ) | $ | (0.06 | ) | |||||||
Items Included in Reported Earnings (Per Diluted Share Basis) AFTERTAX | ||||||||||||||||||||
| Adoption of FAS 142 (goodwill impairment) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Adoption of FAS 143 (asset retirement obligations) | $ | (0.05 | ) | $ | — | $ | — | $ | (0.05 | ) | $ | — | ||||||||
| Anniston settlement | $ | (0.96 | ) | $ | (0.96 | ) | $ | — | $ | — | $ | — | ||||||||
| Argentine bad-debt reserve | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Japan asset sale | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Net restructuring charges | $ | (0.10 | ) | $ | 0.02 | $ | — | $ | (0.08 | ) | $ | (0.04 | ) | |||||||
| Items Included | Page 13 |
Items Included in Reported Earnings
Dollars in millions, except per share amounts
Unaudited
CROP YEAR 2002
| FY02 | FY02 | FY02 | FY02 | FY02 | ||||||||||||||||
| Full Year | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | ||||||||||||||||
| 9/1/01 - 8/31/02 | 6/1/02 - 8/31/02 | 3/1/02 - 5/31/02 | 12/1/01 - 2/28/02 | 9/1/01 - 11/30/01 | ||||||||||||||||
Items Included in Reported Earnings PRETAX | ||||||||||||||||||||
| Adoption of FAS 142 (goodwill impairment) | $ | (1,984 | ) | $ | — | $ | — | $ | (1,984 | ) | $ | — | ||||||||
| Adoption of FAS 143 (asset retirement obligations) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Argentine bad-debt reserve | $ | (154 | ) | $ | (154 | ) | $ | — | $ | — | $ | — | ||||||||
| Japan asset sale | $ | 32 | $ | 32 | $ | — | $ | — | $ | — | ||||||||||
| Net restructuring charges | $ | (218 | ) | $ | (75 | ) | $ | — | $ | (132 | ) | $ | (11 | ) | ||||||
Items Included in Reported Earnings AFTERTAX | ||||||||||||||||||||
| Adoption of FAS 142 (goodwill impairment) | $ | (1,822 | ) | $ | — | $ | — | $ | (1,822 | ) | $ | — | ||||||||
| Adoption of FAS 143 (asset retirement obligations) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Argentine bad-debt reserve | $ | (100 | ) | $ | (100 | ) | $ | — | $ | — | $ | — | ||||||||
| Japan asset sale | $ | 21 | $ | 21 | $ | — | $ | — | $ | — | ||||||||||
| Net restructuring charges | $ | (142 | ) | $ | (49 | ) | $ | — | $ | (86 | ) | $ | (7 | ) | ||||||
Items Included in Reported Earnings (Per Diluted Share Basis) PRETAX | ||||||||||||||||||||
| Adoption of FAS 142 (goodwill impairment) | $ | (7.53 | ) | $ | — | $ | — | $ | (7.53 | ) | $ | — | ||||||||
| Adoption of FAS 143 (asset retirement obligations) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Argentine bad-debt reserve | $ | (0.59 | ) | $ | (0.59 | ) | $ | — | $ | — | $ | — | ||||||||
| Japan asset sale | $ | 0.12 | $ | 0.12 | $ | — | $ | — | $ | — | ||||||||||
| Net restructuring charges | $ | (0.83 | ) | $ | (0.29 | ) | $ | — | $ | (0.50 | ) | $ | (0.04 | ) | ||||||
Items Included in Reported Earnings (Per Diluted Share Basis) AFTERTAX | ||||||||||||||||||||
| Adoption of FAS 142 (goodwill impairment) | $ | (6.92 | ) | $ | — | $ | — | $ | (6.92 | ) | $ | — | ||||||||
| Adoption of FAS 143 (asset retirement obligations) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Argentine bad-debt reserve | $ | (0.38 | ) | $ | (0.38 | ) | $ | — | $ | — | $ | — | ||||||||
| Japan asset sale | $ | 0.08 | $ | 0.08 | $ | — | $ | — | $ | — | ||||||||||
| Net restructuring charges | $ | (0.54 | ) | $ | (0.19 | ) | $ | — | $ | (0.33 | ) | $ | (0.02 | ) | ||||||
| Items Included | Page 14 |
Items Included in Reported Earnings
Dollars in millions, except per share amounts
Unaudited
CROP YEAR 2001
| FY01 | FY01 | FY01 | FY01 | FY01 | ||||||||||||||||
| Full Year | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | ||||||||||||||||
| 9/1/00 - 8/31/01 | 6/1/01 - 8/31/01 | 3/1/01 - 5/31/01 | 12/1/00 - 2/28/01 | 9/1/00 - 11/30/00 | ||||||||||||||||
Items Included in Reported Earnings PRETAX | ||||||||||||||||||||
| Adoption of FAS 142 (goodwill impairment) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Adoption of FAS 143 (asset retirement obligations) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Argentine bad-debt reserve | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Japan asset sale | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Net restructuring charges | $ | (170 | ) | $ | (48 | ) | $ | (22 | ) | $ | (57 | ) | $ | (43 | ) | |||||
Items Included in Reported Earnings AFTERTAX | ||||||||||||||||||||
| Adoption of FAS 142 (goodwill impairment) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Adoption of FAS 143 (asset retirement obligations) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Argentine bad-debt reserve | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Japan asset sale | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Net restructuring charges | $ | (115 | ) | $ | (30 | ) | $ | (13 | ) | $ | (44 | ) | $ | (28 | ) | |||||
Items Included in Reported Earnings (Per Diluted Share Basis) PRETAX | ||||||||||||||||||||
| Adoption of FAS 142 (goodwill impairment) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Adoption of FAS 143 (asset retirement obligations) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Argentine bad-debt reserve | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Japan asset sale | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Net restructuring charges | $ | (0.65 | ) | $ | (0.18 | ) | $ | (0.08 | ) | $ | (0.23 | ) | $ | (0.16 | ) | |||||
Items Included in Reported Earnings (Per Diluted Share Basis) AFTERTAX | ||||||||||||||||||||
| Adoption of FAS 142 (goodwill impairment) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Adoption of FAS 143 (asset retirement obligations) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Argentine bad-debt reserve | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Japan asset sale | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Net restructuring charges | $ | (0.44 | ) | $ | (0.11 | ) | $ | (0.05 | ) | $ | (0.17 | ) | $ | (0.11 | ) | |||||
| Items Included | Page 15 |
Balance Sheets — Crop Year Basis
Dollars in millions
Unaudited
| FY03 | FY02 | FY01 | ||||||||||||||||||||||||
| Full Year | FY03 | FY03 | FY03 | Full Year | Full Year | |||||||||||||||||||||
| 08/31/03 | 05/31/03 | 02/28/03 | 11/30/02 | 08/31/02 | 08/31/01 | |||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Current Assets: | ||||||||||||||||||||||||||
| Cash and Cash Equivalents | $ | 281 | $ | 128 | $ | 87 | $ | 329 | $ | 137 | $ | 267 | ||||||||||||||
| Short-Term Investments | 230 | — | 250 | 1 | 1 | 11 | ||||||||||||||||||||
| Trade Receivables — Net of allowances | 2,296 | 2,868 | 2,009 | 1,778 | 2,451 | 2,990 | ||||||||||||||||||||
| Inventories | 1,230 | 1,365 | 1,369 | 1,374 | 1,284 | 1,325 | ||||||||||||||||||||
| Other Current Assets | 925 | 717 | 769 | 636 | 683 | 786 | ||||||||||||||||||||
| Total Current Assets | 4,962 | 5,078 | 4,484 | 4,118 | 4,556 | 5,379 | ||||||||||||||||||||
| Property, Plant and Equipment — Net | 2,280 | 2,328 | 2,312 | 2,348 | 2,416 | 2,596 | ||||||||||||||||||||
| Goodwill — Net | 768 | 782 | 759 | 748 | 755 | 2,728 | ||||||||||||||||||||
| Other Intangible Assets — Net | 571 | 602 | 623 | 650 | 672 | 698 | ||||||||||||||||||||
| Other Assets | 880 | 788 | 723 | 724 | 752 | 543 | ||||||||||||||||||||
Total Assets | $ | 9,461 | $ | 9,578 | $ | 8,901 | $ | 8,588 | $ | 9,151 | $ | 11,944 | ||||||||||||||
Liabilities and Shareowners’ Equity | ||||||||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||||||||
| Short-Term Debt | $ | 269 | $ | 551 | $ | 663 | $ | 548 | $ | 771 | $ | 1,246 | ||||||||||||||
| Accounts Payable | 290 | 313 | 295 | 315 | 291 | 304 | ||||||||||||||||||||
| Accrued Liabilities | 1,385 | 1,073 | 883 | 709 | 648 | 1,123 | ||||||||||||||||||||
| Short Term Debt — Pharmacia | — | — | — | — | — | 365 | ||||||||||||||||||||
| Total Current Liabilities | 1,944 | 1,937 | 1,841 | 1,572 | 1,710 | 3,038 | ||||||||||||||||||||
| Long-Term Debt | 1,258 | 1,110 | 848 | 920 | 1,148 | 941 | ||||||||||||||||||||
| Postretirement and Other Liabilities | 1,103 | 1,091 | 1,075 | 1,000 | 1,035 | 721 | ||||||||||||||||||||
| Shareholders’ Equity | 5,156 | 5,440 | 5,137 | 5,096 | 5,258 | 7,244 | ||||||||||||||||||||
Total Liabilities and Shareowners’ Equity | $ | 9,461 | $ | 9,578 | $ | 8,901 | $ | 8,588 | $ | 9,151 | $ | 11,944 | ||||||||||||||
| Debt-to-Capital Ratio | 23 | % | 23 | % | 23 | % | 22 | % | 27 | % | 26 | % | ||||||||||||||
| Balance Sheet | Page 16 |
Cash Flow Statements — Crop Year Basis
Dollars in millions, Year Ended August 31
Unaudited
| FY 03 | FY02 | FY01 | ||||||||||
| Full Year | Full Year | Full Year | ||||||||||
| Operating Activities: | 08/31/03 | 08/31/02 | 08/31/01 | |||||||||
| Net Income (Loss) | $ | 68 | $ | (1,756 | ) | $ | 300 | |||||
Adjustments to reconcile cash provided (required) by operations: | ||||||||||||
| Items that did not require (provide) cash: | ||||||||||||
| Pretax cumulative effect of change in accounting principle | 19 | 1,984 | — | |||||||||
| Depreciation and amortization expense | 453 | 490 | 539 | |||||||||
| Bad-debt expense | 72 | 185 | 12 | |||||||||
| Noncash restructuring and other special items | 16 | 155 | 59 | |||||||||
| Deferred income taxes | (54 | ) | (170 | ) | 9 | |||||||
| Gain on disposal of investments and property — net | (7 | ) | (62 | ) | — | |||||||
| Equity affiliate expense — net | 41 | 45 | 41 | |||||||||
| Write-off of retired assets | 22 | 11 | 10 | |||||||||
| PCB litigation settlement — net | 105 | — | — | |||||||||
| Other items that did not require cash | (36 | ) | — | — | ||||||||
Changes in assets and liabilities that provided (required) cash: | ||||||||||||
| Trade receivables | 286 | 156 | (136 | ) | ||||||||
| Inventories | 93 | (7 | ) | (137 | ) | |||||||
| Accounts payable and accrued liabilities | 188 | (153 | ) | (82 | ) | |||||||
| Pension contributions | (131 | ) | — | — | ||||||||
| Related-party transactions | 10 | (90 | ) | 152 | ||||||||
| Tax benefit on employee stock options | 2 | 11 | — | |||||||||
| Deferred revenue on supply agreements | — | 48 | — | |||||||||
| Net investment hedge loss | (4 | ) | (2 | ) | — | |||||||
| Other items | (15 | ) | 10 | (27 | ) | |||||||
Net Cash Provided (Required) by Operations | 1,128 | 855 | 740 | |||||||||
Cash Flows Provided (Required) by Investing Activities: | ||||||||||||
| Purchases of short-term investments | (480 | ) | — | — | ||||||||
| Maturities of short-term investments | 250 | — | — | |||||||||
| Technology and other investments | (61 | ) | (98 | ) | (93 | ) | ||||||
| Property, plant and equipment purchases | (206 | ) | (257 | ) | (409 | ) | ||||||
| Investment and property disposal proceeds | 14 | 70 | 3 | |||||||||
| Loans with related party | 1 | 11 | (166 | ) | ||||||||
Net Cash Required by Investing Activities | (482 | ) | (274 | ) | (665 | ) | ||||||
Cash Flows Provided (Required) by Financing Activities: | ||||||||||||
| Net change in short-term financing | (540 | ) | (1,017 | ) | (874 | ) | ||||||
| Loans from related party | — | (365 | ) | 353 | ||||||||
| Long-term debt proceeds | 267 | 850 | 43 | |||||||||
| Long-term debt reductions | (110 | ) | (102 | ) | (99 | ) | ||||||
| Debt issuance costs | (2 | ) | (10 | ) | — | |||||||
| Payments on other financing | (13 | ) | (5 | ) | — | |||||||
| Stock option exercises | 24 | 63 | — | |||||||||
| Dividend payments | (128 | ) | (125 | ) | (85 | ) | ||||||
| Issuance of stock | — | — | 723 | |||||||||
| Net transactions with Pharmacia | — | — | 62 | |||||||||
Net Cash Provided (Required) by Financing Activities | (502 | ) | (711 | ) | 123 | |||||||
| Net Increase (Decrease) in Cash and Cash Equivalents | 144 | (130 | ) | 198 | ||||||||
| Cash and Cash Equivalents at Beginning of Year | 137 | 267 | 69 | |||||||||
Cash and Cash Equivalents at End of Year | $ | 281 | $ | 137 | $ | 267 | ||||||
Reconciliation of Free Cash Flow | ||||||||||||
| Net Cash Provided by Operations | $ | 1,128 | $ | 855 | $ | 740 | ||||||
| Net Cash Required by Investing Activities | (482 | ) | (274 | ) | (665 | ) | ||||||
Free Cash Flow * | $ | 646 | $ | 581 | $ | 75 | ||||||
| * | Sum of cash flows from operations and investing activities |
| Cash Flow | Page 17 |
1996 — 2003 Monsanto Biotechnology Trait Acreage — Crop Year Basis
| Biotechnology Trait Acreage (in millions of acres) | 2003 | 2002 | 2001 | 2000 | 1999 | 1998 | 1997 | 1996 | ||||||||||||||||||||||||
| U.S. Roundup Ready soybean trait | 63.6 | 60.0 | 54.8 | 45.0 | 40.5 | 29.1 | 7.9 | 1.2 | ||||||||||||||||||||||||
| Argentine Roundup Ready soybean trait | 29.9 | 27.1 | 22.7 | 17.0 | 13.6 | 4.0 | 0.5 | — | ||||||||||||||||||||||||
| Roundup Ready soybean trait — other | 1.6 | 1.0 | 0.6 | 0.6 | 0.3 | — | — | — | ||||||||||||||||||||||||
Total Monsanto soybean trait | 95.1 | 88.1 | 78.1 | 62.6 | 54.4 | 33.1 | 8.4 | 1.2 | ||||||||||||||||||||||||
| U.S. Roundup Ready corn trait | 6.9 | 5.6 | 3.4 | 2.6 | 2.1 | 0.9 | — | — | ||||||||||||||||||||||||
| Roundup Ready corn trait — other | 0.3 | 0.2 | 0.2 | 0.1 | 0.1 | — | — | — | ||||||||||||||||||||||||
| U.S. YieldGard corn borer traits | 20.0 | 18.2 | 14.3 | 14.6 | 15.4 | 11.4 | 2.3 | — | ||||||||||||||||||||||||
| YieldGard corn borer traits — other | 3.7 | 3.0 | 2.0 | 1.1 | 0.6 | — | — | |||||||||||||||||||||||||
| U.S. YieldGard rootworm corn trait | 0.4 | — | — | — | — | — | — | — | ||||||||||||||||||||||||
| U.S. MON “stacked” corn traits* | 5.1 | 2.2 | 1.2 | 0.1 | — | — | — | — | ||||||||||||||||||||||||
| MON “stacked” corn traits — other* | 0.1 | 0.1 | — | — | — | — | — | — | ||||||||||||||||||||||||
Total Monsanto corn traits | 36.5 | 29.3 | 21.1 | 18.5 | 18.2 | 12.3 | 2.3 | — | ||||||||||||||||||||||||
| U.S. Roundup Ready cotton trait | 4.5 | 5.2 | 5.1 | 4.6 | 3.8 | 2.1 | 0.6 | — | ||||||||||||||||||||||||
| Roundup Ready cotton trait — other | 0.2 | 0.1 | — | — | — | — | — | — | ||||||||||||||||||||||||
| Chinese Bollgard cotton trait | 2.0 | 1.9 | 2.3 | 0.3 | 0.3 | 0.2 | — | — | ||||||||||||||||||||||||
| U.S. Bollgard I and II cotton traits | 0.3 | 0.4 | 0.5 | 1.0 | 2.0 | 2.0 | 2.0 | 1.8 | ||||||||||||||||||||||||
| Bollgard I and II cotton traits — other | 0.5 | 0.5 | 0.7 | 0.5 | 0.3 | 0.2 | 0.1 | — | ||||||||||||||||||||||||
| U.S. MON “stacked” cotton traits* | 5.4 | 4.8 | 5.6 | 4.0 | 2.4 | 0.7 | 0.1 | — | ||||||||||||||||||||||||
| MON “stacked” cotton traits — other* | 0.1 | 0.1 | — | — | — | — | — | — | ||||||||||||||||||||||||
Total Monsanto cotton traits | 13.0 | 13.0 | 14.2 | 10.4 | 8.8 | 5.2 | 2.8 | 1.8 | ||||||||||||||||||||||||
| U.S. Roundup Ready canola trait | 0.7 | 0.9 | 0.9 | 0.7 | 0.2 | — | — | — | ||||||||||||||||||||||||
| Canadian Roundup Ready canola trait | 5.5 | 4.0 | 4.0 | 4.3 | 4.9 | 2.8 | 0.5 | — | ||||||||||||||||||||||||
Total Monsanto canola traits | 6.2 | 4.9 | 4.9 | 5.0 | 5.1 | 2.8 | 0.5 | — | ||||||||||||||||||||||||
TOTAL MONSANTO TRAIT ACRES ** | 150.8 | 135.3 | 118.3 | 96.5 | 86.5 | 53.4 | 14.0 | 3.0 | ||||||||||||||||||||||||
| * | “Stacked” trait categories reflect crops that contain two Monsanto technologies (both insect-protected and herbicide-tolerance). |
| ** | Source: Monsanto estimates |
| Global Biotech Acres | Page 18 |
