Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |||
In Billions, except Share data, unless otherwise specified | Aug. 31, 2014 | Oct. 24, 2014 | Feb. 28, 2014 | Aug. 31, 2013 |
Document and Entity Information [Abstract] | ' | ' | ' | ' |
Document type | '10-K | ' | ' | ' |
Document period end date | 31-Aug-14 | ' | ' | ' |
Amendment Flag | 'false | ' | ' | ' |
DocumentFiscalYearFocus | '2014 | ' | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' | ' |
Entity Registrant Name | 'MONSANTO CO /NEW/ | ' | ' | ' |
Entity Central Index Key | '0001110783 | ' | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' | ' |
Entity Voluntary Filers | 'No | ' | ' | ' |
Current Fiscal Year End Date | '--08-31 | ' | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' | ' |
Entity well known seasoned issuer | 'Yes | ' | ' | ' |
Entity common stock shares outstanding | ' | 484,073,332 | ' | ' |
Entity public float | ' | ' | $57.50 | ' |
Common stock, Par value | $0.01 | ' | ' | $0.01 |
Statements_of_Consolidated_Ope
Statements of Consolidated Operations (USD $) | 12 Months Ended | |||||
In Millions, except Per Share data, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |||
Income Statement [Abstract] | ' | ' | ' | |||
Net Sales | $15,855 | [1] | $14,861 | [1] | $13,504 | [1] |
Cost of goods sold | 7,281 | 7,208 | 6,459 | |||
Gross Profit | 8,574 | 7,653 | 7,045 | |||
Operating Expenses: | ' | ' | ' | |||
Selling, general and administrative expenses | 2,774 | 2,550 | 2,380 | |||
Research and development expenses | 1,725 | 1,533 | 1,517 | |||
Total Operating Expenses | 4,499 | 4,083 | 3,897 | |||
Income from Operations | 4,075 | 3,570 | 3,148 | |||
Interest expense | 248 | 172 | 191 | |||
Interest income | -102 | -92 | -77 | |||
Other expense, net | 102 | 61 | 46 | |||
Income from Continuing Operations Before Income Taxes | 3,827 | 3,429 | 2,988 | |||
Income tax provision | 1,078 | 915 | 901 | |||
Income from Continuing Operations Including Portion Attributable to Noncontrolling Interest | 2,749 | 2,514 | 2,087 | |||
Discontinued Operations: | ' | ' | ' | |||
Income from operations of discontinued businesses | 22 | 17 | 10 | |||
Income tax provision | 9 | 6 | 4 | |||
Income on Discontinued Operations | 13 | 11 | 6 | |||
Net Income | 2,762 | 2,525 | 2,093 | |||
Net Income (Loss) Attributable to Noncontrolling Interest | 22 | 43 | 48 | |||
Net Income Attributable to Monsanto Company | 2,740 | 2,482 | 2,045 | |||
Amounts Attributable to Monsanto Company: | ' | ' | ' | |||
Income from continuing operations | 2,727 | 2,471 | 2,039 | |||
Income on discontinued operations | 13 | 11 | 6 | |||
Net Income Attributable to Monsanto Company | $2,740 | $2,482 | $2,045 | |||
Basic Earnings per Share Attributable to Monsanto Company: | ' | ' | ' | |||
Income from continuing operations (in dollars per share) | $5.25 | $4.63 | [2] | $3.82 | ||
Income on discontinued operations (in dollars per share) | $0.03 | $0.02 | [2] | $0.01 | ||
Net Income Attributable to Monsanto Company (in dollars per share) | $5.28 | $4.65 | [2] | $3.83 | ||
Diluted Earnings per Share Attributable to Monsanto Company: | ' | ' | ' | |||
Income from continuing operations (in dollars per share) | $5.19 | $4.58 | [2] | $3.78 | ||
Income on discontinued operations (in dollars per share) | $0.03 | $0.02 | [2] | $0.01 | ||
Net Income Attributable to Monsanto Company (in dollars per share) | $5.22 | $4.60 | [2] | $3.79 | ||
Weighted Average Shares Outstanding: | ' | ' | ' | |||
Basic (in shares) | 519.3 | 533.7 | 534.1 | |||
Diluted (in shares) | 524.9 | 539.7 | 540.2 | |||
[1] | Represents net sales from continuing operations. | |||||
[2] | Because Monsanto reported a loss from continuing operations in the fourth quarter 2014 and 2013, generally accepted accounting principles require diluted loss per share to be calculated using weighted-average common shares outstanding, excluding common stock equivalents. As a result, the quarterly earnings (loss) per share may not total to the full-year amount. |
Statements_of_Consolidated_Com
Statements of Consolidated Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Net Income Attributable to Monsanto Company | ' | ' | ' |
Net Income Attributable to Monsanto Company | $2,740 | $2,482 | $2,045 |
Other Comprehensive Income (Loss), Net of Tax: | ' | ' | ' |
Foreign currency translation, net of tax of $(33), $(24) and $0, respectively | 100 | -229 | -872 |
Postretirement benefit plan activity, net of tax of $76, $80 and $(10), respectively | 119 | 128 | -19 |
Unrealized net gains on investment holdings, net of tax of $0, $4 and $0, respectively | 0 | 9 | 0 |
Realized net (gains) losses on investment holdings, net of tax of $(2), $(3) and $3, respectively | -3 | -6 | 5 |
Unrealized net derivative (losses) gains, net of tax of $(42), $(45) and $6, respectively | -69 | -78 | 16 |
Realized net derivative losses (gains), net of tax of $9, $(39) and $(35), respectively | 17 | -66 | -50 |
Total Other Comprehensive Income (Loss), Net of Tax | 164 | -242 | -920 |
Comprehensive Income Attributable to Monsanto Company | 2,904 | 2,240 | 1,125 |
Comprehensive Income Attributable to Noncontrolling Interests | ' | ' | ' |
Net Income Attributable to Noncontrolling Interests | 22 | 43 | 48 |
Other Comprehensive Income (Loss): | ' | ' | ' |
Foreign currency translation | 10 | -27 | -40 |
Total Other Comprehensive Income (Loss) | 10 | -27 | -40 |
Comprehensive Income Attributable to Noncontrolling Interests | 32 | 16 | 8 |
Total Comprehensive Income | $2,936 | $2,256 | $1,133 |
Statements_of_Consolidated_Com1
Statements of Consolidated Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Other Comprehensive Income (Loss), Tax, Parenthetical Disclosures [Abstract] | ' | ' | ' |
Foreign currency translation, tax expense (benefit) | ($33) | ($24) | $0 |
Postretirement benefit plan activity, tax expense (benefit) | 76 | 80 | -10 |
Unrealized net gains on investment holdings, tax (expense) benefit | 0 | 4 | 0 |
Realized net (gains) losses on investment holdings, tax (expense) benefit | 2 | 3 | -3 |
Unrealized net derivative gains (losses), tax (expense) benefit | -42 | -45 | 6 |
Realized net derivative losses (gains), tax (expense) benefit | $9 | ($39) | ($35) |
Statements_of_Consolidated_Fin
Statements of Consolidated Financial Position (USD $) | Aug. 31, 2014 | Aug. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Current Assets: | ' | ' | ||
Cash and cash equivalents (variable interest entities restricted - 2014: $118 and 2013: $140) | $2,367 | $3,668 | ||
Short-term investments | 40 | 254 | ||
Trade receivables, net (variable interest entities restricted - 2014: $39 and 2013: $0) | 2,014 | 1,715 | ||
Miscellaneous receivables | 817 | 748 | ||
Deferred tax assets | 635 | 579 | ||
Inventory, net | 3,597 | 2,947 | ||
Other current assets | 205 | 166 | ||
Total Current Assets | 9,675 | 10,077 | ||
Total property, plant and equipment | 10,357 | 9,491 | ||
Less: Accumulated depreciation | 5,275 | 4,837 | ||
Property, Plant and Equipment, Net (variable interest entity restricted - 2014: $2 and 2013: $0) | 5,082 | 4,654 | ||
Goodwill | 4,319 | 3,520 | ||
Other Intangible Assets, Net | 1,554 | 1,226 | ||
Noncurrent Deferred Tax Assets | 450 | 454 | ||
Long-Term Receivables, Net | 92 | 237 | ||
Other Assets | 809 | 496 | ||
Total Assets | 21,981 | [1] | 20,664 | [1] |
Current Liabilities: | ' | ' | ||
Short-term debt, including current portion of long-term debt (variable interest entity restricted - 2014: $136 and 2013: $0) | 233 | 51 | ||
Accounts payable (variable interest entity restricted - 2014: $25 and 2013: $0) | 1,111 | 995 | ||
Income taxes payable | 99 | 91 | ||
Accrued compensation and benefits (variable interest entity restricted - 2014: $1 and 2013: $0) | 500 | 492 | ||
Accrued marketing programs | 1,394 | 1,078 | ||
Deferred revenues | 438 | 517 | ||
Grower production accruals | 54 | 60 | ||
Dividends payable | 239 | 228 | ||
Customer payable | 82 | 12 | ||
Miscellaneous short-term accruals | 962 | 812 | ||
Total Current Liabilities | 5,112 | 4,336 | ||
Long-Term Debt | 7,528 | 2,061 | ||
Postretirement Liabilities | 345 | 357 | ||
Long-Term Deferred Revenue | 47 | 138 | ||
Noncurrent Deferred Tax Liabilities | 509 | 469 | ||
Long-Term Portion of Environmental and Litigation Liabilities | 184 | 193 | ||
Other Liabilities | 342 | 382 | ||
Shareowners’ Equity: | ' | ' | ||
Common stock (authorized: 1,500,000,000 shares, par value $0.01) Issued 606,457,369 and 601,631,267 shares, respectively; Outstanding 485,261,017 and 529,029,712 shares, respectively | 6 | 6 | ||
Treasury stock 121,196,352 and 72,601,555 shares, respectively, at cost | -10,032 | -4,140 | ||
Additional contributed capital | 10,003 | 10,783 | ||
Retained earnings | 9,012 | 7,188 | ||
Accumulated other comprehensive loss | -1,114 | -1,278 | ||
Total Monsanto Company Shareowners’ Equity | 7,875 | 12,559 | ||
Noncontrolling Interest | 39 | 169 | ||
Total Shareowners’ Equity | 7,914 | 12,728 | ||
Total Liabilities and Shareowners’ Equity | $21,981 | $20,664 | ||
[1] | Includes assets recorded in continuing operations and discontinued operations. |
Statements_of_Consolidated_Fin1
Statements of Consolidated Financial Position (Parenthetical) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents (variable interest entities restricted) | $118 | $140 |
Trade receivables, net (variables interest entities restricted) | 39 | 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 | 606,457,369 | 601,631,267 |
Common stock, Outstanding | 485,261,017 | 529,029,712 |
Treasury Stock, at Cost | 121,196,352 | 72,601,555 |
Property Plant And Equipment, Net Restricted To Consolidated Variable Interest Entities | 2 | 0 |
Short Term Debt Restricted To Consolidated Variable Interest Entities | 136 | 0 |
Accounts Payable Net Restricted To Consolidated Variable Interest Entities | 25 | 0 |
Accrued Compensation And Benefits Restricted To Consolidated Variable Interest Entities | $1 | $0 |
Statements_of_Consolidated_Cas
Statements of Consolidated Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Operating Activities: | ' | ' | ' |
Net Income | $2,762 | $2,525 | $2,093 |
Items that did not require (provide) cash: | ' | ' | ' |
Depreciation and amortization | 691 | 615 | 622 |
Bad-debt expense | 41 | 27 | 3 |
Stock-based compensation expense | 120 | 100 | 128 |
Excess tax benefits from stock-based compensation | -72 | -79 | -50 |
Deferred income taxes | 12 | 176 | 263 |
Equity affiliate (income) loss, net | 4 | -17 | -19 |
Net gain on sales of a business or other assets | -11 | -17 | -4 |
Other items, net | 139 | -77 | -8 |
Changes in assets and liabilities that provided (required) cash, net of acquisitions: | ' | ' | ' |
Trade receivables | -172 | 222 | 170 |
Inventory, net | -650 | -192 | -427 |
Deferred revenues | -163 | 50 | -39 |
Accounts payable and other accrued liabilities | 709 | -104 | 439 |
Pension contributions | -64 | -75 | -83 |
Other items, net | -292 | -414 | -37 |
Net Cash Provided by Operating Activities | 3,054 | 2,740 | 3,051 |
Cash Flows Provided (Required) by Investing Activities: | ' | ' | ' |
Purchases of short-term investments | -145 | -716 | -746 |
Maturities of short-term investments | 359 | 764 | 746 |
Capital expenditures | -1,005 | -741 | -646 |
Purchases of long-term debt and equity securities | -12 | 0 | 0 |
Acquisition of businesses, net of cash acquired | -922 | -165 | -322 |
Technology and other investments | -403 | -88 | -77 |
Other investments and property disposal proceeds | 33 | 169 | 11 |
Net Cash Required by Investing Activities | -2,095 | -777 | -1,034 |
Cash Flows Provided (Required) by Financing Activities: | ' | ' | ' |
Net change in financing with less than 90-day maturities | 38 | 104 | -116 |
Short-term debt proceeds | 50 | 22 | 30 |
Short-term debt reductions | -24 | -29 | -42 |
Long-term debt proceeds | 5,479 | 32 | 499 |
Long-term debt reductions | -7 | -2 | -629 |
Payments on other financing | -39 | 0 | 0 |
Debt issuance costs | -53 | 0 | -5 |
Treasury stock purchases | -7,082 | -1,095 | -432 |
Stock option exercises | 248 | 257 | 117 |
Excess tax benefits from stock-based compensation | 72 | 79 | 50 |
Tax withholding on restricted stock and restricted stock units | -9 | -10 | -19 |
Dividend payments | -904 | -802 | -642 |
Proceeds from noncontrolling interest | 0 | 133 | 101 |
Payments to noncontrolling interests | -28 | -174 | -77 |
Net Cash Required by Financing Activities | -2,259 | -1,485 | -1,165 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | -1 | -93 | -141 |
Net (Decrease) Increase in Cash and Cash Equivalents | -1,301 | 385 | 711 |
Cash and Cash Equivalents at Beginning of Period | 3,668 | 3,283 | 2,572 |
Cash and Cash Equivalents at End of Period | $2,367 | $3,668 | $3,283 |
Statements_of_Consolidated_Sha
Statements of Consolidated Shareholders Equity (USD $) | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Contributed Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) [Member] | Reserve For ESOP Debt [Member] | NonControlling Interests [Member] | |
In Millions, unless otherwise specified | |||||||||
Beginning Balance at Aug. 31, 2011 | ' | ' | ' | ' | ' | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | |
Net Income | $2,093 | ' | ' | ' | ' | ' | ' | ' | |
Net Income (Loss) Attributable to Parent | 2,045 | ' | ' | ' | 2,045 | ' | ' | ' | |
Net Income (Loss) Attributable to Noncontrolling Interest | 48 | ' | ' | ' | ' | ' | ' | ' | |
Other comprehensive income (loss) | -960 | ' | ' | ' | ' | -920 | [1] | ' | -40 |
Treasury stock purchases | -432 | ' | -432 | ' | ' | ' | ' | ' | |
Restricted stock withholding | -19 | ' | ' | -19 | ' | ' | ' | ' | |
Issuance of shares under employee stock plans | 117 | ' | ' | 117 | ' | ' | ' | ' | |
Excess tax benefits from stock-based compensation | 50 | ' | ' | 50 | ' | ' | ' | ' | |
Stock-based compensation expense | 127 | ' | ' | 127 | ' | ' | ' | ' | |
Cash dividends per common share ($1.28, $1.56 and $1.78 for 2012, 2013 and 2014, respectively) | -682 | ' | ' | ' | -682 | ' | ' | ' | |
Payments to noncontrolling interest | -77 | ' | ' | ' | ' | ' | ' | -77 | |
Allocation of ESOP shares, net of dividends received | 2 | ' | ' | ' | ' | ' | 2 | ' | |
Proceeds from noncontrolling interest | 101 | ' | ' | ' | ' | ' | ' | 101 | |
Ending Balance at Aug. 31, 2012 | 12,036 | 6 | -3,045 | 10,371 | 5,537 | -1,036 | [1] | 0 | 203 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | |
Net Income | 2,525 | ' | ' | ' | ' | ' | ' | ' | |
Net Income (Loss) Attributable to Parent | 2,482 | ' | ' | ' | 2,482 | ' | ' | ' | |
Net Income (Loss) Attributable to Noncontrolling Interest | 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 ($1.28, $1.56 and $1.78 for 2012, 2013 and 2014, respectively) | -831 | ' | ' | ' | -831 | ' | ' | ' | |
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] | 0 | 169 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | |
Net Income | 2,762 | ' | ' | ' | ' | ' | ' | ' | |
Net Income (Loss) Attributable to Parent | 2,740 | ' | ' | ' | 2,740 | ' | ' | ' | |
Net Income (Loss) Attributable to Noncontrolling Interest | 22 | ' | ' | ' | ' | ' | ' | ' | |
Other comprehensive income (loss) | 174 | ' | ' | ' | ' | 164 | [1] | ' | 10 |
Treasury stock purchases | -7,096 | ' | -5,892 | -1,204 | ' | ' | ' | ' | |
Restricted stock withholding | -16 | ' | ' | -16 | ' | ' | ' | ' | |
Issuance of shares under employee stock plans | 248 | ' | ' | 248 | ' | ' | ' | ' | |
Excess tax benefits from stock-based compensation | 72 | ' | ' | 72 | ' | ' | ' | ' | |
Stock-based compensation expense | 120 | ' | ' | 120 | ' | ' | ' | ' | |
Recognition of redeemable shares of VIE | -134 | ' | ' | ' | ' | ' | ' | -134 | |
Cash dividends per common share ($1.28, $1.56 and $1.78 for 2012, 2013 and 2014, respectively) | -916 | ' | ' | ' | -916 | ' | ' | ' | |
Payments to noncontrolling interest | -28 | ' | ' | ' | ' | ' | ' | -28 | |
Ending Balance at Aug. 31, 2014 | $7,914 | $6 | ($10,032) | $10,003 | $9,012 | ($1,114) | [1] | $0 | $39 |
[1] | See Note 22 — Accumulated Other Comprehensive Loss — for further details of the components of accumulated other comprehensive loss. |
Statements_of_Consolidated_Sha1
Statements of Consolidated Shareholders Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' |
Cash dividends per common share | $1.78 | $1.56 | $1.28 |
BACKGROUND_AND_BASIS_OF_PRESEN
BACKGROUND AND BASIS OF PRESENTATION | 12 Months Ended |
Aug. 31, 2014 | |
BACKGROUND AND BASIS OF PRESENTATION [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, herbicides and precision agriculture tools provide farmers with solutions that help 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. 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 and precision agriculture to assist farmers in decision making. 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 26 - Segment and Geographic Data - 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, and included a 10-year earn-out with potential annual payments being earned by Monsanto if certain revenue levels are exceeded. As a result, financial data for this business has been presented as discontinued operations. | |
Certain financial interests of a consolidated variable interest entity previously reported by the company as noncontrolling interests have now been recognized as mandatorily redeemable shares in short-term debt of $136 million in the Statement of Consolidated Financial Position as of Aug. 31, 2014, in accordance with the terms of the financial interests. The company has reevaluated the terms of these financial interests and does not consider the recognition of the mandatorily redeemable shares to be material to the consolidated financial statements as of and for the years ended Aug. 31, 2013 and Aug. 31, 2012. | |
In addition, certain reclassifications of prior year amounts within the Statements of Consolidated Operations and Statements of Consolidated Cash Flows have been made to conform to current year presentation. | |
Unless otherwise indicated, “Monsanto” and “the company” are used interchangeably to refer to Monsanto Company or to Monsanto Company and its consolidated subsidiaries, as appropriate to the context. |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Aug. 31, 2014 | |
Accounting Policies [Abstract] | ' |
SIGNIFICANT ACCOUNTING POLICIES | ' |
SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Consolidation | |
The accompanying consolidated financial statements of Monsanto and its subsidiaries were prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and include the assets, liabilities, revenues and expenses of all majority-owned subsidiaries over which the company exercises control and, when applicable, entities for which the company has a controlling financial interest or is the primary beneficiary. Intercompany accounts and transactions have been eliminated in consolidation. The company records income attributable to noncontrolling interest in the Statements of Consolidated Operations for any non-owned portion of consolidated subsidiaries. Noncontrolling interest is recorded within the equity section but separate from Monsanto’s equity in the Statements of Consolidated Financial Position. | |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make certain estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Estimates are adjusted to reflect actual experience when necessary. Significant estimates and assumptions affect many items in the consolidated financial statements. These include allowance for doubtful trade receivables, sales returns and allowances, inventory obsolescence, income tax liabilities and assets and related valuation allowances, asset impairments, valuations of goodwill and other intangible assets, employee benefit plan assets and liabilities, value of equity-based awards, customer incentive program liabilities, restructuring reserves, self-insurance reserves, environmental reserves, deferred revenue, contingencies, litigation, incentives, the allocation of corporate costs to segments and certain cash flow projections. Significant estimates and assumptions are also used to establish the fair value and useful lives of depreciable tangible and certain intangible assets. Actual results may differ from those estimates and assumptions, and such results may affect income, financial position or cash flows. | |
Revenue Recognition | |
The company derives most of its revenue from three main sources: sales of branded conventional seed and branded seed with biotechnology traits; royalties and license revenues from licensed biotechnology traits and genetic material; and sales of agricultural chemical products. Monsanto follows the Revenue Recognition topic of the Accounting Standards Codification ("ASC"). | |
Revenues from all seed sales are recognized when the title to the products is transferred. The company recognizes revenue on products it sells to distributors when, according to the terms of the sales agreement, delivery has occurred, performance is complete, expected returns can be reasonably estimated and pricing is fixed or determinable. When the right of return exists in the company’s seed business, sales revenues are reduced at the time of sale to reflect expected returns. In order to estimate the expected returns, management analyzes historical returns, economic trends, market conditions and changes in customer demand. | |
The Revenue Recognition topic of the ASC affects Monsanto’s recognition of license revenues from biotechnology traits sold through third-party seed companies. The company may enter into multiple element arrangements, including those where a customer purchases technology and licenses. When elements of a multiple element arrangement do not have stand alone value, we account for such elements as a combined unit of accounting. We allocate revenue to each unit of accounting in a multiple element arrangement based upon the relative selling price of each deliverable. When applying the relative selling price method, we determine the selling price for each deliverable by using vendor-specific objective evidence (“VSOE”) of selling price, if it exists, or third-party evidence (“TPE”) of selling price. If neither VSOE nor TPE of selling price exist for a unit of accounting, we use our best estimate of selling price for that unit of accounting. When we use our best estimate to determine selling price, significant judgment is required. The significant assumptions used to estimate selling price for significant units of accounting may consist of cost, gross margin objectives or forecasted customer selling volumes. Changes in assumptions used to estimate selling price could result in a different allocation of arrangement consideration across the units of accounting within an arrangement. Revenue allocated to each unit of accounting is recognized when all revenue recognition criteria for that unit of accounting have been met. License revenue, including those within multiple element arrangements, is generally recognized over the contract period as third-party seed companies sell seed containing Monsanto traits, which can be from one year up to the related patent term. | |
Primarily in Brazil and Latin America, Monsanto has point-of-delivery collection systems for certain royalties for soybeans and cotton to record revenue when the grain containing our technology is delivered and commercialized at the grain handlers and the collection cycle is complete. | |
Revenues for agricultural chemical products are recognized when title to the products is transferred. The company recognizes revenue on products it sells to distributors when, according to the terms of the sales agreements, delivery has occurred, performance is complete, no right of return exists and pricing is fixed or determinable. | |
There are several additional conditions for recognition of revenue including that the collection of sales proceeds must be reasonably assured based on historical experience and current market conditions and that there must be no consequential remaining performance obligations under the sale or the royalty or license agreement. | |
To reduce credit exposure primarily in Latin America, Monsanto collects payments on certain customer accounts in grain. In those circumstances in Argentina when Monsanto participates in the negotiation of the forward sales contract, Monsanto records revenue and related cost of sale for the grain on a net basis. In those circumstances in Brazil when Monsanto does not participate in the negotiation of the forward sales contract and does not take physical custody of the grain or assume the associated inventory risk, Monsanto does not record revenue or the related cost of sales for the 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 with grain merchants, 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 grain merchant converts the grain to cash for Monsanto. These forward sales contracts do not qualify for hedge accounting under the Derivatives and Hedging topic of the ASC. Accordingly, the gain or loss on these derivatives is recognized in current earnings. | |
Promotional, Advertising and Customer Incentive Program Costs | |
Promotional and advertising costs are expensed as incurred and are included in selling, general and administrative expenses in the Statements of Consolidated Operations. Advertising costs were $90 million, $95 million and $87 million in 2014, 2013 and 2012, respectively. Customer incentive program costs are recorded in accordance with the Revenue Recognition topic of the ASC, based on specific performance criteria met by our customers, such as purchase volumes, promptness of payment and market share increases. The cost of customer incentive programs is generally recorded in net sales in the Statements of Consolidated Operations. As actual customer incentive program expenses are not known at the time of the sale, an estimate based on the best available information (such as historical experience and market research) is used as a basis for recording customer incentive program liabilities. Management analyzes and reviews the customer incentive program balances on a quarterly basis and adjustments are recorded as appropriate. Under certain customer incentive programs, product performance and variations in weather can result in free product to customers. The associated cost of this free product is recognized as cost of goods sold in the Statements of Consolidated Operations. | |
Research and Development Costs and Collaborative Arrangements | |
The company accounts for research and development (R&D) costs in accordance with the Research and Development topic of the ASC. Under the Research and Development topic of the ASC, all R&D costs must be charged to expense as incurred. Accordingly, internal R&D costs are expensed as incurred. Third-party R&D costs are expensed when the contracted work has been performed or as milestone results are achieved. In process research and development (IPR&D) costs acquired in a business combination are recorded on the Statements of Consolidated Financial Position as indefinite-lived intangible assets until completion or abandonment of the associated R&D efforts. The costs of purchased IPR&D that have alternative future uses are capitalized and amortized over the estimated useful life of the asset. IPR&D intangible assets are subject to annual impairment tests. The costs associated with equipment or facilities acquired or constructed for R&D activities that have alternative future uses are capitalized and depreciated on a straight-line basis over the estimated useful life of the asset. The amortization and depreciation for such capitalized assets are charged to R&D expenses. Monsanto has entered into collaborations with third parties for the R&D and commercialization of agricultural products. The company accounts for costs incurred and revenue generated under these collaborative arrangements from transactions with third parties in accordance with the Collaborative Arrangements topic of the ASC. Under the Collaborative Arrangements topic of the ASC, all costs incurred and revenue generated from transactions with third parties shall be recorded in each entity's respective income statement. For additional information on the company's collaborative arrangements, see Note 4 - Business Combinations and Collaborative Arrangements. | |
Income Taxes | |
Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Management regularly assesses the likelihood that deferred tax assets will be recovered from future taxable income, and to the extent management believes that it is more likely than not that a deferred tax asset will not be realized, a valuation allowance is established. When a valuation allowance is established, increased or decreased, an income tax charge or benefit is included in the consolidated financial statements and net deferred tax assets are adjusted accordingly. The net deferred tax assets as of Aug. 31, 2014, represent the estimated future tax benefits to be received from taxing authorities or future reductions of taxes payable. | |
Under the Income Tax topic of the ASC, in order to recognize an uncertain tax benefit, the taxpayer must be more likely than not of sustaining the position, and the measurement of the benefit is calculated as the largest amount that is more than 50 percent likely to be realized upon resolution of the benefit. Tax authorities regularly examine the company’s returns in the jurisdictions in which Monsanto does business. Management regularly assesses the tax risk of the company’s return filing positions and believes its accruals for uncertain tax benefits are adequate as of Aug. 31, 2014, and Aug. 31, 2013. | |
Cash and Cash Equivalents | |
All highly liquid investments (defined as investments with a maturity of three months or less when purchased) are considered cash equivalents. | |
Inventory Valuation and Obsolescence | |
Inventories are stated at the lower of cost or market, and an inventory reserve would permanently reduce the cost basis of inventory. Inventories are valued as follows: | |
Seeds and Genomics: Actual cost is used to value raw materials such as treatment chemicals and packaging, as well as goods in process. Costs for substantially all finished goods, which include the cost of carryover crops from the previous year, are valued at weighted-average actual cost. Weighted-average actual cost includes field growing and harvesting costs, plant conditioning and packaging costs, and manufacturing overhead costs. | |
Agricultural Productivity: Actual cost is used to value raw materials and supplies. Standard cost, which approximates actual cost, is used to value finished goods and goods in process. Variances, exclusive of abnormally low volume and operating performance, are capitalized into inventory. Standard cost includes direct labor and raw materials, and manufacturing overhead based on normal capacity. The cost of the Agricultural Productivity segment inventories in the United States (approximately 9 percent of total company inventory as of Aug. 31, 2014, and Aug. 31, 2013) is determined by using the last-in, first-out (LIFO) method, which generally reflects the effects of inflation or deflation on cost of goods sold sooner than other inventory cost methods. The cost of inventories outside of the United States, as well as supplies inventories in the United States, is determined by using the first-in, first-out (FIFO) method; FIFO is used outside of the United States because the requirements in the countries where Monsanto maintains inventories generally do not allow the use of the LIFO method. Inventories at FIFO approximate current cost. | |
In accordance with the Inventory topic of the ASC, Monsanto records abnormal amounts of idle facility expense, freight, handling costs and wasted material (spoilage) as current period charges and allocates fixed production overhead to the costs of conversion based on the normal capacity of the production facilities. | |
Monsanto establishes allowances for obsolescence of inventory equal to the difference between the cost of inventory (if higher) and the estimated market value, based on assumptions about future demand and market conditions. The company regularly evaluates the adequacy of our inventory obsolescence reserves. If economic and market conditions are different from those anticipated, inventory obsolescence could be materially different from the amounts provided for in the company’s consolidated financial statements. If inventory obsolescence is higher than expected, cost of goods sold will be increased, and inventory, net income, and shareowners’ equity will be reduced. | |
Goodwill | |
Monsanto follows the guidance of the Business Combinations topic of the ASC in recording the goodwill arising from a business combination as the excess of purchase price and related costs over the fair value of identifiable assets acquired and liabilities assumed. | |
Under the Intangibles – Goodwill and Other topic of the ASC, goodwill is not amortized and is subject to annual impairment tests. A fair-value-based test is applied at the reporting unit level, which is generally at or one level below the operating segment level. The test compares the fair value of the company’s reporting units to the carrying value of those reporting units. This test requires various judgments and estimates. The fair value of goodwill is determined using an estimate of future cash flows of the reporting unit and a risk-adjusted discount rate to compute a net present value of future cash flows. An adjustment to goodwill will be recorded for any goodwill that is determined to be impaired. Impairment of goodwill is measured as the excess of the carrying amount of goodwill over the fair values of recognized assets and liabilities of the reporting unit. Goodwill is tested for impairment at least annually, or more frequently if events or circumstances indicate it might be impaired. Goodwill was last tested for impairment as of Mar. 1, 2014. See Note 10 - Goodwill and Other Intangible Assets - for further discussion of the annual impairment test. | |
Other Intangible Assets | |
Other intangible assets consist primarily of acquired seed germplasm, acquired intellectual property, trademarks and customer relationships. Seed germplasm is the genetic material used in new seed varieties. Germplasm is amortized on a straight-line basis over useful lives ranging from 5 years for completed technology germplasm to a maximum of 30 years for certain core technology germplasm. Completed technology germplasm consists of seed hybrids and varieties that are commercially available. Core technology germplasm is the collective germplasm of parental seeds and has a longer useful life as it is used to develop new seed hybrids and varieties. Acquired intellectual property includes intangible assets related to acquisitions and licenses through which Monsanto has acquired the rights to various research and discovery technologies. These encompass intangible assets such as enabling processes and data libraries necessary to support the integrated genomics and biotechnology platforms. These intangible assets have alternative future uses and are amortized over useful lives ranging from 1 to 18 years. The useful lives of acquired germplasm and acquired intellectual property are determined based on consideration of several factors including the nature of the asset, its expected use, length of licensing agreement or patent and the period over which benefits are expected to be received from the use of the asset. | |
Monsanto has a broad portfolio of trademarks for herbicide products, traits, agricultural seeds and vegetable seeds, and patents for our insect-protection traits, formulations used to make our herbicides and various manufacturing processes. The amortization period for acquired trademarks and patents ranges from 1 to 30 years. Trademarks are amortized on a straight-line basis over their useful lives. The useful life of a trademark is determined based on the estimated market-life of the associated company, brand or product. Patents are amortized on a straight-line basis over the period in which the patent is legally protected, the period over which benefits are expected to be received, or the estimated market-life of the product with which the patent is associated, whichever is shorter. | |
In conjunction with acquisitions, Monsanto obtains access to the distribution channels and customer relationships of the acquired companies. These relationships are expected to provide economic benefits to Monsanto. The amortization period for customer relationships ranges from 1 to 20 years, and amortization is recognized on a straight-line basis over these periods. The amortization period of customer relationships represents management’s best estimate of the expected usage or consumption of the economic benefits of the acquired assets, which is based on the company’s historical experience of customer attrition rates. | |
In accordance with the Intangibles – Goodwill and Other topic of the ASC, all amortizable intangible assets are assessed for impairment whenever events indicate a possible loss. Such an assessment involves estimating undiscounted cash flows over the remaining useful life of the intangible. If the review indicates that undiscounted cash flows are less than the recorded value of the intangible asset, the carrying amount of the intangible is reduced by the estimated cash-flow shortfall on a discounted basis, and a corresponding loss is charged to the Statement of Consolidated Operations. See Note 10 - Goodwill and Other Intangible Assets - for further discussion of Monsanto’s intangible assets. | |
Property, Plant and Equipment | |
Property, plant and equipment is recorded at cost. Additions and improvements are capitalized; these include all material, labor and engineering costs to design, install or improve the asset and interest costs on construction projects. Such costs are not depreciated until the assets are placed in service. Routine repairs and maintenance are expensed as incurred. The cost of plant and equipment is depreciated using the straight-line method over the estimated useful life of the asset — weighted-average periods of approximately 25 years for buildings, 10 years for machinery and equipment and 5 years for software. In compliance with the Property, Plant and Equipment topic of the ASC, long-lived assets are reviewed for impairment whenever in management’s judgment conditions indicate a possible loss. Such impairment tests compare estimated undiscounted cash flows to the recorded value of the asset. If an impairment is indicated, the asset is written down to its fair value or, if fair value is not readily determinable, to an estimated fair value based on discounted cash flows. | |
Asset Retirement Obligations and Environmental Remediation Liabilities | |
Monsanto follows the Asset Retirement and Environmental Obligations topic of the ASC, which addresses financial accounting for and reporting of costs and obligations associated with the retirement of tangible long-lived assets. Monsanto has asset retirement obligations with carrying amounts totaling $59 million and $86 million included in other liabilities on the Statements of Consolidated Financial Position as of Aug. 31, 2014, and Aug. 31, 2013, respectively, primarily relating to its manufacturing facilities. | |
Monsanto follows the Asset Retirement and Environmental Obligations topic of the ASC, which provides guidance for recognizing, measuring and disclosing environmental remediation liabilities. Monsanto accrues these costs in the period when responsibility is established and when such costs are probable and reasonably estimable based on current law and existing technology. Postclosure and remediation costs for hazardous waste sites and other waste facilities at operating locations are accrued over the estimated life of the facility, as part of its anticipated closure cost. | |
Litigation and Other Contingencies | |
Monsanto is involved in various intellectual property, biotechnology, tort, contract, antitrust, shareowner claims, environmental and other litigation, claims and legal proceedings; environmental remediation; and government investigations (see Note 25 - Commitments and Contingencies). Management routinely assesses the likelihood of adverse judgments or outcomes to those matters, as well as ranges of probable losses, to the extent losses are reasonably estimable. In accordance with the Contingencies topic of the ASC, accruals for such contingencies are recorded to the extent that management concludes their occurrence is probable and the financial impact, should an adverse outcome occur, is reasonably estimable. Disclosure for specific legal contingencies is provided if the likelihood of occurrence is at least reasonably possible and the exposure is considered material to the consolidated financial statements. In making determinations of likely outcomes of litigation matters, management considers many factors. These factors include, but are not limited to, past experience, scientific and other evidence, interpretation of relevant laws or regulations and the specifics and status of each matter. If the assessment of the various factors changes, the estimates may change. That may result in the recording of an accrual or a change in a previously recorded accrual. Predicting the outcome of claims and litigation and estimating related costs and exposure involves substantial uncertainties that could cause actual costs to vary materially from estimates and accruals. | |
Guarantees | |
Monsanto is subject to various commitments under contractual and other commercial obligations. The company recognizes liabilities for contingencies and commitments under the Guarantees topic of the ASC. For additional information on the company’s commitments and other contractual and commercial obligations, see Note 25 - Commitments and Contingencies. | |
Foreign Currency Translation | |
The financial statements for most of Monsanto’s ex-U.S. operations are translated to U.S. dollars at current exchange rates. For assets and liabilities, the fiscal year-end rate is used. For revenues, expenses, gains and losses, an approximation of the average rate for the period is used. Unrealized currency adjustments in the Statements of Consolidated Financial Position are accumulated in equity as a component of accumulated other comprehensive loss. The financial statements of ex-U.S. operations in highly inflationary economies are translated at either current or historical exchange rates at the time they are deemed highly inflationary, in accordance with the Foreign Currency Matters topic of the ASC. These currency adjustments and the remeasurement of assets and liabilities of ex-U.S. operations with the U.S. dollar designated as their functional currency are included in net income. Based on the Consumer Price Index (CPI), Monsanto designated Venezuela as a hyperinflationary country effective June 1, 2009. The functional currency of the Company's foreign entities in Argentina is the U.S. dollar. | |
Significant translation exposures include the Brazilian real, the European euro, the Mexican peso, the Canadian dollar, the Australian dollar, Indian rupee, and South African rand. Currency restrictions are not expected to have a significant effect on Monsanto’s cash flow, liquidity or capital resources. | |
Derivatives and Other Financial Instruments | |
Monsanto uses financial derivative instruments and natural hedges to limit its exposure to changes in foreign currency exchange rates, commodity prices and interest rates. Monsanto does not use financial derivative instruments for the purpose of speculating in foreign currencies, commodities or interest rates. Monsanto continually monitors its underlying market risk exposures and believes that it can modify or adapt its hedging strategies as needed. | |
In accordance with the Derivatives and Hedging topic of the ASC, all derivatives, whether designated for hedging relationships or not, are recognized in the Statements of Consolidated Financial Position at their fair value. At the time a derivative contract is entered into, Monsanto designates each derivative as: (1) a hedge of the fair value of a recognized asset or liability (a fair-value hedge), (2) a hedge of a forecasted transaction or of the variability of cash flows that are to be received or paid in connection with a recognized asset or liability (a cash-flow hedge), (3) a foreign-currency fair-value or cash-flow hedge (a foreign-currency hedge), (4) a foreign-currency hedge of the net investment in a foreign subsidiary or (5) a derivative that does not qualify for hedge accounting treatment. | |
Changes in the fair value of a derivative that is considered highly effective, and that is designated as and qualifies as a fair-value hedge, along with changes in the fair value of the hedged asset or liability that are attributable to the hedged risk, are recorded in current-period net income. Changes in the fair value of a derivative that is considered highly effective, and that is designated as and qualifies as a cash-flow hedge, to the extent that the hedge is effective, are recorded in accumulated other comprehensive loss until net income is affected by the variability from cash flows of the hedged item. Any hedge ineffectiveness is included in current-period net income. Changes in the fair value of a derivative that is considered highly effective, and that is designated as and qualifies as a foreign-currency hedge, are recorded either in current-period net income or in accumulated other comprehensive loss, depending on whether the hedging relationship satisfies the criteria for a fair-value or cash-flow hedge. Changes in the fair value of a derivative that is considered highly effective, and that is designated as a foreign-currency hedge of the net investment in a foreign subsidiary, are recorded in the accumulated foreign currency translation. Changes in the fair value of derivative instruments not designated as hedges are reported in current-period net income. | |
Monsanto formally and contemporaneously documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and its strategy for undertaking various hedge transactions. This includes linking all derivatives that are designated as fair-value, cash-flow or foreign-currency hedges either to specific assets and liabilities on the Statements of Consolidated Financial Position, or to firm commitments or forecasted transactions. Monsanto formally assesses a hedge at its inception and on an ongoing basis thereafter to determine whether the hedging relationship between the derivative and the hedged item is still highly effective, and whether it is expected to remain highly effective in future periods, in offsetting changes in fair value or cash flows. When derivatives cease to be highly effective hedges, Monsanto discontinues hedge accounting prospectively. |
NEW_ACCOUNTING_STANDARDS
NEW ACCOUNTING STANDARDS | 12 Months Ended |
Aug. 31, 2014 | |
NEW ACCOUNTING STANDARDS [Abstract] | ' |
NEW ACCOUNTING STANDARDS | ' |
NEW ACCOUNTING STANDARDS | |
In June 2014, the Financial Accounting Standards Board ("FASB") issued accounting guidance, "Compensation - Stock Compensation" which seeks to resolve the diversity in practice that exists when accounting for share-based payments. The new guidance requires a performance target that affects vesting and that could be achieved after the requisite service period to be treated as a performance condition. This standard is effective for fiscal years and interim periods within those years beginning after Dec. 15, 2015. Accordingly, Monsanto will adopt this standard in the first quarter of fiscal year 2017, with early adoption permitted. The guidance may be adopted either prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The company is currently evaluating the impact this guidance will have on the consolidated financial statements. | |
In May 2014, the FASB issued accounting guidance, "Revenue from Contracts with Customers." The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration (that is, payment) to which the company expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (for example, service revenue and contract modifications) and clarify guidance for multiple-element arrangements. Entities have the option to apply the new guidance under a retrospective approach to each prior reporting period presented or a modified retrospective approach with the cumulative effect of initially applying the new guidance recognized at the date of initial application within the Statement of Consolidated Financial Position. This standard is effective for fiscal years and interim periods within those years beginning after Dec. 15, 2016. Accordingly, Monsanto will adopt this standard in the first quarter of fiscal year 2018, with early adoption prohibited. The company is currently evaluating the impact this guidance will have on the consolidated financial statements. | |
In April 2014, the FASB issued accounting guidance, "Presentation of Financial Statements and Property, Plant, and Equipment." The new standard raises the threshold for a disposal transaction to qualify as a discontinued operation and requires additional disclosures about discontinued operations and disposals of individually significant components that do not qualify as discontinued operations. This standard is effective prospectively for all disposals of components that occur within annual periods beginning on or after Dec. 15, 2014, and interim periods within those years. Accordingly, Monsanto will adopt this standard in the first quarter of fiscal year 2016. Early adoption is permitted for new disposals (or new classifications as held for sale) that have not been reported in the financial statements previously. The company is currently evaluating the impact that this guidance will have on the consolidated financial statements. | |
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 effective U.S. GAAP does not provide explicit guidance on the topic. This new presentation guidance is effective prospectively for fiscal years, and interim periods within those years, beginning after Dec. 15, 2013, with early adoption permitted. 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, it will not have an effect on the company's consolidated financial statements. | |
In February 2013, the 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 22 - 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 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 with retrospective application for all balance sheet periods presented. See Note 16 - Financial Instruments - for additional disclosures. | |
In July 2012, the FASB issued amendments to the Intangibles-Goodwill and Other topic of the ASC. Prior to this amendment the company performed a two-step test as outlined by the ASC. Step one of the two-step indefinite-lived intangible asset impairment test is performed by calculating the fair value of the indefinite-lived intangible asset and comparing the fair value with its carrying amount. If the carrying amount of an indefinite-lived intangible asset exceeds its fair value, then the company is required to perform the second step of the impairment test to measure the amount of the impairment loss, if any. Under the amendment, an entity has the option to first assess qualitative factors to determine whether it is necessary to perform the current two-step test. If an entity believes, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of an indefinite-lived intangible asset is less than its carrying amount, the quantitative impairment test is required. Otherwise, no further testing is required. An entity can choose to perform the qualitative assessment on none, some or all of its indefinite-lived intangible assets. Moreover, an entity can bypass the qualitative assessment for any indefinite-lived intangible asset in any period and proceed directly to step one of the impairment test, and then resume performing the qualitative assessment in any subsequent period. The amendment is effective for annual and interim indefinite-lived intangible asset impairment tests performed for fiscal years beginning after Sept. 15, 2012. Accordingly, Monsanto adopted this amendment in fiscal year 2014 for the annual impairment test of indefinite-lived intangible assets. See Note 10 - Goodwill and Other Intangible Assets - for additional disclosures. |
BUSINESS_COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended | |||||
Aug. 31, 2014 | ||||||
Business Combinations [Abstract] | ' | |||||
BUSINESS COMBINATIONS | ' | |||||
BUSINESS COMBINATIONS AND COLLABORATIVE ARRANGEMENTS | ||||||
Business Combinations | ||||||
2014 Acquisition: 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 $18 million, of which $2 million were recorded in 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 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 | $ | 67 | ||||
Property, Plant & Equipment | 9 | |||||
Goodwill | 783 | |||||
Other Intangible Assets | 142 | |||||
Total Assets Acquired | 1,001 | |||||
Current Liabilities | 10 | |||||
Other Liabilities | 59 | |||||
Total Liabilities Assumed | 69 | |||||
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 | $ | 138 | ||
Customer Relationships | 1 | 1 | 4 | |||
Other Intangible Assets | $ | 142 | ||||
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. There have been no significant changes to the purchase price allocations. | ||||||
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. | ||||||
2012 Acquisitions: In June 2012, Monsanto acquired 100 percent of the outstanding stock of Precision Planting, Inc., a planting technology developer based in Tremont, Illinois. Precision Planting develops technology to improve yields through on-farm planting performance. The acquisition of this company has become part of Monsanto’s precision agricultural business, which utilizes advanced agronomic practices, seed genetics and innovative on-farm technology to deliver optimal yield to farmers while using fewer resources. Acquisition costs incurred in fiscal year 2012 were less than $1 million and were classified as selling, general and administrative expenses in the Statements of Consolidated Operations. The acquisition of Precision Planting qualifies as a business under the Business Combinations topic of the ASC. The total fair value of the acquisition was $255 million and the total cash paid for the acquisition was $209 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 deductible for tax purposes. | ||||||
In September 2011, Monsanto acquired 100 percent of the outstanding stock of Beeologics, a technology start-up business based in Israel, which researches and develops biological tools to provide targeted control of pests and diseases. The acquisition of the company, which qualifies as a business under the Business Combinations topic of the ASC, will allow Monsanto to further explore the use of biologicals broadly in agriculture to provide farmers with innovative approaches to the challenges they face. Monsanto intends to use the base technology from Beeologics as a part of its continuing discovery and development pipeline. Acquisition costs were approximately $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 $113 million (net of cash acquired), and it 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 fiscal year 2012 acquisitions described above, the business operations and employees of the acquired entities were included in the Seeds and Genomics segment results upon acquisition. There have been no significant changes to the purchase price allocations. | ||||||
Pro forma information related to the 2012 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. | ||||||
Collaborative Arrangements | ||||||
In the normal course of business, Monsanto enters into collaborative arrangements for the research, development, manufacture and/or commercialization of agricultural products. Collaborative arrangements are contractual agreements with third parties that involve a joint operating activity, such as research and development and commercialization of a collaboration product, where both Monsanto and the third party are active participants in the activities of the collaboration and are exposed to significant risks and rewards of the collaboration. These collaborations generally include cost sharing and profit sharing. Monsanto's collaboration agreements are performed with no guarantee of either technological or commercial success. The company's significant arrangements are discussed below. | ||||||
Monsanto has entered into various multi-year research, development, manufacturing and commercialization collaborations related to various activities including plant biotechnology and microbial solutions. Under these collaborations, Monsanto and the third parties participate in the R&D and/or manufacturing activities and Monsanto has the primary responsibility for the commercialization of the collaboration products. The collaborations are accounted for in accordance with the Collaborative Arrangements topic of the ASC. | ||||||
For the year ended Aug. 31, 2014, Monsanto expensed royalties, purchases and profit sharing payments to third parties under collaborative agreements in the amount of $22 million. These amounts were classified as cost of goods sold on the Statements of Consolidated Operations. There were no expensed royalties, purchases or profit sharing payments to third parties under collaborative agreements for the years ended Aug. 31, 2013, and Aug. 31, 2012. For the year ended Aug. 31, 2014, Aug. 31, 2013, and Aug. 31, 2012, Monsanto recorded a net R&D reimbursement from third parties under collaboration agreements in the amounts of $32 million, $48 million and $48 million, respectively. These amounts were classified as a reduction to research and development expenses on the Statements of Consolidated Operations. |
RECEIVABLES
RECEIVABLES | 12 Months Ended | |||
Aug. 31, 2014 | ||||
Receivables [Abstract] | ' | |||
RECEIVABLES | ' | |||
RECEIVABLES | ||||
The following table displays a roll forward of the allowance for doubtful trade receivables for fiscal years 2012, 2013 and 2014. | ||||
(Dollars in millions) | ||||
Balance Aug. 31, 2011 | $ | 98 | ||
Additions — charged to expense | 14 | |||
Other(1) | (48 | ) | ||
Balance Aug. 31, 2012 | $ | 64 | ||
Additions — charged to expense | 32 | |||
Other(1) | (28 | ) | ||
Balance Aug. 31, 2013 | $ | 68 | ||
Additions — charged to expense | 44 | |||
Other(1) | (40 | ) | ||
Balance Aug. 31, 2014 | $ | 72 | ||
(1) | Includes reclassifications to long-term, write-offs, recoveries and foreign currency translation adjustments. | |||
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 $136 million and $112 million with a corresponding allowance for credit losses on these receivables of $125 million and $104 million, as of Aug. 31, 2014, 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 for fiscal years 2012, 2013 and 2014. | ||||
(Dollars in millions) | ||||
Balance Aug. 31, 2011 | $ | 213 | ||
Incremental Provision | 3 | |||
Recoveries | (14 | ) | ||
Write-Offs | (54 | ) | ||
Other(1) | (7 | ) | ||
Balance Aug. 31, 2012 | $ | 141 | ||
Incremental Provision | 7 | |||
Recoveries | (1 | ) | ||
Write-Offs | (47 | ) | ||
Other(1) | 4 | |||
Balance Aug. 31, 2013 | $ | 104 | ||
Incremental Provision | 11 | |||
Recoveries | (4 | ) | ||
Write-Offs | (15 | ) | ||
Other(1) | 29 | |||
Balance Aug. 31, 2014 | $ | 125 | ||
(1) | Includes reclassifications from the allowance for 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 $81 million and $229 million, as of Aug. 31, 2014, 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. These receivables were first recorded at their then net present value of future cash flows. Interest accretion is recorded within interest income in the Statements of Consolidated Operations to bring the receivables to the full realizable payment amount. | ||||
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. |
CUSTOMER_FINANCING_PROGRAMS
CUSTOMER FINANCING PROGRAMS | 12 Months Ended | |||||||||
Aug. 31, 2014 | ||||||||||
CUSTOMER FINANCING PROGRAMS [Abstract] | ' | |||||||||
CUSTOMER FINANCING PROGRAMS | ' | |||||||||
CUSTOMER FINANCING PROGRAMS | ||||||||||
Monsanto participates in customer financing programs as follows: | ||||||||||
As of Aug. 31, | ||||||||||
(Dollars in millions) | 2014 | 2013 | ||||||||
Transactions that Qualify for Sales Treatment | ||||||||||
U.S. agreement to sell trade receivables(1) | ||||||||||
Outstanding balance | $ | 436 | $ | 348 | ||||||
Maximum future payout under recourse provisions | 21 | 19 | ||||||||
European and Latin American agreements to sell trade receivables(2) | ||||||||||
Outstanding balance | $ | 67 | $ | 44 | ||||||
Maximum future payout under recourse provisions | 34 | 41 | ||||||||
Agreements with Lenders(3) | ||||||||||
Outstanding balance | $ | 71 | $ | 45 | ||||||
Maximum future payout under the guarantee | 51 | 32 | ||||||||
The gross amount of receivables sold under transactions that qualify for sales treatment was: | ||||||||||
Gross Amount of Receivables Sold | ||||||||||
Year Ended Aug. 31, | ||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | |||||||
Transactions that Qualify for Sales Treatment | ||||||||||
U.S. agreement to sell trade receivables(1) | $ | 457 | $ | 349 | $ | 506 | ||||
European and Latin American agreements to sell trade receivables(2) | 78 | 16 | 62 | |||||||
(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 $450 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. Credit losses above our investment would be covered by senior interests in the entity by a reduction in the fair value of their mandatorily redeemable shares. 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 7 - Variable Interest Entities. | ||||||||||
There were no significant recourse or non-recourse liabilities for all programs as of Aug. 31, 2014, and Aug. 31, 2013. There were no significant delinquent loans for all programs as of Aug. 31, 2014, and Aug. 31, 2013. |
VARIABLE_INTEREST_ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Aug. 31, 2014 | |
VARIABLE INTEREST ENTITIES [Abstract] | ' |
VARIABLE INTEREST ENTITIES | ' |
VARIABLE INTEREST ENTITIES | |
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 has 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 Aug. 31, 2014, and Aug. 31, 2013, and Monsanto holds the remaining nine percent interest. The senior interests held by third parties are mandatorily redeemable shares and are included in short-term debt on the Statements of Consolidated of Financial Position. | |
Under the arrangement, Monsanto is required to maintain an investment in the VIE of at least nine percent and could be required to provide additional contributions to the VIE. Monsanto currently has no unfunded commitments to the VIE. See Note 6 - 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. As of Aug. 31, 2014, Monsanto's maximum exposure to loss was $13 million. As of Aug. 31, 2013, Monsanto had no exposure to loss. | |
Monsanto has entered into several agreements with third parties to establish entities to focus on research and development related to various activities including agricultural fungicides and biologicals for agricultural applications. All such entities are recorded as consolidated VIEs of Monsanto. Under each of the arrangements, Monsanto holds call options to acquire the majority of the equity interests in each VIE from the third party owners. Monsanto will fund the operations of the VIEs in return for either additional equity interests or to retain the call options. The funding, which may total up to $108 million, will be provided in separate research phases if research milestones are met over the next several years. The VIEs were established to perform agricultural-based research and development activities for the benefit of Monsanto, and Monsanto provides all funding of the VIEs' activities. Further, Monsanto has the power to direct the activities most significant to the VIEs. As a result, Monsanto is the primary beneficiary of the VIEs and the VIEs have been consolidated in Monsanto's consolidated financial statements. Monsanto's maximum exposure to loss was $43 million and $11 million as of Aug. 31, 2014, and Aug. 31, 2013, respectively, which includes our current investment in the VIEs, the funding required to be provided to the VIEs during the research phases and/or the initial consideration paid related to the call options. The third party owners of the VIEs do not have recourse to the general assets of Monsanto beyond Monsanto's maximum exposure to loss at any given time relating to the VIE. |
INVENTORY
INVENTORY | 12 Months Ended | ||||||
Aug. 31, 2014 | |||||||
Inventory Disclosure [Abstract] | ' | ||||||
INVENTORY | ' | ||||||
INVENTORY | |||||||
Components of inventory are: | |||||||
As of Aug. 31, | |||||||
(Dollars in millions) | 2014 | 2013 | |||||
Finished Goods | $ | 1,591 | $ | 1,079 | |||
Goods In Process | 1,721 | 1,619 | |||||
Raw Materials and Supplies | 445 | 418 | |||||
Inventory at FIFO Cost | 3,757 | 3,116 | |||||
Excess of FIFO over LIFO Cost | (160 | ) | (169 | ) | |||
Total | $ | 3,597 | $ | 2,947 | |||
The decrease in the excess of FIFO over LIFO cost is primarily the result of favorable manufacturing costs. During fiscal years 2014 and 2013, inventory quantities increased, with no liquidation of existing LIFO inventory layers. | |||||||
Inventory obsolescence reserves are utilized as valuation accounts and effectively establish a new cost basis. The following table displays a roll forward of the inventory obsolescence reserve for fiscal years 2012, 2013 and 2014. | |||||||
(Dollars in millions) | |||||||
Balance Aug. 31, 2011 | $ | 338 | |||||
Additions — charged to expense | 266 | ||||||
Deductions and other(1) | (243 | ) | |||||
Balance Aug. 31, 2012 | $ | 361 | |||||
Additions — charged to expense | 336 | ||||||
Deductions and other(1) | (289 | ) | |||||
Balance Aug. 31, 2013 | $ | 408 | |||||
Additions — charged to expense | 331 | ||||||
Deductions and other(1) | (324 | ) | |||||
Balance Aug. 31, 2014 | $ | 415 | |||||
(1) | Deductions and other includes disposals and foreign currency translation adjustments. |
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended | ||||||
Aug. 31, 2014 | |||||||
Property, Plant and Equipment [Abstract] | ' | ||||||
PROPERTY, PLANT AND EQUIPMENT | ' | ||||||
PROPERTY, PLANT AND EQUIPMENT | |||||||
Components of property, plant and equipment were as follows: | |||||||
As of Aug. 31, | |||||||
(Dollars in millions) | 2014 | 2013 | |||||
Land and Improvements | $ | 611 | $ | 577 | |||
Buildings and Improvements | 2,122 | 1,979 | |||||
Machinery and Equipment | 5,676 | 5,357 | |||||
Computer Software | 779 | 705 | |||||
Construction In Progress and Other | 1,169 | 873 | |||||
Total Property, Plant and Equipment | 10,357 | 9,491 | |||||
Less: Accumulated Depreciation | 5,275 | 4,837 | |||||
Property, Plant and Equipment, Net | $ | 5,082 | $ | 4,654 | |||
Gross assets acquired under capital leases of $42 million and $38 million are included primarily in machinery and equipment as of Aug. 31, 2014, and Aug. 31, 2013, respectively. See Note 14 - Debt and Other Credit Arrangements - and Note 25 - Commitments and Contingencies - for related capital lease obligations. |
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended | |||||||||||||||||||||||
Aug. 31, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLES ASSETS | ' | |||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ||||||||||||||||||||||||
The fiscal year 2014 and 2013 annual goodwill impairment tests were performed as of Mar. 1, 2014, and 2013, respectively, and no indications of goodwill impairment existed as of either date. Goodwill is tested for impairment at least annually, or more frequently if events or circumstances indicate a potential impairment. There were no events or changes in circumstances indicating that goodwill might be impaired as of Aug. 31, 2014. As of fiscal year 2014, accumulated goodwill impairment charges since the adoption of FASB Statement No. 142, Goodwill and Other Intangible Assets (codified in ASC 350) in 2002 were $2 billion. The charges related to Seeds and Genomics and were primarily a result of a change in the valuation method (from an undiscounted cash flow methodology to a discounted cash flow methodology) upon adoption of ASC 350 as well as unanticipated delays in biotechnology acceptance and regulatory approvals. | ||||||||||||||||||||||||
Changes in the net carrying amount of goodwill for fiscal years 2013 and 2014, by segment, are as follows: | ||||||||||||||||||||||||
(Dollars in millions) | Seeds and | Agricultural | Total | |||||||||||||||||||||
Genomics | Productivity | |||||||||||||||||||||||
Balance Aug. 31, 2012 | $ | 3,378 | $ | 57 | $ | 3,435 | ||||||||||||||||||
Acquisition activity (see Note 4) | 110 | — | 110 | |||||||||||||||||||||
Effect of foreign currency translation adjustments | (27 | ) | 2 | (25 | ) | |||||||||||||||||||
Balance Aug. 31, 2013 | $ | 3,461 | $ | 59 | $ | 3,520 | ||||||||||||||||||
Acquisition activity (see Note 4) | 783 | — | 783 | |||||||||||||||||||||
Effect of foreign currency translation adjustments | 18 | (2 | ) | 16 | ||||||||||||||||||||
Balance Aug. 31, 2014 | $ | 4,262 | $ | 57 | $ | 4,319 | ||||||||||||||||||
In fiscal year 2014, goodwill increased due to the acquisition of The Climate Corporation. See Note 4 - Business Combinations and Collaborative Arrangements - for further information. | ||||||||||||||||||||||||
Information regarding the company’s other intangible assets is as follows: | ||||||||||||||||||||||||
As of Aug. 31, 2014 | As of Aug. 31, 2013 | |||||||||||||||||||||||
(Dollars in millions) | Carrying | Accumulated | Net | Carrying | Accumulated | Net | ||||||||||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||||||||||||
Acquired Germplasm | $ | 1,116 | $ | (751 | ) | $ | 365 | $ | 1,113 | $ | (717 | ) | $ | 396 | ||||||||||
Acquired Intellectual Property | 1,160 | (507 | ) | 653 | 1,095 | (791 | ) | 304 | ||||||||||||||||
Trademarks | 366 | (142 | ) | 224 | 341 | (131 | ) | 210 | ||||||||||||||||
Customer Relationships | 338 | (204 | ) | 134 | 306 | (179 | ) | 127 | ||||||||||||||||
Other | 181 | (106 | ) | 75 | 177 | (91 | ) | 86 | ||||||||||||||||
Total Other Intangible Assets, Finite Lives | $ | 3,161 | $ | (1,710 | ) | $ | 1,451 | $ | 3,032 | $ | (1,909 | ) | $ | 1,123 | ||||||||||
In Process Research & Development, Indefinite Lives | 103 | — | 103 | 103 | — | 103 | ||||||||||||||||||
Total Other Intangible Assets | $ | 3,264 | $ | (1,710 | ) | $ | 1,554 | $ | 3,135 | $ | (1,909 | ) | $ | 1,226 | ||||||||||
The increase in total other intangible assets, net during fiscal year 2014 is primarily related to the acquisition of The Climate Corporation and the collaborative arrangements described in Note 4 - Business Combinations and Collaborative Arrangements. This was partially offset by identified intangible impairments described in Note 15 - Fair Value Measurements. | ||||||||||||||||||||||||
Total amortization expense of total other intangible assets was $136 million in fiscal year 2014, $111 million in fiscal year 2013 and $124 million in fiscal year 2012. | ||||||||||||||||||||||||
The estimated intangible asset amortization expense for each of the five succeeding fiscal years is as follows: | ||||||||||||||||||||||||
(Dollars in millions) | Amount | |||||||||||||||||||||||
2015 | $ | 157 | ||||||||||||||||||||||
2016 | 182 | |||||||||||||||||||||||
2017 | 171 | |||||||||||||||||||||||
2018 | 132 | |||||||||||||||||||||||
2019 | 133 | |||||||||||||||||||||||
INVESTMENTS_AND_EQUITY_AFFILIA
INVESTMENTS AND EQUITY AFFILIATES | 12 Months Ended |
Aug. 31, 2014 | |
Equity Method Investments and Joint Ventures [Abstract] | ' |
INVESTMENTS AND EQUITY AFFILIATES | ' |
INVESTMENTS | |
Investments | |
As of Aug. 31, 2014, and Aug. 31, 2013, Monsanto has short-term investments outstanding of $40 million and $254 million, respectively. The investments are comprised of commercial paper with original maturities of one year or less. See Note 15 - Fair Value Measurements. | |
Monsanto has investments in long-term equity securities, which are considered available-for-sale. As of both Aug. 31, 2014, 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 $22 million. See Note 22 — Accumulated Other Comprehensive Loss. | |
Monsanto has cost basis investments recorded in other assets in the Statements of Consolidated Financial Position. As of Aug. 31, 2014, and Aug. 31, 2013, these investments were recorded at $91 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 in fiscal years 2014, 2013 and 2012. |
DEFERRED_REVENUE
DEFERRED REVENUE | 12 Months Ended |
Aug. 31, 2014 | |
Deferred Revenue [Abstract] | ' |
DEFERRED REVENUE | ' |
DEFERRED REVENUE | |
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 $79 million related to this agreement was recorded in each of the fiscal years 2014, 2013 and 2012. As of Aug. 31, 2014, and Aug. 31, 2013, the remaining receivable balance is $149 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 Aug. 31, 2014, and Aug. 31, 2013, the remaining deferred revenue balance is $79 million and $159 million, respectively, of which $79 million is included in short-term deferred revenue in both periods. | |
In 2008, Monsanto and Syngenta entered into a Roundup Ready 2 Yield Soybean License Agreement which grants Syngenta access to Monsanto’s 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 $30 million, $23 million and $6 million related to this agreement was recorded in fiscal years 2014, 2013 and 2012, respectively. As of Aug. 31, 2014, and Aug. 31, 2013, the remaining receivable balance is $42 million and $58 million, respectively, of which $30 million and $21 million is current and is included in trade receivables, net, respectively. The remaining balance is included in long-term receivables, net in the Statements of Consolidated Financial Position. As of Aug. 31, 2014, and Aug. 31, 2013, the remaining deferred revenue balance is $11 million and $34 million, respectively, of which $11 million and $24 million is included in short-term deferred revenue. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||||||
Aug. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
INCOME TAXES | ' | |||||||||||
INCOME TAXES | ||||||||||||
The components of income from continuing operations before income taxes were: | ||||||||||||
Year Ended Aug. 31, | ||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | |||||||||
United States | $ | 2,436 | $ | 2,385 | $ | 1,954 | ||||||
Outside United States | 1,391 | 1,044 | 1,034 | |||||||||
Total | $ | 3,827 | $ | 3,429 | $ | 2,988 | ||||||
The components of income tax provision from continuing operations were: | ||||||||||||
Year Ended Aug. 31, | ||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | |||||||||
Current: | ||||||||||||
U.S. federal | $ | 648 | $ | 432 | $ | 301 | ||||||
U.S. state | 65 | 52 | 49 | |||||||||
Outside United States | 410 | 305 | 310 | |||||||||
Total Current | $ | 1,123 | $ | 789 | $ | 660 | ||||||
Deferred: | ||||||||||||
U.S. federal | 41 | 159 | 252 | |||||||||
U.S. state | (2 | ) | 1 | 15 | ||||||||
Outside United States | (84 | ) | (34 | ) | (26 | ) | ||||||
Total Deferred | (45 | ) | 126 | 241 | ||||||||
Total | $ | 1,078 | $ | 915 | $ | 901 | ||||||
Factors causing Monsanto’s income tax provision from continuing operations to differ from the U.S. federal statutory rate were: | ||||||||||||
Year Ended Aug. 31, | ||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | |||||||||
U.S. Federal Statutory Rate | $ | 1,339 | $ | 1,200 | $ | 1,046 | ||||||
U.S. Domestic Manufacturing Deduction | (75 | ) | (68 | ) | (67 | ) | ||||||
U.S. R&D Tax Credit | (12 | ) | (43 | ) | (15 | ) | ||||||
U.S. State Income Taxes | 45 | 43 | 42 | |||||||||
Lower Taxes on Foreign Operations | (230 | ) | (78 | ) | (67 | ) | ||||||
Valuation Allowances | 12 | — | 12 | |||||||||
Adjustment for Unrecognized Tax Benefits | (8 | ) | (110 | ) | (59 | ) | ||||||
Other | 7 | (29 | ) | 9 | ||||||||
Income Tax Provision | $ | 1,078 | $ | 915 | $ | 901 | ||||||
Deferred income tax balances are related to: | ||||||||||||
As of Aug. 31, | ||||||||||||
(Dollars in millions) | 2014 | 2013 | ||||||||||
Net Operating Loss and Other Carryforwards | $ | 443 | $ | 455 | ||||||||
Employee Fringe Benefits | 259 | 335 | ||||||||||
Restructuring and Impairment Reserves | 135 | 130 | ||||||||||
Royalties | 129 | 95 | ||||||||||
Inventories | 106 | 137 | ||||||||||
Intangibles | 74 | 71 | ||||||||||
Allowance for Doubtful Accounts | 70 | 46 | ||||||||||
Environmental and Litigation Reserves | 69 | 99 | ||||||||||
Other | 350 | 239 | ||||||||||
Valuation Allowance | (63 | ) | (47 | ) | ||||||||
Total Deferred Tax Assets | $ | 1,572 | $ | 1,560 | ||||||||
Property, Plant and Equipment | 585 | 571 | ||||||||||
Intangibles | 400 | 403 | ||||||||||
Other | 81 | 60 | ||||||||||
Total Deferred Tax Liabilities | 1,066 | 1,034 | ||||||||||
Net Deferred Tax Assets | $ | 506 | $ | 526 | ||||||||
As of Aug. 31, 2014, Monsanto had available approximately $1 billion in net operating loss carryforwards (NOLs), most of which related to Brazilian operations, which have an indefinite carryforward period. Management regularly assesses the likelihood that deferred tax assets will be recovered from future taxable income. To the extent management believes that it is more likely than not that a deferred tax asset will not be realized, a valuation allowance is established. As of Aug. 31, 2014, management continues to believe it is more likely than not that the company will realize the deferred tax assets in Brazil. | ||||||||||||
Income taxes and remittance taxes have not been recorded on approximately $4.4 billion of undistributed earnings of foreign operations of Monsanto, because Monsanto intends to reinvest those earnings indefinitely. It is not practicable to estimate the income tax liability that might be incurred if such earnings were remitted to the United States. | ||||||||||||
Tax authorities regularly examine the company’s returns in the jurisdictions in which Monsanto does business. Due to the nature of the examinations, it may take several years before they are completed. Management regularly assesses the tax risk of the company’s return filing positions for all open years. During fiscal years 2013 and 2012, Monsanto recorded favorable adjustments to the income tax provision as a result of the resolution of various domestic and foreign income tax matters. | ||||||||||||
As of Aug. 31, 2014, Monsanto had total unrecognized tax benefits of $152 million, of which $102 million would favorably impact the effective tax rate if recognized. As of Aug. 31, 2013, Monsanto had total unrecognized tax benefits of $167 million, of which $116 million would favorably impact the effective tax rate if recognized. | ||||||||||||
Accrued interest and penalties included in other liabilities in the Statements of Consolidated Financial Position were $38 million and $37 million as of Aug. 31, 2014, and Aug. 31, 2013, respectively. Monsanto recognizes accrued interest and penalties related to unrecognized tax benefits as a component of income tax provision within the Statements of Consolidated Operations. For the 12 months ended Aug. 31, 2014, the company recognized $4 million of income tax expense for interest and penalties. For the 12 months ended Aug. 31, 2013, the company recognized $10 million of income tax benefit for interest and penalties. For the 12 months ending Aug. 31, 2012, the company recognized less than $1 million of income tax expense for interest and penalties. | ||||||||||||
A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows: | ||||||||||||
(Dollars in millions) | 2014 | 2013 | ||||||||||
Balance Sept. 1 | $ | 167 | $ | 288 | ||||||||
Increases for prior year tax positions | 13 | 14 | ||||||||||
Decreases for prior year tax positions | (16 | ) | (118 | ) | ||||||||
Increases for current year tax positions | 5 | 14 | ||||||||||
Settlements | (1 | ) | (4 | ) | ||||||||
Lapse of statute of limitations | (14 | ) | (23 | ) | ||||||||
Foreign currency translation | (2 | ) | (4 | ) | ||||||||
Balance Aug. 31 | $ | 152 | $ | 167 | ||||||||
Monsanto operates in various countries throughout the world and, as a result, files income tax returns in numerous jurisdictions. These tax returns are subject to examination by various federal, state and local tax authorities. For Monsanto’s major tax jurisdictions, the tax years that remain subject to examination are shown below: | ||||||||||||
Jurisdiction | ||||||||||||
U.S. federal income tax | 2011-2014 | |||||||||||
U.S. state and local income taxes | 2000-2014 | |||||||||||
Argentina | 2001-2014 | |||||||||||
Brazil | 2002-2014 | |||||||||||
If the company’s assessment of unrecognized tax benefits is not representative of actual outcomes, the company’s consolidated financial statements could be significantly impacted in the period of settlement or when the statute of limitations expires. Management estimates that it is reasonably possible that the total amount of uncertain tax benefits could decrease by as much as $50 million within the next 12 months, primarily as a result of the resolution of audits currently in progress in several jurisdictions involving issues common to large multinational corporations, and the lapsing of the statute of limitations in multiple jurisdictions. |
DEBT_AND_OTHER_CREDIT_ARRANGEM
DEBT AND OTHER CREDIT ARRANGEMENTS | 12 Months Ended | |||||||||||
Aug. 31, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||
DEBT AND OTHER CREDIT ARRANGEMENTS | ' | |||||||||||
DEBT AND OTHER CREDIT ARRANGEMENTS | ||||||||||||
Monsanto has a $2 billion credit facility agreement with a group of banks that provides a senior unsecured revolving credit facility through Apr. 1, 2016. This facility was initiated to be used for general corporate purposes, which may include working capital requirements, acquisitions, capital expenditures, refinancing and support of commercial paper borrowings. The agreement also provides for European euro-denominated loans, letters of credit and swingline borrowings, and allows Monsanto to designate certain subsidiaries to borrow with a company guarantee. Covenants under this credit facility restrict maximum borrowings. There are no compensating balances, but the facility is subject to various fees, which are based on the company’s credit ratings. As of Aug. 31, 2014, Monsanto was in compliance with all debt covenants, and there were no outstanding borrowings under this credit facility. Subsequent to Aug. 31, 2014, Monsanto requested an increase in the overall borrowing limit pursuant to a provision in the credit agreement that allowed Monsanto to do so, and effective Sept. 30, 2014, the limit was increased to $2.5 billion. | ||||||||||||
Short-Term Debt | ||||||||||||
As of Aug. 31, | ||||||||||||
(Dollars in millions) | 2014 | 2013 | ||||||||||
Current Portion of Long-Term Debt | $ | 12 | $ | 11 | ||||||||
Mandatorily Redeemable Shares of VIE | 136 | — | ||||||||||
Notes Payable to Banks | 85 | 40 | ||||||||||
Total Short-Term Debt | $ | 233 | $ | 51 | ||||||||
The fair value of total short-term debt was $233 million and $51 million as of Aug. 31, 2014, and Aug. 31, 2013, respectively. The interest rate on the mandatorily redeemable shares of a VIE is a variable rate. See Note 15 - Fair Value Measurements - for additional information regarding mandatorily redeemable shares of a VIE. The weighted average interest rate on notes payable to banks was nine percent and seven percent as of Aug. 31, 2014, and Aug. 31, 2013, respectively. | ||||||||||||
As of Aug. 31, 2014, the company did not have any outstanding commercial paper, but it had short-term borrowings to support ex-U.S. operations throughout the year, which had weighted-average interest rates as indicated above. | ||||||||||||
Long-Term Debt | ||||||||||||
As of Aug. 31, | ||||||||||||
(Dollars in millions) | 2014 | 2013 | ||||||||||
Floating Rate Senior Notes, Due 2016(1) | $ | 400 | $ | — | ||||||||
2.750% Senior Notes, Due 2016(1) | 300 | 300 | ||||||||||
1.150% Senior Notes, Due 2017(1) | 500 | — | ||||||||||
5.125% Senior Notes, Due 2018(1) | 300 | 300 | ||||||||||
1.850% Senior Notes, Due 2018(1) | 300 | — | ||||||||||
2.125% Senior Notes, Due 2019(1) | 500 | — | ||||||||||
2.750% Senior Notes, Due 2021(1) | 499 | — | ||||||||||
2.200% Senior Notes, Due 2022(1) | 250 | 250 | ||||||||||
3.375% Senior Notes, Due 2024(1) | 750 | — | ||||||||||
5.500% Senior Notes, Due 2025(1) | 285 | 282 | ||||||||||
4.200% Senior Notes, Due 2034(1) | 497 | — | ||||||||||
5.500% Senior Notes, Due 2035(1) | 395 | 395 | ||||||||||
5.875% Senior Notes, Due 2038(1) | 247 | 247 | ||||||||||
3.600% Senior Notes, Due 2042(1) | 250 | 250 | ||||||||||
4.650% Senior Notes, Due 2043(1) | 300 | — | ||||||||||
4.400% Senior Notes, Due 2044(1) | 992 | — | ||||||||||
4.700% Senior Notes, Due 2064(1) | 743 | — | ||||||||||
Other (including Capital Leases) | 20 | 37 | ||||||||||
Total Long-Term Debt | $ | 7,528 | $ | 2,061 | ||||||||
(1) | Amounts are net of unamortized discounts. For the 5.500% Senior Notes due 2025, amount is net of the unamortized premium of $30 million and $32 million as of Aug. 31, 2014, and Aug. 31, 2013, respectively. | |||||||||||
The fair value of total long-term debt was $7,928 million and $2,231 million as of Aug. 31, 2014, and Aug. 31, 2013, respectively. | ||||||||||||
In July 2014, Monsanto issued $500 million of 1.15% Senior Notes due in 2017, $500 million of 2.125% Senior Notes due in 2019, $500 million of 2.75% Senior Notes due in 2021, $750 million of 3.375% Senior Notes due in 2024, $500 million of 4.20% Senior Notes due in 2034, $1 billion of 4.40% Senior Notes due in 2044 and $750 million of 4.70% Senior Notes due in 2064. All notes were issued under the 2014 shelf registration. The net proceeds from the July 2014 issuance were used to purchase treasury shares pursuant to the accelerated share repurchase agreements disclosed in Note 21 - Capital Stock. | ||||||||||||
In November 2013, Monsanto issued $400 million of Floating Rate Senior Notes due in 2016, $300 million of 1.85% Senior Notes due in 2018, and $300 million of 4.65% Senior Notes due in 2043. All notes were issued under the 2011 shelf registration. The net proceeds from the November 2013 issuance were used for the acquisition of The Climate Corporation and general corporate purposes. | ||||||||||||
The information regarding interest expense below reflects Monsanto’s interest expense on debt, mandatorily redeemable shares, customer financing and the amortization of debt issuance costs and interest rate swaps: | ||||||||||||
Year Ended Aug. 31, | ||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | |||||||||
Interest Cost Incurred | $ | 275 | $ | 195 | $ | 212 | ||||||
Less: Capitalized on Construction | 27 | 23 | 21 | |||||||||
Interest Expense | $ | 248 | $ | 172 | $ | 191 | ||||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | ||||||||||||
Aug. 31, 2014 | |||||||||||||
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. | |||||||||||||
Level 1 — Values based on unadjusted quoted market prices in active markets that are accessible at the measurement date for identical assets and 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 other 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 disclosed at fair value on a recurring basis as of Aug. 31, 2014, 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 Aug. 31, 2014, Using | |||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Net | |||||||||
Balance | |||||||||||||
Assets at Fair Value: | |||||||||||||
Cash equivalents | $ | 1,664 | $ | — | $ | — | $ | 1,664 | |||||
Short-term investments | 40 | — | — | 40 | |||||||||
Equity securities | 22 | — | — | 22 | |||||||||
Derivative assets related to: | |||||||||||||
Foreign currency | — | 11 | — | 11 | |||||||||
Commodity contracts | 20 | 16 | — | 36 | |||||||||
Total Assets at Fair Value | $ | 1,746 | $ | 27 | $ | — | $ | 1,773 | |||||
Liabilities at Fair Value: | |||||||||||||
Derivative liabilities related to: | |||||||||||||
Foreign currency | — | 19 | — | 19 | |||||||||
Commodity contracts | 76 | 15 | — | 91 | |||||||||
Short-term debt instruments | — | 97 | 136 | 233 | |||||||||
Long-term debt instruments(1) | — | 7,928 | — | 7,928 | |||||||||
Total Liabilities at Fair Value | $ | 76 | $ | 8,059 | $ | 136 | $ | 8,271 | |||||
(1) | 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 | Net | |||||||||
Balance | |||||||||||||
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 | — | 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 | — | 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 instruments(1) | $ | — | $ | 51 | $ | — | $ | 51 | |||||
Long-term debt instruments(1) | — | 2,231 | — | 2,231 | |||||||||
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 option 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 portion 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 Operations 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 carrying value of cash represents fair value as it consists of actual currency, and is classified as Level 1. | |||||||||||||
Short-term debt instruments is inclusive of current portion of long-term debt, mandatorily redeemable shares, and notes payable to banks. Current portion of long-term debt and notes payables to banks are recorded at amortized cost in the Statements of Consolidated Financial Position, which approximated fair value. Mandatorily redeemable shares are recorded in the Statement of Consolidated Financial Position at fair value, which represents the amount of cash that the consolidated variable interest entity would pay if settlement occurred as of Aug. 31, 2014. Fair value of the mandatorily redeemable shares of the variable interest entity is calculated using observable and unobservable inputs from an interest rate market in Brazil and stated contractual terms (a Level 3 measurement). See Note 14 - Debt and Other Credit Arrangements - for additional disclosures. | |||||||||||||
Long-term debt fair value was determined based on current market yields for Monsanto's debt traded in the secondary market. | |||||||||||||
The company’s contingent consideration relates to the Precision Planting acquisition and was measured at fair value using a combination of the probability weighted method and the income approach using market price of risk. This fair value amount is reflected as a component of miscellaneous short-term accruals in the Statements of Consolidated Financial Position. The fair value was principally based on unobservable inputs (a Level 3 measurement) consisting mainly of the amount of future cash flows adjusted for probabilities associated with meeting certain operational and financial milestones and discounted at the appropriate market rate. | |||||||||||||
For the periods ended Aug. 31, 2014, and Aug. 31, 2013, 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 for the years ended Aug. 31, 2014, and Aug. 31, 2013. The following table summarizes the change in fair value of the Level 3 liabilities for the year ended Aug. 31, 2014. | |||||||||||||
(Dollars in millions) | |||||||||||||
Balance Aug. 31, 2013 | $ | 40 | |||||||||||
Recognition of redeemable shares of VIE(1) | 134 | ||||||||||||
Gain included in earnings | 14 | ||||||||||||
Settlement | (54 | ) | |||||||||||
Effect of foreign currency translation adjustments | 2 | ||||||||||||
Balance Aug. 31, 2014 | $ | 136 | |||||||||||
(1) | Includes 300,000 mandatorily redeemable shares outstanding with a par value of $447. | ||||||||||||
There were no significant measurements of liabilities to their implied fair value on a nonrecurring basis during fiscal years 2014, 2013 and 2012. | |||||||||||||
There were no significant measurements of assets to their implied fair value on a nonrecurring basis during fiscal year 2013. Significant measurements during fiscal years 2014 and 2012 of assets to their implied fair value on a nonrecurring basis were as follows: | |||||||||||||
Property, Plant and Equipment Net: In fiscal year 2014, property, plant and equipment within the Seeds and Genomics segment with a net book value of $27 million was written down to its implied fair value of $4 million, resulting in an impairment charge of $23 million, with $11 million included in cost of goods sold, $8 million included in research and development expense, and $5 million included in selling, general and administrative expenses in the Statements of Consolidated Operations. The implied fair value calculations were performed using a discounted cash flow model (a Level 3 measurement). | |||||||||||||
Other Intangible Assets, Net: In fiscal year 2014, other intangible assets within the Seeds and Genomics segment with a net book value of $40 million were written down to their implied fair value of $20 million, resulting in an impairment charge of $20 million, with $19 million included in cost of goods sold and $1 million included in research and development expenses in the Statements of Consolidated Operations. The implied fair value calculations were performed using a discounted cash flow model (a Level 3 measurement). | |||||||||||||
In fiscal year 2012, other intangible assets within the Seeds and Genomics segment with a net book value of $95 million were written down to their implied fair value of $15 million, resulting in an impairment charge of $80 million, with $6 million included in cost of goods sold, $63 million included in research and development expenses, and $11 million included in selling, general and administrative expenses in the Statements of Consolidated Operations. The implied fair value calculations were performed using a discounted cash flow model (a Level 3 measurement). | |||||||||||||
The recorded amounts of cash, trade receivables, net, miscellaneous receivables, third-party guarantees, accounts payable, grower production accruals, accrued marketing programs and miscellaneous short-term accruals approximate their fair values as of Aug. 31, 2014, 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 | 12 Months Ended | |||||||||||||||||||||||
Aug. 31, 2014 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||
FINANCIAL INSTRUMENTS | ' | |||||||||||||||||||||||
FINANCIAL INSTRUMENTS | ||||||||||||||||||||||||
Monsanto’s business and activities expose it to a variety of market risks, including risks related to changes in commodity prices, foreign currency exchange rates and interest rates. These financial exposures are monitored and managed by the company as an integral part of its market risk management program. This program recognizes the unpredictability of financial markets and seeks to reduce the potentially adverse effects that market volatility could have on operating results. As part of its market risk management strategy, Monsanto uses derivative instruments to protect fair values and cash flows from fluctuations caused by volatility in currency exchange rates, commodity prices and interest rates. | ||||||||||||||||||||||||
Cash Flow Hedges | ||||||||||||||||||||||||
The company uses foreign currency options and foreign currency forward 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 and option contracts, 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 18 months for foreign currency hedges and 39 months for commodity hedges. During the next 12 months, a pretax net loss of approximately $77 million is expected to be reclassified from accumulated other comprehensive loss into earnings. A pretax loss of $2 million during fiscal years 2014 and 2012 was reclassified into earnings as a result of the discontinuance of cash flow hedges because it was probable that the original forecasted transaction would not occur by the end of the originally specified time period. No cash flow hedges were discontinued during fiscal year 2013. | ||||||||||||||||||||||||
Fair Value Hedges | ||||||||||||||||||||||||
The company uses commodity futures, forwards and options contracts as fair value hedges to manage the value of its soybean inventory and other assets. 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 fiscal years 2014, 2013 or 2012. | ||||||||||||||||||||||||
Net Investment Hedges | ||||||||||||||||||||||||
To protect the value of its investment from adverse changes in exchange rates, the company may, from time to time, hedge a portion of its net investment in one or more of its foreign subsidiaries. Gains or losses on derivative instruments that are designated as a net investment hedge are included in accumulated foreign currency translation adjustment and reclassified into earnings in the period during which the hedged net investment is sold or liquidated. | ||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | ||||||||||||||||||||||||
The company uses foreign currency 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 option contracts to hedge anticipated cash payments to growers in the United States, Mexico and Brazil, which can fluctuate with changes in commodity price. Because these option 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 in Brazil. 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 Aug. 31, 2014, and Aug. 31, 2013, were as follows: | ||||||||||||||||||||||||
As of Aug. 31, | ||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | ||||||||||||||||||||||
Derivatives Designated as Hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | $ | 585 | $ | 261 | ||||||||||||||||||||
Commodity contracts | 626 | 872 | ||||||||||||||||||||||
Total Derivatives Designated as Hedges | $ | 1,211 | $ | 1,133 | ||||||||||||||||||||
Derivatives Not Designated as Hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | $ | 2,054 | $ | 1,188 | ||||||||||||||||||||
Commodity contracts | 272 | 217 | ||||||||||||||||||||||
Interest rate contracts | 160 | — | ||||||||||||||||||||||
Total Derivatives Not Designated as Hedges | $ | 2,486 | $ | 1,405 | ||||||||||||||||||||
The net presentation of the company’s derivative instruments outstanding was as follows: | ||||||||||||||||||||||||
As of Aug. 31, 2014 | ||||||||||||||||||||||||
(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) | $ | — | $ | (10 | ) | $ | (10 | ) | $ | 10 | $ | — | ||||||||||||
Total trade receivables, net | — | (10 | ) | (10 | ) | 10 | — | $ | 2,014 | $ | 2,014 | |||||||||||||
Miscellaneous receivables | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | 5 | — | 5 | — | 5 | |||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | 4 | — | 4 | — | 4 | |||||||||||||||||||
Commodity contracts | 13 | — | 13 | — | 13 | |||||||||||||||||||
Total miscellaneous receivables | 22 | — | 22 | — | 22 | 795 | 817 | |||||||||||||||||
Other current assets | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | 4 | (57 | ) | (53 | ) | 53 | — | |||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | 19 | (1 | ) | 18 | — | 18 | ||||||||||||||||||
Total other current assets | 23 | (58 | ) | (35 | ) | 53 | 18 | 187 | 205 | |||||||||||||||
Other assets | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | 2 | — | 2 | — | 2 | |||||||||||||||||||
Commodity contracts(1) | — | (19 | ) | (19 | ) | 19 | — | |||||||||||||||||
Total other assets | 2 | (19 | ) | (17 | ) | 19 | 2 | 807 | 809 | |||||||||||||||
Total Asset Derivatives | $ | 47 | $ | (87 | ) | $ | (40 | ) | $ | 82 | $ | 42 | ||||||||||||
Liability Derivatives: | ||||||||||||||||||||||||
Trade receivables, net | ||||||||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | $ | 10 | $ | (10 | ) | $ | — | $ | — | $ | — | |||||||||||||
Total trade receivables, net | 10 | (10 | ) | — | — | — | ||||||||||||||||||
Other current assets | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | 57 | (57 | ) | — | — | — | ||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | 1 | (1 | ) | — | — | — | ||||||||||||||||||
Total other current assets | 58 | (58 | ) | — | — | — | ||||||||||||||||||
Other assets | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | 19 | (19 | ) | — | — | — | ||||||||||||||||||
Total other assets | 19 | (19 | ) | — | — | — | ||||||||||||||||||
Miscellaneous short-term accruals | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | 6 | — | 6 | — | 6 | |||||||||||||||||||
Commodity contracts | 3 | — | 3 | — | 3 | |||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | 13 | — | 13 | — | 13 | |||||||||||||||||||
Total miscellaneous short-term accruals | 22 | — | 22 | — | 22 | $ | 940 | $ | 962 | |||||||||||||||
Other liabilities | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Commodity contracts | 1 | — | 1 | — | 1 | |||||||||||||||||||
Total other liabilities | 1 | — | 1 | — | 1 | 341 | 342 | |||||||||||||||||
Total Liability Derivatives | $ | 110 | $ | (87 | ) | $ | 23 | $ | — | $ | 23 | |||||||||||||
(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 AOCL(1) | Recognized in Income(2) | |||||||||||||||||||||||
(Effective Portion) | ||||||||||||||||||||||||
Year Ended Aug. 31, | Year Ended Aug. 31, | |||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | Income Statement | |||||||||||||||||
Classification | ||||||||||||||||||||||||
Derivatives Designated as Hedges: | ||||||||||||||||||||||||
Fair value hedges: | ||||||||||||||||||||||||
Commodity contracts(3) | $ | (1 | ) | $ | — | $ | (29 | ) | Cost of goods sold | |||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||
Foreign exchange contracts(4) | $ | (4 | ) | $ | 5 | $ | 2 | 3 | — | (4 | ) | Net sales | ||||||||||||
Foreign exchange contracts | 1 | (5 | ) | 13 | (3 | ) | 4 | 6 | Cost of goods sold | |||||||||||||||
Commodity contracts(5) | (106 | ) | (123 | ) | 64 | (14 | ) | 113 | 69 | Cost of goods sold | ||||||||||||||
Interest rate contracts(6) | (2 | ) | — | (73 | ) | (12 | ) | (12 | ) | (9 | ) | Interest expense | ||||||||||||
Total Derivatives Designated as Hedges | (111 | ) | (123 | ) | 6 | (27 | ) | 105 | 33 | |||||||||||||||
Derivatives Not Designated as Hedges: | ||||||||||||||||||||||||
Foreign exchange contracts(7) | (1 | ) | 41 | (21 | ) | Other expense, net | ||||||||||||||||||
Commodity contracts | 4 | (9 | ) | 6 | Net sales | |||||||||||||||||||
Commodity contracts | 21 | (2 | ) | (19 | ) | Cost of goods sold | ||||||||||||||||||
Total Derivatives Not Designated as Hedges | 24 | 30 | (34 | ) | ||||||||||||||||||||
Total Derivatives | $ | (111 | ) | $ | (123 | ) | $ | 6 | $ | (3 | ) | $ | 135 | $ | (1 | ) | ||||||||
(1) | Accumulated Other Comprehensive Loss (AOCL). | |||||||||||||||||||||||
(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 AOCL into income during the period. | |||||||||||||||||||||||
(3) | Loss on fair value hedges includes a loss of $1 million, loss of less than $1 million and $3 million from ineffectiveness for fiscal year 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||
(4) | Gain on foreign exchange cash flow hedges includes a loss from discontinued hedges of $2 million for fiscal year 2014. There were no hedges discontinued in fiscal years 2013 or 2012. | |||||||||||||||||||||||
(5) | Gain or loss on commodity cash flow hedges includes a loss of $2 million, a loss of $4 million and a gain of less than $1 million from ineffectiveness for fiscal years 2014, 2013 and 2012, respectively. Additionally, the gain on commodity cash flow hedges includes a loss from discontinued hedges of $2 million for fiscal year 2012. There were no hedges discontinued in fiscal years 2014 or 2013. | |||||||||||||||||||||||
(6) | Loss on interest rate contract cash flow hedges includes a loss of less than $1 million and $1 million from ineffectiveness for fiscal years 2014 and 2012. There was no ineffectiveness on interest rate contract cash flow hedges during fiscal year 2013. No amounts were excluded from the assessment of hedge effectiveness during fiscal years 2014, 2013 or 2012. | |||||||||||||||||||||||
(7) | Gain or loss on foreign exchange contracts not designated as hedges was offset by a foreign currency transaction loss of $96 million, a loss of $129 million and a gain of $5 million during fiscal years 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||
Several of the company’s outstanding foreign currency derivatives are covered by International Swaps and Derivatives 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 Monsanto 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. The counterparty is required to post collateral each day to cover the change in fair value of these futures in the case of an unrealized gain position. Non-exchange-traded commodity derivatives are covered by the aforementioned ISDA Master Agreements and are subject to the same credit-risk-related contingent provisions, as are the company’s interest rate derivatives. The aggregate fair value of all derivative instruments under ISDA Master Agreements in a liability position was $11 million as of Aug. 31, 2014, and $7 million as of Aug. 31, 2013, 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 primarily in money market funds throughout the world in high-quality short-term debt instruments. Other investments are made in highly rated securities or with major banks. Such investments are made only in instruments issued or enhanced by high-quality institutions. As of Aug. 31, 2014, 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 or credit insurance is obtained 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, Brazil and Europe in the development of customer financing programs. For further information on these programs, see Note 6 — Customer Financing Programs. |
POSTRETIREMENT_BENEFITS_PENSIO
POSTRETIREMENT BENEFITS - PENSIONS | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Aug. 31, 2014 | ||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||||||
POSTRETIREMENT BENEFITS - PENSIONS | ' | |||||||||||||||||||||||||||||||||||
POSTRETIREMENT BENEFITS - PENSIONS | ||||||||||||||||||||||||||||||||||||
Most of Monsanto’s U.S. employees 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. Pension benefits are based on an employee’s years of service and compensation level. Funded pension plans in the United States and outside the United States were funded in accordance with the company’s long-range projections of the plans’ financial condition. These projections took into account benefits earned and expected to be earned, anticipated returns on pension plan assets, income tax and other regulations. | ||||||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost | ||||||||||||||||||||||||||||||||||||
Total pension cost for Monsanto employees included in the Statements of Consolidated Operations was $97 million, $96 million and $93 million in fiscal years 2014, 2013 and 2012, respectively. The information that follows relates to Monsanto's pension plans. The components of pension cost for these plans were: | ||||||||||||||||||||||||||||||||||||
Year Ended Aug. 31, 2014 | Year Ended Aug. 31, 2013 | Year Ended Aug. 31, 2012 | ||||||||||||||||||||||||||||||||||
(Dollars in millions) | U.S. | Outside the | Total | U.S. | Outside the | Total | U.S. | Outside the | Total | |||||||||||||||||||||||||||
U.S. | U.S. | U.S. | ||||||||||||||||||||||||||||||||||
Service Cost for Benefits Earned during the Year | $ | 61 | $ | 12 | $ | 73 | $ | 68 | $ | 10 | $ | 78 | $ | 55 | $ | 7 | $ | 62 | ||||||||||||||||||
Interest Cost on Benefit Obligation | 90 | 9 | 99 | 74 | 9 | 83 | 86 | 10 | 96 | |||||||||||||||||||||||||||
Assumed Return on Plan Assets | (135 | ) | (10 | ) | (145 | ) | (137 | ) | (10 | ) | (147 | ) | (124 | ) | (10 | ) | (134 | ) | ||||||||||||||||||
Amortization of Unrecognized Net Loss | 62 | 4 | 66 | 74 | 5 | 79 | 62 | 4 | 66 | |||||||||||||||||||||||||||
Curtailment and Settlement Charge | — | 3 | 3 | — | 7 | 7 | — | 3 | 3 | |||||||||||||||||||||||||||
Other Adjustment | — | 1 | 1 | — | (4 | ) | (4 | ) | — | — | — | |||||||||||||||||||||||||
Total Net Periodic Benefit Cost | $ | 78 | $ | 19 | $ | 97 | $ | 79 | $ | 17 | $ | 96 | $ | 79 | $ | 14 | $ | 93 | ||||||||||||||||||
The other changes in plan assets and benefit obligations recognized in accumulated other comprehensive loss for the year ended Aug. 31, 2014, were: | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | U.S. | Outside the | Total | |||||||||||||||||||||||||||||||||
U.S. | ||||||||||||||||||||||||||||||||||||
Current Year Actuarial (Gain) Loss | $ | (152 | ) | $ | 4 | $ | (148 | ) | ||||||||||||||||||||||||||||
Recognition of Actuarial Loss | (62 | ) | (7 | ) | (69 | ) | ||||||||||||||||||||||||||||||
Total Recognized in Accumulated Other Comprehensive Loss | $ | (214 | ) | $ | (3 | ) | $ | (217 | ) | |||||||||||||||||||||||||||
The following assumptions, calculated on a weighted-average basis, were used to determine pension costs for the principal plans in which Monsanto employees participated: | ||||||||||||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||||||||||||||||||||||||||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | ||||||||||||||||||||||||||||||||||
U.S. | Outside the U.S. | U.S. | Outside the U.S. | U.S. | Outside the U.S. | |||||||||||||||||||||||||||||||
Discount Rate | 4.44 | % | 3.62 | % | 3.44 | % | 3.89 | % | 4.59 | % | 5.24 | % | ||||||||||||||||||||||||
Assumed Long-Term Rate of Return on Assets | 7.5 | % | 6.12 | % | 7.5 | % | 6.65 | % | 7.5 | % | 7.08 | % | ||||||||||||||||||||||||
Annual Rates of Salary Increase (for plans that base benefits on final compensation level) | 4 | % | 3.95 | % | 4 | % | 3.89 | % | 4 | % | 3.82 | % | ||||||||||||||||||||||||
Obligations and Funded Status | ||||||||||||||||||||||||||||||||||||
Monsanto uses a measurement date of August 31 for its pension plans. The funded status of the pension plans as of Aug. 31, 2014, and Aug. 31, 2013, was as follows: | ||||||||||||||||||||||||||||||||||||
U.S. | Outside the U.S. | Total | ||||||||||||||||||||||||||||||||||
Year Ended Aug. 31, | Year Ended Aug. 31, | Year Ended Aug. 31, | ||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Change in Benefit Obligation: | ||||||||||||||||||||||||||||||||||||
Benefit obligation at beginning of period | $ | 2,049 | $ | 2,179 | $ | 255 | $ | 251 | $ | 2,304 | $ | 2,430 | ||||||||||||||||||||||||
Service cost | 61 | 68 | 12 | 10 | 73 | 78 | ||||||||||||||||||||||||||||||
Interest cost | 90 | 74 | 9 | 9 | 99 | 83 | ||||||||||||||||||||||||||||||
Plan participants’ contributions | — | — | 2 | 2 | 2 | 2 | ||||||||||||||||||||||||||||||
Actuarial loss (gain) | 117 | (149 | ) | 15 | 11 | 132 | (138 | ) | ||||||||||||||||||||||||||||
Benefits paid | (121 | ) | (123 | ) | (9 | ) | (5 | ) | (130 | ) | (128 | ) | ||||||||||||||||||||||||
Settlements / curtailments | — | — | (10 | ) | (26 | ) | (10 | ) | (26 | ) | ||||||||||||||||||||||||||
Currency loss | — | — | — | 5 | — | 5 | ||||||||||||||||||||||||||||||
Other | — | — | (1 | ) | (2 | ) | (1 | ) | (2 | ) | ||||||||||||||||||||||||||
Benefit Obligation at End of Period | $ | 2,196 | $ | 2,049 | $ | 273 | $ | 255 | $ | 2,469 | $ | 2,304 | ||||||||||||||||||||||||
Change in Plan Assets: | ||||||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of period | $ | 1,977 | $ | 1,945 | $ | 166 | $ | 160 | $ | 2,143 | $ | 2,105 | ||||||||||||||||||||||||
Actual return on plan assets | 404 | 114 | 21 | 10 | 425 | 124 | ||||||||||||||||||||||||||||||
Employer contributions(1) | 38 | 41 | 19 | 20 | 57 | 61 | ||||||||||||||||||||||||||||||
Plan participants’ contributions | — | — | 2 | 2 | 2 | 2 | ||||||||||||||||||||||||||||||
Settlements | — | — | (10 | ) | (26 | ) | (10 | ) | (26 | ) | ||||||||||||||||||||||||||
Benefits paid(1) | (121 | ) | (123 | ) | (9 | ) | (5 | ) | (130 | ) | (128 | ) | ||||||||||||||||||||||||
Currency gain | — | — | 1 | 3 | 1 | 3 | ||||||||||||||||||||||||||||||
Other | — | — | — | 2 | — | 2 | ||||||||||||||||||||||||||||||
Plan Assets at End of Period | $ | 2,298 | $ | 1,977 | $ | 190 | $ | 166 | $ | 2,488 | $ | 2,143 | ||||||||||||||||||||||||
Net (Asset) Liability Recognized | $ | (102 | ) | $ | 72 | $ | 83 | $ | 89 | $ | (19 | ) | $ | 161 | ||||||||||||||||||||||
(1) | Employer contributions and benefits paid include $13 million and $7 million paid from employer assets for unfunded plans in fiscal years 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations as of Aug. 31, 2014, and Aug. 31, 2013, were as follows: | ||||||||||||||||||||||||||||||||||||
U.S. | Outside the U.S. | |||||||||||||||||||||||||||||||||||
Year Ended Aug. 31, | Year Ended Aug. 31, | |||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||
Discount Rate | 4.04% | 4.44% | 3.01% | 3.62% | ||||||||||||||||||||||||||||||||
Rate of Compensation Increase | 4.00% | 4.00% | 3.92% | 3.95% | ||||||||||||||||||||||||||||||||
Fiscal year 2015 pension expense, which will be determined using assumptions as of Aug. 31, 2014, is expected to decrease approximately $25 million compared with fiscal year 2014 expense primarily due to favorable asset performance. | ||||||||||||||||||||||||||||||||||||
The U.S. accumulated benefit obligation ("ABO") was $2.1 billion and $2.0 billion as of Aug. 31, 2014, and Aug. 31, 2013, respectively. The ABO for plans outside of the United States was $213 million and $198 million as of Aug. 31, 2014, and Aug. 31, 2013, respectively. | ||||||||||||||||||||||||||||||||||||
The projected benefit obligation ("PBO") and the fair value of the plan assets for pension plans with PBOs in excess of plan assets as of Aug. 31, 2014, and Aug. 31, 2013, were as follows: | ||||||||||||||||||||||||||||||||||||
U.S. | Outside the U.S. | Total | ||||||||||||||||||||||||||||||||||
As of Aug. 31, | As of Aug. 31, | As of Aug. 31, | ||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
PBO | $ | 66 | $ | 2,049 | $ | 242 | $ | 235 | $ | 308 | $ | 2,284 | ||||||||||||||||||||||||
Fair Value of Plan Assets with PBOs | — | 1,977 | 156 | 148 | 156 | 2,125 | ||||||||||||||||||||||||||||||
in Excess of Plan Assets | ||||||||||||||||||||||||||||||||||||
The PBO, ABO, and the fair value of the plan assets for pension plans with ABOs in excess of plan assets as of Aug. 31, 2014, and Aug. 31, 2013, were as follows: | ||||||||||||||||||||||||||||||||||||
U.S. | Outside the U.S. | Total | ||||||||||||||||||||||||||||||||||
As of Aug. 31, | As of Aug. 31, | As of Aug. 31, | ||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
PBO | $ | 66 | $ | 60 | $ | 115 | $ | 105 | $ | 181 | $ | 165 | ||||||||||||||||||||||||
ABO | 62 | 56 | 94 | 87 | 156 | 143 | ||||||||||||||||||||||||||||||
Fair Value of Plan Assets with ABOs | — | — | 32 | 23 | 32 | 23 | ||||||||||||||||||||||||||||||
in Excess of Plan Assets | ||||||||||||||||||||||||||||||||||||
As of Aug. 31, 2014, and Aug. 31, 2013, amounts recognized in the Statements of Consolidated Financial Position were included in the following balance sheet accounts: | ||||||||||||||||||||||||||||||||||||
Net Amount Recognized | ||||||||||||||||||||||||||||||||||||
U.S. | Outside the U.S. | Total | ||||||||||||||||||||||||||||||||||
As of Aug. 31, | As of Aug. 31, | As of Aug. 31, | ||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Other Assets | $ | (168 | ) | $ | — | $ | (12 | ) | $ | (8 | ) | $ | (180 | ) | $ | (8 | ) | |||||||||||||||||||
Miscellaneous Short-Term Accruals | 7 | 5 | 7 | 8 | 14 | 13 | ||||||||||||||||||||||||||||||
Postretirement Liabilities | 59 | 67 | 88 | 89 | 147 | 156 | ||||||||||||||||||||||||||||||
Net (Asset) Liability Recognized | $ | (102 | ) | $ | 72 | $ | 83 | $ | 89 | $ | (19 | ) | $ | 161 | ||||||||||||||||||||||
The following table provides a summary of the pretax components of the amount recognized in accumulated other comprehensive loss: | ||||||||||||||||||||||||||||||||||||
U.S. | Outside the U.S. | Total | ||||||||||||||||||||||||||||||||||
As of Aug. 31, | As of Aug. 31, | As of Aug. 31, | ||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Net Prior Service Cost | $ | — | $ | — | $ | — | $ | 1 | $ | — | $ | 1 | ||||||||||||||||||||||||
Net Loss | 324 | 538 | 57 | 59 | 381 | 597 | ||||||||||||||||||||||||||||||
Total | $ | 324 | $ | 538 | $ | 57 | $ | 60 | $ | 381 | $ | 598 | ||||||||||||||||||||||||
The estimated net loss for the defined benefit pension plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year is $56 million. | ||||||||||||||||||||||||||||||||||||
Plan Assets | ||||||||||||||||||||||||||||||||||||
U.S. Plans: The asset allocations for Monsanto’s U.S. pension plans as of Aug. 31, 2014, and Aug. 31, 2013, and the target allocation range for fiscal year 2015, by asset category, follow. The fair value of assets for these plans was $2.3 billion and $2.0 billion as of Aug. 31, 2014, and Aug. 31, 2013, respectively. | ||||||||||||||||||||||||||||||||||||
Target | Percentage of Plan Assets | |||||||||||||||||||||||||||||||||||
Allocation Range (1) | As of Aug. 31, | |||||||||||||||||||||||||||||||||||
Asset Category | 2015 | 2014 | 2013 | |||||||||||||||||||||||||||||||||
Public Equity Securities | 41-51% | 51.1 | % | 52 | % | |||||||||||||||||||||||||||||||
Private Equity Investments | 2-8% | 3.8 | % | 3.9 | % | |||||||||||||||||||||||||||||||
Debt Securities | 39-49% | 40.5 | % | 38.9 | % | |||||||||||||||||||||||||||||||
Real Estate | 2-8% | 4.1 | % | 4.6 | % | |||||||||||||||||||||||||||||||
Other | 0-3% | 0.5 | % | 0.6 | % | |||||||||||||||||||||||||||||||
Total | 100 | % | 100 | % | ||||||||||||||||||||||||||||||||
(1) The target allocation range may change as the funded status of the plan increases/decreases. | ||||||||||||||||||||||||||||||||||||
The expected long-term rate of return on these plan assets was 7.5 percent in fiscal years 2014, 2013 and 2012. The expected long-term rate of return on plan assets is based on historical and projected rates of return for current and planned asset classes in the plan’s investment portfolio. Assumed projected rates of return for each asset class were selected after analyzing historical experience and future expectations of the returns and volatility of the various asset classes. The overall expected rate of return for the portfolio is based on the target asset allocation for each asset class and adjusted for historical and expected experience of active portfolio management results compared to benchmark returns and the effect of expenses paid for plan assets. | ||||||||||||||||||||||||||||||||||||
The general principles guiding investment of U.S. pension plan assets are embodied in the Employee Retirement Income Security Act of 1974 (ERISA). These principles include discharging the company’s investment responsibilities for the exclusive benefit of plan participants and in accordance with the “prudent expert” standards and other ERISA rules and regulations. Investment objectives for the company’s U.S. pension plan assets are to optimize the long-term return on plan assets while maintaining an acceptable level of risk, to diversify assets among asset classes and investment styles, and to maintain a long-term focus. | ||||||||||||||||||||||||||||||||||||
The plan’s investment fiduciaries are responsible for selecting investment managers, commissioning periodic asset/liability studies, setting asset allocation targets, and monitoring asset allocation and investment performance. The company’s pension investment professionals have discretion to manage assets within established asset allocation ranges approved by the plan fiduciaries. | ||||||||||||||||||||||||||||||||||||
In February 2014, an asset/liability study was completed to determine the optimal strategic asset allocation to meet the plan’s projected long-term benefit obligations and desired funded status. The target asset allocation resulting from the asset/liability study is outlined in the previous table. | ||||||||||||||||||||||||||||||||||||
Plans Outside the United States: The weighted-average asset allocation for Monsanto’s pension plans outside of the United States as of Aug. 31, 2014, and Aug. 31, 2013, and the weighted-average target allocation for fiscal year 2015, by asset category, follow. The fair value of plan assets for these plans was $190 million and $166 million as of Aug. 31, 2014, and Aug. 31, 2013, respectively. | ||||||||||||||||||||||||||||||||||||
Percentage of Plan Assets | ||||||||||||||||||||||||||||||||||||
Target | As of Aug. 31, | |||||||||||||||||||||||||||||||||||
Allocation(1) | ||||||||||||||||||||||||||||||||||||
Asset Category | 2015 | 2014 | 2013 | |||||||||||||||||||||||||||||||||
Equity Securities | 37.4 | % | 32.8 | % | 34.4 | % | ||||||||||||||||||||||||||||||
Debt Securities | 48.9 | % | 52.3 | % | 52.4 | % | ||||||||||||||||||||||||||||||
Other | 13.7 | % | 14.9 | % | 13.2 | % | ||||||||||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | ||||||||||||||||||||||||||||||
(1) | Monsanto’s plans outside the United States have a wide range of target allocations, and therefore the 2015 target allocations shown above reflect a weighted-average calculation of the target allocations of each of the plans. | |||||||||||||||||||||||||||||||||||
The weighted-average expected long-term rate of return on the plans’ assets was 6.1 percent in fiscal year 2014, 6.7 percent in fiscal year 2013 and 7.1 percent in fiscal year 2012. Determination of the expected long-term rate of return for plans outside the United States is consistent with the U.S. methodology. | ||||||||||||||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||||||||||||||
U.S. Plans: The fair values of our U.S. defined benefit pension plan investments as of Aug. 31, 2014, and Aug. 31, 2013, by asset category, are as follows: | ||||||||||||||||||||||||||||||||||||
Fair Value Measurements at Aug. 31, 2014 | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Cash | Balance as of | |||||||||||||||||||||||||||||||
Collateral | Aug. 31, 2014 | |||||||||||||||||||||||||||||||||||
Offset(1) | ||||||||||||||||||||||||||||||||||||
Investments at Fair Value: | ||||||||||||||||||||||||||||||||||||
Cash | $ | 14 | $ | — | $ | — | $ | — | $ | 14 | ||||||||||||||||||||||||||
Debt Securities: | ||||||||||||||||||||||||||||||||||||
U.S. government debt | — | 339 | — | — | 339 | |||||||||||||||||||||||||||||||
U.S. agency debt | — | 5 | — | — | 5 | |||||||||||||||||||||||||||||||
U.S. state and municipal debt | — | 31 | — | — | 31 | |||||||||||||||||||||||||||||||
Foreign government debt | — | 4 | — | — | 4 | |||||||||||||||||||||||||||||||
U.S. corporate debt | — | 288 | — | — | 288 | |||||||||||||||||||||||||||||||
Mortgage-Backed securities | — | 3 | — | — | 3 | |||||||||||||||||||||||||||||||
Asset-Backed securities | — | 3 | — | — | 3 | |||||||||||||||||||||||||||||||
Foreign corporate debt | — | 77 | — | — | 77 | |||||||||||||||||||||||||||||||
U.S. term bank loans | — | 5 | — | — | 5 | |||||||||||||||||||||||||||||||
Common and Preferred Stock: | ||||||||||||||||||||||||||||||||||||
Domestic small capitalization | 36 | — | — | — | 36 | |||||||||||||||||||||||||||||||
Domestic large capitalization | 459 | — | — | — | 459 | |||||||||||||||||||||||||||||||
International: | ||||||||||||||||||||||||||||||||||||
Developed markets | 181 | — | — | — | 181 | |||||||||||||||||||||||||||||||
Emerging markets | 34 | 1 | — | — | 35 | |||||||||||||||||||||||||||||||
Private Equity Investments | — | — | 87 | — | 87 | |||||||||||||||||||||||||||||||
Partnership and Joint Venture Interests | — | — | 32 | — | 32 | |||||||||||||||||||||||||||||||
Real Estate Investments | — | — | 94 | — | 94 | |||||||||||||||||||||||||||||||
Interest in Pooled Funds: | ||||||||||||||||||||||||||||||||||||
Interest-bearing cash and cash equivalents funds | — | 58 | — | — | 58 | |||||||||||||||||||||||||||||||
Common and preferred stock funds: | ||||||||||||||||||||||||||||||||||||
Domestic small-capitalization | — | 7 | — | — | 7 | |||||||||||||||||||||||||||||||
Domestic large-capitalization | — | 318 | — | — | 318 | |||||||||||||||||||||||||||||||
International | — | 105 | — | — | 105 | |||||||||||||||||||||||||||||||
Corporate debt funds | — | 98 | — | — | 98 | |||||||||||||||||||||||||||||||
Mortgage-Backed securities | — | — | 8 | — | 8 | |||||||||||||||||||||||||||||||
Interest in Pooled Collateral Fund — Securities Lending | — | 334 | — | — | 334 | |||||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||||||||||
Interest rate futures | (1 | ) | — | — | 1 | — | ||||||||||||||||||||||||||||||
Equity index futures | (3 | ) | — | — | 3 | — | ||||||||||||||||||||||||||||||
Foreign currency forwards | — | 1 | — | (1 | ) | — | ||||||||||||||||||||||||||||||
Common and preferred stock sold short | — | (54 | ) | — | 55 | 1 | ||||||||||||||||||||||||||||||
Total Investments at Fair Value | $ | 720 | $ | 1,623 | $ | 221 | $ | 58 | $ | 2,622 | ||||||||||||||||||||||||||
(1) | Futures derivative assets and common and preferred stock sold short have been offset by cash collateral held by the counterparty. | |||||||||||||||||||||||||||||||||||
Fair Value Measurements at Aug. 31, 2013 | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Cash | Balance as of | |||||||||||||||||||||||||||||||
Collateral | Aug. 31, 2013 | |||||||||||||||||||||||||||||||||||
Offset(1) | ||||||||||||||||||||||||||||||||||||
Investments at Fair Value: | ||||||||||||||||||||||||||||||||||||
Cash | $ | 16 | $ | — | $ | — | $ | — | $ | 16 | ||||||||||||||||||||||||||
Debt Securities: | ||||||||||||||||||||||||||||||||||||
U.S. government debt | — | 260 | — | — | 260 | |||||||||||||||||||||||||||||||
U.S. agency debt | — | 7 | — | — | 7 | |||||||||||||||||||||||||||||||
U.S. state and municipal debt | — | 34 | — | — | 34 | |||||||||||||||||||||||||||||||
Foreign government debt | — | 2 | — | — | 2 | |||||||||||||||||||||||||||||||
U.S. corporate debt | — | 243 | — | — | 243 | |||||||||||||||||||||||||||||||
Mortgage-Backed securities | — | 2 | — | — | 2 | |||||||||||||||||||||||||||||||
Asset-Backed securities | — | 3 | — | — | 3 | |||||||||||||||||||||||||||||||
Foreign corporate debt | — | 54 | — | — | 54 | |||||||||||||||||||||||||||||||
U.S. term bank loans | — | 1 | — | — | 1 | |||||||||||||||||||||||||||||||
Common and Preferred Stock: | ||||||||||||||||||||||||||||||||||||
Domestic small capitalization | 46 | — | — | — | 46 | |||||||||||||||||||||||||||||||
Domestic large capitalization | 385 | — | — | — | 385 | |||||||||||||||||||||||||||||||
International: | ||||||||||||||||||||||||||||||||||||
Developed markets | 160 | — | — | — | 160 | |||||||||||||||||||||||||||||||
Emerging markets | 30 | 1 | — | — | 31 | |||||||||||||||||||||||||||||||
Private Equity Investments | — | — | 77 | — | 77 | |||||||||||||||||||||||||||||||
Partnership and Joint Venture Interests | — | — | 32 | — | 32 | |||||||||||||||||||||||||||||||
Real Estate Investments | — | — | 90 | — | 90 | |||||||||||||||||||||||||||||||
Interest in Pooled Funds: | ||||||||||||||||||||||||||||||||||||
Interest-bearing cash and cash equivalents funds | — | 56 | — | — | 56 | |||||||||||||||||||||||||||||||
Common and preferred stock funds: | ||||||||||||||||||||||||||||||||||||
Domestic small-capitalization | — | 7 | — | — | 7 | |||||||||||||||||||||||||||||||
Domestic large-capitalization | — | 277 | — | — | 277 | |||||||||||||||||||||||||||||||
International | — | 89 | — | — | 89 | |||||||||||||||||||||||||||||||
Corporate debt funds | — | 89 | — | — | 89 | |||||||||||||||||||||||||||||||
Mortgage-Backed securities | — | — | 7 | — | 7 | |||||||||||||||||||||||||||||||
Interest in Pooled Collateral Fund — Securities Lending | — | 205 | — | — | 205 | |||||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||||||||||
Common and preferred stock sold short | — | (41 | ) | — | 42 | 1 | ||||||||||||||||||||||||||||||
Total Investments at Fair Value | $ | 637 | $ | 1,289 | $ | 206 | $ | 42 | $ | 2,174 | ||||||||||||||||||||||||||
(1) | Futures derivative assets and common and preferred stock sold short have been offset by cash collateral held by the counterparty. | |||||||||||||||||||||||||||||||||||
The following table summarizes the changes in fair value of the Level 3 investments as of Aug. 31, 2013, and Aug. 31, 2014: | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Private Equity | Partnership/Joint | Real Estate | Mortgage-Backed | Total | |||||||||||||||||||||||||||||||
Investments | Venture Interests | Investments | Securities Fund | |||||||||||||||||||||||||||||||||
Investments | ||||||||||||||||||||||||||||||||||||
Balance Aug. 31, 2012 | $ | 73 | $ | 32 | $ | 80 | $ | 8 | $ | 193 | ||||||||||||||||||||||||||
Purchases | 13 | — | 7 | — | 20 | |||||||||||||||||||||||||||||||
Sales | (17 | ) | — | (1 | ) | — | (18 | ) | ||||||||||||||||||||||||||||
Realized/unrealized gains | 8 | — | 4 | — | 12 | |||||||||||||||||||||||||||||||
Balance Aug. 31, 2013 | $ | 77 | $ | 32 | $ | 90 | $ | 8 | $ | 207 | ||||||||||||||||||||||||||
Net Unrealized Gains Still Held Included in Earnings(1) | $ | 11 | $ | 1 | $ | 4 | $ | — | $ | 16 | ||||||||||||||||||||||||||
(Dollars in millions) | Private Equity | Partnership/Joint | Real Estate | Mortgage-Backed | Total | |||||||||||||||||||||||||||||||
Investments | Venture Interests | Investments | Securities Fund | |||||||||||||||||||||||||||||||||
Investments | ||||||||||||||||||||||||||||||||||||
Balance Aug. 31, 2013 | $ | 77 | $ | 32 | $ | 90 | $ | 8 | $ | 207 | ||||||||||||||||||||||||||
Purchases | 15 | — | 5 | — | 20 | |||||||||||||||||||||||||||||||
Sales | (18 | ) | (3 | ) | (6 | ) | — | (27 | ) | |||||||||||||||||||||||||||
Realized/unrealized gains | 13 | 3 | 5 | — | 21 | |||||||||||||||||||||||||||||||
Balance Aug. 31, 2014 | $ | 87 | $ | 32 | $ | 94 | $ | 8 | $ | 221 | ||||||||||||||||||||||||||
Net Unrealized Gains Still Held Included in Earnings(1) | $ | 16 | $ | — | $ | 6 | $ | — | $ | 22 | ||||||||||||||||||||||||||
(1) | Represents the amount of total gains for the period attributable to change in unrealized gains (losses) relating to assets and liabilities classified as Level 3 that are still held as of Aug. 31, 2013, and Aug. 31, 2014. | |||||||||||||||||||||||||||||||||||
The following table reconciles the investments at fair value to the plan assets as of Aug. 31, 2014. | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||||||
Total Investments at Fair Value | $ | 2,622 | ||||||||||||||||||||||||||||||||||
Liability to return collateral held under securities lending agreement | (334 | ) | ||||||||||||||||||||||||||||||||||
Non-interest bearing cash | 3 | |||||||||||||||||||||||||||||||||||
Accrued income / expense | 7 | |||||||||||||||||||||||||||||||||||
Plan Assets at the End of the Period | $ | 2,298 | ||||||||||||||||||||||||||||||||||
In managing the plan assets, Monsanto reviews and manages risk associated with funded status risk, market risk, liquidity risk and operational risk. Asset allocation determined in light of the plans’ liability characteristics and asset class diversification are central to the company’s risk management approach and are integral to the overall investment strategy. Further mitigation of asset class risk is achieved by investment style, investment strategy and investment management firm diversification. Investment guidelines are included in all investment management agreements with investment management firms managing publicly traded equities and fixed income accounts for the plan. | ||||||||||||||||||||||||||||||||||||
Plans Outside the United States: The fair values of our defined benefit pension plan investments outside of the United States as of Aug. 31, 2014, and Aug. 31, 2013, by asset category, are as follows: | ||||||||||||||||||||||||||||||||||||
Fair Value Measurements at Aug. 31, 2014 | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Balance as of | ||||||||||||||||||||||||||||||||
Aug. 31, 2014 | ||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 2 | $ | — | $ | — | $ | 2 | ||||||||||||||||||||||||||||
Debt Securities — Foreign Government Debt | — | 16 | — | 16 | ||||||||||||||||||||||||||||||||
Common and Preferred stock | 46 | — | — | 46 | ||||||||||||||||||||||||||||||||
Insurance-Backed Securities | — | — | 25 | 25 | ||||||||||||||||||||||||||||||||
Interest in Pooled Funds: | ||||||||||||||||||||||||||||||||||||
Common and preferred stock funds | — | 15 | — | 15 | ||||||||||||||||||||||||||||||||
Government debt funds | — | 11 | — | 11 | ||||||||||||||||||||||||||||||||
Corporate debt funds | — | 75 | — | 75 | ||||||||||||||||||||||||||||||||
Total Investments at Fair Value | $ | 48 | $ | 117 | $ | 25 | $ | 190 | ||||||||||||||||||||||||||||
Fair Value Measurements at Aug. 31, 2013 | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Balance as of | ||||||||||||||||||||||||||||||||
Aug. 31, 2013 | ||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 2 | $ | — | $ | — | $ | 2 | ||||||||||||||||||||||||||||
Debt Securities — Foreign Government Debt | — | 15 | — | 15 | ||||||||||||||||||||||||||||||||
Common and Preferred stock | 45 | — | — | 45 | ||||||||||||||||||||||||||||||||
Insurance-Backed Securities | — | — | 19 | 19 | ||||||||||||||||||||||||||||||||
Interest in Pooled Funds: | ||||||||||||||||||||||||||||||||||||
Common and preferred stock funds | — | 12 | — | 12 | ||||||||||||||||||||||||||||||||
Government debt funds | — | 5 | — | 5 | ||||||||||||||||||||||||||||||||
Mortgage-Backed Securities | — | 3 | — | 3 | ||||||||||||||||||||||||||||||||
Corporate debt funds | — | 65 | — | 65 | ||||||||||||||||||||||||||||||||
Total Investments at Fair Value | $ | 47 | $ | 100 | $ | 19 | $ | 166 | ||||||||||||||||||||||||||||
The following table summarizes the changes in fair value of the Level 3 investments as of Aug. 31, 2013, and Aug. 31, 2014. | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Insurance-Backed | |||||||||||||||||||||||||||||||||||
Securities | ||||||||||||||||||||||||||||||||||||
Balance Aug. 31, 2012 | $ | 17 | ||||||||||||||||||||||||||||||||||
Purchases | 4 | |||||||||||||||||||||||||||||||||||
Sales | (3 | ) | ||||||||||||||||||||||||||||||||||
Net unrealized gains | 1 | |||||||||||||||||||||||||||||||||||
Balance Aug. 31, 2013 | $ | 19 | ||||||||||||||||||||||||||||||||||
Purchases | 6 | |||||||||||||||||||||||||||||||||||
Balance Aug. 31, 2014 | $ | 25 | ||||||||||||||||||||||||||||||||||
In managing the plan assets, risk associated with funded status risk, market risk, liquidity risk and operational risk is considered. The design of a plan’s overall investment strategy will take into consideration one or more of the following elements: a plan’s liability characteristics, diversification across asset classes, diversification within asset classes and investment management firm diversification. Investment policies consistent with the plan’s overall investment strategy are established. | ||||||||||||||||||||||||||||||||||||
Valuation Methodology for Plan Assets | ||||||||||||||||||||||||||||||||||||
For assets that are measured using quoted prices in active markets, the total fair value is the published market price per unit multiplied by the number of units held without consideration of transaction costs, which have been determined to be immaterial. Assets that are measured using significant other observable inputs are primarily valued by reference to quoted prices of markets that are not active. The following methods and assumptions were used to estimate the fair value of each class of financial instrument: | ||||||||||||||||||||||||||||||||||||
Cash: The carrying value of cash represents fair value as it consists of actual currency (all in U.S. dollars), and is classified as Level 1. The majority of the Plan’s cash equivalents are short-term collective investment funds which are included in the interest in pooled funds category. | ||||||||||||||||||||||||||||||||||||
Debt securities: Debt securities consist of U.S. and foreign corporate credit, U.S. and foreign government issues (including related agency debentures and mortgages), U.S. state and municipal securities, and U.S. term bank loans. U.S. treasury and U.S. government agency bonds, as well as foreign government issues, are generally priced by institutional bids, which reflect estimated values based on underlying model frameworks at various dealers and vendors. While some corporate issues are formally listed on exchanges, dealers exchange bid and ask offers to arrive at most executed transaction prices. Term bank loans are priced in a similar fashion to corporate debt securities. All foreign government and foreign corporate debt securities are denominated in U.S. dollars. All individual debt securities included in the Plan are classified as Level 2. | ||||||||||||||||||||||||||||||||||||
Mortgage and asset-backed securities: Collateralized securities (both mortgage-backed and asset-backed) are valued using models with readily observable market data as inputs. Other than the mortgage-backed securities included in the commingled fund in the U.S. which are classified as Level 3, all mortgage and asset-backed securities included in the Plan are classified as Level 2. | ||||||||||||||||||||||||||||||||||||
Common and preferred stock: The Plans’ common and preferred stock consists of investments in listed U.S. and international company stock. U.S. stock is further sub-divided into small-capitalization (defined as companies with market capitalization less than $2 billion), and large capitalization (defined as companies with market capitalization greater than or equal to $2 billion). International stock is further divided into developed markets and emerging markets. All international market type classifications are consistent with the Plan’s chosen international stock performance benchmark index, the MSCI All-Country World Index ex-U.S. (MSCI ACWI ex- U.S.®). Most stock investments are valued using quoted prices from the various public markets. Most equity securities trade on formal exchanges, both domestic and foreign (e.g., NYSE, NASDAQ, LSE), and can be accurately described as active markets. The observable valuation inputs are unadjusted quoted prices that represent active market trades, and are classified as Level 1. Some common and preferred stock holdings are not listed on established exchanges or actively traded inputs to determine their values are obtainable from public sources, and are thus classified as Level 2. | ||||||||||||||||||||||||||||||||||||
Private equity investments: The Plan invests in private equity, which as an asset class is generally characterized as requiring long-term commitments where liquidity is typically limited. Therefore, private equity does not have an actively traded market with readily observable prices. Most of the Plan’s private equity investments are limited partnerships structured as fund-of-funds, which also meet the criteria of commingled funds. These fund-of-funds investments are diversified globally and across typical private equity strategies including: buyouts, co-investments, secondary offerings, venture capital, and special situations (e.g. distressed assets). Funds-of-funds represent a collection of underlying limited partnership funds each managed by a different general partner. Each general partner of the underlying limited partnership fund in turn selects and manages a basket of portfolio companies. As a result, each of the Plan’s fund-of-funds is essentially a fund of dozens of underlying limited partnership funds and hundreds of underlying company investments. Valuations are developed using a variety of proprietary model methodologies, some of which may be derived from publicly available sources, information obtained from each fund’s general partner and public market conditions and returns. Additionally, audited financial statements are received from each fund’s general partner on an annual basis. Private equity holdings represent illiquid investments structured as limited partnerships, and redemption requests are not explicitly permitted. Disposition of partnership interests can only be affected through the sale of the pension trust’s pro-rata ownership stake in the secondary markets, which may require approval of the funds’ general partners. All private equity investments are classified as Level 3. | ||||||||||||||||||||||||||||||||||||
Partnership/joint venture interests: These investments include interests in two limited partnership funds which are considered absolute return funds in which the manager takes long and short positions to generate returns. One fund involves high-yield corporate bonds, the other convertible corporate bonds and the underlying stock into which such bonds may be converted. | ||||||||||||||||||||||||||||||||||||
Terms of the partnership agreement allow for monthly redemptions. While most individual securities in these strategies would fall under Level 1 or Level 2 if held individually, the lack of available quotes and the unique structure of the funds cause these to be classified as Level 3. Audited financial statements for both limited partnership funds are produced on an annual basis. | ||||||||||||||||||||||||||||||||||||
Real estate investments: The Plan invests in U.S. real estate through indirect ownership entities, which are structured as limited partnerships or private real estate investment trusts (REITs). Real estate investments are generally illiquid long-term assets valued in large part using inputs not readily observable in the public markets. Each fund in which the Plan invests typically manages a geographically diversified portfolio of U.S. commercial properties within the office, residential, industrial and retail property sectors. There are no formal listed markets for either the funds’ underlying commercial properties, or for shares in any given fund (if applicable). Real estate fund holdings are appraised and valued on an on-going basis. In the case of the investments structured as partnerships, while a net asset value ("NAV") is not explicitly calculated, audited financial statements and valuations are produced on an annual basis. The underlying real estate holdings not only represent illiquid investments, but explicit redemptions are not permitted. Disposition of partnership interest can only be affected through the sale of the pension trust’s pro-rata ownership stake in the secondary markets, which may require approval of the funds’ general partners. For investments structured as private REITs, redemption requests for units held are at the discretion of fund managers. All real estate investments are classified as Level 3. | ||||||||||||||||||||||||||||||||||||
Interest in pooled funds: In certain instances the Plan invests in pooled or commingled funds in order to gain diversification and efficiency. Each of the commingled funds with the exception of the Domestic Small Capitalization Common Stock Fund has daily NAV and daily liquidity. The Domestic Small Capitalization Common Stock Fund has monthly NAV and monthly liquidity. Each fund has its own notification requirements for purchases and redemptions into and out of the fund. The notification requirements range from same day to 10 days. Although rare, there could be instances in which liquidity is suspended or in which purchases or sales occur at a price different from the NAV. The Cash and Cash Equivalents funds used are short-term collective investment funds that are comprised of short-term assets with fixed or variable interest rates that trade on a regular basis in active markets. Because there are no publicly listed price quotes available for the underlying investments or the commingled fund itself, the short-term collective investment funds are classified as Level 2. The Common and Preferred Stock Funds used are predominantly commingled index funds replicating well-known stock market indexes. Each of the common and preferred stock funds are comprised of common and preferred stock that trade on a regular basis in active markets. While the underlying investments of the commingled fund do have publicly listed price quotes available, the commingled fund does not so it is classified as Level 2. The Corporate Debt Fund is comprised of fixed income assets that have significant observable inputs that are classified as Level 2 and therefore the commingled fund is classified as Level 2 as well. Mortgage-Backed securities are classified as Level 3 at Aug. 31, 2014, because the underlying holdings are primarily privately placed securities without readily observable prices. In the absence of readily observable prices, in order to value the assets in the fund, the Mortgage-Backed securities investment management firm employs alternative pricing techniques that may be based upon current market prices of securities that are comparable in coupon, rating, maturity and industry. | ||||||||||||||||||||||||||||||||||||
Derivatives: The U.S. plan is permitted to use financial derivative instruments to hedge certain risks and for investment purposes. The plan enters into futures contracts in the normal course of its investing activities to manage market risk associated with the plan’s equity and fixed income investments and to achieve overall investment portfolio objectives. The credit risk associated with these contracts is minimal as they are traded on organized exchanges and settled daily. Exchange-traded equity index and interest rate futures are measured at fair value using quoted market prices making them qualify as Level 1 investments. The notional value of futures derivatives classified as Level 1 was $147 million as of Aug. 31, 2014. | ||||||||||||||||||||||||||||||||||||
The U.S. plan also holds listed common and preferred stock short sale positions, which involves a counter-party arrangement with a prime broker. The existence of the prime broker counter-party relationship introduces the possibility that short sale market values may need to be adjusted to reflect any counter-party risk; however, no such adjustment was required as of Aug. 31, 2014. Therefore, the short positions have been classified as Level 2, and their notional value was $53 million as of Aug. 31, 2014. | ||||||||||||||||||||||||||||||||||||
Insurance-backed securities: Insurance-backed securities are contracts held with an insurance company. The Level 3 fair value of the investments is determined based upon the value of the underlying investments as determined by the insurance company. | ||||||||||||||||||||||||||||||||||||
Collateral held under securities lending agreement: The U.S. Plan participates in a securities lending program through Northern Trust. Securities loaned are fully collateralized by cash and U.S. government securities. Northern Trust pools all collateral received and invests any cash in an actively managed commingled fund, the underlying assets of which include short-term fixed income securities such as commercial paper, U.S. Treasury Bills, and various forms of asset-backed securities, all of which would be classified individually as Level 2. The NAV is calculated daily, and under normal circumstances, redemptions can also occur daily with no required notice. Assets would be sold at the calculated NAV. Because the collateral pool itself lacks a formal public market and price quotes, it is classified as Level 2. | ||||||||||||||||||||||||||||||||||||
Expected Cash Flows | ||||||||||||||||||||||||||||||||||||
The expected employer contributions and benefit payments are shown in the following table for the pension plans: | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | U.S. | Outside the | ||||||||||||||||||||||||||||||||||
U.S. | ||||||||||||||||||||||||||||||||||||
Employer Contributions 2015 (funded Plans) | $ | 30 | $ | 11 | ||||||||||||||||||||||||||||||||
Benefits Paid Directly by Employer 2015 (unfunded Plans) | 6 | 7 | ||||||||||||||||||||||||||||||||||
Benefit Payments(1) | ||||||||||||||||||||||||||||||||||||
2015 | 183 | 24 | ||||||||||||||||||||||||||||||||||
2016 | 173 | 14 | ||||||||||||||||||||||||||||||||||
2017 | 174 | 17 | ||||||||||||||||||||||||||||||||||
2018 | 174 | 17 | ||||||||||||||||||||||||||||||||||
2019 | 174 | 15 | ||||||||||||||||||||||||||||||||||
2020-2024 | 831 | 88 | ||||||||||||||||||||||||||||||||||
(1) | Expected benefit payments include benefits paid directly by employer for unfunded plans. | |||||||||||||||||||||||||||||||||||
The company may contribute additional amounts to the plans depending on the level of future contributions required. | ||||||||||||||||||||||||||||||||||||
Multiemployer Plan | ||||||||||||||||||||||||||||||||||||
Monsanto participates in an industry-wide multiemployer plan in the Netherlands called Stichting Bedrijfspensioenfonds voor de Landbouw (BPL) that provides indexed career-average pension benefits and life insurance benefits. Monsanto is one of more than 33,750 employers participating in the BPL, which covers nearly 90,000 participants. The plan year is based on a calendar year ending December 31. At Dec. 31, 2013, the BPL had assets of approximately $14 billion, which covered approximately 109% of the plan’s benefit obligation. Participating employers and their employees are required to contribute a percent of salary to the plan each plan year. The percentage, which is determined annually by the BPL actuary, is 21.7% of salary for plan year 2014, with employers contributing 17.09% of salary and the balance contributed by the plan participants. An additional surcharge equal to 1.25% of salary up to a specified salary threshold is also required as part of the employer contribution. Monsanto’s contributions totaled $6 million in each of fiscal years 2014, 2013 and 2012. The contribution percentages, including both employer and plan participant contributions, were 21.7%, 19.5% and 18.15% in plan years 2013, 2012 and 2011, respectively. | ||||||||||||||||||||||||||||||||||||
Contributions are used to pay benefits under the plan, including insurance premiums for the life insurance benefits, and to fund the plan. If an employer does not meet its contribution requirement, benefits cease to accrue for their employees. | ||||||||||||||||||||||||||||||||||||
If the assets of the BPL are not sufficient to meet the plan’s benefit obligation, the BPL may increase the contribution rates, reduce pension indexation or reduce benefit accruals. |
POSTRETIREMENT_BENEFITS_HEALTH
POSTRETIREMENT BENEFITS - HEALTH CARE AND OTHER POSTEMPLOYMENT BENEFITS | 12 Months Ended | |||||||||||
Aug. 31, 2014 | ||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||
POSTRETIREMENT BENEFITS - HEALTH CARE AND OTHER POSTEMPLOYEMENT BENEFITS | ' | |||||||||||
POSTRETIREMENT BENEFITS — HEALTH CARE AND OTHER POSTEMPLOYMENT BENEFITS | ||||||||||||
Monsanto-Sponsored Plans | ||||||||||||
Substantially all regular full-time U.S. employees hired prior to May 1, 2002, and certain employees in other countries become eligible for company-subsidized postretirement health care benefits if they reach retirement age while employed by Monsanto and have the requisite service history. Employees who retired from Monsanto prior to Jan. 1, 2003, were eligible for retiree life insurance benefits. These postretirement benefits are unfunded and are generally based on the employees’ years of service or compensation levels, or both. The costs of postretirement benefits are accrued by the date the employees become eligible for the benefits. Total postretirement benefit costs for Monsanto employees and the former employees included in Monsanto’s Statements of Consolidated Operations in fiscal years 2014, 2013 and 2012, were less than $1 million, $9 million and $13 million, respectively. | ||||||||||||
The following information pertains to the postretirement benefit plans in which Monsanto employees and certain former employees of Pharmacia allocated to Monsanto participated, principally health care plans and life insurance plans. The cost components of these plans were: | ||||||||||||
Year Ended Aug. 31, | ||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | |||||||||
Service Cost for Benefits Earned During the Period | $ | 7 | $ | 9 | $ | 10 | ||||||
Interest Cost on Benefit Obligation | 7 | 6 | 10 | |||||||||
Amortization of Prior Service Credit | (1 | ) | (1 | ) | (1 | ) | ||||||
Amortization of Actuarial Gain | (13 | ) | (5 | ) | (6 | ) | ||||||
Total Net Periodic Benefit Cost | $ | — | $ | 9 | $ | 13 | ||||||
The other changes in plan assets and benefit obligations recognized in accumulated other comprehensive loss for the year ended Aug. 31, 2014, and Aug. 31, 2013, were: | ||||||||||||
Year Ended Aug. 31, | ||||||||||||
(Dollars in millions) | 2014 | 2013 | ||||||||||
Actuarial Loss (Gain) | $ | 6 | $ | (13 | ) | |||||||
Amortization of Prior Service Credit | 1 | 1 | ||||||||||
Amortization of Actuarial Gain | 13 | 5 | ||||||||||
Total Loss (Gain) Recognized in Accumulated Other Comprehensive Loss | $ | 20 | $ | (7 | ) | |||||||
The following assumptions, calculated on a weighted-average basis, were used to determine the postretirement costs for the principal plans in which Monsanto employees participated: | ||||||||||||
Year Ended Aug. 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Discount Rate Postretirement | 3.95% | 2.95% | 4.30% | |||||||||
Discount Rate Postemployment | 2.55% | 1.55% | 2.20% | |||||||||
Initial Trend Rate for Health Care Costs | 6.50% | 7.00% | 7.00% | |||||||||
Ultimate Trend Rate for Health Care Costs | 5.00% | 5.00% | 5.00% | |||||||||
A 6.5 percent annual rate of increase in the per capita cost of covered health care benefits was assumed for fiscal year 2014. This assumption is consistent with the plans’ recent experience and expectations of future growth. It is assumed that the rate will decrease gradually to 5 percent for fiscal year 2017 and remain at that level thereafter. Assumed health care cost trend rates have an effect on the amounts reported for the health care plans. A 1 percentage-point change in assumed health care cost trend rates would have the following effects: | ||||||||||||
(Dollars in millions) | 1 Percentage-Point | 1 Percentage-Point | ||||||||||
Increase | Decrease | |||||||||||
Effect on Total of Service and Interest Cost | $1 | ($1) | ||||||||||
Effect on Postretirement Benefit Obligation | $4 | ($4) | ||||||||||
Monsanto uses a measurement date of August 31 for its other postretirement benefit plans. The status of the postretirement health care, life insurance and employee disability benefit plans in which Monsanto employees participated was as follows for the periods indicated: | ||||||||||||
Year Ended Aug. 31, | ||||||||||||
(Dollars in millions) | 2014 | 2013 | ||||||||||
Change in Benefit Obligation: | ||||||||||||
Benefit obligation at beginning of period | $ | 192 | $ | 215 | ||||||||
Service cost | 7 | 9 | ||||||||||
Interest cost | 7 | 6 | ||||||||||
Actuarial loss (gain) | 6 | (13 | ) | |||||||||
Plan participant contributions | 5 | 4 | ||||||||||
Medicare Part D subsidy receipts | 1 | 1 | ||||||||||
Benefits paid | (29 | ) | (29 | ) | ||||||||
Currency impact | — | (1 | ) | |||||||||
Benefit Obligation at End of Period | $ | 189 | $ | 192 | ||||||||
Weighted-average assumptions used to determine benefit obligations as of Aug. 31, 2014, and Aug. 31, 2013, were as follows: | ||||||||||||
Year Ended Aug. 31, | ||||||||||||
2014 | 2013 | |||||||||||
Discount Rate Postretirement | 3.60% | 3.95% | ||||||||||
Discount Rate Postemployment | 2.40% | 2.55% | ||||||||||
Initial Trend Rate for Health Care Costs(1) | 6.00% | 6.50% | ||||||||||
Ultimate Trend Rate for Health Care Costs | 5.00% | 5.00% | ||||||||||
(1) | As of Aug. 31, 2014, this rate is assumed to decrease gradually to 5 percent for 2017 and remain at that level thereafter. | |||||||||||
As of Aug. 31, 2014, and Aug. 31, 2013, amounts recognized in the Statements of Consolidated Financial Position were as follows: | ||||||||||||
As of Aug. 31, | ||||||||||||
(Dollars in millions) | 2014 | 2013 | ||||||||||
Miscellaneous Short-Term Accruals | $ | 22 | $ | 22 | ||||||||
Postretirement Liabilities | 167 | 170 | ||||||||||
Total Liability Recognized | $ | 189 | $ | 192 | ||||||||
Asset allocation is not applicable to the company’s other postretirement benefit plans because these plans are unfunded. | ||||||||||||
The following table provides a summary of the pretax components of the amount recognized in accumulated other comprehensive loss: | ||||||||||||
Year Ended Aug. 31, | ||||||||||||
(Dollars in millions) | 2014 | 2013 | ||||||||||
Actuarial Gain | $ | (23 | ) | $ | (42 | ) | ||||||
Prior Service Credit | (1 | ) | (2 | ) | ||||||||
Total | $ | (24 | ) | $ | (44 | ) | ||||||
The estimated net gain and prior service credit for the defined benefit postretirement plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year are $4 million and $1 million, respectively. | ||||||||||||
Expected Cash Flows | ||||||||||||
Information about the expected cash flows for the other postretirement benefit plans follows: | ||||||||||||
(Dollars in millions) | Total | |||||||||||
Benefits Paid Directly by Employer 2015 | $ | 22 | ||||||||||
Benefit Payments(1) (2) | ||||||||||||
2015 | 22 | |||||||||||
2016 | 23 | |||||||||||
2017 | 22 | |||||||||||
2018 | 21 | |||||||||||
2019 | 19 | |||||||||||
2020-2024 | 77 | |||||||||||
(1) Benefit payments are net of expected federal subsidy receipts related to prescription drug benefits granted under the Medicare Prescription Drug Improvement and Modernization Act of 2003, which are estimated to be less than $1 million annually. | ||||||||||||
(2) Expected benefit payments include benefits paid directly by employer for unfunded plans. | ||||||||||||
Expected contributions include other postretirement benefits of $22 million to be paid from employer assets in fiscal year 2015. Total benefits expected to be paid include both the company’s share of the benefit cost and the participants’ share of the cost, which is funded by participant contributions to the plan. | ||||||||||||
Other Sponsored Plans | ||||||||||||
Other plans are offered to certain eligible employees. There is an accrual of $31 million as of both Aug. 31, 2014, and Aug. 31, 2013, in the Statements of Consolidated Financial Position for anticipated payments to employees who have retired or terminated their employment. |
EMPLOYEE_SAVINGS_PLANS
EMPLOYEE SAVINGS PLANS | 12 Months Ended |
Aug. 31, 2014 | |
EMPLOYEE SAVINGS PLANS [Abstract] | ' |
EMPLOYEE SAVINGS PLANS | ' |
EMPLOYEE SAVINGS PLANS | |
Monsanto-Sponsored Plans | |
The U.S. tax-qualified Monsanto Savings and Investment Plan (Monsanto SIP) was established in June 2001 as a successor to a portion of the Pharmacia Corporation Savings and Investment Plan. The Monsanto SIP is a defined contribution profit-sharing plan with an individual account for each participant. Employees who are 18 years of age or older are generally eligible to participate in the plan. The Monsanto SIP provides for voluntary contributions, generally ranging from 1 percent to 25 percent of an employee’s eligible pay. | |
For employees hired prior to July 8, 2012, through December 2012, contributions to the Monsanto SIP, up to a maximum of 7 percent of eligible pay, were matched 60 percent by the company. Effective in January 2013, the Company matched 80 percent of such employee contributions, up to a maximum of 8 percent of eligible pay. For employees hired on or after July 8, 2012, contributions to the Monsanto SIP, up to a maximum of 8 percent of eligible pay, were matched 80 percent by the Company. Prior to July 8, 2012, Monsanto satisfied its matching contribution obligations under the Monsanto SIP with shares released from the leveraged employee stock ownership plan (Monsanto ESOP). Effective July 8, 2012, Monsanto satisfies its matching contribution obligations, and its new non-elective contribution for employees hired on or after July 8, 2012, with cash. The Monsanto ESOP was leveraged by debt due to Monsanto. The debt, which was repaid in full in December 2012, was repaid primarily through company contributions and dividends paid on Monsanto common stock held in the ESOP. As of Aug. 31, 2014, the Monsanto ESOP held 4.5 million shares of Monsanto common stock. | |
Dividends paid on the shares held by the Monsanto ESOP were $8 million in each of the fiscal years 2014, 2013 and 2012. These dividends were greater than the cost of the shares allocated to the participants resulting in total ESOP expense of less than $1 million in 2013 and 2012. There was no ESOP expense in 2014. In 2014, the Monsanto SIP recognized expense of $60 million for matching contributions. In 2013, the Monsanto SIP recognized expense of $18 million for matching contributions made in cash over and above the amount required to reduce the ESOP enhancements liabilities to zero. In 2014 and 2013, the Monsanto SIP recognized expense of $3 million and less than $1 million, respectively, for non-elective contributions made in cash for employees hired on or after July 8, 2012. |
STOCKBASED_COMPENSATION_PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended | |||||||||||||||||||||||
Aug. 31, 2014 | ||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||||||||||
STOCK-BASED COMPENSATION PLANS | ' | |||||||||||||||||||||||
STOCK-BASED COMPENSATION PLANS | ||||||||||||||||||||||||
Stock-based compensation expense of $121 million, $100 million and $130 million was recognized under the Compensation – Stock Compensation topic of the ASC in fiscal years 2014, 2013 and 2012, respectively. Stock-based compensation expense recognized during the period is based on the value of the portion of share-based payment awards that are ultimately expected to vest. Compensation cost capitalized as part of inventory was $3 million, $3 million and $6 million as of Aug. 31, 2014, Aug. 31, 2013 and Aug. 31, 2012, respectively. The Compensation – Stock Compensation topic of the ASC requires that excess tax benefits be reported as a financing cash inflow rather than as a reduction of taxes paid, which is included within operating cash flows. Monsanto’s income taxes currently payable have been reduced by the tax benefits from employee stock option exercises and restricted stock award vestings. The excess tax benefits were recorded as an increase to additional paid-in capital. The following table shows the components of stock-based compensation in the Statements of Consolidated Operations and Statements of Consolidated Cash Flows. | ||||||||||||||||||||||||
Year Ended Aug. 31, | ||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Cost of Goods Sold | $ | 8 | $ | 11 | $ | 19 | ||||||||||||||||||
Selling, General and Administrative Expenses | 82 | 69 | 82 | |||||||||||||||||||||
Research and Development Expenses | 31 | 20 | 29 | |||||||||||||||||||||
Total Stock-Based Compensation Expense Included in Operating Expenses | 121 | 100 | 130 | |||||||||||||||||||||
Loss from Continuing Operations Before Income Taxes | (121 | ) | (100 | ) | (130 | ) | ||||||||||||||||||
Income Tax Benefit | 40 | 34 | 43 | |||||||||||||||||||||
Net Loss | $ | (81 | ) | $ | (66 | ) | $ | (87 | ) | |||||||||||||||
Basic Loss per Share | $ | (0.16 | ) | $ | (0.12 | ) | $ | (0.16 | ) | |||||||||||||||
Diluted Loss per Share | $ | (0.15 | ) | $ | (0.12 | ) | $ | (0.16 | ) | |||||||||||||||
Net Cash Required by Operating Activities | $ | (72 | ) | $ | (79 | ) | $ | (50 | ) | |||||||||||||||
Net Cash Provided by Financing Activities | $ | 72 | $ | 79 | $ | 50 | ||||||||||||||||||
Plan Descriptions: Share-based awards are designed to reward employees for their long-term contributions to the company and to provide incentives for them to remain with the company. Monsanto issues stock options, restricted stock, restricted stock units and deferred stock. Prior to Jan. 24, 2012, Monsanto had three compensation plans, which the company refers to as “prior equity plans,” under which the company granted awards to key officers, non-employee directors and employees of Monsanto: (1) the Monsanto Company Long-Term Incentive Plan, as amended (2000 LTIP), (2) the Monsanto Company 2005 Long-Term Incentive Plan, as previously amended and restated (2005 LTIP), and (3) the Monsanto Broad-Based Stock Option Plan, as amended (Broad-Based Plan). | ||||||||||||||||||||||||
On Jan. 24, 2012, Monsanto shareowners approved a total of 33.6 million shares to be available for grants of awards under the Monsanto Company 2005 Long-Term Incentive Plan as Amended and Restated as of Jan. 24, 2012 (Amended 2005 LTIP) after Aug. 31, 2011 (including for this purpose awards made after Aug. 31, 2011 under our prior equity plans). This included 25.0 million new shares in addition to the 8.6 million shares remaining available for future grant as of Aug. 31, 2011. The delivery of shares pursuant to restricted stock, restricted stock units and deferred stock awards will reduce the remaining available shares by 2.7 shares per share delivered. Upon shareowner approval of the Amended 2005 LTIP, no further awards may be granted under our prior equity plans, although awards granted under such plans prior to the commencement of the Amended 2005 LTIP will continue to remain outstanding under their terms. As of Aug. 31, 2014, 25.2 million shares were available for grant under the Amended 2005 LTIP. | ||||||||||||||||||||||||
The plans provide that the term of any option granted may not exceed 10 years and that each option may be exercised for such period as may be specified in the terms and conditions of the grant, as approved by the People and Compensation Committee of the Board of Directors. Generally, the options vest over three years, with one-third of the total award vesting each year. Grants of restricted stock or restricted stock units generally vest at the end of a three- to four-year service period as specified in the terms and conditions of the grant, as approved by the People and Compensation Committee of the Board of Directors. | ||||||||||||||||||||||||
Upon purchase of The Climate Corporation, Monsanto assumed The Climate Corporation 2006 Stock Plan as Amended on Oct. 30, 2013 ("Amended Climate Plan"). This included 2.0 million shares available for grant as of Nov. 1, 2013. The plan provides that the term of any option granted may not exceed 10 years and that each option may be exercised for such period as may be specified in the terms and conditions of the grant. Generally, options vest monthly over a period of up to four years. The Climate Corporation had outstanding unvested options at the acquisition date that were assumed by Monsanto. The assumed options were converted to Monsanto options at the option ratio of 0.11 Monsanto options for each option of The Climate Corporation. Grants of restricted stock units generally vest quarterly over a period of up to four years. The Climate Corporation had outstanding restricted stock units at the acquisition date that were assumed by Monsanto. The assumed restricted stock units were converted to Monsanto restricted stock units at the acquisition date using the aforementioned conversion ratio. As of Aug. 31, 2014, 1.1 million shares were available for grant under the Amended Climate Plan. | ||||||||||||||||||||||||
Under all plans discussed above, restricted stock and restricted stock units represent the right to receive a number of shares of stock dependent upon vesting requirements. Vesting is subject to the terms and conditions of the grant, which generally require the employees’ continued employment during the designated service period and may also be subject to Monsanto’s attainment of specified performance criteria during the designated performance period. Shares related to restricted stock and restricted stock units are released to employees upon satisfaction of all vesting requirements. Compensation expense for stock options, restricted stock and restricted stock units is measured at fair value on the date of grant, net of estimated forfeitures, and recognized over the vesting period of the award. | ||||||||||||||||||||||||
Certain Monsanto employees outside the United States may receive stock appreciation rights or cash settled restricted stock units as part of Monsanto’s stock compensation plans. In addition, certain employees on an international assignment may receive phantom stock awards that are based on the value of the company’s stock, but paid in cash upon the occurrence of certain events. Stock appreciation rights entitle employees to receive a cash amount determined by the appreciation in the fair value of the company’s common stock between the grant date of the award and the date of exercise. Cash settled restricted stock units and phantom stock awards entitle employees to receive a cash amount determined by the fair value of the company’s common stock on the vesting date. As of Aug. 31, 2014, the fair value of stock appreciation rights, cash settled restricted stock units and phantom stock accounted for as liability awards was less than $1 million, $1 million and $1 million, respectively. The fair value is remeasured at the end of each reporting period until exercised or vested, and compensation expense is recognized over the requisite service period in accordance with the Compensation — Stock Compensation topic of the ASC. Share-based liabilities paid related to stock appreciation rights were less than $1 million in each of the fiscal years 2014, 2013 and 2012. Additionally, $1 million was paid related to phantom stock in each of the fiscal years 2014, 2013 and 2012. | ||||||||||||||||||||||||
Monsanto also issues share-based awards under the Monsanto Non-Employee Director Equity Incentive Compensation Plan (Director Plan) for directors who are not employees of Monsanto or its affiliates. Under the Director Plan, half of the annual retainer for each non-employee director is paid in the form of deferred stock — shares of common stock to be delivered at a specified future time. The remainder is payable, at the election of each director, in the form of restricted stock, deferred stock, current cash and/or deferred cash. The Director Plan also provides that a non-employee director will receive a one-time restricted stock grant upon becoming a member of Monsanto’s board of directors which is equivalent to the annual retainer divided by the closing stock price on the service commencement date. The restricted stock grant will vest on the third anniversary of the grant date. Awards of deferred stock and restricted stock under the Director Plan are granted under the Amended 2005 LTIP as provided for in the Director Plan. The grant date fair value of awards outstanding under the Director Plan was $16 million as of Aug. 31, 2014. Compensation expense for most awards under the Director Plan is measured at fair value at the date of grant and recognized over the vesting period of the award. There was less than $1 million in 2014 and 2013, and $1 million in 2012 of share-based liabilities paid under the Director Plan. Additionally, 278,093 shares of directors’ deferred stock related to grants and dividend equivalents were vested and outstanding at Aug. 31, 2014. | ||||||||||||||||||||||||
A summary of the status of Monsanto’s stock options for the periods from Sept. 1, 2011, through August 31, 2014, follows: | ||||||||||||||||||||||||
Options | Outstanding | |||||||||||||||||||||||
Weighted-Average | ||||||||||||||||||||||||
Exercise Price | ||||||||||||||||||||||||
Balance Outstanding Aug. 31, 2011 | 21,509,035 | $ | 51.78 | |||||||||||||||||||||
Granted | 2,300,980 | 74.76 | ||||||||||||||||||||||
Exercised | (3,967,203 | ) | 29.51 | |||||||||||||||||||||
Forfeited | (387,878 | ) | 76.12 | |||||||||||||||||||||
Balance Outstanding Aug. 31, 2012 | 19,454,934 | 58.56 | ||||||||||||||||||||||
Granted | 1,912,030 | 90.7 | ||||||||||||||||||||||
Exercised | (5,306,225 | ) | 48.33 | |||||||||||||||||||||
Forfeited | (196,852 | ) | 79.95 | |||||||||||||||||||||
Balance Outstanding Aug. 31, 2013 | 15,863,887 | 65.59 | ||||||||||||||||||||||
Granted | 2,302,786 | 84.97 | ||||||||||||||||||||||
Exercised | (4,537,028 | ) | 54.72 | |||||||||||||||||||||
Forfeited | (192,010 | ) | 90.06 | |||||||||||||||||||||
Balance Outstanding Aug. 31, 2014 | 13,437,635 | $ | 72.23 | |||||||||||||||||||||
At Aug. 31, 2014, 9,568,016 stock options were exercisable. The weighted-average remaining contractual life of these stock options was 4 years and the weighted-average exercise price was $66.46 per share. The aggregate intrinsic value of these stock options was $471 million at Aug. 31, 2014. | ||||||||||||||||||||||||
At Aug. 31, 2014, 13,092,252 stock options were vested or expected to vest. The weighted-average remaining contractual life of these stock options was 6 years and the weighted-average exercise price was $71.62 per share. The aggregate intrinsic value of these stock options was $576 million at Aug. 31, 2014. | ||||||||||||||||||||||||
The weighted-average grant-date fair value of stock options granted during fiscal years 2014, 2013 and 2012 was $38.23, $21.46 and $21.87, respectively, per share. The total pretax intrinsic value of options exercised during the fiscal years ended 2014, 2013 and 2012 was $273 million, $272 million and $201 million, respectively. Pretax unrecognized compensation expense for stock options, net of estimated forfeitures, was $63 million as of Aug. 31, 2014, and will be recognized as expense over a weighted-average remaining vesting period of 2 years. | ||||||||||||||||||||||||
A summary of the status of Monsanto’s restricted stock, restricted stock units and directors’ deferred stock compensation plans for fiscal year 2014 follows in the tables below: | ||||||||||||||||||||||||
Restricted | Weighted-Average | Restricted | Weighted-Average | Directors’ | Weighted-Average | |||||||||||||||||||
Stock | Grant Date | Stock | Grant Date | Deferred | Grant Date | |||||||||||||||||||
Fair Values | Units | Fair Values | Stock | Fair Value | ||||||||||||||||||||
Nonvested as of Aug. 31, 2013 | 7,951 | $ | 76.1 | 1,656,187 | $ | 77.15 | — | $ | — | |||||||||||||||
Granted | 4,831 | 108.1 | 1,185,136 | 102.1 | 18,903 | 98.38 | ||||||||||||||||||
Vested | (8,740 | ) | 77.48 | (428,942 | ) | 73.91 | (18,903 | ) | 98.38 | |||||||||||||||
Forfeitures | — | — | (183,384 | ) | 95.3 | — | — | |||||||||||||||||
Nonvested as of Aug. 31, 2014 | 4,042 | $ | 111.37 | 2,228,997 | $ | 89.54 | — | $ | — | |||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||
Pre-tax unrecognized compensation expense, net of estimated forfeitures as applicable | $ | — | $ | 94 | $ | — | ||||||||||||||||||
Remaining weighted-average period of expense recognition/requisite service periods in years | 2 | 2 | 0 | |||||||||||||||||||||
Weighted-average grant-date | Total fair value of equity | |||||||||||||||||||||||
fair value during fiscal year | vested during fiscal year | |||||||||||||||||||||||
(Dollars in millions, except per share amounts) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
Restricted stock | $ | 108.1 | $ | 96.06 | $ | 68.93 | $ | 1 | $ | — | $ | 1 | ||||||||||||
Restricted stock units | $ | 102.1 | $ | 88.8 | $ | 71.65 | $ | 32 | $ | 16 | $ | 102 | ||||||||||||
Directors’ deferred stock | $ | 98.38 | $ | 87.58 | $ | 68.93 | $ | — | $ | 2 | $ | 1 | ||||||||||||
Valuation and Expense Information under the Compensation — Stock Compensation topic of the ASC: Monsanto estimates the value of employee stock options on the date of grant using a lattice-binomial model. A lattice-binomial model requires the use of extensive actual employee exercise behavior data and a number of complex assumptions including volatility, risk-free interest rate and expected dividends. Expected volatilities used in the model are based on implied volatilities from traded options on Monsanto’s stock and historical volatility of Monsanto’s stock price. The expected life represents the weighted-average period the stock options are expected to remain outstanding and is a derived output of the model. The lattice-binomial model incorporates exercise and post-vesting forfeiture assumptions based on an analysis of historical data. The following assumptions were used to calculate the estimated value of employee stock options: | ||||||||||||||||||||||||
Lattice-binomial | ||||||||||||||||||||||||
Assumptions | 2014 | 2013 | 2012 | |||||||||||||||||||||
Expected Dividend Yield | 1.7 | % | 1.9 | % | 1.8 | % | ||||||||||||||||||
Expected Volatility | 19%-36% | 23%-37% | 28%-39% | |||||||||||||||||||||
Weighted-Average Volatility | 27.5 | % | 30.4 | % | 37 | % | ||||||||||||||||||
Risk-Free Interest Rates | 0.70%-2.34% | 0.85%-2.00% | 0.98%-1.62% | |||||||||||||||||||||
Weighted-Average Risk-Free Interest Rate | 1.66 | % | 1.14 | % | 1.57 | % | ||||||||||||||||||
Expected Option Life (in years) | 6 | 7 | 6 | |||||||||||||||||||||
Monsanto estimates the value of restricted stock units using the fair value on the date of grant. When dividends are not paid on outstanding restricted stock units, the award is valued by reducing the grant-date price by the present value of the dividends expected to be paid, discounted at the appropriate risk-free interest rate. The fair value of restricted stock units granted is calculated using the same expected dividend yield and weighted-average risk-free interest rate assumptions as those used for stock options. |
CAPITAL_STOCK
CAPITAL STOCK | 12 Months Ended |
Aug. 31, 2014 | |
CAPITAL STOCK [Abstract] | ' |
CAPITAL STOCK | ' |
CAPITAL STOCK | |
Monsanto is authorized to issue 1.5 billion shares of common stock, $0.01 par value, and 20 million shares of undesignated preferred stock, $0.01 par value. The board of directors has the authority, without action by the shareowners, to designate and issue preferred stock in one or more series and to designate the rights, preferences and privileges of each series, which may be greater than the rights of the company’s common stock. It is not possible to state the actual effect of the issuance of any shares of preferred stock upon the rights of holders of common stock until the board of directors determines the specific rights of the holders of preferred stock. | |
The authorization of undesignated preferred stock makes it possible for Monsanto’s board of directors to issue preferred stock with voting or other rights or preferences that could impede the success of any attempt to change control of the company. These and other provisions may deter hostile takeovers or delay attempts to change management control. | |
There were no shares of preferred stock outstanding as of Aug. 31, 2014, or Aug. 31, 2013. As of Aug. 31, 2014, and Aug. 31, 2013, 485.3 million and 529.0 million shares of common stock were outstanding, respectively. | |
On July 1, 2014, Monsanto entered into uncollared accelerated share repurchase (“ASR”) agreements with each of JPMorgan Chase Bank, N.A. (“JPMorgan”) and Goldman, Sachs & Co. (“Goldman Sachs”). Under the ASR agreements, the company agreed to purchase approximately $6.0 billion of Monsanto common stock, in total. On July 7, 2014, JPMorgan and Goldman Sachs delivered to Monsanto approximately 38.6 million shares in total based on then-current market prices, and Monsanto paid a total of $6.0 billion. The payments to JPMorgan and Goldman Sachs were recorded as a reduction to shareowners' equity, consisting of a $4.8 billion increase in treasury stock, which reflects the value of the 38.6 million shares received upon initial settlement, and a $1.2 billion decrease in additional contributed capital, which reflects the value of the stock held back by JPMorgan and Goldman Sachs pending final settlement of the ASR agreements. The final number of shares of Monsanto common stock that the company may receive, or may be required to remit, upon settlement under the ASR agreements will be based upon the average daily volume weighted-average price of Monsanto common stock during the term of the ASR agreements, less a negotiated discount. Final settlement of each ASR agreement is expected to occur by the end of the third quarter of 2015, and may occur earlier at the option of JPMorgan and Goldman Sachs. The terms of the ASR agreements are subject to adjustment if Monsanto were to enter into or announce certain types of transactions that may affect the company's stock. If Monsanto is obligated to make an adjustment payment to either or both of JPMorgan or Goldman Sachs under the ASR agreements, the company may elect to satisfy such obligation in cash or in shares of Monsanto common stock. The ASR agreements were entered into pursuant to the share repurchase programs announced in June 2013 and in June 2014 as discussed below, and were funded by the July 2014 debt issuance disclosed in Note 14 - Debt and Other Credit Arrangements. | |
In June 2014, the company announced a new share repurchase program for up to $10 billion of the company's common stock over a two-year period. This repurchase program commenced on July 1, 2014. For the year ended Aug. 31, 2014, 31.6 million shares have been repurchased for$5.1 billion, which includes the $1.2 billion value of the stock held back by JPMorgan and Goldman Sachs pending final settlement of the ASR as noted above, under the June 2014 program. | |
In June 2013, the company announced a share repurchase program, effective July 1, 2013, for up to $2 billion of the company's common stock over a three-year period. This repurchase program commenced on Aug. 20, 2013, and was completed on July 1, 2014. For the year ended Aug. 31, 2014 and Aug. 31, 2013, 17.0 million and 0.3 million shares have been repurchased for $1.97 billion and $30 million, respectively, under the June 2013 program. | |
In June 2012, the company announced a share repurchase program, effective July 1, 2012, for up to $1 billion of the company’s common stock over a three year period. This repurchase program commenced on Jan. 14, 2013, and was completed on Aug. 20, 2013. For the year ended Aug. 31, 2013, 9.9 million shares have been repurchased for $1 billion under the June 2012 program. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended | |||||||||||||||
Aug. 31, 2014 | ||||||||||||||||
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 twelve months ended Aug. 31, 2014: | ||||||||||||||||
(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, 2012 | $ | (602 | ) | $ | 5 | $ | 29 | $ | (468 | ) | $ | (1,036 | ) | |||
Other comprehensive income (loss) | (229 | ) | 3 | (144 | ) | 128 | (242 | ) | ||||||||
Balance as of Aug. 31, 2013 | (831 | ) | 8 | (115 | ) | (340 | ) | (1,278 | ) | |||||||
Other comprehensive income (loss) before reclassifications | 100 | — | (69 | ) | 88 | 119 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | (3 | ) | 17 | 31 | 45 | ||||||||||
Net current-period other comprehensive income (loss) | 100 | (3 | ) | (52 | ) | 119 | 164 | |||||||||
Balance as of Aug. 31, 2014 | $ | (731 | ) | $ | 5 | $ | (167 | ) | $ | (221 | ) | $ | (1,114 | ) | ||
The following table provides additional information regarding items reclassified out of accumulated other comprehensive loss into earnings during the twelve months ended Aug. 31, 2014: | ||||||||||||||||
Amount Reclassified from Accumulated Other Comprehensive Loss | Affected Line Item in the Statement of Consolidated Operations | |||||||||||||||
Twelve months ended Aug. 31, 2014 | ||||||||||||||||
Available for Sale Securities: | ||||||||||||||||
Gain on Sale of Security | $ | (6 | ) | Other expense, net | ||||||||||||
Impairment | 1 | Other expense, net | ||||||||||||||
(5 | ) | Total before income taxes | ||||||||||||||
2 | Income tax provision | |||||||||||||||
$ | (3 | ) | Net of tax | |||||||||||||
Cash Flow Hedges: | ||||||||||||||||
Foreign Exchange Contracts | $ | (3 | ) | Net sales | ||||||||||||
Foreign Exchange Contracts | 3 | Cost of goods sold | ||||||||||||||
Commodity Contracts | 14 | Cost of goods sold | ||||||||||||||
Interest Rate Contracts | 12 | Interest expense | ||||||||||||||
26 | Total before income taxes | |||||||||||||||
(9 | ) | Income tax provision | ||||||||||||||
$ | 17 | Net of tax | ||||||||||||||
Postretirement Benefit Items: | ||||||||||||||||
Amortization of Unrecognized Net Loss | $ | 14 | Inventory / Cost of goods sold(1) | |||||||||||||
Amortization of Unrecognized Net Loss | 36 | Selling, general and administrative expenses | ||||||||||||||
50 | Total before income taxes | |||||||||||||||
(19 | ) | Income tax provision | ||||||||||||||
$ | 31 | Net of tax | ||||||||||||||
Total Reclassifications For The Period | $ | 45 | 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 $14 million of net periodic benefit cost to inventory, of which approximately $14 million was recognized in cost of goods sold during the twelve months ended Aug. 31, 2014. See Note 17 - Postretirement Benefits - Pensions - and Note 18 - Postretirement Benefits - Health Care and Other Postemployment Benefits - for additional information. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||||
Aug. 31, 2014 | |||||||||
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 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 stock options were excluded from the computations of dilutive potential common shares as their exercise prices were greater than the average market price of common shares for the period. | |||||||||
Year Ended Aug. 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Weighted-Average Number of Common Shares | 519.3 | 533.7 | 534.1 | ||||||
Dilutive Potential Common Shares | 5.6 | 6 | 6.1 | ||||||
Antidilutive Potential Common Shares | 1.7 | 1.8 | 6.7 | ||||||
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 | 4.5 | ||||||
SUPPLEMENTAL_CASH_FLOW_INFORMA
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended | |||||||||||
Aug. 31, 2014 | ||||||||||||
Supplemental Cash Flow Information [Abstract] | ' | |||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ' | |||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||||||
Cash payments for interest and taxes during fiscal years 2014, 2013, and 2012, were as follows: | ||||||||||||
Year Ended Aug. 31, | ||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | |||||||||
Interest | $ | 158 | $ | 141 | $ | 159 | ||||||
Taxes | 1,019 | 907 | 688 | |||||||||
During fiscal years 2014, 2013 and 2012, the company recorded the following noncash investing and financing transactions: | ||||||||||||
• | In fourth quarter 2014, 2013 and 2012, the board of directors declared a dividend payable in first quarter 2015, 2014 and 2013, respectively. As of Aug. 31, 2014, 2013 and 2012, a dividend payable of $239 million, $228 million and $200 million, respectively, was recorded. | |||||||||||
• | During fiscal years 2014, 2013 and 2012, the company recognized noncash transactions related to stock-based compensation and acquisitions. See Note 20 - Stock-Based Compensation Plans - for further discussion of stock-based compensation and Note 4 - Business Combinations and Collaborative Arrangements - for acquisition activity. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||||||||||||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ' | ||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||||||||||||||||||||||
Contractual obligations: The following table sets forth the company’s estimates of future payments under contracts as of Aug. 31, 2014. | |||||||||||||||||||||||||||||
Payments Due by Fiscal Year Ending Aug. 31, | |||||||||||||||||||||||||||||
(Dollars in millions) | Total | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 and | ||||||||||||||||||||||
beyond | |||||||||||||||||||||||||||||
Total Debt, including Capital Lease Obligations(1) | $ | 7,761 | $ | 233 | $ | 307 | $ | 901 | $ | 302 | $ | 802 | $ | 5,216 | |||||||||||||||
Interest Payments Relating to Long-Term Debt and Capital Lease Obligations(1) | 5,755 | 273 | 272 | 261 | 261 | 255 | 236 | 4,458 | |||||||||||||||||||||
Operating Lease Obligations | 556 | 133 | 102 | 80 | 65 | 57 | 119 | ||||||||||||||||||||||
Purchase Obligations: | |||||||||||||||||||||||||||||
Commitments to purchase inventories | 2,079 | 1,201 | 255 | 217 | 216 | 186 | 4 | ||||||||||||||||||||||
Commitments to purchase breeding research | 605 | 55 | 55 | 55 | 55 | 55 | 330 | ||||||||||||||||||||||
R&D alliances and joint venture obligations | 182 | 53 | 54 | 32 | 28 | 8 | 7 | ||||||||||||||||||||||
Uncompleted additions to property | 79 | 72 | 7 | — | — | — | — | ||||||||||||||||||||||
Other purchase obligations | 15 | 12 | 1 | 1 | 1 | — | — | ||||||||||||||||||||||
Other Liabilities: | |||||||||||||||||||||||||||||
Postretirement liabilities(2) | 76 | 76 | — | — | — | — | — | ||||||||||||||||||||||
Unrecognized tax benefits(3) | 87 | — | — | — | — | — | — | ||||||||||||||||||||||
Other liabilities | 188 | 27 | 21 | 8 | 6 | 6 | 120 | ||||||||||||||||||||||
Total Contractual Obligations | $ | 17,383 | $ | 2,135 | $ | 1,074 | $ | 1,555 | $ | 928 | $ | 1,350 | $ | 10,254 | |||||||||||||||
(1) | For variable rate debt, interest is calculated using the applicable rates as of Aug. 31, 2014. | ||||||||||||||||||||||||||||
(2) | Includes the company’s planned pension and other postretirement benefit contributions for 2015. The actual amounts funded in 2015 may differ from the amounts listed above. Contributions in 2016 and beyond are excluded as those amounts are unknown. Refer to Note 17 - Postretirement Benefits - Pensions - and Note 18 - Postretirement Benefits - Health Care and Other Postemployment Benefits - for more information. | ||||||||||||||||||||||||||||
(3) | Unrecognized tax benefits relate to uncertain tax positions recorded under the Income Taxes topic of the ASC. The company is unable to reasonably predict the timing of tax settlements, as tax audits can involve complex issues and the resolution of those issues may span multiple years, particularly if subject to negotiation or litigation. See Note 13 - Income Taxes - for more information. | ||||||||||||||||||||||||||||
Leases: The company routinely leases buildings for use as administrative offices or warehousing, land for research facilities, company aircraft, railcars, motor vehicles and equipment. Assets held under capital leases are included in property, plant and equipment. Certain operating leases contain renewal options that may be exercised at Monsanto’s discretion. The expected lease term is considered in the decision as to whether a lease should be recorded as capital or operating. | |||||||||||||||||||||||||||||
Certain operating leases contain escalation provisions for an annual inflation adjustment factor and some are based on the CPI published by the Bureau of Labor Statistics. Additionally, certain leases require Monsanto to pay for property taxes, insurance, maintenance and other operating expenses called rent adjustments, which are subject to change over the life of the lease. These adjustments were not determinable at the time the lease agreements were executed. Therefore, Monsanto recognizes the expenses for rent and rent adjustments when they become known and payable, which is more representative of the time pattern in which the company derives the related benefit in accordance with the Leases topic of the ASC. | |||||||||||||||||||||||||||||
Other lease agreements provide for base rent adjustments contingent upon future changes in Monsanto’s use of the leased space. At the inception of these leases, Monsanto does not have the right to control more than the percentage defined in the lease agreement of the leased property. Therefore, as the company’s use of the leased space increases, the company recognizes rent expense for the additional leased property during the period during which the company has the right to control the use of additional property in accordance with the Leases topic of the ASC. | |||||||||||||||||||||||||||||
Rent expense was $272 million for fiscal year 2014, $259 million for fiscal year 2013 and $248 million for fiscal year 2012. | |||||||||||||||||||||||||||||
Guarantees: Monsanto may provide and has provided guarantees on behalf of its consolidated subsidiaries for obligations incurred in the normal course of business. Because these are guarantees of obligations of consolidated subsidiaries, Monsanto’s consolidated financial position is not affected by the issuance of these guarantees. | |||||||||||||||||||||||||||||
Monsanto warrants the performance of certain products through standard product warranties. In addition, Monsanto provides extensive marketing programs to increase sales and enhance customer satisfaction. These programs may include performance warranty features and indemnification for risks not related to performance, both of which are provided to qualifying customers on a contractual basis. The cost of payments for claims based on performance warranties has been, and is expected to continue to be, insignificant. It is not possible to predict the maximum potential amount of future payments for indemnification for losses not related to the performance of our products (for example, replanting due to extreme weather conditions), because it is not possible to predict whether the specified contingencies will occur and if so, to what extent. | |||||||||||||||||||||||||||||
In various circumstances, Monsanto has agreed to indemnify or reimburse other parties for various losses or expenses. For example, like many other companies, Monsanto has agreed to indemnify its officers and directors for liabilities incurred by reason of their position with Monsanto. Contracts for the sale or purchase of a business or line of business may require indemnification for various events, including certain events that arose before the sale, or tax liabilities that arise before, after or in connection with the sale. Certain seed licensee arrangements indemnify the licensee against liability and damages, including legal defense costs, arising from any claims of patent, copyright, trademark or trade secret infringement related to Monsanto’s trait technology. Germplasm licenses generally indemnify the licensee against claims related to the source or ownership of the licensed germplasm. Litigation settlement agreements may contain indemnification provisions covering future issues associated with the settled matter. Credit agreements and other financial agreements frequently require reimbursement for certain unanticipated costs resulting from changes in legal or regulatory requirements or guidelines. These agreements may also require reimbursement of withheld taxes, and additional payments that provide recipients amounts equal to the sums they would have received had no such withholding been made. Indemnities like those in this paragraph may be found in many types of agreements, including, for example, operating agreements, leases, purchase or sale agreements and other licenses. Leases may require indemnification for liabilities Monsanto’s operations may potentially create for the lessor or lessee. It is not possible to predict the maximum future payments possible under these or similar provisions because it is not possible to predict whether any of these contingencies will come to pass and if so, to what extent. Historically, these types of provisions did not have a material effect on Monsanto’s financial position, profitability or liquidity. Monsanto believes that if it were to incur a loss in any of these matters, it would not have a material effect on its financial position, profitability or liquidity. Based on the company’s current assessment of exposure, Monsanto has recorded a liability of less than $1 million as of Aug. 31, 2014 and Aug. 31, 2013, respectively, related to these indemnifications. | |||||||||||||||||||||||||||||
Monsanto provides guarantees for certain customer loans in the United States, Europe and Latin America. See Note 6 — Customer Financing Programs — for additional information. | |||||||||||||||||||||||||||||
Information regarding Monsanto’s indemnification obligations to Pharmacia under the Separation Agreement can be found below in the “Litigation” section of this note. | |||||||||||||||||||||||||||||
Customer Concentrations in Gross Trade Receivables: The following table sets forth Monsanto’s gross trade receivables as of Aug. 31, 2014, and Aug. 31, 2013, by significant customer concentrations: | |||||||||||||||||||||||||||||
As of Aug. 31, | |||||||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | |||||||||||||||||||||||||||
Europe-Africa(1) | $ | 522 | $ | 504 | |||||||||||||||||||||||||
U.S. Agricultural Product Distributors | 579 | 455 | |||||||||||||||||||||||||||
Argentina(1) | 327 | 298 | |||||||||||||||||||||||||||
Asia-Pacific(1) | 175 | 151 | |||||||||||||||||||||||||||
Mexico(1) | 160 | 132 | |||||||||||||||||||||||||||
Brazil(1) | 178 | 101 | |||||||||||||||||||||||||||
Canada(1) | 22 | 23 | |||||||||||||||||||||||||||
Other | 123 | 119 | |||||||||||||||||||||||||||
Gross Trade Receivables | 2,086 | 1,783 | |||||||||||||||||||||||||||
Less: Allowance for Doubtful Accounts | (72 | ) | (68 | ) | |||||||||||||||||||||||||
Net Trade Receivables | $ | 2,014 | $ | 1,715 | |||||||||||||||||||||||||
(1) | Represents customer receivables within the specified geography. | ||||||||||||||||||||||||||||
Environmental and Litigation Liabilities: Monsanto is involved in environmental remediation and legal proceedings related to its current business and also, pursuant to indemnification obligations, related to Pharmacia’s former chemical and agricultural businesses. In addition, Monsanto has liabilities established for various product claims. With respect to certain of these proceedings, Monsanto has established a reserve for the estimated liabilities. For more information on Monsanto’s policies regarding “Litigation and Other Contingencies”, see Note 2 — Significant Accounting Policies. Portions of the liability included in a reserve for which the amount and timing of cash payments are fixed or readily determinable were discounted, using a risk-free discount rate adjusted for inflation ranging from 2.6 to 3.5 percent. The remaining portions of the liability were not subject to discounting because of uncertainties in the timing of cash outlay. The following table provides a detailed summary of the discounted and undiscounted amounts included in the reserve for environmental and litigation liabilities: | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Aggregate Undiscounted Amount | $ | 149 | |||||||||||||||||||||||||||
Discounted Portion: | |||||||||||||||||||||||||||||
Expected payment (undiscounted) for: | |||||||||||||||||||||||||||||
2015 | 27 | ||||||||||||||||||||||||||||
2016 | 21 | ||||||||||||||||||||||||||||
2017 | 8 | ||||||||||||||||||||||||||||
2018 | 6 | ||||||||||||||||||||||||||||
2019 | 6 | ||||||||||||||||||||||||||||
Undiscounted aggregate expected payments after 2019 | 120 | ||||||||||||||||||||||||||||
Aggregate Amount to be Discounted as of Aug. 31, 2014 | 188 | ||||||||||||||||||||||||||||
Discount, as of Aug. 31, 2014 | (46 | ) | |||||||||||||||||||||||||||
Aggregate Discounted Amount Accrued as of Aug. 31, 2014 | $ | 142 | |||||||||||||||||||||||||||
Total Environmental and Litigation Reserve as of Aug. 31, 2014 | $ | 291 | |||||||||||||||||||||||||||
Changes in the environmental and litigation liabilities for fiscal years 2012, 2013 and 2014 are as follows: | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Balance at Aug. 31, 2011 | $ | 265 | |||||||||||||||||||||||||||
Payments | (53 | ) | |||||||||||||||||||||||||||
Accretion | 6 | ||||||||||||||||||||||||||||
Adjustments to liabilities recognized in fiscal year 2012 | 52 | ||||||||||||||||||||||||||||
Balance at Aug. 31, 2012 | $ | 270 | |||||||||||||||||||||||||||
Payments | (35 | ) | |||||||||||||||||||||||||||
Accretion | 5 | ||||||||||||||||||||||||||||
Adjustments to liabilities recognized in fiscal year 2013 | 31 | ||||||||||||||||||||||||||||
Balance at Aug. 31, 2013 | $ | 271 | |||||||||||||||||||||||||||
Payments | (69 | ) | |||||||||||||||||||||||||||
Accretion | 7 | ||||||||||||||||||||||||||||
Adjustments to liabilities recognized in fiscal year 2014 | 82 | ||||||||||||||||||||||||||||
Total Environmental and Litigation Reserve as of Aug. 31, 2014 | $ | 291 | |||||||||||||||||||||||||||
Environmental: Included in the liability are amounts related to environmental remediation of sites associated with Pharmacia’s former chemicals and agricultural businesses, with no single site representing the majority of the environmental liability. These sites are in various stages of environmental management: at some sites, work is in the early stages of assessment and investigation, while at others the cleanup remedies have been implemented and the remaining work consists of monitoring the integrity of that remedy. The extent of Monsanto’s involvement at the various sites ranges from less than 1 percent to 100 percent of the costs currently anticipated. At some sites, Monsanto is acting under court or agency order, while at others it is acting with very minimal government involvement. | |||||||||||||||||||||||||||||
Monsanto does not currently anticipate any material loss in excess of the amount recorded for the environmental sites reflected in the liability. However, it is possible that new information about these sites for which the accrual has been established, such as results of investigations by regulatory agencies, Monsanto or other parties, could require Monsanto to reassess its potential exposure related to environmental matters. Monsanto’s future remediation expenses at these sites may be affected by a number of uncertainties. These uncertainties include, but are not limited to, the method and extent of remediation, the percentage of material attributable to Monsanto at the sites relative to that attributable to other parties, and the financial capabilities of the other potentially responsible parties. Monsanto cannot reasonably estimate any additional loss and does not expect the resolution of such uncertainties, or environmental matters not reflected in the liability, to have a material adverse effect on its consolidated results of operations, financial position, cash flows or liquidity. | |||||||||||||||||||||||||||||
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. Following is a description of one of the more significant litigation matters reflected in the liability. | |||||||||||||||||||||||||||||
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. The objector filed a petition for writ of certiorari with the U.S. Supreme Court which was denied. The settlement is final and the parties have commenced performance of the terms of the settlement. | |||||||||||||||||||||||||||||
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. The settlement is final and the parties have commenced performance of the terms of the settlement. | |||||||||||||||||||||||||||||
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 positions 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. | |||||||||||||||||||||||||||||
Off-Balance Sheet Arrangement: In December 2013, Monsanto executed the first of a series of incentive agreements with the County of St. Louis, Missouri. Under these agreements Monsanto has transferred the Chesterfield, Missouri facilities 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 immediately leased the facility from the County of St. Louis and has an option to purchase the facility upon tendering the Industrial Revenue Bonds received to the County. 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 ASC 210, Balance Sheet, on the Statements of Consolidated Financial Position. As such, neither the Industrial Revenue Bonds nor the lease obligation are recorded on the Statements of Consolidated Financial Position as an asset or liability, respectively. The Chesterfield facilities and the expansion are being treated as being owned by Monsanto. |
SEGMENT_AND_GEOGRAPHIC_DATA
SEGMENT AND GEOGRAPHIC DATA | 12 Months Ended | |||||||||||||||||||
Aug. 31, 2014 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
SEGMENT AND GEOGRAPHIC DATA | ' | |||||||||||||||||||
SEGMENT AND GEOGRAPHIC DATA | ||||||||||||||||||||
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. EBIT is defined as earnings (loss) 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 activity. | ||||||||||||||||||||
Data for the Seeds and Genomics and Agricultural Productivity reportable segments, as well as for Monsanto’s significant operating segments, are presented in the table that follows: | ||||||||||||||||||||
Year Ended Aug. 31, | ||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Net Sales(1) | ||||||||||||||||||||
Corn seed and traits | $ | 6,401 | $ | 6,596 | $ | 5,814 | ||||||||||||||
Soybean seed and traits | 2,102 | 1,653 | 1,771 | |||||||||||||||||
Cotton seed and traits | 665 | 695 | 779 | |||||||||||||||||
Vegetable seeds | 867 | 821 | 851 | |||||||||||||||||
All other crops seeds and traits | 705 | 575 | 574 | |||||||||||||||||
Total Seeds and Genomics | $ | 10,740 | $ | 10,340 | $ | 9,789 | ||||||||||||||
Agricultural productivity | 5,115 | 4,521 | 3,715 | |||||||||||||||||
Total Agricultural Productivity | $ | 5,115 | $ | 4,521 | $ | 3,715 | ||||||||||||||
Total | $ | 15,855 | $ | 14,861 | $ | 13,504 | ||||||||||||||
Gross Profit | ||||||||||||||||||||
Corn seed and traits | $ | 3,932 | $ | 3,929 | $ | 3,589 | ||||||||||||||
Soybean seed and traits | 1,364 | 948 | 1,160 | |||||||||||||||||
Cotton seed and traits | 461 | 519 | 585 | |||||||||||||||||
Vegetable seeds | 401 | 337 | 419 | |||||||||||||||||
All other crops seeds and traits | 438 | 350 | 306 | |||||||||||||||||
Total Seeds and Genomics | $ | 6,596 | $ | 6,083 | $ | 6,059 | ||||||||||||||
Agricultural productivity | 1,978 | 1,570 | 986 | |||||||||||||||||
Total Agricultural Productivity | $ | 1,978 | $ | 1,570 | $ | 986 | ||||||||||||||
Total | $ | 8,574 | $ | 7,653 | $ | 7,045 | ||||||||||||||
EBIT(2)(3) | ||||||||||||||||||||
Seeds and genomics | $ | 2,607 | $ | 2,412 | $ | 2,570 | ||||||||||||||
Agricultural productivity | 1,345 | 1,048 | 477 | |||||||||||||||||
Total | $ | 3,952 | $ | 3,460 | $ | 3,047 | ||||||||||||||
Depreciation and Amortization Expense | ||||||||||||||||||||
Seeds and genomics | $ | 568 | $ | 495 | $ | 510 | ||||||||||||||
Agricultural productivity | 123 | 120 | 112 | |||||||||||||||||
Total | $ | 691 | $ | 615 | $ | 622 | ||||||||||||||
Equity Affiliate Loss (Income)(4) | ||||||||||||||||||||
Seeds and genomics | $ | 8 | $ | (15 | ) | $ | (10 | ) | ||||||||||||
Agricultural productivity | — | — | — | |||||||||||||||||
Total | $ | 8 | $ | (15 | ) | $ | (10 | ) | ||||||||||||
Total Assets(5) | ||||||||||||||||||||
Seeds and genomics | $ | 17,598 | $ | 16,246 | $ | 15,944 | ||||||||||||||
Agricultural productivity | 4,383 | 4,418 | 4,280 | |||||||||||||||||
Total | $ | 21,981 | $ | 20,664 | $ | 20,224 | ||||||||||||||
Property, Plant and Equipment Purchases | ||||||||||||||||||||
Seeds and genomics | $ | 831 | $ | 619 | $ | 493 | ||||||||||||||
Agricultural productivity | 174 | 122 | 153 | |||||||||||||||||
Total | $ | 1,005 | $ | 741 | $ | 646 | ||||||||||||||
Investment in Equity Affiliates | ||||||||||||||||||||
Seeds and genomics | $ | 126 | $ | 91 | $ | 142 | ||||||||||||||
Agricultural productivity | — | — | — | |||||||||||||||||
Total | $ | 126 | $ | 91 | $ | 142 | ||||||||||||||
(1) | Represents net sales from continuing operations. | |||||||||||||||||||
-2 | EBIT is defined as earnings (loss) before interest and taxes; see the following table for reconciliation. Earnings (loss) is intended to mean net income (loss) attributable to Monsanto Company 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 of $22 million, $17 million and $10 million from discontinued operations for fiscal years 2014, 2013 and 2012, respectively. | |||||||||||||||||||
(4) | Equity affiliate loss (income) is included in Other expense, net in the Statements of Consolidated Operations. | |||||||||||||||||||
(5) | Includes assets recorded in continuing operations and discontinued operations. | |||||||||||||||||||
A reconciliation of EBIT to net income for each period follows: | ||||||||||||||||||||
Year Ended Aug. 31, | ||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
EBIT(1) | $ | 3,952 | $ | 3,460 | $ | 3,047 | ||||||||||||||
Interest Expense — Net | 146 | 80 | 114 | |||||||||||||||||
Income Tax Provision(2) | 1,066 | 898 | 888 | |||||||||||||||||
Net Income Attributable to Monsanto Company | $ | 2,740 | $ | 2,482 | $ | 2,045 | ||||||||||||||
(1) | Includes the income from operations of discontinued businesses and pre-tax noncontrolling interest. | |||||||||||||||||||
(2) | Includes the income tax provision from continuing operations, the income tax benefit on noncontrolling interest and the income tax provision on discontinued operations. | |||||||||||||||||||
Net sales and long-lived assets are attributed to the geographic areas of the relevant Monsanto legal entities. For example, a sale from the United States to a customer in Brazil is reported as a U.S. export sale. | ||||||||||||||||||||
Net Sales to Unaffiliated Customers | Long-Lived Assets | |||||||||||||||||||
Year Ended Aug. 31, | As of Aug. 31, | |||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | 2014 | 2013 | |||||||||||||||
United States | $ | 8,625 | $ | 8,044 | $ | 7,367 | $ | 8,174 | $ | 6,881 | ||||||||||
Europe-Africa | 2,192 | 2,042 | 1,716 | 1,460 | 1,345 | |||||||||||||||
Brazil | 1,778 | 1,547 | 1,588 | 871 | 696 | |||||||||||||||
Argentina | 1,092 | 1,121 | 873 | 396 | 347 | |||||||||||||||
Asia-Pacific | 837 | 806 | 837 | 315 | 270 | |||||||||||||||
Canada | 636 | 615 | 541 | 124 | 100 | |||||||||||||||
Mexico | 503 | 466 | 385 | 135 | 118 | |||||||||||||||
Other | 192 | 220 | 197 | 381 | 376 | |||||||||||||||
Total | $ | 15,855 | $ | 14,861 | $ | 13,504 | $ | 11,856 | $ | 10,133 | ||||||||||
QUARTERLY_DATA_UNAUDITED
QUARTERLY DATA (UNAUDITED) | 12 Months Ended | |||||||||||||||
Aug. 31, 2014 | ||||||||||||||||
Quarterly Financial Data [Abstract] | ' | |||||||||||||||
QUARTERLY DATA (UNAUDITED) | ' | |||||||||||||||
QUARTERLY DATA (UNAUDITED) | ||||||||||||||||
The following tables also include financial data for the fiscal year quarters in 2014 and 2013 which have been adjusted for discontinued operations. | ||||||||||||||||
(Dollars in millions, except per share amounts) | ||||||||||||||||
1st | 2nd | 3rd | 4th | |||||||||||||
2014 | Quarter | Quarter | Quarter | Quarter | Total | |||||||||||
Net Sales | $ | 3,143 | $ | 5,832 | $ | 4,250 | $ | 2,630 | $ | 15,855 | ||||||
Gross Profit | 1,563 | 3,447 | 2,331 | 1,233 | 8,574 | |||||||||||
Income (Loss) from Continuing Operations Attributable to Monsanto Company | 359 | 1,666 | 858 | (156 | ) | 2,727 | ||||||||||
Income on Discontinued Operations | 9 | 4 | — | — | 13 | |||||||||||
Net Income (Loss) | 373 | 1,672 | 880 | (163 | ) | 2,762 | ||||||||||
Net Income (Loss) Attributable to Monsanto Company | $ | 368 | $ | 1,670 | $ | 858 | $ | (156 | ) | $ | 2,740 | |||||
Basic Earnings (Loss) per Share Attributable to Monsanto Company:(1) | ||||||||||||||||
Income (Loss) from continuing operations | $ | 0.68 | $ | 3.18 | $ | 1.64 | $ | (0.31 | ) | $ | 5.25 | |||||
Income on discontinued operations | 0.02 | — | — | — | 0.03 | |||||||||||
Net Income (Loss) Attributable to Monsanto Company | $ | 0.7 | $ | 3.18 | $ | 1.64 | $ | (0.31 | ) | $ | 5.28 | |||||
Diluted Earnings (Loss) per Share Attributable to Monsanto Company:(1) | ||||||||||||||||
Income (Loss) from continuing operations | $ | 0.67 | $ | 3.15 | $ | 1.62 | $ | (0.31 | ) | $ | 5.19 | |||||
Income on discontinued operations | 0.02 | — | — | — | 0.03 | |||||||||||
Net Income (Loss) Attributable to Monsanto Company | $ | 0.69 | $ | 3.15 | $ | 1.62 | $ | (0.31 | ) | $ | 5.22 | |||||
2013 | ||||||||||||||||
Net Sales | $ | 2,939 | $ | 5,472 | $ | 4,248 | $ | 2,202 | $ | 14,861 | ||||||
Gross Profit | 1,397 | 3,070 | 2,262 | 924 | 7,653 | |||||||||||
Income (Loss) from Continuing Operations Attributable to Monsanto Company | 332 | 1,479 | 909 | (249 | ) | 2,471 | ||||||||||
Income on Discontinued Operations | 7 | 4 | — | — | 11 | |||||||||||
Net Income (Loss) | 349 | 1,483 | 932 | (239 | ) | 2,525 | ||||||||||
Net Income (Loss) Attributable to Monsanto Company | $ | 339 | $ | 1,483 | $ | 909 | $ | (249 | ) | $ | 2,482 | |||||
Basic Earnings (Loss) per Share Attributable to Monsanto Company:(1) | ||||||||||||||||
Income (Loss) from continuing operations | $ | 0.62 | $ | 2.77 | $ | 1.7 | $ | (0.47 | ) | $ | 4.63 | |||||
Income on discontinued operations | 0.01 | 0.01 | — | — | 0.02 | |||||||||||
Net Income (Loss) Attributable to Monsanto Company | $ | 0.63 | $ | 2.78 | $ | 1.7 | $ | (0.47 | ) | $ | 4.65 | |||||
Diluted Earnings (Loss) per Share Attributable to Monsanto Company:(1) | ||||||||||||||||
Income (Loss) from continuing operations | $ | 0.62 | $ | 2.73 | $ | 1.68 | $ | (0.47 | ) | $ | 4.58 | |||||
Income on discontinued operations | 0.01 | 0.01 | — | — | 0.02 | |||||||||||
Net Income (Loss) Attributable to Monsanto Company | $ | 0.63 | $ | 2.74 | $ | 1.68 | $ | (0.47 | ) | $ | 4.6 | |||||
(1) | Because Monsanto reported a loss from continuing operations in the fourth quarter 2014 and 2013, generally accepted accounting principles require diluted loss per share to be calculated using weighted-average common shares outstanding, excluding common stock equivalents. As a result, the quarterly earnings (loss) per share may not total to the full-year amount. |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Aug. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Consolidation | ' |
Basis of Consolidation | |
The accompanying consolidated financial statements of Monsanto and its subsidiaries were prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and include the assets, liabilities, revenues and expenses of all majority-owned subsidiaries over which the company exercises control and, when applicable, entities for which the company has a controlling financial interest or is the primary beneficiary. Intercompany accounts and transactions have been eliminated in consolidation. The company records income attributable to noncontrolling interest in the Statements of Consolidated Operations for any non-owned portion of consolidated subsidiaries. Noncontrolling interest is recorded within the equity section but separate from Monsanto’s equity in the Statements of Consolidated Financial Position. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make certain estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Estimates are adjusted to reflect actual experience when necessary. Significant estimates and assumptions affect many items in the consolidated financial statements. These include allowance for doubtful trade receivables, sales returns and allowances, inventory obsolescence, income tax liabilities and assets and related valuation allowances, asset impairments, valuations of goodwill and other intangible assets, employee benefit plan assets and liabilities, value of equity-based awards, customer incentive program liabilities, restructuring reserves, self-insurance reserves, environmental reserves, deferred revenue, contingencies, litigation, incentives, the allocation of corporate costs to segments and certain cash flow projections. Significant estimates and assumptions are also used to establish the fair value and useful lives of depreciable tangible and certain intangible assets. Actual results may differ from those estimates and assumptions, and such results may affect income, financial position or cash flows. | |
Revenue Recognition | ' |
Revenue Recognition | |
The company derives most of its revenue from three main sources: sales of branded conventional seed and branded seed with biotechnology traits; royalties and license revenues from licensed biotechnology traits and genetic material; and sales of agricultural chemical products. Monsanto follows the Revenue Recognition topic of the Accounting Standards Codification ("ASC"). | |
Revenues from all seed sales are recognized when the title to the products is transferred. The company recognizes revenue on products it sells to distributors when, according to the terms of the sales agreement, delivery has occurred, performance is complete, expected returns can be reasonably estimated and pricing is fixed or determinable. When the right of return exists in the company’s seed business, sales revenues are reduced at the time of sale to reflect expected returns. In order to estimate the expected returns, management analyzes historical returns, economic trends, market conditions and changes in customer demand. | |
The Revenue Recognition topic of the ASC affects Monsanto’s recognition of license revenues from biotechnology traits sold through third-party seed companies. The company may enter into multiple element arrangements, including those where a customer purchases technology and licenses. When elements of a multiple element arrangement do not have stand alone value, we account for such elements as a combined unit of accounting. We allocate revenue to each unit of accounting in a multiple element arrangement based upon the relative selling price of each deliverable. When applying the relative selling price method, we determine the selling price for each deliverable by using vendor-specific objective evidence (“VSOE”) of selling price, if it exists, or third-party evidence (“TPE”) of selling price. If neither VSOE nor TPE of selling price exist for a unit of accounting, we use our best estimate of selling price for that unit of accounting. When we use our best estimate to determine selling price, significant judgment is required. The significant assumptions used to estimate selling price for significant units of accounting may consist of cost, gross margin objectives or forecasted customer selling volumes. Changes in assumptions used to estimate selling price could result in a different allocation of arrangement consideration across the units of accounting within an arrangement. Revenue allocated to each unit of accounting is recognized when all revenue recognition criteria for that unit of accounting have been met. License revenue, including those within multiple element arrangements, is generally recognized over the contract period as third-party seed companies sell seed containing Monsanto traits, which can be from one year up to the related patent term. | |
Primarily in Brazil and Latin America, Monsanto has point-of-delivery collection systems for certain royalties for soybeans and cotton to record revenue when the grain containing our technology is delivered and commercialized at the grain handlers and the collection cycle is complete. | |
Revenues for agricultural chemical products are recognized when title to the products is transferred. The company recognizes revenue on products it sells to distributors when, according to the terms of the sales agreements, delivery has occurred, performance is complete, no right of return exists and pricing is fixed or determinable. | |
There are several additional conditions for recognition of revenue including that the collection of sales proceeds must be reasonably assured based on historical experience and current market conditions and that there must be no consequential remaining performance obligations under the sale or the royalty or license agreement. | |
To reduce credit exposure primarily in Latin America, Monsanto collects payments on certain customer accounts in grain. In those circumstances in Argentina when Monsanto participates in the negotiation of the forward sales contract, Monsanto records revenue and related cost of sale for the grain on a net basis. In those circumstances in Brazil when Monsanto does not participate in the negotiation of the forward sales contract and does not take physical custody of the grain or assume the associated inventory risk, Monsanto does not record revenue or the related cost of sales for the 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 with grain merchants, 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 grain merchant converts the grain to cash for Monsanto. These forward sales contracts do not qualify for hedge accounting under the Derivatives and Hedging topic of the ASC. Accordingly, the gain or loss on these derivatives is recognized in current earnings. | |
Advertising Costs | ' |
Promotional, Advertising and Customer Incentive Program Costs | |
Promotional and advertising costs are expensed as incurred and are included in selling, general and administrative expenses in the Statements of Consolidated Operations. Advertising costs were $90 million, $95 million and $87 million in 2014, 2013 and 2012, respectively. Customer incentive program costs are recorded in accordance with the Revenue Recognition topic of the ASC, based on specific performance criteria met by our customers, such as purchase volumes, promptness of payment and market share increases. The cost of customer incentive programs is generally recorded in net sales in the Statements of Consolidated Operations. As actual customer incentive program expenses are not known at the time of the sale, an estimate based on the best available information (such as historical experience and market research) is used as a basis for recording customer incentive program liabilities. Management analyzes and reviews the customer incentive program balances on a quarterly basis and adjustments are recorded as appropriate. Under certain customer incentive programs, product performance and variations in weather can result in free product to customers. The associated cost of this free product is recognized as cost of goods sold in the Statements of Consolidated Operations. | |
Research and Development Costs and Collaborative Arrangements | ' |
Research and Development Costs and Collaborative Arrangements | |
The company accounts for research and development (R&D) costs in accordance with the Research and Development topic of the ASC. Under the Research and Development topic of the ASC, all R&D costs must be charged to expense as incurred. Accordingly, internal R&D costs are expensed as incurred. Third-party R&D costs are expensed when the contracted work has been performed or as milestone results are achieved. In process research and development (IPR&D) costs acquired in a business combination are recorded on the Statements of Consolidated Financial Position as indefinite-lived intangible assets until completion or abandonment of the associated R&D efforts. The costs of purchased IPR&D that have alternative future uses are capitalized and amortized over the estimated useful life of the asset. IPR&D intangible assets are subject to annual impairment tests. The costs associated with equipment or facilities acquired or constructed for R&D activities that have alternative future uses are capitalized and depreciated on a straight-line basis over the estimated useful life of the asset. The amortization and depreciation for such capitalized assets are charged to R&D expenses. Monsanto has entered into collaborations with third parties for the R&D and commercialization of agricultural products. The company accounts for costs incurred and revenue generated under these collaborative arrangements from transactions with third parties in accordance with the Collaborative Arrangements topic of the ASC. Under the Collaborative Arrangements topic of the ASC, all costs incurred and revenue generated from transactions with third parties shall be recorded in each entity's respective income statement. For additional information on the company's collaborative arrangements, see Note 4 - Business Combinations and Collaborative Arrangements. | |
Income Taxes | ' |
Income Taxes | |
Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Management regularly assesses the likelihood that deferred tax assets will be recovered from future taxable income, and to the extent management believes that it is more likely than not that a deferred tax asset will not be realized, a valuation allowance is established. When a valuation allowance is established, increased or decreased, an income tax charge or benefit is included in the consolidated financial statements and net deferred tax assets are adjusted accordingly. The net deferred tax assets as of Aug. 31, 2014, represent the estimated future tax benefits to be received from taxing authorities or future reductions of taxes payable. | |
Under the Income Tax topic of the ASC, in order to recognize an uncertain tax benefit, the taxpayer must be more likely than not of sustaining the position, and the measurement of the benefit is calculated as the largest amount that is more than 50 percent likely to be realized upon resolution of the benefit. Tax authorities regularly examine the company’s returns in the jurisdictions in which Monsanto does business. Management regularly assesses the tax risk of the company’s return filing positions and believes its accruals for uncertain tax benefits are adequate as of Aug. 31, 2014, and Aug. 31, 2013. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
All highly liquid investments (defined as investments with a maturity of three months or less when purchased) are considered cash equivalents. | |
Inventory Valuation | ' |
Inventory Valuation and Obsolescence | |
Inventories are stated at the lower of cost or market, and an inventory reserve would permanently reduce the cost basis of inventory. Inventories are valued as follows: | |
Seeds and Genomics: Actual cost is used to value raw materials such as treatment chemicals and packaging, as well as goods in process. Costs for substantially all finished goods, which include the cost of carryover crops from the previous year, are valued at weighted-average actual cost. Weighted-average actual cost includes field growing and harvesting costs, plant conditioning and packaging costs, and manufacturing overhead costs. | |
Agricultural Productivity: Actual cost is used to value raw materials and supplies. Standard cost, which approximates actual cost, is used to value finished goods and goods in process. Variances, exclusive of abnormally low volume and operating performance, are capitalized into inventory. Standard cost includes direct labor and raw materials, and manufacturing overhead based on normal capacity. The cost of the Agricultural Productivity segment inventories in the United States (approximately 9 percent of total company inventory as of Aug. 31, 2014, and Aug. 31, 2013) is determined by using the last-in, first-out (LIFO) method, which generally reflects the effects of inflation or deflation on cost of goods sold sooner than other inventory cost methods. The cost of inventories outside of the United States, as well as supplies inventories in the United States, is determined by using the first-in, first-out (FIFO) method; FIFO is used outside of the United States because the requirements in the countries where Monsanto maintains inventories generally do not allow the use of the LIFO method. Inventories at FIFO approximate current cost. | |
In accordance with the Inventory topic of the ASC, Monsanto records abnormal amounts of idle facility expense, freight, handling costs and wasted material (spoilage) as current period charges and allocates fixed production overhead to the costs of conversion based on the normal capacity of the production facilities. | |
Monsanto establishes allowances for obsolescence of inventory equal to the difference between the cost of inventory (if higher) and the estimated market value, based on assumptions about future demand and market conditions. The company regularly evaluates the adequacy of our inventory obsolescence reserves. If economic and market conditions are different from those anticipated, inventory obsolescence could be materially different from the amounts provided for in the company’s consolidated financial statements. If inventory obsolescence is higher than expected, cost of goods sold will be increased, and inventory, net income, and shareowners’ equity will be reduced. | |
Goodwill | ' |
Goodwill | |
Monsanto follows the guidance of the Business Combinations topic of the ASC in recording the goodwill arising from a business combination as the excess of purchase price and related costs over the fair value of identifiable assets acquired and liabilities assumed. | |
Under the Intangibles – Goodwill and Other topic of the ASC, goodwill is not amortized and is subject to annual impairment tests. A fair-value-based test is applied at the reporting unit level, which is generally at or one level below the operating segment level. The test compares the fair value of the company’s reporting units to the carrying value of those reporting units. This test requires various judgments and estimates. The fair value of goodwill is determined using an estimate of future cash flows of the reporting unit and a risk-adjusted discount rate to compute a net present value of future cash flows. An adjustment to goodwill will be recorded for any goodwill that is determined to be impaired. Impairment of goodwill is measured as the excess of the carrying amount of goodwill over the fair values of recognized assets and liabilities of the reporting unit. Goodwill is tested for impairment at least annually, or more frequently if events or circumstances indicate it might be impaired. Goodwill was last tested for impairment as of Mar. 1, 2014. See Note 10 - Goodwill and Other Intangible Assets - for further discussion of the annual impairment test. | |
Other Intangible Assets | ' |
Other Intangible Assets | |
Other intangible assets consist primarily of acquired seed germplasm, acquired intellectual property, trademarks and customer relationships. Seed germplasm is the genetic material used in new seed varieties. Germplasm is amortized on a straight-line basis over useful lives ranging from 5 years for completed technology germplasm to a maximum of 30 years for certain core technology germplasm. Completed technology germplasm consists of seed hybrids and varieties that are commercially available. Core technology germplasm is the collective germplasm of parental seeds and has a longer useful life as it is used to develop new seed hybrids and varieties. Acquired intellectual property includes intangible assets related to acquisitions and licenses through which Monsanto has acquired the rights to various research and discovery technologies. These encompass intangible assets such as enabling processes and data libraries necessary to support the integrated genomics and biotechnology platforms. These intangible assets have alternative future uses and are amortized over useful lives ranging from 1 to 18 years. The useful lives of acquired germplasm and acquired intellectual property are determined based on consideration of several factors including the nature of the asset, its expected use, length of licensing agreement or patent and the period over which benefits are expected to be received from the use of the asset. | |
Monsanto has a broad portfolio of trademarks for herbicide products, traits, agricultural seeds and vegetable seeds, and patents for our insect-protection traits, formulations used to make our herbicides and various manufacturing processes. The amortization period for acquired trademarks and patents ranges from 1 to 30 years. Trademarks are amortized on a straight-line basis over their useful lives. The useful life of a trademark is determined based on the estimated market-life of the associated company, brand or product. Patents are amortized on a straight-line basis over the period in which the patent is legally protected, the period over which benefits are expected to be received, or the estimated market-life of the product with which the patent is associated, whichever is shorter. | |
In conjunction with acquisitions, Monsanto obtains access to the distribution channels and customer relationships of the acquired companies. These relationships are expected to provide economic benefits to Monsanto. The amortization period for customer relationships ranges from 1 to 20 years, and amortization is recognized on a straight-line basis over these periods. The amortization period of customer relationships represents management’s best estimate of the expected usage or consumption of the economic benefits of the acquired assets, which is based on the company’s historical experience of customer attrition rates. | |
In accordance with the Intangibles – Goodwill and Other topic of the ASC, all amortizable intangible assets are assessed for impairment whenever events indicate a possible loss. Such an assessment involves estimating undiscounted cash flows over the remaining useful life of the intangible. If the review indicates that undiscounted cash flows are less than the recorded value of the intangible asset, the carrying amount of the intangible is reduced by the estimated cash-flow shortfall on a discounted basis, and a corresponding loss is charged to the Statement of Consolidated Operations. See Note 10 - Goodwill and Other Intangible Assets - for further discussion of Monsanto’s intangible assets. | |
Property, Plant and Equipment | ' |
Property, Plant and Equipment | |
Property, plant and equipment is recorded at cost. Additions and improvements are capitalized; these include all material, labor and engineering costs to design, install or improve the asset and interest costs on construction projects. Such costs are not depreciated until the assets are placed in service. Routine repairs and maintenance are expensed as incurred. The cost of plant and equipment is depreciated using the straight-line method over the estimated useful life of the asset — weighted-average periods of approximately 25 years for buildings, 10 years for machinery and equipment and 5 years for software. In compliance with the Property, Plant and Equipment topic of the ASC, long-lived assets are reviewed for impairment whenever in management’s judgment conditions indicate a possible loss. Such impairment tests compare estimated undiscounted cash flows to the recorded value of the asset. If an impairment is indicated, the asset is written down to its fair value or, if fair value is not readily determinable, to an estimated fair value based on discounted cash flows. | |
Asset Retirement Obligations and Environmental Remediation Liabilities | ' |
Asset Retirement Obligations and Environmental Remediation Liabilities | |
Monsanto follows the Asset Retirement and Environmental Obligations topic of the ASC, which addresses financial accounting for and reporting of costs and obligations associated with the retirement of tangible long-lived assets. Monsanto has asset retirement obligations with carrying amounts totaling $59 million and $86 million included in other liabilities on the Statements of Consolidated Financial Position as of Aug. 31, 2014, and Aug. 31, 2013, respectively, primarily relating to its manufacturing facilities. | |
Monsanto follows the Asset Retirement and Environmental Obligations topic of the ASC, which provides guidance for recognizing, measuring and disclosing environmental remediation liabilities. Monsanto accrues these costs in the period when responsibility is established and when such costs are probable and reasonably estimable based on current law and existing technology. Postclosure and remediation costs for hazardous waste sites and other waste facilities at operating locations are accrued over the estimated life of the facility, as part of its anticipated closure cost. | |
Litigation and Other Contingencies | ' |
Litigation and Other Contingencies | |
Monsanto is involved in various intellectual property, biotechnology, tort, contract, antitrust, shareowner claims, environmental and other litigation, claims and legal proceedings; environmental remediation; and government investigations (see Note 25 - Commitments and Contingencies). Management routinely assesses the likelihood of adverse judgments or outcomes to those matters, as well as ranges of probable losses, to the extent losses are reasonably estimable. In accordance with the Contingencies topic of the ASC, accruals for such contingencies are recorded to the extent that management concludes their occurrence is probable and the financial impact, should an adverse outcome occur, is reasonably estimable. Disclosure for specific legal contingencies is provided if the likelihood of occurrence is at least reasonably possible and the exposure is considered material to the consolidated financial statements. In making determinations of likely outcomes of litigation matters, management considers many factors. These factors include, but are not limited to, past experience, scientific and other evidence, interpretation of relevant laws or regulations and the specifics and status of each matter. If the assessment of the various factors changes, the estimates may change. That may result in the recording of an accrual or a change in a previously recorded accrual. Predicting the outcome of claims and litigation and estimating related costs and exposure involves substantial uncertainties that could cause actual costs to vary materially from estimates and accruals. | |
Guarantees | ' |
Guarantees | |
Monsanto is subject to various commitments under contractual and other commercial obligations. The company recognizes liabilities for contingencies and commitments under the Guarantees topic of the ASC. For additional information on the company’s commitments and other contractual and commercial obligations, see Note 25 - Commitments and Contingencies. | |
Foreign Currency Translation | ' |
Foreign Currency Translation | |
The financial statements for most of Monsanto’s ex-U.S. operations are translated to U.S. dollars at current exchange rates. For assets and liabilities, the fiscal year-end rate is used. For revenues, expenses, gains and losses, an approximation of the average rate for the period is used. Unrealized currency adjustments in the Statements of Consolidated Financial Position are accumulated in equity as a component of accumulated other comprehensive loss. The financial statements of ex-U.S. operations in highly inflationary economies are translated at either current or historical exchange rates at the time they are deemed highly inflationary, in accordance with the Foreign Currency Matters topic of the ASC. These currency adjustments and the remeasurement of assets and liabilities of ex-U.S. operations with the U.S. dollar designated as their functional currency are included in net income. Based on the Consumer Price Index (CPI), Monsanto designated Venezuela as a hyperinflationary country effective June 1, 2009. The functional currency of the Company's foreign entities in Argentina is the U.S. dollar. | |
Significant translation exposures include the Brazilian real, the European euro, the Mexican peso, the Canadian dollar, the Australian dollar, Indian rupee, and South African rand. Currency restrictions are not expected to have a significant effect on Monsanto’s cash flow, liquidity or capital resources. | |
Derivatives and Other Financial Instruments | ' |
Derivatives and Other Financial Instruments | |
Monsanto uses financial derivative instruments and natural hedges to limit its exposure to changes in foreign currency exchange rates, commodity prices and interest rates. Monsanto does not use financial derivative instruments for the purpose of speculating in foreign currencies, commodities or interest rates. Monsanto continually monitors its underlying market risk exposures and believes that it can modify or adapt its hedging strategies as needed. | |
In accordance with the Derivatives and Hedging topic of the ASC, all derivatives, whether designated for hedging relationships or not, are recognized in the Statements of Consolidated Financial Position at their fair value. At the time a derivative contract is entered into, Monsanto designates each derivative as: (1) a hedge of the fair value of a recognized asset or liability (a fair-value hedge), (2) a hedge of a forecasted transaction or of the variability of cash flows that are to be received or paid in connection with a recognized asset or liability (a cash-flow hedge), (3) a foreign-currency fair-value or cash-flow hedge (a foreign-currency hedge), (4) a foreign-currency hedge of the net investment in a foreign subsidiary or (5) a derivative that does not qualify for hedge accounting treatment. | |
Changes in the fair value of a derivative that is considered highly effective, and that is designated as and qualifies as a fair-value hedge, along with changes in the fair value of the hedged asset or liability that are attributable to the hedged risk, are recorded in current-period net income. Changes in the fair value of a derivative that is considered highly effective, and that is designated as and qualifies as a cash-flow hedge, to the extent that the hedge is effective, are recorded in accumulated other comprehensive loss until net income is affected by the variability from cash flows of the hedged item. Any hedge ineffectiveness is included in current-period net income. Changes in the fair value of a derivative that is considered highly effective, and that is designated as and qualifies as a foreign-currency hedge, are recorded either in current-period net income or in accumulated other comprehensive loss, depending on whether the hedging relationship satisfies the criteria for a fair-value or cash-flow hedge. Changes in the fair value of a derivative that is considered highly effective, and that is designated as a foreign-currency hedge of the net investment in a foreign subsidiary, are recorded in the accumulated foreign currency translation. Changes in the fair value of derivative instruments not designated as hedges are reported in current-period net income. | |
Monsanto formally and contemporaneously documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and its strategy for undertaking various hedge transactions. This includes linking all derivatives that are designated as fair-value, cash-flow or foreign-currency hedges either to specific assets and liabilities on the Statements of Consolidated Financial Position, or to firm commitments or forecasted transactions. Monsanto formally assesses a hedge at its inception and on an ongoing basis thereafter to determine whether the hedging relationship between the derivative and the hedged item is still highly effective, and whether it is expected to remain highly effective in future periods, in offsetting changes in fair value or cash flows. When derivatives cease to be highly effective hedges, Monsanto discontinues hedge accounting prospectively. |
BUSINESS_COMBINATIONS_Tables
BUSINESS COMBINATIONS (Tables) | 12 Months Ended | |||||
Aug. 31, 2014 | ||||||
Business Combinations [Abstract] | ' | |||||
Purchase Price Allocations Table | ' | |||||
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 | $ | 67 | ||||
Property, Plant & Equipment | 9 | |||||
Goodwill | 783 | |||||
Other Intangible Assets | 142 | |||||
Total Assets Acquired | 1,001 | |||||
Current Liabilities | 10 | |||||
Other Liabilities | 59 | |||||
Total Liabilities Assumed | 69 | |||||
Net Assets Acquired | $ | 932 | ||||
Supplemental Information: | ||||||
Net assets acquired | $ | 932 | ||||
Cash acquired | 15 | |||||
Cash paid, net of cash acquired | $ | 917 | ||||
Acquired Identifiable Intangible Assets | ' | |||||
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 | $ | 138 | ||
Customer Relationships | 1 | 1 | 4 | |||
Other Intangible Assets | $ | 142 | ||||
RECEIVABLES_Tables
RECEIVABLES (Tables) | 12 Months Ended | |||
Aug. 31, 2014 | ||||
Receivables [Abstract] | ' | |||
Allowance For Doubtful Trade Receivables | ' | |||
The following table displays a roll forward of the allowance for doubtful trade receivables for fiscal years 2012, 2013 and 2014. | ||||
(Dollars in millions) | ||||
Balance Aug. 31, 2011 | $ | 98 | ||
Additions — charged to expense | 14 | |||
Other(1) | (48 | ) | ||
Balance Aug. 31, 2012 | $ | 64 | ||
Additions — charged to expense | 32 | |||
Other(1) | (28 | ) | ||
Balance Aug. 31, 2013 | $ | 68 | ||
Additions — charged to expense | 44 | |||
Other(1) | (40 | ) | ||
Balance Aug. 31, 2014 | $ | 72 | ||
(1) | Includes reclassifications to long-term, write-offs, recoveries and foreign currency translation adjustments. | |||
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 for fiscal years 2012, 2013 and 2014. | ||||
(Dollars in millions) | ||||
Balance Aug. 31, 2011 | $ | 213 | ||
Incremental Provision | 3 | |||
Recoveries | (14 | ) | ||
Write-Offs | (54 | ) | ||
Other(1) | (7 | ) | ||
Balance Aug. 31, 2012 | $ | 141 | ||
Incremental Provision | 7 | |||
Recoveries | (1 | ) | ||
Write-Offs | (47 | ) | ||
Other(1) | 4 | |||
Balance Aug. 31, 2013 | $ | 104 | ||
Incremental Provision | 11 | |||
Recoveries | (4 | ) | ||
Write-Offs | (15 | ) | ||
Other(1) | 29 | |||
Balance Aug. 31, 2014 | $ | 125 | ||
(1) | Includes reclassifications from the allowance for current receivables and foreign currency translation adjustments. |
CUSTOMER_FINANCING_PROGRAMS_Ta
CUSTOMER FINANCING PROGRAMS (Tables) | 12 Months Ended | |||||||||
Aug. 31, 2014 | ||||||||||
CUSTOMER FINANCING PROGRAMS (Tables) [Abstract] | ' | |||||||||
Customer Financing Programs | ' | |||||||||
Monsanto participates in customer financing programs as follows: | ||||||||||
As of Aug. 31, | ||||||||||
(Dollars in millions) | 2014 | 2013 | ||||||||
Transactions that Qualify for Sales Treatment | ||||||||||
U.S. agreement to sell trade receivables(1) | ||||||||||
Outstanding balance | $ | 436 | $ | 348 | ||||||
Maximum future payout under recourse provisions | 21 | 19 | ||||||||
European and Latin American agreements to sell trade receivables(2) | ||||||||||
Outstanding balance | $ | 67 | $ | 44 | ||||||
Maximum future payout under recourse provisions | 34 | 41 | ||||||||
Agreements with Lenders(3) | ||||||||||
Outstanding balance | $ | 71 | $ | 45 | ||||||
Maximum future payout under the guarantee | 51 | 32 | ||||||||
Customer Financing Programs, Sales of Receivables | ' | |||||||||
The gross amount of receivables sold under transactions that qualify for sales treatment was: | ||||||||||
Gross Amount of Receivables Sold | ||||||||||
Year Ended Aug. 31, | ||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | |||||||
Transactions that Qualify for Sales Treatment | ||||||||||
U.S. agreement to sell trade receivables(1) | $ | 457 | $ | 349 | $ | 506 | ||||
European and Latin American agreements to sell trade receivables(2) | 78 | 16 | 62 | |||||||
(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. |
INVENTORY_Tables
INVENTORY (Tables) | 12 Months Ended | ||||||
Aug. 31, 2014 | |||||||
Inventory Disclosure [Abstract] | ' | ||||||
Components of Inventory | ' | ||||||
Components of inventory are: | |||||||
As of Aug. 31, | |||||||
(Dollars in millions) | 2014 | 2013 | |||||
Finished Goods | $ | 1,591 | $ | 1,079 | |||
Goods In Process | 1,721 | 1,619 | |||||
Raw Materials and Supplies | 445 | 418 | |||||
Inventory at FIFO Cost | 3,757 | 3,116 | |||||
Excess of FIFO over LIFO Cost | (160 | ) | (169 | ) | |||
Total | $ | 3,597 | $ | 2,947 | |||
Inventory Obsolescence Reserve | ' | ||||||
The following table displays a roll forward of the inventory obsolescence reserve for fiscal years 2012, 2013 and 2014. | |||||||
(Dollars in millions) | |||||||
Balance Aug. 31, 2011 | $ | 338 | |||||
Additions — charged to expense | 266 | ||||||
Deductions and other(1) | (243 | ) | |||||
Balance Aug. 31, 2012 | $ | 361 | |||||
Additions — charged to expense | 336 | ||||||
Deductions and other(1) | (289 | ) | |||||
Balance Aug. 31, 2013 | $ | 408 | |||||
Additions — charged to expense | 331 | ||||||
Deductions and other(1) | (324 | ) | |||||
Balance Aug. 31, 2014 | $ | 415 | |||||
(1) | Deductions and other includes disposals and foreign currency translation adjustments. |
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended | ||||||
Aug. 31, 2014 | |||||||
Property, Plant and Equipment [Abstract] | ' | ||||||
Property Plant And Equipment Table | ' | ||||||
Components of property, plant and equipment were as follows: | |||||||
As of Aug. 31, | |||||||
(Dollars in millions) | 2014 | 2013 | |||||
Land and Improvements | $ | 611 | $ | 577 | |||
Buildings and Improvements | 2,122 | 1,979 | |||||
Machinery and Equipment | 5,676 | 5,357 | |||||
Computer Software | 779 | 705 | |||||
Construction In Progress and Other | 1,169 | 873 | |||||
Total Property, Plant and Equipment | 10,357 | 9,491 | |||||
Less: Accumulated Depreciation | 5,275 | 4,837 | |||||
Property, Plant and Equipment, Net | $ | 5,082 | $ | 4,654 | |||
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||||||||||||||||||
Aug. 31, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Net Carrying Amount of Goodwill | ' | |||||||||||||||||||||||
Changes in the net carrying amount of goodwill for fiscal years 2013 and 2014, by segment, are as follows: | ||||||||||||||||||||||||
(Dollars in millions) | Seeds and | Agricultural | Total | |||||||||||||||||||||
Genomics | Productivity | |||||||||||||||||||||||
Balance Aug. 31, 2012 | $ | 3,378 | $ | 57 | $ | 3,435 | ||||||||||||||||||
Acquisition activity (see Note 4) | 110 | — | 110 | |||||||||||||||||||||
Effect of foreign currency translation adjustments | (27 | ) | 2 | (25 | ) | |||||||||||||||||||
Balance Aug. 31, 2013 | $ | 3,461 | $ | 59 | $ | 3,520 | ||||||||||||||||||
Acquisition activity (see Note 4) | 783 | — | 783 | |||||||||||||||||||||
Effect of foreign currency translation adjustments | 18 | (2 | ) | 16 | ||||||||||||||||||||
Balance Aug. 31, 2014 | $ | 4,262 | $ | 57 | $ | 4,319 | ||||||||||||||||||
Other Intangible Assets Information | ' | |||||||||||||||||||||||
Information regarding the company’s other intangible assets is as follows: | ||||||||||||||||||||||||
As of Aug. 31, 2014 | As of Aug. 31, 2013 | |||||||||||||||||||||||
(Dollars in millions) | Carrying | Accumulated | Net | Carrying | Accumulated | Net | ||||||||||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||||||||||||
Acquired Germplasm | $ | 1,116 | $ | (751 | ) | $ | 365 | $ | 1,113 | $ | (717 | ) | $ | 396 | ||||||||||
Acquired Intellectual Property | 1,160 | (507 | ) | 653 | 1,095 | (791 | ) | 304 | ||||||||||||||||
Trademarks | 366 | (142 | ) | 224 | 341 | (131 | ) | 210 | ||||||||||||||||
Customer Relationships | 338 | (204 | ) | 134 | 306 | (179 | ) | 127 | ||||||||||||||||
Other | 181 | (106 | ) | 75 | 177 | (91 | ) | 86 | ||||||||||||||||
Total Other Intangible Assets, Finite Lives | $ | 3,161 | $ | (1,710 | ) | $ | 1,451 | $ | 3,032 | $ | (1,909 | ) | $ | 1,123 | ||||||||||
In Process Research & Development, Indefinite Lives | 103 | — | 103 | 103 | — | 103 | ||||||||||||||||||
Total Other Intangible Assets | $ | 3,264 | $ | (1,710 | ) | $ | 1,554 | $ | 3,135 | $ | (1,909 | ) | $ | 1,226 | ||||||||||
Intangible Assets Future Amortization Expense | ' | |||||||||||||||||||||||
The estimated intangible asset amortization expense for each of the five succeeding fiscal years is as follows: | ||||||||||||||||||||||||
(Dollars in millions) | Amount | |||||||||||||||||||||||
2015 | $ | 157 | ||||||||||||||||||||||
2016 | 182 | |||||||||||||||||||||||
2017 | 171 | |||||||||||||||||||||||
2018 | 132 | |||||||||||||||||||||||
2019 | 133 | |||||||||||||||||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||||||
Aug. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Components of Income From Continuing Operations Before Income Taxes | ' | |||||||||||
The components of income from continuing operations before income taxes were: | ||||||||||||
Year Ended Aug. 31, | ||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | |||||||||
United States | $ | 2,436 | $ | 2,385 | $ | 1,954 | ||||||
Outside United States | 1,391 | 1,044 | 1,034 | |||||||||
Total | $ | 3,827 | $ | 3,429 | $ | 2,988 | ||||||
Components Of Income Tax Provision | ' | |||||||||||
The components of income tax provision from continuing operations were: | ||||||||||||
Year Ended Aug. 31, | ||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | |||||||||
Current: | ||||||||||||
U.S. federal | $ | 648 | $ | 432 | $ | 301 | ||||||
U.S. state | 65 | 52 | 49 | |||||||||
Outside United States | 410 | 305 | 310 | |||||||||
Total Current | $ | 1,123 | $ | 789 | $ | 660 | ||||||
Deferred: | ||||||||||||
U.S. federal | 41 | 159 | 252 | |||||||||
U.S. state | (2 | ) | 1 | 15 | ||||||||
Outside United States | (84 | ) | (34 | ) | (26 | ) | ||||||
Total Deferred | (45 | ) | 126 | 241 | ||||||||
Total | $ | 1,078 | $ | 915 | $ | 901 | ||||||
Tax Rate Reconciliation | ' | |||||||||||
Factors causing Monsanto’s income tax provision from continuing operations to differ from the U.S. federal statutory rate were: | ||||||||||||
Year Ended Aug. 31, | ||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | |||||||||
U.S. Federal Statutory Rate | $ | 1,339 | $ | 1,200 | $ | 1,046 | ||||||
U.S. Domestic Manufacturing Deduction | (75 | ) | (68 | ) | (67 | ) | ||||||
U.S. R&D Tax Credit | (12 | ) | (43 | ) | (15 | ) | ||||||
U.S. State Income Taxes | 45 | 43 | 42 | |||||||||
Lower Taxes on Foreign Operations | (230 | ) | (78 | ) | (67 | ) | ||||||
Valuation Allowances | 12 | — | 12 | |||||||||
Adjustment for Unrecognized Tax Benefits | (8 | ) | (110 | ) | (59 | ) | ||||||
Other | 7 | (29 | ) | 9 | ||||||||
Income Tax Provision | $ | 1,078 | $ | 915 | $ | 901 | ||||||
Deferred Income Tax | ' | |||||||||||
Deferred income tax balances are related to: | ||||||||||||
As of Aug. 31, | ||||||||||||
(Dollars in millions) | 2014 | 2013 | ||||||||||
Net Operating Loss and Other Carryforwards | $ | 443 | $ | 455 | ||||||||
Employee Fringe Benefits | 259 | 335 | ||||||||||
Restructuring and Impairment Reserves | 135 | 130 | ||||||||||
Royalties | 129 | 95 | ||||||||||
Inventories | 106 | 137 | ||||||||||
Intangibles | 74 | 71 | ||||||||||
Allowance for Doubtful Accounts | 70 | 46 | ||||||||||
Environmental and Litigation Reserves | 69 | 99 | ||||||||||
Other | 350 | 239 | ||||||||||
Valuation Allowance | (63 | ) | (47 | ) | ||||||||
Total Deferred Tax Assets | $ | 1,572 | $ | 1,560 | ||||||||
Property, Plant and Equipment | 585 | 571 | ||||||||||
Intangibles | 400 | 403 | ||||||||||
Other | 81 | 60 | ||||||||||
Total Deferred Tax Liabilities | 1,066 | 1,034 | ||||||||||
Net Deferred Tax Assets | $ | 506 | $ | 526 | ||||||||
Reconciliation of Unrecognized Tax Benefits | ' | |||||||||||
A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows: | ||||||||||||
(Dollars in millions) | 2014 | 2013 | ||||||||||
Balance Sept. 1 | $ | 167 | $ | 288 | ||||||||
Increases for prior year tax positions | 13 | 14 | ||||||||||
Decreases for prior year tax positions | (16 | ) | (118 | ) | ||||||||
Increases for current year tax positions | 5 | 14 | ||||||||||
Settlements | (1 | ) | (4 | ) | ||||||||
Lapse of statute of limitations | (14 | ) | (23 | ) | ||||||||
Foreign currency translation | (2 | ) | (4 | ) | ||||||||
Balance Aug. 31 | $ | 152 | $ | 167 | ||||||||
Tax Years | ' | |||||||||||
For Monsanto’s major tax jurisdictions, the tax years that remain subject to examination are shown below: | ||||||||||||
Jurisdiction | ||||||||||||
U.S. federal income tax | 2011-2014 | |||||||||||
U.S. state and local income taxes | 2000-2014 | |||||||||||
Argentina | 2001-2014 | |||||||||||
Brazil | 2002-2014 |
DEBT_AND_OTHER_CREDIT_ARRANGEM1
DEBT AND OTHER CREDIT ARRANGEMENTS (Tables) | 12 Months Ended | |||||||||||
Aug. 31, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||
Short-Term Debt | ' | |||||||||||
Short-Term Debt | ||||||||||||
As of Aug. 31, | ||||||||||||
(Dollars in millions) | 2014 | 2013 | ||||||||||
Current Portion of Long-Term Debt | $ | 12 | $ | 11 | ||||||||
Mandatorily Redeemable Shares of VIE | 136 | — | ||||||||||
Notes Payable to Banks | 85 | 40 | ||||||||||
Total Short-Term Debt | $ | 233 | $ | 51 | ||||||||
Long-Term Debt Table | ' | |||||||||||
Long-Term Debt | ||||||||||||
As of Aug. 31, | ||||||||||||
(Dollars in millions) | 2014 | 2013 | ||||||||||
Floating Rate Senior Notes, Due 2016(1) | $ | 400 | $ | — | ||||||||
2.750% Senior Notes, Due 2016(1) | 300 | 300 | ||||||||||
1.150% Senior Notes, Due 2017(1) | 500 | — | ||||||||||
5.125% Senior Notes, Due 2018(1) | 300 | 300 | ||||||||||
1.850% Senior Notes, Due 2018(1) | 300 | — | ||||||||||
2.125% Senior Notes, Due 2019(1) | 500 | — | ||||||||||
2.750% Senior Notes, Due 2021(1) | 499 | — | ||||||||||
2.200% Senior Notes, Due 2022(1) | 250 | 250 | ||||||||||
3.375% Senior Notes, Due 2024(1) | 750 | — | ||||||||||
5.500% Senior Notes, Due 2025(1) | 285 | 282 | ||||||||||
4.200% Senior Notes, Due 2034(1) | 497 | — | ||||||||||
5.500% Senior Notes, Due 2035(1) | 395 | 395 | ||||||||||
5.875% Senior Notes, Due 2038(1) | 247 | 247 | ||||||||||
3.600% Senior Notes, Due 2042(1) | 250 | 250 | ||||||||||
4.650% Senior Notes, Due 2043(1) | 300 | — | ||||||||||
4.400% Senior Notes, Due 2044(1) | 992 | — | ||||||||||
4.700% Senior Notes, Due 2064(1) | 743 | — | ||||||||||
Other (including Capital Leases) | 20 | 37 | ||||||||||
Total Long-Term Debt | $ | 7,528 | $ | 2,061 | ||||||||
(1) | Amounts are net of unamortized discounts. For the 5.500% Senior Notes due 2025, amount is net of the unamortized premium of $30 million and $32 million as of Aug. 31, 2014, and Aug. 31, 2013, respectively. | |||||||||||
Interest Expense on Debt | ' | |||||||||||
The information regarding interest expense below reflects Monsanto’s interest expense on debt, mandatorily redeemable shares, customer financing and the amortization of debt issuance costs and interest rate swaps: | ||||||||||||
Year Ended Aug. 31, | ||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | |||||||||
Interest Cost Incurred | $ | 275 | $ | 195 | $ | 212 | ||||||
Less: Capitalized on Construction | 27 | 23 | 21 | |||||||||
Interest Expense | $ | 248 | $ | 172 | $ | 191 | ||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Aug. 31, 2014 | Aug. 31, 2013 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ' | ||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | ' | ' | ||||||||||||||||||||||||
The following tables set forth by level Monsanto’s assets and liabilities disclosed at fair value on a recurring basis as of Aug. 31, 2014, 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 Aug. 31, 2013, Using | ||||||||||||||||||||||||||
Fair Value Measurements at Aug. 31, 2014, Using | (Dollars in millions) | Level 1 | Level 2 | Level 3 | Net | |||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Net | Balance | |||||||||||||||||||||
Balance | Assets at Fair Value: | |||||||||||||||||||||||||
Assets at Fair Value: | Cash equivalents | $ | 2,865 | $ | — | $ | — | $ | 2,865 | |||||||||||||||||
Cash equivalents | $ | 1,664 | $ | — | $ | — | $ | 1,664 | ||||||||||||||||||
Short-term investments | 254 | — | — | 254 | ||||||||||||||||||||||
Short-term investments | 40 | — | — | 40 | ||||||||||||||||||||||
Equity securities | 22 | — | — | 22 | ||||||||||||||||||||||
Equity securities | 22 | — | — | 22 | ||||||||||||||||||||||
Derivative assets related to: | ||||||||||||||||||||||||||
Derivative assets related to: | Foreign currency | — | 5 | — | 5 | |||||||||||||||||||||
Foreign currency | — | 11 | — | 11 | ||||||||||||||||||||||
Commodity contracts | 13 | 6 | — | 19 | ||||||||||||||||||||||
Commodity contracts | 20 | 16 | — | 36 | ||||||||||||||||||||||
Total Assets at Fair Value | $ | 3,154 | $ | 11 | $ | — | $ | 3,165 | ||||||||||||||||||
Total Assets at Fair Value | $ | 1,746 | $ | 27 | $ | — | $ | 1,773 | ||||||||||||||||||
Liabilities at Fair Value: | ||||||||||||||||||||||||||
Liabilities at Fair Value: | Contingent consideration | $ | — | $ | — | $ | 40 | $ | 40 | |||||||||||||||||
Derivative liabilities related to: | ||||||||||||||||||||||||||
Foreign currency | — | 19 | — | 19 | Derivative liabilities related to: | |||||||||||||||||||||
Commodity contracts | 76 | 15 | — | 91 | Foreign currency | — | 8 | — | 8 | |||||||||||||||||
Short-term debt instruments | — | 97 | 136 | 233 | Commodity contracts | 73 | 12 | — | 85 | |||||||||||||||||
Long-term debt instruments(1) | — | 7,928 | — | 7,928 | Total Liabilities at Fair Value | $ | 73 | $ | 20 | $ | 40 | $ | 133 | |||||||||||||
Total Liabilities at Fair Value | $ | 76 | $ | 8,059 | $ | 136 | $ | 8,271 | Liabilities Not Recorded at Fair Value: | |||||||||||||||||
Short-term debt instruments(1) | $ | — | $ | 51 | $ | — | $ | 51 | ||||||||||||||||||
(1) | 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. | Long-term debt instruments(1) | — | 2,231 | — | 2,231 | ||||||||||||||||||||
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 liabilities for the year ended Aug. 31, 2014. | ||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Balance Aug. 31, 2013 | $ | 40 | ||||||||||||||||||||||||
Recognition of redeemable shares of VIE(1) | 134 | |||||||||||||||||||||||||
Gain included in earnings | 14 | |||||||||||||||||||||||||
Settlement | (54 | ) | ||||||||||||||||||||||||
Effect of foreign currency translation adjustments | 2 | |||||||||||||||||||||||||
Balance Aug. 31, 2014 | $ | 136 | ||||||||||||||||||||||||
(1) | Includes 300,000 mandatorily redeemable shares outstanding with a par value of $447. |
FINANCIAL_INSTRUMENTS_Tables
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | |||||||||||||||||||||||
Aug. 31, 2014 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||
Derivative Instruments (Notional Amounts) | ' | |||||||||||||||||||||||
The notional amounts of the company’s derivative instruments outstanding as of Aug. 31, 2014, and Aug. 31, 2013, were as follows: | ||||||||||||||||||||||||
As of Aug. 31, | ||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | ||||||||||||||||||||||
Derivatives Designated as Hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | $ | 585 | $ | 261 | ||||||||||||||||||||
Commodity contracts | 626 | 872 | ||||||||||||||||||||||
Total Derivatives Designated as Hedges | $ | 1,211 | $ | 1,133 | ||||||||||||||||||||
Derivatives Not Designated as Hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | $ | 2,054 | $ | 1,188 | ||||||||||||||||||||
Commodity contracts | 272 | 217 | ||||||||||||||||||||||
Interest rate contracts | 160 | — | ||||||||||||||||||||||
Total Derivatives Not Designated as Hedges | $ | 2,486 | $ | 1,405 | ||||||||||||||||||||
Fair Values of Derivative Instruments | ' | |||||||||||||||||||||||
As of Aug. 31, 2014 | ||||||||||||||||||||||||
(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) | $ | — | $ | (10 | ) | $ | (10 | ) | $ | 10 | $ | — | ||||||||||||
Total trade receivables, net | — | (10 | ) | (10 | ) | 10 | — | $ | 2,014 | $ | 2,014 | |||||||||||||
Miscellaneous receivables | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | 5 | — | 5 | — | 5 | |||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | 4 | — | 4 | — | 4 | |||||||||||||||||||
Commodity contracts | 13 | — | 13 | — | 13 | |||||||||||||||||||
Total miscellaneous receivables | 22 | — | 22 | — | 22 | 795 | 817 | |||||||||||||||||
Other current assets | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | 4 | (57 | ) | (53 | ) | 53 | — | |||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | 19 | (1 | ) | 18 | — | 18 | ||||||||||||||||||
Total other current assets | 23 | (58 | ) | (35 | ) | 53 | 18 | 187 | 205 | |||||||||||||||
Other assets | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | 2 | — | 2 | — | 2 | |||||||||||||||||||
Commodity contracts(1) | — | (19 | ) | (19 | ) | 19 | — | |||||||||||||||||
Total other assets | 2 | (19 | ) | (17 | ) | 19 | 2 | 807 | 809 | |||||||||||||||
Total Asset Derivatives | $ | 47 | $ | (87 | ) | $ | (40 | ) | $ | 82 | $ | 42 | ||||||||||||
Liability Derivatives: | ||||||||||||||||||||||||
Trade receivables, net | ||||||||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | $ | 10 | $ | (10 | ) | $ | — | $ | — | $ | — | |||||||||||||
Total trade receivables, net | 10 | (10 | ) | — | — | — | ||||||||||||||||||
Other current assets | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | 57 | (57 | ) | — | — | — | ||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | 1 | (1 | ) | — | — | — | ||||||||||||||||||
Total other current assets | 58 | (58 | ) | — | — | — | ||||||||||||||||||
Other assets | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Commodity contracts(1) | 19 | (19 | ) | — | — | — | ||||||||||||||||||
Total other assets | 19 | (19 | ) | — | — | — | ||||||||||||||||||
Miscellaneous short-term accruals | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | 6 | — | 6 | — | 6 | |||||||||||||||||||
Commodity contracts | 3 | — | 3 | — | 3 | |||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | 13 | — | 13 | — | 13 | |||||||||||||||||||
Total miscellaneous short-term accruals | 22 | — | 22 | — | 22 | $ | 940 | $ | 962 | |||||||||||||||
Other liabilities | ||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||
Commodity contracts | 1 | — | 1 | — | 1 | |||||||||||||||||||
Total other liabilities | 1 | — | 1 | — | 1 | 341 | 342 | |||||||||||||||||
Total Liability Derivatives | $ | 110 | $ | (87 | ) | $ | 23 | $ | — | $ | 23 | |||||||||||||
(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. | |||||||||||||||||||||||
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 AOCL(1) | Recognized in Income(2) | |||||||||||||||||||||||
(Effective Portion) | ||||||||||||||||||||||||
Year Ended Aug. 31, | Year Ended Aug. 31, | |||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | Income Statement | |||||||||||||||||
Classification | ||||||||||||||||||||||||
Derivatives Designated as Hedges: | ||||||||||||||||||||||||
Fair value hedges: | ||||||||||||||||||||||||
Commodity contracts(3) | $ | (1 | ) | $ | — | $ | (29 | ) | Cost of goods sold | |||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||
Foreign exchange contracts(4) | $ | (4 | ) | $ | 5 | $ | 2 | 3 | — | (4 | ) | Net sales | ||||||||||||
Foreign exchange contracts | 1 | (5 | ) | 13 | (3 | ) | 4 | 6 | Cost of goods sold | |||||||||||||||
Commodity contracts(5) | (106 | ) | (123 | ) | 64 | (14 | ) | 113 | 69 | Cost of goods sold | ||||||||||||||
Interest rate contracts(6) | (2 | ) | — | (73 | ) | (12 | ) | (12 | ) | (9 | ) | Interest expense | ||||||||||||
Total Derivatives Designated as Hedges | (111 | ) | (123 | ) | 6 | (27 | ) | 105 | 33 | |||||||||||||||
Derivatives Not Designated as Hedges: | ||||||||||||||||||||||||
Foreign exchange contracts(7) | (1 | ) | 41 | (21 | ) | Other expense, net | ||||||||||||||||||
Commodity contracts | 4 | (9 | ) | 6 | Net sales | |||||||||||||||||||
Commodity contracts | 21 | (2 | ) | (19 | ) | Cost of goods sold | ||||||||||||||||||
Total Derivatives Not Designated as Hedges | 24 | 30 | (34 | ) | ||||||||||||||||||||
Total Derivatives | $ | (111 | ) | $ | (123 | ) | $ | 6 | $ | (3 | ) | $ | 135 | $ | (1 | ) | ||||||||
(1) | Accumulated Other Comprehensive Loss (AOCL). | |||||||||||||||||||||||
(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 AOCL into income during the period. | |||||||||||||||||||||||
(3) | Loss on fair value hedges includes a loss of $1 million, loss of less than $1 million and $3 million from ineffectiveness for fiscal year 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||
(4) | Gain on foreign exchange cash flow hedges includes a loss from discontinued hedges of $2 million for fiscal year 2014. There were no hedges discontinued in fiscal years 2013 or 2012. | |||||||||||||||||||||||
(5) | Gain or loss on commodity cash flow hedges includes a loss of $2 million, a loss of $4 million and a gain of less than $1 million from ineffectiveness for fiscal years 2014, 2013 and 2012, respectively. Additionally, the gain on commodity cash flow hedges includes a loss from discontinued hedges of $2 million for fiscal year 2012. There were no hedges discontinued in fiscal years 2014 or 2013. | |||||||||||||||||||||||
(6) | Loss on interest rate contract cash flow hedges includes a loss of less than $1 million and $1 million from ineffectiveness for fiscal years 2014 and 2012. There was no ineffectiveness on interest rate contract cash flow hedges during fiscal year 2013. No amounts were excluded from the assessment of hedge effectiveness during fiscal years 2014, 2013 or 2012. | |||||||||||||||||||||||
(7) | Gain or loss on foreign exchange contracts not designated as hedges was offset by a foreign currency transaction loss of $96 million, a loss of $129 million and a gain of $5 million during fiscal years 2014, 2013 and 2012, respectively. |
POSTRETIREMENT_BENEFITS_PENSIO1
POSTRETIREMENT BENEFITS - PENSIONS (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Aug. 31, 2014 | ||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost | ' | |||||||||||||||||||||||||||||||||||
The components of pension cost for these plans were: | ||||||||||||||||||||||||||||||||||||
Year Ended Aug. 31, 2014 | Year Ended Aug. 31, 2013 | Year Ended Aug. 31, 2012 | ||||||||||||||||||||||||||||||||||
(Dollars in millions) | U.S. | Outside the | Total | U.S. | Outside the | Total | U.S. | Outside the | Total | |||||||||||||||||||||||||||
U.S. | U.S. | U.S. | ||||||||||||||||||||||||||||||||||
Service Cost for Benefits Earned during the Year | $ | 61 | $ | 12 | $ | 73 | $ | 68 | $ | 10 | $ | 78 | $ | 55 | $ | 7 | $ | 62 | ||||||||||||||||||
Interest Cost on Benefit Obligation | 90 | 9 | 99 | 74 | 9 | 83 | 86 | 10 | 96 | |||||||||||||||||||||||||||
Assumed Return on Plan Assets | (135 | ) | (10 | ) | (145 | ) | (137 | ) | (10 | ) | (147 | ) | (124 | ) | (10 | ) | (134 | ) | ||||||||||||||||||
Amortization of Unrecognized Net Loss | 62 | 4 | 66 | 74 | 5 | 79 | 62 | 4 | 66 | |||||||||||||||||||||||||||
Curtailment and Settlement Charge | — | 3 | 3 | — | 7 | 7 | — | 3 | 3 | |||||||||||||||||||||||||||
Other Adjustment | — | 1 | 1 | — | (4 | ) | (4 | ) | — | — | — | |||||||||||||||||||||||||
Total Net Periodic Benefit Cost | $ | 78 | $ | 19 | $ | 97 | $ | 79 | $ | 17 | $ | 96 | $ | 79 | $ | 14 | $ | 93 | ||||||||||||||||||
Changes Recognized in OCI Pension | ' | |||||||||||||||||||||||||||||||||||
The other changes in plan assets and benefit obligations recognized in accumulated other comprehensive loss for the year ended Aug. 31, 2014, were: | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | U.S. | Outside the | Total | |||||||||||||||||||||||||||||||||
U.S. | ||||||||||||||||||||||||||||||||||||
Current Year Actuarial (Gain) Loss | $ | (152 | ) | $ | 4 | $ | (148 | ) | ||||||||||||||||||||||||||||
Recognition of Actuarial Loss | (62 | ) | (7 | ) | (69 | ) | ||||||||||||||||||||||||||||||
Total Recognized in Accumulated Other Comprehensive Loss | $ | (214 | ) | $ | (3 | ) | $ | (217 | ) | |||||||||||||||||||||||||||
Assumptions Used to Determine Pension Costs | ' | |||||||||||||||||||||||||||||||||||
The following assumptions, calculated on a weighted-average basis, were used to determine pension costs for the principal plans in which Monsanto employees participated: | ||||||||||||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||||||||||||||||||||||||||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | ||||||||||||||||||||||||||||||||||
U.S. | Outside the U.S. | U.S. | Outside the U.S. | U.S. | Outside the U.S. | |||||||||||||||||||||||||||||||
Discount Rate | 4.44 | % | 3.62 | % | 3.44 | % | 3.89 | % | 4.59 | % | 5.24 | % | ||||||||||||||||||||||||
Assumed Long-Term Rate of Return on Assets | 7.5 | % | 6.12 | % | 7.5 | % | 6.65 | % | 7.5 | % | 7.08 | % | ||||||||||||||||||||||||
Annual Rates of Salary Increase (for plans that base benefits on final compensation level) | 4 | % | 3.95 | % | 4 | % | 3.89 | % | 4 | % | 3.82 | % | ||||||||||||||||||||||||
Funded Status | ' | |||||||||||||||||||||||||||||||||||
Monsanto uses a measurement date of August 31 for its pension plans. The funded status of the pension plans as of Aug. 31, 2014, and Aug. 31, 2013, was as follows: | ||||||||||||||||||||||||||||||||||||
U.S. | Outside the U.S. | Total | ||||||||||||||||||||||||||||||||||
Year Ended Aug. 31, | Year Ended Aug. 31, | Year Ended Aug. 31, | ||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Change in Benefit Obligation: | ||||||||||||||||||||||||||||||||||||
Benefit obligation at beginning of period | $ | 2,049 | $ | 2,179 | $ | 255 | $ | 251 | $ | 2,304 | $ | 2,430 | ||||||||||||||||||||||||
Service cost | 61 | 68 | 12 | 10 | 73 | 78 | ||||||||||||||||||||||||||||||
Interest cost | 90 | 74 | 9 | 9 | 99 | 83 | ||||||||||||||||||||||||||||||
Plan participants’ contributions | — | — | 2 | 2 | 2 | 2 | ||||||||||||||||||||||||||||||
Actuarial loss (gain) | 117 | (149 | ) | 15 | 11 | 132 | (138 | ) | ||||||||||||||||||||||||||||
Benefits paid | (121 | ) | (123 | ) | (9 | ) | (5 | ) | (130 | ) | (128 | ) | ||||||||||||||||||||||||
Settlements / curtailments | — | — | (10 | ) | (26 | ) | (10 | ) | (26 | ) | ||||||||||||||||||||||||||
Currency loss | — | — | — | 5 | — | 5 | ||||||||||||||||||||||||||||||
Other | — | — | (1 | ) | (2 | ) | (1 | ) | (2 | ) | ||||||||||||||||||||||||||
Benefit Obligation at End of Period | $ | 2,196 | $ | 2,049 | $ | 273 | $ | 255 | $ | 2,469 | $ | 2,304 | ||||||||||||||||||||||||
Change in Plan Assets: | ||||||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of period | $ | 1,977 | $ | 1,945 | $ | 166 | $ | 160 | $ | 2,143 | $ | 2,105 | ||||||||||||||||||||||||
Actual return on plan assets | 404 | 114 | 21 | 10 | 425 | 124 | ||||||||||||||||||||||||||||||
Employer contributions(1) | 38 | 41 | 19 | 20 | 57 | 61 | ||||||||||||||||||||||||||||||
Plan participants’ contributions | — | — | 2 | 2 | 2 | 2 | ||||||||||||||||||||||||||||||
Settlements | — | — | (10 | ) | (26 | ) | (10 | ) | (26 | ) | ||||||||||||||||||||||||||
Benefits paid(1) | (121 | ) | (123 | ) | (9 | ) | (5 | ) | (130 | ) | (128 | ) | ||||||||||||||||||||||||
Currency gain | — | — | 1 | 3 | 1 | 3 | ||||||||||||||||||||||||||||||
Other | — | — | — | 2 | — | 2 | ||||||||||||||||||||||||||||||
Plan Assets at End of Period | $ | 2,298 | $ | 1,977 | $ | 190 | $ | 166 | $ | 2,488 | $ | 2,143 | ||||||||||||||||||||||||
Net (Asset) Liability Recognized | $ | (102 | ) | $ | 72 | $ | 83 | $ | 89 | $ | (19 | ) | $ | 161 | ||||||||||||||||||||||
(1) | Employer contributions and benefits paid include $13 million and $7 million paid from employer assets for unfunded plans in fiscal years 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||||
Assumptions Used to Determine Pension Benefit Obligation | ' | |||||||||||||||||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations as of Aug. 31, 2014, and Aug. 31, 2013, were as follows: | ||||||||||||||||||||||||||||||||||||
U.S. | Outside the U.S. | |||||||||||||||||||||||||||||||||||
Year Ended Aug. 31, | Year Ended Aug. 31, | |||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||
Discount Rate | 4.04% | 4.44% | 3.01% | 3.62% | ||||||||||||||||||||||||||||||||
Rate of Compensation Increase | 4.00% | 4.00% | 3.92% | 3.95% | ||||||||||||||||||||||||||||||||
Projected Benefit Obligations In Excess of Plan Assets | ' | |||||||||||||||||||||||||||||||||||
The projected benefit obligation ("PBO") and the fair value of the plan assets for pension plans with PBOs in excess of plan assets as of Aug. 31, 2014, and Aug. 31, 2013, were as follows: | ||||||||||||||||||||||||||||||||||||
U.S. | Outside the U.S. | Total | ||||||||||||||||||||||||||||||||||
As of Aug. 31, | As of Aug. 31, | As of Aug. 31, | ||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
PBO | $ | 66 | $ | 2,049 | $ | 242 | $ | 235 | $ | 308 | $ | 2,284 | ||||||||||||||||||||||||
Fair Value of Plan Assets with PBOs | — | 1,977 | 156 | 148 | 156 | 2,125 | ||||||||||||||||||||||||||||||
in Excess of Plan Assets | ||||||||||||||||||||||||||||||||||||
Accumulated Benefit Obligations In Excess of Plan Assets | ' | |||||||||||||||||||||||||||||||||||
The PBO, ABO, and the fair value of the plan assets for pension plans with ABOs in excess of plan assets as of Aug. 31, 2014, and Aug. 31, 2013, were as follows: | ||||||||||||||||||||||||||||||||||||
U.S. | Outside the U.S. | Total | ||||||||||||||||||||||||||||||||||
As of Aug. 31, | As of Aug. 31, | As of Aug. 31, | ||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
PBO | $ | 66 | $ | 60 | $ | 115 | $ | 105 | $ | 181 | $ | 165 | ||||||||||||||||||||||||
ABO | 62 | 56 | 94 | 87 | 156 | 143 | ||||||||||||||||||||||||||||||
Fair Value of Plan Assets with ABOs | — | — | 32 | 23 | 32 | 23 | ||||||||||||||||||||||||||||||
in Excess of Plan Assets | ||||||||||||||||||||||||||||||||||||
Net Amount Recognized | ' | |||||||||||||||||||||||||||||||||||
As of Aug. 31, 2014, and Aug. 31, 2013, amounts recognized in the Statements of Consolidated Financial Position were included in the following balance sheet accounts: | ||||||||||||||||||||||||||||||||||||
Net Amount Recognized | ||||||||||||||||||||||||||||||||||||
U.S. | Outside the U.S. | Total | ||||||||||||||||||||||||||||||||||
As of Aug. 31, | As of Aug. 31, | As of Aug. 31, | ||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Other Assets | $ | (168 | ) | $ | — | $ | (12 | ) | $ | (8 | ) | $ | (180 | ) | $ | (8 | ) | |||||||||||||||||||
Miscellaneous Short-Term Accruals | 7 | 5 | 7 | 8 | 14 | 13 | ||||||||||||||||||||||||||||||
Postretirement Liabilities | 59 | 67 | 88 | 89 | 147 | 156 | ||||||||||||||||||||||||||||||
Net (Asset) Liability Recognized | $ | (102 | ) | $ | 72 | $ | 83 | $ | 89 | $ | (19 | ) | $ | 161 | ||||||||||||||||||||||
Pre-Tax Components Recognized in AOCI Pension | ' | |||||||||||||||||||||||||||||||||||
The following table provides a summary of the pretax components of the amount recognized in accumulated other comprehensive loss: | ||||||||||||||||||||||||||||||||||||
U.S. | Outside the U.S. | Total | ||||||||||||||||||||||||||||||||||
As of Aug. 31, | As of Aug. 31, | As of Aug. 31, | ||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Net Prior Service Cost | $ | — | $ | — | $ | — | $ | 1 | $ | — | $ | 1 | ||||||||||||||||||||||||
Net Loss | 324 | 538 | 57 | 59 | 381 | 597 | ||||||||||||||||||||||||||||||
Total | $ | 324 | $ | 538 | $ | 57 | $ | 60 | $ | 381 | $ | 598 | ||||||||||||||||||||||||
Pension Plan Asset Allocation United States | ' | |||||||||||||||||||||||||||||||||||
U.S. Plans: The asset allocations for Monsanto’s U.S. pension plans as of Aug. 31, 2014, and Aug. 31, 2013, and the target allocation range for fiscal year 2015, by asset category, follow. The fair value of assets for these plans was $2.3 billion and $2.0 billion as of Aug. 31, 2014, and Aug. 31, 2013, respectively. | ||||||||||||||||||||||||||||||||||||
Target | Percentage of Plan Assets | |||||||||||||||||||||||||||||||||||
Allocation Range (1) | As of Aug. 31, | |||||||||||||||||||||||||||||||||||
Asset Category | 2015 | 2014 | 2013 | |||||||||||||||||||||||||||||||||
Public Equity Securities | 41-51% | 51.1 | % | 52 | % | |||||||||||||||||||||||||||||||
Private Equity Investments | 2-8% | 3.8 | % | 3.9 | % | |||||||||||||||||||||||||||||||
Debt Securities | 39-49% | 40.5 | % | 38.9 | % | |||||||||||||||||||||||||||||||
Real Estate | 2-8% | 4.1 | % | 4.6 | % | |||||||||||||||||||||||||||||||
Other | 0-3% | 0.5 | % | 0.6 | % | |||||||||||||||||||||||||||||||
Total | 100 | % | 100 | % | ||||||||||||||||||||||||||||||||
Pension Plan Asset Allocation Foreign | ' | |||||||||||||||||||||||||||||||||||
Plans Outside the United States: The weighted-average asset allocation for Monsanto’s pension plans outside of the United States as of Aug. 31, 2014, and Aug. 31, 2013, and the weighted-average target allocation for fiscal year 2015, by asset category, follow. The fair value of plan assets for these plans was $190 million and $166 million as of Aug. 31, 2014, and Aug. 31, 2013, respectively. | ||||||||||||||||||||||||||||||||||||
Percentage of Plan Assets | ||||||||||||||||||||||||||||||||||||
Target | As of Aug. 31, | |||||||||||||||||||||||||||||||||||
Allocation(1) | ||||||||||||||||||||||||||||||||||||
Asset Category | 2015 | 2014 | 2013 | |||||||||||||||||||||||||||||||||
Equity Securities | 37.4 | % | 32.8 | % | 34.4 | % | ||||||||||||||||||||||||||||||
Debt Securities | 48.9 | % | 52.3 | % | 52.4 | % | ||||||||||||||||||||||||||||||
Other | 13.7 | % | 14.9 | % | 13.2 | % | ||||||||||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | ||||||||||||||||||||||||||||||
(1) | Monsanto’s plans outside the United States have a wide range of target allocations, and therefore the 2015 target allocations shown above reflect a weighted-average calculation of the target allocations of each of the plans. | |||||||||||||||||||||||||||||||||||
United States Pension Plan Asset Fair Value | ' | |||||||||||||||||||||||||||||||||||
U.S. Plans: The fair values of our U.S. defined benefit pension plan investments as of Aug. 31, 2014, and Aug. 31, 2013, by asset category, are as follows: | ||||||||||||||||||||||||||||||||||||
Fair Value Measurements at Aug. 31, 2014 | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Cash | Balance as of | |||||||||||||||||||||||||||||||
Collateral | Aug. 31, 2014 | |||||||||||||||||||||||||||||||||||
Offset(1) | ||||||||||||||||||||||||||||||||||||
Investments at Fair Value: | ||||||||||||||||||||||||||||||||||||
Cash | $ | 14 | $ | — | $ | — | $ | — | $ | 14 | ||||||||||||||||||||||||||
Debt Securities: | ||||||||||||||||||||||||||||||||||||
U.S. government debt | — | 339 | — | — | 339 | |||||||||||||||||||||||||||||||
U.S. agency debt | — | 5 | — | — | 5 | |||||||||||||||||||||||||||||||
U.S. state and municipal debt | — | 31 | — | — | 31 | |||||||||||||||||||||||||||||||
Foreign government debt | — | 4 | — | — | 4 | |||||||||||||||||||||||||||||||
U.S. corporate debt | — | 288 | — | — | 288 | |||||||||||||||||||||||||||||||
Mortgage-Backed securities | — | 3 | — | — | 3 | |||||||||||||||||||||||||||||||
Asset-Backed securities | — | 3 | — | — | 3 | |||||||||||||||||||||||||||||||
Foreign corporate debt | — | 77 | — | — | 77 | |||||||||||||||||||||||||||||||
U.S. term bank loans | — | 5 | — | — | 5 | |||||||||||||||||||||||||||||||
Common and Preferred Stock: | ||||||||||||||||||||||||||||||||||||
Domestic small capitalization | 36 | — | — | — | 36 | |||||||||||||||||||||||||||||||
Domestic large capitalization | 459 | — | — | — | 459 | |||||||||||||||||||||||||||||||
International: | ||||||||||||||||||||||||||||||||||||
Developed markets | 181 | — | — | — | 181 | |||||||||||||||||||||||||||||||
Emerging markets | 34 | 1 | — | — | 35 | |||||||||||||||||||||||||||||||
Private Equity Investments | — | — | 87 | — | 87 | |||||||||||||||||||||||||||||||
Partnership and Joint Venture Interests | — | — | 32 | — | 32 | |||||||||||||||||||||||||||||||
Real Estate Investments | — | — | 94 | — | 94 | |||||||||||||||||||||||||||||||
Interest in Pooled Funds: | ||||||||||||||||||||||||||||||||||||
Interest-bearing cash and cash equivalents funds | — | 58 | — | — | 58 | |||||||||||||||||||||||||||||||
Common and preferred stock funds: | ||||||||||||||||||||||||||||||||||||
Domestic small-capitalization | — | 7 | — | — | 7 | |||||||||||||||||||||||||||||||
Domestic large-capitalization | — | 318 | — | — | 318 | |||||||||||||||||||||||||||||||
International | — | 105 | — | — | 105 | |||||||||||||||||||||||||||||||
Corporate debt funds | — | 98 | — | — | 98 | |||||||||||||||||||||||||||||||
Mortgage-Backed securities | — | — | 8 | — | 8 | |||||||||||||||||||||||||||||||
Interest in Pooled Collateral Fund — Securities Lending | — | 334 | — | — | 334 | |||||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||||||||||
Interest rate futures | (1 | ) | — | — | 1 | — | ||||||||||||||||||||||||||||||
Equity index futures | (3 | ) | — | — | 3 | — | ||||||||||||||||||||||||||||||
Foreign currency forwards | — | 1 | — | (1 | ) | — | ||||||||||||||||||||||||||||||
Common and preferred stock sold short | — | (54 | ) | — | 55 | 1 | ||||||||||||||||||||||||||||||
Total Investments at Fair Value | $ | 720 | $ | 1,623 | $ | 221 | $ | 58 | $ | 2,622 | ||||||||||||||||||||||||||
(1) | Futures derivative assets and common and preferred stock sold short have been offset by cash collateral held by the counterparty. | |||||||||||||||||||||||||||||||||||
Fair Value Measurements at Aug. 31, 2013 | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Cash | Balance as of | |||||||||||||||||||||||||||||||
Collateral | Aug. 31, 2013 | |||||||||||||||||||||||||||||||||||
Offset(1) | ||||||||||||||||||||||||||||||||||||
Investments at Fair Value: | ||||||||||||||||||||||||||||||||||||
Cash | $ | 16 | $ | — | $ | — | $ | — | $ | 16 | ||||||||||||||||||||||||||
Debt Securities: | ||||||||||||||||||||||||||||||||||||
U.S. government debt | — | 260 | — | — | 260 | |||||||||||||||||||||||||||||||
U.S. agency debt | — | 7 | — | — | 7 | |||||||||||||||||||||||||||||||
U.S. state and municipal debt | — | 34 | — | — | 34 | |||||||||||||||||||||||||||||||
Foreign government debt | — | 2 | — | — | 2 | |||||||||||||||||||||||||||||||
U.S. corporate debt | — | 243 | — | — | 243 | |||||||||||||||||||||||||||||||
Mortgage-Backed securities | — | 2 | — | — | 2 | |||||||||||||||||||||||||||||||
Asset-Backed securities | — | 3 | — | — | 3 | |||||||||||||||||||||||||||||||
Foreign corporate debt | — | 54 | — | — | 54 | |||||||||||||||||||||||||||||||
U.S. term bank loans | — | 1 | — | — | 1 | |||||||||||||||||||||||||||||||
Common and Preferred Stock: | ||||||||||||||||||||||||||||||||||||
Domestic small capitalization | 46 | — | — | — | 46 | |||||||||||||||||||||||||||||||
Domestic large capitalization | 385 | — | — | — | 385 | |||||||||||||||||||||||||||||||
International: | ||||||||||||||||||||||||||||||||||||
Developed markets | 160 | — | — | — | 160 | |||||||||||||||||||||||||||||||
Emerging markets | 30 | 1 | — | — | 31 | |||||||||||||||||||||||||||||||
Private Equity Investments | — | — | 77 | — | 77 | |||||||||||||||||||||||||||||||
Partnership and Joint Venture Interests | — | — | 32 | — | 32 | |||||||||||||||||||||||||||||||
Real Estate Investments | — | — | 90 | — | 90 | |||||||||||||||||||||||||||||||
Interest in Pooled Funds: | ||||||||||||||||||||||||||||||||||||
Interest-bearing cash and cash equivalents funds | — | 56 | — | — | 56 | |||||||||||||||||||||||||||||||
Common and preferred stock funds: | ||||||||||||||||||||||||||||||||||||
Domestic small-capitalization | — | 7 | — | — | 7 | |||||||||||||||||||||||||||||||
Domestic large-capitalization | — | 277 | — | — | 277 | |||||||||||||||||||||||||||||||
International | — | 89 | — | — | 89 | |||||||||||||||||||||||||||||||
Corporate debt funds | — | 89 | — | — | 89 | |||||||||||||||||||||||||||||||
Mortgage-Backed securities | — | — | 7 | — | 7 | |||||||||||||||||||||||||||||||
Interest in Pooled Collateral Fund — Securities Lending | — | 205 | — | — | 205 | |||||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||||||||||
Common and preferred stock sold short | — | (41 | ) | — | 42 | 1 | ||||||||||||||||||||||||||||||
Total Investments at Fair Value | $ | 637 | $ | 1,289 | $ | 206 | $ | 42 | $ | 2,174 | ||||||||||||||||||||||||||
(1) | Futures derivative assets and common and preferred stock sold short have been offset by cash collateral held by the counterparty. | |||||||||||||||||||||||||||||||||||
United States Pension plan Asset Level 3 Rollforward | ' | |||||||||||||||||||||||||||||||||||
The following table summarizes the changes in fair value of the Level 3 investments as of Aug. 31, 2013, and Aug. 31, 2014: | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Private Equity | Partnership/Joint | Real Estate | Mortgage-Backed | Total | |||||||||||||||||||||||||||||||
Investments | Venture Interests | Investments | Securities Fund | |||||||||||||||||||||||||||||||||
Investments | ||||||||||||||||||||||||||||||||||||
Balance Aug. 31, 2012 | $ | 73 | $ | 32 | $ | 80 | $ | 8 | $ | 193 | ||||||||||||||||||||||||||
Purchases | 13 | — | 7 | — | 20 | |||||||||||||||||||||||||||||||
Sales | (17 | ) | — | (1 | ) | — | (18 | ) | ||||||||||||||||||||||||||||
Realized/unrealized gains | 8 | — | 4 | — | 12 | |||||||||||||||||||||||||||||||
Balance Aug. 31, 2013 | $ | 77 | $ | 32 | $ | 90 | $ | 8 | $ | 207 | ||||||||||||||||||||||||||
Net Unrealized Gains Still Held Included in Earnings(1) | $ | 11 | $ | 1 | $ | 4 | $ | — | $ | 16 | ||||||||||||||||||||||||||
(Dollars in millions) | Private Equity | Partnership/Joint | Real Estate | Mortgage-Backed | Total | |||||||||||||||||||||||||||||||
Investments | Venture Interests | Investments | Securities Fund | |||||||||||||||||||||||||||||||||
Investments | ||||||||||||||||||||||||||||||||||||
Balance Aug. 31, 2013 | $ | 77 | $ | 32 | $ | 90 | $ | 8 | $ | 207 | ||||||||||||||||||||||||||
Purchases | 15 | — | 5 | — | 20 | |||||||||||||||||||||||||||||||
Sales | (18 | ) | (3 | ) | (6 | ) | — | (27 | ) | |||||||||||||||||||||||||||
Realized/unrealized gains | 13 | 3 | 5 | — | 21 | |||||||||||||||||||||||||||||||
Balance Aug. 31, 2014 | $ | 87 | $ | 32 | $ | 94 | $ | 8 | $ | 221 | ||||||||||||||||||||||||||
Net Unrealized Gains Still Held Included in Earnings(1) | $ | 16 | $ | — | $ | 6 | $ | — | $ | 22 | ||||||||||||||||||||||||||
(1) | Represents the amount of total gains for the period attributable to change in unrealized gains (losses) relating to assets and liabilities classified as Level 3 that are still held as of Aug. 31, 2013, and Aug. 31, 2014. | |||||||||||||||||||||||||||||||||||
Investments At Fair Value To Plan Assets Reconciliation | ' | |||||||||||||||||||||||||||||||||||
The following table reconciles the investments at fair value to the plan assets as of Aug. 31, 2014. | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||||||
Total Investments at Fair Value | $ | 2,622 | ||||||||||||||||||||||||||||||||||
Liability to return collateral held under securities lending agreement | (334 | ) | ||||||||||||||||||||||||||||||||||
Non-interest bearing cash | 3 | |||||||||||||||||||||||||||||||||||
Accrued income / expense | 7 | |||||||||||||||||||||||||||||||||||
Plan Assets at the End of the Period | $ | 2,298 | ||||||||||||||||||||||||||||||||||
Foreign Pension Plan Asset Fair Value | ' | |||||||||||||||||||||||||||||||||||
Plans Outside the United States: The fair values of our defined benefit pension plan investments outside of the United States as of Aug. 31, 2014, and Aug. 31, 2013, by asset category, are as follows: | ||||||||||||||||||||||||||||||||||||
Fair Value Measurements at Aug. 31, 2014 | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Balance as of | ||||||||||||||||||||||||||||||||
Aug. 31, 2014 | ||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 2 | $ | — | $ | — | $ | 2 | ||||||||||||||||||||||||||||
Debt Securities — Foreign Government Debt | — | 16 | — | 16 | ||||||||||||||||||||||||||||||||
Common and Preferred stock | 46 | — | — | 46 | ||||||||||||||||||||||||||||||||
Insurance-Backed Securities | — | — | 25 | 25 | ||||||||||||||||||||||||||||||||
Interest in Pooled Funds: | ||||||||||||||||||||||||||||||||||||
Common and preferred stock funds | — | 15 | — | 15 | ||||||||||||||||||||||||||||||||
Government debt funds | — | 11 | — | 11 | ||||||||||||||||||||||||||||||||
Corporate debt funds | — | 75 | — | 75 | ||||||||||||||||||||||||||||||||
Total Investments at Fair Value | $ | 48 | $ | 117 | $ | 25 | $ | 190 | ||||||||||||||||||||||||||||
Fair Value Measurements at Aug. 31, 2013 | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Balance as of | ||||||||||||||||||||||||||||||||
Aug. 31, 2013 | ||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 2 | $ | — | $ | — | $ | 2 | ||||||||||||||||||||||||||||
Debt Securities — Foreign Government Debt | — | 15 | — | 15 | ||||||||||||||||||||||||||||||||
Common and Preferred stock | 45 | — | — | 45 | ||||||||||||||||||||||||||||||||
Insurance-Backed Securities | — | — | 19 | 19 | ||||||||||||||||||||||||||||||||
Interest in Pooled Funds: | ||||||||||||||||||||||||||||||||||||
Common and preferred stock funds | — | 12 | — | 12 | ||||||||||||||||||||||||||||||||
Government debt funds | — | 5 | — | 5 | ||||||||||||||||||||||||||||||||
Mortgage-Backed Securities | — | 3 | — | 3 | ||||||||||||||||||||||||||||||||
Corporate debt funds | — | 65 | — | 65 | ||||||||||||||||||||||||||||||||
Total Investments at Fair Value | $ | 47 | $ | 100 | $ | 19 | $ | 166 | ||||||||||||||||||||||||||||
Foreign Pension plan Asset Level 3 Rollforward | ' | |||||||||||||||||||||||||||||||||||
The following table summarizes the changes in fair value of the Level 3 investments as of Aug. 31, 2013, and Aug. 31, 2014. | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Insurance-Backed | |||||||||||||||||||||||||||||||||||
Securities | ||||||||||||||||||||||||||||||||||||
Balance Aug. 31, 2012 | $ | 17 | ||||||||||||||||||||||||||||||||||
Purchases | 4 | |||||||||||||||||||||||||||||||||||
Sales | (3 | ) | ||||||||||||||||||||||||||||||||||
Net unrealized gains | 1 | |||||||||||||||||||||||||||||||||||
Balance Aug. 31, 2013 | $ | 19 | ||||||||||||||||||||||||||||||||||
Purchases | 6 | |||||||||||||||||||||||||||||||||||
Balance Aug. 31, 2014 | $ | 25 | ||||||||||||||||||||||||||||||||||
Expected Cash Flows Pension | ' | |||||||||||||||||||||||||||||||||||
The expected employer contributions and benefit payments are shown in the following table for the pension plans: | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | U.S. | Outside the | ||||||||||||||||||||||||||||||||||
U.S. | ||||||||||||||||||||||||||||||||||||
Employer Contributions 2015 (funded Plans) | $ | 30 | $ | 11 | ||||||||||||||||||||||||||||||||
Benefits Paid Directly by Employer 2015 (unfunded Plans) | 6 | 7 | ||||||||||||||||||||||||||||||||||
Benefit Payments(1) | ||||||||||||||||||||||||||||||||||||
2015 | 183 | 24 | ||||||||||||||||||||||||||||||||||
2016 | 173 | 14 | ||||||||||||||||||||||||||||||||||
2017 | 174 | 17 | ||||||||||||||||||||||||||||||||||
2018 | 174 | 17 | ||||||||||||||||||||||||||||||||||
2019 | 174 | 15 | ||||||||||||||||||||||||||||||||||
2020-2024 | 831 | 88 | ||||||||||||||||||||||||||||||||||
POSTRETIREMENT_BENEFITS_HEALTH1
POSTRETIREMENT BENEFITS - HEALTH CARE AND OTHER POSTEMPLOYMENT BENEFITS (Tables) | 12 Months Ended | |||||||||||
Aug. 31, 2014 | ||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||
Net Periodic Cost Postretirement | ' | |||||||||||
The cost components of these plans were: | ||||||||||||
Year Ended Aug. 31, | ||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | |||||||||
Service Cost for Benefits Earned During the Period | $ | 7 | $ | 9 | $ | 10 | ||||||
Interest Cost on Benefit Obligation | 7 | 6 | 10 | |||||||||
Amortization of Prior Service Credit | (1 | ) | (1 | ) | (1 | ) | ||||||
Amortization of Actuarial Gain | (13 | ) | (5 | ) | (6 | ) | ||||||
Total Net Periodic Benefit Cost | $ | — | $ | 9 | $ | 13 | ||||||
Changes Recognized in OCI Postretirement | ' | |||||||||||
The other changes in plan assets and benefit obligations recognized in accumulated other comprehensive loss for the year ended Aug. 31, 2014, and Aug. 31, 2013, were: | ||||||||||||
Year Ended Aug. 31, | ||||||||||||
(Dollars in millions) | 2014 | 2013 | ||||||||||
Actuarial Loss (Gain) | $ | 6 | $ | (13 | ) | |||||||
Amortization of Prior Service Credit | 1 | 1 | ||||||||||
Amortization of Actuarial Gain | 13 | 5 | ||||||||||
Total Loss (Gain) Recognized in Accumulated Other Comprehensive Loss | $ | 20 | $ | (7 | ) | |||||||
Assumptions Used to Determine Postretirement Costs | ' | |||||||||||
The following assumptions, calculated on a weighted-average basis, were used to determine the postretirement costs for the principal plans in which Monsanto employees participated: | ||||||||||||
Year Ended Aug. 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Discount Rate Postretirement | 3.95% | 2.95% | 4.30% | |||||||||
Discount Rate Postemployment | 2.55% | 1.55% | 2.20% | |||||||||
Initial Trend Rate for Health Care Costs | 6.50% | 7.00% | 7.00% | |||||||||
Ultimate Trend Rate for Health Care Costs | 5.00% | 5.00% | 5.00% | |||||||||
One Percent Effect on Postretirement Costs and Benefit Obligation | ' | |||||||||||
A 1 percentage-point change in assumed health care cost trend rates would have the following effects: | ||||||||||||
(Dollars in millions) | 1 Percentage-Point | 1 Percentage-Point | ||||||||||
Increase | Decrease | |||||||||||
Effect on Total of Service and Interest Cost | $1 | ($1) | ||||||||||
Effect on Postretirement Benefit Obligation | $4 | ($4) | ||||||||||
Benefit Obligations Postretirement | ' | |||||||||||
The status of the postretirement health care, life insurance and employee disability benefit plans in which Monsanto employees participated was as follows for the periods indicated: | ||||||||||||
Year Ended Aug. 31, | ||||||||||||
(Dollars in millions) | 2014 | 2013 | ||||||||||
Change in Benefit Obligation: | ||||||||||||
Benefit obligation at beginning of period | $ | 192 | $ | 215 | ||||||||
Service cost | 7 | 9 | ||||||||||
Interest cost | 7 | 6 | ||||||||||
Actuarial loss (gain) | 6 | (13 | ) | |||||||||
Plan participant contributions | 5 | 4 | ||||||||||
Medicare Part D subsidy receipts | 1 | 1 | ||||||||||
Benefits paid | (29 | ) | (29 | ) | ||||||||
Currency impact | — | (1 | ) | |||||||||
Benefit Obligation at End of Period | $ | 189 | $ | 192 | ||||||||
Assumptions Used to Determine Postretirement Benefit Obligation | ' | |||||||||||
Year Ended Aug. 31, | ||||||||||||
2014 | 2013 | |||||||||||
Discount Rate Postretirement | 3.60% | 3.95% | ||||||||||
Discount Rate Postemployment | 2.40% | 2.55% | ||||||||||
Initial Trend Rate for Health Care Costs(1) | 6.00% | 6.50% | ||||||||||
Ultimate Trend Rate for Health Care Costs | 5.00% | 5.00% | ||||||||||
(1) | As of Aug. 31, 2014, this rate is assumed to decrease gradually to 5 percent for 2017 and remain at that level thereafter. | |||||||||||
Postretirement Amounts Recognized in Statements Of Consolidated Financial Position | ' | |||||||||||
As of Aug. 31, 2014, and Aug. 31, 2013, amounts recognized in the Statements of Consolidated Financial Position were as follows: | ||||||||||||
As of Aug. 31, | ||||||||||||
(Dollars in millions) | 2014 | 2013 | ||||||||||
Miscellaneous Short-Term Accruals | $ | 22 | $ | 22 | ||||||||
Postretirement Liabilities | 167 | 170 | ||||||||||
Total Liability Recognized | $ | 189 | $ | 192 | ||||||||
Pre-Tax Components Recognized in AOCI Postretirement | ' | |||||||||||
The following table provides a summary of the pretax components of the amount recognized in accumulated other comprehensive loss: | ||||||||||||
Year Ended Aug. 31, | ||||||||||||
(Dollars in millions) | 2014 | 2013 | ||||||||||
Actuarial Gain | $ | (23 | ) | $ | (42 | ) | ||||||
Prior Service Credit | (1 | ) | (2 | ) | ||||||||
Total | $ | (24 | ) | $ | (44 | ) | ||||||
Expected Cash Flows Postretirement | ' | |||||||||||
Information about the expected cash flows for the other postretirement benefit plans follows: | ||||||||||||
(Dollars in millions) | Total | |||||||||||
Benefits Paid Directly by Employer 2015 | $ | 22 | ||||||||||
Benefit Payments(1) (2) | ||||||||||||
2015 | 22 | |||||||||||
2016 | 23 | |||||||||||
2017 | 22 | |||||||||||
2018 | 21 | |||||||||||
2019 | 19 | |||||||||||
2020-2024 | 77 | |||||||||||
(1) Benefit payments are net of expected federal subsidy receipts related to prescription drug benefits granted under the Medicare Prescription Drug Improvement and Modernization Act of 2003, which are estimated to be less than $1 million annually. | ||||||||||||
(2) Expected benefit payments include benefits paid directly by employer for unfunded plans. |
STOCKBASED_COMPENSATION_PLANS_
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended | |||||||||||||||||||||||
Aug. 31, 2014 | ||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||||||||||
Components of Stock Based Compensation | ' | |||||||||||||||||||||||
The following table shows the components of stock-based compensation in the Statements of Consolidated Operations and Statements of Consolidated Cash Flows. | ||||||||||||||||||||||||
Year Ended Aug. 31, | ||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Cost of Goods Sold | $ | 8 | $ | 11 | $ | 19 | ||||||||||||||||||
Selling, General and Administrative Expenses | 82 | 69 | 82 | |||||||||||||||||||||
Research and Development Expenses | 31 | 20 | 29 | |||||||||||||||||||||
Total Stock-Based Compensation Expense Included in Operating Expenses | 121 | 100 | 130 | |||||||||||||||||||||
Loss from Continuing Operations Before Income Taxes | (121 | ) | (100 | ) | (130 | ) | ||||||||||||||||||
Income Tax Benefit | 40 | 34 | 43 | |||||||||||||||||||||
Net Loss | $ | (81 | ) | $ | (66 | ) | $ | (87 | ) | |||||||||||||||
Basic Loss per Share | $ | (0.16 | ) | $ | (0.12 | ) | $ | (0.16 | ) | |||||||||||||||
Diluted Loss per Share | $ | (0.15 | ) | $ | (0.12 | ) | $ | (0.16 | ) | |||||||||||||||
Net Cash Required by Operating Activities | $ | (72 | ) | $ | (79 | ) | $ | (50 | ) | |||||||||||||||
Net Cash Provided by Financing Activities | $ | 72 | $ | 79 | $ | 50 | ||||||||||||||||||
Rollforward of Stock Options | ' | |||||||||||||||||||||||
A summary of the status of Monsanto’s stock options for the periods from Sept. 1, 2011, through August 31, 2014, follows: | ||||||||||||||||||||||||
Options | Outstanding | |||||||||||||||||||||||
Weighted-Average | ||||||||||||||||||||||||
Exercise Price | ||||||||||||||||||||||||
Balance Outstanding Aug. 31, 2011 | 21,509,035 | $ | 51.78 | |||||||||||||||||||||
Granted | 2,300,980 | 74.76 | ||||||||||||||||||||||
Exercised | (3,967,203 | ) | 29.51 | |||||||||||||||||||||
Forfeited | (387,878 | ) | 76.12 | |||||||||||||||||||||
Balance Outstanding Aug. 31, 2012 | 19,454,934 | 58.56 | ||||||||||||||||||||||
Granted | 1,912,030 | 90.7 | ||||||||||||||||||||||
Exercised | (5,306,225 | ) | 48.33 | |||||||||||||||||||||
Forfeited | (196,852 | ) | 79.95 | |||||||||||||||||||||
Balance Outstanding Aug. 31, 2013 | 15,863,887 | 65.59 | ||||||||||||||||||||||
Granted | 2,302,786 | 84.97 | ||||||||||||||||||||||
Exercised | (4,537,028 | ) | 54.72 | |||||||||||||||||||||
Forfeited | (192,010 | ) | 90.06 | |||||||||||||||||||||
Balance Outstanding Aug. 31, 2014 | 13,437,635 | $ | 72.23 | |||||||||||||||||||||
Restricted Stock | ' | |||||||||||||||||||||||
A summary of the status of Monsanto’s restricted stock, restricted stock units and directors’ deferred stock compensation plans for fiscal year 2014 follows in the tables below: | ||||||||||||||||||||||||
Restricted | Weighted-Average | Restricted | Weighted-Average | Directors’ | Weighted-Average | |||||||||||||||||||
Stock | Grant Date | Stock | Grant Date | Deferred | Grant Date | |||||||||||||||||||
Fair Values | Units | Fair Values | Stock | Fair Value | ||||||||||||||||||||
Nonvested as of Aug. 31, 2013 | 7,951 | $ | 76.1 | 1,656,187 | $ | 77.15 | — | $ | — | |||||||||||||||
Granted | 4,831 | 108.1 | 1,185,136 | 102.1 | 18,903 | 98.38 | ||||||||||||||||||
Vested | (8,740 | ) | 77.48 | (428,942 | ) | 73.91 | (18,903 | ) | 98.38 | |||||||||||||||
Forfeitures | — | — | (183,384 | ) | 95.3 | — | — | |||||||||||||||||
Nonvested as of Aug. 31, 2014 | 4,042 | $ | 111.37 | 2,228,997 | $ | 89.54 | — | $ | — | |||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||
Pre-tax unrecognized compensation expense, net of estimated forfeitures as applicable | $ | — | $ | 94 | $ | — | ||||||||||||||||||
Remaining weighted-average period of expense recognition/requisite service periods in years | 2 | 2 | 0 | |||||||||||||||||||||
Weighted Average and Fair Value | ' | |||||||||||||||||||||||
Weighted-average grant-date | Total fair value of equity | |||||||||||||||||||||||
fair value during fiscal year | vested during fiscal year | |||||||||||||||||||||||
(Dollars in millions, except per share amounts) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
Restricted stock | $ | 108.1 | $ | 96.06 | $ | 68.93 | $ | 1 | $ | — | $ | 1 | ||||||||||||
Restricted stock units | $ | 102.1 | $ | 88.8 | $ | 71.65 | $ | 32 | $ | 16 | $ | 102 | ||||||||||||
Directors’ deferred stock | $ | 98.38 | $ | 87.58 | $ | 68.93 | $ | — | $ | 2 | $ | 1 | ||||||||||||
Assumptions Used To Value Stock Options | ' | |||||||||||||||||||||||
The following assumptions were used to calculate the estimated value of employee stock options: | ||||||||||||||||||||||||
Lattice-binomial | ||||||||||||||||||||||||
Assumptions | 2014 | 2013 | 2012 | |||||||||||||||||||||
Expected Dividend Yield | 1.7 | % | 1.9 | % | 1.8 | % | ||||||||||||||||||
Expected Volatility | 19%-36% | 23%-37% | 28%-39% | |||||||||||||||||||||
Weighted-Average Volatility | 27.5 | % | 30.4 | % | 37 | % | ||||||||||||||||||
Risk-Free Interest Rates | 0.70%-2.34% | 0.85%-2.00% | 0.98%-1.62% | |||||||||||||||||||||
Weighted-Average Risk-Free Interest Rate | 1.66 | % | 1.14 | % | 1.57 | % | ||||||||||||||||||
Expected Option Life (in years) | 6 | 7 | 6 | |||||||||||||||||||||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended | |||||||||||||||
Aug. 31, 2014 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
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 twelve months ended Aug. 31, 2014: | ||||||||||||||||
(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, 2012 | $ | (602 | ) | $ | 5 | $ | 29 | $ | (468 | ) | $ | (1,036 | ) | |||
Other comprehensive income (loss) | (229 | ) | 3 | (144 | ) | 128 | (242 | ) | ||||||||
Balance as of Aug. 31, 2013 | (831 | ) | 8 | (115 | ) | (340 | ) | (1,278 | ) | |||||||
Other comprehensive income (loss) before reclassifications | 100 | — | (69 | ) | 88 | 119 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | (3 | ) | 17 | 31 | 45 | ||||||||||
Net current-period other comprehensive income (loss) | 100 | (3 | ) | (52 | ) | 119 | 164 | |||||||||
Balance as of Aug. 31, 2014 | $ | (731 | ) | $ | 5 | $ | (167 | ) | $ | (221 | ) | $ | (1,114 | ) | ||
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 twelve months ended Aug. 31, 2014: | ||||||||||||||||
Amount Reclassified from Accumulated Other Comprehensive Loss | Affected Line Item in the Statement of Consolidated Operations | |||||||||||||||
Twelve months ended Aug. 31, 2014 | ||||||||||||||||
Available for Sale Securities: | ||||||||||||||||
Gain on Sale of Security | $ | (6 | ) | Other expense, net | ||||||||||||
Impairment | 1 | Other expense, net | ||||||||||||||
(5 | ) | Total before income taxes | ||||||||||||||
2 | Income tax provision | |||||||||||||||
$ | (3 | ) | Net of tax | |||||||||||||
Cash Flow Hedges: | ||||||||||||||||
Foreign Exchange Contracts | $ | (3 | ) | Net sales | ||||||||||||
Foreign Exchange Contracts | 3 | Cost of goods sold | ||||||||||||||
Commodity Contracts | 14 | Cost of goods sold | ||||||||||||||
Interest Rate Contracts | 12 | Interest expense | ||||||||||||||
26 | Total before income taxes | |||||||||||||||
(9 | ) | Income tax provision | ||||||||||||||
$ | 17 | Net of tax | ||||||||||||||
Postretirement Benefit Items: | ||||||||||||||||
Amortization of Unrecognized Net Loss | $ | 14 | Inventory / Cost of goods sold(1) | |||||||||||||
Amortization of Unrecognized Net Loss | 36 | Selling, general and administrative expenses | ||||||||||||||
50 | Total before income taxes | |||||||||||||||
(19 | ) | Income tax provision | ||||||||||||||
$ | 31 | Net of tax | ||||||||||||||
Total Reclassifications For The Period | $ | 45 | 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 $14 million of net periodic benefit cost to inventory, of which approximately $14 million was recognized in cost of goods sold during the twelve months ended Aug. 31, 2014. See Note 17 - Postretirement Benefits - Pensions - and Note 18 - Postretirement Benefits - Health Care and Other Postemployment Benefits - for additional informatio |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||
Aug. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Basic Earnings Per Share Table | ' | ||||||||
Year Ended Aug. 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Weighted-Average Number of Common Shares | 519.3 | 533.7 | 534.1 | ||||||
Dilutive Potential Common Shares | 5.6 | 6 | 6.1 | ||||||
Antidilutive Potential Common Shares | 1.7 | 1.8 | 6.7 | ||||||
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 | 4.5 | ||||||
SUPPLEMENTAL_CASH_FLOW_Tables
SUPPLEMENTAL CASH FLOW (Tables) | 12 Months Ended | |||||||||||
Aug. 31, 2014 | ||||||||||||
Supplemental Cash Flow Information [Abstract] | ' | |||||||||||
Cash Payments for Interest and Taxes | ' | |||||||||||
Cash payments for interest and taxes during fiscal years 2014, 2013, and 2012, were as follows: | ||||||||||||
Year Ended Aug. 31, | ||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | |||||||||
Interest | $ | 158 | $ | 141 | $ | 159 | ||||||
Taxes | 1,019 | 907 | 688 | |||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Contractual Obligations | ' | ||||||||||||||||||||||||||||
The following table sets forth the company’s estimates of future payments under contracts as of Aug. 31, 2014. | |||||||||||||||||||||||||||||
Payments Due by Fiscal Year Ending Aug. 31, | |||||||||||||||||||||||||||||
(Dollars in millions) | Total | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 and | ||||||||||||||||||||||
beyond | |||||||||||||||||||||||||||||
Total Debt, including Capital Lease Obligations(1) | $ | 7,761 | $ | 233 | $ | 307 | $ | 901 | $ | 302 | $ | 802 | $ | 5,216 | |||||||||||||||
Interest Payments Relating to Long-Term Debt and Capital Lease Obligations(1) | 5,755 | 273 | 272 | 261 | 261 | 255 | 236 | 4,458 | |||||||||||||||||||||
Operating Lease Obligations | 556 | 133 | 102 | 80 | 65 | 57 | 119 | ||||||||||||||||||||||
Purchase Obligations: | |||||||||||||||||||||||||||||
Commitments to purchase inventories | 2,079 | 1,201 | 255 | 217 | 216 | 186 | 4 | ||||||||||||||||||||||
Commitments to purchase breeding research | 605 | 55 | 55 | 55 | 55 | 55 | 330 | ||||||||||||||||||||||
R&D alliances and joint venture obligations | 182 | 53 | 54 | 32 | 28 | 8 | 7 | ||||||||||||||||||||||
Uncompleted additions to property | 79 | 72 | 7 | — | — | — | — | ||||||||||||||||||||||
Other purchase obligations | 15 | 12 | 1 | 1 | 1 | — | — | ||||||||||||||||||||||
Other Liabilities: | |||||||||||||||||||||||||||||
Postretirement liabilities(2) | 76 | 76 | — | — | — | — | — | ||||||||||||||||||||||
Unrecognized tax benefits(3) | 87 | — | — | — | — | — | — | ||||||||||||||||||||||
Other liabilities | 188 | 27 | 21 | 8 | 6 | 6 | 120 | ||||||||||||||||||||||
Total Contractual Obligations | $ | 17,383 | $ | 2,135 | $ | 1,074 | $ | 1,555 | $ | 928 | $ | 1,350 | $ | 10,254 | |||||||||||||||
(1) | For variable rate debt, interest is calculated using the applicable rates as of Aug. 31, 2014. | ||||||||||||||||||||||||||||
(2) | Includes the company’s planned pension and other postretirement benefit contributions for 2015. The actual amounts funded in 2015 may differ from the amounts listed above. Contributions in 2016 and beyond are excluded as those amounts are unknown. Refer to Note 17 - Postretirement Benefits - Pensions - and Note 18 - Postretirement Benefits - Health Care and Other Postemployment Benefits - for more information. | ||||||||||||||||||||||||||||
(3) | Unrecognized tax benefits relate to uncertain tax positions recorded under the Income Taxes topic of the ASC. The company is unable to reasonably predict the timing of tax settlements, as tax audits can involve complex issues and the resolution of those issues may span multiple years, particularly if subject to negotiation or litigation. See Note 13 - Income Taxes - for more information. | ||||||||||||||||||||||||||||
Trade Receivables By Customer Concentration | ' | ||||||||||||||||||||||||||||
The following table sets forth Monsanto’s gross trade receivables as of Aug. 31, 2014, and Aug. 31, 2013, by significant customer concentrations: | |||||||||||||||||||||||||||||
As of Aug. 31, | |||||||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | |||||||||||||||||||||||||||
Europe-Africa(1) | $ | 522 | $ | 504 | |||||||||||||||||||||||||
U.S. Agricultural Product Distributors | 579 | 455 | |||||||||||||||||||||||||||
Argentina(1) | 327 | 298 | |||||||||||||||||||||||||||
Asia-Pacific(1) | 175 | 151 | |||||||||||||||||||||||||||
Mexico(1) | 160 | 132 | |||||||||||||||||||||||||||
Brazil(1) | 178 | 101 | |||||||||||||||||||||||||||
Canada(1) | 22 | 23 | |||||||||||||||||||||||||||
Other | 123 | 119 | |||||||||||||||||||||||||||
Gross Trade Receivables | 2,086 | 1,783 | |||||||||||||||||||||||||||
Less: Allowance for Doubtful Accounts | (72 | ) | (68 | ) | |||||||||||||||||||||||||
Net Trade Receivables | $ | 2,014 | $ | 1,715 | |||||||||||||||||||||||||
(1) | Represents customer receivables within the specified geography. | ||||||||||||||||||||||||||||
Discounted and Undiscounted Environmental And Litigation Liabilities | ' | ||||||||||||||||||||||||||||
The following table provides a detailed summary of the discounted and undiscounted amounts included in the reserve for environmental and litigation liabilities: | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Aggregate Undiscounted Amount | $ | 149 | |||||||||||||||||||||||||||
Discounted Portion: | |||||||||||||||||||||||||||||
Expected payment (undiscounted) for: | |||||||||||||||||||||||||||||
2015 | 27 | ||||||||||||||||||||||||||||
2016 | 21 | ||||||||||||||||||||||||||||
2017 | 8 | ||||||||||||||||||||||||||||
2018 | 6 | ||||||||||||||||||||||||||||
2019 | 6 | ||||||||||||||||||||||||||||
Undiscounted aggregate expected payments after 2019 | 120 | ||||||||||||||||||||||||||||
Aggregate Amount to be Discounted as of Aug. 31, 2014 | 188 | ||||||||||||||||||||||||||||
Discount, as of Aug. 31, 2014 | (46 | ) | |||||||||||||||||||||||||||
Aggregate Discounted Amount Accrued as of Aug. 31, 2014 | $ | 142 | |||||||||||||||||||||||||||
Total Environmental and Litigation Reserve as of Aug. 31, 2014 | $ | 291 | |||||||||||||||||||||||||||
Environmental And Litigation Liabilities | ' | ||||||||||||||||||||||||||||
Changes in the environmental and litigation liabilities for fiscal years 2012, 2013 and 2014 are as follows: | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Balance at Aug. 31, 2011 | $ | 265 | |||||||||||||||||||||||||||
Payments | (53 | ) | |||||||||||||||||||||||||||
Accretion | 6 | ||||||||||||||||||||||||||||
Adjustments to liabilities recognized in fiscal year 2012 | 52 | ||||||||||||||||||||||||||||
Balance at Aug. 31, 2012 | $ | 270 | |||||||||||||||||||||||||||
Payments | (35 | ) | |||||||||||||||||||||||||||
Accretion | 5 | ||||||||||||||||||||||||||||
Adjustments to liabilities recognized in fiscal year 2013 | 31 | ||||||||||||||||||||||||||||
Balance at Aug. 31, 2013 | $ | 271 | |||||||||||||||||||||||||||
Payments | (69 | ) | |||||||||||||||||||||||||||
Accretion | 7 | ||||||||||||||||||||||||||||
Adjustments to liabilities recognized in fiscal year 2014 | 82 | ||||||||||||||||||||||||||||
Total Environmental and Litigation Reserve as of Aug. 31, 2014 | $ | 291 | |||||||||||||||||||||||||||
SEGMENT_AND_GEOGRAPHIC_DATA_Ta
SEGMENT AND GEOGRAPHIC DATA (Tables) | 12 Months Ended | |||||||||||||||||||
Aug. 31, 2014 | ||||||||||||||||||||
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, are presented in the table that follows: | ||||||||||||||||||||
Year Ended Aug. 31, | ||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Net Sales(1) | ||||||||||||||||||||
Corn seed and traits | $ | 6,401 | $ | 6,596 | $ | 5,814 | ||||||||||||||
Soybean seed and traits | 2,102 | 1,653 | 1,771 | |||||||||||||||||
Cotton seed and traits | 665 | 695 | 779 | |||||||||||||||||
Vegetable seeds | 867 | 821 | 851 | |||||||||||||||||
All other crops seeds and traits | 705 | 575 | 574 | |||||||||||||||||
Total Seeds and Genomics | $ | 10,740 | $ | 10,340 | $ | 9,789 | ||||||||||||||
Agricultural productivity | 5,115 | 4,521 | 3,715 | |||||||||||||||||
Total Agricultural Productivity | $ | 5,115 | $ | 4,521 | $ | 3,715 | ||||||||||||||
Total | $ | 15,855 | $ | 14,861 | $ | 13,504 | ||||||||||||||
Gross Profit | ||||||||||||||||||||
Corn seed and traits | $ | 3,932 | $ | 3,929 | $ | 3,589 | ||||||||||||||
Soybean seed and traits | 1,364 | 948 | 1,160 | |||||||||||||||||
Cotton seed and traits | 461 | 519 | 585 | |||||||||||||||||
Vegetable seeds | 401 | 337 | 419 | |||||||||||||||||
All other crops seeds and traits | 438 | 350 | 306 | |||||||||||||||||
Total Seeds and Genomics | $ | 6,596 | $ | 6,083 | $ | 6,059 | ||||||||||||||
Agricultural productivity | 1,978 | 1,570 | 986 | |||||||||||||||||
Total Agricultural Productivity | $ | 1,978 | $ | 1,570 | $ | 986 | ||||||||||||||
Total | $ | 8,574 | $ | 7,653 | $ | 7,045 | ||||||||||||||
EBIT(2)(3) | ||||||||||||||||||||
Seeds and genomics | $ | 2,607 | $ | 2,412 | $ | 2,570 | ||||||||||||||
Agricultural productivity | 1,345 | 1,048 | 477 | |||||||||||||||||
Total | $ | 3,952 | $ | 3,460 | $ | 3,047 | ||||||||||||||
Depreciation and Amortization Expense | ||||||||||||||||||||
Seeds and genomics | $ | 568 | $ | 495 | $ | 510 | ||||||||||||||
Agricultural productivity | 123 | 120 | 112 | |||||||||||||||||
Total | $ | 691 | $ | 615 | $ | 622 | ||||||||||||||
Equity Affiliate Loss (Income)(4) | ||||||||||||||||||||
Seeds and genomics | $ | 8 | $ | (15 | ) | $ | (10 | ) | ||||||||||||
Agricultural productivity | — | — | — | |||||||||||||||||
Total | $ | 8 | $ | (15 | ) | $ | (10 | ) | ||||||||||||
Total Assets(5) | ||||||||||||||||||||
Seeds and genomics | $ | 17,598 | $ | 16,246 | $ | 15,944 | ||||||||||||||
Agricultural productivity | 4,383 | 4,418 | 4,280 | |||||||||||||||||
Total | $ | 21,981 | $ | 20,664 | $ | 20,224 | ||||||||||||||
Property, Plant and Equipment Purchases | ||||||||||||||||||||
Seeds and genomics | $ | 831 | $ | 619 | $ | 493 | ||||||||||||||
Agricultural productivity | 174 | 122 | 153 | |||||||||||||||||
Total | $ | 1,005 | $ | 741 | $ | 646 | ||||||||||||||
Investment in Equity Affiliates | ||||||||||||||||||||
Seeds and genomics | $ | 126 | $ | 91 | $ | 142 | ||||||||||||||
Agricultural productivity | — | — | — | |||||||||||||||||
Total | $ | 126 | $ | 91 | $ | 142 | ||||||||||||||
(1) | Represents net sales from continuing operations. | |||||||||||||||||||
-2 | EBIT is defined as earnings (loss) before interest and taxes; see the following table for reconciliation. Earnings (loss) is intended to mean net income (loss) attributable to Monsanto Company 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 of $22 million, $17 million and $10 million from discontinued operations for fiscal years 2014, 2013 and 2012, respectively. | |||||||||||||||||||
(4) | Equity affiliate loss (income) is included in Other expense, net in the Statements of Consolidated Operations. | |||||||||||||||||||
The reconciliation of EBIT to Net Income | ' | |||||||||||||||||||
A reconciliation of EBIT to net income for each period follows: | ||||||||||||||||||||
Year Ended Aug. 31, | ||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
EBIT(1) | $ | 3,952 | $ | 3,460 | $ | 3,047 | ||||||||||||||
Interest Expense — Net | 146 | 80 | 114 | |||||||||||||||||
Income Tax Provision(2) | 1,066 | 898 | 888 | |||||||||||||||||
Net Income Attributable to Monsanto Company | $ | 2,740 | $ | 2,482 | $ | 2,045 | ||||||||||||||
(1) | Includes the income from operations of discontinued businesses and pre-tax noncontrolling interest. | |||||||||||||||||||
(2) | Includes the income tax provision from continuing operations, the income tax benefit on noncontrolling interest and the income tax provision on discontinued operations. | |||||||||||||||||||
Net Sales And Long Lived Assets by World Area | ' | |||||||||||||||||||
Net sales and long-lived assets are attributed to the geographic areas of the relevant Monsanto legal entities. For example, a sale from the United States to a customer in Brazil is reported as a U.S. export sale. | ||||||||||||||||||||
Net Sales to Unaffiliated Customers | Long-Lived Assets | |||||||||||||||||||
Year Ended Aug. 31, | As of Aug. 31, | |||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | 2014 | 2013 | |||||||||||||||
United States | $ | 8,625 | $ | 8,044 | $ | 7,367 | $ | 8,174 | $ | 6,881 | ||||||||||
Europe-Africa | 2,192 | 2,042 | 1,716 | 1,460 | 1,345 | |||||||||||||||
Brazil | 1,778 | 1,547 | 1,588 | 871 | 696 | |||||||||||||||
Argentina | 1,092 | 1,121 | 873 | 396 | 347 | |||||||||||||||
Asia-Pacific | 837 | 806 | 837 | 315 | 270 | |||||||||||||||
Canada | 636 | 615 | 541 | 124 | 100 | |||||||||||||||
Mexico | 503 | 466 | 385 | 135 | 118 | |||||||||||||||
Other | 192 | 220 | 197 | 381 | 376 | |||||||||||||||
Total | $ | 15,855 | $ | 14,861 | $ | 13,504 | $ | 11,856 | $ | 10,133 | ||||||||||
QUARTERLY_DATA_UNAUDITED_Table
QUARTERLY DATA (UNAUDITED) (Tables) | 12 Months Ended | |||||||||||||||
Aug. 31, 2014 | ||||||||||||||||
Quarterly Financial Data [Abstract] | ' | |||||||||||||||
Quarterly Data | ' | |||||||||||||||
The following tables also include financial data for the fiscal year quarters in 2014 and 2013 which have been adjusted for discontinued operations. | ||||||||||||||||
(Dollars in millions, except per share amounts) | ||||||||||||||||
1st | 2nd | 3rd | 4th | |||||||||||||
2014 | Quarter | Quarter | Quarter | Quarter | Total | |||||||||||
Net Sales | $ | 3,143 | $ | 5,832 | $ | 4,250 | $ | 2,630 | $ | 15,855 | ||||||
Gross Profit | 1,563 | 3,447 | 2,331 | 1,233 | 8,574 | |||||||||||
Income (Loss) from Continuing Operations Attributable to Monsanto Company | 359 | 1,666 | 858 | (156 | ) | 2,727 | ||||||||||
Income on Discontinued Operations | 9 | 4 | — | — | 13 | |||||||||||
Net Income (Loss) | 373 | 1,672 | 880 | (163 | ) | 2,762 | ||||||||||
Net Income (Loss) Attributable to Monsanto Company | $ | 368 | $ | 1,670 | $ | 858 | $ | (156 | ) | $ | 2,740 | |||||
Basic Earnings (Loss) per Share Attributable to Monsanto Company:(1) | ||||||||||||||||
Income (Loss) from continuing operations | $ | 0.68 | $ | 3.18 | $ | 1.64 | $ | (0.31 | ) | $ | 5.25 | |||||
Income on discontinued operations | 0.02 | — | — | — | 0.03 | |||||||||||
Net Income (Loss) Attributable to Monsanto Company | $ | 0.7 | $ | 3.18 | $ | 1.64 | $ | (0.31 | ) | $ | 5.28 | |||||
Diluted Earnings (Loss) per Share Attributable to Monsanto Company:(1) | ||||||||||||||||
Income (Loss) from continuing operations | $ | 0.67 | $ | 3.15 | $ | 1.62 | $ | (0.31 | ) | $ | 5.19 | |||||
Income on discontinued operations | 0.02 | — | — | — | 0.03 | |||||||||||
Net Income (Loss) Attributable to Monsanto Company | $ | 0.69 | $ | 3.15 | $ | 1.62 | $ | (0.31 | ) | $ | 5.22 | |||||
2013 | ||||||||||||||||
Net Sales | $ | 2,939 | $ | 5,472 | $ | 4,248 | $ | 2,202 | $ | 14,861 | ||||||
Gross Profit | 1,397 | 3,070 | 2,262 | 924 | 7,653 | |||||||||||
Income (Loss) from Continuing Operations Attributable to Monsanto Company | 332 | 1,479 | 909 | (249 | ) | 2,471 | ||||||||||
Income on Discontinued Operations | 7 | 4 | — | — | 11 | |||||||||||
Net Income (Loss) | 349 | 1,483 | 932 | (239 | ) | 2,525 | ||||||||||
Net Income (Loss) Attributable to Monsanto Company | $ | 339 | $ | 1,483 | $ | 909 | $ | (249 | ) | $ | 2,482 | |||||
Basic Earnings (Loss) per Share Attributable to Monsanto Company:(1) | ||||||||||||||||
Income (Loss) from continuing operations | $ | 0.62 | $ | 2.77 | $ | 1.7 | $ | (0.47 | ) | $ | 4.63 | |||||
Income on discontinued operations | 0.01 | 0.01 | — | — | 0.02 | |||||||||||
Net Income (Loss) Attributable to Monsanto Company | $ | 0.63 | $ | 2.78 | $ | 1.7 | $ | (0.47 | ) | $ | 4.65 | |||||
Diluted Earnings (Loss) per Share Attributable to Monsanto Company:(1) | ||||||||||||||||
Income (Loss) from continuing operations | $ | 0.62 | $ | 2.73 | $ | 1.68 | $ | (0.47 | ) | $ | 4.58 | |||||
Income on discontinued operations | 0.01 | 0.01 | — | — | 0.02 | |||||||||||
Net Income (Loss) Attributable to Monsanto Company | $ | 0.63 | $ | 2.74 | $ | 1.68 | $ | (0.47 | ) | $ | 4.6 | |||||
(1) | Because Monsanto reported a loss from continuing operations in the fourth quarter 2014 and 2013, generally accepted accounting principles require diluted loss per share to be calculated using weighted-average common shares outstanding, excluding common stock equivalents. As a result, the quarterly earnings (loss) per share may not total to the full-year amount. |
BACKGROUND_AND_BASIS_OF_PRESEN1
BACKGROUND AND BASIS OF PRESENTATION Narrative (Details) (USD $) | Aug. 31, 2014 |
In Millions, unless otherwise specified | |
Other Liabilities Disclosure [Abstract] | ' |
Financial Instruments Subject to Mandatory Redemption, Redeemable within One year | $136 |
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Accounting Policies [Abstract] | ' | ' | ' |
Advertising Expense | $90 | $95 | $87 |
Percentage Of LIFO Inventory | 9.00% | 9.00% | ' |
SIGNIFICANT_ACCOUNTING_POLICIE3
SIGNIFICANT ACCOUNTING POLICIES (Other Intangible Assets - Narrative) (Details) | 12 Months Ended |
Aug. 31, 2014 | |
Minimum [Member] | Acquired Germplasm [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Useful Life (Years) | '5 years |
Minimum [Member] | Acquired Intellectual Property [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Useful Life (Years) | '1 year |
Minimum [Member] | Trademarks [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Useful Life (Years) | '1 year |
Minimum [Member] | Customer Relationships [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Useful Life (Years) | '1 year |
Maximum [Member] | Acquired Germplasm [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Useful Life (Years) | '30 years |
Maximum [Member] | Acquired Intellectual Property [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Useful Life (Years) | '18 years |
Maximum [Member] | Trademarks [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Useful Life (Years) | '30 years |
Maximum [Member] | Customer Relationships [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Useful Life (Years) | '20 years |
SIGNIFICANT_ACCOUNTING_POLICIE4
SIGNIFICANT ACCOUNTING POLICIES (Property, Plant and Equipment - Narrative) (Details) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 |
In Millions, unless otherwise specified | Buildings [Member] | Machinery and Equipment [Member] | Computer Software [Member] | ||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Useful life | ' | ' | '25 years | '10 years | '5 years |
Asset Retirement Obligation | $59 | $86 | ' | ' | ' |
BUSINESS_COMBINATIONS_Narrativ
BUSINESS COMBINATIONS (Narrative) (Details) (USD $) | 12 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2014 | Nov. 30, 2013 | Aug. 31, 2014 | Aug. 30, 2014 | Nov. 29, 2013 | Aug. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jan. 31, 2013 | Jun. 30, 2012 | Sep. 30, 2011 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Twenty Fourteen Acquisitions [Member] | The Climate Corporation [Member] | The Climate Corporation [Member] | The Climate Corporation [Member] | The Climate Corporation [Member] | Diekmann GMBH & Co. KG [Member] | GrassRoots Biotechnology, Inc. [Member] | Rosetta Green Ltd. [Member] | Agradis, Inc. [Member] | Precision Planting [Member] | Beeologics [Member] | Cost of Goods Sold [Member] | Cost of Goods Sold [Member] | Cost of Goods Sold [Member] | Research and Development Expense [Member] | Research and Development Expense [Member] | Research and Development Expense [Member] | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | ' | ' | ' | $67 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transaction cost | ' | ' | ' | ' | ' | 18 | 2 | ' | 1 | 1 | 1 | 1 | 1 | 1 | ' | ' | ' | ' | ' | ' |
Payments to Acquire Businesses, Gross | ' | ' | ' | ' | ' | ' | ' | ' | 30 | ' | 35 | 85 | ' | ' | ' | ' | ' | ' | ' | ' |
Acquiree percentage | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | 100.00% | ' | ' | 100.00% | 100.00% | ' | ' | ' | ' | ' | ' |
Liabilities assumed | ' | ' | ' | 69 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | ' | ' | ' | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | 4,319 | 3,520 | 3,435 | 783 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | ' | ' | ' | 142 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | ' | ' | ' | 1,001 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | ' | ' | ' | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | ' | ' | ' | 59 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | ' | ' | ' | 932 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash Acquired | ' | ' | ' | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Collaborative Arrangement, Income Statement Classification | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '22 | '0 | '0 | '32 | '48 | '48 |
Business Acquisition Fair Value | ' | ' | ' | ' | ' | ' | ' | 932 | 30 | 15 | 35 | 85 | 255 | 113 | ' | ' | ' | ' | ' | ' |
Payments to Acquire Businesses, Net of Cash Acquired | $922 | $165 | $322 | $917 | $917 | ' | ' | ' | ' | $15 | ' | ' | $209 | $113 | ' | ' | ' | ' | ' | ' |
BUSINESS_COMBINATIONS_Schedule
BUSINESS COMBINATIONS (Schedule of estimated fair values of assets and liabilities) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Business Acquisition [Line Items] | ' | ' | ' |
Goodwill | $4,319 | $3,520 | $3,435 |
Cash paid, net of cash acquired | 922 | 165 | 322 |
Twenty Fourteen Acquisitions [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Current Assets | 67 | ' | ' |
Property, Plant and Equipment | 9 | ' | ' |
Goodwill | 783 | ' | ' |
Other Intangible Assets | 142 | ' | ' |
Total Assets Acquired | 1,001 | ' | ' |
Current Liabilities | 10 | ' | ' |
Other Liabilities | 59 | ' | ' |
Total Liabilities Assumed | 69 | ' | ' |
Net Assets Acquired | 932 | ' | ' |
Cash acquired | 15 | ' | ' |
Cash paid, net of cash acquired | $917 | ' | ' |
BUSINESS_COMBINATIONS_Details_
BUSINESS COMBINATIONS (Details of acquired identifiable intangible assets) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Aug. 31, 2014 |
Twenty Fourteen Acquisitions [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $142 |
Twenty Fourteen Acquisitions [Member] | Acquired Intellectual Property [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Weighted-Average Life (Years) | '10 years |
Useful Life (Years) | '10 years |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 138 |
Twenty Fourteen Acquisitions [Member] | Customer Relationships [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Weighted-Average Life (Years) | '1 year |
Useful Life (Years) | '1 year |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 4 |
Twenty Fourteen Acquisitions [Member] | Other Intangible Assets [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $142 |
Minimum [Member] | Acquired Germplasm [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Useful Life (Years) | '5 years |
Minimum [Member] | Customer Relationships [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Useful Life (Years) | '1 year |
Maximum [Member] | Acquired Germplasm [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Useful Life (Years) | '30 years |
Maximum [Member] | Customer Relationships [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Useful Life (Years) | '20 years |
RECEIVABLES_Details
RECEIVABLES (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |||
Receivables [Abstract] | ' | ' | ' | |||
Accounts Receivable, Gross, Noncurrent | $136 | $112 | ' | |||
Allowance for Doubtful Accounts Receivable, Current [Roll Forward] | ' | ' | ' | |||
Beginning Balance | 68 | 64 | 98 | |||
Additions - Charged to Expense | 44 | 32 | 14 | |||
Other | -40 | [1] | -28 | [1] | -48 | [1] |
Ending Balance | 72 | 68 | 64 | |||
Allowance for Doubtful Accounts Receivable, Long Term [Roll Forward] | ' | ' | ' | |||
Beginning Balance | 104 | 141 | 213 | |||
Incremental Provision | 11 | 7 | 3 | |||
Recoveries | -4 | -1 | -14 | |||
Write Offs | -15 | -47 | -54 | |||
Other | 29 | 4 | -7 | [2] | ||
Ending Balance | 125 | 104 | 141 | |||
Long term receivables [Abstract] | ' | ' | ' | |||
Long term contractual receivables, gross | $81 | $229 | ' | |||
[1] | Includes reclassifications to long-term, write-offs, recoveries and foreign currency translation adjustments. | |||||
[2] | Includes reclassifications from the allowance for current receivables and foreign currency translation adjustments. |
CUSTOMER_FINANCING_PROGRAMS_De
CUSTOMER FINANCING PROGRAMS (Details) | 12 Months Ended | 12 Months Ended | ||||||||||||||||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2014 | Aug. 31, 2014 | ||||||||
US agreement to sell trade receivables [Member] | US agreement to sell trade receivables [Member] | US agreement to sell trade receivables [Member] | European agreements to sell accounts receivables [Member] | European agreements to sell accounts receivables [Member] | European agreements to sell accounts receivables [Member] | Agreements with Lenders [Member] | Agreements with Lenders [Member] | Brazil Qspe [Member] | Brazil Qspe [Member] | |||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | BRL | |||||||||
Customer Financing Qualified Programs [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Outstanding balance | $436 | [1] | $348 | [1] | ' | $67 | [2] | $44 | [2] | ' | $71 | [3] | $45 | [3] | ' | ' | ||
Maximum future payout under recourse provisions | 21 | [1] | 19 | [1] | ' | 34 | [2] | 41 | [2] | ' | 51 | [3] | 32 | [3] | ' | ' | ||
Customer Financing Programs, Receivables Sold [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Gross Amount of Receivables Sold | 457 | [1] | 349 | [1] | 506 | [1] | 78 | [2] | 16 | [2] | 62 | [2] | ' | ' | ' | ' | ||
Additional Information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Maximum Amount Of Potential Sales Of Receivables | $500 | ' | ' | ' | ' | ' | ' | ' | $450 | 1,000 | ||||||||
[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) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 |
Senior Interest [Member] | ' | ' |
Revolving Financing Programs [Line Items] | ' | ' |
VIE, ownership percentage | 91.00% | 91.00% |
Monsanto Interest [Member] | ' | ' |
Revolving Financing Programs [Line Items] | ' | ' |
VIE, ownership percentage | 9.00% | 9.00% |
Minimum [Member] | Monsanto Interest [Member] | ' | ' |
Revolving Financing Programs [Line Items] | ' | ' |
VIE, ownership percentage | 9.00% | ' |
Brazil Revolving Financing Program [Member] | ' | ' |
Revolving Financing Programs [Line Items] | ' | ' |
Maximum loss exposure | 13 | 0 |
Biotechnology Company [Member] | ' | ' |
Revolving Financing Programs [Line Items] | ' | ' |
Maximum funding amount | 108 | ' |
Maximum loss exposure | 43 | 11 |
INVENTORY_Details
INVENTORY (Details) (USD $) | 12 Months Ended | |||||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | ||||
Inventory Disclosure [Abstract] | ' | ' | ' | |||
Effect Of LIFO Inventory Liquidation On Income | $0 | $0 | ' | |||
Components of Inventory (Details) | ' | ' | ' | |||
Finished Goods | 1,591,000,000 | 1,079,000,000 | ' | |||
Goods In Process | 1,721,000,000 | 1,619,000,000 | ' | |||
Raw Materials and Supplies | 445,000,000 | 418,000,000 | ' | |||
Inventory at FIFO Cost | 3,757,000,000 | 3,116,000,000 | ' | |||
Excess of FIFO over LIFO Cost | -160,000,000 | -169,000,000 | ' | |||
Total | 3,597,000,000 | 2,947,000,000 | ' | |||
Inventory Obsolescence [Roll Forward] | ' | ' | ' | |||
Beginning Balance | 408,000,000 | 361,000,000 | 338,000,000 | |||
Additions — charged to expense | 331,000,000 | 336,000,000 | 266,000,000 | |||
Deductions and other | -324,000,000 | [1] | -289,000,000 | [1] | -243,000,000 | [1] |
Ending Balance | $415,000,000 | $408,000,000 | $361,000,000 | |||
[1] | Deductions and other includes disposals and foreign currency translation adjustments. |
PROPERTY_PLANT_AND_EQUIPMENT_D
PROPERTY, PLANT AND EQUIPMENT (Details) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Total Property, Plant and Equipment | $10,357 | $9,491 |
Less: Accumulated Depreciation | 5,275 | 4,837 |
Property, Plant and Equipment, Net (variable interest entity restricted - 2014: $2 and 2013: $0) | 5,082 | 4,654 |
Gross assets acquired under capital leases | 42 | 38 |
Land and Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total Property, Plant and Equipment | 611 | 577 |
Buildings and Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total Property, Plant and Equipment | 2,122 | 1,979 |
Machinery and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total Property, Plant and Equipment | 5,676 | 5,357 |
Computer Software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total Property, Plant and Equipment | 779 | 705 |
Construction In Progress And Other [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total Property, Plant and Equipment | $1,169 | $873 |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS Schedule of net carrying amount of goodwill (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 |
Goodwill [Line Items] | ' | ' |
Accumulated Impairment | $2,000 | ' |
Goodwill [Roll Forward] | ' | ' |
Beginning Balance | 3,520 | 3,435 |
Acquisition activity (see Note 4) | 783 | 110 |
Effect of foreign currency translation adjustments | 16 | -25 |
Ending Balance | 4,319 | 3,520 |
Seeds And Genomics [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Beginning Balance | 3,461 | 3,378 |
Acquisition activity (see Note 4) | 783 | 110 |
Effect of foreign currency translation adjustments | 18 | -27 |
Ending Balance | 4,262 | 3,461 |
Agricultural Productivity [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Beginning Balance | 59 | 57 |
Acquisition activity (see Note 4) | 0 | 0 |
Effect of foreign currency translation adjustments | -2 | 2 |
Ending Balance | $57 | $59 |
GOODWILL_AND_OTHER_INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS Information of other intangible assets (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Finite-lived and Indefinite-lived Intangible Assets [Roll Forward] | ' | ' | ' |
Carrying Amount | $3,161 | $3,032 | ' |
Accumulated Amortization | -1,710 | -1,909 | ' |
Net | 1,451 | 1,123 | ' |
Total Other Intangible Assets, Carrying Amount | 3,264 | 3,135 | ' |
Total Other Intangible Assets, net | 1,554 | 1,226 | ' |
Amortization Expense | 136 | 111 | 124 |
In Process Research and Development [Member] | ' | ' | ' |
Finite-lived and Indefinite-lived Intangible Assets [Roll Forward] | ' | ' | ' |
In Process Research & Development, Indefinite Lives | 103 | 103 | ' |
Acquired Germplasm [Member] | ' | ' | ' |
Finite-lived and Indefinite-lived Intangible Assets [Roll Forward] | ' | ' | ' |
Carrying Amount | 1,116 | 1,113 | ' |
Accumulated Amortization | -751 | -717 | ' |
Net | 365 | 396 | ' |
Acquired Intellectual Property [Member] | ' | ' | ' |
Finite-lived and Indefinite-lived Intangible Assets [Roll Forward] | ' | ' | ' |
Carrying Amount | 1,160 | 1,095 | ' |
Accumulated Amortization | -507 | -791 | ' |
Net | 653 | 304 | ' |
Trademarks [Member] | ' | ' | ' |
Finite-lived and Indefinite-lived Intangible Assets [Roll Forward] | ' | ' | ' |
Carrying Amount | 366 | 341 | ' |
Accumulated Amortization | -142 | -131 | ' |
Net | 224 | 210 | ' |
Customer Relationships [Member] | ' | ' | ' |
Finite-lived and Indefinite-lived Intangible Assets [Roll Forward] | ' | ' | ' |
Carrying Amount | 338 | 306 | ' |
Accumulated Amortization | -204 | -179 | ' |
Net | 134 | 127 | ' |
Other Intangible Assets [Member] | ' | ' | ' |
Finite-lived and Indefinite-lived Intangible Assets [Roll Forward] | ' | ' | ' |
Carrying Amount | 181 | 177 | ' |
Accumulated Amortization | -106 | -91 | ' |
Net | $75 | $86 | ' |
GOODWILL_AND_OTHER_INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS Schedule of estimated amortization expense (Details) (USD $) | Aug. 31, 2014 |
In Millions, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
2015 | $157 |
2016 | 182 |
2017 | 171 |
2018 | 132 |
2019 | $133 |
INVESTMENTS_AND_EQUITY_AFFILIA1
INVESTMENTS AND EQUITY AFFILIATES Investments (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ' |
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities | $0 | $0 | $0 |
Short-term investments | 40 | 254 | ' |
Fair Value | 22 | 22 | ' |
Recorded cost | 91 | 67 | ' |
Cost-method Investments, Other than Temporary Impairment | $0 | $0 | $0 |
INVESTMENTS_AND_EQUITY_AFFILIA2
INVESTMENTS AND EQUITY AFFILIATES Equity Affiliates (Details) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
In Millions, unless otherwise specified | |||
Schedule Of Equity Method Investments [Line Items] | ' | ' | ' |
Carrying Value | $126 | $91 | $142 |
DEFERRED_REVENUE_Details
DEFERRED REVENUE (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | Nov. 30, 2008 |
Deferred Revenue Arrangement [Line Items] | ' | ' | ' | ' |
Deferred Revenue | $47 | $138 | ' | ' |
Receivable Balance | 92 | 237 | ' | ' |
Trade receivables, net (variable interest entities restricted - 2014: $39 and 2013: $0) | 2,014 | 1,715 | ' | ' |
Short-Term Deferred Revenue | 438 | 517 | ' | ' |
Pioneer Agreement [Member] | ' | ' | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' | ' | ' |
Deferred Revenue | ' | ' | ' | 635 |
Total Receivable Under Agreement | ' | ' | ' | 635 |
Cumulative Cash Receipts Under Agreement | 725 | ' | ' | ' |
Deferred Revenue, Length of Time | '8 years | ' | ' | ' |
Deferred Revenue, Revenue Recognized | 79 | 79 | 79 | ' |
Receivable Balance | 149 | 230 | ' | ' |
Trade receivables, net (variable interest entities restricted - 2014: $39 and 2013: $0) | 85 | 85 | ' | ' |
Total Deferred Revenue | 79 | 159 | ' | ' |
Short-Term Deferred Revenue | 79 | 79 | ' | ' |
Syngenta Agreement [Member] | ' | ' | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' | ' | ' |
Deferred Revenue | 11 | 34 | ' | ' |
Deferred Revenue, Length of Time | '9 years | ' | ' | ' |
Deferred Revenue, Revenue Recognized | 30 | 23 | 6 | ' |
Receivable Balance | 42 | 58 | ' | ' |
Trade receivables, net (variable interest entities restricted - 2014: $39 and 2013: $0) | 30 | 21 | ' | ' |
Short-Term Deferred Revenue | 11 | 24 | ' | ' |
Minimum Obligation Under Agreement | $81 | ' | ' | ' |
INCOME_TAXES_Components_of_inc
INCOME TAXES (Components of income from continuing operations) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
United States | $2,436 | $2,385 | $1,954 |
Outside United States | 1,391 | 1,044 | 1,034 |
Income from Continuing Operations Before Income Taxes | $3,827 | $3,429 | $2,988 |
INCOME_TAXES_Components_of_inc1
INCOME TAXES (Components of income tax provision) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Current: | ' | ' | ' |
U.S. federal | $648 | $432 | $301 |
U.S. state | 65 | 52 | 49 |
Outside United States | 410 | 305 | 310 |
Total Current | 1,123 | 789 | 660 |
Deferred: | ' | ' | ' |
U.S. federal | 41 | 159 | 252 |
U.S. state | -2 | 1 | 15 |
Outside United States | -84 | -34 | -26 |
Total Deferred | -45 | 126 | 241 |
Total | $1,078 | $915 | $901 |
INCOME_TAXES_Income_Tax_Reconc
INCOME TAXES (Income Tax Reconciliation) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ' | ' | ' |
U.S. Federal Statutory Rate | $1,339 | $1,200 | $1,046 |
U.S. Domestic Manufacturing Deduction | -75 | -68 | -67 |
U.S. R&D Tax Credit | -12 | -43 | -15 |
U.S. State Income Taxes | 45 | 43 | 42 |
Lower Taxes on Foreign Operations | -230 | -78 | -67 |
Valuation Allowances | 12 | 0 | 12 |
Adjustment for Unrecognized Tax Benefits | -8 | -110 | -59 |
Other | 7 | -29 | 9 |
Total | $1,078 | $915 | $901 |
INCOME_TAXES_Components_of_def
INCOME TAXES (Components of deferred tax assets and liabilities) (Details) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
In Millions, unless otherwise specified | ||
Components of Deferred Tax Assets [Abstract] | ' | ' |
Net Operating Loss and Other Carryforwards | $443 | $455 |
Employee Fringe Benefits | 259 | 335 |
Restructuring and Impairment Reserves | 135 | 130 |
Royalties | 129 | 95 |
Inventories | 106 | 137 |
Intangibles | 74 | 71 |
Allowance for Doubtful Accounts | 70 | 46 |
Environmental and Litigation Reserves | 69 | 99 |
Other | 350 | 239 |
Valuation Allowance | -63 | -47 |
Total Deferred Tax Assets | 1,572 | 1,560 |
Components of Deferred Tax Liabilities [Abstract] | ' | ' |
Property, Plant and Equipment | 585 | 571 |
Intangibles | 400 | 403 |
Other | 81 | 60 |
Total Deferred Tax Liabilities | 1,066 | 1,034 |
Net Deferred Tax Assets | $506 | $526 |
INCOME_TAXES_Narrative_Details
INCOME TAXES (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Income Tax Examination [Line Items] | ' | ' | ' |
Operating Loss Carryforwards | $1,000 | ' | ' |
Undistributed Foreign Earnings | 4,400 | ' | ' |
Unrecognized Tax Benefits | 152 | 167 | 288 |
Unrecognized Tax Benefits That Would Favorably Impact Effective Tax Rate | 102 | 116 | ' |
Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued | 38 | 37 | ' |
Unrecognized Tax Benefits Income Tax Penalties And Interest Expense | 4 | 10 | 1 |
Potential Decrease In Uncertain Tax Benefits | $50 | ' | ' |
INCOME_TAXES_Reconciliation_of
INCOME TAXES (Reconciliation of unrecognized tax benefits) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 |
Reconciliation of beginning and ending balance of unrecognized tax benefits [Abstract] | ' | ' |
Beginning Balance | $167 | $288 |
Increases for prior year tax positions | 13 | 14 |
Decreases for prior year tax positions | -16 | -118 |
Increases for current year tax positions | 5 | 14 |
Settlements | -1 | -4 |
Lapse of statute of limitations | -14 | -23 |
Foreign currency translation | -2 | -4 |
Ending Balance | $152 | $167 |
INCOME_TAXES_Years_subject_to_
INCOME TAXES (Years subject to examination) (Details) | 12 Months Ended |
Aug. 31, 2014 | |
US federal income tax [Member] | Minimum [Member] | ' |
Income Tax Examination [Line Items] | ' |
Year under Examination | '2011 |
US federal income tax [Member] | Maximum [Member] | ' |
Income Tax Examination [Line Items] | ' |
Year under Examination | '2014 |
U.S. state and local income taxes [Member] | Minimum [Member] | ' |
Income Tax Examination [Line Items] | ' |
Year under Examination | '2000 |
U.S. state and local income taxes [Member] | Maximum [Member] | ' |
Income Tax Examination [Line Items] | ' |
Year under Examination | '2014 |
Argentina [Member] | Minimum [Member] | ' |
Income Tax Examination [Line Items] | ' |
Year under Examination | '2001 |
Argentina [Member] | Maximum [Member] | ' |
Income Tax Examination [Line Items] | ' |
Year under Examination | '2014 |
Brazil [Member] | Minimum [Member] | ' |
Income Tax Examination [Line Items] | ' |
Year under Examination | '2002 |
Brazil [Member] | Maximum [Member] | ' |
Income Tax Examination [Line Items] | ' |
Year under Examination | '2014 |
DEBT_AND_OTHER_CREDIT_ARRANGEM2
DEBT AND OTHER CREDIT ARRANGEMENTS (Short-term Debt) (Details) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
Current Portion of Long-Term Debt | $12 | $11 |
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value, Amount, Current | 136 | 0 |
Notes Payable to Banks | 85 | 40 |
Total Short-Term Debt | $233 | $51 |
DEBT_AND_OTHER_CREDIT_ARRANGEM3
DEBT AND OTHER CREDIT ARRANGEMENTS (Long-term Debt) (Details) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2014 | Nov. 30, 2013 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2014 | Jul. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2014 | Jul. 31, 2014 | Aug. 31, 2014 | Jul. 31, 2014 | Aug. 31, 2014 | Jul. 31, 2014 | Aug. 31, 2014 | Jul. 31, 2014 | Aug. 31, 2014 | Jul. 31, 2014 | Aug. 31, 2014 | Jul. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2014 | Nov. 30, 2013 | Aug. 31, 2014 | Nov. 30, 2013 | ||||||||||||||||||||||||
In Millions, unless otherwise specified | Senior Notes due 2016 [Member] | Senior Notes due 2016 [Member] | Senior Notes Due November Twenty Eighteen [Member] | Senior Notes Due November Twenty Eighteen [Member] | Senior Notes Due 2022 [Member] | Senior Notes Due 2022 [Member] | Senior Notes Due 2025 [Member] | Senior Notes Due 2025 [Member] | Senior Notes Due Twenty Seventeen [Member] | Senior Notes Due Twenty Seventeen [Member] | Senior Notes Due April Twenty Eighteen [Member] | Senior Notes Due April Twenty Eighteen [Member] | Senior Notes Due Twenty Nineteen [Member] | Senior Notes Due Twenty Nineteen [Member] | Senior Notes Due Twenty Twenty One [Member] | Senior Notes Due Twenty Twenty One [Member] | Senior Notes Due Twenty Twenty Four [Member] | Senior Notes Due Twenty Twenty Four [Member] | Senior Notes Due Twenty Thirty Four [Member] | Senior Notes Due Twenty Thirty Four [Member] | Senior Notes Due Twenty Forty Four [Member] | Senior Notes Due Twenty Forty Four [Member] | Senior Notes Due Twenty Sixty Four [Member] | Senior Notes Due Twenty Sixty Four [Member] | Senior Notes Due 2035 [Member] | Senior Notes Due 2035 [Member] | Senior Notes Due 2038 [Member] | Senior Notes Due 2038 [Member] | Senior Notes Due 2042 [Member] | Senior Notes Due 2042 [Member] | Floating Rate Notes Due Twenty Sixteen [Member] | Floating Rate Notes Due Twenty Sixteen [Member] | Senior Notes Due Twenty Forty Three [Member] | Senior Notes Due Twenty Forty Three [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | $300 | ' | ' | ' | ' | ' | $500 | ' | ' | ' | $500 | ' | $500 | ' | $750 | ' | $500 | ' | $1,000 | ' | $750 | ' | ' | ' | ' | ' | ' | ' | $400 | ' | $300 | ||||||||||||||||||||||||
Short Term Debt [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||
Discounted Amount | ' | ' | 300 | [1] | 300 | [1] | 300 | [1] | ' | 250 | [1] | 250 | [1] | 285 | [1] | 282 | [1] | 500 | [1] | ' | 300 | [1] | 300 | [1] | 500 | [1] | ' | 499 | [1] | ' | 750 | [1] | ' | 497 | [1] | ' | 992 | [1] | ' | 743 | [1] | ' | 395 | [1] | 395 | [1] | 247 | [1] | 247 | [1] | 250 | [1] | 250 | [1] | 400 | [1] | ' | 300 | [1] | ' |
Other (including Capital Leases) | 20 | 37 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||
Total Long-Term Debt | 7,528 | 2,061 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||
Interest Rate | ' | ' | 2.75% | ' | 1.85% | 1.85% | 2.20% | ' | 5.50% | ' | 1.15% | 1.15% | 5.13% | ' | 2.13% | 2.13% | 2.75% | 2.75% | 3.38% | 3.38% | 4.20% | 4.20% | 4.40% | 4.40% | 4.70% | 4.70% | 5.50% | ' | 5.88% | ' | 3.60% | ' | ' | ' | 4.65% | 4.65% | ||||||||||||||||||||||||
Maturity Date | ' | ' | 15-Apr-16 | ' | 15-Nov-18 | ' | 15-Jul-22 | ' | 15-Aug-25 | ' | 30-Jun-17 | ' | 15-Apr-18 | ' | 15-Jul-19 | ' | 15-Jul-21 | ' | 15-Jul-24 | ' | 15-Jul-34 | ' | 15-Jul-44 | ' | 15-Jul-64 | ' | 30-Jul-35 | ' | 15-Apr-38 | ' | 15-Jul-42 | ' | 7-Nov-16 | ' | 15-Nov-43 | ' | ||||||||||||||||||||||||
Unamortized Premium | ' | ' | ' | ' | ' | ' | ' | ' | $30 | $32 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||
[1] | Amounts are net of unamortized discounts. For the 5.500% Senior Notes due 2025, amount is net of the unamortized premium of $30 million and $32 million as of Aug. 31, 2014, and Aug. 31, 2013, respectively. |
DEBT_AND_OTHER_CREDIT_ARRANGEM4
DEBT AND OTHER CREDIT ARRANGEMENTS (Narrative) (Details) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2014 | Nov. 30, 2013 | Aug. 31, 2014 | Sep. 30, 2014 | |||
In Millions, unless otherwise specified | Senior Notes Due November Twenty Eighteen [Member] | Senior Notes Due November Twenty Eighteen [Member] | Credit Facility Agreement 2011 [Member] | Subsequent Event [Member] | |||||
Credit Facility Agreement 2011 [Member] | |||||||||
Schedule of Debt [Line Items] | ' | ' | ' | ' | ' | ' | |||
Senior Notes, Noncurrent | ' | ' | $300 | [1] | ' | ' | ' | ||
Debt Instrument, Face Amount | ' | ' | ' | 300 | 2,000 | 2,500 | |||
Short-term Debt, Fair Value | 233 | 51 | [2] | ' | ' | ' | ' | ||
Weighted average interest rate | 9.00% | 7.00% | ' | ' | ' | ' | |||
Long-term Debt, Fair Value | $7,928 | [3] | $2,231 | [2] | ' | ' | ' | ' | |
Interest Rate | ' | ' | 1.85% | 1.85% | ' | ' | |||
Debt Instrument, Maturity Date | ' | ' | 15-Nov-18 | ' | ' | ' | |||
[1] | Amounts are net of unamortized discounts. For the 5.500% Senior Notes due 2025, amount is net of the unamortized premium of $30 million and $32 million as of Aug. 31, 2014, and Aug. 31, 2013, respectively. | ||||||||
[2] | 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. | ||||||||
[3] | 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. |
DEBT_AND_OTHER_CREDIT_ARRANGEM5
DEBT AND OTHER CREDIT ARRANGEMENTS (Interest expense) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Interest Expense [Abstract] | ' | ' | ' |
Interest Cost Incurred | $275 | $195 | $212 |
Less: Capitalized on Construction | 27 | 23 | 21 |
Interest Expense | $248 | $172 | $191 |
FAIR_VALUE_MEASUREMENTS_Fair_V
FAIR VALUE MEASUREMENTS (Fair Value Hierarchy Levels) (Details) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Cash equivalents | $1,664 | $2,865 | ||
Short-term investments | 40 | 254 | ||
Available-for-sale Securities, Equity Securities | 22 | 22 | ||
Foreign currency | 11 | 5 | ||
Commodity contracts | 36 | 19 | ||
Total Assets at Fair Value | 1,773 | 3,165 | ||
Contingent consideration | ' | 40 | ||
Foreign currency | 19 | 8 | ||
Commodity contracts | 91 | 85 | ||
Financial Liabilities Fair Value Disclosure | ' | 133 | ||
Short-term debt instruments | 233 | 51 | [1] | |
Long-term debt instruments | 7,928 | [2] | 2,231 | [1] |
Liabilities, Fair Value Disclosed Not Recorded, Recurring | ' | 2,282 | ||
Liabilities, Fair Value Disclosure, Recurring | 8,271 | 2,415 | ||
Level 1 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Cash equivalents | 1,664 | 2,865 | ||
Short-term investments | 40 | 254 | ||
Available-for-sale Securities, Equity Securities | 22 | 22 | ||
Foreign currency | 0 | 0 | ||
Commodity contracts | 20 | 13 | ||
Total Assets at Fair Value | 1,746 | 3,154 | ||
Contingent consideration | ' | 0 | ||
Foreign currency | 0 | 0 | ||
Commodity contracts | 76 | 73 | ||
Financial Liabilities Fair Value Disclosure | ' | 73 | ||
Short-term debt instruments | 0 | 0 | [1] | |
Long-term debt instruments | 0 | [2] | 0 | [1] |
Liabilities, Fair Value Disclosed Not Recorded, Recurring | ' | 0 | ||
Liabilities, Fair Value Disclosure, Recurring | 76 | 73 | ||
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 | ||
Available-for-sale Securities, Equity Securities | 0 | 0 | ||
Foreign currency | 11 | 5 | ||
Commodity contracts | 16 | 6 | ||
Total Assets at Fair Value | 27 | 11 | ||
Contingent consideration | ' | 0 | ||
Foreign currency | 19 | 8 | ||
Commodity contracts | 15 | 12 | ||
Financial Liabilities Fair Value Disclosure | ' | 20 | ||
Short-term debt instruments | 97 | 51 | [1] | |
Long-term debt instruments | 7,928 | [2] | 2,231 | [1] |
Liabilities, Fair Value Disclosed Not Recorded, Recurring | ' | 2,282 | ||
Liabilities, Fair Value Disclosure, Recurring | 8,059 | 2,302 | ||
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 | ||
Available-for-sale Securities, Equity Securities | 0 | 0 | ||
Foreign currency | 0 | 0 | ||
Commodity contracts | 0 | 0 | ||
Total Assets at Fair Value | 0 | 0 | ||
Contingent consideration | ' | 40 | ||
Foreign currency | 0 | 0 | ||
Commodity contracts | 0 | 0 | ||
Financial Liabilities Fair Value Disclosure | ' | 40 | ||
Short-term debt instruments | 136 | 0 | [1] | |
Long-term debt instruments | 0 | [2] | 0 | [1] |
Liabilities, Fair Value Disclosed Not Recorded, Recurring | ' | 0 | ||
Liabilities, Fair Value Disclosure, Recurring | $136 | $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. | |||
[2] | 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 $) | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Aug. 31, 2014 |
Fair Value Disclosures [Abstract] | ' |
Mandatorily Redeemable Shares Outstanding | 300,000 |
Mandatorily Redeemable Shares, Par Value | $447 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Period Increase (Decrease) | $134 |
Beginning Balance | 40 |
Effect of foreign currency translation adjustments | 14 |
Ending Balance | 136 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | -54 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Other Comprehensive Income (Loss) | $2 |
FAIR_VALUE_MEASUREMENTS_Narrat
FAIR VALUE MEASUREMENTS (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Liability Non-Recurring Charge | 0 | 0 | 0 |
Asset impairment charges | ' | $0 | ' |
Property, Plant and Equipment, Net | 5,082 | 4,654 | ' |
Other Intangible Assets, Net | 1,554 | 1,226 | ' |
Fair Value Transfers, Amount | 0 | 0 | ' |
Property, Plant and Equipment [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Asset impairment charges | 23 | ' | ' |
Property, Plant and Equipment [Member] | Cost of Goods Sold [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Asset impairment charges | 11 | ' | ' |
Property, Plant and Equipment [Member] | Research and Development Expense [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Asset impairment charges | 8 | ' | ' |
Property, Plant and Equipment [Member] | Selling, General and Administrative Expenses [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Asset impairment charges | 5 | ' | ' |
Other Intangible Assets [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Asset impairment charges | 20 | ' | 80 |
Other Intangible Assets [Member] | Cost of Goods Sold [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Asset impairment charges | 19 | ' | 6 |
Other Intangible Assets [Member] | Research and Development Expense [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Asset impairment charges | 1 | ' | 63 |
Other Intangible Assets [Member] | Selling, General and Administrative Expenses [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Asset impairment charges | ' | ' | 11 |
Estimate of Fair Value Measurement [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Net | 4 | ' | ' |
Other Intangible Assets, Net | 20 | ' | 15 |
Impairment Of Asset [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Net | 27 | ' | ' |
Other Intangible Assets, Net | $40 | ' | 95 |
FINANCIAL_INSTRUMENTS_Narrativ
FINANCIAL INSTRUMENTS Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | ($77) | ' | ' |
Gain (Loss) on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net | ' | 0 | ' |
Loss on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring | 2 | ' | 2 |
Description of Discontinuation of Fair Value Hedge | '0 | '0 | '0 |
Fair Value, Concentration of Risk, Accounts Receivable | 0 | 0 | ' |
Foreign Exchange Contract [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Maximum Length of Time Hedged in Cash Flow Hedge | '18 months | ' | ' |
Gain (Loss) on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net | ' | 0 | 0 |
Loss on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring | 2 | ' | ' |
Commodity [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Maximum Length of Time Hedged in Cash Flow Hedge | '39 months | ' | ' |
Commodity Contract [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Gain (Loss) on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net | 0 | 0 | ' |
Loss on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring | ' | ' | 2 |
ISDA Contracts [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Derivative Net Liability Position Aggregate Fair Value | $11 | $7 | ' |
FINANCIAL_INSTRUMENTS_Notional
FINANCIAL INSTRUMENTS Notional Amounts of Derivative Instruments Outstanding (Details) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
In Millions, unless otherwise specified | ||
Designated as Hedging Instrument [Member] | ' | ' |
Notional Amount of Derivatives, [Abstract] | ' | ' |
Total Derivatives | $1,211 | $1,133 |
Not Designated as Hedging Instrument [Member] | ' | ' |
Notional Amount of Derivatives, [Abstract] | ' | ' |
Total Derivatives | 2,486 | 1,405 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | ' | ' |
Notional Amount of Derivatives, [Abstract] | ' | ' |
Total Derivatives | 585 | 261 |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | ' | ' |
Notional Amount of Derivatives, [Abstract] | ' | ' |
Total Derivatives | 2,054 | 1,188 |
Commodity Contract [Member] | Designated as Hedging Instrument [Member] | ' | ' |
Notional Amount of Derivatives, [Abstract] | ' | ' |
Total Derivatives | 626 | 872 |
Commodity Contract [Member] | Not Designated as Hedging Instrument [Member] | ' | ' |
Notional Amount of Derivatives, [Abstract] | ' | ' |
Total Derivatives | 272 | 217 |
Interest Rate Contracts [Member] | Not Designated as Hedging Instrument [Member] | ' | ' |
Notional Amount of Derivatives, [Abstract] | ' | ' |
Total Derivatives | $160 | $0 |
FINANCIAL_INSTRUMENTS_Fair_Val
FINANCIAL INSTRUMENTS Fair Value of Derivatives Outstanding (Details) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Fair Value, Concentration of Risk, Accounts Receivable | $0 | $0 | ||
Derivative Asset, Fair Value, Gross Asset | 47 | 24 | ||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | -87 | -80 | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral | -40 | -56 | ||
Derivative Asset, Fair Value of Collateral | 82 | 66 | ||
Derivative Asset | 42 | 10 | ||
Derivative Liability, Fair Value, Gross Liability | 110 | 93 | ||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | -87 | -80 | ||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 23 | 13 | ||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||
Derivative Liability | 23 | 13 | ||
Trade receivables, net (variable interest entities restricted - 2014: $39 and 2013: $0) | 2,014 | 1,715 | ||
Miscellaneous receivables | 817 | 748 | ||
Other current assets | 205 | 166 | ||
Other Assets, Noncurrent | 809 | 496 | ||
Miscellaneous short-term accruals | 962 | 812 | ||
Other Liabilities, Noncurrent | 342 | 382 | ||
Miscellaneous receivables [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 22 | 9 | ||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | 0 | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 22 | 9 | ||
Derivative Asset, Fair Value of Collateral | 0 | 0 | ||
Derivative Asset | 22 | 9 | ||
Non-derivative Balances | 795 | 739 | ||
Trade Accounts Receivable [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 1 | ||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | -10 | -6 | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral | -10 | -5 | ||
Derivative Asset, Fair Value of Collateral | 10 | 5 | ||
Derivative Asset | 0 | 0 | ||
Derivative Liability, Fair Value, Gross Liability | 10 | 6 | ||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | -10 | -6 | ||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 | ||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||
Derivative Liability | 0 | 0 | ||
Non-derivative Balances | 2,014 | 1,715 | ||
Other current assets [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 23 | 14 | ||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | -58 | -65 | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral | -35 | -51 | ||
Derivative Asset, Fair Value of Collateral | 53 | 52 | ||
Derivative Asset | 18 | 1 | ||
Derivative Liability, Fair Value, Gross Liability | 58 | 65 | ||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | -58 | -65 | ||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 | ||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||
Derivative Liability | 0 | 0 | ||
Non-derivative Balances | 187 | 165 | ||
Other Assets [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 2 | 0 | ||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | -19 | -9 | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral | -17 | -9 | ||
Derivative Asset, Fair Value of Collateral | 19 | 9 | ||
Derivative Asset | 2 | 0 | ||
Derivative Liability, Fair Value, Gross Liability | 19 | 9 | ||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | -19 | -9 | ||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 | ||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||
Derivative Liability | 0 | 0 | ||
Non-derivative Balances | 807 | 496 | ||
Other Current Liabilities [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | 22 | 12 | ||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | ||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 22 | 12 | ||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||
Derivative Liability | 22 | 12 | ||
Non-derivative Balances | -940 | -800 | ||
Other Noncurrent Liabilities [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | 1 | 1 | ||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | ||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 1 | 1 | ||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||
Derivative Liability | 1 | 1 | ||
Non-derivative Balances | -341 | -381 | ||
Foreign Exchange Contract [Member] | Miscellaneous receivables [Member] | Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 5 | 3 | ||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | 0 | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 5 | 3 | ||
Derivative Asset, Fair Value of Collateral | 0 | 0 | ||
Derivative Asset | 5 | 3 | ||
Foreign Exchange Contract [Member] | Miscellaneous receivables [Member] | Not Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 4 | 2 | ||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | 0 | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 4 | 2 | ||
Derivative Asset, Fair Value of Collateral | 0 | 0 | ||
Derivative Asset | 4 | 2 | ||
Foreign Exchange Contract [Member] | Other Assets [Member] | Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 2 | ' | ||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | ' | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 2 | ' | ||
Derivative Asset, Fair Value of Collateral | 0 | ' | ||
Derivative Asset | 2 | ' | ||
Foreign Exchange Contract [Member] | Other Current Liabilities [Member] | Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | 6 | 1 | ||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | ||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 6 | 1 | ||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||
Derivative Liability | 6 | 1 | ||
Foreign Exchange Contract [Member] | Other Current Liabilities [Member] | Not Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | 13 | 7 | ||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | ||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 13 | 7 | ||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||
Derivative Liability | 13 | 7 | ||
Commodity Contract [Member] | Miscellaneous receivables [Member] | Not Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 13 | 4 | ||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | 0 | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 13 | 4 | ||
Derivative Asset, Fair Value of Collateral | 0 | 0 | ||
Derivative Asset | 13 | 4 | ||
Commodity Contract [Member] | Trade Accounts Receivable [Member] | Not Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 0 | [1] | 1 | [1] |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | -10 | [1] | -6 | [1] |
Derivative Asset, Fair Value, Amount Offset Against Collateral | -10 | [1] | -5 | [1] |
Derivative Asset, Fair Value of Collateral | 10 | [1] | 5 | [1] |
Derivative Asset | 0 | [1] | 0 | [1] |
Derivative Liability, Fair Value, Gross Liability | 10 | [1] | 6 | [1] |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | -10 | [1] | -6 | [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 [Member] | Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 4 | [1] | 9 | [1] |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | -57 | [1] | -61 | [1] |
Derivative Asset, Fair Value, Amount Offset Against Collateral | -53 | [1] | -52 | [1] |
Derivative Asset, Fair Value of Collateral | 53 | [1] | 52 | [1] |
Derivative Asset | 0 | [1] | 0 | [1] |
Derivative Liability, Fair Value, Gross Liability | 57 | [1] | 61 | [1] |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | -57 | [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 [Member] | Not Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 19 | [1] | 5 | [1] |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | -1 | [1] | -4 | [1] |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 18 | [1] | 1 | [1] |
Derivative Asset, Fair Value of Collateral | 0 | [1] | 0 | [1] |
Derivative Asset | 18 | [1] | 1 | [1] |
Derivative Liability, Fair Value, Gross Liability | 1 | [1] | 4 | [1] |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | -1 | [1] | -4 | [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 Assets [Member] | Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 0 | [1] | 0 | [1] |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | -19 | [1] | -9 | [1] |
Derivative Asset, Fair Value, Amount Offset Against Collateral | -19 | [1] | -9 | [1] |
Derivative Asset, Fair Value of Collateral | 19 | [1] | 9 | [1] |
Derivative Asset | 0 | [1] | 0 | [1] |
Derivative Liability, Fair Value, Gross Liability | 19 | [1] | 9 | [1] |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | -19 | [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 Liabilities [Member] | Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | 3 | 4 | ||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | ||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 3 | 4 | ||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||
Derivative Liability | 3 | 4 | ||
Commodity Contract [Member] | Other Noncurrent Liabilities [Member] | Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | 1 | 1 | ||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | ||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 1 | 1 | ||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||
Derivative Liability | $1 | $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_Gain_Los
FINANCIAL INSTRUMENTS Gain (Loss) from Derivatives (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Loss on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring | $2 | ' | $2 | |||
Gain (Loss) on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net | ' | 0 | ' | |||
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | 0 | 0 | 0 | |||
Loss on Fair Value Hedge Ineffectiveness | 1 | 1 | 3 | |||
Foreign Currency Transaction Gain (Loss), Realized | -96 | -129 | 5 | |||
Designated as Hedging Instrument [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | -111 | [1] | -123 | [1] | 6 | [1] |
Amount of Gain (Loss) Recognized in Income | -27 | [2] | 105 | [2] | 33 | [2] |
Not Designated as Hedging Instrument [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | -111 | [1] | -123 | [1] | 6 | [1] |
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 24 | 30 | -34 | |||
Amount of Gain (Loss) Recognized in Income | -3 | 135 | -1 | |||
Foreign Exchange Contract [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Loss on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring | 2 | ' | ' | |||
Gain (Loss) on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net | ' | 0 | 0 | |||
Foreign Exchange Contract [Member] | Other Expense [Member] | Not Designated as Hedging Instrument [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | -1 | [3] | 41 | [3] | -21 | [3] |
Interest Rate Contracts [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Loss on Cash Flow Hedge Ineffectiveness | 1 | 0 | 1 | |||
Commodity Contract [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Loss on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring | ' | ' | 2 | |||
Gain (Loss) on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net | 0 | 0 | ' | |||
Loss on Cash Flow Hedge Ineffectiveness | 2 | 4 | ' | |||
Gain on Cash Flow Hedge Ineffectiveness | ' | ' | 1 | |||
Commodity Contract [Member] | Cost of Goods Sold [Member] | Not Designated as Hedging Instrument [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 21 | -2 | -19 | |||
Commodity Contract [Member] | Sales [Member] | Not Designated as Hedging Instrument [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 4 | -9 | 6 | |||
Fair Value Hedging [Member] | Commodity Contract [Member] | Cost of Goods Sold [Member] | Designated as Hedging Instrument [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | -1 | [4] | 0 | [4] | -29 | [4] |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | Cost of Goods Sold [Member] | Designated as Hedging Instrument [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | 1 | [1] | -5 | [1] | 13 | [1] |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | -3 | [2] | 4 | [2] | 6 | [2] |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | Sales [Member] | Designated as Hedging Instrument [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | -4 | [1] | 5 | [1] | 2 | [1] |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 3 | [2],[5] | 0 | [2],[5] | -4 | [2],[5] |
Cash Flow Hedging [Member] | Interest Rate Contracts [Member] | Interest Expense [Member] | Designated as Hedging Instrument [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | -2 | [1] | 0 | [1] | -73 | [1] |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | -12 | [2],[6] | -12 | [2],[6] | -9 | [2],[6] |
Cash Flow Hedging [Member] | Commodity Contract [Member] | Cost of Goods Sold [Member] | Designated as Hedging Instrument [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | -106 | [1] | -123 | [1] | 64 | [1] |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | ($14) | [2],[7] | $113 | [2],[7] | $69 | [2],[7] |
[1] | Accumulated Other Comprehensive Loss (AOCL). | |||||
[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 AOCL into income during the period. | |||||
[3] | Gain or loss on foreign exchange contracts not designated as hedges was offset by a foreign currency transaction loss of $96 million, a loss of $129 million and a gain of $5 million during fiscal years 2014, 2013 and 2012, respectively. | |||||
[4] | Loss on fair value hedges includes a loss of $1 million, loss of less than $1 million and $3 million from ineffectiveness for fiscal year 2014, 2013 and 2012, respectively | |||||
[5] | Gain on foreign exchange cash flow hedges includes a loss from discontinued hedges of $2 million for fiscal year 2014. There were no hedges discontinued in fiscal years 2013 or 2012. | |||||
[6] | Loss on interest rate contract cash flow hedges includes a loss of less than $1 million and $1 million from ineffectiveness for fiscal years 2014 and 2012. There was no ineffectiveness on interest rate contract cash flow hedges during fiscal year 2013. No amounts were excluded from the assessment of hedge effectiveness during fiscal years 2014, 2013 or 2012. | |||||
[7] | Gain or loss on commodity cash flow hedges includes a loss of $2 million, a loss of $4 million and a gain of less than $1 million from ineffectiveness for fiscal years 2014, 2013 and 2012, respectively. Additionally, the gain on commodity cash flow hedges includes a loss from discontinued hedges of $2 million for fiscal year 2012. There were no hedges discontinued in fiscal years 2014 or 2013. |
POSTRETIREMENT_BENEFITS_PENSIO2
POSTRETIREMENT BENEFITS - PENSIONS (Narrative) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
2015 Pension Expense Decrease | '25 | ' | ' | ' |
Defined Benefit Plan, Net Periodic Benefit Cost | ' | $97 | $96 | $93 |
Maximum Days Required to Notify Interest in Pooled Funds | ' | '10 | ' | ' |
Multiemployer Plan, Period Contributions | ' | 6 | 6 | 6 |
Total [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | ' | 2,488 | 2,143 | 2,105 |
Defined Benefit Plan, Net Periodic Benefit Cost | ' | 97 | 96 | 93 |
Expected long-term return on assets | ' | 7.50% | 7.50% | 7.50% |
U.S. [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | ' | 2,298 | 1,977 | 1,945 |
Defined Benefit Plan, Net Periodic Benefit Cost | ' | 78 | 79 | 79 |
Accumulated benefit obligation | ' | 2,100 | 2,000 | ' |
Expected long-term return on assets | ' | 7.50% | 7.50% | 7.50% |
Fair Value Assets Measured On Recurring Basis | ' | 2,622 | 2,174 | ' |
Outside the U.S. [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | ' | 190 | 166 | 160 |
Defined Benefit Plan, Net Periodic Benefit Cost | ' | 19 | 17 | 14 |
Accumulated benefit obligation | ' | 213 | 198 | ' |
Expected long-term return on assets | ' | 6.12% | 6.65% | 7.08% |
Fair Value Assets Measured On Recurring Basis | ' | 190 | 166 | ' |
Maximum [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Market Capitalization | ' | 2,000 | ' | ' |
Minimum [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Market Capitalization | ' | $2,000 | ' | ' |
POSTRETIREMENT_BENEFITS_PENSIO3
POSTRETIREMENT BENEFITS - PENSIONS (Components of Net Periodic Benefit Cost) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service Cost for Benefits Earned during the Year | $73 | $78 | $62 |
Interest Cost on Benefit Obligation | 99 | 83 | 96 |
Assumed Return on Plan Assets | -145 | -147 | -134 |
Amortization of Unrecognized Net Loss | 66 | 79 | 66 |
Curtailment and Settlement Charge | 3 | 7 | 3 |
Other Adjustment | 1 | -4 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost | 97 | 96 | 93 |
U.S. [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service Cost for Benefits Earned during the Year | 61 | 68 | 55 |
Interest Cost on Benefit Obligation | 90 | 74 | 86 |
Assumed Return on Plan Assets | -135 | -137 | -124 |
Amortization of Unrecognized Net Loss | 62 | 74 | 62 |
Curtailment and Settlement Charge | 0 | 0 | 0 |
Other Adjustment | 0 | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost | 78 | 79 | 79 |
Outside the U.S. [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service Cost for Benefits Earned during the Year | 12 | 10 | 7 |
Interest Cost on Benefit Obligation | 9 | 9 | 10 |
Assumed Return on Plan Assets | -10 | -10 | -10 |
Amortization of Unrecognized Net Loss | 4 | 5 | 4 |
Curtailment and Settlement Charge | 3 | 7 | 3 |
Other Adjustment | 1 | -4 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost | 19 | 17 | 14 |
Pension Plan [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service Cost for Benefits Earned during the Year | 73 | 78 | ' |
Interest Cost on Benefit Obligation | 99 | 83 | ' |
Defined Benefit Plan, Net Periodic Benefit Cost | $97 | $96 | $93 |
POSTRETIREMENT_BENEFITS_PENSIO4
POSTRETIREMENT BENEFITS - PENSIONS (Changes Recognized in OCI Pension) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Aug. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ' |
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year | $56 |
Total [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Current Year Actuarial (Gain) Loss | -148 |
Recognition of Actuarial Loss | -69 |
Total Recognized in Accumulated Other Comprehensive Loss | -217 |
U.S. [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Current Year Actuarial (Gain) Loss | -152 |
Recognition of Actuarial Loss | -62 |
Total Recognized in Accumulated Other Comprehensive Loss | -214 |
Outside the U.S. [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Current Year Actuarial (Gain) Loss | 4 |
Recognition of Actuarial Loss | -7 |
Total Recognized in Accumulated Other Comprehensive Loss | ($3) |
POSTRETIREMENT_BENEFITS_PENSIO5
POSTRETIREMENT BENEFITS - PENSIONS (Assumptions Used to Determine Pension Costs) (Details) | 12 Months Ended | ||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |
U.S. [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount Rate | 4.44% | 3.44% | 4.59% |
Assumed Long-Term Rate of Return on Assets | 7.50% | 7.50% | 7.50% |
Annual Rates of Salary Increase (for plans that base benefits on final compensation level) | 4.00% | 4.00% | 4.00% |
Outside the U.S. [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount Rate | 3.62% | 3.89% | 5.24% |
Assumed Long-Term Rate of Return on Assets | 6.12% | 6.65% | 7.08% |
Annual Rates of Salary Increase (for plans that base benefits on final compensation level) | 3.95% | 3.89% | 3.82% |
POSTRETIREMENT_BENEFITS_PENSIO6
POSTRETIREMENT BENEFITS - PENSIONS (Schedule of Funded Status) (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | ||
Change in Benefit Obligation: | ' | ' | ' | ||
Service cost | $73 | $78 | $62 | ||
Interest cost | 99 | 83 | 96 | ||
Total [Member] | ' | ' | ' | ||
Change in Benefit Obligation: | ' | ' | ' | ||
Benefit obligation at beginning of period | 2,304 | 2,430 | ' | ||
Service cost | 73 | 78 | ' | ||
Interest cost | 99 | 83 | ' | ||
Plan participants’ contributions | 2 | 2 | ' | ||
Actuarial loss (gain) | 132 | -138 | ' | ||
Benefits paid | -130 | [1] | -128 | [1] | ' |
Settlements / curtailments | -10 | -26 | ' | ||
Currency loss | 0 | 5 | ' | ||
Other | -1 | -2 | ' | ||
Benefit Obligation at End of Period | 2,469 | 2,304 | ' | ||
Change in Plan Assets: | ' | ' | ' | ||
Fair value of plan assets at beginning of period | 2,143 | 2,105 | ' | ||
Actual return on plan assets | 425 | 124 | ' | ||
Employer contributions | 57 | [1] | 61 | [1] | ' |
Plan participants’ contributions | 2 | 2 | ' | ||
Settlements | -10 | -26 | ' | ||
Benefits paid | -130 | [1] | -128 | [1] | ' |
Currency gain | 1 | 3 | ' | ||
Other | 0 | 2 | ' | ||
Plan Assets at End of Period | 2,488 | 2,143 | ' | ||
Net (Asset) Liability Recognized | -19 | 161 | ' | ||
Defined Benefit Plan Contributions By Employer Assets | 13 | 7 | ' | ||
Fair Value of Plan Assets with PBOs in Excess of Plan Assets | 156 | 2,125 | ' | ||
U.S. [Member] | ' | ' | ' | ||
Change in Benefit Obligation: | ' | ' | ' | ||
Benefit obligation at beginning of period | 2,049 | 2,179 | ' | ||
Service cost | 61 | 68 | 55 | ||
Interest cost | 90 | 74 | 86 | ||
Plan participants’ contributions | 0 | 0 | ' | ||
Actuarial loss (gain) | 117 | -149 | ' | ||
Benefits paid | -121 | [1] | -123 | [1] | ' |
Settlements / curtailments | 0 | 0 | ' | ||
Currency loss | 0 | 0 | ' | ||
Other | 0 | 0 | ' | ||
Benefit Obligation at End of Period | 2,196 | 2,049 | 2,179 | ||
Change in Plan Assets: | ' | ' | ' | ||
Fair value of plan assets at beginning of period | 1,977 | 1,945 | ' | ||
Actual return on plan assets | 404 | 114 | ' | ||
Employer contributions | 38 | [1] | 41 | [1] | ' |
Plan participants’ contributions | 0 | 0 | ' | ||
Settlements | 0 | 0 | ' | ||
Benefits paid | -121 | [1] | -123 | [1] | ' |
Currency gain | 0 | 0 | ' | ||
Other | 0 | 0 | ' | ||
Plan Assets at End of Period | 2,298 | 1,977 | 1,945 | ||
Net (Asset) Liability Recognized | -102 | 72 | ' | ||
Fair Value of Plan Assets with PBOs in Excess of Plan Assets | 0 | 1,977 | ' | ||
Outside the U.S. [Member] | ' | ' | ' | ||
Change in Benefit Obligation: | ' | ' | ' | ||
Benefit obligation at beginning of period | 255 | 251 | ' | ||
Service cost | 12 | 10 | 7 | ||
Interest cost | 9 | 9 | 10 | ||
Plan participants’ contributions | 2 | 2 | ' | ||
Actuarial loss (gain) | 15 | 11 | ' | ||
Benefits paid | -9 | [1] | -5 | [1] | ' |
Settlements / curtailments | -10 | -26 | ' | ||
Currency loss | 0 | 5 | ' | ||
Other | -1 | -2 | ' | ||
Benefit Obligation at End of Period | 273 | 255 | 251 | ||
Change in Plan Assets: | ' | ' | ' | ||
Fair value of plan assets at beginning of period | 166 | 160 | ' | ||
Actual return on plan assets | 21 | 10 | ' | ||
Employer contributions | 19 | [1] | 20 | [1] | ' |
Plan participants’ contributions | 2 | 2 | ' | ||
Settlements | -10 | -26 | ' | ||
Benefits paid | -9 | [1] | -5 | [1] | ' |
Currency gain | 1 | 3 | ' | ||
Other | 0 | 2 | ' | ||
Plan Assets at End of Period | 190 | 166 | 160 | ||
Net (Asset) Liability Recognized | 83 | 89 | ' | ||
Fair Value of Plan Assets with PBOs in Excess of Plan Assets | $156 | $148 | ' | ||
[1] | Employer contributions and benefits paid include $13 million and $7 million paid from employer assets for unfunded plans in fiscal years 2014 and 2013, respectively. |
POSTRETIREMENT_BENEFITS_PENSIO7
POSTRETIREMENT BENEFITS - PENSIONS (Assumptions Used to Determine Pension Benefit Obligation) (Details) | Aug. 31, 2014 | Aug. 31, 2013 |
U.S. [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Discount Rate | 4.04% | 4.44% |
Rate of Compensation Increase | 4.00% | 4.00% |
Outside the U.S. [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Discount Rate | 3.01% | 3.62% |
Rate of Compensation Increase | 3.92% | 3.95% |
POSTRETIREMENT_BENEFITS_PENSIO8
POSTRETIREMENT BENEFITS - PENSIONS (Projected Benefit Obligations in Excess of Plan Assets) (Details) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
In Millions, unless otherwise specified | ||
Total [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
PBO | $308 | $2,284 |
Fair Value of Plan Assets with PBOs in Excess of Plan Assets | 156 | 2,125 |
U.S. [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
PBO | 66 | 2,049 |
Fair Value of Plan Assets with PBOs in Excess of Plan Assets | 0 | 1,977 |
Outside the U.S. [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
PBO | 242 | 235 |
Fair Value of Plan Assets with PBOs in Excess of Plan Assets | $156 | $148 |
POSTRETIREMENT_BENEFITS_PENSIO9
POSTRETIREMENT BENEFITS - PENSIONS (Accumulated Benefit Obligations in Excess of Plan Assets) (Details) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
In Millions, unless otherwise specified | ||
Total [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
PBO | $181 | $165 |
ABO | 156 | 143 |
Fair Value of Plan Assets with ABOs in Excess of Plan Assets | 32 | 23 |
U.S. [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Accumulated Benefit Obligation | 2,100 | 2,000 |
PBO | 66 | 60 |
ABO | 62 | 56 |
Fair Value of Plan Assets with ABOs in Excess of Plan Assets | 0 | 0 |
Outside the U.S. [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Accumulated Benefit Obligation | 213 | 198 |
PBO | 115 | 105 |
ABO | 94 | 87 |
Fair Value of Plan Assets with ABOs in Excess of Plan Assets | $32 | $23 |
Recovered_Sheet1
POSTRETIREMENT BENEFITS - PENSIONS (Net Amount Recognized) (Details) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
In Millions, unless otherwise specified | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Postretirement Liabilities | $345 | $357 |
Total [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Miscellaneous Short-Term Accruals | 14 | 13 |
Postretirement Liabilities | 147 | 156 |
Other Assets | -180 | -8 |
Net (Asset) Liability Recognized | -19 | 161 |
U.S. [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Miscellaneous Short-Term Accruals | 7 | 5 |
Postretirement Liabilities | 59 | 67 |
Other Assets | -168 | 0 |
Net (Asset) Liability Recognized | -102 | 72 |
Outside the U.S. [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Miscellaneous Short-Term Accruals | 7 | 8 |
Postretirement Liabilities | 88 | 89 |
Other Assets | -12 | -8 |
Net (Asset) Liability Recognized | $83 | $89 |
Recovered_Sheet2
POSTRETIREMENT BENEFITS - PENSIONS (Pre-Tax Components Recognized in AOCI Pension) (Details) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
In Millions, unless otherwise specified | ||
Total [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Net Prior Service Cost | $0 | $1 |
Net Loss | 381 | 597 |
Total | 381 | 598 |
U.S. [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Net Prior Service Cost | 0 | 0 |
Net Loss | 324 | 538 |
Total | 324 | 538 |
Outside the U.S. [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Net Prior Service Cost | 0 | 1 |
Net Loss | 57 | 59 |
Total | $57 | $60 |
Recovered_Sheet3
POSTRETIREMENT BENEFITS - PENSIONS (Pension Plan Asset Allocation United States) (Details) (U.S. [Member]) | 12 Months Ended | |
Aug. 31, 2014 | Aug. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Percentage of Plan Assets | 100.00% | 100.00% |
Public Equity Securities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Percentage of Plan Assets | 51.10% | 52.00% |
Private Equity Investments [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Percentage of Plan Assets | 3.80% | 3.90% |
Debt Securities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Percentage of Plan Assets | 40.50% | 38.90% |
Real Estate [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Percentage of Plan Assets | 4.10% | 4.60% |
Other [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Percentage of Plan Assets | 0.50% | 0.60% |
Scenario, Forecast [Member] | Public Equity Securities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Target Allocation, Minimum | 41.00% | ' |
Target Allocation, Maximum | 51.00% | ' |
Scenario, Forecast [Member] | Private Equity Investments [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Target Allocation, Minimum | 2.00% | ' |
Target Allocation, Maximum | 8.00% | ' |
Scenario, Forecast [Member] | Debt Securities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Target Allocation, Minimum | 39.00% | ' |
Target Allocation, Maximum | 49.00% | ' |
Scenario, Forecast [Member] | Real Estate [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Target Allocation, Minimum | 2.00% | ' |
Target Allocation, Maximum | 8.00% | ' |
Scenario, Forecast [Member] | Other [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Target Allocation, Minimum | 0.00% | ' |
Target Allocation, Maximum | 3.00% | ' |
Recovered_Sheet4
POSTRETIREMENT BENEFITS - PENSIONS (Pension Plan Asset Allocation Foreign) (Details) (Outside the U.S. [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | |
Fair Value Assets Measured On Recurring Basis | $190 | $166 | |
Percentage of Plan Assets | 100.00% | 100.00% | |
Equity Securities [Member] | ' | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | |
Percentage of Plan Assets | 32.80% | 34.40% | |
Debt Securities [Member] | ' | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | |
Percentage of Plan Assets | 52.30% | 52.40% | |
Other [Member] | ' | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | |
Percentage of Plan Assets | 14.90% | 13.20% | |
Scenario, Forecast [Member] | ' | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | |
Target Allocation | 100.00% | [1] | ' |
Scenario, Forecast [Member] | Equity Securities [Member] | ' | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | |
Target Allocation | 37.40% | [1] | ' |
Scenario, Forecast [Member] | Debt Securities [Member] | ' | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | |
Target Allocation | 48.90% | [1] | ' |
Scenario, Forecast [Member] | Other [Member] | ' | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | |
Target Allocation | 13.70% | [1] | ' |
[1] | Monsanto’s plans outside the United States have a wide range of target allocations, and therefore the 2015 target allocations shown above reflect a weighted-average calculation of the target allocations of each of the plans. |
Recovered_Sheet5
POSTRETIREMENT BENEFITS - PENSIONS (United States Pension Plan Asset Fair Value) (Details) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Future [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Notional Amount Of Derivatives Designated As Hedging Instruments | $147 | ' | ||
Derivatives: Common and preferred stock sold short | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Notional Amount Of Derivatives Designated As Hedging Instruments | 53 | ' | ||
U.S. [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 2,622 | 2,174 | ||
U.S. [Member] | Level 1 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 720 | 637 | ||
U.S. [Member] | Level 2 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 1,623 | 1,289 | ||
U.S. [Member] | Level 3 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 221 | 206 | ||
U.S. [Member] | Cash Collateral Offset [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 58 | [1] | 42 | [1] |
U.S. [Member] | Future [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | ' | ||
U.S. [Member] | Future [Member] | Level 1 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | -3 | ' | ||
U.S. [Member] | Future [Member] | Level 2 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | ' | ||
U.S. [Member] | Future [Member] | Level 3 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | ' | ||
U.S. [Member] | Future [Member] | Cash Collateral Offset [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 3 | [1] | ' | |
U.S. [Member] | foreign currency forward [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | ' | ||
U.S. [Member] | foreign currency forward [Member] | Level 1 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | ' | ||
U.S. [Member] | foreign currency forward [Member] | Level 2 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 1 | ' | ||
U.S. [Member] | foreign currency forward [Member] | Level 3 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | ' | ||
U.S. [Member] | foreign currency forward [Member] | Cash Collateral Offset [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | -1 | [1] | ' | |
U.S. [Member] | Cash [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 14 | 16 | ||
U.S. [Member] | Cash [Member] | Level 1 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 14 | 16 | ||
U.S. [Member] | Cash [Member] | Level 2 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Cash [Member] | Level 3 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Cash [Member] | Cash Collateral Offset [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | [1] | 0 | [1] |
U.S. [Member] | US government debt [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 339 | 260 | ||
U.S. [Member] | US government debt [Member] | Level 1 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | US government debt [Member] | Level 2 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 339 | 260 | ||
U.S. [Member] | US government debt [Member] | Level 3 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | US government debt [Member] | Cash Collateral Offset [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | [1] | 0 | [1] |
U.S. [Member] | US agency debt [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 5 | 7 | ||
U.S. [Member] | US agency debt [Member] | Level 1 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | US agency debt [Member] | Level 2 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 5 | 7 | ||
U.S. [Member] | US agency debt [Member] | Level 3 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | US agency debt [Member] | Cash Collateral Offset [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | [1] | 0 | [1] |
U.S. [Member] | US state and municipal debt [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 31 | 34 | ||
U.S. [Member] | US state and municipal debt [Member] | Level 1 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | US state and municipal debt [Member] | Level 2 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 31 | 34 | ||
U.S. [Member] | US state and municipal debt [Member] | Level 3 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | US state and municipal debt [Member] | Cash Collateral Offset [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | [1] | 0 | [1] |
U.S. [Member] | Foreign government debt [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 4 | 2 | ||
U.S. [Member] | Foreign government debt [Member] | Level 1 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Foreign government debt [Member] | Level 2 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 4 | 2 | ||
U.S. [Member] | Foreign government debt [Member] | Level 3 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Foreign government debt [Member] | Cash Collateral Offset [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | [1] | 0 | [1] |
U.S. [Member] | US corporate debt [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 288 | 243 | ||
U.S. [Member] | US corporate debt [Member] | Level 1 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | US corporate debt [Member] | Level 2 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 288 | 243 | ||
U.S. [Member] | US corporate debt [Member] | Level 3 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | US corporate debt [Member] | Cash Collateral Offset [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | [1] | 0 | [1] |
U.S. [Member] | Mortgage-Backed securities [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 3 | 2 | ||
U.S. [Member] | Mortgage-Backed securities [Member] | Level 1 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Mortgage-Backed securities [Member] | Level 2 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 3 | 2 | ||
U.S. [Member] | Mortgage-Backed securities [Member] | Level 3 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Mortgage-Backed securities [Member] | Cash Collateral Offset [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | [1] | 0 | [1] |
U.S. [Member] | Asset-Backed securities [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 3 | 3 | ||
U.S. [Member] | Asset-Backed securities [Member] | Level 1 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Asset-Backed securities [Member] | Level 2 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 3 | 3 | ||
U.S. [Member] | Asset-Backed securities [Member] | Level 3 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Asset-Backed securities [Member] | Cash Collateral Offset [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | [1] | 0 | [1] |
U.S. [Member] | Foreign corporate debt [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 77 | 54 | ||
U.S. [Member] | Foreign corporate debt [Member] | Level 1 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Foreign corporate debt [Member] | Level 2 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 77 | 54 | ||
U.S. [Member] | Foreign corporate debt [Member] | Level 3 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Foreign corporate debt [Member] | Cash Collateral Offset [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | [1] | 0 | [1] |
U.S. [Member] | US Term Bank Loans [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 5 | 1 | ||
U.S. [Member] | US Term Bank Loans [Member] | Level 1 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | US Term Bank Loans [Member] | Level 2 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 5 | 1 | ||
U.S. [Member] | US Term Bank Loans [Member] | Level 3 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | US Term Bank Loans [Member] | Cash Collateral Offset [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | [1] | 0 | [1] |
U.S. [Member] | Common and Preferred Stock: Domestic small capitalization [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 36 | 46 | ||
U.S. [Member] | Common and Preferred Stock: Domestic small capitalization [Member] | Level 1 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 36 | 46 | ||
U.S. [Member] | Common and Preferred Stock: Domestic small capitalization [Member] | Level 2 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Common and Preferred Stock: Domestic small capitalization [Member] | Level 3 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Common and Preferred Stock: Domestic small capitalization [Member] | Cash Collateral Offset [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | [1] | 0 | [1] |
U.S. [Member] | Common and Preferred Stock: Domestic large capitalization [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 459 | 385 | ||
U.S. [Member] | Common and Preferred Stock: Domestic large capitalization [Member] | Level 1 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 459 | 385 | ||
U.S. [Member] | Common and Preferred Stock: Domestic large capitalization [Member] | Level 2 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Common and Preferred Stock: Domestic large capitalization [Member] | Level 3 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Common and Preferred Stock: Domestic large capitalization [Member] | Cash Collateral Offset [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | [1] | 0 | [1] |
U.S. [Member] | Common and Preferred Stock: International: Developed markets [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 181 | 160 | ||
U.S. [Member] | Common and Preferred Stock: International: Developed markets [Member] | Level 1 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 181 | 160 | ||
U.S. [Member] | Common and Preferred Stock: International: Developed markets [Member] | Level 2 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Common and Preferred Stock: International: Developed markets [Member] | Level 3 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Common and Preferred Stock: International: Developed markets [Member] | Cash Collateral Offset [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | [1] | 0 | [1] |
U.S. [Member] | Common and Preferred Stock: International: Emerging markets [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 35 | 31 | ||
U.S. [Member] | Common and Preferred Stock: International: Emerging markets [Member] | Level 1 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 34 | 30 | ||
U.S. [Member] | Common and Preferred Stock: International: Emerging markets [Member] | Level 2 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 1 | 1 | ||
U.S. [Member] | Common and Preferred Stock: International: Emerging markets [Member] | Level 3 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Common and Preferred Stock: International: Emerging markets [Member] | Cash Collateral Offset [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | [1] | 0 | [1] |
U.S. [Member] | Private Equity Investments [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 87 | 77 | ||
U.S. [Member] | Private Equity Investments [Member] | Level 1 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Private Equity Investments [Member] | Level 2 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Private Equity Investments [Member] | Level 3 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 87 | 77 | ||
U.S. [Member] | Private Equity Investments [Member] | Cash Collateral Offset [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | [1] | 0 | [1] |
U.S. [Member] | Partnership and Joint Venture Interests [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 32 | 32 | ||
U.S. [Member] | Partnership and Joint Venture Interests [Member] | Level 1 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Partnership and Joint Venture Interests [Member] | Level 2 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Partnership and Joint Venture Interests [Member] | Level 3 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 32 | 32 | ||
U.S. [Member] | Partnership and Joint Venture Interests [Member] | Cash Collateral Offset [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | [1] | 0 | [1] |
U.S. [Member] | Real Estate Investments [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 94 | 90 | ||
U.S. [Member] | Real Estate Investments [Member] | Level 1 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Real Estate Investments [Member] | Level 2 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Real Estate Investments [Member] | Level 3 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 94 | 90 | ||
U.S. [Member] | Real Estate Investments [Member] | Cash Collateral Offset [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | [1] | 0 | [1] |
U.S. [Member] | Interest in Pooled Funds: Interest-bearing cash and cash equivalents [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 58 | 56 | ||
U.S. [Member] | Interest in Pooled Funds: Interest-bearing cash and cash equivalents [Member] | Level 1 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Interest in Pooled Funds: Interest-bearing cash and cash equivalents [Member] | Level 2 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 58 | 56 | ||
U.S. [Member] | Interest in Pooled Funds: Interest-bearing cash and cash equivalents [Member] | Level 3 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Interest in Pooled Funds: Interest-bearing cash and cash equivalents [Member] | Cash Collateral Offset [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | [1] | 0 | [1] |
U.S. [Member] | Interest in Pooled Funds: Common and preferred stock funds: Domestic small-capitalization [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 7 | 7 | ||
U.S. [Member] | Interest in Pooled Funds: Common and preferred stock funds: Domestic small-capitalization [Member] | Level 1 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Interest in Pooled Funds: Common and preferred stock funds: Domestic small-capitalization [Member] | Level 2 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 7 | 7 | ||
U.S. [Member] | Interest in Pooled Funds: Common and preferred stock funds: Domestic small-capitalization [Member] | Level 3 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Interest in Pooled Funds: Common and preferred stock funds: Domestic small-capitalization [Member] | Cash Collateral Offset [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | [1] | 0 | [1] |
U.S. [Member] | Interest in Pooled Funds: Common and preferred stock funds: Domestic large-capitalization [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 318 | 277 | ||
U.S. [Member] | Interest in Pooled Funds: Common and preferred stock funds: Domestic large-capitalization [Member] | Level 1 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Interest in Pooled Funds: Common and preferred stock funds: Domestic large-capitalization [Member] | Level 2 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 318 | 277 | ||
U.S. [Member] | Interest in Pooled Funds: Common and preferred stock funds: Domestic large-capitalization [Member] | Level 3 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Interest in Pooled Funds: Common and preferred stock funds: Domestic large-capitalization [Member] | Cash Collateral Offset [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | [1] | 0 | [1] |
U.S. [Member] | Interest in Pooled Funds: Common and preferred stock funds: International [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 105 | 89 | ||
U.S. [Member] | Interest in Pooled Funds: Common and preferred stock funds: International [Member] | Level 1 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Interest in Pooled Funds: Common and preferred stock funds: International [Member] | Level 2 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 105 | 89 | ||
U.S. [Member] | Interest in Pooled Funds: Common and preferred stock funds: International [Member] | Level 3 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Interest in Pooled Funds: Common and preferred stock funds: International [Member] | Cash Collateral Offset [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | [1] | 0 | [1] |
U.S. [Member] | Interest in Pooled Funds: Corporate debt funds [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 98 | 89 | ||
U.S. [Member] | Interest in Pooled Funds: Corporate debt funds [Member] | Level 1 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Interest in Pooled Funds: Corporate debt funds [Member] | Level 2 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 98 | 89 | ||
U.S. [Member] | Interest in Pooled Funds: Corporate debt funds [Member] | Level 3 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Interest in Pooled Funds: Corporate debt funds [Member] | Cash Collateral Offset [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | [1] | 0 | [1] |
U.S. [Member] | Interest in Pooled Funds: Mortgage-Backed securities [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 8 | 7 | ||
U.S. [Member] | Interest in Pooled Funds: Mortgage-Backed securities [Member] | Level 1 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Interest in Pooled Funds: Mortgage-Backed securities [Member] | Level 2 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Interest in Pooled Funds: Mortgage-Backed securities [Member] | Level 3 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 8 | 7 | ||
U.S. [Member] | Interest in Pooled Funds: Mortgage-Backed securities [Member] | Cash Collateral Offset [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | [1] | 0 | [1] |
U.S. [Member] | Interest in Pooled Collerateral Fund [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 334 | 205 | ||
U.S. [Member] | Interest in Pooled Collerateral Fund [Member] | Level 1 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Interest in Pooled Collerateral Fund [Member] | Level 2 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 334 | 205 | ||
U.S. [Member] | Interest in Pooled Collerateral Fund [Member] | Level 3 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Interest in Pooled Collerateral Fund [Member] | Cash Collateral Offset [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | [1] | 0 | [1] |
U.S. [Member] | Interest Rate Contracts [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | ' | ||
U.S. [Member] | Interest Rate Contracts [Member] | Level 1 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | -1 | ' | ||
U.S. [Member] | Interest Rate Contracts [Member] | Level 2 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | ' | ||
U.S. [Member] | Interest Rate Contracts [Member] | Level 3 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | ' | ||
U.S. [Member] | Interest Rate Contracts [Member] | Cash Collateral Offset [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 1 | [1] | ' | |
U.S. [Member] | Derivatives: Common and preferred stock sold short | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 1 | 1 | ||
U.S. [Member] | Derivatives: Common and preferred stock sold short | Level 1 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Derivatives: Common and preferred stock sold short | Level 2 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | -54 | -41 | ||
U.S. [Member] | Derivatives: Common and preferred stock sold short | Level 3 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | 0 | 0 | ||
U.S. [Member] | Derivatives: Common and preferred stock sold short | Cash Collateral Offset [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total Investments at Fair Value | $55 | [1] | $42 | [1] |
[1] | Futures derivative assets and common and preferred stock sold short have been offset by cash collateral held by the counterparty. |
Recovered_Sheet6
POSTRETIREMENT BENEFITS - PENSION (United States Pension Plan Asset Level 3 Rollforward) (Details) (Level 3 [Member], USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | ||
Outside the U.S. [Member] | Insurance Backed Securities [Member] | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ||
Beginning Balance | $19 | $17 | ||
Purchases | 6 | 4 | ||
Sales | ' | -3 | ||
Ending Balance | 25 | 19 | ||
U.S. [Member] | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ||
Beginning Balance | 207 | 193 | ||
Purchases | 20 | 20 | ||
Sales | -27 | -18 | ||
Realized/unrealized gains | 21 | 12 | ||
Ending Balance | 221 | 207 | ||
Net Unrealized Gains (Losses) Still Held Included in Earnings | 22 | [1] | 16 | [1] |
U.S. [Member] | Private Equity Investments [Member] | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ||
Beginning Balance | 77 | 73 | ||
Purchases | 15 | 13 | ||
Sales | -18 | -17 | ||
Realized/unrealized gains | 13 | 8 | ||
Ending Balance | 87 | 77 | ||
Net Unrealized Gains (Losses) Still Held Included in Earnings | 16 | [1] | 11 | [1] |
U.S. [Member] | Partnership and Joint Venture Interests [Member] | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ||
Beginning Balance | 32 | 32 | ||
Purchases | 0 | 0 | ||
Sales | -3 | 0 | ||
Realized/unrealized gains | 3 | 0 | ||
Ending Balance | 32 | 32 | ||
Net Unrealized Gains (Losses) Still Held Included in Earnings | 0 | [1] | 1 | [1] |
U.S. [Member] | Real Estate Investments [Member] | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ||
Beginning Balance | 90 | 80 | ||
Purchases | 5 | 7 | ||
Sales | -6 | -1 | ||
Realized/unrealized gains | 5 | 4 | ||
Ending Balance | 94 | 90 | ||
Net Unrealized Gains (Losses) Still Held Included in Earnings | 6 | [1] | 4 | [1] |
U.S. [Member] | Mortgage-Backed securities [Member] | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ||
Beginning Balance | 8 | 8 | ||
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Realized/unrealized gains | 0 | 0 | ||
Ending Balance | 8 | 8 | ||
Net Unrealized Gains (Losses) Still Held Included in Earnings | $0 | [1] | $0 | [1] |
[1] | epresents the amount of total gains for the period attributable to change in unrealized gains (losses) relating to assets and liabilities classified as Level 3 that are still held as of Aug. 31, 2013, and Aug. 31, 2014. |
Recovered_Sheet7
POSTRETIREMENT BENEFITS - PENSIONS (Investments at Fair Value to Plan Assets Reconciliation) (Details) (U.S. [Member], USD $) | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
In Millions, unless otherwise specified | |||
U.S. [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total Investments at Fair Value | $2,622 | ' | ' |
Liability to return collateral held under securities lending agreement | -334 | ' | ' |
Non-interest bearing cash | 3 | ' | ' |
Accrued income / expense | 7 | ' | ' |
Plan Assets at End of Period | $2,298 | $1,977 | $1,945 |
Recovered_Sheet8
POSTRETIREMENT BENEFITS - PENSIONS (Foreign Pension Plan Asset Fair Value) (Details) (Outside the U.S. [Member], USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
In Millions, unless otherwise specified | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | $190 | $166 |
Level 1 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | 48 | 47 |
Level 2 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | 117 | 100 |
Level 3 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | 25 | 19 |
Cash and Cash Equivalents [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | 2 | 2 |
Cash and Cash Equivalents [Member] | Level 1 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | 2 | 2 |
Cash and Cash Equivalents [Member] | Level 2 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | 0 | 0 |
Cash and Cash Equivalents [Member] | Level 3 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | 0 | 0 |
Debt Securities - Foreign Government Debt [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | 16 | 15 |
Debt Securities - Foreign Government Debt [Member] | Level 1 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | 0 | 0 |
Debt Securities - Foreign Government Debt [Member] | Level 2 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | 16 | 15 |
Debt Securities - Foreign Government Debt [Member] | Level 3 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | 0 | 0 |
Common and Preferred Stock [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | 46 | 45 |
Common and Preferred Stock [Member] | Level 1 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | 46 | 45 |
Common and Preferred Stock [Member] | Level 2 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | 0 | 0 |
Common and Preferred Stock [Member] | Level 3 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | 0 | 0 |
Insurance Backed Securities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | 25 | 19 |
Insurance Backed Securities [Member] | Level 1 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | 0 | 0 |
Insurance Backed Securities [Member] | Level 2 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | 0 | 0 |
Insurance Backed Securities [Member] | Level 3 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | 25 | 19 |
Interest in Pooled Funds: Common and preferred stock funds [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | 15 | 12 |
Interest in Pooled Funds: Common and preferred stock funds [Member] | Level 1 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | 0 | 0 |
Interest in Pooled Funds: Common and preferred stock funds [Member] | Level 2 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | 15 | 12 |
Interest in Pooled Funds: Common and preferred stock funds [Member] | Level 3 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | 0 | 0 |
Interest in Pooled Funds: Government debt funds [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | 11 | 5 |
Interest in Pooled Funds: Government debt funds [Member] | Level 1 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | 0 | 0 |
Interest in Pooled Funds: Government debt funds [Member] | Level 2 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | 11 | 5 |
Interest in Pooled Funds: Government debt funds [Member] | Level 3 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | 0 | 0 |
Mortgage-Backed securities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | ' | 3 |
Mortgage-Backed securities [Member] | Level 1 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | ' | 0 |
Mortgage-Backed securities [Member] | Level 2 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | ' | 3 |
Mortgage-Backed securities [Member] | Level 3 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | ' | 0 |
Interest in Pooled Funds: Corporate debt funds [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | 75 | 65 |
Interest in Pooled Funds: Corporate debt funds [Member] | Level 1 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | 0 | 0 |
Interest in Pooled Funds: Corporate debt funds [Member] | Level 2 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | 75 | 65 |
Interest in Pooled Funds: Corporate debt funds [Member] | Level 3 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total Investments at Fair Value | $0 | $0 |
Recovered_Sheet9
POSTRETIREMENT BENEFITS - PENSION (Foreign Pension Plan Asset Level 3 Rollforward) (Details) (Outside the U.S. [Member], Insurance-Backed Securities [Member], Level 3 [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 |
Outside the U.S. [Member] | Insurance-Backed Securities [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Beginning Balance | $19 | $17 |
Purchases | 6 | 4 |
Sales | ' | -3 |
Net unrealized gains (losses) | ' | 1 |
Ending Balance | $25 | $19 |
Recovered_Sheet10
POSTRETIREMENT BENEFITS - PENSION (Expected Cash Flows Pension) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Aug. 31, 2014 |
U.S. [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Employer Contributions 2015 (funded Plans) | $30 |
Benefits Paid Directly by Employer to Unfunded Plan | 6 |
2015 | 183 |
2016 | 173 |
2017 | 174 |
2018 | 174 |
2019 | 174 |
2020-2024 | 831 |
Outside the U.S. [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Employer Contributions 2015 (funded Plans) | 11 |
Benefits Paid Directly by Employer to Unfunded Plan | 7 |
2015 | 24 |
2016 | 14 |
2017 | 17 |
2018 | 17 |
2019 | 15 |
2020-2024 | $88 |
Recovered_Sheet11
POSTRETIREMENT BENEFITS - PENSIONS (Multiemployer Plan Narrative) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
employer | ||||||
participant | ||||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Employers participating | ' | ' | ' | 33,750 | ' | ' |
Participants covered | ' | ' | ' | 90,000 | ' | ' |
Multiemployer plan assets | ' | ' | ' | $14,000 | ' | ' |
Multiemployer Plans, Funded Status | ' | ' | ' | 109.00% | ' | ' |
Multiemployer plan total contribution percentage | ' | ' | ' | 21.70% | 19.50% | 18.15% |
Multiemployer plan additional surcharge | ' | ' | ' | 1.25% | ' | ' |
Multiemployer Plan, Period Contributions | $6 | $6 | $6 | ' | ' | ' |
Scenario, Forecast [Member] | ' | ' | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Multiemployer plan total contribution percentage | ' | ' | ' | 21.70% | ' | ' |
Multiemployer plan employer contribution percentage | ' | ' | ' | 17.09% | ' | ' |
POSTRETIREMENT_BENEFITS_HEALTH2
POSTRETIREMENT BENEFITS - HEALTH CARE AND OTHER POSTEMPLOYMENT BENEFITS (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total postretirement benefit costs | $97 | $96 | $93 |
Postretirement Benefit Costs [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total postretirement benefit costs | 1 | 9 | 13 |
Initial Trend Rate for Health Care Costs | 6.50% | 7.00% | 7.00% |
Ultimate Trend Rate for Health Care Costs | 5.00% | 5.00% | 5.00% |
Amortization of net gain | 4 | ' | ' |
Amortization of net prior service credit | 1 | ' | ' |
Defined Benefit Plan Contributions By Employer Assets | 22 | ' | ' |
Accrual for other sponsored plans | $31 | $31 | ' |
POSTRETIREMENT_BENEFITS_HEALTH3
POSTRETIREMENT BENEFITS - HEALTH CARE AND OTHER POSTEMPLOYMENT BENEFITS (Net Periodic Cost Postretirement) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service Cost for Benefits Earned During the Period | $73 | $78 | $62 |
Interest Cost on Benefit Obligation | 99 | 83 | 96 |
Total Net Periodic Benefit Cost | 97 | 96 | 93 |
Postretirement Benefit Costs [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service Cost for Benefits Earned During the Period | 7 | 9 | 10 |
Interest Cost on Benefit Obligation | 7 | 6 | 10 |
Amortization of Prior Service Credit | -1 | -1 | -1 |
Amortization of Actuarial Gain | -13 | -5 | -6 |
Total Net Periodic Benefit Cost | $1 | $9 | $13 |
POSTRETIREMENT_BENEFITS_HEALTH4
POSTRETIREMENT BENEFITS - HEALTH CARE AND OTHER POSTEMPLOYMENT BENEFITS (Changes Recognized in OCI Postretirement) (Details) (Postretirement Benefit Costs [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 |
Postretirement Benefit Costs [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Actuarial Loss (Gain) | $6 | ($13) |
Amortization of Prior Service Credit | 1 | 1 |
Amortization of Actuarial Gain | 13 | 5 |
Total Recognized in Accumulated Other Comprehensive Loss | $20 | ($7) |
POSTRETIREMENT_BENEFITS_HEALTH5
POSTRETIREMENT BENEFITS - HEALTH CARE AND OTHER POSTEMPLOYMENT BENEFITS (Assumptions Used to Determine Postretirement Costs) (Details) (Postretirement Benefit Costs [Member]) | 12 Months Ended | ||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |
Postretirement Benefit Costs [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount Rate Postretirement | 3.95% | 2.95% | 4.30% |
Discount Rate Postemployment | 2.55% | 1.55% | 2.20% |
Initial Trend Rate for Health Care Costs | 6.50% | 7.00% | 7.00% |
Ultimate Trend Rate for Health Care Costs | 5.00% | 5.00% | 5.00% |
POSTRETIREMENT_BENEFITS_HEALTH6
POSTRETIREMENT BENEFITS - HEALTH CARE AND OTHER POSTEMPLOYMENT BENEFITS (One Percent Effect on Postretirement Costs and Benefit Obligation) (Details) (Postretirement Benefit Costs [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Aug. 31, 2014 |
Postretirement Benefit Costs [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Effect of 1 Percentage-Point Increase on Total Service and Interest Cost | $1 |
Effect of 1 Percentage-Point Decrease on Total Service and Interest Cost | -1 |
Effect of 1 Percentage-Point Increase on Postretirement Benefit Obligation | 4 |
Effect of 1 Percentage-Point Decrease on Postretirement Benefit Obligation | ($4) |
POSTRETIREMENT_BENEFITS_HEALTH7
POSTRETIREMENT BENEFITS - HEALTH CARE AND OTHER POSTEMPLOYMENT BENEFITS (Benefit Obligations Postretirement) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Change in Benefit Obligation: | ' | ' | ' |
Service cost | $73 | $78 | $62 |
Interest cost | 99 | 83 | 96 |
Postretirement Benefit Costs [Member] | ' | ' | ' |
Change in Benefit Obligation: | ' | ' | ' |
Benefit obligation at beginning of period | 192 | 215 | ' |
Service cost | 7 | 9 | 10 |
Interest cost | 7 | 6 | 10 |
Actuarial loss (gain) | 6 | -13 | ' |
Plan participants’ contributions | 5 | 4 | ' |
Medicare Part D subsidy receipts | 1 | 1 | ' |
Benefits paid | -29 | -29 | ' |
Currency impact | 0 | -1 | ' |
Benefit Obligation at End of Period | $189 | $192 | $215 |
POSTRETIREMENT_BENEFITS_HEALTH8
POSTRETIREMENT BENEFITS - HEALTH CARE AND OTHER POSTEMPLOYMENT BENEFITS (Assumptions Used to Determine Postretirement Benefit Obligation) (Details) (Postretirement Benefit Costs [Member]) | 12 Months Ended | ||||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |||
Postretirement Benefit Costs [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Discount Rate Postretirement | 3.60% | 3.95% | ' | ||
Discount Rate Postemployment | 2.40% | 2.55% | ' | ||
Initial Trend Rate for Health Care Costs | 6.00% | [1] | 6.50% | [1] | ' |
Ultimate Trend Rate for Health Care Costs | 5.00% | 5.00% | 5.00% | ||
[1] | As of Aug. 31, 2014, this rate is assumed to decrease gradually to 5 percent for 2017 and remain at that level thereafter. |
POSTRETIREMENT_BENEFITS_HEALTH9
POSTRETIREMENT BENEFITS - HEALTH CARE AND OTHER POSTEMPLOYMENT BENEFITS (Postretirement Amounts Recognized in Statements of Consolidated Financial Position) (Details) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
In Millions, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Postretirement Liabilities | $345 | $357 | ' |
Postretirement Benefit Costs [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Miscellaneous Short-Term Accruals | 22 | 22 | ' |
Postretirement Liabilities | 167 | 170 | ' |
Total Liability Recognized | $189 | $192 | $215 |
Recovered_Sheet12
POSTRETIREMENT BENEFITS - HEALTH CARE AND OTHER POSTEMPLOYMENT BENEFITS (Pre-Tax Components Recognized in AOCI Postretirement) (Details) (Postretirement Benefit Costs [Member], USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
In Millions, unless otherwise specified | ||
Postretirement Benefit Costs [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Actuarial Gain | ($23) | ($42) |
Prior Service Credit | -1 | -2 |
Total | ($24) | ($44) |
Recovered_Sheet13
POSTRETIREMENT BENEFITS - HEALTH CARE AND OTHER POSTEMPLOYMENT BENEFITS (Expected Cash Flows Postretirement) (Details) (Postretirement Benefit Costs [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Aug. 31, 2014 | |
Postretirement Benefit Costs [Member] | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | |
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $22 | |
Prescription Drug Benefit, Effect of Subsidy on Net Periodic Postretirement Benefit Cost | 1 | |
2015 | 22 | [1],[2] |
2016 | 23 | [1],[2] |
2017 | 22 | [1],[2] |
2018 | 21 | [1],[2] |
2019 | 19 | [1],[2] |
2020-2024 | $77 | [1],[2] |
[1] | (1) Benefit payments are net of expected federal subsidy receipts related to prescription drug benefits granted under the Medicare Prescription Drug Improvement and Modernization Act of 2003, which are estimated to be less than $1 million annually. | |
[2] | (2) Expected benefit payments include benefits paid directly by employer for unfunded plans. |
EMPLOYEE_SAVINGS_PLANS_Details
EMPLOYEE SAVINGS PLANS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ' | ' | ' |
Age of Employee to Participate | '18 years | ' | ' |
Employee Stock Ownership Plan [Member] | ' | ' | ' |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ' | ' | ' |
Liability related to ESOP | $0 | ' | ' |
Number Of Allocated Shares | 4.5 | ' | ' |
Dividends Paid To ESOP | 8 | 8 | 8 |
ESOP Compensation Expense | 0 | 1 | 1 |
Matching contributions | 60 | 18 | ' |
Non-elective contributions | $3 | $1 | ' |
Minimum [Member] | ' | ' | ' |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ' | ' | ' |
Percent of SIP contributions | 1.00% | ' | ' |
Maximum [Member] | ' | ' | ' |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ' | ' | ' |
Percent of SIP contributions | 25.00% | ' | ' |
Original Period [Member] | Employee Stock Ownership Plan [Member] | ' | ' | ' |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ' | ' | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 60.00% | ' | ' |
Original Period [Member] | Maximum [Member] | ' | ' | ' |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ' | ' | ' |
Exchange Membership Contributed Policy [Policy Text Block] | 7.00% | ' | ' |
Before July 8, 2012 [Member] | Current Period [Member] | Employee Stock Ownership Plan [Member] | ' | ' | ' |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ' | ' | ' |
Exchange Membership Contributed Policy [Policy Text Block] | 8.00% | ' | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 80.00% | ' | ' |
On or After July 8, 2012 [Member] | Current Period [Member] | Employee Stock Ownership Plan [Member] | ' | ' | ' |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ' | ' | ' |
Exchange Membership Contributed Policy [Policy Text Block] | 8.00% | ' | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 80.00% | ' | ' |
STOCKBASED_COMPENSATION_PLANS_1
STOCK-BASED COMPENSATION PLANS (Narrative) (Details) (USD $) | 12 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||||||||||||||||||||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2014 | Aug. 31, 2014 | Jan. 24, 2012 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Jan. 24, 2012 | Aug. 31, 2014 | Aug. 31, 2011 | Aug. 31, 2014 | Jan. 24, 2012 | |
plan | plan | Total Stock-Based Compensation Expense Included in Operating Expenses [Member] | Total Stock-Based Compensation Expense Included in Operating Expenses [Member] | Total Stock-Based Compensation Expense Included in Operating Expenses [Member] | Equity Option [Member] | Long-Term Incentive Plan [Member] | Long-Term Incentive Plan [Member] | The Climate Corporation 2006 Stock Plan [Member] | Director Plan [Member] | Director Plan [Member] | Director Plan [Member] | Nonqualified stock options [Member] | Nonqualified stock options [Member] | Nonqualified stock options [Member] | Restricted Stock Units (RSUs) [Member] | Phantom Share Units (PSUs) [Member] | Phantom Share Units (PSUs) [Member] | Phantom Share Units (PSUs) [Member] | Stock Appreciation Rights (SARs) [Member] | Stock Appreciation Rights (SARs) [Member] | Stock Appreciation Rights (SARs) [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Long-Term Incentive Plan [Member] | Long-Term Incentive Plan [Member] | Long-Term Incentive Plan [Member] | The Climate Corporation 2006 Stock Plan [Member] | The Climate Corporation 2006 Stock Plan [Member] | ||
Restricted Stock Units (RSUs) [Member] | Equity Option [Member] | Restricted Stock Units (RSUs) [Member] | Long-Term Incentive Plan [Member] | ||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | ' | ' | ' | ($121,000,000) | ($100,000,000) | ($130,000,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation cost capitalized as part of inventory | 3,000,000 | 3,000,000 | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of plans | ' | 3 | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares authorized | ' | ' | ' | ' | ' | ' | ' | ' | 33,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,600,000 | ' | 2,000,000 |
Additional shares authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000,000 | ' | ' | ' | ' |
Decrease in remaining shares available | ' | ' | ' | ' | ' | ' | ' | 2.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,200,000 | ' | 1,100,000 | ' |
Plan term | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '4 years | '4 years | ' | ' | ' | ' | ' |
Ratio for Shares | 0.11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based liabilities paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 1,000,000 | 1,000,000 | ' | ' | ' | ' | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Grant date fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,000,000 | ' | ' | ' | ' | ' | 1,000,000 | 1,000,000 | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Awards outstanding and vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 278,093 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options Exercisable, Options | 9,568,016 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options Exercisable, Weighted-Average Remaining Contractual Life (Years) | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options Exercisable, Weighted-Average Exercise Price | $66.46 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Nonqualified stock options vested or expected to vest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,092,252 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average contractual term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $71.62 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable intrinsic value | 471,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 576,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average grant date fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $38.23 | $21.46 | $21.87 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercises in period intrinsic value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 273,000,000 | 272,000,000 | 201,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pretax unrecognized compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $63,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average remaining vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
STOCKBASED_COMPENSATION_PLANS_2
STOCK-BASED COMPENSATION PLANS (Components of Stock Based Compensation) (Details) (USD $) | 12 Months Ended | ||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |
Cost of Goods Sold [Member] | ' | ' | ' |
Allocated Stock-Based Compensation Expense [Line Items] | ' | ' | ' |
Allocated Share-based Compensation Expense | $8,000,000 | $11,000,000 | $19,000,000 |
Selling, General and Administrative Expenses [Member] | ' | ' | ' |
Allocated Stock-Based Compensation Expense [Line Items] | ' | ' | ' |
Allocated Share-based Compensation Expense | 82,000,000 | 69,000,000 | 82,000,000 |
Research and Development Expense [Member] | ' | ' | ' |
Allocated Stock-Based Compensation Expense [Line Items] | ' | ' | ' |
Allocated Share-based Compensation Expense | 31,000,000 | 20,000,000 | 29,000,000 |
Operating Expense [Member] | ' | ' | ' |
Allocated Stock-Based Compensation Expense [Line Items] | ' | ' | ' |
Allocated Share-based Compensation Expense | 121,000,000 | 100,000,000 | 130,000,000 |
Continuing Operations [Member] | ' | ' | ' |
Allocated Stock-Based Compensation Expense [Line Items] | ' | ' | ' |
Allocated Share-based Compensation Expense | -121,000,000 | -100,000,000 | -130,000,000 |
Income Tax Benefit [Member] | ' | ' | ' |
Allocated Stock-Based Compensation Expense [Line Items] | ' | ' | ' |
Allocated Share-based Compensation Expense | 40,000,000 | 34,000,000 | 43,000,000 |
Net Income (Loss) [Member] | ' | ' | ' |
Allocated Stock-Based Compensation Expense [Line Items] | ' | ' | ' |
Allocated Share-based Compensation Expense | -81,000,000 | -66,000,000 | -87,000,000 |
Basic Loss Per Share [Member] | ' | ' | ' |
Allocated Stock-Based Compensation Expense [Line Items] | ' | ' | ' |
Allocated Share-based Compensation Expense | -0.16 | -0.12 | -0.16 |
Diluted Loss Per Share [Member] | ' | ' | ' |
Allocated Stock-Based Compensation Expense [Line Items] | ' | ' | ' |
Allocated Share-based Compensation Expense | -0.15 | -0.12 | -0.16 |
Net Cash Required By Operating Activities [Member] | ' | ' | ' |
Allocated Stock-Based Compensation Expense [Line Items] | ' | ' | ' |
Allocated Share-based Compensation Expense | -72,000,000 | -79,000,000 | -50,000,000 |
Net Cash Provided By Financing Activities [Member] | ' | ' | ' |
Allocated Stock-Based Compensation Expense [Line Items] | ' | ' | ' |
Allocated Share-based Compensation Expense | $72,000,000 | $79,000,000 | $50,000,000 |
STOCKBASED_COMPENSATION_PLANS_3
STOCK-BASED COMPENSATION PLANS (Rollforward of Stock Options) (Details) (USD $) | 12 Months Ended | |||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' | ' |
Beginning Balance, Options | 15,863,887 | 19,454,934 | ' | 21,509,035 |
Beginning Balance, Outstanding Weighted-Average Exercise Price | $65.59 | $58.56 | ' | $51.78 |
Options, Granted | 2,302,786 | 1,912,030 | 2,300,980 | ' |
Outstanding Weighted-Average Exercise Price, Granted | $84.97 | $90.70 | $74.76 | ' |
Options, Exercised | -4,537,028 | -5,306,225 | -3,967,203 | ' |
Outstanding Weighted-Average Exercise Price, Exercised | $54.72 | $48.33 | $29.51 | ' |
Options, Forfeited | -192,010 | -196,852 | -387,878 | ' |
Outstanding Weighted-Average Exercise Price, Forfeited | $90.06 | $79.95 | $76.12 | ' |
Ending Balance, Options | 13,437,635 | 15,863,887 | 19,454,934 | 21,509,035 |
Ending Balance, Outstanding Weighted-Average Exercise Price | $72.23 | $65.59 | $58.56 | $51.78 |
STOCKBASED_COMPENSATION_PLANS_4
STOCK-BASED COMPENSATION PLANS (Restricted Stock) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Restricted Stock [Member] | ' | ' | ' |
Stock Based compensation other than options [Roll Forward] | ' | ' | ' |
Nonvested as of | 7,951 | ' | ' |
Granted | 4,831 | ' | ' |
Vested | -8,740 | ' | ' |
Forfeitures | 0 | ' | ' |
Nonvested as of | 4,042 | 7,951 | ' |
Other Than Options Weighted Average Fair Value [Abstract] | ' | ' | ' |
Nonvested as of | $76.10 | ' | ' |
Granted | $108.10 | ' | ' |
Vested | $77.48 | ' | ' |
Forfeitures | $0 | ' | ' |
Nonvested as of | $111.37 | $76.10 | ' |
Pre-tax unrecognized compensation expense, net of estimated forfeitures as applicable | $0 | ' | ' |
Weighted average remaining vesting period of expense recognition/requisite service periods in years | '2 years | ' | ' |
Additional Information [Abstract] | ' | ' | ' |
Weighted-average grant-date fair value during fiscal year | $108.10 | $96.06 | $68.93 |
Total fair value of equity vested during fiscal year | 1 | 0 | 1 |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Stock Based compensation other than options [Roll Forward] | ' | ' | ' |
Nonvested as of | 1,656,187 | ' | ' |
Granted | 1,185,136 | ' | ' |
Vested | -428,942 | ' | ' |
Forfeitures | -183,384 | ' | ' |
Nonvested as of | 2,228,997 | 1,656,187 | ' |
Other Than Options Weighted Average Fair Value [Abstract] | ' | ' | ' |
Nonvested as of | $77.15 | ' | ' |
Granted | $102.10 | ' | ' |
Vested | $73.91 | ' | ' |
Forfeitures | $95.30 | ' | ' |
Nonvested as of | $89.54 | $77.15 | ' |
Pre-tax unrecognized compensation expense, net of estimated forfeitures as applicable | 94 | ' | ' |
Weighted average remaining vesting period of expense recognition/requisite service periods in years | '2 years | ' | ' |
Additional Information [Abstract] | ' | ' | ' |
Weighted-average grant-date fair value during fiscal year | $102.10 | $88.80 | $71.65 |
Total fair value of equity vested during fiscal year | 32 | 16 | 102 |
Directors Deferred Stock [Member] | ' | ' | ' |
Stock Based compensation other than options [Roll Forward] | ' | ' | ' |
Nonvested as of | 0 | ' | ' |
Granted | 18,903 | ' | ' |
Vested | -18,903 | ' | ' |
Forfeitures | 0 | ' | ' |
Nonvested as of | 0 | 0 | ' |
Other Than Options Weighted Average Fair Value [Abstract] | ' | ' | ' |
Nonvested as of | $0 | ' | ' |
Granted | $98.38 | ' | ' |
Vested | $98.38 | ' | ' |
Forfeitures | $0 | ' | ' |
Nonvested as of | $0 | $0 | ' |
Pre-tax unrecognized compensation expense, net of estimated forfeitures as applicable | 0 | ' | ' |
Weighted average remaining vesting period of expense recognition/requisite service periods in years | '0 years | ' | ' |
Additional Information [Abstract] | ' | ' | ' |
Weighted-average grant-date fair value during fiscal year | $98.38 | $87.58 | $68.93 |
Total fair value of equity vested during fiscal year | $0 | $2 | $1 |
STOCKBASED_COMPENSATION_PLANS_5
STOCK-BASED COMPENSATION PLANS (Assumptions Used to Value Stock Options) (Details) | 12 Months Ended | ||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' |
Expected Dividend Yield | 1.70% | 1.90% | 1.80% |
Expected Volatility Minimum | 19.00% | 23.00% | 28.00% |
Expected Volatility Maximum | 36.00% | 37.00% | 39.00% |
Weighted-Average Volatility | 27.50% | 30.40% | 37.00% |
Risk Free Interest Rate Minimum | 0.70% | 0.85% | 0.98% |
Risk Free Interest Rate Maximum | 2.34% | 2.00% | 1.62% |
Weighted-Average Risk-Free Interest Rate | 1.66% | 1.14% | 1.57% |
Expected Option Life (in years) | '6 years | '7 years | '6 years |
CAPITAL_STOCK_Common_Stock_and
CAPITAL STOCK (Common Stock and Preferred Stock) (Details) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
CAPITAL STOCK [Abstract] | ' | ' |
Common stock, Authorized | 1,500,000,000 | 1,500,000,000 |
Common stock, Par value | $0.01 | $0.01 |
Preferred Stock Authorized | 20,000,000 | 20,000,000 |
Preferred stock, Par value | $0.01 | $0.01 |
Preferred stock, Outstanding | 0 | 0 |
Common stock, Outstanding | 485,261,017 | 529,029,712 |
CAPITAL_STOCK_Treasury_Stock_D
CAPITAL STOCK (Treasury Stock) (Details) (USD $) | 12 Months Ended | 12 Months Ended | 24 Months Ended | 12 Months Ended | 36 Months Ended | 7 Months Ended | 12 Months Ended | ||||||||||
Share data in Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2014 | Jul. 07, 2014 | Jul. 01, 2014 | Aug. 31, 2014 | Jun. 30, 2016 | Jun. 30, 2014 | Aug. 31, 2014 | Aug. 31, 2013 | Jun. 30, 2016 | Jun. 30, 2013 | Aug. 20, 2013 | Aug. 31, 2014 | Aug. 31, 2013 | Jun. 30, 2012 |
Accelerated Share Repurchase [Member] | Accelerated Share Repurchase [Member] | Accelerated Share Repurchase [Member] | Repurchase Plan 2014 [Member] [Member] | Repurchase Plan 2014 [Member] [Member] | Repurchase Plan 2014 [Member] [Member] | Repurchase Program 2013 [Member] | Repurchase Program 2013 [Member] | Repurchase Program 2013 [Member] | Repurchase Program 2013 [Member] | Repurchase Program 2012[Member] | Repurchase Program 2012[Member] | Repurchase Program 2012[Member] | Repurchase Program 2012[Member] | ||||
Treasury Stock Repurchase [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchase Program, Authorized Amount | ' | ' | ' | ' | ' | $6,000,000,000 | ' | ' | $10,000,000,000 | ' | ' | ' | $2,000,000,000 | ' | ' | ' | $1,000,000,000 |
Share Repurchase, Initial Shares Delivered | ' | ' | ' | ' | 38.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forward Contract Indexed to Issuer's Equity, Settlement Alternatives, Cash, at Fair Value | ' | ' | ' | 1,200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock repurchase program period | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | '3 years | ' | '3 years | ' | ' | ' |
Stock Repurchased During Period, Shares | ' | ' | ' | ' | ' | ' | 31.6 | ' | ' | 17 | 0.3 | ' | ' | ' | ' | 9.9 | ' |
Share purchases under plans | 7,082,000,000 | 1,095,000,000 | 432,000,000 | 6,000,000,000 | ' | ' | 5,100,000,000 | ' | ' | 1,970,000,000 | 30,000,000 | ' | ' | ' | 1,000,000,000 | ' | ' |
Share Repurchase, Initial Payment | ' | ' | ' | ' | $4,800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | ($1,114) | ($1,278) | ($1,036) | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 119 | ' | ' | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 45 | ' | ' | |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI for Available for Sale Securities, Net of Tax | -3 | -6 | 5 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | -17 | 66 | 50 | |
Total Other Comprehensive Income (Loss), Net of Tax | 164 | -242 | -920 | |
Other comprehensive (income) loss, reclassification adjustment, available for sale securities, tax | 2 | ' | ' | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | -9 | 39 | 35 | |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax | -19 | ' | ' | |
Accumulated Translation Adjustment [Member] | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | -731 | -831 | -602 | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 100 | ' | ' | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | ' | ' | |
Total Other Comprehensive Income (Loss), Net of Tax | 100 | -229 | ' | |
Available-for-sale Securities [Member] | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | -5 | ' | ' | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 5 | 8 | 5 | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | ' | ' | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | -3 | ' | ' | |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI for Available for Sale Securities, Net of Tax | -3 | ' | ' | |
Total Other Comprehensive Income (Loss), Net of Tax | -3 | 3 | ' | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 26 | ' | ' | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | -167 | -115 | 29 | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | -69 | ' | ' | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 17 | ' | ' | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 17 | ' | ' | |
Total Other Comprehensive Income (Loss), Net of Tax | -52 | -144 | ' | |
Accumulated Defined Benefit Plans Adjustment [Member] | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | -221 | -340 | -468 | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 88 | ' | ' | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 31 | ' | ' | |
Total Other Comprehensive Income (Loss), Net of Tax | 119 | 128 | ' | |
Pension Plan [Member] | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 50 | ' | ' | |
Selling, General and Administrative Expenses [Member] | Pension Plan [Member] | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 36 | ' | ' | |
Other Expense [Member] | Impairment Of Asset [Member] | Available-for-sale Securities [Member] | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 1 | ' | ' | |
Other Expense [Member] | Sale of Securities [Member] | Available-for-sale Securities [Member] | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | -6 | ' | ' | |
Commodity Contract [Member] | Cost of Goods Sold [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 14 | ' | ' | |
Interest Rate Contracts [Member] | Interest Expense [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 12 | ' | ' | |
Foreign Exchange Contract [Member] | Sales [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | -3 | ' | ' | |
Foreign Exchange Contract [Member] | Cost of Goods Sold [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 3 | ' | ' | |
Inventory [Member] | Pension Plan [Member] | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | $14 | [1] | ' | ' |
[1] | (1)Â 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 $14 million of net periodic benefit cost to inventory, of which approximately $14 million was recognized in cost of goods sold during the twelve months ended Aug. 31, 2014. See Note 17 - Postretirement Benefits - Pensions - and Note 18 - Postretirement Benefits - Health Care and Other Postemployment Benefits - for additional information. |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) | 12 Months Ended | ||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Earnings Per Share [Abstract] | ' | ' | ' |
Weighted-Average Number of Common Shares | 519.3 | 533.7 | 534.1 |
Dilutive Potential Common Shares | 5.6 | 6 | 6.1 |
Antidilutive Potential Common Shares | 1.7 | 1.8 | 6.7 |
Shares Excluded From Computation of Dilutive Potential Shares with Exercise Prices Greater than the Average Market Price of Common Shares for the Period | 0 | 0.1 | 4.5 |
SUPPLEMENTAL_CASH_FLOW_INFORMA1
SUPPLEMENTAL CASH FLOW INFORMATION SUPPLEMENTAL CASH FLOW INFORMATION (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Supplemental Cash Flow Information [Abstract] | ' | ' | ' |
Interest | $158 | $141 | $159 |
Taxes | $1,019 | $907 | $688 |
SUPPLEMENTAL_CASH_FLOW_INFORMA2
SUPPLEMENTAL CASH FLOW INFORMATION Narrative (Details) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
In Millions, unless otherwise specified | |||
Noncash Or Part Noncash Acquisitions [Line Items] | ' | ' | ' |
Dividends payable | $239 | $228 | $200 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Contractual Obligations) (Details) (USD $) | Aug. 31, 2014 | |
In Millions, unless otherwise specified | ||
Contractual Obligations [Line Items] | ' | |
Total | $17,383 | |
2015 | 2,135 | |
2016 | 1,074 | |
2017 | 1,555 | |
2018 | 928 | |
2019 | 1,350 | |
2020 beyond | 10,254 | |
Total Debt, including Capital Lease Obligations [Member] | ' | |
Contractual Obligations [Line Items] | ' | |
Total | 7,761 | |
2015 | 233 | |
2016 | 307 | |
2017 | 901 | |
2018 | 302 | |
2019 | 802 | |
2020 beyond | 5,216 | |
Interest Payments Relating to Long-Term Debt And Capital Lease Obligations [Member] | ' | |
Contractual Obligations [Line Items] | ' | |
Total | 5,755 | [1] |
2015 | 273 | [1] |
2016 | 272 | [1] |
2017 | 261 | [1] |
2018 | 255 | [1] |
2019 | 236 | [1] |
2020 beyond | 4,458 | [1] |
Operating Lease Obligations [Member] | ' | |
Contractual Obligations [Line Items] | ' | |
Total | 556 | |
2015 | 133 | |
2016 | 102 | |
2017 | 80 | |
2018 | 65 | |
2019 | 57 | |
2020 beyond | 119 | |
Uncompleted additions to property [Member] | ' | |
Contractual Obligations [Line Items] | ' | |
Total | 79 | |
2015 | 72 | |
2016 | 7 | |
2017 | 0 | |
2018 | 0 | |
2019 | 0 | |
2020 beyond | 0 | |
Commitments to purchase inventories [Member] | ' | |
Contractual Obligations [Line Items] | ' | |
Total | 2,079 | |
2015 | 1,201 | |
2016 | 255 | |
2017 | 217 | |
2018 | 216 | |
2019 | 186 | |
2020 beyond | 4 | |
Commitments to purchase breeding research [Member] | ' | |
Contractual Obligations [Line Items] | ' | |
Total | 605 | |
2015 | 55 | |
2016 | 55 | |
2017 | 55 | |
2018 | 55 | |
2019 | 55 | |
2020 beyond | 330 | |
R and D alliances and joint venture obligations [Member] | ' | |
Contractual Obligations [Line Items] | ' | |
Total | 182 | |
2015 | 53 | |
2016 | 54 | |
2017 | 32 | |
2018 | 28 | |
2019 | 8 | |
2020 beyond | 7 | |
Other purchase obligations [Member] | ' | |
Contractual Obligations [Line Items] | ' | |
Total | 15 | |
2015 | 12 | |
2016 | 1 | |
2017 | 1 | |
2018 | 1 | |
2019 | 0 | |
2020 beyond | 0 | |
Postretirement liabilities [Member] | ' | |
Contractual Obligations [Line Items] | ' | |
Total | 76 | [2] |
2015 | 76 | [2] |
2016 | 0 | [2] |
2017 | 0 | [2] |
2018 | 0 | [2] |
2019 | 0 | [2] |
2020 beyond | 0 | [2] |
Unrecognized tax benefits [Member] | ' | |
Contractual Obligations [Line Items] | ' | |
Total | 87 | [3] |
2015 | 0 | [3] |
2016 | 0 | [3] |
2017 | 0 | [3] |
2018 | 0 | [3] |
2019 | 0 | [3] |
2020 beyond | 0 | [3] |
Other liabilities [Member] | ' | |
Contractual Obligations [Line Items] | ' | |
Total | 188 | |
2015 | 27 | |
2016 | 21 | |
2017 | 8 | |
2018 | 6 | |
2019 | 6 | |
2020 beyond | $120 | |
[1] | For variable rate debt, interest is calculated using the applicable rates as of Aug. 31, 2014. | |
[2] | Includes the company’s planned pension and other postretirement benefit contributions for 2015. The actual amounts funded in 2015 may differ from the amounts listed above. Contributions in 2016 and beyond are excluded as those amounts are unknown. Refer to Note 17 - Postretirement Benefits - Pensions - and Note 18 - Postretirement Benefits - Health Care and Other Postemployment Benefits - for more information. | |
[3] | Unrecognized tax benefits relate to uncertain tax positions recorded under the Income Taxes topic of the ASC. The company is unable to reasonably predict the timing of tax settlements, as tax audits can involve complex issues and the resolution of those issues may span multiple years, particularly if subject to negotiation or litigation. See Note 13 - Income Taxes - for more information. |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Leases and Guarantees Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' |
Rent Expense | $272 | $259 | $248 |
Guarantees for indemnification liability | $1 | $1 | ' |
COMMITMENTS_AND_CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Trade Receivables by Customer Concentration) (Details) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | ||
In Millions, unless otherwise specified | ||||||
Accounts Receivable By Geographical Location [Line Items] | ' | ' | ' | ' | ||
Gross Trade Receivables | $2,086 | $1,783 | ' | ' | ||
Less: Allowance for Doubtful Accounts | -72 | -68 | -64 | -98 | ||
Net Trade Receivables | 2,014 | 1,715 | ' | ' | ||
Europe-Africa [Member] | ' | ' | ' | ' | ||
Accounts Receivable By Geographical Location [Line Items] | ' | ' | ' | ' | ||
Gross Trade Receivables | 522 | [1] | 504 | [1] | ' | ' |
U.S. Agricultural Product Distributors [Member] | ' | ' | ' | ' | ||
Accounts Receivable By Geographical Location [Line Items] | ' | ' | ' | ' | ||
Gross Trade Receivables | 579 | 455 | ' | ' | ||
Argentina [Member] | ' | ' | ' | ' | ||
Accounts Receivable By Geographical Location [Line Items] | ' | ' | ' | ' | ||
Gross Trade Receivables | 327 | [1] | 298 | [1] | ' | ' |
Asia-Pacific [Member] | ' | ' | ' | ' | ||
Accounts Receivable By Geographical Location [Line Items] | ' | ' | ' | ' | ||
Gross Trade Receivables | 175 | [1] | 151 | [1] | ' | ' |
Mexico [Member] | ' | ' | ' | ' | ||
Accounts Receivable By Geographical Location [Line Items] | ' | ' | ' | ' | ||
Gross Trade Receivables | 160 | [1] | 132 | [1] | ' | ' |
Brazil [Member] | ' | ' | ' | ' | ||
Accounts Receivable By Geographical Location [Line Items] | ' | ' | ' | ' | ||
Gross Trade Receivables | 178 | [1] | 101 | [1] | ' | ' |
Canada [Member] | ' | ' | ' | ' | ||
Accounts Receivable By Geographical Location [Line Items] | ' | ' | ' | ' | ||
Gross Trade Receivables | 22 | [1] | 23 | [1] | ' | ' |
Other [Member] | ' | ' | ' | ' | ||
Accounts Receivable By Geographical Location [Line Items] | ' | ' | ' | ' | ||
Gross Trade Receivables | $123 | $119 | ' | ' | ||
[1] | Represents customer receivables within the specified geography. |
COMMITMENTS_AND_CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES (Environmental Liabilities Narrative) (Details) | 12 Months Ended |
Aug. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Discount Rate Minimum | 2.60% |
Discount Rate Maximum | 3.50% |
Environmental remediation of sites company involvement minimum | 1.00% |
Environmental remediation of sites company involvement maximum | 100.00% |
COMMITMENTS_AND_CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES (Discounted and Undiscounted Environmental and Litigation Liabilities) (Details) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
In Millions, unless otherwise specified | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' | ' |
Aggregate Undiscounted Amount | $149 | ' | ' | ' |
2015 | 27 | ' | ' | ' |
2016 | 21 | ' | ' | ' |
2017 | 8 | ' | ' | ' |
2018 | 6 | ' | ' | ' |
2019 | 6 | ' | ' | ' |
Undiscounted aggregate expected payments after 2019 | 120 | ' | ' | ' |
Aggregate Amount to be Discounted as of Aug. 31, 2014 | 188 | ' | ' | ' |
Discount, as of Aug. 31, 2014 | -46 | ' | ' | ' |
Aggregate Discounted Amount Accrued as of Aug. 31, 2014 | 142 | ' | ' | ' |
Total Environmental and Litigation Reserve as of Aug. 31, 2014 | $291 | $271 | $270 | $265 |
COMMITMENTS_AND_CONTINGENCIES_6
COMMITMENTS AND CONTINGENCIES (Environmental and Litigation Liabilities) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' |
Beginning Balance | $271 | $270 | $265 |
Payments | -69 | -35 | -53 |
Accretion | 7 | 5 | 6 |
Adjustments to liabilities recognized | 82 | 31 | 52 |
Ending Balance | $291 | $271 | $270 |
COMMITMENTS_AND_CONTINGENCIES_7
COMMITMENTS AND CONTINGENCIES (Litigation Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 26 Months Ended | |||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Dec. 17, 2004 | Nov. 30, 2009 |
Medical Monitoring Program [Member] | Medical Monitoring Program [Member] | Medical Monitoring Program [Member] | Property Remediation Plan [Member] | Virdie Allen [Member] | Putnam County, West Virginia [Member] | |
Primary Fund [Member] | Additional Fund [Member] | plaintiff | claim | |||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' |
Number of plaintiffs | ' | ' | ' | ' | 15 | ' |
Settlement agreement terms | '30 years | ' | ' | '3 years | ' | ' |
Litigation settlement, gross | ' | $21 | $63 | $9 | ' | ' |
Number of claims filed | ' | ' | ' | ' | ' | 200 |
COMMITMENTS_AND_CONTINGENCIES_8
COMMITMENTS AND CONTINGENCIES Off-Balance Sheet Arrangements (Details) (USD $) | Dec. 31, 2013 |
Off Balance Sheet Arrangement [Abstract] | ' |
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Asset | $470 |
SEGMENT_AND_GEOGRAPHIC_DATA_Op
SEGMENT AND GEOGRAPHIC DATA (Operating Segment Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Aug. 31, 2014 | 31-May-14 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |||||
segment | ||||||||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Number of Reportable Segments | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | |||||
Net Sales | $2,630 | $4,250 | $5,832 | $3,143 | $2,202 | $4,248 | $5,472 | $2,939 | $15,855 | [1] | $14,861 | [1] | $13,504 | [1] | ||
Gross Profit | 1,233 | 2,331 | 3,447 | 1,563 | 924 | 2,262 | 3,070 | 1,397 | 8,574 | 7,653 | 7,045 | |||||
EBIT | ' | ' | ' | ' | ' | ' | ' | ' | 3,952 | [2],[3],[4] | 3,460 | [2],[3],[4] | 3,047 | [2],[3],[4] | ||
Depreciation and Amortization Expense | ' | ' | ' | ' | ' | ' | ' | ' | 691 | 615 | 622 | |||||
Equity Affiliate Income | ' | ' | ' | ' | ' | ' | ' | ' | 8 | [5] | -15 | [5] | -10 | [5] | ||
Total Assets | 21,981 | [6] | ' | ' | ' | 20,664 | [6] | ' | ' | ' | 21,981 | [6] | 20,664 | [6] | 20,224 | [6] |
Property, Plant and Equipment Purchases | ' | ' | ' | ' | ' | ' | ' | ' | 1,005 | 741 | 646 | |||||
Max Exposure to Investments | 126 | ' | ' | ' | 91 | ' | ' | ' | 126 | 91 | 142 | |||||
Income from operations of discontinued businesses | ' | ' | ' | ' | ' | ' | ' | ' | 22 | 17 | 10 | |||||
Total Seeds and Genomics [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 10,740 | [1] | 10,340 | [1] | 9,789 | [1] | ||
Gross Profit | ' | ' | ' | ' | ' | ' | ' | ' | 6,596 | 6,083 | 6,059 | |||||
EBIT | ' | ' | ' | ' | ' | ' | ' | ' | 2,607 | [3],[4] | 2,412 | [3],[4] | 2,570 | [3],[4] | ||
Depreciation and Amortization Expense | ' | ' | ' | ' | ' | ' | ' | ' | 568 | 495 | 510 | |||||
Equity Affiliate Income | ' | ' | ' | ' | ' | ' | ' | ' | 8 | [5] | -15 | [5] | -10 | [5] | ||
Total Assets | 17,598 | [6] | ' | ' | ' | 16,246 | [6] | ' | ' | ' | 17,598 | [6] | 16,246 | [6] | 15,944 | [5] |
Property, Plant and Equipment Purchases | ' | ' | ' | ' | ' | ' | ' | ' | 831 | 619 | 493 | |||||
Max Exposure to Investments | 126 | ' | ' | ' | 91 | ' | ' | ' | 126 | 91 | 142 | |||||
Corn seed and traits [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 6,401 | [1] | 6,596 | [1] | 5,814 | [1] | ||
Gross Profit | ' | ' | ' | ' | ' | ' | ' | ' | 3,932 | 3,929 | 3,589 | |||||
Soybean seed and traits [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 2,102 | [1] | 1,653 | [1] | 1,771 | [1] | ||
Gross Profit | ' | ' | ' | ' | ' | ' | ' | ' | 1,364 | 948 | 1,160 | |||||
Cotton seed and traits [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 665 | [1] | 695 | [1] | 779 | [1] | ||
Gross Profit | ' | ' | ' | ' | ' | ' | ' | ' | 461 | 519 | 585 | |||||
Vegetable seeds [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 867 | [1] | 821 | [1] | 851 | [1] | ||
Gross Profit | ' | ' | ' | ' | ' | ' | ' | ' | 401 | 337 | 419 | |||||
All other crops seeds and traits [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 705 | [1] | 575 | [1] | 574 | [1] | ||
Gross Profit | ' | ' | ' | ' | ' | ' | ' | ' | 438 | 350 | 306 | |||||
Total Agricultural Productivity [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 5,115 | [1] | 4,521 | [1] | 3,715 | [1] | ||
Gross Profit | ' | ' | ' | ' | ' | ' | ' | ' | 1,978 | 1,570 | 986 | |||||
EBIT | ' | ' | ' | ' | ' | ' | ' | ' | 1,345 | [3],[4] | 1,048 | [3],[4] | 477 | [3],[4] | ||
Depreciation and Amortization Expense | ' | ' | ' | ' | ' | ' | ' | ' | 123 | 120 | 112 | |||||
Equity Affiliate Income | ' | ' | ' | ' | ' | ' | ' | ' | 0 | [5] | 0 | [5] | 0 | [5] | ||
Total Assets | 4,383 | [6] | ' | ' | ' | 4,418 | [6] | ' | ' | ' | 4,383 | [6] | 4,418 | [6] | 4,280 | [6] |
Property, Plant and Equipment Purchases | ' | ' | ' | ' | ' | ' | ' | ' | 174 | 122 | 153 | |||||
Max Exposure to Investments | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | 0 | 0 | |||||
Agricultural productivity [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 5,115 | [1] | 4,521 | [1] | 3,715 | [1] | ||
Gross Profit | ' | ' | ' | ' | ' | ' | ' | ' | $1,978 | $1,570 | $986 | |||||
[1] | Represents net sales from continuing operations. | |||||||||||||||
[2] | Includes the income from operations of discontinued businesses and pre-tax noncontrolling interest. | |||||||||||||||
[3] | Agricultural Productivity EBIT includes income of $22 million, $17 million and $10 million from discontinued operations for fiscal years 2014, 2013 and 2012, respectively. | |||||||||||||||
[4] | EBIT is defined as earnings (loss) before interest and taxes; see the following table for reconciliation. Earnings (loss) is intended to mean net income (loss) attributable to Monsanto Company as presented in the Statements of Consolidated Operations under generally accepted accounting principles. EBIT is an operating performance measure for the two reportable segments. | |||||||||||||||
[5] | Equity affiliate loss (income) is included in Other expense, net in the Statements of Consolidated Operations. | |||||||||||||||
[6] | Includes assets recorded in continuing operations and discontinued operations. |
SEGMENT_AND_GEOGRAPHIC_DATA_Th
SEGMENT AND GEOGRAPHIC DATA (The reconciliation of EBIT to Net Income) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Aug. 31, 2014 | 31-May-14 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |||
Segment Reporting [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
EBIT | ' | ' | ' | ' | ' | ' | ' | ' | $3,952 | [1],[2],[3] | $3,460 | [1],[2],[3] | $3,047 | [1],[2],[3] |
Interest Expense — Net | ' | ' | ' | ' | ' | ' | ' | ' | 146 | 80 | 114 | |||
Income Tax Provision | ' | ' | ' | ' | ' | ' | ' | ' | 1,066 | [4] | 898 | [4] | 888 | [4] |
Net Income Attributable to Monsanto Company | ($156) | $858 | $1,670 | $368 | ($249) | $909 | $1,483 | $339 | $2,740 | $2,482 | $2,045 | |||
[1] | Includes the income from operations of discontinued businesses and pre-tax noncontrolling interest. | |||||||||||||
[2] | Agricultural Productivity EBIT includes income of $22 million, $17 million and $10 million from discontinued operations for fiscal years 2014, 2013 and 2012, respectively. | |||||||||||||
[3] | EBIT is defined as earnings (loss) before interest and taxes; see the following table for reconciliation. Earnings (loss) is intended to mean net income (loss) attributable to Monsanto Company as presented in the Statements of Consolidated Operations under generally accepted accounting principles. EBIT is an operating performance measure for the two reportable segments. | |||||||||||||
[4] | Includes the income tax provision from continuing operations, the income tax benefit on noncontrolling interest and the income tax provision on discontinued operations. |
SEGMENT_AND_GEOGRAPHIC_DATA_Ne
SEGMENT AND GEOGRAPHIC DATA (Net Sales And Long Lived Assets by World Area) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Aug. 31, 2014 | 31-May-14 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net Sales to Unaffiliated Customers | $2,630 | $4,250 | $5,832 | $3,143 | $2,202 | $4,248 | $5,472 | $2,939 | $15,855 | [1] | $14,861 | [1] | $13,504 | [1] |
Long-Lived Assets | 11,856 | ' | ' | ' | 10,133 | ' | ' | ' | 11,856 | 10,133 | ' | |||
UNITED STATES | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net Sales to Unaffiliated Customers | ' | ' | ' | ' | ' | ' | ' | ' | 8,625 | 8,044 | 7,367 | |||
Long-Lived Assets | 8,174 | ' | ' | ' | 6,881 | ' | ' | ' | 8,174 | 6,881 | ' | |||
Europe-Africa [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net Sales to Unaffiliated Customers | ' | ' | ' | ' | ' | ' | ' | ' | 2,192 | 2,042 | 1,716 | |||
Long-Lived Assets | 1,460 | ' | ' | ' | 1,345 | ' | ' | ' | 1,460 | 1,345 | ' | |||
BRAZIL | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net Sales to Unaffiliated Customers | ' | ' | ' | ' | ' | ' | ' | ' | 1,778 | 1,547 | 1,588 | |||
Long-Lived Assets | 871 | ' | ' | ' | 696 | ' | ' | ' | 871 | 696 | ' | |||
ARGENTINA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net Sales to Unaffiliated Customers | ' | ' | ' | ' | ' | ' | ' | ' | 1,092 | 1,121 | 873 | |||
Long-Lived Assets | 396 | ' | ' | ' | 347 | ' | ' | ' | 396 | 347 | ' | |||
Asia-Pacific [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net Sales to Unaffiliated Customers | ' | ' | ' | ' | ' | ' | ' | ' | 837 | 806 | 837 | |||
Long-Lived Assets | 315 | ' | ' | ' | 270 | ' | ' | ' | 315 | 270 | ' | |||
CANADA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net Sales to Unaffiliated Customers | ' | ' | ' | ' | ' | ' | ' | ' | 636 | 615 | 541 | |||
Long-Lived Assets | 124 | ' | ' | ' | 100 | ' | ' | ' | 124 | 100 | ' | |||
MEXICO | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net Sales to Unaffiliated Customers | ' | ' | ' | ' | ' | ' | ' | ' | 503 | 466 | 385 | |||
Long-Lived Assets | 135 | ' | ' | ' | 118 | ' | ' | ' | 135 | 118 | ' | |||
Other [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net Sales to Unaffiliated Customers | ' | ' | ' | ' | ' | ' | ' | ' | 192 | 220 | 197 | |||
Long-Lived Assets | $381 | ' | ' | ' | $376 | ' | ' | ' | $381 | $376 | ' | |||
[1] | Represents net sales from continuing operations. |
QUARTERLY_DATA_UNAUDITED_Detai
QUARTERLY DATA (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Aug. 31, 2014 | 31-May-14 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |||||||||||
Selected Quarterly Financial Information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net Sales | $2,630 | $4,250 | $5,832 | $3,143 | $2,202 | $4,248 | $5,472 | $2,939 | $15,855 | [1] | $14,861 | [1] | $13,504 | [1] | ||||||||
Gross Profit | 1,233 | 2,331 | 3,447 | 1,563 | 924 | 2,262 | 3,070 | 1,397 | 8,574 | 7,653 | 7,045 | |||||||||||
Income (Loss) from Continuing Operations Attributable to Monsanto Company | -156 | 858 | 1,666 | 359 | -249 | 909 | 1,479 | 332 | 2,727 | 2,471 | 2,039 | |||||||||||
Income on Discontinued Operations | 0 | 0 | 4 | 9 | 0 | 0 | 4 | 7 | 13 | 11 | 6 | |||||||||||
Net Income | -163 | 880 | 1,672 | 373 | -239 | 932 | 1,483 | 349 | 2,762 | 2,525 | 2,093 | |||||||||||
Net Income Attributable to Monsanto Company | ($156) | $858 | $1,670 | $368 | ($249) | $909 | $1,483 | $339 | $2,740 | $2,482 | $2,045 | |||||||||||
Basic (Loss) Earnings per Share Attributable to Monsanto Company: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Income (Loss) from continuing operations (in dollars per share) | ($0.31) | [2] | $1.64 | [2] | $3.18 | [2] | $0.68 | [2] | ($0.47) | [2] | $1.70 | [2] | $2.77 | [2] | $0.62 | [2] | $5.25 | $4.63 | [2] | $3.82 | ||
Income (Loss) on discontinued operations (in dollars per share) | $0 | [2] | $0 | [2] | $0 | [2] | $0.02 | [2] | $0 | [2] | $0 | [2] | $0.01 | [2] | $0.01 | [2] | $0.03 | $0.02 | [2] | $0.01 | ||
Net Income Attributable to Monsanto Company (in dollars per share) | ($0.31) | [2] | $1.64 | [2] | $3.18 | [2] | $0.70 | [2] | ($0.47) | [2] | $1.70 | [2] | $2.78 | [2] | $0.63 | [2] | $5.28 | $4.65 | [2] | $3.83 | ||
Diluted (Loss) Earnings per Share Attributable to Monsanto Company: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Income (Loss) from continuing operations (in dollars per share) | ($0.31) | [2] | $1.62 | [2] | $3.15 | [2] | $0.67 | [2] | ($0.47) | [2] | $1.68 | [2] | $2.73 | [2] | $0.62 | [2] | $5.19 | $4.58 | [2] | $3.78 | ||
Income on discontinued operations (in dollars per share) | $0 | [2] | $0 | [2] | $0 | [2] | $0.02 | [2] | $0 | [2] | $0 | [2] | $0.01 | [2] | $0.01 | [2] | $0.03 | $0.02 | [2] | $0.01 | ||
Net Income Attributable to Monsanto Company (in dollars per share) | ($0.31) | [2] | $1.62 | [2] | $3.15 | [2] | $0.69 | [2] | ($0.47) | [2] | $1.68 | [2] | $2.74 | [2] | $0.63 | [2] | $5.22 | $4.60 | [2] | $3.79 | ||
[1] | Represents net sales from continuing operations. | |||||||||||||||||||||
[2] | Because Monsanto reported a loss from continuing operations in the fourth quarter 2014 and 2013, generally accepted accounting principles require diluted loss per share to be calculated using weighted-average common shares outstanding, excluding common stock equivalents. As a result, the quarterly earnings (loss) per share may not total to the full-year amount. |