Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Nov. 30, 2013 | Jan. 06, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Document type | '10-Q | ' |
Document period end date | 30-Nov-13 | ' |
Amendment flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Entity Registrant Name | 'MONSANTO CO /NEW/ | ' |
Entity Central Index Key | '0001110783 | ' |
Current Fiscal Year End Date | '--08-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity common stock shares outstanding | ' | 524,876,699 |
Entity Well-known Seasoned Issuer | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Statements_of_Consolidated_Ope
Statements of Consolidated Operations (Unaudited) (USD $) | 3 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | ||
Income Statement [Abstract] | ' | ' | ||
Net Sales | $3,143 | [1] | $2,939 | [1] |
Cost of goods sold | 1,580 | 1,542 | ||
Gross Profit | 1,563 | 1,397 | ||
Operating Expenses: | ' | ' | ||
Selling, general and administrative expenses | 589 | 542 | ||
Research and development expenses | 409 | 346 | ||
Total Operating Expenses | 998 | 888 | ||
Income from Operations | 565 | 509 | ||
Interest expense | 53 | 51 | ||
Interest income | -24 | -23 | ||
Other expense, net | 20 | 17 | ||
Income from Continuing Operations Before Income Taxes | 516 | 464 | ||
Income tax provision | 152 | 122 | ||
Income from Continuing Operations Including Portion Attributable to Noncontrolling Interest | 364 | 342 | ||
Discontinued Operations: | ' | ' | ||
Income from operations of discontinued businesses | 14 | 11 | ||
Income tax provision | 5 | 4 | ||
Income from Discontinued Operations | 9 | 7 | ||
Net Income | 373 | 349 | ||
Less: Net income attributable to noncontrolling interest | 5 | 10 | ||
Net Income Attributable to Monsanto Company | 368 | 339 | ||
Amounts Attributable to Monsanto Company: | ' | ' | ||
Income from continuing operations | 359 | 332 | ||
Income from discontinued operations | 9 | 7 | ||
Net Income Attributable to Monsanto Company | $368 | $339 | ||
Basic Earnings per Share Attributable to Monsanto Company: | ' | ' | ||
Income from continuing operations (in dollars per share) | $0.68 | $0.62 | ||
Income on discontinued operations (in dollars per share) | $0.02 | $0.01 | ||
Net Income Attributable to Monsanto Company (in dollars per share) | $0.70 | $0.63 | ||
Diluted Earnings per Share Attributable to Monsanto Company: | ' | ' | ||
Income from continuing operations (in dollars per share) | $0.67 | $0.62 | ||
Income on discontinued operations (in dollars per share) | $0.02 | $0.01 | ||
Net Income Attributable to Monsanto Company (in dollars per share) | $0.69 | $0.63 | ||
Weighted Average Shares Outstanding: | ' | ' | ||
Basic (in shares) | 526.9 | 534.8 | ||
Diluted (in shares) | 532.6 | 540.4 | ||
Common Stock, Dividends, Per Share, Declared | $0 | $0 | ||
[1] | Represents net sales from continuing operations. |
Statements_of_Consolidated_Com
Statements of Consolidated Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 |
Comprehensive Income Attributable to Monsanto Company | ' | ' |
Net Income Attributable to Monsanto Company | $368 | $339 |
Other Comprehensive Income, Net of Tax: | ' | ' |
Foreign currency translation, net of tax of $(8) and $0, respectively | 127 | 52 |
Postretirement benefit plan activity, net of tax of $5 and $7, respectively | 8 | 11 |
Unrealized net gains on investment holdings, net of tax of $3 and $3, respectively | 5 | 6 |
Realized net gains on investment holdings, net of tax of $0 and $1, respectively | 0 | 1 |
Unrealized net derivative losses, net of tax of $(25) and $(6), respectively | -43 | -12 |
Realized net derivative gains (losses), net of tax of $3 and $(5), respectively | 5 | -10 |
Total Other Comprehensive Income, Net of Tax | 102 | 48 |
Comprehensive Income Attributable to Monsanto Company | 470 | 387 |
Comprehensive Income (Loss) Attributable to Noncontrolling Interests | ' | ' |
Net Income Attributable to Noncontrolling Interests | 5 | 10 |
Other Comprehensive (Income) Loss | ' | ' |
Foreign currency translation | 5 | -4 |
Total Other Comprehensive Income (Loss) | 5 | -4 |
Comprehensive Income Attributable to Noncontrolling Interests | 10 | 6 |
Total Comprehensive Income | $480 | $393 |
Statements_of_Consolidated_Com1
Statements of Consolidated Comprehensive Income (Loss) (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 |
Other Comprehensive Income (Loss), Tax, Parenthetical Disclosures [Abstract] | ' | ' |
Foreign currency translation, tax expense (benefit) | ($8) | $0 |
Postretirement benefit plan activity, tax expense (benefit) | 5 | 7 |
Unrealized net gains (losses) on investment holdings, tax (expense) benefit | 3 | 3 |
Realized net gains on investment holdings, tax (expense) benefit | 0 | 1 |
Unrealized net derivative gains (losses), tax (expense) benefit | -25 | -6 |
Realized net derivative losses (gains), tax (expense) benefit | ($3) | $5 |
Statements_of_Consolidated_Fin
Statements of Consolidated Financial Position (Unaudited) (USD $) | Nov. 30, 2013 | Aug. 31, 2013 |
In Millions, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents (variable interest entity restricted - 2014: $31 and 2013: $140) | $4,496 | $3,668 |
Short-term investments | 249 | 254 |
Trade receivables, net (variable interest entity restricted - 2014: $116 and 2013: $0) | 2,283 | 1,715 |
Miscellaneous receivables | 774 | 748 |
Deferred tax assets | 631 | 579 |
Inventory, net | 3,873 | 2,947 |
Other current assets | 190 | 166 |
Total Current Assets | 12,496 | 10,077 |
Total property, plant and equipment | 9,660 | 9,491 |
Less accumulated depreciation | 4,974 | 4,837 |
Property, Plant and Equipment, Net | 4,686 | 4,654 |
Goodwill | 4,325 | 3,520 |
Other Intangible Assets, Net | 1,367 | 1,226 |
Noncurrent Deferred Tax Assets | 484 | 454 |
Long-Term Receivables, Net | 153 | 237 |
Other Assets | 566 | 496 |
Total Assets | 24,077 | 20,664 |
Current Liabilities: | ' | ' |
Short-term debt, including current portion of long-term debt | 262 | 51 |
Accounts payable | 853 | 995 |
Income taxes payable | 101 | 91 |
Accrued compensation and benefits | 281 | 492 |
Accrued marketing programs | 756 | 1,078 |
Deferred revenues | 2,866 | 517 |
Grower production accruals | 634 | 60 |
Dividends payable | 0 | 228 |
Customer payable | 2 | 12 |
Miscellaneous short-term accruals | 943 | 812 |
Total Current Liabilities | 6,698 | 4,336 |
Long-Term Debt | 3,057 | 2,061 |
Postretirement Liabilities | 348 | 357 |
Long-Term Deferred Revenue | 113 | 138 |
Noncurrent Deferred Tax Liabilities | 544 | 469 |
Long-Term Portion of Environmental and Litigation Liabilities | 186 | 193 |
Other Liabilities | 392 | 382 |
Shareowners’ Equity: | ' | ' |
Common stock (authorized: 1,500,000,000 shares, par value $0.01) Issued 602,861,098 and 601,631,267 shares, respectively; Outstanding 524,936,480 and 529,029,712 shares, respectively | 6 | 6 |
Treasury stock 77,924,618 and 72,601,555 shares, respectively, at cost | -4,701 | -4,140 |
Additional contributed capital | 10,887 | 10,783 |
Retained earnings | 7,556 | 7,188 |
Accumulated other comprehensive loss | -1,176 | -1,278 |
Total Monsanto Company Shareowners’ Equity | 12,572 | 12,559 |
Noncontrolling Interest | 167 | 169 |
Total Shareowners’ Equity | 12,739 | 12,728 |
Total Liabilities and Shareowners’ Equity | $24,077 | $20,664 |
Statements_of_Consolidated_Fin1
Statements of Consolidated Financial Position (Parenthetical) (Unaudited) (USD $) | Nov. 30, 2013 | Aug. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents (variable interest entity restricted) | $31 | $140 |
Trade receivables, net (variable interest entity restricted) | $116 | $0 |
Shareowners’ Equity: | ' | ' |
Common Stock, Authorized | 1,500,000,000 | 1,500,000,000 |
Common Stock, Par Value | $0.01 | $0.01 |
Common Stock, Issued | 602,861,098 | 601,631,267 |
Common Stock, Outstanding | 524,936,480 | 529,029,712 |
Treasury Stock, at Cost | 77,924,618 | 72,601,555 |
Statements_of_Consolidated_Cas
Statements of Consolidated Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 |
Operating Activities: | ' | ' |
Net Income | $373 | $349 |
Items that did not require (provide) cash: | ' | ' |
Depreciation and amortization | 162 | 152 |
Bad-debt expense | 11 | 7 |
Stock-based compensation expense | 27 | 24 |
Excess tax benefits from stock-based compensation | -15 | -15 |
Deferred income taxes | -6 | 13 |
Equity affiliate (income) expense, net | 3 | -2 |
Net gain on sales of a business or other assets | -1 | -12 |
Other items | 20 | -16 |
Changes in assets and liabilities that required cash, net of acquisitions: | ' | ' |
Trade receivables, net | -478 | -196 |
Inventory, net | -898 | -740 |
Deferred revenues | 2,319 | 2,426 |
Accounts payable and other accrued liabilities | 332 | -341 |
Pension contributions | -23 | -16 |
Other items | -128 | -64 |
Net Cash Provided by Operating Activities | 1,698 | 1,569 |
Cash Flows (Required) Provided by Investing Activities: | ' | ' |
Purchases of short-term investments | -105 | -118 |
Maturities of short-term investments | 110 | 110 |
Capital expenditures | -303 | -133 |
Acquisition of businesses, net of cash acquired | -917 | 0 |
Purchases of long-term debt and equity securities | -12 | 0 |
Technology and other investments | -21 | -23 |
Other proceeds | 7 | 68 |
Net Cash Required by Investing Activities | -1,241 | -96 |
Cash Flows Provided (Required) by Financing Activities: | ' | ' |
Net change in financing with less than 90-day maturities | 117 | 60 |
Short-term debt proceeds | 2 | 0 |
Short-term debt reductions | 0 | -7 |
Long-term debt proceeds | 999 | 16 |
Long-term debt reductions | -1 | 0 |
Payments on other financing | -39 | 0 |
Debt issuance costs | -8 | 0 |
Treasury stock purchases | -561 | -27 |
Stock option exercises | 64 | 31 |
Excess tax benefits from stock-based compensation | 15 | 16 |
Tax withholding on restricted stock and restricted stock units | -2 | -3 |
Dividend payments | -228 | -201 |
Dividend payments to noncontrolling interests | -12 | -1 |
Net Cash Provided (Required) by Financing Activities | 346 | -116 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 25 | -3 |
Net Increase in Cash and Cash Equivalents | 828 | 1,354 |
Cash and Cash Equivalents at Beginning of Period | 3,668 | 3,283 |
Cash and Cash Equivalents at End of Period | $4,496 | $4,637 |
Statements_of_Consolidated_Sha
Statements of Consolidated Shareholders Equity (Unaudited) (USD $) | Total | Common Stock | Treasury Stock | Additional Contributed Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) | NonControlling Interests | |
In Millions, unless otherwise specified | ||||||||
Beginning Balance at Aug. 31, 2012 | $12,036 | $6 | ($3,045) | $10,371 | $5,537 | ($1,036) | [1] | $203 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | |
Net income | 2,525 | ' | ' | ' | 2,482 | ' | 43 | |
Other comprehensive income (loss) | -269 | ' | ' | ' | ' | -242 | [1] | -27 |
Treasury stock purchases | -1,095 | ' | -1,095 | ' | ' | ' | ' | |
Restricted stock withholding | -10 | ' | ' | -10 | ' | ' | ' | |
Issuance of shares under employee stock plans | 257 | ' | ' | 257 | ' | ' | ' | |
Excess tax benefits from stock-based compensation | 69 | ' | ' | 69 | ' | ' | ' | |
Stock-based compensation expense | 97 | ' | ' | 97 | ' | ' | ' | |
Cash dividends per common share ($1.56 for 2013) | -831 | ' | ' | ' | -831 | ' | ' | |
Dividend payments to noncontrolling interest | -174 | ' | ' | ' | ' | ' | -174 | |
Acquisition of noncontrolling interest | -10 | ' | ' | -1 | ' | ' | -9 | |
Proceeds from noncontrolling interest | 133 | ' | ' | ' | ' | ' | 133 | |
Ending Balance at Aug. 31, 2013 | 12,728 | 6 | -4,140 | 10,783 | 7,188 | -1,278 | [1] | 169 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | |
Net income | 373 | ' | ' | ' | 368 | ' | 5 | |
Other comprehensive income (loss) | 107 | ' | ' | ' | ' | 102 | [1] | 5 |
Treasury stock purchases | -561 | ' | -561 | ' | ' | ' | ' | |
Restricted stock withholding | -2 | ' | ' | -2 | ' | ' | ' | |
Issuance of shares under employee stock plans | 64 | ' | ' | 64 | ' | ' | ' | |
Excess tax benefits from stock-based compensation | 15 | ' | ' | 15 | ' | ' | ' | |
Stock-based compensation expense | 27 | ' | ' | 27 | ' | ' | ' | |
Dividend payments to noncontrolling interest | -12 | ' | ' | ' | ' | ' | -12 | |
Ending Balance at Nov. 30, 2013 | $12,739 | $6 | ($4,701) | $10,887 | $7,556 | ($1,176) | [1] | $167 |
[1] | See Note 17 — Accumulated Other Comprehensive Loss — for further details of the components of accumulated other comprehensive income (loss). |
Statements_of_Consolidated_Sha1
Statements of Consolidated Shareholders Equity (Parenthetical) (Unaudited) (USD $) | 3 Months Ended | 12 Months Ended | |
Nov. 30, 2013 | Nov. 30, 2012 | Aug. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' |
Cash dividends per common share | $0 | $0 | $1.56 |
BACKGROUND_AND_BASIS_OF_PRESEN
BACKGROUND AND BASIS OF PRESENTATION | 3 Months Ended |
Nov. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
BACKGROUND AND BASIS OF PRESENTATION | ' |
BACKGROUND AND BASIS OF PRESENTATION | |
Monsanto Company, along with its subsidiaries, is a leading global provider of agricultural products for farmers. Monsanto’s seeds, biotechnology trait products, and herbicides provide farmers with solutions that improve productivity, reduce the costs of farming, and produce better foods for consumers and better feed for animals. | |
Monsanto manages its business in two segments: Seeds and Genomics and Agricultural Productivity. The Seeds and Genomics segment consists of the global seeds and related traits businesses, biotechnology platforms and precision agriculture. Through the Seeds and Genomics segment, Monsanto produces leading seed brands, including DEKALB, Asgrow, Deltapine, Seminis and De Ruiter, and Monsanto develops biotechnology traits that assist farmers in controlling insects and weeds. Monsanto also provides other seed companies with genetic material and biotechnology traits for their seed brands. Through the Agricultural Productivity segment, the company manufactures Roundup and Harness brand herbicides and other herbicides. See Note 21 — Segment Information — for further details. | |
In the fourth quarter of 2008, the company announced plans to divest its animal agricultural products business, which focused on dairy cow productivity (the Dairy business) and was previously reported as part of the Agricultural Productivity segment. This transaction was consummated on Oct. 1, 2008. As a result, financial data for this business has been presented as discontinued operations. | |
Certain reclassifications of prior year amounts within the operating activities section of the Statement of Consolidated Cash Flows have been made to conform to current year presentation. The company has evaluated the impact and does not consider the reclassifications to be material to the consolidated financial statements. | |
The accompanying consolidated financial statements have not been audited but have been prepared in conformity with accounting principles generally accepted in the United States for interim financial information and with instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, these unaudited consolidated financial statements contain all adjustments necessary to present fairly the financial position, results of operations and cash flows for the interim periods reported. This Report on Form 10-Q should be read in conjunction with Monsanto’s Report on Form 10-K for the fiscal year ended Aug. 31, 2013. Financial information for the first three months of fiscal year 2014 should not be annualized because of the seasonality of the company’s business. |
NEW_ACCOUNTING_STANDARDS
NEW ACCOUNTING STANDARDS | 3 Months Ended |
Nov. 30, 2013 | |
NEW ACCOUNTING STANDARDS [Abstract] | ' |
NEW ACCOUNTING STANDARDS | ' |
NEW ACCOUNTING STANDARDS | |
In July 2013, the FASB issued accounting guidance requiring entities to present unrecognized tax benefits as a reduction to any related deferred tax assets for net operating losses, similar tax losses, or tax credit carryforwards if such settlement is required or expected in the event an uncertain tax position is disallowed. Currently, U.S. Generally Accepted Accounting Principles ("U.S. GAAP") does not provide explicit guidance on the topic. This new presentation guidance will become effective prospectively for fiscal years, and interim periods within those years, beginning after Dec. 15, 2013. Accordingly, Monsanto will adopt this standard in the first quarter of fiscal year 2015. While the company is evaluating the impact this standard will have on the presentation of unrecognized tax benefits in the company's consolidated balance sheet, it will not affect the company's results of operations, financial condition or cash flows. | |
In February 2013, the Financial Accounting Standards Board ("FASB") issued "Comprehensive Income: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income," which requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, entities are required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, entities are required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail on these amounts. This standard is effective prospectively for reporting periods beginning after Dec. 15, 2012. Accordingly, Monsanto adopted this standard in the first quarter of fiscal year 2014. See Note 17 - Accumulated Other Comprehensive Loss - for additional disclosures. | |
In December 2011 and February 2013, the FASB issued an amendment to the Balance Sheet topic of the Accounting Standards Codification ("ASC"), which requires entities to disclose both gross and net information about both derivatives and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting agreement. The objective of the disclosure is to facilitate comparison between those entities that prepare their financial statements on the basis of U.S. GAAP and those entities that prepare their financial statements on the basis of International Financial Reporting Standards. This standard is effective for fiscal years, and interim periods within those years, beginning on or after Jan. 1, 2013. Retrospective presentation for all comparative periods presented is required. Accordingly, Monsanto adopted this amendment in the first quarter of fiscal year 2014. See Note 14 - Financial Instruments - for additional disclosures. |
BUSINESS_COMBINATIONS
BUSINESS COMBINATIONS | 3 Months Ended | |||||||
Nov. 30, 2013 | ||||||||
Business Combinations [Abstract] | ' | |||||||
BUSINESS COMBINATIONS | ' | |||||||
BUSINESS COMBINATIONS | ||||||||
2014 Acquisitions: In November 2013, Monsanto acquired 100 percent of the outstanding stock of The Climate Corporation, a San Francisco, California based company. The Climate Corporation is a leading data analytics company with core capabilities around hyper local weather monitoring, weather simulation and agronomic modeling which has allowed them to develop risk management tools and agronomic decision support tools for growers. The acquisition will combine The Climate Corporation's expertise in agriculture risk-management with Monsanto’s R&D capabilities, and is expected to further enable farmers to significantly improve productivity and better manage risk from variables that could limit agriculture production. The acquisition of the company qualifies as a business under the Business Combinations topic of the ASC. Acquisition costs were $17 million, of which $1 million was recorded in the first quarter of 2014. These costs were classified as selling, general and administrative expenses. The total fair value of the acquisition was $932 million and the total cash paid for the acquisition was $917 million (net of cash acquired). The fair value was primarily allocated to goodwill and intangibles. The primary item that generated goodwill was the premium paid by the company for the right to control the acquired business and technology. The goodwill is not deductible for tax purposes. | ||||||||
The business operations and employees of the acquired entity described above were included in the Seeds and Genomics reportable segment results upon acquisition. The estimated fair value of the assets and liabilities, summarized in the table below, represents the preliminary purchase price allocation. This allocation will be finalized as soon as the information becomes available, however, not to exceed one year from the acquisition date. | ||||||||
(Dollars in millions) | 2014 Acquisition | |||||||
Current Assets | $ | 59 | ||||||
Property, Plant & Equipment | 9 | |||||||
Goodwill | 785 | |||||||
Other Intangible Assets | 145 | |||||||
Total Assets Acquired | 998 | |||||||
Current Liabilities | 10 | |||||||
Other Liabilities | 56 | |||||||
Total Liabilities Assumed | 66 | |||||||
Net Assets Acquired | $ | 932 | ||||||
Supplemental Information: | ||||||||
Net assets acquired | $ | 932 | ||||||
Cash acquired | 15 | |||||||
Cash paid, net of cash acquired | $ | 917 | ||||||
Pro forma information related to the 2014 acquisition is not presented because the impact of the acquisition on Monsanto's consolidated results of operations is not significant. | ||||||||
The following table presents details of the definite life acquired identifiable intangible assets: | ||||||||
(Dollars in millions) | Weighted-Average Life (Years) | Useful Life | 2014 Acquisition | |||||
(Years) | ||||||||
Acquired Intellectual Property | 10 | 10 | $ | 141 | ||||
Customer Relationships | 1 | 1 | 4 | |||||
Other Intangible Assets | $ | 145 | ||||||
2013 Acquisitions: In August 2013, Monsanto acquired certain assets and manufacturing capabilities of Dieckmann GmbH & Co. KG, a business based in Germany which specializes in the breeding of oilseed rape and rye seeds. The acquisition, which qualifies as a business under the Business Combinations topic of the ASC, is expected to complement Monsanto's existing activities in the breeding, production and marketing of oilseed rape in Europe. Acquisition costs were approximately $1 million and were classified as selling, general and administrative expenses in the Statements of Consolidated Operations. The total fair value and cash paid for the acquisition was $30 million. The fair value of the acquisition was primarily allocated to goodwill and intangibles. The primary item that generated goodwill was the premium paid by the company for the right to control the acquired business and technology. The goodwill is deductible for tax purposes. | ||||||||
In June 2013, Monsanto acquired 100 percent of the outstanding stock of GrassRoots Biotechnology, Inc., a business based in Durham, North Carolina that is focused on gene expression and other agriculture technologies. The acquisition of the company, which qualifies as a business under the Business Combinations topic of the ASC, is expected to complement Monsanto's existing research platforms. Acquisition costs were less than $1 million and were classified as selling, general and administrative expenses in the Statements of Consolidated Operations. The total fair value and cash paid for the acquisition was $15 million (net of cash acquired). The fair value of the acquisition was primarily allocated to goodwill and intangibles. The primary item that generated goodwill was the premium paid by the company for the right to control the acquired business and technology. The goodwill is not deductible for tax purposes. | ||||||||
In March 2013, Monsanto acquired substantially all of the assets of Rosetta Green Ltd., a business based in Israel which specializes in the identification and use of unique genes to guide key processes in major crops including corn, soybeans and cotton. The acquisition of the company, which qualifies as a business under the Business Combinations topic of the ASC, is expected to complement Monsanto's existing research platforms. Acquisition costs were less than $1 million and were classified as selling, general and administrative expenses in the Statements of Consolidated Operations. The total fair value and cash paid for the acquisition was $35 million. The fair value of the acquisition was primarily allocated to goodwill and intangibles. The primary item that generated goodwill was the premium paid by the company for the right to control the acquired business and technology. The goodwill is deductible for tax purposes. | ||||||||
In January 2013, Monsanto acquired select assets of Agradis, Inc., a business focused on developing sustainable agricultural solutions. The acquisition, which qualifies as a business under the Business Combinations topic of the ASC, is intended to support Monsanto's efforts to provide farmers with sustainable biological products to improve crop health and productivity. Acquisition costs incurred were less than $1 million and were classified as selling, general and administrative expenses in the Statements of Consolidated Operations. The total cash paid and the fair value of the acquisition was $85 million, and the purchase price was primarily allocated to goodwill and intangibles. The primary item that generated goodwill was the premium paid by the company for the right to control the acquired business and technology. The goodwill is deductible for tax purposes. | ||||||||
For the acquisitions described above, the business operations and employees of the acquired entities were included in the Seeds and Genomics reportable segment results upon acquisition. | ||||||||
Pro forma information related to the 2013 acquisitions is not presented because the impact of these acquisitions, either individually or in the aggregate, on Monsanto's consolidated results of operations is not expected to be significant. |
CUSTOMER_FINANCING_PROGRAMS
CUSTOMER FINANCING PROGRAMS | 3 Months Ended | |||||||
Nov. 30, 2013 | ||||||||
CUSTOMER FINANCING PROGRAMS [Abstract] | ' | |||||||
CUSTOMER FINANCING PROGRAMS | ' | |||||||
CUSTOMER FINANCING PROGRAMS | ||||||||
Monsanto participates in customer financing programs as follows: | ||||||||
As of | ||||||||
(Dollars in millions) | Nov. 30, 2013 | Aug. 31, 2013 | ||||||
Transactions that Qualify for Sales Treatment | ||||||||
U.S. agreement to sell trade receivables(1) | ||||||||
Outstanding balance | $ | 128 | $ | 348 | ||||
Maximum future payout under recourse provisions | 9 | 19 | ||||||
European and Latin American agreements to sell trade receivables(2) | ||||||||
Outstanding balance | $ | 28 | $ | 44 | ||||
Maximum future payout under recourse provisions | 28 | 41 | ||||||
Agreements with Lenders(3) | ||||||||
Outstanding balance | $ | 60 | $ | 45 | ||||
Maximum future payout under the guarantee | 44 | 32 | ||||||
The gross amount of receivables sold under transactions that qualify for sales treatment were: | ||||||||
Gross Amount of Receivables Sold | ||||||||
Three Months Ended | ||||||||
(Dollars in millions) | Nov. 30, 2013 | Nov. 30, 2012 | ||||||
Transactions that Qualify for Sales Treatment | ||||||||
U.S. agreement to sell trade receivables(1) | $ | 23 | $ | 2 | ||||
European and Latin American agreements to sell trade receivables(2) | 7 | — | ||||||
-1 | Monsanto has an agreement in the United States to sell trade receivables up to a maximum outstanding balance of $500 million and to service such accounts. These receivables qualify for sales treatment under the Transfers and Servicing topic of the ASC and, accordingly, the proceeds are included in net cash provided by operating activities in the Statements of Consolidated Cash Flows. The agreement includes recourse provisions and thus a liability is established at the time of sale that approximates fair value based upon the company’s historical collection experience and a current assessment of credit exposure. | |||||||
-2 | Monsanto has various agreements in European and Latin American countries to sell trade receivables, both with and without recourse. The sales within these programs qualify for sales treatment under the Transfers and Servicing topic of the ASC and, accordingly, the proceeds are included in net cash provided by operating activities in the Statements of Consolidated Cash Flows. The liability for the guarantees for sales with recourse is recorded at an amount that approximates fair value, based on the company’s historical collection experience for the customers associated with the sale of the receivables and a current assessment of credit exposure. | |||||||
-3 | Monsanto has additional agreements with lenders to establish programs that provide financing for select customers in the United States, Brazil, Latin America and Europe. Monsanto provides various levels of recourse through guarantees of the accounts in the event of customer default. The term of the guarantee is equivalent to the term of the customer loans. The liability for the guarantees is recorded at an amount that approximates fair value, based on the company’s historical collection experience with customers that participate in the program and a current assessment of credit exposure. If performance is required under the guarantee, Monsanto may retain amounts that are subsequently collected from customers. | |||||||
In addition to the arrangements in the above table, Monsanto also participates in a financing program in Brazil that allowed Monsanto to transfer up to 1 billion Brazilian reais (approximately $430 million) for select customers in Brazil to a revolving financing program. Under the arrangement, a recourse provision requires Monsanto to cover the first credit losses within the program up to the amount of our investment. The company evaluated its relationship with the entity under the guidance within the Consolidation topic of the ASC and, as a result, the entity has been consolidated. For further information on this topic, see Note 5 — Variable Interest Entities. | ||||||||
There were no significant recourse or non-recourse liabilities for all programs as of Nov. 30, 2013, and Aug. 31, 2013. There were no significant delinquent loans for all programs as of Nov. 30, 2013, and Aug. 31, 2013. |
VARIABLE_INTEREST_ENTITIES
VARIABLE INTEREST ENTITIES | 3 Months Ended | |||||||
Nov. 30, 2013 | ||||||||
VARIABLE INTEREST ENTITIES [Abstract] | ' | |||||||
VARIABLE INTEREST ENTITIES | ' | |||||||
VARIABLE INTEREST ENTITIES | ||||||||
Monsanto is involved with entities that are deemed to be variable interest entities (VIEs). Monsanto has determined that the company holds variable interests in an entity that is established as a revolving financing program. In addition, Monsanto has various variable interests in biotechnology companies that focus on plant gene and agricultural fungicide research, development and commercialization. These variable interests have also been determined to be VIEs. | ||||||||
In December 2013, Monsanto entered into an agreement with a newly founded company that is focused on agricultural solutions that may enhance Monsanto’s biologicals platform. Monsanto is evaluating the accounting treatment of the transaction, including whether the newly founded entity will be deemed a VIE. | ||||||||
Consolidated VIEs | ||||||||
Monsanto has a financing program in Brazil that is recorded as a consolidated VIE. For the most part, the VIE consists of a revolving financing program that is funded by investments from the company and other third parties, primarily investment funds, and have been established to service Monsanto’s customer receivables. A 91 percent senior interest in the entity is held by third parties, primarily investment funds, as of Nov. 30, 2013, and Aug. 31, 2013, and Monsanto holds the remaining 9 percent interest. Under the arrangement, Monsanto is required to maintain an investment in the VIE of at least 9 percent and could be required to provide additional contributions to the VIE. Monsanto currently has no unfunded commitments to the VIE. See Note 4 — Customer Financing Programs — for additional information regarding the revolving financing arrangement. | ||||||||
Creditors have no recourse against Monsanto in the event of default by the VIE. The company’s financial or other support provided to the VIE is limited to its investment. Even though Monsanto holds a subordinate interest in the VIE, the VIE was established to service transactions involving the company and the company determines the receivables that are included in the revolving financing program. Therefore, the determination is that Monsanto has the power to direct the activities most significant to the economic performance of the VIE. As a result, the company is the primary beneficiary of the VIE and the VIE has been consolidated in Monsanto’s Consolidated Financial Statements. The assets of the VIE may only be used to settle the obligations of the respective entity. Third-party investors in the VIE do not have recourse to the general assets of Monsanto other than the maximum exposure to loss relating to the VIE. The following table presents the carrying value of assets and liabilities, which are identified as restricted assets and liabilities on the company’s Statements of Consolidated Financial Position, and the maximum exposure to loss relating to the VIE for which Monsanto is the primary beneficiary. | ||||||||
Financing Program VIE | ||||||||
As of | ||||||||
(Dollars in millions) | Nov. 30, 2013 | Aug. 31, 2013 | ||||||
Cash and cash equivalents | $ | 31 | $ | 140 | ||||
Trade receivables, net | 116 | — | ||||||
Total Assets | $ | 147 | $ | 140 | ||||
Total Liabilities | — | — | ||||||
Maximum Exposure to Loss | $ | 14 | $ | — | ||||
In June 2013, Monsanto entered into an agreement with a biotechnology company to establish a jointly-owned subsidiary to focus on research and development specifically related to agricultural fungicides. The subsidiary is recorded as a consolidated VIE of Monsanto. Monsanto's ownership interest in the VIE was 4% as of Nov. 30, 2013, and was less than 1% as of Aug. 31, 2013, with the remaining interest held by a third party. Under the arrangement, Monsanto will fund the operations of the VIE in return for additional equity interests up to 35%. The funding, which may total up to $16 million, will be provided in three separate research phases if research milestones are met. Monsanto also holds a call option to acquire 100% of the equity interests in the VIE from the third party majority owner. The call option was granted by the third party majority owner to Monsanto in return for total aggregate payments of $15 million, of which $7 million had been paid by Monsanto as of Nov. 30, 2013, and Aug. 31, 2013. The remaining payments will be made upon achievement of research milestones by the VIE. Even though Monsanto holds a minority interest in the VIE, the VIE was established to perform agricultural-based research and development activities for the benefit of Monsanto, and Monsanto provides all funding of the VIE's activities. Further, Monsanto has the power to direct the activities most significant to the VIE. As a result, Monsanto is the primary beneficiary of the VIE and the VIE has been consolidated in Monsanto's Consolidated Financial Statements. As of Nov. 30, 2013, and Aug. 31, 2013, the VIE had no significant assets or liabilities. Monsanto's maximum exposure to loss as of Nov. 30, 2013, and Aug. 31, 2013, was $11 million, which includes our current investment in the VIE, the funding required to be provided to the VIE during the current research phase and the initial consideration paid related to the call option. The third party majority owner of the VIE does not have recourse to the general assets of Monsanto beyond Monsanto's maximum exposure to loss at any given time relating to the VIE. | ||||||||
Non-Consolidated VIE | ||||||||
Monsanto has a variable interest through an investment with a software company that develops software with agricultural applications. The company has not provided financial or other support other than its original investment, has no implied or unfunded commitments and the maximum exposure to loss is limited to the amount of investment in the entity and is not significant. There were no significant assets or liabilities for the VIE as of Nov. 30, 2013, and Aug. 31, 2013. |
RECEIVABLES
RECEIVABLES | 3 Months Ended | |||
Nov. 30, 2013 | ||||
Receivables [Abstract] | ' | |||
RECEIVABLES | ' | |||
RECEIVABLES | ||||
Trade receivables on the Statements of Consolidated Financial Position are net of allowances of $70 million and $68 million as of Nov. 30, 2013, and Aug. 31, 2013, respectively. | ||||
The company has financing receivables that represent long-term customer receivable balances related to past due accounts which are not expected to be collected within the current year. The long-term customer receivables were $131 million and $112 million with a corresponding allowance for credit losses on these receivables of $112 million and $104 million as of Nov. 30, 2013, and Aug. 31, 2013, respectively. These long-term customer receivable balances and the corresponding allowance are included in long-term receivables, net on the Statements of Consolidated Financial Position. For these long-term customer receivables, interest is no longer accrued when the receivable is determined to be delinquent and classified as long-term based on estimated timing of collection. | ||||
The following table displays a roll forward of the allowance for credit losses related to long-term customer receivables. | ||||
(Dollars in millions) | ||||
Balance as of Aug. 31, 2012 | $ | 141 | ||
Incremental Provision | 7 | |||
Recoveries | (1 | ) | ||
Write-offs | (47 | ) | ||
Other(1) | 4 | |||
Balance as of Aug. 31, 2013 | $ | 104 | ||
Incremental Provision | 4 | |||
Recoveries | — | |||
Write-offs | (1 | ) | ||
Other(1) | 5 | |||
Balance as of Nov. 30, 2013 | $ | 112 | ||
(1)Includes reclassifications from current receivables and foreign currency translation adjustments. | ||||
In addition, the company has long-term contractual receivables. These receivables are collected at fixed and determinable dates in accordance with the customer long-term agreement. The long-term contractual receivables were $134 million and $229 million as of Nov. 30, 2013, and Aug. 31, 2013, respectively, and did not have any allowance recorded related to these balances. These receivables are included in long-term receivables, net on the Statements of Consolidated Financial Position. There are no balances related to these long-term contractual receivables that are past due. These receivables are outstanding with large, reputable companies who have been timely with scheduled payments thus far and are considered to be fully collectible. Interest is accrued on these receivables in accordance with the agreements and is included within interest income in the Statements of Consolidated Operations. | ||||
On an ongoing basis, the company evaluates credit quality of its financing receivables utilizing aging of receivables, collection experience and write-offs, as well as evaluating existing economic conditions, to determine if an allowance is necessary. |
INVENTORY
INVENTORY | 3 Months Ended | |||||||
Nov. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
INVENTORY | ' | |||||||
INVENTORY | ||||||||
Components of inventory are: | ||||||||
As of | ||||||||
(Dollars in millions) | Nov. 30, 2013 | Aug. 31, 2013 | ||||||
Finished Goods | $ | 1,820 | $ | 1,079 | ||||
Goods In Process | 1,744 | 1,619 | ||||||
Raw Materials and Supplies | 477 | 418 | ||||||
Inventory at FIFO Cost | 4,041 | 3,116 | ||||||
Excess of FIFO over LIFO Cost | (168 | ) | (169 | ) | ||||
Total | $ | 3,873 | $ | 2,947 | ||||
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 3 Months Ended | |||||||||||||||||||||||
Nov. 30, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ' | |||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ||||||||||||||||||||||||
Changes in the net carrying amount of goodwill for the first three months of fiscal year 2014, by segment, are as follows: | ||||||||||||||||||||||||
(Dollars in millions) | Seeds and | Agricultural | Total | |||||||||||||||||||||
Genomics | Productivity | |||||||||||||||||||||||
Balance as of Aug. 31, 2013 | $ | 3,461 | $ | 59 | $ | 3,520 | ||||||||||||||||||
Acquisition activity (see Note 3) | 785 | — | 785 | |||||||||||||||||||||
Effect of foreign currency translation adjustments | 21 | (1 | ) | 20 | ||||||||||||||||||||
Balance as of Nov. 30, 2013 | $ | 4,267 | $ | 58 | $ | 4,325 | ||||||||||||||||||
Goodwill increased during the three months ended Nov. 30, 2013, due to the acquisition of The Climate Corporation. See Note 3 - Business Combinations - for further information. There were no events or circumstances indicating that goodwill might be impaired as of Nov. 30, 2013. The fiscal year 2014 annual goodwill impairment test will be performed as of March 1, 2014. | ||||||||||||||||||||||||
Information regarding the company’s other intangible assets is as follows: | ||||||||||||||||||||||||
As of Nov. 30, 2013 | As of Aug. 31, 2013 | |||||||||||||||||||||||
(Dollars in millions) | Carrying | Accumulated | Net | Carrying | Accumulated | Net | ||||||||||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||||||||||||
Acquired Intellectual Property | $ | 1,259 | $ | (799 | ) | $ | 460 | $ | 1,095 | $ | (791 | ) | $ | 304 | ||||||||||
Acquired Germplasm | 1,120 | (728 | ) | 392 | 1,113 | (717 | ) | 396 | ||||||||||||||||
Trademarks | 343 | (135 | ) | 208 | 341 | (131 | ) | 210 | ||||||||||||||||
Customer Relationships | 314 | (186 | ) | 128 | 306 | (179 | ) | 127 | ||||||||||||||||
Other | 170 | (95 | ) | 75 | 177 | (91 | ) | 86 | ||||||||||||||||
Total Other Intangible Assets, Finite Lives | $ | 3,206 | $ | (1,943 | ) | $ | 1,263 | $ | 3,032 | $ | (1,909 | ) | $ | 1,123 | ||||||||||
In Process Research & Development, Indefinite Lives | 104 | — | 104 | 103 | — | 103 | ||||||||||||||||||
Total Other Intangible Assets | $ | 3,310 | $ | (1,943 | ) | $ | 1,367 | $ | 3,135 | $ | (1,909 | ) | $ | 1,226 | ||||||||||
The increase in the carrying amount of acquired intellectual property during the three months ended Nov. 30, 2013, is primarily related to the acquisition of The Climate Corporation. Total amortization expense of other intangible assets was $27 million and $28 million for the three months ended Nov. 30, 2013, and Nov. 30, 2012, respectively. The estimated intangible asset amortization expense for fiscal year 2014 through fiscal year 2018 is as follows: | ||||||||||||||||||||||||
(Dollars in millions) | Amount | |||||||||||||||||||||||
2014 | $ | 173 | ||||||||||||||||||||||
2015 | 171 | |||||||||||||||||||||||
2016 | 123 | |||||||||||||||||||||||
2017 | 97 | |||||||||||||||||||||||
2018 | 87 | |||||||||||||||||||||||
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Nov. 30, 2013 | |
Equity Method Investments and Joint Ventures [Abstract] | ' |
INVESTMENTS AND EQUITY AFFILIATES | ' |
INVESTMENTS | |
As of Nov. 30, 2013, and Aug. 31, 2013, Monsanto has short-term investments outstanding of $249 million and $254 million, respectively. The investments at Nov. 30, 2013, and Aug. 31, 2013, are comprised of commercial paper with original maturities of one year or less. See Note 13 — Fair Value Measurements. | |
Monsanto has investments in long-term equity securities, which are considered available-for-sale. As of Nov. 30, 2013, and Aug. 31, 2013, these long-term equity securities are recorded in other assets in the Statements of Consolidated Financial Position at a fair value of $43 million and $22 million, respectively. See Note 17 — Accumulated Other Comprehensive Loss. | |
Monsanto has cost basis investments recorded in other assets in the Statements of Consolidated Financial Position. As of Nov. 30, 2013, and Aug. 31, 2013, these investments were recorded at $68 million and $67 million, respectively. Due to the nature of these investments, the fair market value is not readily determinable. These investments are reviewed for impairment indicators. | |
No significant impairments were recorded on any investments for each of the three month periods ended Nov. 30, 2013, and Nov. 30, 2012. |
DEFERRED_REVENUE
DEFERRED REVENUE | 3 Months Ended |
Nov. 30, 2013 | |
Deferred Revenue Disclosure [Abstract] | ' |
DEFERRED REVENUE | ' |
DEFERRED REVENUE | |
As of Nov. 30, 2013, and Aug. 31, 2013, short-term deferred revenue was $2,866 million and $517 million, respectively. This balance primarily consists of cash received related to Monsanto's prepayment programs in the United States and Brazil. These programs allow Monsanto's customers to receive a discount if they prepay by a certain date, and the short-term deferred revenue balance is consistent with the seasonality of Monsanto's business. Prepayment options are attractive to customers given the discounted pricing and the ability to utilize cash flow from the current year grain harvest to pay for the next season seed purchases. The deferred revenue balance related to these prepayment programs is considered short-term in nature and thus classified in current liabilities as the prepayments are for products to be shipped within the next 12 months. | |
In 2008, Monsanto entered into a corn herbicide tolerance and insect control trait technologies agreement with Pioneer Hi-Bred International, Inc. Among its provisions, the agreement modified certain existing corn license agreements between the parties. Under the agreement, which requires fixed annual payments, the company recorded a receivable and deferred revenue of $635 million in first quarter 2008. Cumulative cash receipts will be $725 million over an eight-year period. Revenue of $20 million was recorded for each of the three months ended Nov. 30, 2013, and Nov. 30, 2012. As of Nov. 30, 2013, and Aug. 31, 2013, the remaining receivable balance is $168 million and $230 million, respectively, of which $85 million is current in both periods and is included in trade receivables, net. The remaining balance is included in long-term receivables, net on the Statements of Consolidated Financial Position. As of Nov. 30, 2013, and Aug. 31, 2013, the remaining deferred revenue balance is $139 million and $159 million, respectively, of which $79 million is included in current deferred revenue in both periods. Interest income recorded on this receivable is $1 million and $2 million for the three months ended Nov. 30, 2013, and Nov. 30, 2012, respectively. | |
In 2008, Monsanto and Syngenta entered into a Genuity Roundup Ready 2 Yield Soybean License Agreement, which grants Syngenta access to Monsanto’s Genuity Roundup Ready 2 Yield Soybean technology in consideration of royalty payments from Syngenta, based on sales. The minimum obligation from Syngenta over the nine-year contract period is $81 million. Revenue of $3 million and $4 million related to this agreement was recorded for the three months ended Nov. 30, 2013, and Nov. 30, 2012, respectively. As of Nov. 30, 2013, and Aug. 31, 2013, the remaining receivable balance is $37 million and $58 million, respectively. The majority of this balance is current and is included in trade receivables, net. The remaining balance is included in long-term receivables, net on the Statements of Consolidated Financial Position. As of Nov. 30, 2013, and Aug. 31, 2013, the remaining deferred revenue balance is $31 million and $34 million, respectively, of which $24 million is included in current deferred revenue in both periods. |
INCOME_TAXES
INCOME TAXES | 3 Months Ended |
Nov. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAXES | ' |
INCOME TAXES | |
Monsanto recorded a tax benefit of $22 million in first quarter 2013 primarily as a result of a capital loss from a deemed liquidation of a subsidiary. |
DEBT_AND_OTHER_CREDIT_ARRANGEM
DEBT AND OTHER CREDIT ARRANGEMENTS | 3 Months Ended |
Nov. 30, 2013 | |
Debt Disclosure [Abstract] | ' |
DEBT AND OTHER CREDIT ARRANGEMENTS | ' |
DEBT AND OTHER CREDIT ARRANGEMENTS | |
In November 2011, Monsanto filed a new shelf registration with the SEC (2011 shelf registration) that allows the company to issue an unlimited capacity of debt, equity and hybrid offerings. The 2011 shelf registration will expire in November 2014. | |
In November 2013, Monsanto issued $400 million of Floating Rate Senior Notes which are due on November 7, 2016, (Floating Rate Notes), $300 million of 1.85% Senior Notes which are due on November 15, 2018, (2018 Senior Notes) and $300 million of 4.65% Senior Notes which are due on November 15, 2043, (2043 Senior Notes). All notes were issued under the 2011 shelf registration. | |
The net proceeds from the sale of the Floating Rate, 2018, and 2043 Senior Notes were used for the acquisition of The Climate Corporation and general corporate purposes. | |
In July 2012, Monsanto issued $250 million of 2.20% Senior Notes which are due on July 15, 2022, (2022 Senior Notes) and $250 million of 3.60% Senior Notes which are due on July 15, 2042, (2042 Senior Notes). Both were issued under the 2011 shelf registration. | |
The net proceeds from the sale of the 2022 and 2042 Senior Notes were used for general corporate purposes, including refinancing of the company’s indebtedness. | |
Monsanto has a $2 billion credit facility agreement with a group of banks that provides a senior unsecured revolving credit facility through April 1, 2016. | |
As of Nov. 30, 2013, Monsanto had commercial paper borrowings outstanding of $195 million which is included in short-term debt on the Statements of Consolidated Financial Position. | |
The fair value of the total short-term debt was $262 million and $51 million as of Nov. 30, 2013, and Aug. 31, 2013, respectively. The fair value of the total long-term debt was $3,216 million and $2,231 million as of Nov. 30, 2013, and Aug. 31, 2013, respectively. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended | ||||||||||||
Nov. 30, 2013 | |||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||||
FAIR VALUE MEASUREMENTS | |||||||||||||
Monsanto determines the fair market value of its financial assets and liabilities based on quoted market prices, estimates from brokers, and other appropriate valuation techniques. The company uses the fair value hierarchy established in the Fair Value Measurements and Disclosures topic of the ASC, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The hierarchy contains three levels as follows, with Level 3 representing the lowest level of input: | |||||||||||||
Level 1 — Values based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities. | |||||||||||||
Level 2 — Values based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, discounted cash flow models, or model-based valuation techniques adjusted, as necessary, for credit risk. | |||||||||||||
Level 3 — Values generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions would reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques could include use of option pricing models, discounted cash flow models and similar techniques. | |||||||||||||
The following tables set forth by level Monsanto’s assets and liabilities that were accounted for at fair value on a recurring basis as of Nov. 30, 2013, and Aug. 31, 2013. As required by the Fair Value Measurements and Disclosures topic of the ASC, assets and liabilities are classified in their entirety based on the lowest level of input that is a significant component of the fair value measurement. Monsanto’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of fair value assets and liabilities within the fair value hierarchy levels. | |||||||||||||
Fair Value Measurements at Nov. 30, 2013, Using | |||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||
Assets at Fair Value: | |||||||||||||
Cash equivalents | $ | 3,762 | $ | — | $ | — | $ | 3,762 | |||||
Short-term investments | 249 | — | — | 249 | |||||||||
Equity securities | 43 | — | — | 43 | |||||||||
Derivative assets related to: | |||||||||||||
Foreign currency contracts | — | 18 | — | 18 | |||||||||
Commodity contracts | 1 | 2 | — | 3 | |||||||||
Total Assets at Fair Value | $ | 4,055 | $ | 20 | $ | — | $ | 4,075 | |||||
Liabilities at Fair Value: | |||||||||||||
Derivative liabilities related to: | |||||||||||||
Foreign currency contracts | $ | — | $ | 8 | $ | — | $ | 8 | |||||
Commodity contracts | 61 | 4 | — | 65 | |||||||||
Total Liabilities at Fair Value | $ | 61 | $ | 12 | $ | — | $ | 73 | |||||
Liabilities Not Recorded at Fair Value: | |||||||||||||
Short-term debt instruments(1) | $ | — | $ | 262 | $ | — | $ | 262 | |||||
Long-term debt instruments(1) | — | 3,216 | — | 3,216 | |||||||||
Total Liabilities Not Recorded at Fair Value | $ | — | $ | 3,478 | $ | — | $ | 3,478 | |||||
Total Liabilities Recorded and Not Recorded at Fair Value | $ | 61 | $ | 3,490 | $ | — | $ | 3,551 | |||||
-1 | Short-term and long-term debt instruments are not recorded at fair value on a recurring basis; however, they are measured at fair value for disclosure purposes, as required by the Fair Value Measurements and Disclosures topic of the ASC. | ||||||||||||
Fair Value Measurements at Aug. 31, 2013, Using | |||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||
Assets at Fair Value: | |||||||||||||
Cash equivalents | $ | 2,865 | $ | — | $ | — | $ | 2,865 | |||||
Short-term investments | 254 | — | — | 254 | |||||||||
Equity securities | 22 | — | — | 22 | |||||||||
Derivative assets related to: | |||||||||||||
Foreign currency contracts | — | 5 | — | 5 | |||||||||
Commodity contracts | 13 | 6 | — | 19 | |||||||||
Total Assets at Fair Value | $ | 3,154 | $ | 11 | $ | — | $ | 3,165 | |||||
Liabilities at Fair Value: | |||||||||||||
Contingent consideration | $ | — | $ | — | $ | 40 | $ | 40 | |||||
Derivative liabilities related to: | |||||||||||||
Foreign currency contracts | — | 8 | — | 8 | |||||||||
Commodity contracts | 73 | 12 | — | 85 | |||||||||
Total Liabilities at Fair Value: | $ | 73 | $ | 20 | $ | 40 | $ | 133 | |||||
Liabilities Not Recorded at Fair Value: | |||||||||||||
Short-term debt instrument(1) | $ | — | $ | 51 | $ | — | $ | 51 | |||||
Long-term debt instruments(1) | — | 2,231 | — | 2,231 | |||||||||
Total Liabilities Not Recorded at Fair Value | $ | — | $ | 2,282 | $ | — | $ | 2,282 | |||||
Total Liabilities Recorded and Not Recorded at Fair Value | $ | 73 | $ | 2,302 | $ | 40 | $ | 2,415 | |||||
-1 | Short-term and long-term debt instruments are not recorded at fair value on a recurring basis; however, they are measured at fair value for disclosure purposes, as required by the Fair Value Measurements and Disclosures topic of the ASC. | ||||||||||||
The company’s derivative contracts are measured at fair value, including forward commodity purchase and sale contracts, exchange-traded commodity futures and option contracts, and over the counter (OTC) instruments related primarily to agricultural commodities, energy and raw materials, interest rates, and foreign currencies. Exchange-traded futures and options contracts are valued based on unadjusted quoted prices in active markets and are classified as Level 1. Fair value for forward commodity purchase and sale contracts is estimated based on exchange-quoted prices adjusted for differences in local markets. These differences are generally determined using inputs from broker or dealer quotations or market transactions in either the listed or OTC markets. When observable inputs are available for substantially the full term of the contract, it is classified as Level 2. Based on historical experience with the company’s suppliers and customers, the company’s own credit risk and knowledge of current market conditions, the company does not view nonperformance risk to be a significant input to the fair value for the majority of its forward commodity purchase and sale contracts. The effective portions of changes in the fair value of derivatives designated as cash flow hedges are recognized in the Statements of Consolidated Financial Position as a component of accumulated other comprehensive loss until the hedged items are recorded in earnings or it is probable the hedged transaction will no longer occur. Changes in the fair value of derivatives are recognized in the Statements of Consolidated Operation as a component of net sales, cost of goods sold and other expense, net. | |||||||||||||
The company’s short-term investments are comprised of commercial paper. The company’s equity securities are comprised of publicly traded equity investments. Commercial paper and publicly traded equity investments are valued using quoted market prices and are classified as Level 1. | |||||||||||||
The fair value of short-term and long-term debt was determined based on current market yields for our debt traded in the secondary market. | |||||||||||||
The company’s contingent consideration relates to the Precision Planting acquisition and was settled during the three months ended Nov. 30, 2013. | |||||||||||||
For the three months ended Nov. 30, 2013, and Nov. 30, 2012, the company had no transfers between Level 1, Level 2 and Level 3. Monsanto does not have any assets with fair value determined using Level 3 inputs as of Nov. 30, 2013, and Aug. 31, 2013. The following table summarizes the change in fair value of the Level 3 liability for the three months ended Nov. 30, 2013. | |||||||||||||
(Dollars in millions) | Contingent | ||||||||||||
Consideration | |||||||||||||
Balance as of Aug. 31, 2013 | $ | 40 | |||||||||||
Settlement | (40 | ) | |||||||||||
Balance as of Nov. 30, 2013 | $ | — | |||||||||||
There were no significant measurements of assets or liabilities to their implied fair value on a nonrecurring basis during the three months ended Nov. 30, 2013, and Nov. 30, 2012. | |||||||||||||
The recorded amounts of cash, trade receivables, miscellaneous receivables, third-party guarantees, accounts payable, grower production accruals, accrued marketing programs and miscellaneous short-term accruals approximate their fair values as of Nov. 30, 2013, and Aug. 31, 2013. | |||||||||||||
Management is ultimately responsible for all fair values presented in the company’s consolidated financial statements. The company performs analysis and review of the information and prices received from third parties to ensure that the prices represent a reasonable estimate of fair value. This process involves quantitative and qualitative analysis. As a result of the analysis, if the company determines there is a more appropriate fair value based upon the available market data, the price received from the third party is adjusted accordingly. |
FINANCIAL_INSTRUMENTS
FINANCIAL INSTRUMENTS | 3 Months Ended | |||||||||||||||||||||||
Nov. 30, 2013 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||
FINANCIAL INSTRUMENTS | ' | |||||||||||||||||||||||
FINANCIAL INSTRUMENTS | ||||||||||||||||||||||||
Cash Flow Hedges | ||||||||||||||||||||||||
The company uses foreign currency forward and foreign currency option contracts as hedges of anticipated sales or purchases denominated in foreign currencies. The company enters into these contracts to protect itself against the risk that the eventual net cash flows will be adversely affected by changes in exchange rates. | ||||||||||||||||||||||||
Monsanto’s commodity price risk management strategy is to use derivative instruments to minimize significant unanticipated earnings fluctuations that may arise from volatility in commodity prices. Price fluctuations in commodities, mainly in corn and soybeans, can cause the actual prices paid to production growers for corn and soybean seeds to differ from anticipated cash outlays. Monsanto uses commodity futures and options contracts to manage these risks. Monsanto’s energy and raw material risk management strategy is to use derivative instruments to minimize significant unanticipated manufacturing cost fluctuations that may arise from volatility in natural gas, diesel and ethylene prices. | ||||||||||||||||||||||||
Monsanto’s interest rate risk management strategy is to use derivative instruments, such as forward-starting interest rate swaps, to minimize significant unanticipated earnings fluctuations that may arise from volatility in interest rates of the company’s borrowings and to manage the interest rate sensitivity of its debt. | ||||||||||||||||||||||||
For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive loss and reclassified into earnings in the period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. | ||||||||||||||||||||||||
The maximum term over which the company is hedging exposures to the variability of cash flow (for all forecasted transactions) is 21 months for foreign currency hedges and 42 months for commodity hedges. During the next 12 months, a pretax net loss of approximately $34 million is expected to be reclassified from accumulated other comprehensive loss into earnings. During the three months ended Nov. 30, 2013, and Nov. 30, 2012, no cash flow hedges were discontinued. | ||||||||||||||||||||||||
Fair Value Hedges | ||||||||||||||||||||||||
The company uses commodity futures and options contracts as fair value hedges to manage the value of its soybean inventory. For derivative instruments that are designated and qualify as fair value hedges, both the gain or loss on the derivative and the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings. No fair value hedges were discontinued during the three months ended Nov. 30, 2013, and Nov. 30, 2012. | ||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | ||||||||||||||||||||||||
The company uses foreign exchange contracts to hedge the effects of fluctuations in exchange rates on foreign currency denominated third-party and intercompany receivables and payables. Both the gain or loss on the derivative and the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings. | ||||||||||||||||||||||||
The company uses commodity contracts to hedge anticipated cash payments to growers in the United States, Argentina, Mexico and Brazil, which can fluctuate with changes in commodity price. Because these contracts do not meet the provisions specified by the Derivatives and Hedging topic of the ASC, they do not qualify for hedge accounting treatment. Accordingly, the gain or loss on these derivatives is recognized in current earnings. | ||||||||||||||||||||||||
To reduce credit exposure in Latin America, Monsanto collects payments on certain customer accounts in grain. Such payments in grain are negotiated at or near the time Monsanto’s products are sold to the customers and are valued at the prevailing grain commodity prices. By entering into forward sales contracts related to grain, Monsanto mitigates the commodity price exposure from the time a contract is signed with a customer until the time a grain merchant collects the grain from the customer on Monsanto’s behalf. The forward sales contracts do not qualify for hedge accounting treatment under the Derivatives and Hedging topic of the ASC. Accordingly, the gain or loss on these derivatives is recognized in current earnings. | ||||||||||||||||||||||||
Monsanto uses interest rate contracts to minimize the variability of forecasted cash flows arising from the company’s VIE. The interest rate contracts do not qualify for hedge accounting treatment under the Derivatives and Hedging Topic of the ASC. Accordingly, the gain or loss on these derivatives is recognized in current earnings. | ||||||||||||||||||||||||
Financial instruments are neither held nor issued by the company for trading purposes. | ||||||||||||||||||||||||
The notional amounts of the company’s derivative instruments outstanding as of Nov. 30, 2013, and Aug. 31, 2013, were as follows: | ||||||||||||||||||||||||
As of | ||||||||||||||||||||||||
(Dollars in millions) | Nov. 30, 2013 | Aug. 31, 2013 | ||||||||||||||||||||||
Derivatives Designated as Hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | $ | 315 | $ | 261 | ||||||||||||||||||||
Commodity contracts | 916 | 872 | ||||||||||||||||||||||
Total Derivatives Designated as Hedges | $ | 1,231 | $ | 1,133 | ||||||||||||||||||||
Derivatives Not Designated as Hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | $ | 1,667 | $ | 1,188 | ||||||||||||||||||||
Commodity contracts | 113 | 217 | ||||||||||||||||||||||
Interest rate contracts | 138 | — | ||||||||||||||||||||||
Total Derivatives Not Designated as Hedges | $ | 1,918 | $ | 1,405 | ||||||||||||||||||||
The net presentation of the company’s derivative instruments outstanding were as follows: | ||||||||||||||||||||||||
As of Nov. 30, 2013 | ||||||||||||||||||||||||
(in millions) | Gross Amounts Recognized | Gross Amounts Offset in the Statement of Consolidated Financial Position | Net Amounts Included in the Statement of Consolidated Financial Position | Collateral Pledged | Net Amounts Reported in the Statement of Consolidated Financial Position | Other Items Included in the Statement of Consolidated Financial Position | Statement of Consolidated Financial Position Balance | |||||||||||||||||
Asset Derivatives: | ||||||||||||||||||||||||
Miscellaneous receivables | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | $ | 3 | $ | — | $ | 3 | $ | — | $ | 3 | ||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | 15 | — | 15 | — | 15 | |||||||||||||||||||
Commodity contracts | 1 | — | 1 | — | 1 | |||||||||||||||||||
Total miscellaneous receivables | 19 | — | 19 | — | 19 | $ | 755 | $ | 774 | |||||||||||||||
Other current assets | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | 1 | (39 | ) | (38 | ) | 38 | — | |||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Commodity contracts | 1 | — | 1 | — | 1 | |||||||||||||||||||
Total other current assets | 2 | (39 | ) | (37 | ) | 38 | 1 | 189 | 190 | |||||||||||||||
Other assets | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | — | (23 | ) | (23 | ) | 23 | — | |||||||||||||||||
Total other assets | — | (23 | ) | (23 | ) | 23 | — | 566 | 566 | |||||||||||||||
Total Asset Derivatives | $ | 21 | $ | (62 | ) | $ | (41 | ) | $ | 61 | $ | 20 | ||||||||||||
Liability Derivatives: | ||||||||||||||||||||||||
Other current assets | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | $ | 39 | $ | (39 | ) | $ | — | $ | — | $ | — | |||||||||||||
Total other current assets | 39 | (39 | ) | — | — | — | ||||||||||||||||||
Other assets | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | 23 | (23 | ) | — | — | — | ||||||||||||||||||
Total other assets | 23 | (23 | ) | — | — | — | ||||||||||||||||||
Miscellaneous short-term accruals | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | 3 | — | 3 | — | 3 | |||||||||||||||||||
Commodity contracts | 2 | — | 2 | — | 2 | |||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | 5 | — | 5 | — | 5 | |||||||||||||||||||
Commodity contracts | 1 | — | 1 | — | 1 | |||||||||||||||||||
Total miscellaneous short-term accruals | 11 | — | 11 | — | 11 | $ | 932 | $ | 943 | |||||||||||||||
Total Liability Derivatives | $ | 73 | $ | (62 | ) | $ | 11 | $ | — | $ | 11 | |||||||||||||
-1 | As allowed by the Derivatives and Hedging topic of the ASC, commodity derivative assets and liabilities have been offset by collateral subject to an enforceable master netting arrangement or similar arrangement. Therefore, these commodity contracts that are in an asset or liability position are included in asset accounts within the Statements of Consolidated Financial Position. | |||||||||||||||||||||||
As of Aug. 31, 2013 | ||||||||||||||||||||||||
(in millions) | Gross Amounts Recognized | Gross Amounts Offset in the Statement of Consolidated Financial Position | Net Amounts Included in the Statement of Consolidated Financial Position | Collateral Pledged | Net Amounts Reported in the Statement of Consolidated Financial Position | Other Items Included in the Statement of Consolidated Financial Position | Statement of Consolidated Financial Position Balance | |||||||||||||||||
Asset Derivatives: | ||||||||||||||||||||||||
Trade receivables, net | ||||||||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | $ | 1 | $ | (6 | ) | $ | (5 | ) | $ | 5 | $ | — | ||||||||||||
Total trade receivables, net | 1 | (6 | ) | (5 | ) | 5 | — | $ | 1,715 | $ | 1,715 | |||||||||||||
Miscellaneous receivables | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | 3 | — | 3 | — | 3 | |||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | 2 | — | 2 | — | 2 | |||||||||||||||||||
Commodity contracts | 4 | — | 4 | — | 4 | |||||||||||||||||||
Total miscellaneous receivables | 9 | — | 9 | — | 9 | 739 | 748 | |||||||||||||||||
Other current assets | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | 9 | (61 | ) | (52 | ) | 52 | — | |||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | 5 | (4 | ) | 1 | — | 1 | ||||||||||||||||||
Total other current assets | 14 | (65 | ) | (51 | ) | 52 | 1 | 165 | 166 | |||||||||||||||
Other assets | ||||||||||||||||||||||||
Derivatives designated as hedges | ||||||||||||||||||||||||
Commodity contracts(1) | — | (9 | ) | (9 | ) | 9 | — | |||||||||||||||||
Total other assets | — | (9 | ) | (9 | ) | 9 | — | 496 | 496 | |||||||||||||||
Total Asset Derivatives | $ | 24 | $ | (80 | ) | $ | (56 | ) | $ | 66 | $ | 10 | ||||||||||||
Liability Derivatives: | ||||||||||||||||||||||||
Trade receivables, net | ||||||||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | $ | 6 | $ | (6 | ) | $ | — | $ | — | $ | — | |||||||||||||
Total trade receivables, net | 6 | (6 | ) | — | — | — | ||||||||||||||||||
Other current assets | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | 61 | (61 | ) | — | — | — | ||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | 4 | (4 | ) | — | — | — | ||||||||||||||||||
Total other current assets | 65 | (65 | ) | — | — | — | ||||||||||||||||||
Other assets | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | 9 | (9 | ) | — | — | — | ||||||||||||||||||
Total other assets | 9 | (9 | ) | — | — | — | ||||||||||||||||||
Miscellaneous short-term accruals | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | 1 | — | 1 | — | 1 | |||||||||||||||||||
Commodity contracts | 4 | — | 4 | — | 4 | |||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | 7 | — | 7 | — | 7 | |||||||||||||||||||
Total miscellaneous short-term accruals | 12 | — | 12 | — | 12 | $ | 800 | $ | 812 | |||||||||||||||
Other liabilities | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Commodity contracts | 1 | — | 1 | — | 1 | |||||||||||||||||||
Total other liabilities | 1 | — | 1 | — | 1 | 381 | 382 | |||||||||||||||||
Total Liability Derivatives | $ | 93 | $ | (80 | ) | $ | 13 | $ | — | $ | 13 | |||||||||||||
-1 | As allowed by the Derivatives and Hedging topic of the ASC, commodity derivative assets and liabilities have been offset by collateral subject to an enforceable master netting arrangement or similar arrangement. Therefore, these commodity contracts that are in an asset or liability position are included in asset accounts within the Statements of Consolidated Financial Position. | |||||||||||||||||||||||
The gains and losses on the company’s derivative instruments were as follows: | ||||||||||||||||||||||||
Amount of Gain (Loss) | Amount of Gain (Loss) | |||||||||||||||||||||||
Recognized in AOCI(1) (Effective | Recognized in Income(2) | |||||||||||||||||||||||
Portion) | ||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Statement of Consolidated Operations Classification | ||||||||||||||||||||||
(Dollars in millions) | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2012 | ||||||||||||||||||||
Derivatives Designated as Hedges: | ||||||||||||||||||||||||
Fair value hedges: | ||||||||||||||||||||||||
Commodity contracts(3) | $ | (2 | ) | $ | 6 | Cost of goods sold | ||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||
Foreign currency contracts | $ | (2 | ) | $ | (1 | ) | (2 | ) | (2 | ) | Net sales | |||||||||||||
Foreign currency contracts | (3 | ) | (4 | ) | — | 3 | Cost of goods sold | |||||||||||||||||
Commodity contracts(4) | (61 | ) | (13 | ) | (3 | ) | 17 | Cost of goods sold | ||||||||||||||||
Interest rate contracts(5) | (2 | ) | — | (3 | ) | (3 | ) | Interest expense | ||||||||||||||||
Total Derivatives Designated as Hedges | (68 | ) | (18 | ) | (10 | ) | 21 | |||||||||||||||||
Derivatives Not Designated as Hedges: | ||||||||||||||||||||||||
Foreign currency contracts(6) | 22 | 31 | Other expense, net | |||||||||||||||||||||
Commodity contracts | 2 | 5 | Net sales | |||||||||||||||||||||
Commodity contracts | 5 | 4 | Cost of goods sold | |||||||||||||||||||||
Total Derivatives Not Designated as Hedges | 29 | 40 | ||||||||||||||||||||||
Total Derivatives | $ | (68 | ) | $ | (18 | ) | $ | 19 | $ | 61 | ||||||||||||||
-1 | Accumulated other comprehensive income (loss) (AOCI). | |||||||||||||||||||||||
-2 | For derivatives designated as cash flow hedges under the Derivatives and Hedging topic of the ASC, this represents the effective portion of the gain (loss) reclassified from AOCI into income during the period. | |||||||||||||||||||||||
-3 | Loss and gain on fair value hedges includes a loss of $1 million and a loss of less than $1 million from ineffectiveness during the three months ended Nov. 30, 2013, and Nov. 30, 2012, respectively. | |||||||||||||||||||||||
-4 | Loss and gain on commodity cash flow hedges includes a loss of $1 million and a loss of less than $1 million from ineffectiveness for the three months ended Nov. 30, 2013, and Nov. 30, 2012, respectively. No gains or losses were excluded from the assessment of hedge effectiveness during the three months ended Nov. 30, 2013, and Nov. 30, 2012. | |||||||||||||||||||||||
-5 | Loss on interest rate cash flow hedges includes a loss of less than $1 million from ineffectiveness for the three months ended Nov. 30, 2013. | |||||||||||||||||||||||
-6 | Gain on foreign currency contracts not designated as hedges is offset by a foreign currency transaction loss of $41 million and $48 million during the three months ended Nov. 30, 2013, and Nov. 30, 2012, respectively. | |||||||||||||||||||||||
Several of the company’s outstanding foreign currency derivatives are covered by International Swap Dealers’ Association (ISDA) Master Agreements with the counterparties. There are no requirements to post collateral under these agreements; however, should Monsanto’s credit rating fall below a specified rating immediately following the merger of the company with another entity, the counterparty may require all outstanding derivatives under the ISDA Master Agreement to be settled immediately at current market value, which equals carrying value. Foreign currency derivatives that are not covered by ISDA Master Agreements do not have credit-risk-related contingent provisions. Most of Monsanto’s outstanding commodity derivatives are listed commodity futures, and the company is required by the relevant commodity exchange to post collateral each day to cover the change in the fair value of these futures in the case of an unrealized loss position. Non-exchange-traded commodity derivatives may be covered by the aforementioned ISDA Master Agreements and would be subject to the same credit-risk-related contingent provisions. The aggregate fair value of all derivative instruments under ISDA Master Agreements that are in a liability position was $4 million and $7 million as of Nov. 30, 2013, and Aug. 31, 2013, respectively, which is the amount that would be required for settlement if the credit-risk-related contingent provisions underlying these agreements were triggered. | ||||||||||||||||||||||||
Credit Risk Management | ||||||||||||||||||||||||
Monsanto invests its excess cash in deposits with major banks or money market funds throughout the world in high-quality short-term debt instruments. Such investments are made only in instruments issued or enhanced by high-quality institutions. As of Nov. 30, 2013, and Aug. 31, 2013, the company had no financial instruments that represented a significant concentration of credit risk. Limited amounts are invested in any single institution to minimize risk. The company has not incurred any credit risk losses related to those investments. | ||||||||||||||||||||||||
The company sells a broad range of agricultural products to a diverse group of customers throughout the world. In the United States, the company makes substantial sales to relatively few large wholesale customers. The company’s business is highly seasonal, and it is subject to weather conditions that affect commodity prices and seed yields. Credit limits, ongoing credit evaluation and account monitoring procedures are used to minimize the risk of loss. Collateral is secured when it is deemed appropriate by the company. | ||||||||||||||||||||||||
Monsanto regularly evaluates its business practices to minimize its credit risk and periodically engages multiple banks in the United States, Argentina, Brazil and Europe in the development of customer financing options that involve direct bank financing of customer purchases. For further information on these programs, see Note 4 — Customer Financing Programs. |
POSTRETIREMENT_BENEFITS_PENSIO
POSTRETIREMENT BENEFITS - PENSIONS, HEALTH CARE AND OTHER | 3 Months Ended | |||||||||||||||||||||||
Nov. 30, 2013 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
POSTRETIREMENT BENEFITS-PENSIONS, HEALTH CARE AND OTHER | ' | |||||||||||||||||||||||
POSTRETIREMENT BENEFITS — PENSIONS, HEALTH CARE AND OTHER | ||||||||||||||||||||||||
Most of Monsanto’s U.S. employees hired prior to July 8, 2012, are covered by noncontributory pension plans sponsored by the company. Effective July 8, 2012, the U.S. pension plan was closed to new entrants; there were no changes to the U.S. pension plan for eligible employees hired prior to that date. The company also provides certain postretirement health care and life insurance benefits for retired employees through insurance contracts. The company’s net periodic benefit cost for pension benefits and health care and other postretirement benefits include the following components: | ||||||||||||||||||||||||
Three Months Ended Nov. 30, 2013 | Three Months Ended Nov. 30, 2012 | |||||||||||||||||||||||
Pension Benefits | U.S. | Outside the | Total | U.S. | Outside the | Total | ||||||||||||||||||
(Dollars in millions) | U.S. | U.S. | ||||||||||||||||||||||
Service Cost for Benefits Earned During the Period | $ | 15 | $ | 3 | $ | 18 | $ | 20 | $ | 3 | $ | 23 | ||||||||||||
Interest Cost on Benefit Obligation | 23 | 2 | 25 | 22 | 2 | 24 | ||||||||||||||||||
Assumed Return on Plan Assets | (35 | ) | (2 | ) | (37 | ) | (40 | ) | (2 | ) | (42 | ) | ||||||||||||
Amortization of Unrecognized Net Loss | 16 | 1 | 17 | 21 | 1 | 22 | ||||||||||||||||||
Curtailment and Settlement Charge | — | 1 | 1 | — | 1 | 1 | ||||||||||||||||||
Total Net Periodic Benefit Cost | $ | 19 | $ | 5 | $ | 24 | $ | 23 | $ | 5 | $ | 28 | ||||||||||||
Health Care and Other Postretirement Benefits | Three Months Ended | |||||||||||||||||||||||
(Dollars in millions) | Nov. 30, 2013 | Nov. 30, 2012 | ||||||||||||||||||||||
Service Cost for Benefits Earned During the Period | $ | 3 | $ | 5 | ||||||||||||||||||||
Interest Cost on Benefit Obligation | 3 | 3 | ||||||||||||||||||||||
Amortization of Unrecognized Net Gain | (4 | ) | (3 | ) | ||||||||||||||||||||
Total Net Periodic Benefit Cost | $ | 2 | $ | 5 | ||||||||||||||||||||
Monsanto contributed $15 million to its U.S. qualified plan in the three month period ended Nov. 30, 2013, and $11 million in the three month period ended Nov. 30, 2012. Monsanto contributed $5 million to plans outside the United States in the three month period ended Nov. 30, 2013, and $3 million in the three month period ended Nov. 30, 2012. As of Nov. 30, 2013, management expects to make additional contributions of approximately $45 million and $10 million to the company’s pension plans in the United States and outside the United States, respectively, during the remainder of fiscal year 2014. |
STOCK_BASED_COMPENSATION_PLANS
STOCK BASED COMPENSATION PLANS STOCK BASED COMPENSATION PLANS | 3 Months Ended | |||||||||||||||
Nov. 30, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
STOCK BASED COMPENSATION PLANS | ' | |||||||||||||||
STOCK-BASED COMPENSATION PLANS | ||||||||||||||||
The following table shows total stock-based compensation expense included in the Statements of Consolidated Operations for the three months ended Nov. 30, 2013, and Nov. 30, 2012. Stock-based compensation cost capitalized in inventory was $3 million and $3 million as of Nov. 30, 2013, and Aug. 31, 2013, respectively. | ||||||||||||||||
Three Months Ended | ||||||||||||||||
(Dollars in millions) | Nov. 30, 2013 | Nov. 30, 2012 | ||||||||||||||
Cost of Goods Sold | $ | 2 | $ | 4 | ||||||||||||
Selling, General and Administrative Expenses | 20 | 15 | ||||||||||||||
Research and Development Expenses | 5 | 5 | ||||||||||||||
Pre-Tax Stock-Based Compensation Expense | 27 | 24 | ||||||||||||||
Income Tax Benefit | (9 | ) | (8 | ) | ||||||||||||
Net Stock-Based Compensation Expense | $ | 18 | $ | 16 | ||||||||||||
The following table summarizes stock-based compensation activity for and as of the three months ended Nov. 30, 2013, for employees under the Monsanto Company 2005 Long-Term Incentive Plan, as amended and restated effective Jan. 24, 2012; for employees under the Climate Corporation 2006 Stock Plan, as amended on Oct. 30, 2013, collectively defined as Monsanto Stock Plans; and for directors under the Monsanto Non-Employee Director Equity Incentive Compensation Plan (Director Plan): | ||||||||||||||||
Monsanto Stock Plans | Director Plan | |||||||||||||||
Stock | Restricted | Deferred | Restricted | |||||||||||||
Options | Stock Units | Stock | Stock | |||||||||||||
Granted | 2,264,046 | 826,959 | 18,520 | 2,554 | ||||||||||||
Weighted-average grant date fair value per share | $ | 38.44 | $ | 101.08 | $ | 97.89 | $ | 97.89 | ||||||||
Pre-tax unrecognized compensation expense, net of estimated forfeitures as applicable in millions | $ | 105.1 | $ | 120.9 | $ | 1.4 | $ | 0.2 | ||||||||
Remaining weighted-average period of expense recognition/requisite service periods in years | 3 | 3 | 1 | 1 | ||||||||||||
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended | |||||||||||||||
Nov. 30, 2013 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ' | |||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ||||||||||||||||
The following table sets forth the after-tax components of accumulated other comprehensive loss and changes thereto recorded during the three months ended Nov. 30, 2013: | ||||||||||||||||
(Dollars in millions) | Foreign Currency Translation Adjustments | Net Unrealized Gain on Available for Sale Securities | Cash Flow Hedges | Postretirement Benefit Items | Total Accumulated Other Comprehensive Loss | |||||||||||
Balance as of Aug. 31, 2013 | $ | (831 | ) | $ | 8 | $ | (115 | ) | $ | (340 | ) | $ | (1,278 | ) | ||
Other comprehensive income (loss) before reclassifications | 127 | 5 | (43 | ) | — | 89 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | — | 5 | 8 | 13 | |||||||||||
Net current-period other comprehensive income (loss) | 127 | 5 | (38 | ) | 8 | 102 | ||||||||||
Balance as of Nov. 30, 2013 | $ | (704 | ) | $ | 13 | $ | (153 | ) | $ | (332 | ) | $ | (1,176 | ) | ||
The following table provides additional information regarding items reclassified out of accumulated other comprehensive loss into earnings during the three months ended Nov. 30, 2013: | ||||||||||||||||
Details about Accumulated Other Comprehensive Loss components | Amount Reclassified from Accumulated Other Comprehensive Loss | Affected Line Item in the Statement of Consolidated Operations | ||||||||||||||
Cash Flow Hedges: | ||||||||||||||||
Foreign Exchange Contracts Net Loss | $ | 2 | Net sales | |||||||||||||
Commodity Contracts Net Loss | 3 | Cost of goods sold | ||||||||||||||
Interest Rate Contracts Net Loss | 3 | Interest expense | ||||||||||||||
8 | Total before income taxes | |||||||||||||||
(3 | ) | Income tax provision | ||||||||||||||
$ | 5 | Net of tax | ||||||||||||||
Postretirement Benefit Items: | ||||||||||||||||
Amortization of Unrecognized Net Loss | $ | 3 | Inventory / Cost of goods sold(1) | |||||||||||||
Amortization of Unrecognized Net Loss | 10 | Selling and administrative expenses | ||||||||||||||
13 | Total before income taxes | |||||||||||||||
(5 | ) | Income tax provision | ||||||||||||||
$ | 8 | Net of tax | ||||||||||||||
Total Reclassifications For The Period | $ | 13 | Net of tax | |||||||||||||
-1 | The amortization of unrecognized net loss is recorded to net periodic benefit cost, which is allocated to selling, general and administrative expenses and to inventory, which is recognized through cost of goods sold. The company recorded $3 million of net periodic benefit cost to inventory, of which approximately $1 million was recognized in cost of goods sold during the three months ended Nov. 30, 2013. See Note 15 - Postretirement Benefits - Pensions, Health Care and Other - for additional information. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 3 Months Ended | |||||
Nov. 30, 2013 | ||||||
Earnings Per Share [Abstract] | ' | |||||
EARNINGS PER SHARE | ' | |||||
EARNINGS PER SHARE | ||||||
Basic earnings per share (EPS) was computed using the weighted-average number of common shares outstanding during the periods shown in the table below. The diluted EPS computation takes into account the effect of dilutive potential common shares, as shown in the table below. Potential common shares consist primarily of stock options, restricted stock, restricted stock units and directors’ deferred shares calculated using the treasury stock method and are excluded if their effect is antidilutive. Of those antidilutive options, certain options were excluded from the computations of dilutive potential common shares as their exercise prices were greater than the average market price of the common shares for the period. | ||||||
Three Months Ended | ||||||
(Shares in millions) | Nov. 30, 2013 | Nov. 30, 2012 | ||||
Weighted-Average Number of Common Shares | 526.9 | 534.8 | ||||
Dilutive Potential Common Shares | 5.7 | 5.6 | ||||
Antidilutive Potential Common Shares | 1.8 | 4.2 | ||||
Shares Excluded From Computation of Dilutive Potential Shares with Exercise Prices greater than the Average Market Price of Common Shares for the Period | 0.1 | 4.1 | ||||
SUPPLEMENTAL_CASH_FLOW_INFORMA
SUPPLEMENTAL CASH FLOW INFORMATION | 3 Months Ended | |||||||
Nov. 30, 2013 | ||||||||
Supplemental Cash Flow Information [Abstract] | ' | |||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ' | |||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||
Cash payments for interest and taxes were as follows: | ||||||||
Three Months Ended | ||||||||
(Dollars in millions) | Nov. 30, 2013 | Nov. 30, 2012 | ||||||
Interest | $ | 42 | $ | 49 | ||||
Taxes | 102 | 147 | ||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended | |
Nov. 30, 2013 | ||
Commitments and Contingencies Disclosure [Abstract] | ' | |
COMMITMENTS AND CONTINGENCIES | ' | |
COMMITMENTS AND CONTINGENCIES | ||
Environmental and Litigation Liabilities: Monsanto is involved in environmental remediation and legal proceedings to which we are party in our own name and proceedings to which our former parent Pharmacia LLC or its former subsidiary Solutia, Inc. is a party but that we manage and for which we are responsible. In addition, Monsanto has liabilities established for various product claims. With respect to certain of these proceedings, Monsanto has a liability recorded of $270 million and $271 million as of Nov. 30, 2013, and Aug. 31, 2013, respectively, for the estimated contingent liabilities. Information regarding the environmental liabilities appears in Monsanto’s Report on Form 10-K for the fiscal year ended Aug. 31, 2013. | ||
Litigation: The above liability includes amounts related to certain third-party litigation with respect to Monsanto’s business, as well as tort litigation related to Pharmacia’s former chemical business, including lawsuits involving polychlorinated biphenyls (PCBs), dioxins, and other chemical and premises liability litigation. Additional matters that are not reflected in the liability may arise in the future, and Monsanto may manage, settle, or pay judgments or damages with respect thereto in order to mitigate contesting potential liability. Following is a description of one of the more significant litigation matters reflected in the liability. | ||
• | As described in our Report on Form 10-K for the fiscal year ended Aug. 31, 2013, on Dec. 17, 2004, 15 plaintiffs filed a purported class action lawsuit, styled Virdie Allen, et al. v. Monsanto, et al., in the Putnam County, West Virginia, state court against Monsanto, Pharmacia and seven other defendants. Monsanto is named as the successor in interest to the liabilities of Pharmacia. The alleged class consists of all current and former residents, workers, and students who, between 1949 and the present, were allegedly exposed to dioxins/furans contamination in counties surrounding Nitro, West Virginia. The complaint alleges that the source of the contamination is a chemical plant in Nitro, formerly owned and operated by Pharmacia and later by Flexsys, a joint venture between Solutia and Akzo Nobel Chemicals, Inc. (Akzo Nobel). Akzo Nobel and Flexsys were named defendants in the case but Solutia was not, due to its then pending bankruptcy proceeding. The suit seeks damages for property cleanup costs, loss of real estate value, funds to test property for contamination levels, funds to test for human exposure, and future medical monitoring costs. The complaint also seeks an injunction against further contamination and punitive damages. Monsanto has agreed to indemnify and defend Akzo Nobel and the Flexsys defendant group, but on May 27, 2011, the judge dismissed both Akzo Nobel and Flexsys from the case. The class action certification hearing was held on Oct. 29, 2007. On Jan. 8, 2008, the trial court issued an order certifying the Allen (now Zina G. Bibb et al. v. Monsanto et al., because Bibb replaced Allen as class representative) case as a class action for property damage and for medical monitoring. On Nov. 2, 2011, the court, in response to defense motions, entered an order decertifying the property class. After the trial for the Bibb medical monitoring class action began on Jan. 3, 2012, the parties reached a settlement in principle as to both the medical monitoring and the property class claims. The proposed settlement provides for a 30 year medical monitoring program consisting of a primary fund of up to $21 million and an additional fund of up to $63 million over the life of the program, and a three year property remediation plan with funding up to $9 million. On Feb. 24, 2012, the court preliminarily approved the parties’ proposed settlement. A fairness hearing was held June 18, 2012, resulting in the trial court's final approval of the settlement. Certain plaintiffs objected to the approval of the settlement and appealed to the West Virginia Supreme Court of Appeals. On Nov. 22, 2013, the West Virginia Supreme Court of Appeals dismissed the appeal and upheld the fairness of the class action settlements. On Dec. 20, 2013, the objector moved for a stay, pending his petition for writ of certiorari with the U.S. Supreme Court. | |
In October 2007 and November 2009, a total of approximately 200 separate, single plaintiff civil actions were filed in Putnam County, West Virginia, against Monsanto, Pharmacia, Akzo Nobel (and several of its affiliates), Flexsys America Co. (and several of its affiliates), Solutia, and Apogee Coal Company, LLC. These cases allege personal injury occasioned by exposure to dioxin generated by the Nitro Plant during production of 2,4,5T (1949-1969) and thereafter. Monsanto has agreed to accept the tenders of defense in the matters by Pharmacia, Solutia, Akzo Nobel, Flexsys America, and Apogee Coal under a reservation of rights. During the discovery phase of these several claims, the parties reached an agreement in principle to resolve all pending personal injury claims which is reflected in the above liability. | ||
Including litigation reflected in the liability, Monsanto is involved in various legal proceedings that arise in the ordinary course of its business or pursuant to Monsanto’s indemnification obligations to Pharmacia, as well as proceedings that management has considered to be material under SEC regulations. Some of the lawsuits seek damages in very large amounts, or seek to restrict the company’s business activities. Monsanto believes that it has meritorious legal arguments and will continue to represent its interests vigorously in all of the proceedings that it is defending or prosecuting. Management does not anticipate the ultimate liabilities resulting from such proceedings, or the proceedings reflected in the above liability, will have a material adverse effect on Monsanto’s consolidated results of operations, financial position, cash flows or liquidity. | ||
Legal actions have been filed in Brazil that raise issues challenging the right to collect certain royalties for Roundup Ready soybeans. Although Brazilian law clearly states that the pipeline patents protecting these products have the duration of the corresponding U.S. patent (2014 for Roundup Ready soybeans), the duration (and application) of these pipeline patents is currently under judicial review in Brazil. Monsanto believes it has meritorious legal arguments and will continue to represent its interests vigorously in these proceedings. The current estimate of the company’s reasonably possible loss contingency is not material to consolidated results of operations, financial position, cash flows or liquidity. | ||
Other Contingencies: The staff of the SEC is conducting an investigation of financial reporting associated with our customer incentive programs for glyphosate products for the fiscal years 2009 and 2010, and we have received subpoenas in connection therewith. It is not reasonably possible to assess the outcome of the investigation at this time, but potential outcomes could include the filing of an enforcement proceeding and the imposition of civil penalties as well as non-monetary remedies, which may require the Company to incur future costs. We continue cooperating with the investigation. | ||
Guarantees: Disclosures regarding the guarantees Monsanto provides for certain customer loans in the United States, Brazil, Europe, and Argentina can be found in Note 4 — Customer Financing Programs — of this Form 10-Q. Except as described in that note, there have been no significant changes to guarantees made by Monsanto since Aug. 31, 2013. Disclosures regarding these guarantees made by Monsanto can be found in Note 26 — Commitments and Contingencies — of the notes to the consolidated financial statements contained in Monsanto’s Report on Form 10-K for the fiscal year ended Aug. 31, 2013. |
SEGMENT_AND_GEOGRAPHIC_DATA
SEGMENT AND GEOGRAPHIC DATA | 3 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
SEGMENT INFORMATION | ' | ||||||||
SEGMENT INFORMATION | |||||||||
Monsanto conducts its worldwide operations through global businesses, which are aggregated into reportable segments based on similarity of products, production processes, customers, distribution methods and economic characteristics. The operating segments are aggregated into two reportable segments: Seeds and Genomics and Agricultural Productivity. The Seeds and Genomics segment consists of the global seeds and related traits businesses, biotechnology platforms and precision agriculture. Within the Seeds and Genomics segment, Monsanto’s significant operating segments are corn seed and traits, soybean seed and traits, cotton seed and traits, vegetable seeds and all other crops seeds and traits. The Agricultural Productivity reportable segment consists of the Agricultural Productivity operating segment. EBIT is defined as earnings before interest and taxes and is an operating performance measure for the two reportable segments. EBIT is useful to management in demonstrating the operational profitability of the segments by excluding interest and taxes, which are generally accounted for across the entire company on a consolidated basis. Sales between segments were not significant. Certain SG&A expenses are allocated between segments based on the segment’s relative contribution to total Monsanto operations. Allocation percentages remain relatively consistent for fiscal years 2013 and 2014. | |||||||||
Data for the Seeds and Genomics and Agricultural Productivity reportable segments, as well as for Monsanto’s significant operating segments, is presented in the table that follows: | |||||||||
Three Months Ended | |||||||||
(Dollars in millions) | Nov. 30, 2013 | Nov. 30, 2012 | |||||||
Net Sales(1) | |||||||||
Corn seed and traits | $ | 1,054 | $ | 1,139 | |||||
Soybean seed and traits | 267 | 231 | |||||||
Cotton seed and traits | 137 | 185 | |||||||
Vegetable seeds | 157 | 156 | |||||||
All other crops seeds and traits | 61 | 44 | |||||||
Total Seeds and Genomics | $ | 1,676 | $ | 1,755 | |||||
Agricultural productivity | 1,467 | 1,184 | |||||||
Total Agricultural Productivity | $ | 1,467 | $ | 1,184 | |||||
Total | $ | 3,143 | $ | 2,939 | |||||
Gross Profit | |||||||||
Corn seed and traits | $ | 650 | $ | 686 | |||||
Soybean seed and traits | 168 | 118 | |||||||
Cotton seed and traits | 92 | 127 | |||||||
Vegetable seeds | 68 | 83 | |||||||
All other crops seeds and traits | 27 | 11 | |||||||
Total Seeds and Genomics | $ | 1,005 | $ | 1,025 | |||||
Agricultural productivity | 558 | 372 | |||||||
Total Agricultural Productivity | $ | 558 | $ | 372 | |||||
Total | $ | 1,563 | $ | 1,397 | |||||
EBIT(2)(3) | |||||||||
Seeds and Genomics | $ | 104 | $ | 220 | |||||
Agricultural Productivity | 450 | 270 | |||||||
Total | $ | 554 | $ | 490 | |||||
Depreciation and Amortization Expense | |||||||||
Seeds and Genomics | $ | 131 | $ | 123 | |||||
Agricultural Productivity | 31 | 29 | |||||||
Total | $ | 162 | $ | 152 | |||||
-1 | Represents net sales from continuing operations. | ||||||||
-2 | EBIT is defined as earnings before interest and taxes; see the following table for reconciliation. Earnings is intended to mean net income as presented in the Statements of Consolidated Operations under generally accepted accounting principles. EBIT is an operating performance measure for the two reportable segments. | ||||||||
-3 | Agricultural Productivity EBIT includes income from operations of discontinued businesses of $14 million and $11 million for the three months ended Nov. 30, 2013, and Nov. 30, 2012, respectively. | ||||||||
A reconciliation of EBIT to net income for each period follows: | |||||||||
Three Months Ended | |||||||||
(Dollars in millions) | Nov. 30, 2013 | Nov. 30, 2012 | |||||||
EBIT(1) | $ | 554 | $ | 490 | |||||
Interest Expense — Net | 29 | 28 | |||||||
Income Tax Provision(2) | 157 | 123 | |||||||
Net Income Attributable to Monsanto Company | $ | 368 | $ | 339 | |||||
-1 | Includes the income from operations of discontinued businesses and pre-tax noncontrolling interests. | ||||||||
-2 | Includes the income tax benefit on noncontrolling interest and the income tax provision on discontinued operations. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Nov. 30, 2013 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
SUBSEQUENT EVENTS | |
On Dec. 9, 2013, the board of directors declared a quarterly dividend on its common shares of 43 cents per share. The dividend is payable on Jan. 31, 2014, to shareholders of record on Jan. 10, 2014. | |
Other subsequent events are described in Note 5 — Variable Interest Entities. | |
In December 2013, Monsanto executed the first of a series of incentive agreements with the County of St. Louis, Missouri. Under these agreements the company has transferred the Chesterfield, Missouri facility to St. Louis County and received Industrial Revenue Bonds in the amount of up to $470 million which enables the company to reduce the cost of constructing and operating the expansion by reducing certain state and local tax expenditures. Monsanto will then lease the facility from the County of St. Louis. The payments due to the company in relation to the Industrial Revenue Bonds and owed by the company in relation to the lease of the facilities qualify for the right of offset under the Balance Sheet topic of the ASC, on the Statements of Consolidated Financial Position, and as a result Monsanto will treat the Chesterfield facilities and the expansion as being owned by Monsanto and not include the Industrial Revenue Bonds on the Statements of Consolidated Financial Position as an asset. |
BUSINESS_COMBINATIONS_Tables
BUSINESS COMBINATIONS (Tables) | 3 Months Ended | |||||||
Nov. 30, 2013 | ||||||||
Business Combinations [Abstract] | ' | |||||||
Schedule of Business Acquisitions, by Acquisition | ' | |||||||
The estimated fair value of the assets and liabilities, summarized in the table below, represents the preliminary purchase price allocation. This allocation will be finalized as soon as the information becomes available, however, not to exceed one year from the acquisition date. | ||||||||
(Dollars in millions) | 2014 Acquisition | |||||||
Current Assets | $ | 59 | ||||||
Property, Plant & Equipment | 9 | |||||||
Goodwill | 785 | |||||||
Other Intangible Assets | 145 | |||||||
Total Assets Acquired | 998 | |||||||
Current Liabilities | 10 | |||||||
Other Liabilities | 56 | |||||||
Total Liabilities Assumed | 66 | |||||||
Net Assets Acquired | $ | 932 | ||||||
Supplemental Information: | ||||||||
Net assets acquired | $ | 932 | ||||||
Cash acquired | 15 | |||||||
Cash paid, net of cash acquired | $ | 917 | ||||||
Schedule of Indefinite-lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | ' | |||||||
The following table presents details of the definite life acquired identifiable intangible assets: | ||||||||
(Dollars in millions) | Weighted-Average Life (Years) | Useful Life | 2014 Acquisition | |||||
(Years) | ||||||||
Acquired Intellectual Property | 10 | 10 | $ | 141 | ||||
Customer Relationships | 1 | 1 | 4 | |||||
Other Intangible Assets | $ | 145 | ||||||
CUSTOMER_FINANCING_PROGRAMS_Ta
CUSTOMER FINANCING PROGRAMS (Tables) | 3 Months Ended | |||||||
Nov. 30, 2013 | ||||||||
CUSTOMER FINANCING PROGRAMS (Tables) [Abstract] | ' | |||||||
Customer Financing Programs | ' | |||||||
Monsanto participates in customer financing programs as follows: | ||||||||
As of | ||||||||
(Dollars in millions) | Nov. 30, 2013 | Aug. 31, 2013 | ||||||
Transactions that Qualify for Sales Treatment | ||||||||
U.S. agreement to sell trade receivables(1) | ||||||||
Outstanding balance | $ | 128 | $ | 348 | ||||
Maximum future payout under recourse provisions | 9 | 19 | ||||||
European and Latin American agreements to sell trade receivables(2) | ||||||||
Outstanding balance | $ | 28 | $ | 44 | ||||
Maximum future payout under recourse provisions | 28 | 41 | ||||||
Agreements with Lenders(3) | ||||||||
Outstanding balance | $ | 60 | $ | 45 | ||||
Maximum future payout under the guarantee | 44 | 32 | ||||||
Customer Financing Programs, Sales of Receivables | ' | |||||||
The gross amount of receivables sold under transactions that qualify for sales treatment were: | ||||||||
Gross Amount of Receivables Sold | ||||||||
Three Months Ended | ||||||||
(Dollars in millions) | Nov. 30, 2013 | Nov. 30, 2012 | ||||||
Transactions that Qualify for Sales Treatment | ||||||||
U.S. agreement to sell trade receivables(1) | $ | 23 | $ | 2 | ||||
European and Latin American agreements to sell trade receivables(2) | 7 | — | ||||||
-1 | Monsanto has an agreement in the United States to sell trade receivables up to a maximum outstanding balance of $500 million and to service such accounts. These receivables qualify for sales treatment under the Transfers and Servicing topic of the ASC and, accordingly, the proceeds are included in net cash provided by operating activities in the Statements of Consolidated Cash Flows. The agreement includes recourse provisions and thus a liability is established at the time of sale that approximates fair value based upon the company’s historical collection experience and a current assessment of credit exposure. | |||||||
-2 | Monsanto has various agreements in European and Latin American countries to sell trade receivables, both with and without recourse. The sales within these programs qualify for sales treatment under the Transfers and Servicing topic of the ASC and, accordingly, the proceeds are included in net cash provided by operating activities in the Statements of Consolidated Cash Flows. The liability for the guarantees for sales with recourse is recorded at an amount that approximates fair value, based on the company’s historical collection experience for the customers associated with the sale of the receivables and a current assessment of credit exposure. | |||||||
-3 | Monsanto has additional agreements with lenders to establish programs that provide financing for select customers in the United States, Brazil, Latin America and Europe. Monsanto provides various levels of recourse through guarantees of the accounts in the event of customer default. The term of the guarantee is equivalent to the term of the customer loans. The liability for the guarantees is recorded at an amount that approximates fair value, based on the company’s historical collection experience with customers that participate in the program and a current assessment of credit exposure. If performance is required under the guarantee, Monsanto may retain amounts that are subsequently collected from customers. |
VARIABLE_INTEREST_ENTITIES_Tab
VARIABLE INTEREST ENTITIES (Tables) | 3 Months Ended | |||||||
Nov. 30, 2013 | ||||||||
VARIABLE INTEREST ENTITIES [Abstract] | ' | |||||||
Schedule of Consolidated Variable Interest Entity, Amount of Assets, Liabilities, and Maximum Exposure to Loss | ' | |||||||
The following table presents the carrying value of assets and liabilities, which are identified as restricted assets and liabilities on the company’s Statements of Consolidated Financial Position, and the maximum exposure to loss relating to the VIE for which Monsanto is the primary beneficiary. | ||||||||
Financing Program VIE | ||||||||
As of | ||||||||
(Dollars in millions) | Nov. 30, 2013 | Aug. 31, 2013 | ||||||
Cash and cash equivalents | $ | 31 | $ | 140 | ||||
Trade receivables, net | 116 | — | ||||||
Total Assets | $ | 147 | $ | 140 | ||||
Total Liabilities | — | — | ||||||
Maximum Exposure to Loss | $ | 14 | $ | — | ||||
RECEIVABLES_Tables
RECEIVABLES (Tables) | 3 Months Ended | |||
Nov. 30, 2013 | ||||
Receivables [Abstract] | ' | |||
Allowance For Doubtful Long Term Receivables | ' | |||
The following table displays a roll forward of the allowance for credit losses related to long-term customer receivables. | ||||
(Dollars in millions) | ||||
Balance as of Aug. 31, 2012 | $ | 141 | ||
Incremental Provision | 7 | |||
Recoveries | (1 | ) | ||
Write-offs | (47 | ) | ||
Other(1) | 4 | |||
Balance as of Aug. 31, 2013 | $ | 104 | ||
Incremental Provision | 4 | |||
Recoveries | — | |||
Write-offs | (1 | ) | ||
Other(1) | 5 | |||
Balance as of Nov. 30, 2013 | $ | 112 | ||
(1)Includes reclassifications from current receivables and foreign currency translation adjustments. |
INVENTORY_Tables
INVENTORY (Tables) | 3 Months Ended | |||||||
Nov. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Components of Inventory | ' | |||||||
Components of inventory are: | ||||||||
As of | ||||||||
(Dollars in millions) | Nov. 30, 2013 | Aug. 31, 2013 | ||||||
Finished Goods | $ | 1,820 | $ | 1,079 | ||||
Goods In Process | 1,744 | 1,619 | ||||||
Raw Materials and Supplies | 477 | 418 | ||||||
Inventory at FIFO Cost | 4,041 | 3,116 | ||||||
Excess of FIFO over LIFO Cost | (168 | ) | (169 | ) | ||||
Total | $ | 3,873 | $ | 2,947 | ||||
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 3 Months Ended | |||||||||||||||||||||||
Nov. 30, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Net Carrying Amount of Goodwill | ' | |||||||||||||||||||||||
Changes in the net carrying amount of goodwill for the first three months of fiscal year 2014, by segment, are as follows: | ||||||||||||||||||||||||
(Dollars in millions) | Seeds and | Agricultural | Total | |||||||||||||||||||||
Genomics | Productivity | |||||||||||||||||||||||
Balance as of Aug. 31, 2013 | $ | 3,461 | $ | 59 | $ | 3,520 | ||||||||||||||||||
Acquisition activity (see Note 3) | 785 | — | 785 | |||||||||||||||||||||
Effect of foreign currency translation adjustments | 21 | (1 | ) | 20 | ||||||||||||||||||||
Balance as of Nov. 30, 2013 | $ | 4,267 | $ | 58 | $ | 4,325 | ||||||||||||||||||
Other Intangible Assets Information | ' | |||||||||||||||||||||||
Information regarding the company’s other intangible assets is as follows: | ||||||||||||||||||||||||
As of Nov. 30, 2013 | As of Aug. 31, 2013 | |||||||||||||||||||||||
(Dollars in millions) | Carrying | Accumulated | Net | Carrying | Accumulated | Net | ||||||||||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||||||||||||
Acquired Intellectual Property | $ | 1,259 | $ | (799 | ) | $ | 460 | $ | 1,095 | $ | (791 | ) | $ | 304 | ||||||||||
Acquired Germplasm | 1,120 | (728 | ) | 392 | 1,113 | (717 | ) | 396 | ||||||||||||||||
Trademarks | 343 | (135 | ) | 208 | 341 | (131 | ) | 210 | ||||||||||||||||
Customer Relationships | 314 | (186 | ) | 128 | 306 | (179 | ) | 127 | ||||||||||||||||
Other | 170 | (95 | ) | 75 | 177 | (91 | ) | 86 | ||||||||||||||||
Total Other Intangible Assets, Finite Lives | $ | 3,206 | $ | (1,943 | ) | $ | 1,263 | $ | 3,032 | $ | (1,909 | ) | $ | 1,123 | ||||||||||
In Process Research & Development, Indefinite Lives | 104 | — | 104 | 103 | — | 103 | ||||||||||||||||||
Total Other Intangible Assets | $ | 3,310 | $ | (1,943 | ) | $ | 1,367 | $ | 3,135 | $ | (1,909 | ) | $ | 1,226 | ||||||||||
Intangible Assets Future Amortization Expense | ' | |||||||||||||||||||||||
The estimated intangible asset amortization expense for fiscal year 2014 through fiscal year 2018 is as follows: | ||||||||||||||||||||||||
(Dollars in millions) | Amount | |||||||||||||||||||||||
2014 | $ | 173 | ||||||||||||||||||||||
2015 | 171 | |||||||||||||||||||||||
2016 | 123 | |||||||||||||||||||||||
2017 | 97 | |||||||||||||||||||||||
2018 | 87 | |||||||||||||||||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended | ||||||||||||
Nov. 30, 2013 | |||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ' | ||||||||||||
Fair Value Measurements at Nov. 30, 2013, Using | |||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||
Assets at Fair Value: | |||||||||||||
Cash equivalents | $ | 3,762 | $ | — | $ | — | $ | 3,762 | |||||
Short-term investments | 249 | — | — | 249 | |||||||||
Equity securities | 43 | — | — | 43 | |||||||||
Derivative assets related to: | |||||||||||||
Foreign currency contracts | — | 18 | — | 18 | |||||||||
Commodity contracts | 1 | 2 | — | 3 | |||||||||
Total Assets at Fair Value | $ | 4,055 | $ | 20 | $ | — | $ | 4,075 | |||||
Liabilities at Fair Value: | |||||||||||||
Derivative liabilities related to: | |||||||||||||
Foreign currency contracts | $ | — | $ | 8 | $ | — | $ | 8 | |||||
Commodity contracts | 61 | 4 | — | 65 | |||||||||
Total Liabilities at Fair Value | $ | 61 | $ | 12 | $ | — | $ | 73 | |||||
Liabilities Not Recorded at Fair Value: | |||||||||||||
Short-term debt instruments(1) | $ | — | $ | 262 | $ | — | $ | 262 | |||||
Long-term debt instruments(1) | — | 3,216 | — | 3,216 | |||||||||
Total Liabilities Not Recorded at Fair Value | $ | — | $ | 3,478 | $ | — | $ | 3,478 | |||||
Total Liabilities Recorded and Not Recorded at Fair Value | $ | 61 | $ | 3,490 | $ | — | $ | 3,551 | |||||
-1 | Short-term and long-term debt instruments are not recorded at fair value on a recurring basis; however, they are measured at fair value for disclosure purposes, as required by the Fair Value Measurements and Disclosures topic of the ASC. | ||||||||||||
Fair Value Measurements at Aug. 31, 2013, Using | |||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||
Assets at Fair Value: | |||||||||||||
Cash equivalents | $ | 2,865 | $ | — | $ | — | $ | 2,865 | |||||
Short-term investments | 254 | — | — | 254 | |||||||||
Equity securities | 22 | — | — | 22 | |||||||||
Derivative assets related to: | |||||||||||||
Foreign currency contracts | — | 5 | — | 5 | |||||||||
Commodity contracts | 13 | 6 | — | 19 | |||||||||
Total Assets at Fair Value | $ | 3,154 | $ | 11 | $ | — | $ | 3,165 | |||||
Liabilities at Fair Value: | |||||||||||||
Contingent consideration | $ | — | $ | — | $ | 40 | $ | 40 | |||||
Derivative liabilities related to: | |||||||||||||
Foreign currency contracts | — | 8 | — | 8 | |||||||||
Commodity contracts | 73 | 12 | — | 85 | |||||||||
Total Liabilities at Fair Value: | $ | 73 | $ | 20 | $ | 40 | $ | 133 | |||||
Liabilities Not Recorded at Fair Value: | |||||||||||||
Short-term debt instrument(1) | $ | — | $ | 51 | $ | — | $ | 51 | |||||
Long-term debt instruments(1) | — | 2,231 | — | 2,231 | |||||||||
Total Liabilities Not Recorded at Fair Value | $ | — | $ | 2,282 | $ | — | $ | 2,282 | |||||
Total Liabilities Recorded and Not Recorded at Fair Value | $ | 73 | $ | 2,302 | $ | 40 | $ | 2,415 | |||||
-1 | Short-term and long-term debt instruments are not recorded at fair value on a recurring basis; however, they are measured at fair value for disclosure purposes, as required by the Fair Value Measurements and Disclosures topic of the ASC. | ||||||||||||
Level 3 Rollforward | ' | ||||||||||||
The following table summarizes the change in fair value of the Level 3 liability for the three months ended Nov. 30, 2013. | |||||||||||||
(Dollars in millions) | Contingent | ||||||||||||
Consideration | |||||||||||||
Balance as of Aug. 31, 2013 | $ | 40 | |||||||||||
Settlement | (40 | ) | |||||||||||
Balance as of Nov. 30, 2013 | $ | — | |||||||||||
FINANCIAL_INSTRUMENTS_Tables
FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended | |||||||||||||||||||||||
Nov. 30, 2013 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||
Derivative Instruments (Notional Amounts) | ' | |||||||||||||||||||||||
The notional amounts of the company’s derivative instruments outstanding as of Nov. 30, 2013, and Aug. 31, 2013, were as follows: | ||||||||||||||||||||||||
As of | ||||||||||||||||||||||||
(Dollars in millions) | Nov. 30, 2013 | Aug. 31, 2013 | ||||||||||||||||||||||
Derivatives Designated as Hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | $ | 315 | $ | 261 | ||||||||||||||||||||
Commodity contracts | 916 | 872 | ||||||||||||||||||||||
Total Derivatives Designated as Hedges | $ | 1,231 | $ | 1,133 | ||||||||||||||||||||
Derivatives Not Designated as Hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | $ | 1,667 | $ | 1,188 | ||||||||||||||||||||
Commodity contracts | 113 | 217 | ||||||||||||||||||||||
Interest rate contracts | 138 | — | ||||||||||||||||||||||
Total Derivatives Not Designated as Hedges | $ | 1,918 | $ | 1,405 | ||||||||||||||||||||
Fair Values of Derivative Instruments | ' | |||||||||||||||||||||||
The net presentation of the company’s derivative instruments outstanding were as follows: | ||||||||||||||||||||||||
As of Nov. 30, 2013 | ||||||||||||||||||||||||
(in millions) | Gross Amounts Recognized | Gross Amounts Offset in the Statement of Consolidated Financial Position | Net Amounts Included in the Statement of Consolidated Financial Position | Collateral Pledged | Net Amounts Reported in the Statement of Consolidated Financial Position | Other Items Included in the Statement of Consolidated Financial Position | Statement of Consolidated Financial Position Balance | |||||||||||||||||
Asset Derivatives: | ||||||||||||||||||||||||
Miscellaneous receivables | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | $ | 3 | $ | — | $ | 3 | $ | — | $ | 3 | ||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | 15 | — | 15 | — | 15 | |||||||||||||||||||
Commodity contracts | 1 | — | 1 | — | 1 | |||||||||||||||||||
Total miscellaneous receivables | 19 | — | 19 | — | 19 | $ | 755 | $ | 774 | |||||||||||||||
Other current assets | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | 1 | (39 | ) | (38 | ) | 38 | — | |||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Commodity contracts | 1 | — | 1 | — | 1 | |||||||||||||||||||
Total other current assets | 2 | (39 | ) | (37 | ) | 38 | 1 | 189 | 190 | |||||||||||||||
Other assets | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | — | (23 | ) | (23 | ) | 23 | — | |||||||||||||||||
Total other assets | — | (23 | ) | (23 | ) | 23 | — | 566 | 566 | |||||||||||||||
Total Asset Derivatives | $ | 21 | $ | (62 | ) | $ | (41 | ) | $ | 61 | $ | 20 | ||||||||||||
Liability Derivatives: | ||||||||||||||||||||||||
Other current assets | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | $ | 39 | $ | (39 | ) | $ | — | $ | — | $ | — | |||||||||||||
Total other current assets | 39 | (39 | ) | — | — | — | ||||||||||||||||||
Other assets | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | 23 | (23 | ) | — | — | — | ||||||||||||||||||
Total other assets | 23 | (23 | ) | — | — | — | ||||||||||||||||||
Miscellaneous short-term accruals | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | 3 | — | 3 | — | 3 | |||||||||||||||||||
Commodity contracts | 2 | — | 2 | — | 2 | |||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | 5 | — | 5 | — | 5 | |||||||||||||||||||
Commodity contracts | 1 | — | 1 | — | 1 | |||||||||||||||||||
Total miscellaneous short-term accruals | 11 | — | 11 | — | 11 | $ | 932 | $ | 943 | |||||||||||||||
Total Liability Derivatives | $ | 73 | $ | (62 | ) | $ | 11 | $ | — | $ | 11 | |||||||||||||
-1 | As allowed by the Derivatives and Hedging topic of the ASC, commodity derivative assets and liabilities have been offset by collateral subject to an enforceable master netting arrangement or similar arrangement. Therefore, these commodity contracts that are in an asset or liability position are included in asset accounts within the Statements of Consolidated Financial Position. | |||||||||||||||||||||||
As of Aug. 31, 2013 | ||||||||||||||||||||||||
(in millions) | Gross Amounts Recognized | Gross Amounts Offset in the Statement of Consolidated Financial Position | Net Amounts Included in the Statement of Consolidated Financial Position | Collateral Pledged | Net Amounts Reported in the Statement of Consolidated Financial Position | Other Items Included in the Statement of Consolidated Financial Position | Statement of Consolidated Financial Position Balance | |||||||||||||||||
Asset Derivatives: | ||||||||||||||||||||||||
Trade receivables, net | ||||||||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | $ | 1 | $ | (6 | ) | $ | (5 | ) | $ | 5 | $ | — | ||||||||||||
Total trade receivables, net | 1 | (6 | ) | (5 | ) | 5 | — | $ | 1,715 | $ | 1,715 | |||||||||||||
Miscellaneous receivables | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | 3 | — | 3 | — | 3 | |||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | 2 | — | 2 | — | 2 | |||||||||||||||||||
Commodity contracts | 4 | — | 4 | — | 4 | |||||||||||||||||||
Total miscellaneous receivables | 9 | — | 9 | — | 9 | 739 | 748 | |||||||||||||||||
Other current assets | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | 9 | (61 | ) | (52 | ) | 52 | — | |||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | 5 | (4 | ) | 1 | — | 1 | ||||||||||||||||||
Total other current assets | 14 | (65 | ) | (51 | ) | 52 | 1 | 165 | 166 | |||||||||||||||
Other assets | ||||||||||||||||||||||||
Derivatives designated as hedges | ||||||||||||||||||||||||
Commodity contracts(1) | — | (9 | ) | (9 | ) | 9 | — | |||||||||||||||||
Total other assets | — | (9 | ) | (9 | ) | 9 | — | 496 | 496 | |||||||||||||||
Total Asset Derivatives | $ | 24 | $ | (80 | ) | $ | (56 | ) | $ | 66 | $ | 10 | ||||||||||||
Liability Derivatives: | ||||||||||||||||||||||||
Trade receivables, net | ||||||||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | $ | 6 | $ | (6 | ) | $ | — | $ | — | $ | — | |||||||||||||
Total trade receivables, net | 6 | (6 | ) | — | — | — | ||||||||||||||||||
Other current assets | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | 61 | (61 | ) | — | — | — | ||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | 4 | (4 | ) | — | — | — | ||||||||||||||||||
Total other current assets | 65 | (65 | ) | — | — | — | ||||||||||||||||||
Other assets | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | 9 | (9 | ) | — | — | — | ||||||||||||||||||
Total other assets | 9 | (9 | ) | — | — | — | ||||||||||||||||||
Miscellaneous short-term accruals | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | 1 | — | 1 | — | 1 | |||||||||||||||||||
Commodity contracts | 4 | — | 4 | — | 4 | |||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | 7 | — | 7 | — | 7 | |||||||||||||||||||
Total miscellaneous short-term accruals | 12 | — | 12 | — | 12 | $ | 800 | $ | 812 | |||||||||||||||
Other liabilities | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Commodity contracts | 1 | — | 1 | — | 1 | |||||||||||||||||||
Total other liabilities | 1 | — | 1 | — | 1 | 381 | 382 | |||||||||||||||||
Total Liability Derivatives | $ | 93 | $ | (80 | ) | $ | 13 | $ | — | $ | 13 | |||||||||||||
-1 | As allowed by the Derivatives and Hedging topic of the ASC, commodity derivative assets and liabilities have been offset by collateral subject to an enforceable master netting arrangement or similar arrangement. Therefore, these commodity contracts that are in an asset or liability position are included in asset accounts within the Statements of Consolidated Financial Position. | |||||||||||||||||||||||
The net presentation of the company’s derivative instruments outstanding were as follows: | ||||||||||||||||||||||||
As of Nov. 30, 2013 | ||||||||||||||||||||||||
(in millions) | Gross Amounts Recognized | Gross Amounts Offset in the Statement of Consolidated Financial Position | Net Amounts Included in the Statement of Consolidated Financial Position | Collateral Pledged | Net Amounts Reported in the Statement of Consolidated Financial Position | Other Items Included in the Statement of Consolidated Financial Position | Statement of Consolidated Financial Position Balance | |||||||||||||||||
Asset Derivatives: | ||||||||||||||||||||||||
Miscellaneous receivables | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | $ | 3 | $ | — | $ | 3 | $ | — | $ | 3 | ||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | 15 | — | 15 | — | 15 | |||||||||||||||||||
Commodity contracts | 1 | — | 1 | — | 1 | |||||||||||||||||||
Total miscellaneous receivables | 19 | — | 19 | — | 19 | $ | 755 | $ | 774 | |||||||||||||||
Other current assets | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | 1 | (39 | ) | (38 | ) | 38 | — | |||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Commodity contracts | 1 | — | 1 | — | 1 | |||||||||||||||||||
Total other current assets | 2 | (39 | ) | (37 | ) | 38 | 1 | 189 | 190 | |||||||||||||||
Other assets | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | — | (23 | ) | (23 | ) | 23 | — | |||||||||||||||||
Total other assets | — | (23 | ) | (23 | ) | 23 | — | 566 | 566 | |||||||||||||||
Total Asset Derivatives | $ | 21 | $ | (62 | ) | $ | (41 | ) | $ | 61 | $ | 20 | ||||||||||||
Liability Derivatives: | ||||||||||||||||||||||||
Other current assets | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | $ | 39 | $ | (39 | ) | $ | — | $ | — | $ | — | |||||||||||||
Total other current assets | 39 | (39 | ) | — | — | — | ||||||||||||||||||
Other assets | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | 23 | (23 | ) | — | — | — | ||||||||||||||||||
Total other assets | 23 | (23 | ) | — | — | — | ||||||||||||||||||
Miscellaneous short-term accruals | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | 3 | — | 3 | — | 3 | |||||||||||||||||||
Commodity contracts | 2 | — | 2 | — | 2 | |||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | 5 | — | 5 | — | 5 | |||||||||||||||||||
Commodity contracts | 1 | — | 1 | — | 1 | |||||||||||||||||||
Total miscellaneous short-term accruals | 11 | — | 11 | — | 11 | $ | 932 | $ | 943 | |||||||||||||||
Total Liability Derivatives | $ | 73 | $ | (62 | ) | $ | 11 | $ | — | $ | 11 | |||||||||||||
-1 | As allowed by the Derivatives and Hedging topic of the ASC, commodity derivative assets and liabilities have been offset by collateral subject to an enforceable master netting arrangement or similar arrangement. Therefore, these commodity contracts that are in an asset or liability position are included in asset accounts within the Statements of Consolidated Financial Position. | |||||||||||||||||||||||
As of Aug. 31, 2013 | ||||||||||||||||||||||||
(in millions) | Gross Amounts Recognized | Gross Amounts Offset in the Statement of Consolidated Financial Position | Net Amounts Included in the Statement of Consolidated Financial Position | Collateral Pledged | Net Amounts Reported in the Statement of Consolidated Financial Position | Other Items Included in the Statement of Consolidated Financial Position | Statement of Consolidated Financial Position Balance | |||||||||||||||||
Asset Derivatives: | ||||||||||||||||||||||||
Trade receivables, net | ||||||||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | $ | 1 | $ | (6 | ) | $ | (5 | ) | $ | 5 | $ | — | ||||||||||||
Total trade receivables, net | 1 | (6 | ) | (5 | ) | 5 | — | $ | 1,715 | $ | 1,715 | |||||||||||||
Miscellaneous receivables | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | 3 | — | 3 | — | 3 | |||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | 2 | — | 2 | — | 2 | |||||||||||||||||||
Commodity contracts | 4 | — | 4 | — | 4 | |||||||||||||||||||
Total miscellaneous receivables | 9 | — | 9 | — | 9 | 739 | 748 | |||||||||||||||||
Other current assets | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | 9 | (61 | ) | (52 | ) | 52 | — | |||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | 5 | (4 | ) | 1 | — | 1 | ||||||||||||||||||
Total other current assets | 14 | (65 | ) | (51 | ) | 52 | 1 | 165 | 166 | |||||||||||||||
Other assets | ||||||||||||||||||||||||
Derivatives designated as hedges | ||||||||||||||||||||||||
Commodity contracts(1) | — | (9 | ) | (9 | ) | 9 | — | |||||||||||||||||
Total other assets | — | (9 | ) | (9 | ) | 9 | — | 496 | 496 | |||||||||||||||
Total Asset Derivatives | $ | 24 | $ | (80 | ) | $ | (56 | ) | $ | 66 | $ | 10 | ||||||||||||
Liability Derivatives: | ||||||||||||||||||||||||
Trade receivables, net | ||||||||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | $ | 6 | $ | (6 | ) | $ | — | $ | — | $ | — | |||||||||||||
Total trade receivables, net | 6 | (6 | ) | — | — | — | ||||||||||||||||||
Other current assets | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | 61 | (61 | ) | — | — | — | ||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | 4 | (4 | ) | — | — | — | ||||||||||||||||||
Total other current assets | 65 | (65 | ) | — | — | — | ||||||||||||||||||
Other assets | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | 9 | (9 | ) | — | — | — | ||||||||||||||||||
Total other assets | 9 | (9 | ) | — | — | — | ||||||||||||||||||
Miscellaneous short-term accruals | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | 1 | — | 1 | — | 1 | |||||||||||||||||||
Commodity contracts | 4 | — | 4 | — | 4 | |||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | 7 | — | 7 | — | 7 | |||||||||||||||||||
Total miscellaneous short-term accruals | 12 | — | 12 | — | 12 | $ | 800 | $ | 812 | |||||||||||||||
Other liabilities | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Commodity contracts | 1 | — | 1 | — | 1 | |||||||||||||||||||
Total other liabilities | 1 | — | 1 | — | 1 | 381 | 382 | |||||||||||||||||
Total Liability Derivatives | $ | 93 | $ | (80 | ) | $ | 13 | $ | — | $ | 13 | |||||||||||||
Gains Losses of Derivative Instruments | ' | |||||||||||||||||||||||
The gains and losses on the company’s derivative instruments were as follows: | ||||||||||||||||||||||||
Amount of Gain (Loss) | Amount of Gain (Loss) | |||||||||||||||||||||||
Recognized in AOCI(1) (Effective | Recognized in Income(2) | |||||||||||||||||||||||
Portion) | ||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Statement of Consolidated Operations Classification | ||||||||||||||||||||||
(Dollars in millions) | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2012 | ||||||||||||||||||||
Derivatives Designated as Hedges: | ||||||||||||||||||||||||
Fair value hedges: | ||||||||||||||||||||||||
Commodity contracts(3) | $ | (2 | ) | $ | 6 | Cost of goods sold | ||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||
Foreign currency contracts | $ | (2 | ) | $ | (1 | ) | (2 | ) | (2 | ) | Net sales | |||||||||||||
Foreign currency contracts | (3 | ) | (4 | ) | — | 3 | Cost of goods sold | |||||||||||||||||
Commodity contracts(4) | (61 | ) | (13 | ) | (3 | ) | 17 | Cost of goods sold | ||||||||||||||||
Interest rate contracts(5) | (2 | ) | — | (3 | ) | (3 | ) | Interest expense | ||||||||||||||||
Total Derivatives Designated as Hedges | (68 | ) | (18 | ) | (10 | ) | 21 | |||||||||||||||||
Derivatives Not Designated as Hedges: | ||||||||||||||||||||||||
Foreign currency contracts(6) | 22 | 31 | Other expense, net | |||||||||||||||||||||
Commodity contracts | 2 | 5 | Net sales | |||||||||||||||||||||
Commodity contracts | 5 | 4 | Cost of goods sold | |||||||||||||||||||||
Total Derivatives Not Designated as Hedges | 29 | 40 | ||||||||||||||||||||||
Total Derivatives | $ | (68 | ) | $ | (18 | ) | $ | 19 | $ | 61 | ||||||||||||||
-1 | Accumulated other comprehensive income (loss) (AOCI). | |||||||||||||||||||||||
-2 | For derivatives designated as cash flow hedges under the Derivatives and Hedging topic of the ASC, this represents the effective portion of the gain (loss) reclassified from AOCI into income during the period. | |||||||||||||||||||||||
-3 | Loss and gain on fair value hedges includes a loss of $1 million and a loss of less than $1 million from ineffectiveness during the three months ended Nov. 30, 2013, and Nov. 30, 2012, respectively. | |||||||||||||||||||||||
-4 | Loss and gain on commodity cash flow hedges includes a loss of $1 million and a loss of less than $1 million from ineffectiveness for the three months ended Nov. 30, 2013, and Nov. 30, 2012, respectively. No gains or losses were excluded from the assessment of hedge effectiveness during the three months ended Nov. 30, 2013, and Nov. 30, 2012. | |||||||||||||||||||||||
-5 | Loss on interest rate cash flow hedges includes a loss of less than $1 million from ineffectiveness for the three months ended Nov. 30, 2013. | |||||||||||||||||||||||
-6 | Gain on foreign currency contracts not designated as hedges is offset by a foreign currency transaction loss of $41 million and $48 million during the three months ended Nov. 30, 2013, and Nov. 30, 2012, respectively. |
POSTRETIREMENT_BENEFITS_PENSIO1
POSTRETIREMENT BENEFITS - PENSIONS, HEALTH CARE AND OTHER (Tables) | 3 Months Ended | |||||||||||||||||||||||
Nov. 30, 2013 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Components of Net Periodic Benefit Cost | ' | |||||||||||||||||||||||
The company’s net periodic benefit cost for pension benefits and health care and other postretirement benefits include the following components: | ||||||||||||||||||||||||
Three Months Ended Nov. 30, 2013 | Three Months Ended Nov. 30, 2012 | |||||||||||||||||||||||
Pension Benefits | U.S. | Outside the | Total | U.S. | Outside the | Total | ||||||||||||||||||
(Dollars in millions) | U.S. | U.S. | ||||||||||||||||||||||
Service Cost for Benefits Earned During the Period | $ | 15 | $ | 3 | $ | 18 | $ | 20 | $ | 3 | $ | 23 | ||||||||||||
Interest Cost on Benefit Obligation | 23 | 2 | 25 | 22 | 2 | 24 | ||||||||||||||||||
Assumed Return on Plan Assets | (35 | ) | (2 | ) | (37 | ) | (40 | ) | (2 | ) | (42 | ) | ||||||||||||
Amortization of Unrecognized Net Loss | 16 | 1 | 17 | 21 | 1 | 22 | ||||||||||||||||||
Curtailment and Settlement Charge | — | 1 | 1 | — | 1 | 1 | ||||||||||||||||||
Total Net Periodic Benefit Cost | $ | 19 | $ | 5 | $ | 24 | $ | 23 | $ | 5 | $ | 28 | ||||||||||||
Net Periodic Cost Postretirement | ' | |||||||||||||||||||||||
Health Care and Other Postretirement Benefits | Three Months Ended | |||||||||||||||||||||||
(Dollars in millions) | Nov. 30, 2013 | Nov. 30, 2012 | ||||||||||||||||||||||
Service Cost for Benefits Earned During the Period | $ | 3 | $ | 5 | ||||||||||||||||||||
Interest Cost on Benefit Obligation | 3 | 3 | ||||||||||||||||||||||
Amortization of Unrecognized Net Gain | (4 | ) | (3 | ) | ||||||||||||||||||||
Total Net Periodic Benefit Cost | $ | 2 | $ | 5 | ||||||||||||||||||||
STOCK_BASED_COMPENSATION_PLANS1
STOCK BASED COMPENSATION PLANS (Tables) | 3 Months Ended | |||||||||||||||
Nov. 30, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Components of Stock Based Compensation | ' | |||||||||||||||
The following table shows total stock-based compensation expense included in the Statements of Consolidated Operations for the three months ended Nov. 30, 2013, and Nov. 30, 2012. Stock-based compensation cost capitalized in inventory was $3 million and $3 million as of Nov. 30, 2013, and Aug. 31, 2013, respectively. | ||||||||||||||||
Three Months Ended | ||||||||||||||||
(Dollars in millions) | Nov. 30, 2013 | Nov. 30, 2012 | ||||||||||||||
Cost of Goods Sold | $ | 2 | $ | 4 | ||||||||||||
Selling, General and Administrative Expenses | 20 | 15 | ||||||||||||||
Research and Development Expenses | 5 | 5 | ||||||||||||||
Pre-Tax Stock-Based Compensation Expense | 27 | 24 | ||||||||||||||
Income Tax Benefit | (9 | ) | (8 | ) | ||||||||||||
Net Stock-Based Compensation Expense | $ | 18 | $ | 16 | ||||||||||||
Restricted Stock | ' | |||||||||||||||
The following table summarizes stock-based compensation activity for and as of the three months ended Nov. 30, 2013, for employees under the Monsanto Company 2005 Long-Term Incentive Plan, as amended and restated effective Jan. 24, 2012; for employees under the Climate Corporation 2006 Stock Plan, as amended on Oct. 30, 2013, collectively defined as Monsanto Stock Plans; and for directors under the Monsanto Non-Employee Director Equity Incentive Compensation Plan (Director Plan): | ||||||||||||||||
Monsanto Stock Plans | Director Plan | |||||||||||||||
Stock | Restricted | Deferred | Restricted | |||||||||||||
Options | Stock Units | Stock | Stock | |||||||||||||
Granted | 2,264,046 | 826,959 | 18,520 | 2,554 | ||||||||||||
Weighted-average grant date fair value per share | $ | 38.44 | $ | 101.08 | $ | 97.89 | $ | 97.89 | ||||||||
Pre-tax unrecognized compensation expense, net of estimated forfeitures as applicable in millions | $ | 105.1 | $ | 120.9 | $ | 1.4 | $ | 0.2 | ||||||||
Remaining weighted-average period of expense recognition/requisite service periods in years | 3 | 3 | 1 | 1 | ||||||||||||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended | |||||||||||||||
Nov. 30, 2013 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | ' | |||||||||||||||
The following table provides additional information regarding items reclassified out of accumulated other comprehensive loss into earnings during the three months ended Nov. 30, 2013: | ||||||||||||||||
Details about Accumulated Other Comprehensive Loss components | Amount Reclassified from Accumulated Other Comprehensive Loss | Affected Line Item in the Statement of Consolidated Operations | ||||||||||||||
Cash Flow Hedges: | ||||||||||||||||
Foreign Exchange Contracts Net Loss | $ | 2 | Net sales | |||||||||||||
Commodity Contracts Net Loss | 3 | Cost of goods sold | ||||||||||||||
Interest Rate Contracts Net Loss | 3 | Interest expense | ||||||||||||||
8 | Total before income taxes | |||||||||||||||
(3 | ) | Income tax provision | ||||||||||||||
$ | 5 | Net of tax | ||||||||||||||
Postretirement Benefit Items: | ||||||||||||||||
Amortization of Unrecognized Net Loss | $ | 3 | Inventory / Cost of goods sold(1) | |||||||||||||
Amortization of Unrecognized Net Loss | 10 | Selling and administrative expenses | ||||||||||||||
13 | Total before income taxes | |||||||||||||||
(5 | ) | Income tax provision | ||||||||||||||
$ | 8 | Net of tax | ||||||||||||||
Total Reclassifications For The Period | $ | 13 | Net of tax | |||||||||||||
-1 | The amortization of unrecognized net loss is recorded to net periodic benefit cost, which is allocated to selling, general and administrative expenses and to inventory, which is recognized through cost of goods sold. The company recorded $3 million of net periodic benefit cost to inventory, of which approximately $1 million was recognized in cost of goods sold during the three months ended Nov. 30, 2013. See Note 15 - Postretirement Benefits - Pensions, Health Care and Other - for additional information. | |||||||||||||||
Components of Accumulated Other Comprehensive Income | ' | |||||||||||||||
The following table sets forth the after-tax components of accumulated other comprehensive loss and changes thereto recorded during the three months ended Nov. 30, 2013: | ||||||||||||||||
(Dollars in millions) | Foreign Currency Translation Adjustments | Net Unrealized Gain on Available for Sale Securities | Cash Flow Hedges | Postretirement Benefit Items | Total Accumulated Other Comprehensive Loss | |||||||||||
Balance as of Aug. 31, 2013 | $ | (831 | ) | $ | 8 | $ | (115 | ) | $ | (340 | ) | $ | (1,278 | ) | ||
Other comprehensive income (loss) before reclassifications | 127 | 5 | (43 | ) | — | 89 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | — | 5 | 8 | 13 | |||||||||||
Net current-period other comprehensive income (loss) | 127 | 5 | (38 | ) | 8 | 102 | ||||||||||
Balance as of Nov. 30, 2013 | $ | (704 | ) | $ | 13 | $ | (153 | ) | $ | (332 | ) | $ | (1,176 | ) | ||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 3 Months Ended | |||||
Nov. 30, 2013 | ||||||
Earnings Per Share [Abstract] | ' | |||||
Basic Earnings Per Share Table | ' | |||||
Three Months Ended | ||||||
(Shares in millions) | Nov. 30, 2013 | Nov. 30, 2012 | ||||
Weighted-Average Number of Common Shares | 526.9 | 534.8 | ||||
Dilutive Potential Common Shares | 5.7 | 5.6 | ||||
Antidilutive Potential Common Shares | 1.8 | 4.2 | ||||
Shares Excluded From Computation of Dilutive Potential Shares with Exercise Prices greater than the Average Market Price of Common Shares for the Period | 0.1 | 4.1 | ||||
SUPPLEMENTAL_CASH_FLOW_INFORMA1
SUPPLEMENTAL CASH FLOW INFORMATION SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 3 Months Ended | |||||||
Nov. 30, 2013 | ||||||||
Supplemental Cash Flow Information [Abstract] | ' | |||||||
Cash Payments For Interest And Taxes | ' | |||||||
Cash payments for interest and taxes were as follows: | ||||||||
Three Months Ended | ||||||||
(Dollars in millions) | Nov. 30, 2013 | Nov. 30, 2012 | ||||||
Interest | $ | 42 | $ | 49 | ||||
Taxes | 102 | 147 | ||||||
SEGMENT_AND_GEOGRAPHIC_DATA_Ta
SEGMENT AND GEOGRAPHIC DATA (Tables) | 3 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Operating Segment Information | ' | ||||||||
Data for the Seeds and Genomics and Agricultural Productivity reportable segments, as well as for Monsanto’s significant operating segments, is presented in the table that follows: | |||||||||
Three Months Ended | |||||||||
(Dollars in millions) | Nov. 30, 2013 | Nov. 30, 2012 | |||||||
Net Sales(1) | |||||||||
Corn seed and traits | $ | 1,054 | $ | 1,139 | |||||
Soybean seed and traits | 267 | 231 | |||||||
Cotton seed and traits | 137 | 185 | |||||||
Vegetable seeds | 157 | 156 | |||||||
All other crops seeds and traits | 61 | 44 | |||||||
Total Seeds and Genomics | $ | 1,676 | $ | 1,755 | |||||
Agricultural productivity | 1,467 | 1,184 | |||||||
Total Agricultural Productivity | $ | 1,467 | $ | 1,184 | |||||
Total | $ | 3,143 | $ | 2,939 | |||||
Gross Profit | |||||||||
Corn seed and traits | $ | 650 | $ | 686 | |||||
Soybean seed and traits | 168 | 118 | |||||||
Cotton seed and traits | 92 | 127 | |||||||
Vegetable seeds | 68 | 83 | |||||||
All other crops seeds and traits | 27 | 11 | |||||||
Total Seeds and Genomics | $ | 1,005 | $ | 1,025 | |||||
Agricultural productivity | 558 | 372 | |||||||
Total Agricultural Productivity | $ | 558 | $ | 372 | |||||
Total | $ | 1,563 | $ | 1,397 | |||||
EBIT(2)(3) | |||||||||
Seeds and Genomics | $ | 104 | $ | 220 | |||||
Agricultural Productivity | 450 | 270 | |||||||
Total | $ | 554 | $ | 490 | |||||
Depreciation and Amortization Expense | |||||||||
Seeds and Genomics | $ | 131 | $ | 123 | |||||
Agricultural Productivity | 31 | 29 | |||||||
Total | $ | 162 | $ | 152 | |||||
-1 | Represents net sales from continuing operations. | ||||||||
-2 | EBIT is defined as earnings before interest and taxes; see the following table for reconciliation. Earnings is intended to mean net income as presented in the Statements of Consolidated Operations under generally accepted accounting principles. EBIT is an operating performance measure for the two reportable segments. | ||||||||
-3 | Agricultural Productivity EBIT includes income from operations of discontinued businesses of $14 million and $11 million for the three months ended Nov. 30, 2013, and Nov. 30, 2012 | ||||||||
The reconciliation of EBIT to Net Income | ' | ||||||||
A reconciliation of EBIT to net income for each period follows: | |||||||||
Three Months Ended | |||||||||
(Dollars in millions) | Nov. 30, 2013 | Nov. 30, 2012 | |||||||
EBIT(1) | $ | 554 | $ | 490 | |||||
Interest Expense — Net | 29 | 28 | |||||||
Income Tax Provision(2) | 157 | 123 | |||||||
Net Income Attributable to Monsanto Company | $ | 368 | $ | 339 | |||||
-1 | Includes the income from operations of discontinued businesses and pre-tax noncontrolling interests. | ||||||||
-2 | Includes the income tax benefit on noncontrolling interest and the income tax provision on discontinued operations. |
BACKGROUND_AND_BASIS_OF_PRESEN1
BACKGROUND AND BASIS OF PRESENTATION BACKGROUND AND BASIS OF PRESENTATION (Details) | 3 Months Ended |
Nov. 30, 2013 | |
segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Number of Operating Segments | 2 |
BUSINESS_COMBINATIONS_Details
BUSINESS COMBINATIONS (Details) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | ||||||||
In Millions, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Aug. 31, 2013 | Nov. 30, 2013 | Nov. 29, 2013 | Nov. 30, 2013 | Aug. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jan. 31, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 |
The Climate Corporation [Member] | The Climate Corporation [Member] | Twenty Fourteen Acquisitions [Member] | Diekmann GMBH & Co. KG [Member] | GrassRoots Biotechnology, Inc. [Member] | Rosetta Green Ltd. [Member] | Agradis, Inc. [Member] | Acquired Biotechnology [Member] | Customer Relationships [Member] | Other Intangible Assets [Member] | ||||
Twenty Fourteen Acquisitions [Member] | Twenty Fourteen Acquisitions [Member] | Twenty Fourteen Acquisitions [Member] | |||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquiree percentage | ' | ' | ' | ' | 100.00% | ' | ' | 100.00% | ' | ' | ' | ' | ' |
Transaction cost | ' | ' | ' | $17 | $1 | ' | $1 | $1 | $1 | $1 | ' | ' | ' |
Business Acquisition, Cost of Acquired Entity, Cash Paid | ' | ' | ' | 932 | ' | ' | 30 | ' | 35 | 85 | ' | ' | ' |
Payments to Acquire Businesses, Net of Cash Acquired | 917 | 0 | ' | 917 | ' | 917 | ' | 15 | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | ' | ' | ' | ' | ' | 59 | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | ' | ' | ' | ' | ' | 9 | ' | ' | ' | ' | ' | ' | ' |
Goodwill | 4,325 | ' | 3,520 | ' | ' | 785 | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | ' | ' | ' | ' | ' | 145 | ' | ' | ' | ' | 141 | 4 | 145 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | ' | ' | ' | ' | ' | 998 | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | ' | ' | ' | ' | ' | 10 | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | ' | ' | ' | ' | ' | 56 | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | ' | ' | ' | ' | ' | 66 | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | ' | ' | ' | ' | ' | 932 | ' | ' | ' | ' | ' | ' | ' |
Cash Acquired from Acquisition | ' | ' | ' | ' | ' | 15 | ' | ' | ' | ' | ' | ' | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | '1 year | ' |
Finite-Lived Intangible Asset, Useful Life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | '1 year | ' |
Fair Value of Acquisition | ' | ' | ' | ' | $932 | ' | $30 | $15 | $35 | $85 | ' | ' | ' |
CUSTOMER_FINANCING_PROGRAMS_De
CUSTOMER FINANCING PROGRAMS (Details) (USD $) | 3 Months Ended | |||||
In Millions, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Aug. 31, 2013 | |||
US agreement to sell trade receivables [Member] | ' | ' | ' | |||
Customer Financing Programs [Line Items] | ' | ' | ' | |||
Outstanding balance | $128 | [1] | ' | $348 | [1] | |
Maximum future payout under recourse provisions | 9 | [1] | ' | 19 | [1] | |
Transactions that Qualify for Sales Treatment | 23 | [1] | 2 | [1] | ' | |
Maximum Amount of Potential Sales of Receivables | 500 | ' | ' | |||
Other agreements to sell trade receivables [Member] | ' | ' | ' | |||
Customer Financing Programs [Line Items] | ' | ' | ' | |||
Outstanding balance | 28 | [2] | ' | 44 | [2] | |
Maximum future payout under recourse provisions | 28 | [2] | ' | 41 | [2] | |
Transactions that Qualify for Sales Treatment | 7 | [2] | 0 | [2] | ' | |
Agreements With Lenders [Member] | ' | ' | ' | |||
Customer Financing Programs [Line Items] | ' | ' | ' | |||
Outstanding balance | 60 | [3] | ' | 45 | [3] | |
Maximum future payout under recourse provisions | 44 | [3] | ' | 32 | [3] | |
Brazil Revolving Financing Program [Member] | ' | ' | ' | |||
Customer Financing Programs [Line Items] | ' | ' | ' | |||
Maximum Amount of Potential Sales of Receivables | $430 | ' | ' | |||
[1] | Monsanto has an agreement in the United States to sell trade receivables up to a maximum outstanding balance of $500 million and to service such accounts. These receivables qualify for sales treatment under the Transfers and Servicing topic of the ASC and, accordingly, the proceeds are included in net cash provided by operating activities in the Statements of Consolidated Cash Flows. The agreement includes recourse provisions and thus a liability is established at the time of sale that approximates fair value based upon the company’s historical collection experience and a current assessment of credit exposure. | |||||
[2] | Monsanto has various agreements in European and Latin American countries to sell trade receivables, both with and without recourse. The sales within these programs qualify for sales treatment under the Transfers and Servicing topic of the ASC and, accordingly, the proceeds are included in net cash provided by operating activities in the Statements of Consolidated Cash Flows. The liability for the guarantees for sales with recourse is recorded at an amount that approximates fair value, based on the company’s historical collection experience for the customers associated with the sale of the receivables and a current assessment of credit exposure. | |||||
[3] | Monsanto has additional agreements with lenders to establish programs that provide financing for select customers in the United States, Brazil, Latin America and Europe. Monsanto provides various levels of recourse through guarantees of the accounts in the event of customer default. The term of the guarantee is equivalent to the term of the customer loans. The liability for the guarantees is recorded at an amount that approximates fair value, based on the company’s historical collection experience with customers that participate in the program and a current assessment of credit exposure. If performance is required under the guarantee, Monsanto may retain amounts that are subsequently collected from customers. |
VARIABLE_INTEREST_ENTITIES_Nar
VARIABLE INTEREST ENTITIES Narrative (Details) | 3 Months Ended | 12 Months Ended |
Nov. 30, 2013 | Aug. 31, 2013 | |
Revolving Financing Programs [Line Items] | ' | ' |
Variable Interest Entity, Financial or Other Support, Percentage | 9.00% | ' |
Senior Interest [Member] | ' | ' |
Revolving Financing Programs [Line Items] | ' | ' |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 91.00% | 91.00% |
Monsanto Interest [Member] | ' | ' |
Revolving Financing Programs [Line Items] | ' | ' |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 9.00% | 9.00% |
VARIABLE_INTEREST_ENTITIES_VAR
VARIABLE INTEREST ENTITIES VARIABLE INTEREST ENTITIES Schedules (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Nov. 30, 2013 | Aug. 31, 2013 | |
Variable Interest Entity [Line Items] | ' | ' |
Cash and cash equivalents | 31,000,000 | 140,000,000 |
Trade receivables, net | 116,000,000 | 0 |
Biotechnology Company [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Maximum Exposure to Loss | 11,000,000 | ' |
Variable Interest Entity, Qualitative or Quantitative Information, Maximum Future Ownership Percentage | 35.00% | ' |
Variable Interest Entity, Financial or Other Support, Maximum Commitment Amount | 16,000,000 | ' |
Variable Interest Entity, Financial or Other Support, Number of Funding Phases | 3 | ' |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage from Call Option | 100.00% | ' |
Variable Interest Entity, Call Option Total Aggregate Payments | 15,000,000 | ' |
Variable Interest Entity, Call Option Consideration Paid | 7,000,000 | ' |
Brazil Revolving Financing Program [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Cash and cash equivalents | 31,000,000 | 140,000,000 |
Trade receivables, net | 116,000,000 | 0 |
Total Assets | 147,000,000 | 140,000,000 |
Total Liabilities | 0 | 0 |
Maximum Exposure to Loss | 14,000,000 | 0 |
Maximum [Member] | Biotechnology Company [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 4.00% | 1.00% |
RECEIVABLES_Details
RECEIVABLES (Details) (USD $) | Nov. 30, 2013 | Aug. 31, 2013 | Aug. 31, 2012 | ||
In Millions, unless otherwise specified | |||||
Allowance For Doubtful Accounts Current [Abstract] | ' | ' | ' | ||
Net allowances | $70 | $68 | ' | ||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ' | ' | ' | ||
Beginning Balance | 112 | 104 | 141 | ||
Incremental Provision | 4 | 7 | ' | ||
Recoveries | 0 | -1 | ' | ||
Write-offs | -1 | -47 | ' | ||
Other | 5 | [1] | 4 | [1] | ' |
Ending Balance | 112 | 104 | 141 | ||
Long Term Receivables [Abstract] | ' | ' | ' | ||
Long term customer receivables, gross | 131 | 112 | ' | ||
Long term contractual receivables, gross | $134 | $229 | ' | ||
[1] | Includes reclassifications from current receivables and foreign currency translation adjustments. |
INVENTORY_Details
INVENTORY (Details) (USD $) | Nov. 30, 2013 | Aug. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Finished Goods | $1,820 | $1,079 |
Goods In Process | 1,744 | 1,619 |
Raw Materials and Supplies | 477 | 418 |
Inventory at FIFO Cost | 4,041 | 3,116 |
Excess of FIFO over LIFO Cost | -168 | -169 |
Total | $3,873 | $2,947 |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS Schedule of net carrying amount of goodwill (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Nov. 30, 2013 |
Goodwill [Roll Forward] | ' |
Balance | $3,520 |
Acquisition activity (see Note 3) | 785 |
Effect of foreign currency translation adjustments | 20 |
Balance | 4,325 |
Seeds And Genomics [Member] | ' |
Goodwill [Roll Forward] | ' |
Balance | 3,461 |
Acquisition activity (see Note 3) | 785 |
Effect of foreign currency translation adjustments | 21 |
Balance | 4,267 |
Agricultural Productivity [Member] | ' |
Goodwill [Roll Forward] | ' |
Balance | 59 |
Acquisition activity (see Note 3) | 0 |
Effect of foreign currency translation adjustments | -1 |
Balance | $58 |
GOODWILL_AND_OTHER_INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL AND OTHER INTANGIBLE ASSETS Information of other intangible assets (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Aug. 31, 2013 |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Carrying Amount | $3,206 | ' | $3,032 |
Accumulated Amortization | -1,943 | ' | -1,909 |
Net | 1,263 | ' | 1,123 |
Total Other Intangible Assets, Carrying Amount | 3,310 | ' | 3,135 |
Total Other Intangible Assets, net | 1,367 | ' | 1,226 |
Amortization expense | 27 | 28 | ' |
Acquired Intellectual Property [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Carrying Amount | 1,259 | ' | 1,095 |
Accumulated Amortization | -799 | ' | -791 |
Net | 460 | ' | 304 |
Acquired Germplasm [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Carrying Amount | 1,120 | ' | 1,113 |
Accumulated Amortization | -728 | ' | -717 |
Net | 392 | ' | 396 |
Trademarks [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Carrying Amount | 343 | ' | 341 |
Accumulated Amortization | -135 | ' | -131 |
Net | 208 | ' | 210 |
Customer Relationships [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Carrying Amount | 314 | ' | 306 |
Accumulated Amortization | -186 | ' | -179 |
Net | 128 | ' | 127 |
Other Intangible Assets [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Carrying Amount | 170 | ' | 177 |
Accumulated Amortization | -95 | ' | -91 |
Net | 75 | ' | 86 |
In Process Research and Development [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
In Process Research & Development, Indefinite Lives | $104 | ' | $103 |
GOODWILL_AND_OTHER_INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL AND OTHER INTANGIBLE ASSETS Schedule of estimated amortization expense (Details) (USD $) | Nov. 30, 2013 |
In Millions, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
2014 | $173 |
2015 | 171 |
2016 | 123 |
2017 | 97 |
2018 | $87 |
INVESTMENTS_Investments_Detail
INVESTMENTS Investments (Details) (USD $) | 3 Months Ended | ||
Nov. 30, 2013 | Nov. 30, 2012 | Aug. 31, 2013 | |
Schedule of Investments and Equity Affiliates [Line Items] | ' | ' | ' |
Short-term investments | $249,000,000 | ' | $254,000,000 |
Fair Value | 43,000,000 | ' | 22,000,000 |
Available-for-sale Securities [Member] | ' | ' | ' |
Schedule of Investments and Equity Affiliates [Line Items] | ' | ' | ' |
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities | 0 | 0 | ' |
Fair Value | 43,000,000 | ' | 22,000,000 |
Cost-method Investments [Member] | ' | ' | ' |
Schedule of Investments and Equity Affiliates [Line Items] | ' | ' | ' |
Recorded cost | 68,000,000 | ' | 67,000,000 |
Cost-method Investments, Other than Temporary Impairment | $0 | $0 | ' |
DEFERRED_REVENUE_Details
DEFERRED REVENUE (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Aug. 31, 2013 | Nov. 30, 2008 |
Deferred Revenue Arrangement [Line Items] | ' | ' | ' | ' |
Short-Term Deferred Revenue | $2,866 | ' | $517 | ' |
Receivable Balance | 153 | ' | 237 | ' |
Accounts Receivable, Net, Current | 2,283 | ' | 1,715 | ' |
Deferred Revenue | 113 | ' | 138 | ' |
Interest income | 24 | 23 | ' | ' |
Pioneer Agreement [Member] | ' | ' | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' | ' | ' |
Short-Term Deferred Revenue | 79 | 79 | ' | ' |
Total Receivable Under Agreement | ' | ' | ' | 635 |
Cumulative Cash Receipts Under Agreement | 725 | ' | ' | ' |
Deferred Revenue, Revenue Recognized | 20 | 20 | ' | ' |
Receivable Balance | 168 | ' | 230 | ' |
Accounts Receivable, Net, Current | 85 | 85 | ' | ' |
Total Deferred Revenue | 139 | ' | 159 | 635 |
Interest income | 1 | 2 | ' | ' |
Deferred Revenue, Length of Time | '8 years | ' | ' | ' |
Syngenta Agreement [Member] | ' | ' | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' | ' | ' |
Short-Term Deferred Revenue | 24 | 24 | ' | ' |
Deferred Revenue, Revenue Recognized | 3 | 4 | ' | ' |
Receivable Balance | 37 | ' | 58 | ' |
Deferred Revenue | 31 | ' | 34 | ' |
Minimum Obligation Under Agreement | $81 | ' | ' | ' |
Deferred Revenue, Length of Time | '9 years | ' | ' | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Nov. 30, 2013 |
Income Tax Disclosure [Abstract] | ' |
Other Tax Benefit | $22 |
DEBT_AND_OTHER_CREDIT_ARRANGEM1
DEBT AND OTHER CREDIT ARRANGEMENTS (Details) (USD $) | Nov. 30, 2013 | Aug. 31, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Jul. 31, 2012 | Jul. 31, 2012 | Nov. 30, 2013 | Nov. 30, 2013 | ||
Floating Rate Notes Due Twenty Sixteen [Member] | Senior Notes Due Twenty Eighteen [Member] | Senior Notes Due Twenty Forty Three [Member] | Senior Notes Due 2022 [Member] | Senior Notes Due 2042 [Member] | Credit Facility Agreement 2011 [Member] | Commercial Paper [Member] | |||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Face Amount | ' | ' | $400,000,000 | $300,000,000 | $300,000,000 | $250,000,000 | $250,000,000 | $2,000,000,000 | ' | ||
Interest Rate | ' | ' | ' | 1.85% | 4.65% | 2.20% | 3.60% | ' | ' | ||
Maturity Date | ' | ' | 7-Nov-16 | 15-Nov-18 | 15-Nov-43 | 15-Jul-22 | 15-Jul-42 | ' | ' | ||
Short-term debt, including current portion of long-term debt | 262,000,000 | 51,000,000 | ' | ' | ' | ' | ' | ' | 195,000,000 | ||
Long-term Debt, Fair Value | $3,216,000,000 | [1] | $2,231,000,000 | [1] | ' | ' | ' | ' | ' | ' | ' |
[1] | Short-term and long-term debt instruments are not recorded at fair value on a recurring basis; however, they are measured at fair value for disclosure purposes, as required by the Fair Value Measurements and Disclosures topic of the ASC. |
FAIR_VALUE_MEASUREMENTS_FAIR_V
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS Fair Value Hierarchy Levels (Details) (USD $) | Nov. 30, 2013 | Aug. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Cash equivalents | $3,762 | $2,865 | ||
Short-term investments | 249 | 254 | ||
Equity securities | 43 | 22 | ||
Foreign currency contracts | 18 | 5 | ||
Commodity contracts | 3 | 19 | ||
Total Assets at Fair Value | 4,075 | 3,165 | ||
Contingent consideration | ' | 40 | ||
Foreign currency contracts | 8 | 8 | ||
Commodity contracts | 65 | 85 | ||
Total Liabilities at Fair Value | 73 | 133 | ||
Short-term Debt, Fair Value | 262 | [1] | 51 | [1] |
Long-term Debt, Fair Value | 3,216 | [1] | 2,231 | [1] |
Total Liabilities Not Recorded at Fair Value | 3,478 | 2,282 | ||
Total Liabilities Recorded and Not Recorded at Fair Value | 3,551 | 2,415 | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 | ||
Liabilities, Fair Value Disclosure, Nonrecurring | 0 | 0 | ||
Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Cash equivalents | 3,762 | 2,865 | ||
Short-term investments | 249 | 254 | ||
Equity securities | 43 | 22 | ||
Foreign currency contracts | 0 | 0 | ||
Commodity contracts | 1 | 13 | ||
Total Assets at Fair Value | 4,055 | 3,154 | ||
Contingent consideration | ' | 0 | ||
Foreign currency contracts | 0 | 0 | ||
Commodity contracts | 61 | 73 | ||
Total Liabilities at Fair Value | 61 | 73 | ||
Short-term Debt, Fair Value | 0 | [1] | 0 | [1] |
Long-term Debt, Fair Value | 0 | [1] | 0 | [1] |
Total Liabilities Not Recorded at Fair Value | 0 | 0 | ||
Total Liabilities Recorded and Not Recorded at Fair Value | 61 | 73 | ||
Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Cash equivalents | 0 | 0 | ||
Short-term investments | 0 | 0 | ||
Equity securities | 0 | 0 | ||
Foreign currency contracts | 18 | 5 | ||
Commodity contracts | 2 | 6 | ||
Total Assets at Fair Value | 20 | 11 | ||
Contingent consideration | ' | 0 | ||
Foreign currency contracts | 8 | 8 | ||
Commodity contracts | 4 | 12 | ||
Total Liabilities at Fair Value | 12 | 20 | ||
Short-term Debt, Fair Value | 262 | [1] | 51 | [1] |
Long-term Debt, Fair Value | 3,216 | [1] | 2,231 | [1] |
Total Liabilities Not Recorded at Fair Value | 3,478 | 2,282 | ||
Total Liabilities Recorded and Not Recorded at Fair Value | 3,490 | 2,302 | ||
Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Cash equivalents | 0 | 0 | ||
Short-term investments | 0 | 0 | ||
Equity securities | 0 | 0 | ||
Foreign currency contracts | 0 | 0 | ||
Commodity contracts | 0 | 0 | ||
Total Assets at Fair Value | 0 | 0 | ||
Contingent consideration | ' | 40 | ||
Foreign currency contracts | 0 | 0 | ||
Commodity contracts | 0 | 0 | ||
Total Liabilities at Fair Value | 0 | 40 | ||
Short-term Debt, Fair Value | 0 | [1] | 0 | [1] |
Long-term Debt, Fair Value | 0 | [1] | 0 | [1] |
Total Liabilities Not Recorded at Fair Value | 0 | 0 | ||
Total Liabilities Recorded and Not Recorded at Fair Value | $0 | $40 | ||
[1] | Short-term and long-term debt instruments are not recorded at fair value on a recurring basis; however, they are measured at fair value for disclosure purposes, as required by the Fair Value Measurements and Disclosures topic of the ASC. |
FAIR_VALUE_MEASUREMENTS_Summar
FAIR VALUE MEASUREMENTS Summary of the Change in Level 3 Liability (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Nov. 30, 2013 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' |
Beginning Balance | $40 |
Settlement | -40 |
Ending Balance | $0 |
FINANCIAL_INSTRUMENTS_Narrativ
FINANCIAL INSTRUMENTS Narrative (Details) (USD $) | 3 Months Ended | 3 Months Ended | |||
In Millions, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2013 | Aug. 31, 2013 | Nov. 30, 2013 | Nov. 30, 2013 |
subject to master netting arrangement, or similar agreement [Member] | subject to master netting arrangement, or similar agreement [Member] | Foreign Exchange Contract [Member] | Commodity Contracts | ||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' |
Maximum Length of Time Hedged in Cash Flow Hedge | ' | ' | ' | '21 months | '42 months |
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | ($34) | ' | ' | ' | ' |
Derivative, Net Liability Position, Aggregate Fair Value | ' | $4 | $7 | ' | ' |
FINANCIAL_INSTRUMENTS_FINANCIA
FINANCIAL INSTRUMENTS FINANCIAL INSTRUMENTS Notional Amounts of Derivative Instruments Outstanding (Details) (USD $) | Nov. 30, 2013 | Aug. 31, 2013 |
In Millions, unless otherwise specified | ||
Designated as Hedging Instrument | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total Derivatives | $1,231 | $1,133 |
Not Designated as Hedging Instrument | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total Derivatives | 1,918 | 1,405 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total Derivatives | 315 | 261 |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total Derivatives | 1,667 | 1,188 |
Commodity Contracts | Designated as Hedging Instrument | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total Derivatives | 916 | 872 |
Commodity Contracts | Not Designated as Hedging Instrument | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total Derivatives | 113 | 217 |
Interest Rate Contracts [Member] | Not Designated as Hedging Instrument | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total Derivatives | $138 | $0 |
FINANCIAL_INSTRUMENTS_FINANCIA1
FINANCIAL INSTRUMENTS FINANCIAL INSTRUMENTS Fair Value of Derivatives Outstanding (Details) (USD $) | Nov. 30, 2013 | Aug. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | $21 | $24 | ||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | -62 | -80 | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral | -41 | -56 | ||
Derivative Asset, Fair Value of Collateral | 61 | 66 | ||
Derivative Asset | 20 | 10 | ||
Accounts Receivable, Net, Current | 2,283 | 1,715 | ||
Miscellaneous receivables | 774 | 748 | ||
Other Assets, Current | 190 | 166 | ||
Other Assets, Noncurrent | 566 | 496 | ||
Derivative Liability, Fair Value, Gross Liability | 73 | 93 | ||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | -62 | -80 | ||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 11 | 13 | ||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||
Derivative Liability | 11 | 13 | ||
Miscellaneous short-term accruals | 943 | 812 | ||
Other Liabilities, Noncurrent | 392 | 382 | ||
Trade Accounts Receivable [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | ' | 1 | ||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | ' | -6 | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral | ' | -5 | ||
Derivative Asset, Fair Value of Collateral | ' | 5 | ||
Derivative Asset | ' | 0 | ||
Non-derivative Balances | ' | 1,715 | ||
Derivative Liability, Fair Value, Gross Liability | ' | 6 | ||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | ' | -6 | ||
Derivative Liability, Fair Value, Amount Offset Against Collateral | ' | 0 | ||
Derivative Liability, Fair Value of Collateral | ' | 0 | ||
Derivative Liability | ' | 0 | ||
Miscellaneous receivables | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 19 | 9 | ||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | 0 | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 19 | 9 | ||
Derivative Asset, Fair Value of Collateral | 0 | 0 | ||
Derivative Asset | 19 | 9 | ||
Non-derivative Balances | 755 | 739 | ||
Other Assets | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | ||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | -23 | -9 | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral | -23 | -9 | ||
Derivative Asset, Fair Value of Collateral | 23 | 9 | ||
Derivative Asset | 0 | 0 | ||
Non-derivative Balances | 566 | 496 | ||
Derivative Liability, Fair Value, Gross Liability | 23 | 9 | ||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | -23 | -9 | ||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 | ||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||
Derivative Liability | 0 | 0 | ||
Other current assets | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 2 | 14 | ||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | -39 | -65 | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral | -37 | -51 | ||
Derivative Asset, Fair Value of Collateral | 38 | 52 | ||
Derivative Asset | 1 | 1 | ||
Non-derivative Balances | 189 | 165 | ||
Derivative Liability, Fair Value, Gross Liability | 39 | 65 | ||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | -39 | -65 | ||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 | ||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||
Derivative Liability | 0 | 0 | ||
Miscellaneous short term accruals | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Non-derivative Balances | 932 | 800 | ||
Derivative Liability, Fair Value, Gross Liability | 11 | 12 | ||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | ||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 11 | 12 | ||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||
Derivative Liability | 11 | 12 | ||
Other liabilities | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Non-derivative Balances | ' | 381 | ||
Derivative Liability, Fair Value, Gross Liability | ' | 1 | ||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | ' | 0 | ||
Derivative Liability, Fair Value, Amount Offset Against Collateral | ' | 1 | ||
Derivative Liability, Fair Value of Collateral | ' | 0 | ||
Derivative Liability | ' | 1 | ||
Foreign Exchange Contract [Member] | Miscellaneous receivables | Designated as Hedging Instrument | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 3 | 3 | ||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | 0 | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 3 | 3 | ||
Derivative Asset, Fair Value of Collateral | 0 | 0 | ||
Derivative Asset | 3 | 3 | ||
Foreign Exchange Contract [Member] | Miscellaneous receivables | Not Designated as Hedging Instrument | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 15 | 2 | ||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | 0 | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 15 | 2 | ||
Derivative Asset, Fair Value of Collateral | 0 | 0 | ||
Derivative Asset | 15 | 2 | ||
Foreign Exchange Contract [Member] | Miscellaneous short term accruals | Designated as Hedging Instrument | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | 3 | 1 | ||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | ||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 3 | 1 | ||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||
Derivative Liability | 3 | 1 | ||
Foreign Exchange Contract [Member] | Miscellaneous short term accruals | Not Designated as Hedging Instrument | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | 5 | 7 | ||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | ||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 5 | 7 | ||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||
Derivative Liability | 5 | 7 | ||
Commodity Contract [Member] | Trade Accounts Receivable [Member] | Not Designated as Hedging Instrument | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | ' | 1 | [1] | |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | ' | -6 | [1] | |
Derivative Asset, Fair Value, Amount Offset Against Collateral | ' | -5 | [1] | |
Derivative Asset, Fair Value of Collateral | ' | 5 | [1] | |
Derivative Asset | ' | 0 | [1] | |
Derivative Liability, Fair Value, Gross Liability | ' | 6 | [1] | |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | ' | -6 | [1] | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | ' | 0 | [1] | |
Derivative Liability, Fair Value of Collateral | ' | 0 | [1] | |
Derivative Liability | ' | 0 | [1] | |
Commodity Contract [Member] | Miscellaneous receivables | Not Designated as Hedging Instrument | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 1 | 4 | ||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | 0 | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 1 | 4 | ||
Derivative Asset, Fair Value of Collateral | 0 | 0 | ||
Derivative Asset | 1 | 4 | ||
Commodity Contract [Member] | Other Assets | Designated as Hedging Instrument | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 0 | [1] | 0 | [1] |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | -23 | [1] | -9 | [1] |
Derivative Asset, Fair Value, Amount Offset Against Collateral | -23 | [1] | -9 | [1] |
Derivative Asset, Fair Value of Collateral | 23 | [1] | 9 | [1] |
Derivative Asset | 0 | [1] | 0 | [1] |
Derivative Liability, Fair Value, Gross Liability | 23 | [1] | 9 | [1] |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | -23 | [1] | -9 | [1] |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | [1] | 0 | [1] |
Derivative Liability, Fair Value of Collateral | 0 | [1] | 0 | [1] |
Derivative Liability | 0 | [1] | 0 | [1] |
Commodity Contract [Member] | Other current assets | Designated as Hedging Instrument | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 1 | [1] | 9 | [1] |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | -39 | [1] | -61 | [1] |
Derivative Asset, Fair Value, Amount Offset Against Collateral | -38 | [1] | -52 | [1] |
Derivative Asset, Fair Value of Collateral | 38 | [1] | 52 | [1] |
Derivative Asset | 0 | [1] | 0 | [1] |
Derivative Liability, Fair Value, Gross Liability | 39 | [1] | 61 | [1] |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | -39 | [1] | -61 | [1] |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | [1] | 0 | [1] |
Derivative Liability, Fair Value of Collateral | 0 | [1] | 0 | [1] |
Derivative Liability | 0 | [1] | 0 | [1] |
Commodity Contract [Member] | Other current assets | Not Designated as Hedging Instrument | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 1 | 5 | [1] | |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | -4 | [1] | |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 1 | 1 | [1] | |
Derivative Asset, Fair Value of Collateral | 0 | 0 | [1] | |
Derivative Asset | 1 | 1 | [1] | |
Derivative Liability, Fair Value, Gross Liability | ' | 4 | [1] | |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | ' | -4 | [1] | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | ' | 0 | [1] | |
Derivative Liability, Fair Value of Collateral | ' | 0 | [1] | |
Derivative Liability | ' | 0 | [1] | |
Commodity Contract [Member] | Miscellaneous short term accruals | Designated as Hedging Instrument | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | 2 | 4 | ||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | ||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 2 | 4 | ||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||
Derivative Liability | 2 | 4 | ||
Commodity Contract [Member] | Miscellaneous short term accruals | Not Designated as Hedging Instrument | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | 1 | ' | ||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | ' | ||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 1 | ' | ||
Derivative Liability, Fair Value of Collateral | 0 | ' | ||
Derivative Liability | 1 | ' | ||
Commodity Contract [Member] | Other liabilities | Designated as Hedging Instrument | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | ' | 1 | ||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | ' | 0 | ||
Derivative Liability, Fair Value, Amount Offset Against Collateral | ' | 1 | ||
Derivative Liability, Fair Value of Collateral | ' | 0 | ||
Derivative Liability | ' | $1 | ||
[1] | As allowed by the Derivatives and Hedging topic of the ASC, commodity derivative assets and liabilities have been offset by collateral subject to an enforceable master netting arrangement or similar arrangement. Therefore, these commodity contracts that are in an asset or liability position are included in asset accounts within the Statements of Consolidated Financial Position. |
FINANCIAL_INSTRUMENTS_FINANCIA2
FINANCIAL INSTRUMENTS FINANCIAL INSTRUMENTS Gain (Loss) from Derivatives (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | ($68) | ($18) | ||
Amount of Gain (Loss) Recognized in Income | 19 | 61 | ||
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | 0 | 0 | ||
Foreign Currency Transaction Gain (Loss) Realized | -41 | -48 | ||
Designated as Hedging Instrument | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | -68 | [1] | -18 | [1] |
Amount of Gain (Loss) Recognized in Income | -10 | 21 | ||
Not Designated as Hedging Instrument | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Amount of Gain (Loss) Recognized in Income | 29 | 40 | ||
Cost of Sales [Member] | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Loss on Fair Value Hedge Ineffectiveness | 1 | 1 | ||
Commodity Contracts | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Loss on Cash Flow Hedge Ineffectiveness | 1 | 1 | ||
Commodity Contracts | Cost of Sales [Member] | Not Designated as Hedging Instrument | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Amount of Gain (Loss) Recognized in Income | 5 | 4 | ||
Commodity Contracts | Net Sales [Member] | Not Designated as Hedging Instrument | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Amount of Gain (Loss) Recognized in Income | 2 | 5 | ||
Foreign Exchange Contract [Member] | Other expense, net | Not Designated as Hedging Instrument | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Amount of Gain (Loss) Recognized in Income | 22 | [2] | 31 | [2] |
Interest Rate Contracts [Member] | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Loss on Cash Flow Hedge Ineffectiveness | 1 | ' | ||
Fair Value Hedges | Commodity Contracts | Cost of Sales [Member] | Designated as Hedging Instrument | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Amount of Gain (Loss) Recognized in Income | -2 | [3] | 6 | [3] |
Cash Flow Hedging [Member] | Commodity Contracts | Cost of Sales [Member] | Designated as Hedging Instrument | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | -61 | [1],[4] | -13 | [1],[4] |
Amount of Gain (Loss) Recognized in Income | -3 | [4],[5] | 17 | [4],[5] |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | Cost of Sales [Member] | Designated as Hedging Instrument | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | -3 | [1] | -4 | [1] |
Amount of Gain (Loss) Recognized in Income | 0 | [5] | 3 | [5] |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | Net Sales [Member] | Designated as Hedging Instrument | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | -2 | [1] | -1 | [1] |
Amount of Gain (Loss) Recognized in Income | -2 | [5] | -2 | [5] |
Cash Flow Hedging [Member] | Interest Rate Contracts [Member] | Interest Expense [Member] | Designated as Hedging Instrument | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | -2 | [1],[6] | 0 | [1],[6] |
Amount of Gain (Loss) Recognized in Income | ($3) | [5],[6] | ($3) | [5],[6] |
[1] | Accumulated other comprehensive income (loss) (AOCI) | |||
[2] | Gain on foreign currency contracts not designated as hedges is offset by a foreign currency transaction loss of $41 million and $48 million during the three months ended Nov. 30, 2013, and Nov. 30, 2012, respectively. | |||
[3] | Loss and gain on fair value hedges includes a loss of $1 million and a loss of less than $1 million from ineffectiveness during the three months ended Nov. 30, 2013, and Nov. 30, 2012, respectively. | |||
[4] | Loss and gain on commodity cash flow hedges includes a loss of $1 million and a loss of less than $1 million from ineffectiveness for the three months ended Nov. 30, 2013, and Nov. 30, 2012, respectively. No gains or losses were excluded from the assessment of hedge effectiveness during the three months ended Nov. 30, 2013, and Nov. 30, 2012. | |||
[5] | For derivatives designated as cash flow hedges under the Derivatives and Hedging topic of the ASC, this represents the effective portion of the gain (loss) reclassified from AOCI into income during the period. | |||
[6] | Loss on interest rate cash flow hedges includes a loss of less than $1 million from ineffectiveness for the three months ended Nov. 30, 2013. |
POSTRETIREMENT_BENEFITS_PENSIO2
POSTRETIREMENT BENEFITS - PENSIONS, HEALTH CARE AND OTHER (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 |
United States Pension Plans [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Service Cost for Benefits Earned During the Period | $15 | $20 |
Interest Cost on Benefit Obligation | 23 | 22 |
Assumed Return on Plan Assets | -35 | -40 |
Amortization of Unrecognized Net Loss (Gain) | 16 | 21 |
Curtailment and Settlement Charge | 0 | 0 |
Total Net Periodic Benefit Cost | 19 | 23 |
Defined Benefit Plan Additional Information [Abstract] | ' | ' |
Employer Contributions | 15 | 11 |
Estimated Future Employer Contributions | 45 | ' |
Foreign Pension Plans [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Service Cost for Benefits Earned During the Period | 3 | 3 |
Interest Cost on Benefit Obligation | 2 | 2 |
Assumed Return on Plan Assets | -2 | -2 |
Amortization of Unrecognized Net Loss (Gain) | 1 | 1 |
Curtailment and Settlement Charge | 1 | 1 |
Total Net Periodic Benefit Cost | 5 | 5 |
Defined Benefit Plan Additional Information [Abstract] | ' | ' |
Employer Contributions | 5 | 3 |
Estimated Future Employer Contributions | 10 | ' |
Pension Plan, Defined Benefit [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Service Cost for Benefits Earned During the Period | 18 | 23 |
Interest Cost on Benefit Obligation | 25 | 24 |
Assumed Return on Plan Assets | -37 | -42 |
Amortization of Unrecognized Net Loss (Gain) | 17 | 22 |
Curtailment and Settlement Charge | 1 | 1 |
Total Net Periodic Benefit Cost | 24 | 28 |
Postretirement and ESOP Liabilities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Service Cost for Benefits Earned During the Period | 3 | 5 |
Interest Cost on Benefit Obligation | 3 | 3 |
Amortization of Unrecognized Net Loss (Gain) | -4 | -3 |
Total Net Periodic Benefit Cost | $2 | $5 |
STOCK_BASED_COMPENSATION_PLANS2
STOCK BASED COMPENSATION PLANS Schedule of Stock-based Compensation Expense (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||||||||
In Millions, unless otherwise specified | Nov. 30, 2013 | Aug. 31, 2012 | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2012 |
Cost of Goods Sold [Member] | Cost of Goods Sold [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Research and Development Expenses [Member] | Research and Development Expenses [Member] | Pre-Tax Stock-Based Compensation Expense [Member] | Pre-Tax Stock-Based Compensation Expense [Member] | Income Tax Benefit [Member] | Income Tax Benefit [Member] | Net Stock Based Compensation [Member] | Net Stock Based Compensation [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated Stock Based Compensation Expense | ' | ' | $2 | $4 | $20 | $15 | $5 | $5 | $27 | $24 | ($9) | ($8) | $18 | $16 |
Compensation cost capitalized | $3 | $3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
STOCK_BASED_COMPENSATION_PLANS3
STOCK BASED COMPENSATION PLANS STOCK BASED COMPENSATION PLANS Restricted Stock (Details) (USD $) | 3 Months Ended |
In Millions, except Share data, unless otherwise specified | Nov. 30, 2013 |
Stock Options [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Granted | 2,264,046 |
Weighted-average grant date fair value per share | $38.44 |
Pre-tax unrecognized compensation expense, net of estimated forfeitures as applicable in millions | $105.10 |
Remaining weighted-average period of expense recognition/requisite service periods in years | '3 years |
Restricted Stock Units [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Granted | 826,959 |
Weighted-average grant date fair value per share | $101.08 |
Pre-tax unrecognized compensation expense, net of estimated forfeitures as applicable in millions | 120.9 |
Remaining weighted-average period of expense recognition/requisite service periods in years | '3 years |
Directors Deferred Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Granted | 18,520 |
Weighted-average grant date fair value per share | $97.89 |
Pre-tax unrecognized compensation expense, net of estimated forfeitures as applicable in millions | 1.4 |
Remaining weighted-average period of expense recognition/requisite service periods in years | '1 year |
Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Granted | 2,554 |
Weighted-average grant date fair value per share | $97.89 |
Pre-tax unrecognized compensation expense, net of estimated forfeitures as applicable in millions | $0.20 |
Remaining weighted-average period of expense recognition/requisite service periods in years | '1 year |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' |
Other comprehensive income (loss) before reclassifications | $89 | ' |
Beginning balance | -1,278 | ' |
Amounts reclassified from accumulated other comprehensive loss | 13 | ' |
Total Other Comprehensive Income, Net of Tax | 102 | 48 |
Ending balance | -1,176 | ' |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | -3 | 5 |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Tax | -5 | ' |
Accumulated Translation Adjustment [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' |
Other comprehensive income (loss) before reclassifications | 127 | ' |
Beginning balance | -831 | ' |
Amounts reclassified from accumulated other comprehensive loss | 0 | ' |
Total Other Comprehensive Income, Net of Tax | 127 | ' |
Ending balance | -704 | ' |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' |
Other comprehensive income (loss) before reclassifications | 5 | ' |
Beginning balance | 8 | ' |
Amounts reclassified from accumulated other comprehensive loss | 0 | ' |
Total Other Comprehensive Income, Net of Tax | 5 | ' |
Ending balance | 13 | ' |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' |
Other comprehensive income (loss) before reclassifications | -43 | ' |
Beginning balance | -115 | ' |
Amounts reclassified from accumulated other comprehensive loss | 5 | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 8 | ' |
Total Other Comprehensive Income, Net of Tax | -38 | ' |
Ending balance | -153 | ' |
Accumulated Defined Benefit Plans Adjustment [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' |
Other comprehensive income (loss) before reclassifications | 0 | ' |
Beginning balance | -340 | ' |
Amounts reclassified from accumulated other comprehensive loss | 8 | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 13 | ' |
Total Other Comprehensive Income, Net of Tax | 8 | ' |
Ending balance | -332 | ' |
Cost of Sales [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' |
Defined Benefit Plan, Amortization of Gains (Losses) | 1 | ' |
Cost of Sales [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 3 | ' |
Selling, General and Administrative Expenses [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 10 | ' |
Foreign Exchange Contract [Member] | Net Sales [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 2 | ' |
Commodity Contract [Member] | Cost of Sales [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 3 | ' |
Interest Rate Contracts [Member] | Interest Expense [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 3 | ' |
Inventory [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' |
Defined Benefit Plan, Amortization of Gains (Losses) | $3 | ' |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) | 3 Months Ended | |
In Millions, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 |
Earnings Per Share [Abstract] | ' | ' |
Weighted-Average Number of Common Shares | 526.9 | 534.8 |
Dilutive Potential Common Shares | 5.7 | 5.6 |
Antidilutive Potential Common Shares | 1.8 | 4.2 |
Shares Excluded From Computation of Dilutive Potential Shares with Exercise Prices greater than the Average Market Price of Common Shares for the Period | 0.1 | 4.1 |
SUPPLEMENTAL_CASH_FLOW_INFORMA2
SUPPLEMENTAL CASH FLOW INFORMATION (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 |
Supplemental Cash Flow Information [Abstract] | ' | ' |
Interest | $42 | $49 |
Taxes | $102 | $147 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Nov. 30, 2013 | Aug. 31, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 |
In Millions, unless otherwise specified | Medical Monitoring Program [Member] | Medical Monitoring Program [Member] | Medical Monitoring Program [Member] | Property Remediation Plan [Member] | ||
Primary Fund [Member] | Additional Fund [Member] | |||||
Accrual For Environmental And Litigation Loss Contingencies [Abstract] | ' | ' | ' | ' | ' | ' |
Accrual For Environmental And Litigation Loss Contingencies | $270 | $271 | ' | ' | ' | ' |
Gain (Loss) Related to Litigation Settlement [Abstract] | ' | ' | ' | ' | ' | ' |
Litigation Settlement, Gross | ' | ' | ' | $21 | $63 | $9 |
Loss Contingency, Settlement Agreement, Terms | ' | ' | '30 years | ' | ' | '3 years |
SEGMENT_AND_GEOGRAPHIC_DATA_De
SEGMENT AND GEOGRAPHIC DATA (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | ||
segment | ||||
Segment Reporting Information [Line Items] | ' | ' | ||
Number of Operating Segments | 2 | ' | ||
Net Sales | $3,143 | [1] | $2,939 | [1] |
Gross Profit | 1,563 | 1,397 | ||
EBIT | 554 | [2],[3],[4] | 490 | [2],[3],[4] |
Depreciation and Amortization Expense | 162 | 152 | ||
Income from operations of discontinued businesses | 14 | 11 | ||
Reconciliation of EBIT to Net Income [Abstract] | ' | ' | ||
EBIT | 554 | [2],[3],[4] | 490 | [2],[3],[4] |
Interest Expense — Net | 29 | 28 | ||
Income Tax Provision | 157 | [5] | 123 | [5] |
Net Income Attributable to Monsanto Company | 368 | 339 | ||
Corn seed and traits [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net Sales | 1,054 | [1] | 1,139 | [1] |
Gross Profit | 650 | 686 | ||
Soybean seed and traits [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net Sales | 267 | [1] | 231 | [1] |
Gross Profit | 168 | 118 | ||
Cotton seed and traits [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net Sales | 137 | [1] | 185 | [1] |
Gross Profit | 92 | 127 | ||
Vegetable seeds [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net Sales | 157 | [1] | 156 | [1] |
Gross Profit | 68 | 83 | ||
All other crops seeds and traits [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net Sales | 61 | [1] | 44 | [1] |
Gross Profit | 27 | 11 | ||
Total Seeds and Genomics [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net Sales | 1,676 | [1] | 1,755 | [1] |
Gross Profit | 1,005 | 1,025 | ||
EBIT | 104 | [2],[4] | 220 | [2],[4] |
Depreciation and Amortization Expense | 131 | 123 | ||
Reconciliation of EBIT to Net Income [Abstract] | ' | ' | ||
EBIT | 104 | [2],[4] | 220 | [2],[4] |
Agricultural Productivity [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net Sales | 1,467 | [1] | 1,184 | [1] |
Gross Profit | 558 | 372 | ||
Total Agricultural Productivity [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net Sales | 1,467 | [1] | 1,184 | [1] |
Gross Profit | 558 | 372 | ||
EBIT | 450 | [2],[4] | 270 | [2],[4] |
Depreciation and Amortization Expense | 31 | 29 | ||
Reconciliation of EBIT to Net Income [Abstract] | ' | ' | ||
EBIT | $450 | [2],[4] | $270 | [2],[4] |
[1] | Represents net sales from continuing operations. | |||
[2] | EBIT is defined as earnings before interest and taxes; see the following table for reconciliation. Earnings is intended to mean net income as presented in the Statements of Consolidated Operations under generally accepted accounting principles. EBIT is an operating performance measure for the two reportable segments. | |||
[3] | Includes the income from operations of discontinued businesses and pre-tax noncontrolling interests. | |||
[4] | Agricultural Productivity EBIT includes income from operations of discontinued businesses of $14 million and $11 million for the three months ended Nov. 30, 2013, and Nov. 30, 2012 | |||
[5] | Includes the income tax benefit on noncontrolling interest and the income tax provision on discontinued operations. |
SUBSEQUENT_EVENTS_Subsequent_E
SUBSEQUENT EVENTS Subsequent Events (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Aug. 31, 2013 | Dec. 09, 2013 | Dec. 31, 2013 |
Subsequent Event [Member] | Bond [Member] | ||||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' |
Common Stock, Dividends, Per Share, Declared | $0 | $0 | $1.56 | $0.43 | ' |
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Asset | ' | ' | ' | ' | $470 |