Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
May. 31, 2015 | Jun. 22, 2015 | |
Document and Entity Information [Abstract] | ||
Document type | 10-Q | |
Document period end date | May 31, 2015 | |
Amendment flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | MONSANTO CO /NEW/ | |
Entity Central Index Key | 1,110,783 | |
Current Fiscal Year End Date | --08-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity common stock shares outstanding | 467,834,595 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
Statements of Consolidated Oper
Statements of Consolidated Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | ||
Income Statement [Abstract] | |||||
Net Sales | [1] | $ 4,579 | $ 4,250 | $ 12,646 | $ 13,225 |
Cost of goods sold | 1,843 | 1,919 | 5,460 | 5,884 | |
Gross Profit | 2,736 | 2,331 | 7,186 | 7,341 | |
Operating Expenses: | |||||
Selling, general and administrative expenses | 718 | 655 | 1,945 | 1,869 | |
Research and development expenses | 374 | 427 | 1,158 | 1,240 | |
Total Operating Expenses | 1,092 | 1,082 | 3,103 | 3,109 | |
Income from Operations | 1,644 | 1,249 | 4,083 | 4,232 | |
Interest expense | 96 | 42 | 303 | 135 | |
Interest income | (18) | (17) | (84) | (64) | |
Other expense, net | 10 | 3 | 19 | 84 | |
Income from Continuing Operations Before Income Taxes | 1,556 | 1,221 | 3,845 | 4,077 | |
Income tax provision | 401 | 341 | 1,051 | 1,165 | |
Income from Continuing Operations Including Portion Attributable to Noncontrolling Interest | 1,155 | 880 | 2,794 | 2,912 | |
Discontinued Operations: | |||||
Income from operations of discontinued businesses | 0 | 0 | 37 | 22 | |
Income tax provision | 0 | 0 | 14 | 9 | |
Income from Discontinued Operations | 0 | 0 | 23 | 13 | |
Net Income | 1,155 | 880 | 2,817 | 2,925 | |
Less: Net income attributable to noncontrolling interest | 14 | 22 | 8 | 29 | |
Net Income Attributable to Monsanto Company | 1,141 | 858 | 2,809 | 2,896 | |
Amounts Attributable to Monsanto Company: | |||||
Income from continuing operations | 1,141 | 858 | 2,786 | 2,883 | |
Income from discontinued operations | 0 | 0 | 23 | 13 | |
Net Income Attributable to Monsanto Company | $ 1,141 | $ 858 | $ 2,809 | $ 2,896 | |
Basic Earnings per Share Attributable to Monsanto Company: | |||||
Income from continuing operations (in dollars per share) | $ 2.41 | $ 1.64 | $ 5.81 | $ 5.49 | |
Income on discontinued operations (in dollars per share) | 0 | 0 | 0.05 | 0.02 | |
Net Income Attributable to Monsanto Company (in dollars per share) | 2.41 | 1.64 | 5.86 | 5.51 | |
Diluted Earnings per Share Attributable to Monsanto Company: | |||||
Income from continuing operations (in dollars per share) | 2.39 | 1.62 | 5.75 | 5.43 | |
Income on discontinued operations (in dollars per share) | 0 | 0 | 0.05 | 0.02 | |
Net Income Attributable to Monsanto Company (in dollars per share) | $ 2.39 | $ 1.62 | $ 5.80 | $ 5.45 | |
Weighted Average Shares Outstanding: | |||||
Basic (in shares) | 472.8 | 524.3 | 479.5 | 525.4 | |
Diluted (in shares) | 477.2 | 529.8 | 484.3 | 531.2 | |
Dividends Declared per Share | $ 0 | $ 0 | $ 0.98 | $ 0.86 | |
[1] | Represents net sales from continuing operations. |
Statements of Consolidated Comp
Statements of Consolidated Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | |
Comprehensive Income Attributable to Monsanto Company | ||||
Net Income Attributable to Monsanto Company | $ 1,141 | $ 858 | $ 2,809 | $ 2,896 |
Other Comprehensive (Loss) Income, Net of Tax: | ||||
Foreign currency translation, net of tax of $18, $(22), $(12), and $(34), respectively | (287) | 153 | (1,393) | 232 |
Postretirement benefit plan activity, net of tax of $6, $5, $18, and $14, respectively | 10 | 8 | 30 | 22 |
Unrealized net (losses) gains on investment holdings, net of tax of $0, $(2), $0, and $3, respectively | 0 | (3) | 0 | 5 |
Realized net gains on investment holdings, net of tax of $0, $(1), $0, and $(1), respectively | 0 | (1) | 0 | 0 |
Unrealized net derivative (losses) gains, net of tax of $(25), $2, $(52), and $(14), respectively | (34) | 6 | (61) | (25) |
Realized net derivative losses, net of tax of $8, $2, $23, and $8, respectively | 11 | 2 | 34 | 13 |
Total Other Comprehensive (Loss) Income, Net of Tax | (300) | 165 | (1,390) | 247 |
Comprehensive Income Attributable to Monsanto Company | 841 | 1,023 | 1,419 | 3,143 |
Comprehensive Income Attributable to Noncontrolling Interests | ||||
Net Income Attributable to Noncontrolling Interests | 14 | 22 | 8 | 29 |
Other Comprehensive (Loss) Income | ||||
Foreign currency translation | (1) | 7 | (2) | 13 |
Total Other Comprehensive (Loss) Income | (1) | 7 | (2) | 13 |
Comprehensive Income Attributable to Noncontrolling Interests | 13 | 29 | 6 | 42 |
Total Comprehensive Income | $ 854 | $ 1,052 | $ 1,425 | $ 3,185 |
Statements of Consolidated Com4
Statements of Consolidated Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | |
Other Comprehensive Income (Loss), Tax, Parenthetical Disclosures [Abstract] | ||||
Foreign currency translation, tax expense (benefit) | $ 18 | $ (22) | $ (12) | $ (34) |
Postretirement benefit plan activity, tax benefit | 6 | 5 | 18 | 14 |
Unrealized net gains on investment holdings, tax (expense) benefit | 0 | (2) | 0 | 3 |
Realized net gains on investment holdings, tax (expense) benefit | 0 | (1) | 0 | (1) |
Unrealized net derivative gains (losses), tax (expense) benefit | (25) | 2 | (52) | (14) |
Realized net derivative (gains) losses, tax (expense) benefit | $ 8 | $ 2 | $ 23 | $ 8 |
Statements of Consolidated Fina
Statements of Consolidated Financial Position (Unaudited) - USD ($) $ in Millions | May. 31, 2015 | Aug. 31, 2014 |
Current Assets: | ||
Cash and cash equivalents (variable interest entity restricted - 2015: $106 and 2014: $118) | $ 1,179 | $ 2,367 |
Short-term investments | 28 | 40 |
Trade receivables, net (variable interest entity restricted - 2015: $9 and 2014: $39) | 3,998 | 2,014 |
Miscellaneous receivables | 877 | 817 |
Deferred tax assets | 697 | 635 |
Inventory, net | 3,625 | 3,597 |
Other current assets | 185 | 205 |
Total Current Assets | 10,589 | 9,675 |
Total property, plant and equipment | 10,221 | 10,357 |
Less accumulated depreciation | 5,357 | 5,275 |
Property, Plant and Equipment, Net (variable interest entity restricted - 2015: $2 and 2014: $2) | 4,864 | 5,082 |
Goodwill | 4,153 | 4,319 |
Other Intangible Assets, Net | 1,432 | 1,554 |
Noncurrent Deferred Tax Assets | 324 | 450 |
Long-Term Receivables, Net | 19 | 92 |
Other Assets | 878 | 809 |
Total Assets | 22,259 | 21,981 |
Current Liabilities: | ||
Short-term debt, including current portion of long-term debt (variable interest entity restricted - 2015: $99 and 2014: $136) | 587 | 233 |
Accounts payable (variable interest entity restricted - 2015: $36 and 2014: $25) | 686 | 1,111 |
Income taxes payable | 346 | 99 |
Accrued compensation and benefits (variable interest entity restricted - 2015: $1 and 2014: $1) | 243 | 500 |
Accrued marketing programs | 936 | 1,394 |
Deferred revenues | 384 | 438 |
Grower production accruals | 48 | 54 |
Dividends payable | 1 | 239 |
Customer payable | 12 | 82 |
Miscellaneous short-term accruals (variable interest entity restricted - 2015: $7 and 2014: $0) | 854 | 962 |
Total Current Liabilities | 4,097 | 5,112 |
Long-Term Debt | 8,396 | 7,528 |
Postretirement Liabilities | 327 | 345 |
Long-Term Deferred Revenue | 54 | 47 |
Noncurrent Deferred Tax Liabilities | 529 | 509 |
Long-Term Portion of Environmental and Litigation Liabilities | 170 | 184 |
Other Liabilities | 326 | 342 |
Shareowners’ Equity: | ||
Common stock (authorized: 1,500,000,000 shares, par value $0.01) Issued 609,152,562 and 606,457,369 shares, respectively; Outstanding 468,579,556 and 485,261,017 shares, respectively | 6 | 6 |
Treasury stock 140,573,006 and 121,196,352 shares, respectively, at cost | (11,953) | (10,032) |
Additional contributed capital | 11,439 | 10,003 |
Retained earnings | 11,350 | 9,012 |
Accumulated other comprehensive loss | (2,504) | (1,114) |
Total Monsanto Company Shareowners’ Equity | 8,338 | 7,875 |
Noncontrolling Interest | 22 | 39 |
Total Shareowners’ Equity | 8,360 | 7,914 |
Total Liabilities and Shareowners’ Equity | $ 22,259 | $ 21,981 |
Statements of Consolidated Fin6
Statements of Consolidated Financial Position (Parenthetical) (Unaudited) - USD ($) $ in Millions | May. 31, 2015 | Aug. 31, 2014 |
Current Assets: | ||
Cash and cash equivalents (variable interest entity restricted) | $ 106 | $ 118 |
Trade receivables, net (variable interest entity restricted) | 9 | 39 |
Property Plant and Equipment Net Restricted to Consolidated VIE | 2 | 2 |
Short Term Debt Restricted To Consolidated Variable Interest Entities | 99 | 136 |
Accounts Payable Restricted To Consolidated Variable Interest Entities | 36 | 25 |
Accrued Compensation and Benefits Restricted to Consolidated Variable Interest Entity | 1 | 1 |
Miscellaneous Short-Term Accruals Restricted to Consolidated VIE | $ 7 | $ 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 | 609,152,562 | 606,457,369 |
Common Stock, Outstanding | 468,579,556 | 485,261,017 |
Treasury Stock, at Cost | 140,573,006 | 121,196,352 |
Statements of Consolidated Cash
Statements of Consolidated Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Operating Activities: | ||
Net Income | $ 2,817 | $ 2,925 |
Items that did not require (provide) cash: | ||
Depreciation and amortization | 538 | 507 |
Bad-debt expense | 40 | 26 |
Stock-based compensation expense | 91 | 87 |
Excess tax benefits from stock-based compensation | (40) | (55) |
Deferred income taxes | (95) | 37 |
Equity affiliate expense, net | 4 | 1 |
Net gain on sales of a business or other assets | (3) | (5) |
Other items | 107 | 61 |
Changes in assets and liabilities that (required) provided cash, net of acquisitions: | ||
Trade receivables, net | (2,200) | (2,368) |
Inventory, net | (413) | (577) |
Deferred revenues | 24 | (252) |
Accounts payable and other accrued liabilities | (423) | 176 |
Pension contributions | (23) | (57) |
Other items | (454) | (135) |
Net Cash (Required) Provided by Operating Activities | (30) | 371 |
Cash Flows (Required) Provided by Investing Activities: | ||
Purchases of short-term investments | (28) | (105) |
Maturities of short-term investments | 40 | 359 |
Capital expenditures | (701) | (688) |
Acquisition of businesses, net of cash acquired | (8) | (922) |
Purchases of long-term debt and equity securities | (30) | (12) |
Technology and other investments | (37) | (388) |
Other proceeds | 5 | 22 |
Net Cash Required by Investing Activities | (759) | (1,734) |
Cash Flows Provided (Required) by Financing Activities: | ||
Net change in financing with less than 90-day maturities | 15 | (15) |
Short-term debt proceeds | 20 | 30 |
Short-term debt reductions | (36) | (1) |
Long-term debt proceeds | 1,171 | 999 |
Long-term debt reductions | (7) | (7) |
Payments on other financing | 0 | (39) |
Debt issuance costs | (12) | (8) |
Treasury stock purchases | (705) | (914) |
Stock option exercises | 131 | 190 |
Excess tax benefits from stock-based compensation | 40 | 55 |
Tax withholding on restricted stock and restricted stock units | (31) | (8) |
Dividend payments | (709) | (679) |
Payments to noncontrolling interests | (20) | (23) |
Net Cash Required by Financing Activities | (143) | (420) |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (256) | 13 |
Net Decrease in Cash and Cash Equivalents | (1,188) | (1,770) |
Cash and Cash Equivalents at Beginning of Period | 2,367 | 3,668 |
Cash and Cash Equivalents at End of Period | $ 1,179 | $ 1,898 |
Statements of Consolidated Shar
Statements of Consolidated Shareholders Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Treasury Stock | Additional Contributed Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) | [1] | NonControlling Interests |
Beginning Balance at Aug. 31, 2013 | $ 12,728 | $ 6 | $ (4,140) | $ 10,783 | $ 7,188 | $ (1,278) | $ 169 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 2,762 | 2,740 | 22 | |||||
Other comprehensive income (loss) | 174 | 164 | 10 | |||||
Treasury stock purchases | (7,096) | (5,892) | (1,204) | |||||
Restricted stock withholding | (16) | (16) | ||||||
Issuance of shares under employee stock plans | 248 | 248 | ||||||
Net excess tax benefits from stock-based compensation | 72 | 72 | ||||||
Stock-based compensation expense | 120 | 120 | ||||||
Cash dividends per common share ($1.78 for 2014 and $0.98 for 2015) | (916) | (916) | ||||||
Net Shares Reclassified to Mandatorily Redeemable Capital Stock, Value | (134) | (134) | ||||||
Payments to noncontrolling interest | (28) | (28) | ||||||
Ending Balance at Aug. 31, 2014 | 7,914 | 6 | (10,032) | 10,003 | 9,012 | (1,114) | 39 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 2,817 | 2,809 | 8 | |||||
Other comprehensive income (loss) | (1,392) | (1,390) | (2) | |||||
Treasury stock purchases | (721) | (1,921) | 1,200 | |||||
Restricted stock withholding | (24) | (24) | ||||||
Issuance of shares under employee stock plans | 131 | 131 | ||||||
Net excess tax benefits from stock-based compensation | 37 | 37 | ||||||
Stock-based compensation expense | 92 | 92 | ||||||
Cash dividends per common share ($1.78 for 2014 and $0.98 for 2015) | (471) | (471) | ||||||
Acquisition of noncontrolling interest | (3) | (3) | ||||||
Payments to noncontrolling interest | (20) | (20) | ||||||
Ending Balance at May. 31, 2015 | $ 8,360 | $ 6 | $ (11,953) | $ 11,439 | $ 11,350 | $ (2,504) | $ 22 | |
[1] | See Note 17 — Accumulated Other Comprehensive Loss — for further details of the components of accumulated other comprehensive income (loss). |
Statements of Consolidated Sha9
Statements of Consolidated Shareholders Equity (Parenthetical) (Unaudited) - $ / shares | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | Aug. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||||
Cash dividends per common share | $ 0 | $ 0 | $ 0.98 | $ 0.86 | $ 1.78 |
BACKGROUND AND BASIS OF PRESENT
BACKGROUND AND BASIS OF PRESENTATION | 9 Months Ended |
May. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BACKGROUND AND BASIS OF PRESENTATION | BACKGROUND AND BASIS OF PRESENTATION Monsanto Company, along with its subsidiaries, is a leading global provider of agricultural products for farmers. Monsanto’s seeds, biotechnology trait products, 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 21 — Segment Information — for further details. In the fourth quarter of 2008, the company announced plans to divest its animal agricultural products business, which focused on dairy cow productivity (the Dairy business) and was previously reported as part of the Agricultural Productivity segment. This transaction was consummated on Oct. 1, 2008, 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. The accompanying consolidated financial statements have not been audited but have been prepared in conformity with accounting principles generally accepted in the United States for interim financial information and with instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, these unaudited consolidated financial statements contain all adjustments necessary to present fairly the financial position, results of operations and cash flows for the interim periods reported. This Report on Form 10-Q should be read in conjunction with Monsanto’s Report on Form 10-K for the fiscal year ended Aug. 31, 2014 . Financial information for the first nine months of fiscal year 2015 should not be annualized because of the seasonality of the company’s business. |
NEW ACCOUNTING STANDARDS
NEW ACCOUNTING STANDARDS | 9 Months Ended |
May. 31, 2015 | |
NEW ACCOUNTING STANDARDS [Abstract] | |
NEW ACCOUNTING STANDARDS | NEW ACCOUNTING STANDARDS In April 2015, the Financial Accounting Standards Board ("FASB") issued accounting guidance, "Customer's Accounting for Fees Paid in a Cloud Computing Arrangement" which provides explicit guidance on the recognition of fees paid by a customer for cloud computing arrangements as either the acquisition of a software license or a service contract.This standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after Dec. 15, 2015. Monsanto must elect to adopt either retrospectively or prospectively, and early adoption is permitted. Accordingly, Monsanto is required to adopt this standard in the first quarter of fiscal year 2017. The company is currently evaluating the impact this guidance will have on the consolidated financial statements and related disclosures. In April 2015, the FASB issued accounting guidance, "Simplifying the Presentation of Debt Issuance Costs" which requires debt issuance costs related to a recognized debt liability to be presented in the statement of financial position as a direct deduction from the carrying amount of that debt. This standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after Dec. 15, 2015, with early adoption permitted for financial statements not yet issued. Accordingly, Monsanto is required to adopt this standard retrospectively in the first quarter of fiscal year 2017. The company is currently evaluating the impact this guidance will have on the consolidated financial statements and related disclosures. In February 2015, the FASB issued accounting guidance, "Amendments to the Consolidation Analysis" which changes the guidance with respect to the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The new guidance affects the following areas: (1) limited partnerships and similar legal entities, (2) evaluating fees paid to a decision maker or a service provider as a variable interest, (3) the effect of fee arrangements on the primary beneficiary determination, (4) the effect of related parties on the primary beneficiary determination, and (5) certain investment funds. This standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after Dec. 15, 2015. Accordingly, Monsanto is required to adopt this standard in the first quarter of fiscal year 2017. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the guidance in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. A reporting entity may apply the amendments in this guidance using a modified retrospective approach by recording a cumulative effect adjustment to equity as of the beginning of the fiscal year of adoption. A reporting entity also may apply the amendments retrospectively. The company is currently evaluating the impact this guidance will have on the consolidated financial statements and related disclosures. In June 2014, the 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 and related disclosures. 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 and related disclosures. 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 and related disclosures. 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. Previously, U.S. Generally Accepted Accounting Principles ("U.S. GAAP") did not provide explicit guidance on the topic. This new presentation guidance became effective prospectively for fiscal years, and interim periods within those years, beginning after Dec. 15, 2013. Accordingly, Monsanto adopted this standard in the first quarter of fiscal year 2015. |
BUSINESS COMBINATIONS AND COLLA
BUSINESS COMBINATIONS AND COLLABORATIVE ARRANGEMENTS | 9 Months Ended |
May. 31, 2015 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS AND COLLABORATIVE ARRANGEMENTS | BUSINESS COMBINATIONS AND COLLABORATIVE ARRANGEMENTS Proposed Combination with Syngenta AG (“Syngenta”) On May 8, 2015, Monsanto confirmed that the company had submitted a non-binding proposal to the Board of Directors of Syngenta AG (“Syngenta”) to combine with Syngenta for 449 CHF per Syngenta share, payable approximately 55 percent in stock and 45 percent in cash. This proposal was rejected by Syngenta, but Monsanto is continuing to consider options with respect to Syngenta. There can be no assurance that a potential transaction with Syngenta will be entered into, will be pursued on different terms and conditions or that any transaction will be consummated. 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 hyperlocal weather monitoring, weather simulation and agronomic modeling which has allowed it to develop risk management tools and agronomic decision support tools for growers. The acquisition combined The Climate Corporation's expertise in agriculture risk-management with Monsanto’s research and development ("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 Accounting Standards Codification ("ASC"). 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. For the 2014 acquisition described above, the business operations and employees of the acquired entity were included in the Seeds and Genomics reportable segment results upon acquisition. 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. 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 multiyear 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 generally 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 . |
CUSTOMER FINANCING PROGRAMS
CUSTOMER FINANCING PROGRAMS | 9 Months Ended |
May. 31, 2015 | |
CUSTOMER FINANCING PROGRAMS [Abstract] | |
CUSTOMER FINANCING PROGRAMS | CUSTOMER FINANCING PROGRAMS Monsanto participates in customer-financing programs as follows: As of (Dollars in millions) May 31, 2015 Aug. 31, 2014 Transactions that Qualify for Sales Treatment U.S. agreement to sell trade receivables (1) Outstanding balance $ 123 $ 436 Maximum future payout under recourse provisions 4 21 European and Latin American agreements to sell trade receivables (2) Outstanding balance $ 25 $ 67 Maximum future payout under recourse provisions 6 34 Agreements with Lenders (3) Outstanding balance $ 86 $ 71 Maximum future payout under the guarantee 73 51 The gross amounts of receivables sold under transactions that qualify for sales treatment were: Gross Amounts of Receivables Sold Three Months Ended Nine Months Ended (Dollars in millions) May 31, 2015 May 31, 2014 May 31, 2015 May 31, 2014 Transactions that Qualify for Sales Treatment U.S. agreement to sell trade receivables (1) $ 114 $ — $ 118 $ 23 European and Latin American agreements to sell trade receivables (2) 6 7 43 17 (1) Monsanto has agreements in the United States to sell trade receivables, both with and without recourse, up to a maximum outstanding balance of $960 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 liability for the guarantees for sales with recourse is recorded at an amount 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 allows Monsanto to transfer up to 1 billion Brazilian reais (approximately $315 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 the company's investment. Credit losses above Monsanto's 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 5 — Variable Interest Entities . There were no significant recourse or non-recourse liabilities for all programs as of May 31, 2015 , and Aug. 31, 2014 . There were no significant delinquent loans for all programs as of May 31, 2015 , and Aug. 31, 2014 . |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 9 Months Ended |
May. 31, 2015 | |
VARIABLE INTEREST ENTITIES [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES Monsanto has a financing program in Brazil that is recorded as a consolidated variable interest entity ("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. Third parties, primarily investment funds, held senior interest of 90 percent and 91 percent in the entity as of May 31, 2015 , and Aug. 31, 2014 , respectively, and Monsanto held the remaining ten percent and nine percent interest, respectively. The senior interests held by third parties are mandatorily redeemable shares and are included in short-term debt in the Statements of Consolidated 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. 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. Monsanto's maximum exposure to loss was $11 million and $13 million as of May 31, 2015 , and Aug. 31, 2014 , respectively. See Note 4 — Customer-Financing Programs — for additional information regarding the revolving financing arrangement. 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 $118 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 $62 million and $43 million as of May 31, 2015 , and Aug. 31, 2014 , respectively, which includes the company's 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 VIEs. |
RECEIVABLES
RECEIVABLES | 9 Months Ended |
May. 31, 2015 | |
Receivables [Abstract] | |
RECEIVABLES | RECEIVABLES Trade receivables in the Statements of Consolidated Financial Position are net of allowances of $80 million and $72 million as of May 31, 2015 , and Aug. 31, 2014 , respectively. The company has financing receivables that represent long-term customer receivable balances related to past due accounts which are not expected to be collected within the current year. The long-term customer receivables were $137 million and $136 million as of May 31, 2015 , and Aug. 31, 2014 , respectively, with a corresponding allowance for credit losses on these receivables of $125 million as of May 31, 2015 , and Aug. 31, 2014 . These long-term customer receivable balances and the corresponding allowance are included in long-term receivables, net in the Statements of Consolidated Financial Position. For these long-term customer receivables, interest is no longer accrued when the receivable is determined to be delinquent and classified as long term based on estimated timing of collection. The following table displays a roll forward of the allowance for credit losses related to long-term customer receivables. (Dollars in millions) Balance as of Aug. 31, 2013 $ 104 Incremental Provision 11 Recoveries (4 ) Write-offs (15 ) Other (1) 29 Balance as of Aug. 31, 2014 $ 125 Incremental Provision 2 Recoveries (1 ) Write-offs (6 ) Other (1) 5 Balance as of May 31, 2015 $ 125 (1) Includes reclassifications from the allowance for current receivables and foreign currency translation adjustments. On an ongoing basis, the company evaluates credit quality of its financing receivables utilizing aging of receivables, collection experience and write-offs, as well as evaluating existing economic conditions, to determine if an allowance is necessary. |
INVENTORY
INVENTORY | 9 Months Ended |
May. 31, 2015 | |
Inventory Disclosure [Abstract] | |
INVENTORY | INVENTORY Components of inventory are: As of (Dollars in millions) May 31, 2015 Aug. 31, 2014 Finished Goods $ 1,911 $ 1,591 Goods In Process 1,455 1,721 Raw Materials and Supplies 419 445 Inventory at FIFO Cost 3,785 3,757 Excess of FIFO over LIFO Cost (160 ) (160 ) Total $ 3,625 $ 3,597 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
May. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS Changes in the net carrying amount of goodwill for the first nine months of fiscal year 2015 , by segment, are as follows: (Dollars in millions) Seeds and Genomics Agricultural Productivity Total Balance as of Aug. 31, 2014 $ 4,262 $ 57 $ 4,319 Effect of foreign currency translation and other adjustments (161 ) (5 ) (166 ) Balance as of May 31, 2015 $ 4,101 $ 52 $ 4,153 The fiscal year 2015 annual goodwill impairment test was performed as of Mar. 1, 2015, and no goodwill impairment existed as of that date. There were no events or circumstances indicating that goodwill might be impaired as of May 31, 2015 . Information regarding the company’s other intangible assets is as follows: As of May 31, 2015 As of Aug. 31, 2014 (Dollars in millions) Carrying Amount Accumulated Amortization Net Carrying Amount Accumulated Amortization Net Acquired Germplasm $ 1,075 $ (743 ) $ 332 $ 1,116 $ (751 ) $ 365 Acquired Intellectual Property 1,167 (550 ) 617 1,160 (507 ) 653 Trademarks 354 (149 ) 205 366 (142 ) 224 Customer Relationships 318 (207 ) 111 338 (204 ) 134 Other 183 (117 ) 66 181 (106 ) 75 Total Other Intangible Assets, Finite Lives $ 3,097 $ (1,766 ) $ 1,331 $ 3,161 $ (1,710 ) $ 1,451 In Process Research & Development, Indefinite Lives 101 — 101 103 — 103 Total Other Intangible Assets $ 3,198 $ (1,766 ) $ 1,432 $ 3,264 $ (1,710 ) $ 1,554 Total amortization expense of total other intangible assets was $34 million and $38 million for the three months ended May 31, 2015 , and May 31, 2014 , respectively, and $107 million and $98 million for the nine months ended May 31, 2015 , and May 31, 2014 , respectively. The estimated intangible asset amortization expense for fiscal year 2015 through fiscal year 2019 is as follows: (Dollars in millions) Amount 2015 $ 152 2016 178 2017 174 2018 144 2019 132 |
INVESTMENTS
INVESTMENTS | 9 Months Ended |
May. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS | INVESTMENTS As of May 31, 2015 , Monsanto had short-term investments outstanding of $28 million . The balance represents cash which is contractually restricted as to withdrawal or usage. The restricted cash includes amounts held in escrow related to litigation settlements. As of Aug. 31, 2014 , Monsanto had short-term investments outstanding of $40 million . The investment consisted of commercial paper with original maturities of one year or less. See Note 12 — Fair Value Measurements . Monsanto has investments in long-term equity and debt securities, which are considered available for sale. As of May 31, 2015 , and Aug. 31, 2014 , these long-term equity and debt securities are recorded in other assets in the Statements of Consolidated Financial Position at a fair value of $52 million and $22 million , respectively. See Note 17 — Accumulated Other Comprehensive Loss . Monsanto has cost basis investments recorded in other assets in the Statements of Consolidated Financial Position. As of May 31, 2015 , and Aug. 31, 2014 , these investments were recorded at $95 million and $91 million , respectively. Due to the nature of these investments, the fair market value is not readily determinable. These investments are reviewed for impairment indicators. No significant impairments were recorded on any investments for each of the three and nine months ended May 31, 2015 , and May 31, 2014 . |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
May. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Monsanto recorded a discrete tax benefit of $67 million in the first nine months of 2015, primarily as a result of favorable adjustments to our U.S. and Ex-U.S. tax returns filed during the year. |
DEBT AND OTHER CREDIT ARRANGEME
DEBT AND OTHER CREDIT ARRANGEMENTS | 9 Months Ended |
May. 31, 2015 | |
Debt Disclosure [Abstract] | |
DEBT AND OTHER CREDIT ARRANGEMENTS | DEBT AND OTHER CREDIT ARRANGEMENTS In June 2014, Monsanto filed a new shelf registration with the SEC (2014 shelf registration) that allows the company to issue an unlimited capacity of debt, equity and hybrid offerings. The 2014 shelf registration expires in June 2017. In April 2015, Monsanto issued $300 million of 2.85% Senior Notes due in 2025 and $500 million of 3.95% Senior Notes due in 2045. In January 2015, Monsanto issued $365 million of 4.30% Senior Notes due in 2045. All notes were issued under the 2014 shelf registration. The net proceeds from the issuances are expected to be used for general corporate purposes, which may include share repurchases and capital expenditures. 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 16 — Capital Stock . In November 2013, Monsanto issued $400 million of Floating Rate Senior Notes which are due in 2016, $300 million of 1.85% Senior Notes due 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 sale of the November 2013 issuances were used for the acquisition of The Climate Corporation and general corporate purposes. As of Aug. 31, 2014 , Monsanto had a credit facility agreement with a group of banks that provided a senior unsecured revolving credit facility through Apr. 1, 2016. In fiscal year 2015, 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 from $2 billion to $2.5 billion . In March 2015, Monsanto replaced its $2.5 billion credit facility agreement with a $3 billion credit facility agreement that provides a senior unsecured revolving credit facility through Mar. 27, 2020. As of May 31, 2015 , Monsanto was in compliance with all debt covenants, and there were no outstanding borrowings under this credit facility. Monsanto's short-term debt instruments include the current portion of long-term debt, mandatorily redeemable shares of a VIE and notes payable to banks. The fair value of total short-term debt was $591 million and $233 million as of May 31, 2015 , and Aug. 31, 2014 , respectively. The fair value of the total long-term debt was $8,458 million and $7,928 million as of May 31, 2015 , and Aug. 31, 2014 , respectively. See Note 12 — Fair Value Measurements — for additional information. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
May. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Monsanto determines the fair market value of its financial assets and liabilities based on quoted market prices, estimates from brokers and other appropriate valuation techniques. The company uses the fair value hierarchy established in the Fair Value Measurements and Disclosures topic of the ASC, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The hierarchy contains three levels as follows, with Level 3 representing the lowest level of input. Level 1 — Values based on unadjusted quoted 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 May 31, 2015 , and Aug. 31, 2014 . 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 May 31, 2015, Using (Dollars in millions) Level 1 Level 2 Level 3 Net Balance Assets at Fair Value: Cash equivalents $ 806 $ — $ — $ 806 Short-term investments 28 — — 28 Available-for-sale securities 20 32 — 52 Derivative assets related to: Foreign currency contracts — 39 — 39 Commodity contracts 9 15 — 24 Interest rate contracts — 1 — 1 Total Assets at Fair Value $ 863 $ 87 $ — $ 950 Liabilities at Fair Value: Short-term debt instruments (1) $ — $ 492 $ 99 $ 591 Long-term debt instruments (1) — 8,458 — 8,458 Derivative liabilities related to: Foreign currency contracts — 9 — 9 Commodity contracts 67 49 — 116 Interest rate contracts — 1 — 1 Total Liabilities at Fair Value $ 67 $ 9,009 $ 99 $ 9,175 (1) 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, 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: Short-term debt instruments $ — $ 97 $ 136 $ 233 Long-term debt instruments (1) — 7,928 — 7,928 Derivative liabilities related to: Foreign currency — 19 — 19 Commodity contracts 76 15 — 91 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. The company’s derivative contracts are measured at fair value, including forward commodity purchase and sale contracts, exchange-traded commodity futures and option contracts, and over-the-counter (OTC) instruments related primarily to agricultural commodities, energy and raw materials, interest rates and foreign currencies. Exchange-traded futures and options contracts are valued based on unadjusted quoted prices in active markets and are classified as Level 1. Fair value for forward commodity purchase and sale contracts is estimated based on exchange-quoted prices adjusted for differences in local markets. These differences are generally determined using inputs from broker or dealer quotations or market transactions in either the listed or OTC markets and are classified as Level 2. Interest rate contracts consist of interest rate swaps measured using broker or dealer quoted prices. When observable inputs are available for substantially the full term of the contract, it is classified as Level 2. Based on historical experience with the company’s suppliers and customers, the company’s own credit risk and knowledge of current market conditions, the company does not view nonperformance risk to be a significant input to the fair value for the majority of its forward commodity purchase and sale contracts. The effective portions of changes in the fair value of derivatives designated as cash flow hedges are recognized in the Statements of Consolidated Financial Position as a component of accumulated other comprehensive loss until the hedged items are recorded in earnings or it is probable the hedged transaction will no longer occur. Changes in the fair value of derivatives are recognized in the Statements of Consolidated Operations as a component of net sales, cost of goods sold and other expense, net. The company’s short-term investments may consist of commercial paper and cash which is contractually restricted as to withdrawal or usage. The company’s available-for-sale securities consist of equity securities of publicly traded equity investments and debt security investments in Argentine sovereign bonds. Commercial paper and publicly traded equity investments are valued using quoted market prices and are classified as Level 1. Contractually restricted cash may be held in an interest bearing account measured using prevailing interest rates and are classified as Level 1. The company's debt securities are classified as Level 2 and valued using broker or dealer quoted prices with a maturity greater than one year. Short-term debt instruments may consist of commercial paper, current portion of long-term debt, mandatorily redeemable shares, and notes payable to banks. Commercial paper and notes payables to banks are recorded at amortized cost in the Statements of Consolidated Financial Position, which approximates fair value. Current portion of long-term debt is measured at fair value for disclosure purposes and determined based on current market yields for Monsanto's debt traded in the secondary market. Mandatorily redeemable shares are recorded in the Statements of Consolidated Financial Position at fair value, which represents the amount of cash the consolidated variable interest entity would pay if settlement occurred as of the respective reporting date. 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 11 — Debt and Other Credit Arrangements — for additional disclosures. Accretion expense is included in the Statements of Consolidated Operations as interest expense. Long-term debt was measured at fair value for disclosure purposes and determined based on current market yields for Monsanto's debt traded in the secondary market. For the nine months ended May 31, 2015 , and May 31, 2014 , the company had no transfers between Level 1, Level 2 and Level 3. Monsanto does not have any assets with fair value determined using Level 3 inputs as of May 31, 2015 , and Aug. 31, 2014 . The following table summarizes the change in fair value of the Level 3 liability for the nine months ended May 31, 2015 . (Dollars in millions) Balance Aug. 31, 2014 (1) $ 136 Accretion expense 11 Payments (7 ) Effect of foreign currency translation adjustments (41 ) Balance May 31, 2015 (1) $ 99 (1) Includes 300,000 mandatorily redeemable shares outstanding with a par value of 1,000 Brazilian reais (approximately $315 and $447 ) as of May 31, 2015 , and Aug. 31, 2014 , respectively. There were no significant measurements of assets or liabilities to their implied fair value on a nonrecurring basis during the nine months ended May 31, 2015 , and May 31, 2014 . The recorded amounts of cash, trade receivables, miscellaneous receivables, third-party guarantees, accounts payable, grower production accruals, accrued marketing programs and miscellaneous short-term accruals approximate their fair values as of May 31, 2015 , and Aug. 31, 2014 . 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 | 9 Months Ended |
May. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS 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 15 months for foreign currency hedges and 38 months for commodity hedges. During the next 12 months, a pretax net loss of approximately $86 million is expected to be reclassified from accumulated other comprehensive loss into earnings. No cash flow hedges were discontinued during the three and nine months ended May 31, 2014 . A pretax loss of $2 million during the three and nine months ended May 31, 2015 , was reclassified into cost of goods sold in the Statements of Consolidated Operations as a result of the discontinuance of commodity cash flow hedges because it was probable that the original forecasted transaction would not occur by the end of the originally specified time period. 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 the three and nine months ended May 31, 2015 , and May 31, 2014 . 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 May 31, 2015 , and Aug. 31, 2014 , were as follows: As of (Dollars in millions) May 31, 2015 Aug. 31, 2014 Derivatives Designated as Hedges: Foreign exchange contracts $ 461 $ 585 Commodity contracts 863 626 Interest rate contracts 150 — Total Derivatives Designated as Hedges $ 1,474 $ 1,211 Derivatives Not Designated as Hedges: Foreign exchange contracts $ 1,577 $ 2,054 Commodity contracts 216 272 Interest rate contracts 112 160 Total Derivatives Not Designated as Hedges $ 1,905 $ 2,486 The net presentation of the company’s derivative instruments outstanding was as follows: As of May 31, 2015 (Dollars 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) $ — $ (19 ) $ (19 ) $ 19 $ — Total trade receivables, net — (19 ) (19 ) 19 — $ 3,998 $ 3,998 Miscellaneous receivables Derivatives designated as hedges: Foreign exchange contracts 27 — 27 — 27 Derivatives not designated as hedges: Foreign exchange contracts 11 — 11 — 11 Commodity contracts 15 — 15 — 15 Total miscellaneous receivables 53 — 53 — 53 824 877 Other current assets Derivatives designated as hedges: Commodity contracts (1) 9 (60 ) (51 ) 51 — Interest rate contracts (1) 1 (1 ) — — — Derivatives not designated as hedges: Commodity contracts (1) — (1 ) (1 ) 1 — Total other current assets 10 (62 ) (52 ) 52 — 185 185 Other assets Derivatives designated as hedges: Foreign exchange contracts 1 — 1 — 1 Commodity contracts (1) — (5 ) (5 ) 5 — Total other assets 1 (5 ) (4 ) 5 1 877 878 Total Asset Derivatives $ 64 $ (86 ) $ (22 ) $ 76 $ 54 Liability Derivatives: Trade receivables, net Derivatives not designated as hedges: Commodity contracts (1) $ 19 $ (19 ) $ — $ — $ — Total trade receivables, net 19 (19 ) — — — Other current assets Derivatives designated as hedges: Commodity contracts (1) 60 (60 ) — — — Interest rate contracts (1) 1 (1 ) — — — Derivatives not designated as hedges: Commodity contracts (1) 1 (1 ) — — — Total other current assets 62 (62 ) — — — Other assets Derivatives designated as hedges: Commodity contracts (1) 5 (5 ) — — — Total other assets 5 (5 ) — — — Miscellaneous short-term accruals Derivatives designated as hedges: Commodity contracts 22 — 22 — 22 Derivatives not designated as hedges: Foreign exchange contracts 9 — 9 — 9 Total miscellaneous short-term accruals 31 — 31 — 31 $ 823 $ 854 Other liabilities Derivatives designated as hedges: Commodity contracts 9 — 9 — 9 Total other liabilities 9 — 9 — 9 317 326 Total Liability Derivatives $ 126 $ (86 ) $ 40 $ — $ 40 (1) As allowed by the Derivatives and Hedging topic of the ASC, derivative assets and liabilities have been offset by collateral subject to an enforceable master netting arrangement or similar arrangement. Therefore, 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, 2014 (Dollars 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. The gains and losses on the company’s derivative instruments were as follows: Amount of Gain (Loss) Recognized in AOCI (1) (Effective Portion) Amount of Gain (Loss) Recognized in Income (2)(3) Three Months Ended Three Months Ended Statement of Consolidated Operations Classification (Dollars in millions) May 31, 2015 May 31, 2014 May 31, 2015 May 31, 2014 Derivatives Designated as Hedges: Fair value hedges: Commodity contracts $ 10 $ (10 ) Cost of goods sold Cash flow hedges: Foreign currency contracts $ (2 ) $ (4 ) 10 2 Net sales Foreign currency contracts 7 1 4 (2 ) Cost of goods sold Commodity contracts (48 ) 11 (30 ) (1 ) Cost of goods sold Interest rate contracts (16 ) — (3 ) (3 ) Interest expense Total Derivatives Designated as Hedges (59 ) 8 (9 ) (14 ) Derivatives Not Designated as Hedges: Foreign currency contracts (4) (3 ) 5 Other expense, net Commodity contracts (12 ) (3 ) Net sales Commodity contracts (1 ) (2 ) Cost of goods sold Total Derivatives Not Designated as Hedges (16 ) — Total Derivatives $ (59 ) $ 8 $ (25 ) $ (14 ) (1) Accumulated other comprehensive income (AOCI) (loss). (2) For derivatives designated as cash flow hedges under the Derivatives and Hedging topic of the ASC, this represents the effective portion of the gain (loss) reclassified from AOCI into income during the period. (3) The gain or loss on derivatives designated as hedges from ineffectiveness included in current earnings is not significant during the three months ended May 31, 2015 , and May 31, 2014 . No gains or losses were excluded from the assessment of hedge effectiveness during the three months ended May 31, 2015 , and May 31, 2014 . (4) Loss and gain on foreign currency contracts not designated as hedges includes foreign currency transaction losses of $13 million and $12 million during the three months ended May 31, 2015 , and May 31, 2014 , respectively. Amount of Gain (Loss) Recognized in AOCI (1) (Effective Portion) Amount of Gain (Loss) Recognized in Income (2)(3) Nine Months Ended Nine Months Ended Statement of Consolidated Operations Classification (Dollars in millions) May 31, 2015 May 31, 2014 May 31, 2015 May 31, 2014 Derivatives Designated as Hedges: Fair value hedges: Commodity contracts $ 9 $ (24 ) Cost of goods sold Cash flow hedges: Foreign currency contracts $ 37 $ (2 ) 24 4 Net sales Foreign currency contracts 28 (3 ) 5 (2 ) Cost of goods sold Commodity contracts (91 ) (32 ) (77 ) (14 ) Cost of goods sold Interest rate contracts (87 ) (2 ) (9 ) (9 ) Interest expense Total Derivatives Designated as Hedges (113 ) (39 ) (48 ) (45 ) Derivatives Not Designated as Hedges: Foreign currency contracts (4) (118 ) 30 Other expense, net Commodity contracts (6 ) — Net sales Commodity contracts — 5 Cost of goods sold Total Derivatives Not Designated as Hedges (124 ) 35 Total Derivatives $ (113 ) $ (39 ) $ (172 ) $ (10 ) (1) Accumulated other comprehensive income (AOCI) (loss). (2) For derivatives designated as cash flow hedges under the Derivatives and Hedging topic of the ASC, this represents the effective portion of the gain (loss) reclassified from AOCI into income during the period. (3) The gain or loss on derivatives designated as hedges from ineffectiveness included in current earnings is not significant during the nine months ended May 31, 2015 , and May 31, 2014 . No gains or losses were excluded from the assessment of hedge effectiveness during the nine months ended May 31, 2015 , and May 31, 2014 . (4) Loss and gain on foreign currency contracts not designated as hedges is offset by foreign currency transaction gain of $94 million and loss of $113 million during the nine months ended May 31, 2015 , and May 31, 2014 , respectively. Most of the company’s outstanding foreign currency derivatives are covered by International Swap 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 the company with another entity, the counterparty may require all outstanding derivatives under the ISDA Master Agreement to be settled immediately at current market value, which equals carrying value. Foreign currency derivatives that are not covered by ISDA Master Agreements do not have credit-risk-related contingent provisions. Most of Monsanto’s outstanding commodity derivatives are listed commodity futures, and the company is required by the relevant commodity exchange to post collateral each day to cover the change in the fair value of these futures in the case of an unrealized loss position. Non-exchange-traded commodity derivatives and interest rate contracts may be covered by the aforementioned ISDA Master Agreements and would be subject to the same credit-risk-related contingent provisions. The aggregate fair value of all derivative instruments under ISDA Master Agreements that are in a liability position was $29 million and $11 million as of May 31, 2015 , and Aug. 31, 2014 , respectively, which is the amount that would be required for settlement if the credit-risk-related contingent provisions underlying these agreements were triggered. Credit Risk Management Monsanto invests excess cash in deposits with major banks or money market funds throughout the world in high-quality short-term debt instruments. Such investments are made only in instruments issued or enhanced by high-quality institutions. As of May 31, 2015 , and Aug. 31, 2014 , 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 is subject to weather conditions that affect commodity prices and seed yields. Credit limits, ongoing credit evaluation and account monitoring procedures are used to minimize the risk of loss. Collateral is secured when it is deemed appropriate by the company. Monsanto regularly evaluates its business practices to minimize its credit risk and periodically engages multiple banks in the United States, Argentina, Brazil and Europe in the development of customer financing options that involve direct bank financing of customer purchases. For further information on these programs, see Note 4 — Customer-Financing Programs . |
POSTRETIREMENT BENEFITS - PENSI
POSTRETIREMENT BENEFITS - PENSIONS, HEALTH CARE AND OTHER | 9 Months Ended |
May. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
POSTRETIREMENT BENEFITS-PENSIONS, HEALTH CARE AND OTHER | POSTRETIREMENT BENEFITS — PENSIONS, HEALTH CARE AND OTHER Most of Monsanto’s U.S. employees hired prior to July 8, 2012 are covered by noncontributory pension plans sponsored by the company. Effective July 8, 2012, the U.S. pension plan was closed to new entrants; there were no significant changes to the U.S. pension plan for eligible employees hired prior to that date. The company also provides certain postretirement health care and life insurance benefits for retired employees through insurance contracts. The company’s net periodic benefit cost for pension benefits and health care and other postretirement benefits include the following components: Three Months Ended May 31, 2015 Three Months Ended May 31, 2014 Pension Benefits (Dollars in millions) U.S. Outside the U.S. Total U.S. Outside the U.S. Total Service Cost for Benefits Earned During the Period $ 16 $ 4 $ 20 $ 16 $ 2 $ 18 Interest Cost on Benefit Obligation 22 2 24 23 2 25 Assumed Return on Plan Assets (38 ) (3 ) (41 ) (35 ) (2 ) (37 ) Amortization of Unrecognized Net Loss 13 2 15 16 1 17 Total Net Periodic Benefit Cost $ 13 $ 5 $ 18 $ 20 $ 3 $ 23 Nine Months Ended May 31, 2015 Nine Months Ended May 31, 2014 Pension Benefits (Dollars in millions) U.S. Outside the U.S. Total U.S. Outside the U.S. Total Service Cost for Benefits Earned During the Period $ 48 $ 11 $ 59 $ 46 $ 8 $ 54 Interest Cost on Benefit Obligation 66 6 72 69 6 75 Assumed Return on Plan Assets (114 ) (9 ) (123 ) (104 ) (6 ) (110 ) Amortization of Unrecognized Net Loss 39 6 45 47 1 48 Curtailment and Settlement Charge — 1 1 — 2 2 Total Net Periodic Benefit Cost $ 39 $ 15 $ 54 $ 58 $ 11 $ 69 Monsanto did not make any cash contributions to its U.S. qualified plan in the nine month period ended May 31, 2015 . In the nine months ended May 31, 2014 , Monsanto contributed $32 million to its U.S. qualified plan. Monsanto contributed $18 million and $14 million to plans outside the United States for the nine month periods ended May 31, 2015 , and May 31, 2014 , respectively. As of May 31, 2015 , management does not expect to make any cash contributions to the company's U.S. Qualified Pension Plan during the remainder of fiscal year 2015. Health Care and Other Postretirement Benefits Three Months Ended Nine Months Ended (Dollars in millions) May 31, 2015 May 31, 2014 May 31, 2015 May 31, 2014 Service Cost for Benefits Earned During the Period $ 2 $ 1 $ 5 $ 6 Interest Cost on Benefit Obligation 1 1 4 5 Amortization of Unrecognized Net Gain (1 ) (3 ) (3 ) (11 ) Total Net Periodic Benefit Cost $ 2 $ (1 ) $ 6 $ — |
STOCK BASED COMPENSATION PLANS
STOCK BASED COMPENSATION PLANS STOCK BASED COMPENSATION PLANS | 9 Months Ended |
May. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK BASED COMPENSATION PLANS | STOCK-BASED COMPENSATION PLANS The following table shows total stock-based compensation expense included in the Statements of Consolidated Operations for the three and nine months ended May 31, 2015 , and May 31, 2014 , respectively. Stock-based compensation cost capitalized in inventory was $3 million as of both May 31, 2015 , and Aug. 31, 2014 . Three Months Ended Nine Months Ended (Dollars in millions) May 31, 2015 May 31, 2014 May 31, 2015 May 31, 2014 Cost of Goods Sold $ 2 $ 2 $ 6 $ 6 Selling, General and Administrative Expenses 22 17 69 60 Research and Development Expenses 7 12 23 22 Pre-Tax Stock-Based Compensation Expense 31 31 98 88 Income Tax Benefit (10 ) (10 ) (31 ) (29 ) Net Stock-Based Compensation Expense $ 21 $ 21 $ 67 $ 59 The following table summarizes stock-based compensation activity for and as of the nine months ended May 31, 2015 . Monsanto Stock Plans include employees under the Monsanto Company 2005 Long-Term Incentive Plan, as amended and restated effective Jan. 24, 2012, and employees under The Climate Corporation 2006 Stock Plan, as amended on Oct. 30, 2013. The Director Plan includes members of the Board of Directors under the Monsanto Non-Employee Director Equity Incentive Compensation Plan. Monsanto Stock Plans Director Plan Stock Options Restricted Stock Units Deferred Stock Restricted Stock Granted 1,726,580 724,409 17,518 3,307 Weighted-average grant date fair value per share $ 24.37 $ 108.88 $ 115.65 $ 115.65 Pre-tax unrecognized compensation expense, net of estimated forfeitures as applicable (in millions) $ 60.9 $ 116.2 $ 0.5 $ 0.3 Remaining weighted-average period of expense recognition/requisite service periods (in years) 2.0 2.4 0.3 1.2 |
CAPITAL STOCK CAPITAL STOCK
CAPITAL STOCK CAPITAL STOCK | 9 Months Ended |
May. 31, 2015 | |
CAPITAL STOCK [Abstract] | |
Capital Stock Disclosure [Text Block] | 1, 2014, Monsanto entered into uncollared 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 reflected the value of the 38.6 million shares received upon initial settlement, and a $1.2 billion decrease in additional contributed capital, which reflected the value of the stock held back by JPMorgan and Goldman Sachs pending final settlement of the ASR agreements. On Mar. 19, 2015, the company's July 1, 2014 ASR agreement with Goldman Sachs was terminated in accordance with the terms of the agreement. Upon settlement, Goldman Sachs delivered to the company an additional 6.6 million shares of Monsanto common stock for a total of approximately 25.9 million shares repurchased at an aggregate cost of $3.0 billion . On Mar. 31, 2015, the company's July 1, 2014 ASR agreement with JPMorgan was terminated in accordance with the terms of the agreement. Upon settlement, JPMorgan delivered to the company an additional 6.6 million shares of Monsanto common stock for a total of approximately 25.9 million shares repurchased at an aggregate cost of $3.0 billion . Upon completion of the ASR agreements, the $1.2 billion previously recorded as additional contributed capital was classified as treasury stock. The ASR agreements were entered into pursuant to share repurchase programs announced in June 2013 and in June 2014 and were funded primarily by the July 2014 debt issuance disclosed in Note 11 — Debt and Other Credit Arrangements . |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 9 Months Ended |
May. 31, 2015 | |
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: (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) Income 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 ) Other comprehensive loss before reclassifications (1,393 ) — (61 ) — (1,454 ) Amounts reclassified from accumulated other comprehensive loss — — 34 30 64 Net current-period other comprehensive (loss) income (1,393 ) — (27 ) 30 (1,390 ) Balance as of May 31, 2015 $ (2,124 ) $ 5 $ (194 ) $ (191 ) $ (2,504 ) The following table provides additional information regarding items reclassified out of accumulated other comprehensive loss into earnings. Three Months Ended Nine Months Ended (Dollars in millions) May 31, 2015 May 31, 2014 May 31, 2015 May 31, 2014 Affected Line Item in the Statements of Consolidated Operations Available for Sale Securities: Gain on Sale of Security $ — $ (2 ) $ — $ (2 ) Other expense, net Impairment — — — 1 Other expense, net — (2 ) — (1 ) Total before income taxes — 1 — 1 Income tax provision $ — $ (1 ) $ — $ — Net of tax Cash Flow Hedges: Foreign Exchange Contracts $ (10 ) $ (2 ) $ (24 ) $ (4 ) Net sales Foreign Exchange Contracts (4 ) 2 (5 ) 2 Cost of goods sold Commodity Contracts 30 1 77 14 Cost of goods sold Interest Rate Contracts 3 3 9 9 Interest expense 19 4 57 21 Total before income taxes (8 ) (2 ) (23 ) (8 ) Income tax provision $ 11 $ 2 $ 34 $ 13 Net of tax Postretirement Benefit Items: Amortization of Unrecognized Net Loss $ 5 $ 4 $ 16 $ 10 Inventory/Cost of goods sold (1) Amortization of Unrecognized Net Loss 11 9 32 26 Selling, general and administrative expenses 16 13 48 36 Total before income taxes (6 ) (5 ) (18 ) (14 ) Income tax provision $ 10 $ 8 $ 30 $ 22 Net of tax Total Reclassifications For The Period $ 21 $ 9 $ 64 $ 35 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 $5 million and $4 million of net periodic benefit cost to inventory, of which approximately $2 million was recognized in cost of goods sold during each of the three months ended May 31, 2015 , and May 31, 2014 , respectively. The company recorded $16 million and $10 million of net periodic benefit cost to inventory, of which approximately $13 million and $10 million was recognized in cost of goods sold during the nine months ended May 31, 2015 , and May 31, 2014 , respectively. See Note 14 — Postretirement Benefits - Pensions, Health Care and Other — for additional information. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
May. 31, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share ("EPS") was computed using the weighted-average number of common shares outstanding during the periods shown in the table below. The diluted EPS computation takes into account the effect of dilutive potential common shares, as shown in the table below. Potential common shares consist primarily of stock options, restricted stock, restricted stock units and directors’ deferred shares calculated using the treasury stock method and are excluded if their effect is antidilutive. Of those antidilutive options, certain options were excluded from the computations of dilutive potential common shares as their exercise prices were greater than the average market price of the common shares for the period. Three Months Ended Nine Months Ended (Shares in millions) May 31, 2015 May 31, 2014 May 31, 2015 May 31, 2014 Weighted-Average Number of Common Shares 472.8 524.3 479.5 525.4 Dilutive Potential Common Shares 4.4 5.5 4.8 5.8 Antidilutive Potential Common Shares 1.7 1.7 1.7 1.7 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 — 0.1 0.1 |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 9 Months Ended |
May. 31, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION Cash payments for interest and taxes were as follows: Nine Months Ended (Dollars in millions) May 31, 2015 May 31, 2014 Interest $ 212 $ 118 Taxes 900 788 During the nine months ended May 31, 2015 , and May 31, 2014 , the company recorded the following noncash investing and financing transactions: • As of May 31, 2015 , and May 31, 2014 , the company recognized noncash capital expenditures of $93 million and $114 million , respectively, in accounts payable in the Statements of Consolidated Financial Position. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
May. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Environmental and Litigation Liabilities: Monsanto is involved in environmental remediation and legal proceedings to which we are party in our own name and proceedings to which our former parent, Pharmacia LLC ("Pharmacia") or its former subsidiary, Solutia, Inc. ("Solutia") is a party but that we manage and for which we are responsible. In addition, Monsanto has liabilities established for various product claims. With respect to certain of these proceedings, Monsanto has a liability recorded of $301 million and $291 million as of May 31, 2015 , and Aug. 31, 2014 , respectively, for the estimated contingent liabilities. Information regarding the environmental liabilities appears in Monsanto’s Report on Form 10-K for the fiscal year ended Aug. 31, 2014 . Litigation: The above liability includes amounts related to certain third-party litigation with respect to Monsanto’s business, as well as tort litigation related to Pharmacia’s former chemical business, including lawsuits involving polychlorinated biphenyls (PCBs), dioxins, and other chemical and premises liability litigation. Additional matters that are not reflected in the liability may arise in the future, and Monsanto may manage, settle, or pay judgments or damages with respect thereto in order to mitigate contesting potential liability. Following is a description of two of the more significant litigation matters. • The company has been named in personal injury lawsuits filed over several years on behalf of approximately 750 persons in state courts in St. Louis, Missouri and Los Angeles, California. The suits claim that plaintiffs’ various forms of non-Hodgkin lymphoma have been caused by their trace levels of PCBs allegedly manufactured by Pharmacia’s former chemical business over four decades ago, which entered the environment from a wide variety of end-use applications in products made by others. In May 2014, the first jury trial of such claims occurred in Los Angeles, resulting in a defense verdict in favor of Pharmacia. On June 2, 2015, the company initiated litigation styled Pharmacia LLC v. Grupo de Inversiones Suramercana S.A. as successor-in-interest to Compania Agricola de Seguros S.A. Bogata, Colombia, et al. in U.S. District Court, Eastern District of Texas, against several of its insurers and certain individuals seeking a declaration of insurance coverage for defense costs of the litigation and also asserting that any underlying injury claims are subject to federal preemption. While the company remains engaged in efforts to resolve the injury claims, the company believes it has meritorious legal and factual defenses to these cases and is vigorously defending them. The company is defending such claims under indemnity agreements resulting from its 2000 spinoff from Pharmacia and subsequent agreements under Solutia’s February 2008 plan of reorganization. • As described in our Report on Form 10-K for the fiscal year ended Aug. 31, 2014, and our Report on Form 10-Q for the quarterly periods ended Nov. 30, 2014, and Feb. 28, 2015, on Dec. 17, 2004, 15 plaintiffs filed a purported class action lawsuit, styled Virdie Allen, et al. ("Allen") 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. ("Bibb") 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 on 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. ("Flexsys America") (and several of its affiliates), Solutia, and Apogee Coal Company, LLC ("Apogee Coal"). 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 arguments and will continue to represent its interests vigorously in all of the proceedings that it is defending or prosecuting. Management does not anticipate the ultimate liabilities resulting from such proceedings, or the proceedings reflected in the above liability, will have a material adverse effect on Monsanto’s consolidated results of operations, financial position, cash flows or liquidity. Legal actions have been filed in Brazil that raise issues challenging the right to collect certain royalties for Roundup Ready soybeans. Although Brazilian law clearly states that the pipeline patents protecting these products have the duration of the corresponding U.S. patent (2014 for Roundup Ready soybeans), the duration (and application) of these pipeline patents is currently under judicial review in Brazil. Monsanto believes it has meritorious legal arguments and will continue to represent its interests vigorously in these proceedings. The current estimate of the company’s reasonably possible loss contingency is not material to consolidated results of operations, financial position, cash flows or liquidity. Other Contingencies: The staff of the SEC is conducting an investigation of financial reporting associated with our customer incentive programs for glyphosate products for the fiscal years 2009 and 2010, and Monsanto has 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. The company continues cooperating with the investigation, and has engaged in discussions concerning a resolution of this matter with the staff of the SEC. There can be no assurance that the company's efforts to resolve the SEC’s investigation will be successful, and the company cannot predict the ultimate timing or the final terms of any settlement. Guarantees: Disclosures regarding the guarantees Monsanto provides for certain customer loans in the United States, Latin America and Europe can be found in Note 4 — Customer-Financing Programs — of this Form 10-Q. Except as described in that note, there have been no significant changes to guarantees made by Monsanto since Aug. 31, 2014 . Disclosures regarding these guarantees made by Monsanto can be found in Note 25 — Commitments and Contingencies — of the notes to the consolidated financial statements contained in Monsanto’s Report on Form 10-K for the fiscal year ended Aug. 31, 2014 . Off-Balance Sheet Arrangement: Monsanto is in the process of making a significant expansion of our Chesterfield, Missouri, facility. 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, facility to St. Louis County and received Industrial Revenue Bonds in the amount of up to $470 million , which enables the company to reduce the cost of constructing and operating the expansion by reducing certain state and local tax expenditures. Monsanto 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 , in the Statements of Consolidated Financial Position. As such, neither the Industrial Revenue Bonds nor the lease obligation are recorded in 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 | 9 Months Ended |
May. 31, 2015 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Monsanto conducts its worldwide operations through global businesses, which are aggregated into reportable segments based on similarity of products, production processes, customers, distribution methods and economic characteristics. The operating segments are aggregated into two reportable segments: Seeds and Genomics and Agricultural Productivity. The Seeds and Genomics segment consists of the global seeds and related traits businesses, biotechnology platforms and precision agriculture. Within the Seeds and Genomics segment, Monsanto’s significant operating segments are corn seed and traits, soybean seed and traits, cotton seed and traits, vegetable seeds and all other crops seeds and traits. The Agricultural Productivity reportable segment consists of the Agricultural Productivity operating segment. EBIT is defined as earnings before interest and taxes and is an operating performance measure for the two reportable segments. EBIT is useful to management in demonstrating the operational profitability of the segments by excluding interest and taxes, which are generally accounted for across the entire company on a consolidated basis. Sales between segments were not significant. Certain SG&A expenses are allocated between segments based on the segment’s relative contribution to total Monsanto operations. Allocation percentages remain consistent for fiscal years 2014 and 2015 . Data for the Seeds and Genomics and Agricultural Productivity reportable segments, as well as for Monsanto’s significant operating segments, is presented in the table as follows: Three Months Ended Nine Months Ended (Dollars in millions) May 31, 2015 May 31, 2014 May 31, 2015 May 31, 2014 Net Sales (1) Corn seed and traits $ 1,515 $ 1,303 $ 5,355 $ 5,771 Soybean seed and traits 835 816 2,114 1,903 Cotton seed and traits 371 401 484 587 Vegetable seeds 197 221 559 597 All other crops seeds and traits 275 299 480 506 Total Seeds and Genomics $ 3,193 $ 3,040 $ 8,992 $ 9,364 Agricultural productivity 1,386 $ 1,210 3,654 3,861 Total Agricultural Productivity $ 1,386 $ 1,210 $ 3,654 $ 3,861 Total $ 4,579 $ 4,250 $ 12,646 $ 13,225 Gross Profit Corn seed and traits $ 947 $ 751 $ 3,349 $ 3,654 Soybean seed and traits 528 498 1,413 1,205 Cotton seed and traits 292 304 370 424 Vegetable seeds 87 107 245 271 All other crops seeds and traits 201 195 296 299 Total Seeds and Genomics $ 2,055 $ 1,855 $ 5,673 $ 5,853 Agricultural productivity 681 476 1,513 1,488 Total Agricultural Productivity $ 681 $ 476 $ 1,513 $ 1,488 Total $ 2,736 $ 2,331 $ 7,186 $ 7,341 EBIT (2)(3) Seeds and Genomics $ 1,113 $ 898 $ 2,979 $ 3,057 Agricultural Productivity 494 313 1,098 1,071 Total $ 1,607 $ 1,211 $ 4,077 $ 4,128 Depreciation and Amortization Expense Seeds and Genomics $ 144 $ 145 $ 442 $ 416 Agricultural Productivity 32 30 96 91 Total $ 176 $ 175 $ 538 $ 507 (1) Represents net sales from continuing operations. (2) EBIT is defined as earnings before interest and taxes; see the following table for reconciliation. Earnings is intended to mean net income as presented in the Statements of Consolidated Operations under U.S. GAAP. EBIT is an operating performance measure for the two reportable segments. (3) Agricultural Productivity EBIT includes income from operations of discontinued businesses of $37 million and $22 million for the nine months ended May 31, 2015 and 2014, respectively. A reconciliation of EBIT to net income for each period is as follows: Three Months Ended Nine Months Ended (Dollars in millions) May 31, 2015 May 31, 2014 May 31, 2015 May 31, 2014 EBIT (1) $ 1,607 $ 1,211 $ 4,077 $ 4,128 Interest Expense — Net 78 25 219 71 Income Tax Provision (2) 388 328 1,049 1,161 Net Income Attributable to Monsanto Company $ 1,141 $ 858 $ 2,809 $ 2,896 (1) Includes the income from operations of discontinued businesses and pre-tax noncontrolling interests. (2) Includes the income tax benefit on noncontrolling interest and the income tax provision on discontinued operations. |
SUBSEQUENTS EVENT
SUBSEQUENTS EVENT | 9 Months Ended |
May. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | SUBSEQUENT EVENT On June 5, 2015, the Board of Directors declared a quarterly dividend on its common shares of 49 cents per share. The dividend is payable on July 24, 2015, to shareowners of record on July 2, 2015. |
CUSTOMER FINANCING PROGRAMS (Ta
CUSTOMER FINANCING PROGRAMS (Tables) | 9 Months Ended |
May. 31, 2015 | |
CUSTOMER FINANCING PROGRAMS [Abstract] | |
Customer Financing Programs | Monsanto participates in customer-financing programs as follows: As of (Dollars in millions) May 31, 2015 Aug. 31, 2014 Transactions that Qualify for Sales Treatment U.S. agreement to sell trade receivables (1) Outstanding balance $ 123 $ 436 Maximum future payout under recourse provisions 4 21 European and Latin American agreements to sell trade receivables (2) Outstanding balance $ 25 $ 67 Maximum future payout under recourse provisions 6 34 Agreements with Lenders (3) Outstanding balance $ 86 $ 71 Maximum future payout under the guarantee 73 51 The gross amounts of receivables sold under transactions that qualify for sales treatment were: Gross Amounts of Receivables Sold Three Months Ended Nine Months Ended (Dollars in millions) May 31, 2015 May 31, 2014 May 31, 2015 May 31, 2014 Transactions that Qualify for Sales Treatment U.S. agreement to sell trade receivables (1) $ 114 $ — $ 118 $ 23 European and Latin American agreements to sell trade receivables (2) 6 7 43 17 (1) Monsanto has agreements in the United States to sell trade receivables, both with and without recourse, up to a maximum outstanding balance of $960 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 liability for the guarantees for sales with recourse is recorded at an amount 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. |
RECEIVABLES (Tables)
RECEIVABLES (Tables) | 9 Months Ended |
May. 31, 2015 | |
Receivables [Abstract] | |
Allowance For Doubtful Long Term Receivables | The following table displays a roll forward of the allowance for credit losses related to long-term customer receivables. (Dollars in millions) Balance as of Aug. 31, 2013 $ 104 Incremental Provision 11 Recoveries (4 ) Write-offs (15 ) Other (1) 29 Balance as of Aug. 31, 2014 $ 125 Incremental Provision 2 Recoveries (1 ) Write-offs (6 ) Other (1) 5 Balance as of May 31, 2015 $ 125 (1) Includes reclassifications from the allowance for current receivables and foreign currency translation adjustments. |
INVENTORY (Tables)
INVENTORY (Tables) | 9 Months Ended |
May. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | Components of inventory are: As of (Dollars in millions) May 31, 2015 Aug. 31, 2014 Finished Goods $ 1,911 $ 1,591 Goods In Process 1,455 1,721 Raw Materials and Supplies 419 445 Inventory at FIFO Cost 3,785 3,757 Excess of FIFO over LIFO Cost (160 ) (160 ) Total $ 3,625 $ 3,597 |
GOODWILL AND OTHER INTANGIBLE35
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
May. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Net Carrying Amount of Goodwill | Changes in the net carrying amount of goodwill for the first nine months of fiscal year 2015 , by segment, are as follows: (Dollars in millions) Seeds and Genomics Agricultural Productivity Total Balance as of Aug. 31, 2014 $ 4,262 $ 57 $ 4,319 Effect of foreign currency translation and other adjustments (161 ) (5 ) (166 ) Balance as of May 31, 2015 $ 4,101 $ 52 $ 4,153 |
Other Intangible Assets Information | Information regarding the company’s other intangible assets is as follows: As of May 31, 2015 As of Aug. 31, 2014 (Dollars in millions) Carrying Amount Accumulated Amortization Net Carrying Amount Accumulated Amortization Net Acquired Germplasm $ 1,075 $ (743 ) $ 332 $ 1,116 $ (751 ) $ 365 Acquired Intellectual Property 1,167 (550 ) 617 1,160 (507 ) 653 Trademarks 354 (149 ) 205 366 (142 ) 224 Customer Relationships 318 (207 ) 111 338 (204 ) 134 Other 183 (117 ) 66 181 (106 ) 75 Total Other Intangible Assets, Finite Lives $ 3,097 $ (1,766 ) $ 1,331 $ 3,161 $ (1,710 ) $ 1,451 In Process Research & Development, Indefinite Lives 101 — 101 103 — 103 Total Other Intangible Assets $ 3,198 $ (1,766 ) $ 1,432 $ 3,264 $ (1,710 ) $ 1,554 |
Intangible Assets Future Amortization Expense | The estimated intangible asset amortization expense for fiscal year 2015 through fiscal year 2019 is as follows: (Dollars in millions) Amount 2015 $ 152 2016 178 2017 174 2018 144 2019 132 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
May. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables set forth by level Monsanto’s assets and liabilities disclosed at fair value on a recurring basis as of May 31, 2015 , and Aug. 31, 2014 . 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 May 31, 2015, Using (Dollars in millions) Level 1 Level 2 Level 3 Net Balance Assets at Fair Value: Cash equivalents $ 806 $ — $ — $ 806 Short-term investments 28 — — 28 Available-for-sale securities 20 32 — 52 Derivative assets related to: Foreign currency contracts — 39 — 39 Commodity contracts 9 15 — 24 Interest rate contracts — 1 — 1 Total Assets at Fair Value $ 863 $ 87 $ — $ 950 Liabilities at Fair Value: Short-term debt instruments (1) $ — $ 492 $ 99 $ 591 Long-term debt instruments (1) — 8,458 — 8,458 Derivative liabilities related to: Foreign currency contracts — 9 — 9 Commodity contracts 67 49 — 116 Interest rate contracts — 1 — 1 Total Liabilities at Fair Value $ 67 $ 9,009 $ 99 $ 9,175 (1) 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, 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: Short-term debt instruments $ — $ 97 $ 136 $ 233 Long-term debt instruments (1) — 7,928 — 7,928 Derivative liabilities related to: Foreign currency — 19 — 19 Commodity contracts 76 15 — 91 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. |
Level 3 Rollforward | The following table summarizes the change in fair value of the Level 3 liability for the nine months ended May 31, 2015 . (Dollars in millions) Balance Aug. 31, 2014 (1) $ 136 Accretion expense 11 Payments (7 ) Effect of foreign currency translation adjustments (41 ) Balance May 31, 2015 (1) $ 99 (1) Includes 300,000 mandatorily redeemable shares outstanding with a par value of 1,000 Brazilian reais (approximately $315 and $447 ) as of May 31, 2015 , and Aug. 31, 2014 , respectively. |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
May. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments (Notional Amounts) | The notional amounts of the company’s derivative instruments outstanding as of May 31, 2015 , and Aug. 31, 2014 , were as follows: As of (Dollars in millions) May 31, 2015 Aug. 31, 2014 Derivatives Designated as Hedges: Foreign exchange contracts $ 461 $ 585 Commodity contracts 863 626 Interest rate contracts 150 — Total Derivatives Designated as Hedges $ 1,474 $ 1,211 Derivatives Not Designated as Hedges: Foreign exchange contracts $ 1,577 $ 2,054 Commodity contracts 216 272 Interest rate contracts 112 160 Total Derivatives Not Designated as Hedges $ 1,905 $ 2,486 |
Fair Values of Derivative Instruments | The net presentation of the company’s derivative instruments outstanding was as follows: As of May 31, 2015 (Dollars 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) $ — $ (19 ) $ (19 ) $ 19 $ — Total trade receivables, net — (19 ) (19 ) 19 — $ 3,998 $ 3,998 Miscellaneous receivables Derivatives designated as hedges: Foreign exchange contracts 27 — 27 — 27 Derivatives not designated as hedges: Foreign exchange contracts 11 — 11 — 11 Commodity contracts 15 — 15 — 15 Total miscellaneous receivables 53 — 53 — 53 824 877 Other current assets Derivatives designated as hedges: Commodity contracts (1) 9 (60 ) (51 ) 51 — Interest rate contracts (1) 1 (1 ) — — — Derivatives not designated as hedges: Commodity contracts (1) — (1 ) (1 ) 1 — Total other current assets 10 (62 ) (52 ) 52 — 185 185 Other assets Derivatives designated as hedges: Foreign exchange contracts 1 — 1 — 1 Commodity contracts (1) — (5 ) (5 ) 5 — Total other assets 1 (5 ) (4 ) 5 1 877 878 Total Asset Derivatives $ 64 $ (86 ) $ (22 ) $ 76 $ 54 Liability Derivatives: Trade receivables, net Derivatives not designated as hedges: Commodity contracts (1) $ 19 $ (19 ) $ — $ — $ — Total trade receivables, net 19 (19 ) — — — Other current assets Derivatives designated as hedges: Commodity contracts (1) 60 (60 ) — — — Interest rate contracts (1) 1 (1 ) — — — Derivatives not designated as hedges: Commodity contracts (1) 1 (1 ) — — — Total other current assets 62 (62 ) — — — Other assets Derivatives designated as hedges: Commodity contracts (1) 5 (5 ) — — — Total other assets 5 (5 ) — — — Miscellaneous short-term accruals Derivatives designated as hedges: Commodity contracts 22 — 22 — 22 Derivatives not designated as hedges: Foreign exchange contracts 9 — 9 — 9 Total miscellaneous short-term accruals 31 — 31 — 31 $ 823 $ 854 Other liabilities Derivatives designated as hedges: Commodity contracts 9 — 9 — 9 Total other liabilities 9 — 9 — 9 317 326 Total Liability Derivatives $ 126 $ (86 ) $ 40 $ — $ 40 (1) As allowed by the Derivatives and Hedging topic of the ASC, derivative assets and liabilities have been offset by collateral subject to an enforceable master netting arrangement or similar arrangement. Therefore, 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, 2014 (Dollars 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. |
Gains Losses of Derivative Instruments | The gains and losses on the company’s derivative instruments were as follows: Amount of Gain (Loss) Recognized in AOCI (1) (Effective Portion) Amount of Gain (Loss) Recognized in Income (2)(3) Three Months Ended Three Months Ended Statement of Consolidated Operations Classification (Dollars in millions) May 31, 2015 May 31, 2014 May 31, 2015 May 31, 2014 Derivatives Designated as Hedges: Fair value hedges: Commodity contracts $ 10 $ (10 ) Cost of goods sold Cash flow hedges: Foreign currency contracts $ (2 ) $ (4 ) 10 2 Net sales Foreign currency contracts 7 1 4 (2 ) Cost of goods sold Commodity contracts (48 ) 11 (30 ) (1 ) Cost of goods sold Interest rate contracts (16 ) — (3 ) (3 ) Interest expense Total Derivatives Designated as Hedges (59 ) 8 (9 ) (14 ) Derivatives Not Designated as Hedges: Foreign currency contracts (4) (3 ) 5 Other expense, net Commodity contracts (12 ) (3 ) Net sales Commodity contracts (1 ) (2 ) Cost of goods sold Total Derivatives Not Designated as Hedges (16 ) — Total Derivatives $ (59 ) $ 8 $ (25 ) $ (14 ) (1) Accumulated other comprehensive income (AOCI) (loss). (2) For derivatives designated as cash flow hedges under the Derivatives and Hedging topic of the ASC, this represents the effective portion of the gain (loss) reclassified from AOCI into income during the period. (3) The gain or loss on derivatives designated as hedges from ineffectiveness included in current earnings is not significant during the three months ended May 31, 2015 , and May 31, 2014 . No gains or losses were excluded from the assessment of hedge effectiveness during the three months ended May 31, 2015 , and May 31, 2014 . (4) Loss and gain on foreign currency contracts not designated as hedges includes foreign currency transaction losses of $13 million and $12 million during the three months ended May 31, 2015 , and May 31, 2014 , respectively. Amount of Gain (Loss) Recognized in AOCI (1) (Effective Portion) Amount of Gain (Loss) Recognized in Income (2)(3) Nine Months Ended Nine Months Ended Statement of Consolidated Operations Classification (Dollars in millions) May 31, 2015 May 31, 2014 May 31, 2015 May 31, 2014 Derivatives Designated as Hedges: Fair value hedges: Commodity contracts $ 9 $ (24 ) Cost of goods sold Cash flow hedges: Foreign currency contracts $ 37 $ (2 ) 24 4 Net sales Foreign currency contracts 28 (3 ) 5 (2 ) Cost of goods sold Commodity contracts (91 ) (32 ) (77 ) (14 ) Cost of goods sold Interest rate contracts (87 ) (2 ) (9 ) (9 ) Interest expense Total Derivatives Designated as Hedges (113 ) (39 ) (48 ) (45 ) Derivatives Not Designated as Hedges: Foreign currency contracts (4) (118 ) 30 Other expense, net Commodity contracts (6 ) — Net sales Commodity contracts — 5 Cost of goods sold Total Derivatives Not Designated as Hedges (124 ) 35 Total Derivatives $ (113 ) $ (39 ) $ (172 ) $ (10 ) (1) Accumulated other comprehensive income (AOCI) (loss). (2) For derivatives designated as cash flow hedges under the Derivatives and Hedging topic of the ASC, this represents the effective portion of the gain (loss) reclassified from AOCI into income during the period. (3) The gain or loss on derivatives designated as hedges from ineffectiveness included in current earnings is not significant during the nine months ended May 31, 2015 , and May 31, 2014 . No gains or losses were excluded from the assessment of hedge effectiveness during the nine months ended May 31, 2015 , and May 31, 2014 . (4) Loss and gain on foreign currency contracts not designated as hedges is offset by foreign currency transaction gain of $94 million and loss of $113 million during the nine months ended May 31, 2015 , and May 31, 2014 , respectively. |
POSTRETIREMENT BENEFITS - PEN38
POSTRETIREMENT BENEFITS - PENSIONS, HEALTH CARE AND OTHER (Tables) | 9 Months Ended |
May. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost | Three Months Ended May 31, 2015 Three Months Ended May 31, 2014 Pension Benefits (Dollars in millions) U.S. Outside the U.S. Total U.S. Outside the U.S. Total Service Cost for Benefits Earned During the Period $ 16 $ 4 $ 20 $ 16 $ 2 $ 18 Interest Cost on Benefit Obligation 22 2 24 23 2 25 Assumed Return on Plan Assets (38 ) (3 ) (41 ) (35 ) (2 ) (37 ) Amortization of Unrecognized Net Loss 13 2 15 16 1 17 Total Net Periodic Benefit Cost $ 13 $ 5 $ 18 $ 20 $ 3 $ 23 Nine Months Ended May 31, 2015 Nine Months Ended May 31, 2014 Pension Benefits (Dollars in millions) U.S. Outside the U.S. Total U.S. Outside the U.S. Total Service Cost for Benefits Earned During the Period $ 48 $ 11 $ 59 $ 46 $ 8 $ 54 Interest Cost on Benefit Obligation 66 6 72 69 6 75 Assumed Return on Plan Assets (114 ) (9 ) (123 ) (104 ) (6 ) (110 ) Amortization of Unrecognized Net Loss 39 6 45 47 1 48 Curtailment and Settlement Charge — 1 1 — 2 2 Total Net Periodic Benefit Cost $ 39 $ 15 $ 54 $ 58 $ 11 $ 69 |
Net Periodic Cost Postretirement | Health Care and Other Postretirement Benefits Three Months Ended Nine Months Ended (Dollars in millions) May 31, 2015 May 31, 2014 May 31, 2015 May 31, 2014 Service Cost for Benefits Earned During the Period $ 2 $ 1 $ 5 $ 6 Interest Cost on Benefit Obligation 1 1 4 5 Amortization of Unrecognized Net Gain (1 ) (3 ) (3 ) (11 ) Total Net Periodic Benefit Cost $ 2 $ (1 ) $ 6 $ — |
STOCK BASED COMPENSATION PLAN39
STOCK BASED COMPENSATION PLANS (Tables) | 9 Months Ended |
May. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Components of Stock Based Compensation | The following table shows total stock-based compensation expense included in the Statements of Consolidated Operations for the three and nine months ended May 31, 2015 , and May 31, 2014 , respectively. Stock-based compensation cost capitalized in inventory was $3 million as of both May 31, 2015 , and Aug. 31, 2014 . Three Months Ended Nine Months Ended (Dollars in millions) May 31, 2015 May 31, 2014 May 31, 2015 May 31, 2014 Cost of Goods Sold $ 2 $ 2 $ 6 $ 6 Selling, General and Administrative Expenses 22 17 69 60 Research and Development Expenses 7 12 23 22 Pre-Tax Stock-Based Compensation Expense 31 31 98 88 Income Tax Benefit (10 ) (10 ) (31 ) (29 ) Net Stock-Based Compensation Expense $ 21 $ 21 $ 67 $ 59 |
Restricted Stock | The following table summarizes stock-based compensation activity for and as of the nine months ended May 31, 2015 . Monsanto Stock Plans include employees under the Monsanto Company 2005 Long-Term Incentive Plan, as amended and restated effective Jan. 24, 2012, and employees under The Climate Corporation 2006 Stock Plan, as amended on Oct. 30, 2013. The Director Plan includes members of the Board of Directors under the Monsanto Non-Employee Director Equity Incentive Compensation Plan. Monsanto Stock Plans Director Plan Stock Options Restricted Stock Units Deferred Stock Restricted Stock Granted 1,726,580 724,409 17,518 3,307 Weighted-average grant date fair value per share $ 24.37 $ 108.88 $ 115.65 $ 115.65 Pre-tax unrecognized compensation expense, net of estimated forfeitures as applicable (in millions) $ 60.9 $ 116.2 $ 0.5 $ 0.3 Remaining weighted-average period of expense recognition/requisite service periods (in years) 2.0 2.4 0.3 1.2 |
ACCUMULATED OTHER COMPREHENSI40
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 9 Months Ended |
May. 31, 2015 | |
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: (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) Income 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 ) Other comprehensive loss before reclassifications (1,393 ) — (61 ) — (1,454 ) Amounts reclassified from accumulated other comprehensive loss — — 34 30 64 Net current-period other comprehensive (loss) income (1,393 ) — (27 ) 30 (1,390 ) Balance as of May 31, 2015 $ (2,124 ) $ 5 $ (194 ) $ (191 ) $ (2,504 ) |
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. Three Months Ended Nine Months Ended (Dollars in millions) May 31, 2015 May 31, 2014 May 31, 2015 May 31, 2014 Affected Line Item in the Statements of Consolidated Operations Available for Sale Securities: Gain on Sale of Security $ — $ (2 ) $ — $ (2 ) Other expense, net Impairment — — — 1 Other expense, net — (2 ) — (1 ) Total before income taxes — 1 — 1 Income tax provision $ — $ (1 ) $ — $ — Net of tax Cash Flow Hedges: Foreign Exchange Contracts $ (10 ) $ (2 ) $ (24 ) $ (4 ) Net sales Foreign Exchange Contracts (4 ) 2 (5 ) 2 Cost of goods sold Commodity Contracts 30 1 77 14 Cost of goods sold Interest Rate Contracts 3 3 9 9 Interest expense 19 4 57 21 Total before income taxes (8 ) (2 ) (23 ) (8 ) Income tax provision $ 11 $ 2 $ 34 $ 13 Net of tax Postretirement Benefit Items: Amortization of Unrecognized Net Loss $ 5 $ 4 $ 16 $ 10 Inventory/Cost of goods sold (1) Amortization of Unrecognized Net Loss 11 9 32 26 Selling, general and administrative expenses 16 13 48 36 Total before income taxes (6 ) (5 ) (18 ) (14 ) Income tax provision $ 10 $ 8 $ 30 $ 22 Net of tax Total Reclassifications For The Period $ 21 $ 9 $ 64 $ 35 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 $5 million and $4 million of net periodic benefit cost to inventory, of which approximately $2 million was recognized in cost of goods sold during each of the three months ended May 31, 2015 , and May 31, 2014 , respectively. The company recorded $16 million and $10 million of net periodic benefit cost to inventory, of which approximately $13 million and $10 million was recognized in cost of goods sold during the nine months ended May 31, 2015 , and May 31, 2014 , respectively. See Note 14 — Postretirement Benefits - Pensions, Health Care and Other — for additional information. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
May. 31, 2015 | |
Earnings Per Share [Abstract] | |
Basic Earnings Per Share Table | Three Months Ended Nine Months Ended (Shares in millions) May 31, 2015 May 31, 2014 May 31, 2015 May 31, 2014 Weighted-Average Number of Common Shares 472.8 524.3 479.5 525.4 Dilutive Potential Common Shares 4.4 5.5 4.8 5.8 Antidilutive Potential Common Shares 1.7 1.7 1.7 1.7 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 — 0.1 0.1 |
SUPPLEMENTAL CASH FLOW INFORM42
SUPPLEMENTAL CASH FLOW INFORMATION SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 9 Months Ended |
May. 31, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Cash Payments For Interest And Taxes | Cash payments for interest and taxes were as follows: Nine Months Ended (Dollars in millions) May 31, 2015 May 31, 2014 Interest $ 212 $ 118 Taxes 900 788 |
SEGMENT AND GEOGRAPHIC DATA (Ta
SEGMENT AND GEOGRAPHIC DATA (Tables) | 9 Months Ended |
May. 31, 2015 | |
Segment Reporting [Abstract] | |
Operating Segment Information | Data for the Seeds and Genomics and Agricultural Productivity reportable segments, as well as for Monsanto’s significant operating segments, is presented in the table as follows: Three Months Ended Nine Months Ended (Dollars in millions) May 31, 2015 May 31, 2014 May 31, 2015 May 31, 2014 Net Sales (1) Corn seed and traits $ 1,515 $ 1,303 $ 5,355 $ 5,771 Soybean seed and traits 835 816 2,114 1,903 Cotton seed and traits 371 401 484 587 Vegetable seeds 197 221 559 597 All other crops seeds and traits 275 299 480 506 Total Seeds and Genomics $ 3,193 $ 3,040 $ 8,992 $ 9,364 Agricultural productivity 1,386 $ 1,210 3,654 3,861 Total Agricultural Productivity $ 1,386 $ 1,210 $ 3,654 $ 3,861 Total $ 4,579 $ 4,250 $ 12,646 $ 13,225 Gross Profit Corn seed and traits $ 947 $ 751 $ 3,349 $ 3,654 Soybean seed and traits 528 498 1,413 1,205 Cotton seed and traits 292 304 370 424 Vegetable seeds 87 107 245 271 All other crops seeds and traits 201 195 296 299 Total Seeds and Genomics $ 2,055 $ 1,855 $ 5,673 $ 5,853 Agricultural productivity 681 476 1,513 1,488 Total Agricultural Productivity $ 681 $ 476 $ 1,513 $ 1,488 Total $ 2,736 $ 2,331 $ 7,186 $ 7,341 EBIT (2)(3) Seeds and Genomics $ 1,113 $ 898 $ 2,979 $ 3,057 Agricultural Productivity 494 313 1,098 1,071 Total $ 1,607 $ 1,211 $ 4,077 $ 4,128 Depreciation and Amortization Expense Seeds and Genomics $ 144 $ 145 $ 442 $ 416 Agricultural Productivity 32 30 96 91 Total $ 176 $ 175 $ 538 $ 507 (1) Represents net sales from continuing operations. (2) EBIT is defined as earnings before interest and taxes; see the following table for reconciliation. Earnings is intended to mean net income as presented in the Statements of Consolidated Operations under U.S. GAAP. EBIT is an operating performance measure for the two reportable segments. (3) Agricultural Productivity EBIT includes income from operations of discontinued businesses of $37 million and $22 million for the nine months ended May 31, 2015 and 2014, respectively. |
The reconciliation of EBIT to Net Income | A reconciliation of EBIT to net income for each period is as follows: Three Months Ended Nine Months Ended (Dollars in millions) May 31, 2015 May 31, 2014 May 31, 2015 May 31, 2014 EBIT (1) $ 1,607 $ 1,211 $ 4,077 $ 4,128 Interest Expense — Net 78 25 219 71 Income Tax Provision (2) 388 328 1,049 1,161 Net Income Attributable to Monsanto Company $ 1,141 $ 858 $ 2,809 $ 2,896 (1) Includes the income from operations of discontinued businesses and pre-tax noncontrolling interests. (2) Includes the income tax benefit on noncontrolling interest and the income tax provision on discontinued operations. |
BACKGROUND AND BASIS OF PRESE44
BACKGROUND AND BASIS OF PRESENTATION BACKGROUND AND BASIS OF PRESENTATION (Details) - 9 months ended May. 31, 2015 - segment | Total |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Reportable Segments | 2 |
Earn-out period, length of time | 10 years |
BUSINESS COMBINATIONS AND COL45
BUSINESS COMBINATIONS AND COLLABORATIVE ARRANGEMENTS Business Combinations (Details) $ in Millions | 1 Months Ended | 9 Months Ended | |||
Nov. 30, 2013USD ($) | May. 31, 2015USD ($) | May. 31, 2014USD ($) | May. 08, 2015SFr / shares | Nov. 29, 2013USD ($) | |
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 8 | $ 922 | |||
Syngenta AG [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Share Price | SFr / shares | SFr 449 | ||||
Business Combination, Consideration Offered, Percentage Payable in Stock | 55.00% | ||||
Business Combination, Consideration Offered, Percentage Payable in Cash | 45.00% | ||||
The Climate Corporation [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||||
Business Acquisition Fair Value | $ 932 | ||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 917 |
CUSTOMER FINANCING PROGRAMS (De
CUSTOMER FINANCING PROGRAMS (Details) $ in Millions, BRL in Billions | 3 Months Ended | 9 Months Ended | |||||
May. 31, 2015USD ($) | May. 31, 2014USD ($) | May. 31, 2015USD ($) | May. 31, 2015BRL | May. 31, 2014USD ($) | Aug. 31, 2014USD ($) | ||
US agreement to sell trade receivables [Member] | |||||||
Customer Financing Programs [Line Items] | |||||||
Outstanding balance | [1] | $ 123 | $ 123 | $ 436 | |||
Maximum future payout under recourse provisions | [1] | 4 | 4 | 21 | |||
Transactions that Qualify for Sales Treatment | [1] | 114 | $ 0 | 118 | $ 23 | ||
Maximum Amount of Potential Sales of Receivables | 960 | ||||||
Other agreements to sell trade receivables [Member] | |||||||
Customer Financing Programs [Line Items] | |||||||
Outstanding balance | [2] | 25 | 25 | 67 | |||
Maximum future payout under recourse provisions | [2] | 6 | 6 | 34 | |||
Transactions that Qualify for Sales Treatment | [2] | 6 | $ 7 | 43 | $ 17 | ||
Agreements With Lenders [Member] | |||||||
Customer Financing Programs [Line Items] | |||||||
Outstanding balance | [3] | 86 | 86 | 71 | |||
Maximum future payout under recourse provisions | [3] | $ 73 | 73 | $ 51 | |||
Brazil Revolving Financing Program [Member] | |||||||
Customer Financing Programs [Line Items] | |||||||
Maximum Amount of Potential Sales of Receivables | $ 315 | BRL 1 | |||||
[1] | Monsanto has agreements in the United States to sell trade receivables, both with and without recourse, up to a maximum outstanding balance of $960 million and to service such accounts. These receivables qualify for sales treatment under the Transfers and Servicing topic of the ASC and accordingly, the proceeds are included in net cash provided by operating activities in the Statements of Consolidated Cash Flows. The liability for the guarantees for sales with recourse is recorded at an amount that approximates fair value, based upon the company’s historical collection experience and a current assessment of credit exposure. | ||||||
[2] | Monsanto has various agreements in European and Latin American countries to sell trade receivables, both with and without recourse. The sales within these programs qualify for sales treatment under the Transfers and Servicing topic of the ASC and accordingly, the proceeds are included in net cash provided by operating activities in the Statements of Consolidated Cash Flows. The liability for the guarantees for sales with recourse is recorded at an amount that approximates fair value, based on the company’s historical collection experience for the customers associated with the sale of the receivables and a current assessment of credit exposure. | ||||||
[3] | Monsanto has additional agreements with lenders to establish programs that provide financing for select customers in the United States, Brazil, Latin America and Europe. Monsanto provides various levels of recourse through guarantees of the accounts in the event of customer default. The term of the guarantee is equivalent to the term of the customer loans. The liability for the guarantees is recorded at an amount that approximates fair value, based on the company’s historical collection experience with customers that participate in the program and a current assessment of credit exposure. If performance is required under the guarantee, Monsanto may retain amounts that are subsequently collected from customers. |
VARIABLE INTEREST ENTITIES Narr
VARIABLE INTEREST ENTITIES Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
May. 31, 2015 | Aug. 31, 2014 | |
Revolving Financing Programs [Line Items] | ||
Variable Interest Entity, Financial or Other Support, Percentage | 9.00% | |
Senior Interest [Member] | ||
Revolving Financing Programs [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 90.00% | 91.00% |
Monsanto Interest [Member] | ||
Revolving Financing Programs [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 10.00% | 9.00% |
Brazil Revolving Financing Program [Member] | ||
Revolving Financing Programs [Line Items] | ||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 11 | $ 13 |
VARIABLE INTEREST ENTITIES VARI
VARIABLE INTEREST ENTITIES VARIABLE INTEREST ENTITIES Schedules (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
May. 31, 2015 | Aug. 31, 2014 | |
Biotechnology Company [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | $ 62 | $ 43 |
Variable Interest Entity, Financial or Other Support, Maximum Commitment Amount | 118 | |
Brazil Revolving Financing Program [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | $ 11 | $ 13 |
Monsanto Interest [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 10.00% | 9.00% |
Senior Interest [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 90.00% | 91.00% |
RECEIVABLES (Details)
RECEIVABLES (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
May. 31, 2015 | Aug. 31, 2014 | ||
Allowance For Doubtful Accounts Current [Abstract] | |||
Net allowances | $ 80 | $ 72 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning Balance | 125 | 104 | |
Incremental Provision | 2 | 11 | |
Recoveries | (1) | (4) | |
Write-offs | (6) | (15) | |
Other | [1] | 5 | 29 |
Ending Balance | 125 | 125 | |
Long Term Receivables [Abstract] | |||
Long term customer receivables, gross | $ 137 | $ 136 | |
[1] | Includes reclassifications from the allowance for current receivables and foreign currency translation adjustments. |
INVENTORY (Details)
INVENTORY (Details) - USD ($) $ in Millions | May. 31, 2015 | Aug. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Finished Goods | $ 1,911 | $ 1,591 |
Goods In Process | 1,455 | 1,721 |
Raw Materials and Supplies | 419 | 445 |
Inventory at FIFO Cost | 3,785 | 3,757 |
Excess of FIFO over LIFO Cost | (160) | (160) |
Total | $ 3,625 | $ 3,597 |
GOODWILL AND OTHER INTANGIBLE51
GOODWILL AND OTHER INTANGIBLE ASSETS Schedule of net carrying amount of goodwill (Details) - USD ($) $ in Millions | 9 Months Ended | |
May. 31, 2015 | Mar. 01, 2015 | |
Goodwill [Line Items] | ||
Goodwill, Impaired, Accumulated Impairment Loss | $ 0 | |
Goodwill [Roll Forward] | ||
Balance | $ 4,319 | |
Effect of foreign currency translation and other adjustments | (166) | |
Balance | 4,153 | |
Seeds And Genomics [Member] | ||
Goodwill [Roll Forward] | ||
Balance | 4,262 | |
Effect of foreign currency translation and other adjustments | (161) | |
Balance | 4,101 | |
Agricultural Productivity [Member] | ||
Goodwill [Roll Forward] | ||
Balance | 57 | |
Effect of foreign currency translation and other adjustments | (5) | |
Balance | $ 52 |
GOODWILL AND OTHER INTANGIBLE52
GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL AND OTHER INTANGIBLE ASSETS Information of other intangible assets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | Aug. 31, 2014 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Carrying Amount | $ 3,097 | $ 3,097 | $ 3,161 | ||
Accumulated Amortization | (1,766) | (1,766) | (1,710) | ||
Net | 1,331 | 1,331 | 1,451 | ||
Total Other Intangible Assets, Carrying Amount | 3,198 | 3,198 | 3,264 | ||
Total Other Intangible Assets, net | 1,432 | 1,432 | 1,554 | ||
Amortization expense | 34 | $ 38 | 107 | $ 98 | |
Acquired Intellectual Property [Member] | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Carrying Amount | 1,167 | 1,167 | 1,160 | ||
Accumulated Amortization | (550) | (550) | (507) | ||
Net | 617 | 617 | 653 | ||
Acquired Germplasm [Member] | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Carrying Amount | 1,075 | 1,075 | 1,116 | ||
Accumulated Amortization | (743) | (743) | (751) | ||
Net | 332 | 332 | 365 | ||
Trademarks [Member] | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Carrying Amount | 354 | 354 | 366 | ||
Accumulated Amortization | (149) | (149) | (142) | ||
Net | 205 | 205 | 224 | ||
Customer Relationships [Member] | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Carrying Amount | 318 | 318 | 338 | ||
Accumulated Amortization | (207) | (207) | (204) | ||
Net | 111 | 111 | 134 | ||
Other Intangible Assets [Member] | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Carrying Amount | 183 | 183 | 181 | ||
Accumulated Amortization | (117) | (117) | (106) | ||
Net | 66 | 66 | 75 | ||
In Process Research and Development [Member] | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
In Process Research & Development, Indefinite Lives | $ 101 | $ 101 | $ 103 |
GOODWILL AND OTHER INTANGIBLE53
GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL AND OTHER INTANGIBLE ASSETS Schedule of estimated amortization expense (Details) $ in Millions | May. 31, 2015USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,015 | $ 152 |
2,016 | 178 |
2,017 | 174 |
2,018 | 144 |
2,019 | $ 132 |
INVESTMENTS Investments (Detail
INVESTMENTS Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | Aug. 31, 2014 | |
Schedule of Investments and Equity Affiliates [Line Items] | |||||
Short-term investments | $ 28 | $ 28 | $ 40 | ||
Fair Value | 52 | 52 | 22 | ||
Available-for-sale Securities [Member] | |||||
Schedule of Investments and Equity Affiliates [Line Items] | |||||
Fair Value | 52 | 52 | 22 | ||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities | 0 | $ 0 | 0 | $ 0 | |
Cost-method Investments [Member] | |||||
Schedule of Investments and Equity Affiliates [Line Items] | |||||
Recorded cost | 95 | 95 | $ 91 | ||
Cost-method Investments, Other than Temporary Impairment | $ 0 | $ 0 | $ 0 | $ 0 |
INCOME TAXES (Details)
INCOME TAXES (Details) $ in Millions | 9 Months Ended |
May. 31, 2015USD ($) | |
Income Tax Disclosure [Abstract] | |
Discrete tax benefit | $ 67 |
DEBT AND OTHER CREDIT ARRANGE56
DEBT AND OTHER CREDIT ARRANGEMENTS (Details) - USD ($) $ in Millions | 9 Months Ended | |||
May. 31, 2015 | Aug. 31, 2014 | |||
Debt Instrument [Line Items] | ||||
Short-term Debt, Fair Value | $ 591 | [1] | $ 233 | |
Long-term Debt, Fair Value | 8,458 | [1] | 7,928 | [2] |
Senior Notes Due Twenty Forty Five [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 365 | |||
Interest Rate | 4.30% | |||
Maturity Date | Jan. 29, 2045 | |||
Senior Notes Due Twenty Seventeen [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 500 | |||
Interest Rate | 1.15% | |||
Maturity Date | Jun. 30, 2017 | |||
Senior Notes Due Twenty Twenty Five [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 300 | |||
Interest Rate | 2.85% | |||
Maturity Date | Apr. 15, 2025 | |||
Floating Rate Notes Due Twenty Sixteen [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 400 | |||
Maturity Date | Nov. 7, 2016 | |||
Senior Notes Due Twenty Eighteen [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 300 | |||
Interest Rate | 1.85% | |||
Maturity Date | Nov. 15, 2018 | |||
Senior Notes Due Twenty Nineteen [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 500 | |||
Interest Rate | 2.125% | |||
Maturity Date | Jul. 15, 2019 | |||
Senior Notes Due Twenty Twenty One [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 500 | |||
Interest Rate | 2.75% | |||
Maturity Date | Jul. 15, 2021 | |||
Senior Notes Due Twenty Twenty Four [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 750 | |||
Interest Rate | 3.375% | |||
Maturity Date | Jul. 15, 2024 | |||
Senior Notes Due Twenty Thirty Four [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 500 | |||
Interest Rate | 4.20% | |||
Maturity Date | Jul. 15, 2034 | |||
Senior Notes Due Twenty Forty Four [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 1,000 | |||
Interest Rate | 4.40% | |||
Maturity Date | Jul. 15, 2044 | |||
Senior Notes Due Twenty Sixty Four [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 750 | |||
Interest Rate | 4.70% | |||
Maturity Date | Jul. 15, 2064 | |||
Senior Notes Due Twenty Forty Three [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 300 | |||
Interest Rate | 4.65% | |||
Maturity Date | Nov. 15, 2043 | |||
Credit Facility Agreement 2011 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 2,500 | $ 2,000 | ||
Senior Notes Due April Twenty Forty Five [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 500 | |||
Interest Rate | 3.95% | |||
Maturity Date | Apr. 15, 2045 | |||
Line of Credit [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility, maximum borrowing capacity | $ 3,000 | |||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 0 | |||
[1] | 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 FAIR VA
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS Fair Value Hierarchy Levels (Details) - USD ($) $ in Millions | 9 Months Ended | ||||
May. 31, 2015 | May. 31, 2014 | Aug. 31, 2014 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash equivalents | $ 806 | $ 1,664 | |||
Short-term investments | 28 | 40 | |||
Available-for-sale securities | 52 | 22 | |||
Foreign currency contracts | 39 | 11 | |||
Commodity contracts | 24 | 36 | |||
Interest Rate Derivative Assets, at Fair Value | 1 | ||||
Total Assets at Fair Value | 950 | 1,773 | |||
Foreign currency contracts | 9 | 19 | |||
Commodity contracts | 116 | 91 | |||
Interest Rate Derivative Liabilities, at Fair Value | 1 | ||||
Short-term Debt, Fair Value | 591 | [1] | 233 | ||
Long-term Debt, Fair Value | 8,458 | [1] | 7,928 | [2] | |
Total Liabilities Recorded and Not Recorded at Fair Value | 9,175 | 8,271 | |||
Assets, Fair Value Disclosure, Nonrecurring | 0 | $ 0 | |||
Liabilities, Fair Value Adjustment | 0 | $ 0 | |||
Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash equivalents | 806 | 1,664 | |||
Short-term investments | 28 | 40 | |||
Available-for-sale securities | 20 | 22 | |||
Foreign currency contracts | 0 | 0 | |||
Commodity contracts | 9 | 20 | |||
Interest Rate Derivative Assets, at Fair Value | 0 | ||||
Total Assets at Fair Value | 863 | 1,746 | |||
Foreign currency contracts | 0 | 0 | |||
Commodity contracts | 67 | 76 | |||
Interest Rate Derivative Liabilities, at Fair Value | 0 | ||||
Short-term Debt, Fair Value | 0 | [1] | 0 | ||
Long-term Debt, Fair Value | 0 | [1] | 0 | [2] | |
Total Liabilities Recorded and Not Recorded at Fair Value | 67 | 76 | |||
Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash equivalents | 0 | 0 | |||
Short-term investments | 0 | 0 | |||
Available-for-sale securities | 32 | 0 | |||
Foreign currency contracts | 39 | 11 | |||
Commodity contracts | 15 | 16 | |||
Interest Rate Derivative Assets, at Fair Value | 1 | ||||
Total Assets at Fair Value | 87 | 27 | |||
Foreign currency contracts | 9 | 19 | |||
Commodity contracts | 49 | 15 | |||
Interest Rate Derivative Liabilities, at Fair Value | 1 | ||||
Short-term Debt, Fair Value | 492 | [1] | 97 | ||
Long-term Debt, Fair Value | 8,458 | [1] | 7,928 | [2] | |
Total Liabilities Recorded and Not Recorded at Fair Value | 9,009 | 8,059 | |||
Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash equivalents | 0 | 0 | |||
Short-term investments | 0 | 0 | |||
Available-for-sale securities | 0 | 0 | |||
Foreign currency contracts | 0 | 0 | |||
Commodity contracts | 0 | 0 | |||
Interest Rate Derivative Assets, at Fair Value | 0 | ||||
Total Assets at Fair Value | 0 | 0 | |||
Foreign currency contracts | 0 | 0 | |||
Commodity contracts | 0 | 0 | |||
Interest Rate Derivative Liabilities, at Fair Value | 0 | ||||
Short-term Debt, Fair Value | 99 | [1] | 136 | ||
Long-term Debt, Fair Value | 0 | [1] | 0 | [2] | |
Total Liabilities Recorded and Not Recorded at Fair Value | $ 99 | $ 136 | |||
[1] | 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 Summary
FAIR VALUE MEASUREMENTS Summary of the Change in Level 3 Liability (Details) $ / shares in Units, $ in Millions | 9 Months Ended | ||||
May. 31, 2015USD ($)$ / sharesshares | May. 31, 2015BRL / sharesshares | Aug. 31, 2014$ / sharesshares | Aug. 31, 2014BRL / sharesshares | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Beginning Balance | [1] | $ 136 | |||
Accretion expense | 11 | ||||
Payments | (7) | ||||
Effect of foreign currency translation adjustments | (41) | ||||
Ending Balance | [1] | $ 99 | |||
Mandatorily Redeemable Shares Outstanding | shares | 300,000 | 300,000 | 300,000 | 300,000 | |
Mandatorily Redeemable Shares, Par Value | (per share) | $ 315 | BRL 1,000 | $ 447 | BRL 1,000 | |
[1] | Includes 300,000 mandatorily redeemable shares outstanding with a par value of 1,000 Brazilian reais (approximately $315 and $447) as of May 31, 2015, and Aug. 31, 2014, respectively. |
FINANCIAL INSTRUMENTS Narrative
FINANCIAL INSTRUMENTS Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | Aug. 31, 2014 | |
Derivatives, Fair Value [Line Items] | |||||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ (86) | ||||
Discontinuation of Cash Flow Hedge | $ 0 | $ 0 | |||
Loss on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring | $ 2 | 2 | |||
subject to master netting arrangement, or similar agreement [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability Subject to Master Netting Arrangement, or Similar Agreement | $ 29 | $ 29 | $ 11 | ||
Foreign Exchange Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Maximum Length of Time Hedged in Cash Flow Hedge | 15 months | ||||
Commodity Contracts | |||||
Derivatives, Fair Value [Line Items] | |||||
Maximum Length of Time Hedged in Cash Flow Hedge | 38 months |
FINANCIAL INSTRUMENTS FINANCIAL
FINANCIAL INSTRUMENTS FINANCIAL INSTRUMENTS Notional Amounts of Derivative Instruments Outstanding (Details) - USD ($) $ in Millions | May. 31, 2015 | Aug. 31, 2014 |
Designated as Hedging Instrument | ||
Derivatives, Notional [Line Items] | ||
Total Derivatives | $ 1,474 | $ 1,211 |
Not Designated as Hedging Instrument | ||
Derivatives, Notional [Line Items] | ||
Total Derivatives | 1,905 | 2,486 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument | ||
Derivatives, Notional [Line Items] | ||
Total Derivatives | 461 | 585 |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument | ||
Derivatives, Notional [Line Items] | ||
Total Derivatives | 1,577 | 2,054 |
Commodity Contracts | Designated as Hedging Instrument | ||
Derivatives, Notional [Line Items] | ||
Total Derivatives | 863 | 626 |
Commodity Contracts | Not Designated as Hedging Instrument | ||
Derivatives, Notional [Line Items] | ||
Total Derivatives | 216 | 272 |
Interest Rate Contracts [Member] | Designated as Hedging Instrument | ||
Derivatives, Notional [Line Items] | ||
Total Derivatives | 150 | 0 |
Interest Rate Contracts [Member] | Not Designated as Hedging Instrument | ||
Derivatives, Notional [Line Items] | ||
Total Derivatives | $ 112 | $ 160 |
FINANCIAL INSTRUMENTS FINANCI61
FINANCIAL INSTRUMENTS FINANCIAL INSTRUMENTS Fair Value of Derivatives Outstanding (Details) - USD ($) $ in Millions | May. 31, 2015 | Aug. 31, 2014 | |||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | $ 64 | $ 47 | |||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (86) | (87) | |||
Derivative Asset, Fair Value, Amount Offset Against Collateral | (22) | (40) | |||
Derivative Asset, Fair Value of Collateral | 76 | 82 | |||
Derivative Asset | 54 | 42 | |||
Accounts Receivable, Net, Current | 3,998 | 2,014 | |||
Miscellaneous receivables | 877 | 817 | |||
Other Assets, Current | 185 | 205 | |||
Other Assets, Noncurrent | 878 | 809 | |||
Derivative Liability, Fair Value, Gross Liability | 126 | 110 | |||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | (86) | (87) | |||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 40 | 23 | |||
Derivative Liability, Fair Value of Collateral | 0 | 0 | |||
Derivative Liability | 40 | 23 | |||
Miscellaneous short-term accruals (variable interest entity restricted - 2015: $7 and 2014: $0) | 854 | 962 | |||
Other Liabilities, Noncurrent | 326 | 342 | |||
Trade Accounts Receivable [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | |||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (19) | (10) | |||
Derivative Asset, Fair Value, Amount Offset Against Collateral | (19) | (10) | |||
Derivative Asset, Fair Value of Collateral | 19 | 10 | |||
Derivative Asset | 0 | 0 | |||
Non-derivative Balances | 3,998 | 2,014 | |||
Derivative Liability, Fair Value, Gross Liability | 19 | 10 | |||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | (19) | (10) | |||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 | |||
Derivative Liability, Fair Value of Collateral | 0 | 0 | |||
Derivative Liability | 0 | 0 | |||
Miscellaneous receivables | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 53 | 22 | |||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | 0 | |||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 53 | 22 | |||
Derivative Asset, Fair Value of Collateral | 0 | 0 | |||
Derivative Asset | 53 | 22 | |||
Non-derivative Balances | 824 | 795 | |||
Other Assets | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 1 | 2 | |||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (5) | (19) | |||
Derivative Asset, Fair Value, Amount Offset Against Collateral | (4) | (17) | |||
Derivative Asset, Fair Value of Collateral | 5 | 19 | |||
Derivative Asset | 1 | 2 | |||
Non-derivative Balances | 877 | 807 | |||
Derivative Liability, Fair Value, Gross Liability | 5 | 19 | |||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | (5) | (19) | |||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 | |||
Derivative Liability, Fair Value of Collateral | 0 | 0 | |||
Derivative Liability | 0 | 0 | |||
Other current assets | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 10 | 23 | |||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (62) | (58) | |||
Derivative Asset, Fair Value, Amount Offset Against Collateral | (52) | (35) | |||
Derivative Asset, Fair Value of Collateral | 52 | 53 | |||
Derivative Asset | 0 | 18 | |||
Non-derivative Balances | 185 | 187 | |||
Derivative Liability, Fair Value, Gross Liability | 62 | 58 | |||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | (62) | (58) | |||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 | |||
Derivative Liability, Fair Value of Collateral | 0 | 0 | |||
Derivative Liability | 0 | 0 | |||
Miscellaneous short term accruals | |||||
Derivatives, Fair Value [Line Items] | |||||
Non-derivative Balances | (823) | (940) | |||
Derivative Liability, Fair Value, Gross Liability | 31 | 22 | |||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | |||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 31 | 22 | |||
Derivative Liability, Fair Value of Collateral | 0 | 0 | |||
Derivative Liability | 31 | 22 | |||
Other liabilities | |||||
Derivatives, Fair Value [Line Items] | |||||
Non-derivative Balances | (317) | (341) | |||
Derivative Liability, Fair Value, Gross Liability | 9 | 1 | |||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | |||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 9 | 1 | |||
Derivative Liability, Fair Value of Collateral | 0 | 0 | |||
Derivative Liability | 9 | 1 | |||
Foreign Exchange Contract [Member] | Miscellaneous receivables | Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 27 | 5 | |||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | 0 | |||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 27 | 5 | |||
Derivative Asset, Fair Value of Collateral | 0 | 0 | |||
Derivative Asset | 27 | 5 | |||
Foreign Exchange Contract [Member] | Miscellaneous receivables | Not Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 11 | 4 | |||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | 0 | |||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 11 | 4 | |||
Derivative Asset, Fair Value of Collateral | 0 | 0 | |||
Derivative Asset | 11 | 4 | |||
Foreign Exchange Contract [Member] | Other Assets | Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 1 | 2 | |||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | 0 | |||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 1 | 2 | |||
Derivative Asset, Fair Value of Collateral | 0 | 0 | |||
Derivative Asset | 1 | 2 | |||
Foreign Exchange Contract [Member] | Miscellaneous short term accruals | Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 6 | ||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | ||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 6 | ||||
Derivative Liability, Fair Value of Collateral | 0 | ||||
Derivative Liability | 6 | ||||
Foreign Exchange Contract [Member] | Miscellaneous short term accruals | Not Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 9 | 13 | |||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | |||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 9 | 13 | |||
Derivative Liability, Fair Value of Collateral | 0 | 0 | |||
Derivative Liability | 9 | 13 | |||
Commodity Contract [Member] | Trade Accounts Receivable [Member] | Not Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 0 | [1] | 0 | [2] | |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (19) | [1] | (10) | [2] | |
Derivative Asset, Fair Value, Amount Offset Against Collateral | (19) | [1] | (10) | [2] | |
Derivative Asset, Fair Value of Collateral | 19 | [1] | 10 | [2] | |
Derivative Asset | 0 | [1] | 0 | [2] | |
Derivative Liability, Fair Value, Gross Liability | [2] | 19 | 10 | ||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | [2] | (19) | (10) | ||
Derivative Liability, Fair Value, Amount Offset Against Collateral | [2] | 0 | 0 | ||
Derivative Liability, Fair Value of Collateral | [2] | 0 | 0 | ||
Derivative Liability | [2] | 0 | 0 | ||
Commodity Contract [Member] | Miscellaneous receivables | Not Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 15 | 13 | |||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | 0 | |||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 15 | 13 | |||
Derivative Asset, Fair Value of Collateral | 0 | 0 | |||
Derivative Asset | 15 | 13 | |||
Commodity Contract [Member] | Other Assets | Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 0 | [1] | 0 | [2] | |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (5) | [1] | (19) | [2] | |
Derivative Asset, Fair Value, Amount Offset Against Collateral | (5) | [1] | (19) | [2] | |
Derivative Asset, Fair Value of Collateral | 5 | [1] | 19 | [2] | |
Derivative Asset | 0 | [1] | 0 | [2] | |
Derivative Liability, Fair Value, Gross Liability | 5 | [1] | 19 | [2] | |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | (5) | [1] | (19) | [2] | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | [1] | 0 | [2] | |
Derivative Liability, Fair Value of Collateral | 0 | [1] | 0 | [2] | |
Derivative Liability | 0 | [1] | 0 | [2] | |
Commodity Contract [Member] | Other current assets | Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 9 | [1] | 4 | [2] | |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (60) | [1] | (57) | [2] | |
Derivative Asset, Fair Value, Amount Offset Against Collateral | (51) | [1] | (53) | [2] | |
Derivative Asset, Fair Value of Collateral | 51 | [1] | 53 | [2] | |
Derivative Asset | 0 | [1] | 0 | [2] | |
Derivative Liability, Fair Value, Gross Liability | 60 | [1] | 57 | [2] | |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | (60) | [1] | (57) | [2] | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | [1] | 0 | [2] | |
Derivative Liability, Fair Value of Collateral | 0 | [1] | 0 | [2] | |
Derivative Liability | 0 | [1] | 0 | [2] | |
Commodity Contract [Member] | Other current assets | Not Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 0 | [1] | 19 | [2] | |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (1) | [1] | (1) | [2] | |
Derivative Asset, Fair Value, Amount Offset Against Collateral | (1) | [1] | 18 | [2] | |
Derivative Asset, Fair Value of Collateral | 1 | [1] | 0 | [2] | |
Derivative Asset | 0 | [1] | 18 | [2] | |
Derivative Liability, Fair Value, Gross Liability | 1 | [1] | 1 | [2] | |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | (1) | [1] | (1) | [2] | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | [1] | 0 | [2] | |
Derivative Liability, Fair Value of Collateral | 0 | [1] | 0 | [2] | |
Derivative Liability | 0 | [1] | 0 | [2] | |
Commodity Contract [Member] | Miscellaneous short term accruals | Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 22 | 3 | |||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | |||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 22 | 3 | |||
Derivative Liability, Fair Value of Collateral | 0 | 0 | |||
Derivative Liability | 22 | 3 | |||
Commodity Contract [Member] | Other liabilities | Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 9 | 1 | |||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | |||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 9 | 1 | |||
Derivative Liability, Fair Value of Collateral | 0 | 0 | |||
Derivative Liability | 9 | $ 1 | |||
Interest Rate Contracts [Member] | Other current assets | Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | [1] | 1 | |||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | [1] | (1) | |||
Derivative Asset, Fair Value, Amount Offset Against Collateral | [1] | 0 | |||
Derivative Asset, Fair Value of Collateral | [1] | 0 | |||
Derivative Asset | [1] | 0 | |||
Derivative Liability, Fair Value, Gross Liability | [1] | 1 | |||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | [1] | (1) | |||
Derivative Liability, Fair Value, Amount Offset Against Collateral | [1] | 0 | |||
Derivative Liability, Fair Value of Collateral | [1] | 0 | |||
Derivative Liability | [1] | $ 0 | |||
[1] | As allowed by the Derivatives and Hedging topic of the ASC, derivative assets and liabilities have been offset by collateral subject to an enforceable master netting arrangement or similar arrangement. Therefore, contracts that are in an asset or liability position are included in asset accounts within the Statements of Consolidated Financial Position. | ||||
[2] | 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 FINANCI62
FINANCIAL INSTRUMENTS FINANCIAL INSTRUMENTS Gain (Loss) from Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | |||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | $ (59) | $ 8 | $ (113) | $ (39) | ||||
Amount of Gain (Loss) Recognized in Income | (25) | (14) | (172) | (10) | ||||
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | 0 | 0 | 0 | 0 | ||||
Discontinuation of Cash Flow Hedge | 0 | 0 | ||||||
Foreign Currency Transaction Gain (Loss) Realized | (13) | (12) | 94 | (113) | ||||
Loss on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring | 2 | 2 | ||||||
Designated as Hedging Instrument | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | (59) | 8 | (113) | (39) | ||||
Amount of Gain (Loss) Recognized in Income | (9) | (14) | (48) | (45) | ||||
Not Designated as Hedging Instrument | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Gain (Loss) Recognized in Income | (16) | 0 | (124) | 35 | ||||
Commodity Contracts | Cost of Sales [Member] | Not Designated as Hedging Instrument | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Gain (Loss) Recognized in Income | (1) | (2) | 0 | 5 | ||||
Commodity Contracts | Net Sales [Member] | Not Designated as Hedging Instrument | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Gain (Loss) Recognized in Income | (12) | (3) | (6) | 0 | ||||
Foreign Exchange Contract [Member] | Other expense, net [Member] | Not Designated as Hedging Instrument | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Gain (Loss) Recognized in Income | (3) | [1] | 5 | [1] | (118) | [2] | 30 | [2] |
Fair Value Hedges | Commodity Contracts | Cost of Sales [Member] | Designated as Hedging Instrument | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Gain (Loss) Recognized in Income | 10 | [3] | (10) | [3] | 9 | [4] | (24) | [4] |
Cash Flow Hedging [Member] | Commodity Contracts | Cost of Sales [Member] | Designated as Hedging Instrument | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | (48) | [5] | 11 | [5] | (91) | [6] | (32) | [6] |
Amount of Gain (Loss) Recognized in Income | (30) | [3],[7] | (1) | [3],[7] | (77) | [4],[8] | (14) | [4],[8] |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | Cost of Sales [Member] | Designated as Hedging Instrument | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | 7 | [5] | 1 | [5] | 28 | [6] | (3) | [6] |
Amount of Gain (Loss) Recognized in Income | 4 | [3],[7] | (2) | [3],[7] | 5 | [4],[8] | (2) | [4],[8] |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | Net Sales [Member] | Designated as Hedging Instrument | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | (2) | [5] | (4) | [5] | 37 | [6] | (2) | [6] |
Amount of Gain (Loss) Recognized in Income | 10 | [3],[7] | 2 | [3],[7] | 24 | [4],[8] | 4 | [4],[8] |
Cash Flow Hedging [Member] | Interest Rate Contracts [Member] | Interest Expense [Member] | Designated as Hedging Instrument | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | (16) | [5] | 0 | [5] | (87) | [6] | (2) | [6] |
Amount of Gain (Loss) Recognized in Income | $ (3) | [3],[7] | $ (3) | [3],[7] | $ (9) | [4],[8] | $ (9) | [4],[8] |
[1] | Loss and gain on foreign currency contracts not designated as hedges includes foreign currency transaction losses of $13 million and $12 million during the three months ended May 31, 2015, and May 31, 2014, respectively. | |||||||
[2] | Loss and gain on foreign currency contracts not designated as hedges is offset by foreign currency transaction gain of $94 million and loss of $113 million during the nine months ended May 31, 2015, and May 31, 2014, respectively. | |||||||
[3] | The gain or loss on derivatives designated as hedges from ineffectiveness included in current earnings is not significant during the three months ended May 31, 2015, and May 31, 2014. No gains or losses were excluded from the assessment of hedge effectiveness during the three months ended May 31, 2015, and May 31, 2014. | |||||||
[4] | The gain or loss on derivatives designated as hedges from ineffectiveness included in current earnings is not significant during the nine months ended May 31, 2015, and May 31, 2014. No gains or losses were excluded from the assessment of hedge effectiveness during the nine months ended May 31, 2015, and May 31, 2014. | |||||||
[5] | Accumulated other comprehensive income (AOCI) (loss). | |||||||
[6] | Accumulated other comprehensive income (AOCI) (loss). | |||||||
[7] | For derivatives designated as cash flow hedges under the Derivatives and Hedging topic of the ASC, this represents the effective portion of the gain (loss) reclassified from AOCI into income during the period. | |||||||
[8] | For derivatives designated as cash flow hedges under the Derivatives and Hedging topic of the ASC, this represents the effective portion of the gain (loss) reclassified from AOCI into income during the period. |
POSTRETIREMENT BENEFITS - PEN63
POSTRETIREMENT BENEFITS - PENSIONS, HEALTH CARE AND OTHER (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | |
United States Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service Cost for Benefits Earned During the Period | $ 16 | $ 16 | $ 48 | $ 46 |
Interest Cost on Benefit Obligation | 22 | 23 | 66 | 69 |
Assumed Return on Plan Assets | (38) | (35) | (114) | (104) |
Amortization of Unrecognized Net Loss (Gain) | 13 | 16 | 39 | 47 |
Curtailment and Settlement Charge | 0 | 0 | ||
Defined Benefit Plan, Net Periodic Benefit Cost | 13 | 20 | 39 | 58 |
Defined Benefit Plan Additional Information [Abstract] | ||||
Employer Contributions | 0 | 32 | ||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | 0 | |||
Foreign Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service Cost for Benefits Earned During the Period | 4 | 2 | 11 | 8 |
Interest Cost on Benefit Obligation | 2 | 2 | 6 | 6 |
Assumed Return on Plan Assets | (3) | (2) | (9) | (6) |
Amortization of Unrecognized Net Loss (Gain) | 2 | 1 | 6 | 1 |
Curtailment and Settlement Charge | 1 | 2 | ||
Defined Benefit Plan, Net Periodic Benefit Cost | 5 | 3 | 15 | 11 |
Defined Benefit Plan Additional Information [Abstract] | ||||
Employer Contributions | 18 | 14 | ||
Pension Plan, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service Cost for Benefits Earned During the Period | 20 | 18 | 59 | 54 |
Interest Cost on Benefit Obligation | 24 | 25 | 72 | 75 |
Assumed Return on Plan Assets | (41) | (37) | (123) | (110) |
Amortization of Unrecognized Net Loss (Gain) | 15 | 17 | 45 | 48 |
Curtailment and Settlement Charge | 1 | 2 | ||
Defined Benefit Plan, Net Periodic Benefit Cost | 18 | 23 | 54 | 69 |
Postretirement and ESOP Liabilities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service Cost for Benefits Earned During the Period | 2 | 1 | 5 | 6 |
Interest Cost on Benefit Obligation | 1 | 1 | 4 | 5 |
Amortization of Unrecognized Net Loss (Gain) | (1) | (3) | (3) | (11) |
Defined Benefit Plan, Net Periodic Benefit Cost | $ 2 | $ (1) | $ 6 | $ 0 |
STOCK BASED COMPENSATION PLAN64
STOCK BASED COMPENSATION PLANS Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
May. 31, 2015 | Aug. 31, 2014 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||||
Compensation cost capitalized | $ 3 | $ 3 | |||
Cost of Goods Sold [Member] | |||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||||
Allocated Stock Based Compensation Expense | $ 2 | $ 2 | 6 | $ 6 | |
Selling, General and Administrative Expenses [Member] | |||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||||
Allocated Stock Based Compensation Expense | 22 | 17 | 69 | 60 | |
Research and Development Expenses [Member] | |||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||||
Allocated Stock Based Compensation Expense | 7 | 12 | 23 | 22 | |
Pre-Tax Stock-Based Compensation Expense [Member] | |||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||||
Allocated Stock Based Compensation Expense | 31 | 31 | 98 | 88 | |
Income Tax Benefit [Member] | |||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||||
Allocated Stock Based Compensation Expense | (10) | (10) | (31) | (29) | |
Net Stock Based Compensation [Member] | |||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||||
Allocated Stock Based Compensation Expense | $ 21 | $ 21 | $ 67 | $ 59 |
STOCK BASED COMPENSATION PLAN65
STOCK BASED COMPENSATION PLANS STOCK BASED COMPENSATION PLANS Restricted Stock (Details) - 9 months ended May. 31, 2015 - USD ($) $ / shares in Units, $ in Millions | Total |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted | 1,726,580 |
Weighted-average grant date fair value per share | $ 24.37 |
Pre-tax unrecognized compensation expense, net of estimated forfeitures as applicable (in millions) | $ 60.9 |
Remaining weighted-average period of expense recognition/requisite service periods (in years) | 2 years |
Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted | 724,409 |
Weighted-average grant date fair value per share | $ 108.88 |
Pre-tax unrecognized compensation expense, net of estimated forfeitures as applicable (in millions) | $ 116.2 |
Remaining weighted-average period of expense recognition/requisite service periods (in years) | 2 years 5 months |
Directors Deferred Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted | 17,518 |
Weighted-average grant date fair value per share | $ 115.65 |
Pre-tax unrecognized compensation expense, net of estimated forfeitures as applicable (in millions) | $ 0.5 |
Remaining weighted-average period of expense recognition/requisite service periods (in years) | 3 months |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted | 3,307 |
Weighted-average grant date fair value per share | $ 115.65 |
Pre-tax unrecognized compensation expense, net of estimated forfeitures as applicable (in millions) | $ 0.3 |
Remaining weighted-average period of expense recognition/requisite service periods (in years) | 1 year 2 months |
CAPITAL STOCK CAPITAL STOCK (De
CAPITAL STOCK CAPITAL STOCK (Details) - USD ($) shares in Millions, $ in Millions | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Apr. 02, 2015 | Jun. 30, 2014 | May. 31, 2015 | Apr. 02, 2015 | May. 31, 2014 | Aug. 31, 2014 | Jul. 07, 2014 | Jul. 01, 2014 | |
CAPITAL STOCK (Share Repurchase Programs) [Line Items] | ||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 4,200 | |||||||
Payments for Repurchase of Common Stock | $ 705 | $ 914 | ||||||
Accelerated Share Repurchase [Member] | ||||||||
CAPITAL STOCK (Share Repurchase Programs) [Line Items] | ||||||||
Stock Repurchase Program, Authorized Amount | $ 6,000 | |||||||
Share Repurchase, Initial Shares Delivered | 38.6 | |||||||
Payments for Repurchase of Common Stock | $ 3,000 | $ 6,000 | ||||||
Share Repurchase, Initial Payment | $ 4,800 | |||||||
Forward Contract Indexed to Issuer's Equity, Settlement Alternatives, Cash, at Fair Value | $ 1,200 | |||||||
Treasury Stock, Shares, Acquired | 6.6 | 25.9 | ||||||
Repurchase Plan 2014 [Member] | ||||||||
CAPITAL STOCK (Share Repurchase Programs) [Line Items] | ||||||||
Stock Repurchase Program, Period in Force | 2 years | |||||||
Stock Repurchase Program, Authorized Amount | $ 10,000 |
ACCUMULATED OTHER COMPREHENSI67
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | Aug. 31, 2014 | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Beginning balance | $ (1,114) | $ (1,278) | $ (1,278) | |||
Other comprehensive loss before reclassifications | (1,454) | 119 | ||||
Amounts reclassified from accumulated other comprehensive loss | $ 21 | $ 9 | 64 | 35 | 45 | |
Total Other Comprehensive (Loss) Income, Net of Tax | (300) | 165 | (1,390) | 247 | 164 | |
Ending balance | (2,504) | (2,504) | (1,114) | |||
Realized net derivative (gains) losses, tax (expense) benefit | 8 | 2 | 23 | 8 | ||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax | (6) | (5) | (18) | (14) | ||
Available-for-sale Securities [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Beginning balance | 5 | 8 | 8 | |||
Other comprehensive loss before reclassifications | 0 | 0 | ||||
Amounts reclassified from accumulated other comprehensive loss | 0 | (1) | 0 | 0 | (3) | |
Total Other Comprehensive (Loss) Income, Net of Tax | 0 | (3) | ||||
Ending balance | 5 | 5 | 5 | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | (2) | 0 | (1) | ||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | 0 | 1 | 0 | 1 | ||
Pension Plan, Defined Benefit [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 16 | 13 | 48 | 36 | ||
Accumulated Translation Adjustment [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Beginning balance | (731) | (831) | (831) | |||
Other comprehensive loss before reclassifications | (1,393) | 100 | ||||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | ||||
Total Other Comprehensive (Loss) Income, Net of Tax | (1,393) | 100 | ||||
Ending balance | (2,124) | (2,124) | (731) | |||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Beginning balance | (167) | (115) | (115) | |||
Other comprehensive loss before reclassifications | (61) | (69) | ||||
Amounts reclassified from accumulated other comprehensive loss | 11 | 2 | 34 | 13 | 17 | |
Total Other Comprehensive (Loss) Income, Net of Tax | (27) | (52) | ||||
Ending balance | (194) | (194) | (167) | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 19 | 4 | 57 | 21 | ||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Beginning balance | (221) | (340) | (340) | |||
Other comprehensive loss before reclassifications | 0 | 88 | ||||
Amounts reclassified from accumulated other comprehensive loss | 10 | 8 | 30 | 22 | 31 | |
Total Other Comprehensive (Loss) Income, Net of Tax | 30 | 119 | ||||
Ending balance | (191) | (191) | $ (221) | |||
Other Operating Income (Expense) [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | (2) | 0 | (2) | ||
Other Operating Income (Expense) [Member] | Accumulated Other-than-Temporary Impairment [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | 0 | 1 | ||
Cost of Sales [Member] | Pension Plan, Defined Benefit [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (2) | (2) | (13) | (10) | ||
Selling, General and Administrative Expenses [Member] | Pension Plan, Defined Benefit [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 11 | 9 | 32 | 26 | ||
Foreign Exchange Contract [Member] | Net Sales [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (10) | (2) | (24) | (4) | ||
Foreign Exchange Contract [Member] | Cost of Sales [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (4) | 2 | (5) | 2 | ||
Commodity Contract [Member] | Cost of Sales [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 30 | 1 | 77 | 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) [Roll Forward] | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 3 | 3 | 9 | 9 | ||
Inventory [Member] | Pension Plan, Defined Benefit [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [1] | $ 5 | $ 4 | $ 16 | $ 10 | |
[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 $5 million and $4 million of net periodic benefit cost to inventory, of which approximately $2 million was recognized in cost of goods sold during each of the three months ended May 31, 2015, and May 31, 2014, respectively. The company recorded $16 million and $10 million of net periodic benefit cost to inventory, of which approximately $13 million and $10 million was recognized in cost of goods sold during the nine months ended May 31, 2015, and May 31, 2014, respectively. See Note 14 — Postretirement Benefits - Pensions, Health Care and Other — for additional information. |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | |
Earnings Per Share [Abstract] | ||||
Weighted-Average Number of Common Shares | 472.8 | 524.3 | 479.5 | 525.4 |
Dilutive Potential Common Shares | 4.4 | 5.5 | 4.8 | 5.8 |
Antidilutive Potential Common Shares | 1.7 | 1.7 | 1.7 | 1.7 |
Shares Excluded From Computation of Dilutive Potential Shares with Exercise Prices greater than the Average Market Price of Common Shares for the Period | 0.1 | 0 | 0.1 | 0.1 |
SUPPLEMENTAL CASH FLOW INFORM69
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Millions | 9 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | Aug. 31, 2014 | |
Supplemental Cash Flow Information [Abstract] | |||
Capital Expenditures Incurred but Not yet Paid | $ 93 | $ 114 | |
Interest | 212 | 118 | |
Taxes | 900 | $ 788 | |
Dividends payable | $ 1 | $ 239 |
COMMITMENTS AND CONTINGENCIES E
COMMITMENTS AND CONTINGENCIES ENVIRONMENTAL AND LITIGATION (Details) $ in Millions | Dec. 17, 2004plaintiff | May. 31, 2015USD ($)plaintiff | Nov. 30, 2009claim | Aug. 31, 2014USD ($) |
Accrual For Environmental And Litigation Loss Contingencies [Abstract] | ||||
Accrual For Environmental And Litigation Loss Contingencies | $ 301 | $ 291 | ||
Medical Monitoring Program [Member] | ||||
Gain (Loss) Related to Litigation Settlement [Abstract] | ||||
Loss Contingency, Settlement Agreement, Terms | 30 years | |||
Medical Monitoring Program [Member] | Primary Fund [Member] | ||||
Gain (Loss) Related to Litigation Settlement [Abstract] | ||||
Litigation Settlement, Gross | $ 21 | |||
Medical Monitoring Program [Member] | Additional Fund [Member] | ||||
Gain (Loss) Related to Litigation Settlement [Abstract] | ||||
Litigation Settlement, Gross | 63 | |||
Property Remediation Plan [Member] | ||||
Gain (Loss) Related to Litigation Settlement [Abstract] | ||||
Litigation Settlement, Gross | $ 9 | |||
Loss Contingency, Settlement Agreement, Terms | 3 years | |||
Virdie Allen [Member] | ||||
Accrual For Environmental And Litigation Loss Contingencies [Abstract] | ||||
Loss Contingency, Number of Plaintiffs | plaintiff | 15 | |||
Loss Contingency, Number of Defendants | plaintiff | 7 | |||
Putnam County, West Virginia [Member] | ||||
Gain (Loss) Related to Litigation Settlement [Abstract] | ||||
Loss Contingency, New Claims Filed, Number | claim | 200 | |||
State Courts in St Louis, Missouri and Los Angeles, California [Member] | Pending Litigation [Member] | Personal Injury Lawsuits [Member] | ||||
Accrual For Environmental And Litigation Loss Contingencies [Abstract] | ||||
Loss Contingency, Number of Plaintiffs | plaintiff | 750 |
COMMITMENTS AND CONTINGENCIES O
COMMITMENTS AND CONTINGENCIES OFF-BALANCE SHEET ARRANGEMENTS (Details) $ in Millions | Dec. 31, 2013USD ($) |
Bond [Member] | |
Off Balance Sheet Arrangement [Line Items] | |
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Asset | $ 470 |
SEGMENT AND GEOGRAPHIC DATA (De
SEGMENT AND GEOGRAPHIC DATA (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
May. 31, 2015USD ($) | May. 31, 2014USD ($) | May. 31, 2015USD ($)segment | May. 31, 2014USD ($) | ||
Segment Reporting Information [Line Items] | |||||
Number of Reportable Segments | segment | 2 | ||||
Net Sales | [1] | $ 4,579 | $ 4,250 | $ 12,646 | $ 13,225 |
Gross Profit | 2,736 | 2,331 | 7,186 | 7,341 | |
EBIT | [2],[3],[4] | 1,607 | 1,211 | 4,077 | 4,128 |
Depreciation and Amortization Expense | 176 | 175 | 538 | 507 | |
Income from operations of discontinued businesses | 0 | 0 | 37 | 22 | |
Reconciliation of EBIT to Net Income [Abstract] | |||||
EBIT | [2],[3],[4] | 1,607 | 1,211 | 4,077 | 4,128 |
Interest Expense — Net | 78 | 25 | 219 | 71 | |
Income Tax Provision | [5] | 388 | 328 | 1,049 | 1,161 |
Net Income Attributable to Monsanto Company | 1,141 | 858 | 2,809 | 2,896 | |
Corn seed and traits [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | [1] | 1,515 | 1,303 | 5,355 | 5,771 |
Gross Profit | 947 | 751 | 3,349 | 3,654 | |
Soybean seed and traits [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | [1] | 835 | 816 | 2,114 | 1,903 |
Gross Profit | 528 | 498 | 1,413 | 1,205 | |
Cotton seed and traits [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | [1] | 371 | 401 | 484 | 587 |
Gross Profit | 292 | 304 | 370 | 424 | |
Vegetable seeds [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | [1] | 197 | 221 | 559 | 597 |
Gross Profit | 87 | 107 | 245 | 271 | |
All other crops seeds and traits [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | [1] | 275 | 299 | 480 | 506 |
Gross Profit | 201 | 195 | 296 | 299 | |
Total Seeds and Genomics [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 3,193 | 3,040 | 8,992 | 9,364 | |
Gross Profit | 2,055 | 1,855 | 5,673 | 5,853 | |
EBIT | [2],[3] | 1,113 | 898 | 2,979 | 3,057 |
Depreciation and Amortization Expense | 144 | 145 | 442 | 416 | |
Reconciliation of EBIT to Net Income [Abstract] | |||||
EBIT | [2],[3] | 1,113 | 898 | 2,979 | 3,057 |
Agricultural Productivity [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | [1] | 1,386 | 1,210 | 3,654 | 3,861 |
Gross Profit | 681 | 476 | 1,513 | 1,488 | |
Total Agricultural Productivity [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 1,386 | 1,210 | 3,654 | 3,861 | |
Gross Profit | 681 | 476 | 1,513 | 1,488 | |
EBIT | [2],[3] | 494 | 313 | 1,098 | 1,071 |
Depreciation and Amortization Expense | 32 | 30 | 96 | 91 | |
Reconciliation of EBIT to Net Income [Abstract] | |||||
EBIT | [2],[3] | $ 494 | $ 313 | $ 1,098 | $ 1,071 |
[1] | Represents net sales from continuing operations. | ||||
[2] | Agricultural Productivity EBIT includes income from operations of discontinued businesses of $37 million and $22 million for the nine months ended May 31, 2015 and 2014, respectively. | ||||
[3] | EBIT is defined as earnings before interest and taxes; see the following table for reconciliation. Earnings is intended to mean net income as presented in the Statements of Consolidated Operations under U.S. GAAP. EBIT is an operating performance measure for the two reportable segments. | ||||
[4] | Includes the income from operations of discontinued businesses and pre-tax noncontrolling interests. | ||||
[5] | Includes the income tax benefit on noncontrolling interest and the income tax provision on discontinued operations. |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - $ / shares | Jun. 05, 2015 | May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | Aug. 31, 2014 |
Subsequent Event [Line Items] | ||||||
Dividends Declared per Share | $ 0 | $ 0 | $ 0.98 | $ 0.86 | $ 1.78 | |
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Dividends Declared per Share | $ 0.49 |