Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Aug. 31, 2016 | Oct. 14, 2016 | Feb. 29, 2016 | |
Document and Entity Information [Abstract] | |||
Document type | 10-K | ||
Document period end date | Aug. 31, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | MONSANTO CO /NEW/ | ||
Entity Central Index Key | 1,110,783 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --08-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity well known seasoned issuer | No | ||
Entity common stock shares outstanding | 437,982,595 | ||
Entity public float | $ 39.2 |
Statements of Consolidated Oper
Statements of Consolidated Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | ||
Income Statement [Abstract] | ||||
Net Sales | [1] | $ 13,502 | $ 15,001 | $ 15,855 |
Cost of goods sold | 6,485 | 6,819 | 7,281 | |
Gross Profit | 7,017 | 8,182 | 8,574 | |
Operating Expenses: | ||||
Selling, general and administrative expenses | 2,833 | 2,686 | 2,774 | |
Research and development expenses | 1,512 | 1,580 | 1,725 | |
Restructuring charges | 297 | 393 | 0 | |
Total Operating Expenses | 4,642 | 4,659 | 4,499 | |
Income from Operations | 2,375 | 3,523 | 4,075 | |
Interest expense | 436 | 433 | 248 | |
Interest income | (74) | (105) | (102) | |
Other expense, net | 22 | 34 | 102 | |
Income from Continuing Operations Before Income Taxes | 1,991 | 3,161 | 3,827 | |
Income tax provision | 695 | 864 | 1,078 | |
Income from Continuing Operations Including Portion Attributable to Noncontrolling Interest | 1,296 | 2,297 | 2,749 | |
Discontinued Operations: | ||||
Income from operations of discontinued businesses | 27 | 45 | 22 | |
Income tax provision | 10 | 17 | 9 | |
Income on Discontinued Operations | 17 | 28 | 13 | |
Net Income | 1,313 | 2,325 | 2,762 | |
Less: Net (loss) income attributable to noncontrolling interest | (23) | 11 | 22 | |
Net Income Attributable to Monsanto Company | 1,336 | 2,314 | 2,740 | |
Amounts Attributable to Monsanto Company: | ||||
Income from continuing operations | 1,319 | 2,286 | 2,727 | |
Income on discontinued operations | 17 | 28 | 13 | |
Net Income Attributable to Monsanto Company | $ 1,336 | $ 2,314 | $ 2,740 | |
Basic Earnings per Share Attributable to Monsanto Company: | ||||
Income from continuing operations (in dollars per share) | $ 2.98 | $ 4.79 | $ 5.25 | |
Income on discontinued operations (in dollars per share) | 0.04 | 0.06 | 0.03 | |
Net Income Attributable to Monsanto Company (in dollars per share) | 3.02 | 4.85 | 5.28 | |
Diluted Earnings per Share Attributable to Monsanto Company: | ||||
Income from continuing operations (in dollars per share) | 2.95 | 4.75 | 5.19 | |
Income on discontinued operations (in dollars per share) | 0.04 | 0.06 | 0.03 | |
Net Income Attributable to Monsanto Company (in dollars per share) | $ 2.99 | $ 4.81 | $ 5.22 | |
Weighted Average Shares Outstanding: | ||||
Basic (in shares) | 442.7 | 476.9 | 519.3 | |
Diluted (in shares) | 447.1 | 481.4 | 524.9 | |
[1] | Represents net sales from continuing operations |
Statements of Consolidated Comp
Statements of Consolidated Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | |
Net Income Attributable to Monsanto Company | |||
Net Income Attributable to Monsanto Company | $ 1,336 | $ 2,314 | $ 2,740 |
Other Comprehensive (Loss) Income, Net of Tax: | |||
Foreign currency translation, net of tax of $2, $(18) and $(33), respectively | 35 | (1,596) | 100 |
Postretirement benefit plan activity, net of tax of $(35), $(39) and $76, respectively | (54) | (65) | 119 |
Unrealized net losses on investment holdings, net of tax of $(1), $0 and $0, respectively | (2) | 0 | 0 |
Realized net losses (gains) on investment holdings, net of tax of $1, $(1) and $(2), respectively | 1 | (3) | (3) |
Unrealized net derivative losses, net of tax of $(26), $(46) and $(42), respectively | (42) | (54) | (69) |
Realized net derivative losses, net of tax of $44, $23 and $9, respectively | 55 | 31 | 17 |
Total Other Comprehensive (Loss) Income, Net of Tax | (7) | (1,687) | 164 |
Comprehensive Income Attributable to Monsanto Company | 1,329 | 627 | 2,904 |
Comprehensive Income Attributable to Noncontrolling Interests | |||
Net (Loss) Income Attributable to Noncontrolling Interests | (23) | 11 | 22 |
Other Comprehensive (Loss) Income: | |||
Foreign currency translation | (1) | (4) | 10 |
Total Other Comprehensive (Loss) Income | (1) | (4) | 10 |
Comprehensive (Loss) Income Attributable to Noncontrolling Interests | (24) | 7 | 32 |
Total Comprehensive Income | $ 1,305 | $ 634 | $ 2,936 |
Statements of Consolidated Com4
Statements of Consolidated Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | |
Other Comprehensive Income (Loss), Tax, Parenthetical Disclosures [Abstract] | |||
Foreign currency translation, tax expense (benefit) | $ 2 | $ (18) | $ (33) |
Postretirement benefit plan activity, tax expense (benefit) | (35) | (39) | 76 |
Unrealized net gains on investment holdings, tax (expense) benefit | (1) | 0 | 0 |
Realized net (gains) losses on investment holdings, tax (expense) benefit | (1) | 1 | 2 |
Unrealized net derivative gains (losses), tax (expense) benefit | (26) | (46) | (42) |
Realized net derivative losses (gains), tax (expense) benefit | $ 44 | $ 23 | $ 9 |
Statements of Consolidated Fina
Statements of Consolidated Financial Position - USD ($) $ in Millions | Aug. 31, 2016 | Aug. 31, 2015 | |
Current Assets: | |||
Cash and cash equivalents (variable interest entities restricted - 2016: $122 and 2015: $112) | $ 1,676 | $ 3,701 | |
Short-term investments | 60 | 47 | |
Trade receivables, net (variable interest entities restricted - 2016: $7 and 2015: $0) | 1,926 | 1,636 | |
Miscellaneous receivables | 755 | 803 | |
Deferred tax assets | 0 | 743 | |
Inventory, net | 3,241 | 3,496 | |
Assets held for sale | 272 | 7 | |
Other current assets | 227 | 192 | |
Total Current Assets | 8,157 | 10,625 | |
Total property, plant and equipment | 11,116 | 10,428 | |
Less: Accumulated depreciation | 5,885 | 5,455 | |
Property, Plant and Equipment, Net (variable interest entity restricted - 2016: $0 and 2015: $2) | 5,231 | 4,973 | |
Goodwill | 4,020 | 4,061 | |
Other Intangible Assets, Net | 1,125 | 1,332 | |
Noncurrent Deferred Tax Assets | 613 | 277 | |
Long-Term Receivables, Net | 101 | 42 | |
Other Assets | 489 | 610 | |
Total Assets | [1] | 19,736 | 21,920 |
Current Liabilities: | |||
Short-term debt, including current portion of long-term debt (variable interest entity restricted - 2016: $113 and 2015: $0) | 1,587 | 615 | |
Accounts payable (variable interest entity restricted - 2016: $0 and 2015: $6) | 1,006 | 836 | |
Income taxes payable | 41 | 234 | |
Accrued compensation and benefits (variable interest entity restricted - 2016: $0 and 2015: $2) | 239 | 304 | |
Accrued marketing programs | 1,650 | 1,492 | |
Deferred revenues | 568 | 370 | |
Grower production accruals | 47 | 39 | |
Dividends payable | 237 | 254 | |
Customer payable | 123 | 72 | |
Restructuring reserves | 227 | 170 | |
Miscellaneous short-term accruals (variable interest entity restricted - 2016: $0 and 2015: $7) | 1,004 | 791 | |
Total Current Liabilities | 6,729 | 5,177 | |
Long-Term Debt (variable interest entity restricted - 2016: $0 and 2015: $96) | 7,453 | 8,429 | |
Postretirement Liabilities | 371 | 336 | |
Long-Term Deferred Revenue | 35 | 47 | |
Noncurrent Deferred Tax Liabilities | 68 | 340 | |
Long-Term Portion of Environmental and Litigation Liabilities | 200 | 194 | |
Long-Term Restructuring Reserve | 17 | 47 | |
Other Liabilities | 318 | 345 | |
Shareowners’ Equity: | |||
Common stock (authorized: 1,500,000,000 shares, par value $0.01) Issued 611,435,047 and 609,350,452 shares, respectively; Outstanding 437,795,024 and 467,903,711 shares, respectively | 6 | 6 | |
Treasury stock 173,640,023 and 141,446,741 shares, respectively, at cost | (15,053) | (12,053) | |
Additional contributed capital | 11,626 | 11,464 | |
Retained earnings | 10,763 | 10,374 | |
Accumulated other comprehensive loss | (2,808) | (2,801) | |
Total Monsanto Company Shareowners’ Equity | 4,534 | 6,990 | |
Noncontrolling Interest | 11 | 15 | |
Total Shareowners’ Equity | 4,545 | 7,005 | |
Total Liabilities and Shareowners’ Equity | $ 19,736 | $ 21,920 | |
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Statements of Consolidated Fin6
Statements of Consolidated Financial Position (Parenthetical) - USD ($) $ in Millions | Aug. 31, 2016 | Aug. 31, 2015 |
Current Assets: | ||
Cash and cash equivalents (variable interest entities restricted) | $ 122 | $ 112 |
Trade receivables, net (variables interest entities restricted) | $ 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 | 611,435,047 | 609,350,452 |
Common stock, Outstanding | 437,795,024 | 467,903,711 |
Treasury Stock, at Cost | 173,640,023 | 141,446,741 |
Property, Plant and Equipment, Net (variable interest entities restricted) | $ 0 | $ 2 |
Short-term debt, including current portion of long-term debt (variable interest entities restricted) | 113 | 0 |
Accounts payable (variable interest entities restricted) | 0 | 6 |
Accrued compensation and benefits (variable interest entities restricted) | 0 | 2 |
Miscellaneous short-term accruals (variable interest entities restricted) | 0 | 7 |
Long-term debt (variable interest entities restricted) | $ 0 | $ 96 |
Statements of Consolidated Cash
Statements of Consolidated Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | |
Operating Activities: | |||
Net Income | $ 1,313 | $ 2,325 | $ 2,762 |
Items that did not require (provide) cash: | |||
Depreciation and amortization | 727 | 716 | 691 |
Bad-debt expense | 152 | 45 | 41 |
Stock-based compensation expense | 111 | 111 | 120 |
Excess tax benefits from stock-based compensation | (16) | (44) | (72) |
Deferred income taxes | 97 | (271) | 12 |
Restructuring impairments | 147 | 276 | 0 |
Equity affiliate loss, net | 15 | 7 | 4 |
Net gain on sales of a business or other assets | (181) | (2) | (11) |
Other items, net | 181 | 118 | 139 |
Changes in assets and liabilities that provided (required) cash, net of acquisitions: | |||
Trade receivables | (498) | 68 | (172) |
Inventory, net | 181 | (425) | (650) |
Deferred revenues | 189 | 32 | (163) |
Accounts payable and other accrued liabilities | 176 | 235 | 709 |
Restructuring reserves | 25 | 217 | 0 |
Pension contributions | (78) | (27) | (64) |
Other items, net | 47 | (273) | (292) |
Net Cash Provided by Operating Activities | 2,588 | 3,108 | 3,054 |
Cash Flows Provided (Required) by Investing Activities: | |||
Purchases of short-term investments | (50) | (63) | (145) |
Maturities of short-term investments | 35 | 56 | 359 |
Capital expenditures | (923) | (967) | (1,005) |
Purchases of long-term debt and equity securities | 0 | (30) | (12) |
Acquisition of businesses, net of cash acquired | (2) | (8) | (922) |
Technology and other investments | (69) | (48) | (403) |
Other investments and property disposal proceeds | 145 | 41 | 33 |
Net Cash Required by Investing Activities | (864) | (1,019) | (2,095) |
Cash Flows Provided (Required) by Financing Activities: | |||
Net change in financing with less than 90-day maturities | 676 | 45 | 38 |
Short-term debt proceeds | 49 | 57 | 50 |
Short-term debt reductions | (272) | (36) | (24) |
Long-term debt proceeds | 9 | 1,279 | 5,479 |
Long-term debt reductions | (306) | (107) | (7) |
Payments on other financing | 0 | 0 | (39) |
Debt issuance costs | 0 | (12) | (53) |
Treasury stock purchases | (3,001) | (835) | (7,082) |
Stock option exercises | 81 | 137 | 248 |
Excess tax benefits from stock-based compensation | 16 | 44 | 72 |
Tax withholding on restricted stock and restricted stock units | (24) | (36) | (9) |
Dividend payments | (964) | (938) | (904) |
Payments to noncontrolling interests | (6) | (28) | (28) |
Net Cash Required by Financing Activities | (3,742) | (430) | (2,259) |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (7) | (325) | (1) |
Net (Decrease) Increase in Cash and Cash Equivalents | (2,025) | 1,334 | (1,301) |
Cash and Cash Equivalents at Beginning of Period | 3,701 | 2,367 | 3,668 |
Cash and Cash Equivalents at End of Period | $ 1,676 | $ 3,701 | $ 2,367 |
Statements of Consolidated Shar
Statements of Consolidated Shareholders Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Contributed Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) [Member] | [1] | NonControlling Interests [Member] |
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 | |||||||
Net Income (Loss) Attributable to Parent | 2,740 | 2,740 | ||||||
Less: Net (loss) income attributable to noncontrolling interest | 22 | 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, $2.01 and $2.16 for 2014, 2015, and 2016 respectively) | (916) | (916) | ||||||
Acquisition of noncontrolling interest | (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 | 2,325 | |||||||
Net Income (Loss) Attributable to Parent | 2,314 | 2,314 | ||||||
Less: Net (loss) income attributable to noncontrolling interest | 11 | 11 | ||||||
Other comprehensive income (loss) | (1,691) | (1,687) | (4) | |||||
Treasury stock purchases | (821) | (2,021) | 1,200 | |||||
Restricted stock withholding | (29) | (29) | ||||||
Issuance of shares under employee stock plans | 138 | 138 | ||||||
Net excess tax benefits from stock-based compensation | 40 | 40 | ||||||
Stock-based compensation expense | 112 | 112 | ||||||
Cash dividends per common share ($1.78, $2.01 and $2.16 for 2014, 2015, and 2016 respectively) | (952) | (952) | ||||||
Acquisition of noncontrolling interest | (3) | (3) | ||||||
Payments to noncontrolling interest | (28) | (28) | ||||||
Ending Balance at Aug. 31, 2015 | 7,005 | 6 | (12,053) | 11,464 | 10,374 | (2,801) | 15 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income | 1,313 | |||||||
Net Income (Loss) Attributable to Parent | 1,336 | 1,336 | ||||||
Less: Net (loss) income attributable to noncontrolling interest | (23) | (23) | ||||||
Other comprehensive income (loss) | (8) | (7) | (1) | |||||
Treasury stock purchases | (3,001) | (3,000) | (1) | |||||
Restricted stock withholding | (24) | (24) | ||||||
Issuance of shares under employee stock plans | 81 | 81 | ||||||
Net excess tax benefits from stock-based compensation | 11 | 11 | ||||||
Stock-based compensation expense | 111 | 111 | ||||||
Cash dividends per common share ($1.78, $2.01 and $2.16 for 2014, 2015, and 2016 respectively) | (947) | (947) | ||||||
Acquisition of noncontrolling interest | 10 | (16) | 26 | |||||
Payments to noncontrolling interest | (6) | (6) | ||||||
Ending Balance at Aug. 31, 2016 | $ 4,545 | $ 6 | $ (15,053) | $ 11,626 | $ 10,763 | $ (2,808) | $ 11 | |
[1] | See Note 21 — Accumulated Other Comprehensive Loss — for further details of the components of accumulated other comprehensive loss. |
Statements of Consolidated Sha9
Statements of Consolidated Shareholders Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends per common share | $ 2.16 | $ 2.01 | $ 1.78 |
BACKGROUND AND BASIS OF PRESENT
BACKGROUND AND BASIS OF PRESENTATION | 12 Months Ended |
Aug. 31, 2016 | |
BACKGROUND AND BASIS OF PRESENTATION [Abstract] | |
BACKGROUND AND BASIS OF PRESENTATION | BACKGROUND AND BASIS OF PRESENTATION Monsanto Company, along with its subsidiaries, is a leading global provider of agricultural products for farmers. Monsanto’s seeds, biotechnology trait products, herbicides and digital agriculture products 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 reportable 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 digital 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 25 — Segment and Geographic Data — for further details. In the fourth quarter of 2008, the company announced plans to divest its animal agricultural products business, which focused on dairy cow productivity 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. On Nov. 2, 2015, the company signed a definitive agreement with Deere & Company (“Deere”) to sell the Precision Planting equipment business which is included in the Seed and Genomics segment for approximately $190 million in cash, subject to customary working capital adjustments. As of Aug. 31, 2016, Monsanto has $172 million of assets held for sale and $12 million of liabilities held for sale classified within miscellaneous short-term accruals on the Statement of Consolidated Financial Position related to this transaction. The assets were primarily classified as inventory, net; trade receivables, net; property, plant, and equipment, net; goodwill; and other intangible assets, net as of Aug. 31, 2015, and the liabilities were primarily classified as accrued marketing programs and accounts payable as of Aug. 31, 2015. In August 2016, the U.S. Department of Justice filed a lawsuit to block Deere’s acquisition of the Precision Planting equipment business, which Deere has indicated it plans to contest. As a result of this development, the closing date for this transaction is uncertain. Unless otherwise indicated, “Monsanto” and “the company” are used interchangeably to refer to Monsanto Company or to Monsanto Company and its consolidated subsidiaries, as appropriate to the context. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Aug. 31, 2016 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Basis of Consolidation The accompanying consolidated financial statements of Monsanto and its subsidiaries were prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and include the assets, liabilities, revenues and expenses of all majority-owned subsidiaries over which the company exercises control and, when applicable, entities for which the company has a controlling financial interest or is the primary beneficiary. Intercompany accounts and transactions have been eliminated in consolidation. The company records income attributable to noncontrolling interest in the Statements of Consolidated Operations for any non-owned portion of consolidated subsidiaries. Noncontrolling interest is recorded within the equity section but separate from Monsanto’s equity in the Statements of Consolidated Financial Position. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make certain estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Estimates are adjusted to reflect actual experience when necessary. Significant estimates and assumptions affect many items in the consolidated financial statements. These include allowance for doubtful trade receivables, sales returns and allowances, inventory obsolescence, income tax liabilities and assets and related valuation allowances, asset impairments, valuations of goodwill and other intangible assets, employee benefit plan assets and liabilities, value of equity-based awards, customer incentive program liabilities, restructuring reserves, self-insurance reserves, environmental reserves, deferred revenue, contingencies, litigation, incentives, the allocation of corporate costs to segments and certain cash flow projections. Significant estimates and assumptions are also used to establish the fair value and useful lives of depreciable tangible and certain intangible assets. Actual results may differ from those estimates and assumptions, and such results may affect income, financial position or cash flows. Revenue Recognition The company derives most of its revenue from three main sources: sales of branded conventional seed and branded seed with biotechnology traits; royalties and license revenues from licensed biotechnology traits and genetic material; and sales of agricultural chemical products. Monsanto follows the Revenue Recognition topic of the Accounting Standards Codification (“ASC”). Revenues from all seed sales are recognized when risks and rewards of ownership of the products are transferred. The company recognizes revenue on products it sells to distributors when, according to the terms of the sales agreement, delivery has occurred, performance is complete, expected returns can be reasonably estimated, and pricing is fixed or determinable. When the right of return exists in the company’s seed business, sales revenues are reduced at the time of sale to reflect expected returns. In order to estimate the expected returns, management analyzes historical returns, economic trends, market conditions and changes in customer demand. The Revenue Recognition topic of the ASC affects Monsanto’s recognition of license revenues from biotechnology traits sold through third-party seed companies. The company may enter into multiple element arrangements, including those where a customer purchases technology and licenses. When elements of a multiple element arrangement do not have stand alone value, Monsanto accounts for such elements as a combined unit of accounting. The company allocates revenue to each unit of accounting in a multiple element arrangement based upon the relative selling price of each deliverable. When applying the relative selling price method, Monsanto determines the selling price for each deliverable by using vendor-specific objective evidence (“VSOE”) of selling price, if it exists, or third-party evidence (“TPE”) of selling price. If neither VSOE nor TPE of selling price exists for a unit of accounting, Monsanto uses its best estimate of selling price for that unit of accounting. When Monsanto uses its best estimate to determine selling price, significant judgment is required. The significant assumptions used to estimate selling price for significant units of accounting may consist of cost, gross margin objectives or forecasted customer selling volumes. Changes in assumptions used to estimate selling price could result in a different allocation of arrangement consideration across the units of accounting within an arrangement. Revenue allocated to each unit of accounting is recognized when all revenue recognition criteria for that unit of accounting have been met. Biotechnology trait license revenue, including those within multiple element arrangements, is generally recognized over the contract period as third-party seed companies sell seed containing Monsanto traits, which can be from one year up to the related patent term. License revenue from the sale of intellectual property, including those within multiple element arrangements, is generally recognized upon commencement of the license term. Primarily in Brazil and Latin America, Monsanto has point-of-delivery collection systems for certain royalties for soybeans and cotton to record revenue when the grain containing Monsanto’s technology is delivered and commercialized at the grain handlers and collectibility is reasonably assured. Revenues for agricultural chemical products are recognized when title to the products is transferred. The company recognizes revenue on products it sells to distributors when, according to the terms of the sales agreements, delivery has occurred, performance is complete, no right of return exists unless required by law, and pricing is fixed or determinable. There are several additional conditions for recognition of revenue including that the collection of sales proceeds must be reasonably assured based on historical experience and current market conditions and that there must be no consequential remaining performance obligations under the sale or the royalty or license agreement. To reduce credit exposure primarily in Latin America, Monsanto collects payments on certain customer accounts in grain. In those circumstances in Argentina when Monsanto participates in the negotiation of the forward sales contract, Monsanto records revenue and related cost of sale for the grain on a net basis. In those circumstances in Brazil when Monsanto does not participate in the negotiation of the forward sales contract and does not take physical custody of the grain or assume the associated inventory risk, Monsanto does not record revenue or the related cost of sales for the grain. Such payments in grain are negotiated at or near the time Monsanto’s products are sold to the customers and are valued at the prevailing grain commodity prices. By entering into forward sales contracts with grain merchants, Monsanto mitigates the commodity price exposure from the time a contract is signed with a customer until the time a grain merchant collects the grain from the customer on Monsanto’s behalf. The grain merchant converts the grain to cash for Monsanto. These forward sales contracts do not qualify for hedge accounting under the Derivatives and Hedging topic of the ASC. Accordingly, the gain or loss on these derivatives is recognized in current earnings. Promotional, Advertising and Customer Incentive Program Costs Promotional and advertising costs are expensed as incurred and are included in selling, general and administrative expenses in the Statements of Consolidated Operations. Advertising costs were $64 million , $74 million and $90 million in 2016 , 2015 and 2014 , respectively. Customer incentive program costs are recorded in accordance with the Revenue Recognition topic of the ASC, based on specific performance criteria met by Monsanto’s customers, such as purchase volumes, promptness of payment and market share increases. In fiscal year 2016, the company introduced new Agricultural Productivity customer incentive programs providing certain customers price protection consideration if standard published prices are lowered from the price the distributor was charged on the eligible products on or before Apr. 30, 2016. The cost of customer incentive programs is generally recorded in net sales in the Statements of Consolidated Operations. The fair value of incentive programs earned by customers for services with separate identifiable benefit is generally recorded in selling, general and administrative expenses in the Statements of Consolidated Operations. The cost of incentive programs earned by distributors determined to be agents is generally recorded in selling, general and administrative expenses in the Statements of Consolidated Operations. As actual customer incentive program expenses are not known at the time of the sale, an estimate based on the best available information (such as historical experience and market research) is used as a basis for recording customer incentive program liabilities. Management analyzes and reviews the customer incentive program balances on a quarterly basis, and adjustments are recorded as appropriate. Under certain customer incentive programs, product performance and variations in weather can result in free product to customers. The associated cost of this free product is recognized as cost of goods sold in the Statements of Consolidated Operations. Research and Development Costs and Collaborative Arrangements The company accounts for research and development (“R&D”) costs in accordance with the Research and Development topic of the ASC. Under the Research and Development topic of the ASC, all R&D costs must be charged to expense as incurred. Accordingly, internal R&D costs are expensed as incurred. Third-party R&D costs are expensed when the contracted work has been performed or as milestone results are achieved. In process research and development (“IPR&D”) costs acquired in a business combination are recorded on the Statements of Consolidated Financial Position as indefinite-lived intangible assets until completion or abandonment of the associated R&D efforts. The costs of purchased IPR&D that have alternative future uses are capitalized and amortized over the estimated useful life of the asset. IPR&D intangible assets are subject to annual impairment tests. The costs associated with equipment or facilities acquired or constructed for R&D activities that have alternative future uses are capitalized and depreciated on a straight-line basis over the estimated useful life of the asset. The amortization and depreciation for such capitalized assets are charged to R&D expenses. Monsanto has entered into collaborations with third parties for the R&D and commercialization of agricultural products. The company accounts for costs incurred and revenue generated under these collaborative arrangements from transactions with third parties in accordance with the Collaborative Arrangements topic of the ASC. Under the Collaborative Arrangements topic of the ASC, all costs incurred and revenue generated from transactions with third parties shall be recorded in each entity’s respective income statement. Income Taxes Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Management regularly assesses the likelihood that deferred tax assets will be recovered from future taxable income, and to the extent management believes that it is more likely than not that a deferred tax asset will not be realized, a valuation allowance is established. When a valuation allowance is established, increased or decreased, an income tax charge or benefit is included in the consolidated financial statements, and net deferred tax assets are adjusted accordingly. The net deferred tax assets as of Aug. 31, 2016 , and Aug. 31, 2015, represent the estimated future tax benefits to be received from future reductions of taxes payable. Under the Income Taxes topic of the ASC, in order to recognize the benefit of an uncertain tax position, the taxpayer must be more likely than not of sustaining the position, and the measurement of the benefit is calculated as the largest amount that is more than 50 percent likely to be realized upon resolution of the position. Tax authorities regularly examine the company’s returns in the jurisdictions in which it does business. Management regularly assesses the tax risk of the company’s return filing positions and believes its accruals for uncertain tax positions are adequate as of Aug. 31, 2016 , and Aug. 31, 2015 . Cash and Cash Equivalents All highly liquid investments (defined as investments with a maturity of three months or less when purchased) are considered cash equivalents. Inventory Valuation and Obsolescence Inventories are stated at the lower of cost or market value for inventory measured using last-in, first-out (“LIFO”) method. Inventories are stated at the lower of cost or net realizable value for inventory measured under the first-in, first-out (“FIFO”) or average cost method. An inventory reserve would permanently reduce the cost basis of inventory. Inventories are valued as follows: Seeds and Genomics : Actual cost is used to value raw materials such as treatment chemicals and packaging, as well as goods in process. Costs for substantially all finished goods, which include the cost of carryover crops from the previous year, are valued at weighted-average actual cost. Weighted-average actual cost includes field growing and harvesting costs, plant conditioning and packaging costs and manufacturing overhead costs. Agricultural Productivity : Actual cost is used to value raw materials and supplies. Standard cost, which approximates actual cost, is used to value finished goods and goods in process. Variances, exclusive of abnormally low volume and operating performance, are capitalized into inventory. Standard cost includes direct labor and raw materials and manufacturing overhead based on normal capacity. The cost of the Agricultural Productivity segment inventories in the United States (approximately 11 percent of total company inventory as of Aug. 31, 2016 , and Aug. 31, 2015 ) is determined by using the LIFO method, which generally reflects the effects of inflation or deflation on cost of goods sold sooner than other inventory cost methods. The cost of inventories outside of the United States, as well as supplies inventories in the United States, is determined by using the FIFO method; FIFO is used outside of the United States because the requirements in the countries where Monsanto maintains inventories generally do not allow the use of the LIFO method. Inventories at FIFO approximate current cost. In accordance with the Inventory topic of the ASC, Monsanto records abnormal amounts of idle facility expense, freight, handling costs and wasted material (spoilage) as current period charges and allocates fixed production overhead to the costs of conversion based on the normal capacity of the production facilities. Monsanto establishes allowances for obsolescence of inventory equal to the difference between the cost of inventory (if higher) and the estimated market value, based on assumptions about future demand and market conditions. The company regularly evaluates the adequacy of its inventory obsolescence reserves. If economic and market conditions are different from those anticipated, inventory obsolescence could be materially different from the amounts provided for in the company’s consolidated financial statements. If inventory obsolescence is higher than expected, cost of goods sold will be increased, and inventory, net income and shareowners’ equity will be reduced. Goodwill Monsanto follows the guidance of the Business Combinations topic of the ASC in recording the goodwill arising from a business combination as the excess of purchase price and related costs over the fair value of identifiable assets acquired and liabilities assumed. Under the Intangibles – Goodwill and Other topic of the ASC, goodwill is not amortized and is subject to annual impairment tests. A fair-value-based test is applied at the reporting unit level, which is generally at or one level below the operating segment level. The test compares the fair value of the company’s reporting units to the carrying value of those reporting units. This test requires various judgments and estimates. The fair value of goodwill is determined using an estimate of future cash flows of the reporting unit and a risk-adjusted discount rate to compute a net present value of future cash flows. An adjustment to goodwill will be recorded for any goodwill that is determined to be impaired. Impairment of goodwill is measured as the excess of the carrying amount of goodwill over the fair values of recognized assets and liabilities of the reporting unit. Goodwill is tested for impairment at least annually, or more frequently if events or circumstances indicate it might be impaired. Other Intangible Assets Other intangible assets consist primarily of acquired seed germplasm, intellectual property, trademarks and customer relationships. Seed germplasm is the genetic material used in new seed varieties. Germplasm is amortized on a straight-line basis over useful lives ranging from five years for completed technology germplasm to a maximum of 30 years for certain core technology germplasm. Completed technology germplasm consists of seed hybrids and varieties that are commercially available. Core technology germplasm is the collective germplasm of parental seeds and has a longer useful life as it is used to develop new seed hybrids and varieties. Acquired intellectual property includes intangible assets related to acquisitions and licenses through which Monsanto has acquired the rights to various research and discovery technologies. These encompass intangible assets such as enabling processes and data libraries necessary to support the integrated genomics and biotechnology platforms. These intangible assets have alternative future uses and are amortized over useful lives ranging from two years to 18 years . The useful lives of acquired germplasm and acquired intellectual property are determined based on consideration of several factors including the nature of the asset, its expected use, length of licensing agreement or patent and the period over which benefits are expected to be received from the use of the asset. Monsanto has a broad portfolio of trademarks for herbicide products, traits, agricultural seeds and vegetable seeds, and patents for its traits, formulations used to make its herbicides and various manufacturing processes. The amortization period for acquired trademarks and patents ranges from two years to 30 years . Trademarks are amortized on a straight-line basis over their useful lives. The useful life of a trademark is determined based on the estimated market-life of the associated company, brand or product. Patents are amortized on a straight-line basis over the period in which the patent is legally protected, the period over which benefits are expected to be received, or the estimated market-life of the product with which the patent is associated, whichever is shorter. In conjunction with acquisitions, Monsanto obtains access to the distribution channels and customer relationships of the acquired companies. These relationships are expected to provide economic benefits to Monsanto. The amortization period for customer relationships ranges from three years to 20 years , and amortization is recognized on a straight-line basis over these periods. The amortization period of customer relationships represents management’s best estimate of the expected usage or consumption of the economic benefits of the acquired assets, which is based on the company’s historical experience of customer attrition rates. In accordance with the Property, Plant and Equipment topic of the ASC, all amortizable intangible assets are assessed for impairment whenever events indicate a possible loss. At a minimum, Monsanto assesses all amortizable intangible assets annually. Such an assessment involves estimating undiscounted cash flows over the remaining useful life of the intangible. If the review indicates that undiscounted cash flows are less than the recorded value of the intangible asset, the carrying amount of the intangible is reduced by the estimated cash-flow shortfall on a discounted basis, and a corresponding loss is charged to the Statement of Consolidated Operations. Property, Plant and Equipment Property, plant and equipment is recorded at cost. Additions and improvements are capitalized; these include all material, labor and engineering costs to design, install or improve the asset and interest costs on construction projects. Such costs are not depreciated until the assets are placed in service. Routine repairs and maintenance are expensed as incurred. The cost of plant and equipment is depreciated using the straight-line method over the estimated useful life of the asset — weighted-average periods of approximately 25 years for buildings, ten years for machinery and equipment and five years for software. In compliance with the Property, Plant and Equipment topic of the ASC, long-lived assets are reviewed for impairment whenever in management’s judgment conditions indicate a possible loss. Such impairment tests compare estimated undiscounted cash flows to the recorded value of the asset. If an impairment is indicated, the asset is written down to its fair value or, if fair value is not readily determinable, to an estimated fair value based on discounted cash flows. Asset Retirement Obligations and Environmental Remediation Liabilities Monsanto follows the Asset Retirement and Environmental Obligations topic of the ASC, which addresses financial accounting for and financial reporting of a liability for an asset retirement obligation and an environmental remediation liability that results from the normal operation of a long-lived asset. Monsanto has asset retirement obligations with carrying amounts totaling $78 million and $68 million included in other liabilities on the Statements of Consolidated Financial Position as of Aug. 31, 2016 , and Aug. 31, 2015 , respectively, primarily relating to its manufacturing facilities. In accordance with the Asset Retirement and Environmental Obligations topic of the ASC, Monsanto accrues these costs in the period when responsibility is established and when such costs are probable and reasonably estimable based on current law and existing technology. Postclosure and remediation costs for hazardous waste sites and other waste facilities at operating locations are accrued over the estimated life of the facility, as part of its anticipated closure cost. Litigation and Other Contingencies Monsanto is involved from time to time in various intellectual property, biotechnology, tort, contract, antitrust, shareowner claims, environmental and other litigation, claims and legal proceedings; environmental remediation; and government investigations. Management routinely assesses the likelihood of adverse judgments or outcomes to those matters, as well as ranges of probable losses, to the extent losses are reasonably estimable. In accordance with the Contingencies topic of the ASC, accruals for such contingencies are recorded to the extent that management concludes their occurrence is probable and the financial impact, should an adverse outcome occur, is reasonably estimable. Disclosure for specific legal contingencies is provided if the likelihood of occurrence is at least reasonably possible, and the exposure is considered material to the consolidated financial statements. In making determinations of likely outcomes of litigation matters, management considers many factors. These factors include, but are not limited to, past experience, scientific and other evidence, interpretation of relevant laws or regulations and the specifics and status of each matter. If the assessment of the various factors changes, the estimates may change. That may result in the recording of an accrual or a change in a previously recorded accrual. Predicting the outcome of claims and litigation and estimating related costs and exposure involves substantial uncertainties that could cause actual costs to vary materially from estimates and accruals. Guarantees Monsanto is subject to various commitments under contractual and other commercial obligations. The company recognizes liabilities for contingencies and commitments under the Guarantees topic of the ASC. Foreign Currency Translation The financial statements for most of Monsanto’s ex-U.S. operations are translated to U.S. dollars at current exchange rates. For assets and liabilities, the fiscal year-end rate is used. For revenues, expenses, gains and losses, an approximation of the average rate for the period is used. Unrealized currency adjustments in the Statements of Consolidated Financial Position are accumulated in equity as a component of accumulated other comprehensive loss. The financial statements of ex-U.S. operations in highly inflationary economies are translated at either current or historical exchange rates at the time they are deemed highly inflationary, in accordance with the Foreign Currency Matters topic of the ASC . These currency adjustments and the remeasurement of assets and liabilities of ex-U.S. operations with the U.S. dollar designated as their functional currency are included in net income. Based on the Consumer Price Index (“CPI”), Monsanto designated Venezuela as a hyperinflationary country effective June 1, 2009. The functional currency of the company’s foreign entities in Argentina is the U.S. dollar. Significant translation exposures include the Brazilian real, the Mexican peso, the European euro, South African rand, Indian rupee and Ukrainian hryvnia. Currency restrictions are not expected to have a significant effect on Monsanto’s cash flow, liquidity or capital resources. Derivatives and Other Financial Instruments Monsanto uses financial derivative instruments and natural hedges to limit its exposure to changes in foreign currency exchange rates, commodity prices and interest rates. Monsanto does not use financial derivative instruments for the purpose of speculating in foreign currencies, commodities or interest rates. Monsanto continually monitors its underlying market risk exposures and believes that it can modify or adapt its hedging strategies as needed. In accordance with the Derivatives and Hedging topic of the ASC, all derivatives, whether designated for hedging relationships or not, are recognized in the Statements of Consolidated Financial Position at their fair value. At the time a derivative contract is entered into, Monsanto designates each derivative as: (1) a hedge of the fair value of a recognized asset or liability (a fair-value hedge), (2) a hedge of a forecasted transaction or of the variability of cash flows that are to be received or paid in connection with a recognized asset or liability (a cash-flow hedge), (3) a foreign-currency fair-value or cash-flow hedge (a foreign-currency hedge), (4) a foreign-currency hedge of the net investment in a foreign subsidiary or (5) a derivative that does not qualify for hedge accounting treatment. Changes in the fair value of a derivative that is considered highly effective, and that is designated as and qualifies as a fair-value hedge, along with changes in the fair value of the hedged asset or liability that are attributable to the hedged risk, are recorded in current-period net income. Changes in the fair value of a derivative that is considered highly effective, and that is designated as and qualifies as a cash-flow hedge, to the extent that the hedge is effective, are recorded in accumulated other comprehensive loss until net income is affected by the variability from cash flows of the hedged item. Any hedge ineffectiveness is included in current-period net income. Changes in the fair value of a derivative that is considered highly effective, and that is designated as and qualifies as a foreign-currency hedge, are recorded either in current-period net income or in accumulated other comprehensive loss, depending on whether the hedging relationship satisfies the criteria for a fair-value or cash-flow hedge. Changes in the fair value of a derivative that is considered highly effective, and that is designated as a foreign-currency hedge of the net investment in a foreign subsidiary, are recorded in the accumulated foreign currency translation. Changes in the fair value of derivative instruments not designated as hedges are reported in current-period net income. Monsanto formally and contemporaneously documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and its strategy for undertaking various hedge transactions. This includes linking all derivatives that are designated as fair-value, cash-flow or foreign-currency hedges either to specific assets and liabilities on the Statements of Consolidated Financial Position, or to firm commitments or forecasted transactions. Monsanto formally assesses a hedge at its inception and on an ongoing basis thereafter to determine whether the hedging relationship between the derivative and the hedged item is still highly effective, and whether it is expected to remain highly effective in future periods, in offsetting changes in fair value or cash flows. When derivatives cease to be highly effective hedges, Monsanto discontinues hedge accounting prospectively. |
NEW ACCOUNTING STANDARDS
NEW ACCOUNTING STANDARDS | 12 Months Ended |
Aug. 31, 2016 | |
NEW ACCOUNTING STANDARDS [Abstract] | |
NEW ACCOUNTING STANDARDS | NEW ACCOUNTING STANDARDS In August 2016, the Financial Accounting Standards Board (“FASB”) issued accounting guidance, “Classification of Certain Cash Receipts and Cash Payments” which clarifies the classification of the activity in the Statements of Consolidated Cash Flows and how the predominant principle should be applied when cash receipts and cash payments have more than one class of cash flows. This standard is effective for fiscal years, and interim periods within those fiscal years, beginning after Dec. 15, 2017, with early adoption permitted. Adoption will be applied retrospectively to all periods presented. Monsanto is required to adopt the standard in the first quarter of fiscal year 2019. The company is currently evaluating the impact this guidance will have on the consolidated financial statements and related disclosures. In June 2016, the FASB issued accounting guidance, “Measurement of Credit Losses on Financial Instruments” which replaces the incurred loss methodology to record credit losses with a methodology that reflects the expected credit losses for financial assets not accounted for at fair value with gains and losses recognized through net income. This standard is effective for fiscal years, and interim periods within those fiscal years, beginning after Dec. 15, 2019, with early adoption permitted for fiscal years, and interim periods within those fiscal years, beginning after Dec. 15, 2018. This standard will be adopted on a modified retrospective basis. Monsanto is required to adopt this standard in the first quarter of fiscal year 2021, with early adoption permitted in the first quarter of fiscal year 2020. The company is currently evaluating the impact this guidance will have on the consolidated financial statements and related disclosures. In March 2016, the FASB issued accounting guidance, “Improvements to Employee Share-Based Payment Accounting” which will simplify the income tax consequences, accounting for forfeitures and classification on the Statements of Consolidated Cash Flows. This standard is effective for fiscal years, and interim periods within those fiscal years, beginning after Dec. 15, 2016, with early adoption permitted. Monsanto is required to adopt the standard in the first quarter of fiscal year 2018. The company is currently evaluating the impact this guidance will have on the consolidated financial statements and related disclosures. In February 2016, the FASB issued accounting guidance, “Leases” which will supersede the existing lease guidance and will require all leases with a term greater than 12 months to be recognized in the Statements of Financial Position and eliminate current real estate-specific lease guidance, while maintaining substantially similar classification criteria for distinguishing between finance leases and operating leases. This standard is effective for fiscal years, and interim periods within those fiscal years, beginning after Dec. 15, 2018, with early adoption permitted. This standard will be adopted on a modified retrospective basis. Monsanto is required to adopt the standard in the first quarter of fiscal year 2020. The company is currently evaluating the impact this guidance will have on the consolidated financial statements and related disclosures. In January 2016, the FASB issued accounting guidance, “Recognition and Measurement of Financial Assets and Financial Liabilities” which would require equity investments not accounted for as an equity method investment or that result in consolidation to be recorded at their fair value with changes in fair value recognized in the Statements of Consolidated Operations. Those equity investments that do not have a readily determinable fair value may be measured at cost less impairment, if any, plus or minus changes resulting from observable price changes. This standard is effective for fiscal years, and interim periods within those fiscal years, beginning after Dec. 15, 2017, with early adoption prohibited. Monsanto is required to adopt the standard in the first quarter of fiscal year 2019. The company is currently evaluating the impact this guidance will have on the consolidated financial statements and related disclosures. In November 2015, the FASB issued accounting guidance, “Balance Sheet Classification of Deferred Taxes” which removes the requirement to separate deferred tax liabilities and assets into current and noncurrent amounts and instead requires all such amounts be classified as noncurrent on the Statements of Consolidated Financial Position. This standard is effective for fiscal years, and interim periods within those fiscal years, beginning after Dec. 15, 2016, with early adoption permitted, including adoption in an interim period, for financial periods not yet reported. Monsanto elected to adopt this standard in the third quarter of fiscal 2016 on a prospective basis. The Aug. 31, 2015, financial statements were not retrospectively adjusted. The adoption of this guidance resulted in a material decrease in working capital. In September 2015, the FASB issued accounting guidance, “Simplifying the Accounting for Measurement-Period Adjustments” in business combinations. This standard eliminates the need for an acquirer in a business combination to recognize measurement-period adjustments retrospectively, but instead measurement-period adjustments are to be recorded during the period in which the amount of the adjustment is determined, including the effect on earnings of any amount that would have been recorded in a previous period had the amount been recorded at the acquisition date. This standard is effective for fiscal years, and interim periods within those fiscal years, beginning after Dec. 15, 2015, with early adoption permitted. Monsanto has elected to adopt this standard as of Aug. 31, 2016. The adoption of the standard had no impact to the consolidated financial statements and related disclosures. In July 2015, the FASB issued accounting guidance, “Simplifying the Measurement of Inventory” which requires inventory to be carried at the lower of cost or net realizable value if the FIFO or average cost method is used. This standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after Dec. 15, 2016, with early adoption permitted. Monsanto has elected to adopt this standard in fiscal year 2016. The adoption of the standard had no impact to the consolidated financial statements. Refer to Note 2 — Significant Accounting Policies — for disclosure of Monsanto’s significant accounting policies related to inventory valuation. In April 2015, the 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, with early adoption permitted. Monsanto has elected to adopt the standard on a prospective basis as of Aug. 31, 2016. The adoption of the standard had no impact to 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. 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 May 2014, the FASB issued accounting guidance, “Revenue from Contracts with Customers” which has been further clarified and amended. 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. In August 2015, the FASB amended the guidance to allow for the deferral of the effective date of this standard. The standard is effective for fiscal years, and interim periods within those years, beginning after Dec. 15, 2017. Accordingly, Monsanto is required to adopt this standard in the first quarter of fiscal year 2019. One-year early adoption is permitted. The initial analysis identifying areas that will be impacted by the new guidance is substantially complete, and the company is currently analyzing the potential impacts to the consolidated financial statements and related disclosures. The company believes the most significant impact relates to its accounting for biotechnology trait license revenue with fixed payments. Revenue from seed sales, agricultural chemical products and biotechnology trait licenses recognized as third-party seed companies sell seed is expected to remain substantially unchanged. Specifically, under the new standard, revenue for biotechnology trait license with fixed payments are expected to be recognized upon commencement of the license term rather than over the contract period. Due to complexities of certain biotechnology trait license agreements, the actual revenue recognition treatment under the standard will be dependent upon contract-specific terms and may vary in some instances from recognition upon commencement of the license term. The company has not made a decision on the method of adoption. 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 adopted this standard in the first quarter of fiscal year 2016. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Aug. 31, 2016 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS AND COLLABORATIVE ARRANGEMENTS Business Combinations 2014 Acquisition: In November 2013, Monsanto acquired 100 percent of the outstanding stock of The Climate Corporation, a San Francisco, California based company. The Climate Corporation is a leading data analytics company with core capabilities around hyper-local weather monitoring, weather simulation and agronomic modeling which has allowed 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 R&D capabilities and enables farmers to significantly improve productivity and better manage risk from variables that could limit agriculture production. The acquisition of the company qualifies as a business under the Business Combinations topic of the ASC. Acquisition costs were $18 million and were classified as selling, general and administrative expenses in the Statements of Consolidated Operations. 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. Monsanto has entered into various multi-year research, development, manufacturing and commercialization collaborations related to various activities including plant biotechnology and microbial solutions. Under these collaborations, Monsanto and the third parties participate in the R&D and/or manufacturing activities, and Monsanto 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 . |
RESTRUCTURING
RESTRUCTURING | 12 Months Ended |
Aug. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | RESTRUCTURING Restructuring charges were recorded in the Statements of Consolidated Operations as follows: Year Ended Aug. 31, (Dollars in millions) 2016 2015 Cost of Goods Sold (1) $ (67 ) $ (100 ) Restructuring Charges (2) (297 ) (393 ) Loss from Continuing Operations Before Income Taxes $ (364 ) $ (493 ) Income Tax Provision 101 155 Net Income $ (263 ) $ (338 ) (1) The $67 million of restructuring charges in cost of goods sold for the fiscal year ended Aug. 31, 2016, is split by segment as follows: $1 million in Agricultural Productivity and $66 million in Seeds and Genomics. The $100 million of restructuring charges in cost of goods sold is recorded to the Seeds and Genomics segment for the fiscal year ended Aug. 31, 2015. (2) The $297 million of restructuring charges for the fiscal year ended Aug. 31, 2016, is split by segment as follows: $36 million in Agricultural Productivity and $261 million in Seeds and Genomics. The $393 million of restructuring charges for the fiscal year ended Aug. 31, 2015, is split by segment as follows: $13 million in Agricultural Productivity and $380 million in Seeds and Genomics. On Oct. 6, 2015, the company approved actions to realign resources to increase productivity, enhance competitiveness by delivering cost improvements and support long-term growth. On Jan. 5, 2016, the company approved additional actions which together with the Oct. 6, 2015, actions comprise the 2015 Restructuring Plan. Actions include streamlining and reprioritizing some commercial, enabling, supply chain and research and development efforts. Cumulative pretax charges related to the 2015 Restructuring Plan are estimated to be $1 billion to $1.1 billion . Implementation of the 2015 Restructuring Plan is expected to be completed by the end of fiscal year 2018, and substantially all of the cash payments are expected to be made by the end of fiscal year 2018. These pretax charges are currently estimated to be comprised of the following categories: $420 million to $465 million in work force reductions, including severance and related benefits; $130 million to $150 million in facility closures / exit costs, including contract termination costs; $450 million to $485 million in asset impairments and write-offs related to property, plant and equipment, inventory and goodwill and other assets. These pretax charges are currently estimated to be incurred primarily by the Seeds and Genomics segment. The following table displays the pretax charges of $364 million and $493 million incurred by segment under the 2015 Restructuring Plan for the fiscal years ended Aug. 31, 2016 , and Aug. 31, 2015, respectively, as well as the cumulative pretax charges of $857 million under the 2015 Restructuring Plan. Year Ended Aug. 31, 2016 Year Ended Aug. 31, 2015 Cumulative Amount through Aug. 31, 2016 (Dollars in millions) Seeds and Genomics Agricultural Productivity Total Seeds and Genomics Agricultural Productivity Total Seeds and Genomics Agricultural Productivity Total Work Force Reductions $ 179 $ 10 $ 189 $ 204 $ 13 $ 217 $ 383 $ 23 $ 406 Facility Closures/Exit Costs 23 5 28 — — — 23 5 28 Asset Impairments and Write-offs: Property, plant and equipment 41 2 43 81 — 81 122 2 124 Inventory 42 — 42 51 — 51 93 — 93 Goodwill and other assets 42 20 62 144 — 144 186 20 206 Total Restructuring Charges, Net $ 327 $ 37 $ 364 $ 480 $ 13 $ 493 $ 807 $ 50 $ 857 The company’s written human resource policies are indicative of an ongoing benefit arrangement with respect to severance packages. Benefits paid pursuant to an ongoing benefit arrangement are specifically excluded from the Exit or Disposal Cost Obligations topic of the ASC; therefore severance charges incurred in connection with the 2015 Restructuring Plan are accounted for when probable and estimable as required under the Compensation - Nonretirement Postemployment Benefits topic of the ASC. In addition, when the decision to commit to a restructuring plan requires a long-lived asset and finite-lived intangible asset impairment review, Monsanto evaluates such impairment issues under the Property, Plant and Equipment topic of the ASC. The following table summarizes the activities related to the company’s 2015 Restructuring Plan. (Dollars in millions) Work Force Reductions (1) Facility Closures/Exit Costs Asset Impairments Total Restructuring charges recognized in fourth quarter 2015 $ 217 $ — $ 276 $ 493 Asset impairments and write-offs — — (276 ) (276 ) Ending Liability as of Aug. 31, 2015 $ 217 $ — $ — $ 217 Net restructuring charges recognized in fiscal year 2016 $ 189 28 147 364 Cash payments (164 ) (28 ) — (192 ) Asset impairments and write-offs — — (147 ) (147 ) Foreign currency impact 2 — — 2 Ending Liability as of Aug. 31, 2016 $ 244 $ — $ — $ 244 (1) The restructuring liability balance included $17 million and $47 million that were recorded in long-term restructuring reserves in the Statements of Consolidated Financial Position as of Aug. 31, 2016, and Aug. 31, 2015, respectively. |
RECEIVABLES
RECEIVABLES | 12 Months Ended |
Aug. 31, 2016 | |
Receivables [Abstract] | |
RECEIVABLES | RECEIVABLES The following table displays a roll forward of the allowance for doubtful trade receivables for fiscal years 2014 , 2015 and 2016 . (Dollars in millions) Balance Aug. 31, 2013 $ 68 Additions — charged to expense 44 Other (1) (40 ) Balance Aug. 31, 2014 $ 72 Additions — charged to expense 44 Other (1) (57 ) Balance Aug. 31, 2015 $ 59 Additions — charged to expense 82 Other (1) (47 ) Balance Aug. 31, 2016 $ 94 (1) Includes reclassifications to long-term, write-offs, recoveries and foreign currency translation adjustments. The company has financing receivables that represent long-term customer receivable balances related to past due accounts which are not expected to be collected within the current year. The long-term customer receivables were $260 million and $156 million with a corresponding allowance for credit losses on these receivables is $228 million and $120 million , as of Aug. 31, 2016 , and Aug. 31, 2015 , respectively. These long-term customer receivable balances and the corresponding allowance are included in long-term receivables, net on the Statements of Consolidated Financial Position. For these long-term customer receivables, interest is no longer accrued when the receivable is determined to be delinquent and classified as long-term based on estimated timing of collection. The following table displays a roll forward of the allowance for credit losses related to long-term customer receivables for fiscal years 2014 , 2015 and 2016 . (Dollars in millions) Balance Aug. 31, 2013 $ 104 Incremental Provision 11 Recoveries (4 ) Write-Offs (15 ) Other (1) 29 Balance Aug. 31, 2014 $ 125 Incremental Provision 9 Recoveries (3 ) Write-Offs (28 ) Other (1) 17 Balance Aug. 31, 2015 $ 120 Incremental Provision 78 Recoveries (2 ) Write-Offs (4 ) Other (1) 36 Balance Aug. 31, 2016 $ 228 (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. The following table sets forth Monsanto’s gross trade receivables by geographic area as of Aug. 31, 2016 , and Aug. 31, 2015 , by significant customer concentrations: As of Aug. 31, (Dollars in millions) 2016 2015 Argentina $ 302 $ 298 Asia-Pacific 113 185 Brazil 234 181 Canada 27 43 Europe-Africa 550 498 Mexico 147 202 United States 574 230 Other 73 58 Gross Trade Receivables 2,020 1,695 Less: Allowance for Doubtful Accounts (94 ) (59 ) Trade Receivables, Net $ 1,926 $ 1,636 |
CUSTOMER FINANCING PROGRAMS
CUSTOMER FINANCING PROGRAMS | 12 Months Ended |
Aug. 31, 2016 | |
CUSTOMER FINANCING PROGRAMS [Abstract] | |
CUSTOMER FINANCING PROGRAMS | CUSTOMER FINANCING PROGRAMS Monsanto participates in customer financing programs as follows: As of Aug. 31, (Dollars in millions) 2016 2015 Transactions that Qualify for Sales Treatment U.S. agreement to sell trade receivables (1) Outstanding balance $ 511 $ 851 Maximum future payout under recourse provisions 19 125 European and Latin American agreements to sell trade receivables (2) Outstanding balance $ 60 $ 124 Maximum future payout under recourse provisions 35 22 Agreements with Lenders (3) Outstanding balance $ 73 $ 75 Maximum future payout under the guarantee 57 62 The gross amounts of receivables sold under transactions that qualify for sales treatment are: Gross Amounts of Receivables Sold Year Ended Aug. 31, (Dollars in millions) 2016 2015 2014 Transactions that Qualify for Sales Treatment U.S. agreement to sell trade receivables (1) $ 511 $ 852 $ 457 European and Latin American agreements to sell trade receivables (2) 96 165 78 (1) Monsanto has agreements in the United States to sell trade receivables, both with and without recourse, up to a maximum outstanding balance of $1.4 billion 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. 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 on the company’s historical collection experience 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, 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 $309 million as of Aug. 31, 2016 ) 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 8 — Variable Interest Entities and Investments . There were no significant recourse or non-recourse liabilities for all programs as of Aug. 31, 2016 , and Aug. 31, 2015 . There were no significant delinquent loans for all programs as of Aug. 31, 2016 , and Aug. 31, 2015 . |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Aug. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES AND INVESTMENTS 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 Brazil 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 89 percent and 90 percent in the entity as of Aug. 31, 2016 , and Aug. 31, 2015 , respectively, and Monsanto held the remaining 11 percent and ten percent interest, respectively. The senior interests held by third parties are mandatorily redeemable shares and are included in short-term debt in the Statement of Consolidated Financial Position as of as of Aug. 31, 2016 , and are included in long-term debt in the Statement of Consolidated Financial Position as of Aug. 31, 2015 . Under the arrangement, Monsanto is required to maintain an investment in the Brazil VIE of at least ten percent and could be required to provide additional contributions to the Brazil VIE. Monsanto currently has no unfunded commitments to the Brazil VIE. Creditors have no recourse against Monsanto in the event of default by the Brazil VIE. The company’s financial or other support provided to the Brazil VIE is limited to its investment. Even though Monsanto holds a subordinate interest in the Brazil VIE, the Brazil 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 Brazil VIE. As a result, the company is the primary beneficiary of the Brazil VIE, and the Brazil VIE has been consolidated in Monsanto’s consolidated financial statements. The assets of the Brazil VIE may only be used to settle the obligations of the respective entity. Third-party investors in the Brazil VIE do not have recourse to the general assets of Monsanto. See Note 7 — Customer Financing Programs and Note 14 — Fair Value Measurements — for additional information. Monsanto previously entered into several agreements with third parties to establish entities to focus on R&D related to various activities including agricultural fungicides and biologicals for agricultural applications. All such entities were recorded as consolidated VIEs of Monsanto. Under each of the arrangements, Monsanto held call options to acquire the majority of the equity interests in each R&D VIE from the third-party owners. Monsanto funded the operations of the R&D VIEs in return for either additional equity interests or to retain the call options. The funding was provided in separate research phases if research milestones were met. The R&D VIEs were established to perform agricultural-based R&D activities for the benefit of Monsanto, and Monsanto provided all funding of the R&D VIEs’ activities. Further, Monsanto had the power to direct the activities most significant to the R&D VIEs. As a result, Monsanto was the primary beneficiary of the R&D VIEs, and the R&D VIEs were consolidated in Monsanto’s consolidated financial statements. The third-party owners of the R&D VIEs did not have recourse to the general assets of Monsanto beyond Monsanto’s maximum exposure to loss at any given time relating to the R&D VIEs. As of Aug. 31, 2016, Monsanto remains a party to one R&D VIE which was consolidated in the Statement of Consolidated Financial Position. Equity Method and Cost Basis Investments Monsanto has equity method and cost basis investments recorded in other assets in the Statements of Consolidated Financial Position. Due to the nature of the cost basis investments, the fair market value is not readily determinable. These investments are reviewed for impairment indicators on a quarterly basis. Effective June 15, 2016, the company signed agreements to sell certain manufacturing assets and contribute to a newly-formed joint venture certain intellectual property, real property and tangible assets related to the company’s sorghum business. These agreements created a global joint venture in sorghum breeding that expanded the commercial and technology reach of the elite germplasm and remain focused on delivering important product offerings for sorghum growers so that they can continue to benefit from new innovations in the crop. Monsanto has a 40 percent membership interest, and Remington Holding, LLC has the remaining 60 percent membership interest of Innovative Seed Solutions, LLC (the “Joint Venture”). Monsanto will source sorghum products derived from the Joint Venture and will offer these products through certain branded dealer networks globally. Monsanto received a cash payment of approximately $110 million and minority interest in the newly-formed Joint Venture, which combined resulted in a gain of $157 million in the fourth quarter of the current fiscal year recorded in other expense, net in the Statement of Consolidated Operations. For such investments that were accounted for under the equity method and cost basis included in other assets in the Statements of Consolidated Financial Position, the amounts are summarized in the following table: As of Aug. 31, (Dollars in millions) 2016 2015 Equity Method Investments $ 152 $ 114 Cost Basis Investments 94 90 Total $ 246 $ 204 |
INVENTORY
INVENTORY | 12 Months Ended |
Aug. 31, 2016 | |
Inventory Disclosure [Abstract] | |
INVENTORY | INVENTORY Components of inventory are: As of Aug. 31, (Dollars in millions) 2016 2015 Finished Goods $ 1,404 $ 1,603 Goods In Process 1,489 1,627 Raw Materials and Supplies 498 420 Inventory at FIFO Cost 3,391 3,650 Excess of FIFO over LIFO Cost (150 ) (154 ) Total $ 3,241 $ 3,496 Inventory obsolescence reserves are utilized as valuation accounts and effectively establish a new cost basis. The following table displays a roll forward of the inventory obsolescence reserve for fiscal years 2014 , 2015 and 2016 . (Dollars in millions) Balance Aug. 31, 2013 $ 408 Additions — charged to expense 331 Deductions and other (1) (324 ) Balance Aug. 31, 2014 $ 415 Additions — charged to expense 390 Deductions and other (1) (371 ) Balance Aug. 31, 2015 $ 434 Additions — charged to expense 410 Deductions and other (1) (376 ) Balance Aug. 31, 2016 $ 468 (1) Deductions and other includes disposals and foreign currency translation adjustments. As part of Monsanto’s 2015 Restructuring Plan, inventory impairment charges of $42 million and $51 million were recorded in fiscal year 2016 and 2015 , respectively. See Note 5 — Restructuring — for additional information. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Aug. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Components of property, plant and equipment are as follows: As of Aug. 31, (Dollars in millions) 2016 2015 Land and Improvements $ 645 $ 643 Buildings and Improvements 2,225 2,143 Machinery and Equipment 5,871 5,653 Computer Software 1,008 893 Construction In Progress and Other 1,367 1,096 Total Property, Plant and Equipment 11,116 10,428 Less: Accumulated Depreciation 5,885 5,455 Property, Plant and Equipment, Net $ 5,231 $ 4,973 Gross assets acquired under capital leases of $39 million and $42 million are included primarily in machinery and equipment as of Aug. 31, 2016 , and Aug. 31, 2015 , respectively. See Note 13 — Debt and Other Credit Arrangements — and Note 24 — Commitments and Contingencies — for related capital lease obligations. As part of Monsanto’s 2015 Restructuring Plan, asset impairment charges of $43 million and $81 million were recorded in fiscal years 2016 and 2015, respectively. These impairment charges primarily were related to machinery and equipment. See Note 5 — Restructuring — for additional information. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Aug. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLES ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The fiscal year 2016 and 2015 annual goodwill impairment tests were performed as of Mar. 1, 2016, and 2015, respectively, and no indications of goodwill impairment existed as of either date. Goodwill is tested for impairment at least annually, or more frequently if events or circumstances indicate a potential impairment. As of Aug. 31, 2016 , Monsanto considered potential triggering events or circumstances impacting goodwill and determined there was no impairment. As of fiscal year 2016 , accumulated goodwill impairment charges since the adoption of FASB Statement No. 142, Goodwill and Other Intangible Assets (codified in ASC 350) in 2002 were $2 billion . The company has not had an impairment charge since the adoption of ASC 350. Changes in the net carrying amount of goodwill for fiscal years 2015 and 2016 , by segment, are as follows: (Dollars in millions) Seeds and Genomics Agricultural Productivity Total Balance Aug. 31, 2014 $ 4,262 $ 57 $ 4,319 Dispositions (75 ) — (75 ) Effect of foreign currency translation adjustments (183 ) — (183 ) Balance Aug. 31, 2015 $ 4,004 $ 57 $ 4,061 Reclass to assets held for sale (41 ) — (41 ) Effect of foreign currency translation adjustments and other adjustments 4 (4 ) — Balance Aug. 31, 2016 $ 3,967 $ 53 $ 4,020 In fiscal year 2016 , goodwill decreased due to the reclass to assets held for sale for the Precision Planting equipment business. See Note 1 — Background and Basis of Presentation — for further information. In fiscal year 2015 , goodwill decreased primarily due to the exit of the sugarcane business and foreign currency impacts. Information regarding the company’s other intangible assets is as follows: As of Aug. 31, 2016 As of Aug. 31, 2015 (Dollars in millions) Carrying Amount Accumulated Amortization Net Carrying Amount Accumulated Amortization Net Acquired Germplasm $ 1,070 $ (778 ) $ 292 $ 1,074 $ (750 ) $ 324 Acquired Intellectual Property 1,042 (593 ) 449 1,168 (598 ) 570 Trademarks 334 (152 ) 182 353 (152 ) 201 Customer Relationships 301 (223 ) 78 318 (212 ) 106 Other 65 (33 ) 32 176 (146 ) 30 Total Other Intangible Assets, Finite Lives $ 2,812 $ (1,779 ) $ 1,033 $ 3,089 $ (1,858 ) $ 1,231 In Process Research & Development, Indefinite Lives 92 — 92 101 — 101 Total Other Intangible Assets $ 2,904 $ (1,779 ) $ 1,125 $ 3,190 $ (1,858 ) $ 1,332 The decrease in total other intangible assets, net during fiscal years 2016 and 2015 is primarily related to intangible impairments and amortization expense. See Note 14 — Fair Value Measurements and Note 5 — Restructuring — for further information on the intangible impairments. Total amortization expense of total other intangible assets was $116 million in fiscal year 2016 , $143 million in fiscal year 2015 and $136 million in fiscal year 2014 . The estimated intangible asset amortization expense for each of the five succeeding fiscal years is as follows: (Dollars in millions) Amount 2017 $ 146 2018 109 2019 115 2020 112 2021 100 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Aug. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of income from continuing operations before income taxes are: Year Ended Aug. 31, (Dollars in millions) 2016 2015 2014 United States $ 1,457 $ 2,092 $ 2,436 Outside United States 534 1,069 1,391 Total $ 1,991 $ 3,161 $ 3,827 The components of income tax provision from continuing operations are: Year Ended Aug. 31, (Dollars in millions) 2016 2015 2014 Current: U.S. Federal $ 393 $ 675 $ 648 U.S. State 43 69 65 Outside United States 231 408 410 Total Current $ 667 $ 1,152 $ 1,123 Deferred: U.S. Federal (109 ) (91 ) 41 U.S. State (7 ) (2 ) (2 ) Outside United States 144 (195 ) (84 ) Total Deferred 28 (288 ) (45 ) Total $ 695 $ 864 $ 1,078 Factors causing Monsanto’s income tax provision from continuing operations to differ from the U.S. federal statutory rate are: Year Ended Aug. 31, (Dollars in millions) 2016 2015 2014 U.S. Federal Statutory Rate $ 697 $ 1,106 $ 1,339 U.S. Domestic Manufacturing Deduction (64 ) (87 ) (75 ) U.S. R&D Tax Credit (34 ) (30 ) (12 ) U.S. State Income Taxes 28 39 45 Lower Taxes on Foreign Operations (243 ) (209 ) (230 ) Valuation Allowances 308 13 12 Adjustment for Unrecognized Tax Benefits (6 ) (4 ) (8 ) Other 9 36 7 Income Tax Provision $ 695 $ 864 $ 1,078 Deferred income tax balances are related to: As of Aug. 31, (Dollars in millions) 2016 2015 Net Operating Loss and Other Carryforwards $ 438 $ 323 Employee Fringe Benefits 331 305 Royalties 189 154 Restructuring and Impairment Reserves 155 242 Inventories 91 173 Allowance for Doubtful Accounts 77 72 Environmental and Litigation Reserves 70 69 Other 407 307 Valuation Allowance (346 ) (68 ) Total Deferred Tax Assets $ 1,412 $ 1,577 Property, Plant and Equipment 533 539 Intangibles 334 361 Total Deferred Tax Liabilities 867 900 Net Deferred Tax Assets $ 545 $ 677 Management regularly assesses the likelihood that deferred tax assets will be recovered from future taxable income. To the extent management believes it is more likely than not that a deferred tax asset will not be realized, a valuation allowance is established. As of Aug. 31, 2016 , Monsanto had available approximately $696 million in net operating loss carryforwards (“NOLs”), most of which related to Brazilian operations where NOLs have an indefinite carryforward period. As of Aug. 31, 2016 , management continues to believe it is more likely than not that the company will realize the deferred tax assets in Brazil. As of Aug. 31, 2016 , Monsanto had approximately $281 million of deferred tax assets in Argentina, primarily related to accrued royalties for which a tax benefit will be realized when paid. As a result of losses generated in Argentina in the current year as well as recent uncertainties around the Argentina business, during 2016, the company determined it was not more likely than not to utilize these deferred tax assets and established a valuation allowance against the entire balance of these deferred tax assets. Income taxes and remittance taxes have not been recorded on approximately $4.5 billion of undistributed earnings of foreign operations of Monsanto because Monsanto intends to reinvest those earnings indefinitely. It is not practicable to estimate the income tax liability that might be incurred if such earnings were remitted to the United States. Monsanto operates in various countries throughout the world and, as a result, files income tax returns in numerous jurisdictions. These tax returns are subject to examination by various federal, state and local tax authorities. Due to the nature of the examinations, it may take several years before they are completed. Management regularly assesses the tax risk of the company’s return filing positions for all open years. For Monsanto’s major tax jurisdictions, the tax years that remain subject to examination are shown below: Jurisdiction U.S. Federal 2013-2016 U.S. State 2000-2016 Argentina 2001-2016 Brazil 2006-2016 As of Aug. 31, 2016 , Monsanto had total unrecognized tax benefits of $123 million , of which $90 million would favorably impact the effective tax rate if recognized. As of Aug. 31, 2015 , Monsanto had total unrecognized tax benefits of $135 million , of which $100 million would favorably impact the effective tax rate if recognized. Accrued interest and penalties included in other liabilities in the Statements of Consolidated Financial Position were $24 million and $28 million as of Aug. 31, 2016 , and Aug. 31, 2015 , respectively. Monsanto recognizes accrued interest and penalties related to unrecognized tax benefits as a component of income tax provision within the Statements of Consolidated Operations. For the year ended Aug. 31, 2016 , the company recognized less than $1 million of income tax benefit for interest and penalties. For the year ended Aug. 31, 2015 , the company recognized $6 million of income tax benefit for interest and penalties. For the year ending Aug. 31, 2014 , the company recognized $4 million of income tax expense for interest and penalties. A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows: (Dollars in millions) 2016 2015 Balance Sept. 1 $ 135 $ 152 Increases for Prior Year Tax Positions 17 12 Decreases for Prior Year Tax Positions (11 ) (14 ) Increases for Current Year Tax Positions 8 7 Settlements (1 ) — Lapse of Statute of Limitations (23 ) (12 ) Foreign Currency Translation (2 ) (10 ) Balance Aug. 31 $ 123 $ 135 If the company’s assessment of unrecognized tax benefits is not representative of actual outcomes, the company’s consolidated financial statements could be significantly impacted in the period of settlement or when the statute of limitations expires. Management estimates it is reasonably possible that the total amount of unrecognized tax benefits could decrease by as much as $70 million within the next 12 months, primarily as a result of the resolution of audits currently in progress in several jurisdictions involving issues common to large multinational corporations and the lapsing of the statute of limitations in multiple jurisdictions. |
DEBT AND OTHER CREDIT ARRANGEME
DEBT AND OTHER CREDIT ARRANGEMENTS | 12 Months Ended |
Aug. 31, 2016 | |
Debt Disclosure [Abstract] | |
DEBT AND OTHER CREDIT ARRANGEMENTS | DEBT AND OTHER CREDIT ARRANGEMENTS Monsanto has a $3 billion credit facility agreement that provides a senior unsecured revolving credit facility through Mar. 27, 2020. This facility was initiated to be used for general corporate purposes, which may include working capital requirements, acquisitions, capital expenditures, refinancing and support of commercial paper borrowings. The agreement also provides for euro, pounds sterling and yen-denominated loans, and for letters of credit and swingline borrowings, and allows Monsanto to designate certain subsidiaries to borrow with a company guarantee. Covenants under this credit facility restrict maximum borrowings. There are no compensating balances, but the facility is subject to various fees, which are based on the company’s credit ratings. As of Aug. 31, 2016 , Monsanto was in compliance with all financial debt covenants, and there were no outstanding borrowings under this credit facility. In April 2016, Monsanto filed a shelf registration with the SEC (“2016 shelf registration”) that allows the company to issue a maximum aggregate amount of $6 billion of debt, equity and hybrid offerings. The 2016 shelf registration expires in April 2019. Under the terms of the Merger Agreement, Monsanto is subject to certain restrictions on incurrences of debt. Short-Term Debt As of Aug. 31, (Dollars in millions) 2016 2015 Current Portion of Long-Term Debt $ 902 $ 308 Mandatorily Redeemable Shares of Brazil VIE 113 — Notes Payable to Banks 72 307 Commercial Paper 500 — Total Short-Term Debt $ 1,587 $ 615 The fair value of total short-term debt was $1,589 million and $619 million as of Aug. 31, 2016 , and Aug. 31, 2015 , respectively. The interest rate on the mandatorily redeemable shares of the Brazil VIE is a variable rate. See Note 14 — Fair Value Measurements — for additional information regarding mandatorily redeemable shares of the Brazil VIE. The weighted average interest rate on notes payable to banks and commercial paper was two percent and three percent as of Aug. 31, 2016 , and Aug. 31, 2015 , respectively. As of Aug. 31, 2016 , the company had commercial paper borrowings outstanding of $ 500 million and short-term borrowings to support ex-U.S. operations throughout the year, which had weighted-average interest rates as indicated above. As of Aug. 31, 2015 , the company did not have any outstanding commercial paper. Long-Term Debt As of Aug. 31, (Dollars in millions) 2016 2015 Floating Rate Senior Notes, Due 2016 (1) $ — $ 399 1.150% Senior Notes, Due 2017 (1) — 498 5.125% Senior Notes, Due 2018 (1) 299 299 1.850% Senior Notes, Due 2018 (1) 299 298 2.125% Senior Notes, Due 2019 (1) 498 497 2.750% Senior Notes, Due 2021 (1) 496 496 2.200% Senior Notes, Due 2022 (1) 249 248 3.375% Senior Notes, Due 2024 (1) 744 744 5.500% Senior Notes, Due 2025 (1) 289 287 2.850% Senior Notes, Due 2025 (1) 297 296 4.200% Senior Notes, Due 2034 (1) 492 492 5.500% Senior Notes, Due 2035 (1) 393 393 5.875% Senior Notes, Due 2038 (1) 246 245 3.600% Senior Notes, Due 2042 (1) 247 247 4.650% Senior Notes, Due 2043 (1) 297 297 4.400% Senior Notes, Due 2044 (1) 982 982 3.950% Senior Notes, Due 2045 (1) 493 493 4.300% Senior Notes, Due 2045 (1) 361 361 4.700% Senior Notes, Due 2064 (1) 735 734 Mandatorily Redeemable Shares of Brazil VIE — 96 Other (including Capital Leases) 36 27 Total Long-Term Debt $ 7,453 $ 8,429 (1) Amounts are net of unamortized discounts and debt issuance costs. The fair value of total long-term debt was $7,834 million and $8,124 million as of Aug. 31, 2016 , and Aug. 31, 2015 , respectively. 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. The net proceeds from the issuances were used for general corporate purposes, which may have included 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. The net proceeds from the July 2014 issuance were used to purchase treasury shares pursuant to the accelerated share repurchase agreements disclosed in Note 20 — Capital Stock . The information regarding interest expense below reflects Monsanto’s interest expense on debt, mandatorily redeemable shares, customer financing and the amortization of debt issuance costs and interest rate swaps: Year Ended Aug. 31, (Dollars in millions) 2016 2015 2014 Interest Cost Incurred $ 468 $ 460 $ 275 Less: Capitalized on Construction 32 27 27 Interest Expense $ 436 $ 433 $ 248 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Aug. 31, 2016 | |
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 Aug. 31, 2016 , and Aug. 31, 2015 . As required by the Fair Value Measurements and Disclosures topic of the ASC, assets and liabilities are classified in their entirety based on the lowest level of input that is a significant component of the fair value measurement. Monsanto’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of fair value assets and liabilities within the fair value hierarchy levels. Fair Value Measurements at Aug. 31, 2016, Using (Dollars in millions) Level 1 Level 2 Level 3 Net Balance Assets at Fair Value: Cash equivalents $ 1,081 $ — $ — $ 1,081 Short-term investments 60 — — 60 Equity securities 13 — — 13 Derivative assets related to: Foreign currency — 10 — 10 Commodity contracts 9 9 — 18 Total Assets at Fair Value $ 1,163 $ 19 $ — $ 1,182 Liabilities at Fair Value: Short-term debt instruments (1) — 1,476 113 1,589 Long-term debt instruments (1) — 7,834 — 7,834 Derivative liabilities related to: Foreign currency — 15 — 15 Commodity contracts 32 20 — 52 Interest rate contracts — 41 — 41 Total Liabilities at Fair Value $ 32 $ 9,386 $ 113 $ 9,531 (1) Debt instruments, excluding mandatorily redeemable shares, 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, 2015, Using (Dollars in millions) Level 1 Level 2 Level 3 Net Balance Assets at Fair Value: Cash equivalents $ 3,213 $ — $ — $ 3,213 Short-term investments 47 — — 47 Equity securities 17 — — 17 Derivative assets related to: Foreign currency — 40 — 40 Commodity contracts 1 7 — 8 Interest rate contracts — 2 — 2 Total Assets at Fair Value $ 3,278 $ 49 $ — $ 3,327 Liabilities at Fair Value: Short-term debt instruments (1) $ — $ 619 $ — $ 619 Long-term debt instruments (1) — 8,028 96 8,124 Derivative liabilities related to: Foreign currency — 11 — 11 Commodity contracts 35 50 — 85 Total Liabilities at Fair Value $ 35 $ 8,708 $ 96 $ 8,839 (1) Debt instruments, excluding mandatorily redeemable shares, 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 equity securities consist of publicly traded equity investments. 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 is classified as Level 1. Short-term debt instruments are classified as Level 2. The company’s long-term 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 13 — 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 (Level 2 measurement). For the periods ended Aug. 31, 2016 , and Aug. 31, 2015 , the company had no transfers between Level 1, Level 2 and Level 3. Monsanto does not have any assets with fair value determined using Level 3 inputs for the years ended Aug. 31, 2016 , and Aug. 31, 2015 . The following table summarizes the change in fair value of the Level 3 short-term debt instruments for the year ended Aug. 31, 2016 . (Dollars in millions) Balance Aug. 31, 2015 $ — Reclass from long-term 96 Accretion expense 14 Payments (10 ) Effect of foreign currency translation adjustments 13 Balance Aug. 31, 2016 (1) $ 113 (1) Includes 350,000 mandatorily redeemable shares outstanding with a par value of 1,000 Brazilian reais (approximately $309 ) as of Aug. 31, 2016. The following table summarizes the change in fair value of the Level 3 long-term debt instruments for the year ended Aug. 31, 2016 . (Dollars in millions) Balance Aug. 31, 2015 (1) $ 96 Reclass to short-term (96 ) Balance Aug. 31, 2016 $ — (1) Includes 350,000 mandatorily redeemable shares outstanding with a par value of 1,000 Brazilian reais (approximately $274 ) as of Aug. 31, 2015. There were no significant measurements of liabilities to their implied fair value on a nonrecurring basis during fiscal years 2016 , 2015 and 2014 . Significant measurements during fiscal years 2016, 2015 and 2014 of assets to their implied fair value on a nonrecurring basis were as follows: Property, Plant and Equipment Net: In fiscal year 2016, property, plant and equipment within the Seeds and Genomics segment with a net book value of $67 million was written down to its implied fair value estimate of $26 million , resulting in an impairment charge of $41 million , with $16 million included in cost of goods sold and $25 million included in restructuring charges in the Statement of Consolidated Operations. The implied fair value calculations were performed using a discounted cash flow model (a Level 3 measurement). See Note 5 — Restructuring — for additional disclosures. In fiscal year 2016, property, plant and equipment within the Agricultural Productivity segment with a net book value of $2 million was written down to its implied fair value of less than $1 million , resulting in an impairment charge of $2 million , with $2 million included in restructuring charges in the Statement of Consolidated Operations. The implied fair value calculations were performed using a discounted cash flow model (a Level 3 measurement). See Note 5 — Restructuring — for additional disclosures. In fiscal year 2015, property, plant and equipment within the Seeds and Genomics segment with a net book value of $131 million was written down to its initial fair value estimate of $50 million , resulting in an impairment charge of $81 million , with $49 million included in cost of goods sold and $32 million included in restructuring charges in the Statement of Consolidated Operations. The initial fair value calculations were performed using a discounted cash flow model (a Level 3 measurement). See Note 5 — Restructuring — for additional disclosures. In fiscal year 2014, property, plant and equipment within the Seeds and Genomics segment with a net book value of $27 million was written down to its implied fair value of $4 million , resulting in an impairment charge of $23 million , with $11 million included in cost of goods sold, $8 million included in R&D expenses and $5 million included in selling, general and administrative expenses in the Statement of Consolidated Operations. The implied fair value calculations were performed using a discounted cash flow model (a Level 3 measurement). Other Intangible Assets, Net: In fiscal year 2016, other intangible assets within the Seeds and Genomics segment with a net book value of $19 million were written down to their implied fair value of less than $1 million , resulting in an impairment charge of $19 million , with $19 million included in restructuring charges in the Statement of Consolidated Operations. The implied fair value calculations were performed using a discounted cash flow model (a Level 3 measurement). See Note 5 — Restructuring — for additional disclosures. In fiscal year 2016, other intangible assets within the Agricultural Productivity segment with a net book value of $20 million were written down to their implied fair value of less than $1 million , resulting in an impairment charge of $20 million , with $20 million included in restructuring charges in the Statement of Consolidated Operations. The implied fair value calculations were performed using a discounted cash flow model (a Level 3 measurement). See Note 5 — Restructuring — for additional disclosures. In fiscal year 2015, other intangible assets within the Seeds and Genomics segment with a net book value of $71 million were written down to their implied fair value of less than $1 million , resulting in an impairment charge of $71 million , with $71 million included in restructuring charges in the Statement of Consolidated Operations. The implied fair value calculations were performed using a discounted cash flow model (a Level 3 measurement). See Note 5 — Restructuring — for additional disclosures. In fiscal year 2014, other intangible assets within the Seeds and Genomics segment with a net book value of $40 million were written down to their implied fair value of $20 million , resulting in an impairment charge of $20 million , with $19 million included in cost of goods sold and $1 million included in R&D expenses in the Statement of Consolidated Operations. The implied fair value calculations were performed using a discounted cash flow model (a Level 3 measurement). Other Assets: In fiscal year 2016, a long-term investment within the Seeds and Genomics segment with a net book value of $7 million was written down to its implied fair value estimate of $5 million , resulting in an impairment charge of $2 million , with $2 million included in restructuring charges in the Statement of Consolidated Operations. The implied fair value calculations were performed using a discounted cash flow model (a Level 3 measurement). See Note 5 — Restructuring — for additional disclosures. 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 Aug. 31, 2016 , and Aug. 31, 2015 . Management is ultimately responsible for all fair values presented in the company’s consolidated financial statements. The company performs analysis and review of the information and prices received from third parties to ensure that the prices represent a reasonable estimate of fair value. This process involves quantitative and qualitative analysis. As a result of the analysis, if the company determines there is a more appropriate fair value based upon the available market data, the price received from the third party is adjusted accordingly. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Aug. 31, 2016 | |
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 generally 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 11 months for foreign currency hedges and 28 months for commodity hedges. During the next 12 months, a pretax net loss of approximately $43 million is expected to be reclassified from accumulated other comprehensive loss into earnings. A pretax loss of less than $1 million and a pretax loss of $2 million during fiscal years 2016 and 2015, respectively, was reclassified into cost of goods sold and $2 million during fiscal year 2014 was reclassified into earnings in the Statements of Consolidated Operations as a result of the discontinuance of cash flow hedges because it was probable that the original forecasted transaction would not occur by the end of the originally specified time period. Fair Value Hedges The company uses commodity futures, forwards and options contracts as fair value hedges to manage the value of its soybean inventory and other assets. For derivative instruments that are designated and qualify as fair value hedges, both the gain or loss on the derivative and the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings. No fair value hedges were discontinued during fiscal years 2016 , 2015 or 2014 . Net Investment Hedges To protect the value of its investment from adverse changes in exchange rates, the company may, from time to time, hedge a portion of its net investment in one or more of its foreign subsidiaries. Gains or losses on derivative instruments that are designated as a net investment hedge are included in accumulated foreign currency translation adjustment and reclassified into earnings in the period during which the hedged net investment is sold or liquidated. Derivatives Not Designated as Hedging Instruments The company uses foreign currency contracts to hedge the effects of fluctuations in exchange rates on foreign currency denominated third-party and intercompany receivables and payables. Both the gain or loss on the derivative and the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings. The company uses commodity option contracts to hedge anticipated cash payments to growers in the United States, Mexico and Brazil, which can fluctuate with changes in commodity prices. Because these option contracts do not meet the provisions specified by the Derivatives and Hedging topic of the ASC, they do not qualify for hedge accounting treatment. Accordingly, the gain or loss on these derivatives is recognized in current earnings. To reduce credit exposure in Latin America, Monsanto collects payments on certain customer accounts in grain. Such payments in grain are negotiated at or near the time Monsanto’s products are sold to the customers and are valued at the prevailing grain commodity prices. By entering into forward sales contracts related to grain, Monsanto mitigates the commodity price exposure from the time a contract is signed with a customer until the time a grain merchant collects the grain from the customer on Monsanto’s behalf. The forward sales contracts do not qualify for hedge accounting treatment under the Derivatives and Hedging topic of the ASC. Accordingly, the gain or loss on these derivatives is recognized in current earnings. Monsanto uses interest rate contracts to minimize the variability of forecasted cash flows arising from the company’s VIE in Brazil. The interest rate contracts do not qualify for hedge accounting treatment under the Derivatives and Hedging Topic of the ASC. Accordingly, the gain or loss on these derivatives is recognized in current earnings. Financial instruments are neither held nor issued by the company for trading purposes. The notional amounts of the company’s derivative instruments outstanding as of Aug. 31, 2016 , and Aug. 31, 2015 , are as follows: As of Aug. 31, (Dollars in millions) 2016 2015 Derivatives Designated as Hedges: Foreign exchange contracts $ 388 $ 456 Commodity contracts 484 591 Interest rate contracts 150 150 Total Derivatives Designated as Hedges $ 1,022 $ 1,197 Derivatives Not Designated as Hedges: Foreign exchange contracts $ 1,096 $ 1,926 Commodity contracts 223 163 Interest rate contracts 116 — Total Derivatives Not Designated as Hedges $ 1,435 $ 2,089 The net presentation of the company’s derivative instruments outstanding is as follows: As of Aug. 31, 2016 (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: Other current assets Derivatives designated as hedges: Commodity contracts (1) $ 9 $ (29 ) $ (20 ) $ 20 $ — Foreign exchange contracts 4 — 4 — 4 Derivatives not designated as hedges: Commodity contracts (1) 9 (6 ) 3 — 3 Foreign exchange contracts 6 — 6 — 6 Total other current assets 28 (35 ) (7 ) 20 13 $ 214 $ 227 Other assets Derivatives designated as hedges: Commodity contracts (1) — (4 ) (4 ) 4 — Total other assets — (4 ) (4 ) 4 — 489 489 Total Asset Derivatives $ 28 $ (39 ) $ (11 ) $ 24 $ 13 Liability Derivatives: Other current assets Derivatives designated as hedges: Commodity contracts (1) $ 29 $ (29 ) $ — $ — $ — Derivatives not designated as hedges: Commodity contracts (1) 6 (6 ) — — — Total other current assets 35 (35 ) — — — Other assets Derivatives designated as hedges: Commodity contracts (1) 4 (4 ) — — — Total other assets 4 (4 ) — — — Miscellaneous short-term accruals Derivatives designated as hedges: Commodity contracts 11 — 11 — 11 Foreign currency contracts 8 — 8 — 8 Interest rate contracts 41 — 41 — 41 Derivatives not designated as hedges: Foreign exchange contracts 7 — 7 — 7 Total miscellaneous short-term accruals 67 — 67 — 67 $ 937 $ 1,004 Other liabilities Derivatives designated as hedges: Commodity contracts 2 — 2 — 2 Total other liabilities 2 — 2 — 2 316 318 Total Liability Derivatives $ 108 $ (39 ) $ 69 $ — $ 69 (1) As allowed by the Derivatives and Hedging topic of the ASC, commodity derivative assets and liabilities have been offset by collateral subject to an enforceable master netting arrangement or similar arrangement. Therefore, these commodity contracts that are in an asset or liability position are included in asset accounts within the Statements of Consolidated Financial Position. As of Aug. 31, 2015 (in millions) Gross Amounts Recognized Gross Amounts Offset in the Statement of Consolidated Financial Position Net Amounts Included in the Statement of Consolidated Financial Position Collateral Pledged Net Amounts Reported in the Statement of Consolidated Financial Position Other Items Included in the Statement of Consolidated Financial Position Statement of Consolidated Financial Position Balance Asset Derivatives: Miscellaneous receivables Derivatives designated as hedges: Interest rate contracts $ 2 $ — $ 2 $ — $ 2 Total miscellaneous receivables 2 — 2 — 2 $ 801 $ 803 Other current assets Derivatives designated as hedges: Commodity contracts (1) — (29 ) (29 ) 29 — Foreign exchange contracts 25 — 25 — 25 Derivatives not designated as hedges: Commodity contracts 7 — 7 — 7 Foreign exchange contracts 14 — 14 — 14 Total other current assets 46 (29 ) 17 29 46 146 192 Other assets Derivatives designated as hedges: Commodity contracts (1) 1 (6 ) (5 ) 6 1 Foreign exchange contracts 1 — 1 — 1 Total other assets 2 (6 ) (4 ) 6 2 608 610 Total Asset Derivatives $ 50 $ (35 ) $ 15 $ 35 $ 50 Liability Derivatives: Other current assets Derivatives designated as hedges: Commodity contracts (1) $ 29 $ (29 ) $ — $ — $ — Total other current assets 29 (29 ) — — — Other assets Derivatives designated as hedges: Commodity contracts (1) 6 (6 ) — — — Total other assets 6 (6 ) — — — Miscellaneous short-term accruals Derivatives designated as hedges: Commodity contracts 27 — 27 — 27 Derivatives not designated as hedges: Commodity contracts 9 — 9 — 9 Foreign exchange contracts 11 — 11 — 11 Total miscellaneous short-term accruals 47 — 47 — 47 $ 744 $ 791 Other liabilities Derivatives designated as hedges: Commodity contracts 14 — 14 — 14 Total other liabilities 14 — 14 — 14 331 345 Total Liability Derivatives $ 96 $ (35 ) $ 61 $ — $ 61 (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 are as follows: Amount of Gain (Loss) Recognized in AOCL (1) (Effective Portion) Amount of Gain (Loss) Recognized in Income (2)(3) Year Ended Aug. 31, Year Ended Aug. 31, (Dollars in millions) 2016 2015 2014 2016 2015 2014 Income Statement Classification Derivatives Designated as Hedges: Fair value hedges: Commodity contracts (3) $ 7 $ — $ (1 ) Cost of goods sold Cash flow hedges: Foreign exchange contracts $ (17 ) $ 51 $ (4 ) 8 31 3 Net sales Foreign exchange contracts 3 26 1 21 9 (3 ) Cost of goods sold Commodity contracts (12 ) (92 ) (106 ) (113 ) (81 ) (14 ) Cost of goods sold Interest rate contracts (3) (42 ) (85 ) (2 ) (15 ) (13 ) (12 ) Interest expense Total Derivatives Designated as Hedges (68 ) (100 ) (111 ) (92 ) (54 ) (27 ) Derivatives Not Designated as Hedges: Foreign exchange contracts (4) (36 ) (73 ) (1 ) Other expense, net Commodity contracts 4 (3 ) 4 Net sales Commodity contracts 1 — 21 Cost of goods sold Total Derivatives Not Designated as Hedges (31 ) (76 ) 24 Total Derivatives $ (68 ) $ (100 ) $ (111 ) $ (123 ) $ (130 ) $ (3 ) (1) Accumulated Other Comprehensive Loss (“AOCL”) (2) For derivatives designated as cash flow hedges under the Derivatives and Hedging topic of the ASC, this represents the effective portion of the gain (loss) reclassified from AOCL into income during the period. (3) The gain or loss on derivatives designated as hedges from ineffectiveness included in current earnings is not significant during 2016 , 2015 or 2014 . No gains or losses were excluded from the assessment of hedge effectiveness during 2016 , 2015 or 2014 . (4) Gain or loss on foreign exchange contracts not designated as hedges was offset by a foreign currency transaction loss of $178 million , a gain of $42 million and a loss of $96 million during fiscal years 2016 , 2015 and 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 $63 million as of Aug. 31, 2016 , and $41 million as of Aug. 31, 2015 , 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 Aug. 31, 2016 , and Aug. 31, 2015 , 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, Latin America 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 7 — Customer Financing Programs . |
POSTRETIREMENT BENEFITS - PENSI
POSTRETIREMENT BENEFITS - PENSIONS | 12 Months Ended |
Aug. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
POSTRETIREMENT BENEFITS - PENSIONS | POSTRETIREMENT BENEFITS - PENSIONS Monsanto maintains noncontributory pension plans for the benefit of its U.S. employees. Effective Jul. 8, 2012, the U.S. pension plans were closed to new entrants; there were no significant changes to the U.S. pension plans for eligible employees hired prior to that date. Pension benefits are based on an employee’s years of service and compensation level. Funded pension plans in the United States and outside the United States were funded in accordance with the company’s long-range projections of the plans’ financial condition. These projections took into account benefits earned and expected to be earned, anticipated returns on pension plan assets, and income tax and other regulations. Components of Net Periodic Benefit Cost The information that follows relates to Monsanto’s pension plans. The components of pension cost for these plans were: Year Ended Aug. 31, 2016 Year Ended Aug. 31, 2015 Year Ended Aug. 31, 2014 (Dollars in millions) U.S. Outside the U.S. Total U.S. Outside the U.S. Total U.S. Outside the U.S. Total Service Cost for Benefits Earned during the Year $ 61 $ 12 $ 73 $ 64 $ 12 $ 76 $ 61 $ 12 $ 73 Interest Cost on Benefit Obligation 93 7 100 88 7 95 90 9 99 Assumed Return on Plan Assets (1) (150 ) (9 ) (159 ) (151 ) (8 ) (159 ) (135 ) (10 ) (145 ) Amortization of Unrecognized Net Loss 46 6 52 50 6 56 62 4 66 Curtailment and Settlement Charge — 2 2 — 2 2 — 3 3 Other Adjustments — 2 2 — — — — 1 1 Total Net Periodic Benefit Cost $ 50 $ 20 $ 70 $ 51 $ 19 $ 70 $ 78 $ 19 $ 97 (1) Generally the calculated value of assets reflects non-liability matching gains/(losses) over a 4 to 5 year period. The other changes in plan assets and benefit obligations recognized in accumulated other comprehensive loss for the year ended Aug. 31, 2016 , were: (Dollars in millions) U.S. Outside the U.S. Total Current Year Actuarial Loss $ 100 $ 11 $ 111 Recognition of Actuarial Loss (1)(2) (46 ) (8 ) (54 ) Total Recognized in Accumulated Other Comprehensive Loss $ 54 $ 3 $ 57 (1) The U.S. Plans ’ actuarial gains/(losses) are amortized over a 9 to 16 year period which represents the average future working lifetime for active participants. (2) Plans outside the U.S. generally amortize actuarial gains/(losses) over a 5 to 21 year period which represents the average future working lifetime for active participants. The following assumptions, calculated on a weighted-average basis, were used to determine pension costs for the principal plans in which Monsanto employees participated: Year Ended Aug. 31, 2016 Year Ended Aug. 31, 2015 Year Ended Aug. 31, 2014 U.S. Outside the U.S. U.S. Outside the U.S. U.S. Outside the U.S. Discount Rate 4.33 % 2.66 % 4.04 % 3.01 % 4.44 % 3.62 % Assumed Long-Term Rate of Return on Assets 7.50 % 5.60 % 7.50 % 6.20 % 7.50 % 6.12 % Annual Rate of Salary Increase (for plans that base benefits on final compensation level) 4.00 % 3.76 % 4.00 % 3.92 % 4.00 % 3.95 % Obligations and Funded Status Monsanto uses a measurement date of August 31 for its pension plans. The funded status of the pension plans as of Aug. 31, 2016 , and Aug. 31, 2015 , was as follows: U.S. Outside the U.S. Total Year Ended Aug. 31, Year Ended Aug. 31, Year Ended Aug. 31, (Dollars in millions) 2016 2015 2016 2015 2016 2015 Change in Benefit Obligation: Benefit obligation at beginning of period $ 2,190 $ 2,196 $ 250 $ 273 $ 2,440 $ 2,469 Service cost 61 64 12 12 73 76 Interest cost 93 88 7 7 100 95 Plan participants’ contributions — — 2 2 2 2 Actuarial loss 203 13 20 9 223 22 Benefits paid (137 ) (171 ) (13 ) (8 ) (150 ) (179 ) Plan Amendments — — (6 ) — (6 ) — Settlements / curtailments — — (12 ) (7 ) (12 ) (7 ) Currency gain — — (1 ) (38 ) (1 ) (38 ) Other 17 — 13 — 30 — Benefit Obligation at End of Period $ 2,427 $ 2,190 $ 272 $ 250 $ 2,699 $ 2,440 Change in Plan Assets: Fair value of plan assets at beginning of period $ 2,142 $ 2,298 $ 170 $ 190 $ 2,312 $ 2,488 Actual return on plan assets 253 11 8 9 261 20 Employer contributions (1) 66 4 12 15 78 19 Plan participants’ contributions — — 2 2 2 2 Settlements — — (8 ) (7 ) (8 ) (7 ) Benefits paid (1) (137 ) (171 ) (13 ) (8 ) (150 ) (179 ) Currency gain — — — (31 ) — (31 ) Other — — 11 — 11 — Plan Assets at End of Period $ 2,324 $ 2,142 $ 182 $ 170 $ 2,506 $ 2,312 Net Liability Recognized $ 103 $ 48 $ 91 $ 80 $ 194 $ 128 (1) Employer contributions and benefits paid include $13 million and $11 million paid from employer assets for unfunded plans in fiscal years 2016 and 2015, respectively. Weighted-average assumptions used to determine benefit obligations as of Aug. 31, 2016 , and Aug. 31, 2015 , were as follows: U.S. Outside the U.S. Year Ended Aug. 31, Year Ended Aug. 31, 2016 2015 2016 2015 Discount Rate 3.43% 4.33% 1.93% 2.66% Rate of Compensation Increase 4.00% 4.00% 3.60% 3.76% The U.S. accumulated benefit obligation (“ABO”) was $2.4 billion and $2.1 billion as of Aug. 31, 2016 , and Aug. 31, 2015 , respectively. The ABO for plans outside of the United States was $214 million and $192 million as of Aug. 31, 2016 , and Aug. 31, 2015 , respectively. The projected benefit obligation (“PBO”) and the fair value of the plan assets for pension plans with PBOs in excess of plan assets as of Aug. 31, 2016 , and Aug. 31, 2015 , were as follows: U.S. Outside the U.S. Total As of Aug. 31, As of Aug. 31, As of Aug. 31, (Dollars in millions) 2016 2015 2016 2015 2016 2015 PBO $ 2,426 $ 73 $ 250 $ 216 $ 2,676 $ 289 Fair Value of Plan Assets with PBOs in Excess of Plan Assets 2,324 — 158 135 2,482 135 The PBO, ABO and the fair value of the plan assets for pension plans with ABOs in excess of plan assets as of Aug. 31, 2016 , and Aug. 31, 2015 , were as follows: U.S. Outside the U.S. Total As of Aug. 31, As of Aug. 31, As of Aug. 31, (Dollars in millions) 2016 2015 2016 2015 2016 2015 PBO $ 96 $ 73 $ 130 $ 110 $ 226 $ 183 ABO 91 69 108 90 199 159 Fair Value of Plan Assets with ABOs in Excess of Plan Assets — — 46 34 46 34 As of Aug. 31, 2016 , and Aug. 31, 2015 , amounts recognized in the Statements of Consolidated Financial Position were included in the following financial position accounts: Net Amount Recognized U.S. Outside the U.S. Total As of Aug. 31, As of Aug. 31, As of Aug. 31, (Dollars in millions) 2016 2015 2016 2015 2016 2015 Other Assets $ — $ (26 ) $ (8 ) $ (8 ) $ (8 ) $ (34 ) Miscellaneous Short-Term Accruals 9 7 5 5 14 12 Postretirement Liabilities 94 67 94 83 188 150 Net Liability Recognized $ 103 $ 48 $ 91 $ 80 $ 194 $ 128 The following table provides a summary of the pretax components of the amount recognized in accumulated other comprehensive loss: U.S. Outside the U.S. Total As of Aug. 31, As of Aug. 31, As of Aug. 31, (Dollars in millions) 2016 2015 2016 2015 2016 2015 Net Prior Service Cost $ — $ — $ (6 ) $ (1 ) $ (6 ) $ (1 ) Net Loss 482 428 61 53 543 481 Total $ 482 $ 428 $ 55 $ 52 $ 537 $ 480 The estimated net loss for the defined benefit pension plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year is $52 million . Plan Assets U.S. Plan: The asset allocations for Monsanto’s U.S. pension plan as of Aug. 31, 2016 , and Aug. 31, 2015 , and the target allocation range for fiscal year 2017 , by asset category, are as follows. Target Allocation Range (1) Percentage of Plan Assets As of Aug. 31, Asset Category 2017 2016 2015 Public Equity Securities 44-54% 48.3 % 47.9 % Private Equity Investments 2-8% 4.5 % 4.8 % Debt Securities 34-48% 42.4 % 42.7 % Real Estate 2-8% 4.8 % 4.3 % Other 0-3% — % 0.3 % Total 100.0 % 100.0 % (1) The target allocation range may change as the funded status of the plan increases/decreases. The expected long-term rate of return on these plan assets was 7.5 percent in fiscal years 2016 , 2015 and 2014 . The expected long-term rate of return on plan assets is based on historical and projected rates of return for current and planned asset classes in the plan’s investment portfolio. Assumed projected rates of return for each asset class were selected after analyzing historical experience and future expectations of the returns and volatility of the various asset classes. The overall expected rate of return for the portfolio is based on the target asset allocation for each asset class and adjusted for historical and expected experience of active portfolio management results compared to benchmark returns and the effect of expenses paid from plan assets. The general principles guiding investment of U.S. pension plan assets are embodied in the Employee Retirement Income Security Act of 1974 (“ERISA”). These principles include discharging the company’s investment responsibilities for the exclusive benefit of plan participants and in accordance with the “prudent expert” standards and other ERISA rules and regulations. Investment objectives for the company’s U.S. pension plan assets are to optimize the long-term return on plan assets while maintaining an acceptable level of risk, to diversify assets among asset classes and investment styles and to maintain a long-term focus. The plan’s investment fiduciaries are responsible for selecting investment managers, commissioning periodic asset/liability studies, setting asset allocation targets and monitoring asset allocation and investment performance. The company’s pension investment professionals have discretion to manage assets within established asset allocation ranges approved by the plan fiduciaries. In February 2016, an asset/liability study was completed to determine the optimal strategic asset allocation to meet the plan’s projected long-term benefit obligations and desired funded status. The target asset allocation resulting from the asset/liability study is outlined in the previous table. Plans Outside the United States: The weighted-average asset allocation for Monsanto’s pension plans outside of the United States as of Aug. 31, 2016 , and Aug. 31, 2015 , and the weighted-average target allocation for fiscal year 2017 , by asset category, are as follows. Percentage of Plan Assets Target Allocation (1) As of Aug. 31, Asset Category 2017 2016 2015 Equity Securities 37.2 % 30.9 % 32.0 % Debt Securities 44.6 % 49.9 % 49.3 % Other 18.2 % 19.2 % 18.7 % Total 100.0 % 100.0 % 100.0 % (1) Monsanto’s plans outside the United States have a wide range of target allocations, and therefore the 2017 target allocations shown above reflect a weighted-average calculation of the target allocations of each of the plans. The weighted-average expected long-term rate of return on the plans’ assets was 5.6 percent in fiscal year 2016 , 6.2 percent in fiscal year 2015 and 6.1 percent in fiscal year 2014 . Determination of the expected long-term rate of return for plans outside the United States is consistent with the U.S. methodology. Fair Value Measurements U.S. Plan: The fair values of our U.S. defined benefit pension plan investments as of Aug. 31, 2016 , and Aug. 31, 2015 , by asset category, are as follows: Fair Value Measurements at Aug. 31, 2016 (Dollars in millions) Level 1 Level 2 Level 3 Cash Collateral Offset (1) Balance as of Aug. 31, 2016 Investments at Fair Value: Short Term Investments $ 31 $ 41 $ — $ — $ 72 Debt Securities: U.S. Government Debt — 296 — — 296 U.S. State & Municipal Debt — 19 — — 19 Foreign Government Debt — 9 — — 9 U.S. Corporate Debt — 386 — — 386 Foreign Corporate Debt — 65 — — 65 U.S. Term Bank Loans — 1 — — 1 Common and Preferred Stock: Domestic Small-Capitalization 15 — — — 15 Domestic Large-Capitalization 311 — — — 311 International Developed Markets 167 — — — 167 International Emerging Markets 39 1 — — 40 Private Equity Investments — — 104 — 104 Real Estate Investments — — 112 — 112 Futures 3 — — (3 ) — Common and Preferred Stock Sold Short — (56 ) — 60 4 Total Assets in the Fair Value Hierarchy $ 566 $ 762 $ 216 $ 57 $ 1,601 Collective Investment Funds Measured at Net Asset Value as a Practical Expedient 717 Collateral Held Under Securities Lending Agreement Measured at Net Asset Value as a Practical Expedient 166 Total Investments at Fair Value $ 2,484 (1) Futures derivative assets and common and preferred stock sold short have been offset by cash collateral held by the counterparty. Fair Value Measurements at Aug. 31, 2015 (Dollars in millions) Level 1 Level 2 Level 3 Cash Collateral Offset (1) Balance as of Aug. 31, 2015 Investments at Fair Value: Short Term Investments $ 19 — $ — $ — $ 19 Debt Securities: U.S. Government Debt — 265 — — 265 U.S. State & Municipal Debt — 17 — — 17 Foreign Government Debt — 10 — — 10 U.S. Corporate Debt — 362 — — 362 Foreign Corporate Debt — 70 — — 70 U.S. Term Bank Loans — 1 — — 1 Common and Preferred Stock: Domestic Small-Capitalization 30 — — — 30 Domestic Large-Capitalization 266 — — — 266 International Developed Markets 154 — — — 154 International Emerging Markets 30 1 — — 31 Private Equity Investments — — 103 — 103 Partnership/Joint Venture Interests — — 32 — 32 Real Estate Investments — — 93 — 93 Futures 4 — — (4 ) — Common and Preferred Stock Sold Short — (52 ) — 53 1 Total Assets in the Fair Value Hierarchy $ 503 $ 674 $ 228 $ 49 $ 1,454 Collective Investment Funds Measured at Net Asset Value as a Practical Expedient 679 Collateral Held Under Securities Lending Agreement Measured at Net Asset Value as a Practical Expedient 251 Total Investments at Fair Value $ 2,384 (1) Futures derivative assets and common and preferred stock sold short have been offset by cash collateral held by the counterparty. The following table summarizes the changes in fair value of the Level 3 investments as of Aug. 31, 2015 , and Aug. 31, 2016 . (Dollars in millions) Private Equity Investments Partnership Interests Real Estate Investments Mortgage-Backed Securities Fund Investments Total Balance Aug. 31, 2014 $ 87 $ 32 $ 94 $ 8 $ 221 Purchases 26 — 6 — 32 Sales (23 ) — (20 ) (8 ) (51 ) Realized/unrealized gains 13 — 13 — 26 Balance Aug. 31, 2015 $ 103 $ 32 $ 93 $ — $ 228 Net Unrealized Gains Still Held Included in Earnings (1) $ 12 $ 1 $ 9 $ — $ 22 (Dollars in millions) Private Equity Investments Partnership Interests Real Estate Investments Mortgage-Backed Securities Fund Investments Total Balance Aug. 31, 2015 $ 103 $ 32 $ 93 $ — $ 228 Purchases 21 — 16 — 37 Sales (22 ) (32 ) (6 ) — (60 ) Realized/unrealized gains 2 — 9 — 11 Balance Aug. 31, 2016 $ 104 $ — $ 112 $ — $ 216 Net Unrealized Gains Still Held Included in Earnings (1) $ (7 ) $ (32 ) $ 10 $ — $ (29 ) (1) Represents the amount of total gains for the period attributable to change in unrealized gains (losses) relating to assets and liabilities classified as Level 3 that are still held as of Aug. 31, 2016 , and Aug. 31, 2015 . The following table reconciles the investments at fair value to the plan assets as of Aug. 31, 2016 . (Dollars in millions) Total Investments at Fair Value $ 2,484 Liability to return collateral held under securities lending agreement (166 ) Non-interest bearing cash 3 Accrued income / (expense) 7 Other Liabilities and Receivables (4 ) Plan Assets at the End of the Period $ 2,324 In managing the plan assets, Monsanto reviews and manages risk associated with funded status risk, market risk, liquidity risk and operational risk. Asset allocation determined in light of the plans’ liability characteristics and asset class diversification is central to the company’s risk management approach and is integral to the overall investment strategy. Further mitigation of asset class risk is achieved by investment style, investment strategy and investment management firm diversification. Investment guidelines are included in all investment management agreements with investment management firms managing publicly traded equities and fixed income accounts for the plan. Plans Outside the United States: The fair values of our defined benefit pension plan investments outside of the United States as of Aug. 31, 2016 , and Aug. 31, 2015 , by asset category, are as follows: Fair Value Measurements at Aug. 31, 2016 (Dollars in millions) Level 1 Level 2 Level 3 Balance as of Aug. 31, 2016 Short Term Investments $ 1 $ — $ — $ 1 Debt Securities — Government and Corporate Debt — 79 — 79 Common and Preferred Stock 45 — — 45 Insurance-Backed Securities — — 42 42 Total Assets in the Fair Value Hierarchy $ 46 $ 79 $ 42 $ 167 Collective Investment Funds Measured at Net Asset Value as a Practical Expedient 15 Total Investments at Fair Value $ 182 Fair Value Measurements at Aug. 31, 2015 (Dollars in millions) Level 1 Level 2 Level 3 Balance as of Aug. 31, 2015 Short Term Investments $ 2 $ — $ — $ 2 Debt Securities — Government and Corporate Debt — 9 — 9 Common and Preferred Stock 42 — — 42 Insurance-Backed Securities — — 31 31 Interest in Pooled Funds: Common and preferred stock funds — 5 — 5 Government debt funds — 8 — 8 Corporate debt funds — 59 — 59 Total Assets in the Fair Value Hierarchy $ 44 $ 81 $ 31 $ 156 Collective Investment Funds Measured at Net Asset Value as a Practical Expedient 14 Total Investments at Fair Value $ 170 The following table summarizes the changes in fair value of the Level 3 investments as of Aug. 31, 2015 , and Aug. 31, 2016 . (Dollars in millions) Insurance-Backed Securities Balance Aug. 31, 2014 $ 25 Purchases 6 Balance Aug. 31, 2015 $ 31 Purchases 5 Settlements $ (6 ) Net transfers into Level 3 $ 12 Balance Aug. 31, 2016 $ 42 In managing the plan assets, risk associated with funded status risk, market risk, liquidity risk and operational risk is considered. The design of a plan’s overall investment strategy will take into consideration one or more of the following elements: a plan’s liability characteristics, diversification across asset classes, diversification within asset classes and investment management firm diversification. Investment policies consistent with the plan’s overall investment strategy are established. Valuation Methodology for Plan Assets For assets that are measured using quoted prices in active markets, the total fair value is the published market price per unit multiplied by the number of units held without consideration of transaction costs, which have been determined to be immaterial. Assets that are measured using significant other observable inputs are primarily valued by reference to quoted prices of markets that are not active. The following methods and assumptions were used to estimate the fair value of each class of financial instrument: Short Term Investments: The carrying value of cash represents fair value as it consists of actual currency (all in U.S. dollars) and is classified as Level 1. A portion are short-term collective investment funds, and because these commingled vehicles lack any formal listing or associated price quotes, they are classified as Level 2. Debt securities: Debt securities consist of U.S. and foreign corporate credit, U.S. and foreign government issues (including related agency debentures and mortgages), U.S. state and municipal securities, and U.S. term bank loans. U.S. treasury and U.S. government agency bonds, as well as foreign government issues, are generally priced by institutional bids, which reflect estimated values based on underlying model frameworks at various dealers and vendors. While some corporate issues are formally listed on exchanges, dealers exchange bid and ask offers to arrive at most executed transaction prices. Term bank loans are priced in a similar fashion to corporate debt securities. All foreign government and foreign corporate debt securities are denominated in U.S. dollars. All individual debt securities included in the Plan are classified as Level 2. Common and preferred stock: The Plans’ common and preferred stock consists of investments in listed U.S. and international company stock. U.S. stock is further sub-divided into small-capitalization (defined as companies with market capitalization less than $2 billion ), and large capitalization (defined as companies with market capitalization greater than or equal to $2 billion ). International stock is further divided into developed markets and emerging markets. All international market type classifications are consistent with the Plan’s chosen international stock performance benchmark index, the MSCI All-Country World Index ex-U.S. (MSCI ACWI ex- U.S.). Most stock investments are valued using quoted prices from the various public markets. Most equity securities trade on formal exchanges, both domestic and foreign (e.g., NYSE, NASDAQ, LSE) and can be accurately described as active markets. The observable valuation inputs are unadjusted quoted prices that represent active market trades and are classified as Level 1. Some common and preferred stock holdings are not listed on established exchanges or actively traded inputs to determine their values are obtainable from public sources and are thus classified as Level 2. Private equity investments: The Plan invests in private equity, which as an asset class is generally characterized as requiring long-term commitments where liquidity is typically limited. Therefore, private equity does not have an actively traded market with readily observable prices. Most of the Plan’s private equity investments are limited partnerships structured as fund-of-funds, which also meet the criteria of commingled funds. These fund-of-funds investments are diversified globally and across typical private equity strategies including: buyouts, co-investments, secondary offerings, venture capital and special situations (e.g., distressed assets). Funds-of-funds represent a collection of underlying limited partnership funds each managed by a different general partner. Each general partner of the underlying limited partnership fund in turn selects and manages a basket of portfolio companies. As a result, each of the Plan’s fund-of-funds is essentially a fund of dozens of underlying limited partnership funds and hundreds of underlying company investments. Valuations depend on a variety of proprietary model methodologies, some of which may be derived from publicly available sources. However, there are also material inputs that are not readily observable, and that require subjective assessments. Private equity holdings represent illiquid investments structured as limited partnerships, and redemption requests are not permitted. Disposition of partnership interests can only be affected through the sale of the pension trust’s pro-rata ownership stake in the secondary markets, which may require approval of the funds’ general partners. All private equity investments are classified as Level 3. Partnership interests : These investments include interests in two limited partnership funds which are considered absolute return funds in which the manager takes long and short positions to generate returns. One fund involves high-yield corporate bonds, the other convertible corporate bonds and the underlying stock into which such bonds may be converted. While most individual securities in these strategies would fall under Level 1 or Level 2 if held individually, the lack of available quotes and the unique structure of the funds cause these to be classified as Level 3. Audited financial statements for both limited partnership funds are produced on an annual basis. Real estate investments : The Plan invests primarily in U.S. real estate through indirect ownership entities, which are structured as limited partnerships or private real estate investment trusts (“REITs”). Real estate investments are generally illiquid long-term assets valued in large part using inputs not readily observable in the public markets. Each fund in which the Plan invests typically manages a geographically diversified portfolio of U.S. commercial properties within the office, residential, industrial and retail property sectors. There are no formal listed markets for either the funds’ underlying commercial properties, or for shares in any given fund (if applicable). Real estate fund holdings are appraised and valued on an ongoing basis. The trustee obtains prices either from a property management appraisal firm or investment managers’ account statement. The underlying real estate holdings not only represent illiquid investments, but explicit redemptions are not permitted. Disposition of partnership interest can only be affected through the sale of the pension trust’s pro-rata ownership stake in the secondary markets, which may require approval of the funds’ general partners. For investments structured as private REITs, redemption requests for units held are at the discretion of fund managers. All real estate investments are classified as Level 3. Collective investment funds: In certain instances the Plan invests in pooled or commingled funds in order to gain diversification and efficiency. Although rare, there could be instances in which liquidity is suspended or in which purchases or sales occur at a price different from the net asset value (“NAV”). The Common and Preferred Stock Funds used are predominantly commingled index funds replicating well-known stock market indexes. Each of the Common and Preferred Stock funds are comprised of common and preferred stock that trade on a regular basis in active markets. The Corporate and Government Debt Funds is comprised of fixed income assets. Derivatives: The U.S. plan is permitted to use financial derivative instruments to hedge certain risks and for investment purposes. The plan enters into futures contracts in the normal course of its investing activities to manage market risk associated with the plan’s equity and fixed income investments and to achieve overall investment portfolio objectives. The credit risk associated with these contracts is minimal as they are traded on organized exchanges and settled daily. Exchange-traded equity index and interest rate futures are measured at fair value using quoted market prices making them qualify as Level 1 investments. The notional value of futures derivatives classified as Level 1 was $121 million and $161 million as of Aug. 31, 2016 , and Aug. 31, 2015 , respectively. The U.S. plan also holds listed common and preferred stock short sale positions, which involves a counter-party arrangement with a prime broker. The existence of the prime broker counter-party relationship introduces the possibility that short sale market values may need to be adjusted to reflect any counter-party risk; however, no such adjustment was required as of Aug. 31, 2016 , or Aug. 31, 2015 . Therefore, the short positions have been classified as Level 2, and their notional value was $56 million and $57 million , as of Aug. 31, 2016 , and Aug. 31, 2015 , respectively. Insurance-backed securities : Insurance-backed securities are contracts held with an insurance company. The Level 3 fair value of the investments is determined based upon the value of the underlying investments as determined by the insurance company. Collateral held under securities lending agreement : The U.S. Plan participates in a securities lending program through Northern Trust. Securities loaned are fully collateralized by cash and U.S. government securities. Northern Trust pools all collateral received and invests any cash in an actively managed commingled fund, the underlying assets of which include short-term fixed income securities such as commercial paper, U.S. Treasury Bills and various forms of asset-backed securities. U.S. Plan: The following tables summarize unfunded commitments and redemption features for investments which fair value is measured using the net asset value per share practical expedient and Level 3 assets as of Aug. 31, 2016, and 2015 respectively. Unfunded Commitments and Redemption Features at Aug. 31, 2016 (Dollars in millions) Reported Value Unfunded Commitments Redemption Frequency (if currently eligible) Redemption Notice Period Collective Investment Funds Measured at Net Asset Value as a Practical Expedient $ 717 N/A Daily Daily Collateral Held Under Securities Lending Agreement Measured at Net Asset Value as a Practical Expedient $ 166 N/A Daily Daily Private Equity Investments $ 104 $ 53 None N/A Real Estate Investments $ 112 $ 34 None, 1st bus. day of qtr, at qtr-end N/A, 45 Days Unfunded Commitments and Redemption Features at Aug. 31, 2015 (Dollars in Millions) Reported Value Unfunded Commitments Redemption Frequency (if currently eligible) Redemption Notice Period Collective Investment Funds Measured at Net Asset Value as a Practical Expedient $ 679 N/A Daily Daily Collateral Held Under Securities Lending Agreement Measured at Net Asset Value as a Practical Expedient $ 251 N/A Daily Daily Private Equity Investments $ 103 $ 53 None N/A Partnerships/Joint Venture Interests $ 32 $ — At qtr-end 30 Days Real Estate Investments $ 93 $ 15 None, 1st bus. day of qtr, at qtr-end N/A, 45 Days Expected Cash Flows The expected employer contributions and benefit payments are shown in the following table for the pension plans: (Dollars in millions) U.S. Outside the U.S. Employer Contributions 2017 (funded Plans) $ 60 $ 6 Benefits Paid Directly by Employer 2017 (unfunded Plans) 9 4 Benefit Payments (1) 2017 195 26 2018 182 13 2019 181 15 2020 180 14 2021 179 16 2022-2026 840 74 (1) Expected benefit payments include benefits paid directly by employer for unfunded plans. The company may contribute additional amounts to the plans depending on the level of future contributions required. |
POSTRETIREMENT BENEFITS - HEALT
POSTRETIREMENT BENEFITS - HEALTH CARE AND OTHER POSTEMPLOYMENT BENEFITS | 12 Months Ended |
Aug. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
POSTRETIREMENT BENEFITS - HEALTH CARE AND OTHER POSTEMPLOYEMENT BENEFITS | POSTRETIREMENT BENEFITS — HEALTH CARE AND OTHER POSTEMPLOYMENT BENEFITS Monsanto-Sponsored Plans Substantially all regular full-time U.S. employees hired prior to May 1, 2002, and certain employees in other countries become eligible for company-subsidized postretirement health care benefits if they reach retirement age while employed by Monsanto and have the requisite service history. Employees who retired from Monsanto prior to Jan. 1, 2003, were eligible for retiree life insurance benefits. These postretirement benefits are unfunded and are generally based on the employees’ years of service or compensation levels, or both. The costs of postretirement benefits are accrued by the date the employees become eligible for the benefits. The following information pertains to the postretirement benefit plans in which Monsanto employees and certain former employees of Pharmacia allocated to Monsanto participated, principally health care plans and life insurance plans. The cost components of these plans were: Year Ended Aug. 31, (Dollars in millions) 2016 2015 2014 Service Cost for Benefits Earned During the Period $ 7 $ 7 $ 7 Interest Cost on Benefit Obligation 6 6 7 Amortization of Prior Service Credit — (1 ) (1 ) Amortization of Actuarial Gain (4 ) (4 ) (13 ) Total Net Periodic Benefit Cost $ 9 $ 8 $ — The other changes in plan assets and benefit obligations recognized in accumulated other comprehensive loss for the years ended Aug. 31, 2016 , and Aug. 31, 2015 , were: Year Ended Aug. 31, (Dollars in millions) 2016 2015 Actuarial Loss $ 27 $ 2 Amortization of Prior Service Credit (1) — 1 Amortization of Actuarial Gain (1) 4 4 Total Loss Recognized in Accumulated Other Comprehensive Loss $ 31 $ 7 (1) For other postretirement benefits the actuarial gains/(losses) and prior service credit are amortized over a seven to 14 year period which represents the average future working lifetime for active participants. The following assumptions, calculated on a weighted-average basis, were used to determine the postretirement costs for the U.S. plans in which Monsanto employees participated: Year Ended Aug. 31, 2016 2015 2014 Discount Rate Postretirement 3.85% 3.60% 3.95% Discount Rate Postemployment 2.30% 2.40% 2.55% Initial Trend Rate for Health Care Costs 5.50% 6.00% 6.50% Ultimate Trend Rate for Health Care Costs 5.00% 5.00% 5.00% A 5.5 percent annual rate of increase in the per capita cost of covered health care benefits was assumed for fiscal year 2016 . This assumption is consistent with the plans’ recent experience and expectations of future growth. It is assumed that the rate will decrease gradually to 5.0 percent for fiscal year 2017 and remain at that level thereafter. Assumed health care cost trend rates have an effect on the amounts reported for the health care plans. A one percentage-point change in assumed health care cost trend rates would have the following effects: (Dollars in millions) 1 Percentage-Point Increase 1 Percentage-Point Decrease Effect on Total of Service and Interest Cost $1 $(1) Effect on Postretirement Benefit Obligation $4 $(4) Monsanto uses a measurement date of August 31 for its other postretirement benefit plans. The status of the postretirement health care, life insurance and employee disability benefit plans in which Monsanto employees participated was as follows for the periods indicated: Year Ended Aug. 31, (Dollars in millions) 2016 2015 Change in Benefit Obligation: Benefit obligation at beginning of period $ 176 $ 189 Service cost 7 7 Interest cost 6 6 Actuarial loss 27 2 Plan participant contributions 5 5 Medicare Part D subsidy receipts — 1 Benefits paid (32 ) (32 ) Currency impact — (2 ) Benefit Obligation at End of Period $ 189 $ 176 Weighted-average assumptions used to determine benefit obligations for the U.S. plans as of Aug. 31, 2016 , and Aug. 31, 2015 , were as follows: Year Ended Aug. 31, 2016 2015 Discount Rate Postretirement 3.00% 3.85% Discount Rate Postemployment 1.75% 2.30% Initial Trend Rate for Health Care Costs (1) 7.50% 5.50% Ultimate Trend Rate for Health Care Costs 4.50% 5.00% (1) As of Aug. 31, 2016 , this rate is assumed to decrease to 4.5 percent for 2023 and remain at that level thereafter. As of Aug. 31, 2016 , and Aug. 31, 2015 , amounts recognized in the Statements of Consolidated Financial Position were as follows: As of Aug. 31, (Dollars in millions) 2016 2015 Miscellaneous Short-Term Accruals $ 27 $ 22 Postretirement Liabilities 162 154 Total Liability Recognized $ 189 $ 176 The following table provides a summary of the pretax components of the amount recognized in accumulated other comprehensive loss during the period. Year Ended Aug. 31, (Dollars in millions) 2016 2015 Actuarial Loss/(Gain) $ 14 $ (17 ) Prior Service Credit — — Total Income Recognized in Accumulated Other Comprehensive Loss/(Gain) $ 14 $ (17 ) The estimated net loss and prior service credit for the defined benefit postretirement plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year are $5 million . Expected Cash Flows Information about the expected cash flows for the other postretirement benefit plans follows: (Dollars in millions) Total Benefits Paid Directly by Employer 2017 $ 27 Benefit Payments (1)(2) 2017 27 2018 24 2019 21 2020 20 2021 19 2022-2026 74 (1) Benefit payments are net of expected federal subsidy receipts related to prescription drug benefits granted under the Medicare Prescription Drug Improvement and Modernization Act of 2003, which are estimated to be less than $1 million annually. (2) Expected benefit payments include benefits paid directly by employer for unfunded plans. Other U.S. Sponsored Plans Other U.S. plans are offered to certain eligible employees and are paid out of corporate assets. There is an accrual of $22 million and $32 million as of Aug. 31, 2016 , and Aug. 31, 2015 , respectively, included in postretirement liabilities on the Statements of Consolidated Financial Position for anticipated payments to employees who have retired or terminated their employment. There is an accrual of $65 million and $71 million as of Aug. 31, 2016 , and Aug. 31, 2015 , respectively, included in other liabilities on the Statements of Consolidated Financial Position for anticipated payments to active employees upon their retirement or termination of employment. |
EMPLOYEE SAVINGS PLANS
EMPLOYEE SAVINGS PLANS | 12 Months Ended |
Aug. 31, 2016 | |
EMPLOYEE SAVINGS PLANS [Abstract] | |
EMPLOYEE SAVINGS PLANS | EMPLOYEE SAVINGS PLANS Monsanto-Sponsored Plans The U.S. tax-qualified Monsanto Savings and Investment Plan (“Monsanto SIP”) was established in June 2001 as a successor to a portion of the Pharmacia Corporation Savings and Investment Plan. The Monsanto SIP is a defined contribution profit-sharing plan with an individual account for each participant. Employees who are 18 years of age or older are generally eligible to participate in the plan. The Monsanto SIP provides for voluntary contributions, generally ranging from one to 25 percent of an employee’s eligible pay. Employee contributions are matched 80 percent by the company, up to a maximum of eight of eligible pay. In 2016, 2015 and 2014, the company recognized expense of $61 million , $59 million and $60 million , respectively, for matching contributions. Participants hired after July 8, 2012, the date the U.S. pension plan closed, may also be eligible for an age-based, company core non-elective contribution. In 2016, 2015 and 2014, the company recognized expense of $8 million , $6 million and $3 million , respectively, for non-elective contributions. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Aug. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION PLANS | STOCK-BASED COMPENSATION PLANS The table below provides the stock-based compensation expense recognized for the comparative three years. Stock-based compensation expense recognized during the period is based on the value of the portion of share-based payment awards that are ultimately expected to vest. The Compensation – Stock Compensation topic of the ASC requires that excess tax benefits be reported as a financing cash inflow rather than as a reduction of taxes paid, which is included within operating cash flows. Monsanto’s income taxes payable has been reduced by the tax benefits from stock-based compensation primarily related to employee stock option exercises and restricted stock unit award vestings. The excess tax benefits were recorded as an increase to additional paid-in capital. The following table shows the components of stock-based compensation in the Statements of Consolidated Operations and Statements of Consolidated Cash Flows. Year Ended Aug. 31, (Dollars in millions, except per share amounts) 2016 2015 2014 Cost of Goods Sold $ 14 $ 8 $ 8 Selling, General and Administrative Expenses 70 80 82 Research and Development Expenses 28 31 31 Restructuring Charges (10 ) — — Total Stock-Based Compensation Expense Included in Operating Charges 102 119 121 Loss from Continuing Operations Before Income Taxes (102 ) (119 ) (121 ) Income Tax Benefit 38 38 40 Net Loss $ (64 ) $ (81 ) $ (81 ) Basic Loss per Share $ (0.14 ) $ (0.17 ) $ (0.16 ) Diluted Loss per Share $ (0.14 ) $ (0.17 ) $ (0.15 ) Excess Tax Benefits $ 16 $ 44 $ 72 Plan Descriptions : Share-based awards are designed to reward employees for their long-term contributions to the company and to provide incentives for them to remain with the company. Monsanto issues stock options, restricted stock, restricted stock units and deferred stock to key officers, non-employee directors and employees of Monsanto. On Jan. 24, 2012, Monsanto shareowners approved a total of 33.6 million shares to be available for grants of awards under the Monsanto Company 2005 Long-Term Incentive Plan as Amended and Restated as of Jan. 24, 2012, (“Amended 2005 LTIP”) after Aug. 31, 2011, (including for this purpose awards made after Aug. 31, 2011, under our prior equity plans) under which the company grants awards. This included 25.0 million new shares in addition to the 8.6 million shares remaining available for future grant as of Aug. 31, 2011. The delivery of shares pursuant to restricted stock, restricted stock units and deferred stock awards will reduce the remaining available shares by 2.7 shares per share delivered. Upon shareowner approval of the Amended 2005 LTIP, no further awards may be granted under our prior equity plans, although awards granted under such plans prior to the commencement of the Amended 2005 LTIP will continue to remain outstanding under their terms. As of Aug. 31, 2016, 19.1 million shares were available for grant under the Amended 2005 LTIP. The plans provide that the term of any option granted may not exceed ten years and that each option may be exercised for such period as may be specified in the terms and conditions of the grant, as approved by the People and Compensation Committee of the Board of Directors. Generally, the options vest over three years, with one-third of the total award vesting each year. Grants of restricted stock or restricted stock units generally vest at the end of a three to four year service period as specified in the terms and conditions of the grant, as approved by the People and Compensation Committee of the Board of Directors. Upon purchase of The Climate Corporation, Monsanto assumed The Climate Corporation 2006 Stock Plan as Amended on Oct. 30, 2013, (“Amended Climate Plan”). This included 2.0 million shares available for grant as of Nov. 1, 2013. The plan provides that the term of any option granted may not exceed ten years and that each option may be exercised for such period as may be specified in the terms and conditions of the grant. Generally, options vest monthly over a period of up to four years. The Climate Corporation had outstanding unvested options at the acquisition date that were assumed by Monsanto. The assumed options were converted to Monsanto options at the option ratio of 0.11 Monsanto options for each option of The Climate Corporation. Grants of restricted stock units generally vest quarterly over a period of up to four years. The Climate Corporation had outstanding restricted stock units at the acquisition date that were assumed by Monsanto. The assumed restricted stock units were converted to Monsanto restricted stock units at the acquisition date using the aforementioned conversion ratio. As of Aug. 31, 2016, 1.0 million shares were available for grant under the Amended Climate Plan. Under all plans discussed above, restricted stock and restricted stock units represent the right to receive a number of shares of stock dependent upon vesting requirements. Vesting is subject to the terms and conditions of the grant, which generally require the employees’ continued employment during the designated service period and may also be subject to Monsanto’s attainment of specified performance criteria during the designated performance period. Shares related to restricted stock and restricted stock units are released to employees upon satisfaction of all vesting requirements. Compensation expense for stock options, restricted stock and restricted stock units is measured at fair value on the date of grant, net of estimated forfeitures, and recognized over the vesting period of the award. Monsanto also issues share-based awards under the Monsanto Non-Employee Director Equity Incentive Compensation Plan (“Director Plan”) for directors who are not employees of Monsanto or its affiliates. Under the Director Plan, half of the annual retainer for each non-employee director is paid in the form of deferred stock — shares of common stock to be delivered at a specified future time. The remainder is payable, at the election of each director, in the form of restricted stock, deferred stock, current cash and/or deferred cash. The Director Plan also provides that a non-employee director will receive a one-time restricted stock grant upon becoming a member of Monsanto’s board of directors which is equivalent to the annual retainer divided by the closing stock price on the service commencement date. The restricted stock grant will vest on the third anniversary of the grant date. Awards of deferred stock and restricted stock under the Director Plan are granted under the Amended 2005 LTIP as provided for in the Director Plan. The grant date fair value of awards outstanding under the Director Plan was $16 million as of Aug. 31, 2016. Compensation expense for most awards under the Director Plan is measured at fair value at the date of grant and recognized over the vesting period of the award. There was $10 million , $0 and less than $1 million in fiscal years 2016, 2015 and 2014, respectively, of share-based liabilities paid under the Director Plan. Additionally, 234,587 shares of directors’ deferred stock related to grants and dividend equivalents were vested and outstanding at Aug. 31, 2016. A summary of the status of Monsanto’s stock options for the periods from Sept. 1, 2013, through August 31, 2016, follows: Options Outstanding Weighted-Average Exercise Price Balance Outstanding Sept. 1, 2013 15,863,887 $ 65.59 Granted 2,302,786 84.97 Exercised (4,537,028 ) 54.72 Forfeited (192,010 ) 90.06 Balance Outstanding Aug. 31, 2014 13,437,635 72.23 Granted 1,730,040 112.94 Exercised (2,439,135 ) 56.47 Forfeited (241,786 ) 75.56 Balance Outstanding Aug. 31, 2015 12,486,754 80.88 Granted 2,264,950 91.39 Exercised (1,502,763 ) 97.51 Forfeited (359,487 ) 92.65 Balance Outstanding Aug. 31, 2016 12,889,454 $ 85.56 At Aug. 31, 2016, 9,292,503 stock options were exercisable. The weighted-average remaining contractual life of these stock options was four years, and the weighted-average exercise price was $81.25 per share. The aggregate intrinsic value of these stock options was $239 million at Aug. 31, 2016. At Aug. 31, 2016, 12,611,875 stock options were vested or expected to vest. The weighted-average remaining contractual life of these stock options was five years, and the weighted-average exercise price was $85.25 per share. The aggregate intrinsic value of these stock options was $279 million at Aug. 31, 2016. The weighted-average grant-date fair value of stock options granted during fiscal years 2016, 2015 and 2014 was $20.64 , $24.38 and $38.23 , respectively, per share. The total pretax intrinsic value of options exercised during the fiscal years ended 2016, 2015 and 2014 was $66 million , $150 million and $273 million , respectively. Pretax unrecognized compensation expense for stock options, net of estimated forfeitures, was $36 million as of Aug. 31, 2016, and will be recognized as expense over a weighted-average remaining vesting period of 1.25 years. A summary of the status of Monsanto’s restricted stock, restricted stock units and directors’ deferred stock compensation plans for fiscal year 2016 follows in the tables below: Restricted Stock Weighted-Average Grant Date Fair Values Restricted Stock Units Weighted-Average Grant Date Fair Values Directors’ Deferred Stock Weighted-Average Grant Date Fair Value Nonvested as of Aug. 31, 2015 4,042 $ 111.37 1,939,822 $ 99.74 — $ — Granted 9,893 91.29 822,423 87.85 23,504 94.87 Vested (6,428 ) 97.73 (730,696 ) 90.28 (22,410 ) 94.83 Forfeitures — — (342,631 ) 97.18 (1,094 ) 95.80 Nonvested as of Aug. 31, 2016 7,507 $ 96.58 1,688,918 $ 98.56 — $ — Pre-tax unrecognized compensation expense, net of estimated forfeitures as applicable (dollars in millions) $ — $ 70 $ — Remaining weighted-average period of expense recognition/requisite service periods (in years) 2.17 1.42 — Weighted-average grant-date fair value during fiscal year Total fair value of equity vested during fiscal year (Dollars in millions, except per share amounts) 2016 2015 2014 2016 2015 2014 Restricted stock $ 91.29 $ 115.65 $ 108.10 $ 1 $ — $ 1 Restricted stock units $ 87.85 $ 108.42 $ 102.10 $ 66 $ 52 $ 32 Directors’ deferred stock $ 94.87 $ 115.65 $ 98.38 $ 2 $ 2 $ — Valuation and Expense Information under the Compensation — Stock Compensation topic of the ASC: Monsanto estimates the value of employee stock options on the date of grant using a lattice-binomial model. A lattice-binomial model requires the use of extensive actual employee exercise behavior data and a number of complex assumptions including volatility, risk-free interest rate and expected dividends. Expected volatilities used in the model are based on implied volatilities from traded options on Monsanto’s stock and historical volatility of Monsanto’s stock price. The expected life represents the weighted-average period the stock options are expected to remain outstanding and is a derived output of the model. The lattice-binomial model incorporates exercise and post-vesting forfeiture assumptions based on an analysis of historical data. The following assumptions are used to calculate the estimated value of employee stock options: Lattice-binomial Assumptions 2016 2015 2014 Expected Dividend Yield 1.9 % 1.7 % 1.7 % Expected Volatility 23-35% 20-35% 19-36% Weighted-Average Volatility 27.5 % 25.9 % 27.5 % Risk-Free Interest Rates 1.40-2.05% 1.56-2.11% 0.70-2.34% Weighted-Average Risk-Free Interest Rate 1.78 % 1.99 % 1.66 % Expected Option Life (in years) 7 7 6 Monsanto estimates the value of restricted stock units using the fair value on the date of grant. When dividends are not paid on outstanding restricted stock units, the award is valued by reducing the grant-date price by the present value of the dividends expected to be paid, discounted at the appropriate risk-free interest rate. The fair value of restricted stock units granted is calculated using the same expected dividend yield and weighted-average risk-free interest rate assumptions as those used for stock options. |
CAPITAL STOCK
CAPITAL STOCK | 12 Months Ended |
Aug. 31, 2016 | |
CAPITAL STOCK [Abstract] | |
CAPITAL STOCK | CAPITAL STOCK Monsanto is authorized to issue 1.5 billion shares of common stock, $0.01 par value, and 20 million shares of undesignated preferred stock, $0.01 par value. The board of directors has the authority, without action by the shareowners, to designate and issue preferred stock in one or more series and to designate the rights, preferences and privileges of each series, which may be greater than the rights of the company’s common stock. It is not possible to state the actual effect of the issuance of any shares of preferred stock upon the rights of holders of common stock until the board of directors determines the specific rights of the holders of preferred stock. The authorization of undesignated preferred stock makes it possible for Monsanto’s board of directors to issue preferred stock with voting or other rights or preferences that could impede the success of any attempt to change control of the company. These and other provisions may deter hostile takeovers or delay attempts to change management control. There were no shares of preferred stock outstanding as of Aug. 31, 2016, or Aug. 31, 2015. As of Aug. 31, 2016, and Aug. 31, 2015, 437.8 million and 467.9 million shares of common stock were outstanding, respectively. On Oct. 9, 2015, Monsanto entered into uncollared accelerated share repurchase (“ASR”) agreements with each of Citibank, N.A. (“Citi”) and JPMorgan Chase Bank, N.A. (“JPMorgan”). Under the ASR agreements, the company agreed to purchase an aggregate of approximately $3.0 billion of Monsanto common stock. On Oct. 13, 2015, Citi and JPMorgan delivered to Monsanto approximately 28.4 million shares in total based on then-current market prices, and Monsanto paid a total of $3.0 billion . The payments to Citi and JPMorgan were recorded as a reduction to shareowners’ equity consisting of a $2.6 billion increase in treasury stock, which reflected the value of the 28.4 million shares received upon initial settlement, and a $450 million decrease in additional contributed capital, which reflected the value of the stock held back by Citi and JPMorgan pending final settlement of the ASR agreements. On Jan. 14, 2016, the company’s Oct. 9, 2015 ASR agreement with Citi was terminated in accordance with the terms of the agreement. Upon settlement, Citi delivered to the company an additional 1.9 million shares of Monsanto common stock for a total of approximately 16.1 million shares repurchased at an aggregate cost of $1.5 billion . On Jan. 15, 2016, the company’s Oct. 9, 2015 ASR agreement with JPMorgan was terminated in accordance with the terms of the agreement. Upon settlement, JPMorgan delivered to the company an additional 1.9 million shares of Monsanto common stock for a total of approximately 16.1 million shares repurchased at an aggregate cost of $1.5 billion . Upon completion of the ASR agreements, the $450 million previously recorded as additional contributed capital was classified as treasury stock. The ASR agreements were entered into pursuant to the share repurchase authorization announced in June 2014 and were funded by commercial paper and cash on hand. On July 1, 2014, Monsanto entered into uncollared ASR agreements with each of JPMorgan and Goldman, Sachs & Co. The ASR agreements were completed and settled in accordance with the terms of the agreements in fiscal year 2015. Under the ASR agreements, the company purchased approximately 51.8 million shares of Monsanto common stock for an aggregate price of $6.0 billion , which was accounted for as an increase to treasury stock. The ASR agreements were entered into pursuant to share repurchase authorizations announced in June 2013 and in June 2014. In June 2014, the company announced a share repurchase authorization for up to $10 billion of the company’s common stock over a two -year period. Repurchases under the authorization commenced on July 1, 2014. For the year ended August 31, 2016, 32.2 million shares were received under this authorization all of which were delivered upon settlement of the Oct. 9, 2015 ASR agreements for $3 billion . For the year ended Aug. 31, 2015, 20.2 million shares were received under this authorization, of which 13.2 million shares were delivered upon settlement of the July 1, 2014 ASR agreements and 7.0 million shares were repurchased for $821.5 million . The share repurchase authorization expired on June 24, 2016. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Aug. 31, 2016 | |
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 Balance as of Aug. 31, 2014 $ (731 ) $ 5 $ (167 ) $ (221 ) $ (1,114 ) Other comprehensive loss before reclassifications (1,596 ) — (54 ) (94 ) (1,744 ) Amounts reclassified from accumulated other comprehensive loss — (3 ) 31 29 57 Net current-period other comprehensive loss (1,596 ) (3 ) (23 ) (65 ) (1,687 ) Balance as of Aug. 31, 2015 (2,327 ) 2 (190 ) (286 ) (2,801 ) Other comprehensive income (loss) before reclassifications 35 (2 ) (42 ) (83 ) (92 ) Amounts reclassified from accumulated other comprehensive loss — 1 55 29 85 Net current-period other comprehensive income (loss) 35 (1 ) 13 (54 ) (7 ) Balance as of Aug. 31, 2016 $ (2,292 ) $ 1 $ (177 ) $ (340 ) $ (2,808 ) The following table provides additional information regarding items reclassified out of accumulated other comprehensive loss into earnings during the twelve months ended Aug. 31, 2016 , and Aug. 31, 2015. Amount Reclassified from Accumulated Other Comprehensive Loss Affected Line Item in the Statement of Consolidated Operations (Dollars in millions) Year Ended Aug. 31, 2016 2015 Available for Sale Securities: Loss (Gain) on Sale of Security $ 2 $ (4 ) Other expense, net 2 (4 ) Total before income taxes (1 ) 1 Income tax provision $ 1 $ (3 ) Net of tax Cash Flow Hedges: Foreign Exchange Contracts $ (8 ) $ (31 ) Net sales Foreign Exchange Contracts (21) (9) Cost of goods sold Commodity Contracts 113 81 Cost of goods sold Interest Rate Contracts 15 13 Interest expense 99 54 Total before income taxes (44 ) (23 ) Income tax provision $ 55 $ 31 Net of tax Postretirement Benefit Items: Amortization of Unrecognized Net Loss $ 16 $ 16 Inventory / Cost of goods sold (1) Amortization of Unrecognized Net Loss 31 31 Selling, general and administrative expenses 47 47 Total before income taxes (18 ) (18 ) Income tax provision $ 29 $ 29 Net of tax Total Reclassifications For The Period $ 85 $ 57 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 $16 million of net periodic benefit cost to inventory, of which approximately $16 million was recognized in cost of goods sold during each of the twelve months ended Aug. 31, 2016 , and Aug. 31, 2015 , respectively. See Note 16 — Postretirement Benefits - Pensions — and Note 17 — Postretirement Benefits - Health Care and Other Postemployment Benefits — for additional information |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Aug. 31, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share (“EPS”) was computed using the weighted-average number of common shares outstanding during the periods shown in the table below. The diluted EPS computation takes into account the effect of dilutive potential common shares, as shown in the table below. Potential common shares consist of stock options, restricted stock, restricted stock units and directors’ deferred shares calculated using the treasury stock method and are excluded if their effect is antidilutive. Of those antidilutive options, certain stock options were excluded from the computations of dilutive potential common shares as their exercise prices were greater than the average market price of common shares for the period. Year Ended Aug. 31, (In millions) 2016 2015 2014 Weighted-Average Number of Common Shares 442.7 476.9 519.3 Dilutive Potential Common Shares 4.4 4.5 5.6 Antidilutive Potential Common Shares 5.4 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 3.2 0.1 — |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Aug. 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION Cash payments for interest and taxes during fiscal years 2016 , 2015 and 2014 , were as follows: Year Ended Aug. 31, (Dollars in millions) 2016 2015 2014 Interest $ 387 $ 343 $ 158 Taxes 841 992 1,019 During fiscal years 2016 , 2015 and 2014 , the company recorded the following noncash investing and financing transactions: • During fiscal years 2016 and 2015 , the company recognized noncash transactions related to restructuring. See Note 5 — Restructuring . • In fourth quarter 2016 , 2015 and 2014 , the board of directors declared a dividend payable in first quarter 2016, 2015 and 2014, respectively. As of Aug. 31, 2016 , Aug. 31, 2015 and Aug. 31, 2014 , a dividend payable of $237 million , $254 million and $239 million , respectively, was recorded. • During fiscal years 2016 , 2015 and 2014 , the company recognized noncash capital expenditures of $210 million , $225 million and $258 million , respectively, in accounts payable in the Statements of Consolidated Financial Position. • During fiscal years 2016 , 2015 and 2014 , the company recognized noncash transactions related to stock-based compensation. See Note 19 — Stock-Based Compensation Plans — for further discussion of stock-based compensation. • During fiscal year 2014 , the company recognized noncash transactions related to acquisitions largely allocated to goodwill and other intangible assets, net in the Statement of Consolidated Financial Position. See Note 4 — Business Combinations and Collaborative Arrangements — for acquisition activity. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Aug. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Contractual obligations: The following table sets forth the company’s estimates of future payments under contracts as of Aug. 31, 2016 . Payments Due by Fiscal Year Ending Aug. 31, (Dollars in millions) Total 2017 2018 2019 2020 2021 2022 and Total Debt, including Capital Lease Obligations $ 9,040 $ 1,587 $ 306 $ 804 $ 5 $ 500 $ 5,838 Interest Payments Relating to Long-Term Debt and Capital Lease Obligations (1) 6,320 310 301 282 269 267 4,891 Operating Lease Obligations 520 151 98 76 61 47 87 Purchase Obligations: Commitments to purchase inventories 2,550 1,282 375 335 243 183 132 Commitments to purchase breeding research 495 55 55 55 55 55 220 R&D alliances and joint venture obligations 150 48 37 26 18 17 4 Uncompleted additions to property 271 271 — — — — — Other Liabilities: Postretirement liabilities (2) 106 106 — — — — — Unrecognized tax benefits (3) 70 — — — — — — Environmental liabilities 189 12 16 11 6 6 138 Total Contractual Obligations $ 19,711 $ 3,822 $ 1,188 $ 1,589 $ 657 $ 1,075 $ 11,310 (1) For variable rate debt, interest is calculated using the applicable rates as of Aug. 31, 2016 . (2) Includes the company’s planned pension and other postretirement benefit contributions for 2017 . The actual amounts funded in 2017 may differ from the amounts listed above. Contributions in 2018 and beyond are excluded as those amounts are unknown. Refer to Note 16 — Postretirement Benefits - Pensions — and Note 17 — Postretirement Benefits - Health Care and Other Postemployment Benefits — for more information. (3) Unrecognized tax benefits relate to reserves for uncertain tax positions recorded under the Income Taxes topic of the ASC. The company is unable to reasonably predict the timing of tax settlements, as tax audits can involve complex issues, and the resolution of those issues may span multiple years, particularly if subject to negotiation or litigation. See Note 12 — Income Taxes — for more information. Leases: The company routinely leases buildings for use as administrative offices or warehousing, land for research facilities, company aircraft, railcars, motor vehicles and equipment. Assets held under capital leases are included in property, plant and equipment. Certain operating leases contain renewal options that may be exercised at Monsanto’s discretion. The expected lease term is considered in the decision as to whether a lease should be recorded as capital or operating. Certain operating leases contain escalation provisions for an annual inflation adjustment factor, and some are based on the CPI published by the Bureau of Labor Statistics. Additionally, certain leases require Monsanto to pay for property taxes, insurance, maintenance and other operating expenses called rent adjustments, which are subject to change over the life of the lease. These adjustments were not determinable at the time the lease agreements were executed. Therefore, Monsanto recognizes the expenses for rent and rent adjustments when they become known and payable, which is more representative of the time pattern in which the company derives the related benefit in accordance with the Leases topic of the ASC. Other lease agreements provide for base rent adjustments contingent upon future changes in Monsanto’s use of the leased space. At the inception of these leases, Monsanto does not have the right to control more than the percentage defined in the lease agreement of the leased property. Therefore, as the company’s use of the leased space increases, the company recognizes rent expense for the additional leased property during the period during which the company has the right to control the use of additional property in accordance with the Leases topic of the ASC. Rent expense was $256 million for fiscal year 2016 , $273 million for fiscal year 2015 and $272 million for fiscal year 2014 . Guarantees: Monsanto may provide and has provided guarantees on behalf of its consolidated subsidiaries for obligations incurred in the normal course of business. Because these are guarantees of obligations of consolidated subsidiaries, Monsanto’s consolidated financial position is not affected by the issuance of these guarantees. Monsanto warrants the performance of certain products through standard product warranties. In addition, Monsanto provides extensive marketing programs to increase sales and enhance customer satisfaction. These programs may include performance warranty features and indemnification for risks not related to performance, both of which are provided to qualifying customers on a contractual basis. The cost of payments for claims based on performance warranties has been, and is expected to continue to be, insignificant. It is not possible to predict the maximum potential amount of future payments for indemnification for losses not related to the performance of our products (for example, replanting due to extreme weather conditions), because it is not possible to predict whether the specified contingencies will occur and if so, to what extent. In various circumstances, Monsanto has agreed to indemnify or reimburse other parties for various losses or expenses. For example, like many other companies, Monsanto has agreed to indemnify its officers and directors for liabilities incurred by reason of their position with Monsanto. Contracts for the sale or purchase of a business or line of business may require indemnification for various events, including certain events that arose before the sale, or tax liabilities that arise before, after or in connection with the sale. Certain seed licensee arrangements indemnify the licensee against liability and damages, including legal defense costs, arising from any claims of patent, copyright, trademark or trade secret infringement related to Monsanto’s trait technology. Germplasm licenses generally indemnify the licensee against claims related to the source or ownership of the licensed germplasm. Litigation settlement agreements may contain indemnification provisions covering future issues associated with the settled matter. Credit agreements and other financial agreements frequently require reimbursement for certain unanticipated costs resulting from changes in legal or regulatory requirements or guidelines. These agreements may also require reimbursement of withheld taxes, and additional payments that provide recipients amounts equal to the sums they would have received had no such withholding been made. Indemnities like those in this paragraph may be found in many types of agreements, including, for example, operating agreements, leases, purchase or sale agreements and other licenses. Leases may require indemnification for liabilities Monsanto’s operations may potentially create for the lessor or lessee. It is not possible to predict the maximum future payments possible under these or similar provisions because it is not possible to predict whether any of these contingencies will come to pass and if so, to what extent. Historically, these types of provisions did not have a material effect on Monsanto’s financial position, profitability or liquidity. Monsanto believes that if it were to incur a loss in any of these matters, it would not have a material effect on its financial position, profitability or liquidity. Based on the company’s current assessment of exposure, Monsanto has recorded a liability of less than $1 million as of Aug. 31, 2016 , and Aug. 31, 2015 , related to these indemnifications. Monsanto provides guarantees for certain customer loans in the United States, Latin America and Europe. See Note 7 — Customer Financing Programs — for additional information. Information regarding Monsanto’s indemnification obligations to Pharmacia under the Separation Agreement can be found below in the “Litigation” section of this note. Environmental and Litigation Liabilities: Monsanto is involved in environmental remediation and legal proceedings to which Monsanto is party in its own name and proceedings to which its former parent, Pharmacia LLC (“Pharmacia”) or its former subsidiary, Solutia, Inc. (“Solutia”) is a party but that Monsanto manages and for which Monsanto is responsible pursuant to certain indemnification agreements. In addition, Monsanto has liabilities established for various product claims. With respect to certain of these proceedings, Monsanto has established a reserve for the estimated liabilities. For more information on Monsanto’s policies regarding “Litigation and Other Contingencies,” see Note 2 — Significant Accounting Policies . Portions of the liability included in a reserve for which the amount and timing of cash payments are fixed or readily determinable were discounted, using a risk-free discount rate adjusted for inflation ranging from 3.0 to 3.5 percent. The remaining portions of the liability were not subject to discounting because of uncertainties in the timing of cash outlay. The following table provides a detailed summary of the discounted and undiscounted amounts included in the reserve for environmental and litigation liabilities: (Dollars in millions) Aggregate Undiscounted Amount $ 405 Discounted Portion: Expected payment (undiscounted) for: 2017 12 2018 16 2019 11 2020 6 2021 6 Undiscounted aggregate expected payments after 2022 138 Aggregate Amount to be Discounted as of Aug. 31, 2016 189 Discount, as of Aug. 31, 2016 (49 ) Aggregate Discounted Amount Accrued as of Aug. 31, 2016 $ 140 Total Environmental and Litigation Reserve as of Aug. 31, 2016 $ 545 Changes in the environmental and litigation liabilities for fiscal years 2014 , 2015 and 2016 are as follows: (Dollars in millions) Balance at Aug. 31, 2013 $ 271 Payments (69 ) Accretion 7 Adjustments to liabilities recognized in fiscal year 2014 82 Balance at Aug. 31, 2014 $ 291 Payments (67 ) Accretion 3 Adjustments to liabilities recognized in fiscal year 2015 129 Balance at Aug. 31, 2015 $ 356 Payments (117 ) Accretion 3 Adjustments to liabilities recognized in fiscal year 2016 303 Total Environmental and Litigation Reserve as of Aug. 31, 2016 $ 545 Environmental: Included in the liability are amounts related to environmental remediation of sites associated with Pharmacia’s former chemicals and agricultural businesses, with no single site representing the majority of the environmental liability. These sites are in various stages of environmental management. At some sites, work is in the early stages of assessment and investigation, while at others the cleanup remedies have been implemented and the remaining work consists of monitoring the integrity of that remedy. The extent of Monsanto’s involvement at the various sites ranges from less than one percent to 100 percent of the costs currently anticipated. At some sites, Monsanto is acting under court or agency order, while at others it is acting with very minimal government involvement. Monsanto does not currently anticipate any material loss in excess of the amount recorded for the environmental sites reflected in the liability. However, it is possible that new information about these sites for which the accrual has been established, such as results of investigations by regulatory agencies, Monsanto or other parties, could require Monsanto to reassess its potential exposure related to environmental matters. Monsanto’s future remediation expenses at these sites may be affected by a number of uncertainties. These uncertainties include, but are not limited to, the method and extent of remediation, the percentage of material attributable to Monsanto at the sites relative to that attributable to other parties and the financial capabilities of the other potentially responsible parties. Monsanto cannot reasonably estimate any additional loss and does not expect the resolution of such uncertainties, or environmental matters not reflected in the liability, to have a material adverse effect on its consolidated results of operations, financial position, cash flows or liquidity. Litigation: The above liability includes amounts related to certain third-party litigation with respect to Monsanto’s business, as well as tort litigation related to Pharmacia’s former chemical business, including lawsuits involving polychlorinated biphenyls (“PCBs”), dioxins, and other chemical and premises liability litigation. Additional matters that are not reflected in the liability may arise in the future, and Monsanto may manage, settle, or pay judgments or damages with respect thereto in order to mitigate contesting potential liability. Following is a description of one of the more significant litigation matters. The company is defending legal claims made by plaintiffs allegedly injured by PCBs manufactured by Pharmacia’s chemical business over four decades ago and incorporated into products made, used and sometimes disposed of by others. The company has been named in approximately 30 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 primarily claim that plaintiffs’ various forms of non-Hodgkin lymphoma have been caused by exposure to trace levels of PCBs. The company believes it has meritorious legal and factual defenses to these cases and is vigorously defending them. The company is defending these PCB-related claims under indemnity agreements resulting from its 2000 spin-off from Pharmacia and subsequent agreements under Solutia’s February 2008 plan of reorganization. In September 2016, the parties reached an agreement that would potentially settle all of these personal injury lawsuits including those with verdicts on appeal. Under the agreement all litigation is to be stayed pending dismissal upon completion of settlement. The Company will be required to pay up to $280 million into a settlement fund, with the settlement and the final payment amount contingent upon the level of claimant participation. The company accrued the settlement as it is deemed probable the level of claimant participation will be met, and the amount of the settlement could be reasonably estimated. As of Aug. 31, 2016, $280 million was recorded in the Statement of Consolidated Financial Position within miscellaneous short-term accruals; the related expense is included in selling, general and administrative expenses in the Statements of Consolidated Operations. The company also has been named in lawsuits brought by municipal entities claiming that Monsanto, Pharmacia and Solutia, collectively as a manufacturer of PCBs, should be responsible for a variety of damages due to PCBs in bodies of water, regardless of how PCBs came to be located there. The company believes that these novel claims are without merit and is vigorously defending the cases on legal and factual grounds. 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 various issues challenging the right to collect certain royalties for Roundup Ready soybeans, such as whether Brazilian pipeline patents have the duration of their corresponding U.S. patents (2014 for Roundup Ready soybeans) and whether Brazil’s Plant Variety Protection law affects the enforceability of patents. These issues are 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: As announced on Feb. 9, 2016, Monsanto reached an agreement with the U.S. Securities and Exchange Commission (“SEC”) fully resolving the previously disclosed SEC investigation into the financial reporting of customer incentive programs for glyphosate products in fiscal years 2009, 2010 and 2011. In agreeing to the settlement, Monsanto neither admitted nor denied the SEC’s allegations that the company violated certain provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. Monsanto agreed to pay an $80 million civil penalty to resolve the investigation, which was fully reserved for and previously disclosed in the company’s financial statements for fiscal year 2015. Monsanto also retained a consultant to review the company’s financial reporting of the customer incentive programs for its crop protection business. In connection with the settlement, Monsanto’s Chairman and Chief Executive Officer, Hugh Grant and former Chief Financial Officer, Carl M. Casale, reimbursed the company for cash incentives and certain stock awards that they received in fiscal years 2009 and 2010. Off-Balance Sheet Arrangement: Monsanto is in the process of making a significant expansion of its 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 facility qualify for the right of offset in accordance with the Balance Sheet topic of the ASC 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 facility and the expansion are being treated as being owned by Monsanto. |
SEGMENT AND GEOGRAPHIC DATA
SEGMENT AND GEOGRAPHIC DATA | 12 Months Ended |
Aug. 31, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT AND GEOGRAPHIC DATA | SEGMENT AND GEOGRAPHIC DATA Monsanto conducts its worldwide operations through global businesses, which are aggregated into reportable segments based on similarity of products, production processes, customers, distribution methods and economic characteristics. The operating segments are aggregated into two reportable segments: Seeds and Genomics and Agricultural Productivity. The Seeds and Genomics segment consists of the global seeds and related traits businesses, biotechnology platforms and digital 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 (loss) before interest and taxes and is an operating performance measure for the two reportable segments. EBIT is useful to management in demonstrating the operational profitability of the segments by excluding interest and taxes, which are generally accounted for across the entire company on a consolidated basis. Sales between segments were not significant. Certain SG&A expenses are allocated between segments based on the segment’s relative contribution to total Monsanto operations. Allocation percentages remain consistent for fiscal years 2014 , 2015 and 2016 . Data for the Seeds and Genomics and Agricultural Productivity reportable segments, as well as for Monsanto’s significant operating segments, is presented in the table that follows: Year Ended Aug. 31, (Dollars in millions) 2016 2015 2014 Net Sales (1) Corn seed and traits $ 5,825 $ 5,953 $ 6,401 Soybean seed and traits 2,162 2,276 2,102 Cotton seed and traits 440 523 665 Vegetable seeds 801 816 867 All other crops seeds and traits 760 675 705 Total Seeds and Genomics $ 9,988 $ 10,243 $ 10,740 Agricultural productivity 3,514 4,758 5,115 Total Agricultural Productivity $ 3,514 $ 4,758 $ 5,115 Total $ 13,502 $ 15,001 $ 15,855 Gross Profit Corn seed and traits $ 3,450 $ 3,557 $ 3,932 Soybean seed and traits 1,399 1,510 1,364 Cotton seed and traits 282 408 461 Vegetable seeds 401 372 401 All other crops seeds and traits 542 430 438 Total Seeds and Genomics $ 6,074 $ 6,277 $ 6,596 Agricultural productivity 943 1,905 1,978 Total Agricultural Productivity $ 943 $ 1,905 $ 1,978 Total $ 7,017 $ 8,182 $ 8,574 EBIT (2)(3) Seeds and genomics $ 2,292 $ 2,206 $ 2,607 Agricultural productivity 116 1,294 1,345 Total $ 2,408 $ 3,500 $ 3,952 Depreciation and Amortization Expense Seeds and genomics $ 593 $ 586 $ 568 Agricultural productivity 134 130 123 Total $ 727 $ 716 $ 691 Equity Affiliate Loss (4) Seeds and genomics $ 13 $ 13 $ 8 Agricultural productivity (1 ) — — Total $ 12 $ 13 $ 8 Total Assets Seeds and genomics $ 15,772 $ 17,330 $ 17,548 Agricultural productivity 3,964 4,590 4,370 Total $ 19,736 $ 21,920 $ 21,918 Property, Plant and Equipment Purchases Seeds and genomics $ 727 $ 762 $ 831 Agricultural productivity 196 205 174 Total $ 923 $ 967 $ 1,005 Investment in Equity Affiliates Seeds and genomics $ 152 $ 114 $ 126 Agricultural productivity — — — Total $ 152 $ 114 $ 126 (1) Represents net sales from continuing operations (2) EBIT is defined as earnings (loss) before interest and taxes; see the following table for reconciliation. Earnings (loss) is intended to mean net income (loss) attributable to Monsanto Company as presented in the Statements of Consolidated Operations under GAAP. EBIT is an operating performance measure for the two reportable segments. (3) Agricultural Productivity EBIT includes income of $27 million , $45 million and $22 million from discontinued operations for fiscal years 2016, 2015 and 2014, respectively. (4) Equity affiliate loss is included in other expense, net in the Statements of Consolidated Operations. A reconciliation of EBIT to net income for each period follows: Year Ended Aug. 31, (Dollars in millions) 2016 2015 2014 EBIT (1) $ 2,408 $ 3,500 $ 3,952 Interest Expense — Net 362 328 146 Income Tax Provision (2) 710 858 1,066 Net Income Attributable to Monsanto Company $ 1,336 $ 2,314 $ 2,740 (1) Includes the income from operations of discontinued businesses and pre-tax noncontrolling interest (2) Includes the income tax provision from continuing operations, the income tax benefit on noncontrolling interest and the income tax provision on discontinued operations Net sales and long-lived assets are attributed to the geographic areas of the relevant Monsanto legal entities. For example, a sale from the United States to a customer in Brazil is reported as a U.S. export sale. Net Sales to Unaffiliated Customers Long-Lived Assets Year Ended Aug. 31, As of Aug. 31, (Dollars in millions) 2016 2015 2014 2016 2015 United States $ 8,008 $ 8,612 $ 8,625 $ 7,779 $ 7,714 Europe-Africa 1,536 1,834 2,192 1,321 1,309 Brazil 1,437 1,725 1,778 665 614 Argentina 856 871 1,092 345 427 Asia-Pacific 483 686 837 277 293 Canada 619 601 636 87 104 Mexico 436 537 503 138 163 Other 127 135 192 354 394 Total $ 13,502 $ 15,001 $ 15,855 $ 10,966 $ 11,018 |
QUARTERLY DATA (UNAUDITED)
QUARTERLY DATA (UNAUDITED) | 12 Months Ended |
Aug. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
QUARTERLY DATA (UNAUDITED) | QUARTERLY DATA (UNAUDITED) The following tables include financial data for the fiscal year quarters in 2016 and 2015 which have been adjusted for discontinued operations. (Dollars in millions, except per share amounts) 1st (2)(3) 2nd (4)(5) 3rd (6)(7) 4th (8)(9) 2016 Quarter Quarter Quarter Quarter Total Net Sales $ 2,219 $ 4,532 $ 4,189 $ 2,562 $ 13,502 Gross Profit 901 2,598 2,380 1,138 7,017 (Loss) Income from Continuing Operations Attributable to Monsanto Company (265 ) 1,060 717 (193 ) 1,319 Income on Discontinued Operations 12 3 — 2 17 Net (Loss) Income (257 ) 1,060 715 (205 ) 1,313 Net (Loss) Income Attributable to Monsanto Company $ (253 ) $ 1,063 $ 717 $ (191 ) $ 1,336 Basic (Loss) Earnings per Share Attributable to Monsanto Company: (1) (Loss) Income from continuing operations $ (0.58 ) $ 2.42 $ 1.64 $ (0.44 ) $ 2.98 Income on discontinued operations 0.02 — — — 0.04 Net (Loss) Income Attributable to Monsanto Company $ (0.56 ) $ 2.42 $ 1.64 $ (0.44 ) $ 3.02 Diluted (Loss) Earnings per Share Attributable to Monsanto Company: (1) (Loss) Income from continuing operations $ (0.58 ) $ 2.40 $ 1.63 $ (0.44 ) $ 2.95 Income on discontinued operations 0.02 0.01 — — 0.04 Net (Loss) Income Attributable to Monsanto Company $ (0.56 ) $ 2.41 $ 1.63 $ (0.44 ) $ 2.99 2015 Net Sales $ 2,870 $ 5,197 $ 4,579 $ 2,355 $ 15,001 Gross Profit 1,411 3,039 2,736 996 8,182 Income (Loss) from Continuing Operations Attributable to Monsanto Company 227 1,418 1,141 (500 ) 2,286 Income on Discontinued Operations 16 7 — 5 28 Net Income (Loss) 243 1,419 1,155 (492 ) 2,325 Net Income (Loss) Attributable to Monsanto Company $ 243 $ 1,425 $ 1,141 $ (495 ) $ 2,314 Basic Earnings (Loss) per Share Attributable to Monsanto Company: (1) Income (Loss) from continuing operations $ 0.47 $ 2.93 $ 2.41 $ (1.07 ) $ 4.79 Income on discontinued operations 0.03 0.02 — 0.01 0.06 Net Income (Loss) Attributable to Monsanto Company $ 0.50 $ 2.95 $ 2.41 $ (1.06 ) $ 4.85 Diluted Earnings (Loss) per Share Attributable to Monsanto Company: (1) Income (Loss) from continuing operations $ 0.47 $ 2.90 $ 2.39 $ (1.07 ) $ 4.75 Income on discontinued operations 0.03 0.02 — 0.01 0.06 Net Income (Loss) Attributable to Monsanto Company $ 0.50 $ 2.92 $ 2.39 $ (1.06 ) $ 4.81 (1) Because Monsanto reported a loss from continuing operations in the first quarter 2016 and fourth quarter 2016 and 2015 , generally accepted accounting principles require diluted loss per share to be calculated using weighted-average common shares outstanding, excluding common stock equivalents. As a result, the quarterly earnings (loss) per share may not total to the full-year amount. (2) In the first quarter of fiscal 2016 , the company recorded $52 million of cost of goods sold expenses related to the 2015 Restructuring Plan, $5 million of selling, general and administrative expenses related to environmental and litigation settlements and $266 million of restructuring charges with a combined corresponding income tax benefit of $110 million . (3) In the first quarter of fiscal 2015 , the company recorded $8 million of selling, general and administrative expenses related to environmental and litigation settlements with a corresponding income tax benefit of $3 million . (4) In the second quarter of fiscal 2016 , the company recorded $3 million of selling, general and administrative expenses related to environmental and litigation settlements and a SEC settlement and $9 million of restructuring charges related to the 2015 Restructuring Plan with a combined corresponding income tax benefit of $4 million . (5) In the second quarter of fiscal 2015 , the company recorded $10 million of selling, general and administrative expenses related to environmental and litigation settlements with a corresponding income tax benefit of $4 million . (6) In the third quarter of fiscal 2016 , the company recorded $210 million of net sales as a result of agreements entered into related to the company ’ s alfalfa traits and technology, which resulted in upfront revenue accounted for as an exclusive perpetual license to intellectual property, with a corresponding income tax provision of $74 million . The company also recorded $1 million of cost of goods sold expenses related to the 2015 Restructuring Plan, $16 million of selling, general and administrative expenses related to environmental and litigation settlements and $15 million of restructuring charges with a combined corresponding income tax benefit of $13 million . The company also recorded a net tax charge of $219 million due to losses generated in Argentina in the current year as well as recent uncertainties around the Argentina business. The company evaluated the recoverability of various items on the Statement of Consolidated Financial Position related to the Argentina business and determined an allowance against certain assets was necessary, which resulted in the net charge to tax expense. (7) In the third quarter of fiscal 2015 , the company recorded $274 million of net sales as a result of the sale of a perpetual license to intellectual property, with a corresponding income tax provision of $102 million . The company also recorded $57 million of selling, general and administrative expenses related to environmental and litigation settlements and a SEC settlement with a combined corresponding income tax benefit of $8 million . (8) In the fourth quarter of fiscal 2016 , the company recorded a $157 million gain in other expense, net as a result of the company signing definitive agreements to sell certain manufacturing assets and contribute to a newly-formed joint venture certain intellectual property, real property and tangible assets related to the company ’ s sorghum business, with a corresponding income tax provision of $47 million . The company also recorded $14 million of cost of goods sold expenses related to the 2015 Restructuring Plan, $246 million of selling, general and administrative expenses related to environmental and litigation settlements and a SEC settlement and $7 million of restructuring charges with a combined corresponding income tax benefit of $77 million . The company also recorded a net tax charge of $33 million for Argentine-related tax matters based on similar circumstances as noted above in the third quarter of fiscal 2016. (9) In the fourth quarter of fiscal 2015 , the company recorded $101 million of cost of goods sold expenses related to the 2015 Restructuring Plan, $93 million of selling, general and administrative expenses related to environmental and litigation settlements and a SEC settlement and $393 million of restructuring charges with a combined corresponding income tax benefit of $173 million . |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Aug. 31, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT On Sept. 14, 2016, the company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Bayer Aktiengesellschaft, a German stock corporation (“Bayer”), and KWA Investment Co., a Delaware corporation and an indirect wholly owned subsidiary of Bayer (“Merger Sub”). The Merger Agreement provides, among other things and subject to the terms and conditions set forth therein, that Merger Sub will be merged with and into the company (the “Merger”), with the company continuing as the surviving corporation and as a wholly owned subsidiary of Bayer. The Merger Agreement provides that each share of common stock of the company, par value $0.01 per share (“Common Stock”) (other than shares of Common Stock owned by Bayer, Merger Sub or any of their wholly owned subsidiaries, shares of Common Stock owned by the company or its wholly owned subsidiaries and shares of Common Stock owned by stockholders of the company who properly demand and do not withdraw a demand for, or lose their right to, appraisal rights pursuant to Section 262 of the General Corporation Law of the State of Delaware) and each restricted stock unit of the company and performance stock unit of the company outstanding immediately prior to the effective time of the Merger (the “Effective Time”) will be automatically converted into the right to receive $128.00 in cash, without interest (the “Merger Consideration”). At the Effective Time, each outstanding option to purchase shares of Common Stock and each stock appreciation right in respect of a share of Common Stock, whether vested or unvested, will be automatically converted into the right to receive the Merger Consideration less the applicable exercise price of such option or stock appreciation right, without interest. In the case of restricted stock units and performance stock units, the Merger Consideration generally will be paid when the original award would have settled, but the Merger Consideration will be paid shortly following the Effective Time in the case of stock options and stock appreciation rights. The Board of Directors of the company (the “Board”) has unanimously approved and declared advisable the Merger Agreement and the transactions contemplated thereby, including the Merger. The obligation of the parties to complete the Merger is subject to customary closing conditions, including, among others, (i) the approval of the adoption of the Merger Agreement by the holders of a majority of the outstanding shares of Common Stock entitled to vote (the “Stockholder Approval”), (ii) the expiration or earlier termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, (iii) the adoption of all approvals necessary for the completion of the Merger by the European Commission under Council Regulation (EC) No. 139/2004, (iv) the receipt of certain other required foreign antitrust approvals, (v) completion of the review process by the Committee on Foreign Investment in the United States (“CFIUS”), (vi) no approvals related to CFIUS or antitrust laws having been made or obtained with the imposition of conditions that, together with Divestiture Actions (as defined below) undertaken, would reasonably be expected to have a Substantial Detriment (as defined below), (vii) no law, order or injunction that is in effect that enjoins or otherwise prohibits the completion of the Merger having been enacted, issued, promulgated, enforced or entered after Sept. 14, 2016, by a court or other governmental entity of competent jurisdiction, (viii) the accuracy of the representations and warranties contained in the Merger Agreement (subject to certain qualifications) and (ix) the performance by the parties of their respective obligations under the Merger Agreement in all material respects. Bayer has entered into a syndicated term loan facility agreement with Bank of America, N.A., Credit Suisse AG, London Branch, Goldman Sachs Bank USA, Goldman Sachs Lending Partners LLC, HSBC Bank plc, The Hong Kong and Shanghai Banking Corporation Limited and JPMorgan Chase Bank, N.A., London Branch, pursuant to which the lenders under such agreement have committed, upon certain terms and subject to certain conditions, to lend $56.9 billion , and the closing of the Merger is not subject to a financing condition. The Merger Agreement provides that Bayer is required to take all actions necessary to obtain antitrust approvals and completion of the CFIUS review process, including (i) agreeing to the sale, divestiture or other conveyance or holding separate of assets of Bayer or the company, (ii) permitting the company to sell, divest or otherwise convey or hold separate its assets, (iii) terminating or creating any relationship, contractual right or obligation of Bayer or the company or (iv) terminating any joint venture or other arrangement of Bayer or the company (each, a “Divestiture Action”). However, Bayer is not required to take (a) any Divestiture Action described in the foregoing clauses (i) or (ii) that, taken together with all other Divestiture Actions described in such clauses, would reasonably be likely to result in a one-year loss of net sales to Bayer, the company and their subsidiaries in excess of $1.6 billion in the aggregate (measured in accordance with the Merger Agreement) or (b) any Divestiture Action that, taken together with all other Divestiture Actions, would reasonably be likely to have a material adverse effect on the business, financial condition or results of operations of the consolidated agricultural businesses of Bayer, the company and their subsidiaries, taken as a whole (a “Substantial Detriment”). The company has agreed not to solicit alternative acquisition proposals. However, the company may, subject to the terms and conditions set forth in the Merger Agreement, furnish information to, and engage in discussions and negotiations with, a third party that makes an unsolicited acquisition proposal if the Board determines in good faith, after consultation with its outside counsel, that such acquisition proposal constitutes or could reasonably be expected to result in a Superior Proposal (as defined in the Merger Agreement) and that failure to take such action would be inconsistent with its fiduciary duties under applicable law. Prior to the time the Stockholder Approval is obtained, the Board may change its recommendation that stockholders adopt the Merger Agreement and/or cause the company to enter into an alternative acquisition agreement providing for a Superior Proposal if the Board determines in good faith, after consultation with its outside counsel, that, among other things, failure to do so would be inconsistent with its fiduciary duties under applicable law and the company complies with certain other specified conditions, including providing Bayer five business days to propose revisions to the Merger Agreement which would cause such Superior Proposal no longer to constitute a Superior Proposal. The Merger Agreement contains certain termination rights, including the right of the company to terminate the Merger Agreement in connection with entering into a definitive agreement providing for a Superior Proposal. However, in such circumstances and if the Board changes its recommendation or in certain circumstances in which the Stockholder Approval is not obtained and the company consummates an alternative acquisition agreement, the company would be obligated to pay to Bayer a termination fee of $1.85 billion , net of any expense reimbursement described below. Further, the company would be required to reimburse Bayer for certain expenses up to $150 million if the Merger Agreement is terminated because the Stockholder Approval is not obtained. In addition, either party may terminate the Merger Agreement if the Merger is not consummated by the “outside date” of the Merger Agreement, which is Sept. 14, 2017, but is subject to automatic extension to June 14, 2018, if one or more of the conditions relating to antitrust approvals, completion of CFIUS review and the absence of laws, orders and injunctions have not been satisfied or waived (but all other conditions have been satisfied or were capable of being satisfied). In the event that the Merger Agreement is terminated (1) as a result of an order imposed by a governmental antitrust entity or (2) due to passage of the outside date and, at the time that the outside date is reached, the antitrust-related closing conditions were not satisfied (but all other closing conditions were satisfied or were capable of being satisfied), then in each case, Bayer would be required to pay the company a termination fee of $2 billion . The Merger Agreement has been included to provide investors with information regarding its terms. It is not intended to provide any other factual information about the company, Bayer or their respective subsidiaries or affiliates. The representations, warranties and covenants contained in the Merger Agreement were made only for purposes of the Merger Agreement as of the specific dates therein, were solely for the benefit of the parties to the Merger Agreement, may be subject to limitations agreed upon by the contracting parties (including being qualified by confidential disclosures made for the purposes of allocating contractual risk among the parties to the Merger Agreement instead of establishing these matters as facts) and may be subject to standards of materiality applicable to the contracting parties that differ from those applicable to investors. Investors are not third-party beneficiaries under the Merger Agreement (except with respect to company stockholders’, optionholders’ and other awardholders’ right to receive the applicable consideration following the Effective Time) and should not rely on the representations, warranties and covenants or any descriptions thereof as characterizations of the actual state of facts or condition of the parties thereto or any of their respective subsidiaries or affiliates. Moreover, information concerning the subject matter of representations and warranties may change after the date of the Merger Agreement, which subsequent information may or may not be reflected in the company’s public disclosures. The foregoing description of the Merger and Merger Agreement does not purport to be complete and is qualified in its entirety by reference to the Merger Agreement, which is filed as Exhibit 2.1 to our Current Report on Form 8-K, filed with the SEC on Sept. 20, 2016. In connection with the Merger Agreement, the company has committed to pay third parties for transaction-related costs in fiscal years 2017 and 2018. The amounts, ranging from $84 million to $219 million in the aggregate, and the timing of payments are based upon different outcomes under the Merger Agreement. |
SIGNIFICANT ACCOUNTING POLICI37
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Aug. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation The accompanying consolidated financial statements of Monsanto and its subsidiaries were prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and include the assets, liabilities, revenues and expenses of all majority-owned subsidiaries over which the company exercises control and, when applicable, entities for which the company has a controlling financial interest or is the primary beneficiary. Intercompany accounts and transactions have been eliminated in consolidation. The company records income attributable to noncontrolling interest in the Statements of Consolidated Operations for any non-owned portion of consolidated subsidiaries. Noncontrolling interest is recorded within the equity section but separate from Monsanto’s equity in the Statements of Consolidated Financial Position. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make certain estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Estimates are adjusted to reflect actual experience when necessary. Significant estimates and assumptions affect many items in the consolidated financial statements. These include allowance for doubtful trade receivables, sales returns and allowances, inventory obsolescence, income tax liabilities and assets and related valuation allowances, asset impairments, valuations of goodwill and other intangible assets, employee benefit plan assets and liabilities, value of equity-based awards, customer incentive program liabilities, restructuring reserves, self-insurance reserves, environmental reserves, deferred revenue, contingencies, litigation, incentives, the allocation of corporate costs to segments and certain cash flow projections. Significant estimates and assumptions are also used to establish the fair value and useful lives of depreciable tangible and certain intangible assets. Actual results may differ from those estimates and assumptions, and such results may affect income, financial position or cash flows. |
Revenue Recognition | Revenue Recognition The company derives most of its revenue from three main sources: sales of branded conventional seed and branded seed with biotechnology traits; royalties and license revenues from licensed biotechnology traits and genetic material; and sales of agricultural chemical products. Monsanto follows the Revenue Recognition topic of the Accounting Standards Codification (“ASC”). Revenues from all seed sales are recognized when risks and rewards of ownership of the products are transferred. The company recognizes revenue on products it sells to distributors when, according to the terms of the sales agreement, delivery has occurred, performance is complete, expected returns can be reasonably estimated, and pricing is fixed or determinable. When the right of return exists in the company’s seed business, sales revenues are reduced at the time of sale to reflect expected returns. In order to estimate the expected returns, management analyzes historical returns, economic trends, market conditions and changes in customer demand. The Revenue Recognition topic of the ASC affects Monsanto’s recognition of license revenues from biotechnology traits sold through third-party seed companies. The company may enter into multiple element arrangements, including those where a customer purchases technology and licenses. When elements of a multiple element arrangement do not have stand alone value, Monsanto accounts for such elements as a combined unit of accounting. The company allocates revenue to each unit of accounting in a multiple element arrangement based upon the relative selling price of each deliverable. When applying the relative selling price method, Monsanto determines the selling price for each deliverable by using vendor-specific objective evidence (“VSOE”) of selling price, if it exists, or third-party evidence (“TPE”) of selling price. If neither VSOE nor TPE of selling price exists for a unit of accounting, Monsanto uses its best estimate of selling price for that unit of accounting. When Monsanto uses its best estimate to determine selling price, significant judgment is required. The significant assumptions used to estimate selling price for significant units of accounting may consist of cost, gross margin objectives or forecasted customer selling volumes. Changes in assumptions used to estimate selling price could result in a different allocation of arrangement consideration across the units of accounting within an arrangement. Revenue allocated to each unit of accounting is recognized when all revenue recognition criteria for that unit of accounting have been met. Biotechnology trait license revenue, including those within multiple element arrangements, is generally recognized over the contract period as third-party seed companies sell seed containing Monsanto traits, which can be from one year up to the related patent term. License revenue from the sale of intellectual property, including those within multiple element arrangements, is generally recognized upon commencement of the license term. Primarily in Brazil and Latin America, Monsanto has point-of-delivery collection systems for certain royalties for soybeans and cotton to record revenue when the grain containing Monsanto’s technology is delivered and commercialized at the grain handlers and collectibility is reasonably assured. Revenues for agricultural chemical products are recognized when title to the products is transferred. The company recognizes revenue on products it sells to distributors when, according to the terms of the sales agreements, delivery has occurred, performance is complete, no right of return exists unless required by law, and pricing is fixed or determinable. There are several additional conditions for recognition of revenue including that the collection of sales proceeds must be reasonably assured based on historical experience and current market conditions and that there must be no consequential remaining performance obligations under the sale or the royalty or license agreement. To reduce credit exposure primarily in Latin America, Monsanto collects payments on certain customer accounts in grain. In those circumstances in Argentina when Monsanto participates in the negotiation of the forward sales contract, Monsanto records revenue and related cost of sale for the grain on a net basis. In those circumstances in Brazil when Monsanto does not participate in the negotiation of the forward sales contract and does not take physical custody of the grain or assume the associated inventory risk, Monsanto does not record revenue or the related cost of sales for the grain. Such payments in grain are negotiated at or near the time Monsanto’s products are sold to the customers and are valued at the prevailing grain commodity prices. By entering into forward sales contracts with grain merchants, Monsanto mitigates the commodity price exposure from the time a contract is signed with a customer until the time a grain merchant collects the grain from the customer on Monsanto’s behalf. The grain merchant converts the grain to cash for Monsanto. These forward sales contracts do not qualify for hedge accounting under the Derivatives and Hedging topic of the ASC. Accordingly, the gain or loss on these derivatives is recognized in current earnings. |
Advertising Costs | Promotional, Advertising and Customer Incentive Program Costs Promotional and advertising costs are expensed as incurred and are included in selling, general and administrative expenses in the Statements of Consolidated Operations. Advertising costs were $64 million , $74 million and $90 million in 2016 , 2015 and 2014 , respectively. Customer incentive program costs are recorded in accordance with the Revenue Recognition topic of the ASC, based on specific performance criteria met by Monsanto’s customers, such as purchase volumes, promptness of payment and market share increases. In fiscal year 2016, the company introduced new Agricultural Productivity customer incentive programs providing certain customers price protection consideration if standard published prices are lowered from the price the distributor was charged on the eligible products on or before Apr. 30, 2016. The cost of customer incentive programs is generally recorded in net sales in the Statements of Consolidated Operations. The fair value of incentive programs earned by customers for services with separate identifiable benefit is generally recorded in selling, general and administrative expenses in the Statements of Consolidated Operations. The cost of incentive programs earned by distributors determined to be agents is generally recorded in selling, general and administrative expenses in the Statements of Consolidated Operations. As actual customer incentive program expenses are not known at the time of the sale, an estimate based on the best available information (such as historical experience and market research) is used as a basis for recording customer incentive program liabilities. Management analyzes and reviews the customer incentive program balances on a quarterly basis, and adjustments are recorded as appropriate. Under certain customer incentive programs, product performance and variations in weather can result in free product to customers. The associated cost of this free product is recognized as cost of goods sold in the Statements of Consolidated Operations. |
Research and Development Costs and Collaborative Arrangements | Research and Development Costs and Collaborative Arrangements The company accounts for research and development (“R&D”) costs in accordance with the Research and Development topic of the ASC. Under the Research and Development topic of the ASC, all R&D costs must be charged to expense as incurred. Accordingly, internal R&D costs are expensed as incurred. Third-party R&D costs are expensed when the contracted work has been performed or as milestone results are achieved. In process research and development (“IPR&D”) costs acquired in a business combination are recorded on the Statements of Consolidated Financial Position as indefinite-lived intangible assets until completion or abandonment of the associated R&D efforts. The costs of purchased IPR&D that have alternative future uses are capitalized and amortized over the estimated useful life of the asset. IPR&D intangible assets are subject to annual impairment tests. The costs associated with equipment or facilities acquired or constructed for R&D activities that have alternative future uses are capitalized and depreciated on a straight-line basis over the estimated useful life of the asset. The amortization and depreciation for such capitalized assets are charged to R&D expenses. Monsanto has entered into collaborations with third parties for the R&D and commercialization of agricultural products. The company accounts for costs incurred and revenue generated under these collaborative arrangements from transactions with third parties in accordance with the Collaborative Arrangements topic of the ASC. Under the Collaborative Arrangements topic of the ASC, all costs incurred and revenue generated from transactions with third parties shall be recorded in each entity’s respective income statement. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Management regularly assesses the likelihood that deferred tax assets will be recovered from future taxable income, and to the extent management believes that it is more likely than not that a deferred tax asset will not be realized, a valuation allowance is established. When a valuation allowance is established, increased or decreased, an income tax charge or benefit is included in the consolidated financial statements, and net deferred tax assets are adjusted accordingly. The net deferred tax assets as of Aug. 31, 2016 , and Aug. 31, 2015, represent the estimated future tax benefits to be received from future reductions of taxes payable. Under the Income Taxes topic of the ASC, in order to recognize the benefit of an uncertain tax position, the taxpayer must be more likely than not of sustaining the position, and the measurement of the benefit is calculated as the largest amount that is more than 50 percent likely to be realized upon resolution of the position. Tax authorities regularly examine the company’s returns in the jurisdictions in which it does business. Management regularly assesses the tax risk of the company’s return filing positions and believes its accruals for uncertain tax positions are adequate as of Aug. 31, 2016 , and Aug. 31, 2015 . |
Cash and Cash Equivalents | Cash and Cash Equivalents All highly liquid investments (defined as investments with a maturity of three months or less when purchased) are considered cash equivalents. |
Inventory Valuation | Inventory Valuation and Obsolescence Inventories are stated at the lower of cost or market value for inventory measured using last-in, first-out (“LIFO”) method. Inventories are stated at the lower of cost or net realizable value for inventory measured under the first-in, first-out (“FIFO”) or average cost method. An inventory reserve would permanently reduce the cost basis of inventory. Inventories are valued as follows: Seeds and Genomics : Actual cost is used to value raw materials such as treatment chemicals and packaging, as well as goods in process. Costs for substantially all finished goods, which include the cost of carryover crops from the previous year, are valued at weighted-average actual cost. Weighted-average actual cost includes field growing and harvesting costs, plant conditioning and packaging costs and manufacturing overhead costs. Agricultural Productivity : Actual cost is used to value raw materials and supplies. Standard cost, which approximates actual cost, is used to value finished goods and goods in process. Variances, exclusive of abnormally low volume and operating performance, are capitalized into inventory. Standard cost includes direct labor and raw materials and manufacturing overhead based on normal capacity. The cost of the Agricultural Productivity segment inventories in the United States (approximately 11 percent of total company inventory as of Aug. 31, 2016 , and Aug. 31, 2015 ) is determined by using the LIFO method, which generally reflects the effects of inflation or deflation on cost of goods sold sooner than other inventory cost methods. The cost of inventories outside of the United States, as well as supplies inventories in the United States, is determined by using the FIFO method; FIFO is used outside of the United States because the requirements in the countries where Monsanto maintains inventories generally do not allow the use of the LIFO method. Inventories at FIFO approximate current cost. In accordance with the Inventory topic of the ASC, Monsanto records abnormal amounts of idle facility expense, freight, handling costs and wasted material (spoilage) as current period charges and allocates fixed production overhead to the costs of conversion based on the normal capacity of the production facilities. Monsanto establishes allowances for obsolescence of inventory equal to the difference between the cost of inventory (if higher) and the estimated market value, based on assumptions about future demand and market conditions. The company regularly evaluates the adequacy of its inventory obsolescence reserves. If economic and market conditions are different from those anticipated, inventory obsolescence could be materially different from the amounts provided for in the company’s consolidated financial statements. If inventory obsolescence is higher than expected, cost of goods sold will be increased, and inventory, net income and shareowners’ equity will be reduced. |
Goodwill | Goodwill Monsanto follows the guidance of the Business Combinations topic of the ASC in recording the goodwill arising from a business combination as the excess of purchase price and related costs over the fair value of identifiable assets acquired and liabilities assumed. Under the Intangibles – Goodwill and Other topic of the ASC, goodwill is not amortized and is subject to annual impairment tests. A fair-value-based test is applied at the reporting unit level, which is generally at or one level below the operating segment level. The test compares the fair value of the company’s reporting units to the carrying value of those reporting units. This test requires various judgments and estimates. The fair value of goodwill is determined using an estimate of future cash flows of the reporting unit and a risk-adjusted discount rate to compute a net present value of future cash flows. An adjustment to goodwill will be recorded for any goodwill that is determined to be impaired. Impairment of goodwill is measured as the excess of the carrying amount of goodwill over the fair values of recognized assets and liabilities of the reporting unit. Goodwill is tested for impairment at least annually, or more frequently if events or circumstances indicate it might be impaired. |
Other Intangible Assets | Other Intangible Assets Other intangible assets consist primarily of acquired seed germplasm, intellectual property, trademarks and customer relationships. Seed germplasm is the genetic material used in new seed varieties. Germplasm is amortized on a straight-line basis over useful lives ranging from five years for completed technology germplasm to a maximum of 30 years for certain core technology germplasm. Completed technology germplasm consists of seed hybrids and varieties that are commercially available. Core technology germplasm is the collective germplasm of parental seeds and has a longer useful life as it is used to develop new seed hybrids and varieties. Acquired intellectual property includes intangible assets related to acquisitions and licenses through which Monsanto has acquired the rights to various research and discovery technologies. These encompass intangible assets such as enabling processes and data libraries necessary to support the integrated genomics and biotechnology platforms. These intangible assets have alternative future uses and are amortized over useful lives ranging from two years to 18 years . The useful lives of acquired germplasm and acquired intellectual property are determined based on consideration of several factors including the nature of the asset, its expected use, length of licensing agreement or patent and the period over which benefits are expected to be received from the use of the asset. Monsanto has a broad portfolio of trademarks for herbicide products, traits, agricultural seeds and vegetable seeds, and patents for its traits, formulations used to make its herbicides and various manufacturing processes. The amortization period for acquired trademarks and patents ranges from two years to 30 years . Trademarks are amortized on a straight-line basis over their useful lives. The useful life of a trademark is determined based on the estimated market-life of the associated company, brand or product. Patents are amortized on a straight-line basis over the period in which the patent is legally protected, the period over which benefits are expected to be received, or the estimated market-life of the product with which the patent is associated, whichever is shorter. In conjunction with acquisitions, Monsanto obtains access to the distribution channels and customer relationships of the acquired companies. These relationships are expected to provide economic benefits to Monsanto. The amortization period for customer relationships ranges from three years to 20 years , and amortization is recognized on a straight-line basis over these periods. The amortization period of customer relationships represents management’s best estimate of the expected usage or consumption of the economic benefits of the acquired assets, which is based on the company’s historical experience of customer attrition rates. In accordance with the Property, Plant and Equipment topic of the ASC, all amortizable intangible assets are assessed for impairment whenever events indicate a possible loss. At a minimum, Monsanto assesses all amortizable intangible assets annually. Such an assessment involves estimating undiscounted cash flows over the remaining useful life of the intangible. If the review indicates that undiscounted cash flows are less than the recorded value of the intangible asset, the carrying amount of the intangible is reduced by the estimated cash-flow shortfall on a discounted basis, and a corresponding loss is charged to the Statement of Consolidated Operations. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is recorded at cost. Additions and improvements are capitalized; these include all material, labor and engineering costs to design, install or improve the asset and interest costs on construction projects. Such costs are not depreciated until the assets are placed in service. Routine repairs and maintenance are expensed as incurred. The cost of plant and equipment is depreciated using the straight-line method over the estimated useful life of the asset — weighted-average periods of approximately 25 years for buildings, ten years for machinery and equipment and five years for software. In compliance with the Property, Plant and Equipment topic of the ASC, long-lived assets are reviewed for impairment whenever in management’s judgment conditions indicate a possible loss. Such impairment tests compare estimated undiscounted cash flows to the recorded value of the asset. If an impairment is indicated, the asset is written down to its fair value or, if fair value is not readily determinable, to an estimated fair value based on discounted cash flows. |
Asset Retirement Obligations and Environmental Remediation Liabilities | Asset Retirement Obligations and Environmental Remediation Liabilities Monsanto follows the Asset Retirement and Environmental Obligations topic of the ASC, which addresses financial accounting for and financial reporting of a liability for an asset retirement obligation and an environmental remediation liability that results from the normal operation of a long-lived asset. Monsanto has asset retirement obligations with carrying amounts totaling $78 million and $68 million included in other liabilities on the Statements of Consolidated Financial Position as of Aug. 31, 2016 , and Aug. 31, 2015 , respectively, primarily relating to its manufacturing facilities. In accordance with the Asset Retirement and Environmental Obligations topic of the ASC, Monsanto accrues these costs in the period when responsibility is established and when such costs are probable and reasonably estimable based on current law and existing technology. Postclosure and remediation costs for hazardous waste sites and other waste facilities at operating locations are accrued over the estimated life of the facility, as part of its anticipated closure cost. |
Litigation and Other Contingencies | Litigation and Other Contingencies Monsanto is involved from time to time in various intellectual property, biotechnology, tort, contract, antitrust, shareowner claims, environmental and other litigation, claims and legal proceedings; environmental remediation; and government investigations. Management routinely assesses the likelihood of adverse judgments or outcomes to those matters, as well as ranges of probable losses, to the extent losses are reasonably estimable. In accordance with the Contingencies topic of the ASC, accruals for such contingencies are recorded to the extent that management concludes their occurrence is probable and the financial impact, should an adverse outcome occur, is reasonably estimable. Disclosure for specific legal contingencies is provided if the likelihood of occurrence is at least reasonably possible, and the exposure is considered material to the consolidated financial statements. In making determinations of likely outcomes of litigation matters, management considers many factors. These factors include, but are not limited to, past experience, scientific and other evidence, interpretation of relevant laws or regulations and the specifics and status of each matter. If the assessment of the various factors changes, the estimates may change. That may result in the recording of an accrual or a change in a previously recorded accrual. Predicting the outcome of claims and litigation and estimating related costs and exposure involves substantial uncertainties that could cause actual costs to vary materially from estimates and accruals. |
Guarantees | Guarantees Monsanto is subject to various commitments under contractual and other commercial obligations. The company recognizes liabilities for contingencies and commitments under the Guarantees topic of the ASC. |
Foreign Currency Translation | Foreign Currency Translation The financial statements for most of Monsanto’s ex-U.S. operations are translated to U.S. dollars at current exchange rates. For assets and liabilities, the fiscal year-end rate is used. For revenues, expenses, gains and losses, an approximation of the average rate for the period is used. Unrealized currency adjustments in the Statements of Consolidated Financial Position are accumulated in equity as a component of accumulated other comprehensive loss. The financial statements of ex-U.S. operations in highly inflationary economies are translated at either current or historical exchange rates at the time they are deemed highly inflationary, in accordance with the Foreign Currency Matters topic of the ASC . These currency adjustments and the remeasurement of assets and liabilities of ex-U.S. operations with the U.S. dollar designated as their functional currency are included in net income. Based on the Consumer Price Index (“CPI”), Monsanto designated Venezuela as a hyperinflationary country effective June 1, 2009. The functional currency of the company’s foreign entities in Argentina is the U.S. dollar. Significant translation exposures include the Brazilian real, the Mexican peso, the European euro, South African rand, Indian rupee and Ukrainian hryvnia. Currency restrictions are not expected to have a significant effect on Monsanto’s cash flow, liquidity or capital resources. |
Derivatives and Other Financial Instruments | Derivatives and Other Financial Instruments Monsanto uses financial derivative instruments and natural hedges to limit its exposure to changes in foreign currency exchange rates, commodity prices and interest rates. Monsanto does not use financial derivative instruments for the purpose of speculating in foreign currencies, commodities or interest rates. Monsanto continually monitors its underlying market risk exposures and believes that it can modify or adapt its hedging strategies as needed. In accordance with the Derivatives and Hedging topic of the ASC, all derivatives, whether designated for hedging relationships or not, are recognized in the Statements of Consolidated Financial Position at their fair value. At the time a derivative contract is entered into, Monsanto designates each derivative as: (1) a hedge of the fair value of a recognized asset or liability (a fair-value hedge), (2) a hedge of a forecasted transaction or of the variability of cash flows that are to be received or paid in connection with a recognized asset or liability (a cash-flow hedge), (3) a foreign-currency fair-value or cash-flow hedge (a foreign-currency hedge), (4) a foreign-currency hedge of the net investment in a foreign subsidiary or (5) a derivative that does not qualify for hedge accounting treatment. Changes in the fair value of a derivative that is considered highly effective, and that is designated as and qualifies as a fair-value hedge, along with changes in the fair value of the hedged asset or liability that are attributable to the hedged risk, are recorded in current-period net income. Changes in the fair value of a derivative that is considered highly effective, and that is designated as and qualifies as a cash-flow hedge, to the extent that the hedge is effective, are recorded in accumulated other comprehensive loss until net income is affected by the variability from cash flows of the hedged item. Any hedge ineffectiveness is included in current-period net income. Changes in the fair value of a derivative that is considered highly effective, and that is designated as and qualifies as a foreign-currency hedge, are recorded either in current-period net income or in accumulated other comprehensive loss, depending on whether the hedging relationship satisfies the criteria for a fair-value or cash-flow hedge. Changes in the fair value of a derivative that is considered highly effective, and that is designated as a foreign-currency hedge of the net investment in a foreign subsidiary, are recorded in the accumulated foreign currency translation. Changes in the fair value of derivative instruments not designated as hedges are reported in current-period net income. Monsanto formally and contemporaneously documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and its strategy for undertaking various hedge transactions. This includes linking all derivatives that are designated as fair-value, cash-flow or foreign-currency hedges either to specific assets and liabilities on the Statements of Consolidated Financial Position, or to firm commitments or forecasted transactions. Monsanto formally assesses a hedge at its inception and on an ongoing basis thereafter to determine whether the hedging relationship between the derivative and the hedged item is still highly effective, and whether it is expected to remain highly effective in future periods, in offsetting changes in fair value or cash flows. When derivatives cease to be highly effective hedges, Monsanto discontinues hedge accounting prospectively. |
RESTRUCTURING RESTRUCTURING (Ta
RESTRUCTURING RESTRUCTURING (Tables) | 12 Months Ended |
Aug. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Restructuring charges were recorded in the Statements of Consolidated Operations as follows: Year Ended Aug. 31, (Dollars in millions) 2016 2015 Cost of Goods Sold (1) $ (67 ) $ (100 ) Restructuring Charges (2) (297 ) (393 ) Loss from Continuing Operations Before Income Taxes $ (364 ) $ (493 ) Income Tax Provision 101 155 Net Income $ (263 ) $ (338 ) (1) The $67 million of restructuring charges in cost of goods sold for the fiscal year ended Aug. 31, 2016, is split by segment as follows: $1 million in Agricultural Productivity and $66 million in Seeds and Genomics. The $100 million of restructuring charges in cost of goods sold is recorded to the Seeds and Genomics segment for the fiscal year ended Aug. 31, 2015. (2) The $297 million of restructuring charges for the fiscal year ended Aug. 31, 2016, is split by segment as follows: $36 million in Agricultural Productivity and $261 million in Seeds and Genomics. The $393 million of restructuring charges for the fiscal year ended Aug. 31, 2015, is split by segment as follows: $13 million in Agricultural Productivity and $380 million in Seeds and Genomics. The following table displays the pretax charges of $364 million and $493 million incurred by segment under the 2015 Restructuring Plan for the fiscal years ended Aug. 31, 2016 , and Aug. 31, 2015, respectively, as well as the cumulative pretax charges of $857 million under the 2015 Restructuring Plan. Year Ended Aug. 31, 2016 Year Ended Aug. 31, 2015 Cumulative Amount through Aug. 31, 2016 (Dollars in millions) Seeds and Genomics Agricultural Productivity Total Seeds and Genomics Agricultural Productivity Total Seeds and Genomics Agricultural Productivity Total Work Force Reductions $ 179 $ 10 $ 189 $ 204 $ 13 $ 217 $ 383 $ 23 $ 406 Facility Closures/Exit Costs 23 5 28 — — — 23 5 28 Asset Impairments and Write-offs: Property, plant and equipment 41 2 43 81 — 81 122 2 124 Inventory 42 — 42 51 — 51 93 — 93 Goodwill and other assets 42 20 62 144 — 144 186 20 206 Total Restructuring Charges, Net $ 327 $ 37 $ 364 $ 480 $ 13 $ 493 $ 807 $ 50 $ 857 |
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the activities related to the company’s 2015 Restructuring Plan. (Dollars in millions) Work Force Reductions (1) Facility Closures/Exit Costs Asset Impairments Total Restructuring charges recognized in fourth quarter 2015 $ 217 $ — $ 276 $ 493 Asset impairments and write-offs — — (276 ) (276 ) Ending Liability as of Aug. 31, 2015 $ 217 $ — $ — $ 217 Net restructuring charges recognized in fiscal year 2016 $ 189 28 147 364 Cash payments (164 ) (28 ) — (192 ) Asset impairments and write-offs — — (147 ) (147 ) Foreign currency impact 2 — — 2 Ending Liability as of Aug. 31, 2016 $ 244 $ — $ — $ 244 (1) The restructuring liability balance included $17 million and $47 million that were recorded in long-term restructuring reserves in the Statements of Consolidated Financial Position as of Aug. 31, 2016, and Aug. 31, 2015, respectively. |
RECEIVABLES (Tables)
RECEIVABLES (Tables) | 12 Months Ended |
Aug. 31, 2016 | |
Receivables [Abstract] | |
Allowance For Doubtful Trade Receivables | The following table displays a roll forward of the allowance for doubtful trade receivables for fiscal years 2014 , 2015 and 2016 . (Dollars in millions) Balance Aug. 31, 2013 $ 68 Additions — charged to expense 44 Other (1) (40 ) Balance Aug. 31, 2014 $ 72 Additions — charged to expense 44 Other (1) (57 ) Balance Aug. 31, 2015 $ 59 Additions — charged to expense 82 Other (1) (47 ) Balance Aug. 31, 2016 $ 94 (1) Includes reclassifications to long-term, write-offs, recoveries and foreign currency translation adjustments. |
Allowance For Doubtful Long Term Receivables | The following table displays a roll forward of the allowance for credit losses related to long-term customer receivables for fiscal years 2014 , 2015 and 2016 . (Dollars in millions) Balance Aug. 31, 2013 $ 104 Incremental Provision 11 Recoveries (4 ) Write-Offs (15 ) Other (1) 29 Balance Aug. 31, 2014 $ 125 Incremental Provision 9 Recoveries (3 ) Write-Offs (28 ) Other (1) 17 Balance Aug. 31, 2015 $ 120 Incremental Provision 78 Recoveries (2 ) Write-Offs (4 ) Other (1) 36 Balance Aug. 31, 2016 $ 228 (1) Includes reclassifications from the allowance for current receivables and foreign currency translation adjustments. |
Trade Receivables By Customer Concentration | The following table sets forth Monsanto’s gross trade receivables by geographic area as of Aug. 31, 2016 , and Aug. 31, 2015 , by significant customer concentrations: As of Aug. 31, (Dollars in millions) 2016 2015 Argentina $ 302 $ 298 Asia-Pacific 113 185 Brazil 234 181 Canada 27 43 Europe-Africa 550 498 Mexico 147 202 United States 574 230 Other 73 58 Gross Trade Receivables 2,020 1,695 Less: Allowance for Doubtful Accounts (94 ) (59 ) Trade Receivables, Net $ 1,926 $ 1,636 |
CUSTOMER FINANCING PROGRAMS (Ta
CUSTOMER FINANCING PROGRAMS (Tables) | 12 Months Ended |
Aug. 31, 2016 | |
CUSTOMER FINANCING PROGRAMS [Abstract] | |
Customer Financing Programs | Monsanto participates in customer financing programs as follows: As of Aug. 31, (Dollars in millions) 2016 2015 Transactions that Qualify for Sales Treatment U.S. agreement to sell trade receivables (1) Outstanding balance $ 511 $ 851 Maximum future payout under recourse provisions 19 125 European and Latin American agreements to sell trade receivables (2) Outstanding balance $ 60 $ 124 Maximum future payout under recourse provisions 35 22 Agreements with Lenders (3) Outstanding balance $ 73 $ 75 Maximum future payout under the guarantee 57 62 |
Customer Financing Programs, Sales of Receivables | The gross amounts of receivables sold under transactions that qualify for sales treatment are: Gross Amounts of Receivables Sold Year Ended Aug. 31, (Dollars in millions) 2016 2015 2014 Transactions that Qualify for Sales Treatment U.S. agreement to sell trade receivables (1) $ 511 $ 852 $ 457 European and Latin American agreements to sell trade receivables (2) 96 165 78 (1) Monsanto has agreements in the United States to sell trade receivables, both with and without recourse, up to a maximum outstanding balance of $1.4 billion 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. 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 on the company’s historical collection experience 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, Latin America and Europe. Monsanto provides various levels of recourse through guarantees of the accounts in the event of customer default. The term of the guarantee is equivalent to the term of the customer loans. The liability for the guarantees is recorded at an amount that approximates fair value, based on the company’s historical collection experience with customers that participate in the program and a current assessment of credit exposure. If performance is required under the guarantee, Monsanto may retain amounts that are subsequently collected from customers. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Aug. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments and Cost Method Investments | For such investments that were accounted for under the equity method and cost basis included in other assets in the Statements of Consolidated Financial Position, the amounts are summarized in the following table: As of Aug. 31, (Dollars in millions) 2016 2015 Equity Method Investments $ 152 $ 114 Cost Basis Investments 94 90 Total $ 246 $ 204 |
INVENTORY (Tables)
INVENTORY (Tables) | 12 Months Ended |
Aug. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | Components of inventory are: As of Aug. 31, (Dollars in millions) 2016 2015 Finished Goods $ 1,404 $ 1,603 Goods In Process 1,489 1,627 Raw Materials and Supplies 498 420 Inventory at FIFO Cost 3,391 3,650 Excess of FIFO over LIFO Cost (150 ) (154 ) Total $ 3,241 $ 3,496 |
Inventory Obsolescence Reserve | The following table displays a roll forward of the inventory obsolescence reserve for fiscal years 2014 , 2015 and 2016 . (Dollars in millions) Balance Aug. 31, 2013 $ 408 Additions — charged to expense 331 Deductions and other (1) (324 ) Balance Aug. 31, 2014 $ 415 Additions — charged to expense 390 Deductions and other (1) (371 ) Balance Aug. 31, 2015 $ 434 Additions — charged to expense 410 Deductions and other (1) (376 ) Balance Aug. 31, 2016 $ 468 (1) Deductions and other includes disposals and foreign currency translation adjustments. |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Aug. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property Plant And Equipment Table | Components of property, plant and equipment are as follows: As of Aug. 31, (Dollars in millions) 2016 2015 Land and Improvements $ 645 $ 643 Buildings and Improvements 2,225 2,143 Machinery and Equipment 5,871 5,653 Computer Software 1,008 893 Construction In Progress and Other 1,367 1,096 Total Property, Plant and Equipment 11,116 10,428 Less: Accumulated Depreciation 5,885 5,455 Property, Plant and Equipment, Net $ 5,231 $ 4,973 |
GOODWILL AND OTHER INTANGIBLE44
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Aug. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Net Carrying Amount of Goodwill | Changes in the net carrying amount of goodwill for fiscal years 2015 and 2016 , by segment, are as follows: (Dollars in millions) Seeds and Genomics Agricultural Productivity Total Balance Aug. 31, 2014 $ 4,262 $ 57 $ 4,319 Dispositions (75 ) — (75 ) Effect of foreign currency translation adjustments (183 ) — (183 ) Balance Aug. 31, 2015 $ 4,004 $ 57 $ 4,061 Reclass to assets held for sale (41 ) — (41 ) Effect of foreign currency translation adjustments and other adjustments 4 (4 ) — Balance Aug. 31, 2016 $ 3,967 $ 53 $ 4,020 |
Other Intangible Assets Information | Information regarding the company’s other intangible assets is as follows: As of Aug. 31, 2016 As of Aug. 31, 2015 (Dollars in millions) Carrying Amount Accumulated Amortization Net Carrying Amount Accumulated Amortization Net Acquired Germplasm $ 1,070 $ (778 ) $ 292 $ 1,074 $ (750 ) $ 324 Acquired Intellectual Property 1,042 (593 ) 449 1,168 (598 ) 570 Trademarks 334 (152 ) 182 353 (152 ) 201 Customer Relationships 301 (223 ) 78 318 (212 ) 106 Other 65 (33 ) 32 176 (146 ) 30 Total Other Intangible Assets, Finite Lives $ 2,812 $ (1,779 ) $ 1,033 $ 3,089 $ (1,858 ) $ 1,231 In Process Research & Development, Indefinite Lives 92 — 92 101 — 101 Total Other Intangible Assets $ 2,904 $ (1,779 ) $ 1,125 $ 3,190 $ (1,858 ) $ 1,332 |
Intangible Assets Future Amortization Expense | The estimated intangible asset amortization expense for each of the five succeeding fiscal years is as follows: (Dollars in millions) Amount 2017 $ 146 2018 109 2019 115 2020 112 2021 100 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Aug. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Components of Income From Continuing Operations Before Income Taxes | The components of income from continuing operations before income taxes are: Year Ended Aug. 31, (Dollars in millions) 2016 2015 2014 United States $ 1,457 $ 2,092 $ 2,436 Outside United States 534 1,069 1,391 Total $ 1,991 $ 3,161 $ 3,827 |
Components Of Income Tax Provision | The components of income tax provision from continuing operations are: Year Ended Aug. 31, (Dollars in millions) 2016 2015 2014 Current: U.S. Federal $ 393 $ 675 $ 648 U.S. State 43 69 65 Outside United States 231 408 410 Total Current $ 667 $ 1,152 $ 1,123 Deferred: U.S. Federal (109 ) (91 ) 41 U.S. State (7 ) (2 ) (2 ) Outside United States 144 (195 ) (84 ) Total Deferred 28 (288 ) (45 ) Total $ 695 $ 864 $ 1,078 |
Tax Rate Reconciliation | Factors causing Monsanto’s income tax provision from continuing operations to differ from the U.S. federal statutory rate are: Year Ended Aug. 31, (Dollars in millions) 2016 2015 2014 U.S. Federal Statutory Rate $ 697 $ 1,106 $ 1,339 U.S. Domestic Manufacturing Deduction (64 ) (87 ) (75 ) U.S. R&D Tax Credit (34 ) (30 ) (12 ) U.S. State Income Taxes 28 39 45 Lower Taxes on Foreign Operations (243 ) (209 ) (230 ) Valuation Allowances 308 13 12 Adjustment for Unrecognized Tax Benefits (6 ) (4 ) (8 ) Other 9 36 7 Income Tax Provision $ 695 $ 864 $ 1,078 |
Deferred Income Tax | Deferred income tax balances are related to: As of Aug. 31, (Dollars in millions) 2016 2015 Net Operating Loss and Other Carryforwards $ 438 $ 323 Employee Fringe Benefits 331 305 Royalties 189 154 Restructuring and Impairment Reserves 155 242 Inventories 91 173 Allowance for Doubtful Accounts 77 72 Environmental and Litigation Reserves 70 69 Other 407 307 Valuation Allowance (346 ) (68 ) Total Deferred Tax Assets $ 1,412 $ 1,577 Property, Plant and Equipment 533 539 Intangibles 334 361 Total Deferred Tax Liabilities 867 900 Net Deferred Tax Assets $ 545 $ 677 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows: (Dollars in millions) 2016 2015 Balance Sept. 1 $ 135 $ 152 Increases for Prior Year Tax Positions 17 12 Decreases for Prior Year Tax Positions (11 ) (14 ) Increases for Current Year Tax Positions 8 7 Settlements (1 ) — Lapse of Statute of Limitations (23 ) (12 ) Foreign Currency Translation (2 ) (10 ) Balance Aug. 31 $ 123 $ 135 |
Tax Years | For Monsanto’s major tax jurisdictions, the tax years that remain subject to examination are shown below: Jurisdiction U.S. Federal 2013-2016 U.S. State 2000-2016 Argentina 2001-2016 Brazil 2006-2016 |
DEBT AND OTHER CREDIT ARRANGE46
DEBT AND OTHER CREDIT ARRANGEMENTS (Tables) | 12 Months Ended |
Aug. 31, 2016 | |
Debt Disclosure [Abstract] | |
Short-Term Debt | Short-Term Debt As of Aug. 31, (Dollars in millions) 2016 2015 Current Portion of Long-Term Debt $ 902 $ 308 Mandatorily Redeemable Shares of Brazil VIE 113 — Notes Payable to Banks 72 307 Commercial Paper 500 — Total Short-Term Debt $ 1,587 $ 615 |
Long-Term Debt Table | Long-Term Debt As of Aug. 31, (Dollars in millions) 2016 2015 Floating Rate Senior Notes, Due 2016 (1) $ — $ 399 1.150% Senior Notes, Due 2017 (1) — 498 5.125% Senior Notes, Due 2018 (1) 299 299 1.850% Senior Notes, Due 2018 (1) 299 298 2.125% Senior Notes, Due 2019 (1) 498 497 2.750% Senior Notes, Due 2021 (1) 496 496 2.200% Senior Notes, Due 2022 (1) 249 248 3.375% Senior Notes, Due 2024 (1) 744 744 5.500% Senior Notes, Due 2025 (1) 289 287 2.850% Senior Notes, Due 2025 (1) 297 296 4.200% Senior Notes, Due 2034 (1) 492 492 5.500% Senior Notes, Due 2035 (1) 393 393 5.875% Senior Notes, Due 2038 (1) 246 245 3.600% Senior Notes, Due 2042 (1) 247 247 4.650% Senior Notes, Due 2043 (1) 297 297 4.400% Senior Notes, Due 2044 (1) 982 982 3.950% Senior Notes, Due 2045 (1) 493 493 4.300% Senior Notes, Due 2045 (1) 361 361 4.700% Senior Notes, Due 2064 (1) 735 734 Mandatorily Redeemable Shares of Brazil VIE — 96 Other (including Capital Leases) 36 27 Total Long-Term Debt $ 7,453 $ 8,429 (1) Amounts are net of unamortized discounts and debt issuance costs. |
Interest Expense on Debt | The information regarding interest expense below reflects Monsanto’s interest expense on debt, mandatorily redeemable shares, customer financing and the amortization of debt issuance costs and interest rate swaps: Year Ended Aug. 31, (Dollars in millions) 2016 2015 2014 Interest Cost Incurred $ 468 $ 460 $ 275 Less: Capitalized on Construction 32 27 27 Interest Expense $ 436 $ 433 $ 248 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | |
Aug. 31, 2016 | Aug. 31, 2015 | |
Fair Value Disclosures [Abstract] | ||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following tables set forth by level Monsanto’s assets and liabilities disclosed at fair value on a recurring basis as of Aug. 31, 2016 , and Aug. 31, 2015 . As required by the Fair Value Measurements and Disclosures topic of the ASC, assets and liabilities are classified in their entirety based on the lowest level of input that is a significant component of the fair value measurement. Monsanto’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of fair value assets and liabilities within the fair value hierarchy levels. Fair Value Measurements at Aug. 31, 2016, Using (Dollars in millions) Level 1 Level 2 Level 3 Net Balance Assets at Fair Value: Cash equivalents $ 1,081 $ — $ — $ 1,081 Short-term investments 60 — — 60 Equity securities 13 — — 13 Derivative assets related to: Foreign currency — 10 — 10 Commodity contracts 9 9 — 18 Total Assets at Fair Value $ 1,163 $ 19 $ — $ 1,182 Liabilities at Fair Value: Short-term debt instruments (1) — 1,476 113 1,589 Long-term debt instruments (1) — 7,834 — 7,834 Derivative liabilities related to: Foreign currency — 15 — 15 Commodity contracts 32 20 — 52 Interest rate contracts — 41 — 41 Total Liabilities at Fair Value $ 32 $ 9,386 $ 113 $ 9,531 (1) Debt instruments, excluding mandatorily redeemable shares, 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, 2015, Using (Dollars in millions) Level 1 Level 2 Level 3 Net Balance Assets at Fair Value: Cash equivalents $ 3,213 $ — $ — $ 3,213 Short-term investments 47 — — 47 Equity securities 17 — — 17 Derivative assets related to: Foreign currency — 40 — 40 Commodity contracts 1 7 — 8 Interest rate contracts — 2 — 2 Total Assets at Fair Value $ 3,278 $ 49 $ — $ 3,327 Liabilities at Fair Value: Short-term debt instruments (1) $ — $ 619 $ — $ 619 Long-term debt instruments (1) — 8,028 96 8,124 Derivative liabilities related to: Foreign currency — 11 — 11 Commodity contracts 35 50 — 85 Total Liabilities at Fair Value $ 35 $ 8,708 $ 96 $ 8,839 (1) Debt instruments, excluding mandatorily redeemable shares, 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 long-term debt instruments for the year ended Aug. 31, 2016 . (Dollars in millions) Balance Aug. 31, 2015 (1) $ 96 Reclass to short-term (96 ) Balance Aug. 31, 2016 $ — (1) Includes 350,000 mandatorily redeemable shares outstanding with a par value of 1,000 Brazilian reais (approximately $274 ) as of Aug. 31, 2015. The following table summarizes the change in fair value of the Level 3 short-term debt instruments for the year ended Aug. 31, 2016 . (Dollars in millions) Balance Aug. 31, 2015 $ — Reclass from long-term 96 Accretion expense 14 Payments (10 ) Effect of foreign currency translation adjustments 13 Balance Aug. 31, 2016 (1) $ 113 (1) Includes 350,000 mandatorily redeemable shares outstanding with a par value of 1,000 Brazilian reais (approximately $309 ) as of Aug. 31, 2016. |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Aug. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments (Notional Amounts) | The notional amounts of the company’s derivative instruments outstanding as of Aug. 31, 2016 , and Aug. 31, 2015 , are as follows: As of Aug. 31, (Dollars in millions) 2016 2015 Derivatives Designated as Hedges: Foreign exchange contracts $ 388 $ 456 Commodity contracts 484 591 Interest rate contracts 150 150 Total Derivatives Designated as Hedges $ 1,022 $ 1,197 Derivatives Not Designated as Hedges: Foreign exchange contracts $ 1,096 $ 1,926 Commodity contracts 223 163 Interest rate contracts 116 — Total Derivatives Not Designated as Hedges $ 1,435 $ 2,089 |
Fair Values of Derivative Instruments | The net presentation of the company’s derivative instruments outstanding is as follows: As of Aug. 31, 2016 (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: Other current assets Derivatives designated as hedges: Commodity contracts (1) $ 9 $ (29 ) $ (20 ) $ 20 $ — Foreign exchange contracts 4 — 4 — 4 Derivatives not designated as hedges: Commodity contracts (1) 9 (6 ) 3 — 3 Foreign exchange contracts 6 — 6 — 6 Total other current assets 28 (35 ) (7 ) 20 13 $ 214 $ 227 Other assets Derivatives designated as hedges: Commodity contracts (1) — (4 ) (4 ) 4 — Total other assets — (4 ) (4 ) 4 — 489 489 Total Asset Derivatives $ 28 $ (39 ) $ (11 ) $ 24 $ 13 Liability Derivatives: Other current assets Derivatives designated as hedges: Commodity contracts (1) $ 29 $ (29 ) $ — $ — $ — Derivatives not designated as hedges: Commodity contracts (1) 6 (6 ) — — — Total other current assets 35 (35 ) — — — Other assets Derivatives designated as hedges: Commodity contracts (1) 4 (4 ) — — — Total other assets 4 (4 ) — — — Miscellaneous short-term accruals Derivatives designated as hedges: Commodity contracts 11 — 11 — 11 Foreign currency contracts 8 — 8 — 8 Interest rate contracts 41 — 41 — 41 Derivatives not designated as hedges: Foreign exchange contracts 7 — 7 — 7 Total miscellaneous short-term accruals 67 — 67 — 67 $ 937 $ 1,004 Other liabilities Derivatives designated as hedges: Commodity contracts 2 — 2 — 2 Total other liabilities 2 — 2 — 2 316 318 Total Liability Derivatives $ 108 $ (39 ) $ 69 $ — $ 69 (1) As allowed by the Derivatives and Hedging topic of the ASC, commodity derivative assets and liabilities have been offset by collateral subject to an enforceable master netting arrangement or similar arrangement. Therefore, these commodity contracts that are in an asset or liability position are included in asset accounts within the Statements of Consolidated Financial Position. As of Aug. 31, 2015 (in millions) Gross Amounts Recognized Gross Amounts Offset in the Statement of Consolidated Financial Position Net Amounts Included in the Statement of Consolidated Financial Position Collateral Pledged Net Amounts Reported in the Statement of Consolidated Financial Position Other Items Included in the Statement of Consolidated Financial Position Statement of Consolidated Financial Position Balance Asset Derivatives: Miscellaneous receivables Derivatives designated as hedges: Interest rate contracts $ 2 $ — $ 2 $ — $ 2 Total miscellaneous receivables 2 — 2 — 2 $ 801 $ 803 Other current assets Derivatives designated as hedges: Commodity contracts (1) — (29 ) (29 ) 29 — Foreign exchange contracts 25 — 25 — 25 Derivatives not designated as hedges: Commodity contracts 7 — 7 — 7 Foreign exchange contracts 14 — 14 — 14 Total other current assets 46 (29 ) 17 29 46 146 192 Other assets Derivatives designated as hedges: Commodity contracts (1) 1 (6 ) (5 ) 6 1 Foreign exchange contracts 1 — 1 — 1 Total other assets 2 (6 ) (4 ) 6 2 608 610 Total Asset Derivatives $ 50 $ (35 ) $ 15 $ 35 $ 50 Liability Derivatives: Other current assets Derivatives designated as hedges: Commodity contracts (1) $ 29 $ (29 ) $ — $ — $ — Total other current assets 29 (29 ) — — — Other assets Derivatives designated as hedges: Commodity contracts (1) 6 (6 ) — — — Total other assets 6 (6 ) — — — Miscellaneous short-term accruals Derivatives designated as hedges: Commodity contracts 27 — 27 — 27 Derivatives not designated as hedges: Commodity contracts 9 — 9 — 9 Foreign exchange contracts 11 — 11 — 11 Total miscellaneous short-term accruals 47 — 47 — 47 $ 744 $ 791 Other liabilities Derivatives designated as hedges: Commodity contracts 14 — 14 — 14 Total other liabilities 14 — 14 — 14 331 345 Total Liability Derivatives $ 96 $ (35 ) $ 61 $ — $ 61 (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 are as follows: Amount of Gain (Loss) Recognized in AOCL (1) (Effective Portion) Amount of Gain (Loss) Recognized in Income (2)(3) Year Ended Aug. 31, Year Ended Aug. 31, (Dollars in millions) 2016 2015 2014 2016 2015 2014 Income Statement Classification Derivatives Designated as Hedges: Fair value hedges: Commodity contracts (3) $ 7 $ — $ (1 ) Cost of goods sold Cash flow hedges: Foreign exchange contracts $ (17 ) $ 51 $ (4 ) 8 31 3 Net sales Foreign exchange contracts 3 26 1 21 9 (3 ) Cost of goods sold Commodity contracts (12 ) (92 ) (106 ) (113 ) (81 ) (14 ) Cost of goods sold Interest rate contracts (3) (42 ) (85 ) (2 ) (15 ) (13 ) (12 ) Interest expense Total Derivatives Designated as Hedges (68 ) (100 ) (111 ) (92 ) (54 ) (27 ) Derivatives Not Designated as Hedges: Foreign exchange contracts (4) (36 ) (73 ) (1 ) Other expense, net Commodity contracts 4 (3 ) 4 Net sales Commodity contracts 1 — 21 Cost of goods sold Total Derivatives Not Designated as Hedges (31 ) (76 ) 24 Total Derivatives $ (68 ) $ (100 ) $ (111 ) $ (123 ) $ (130 ) $ (3 ) (1) Accumulated Other Comprehensive Loss (“AOCL”) (2) For derivatives designated as cash flow hedges under the Derivatives and Hedging topic of the ASC, this represents the effective portion of the gain (loss) reclassified from AOCL into income during the period. (3) The gain or loss on derivatives designated as hedges from ineffectiveness included in current earnings is not significant during 2016 , 2015 or 2014 . No gains or losses were excluded from the assessment of hedge effectiveness during 2016 , 2015 or 2014 . (4) Gain or loss on foreign exchange contracts not designated as hedges was offset by a foreign currency transaction loss of $178 million , a gain of $42 million and a loss of $96 million during fiscal years 2016 , 2015 and 2014 , respectively. |
POSTRETIREMENT BENEFITS - PEN49
POSTRETIREMENT BENEFITS - PENSIONS (Tables) | 12 Months Ended |
Aug. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost | The components of pension cost for these plans were: Year Ended Aug. 31, 2016 Year Ended Aug. 31, 2015 Year Ended Aug. 31, 2014 (Dollars in millions) U.S. Outside the U.S. Total U.S. Outside the U.S. Total U.S. Outside the U.S. Total Service Cost for Benefits Earned during the Year $ 61 $ 12 $ 73 $ 64 $ 12 $ 76 $ 61 $ 12 $ 73 Interest Cost on Benefit Obligation 93 7 100 88 7 95 90 9 99 Assumed Return on Plan Assets (1) (150 ) (9 ) (159 ) (151 ) (8 ) (159 ) (135 ) (10 ) (145 ) Amortization of Unrecognized Net Loss 46 6 52 50 6 56 62 4 66 Curtailment and Settlement Charge — 2 2 — 2 2 — 3 3 Other Adjustments — 2 2 — — — — 1 1 Total Net Periodic Benefit Cost $ 50 $ 20 $ 70 $ 51 $ 19 $ 70 $ 78 $ 19 $ 97 (1) Generally the calculated value of assets reflects non-liability matching gains/(losses) over a 4 to 5 year period. |
Changes Recognized in OCI Pension | The other changes in plan assets and benefit obligations recognized in accumulated other comprehensive loss for the year ended Aug. 31, 2016 , were: (Dollars in millions) U.S. Outside the U.S. Total Current Year Actuarial Loss $ 100 $ 11 $ 111 Recognition of Actuarial Loss (1)(2) (46 ) (8 ) (54 ) Total Recognized in Accumulated Other Comprehensive Loss $ 54 $ 3 $ 57 (1) The U.S. Plans ’ actuarial gains/(losses) are amortized over a 9 to 16 year period which represents the average future working lifetime for active participants. (2) Plans outside the U.S. generally amortize actuarial gains/(losses) over a 5 to 21 year period which represents the average future working lifetime for active participants. |
Assumptions Used to Determine Pension Costs | The following assumptions, calculated on a weighted-average basis, were used to determine pension costs for the principal plans in which Monsanto employees participated: Year Ended Aug. 31, 2016 Year Ended Aug. 31, 2015 Year Ended Aug. 31, 2014 U.S. Outside the U.S. U.S. Outside the U.S. U.S. Outside the U.S. Discount Rate 4.33 % 2.66 % 4.04 % 3.01 % 4.44 % 3.62 % Assumed Long-Term Rate of Return on Assets 7.50 % 5.60 % 7.50 % 6.20 % 7.50 % 6.12 % Annual Rate of Salary Increase (for plans that base benefits on final compensation level) 4.00 % 3.76 % 4.00 % 3.92 % 4.00 % 3.95 % |
Funded Status | Monsanto uses a measurement date of August 31 for its pension plans. The funded status of the pension plans as of Aug. 31, 2016 , and Aug. 31, 2015 , was as follows: U.S. Outside the U.S. Total Year Ended Aug. 31, Year Ended Aug. 31, Year Ended Aug. 31, (Dollars in millions) 2016 2015 2016 2015 2016 2015 Change in Benefit Obligation: Benefit obligation at beginning of period $ 2,190 $ 2,196 $ 250 $ 273 $ 2,440 $ 2,469 Service cost 61 64 12 12 73 76 Interest cost 93 88 7 7 100 95 Plan participants’ contributions — — 2 2 2 2 Actuarial loss 203 13 20 9 223 22 Benefits paid (137 ) (171 ) (13 ) (8 ) (150 ) (179 ) Plan Amendments — — (6 ) — (6 ) — Settlements / curtailments — — (12 ) (7 ) (12 ) (7 ) Currency gain — — (1 ) (38 ) (1 ) (38 ) Other 17 — 13 — 30 — Benefit Obligation at End of Period $ 2,427 $ 2,190 $ 272 $ 250 $ 2,699 $ 2,440 Change in Plan Assets: Fair value of plan assets at beginning of period $ 2,142 $ 2,298 $ 170 $ 190 $ 2,312 $ 2,488 Actual return on plan assets 253 11 8 9 261 20 Employer contributions (1) 66 4 12 15 78 19 Plan participants’ contributions — — 2 2 2 2 Settlements — — (8 ) (7 ) (8 ) (7 ) Benefits paid (1) (137 ) (171 ) (13 ) (8 ) (150 ) (179 ) Currency gain — — — (31 ) — (31 ) Other — — 11 — 11 — Plan Assets at End of Period $ 2,324 $ 2,142 $ 182 $ 170 $ 2,506 $ 2,312 Net Liability Recognized $ 103 $ 48 $ 91 $ 80 $ 194 $ 128 (1) Employer contributions and benefits paid include $13 million and $11 million paid from employer assets for unfunded plans in fiscal years 2016 and 2015, respectively. |
Assumptions Used to Determine Pension Benefit Obligation | Weighted-average assumptions used to determine benefit obligations as of Aug. 31, 2016 , and Aug. 31, 2015 , were as follows: U.S. Outside the U.S. Year Ended Aug. 31, Year Ended Aug. 31, 2016 2015 2016 2015 Discount Rate 3.43% 4.33% 1.93% 2.66% Rate of Compensation Increase 4.00% 4.00% 3.60% 3.76% |
Projected Benefit Obligations In Excess of Plan Assets | The projected benefit obligation (“PBO”) and the fair value of the plan assets for pension plans with PBOs in excess of plan assets as of Aug. 31, 2016 , and Aug. 31, 2015 , were as follows: U.S. Outside the U.S. Total As of Aug. 31, As of Aug. 31, As of Aug. 31, (Dollars in millions) 2016 2015 2016 2015 2016 2015 PBO $ 2,426 $ 73 $ 250 $ 216 $ 2,676 $ 289 Fair Value of Plan Assets with PBOs in Excess of Plan Assets 2,324 — 158 135 2,482 135 |
Accumulated Benefit Obligations In Excess of Plan Assets | The PBO, ABO and the fair value of the plan assets for pension plans with ABOs in excess of plan assets as of Aug. 31, 2016 , and Aug. 31, 2015 , were as follows: U.S. Outside the U.S. Total As of Aug. 31, As of Aug. 31, As of Aug. 31, (Dollars in millions) 2016 2015 2016 2015 2016 2015 PBO $ 96 $ 73 $ 130 $ 110 $ 226 $ 183 ABO 91 69 108 90 199 159 Fair Value of Plan Assets with ABOs in Excess of Plan Assets — — 46 34 46 34 |
Net Amount Recognized | As of Aug. 31, 2016 , and Aug. 31, 2015 , amounts recognized in the Statements of Consolidated Financial Position were included in the following financial position accounts: Net Amount Recognized U.S. Outside the U.S. Total As of Aug. 31, As of Aug. 31, As of Aug. 31, (Dollars in millions) 2016 2015 2016 2015 2016 2015 Other Assets $ — $ (26 ) $ (8 ) $ (8 ) $ (8 ) $ (34 ) Miscellaneous Short-Term Accruals 9 7 5 5 14 12 Postretirement Liabilities 94 67 94 83 188 150 Net Liability Recognized $ 103 $ 48 $ 91 $ 80 $ 194 $ 128 |
Pre-Tax Components Recognized in AOCI Pension | The following table provides a summary of the pretax components of the amount recognized in accumulated other comprehensive loss: U.S. Outside the U.S. Total As of Aug. 31, As of Aug. 31, As of Aug. 31, (Dollars in millions) 2016 2015 2016 2015 2016 2015 Net Prior Service Cost $ — $ — $ (6 ) $ (1 ) $ (6 ) $ (1 ) Net Loss 482 428 61 53 543 481 Total $ 482 $ 428 $ 55 $ 52 $ 537 $ 480 |
Pension Plan Asset Allocation United States | U.S. Plan: The asset allocations for Monsanto’s U.S. pension plan as of Aug. 31, 2016 , and Aug. 31, 2015 , and the target allocation range for fiscal year 2017 , by asset category, are as follows. Target Allocation Range (1) Percentage of Plan Assets As of Aug. 31, Asset Category 2017 2016 2015 Public Equity Securities 44-54% 48.3 % 47.9 % Private Equity Investments 2-8% 4.5 % 4.8 % Debt Securities 34-48% 42.4 % 42.7 % Real Estate 2-8% 4.8 % 4.3 % Other 0-3% — % 0.3 % Total 100.0 % 100.0 % (1) The target allocation range may change as the funded status of the plan increases/decreases. |
Pension Plan Asset Allocation Foreign | Plans Outside the United States: The weighted-average asset allocation for Monsanto’s pension plans outside of the United States as of Aug. 31, 2016 , and Aug. 31, 2015 , and the weighted-average target allocation for fiscal year 2017 , by asset category, are as follows. Percentage of Plan Assets Target Allocation (1) As of Aug. 31, Asset Category 2017 2016 2015 Equity Securities 37.2 % 30.9 % 32.0 % Debt Securities 44.6 % 49.9 % 49.3 % Other 18.2 % 19.2 % 18.7 % Total 100.0 % 100.0 % 100.0 % (1) Monsanto’s plans outside the United States have a wide range of target allocations, and therefore the 2017 target allocations shown above reflect a weighted-average calculation of the target allocations of each of the plans. |
United States Pension Plan Asset Fair Value | U.S. Plan: The fair values of our U.S. defined benefit pension plan investments as of Aug. 31, 2016 , and Aug. 31, 2015 , by asset category, are as follows: Fair Value Measurements at Aug. 31, 2016 (Dollars in millions) Level 1 Level 2 Level 3 Cash Collateral Offset (1) Balance as of Aug. 31, 2016 Investments at Fair Value: Short Term Investments $ 31 $ 41 $ — $ — $ 72 Debt Securities: U.S. Government Debt — 296 — — 296 U.S. State & Municipal Debt — 19 — — 19 Foreign Government Debt — 9 — — 9 U.S. Corporate Debt — 386 — — 386 Foreign Corporate Debt — 65 — — 65 U.S. Term Bank Loans — 1 — — 1 Common and Preferred Stock: Domestic Small-Capitalization 15 — — — 15 Domestic Large-Capitalization 311 — — — 311 International Developed Markets 167 — — — 167 International Emerging Markets 39 1 — — 40 Private Equity Investments — — 104 — 104 Real Estate Investments — — 112 — 112 Futures 3 — — (3 ) — Common and Preferred Stock Sold Short — (56 ) — 60 4 Total Assets in the Fair Value Hierarchy $ 566 $ 762 $ 216 $ 57 $ 1,601 Collective Investment Funds Measured at Net Asset Value as a Practical Expedient 717 Collateral Held Under Securities Lending Agreement Measured at Net Asset Value as a Practical Expedient 166 Total Investments at Fair Value $ 2,484 (1) Futures derivative assets and common and preferred stock sold short have been offset by cash collateral held by the counterparty. Fair Value Measurements at Aug. 31, 2015 (Dollars in millions) Level 1 Level 2 Level 3 Cash Collateral Offset (1) Balance as of Aug. 31, 2015 Investments at Fair Value: Short Term Investments $ 19 — $ — $ — $ 19 Debt Securities: U.S. Government Debt — 265 — — 265 U.S. State & Municipal Debt — 17 — — 17 Foreign Government Debt — 10 — — 10 U.S. Corporate Debt — 362 — — 362 Foreign Corporate Debt — 70 — — 70 U.S. Term Bank Loans — 1 — — 1 Common and Preferred Stock: Domestic Small-Capitalization 30 — — — 30 Domestic Large-Capitalization 266 — — — 266 International Developed Markets 154 — — — 154 International Emerging Markets 30 1 — — 31 Private Equity Investments — — 103 — 103 Partnership/Joint Venture Interests — — 32 — 32 Real Estate Investments — — 93 — 93 Futures 4 — — (4 ) — Common and Preferred Stock Sold Short — (52 ) — 53 1 Total Assets in the Fair Value Hierarchy $ 503 $ 674 $ 228 $ 49 $ 1,454 Collective Investment Funds Measured at Net Asset Value as a Practical Expedient 679 Collateral Held Under Securities Lending Agreement Measured at Net Asset Value as a Practical Expedient 251 Total Investments at Fair Value $ 2,384 (1) Futures derivative assets and common and preferred stock sold short have been offset by cash collateral held by the counterparty. |
United States Pension plan Asset Level 3 Rollforward | The following table summarizes the changes in fair value of the Level 3 investments as of Aug. 31, 2015 , and Aug. 31, 2016 . (Dollars in millions) Private Equity Investments Partnership Interests Real Estate Investments Mortgage-Backed Securities Fund Investments Total Balance Aug. 31, 2014 $ 87 $ 32 $ 94 $ 8 $ 221 Purchases 26 — 6 — 32 Sales (23 ) — (20 ) (8 ) (51 ) Realized/unrealized gains 13 — 13 — 26 Balance Aug. 31, 2015 $ 103 $ 32 $ 93 $ — $ 228 Net Unrealized Gains Still Held Included in Earnings (1) $ 12 $ 1 $ 9 $ — $ 22 (Dollars in millions) Private Equity Investments Partnership Interests Real Estate Investments Mortgage-Backed Securities Fund Investments Total Balance Aug. 31, 2015 $ 103 $ 32 $ 93 $ — $ 228 Purchases 21 — 16 — 37 Sales (22 ) (32 ) (6 ) — (60 ) Realized/unrealized gains 2 — 9 — 11 Balance Aug. 31, 2016 $ 104 $ — $ 112 $ — $ 216 Net Unrealized Gains Still Held Included in Earnings (1) $ (7 ) $ (32 ) $ 10 $ — $ (29 ) (1) Represents the amount of total gains for the period attributable to change in unrealized gains (losses) relating to assets and liabilities classified as Level 3 that are still held as of Aug. 31, 2016 , and Aug. 31, 2015 . |
Investments At Fair Value To Plan Assets Reconciliation | The following table reconciles the investments at fair value to the plan assets as of Aug. 31, 2016 . (Dollars in millions) Total Investments at Fair Value $ 2,484 Liability to return collateral held under securities lending agreement (166 ) Non-interest bearing cash 3 Accrued income / (expense) 7 Other Liabilities and Receivables (4 ) Plan Assets at the End of the Period $ 2,324 |
Foreign Pension Plan Asset Fair Value | Plans Outside the United States: The fair values of our defined benefit pension plan investments outside of the United States as of Aug. 31, 2016 , and Aug. 31, 2015 , by asset category, are as follows: Fair Value Measurements at Aug. 31, 2016 (Dollars in millions) Level 1 Level 2 Level 3 Balance as of Aug. 31, 2016 Short Term Investments $ 1 $ — $ — $ 1 Debt Securities — Government and Corporate Debt — 79 — 79 Common and Preferred Stock 45 — — 45 Insurance-Backed Securities — — 42 42 Total Assets in the Fair Value Hierarchy $ 46 $ 79 $ 42 $ 167 Collective Investment Funds Measured at Net Asset Value as a Practical Expedient 15 Total Investments at Fair Value $ 182 Fair Value Measurements at Aug. 31, 2015 (Dollars in millions) Level 1 Level 2 Level 3 Balance as of Aug. 31, 2015 Short Term Investments $ 2 $ — $ — $ 2 Debt Securities — Government and Corporate Debt — 9 — 9 Common and Preferred Stock 42 — — 42 Insurance-Backed Securities — — 31 31 Interest in Pooled Funds: Common and preferred stock funds — 5 — 5 Government debt funds — 8 — 8 Corporate debt funds — 59 — 59 Total Assets in the Fair Value Hierarchy $ 44 $ 81 $ 31 $ 156 Collective Investment Funds Measured at Net Asset Value as a Practical Expedient 14 Total Investments at Fair Value $ 170 |
Foreign Pension plan Asset Level 3 Rollforward | The following table summarizes the changes in fair value of the Level 3 investments as of Aug. 31, 2015 , and Aug. 31, 2016 . (Dollars in millions) Insurance-Backed Securities Balance Aug. 31, 2014 $ 25 Purchases 6 Balance Aug. 31, 2015 $ 31 Purchases 5 Settlements $ (6 ) Net transfers into Level 3 $ 12 Balance Aug. 31, 2016 $ 42 |
Summary of Unfunded Commitments and Redemption Features Measured Using NAV | The following tables summarize unfunded commitments and redemption features for investments which fair value is measured using the net asset value per share practical expedient and Level 3 assets as of Aug. 31, 2016, and 2015 respectively. Unfunded Commitments and Redemption Features at Aug. 31, 2016 (Dollars in millions) Reported Value Unfunded Commitments Redemption Frequency (if currently eligible) Redemption Notice Period Collective Investment Funds Measured at Net Asset Value as a Practical Expedient $ 717 N/A Daily Daily Collateral Held Under Securities Lending Agreement Measured at Net Asset Value as a Practical Expedient $ 166 N/A Daily Daily Private Equity Investments $ 104 $ 53 None N/A Real Estate Investments $ 112 $ 34 None, 1st bus. day of qtr, at qtr-end N/A, 45 Days Unfunded Commitments and Redemption Features at Aug. 31, 2015 (Dollars in Millions) Reported Value Unfunded Commitments Redemption Frequency (if currently eligible) Redemption Notice Period Collective Investment Funds Measured at Net Asset Value as a Practical Expedient $ 679 N/A Daily Daily Collateral Held Under Securities Lending Agreement Measured at Net Asset Value as a Practical Expedient $ 251 N/A Daily Daily Private Equity Investments $ 103 $ 53 None N/A Partnerships/Joint Venture Interests $ 32 $ — At qtr-end 30 Days Real Estate Investments $ 93 $ 15 None, 1st bus. day of qtr, at qtr-end N/A, 45 Days |
Expected Cash Flows Pension | The expected employer contributions and benefit payments are shown in the following table for the pension plans: (Dollars in millions) U.S. Outside the U.S. Employer Contributions 2017 (funded Plans) $ 60 $ 6 Benefits Paid Directly by Employer 2017 (unfunded Plans) 9 4 Benefit Payments (1) 2017 195 26 2018 182 13 2019 181 15 2020 180 14 2021 179 16 2022-2026 840 74 |
POSTRETIREMENT BENEFITS - HEA50
POSTRETIREMENT BENEFITS - HEALTH CARE AND OTHER POSTEMPLOYMENT BENEFITS (Tables) | 12 Months Ended |
Aug. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Net Periodic Cost Postretirement | The cost components of these plans were: Year Ended Aug. 31, (Dollars in millions) 2016 2015 2014 Service Cost for Benefits Earned During the Period $ 7 $ 7 $ 7 Interest Cost on Benefit Obligation 6 6 7 Amortization of Prior Service Credit — (1 ) (1 ) Amortization of Actuarial Gain (4 ) (4 ) (13 ) Total Net Periodic Benefit Cost $ 9 $ 8 $ — |
Changes Recognized in OCI Postretirement | The other changes in plan assets and benefit obligations recognized in accumulated other comprehensive loss for the years ended Aug. 31, 2016 , and Aug. 31, 2015 , were: Year Ended Aug. 31, (Dollars in millions) 2016 2015 Actuarial Loss $ 27 $ 2 Amortization of Prior Service Credit (1) — 1 Amortization of Actuarial Gain (1) 4 4 Total Loss Recognized in Accumulated Other Comprehensive Loss $ 31 $ 7 (1) For other postretirement benefits the actuarial gains/(losses) and prior service credit are amortized over a seven to 14 year period which represents the average future working lifetime for active participants. |
Assumptions Used to Determine Postretirement Costs | The following assumptions, calculated on a weighted-average basis, were used to determine the postretirement costs for the U.S. plans in which Monsanto employees participated: Year Ended Aug. 31, 2016 2015 2014 Discount Rate Postretirement 3.85% 3.60% 3.95% Discount Rate Postemployment 2.30% 2.40% 2.55% Initial Trend Rate for Health Care Costs 5.50% 6.00% 6.50% Ultimate Trend Rate for Health Care Costs 5.00% 5.00% 5.00% |
One Percent Effect on Postretirement Costs and Benefit Obligation | A one percentage-point change in assumed health care cost trend rates would have the following effects: (Dollars in millions) 1 Percentage-Point Increase 1 Percentage-Point Decrease Effect on Total of Service and Interest Cost $1 $(1) Effect on Postretirement Benefit Obligation $4 $(4) |
Benefit Obligations Postretirement | The status of the postretirement health care, life insurance and employee disability benefit plans in which Monsanto employees participated was as follows for the periods indicated: Year Ended Aug. 31, (Dollars in millions) 2016 2015 Change in Benefit Obligation: Benefit obligation at beginning of period $ 176 $ 189 Service cost 7 7 Interest cost 6 6 Actuarial loss 27 2 Plan participant contributions 5 5 Medicare Part D subsidy receipts — 1 Benefits paid (32 ) (32 ) Currency impact — (2 ) Benefit Obligation at End of Period $ 189 $ 176 |
Assumptions Used to Determine Postretirement Benefit Obligation | Year Ended Aug. 31, 2016 2015 Discount Rate Postretirement 3.00% 3.85% Discount Rate Postemployment 1.75% 2.30% Initial Trend Rate for Health Care Costs (1) 7.50% 5.50% Ultimate Trend Rate for Health Care Costs 4.50% 5.00% (1) As of Aug. 31, 2016 , this rate is assumed to decrease to 4.5 percent for 2023 and remain at that level thereafter. |
Postretirement Amounts Recognized in Statements Of Consolidated Financial Position | As of Aug. 31, 2016 , and Aug. 31, 2015 , amounts recognized in the Statements of Consolidated Financial Position were as follows: As of Aug. 31, (Dollars in millions) 2016 2015 Miscellaneous Short-Term Accruals $ 27 $ 22 Postretirement Liabilities 162 154 Total Liability Recognized $ 189 $ 176 |
Pre-Tax Components Recognized in AOCI Postretirement | The following table provides a summary of the pretax components of the amount recognized in accumulated other comprehensive loss during the period. Year Ended Aug. 31, (Dollars in millions) 2016 2015 Actuarial Loss/(Gain) $ 14 $ (17 ) Prior Service Credit — — Total Income Recognized in Accumulated Other Comprehensive Loss/(Gain) $ 14 $ (17 ) |
Expected Cash Flows Postretirement | Information about the expected cash flows for the other postretirement benefit plans follows: (Dollars in millions) Total Benefits Paid Directly by Employer 2017 $ 27 Benefit Payments (1)(2) 2017 27 2018 24 2019 21 2020 20 2021 19 2022-2026 74 (1) Benefit payments are net of expected federal subsidy receipts related to prescription drug benefits granted under the Medicare Prescription Drug Improvement and Modernization Act of 2003, which are estimated to be less than $1 million annually. (2) Expected benefit payments include benefits paid directly by employer for unfunded plans. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Aug. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Components of Stock Based Compensation | The following table shows the components of stock-based compensation in the Statements of Consolidated Operations and Statements of Consolidated Cash Flows. Year Ended Aug. 31, (Dollars in millions, except per share amounts) 2016 2015 2014 Cost of Goods Sold $ 14 $ 8 $ 8 Selling, General and Administrative Expenses 70 80 82 Research and Development Expenses 28 31 31 Restructuring Charges (10 ) — — Total Stock-Based Compensation Expense Included in Operating Charges 102 119 121 Loss from Continuing Operations Before Income Taxes (102 ) (119 ) (121 ) Income Tax Benefit 38 38 40 Net Loss $ (64 ) $ (81 ) $ (81 ) Basic Loss per Share $ (0.14 ) $ (0.17 ) $ (0.16 ) Diluted Loss per Share $ (0.14 ) $ (0.17 ) $ (0.15 ) Excess Tax Benefits $ 16 $ 44 $ 72 |
Rollforward of Stock Options | A summary of the status of Monsanto’s stock options for the periods from Sept. 1, 2013, through August 31, 2016, follows: Options Outstanding Weighted-Average Exercise Price Balance Outstanding Sept. 1, 2013 15,863,887 $ 65.59 Granted 2,302,786 84.97 Exercised (4,537,028 ) 54.72 Forfeited (192,010 ) 90.06 Balance Outstanding Aug. 31, 2014 13,437,635 72.23 Granted 1,730,040 112.94 Exercised (2,439,135 ) 56.47 Forfeited (241,786 ) 75.56 Balance Outstanding Aug. 31, 2015 12,486,754 80.88 Granted 2,264,950 91.39 Exercised (1,502,763 ) 97.51 Forfeited (359,487 ) 92.65 Balance Outstanding Aug. 31, 2016 12,889,454 $ 85.56 |
Restricted Stock | A summary of the status of Monsanto’s restricted stock, restricted stock units and directors’ deferred stock compensation plans for fiscal year 2016 follows in the tables below: Restricted Stock Weighted-Average Grant Date Fair Values Restricted Stock Units Weighted-Average Grant Date Fair Values Directors’ Deferred Stock Weighted-Average Grant Date Fair Value Nonvested as of Aug. 31, 2015 4,042 $ 111.37 1,939,822 $ 99.74 — $ — Granted 9,893 91.29 822,423 87.85 23,504 94.87 Vested (6,428 ) 97.73 (730,696 ) 90.28 (22,410 ) 94.83 Forfeitures — — (342,631 ) 97.18 (1,094 ) 95.80 Nonvested as of Aug. 31, 2016 7,507 $ 96.58 1,688,918 $ 98.56 — $ — Pre-tax unrecognized compensation expense, net of estimated forfeitures as applicable (dollars in millions) $ — $ 70 $ — Remaining weighted-average period of expense recognition/requisite service periods (in years) 2.17 1.42 — |
Weighted Average and Fair Value | Weighted-average grant-date fair value during fiscal year Total fair value of equity vested during fiscal year (Dollars in millions, except per share amounts) 2016 2015 2014 2016 2015 2014 Restricted stock $ 91.29 $ 115.65 $ 108.10 $ 1 $ — $ 1 Restricted stock units $ 87.85 $ 108.42 $ 102.10 $ 66 $ 52 $ 32 Directors’ deferred stock $ 94.87 $ 115.65 $ 98.38 $ 2 $ 2 $ — |
Assumptions Used To Value Stock Options | The following assumptions are used to calculate the estimated value of employee stock options: Lattice-binomial Assumptions 2016 2015 2014 Expected Dividend Yield 1.9 % 1.7 % 1.7 % Expected Volatility 23-35% 20-35% 19-36% Weighted-Average Volatility 27.5 % 25.9 % 27.5 % Risk-Free Interest Rates 1.40-2.05% 1.56-2.11% 0.70-2.34% Weighted-Average Risk-Free Interest Rate 1.78 % 1.99 % 1.66 % Expected Option Life (in years) 7 7 6 |
ACCUMULATED OTHER COMPREHENSI52
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Aug. 31, 2016 | |
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 Balance as of Aug. 31, 2014 $ (731 ) $ 5 $ (167 ) $ (221 ) $ (1,114 ) Other comprehensive loss before reclassifications (1,596 ) — (54 ) (94 ) (1,744 ) Amounts reclassified from accumulated other comprehensive loss — (3 ) 31 29 57 Net current-period other comprehensive loss (1,596 ) (3 ) (23 ) (65 ) (1,687 ) Balance as of Aug. 31, 2015 (2,327 ) 2 (190 ) (286 ) (2,801 ) Other comprehensive income (loss) before reclassifications 35 (2 ) (42 ) (83 ) (92 ) Amounts reclassified from accumulated other comprehensive loss — 1 55 29 85 Net current-period other comprehensive income (loss) 35 (1 ) 13 (54 ) (7 ) Balance as of Aug. 31, 2016 $ (2,292 ) $ 1 $ (177 ) $ (340 ) $ (2,808 ) |
Reclassification out of Accumulated Other Comprehensive Income | The following table provides additional information regarding items reclassified out of accumulated other comprehensive loss into earnings during the twelve months ended Aug. 31, 2016 , and Aug. 31, 2015. Amount Reclassified from Accumulated Other Comprehensive Loss Affected Line Item in the Statement of Consolidated Operations (Dollars in millions) Year Ended Aug. 31, 2016 2015 Available for Sale Securities: Loss (Gain) on Sale of Security $ 2 $ (4 ) Other expense, net 2 (4 ) Total before income taxes (1 ) 1 Income tax provision $ 1 $ (3 ) Net of tax Cash Flow Hedges: Foreign Exchange Contracts $ (8 ) $ (31 ) Net sales Foreign Exchange Contracts (21) (9) Cost of goods sold Commodity Contracts 113 81 Cost of goods sold Interest Rate Contracts 15 13 Interest expense 99 54 Total before income taxes (44 ) (23 ) Income tax provision $ 55 $ 31 Net of tax Postretirement Benefit Items: Amortization of Unrecognized Net Loss $ 16 $ 16 Inventory / Cost of goods sold (1) Amortization of Unrecognized Net Loss 31 31 Selling, general and administrative expenses 47 47 Total before income taxes (18 ) (18 ) Income tax provision $ 29 $ 29 Net of tax Total Reclassifications For The Period $ 85 $ 57 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 $16 million of net periodic benefit cost to inventory, of which approximately $16 million was recognized in cost of goods sold during each of the twelve months ended Aug. 31, 2016 , and Aug. 31, 2015 , respectively. See Note 16 — Postretirement Benefits - Pensions — and Note 17 — Postretirement Benefits - Health Care and Other Postemployment Benefits — for additional information. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Aug. 31, 2016 | |
Earnings Per Share [Abstract] | |
Basic Earnings Per Share Table | Year Ended Aug. 31, (In millions) 2016 2015 2014 Weighted-Average Number of Common Shares 442.7 476.9 519.3 Dilutive Potential Common Shares 4.4 4.5 5.6 Antidilutive Potential Common Shares 5.4 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 3.2 0.1 — |
SUPPLEMENTAL CASH FLOW (Tables)
SUPPLEMENTAL CASH FLOW (Tables) | 12 Months Ended |
Aug. 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Cash Payments for Interest and Taxes | Cash payments for interest and taxes during fiscal years 2016 , 2015 and 2014 , were as follows: Year Ended Aug. 31, (Dollars in millions) 2016 2015 2014 Interest $ 387 $ 343 $ 158 Taxes 841 992 1,019 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Aug. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Obligations | The following table sets forth the company’s estimates of future payments under contracts as of Aug. 31, 2016 . Payments Due by Fiscal Year Ending Aug. 31, (Dollars in millions) Total 2017 2018 2019 2020 2021 2022 and Total Debt, including Capital Lease Obligations $ 9,040 $ 1,587 $ 306 $ 804 $ 5 $ 500 $ 5,838 Interest Payments Relating to Long-Term Debt and Capital Lease Obligations (1) 6,320 310 301 282 269 267 4,891 Operating Lease Obligations 520 151 98 76 61 47 87 Purchase Obligations: Commitments to purchase inventories 2,550 1,282 375 335 243 183 132 Commitments to purchase breeding research 495 55 55 55 55 55 220 R&D alliances and joint venture obligations 150 48 37 26 18 17 4 Uncompleted additions to property 271 271 — — — — — Other Liabilities: Postretirement liabilities (2) 106 106 — — — — — Unrecognized tax benefits (3) 70 — — — — — — Environmental liabilities 189 12 16 11 6 6 138 Total Contractual Obligations $ 19,711 $ 3,822 $ 1,188 $ 1,589 $ 657 $ 1,075 $ 11,310 (1) For variable rate debt, interest is calculated using the applicable rates as of Aug. 31, 2016 . (2) Includes the company’s planned pension and other postretirement benefit contributions for 2017 . The actual amounts funded in 2017 may differ from the amounts listed above. Contributions in 2018 and beyond are excluded as those amounts are unknown. Refer to Note 16 — Postretirement Benefits - Pensions — and Note 17 — Postretirement Benefits - Health Care and Other Postemployment Benefits — for more information. (3) Unrecognized tax benefits relate to reserves for uncertain tax positions recorded under the Income Taxes topic of the ASC. The company is unable to reasonably predict the timing of tax settlements, as tax audits can involve complex issues, and the resolution of those issues may span multiple years, particularly if subject to negotiation or litigation. See Note 12 — Income Taxes — for more information. |
Discounted and Undiscounted Environmental And Litigation Liabilities | The following table provides a detailed summary of the discounted and undiscounted amounts included in the reserve for environmental and litigation liabilities: (Dollars in millions) Aggregate Undiscounted Amount $ 405 Discounted Portion: Expected payment (undiscounted) for: 2017 12 2018 16 2019 11 2020 6 2021 6 Undiscounted aggregate expected payments after 2022 138 Aggregate Amount to be Discounted as of Aug. 31, 2016 189 Discount, as of Aug. 31, 2016 (49 ) Aggregate Discounted Amount Accrued as of Aug. 31, 2016 $ 140 Total Environmental and Litigation Reserve as of Aug. 31, 2016 $ 545 |
Environmental And Litigation Liabilities | Changes in the environmental and litigation liabilities for fiscal years 2014 , 2015 and 2016 are as follows: (Dollars in millions) Balance at Aug. 31, 2013 $ 271 Payments (69 ) Accretion 7 Adjustments to liabilities recognized in fiscal year 2014 82 Balance at Aug. 31, 2014 $ 291 Payments (67 ) Accretion 3 Adjustments to liabilities recognized in fiscal year 2015 129 Balance at Aug. 31, 2015 $ 356 Payments (117 ) Accretion 3 Adjustments to liabilities recognized in fiscal year 2016 303 Total Environmental and Litigation Reserve as of Aug. 31, 2016 $ 545 |
SEGMENT AND GEOGRAPHIC DATA (Ta
SEGMENT AND GEOGRAPHIC DATA (Tables) | 12 Months Ended |
Aug. 31, 2016 | |
Segment Reporting [Abstract] | |
Operating Segment Information | Data for the Seeds and Genomics and Agricultural Productivity reportable segments, as well as for Monsanto’s significant operating segments, is presented in the table that follows: Year Ended Aug. 31, (Dollars in millions) 2016 2015 2014 Net Sales (1) Corn seed and traits $ 5,825 $ 5,953 $ 6,401 Soybean seed and traits 2,162 2,276 2,102 Cotton seed and traits 440 523 665 Vegetable seeds 801 816 867 All other crops seeds and traits 760 675 705 Total Seeds and Genomics $ 9,988 $ 10,243 $ 10,740 Agricultural productivity 3,514 4,758 5,115 Total Agricultural Productivity $ 3,514 $ 4,758 $ 5,115 Total $ 13,502 $ 15,001 $ 15,855 Gross Profit Corn seed and traits $ 3,450 $ 3,557 $ 3,932 Soybean seed and traits 1,399 1,510 1,364 Cotton seed and traits 282 408 461 Vegetable seeds 401 372 401 All other crops seeds and traits 542 430 438 Total Seeds and Genomics $ 6,074 $ 6,277 $ 6,596 Agricultural productivity 943 1,905 1,978 Total Agricultural Productivity $ 943 $ 1,905 $ 1,978 Total $ 7,017 $ 8,182 $ 8,574 EBIT (2)(3) Seeds and genomics $ 2,292 $ 2,206 $ 2,607 Agricultural productivity 116 1,294 1,345 Total $ 2,408 $ 3,500 $ 3,952 Depreciation and Amortization Expense Seeds and genomics $ 593 $ 586 $ 568 Agricultural productivity 134 130 123 Total $ 727 $ 716 $ 691 Equity Affiliate Loss (4) Seeds and genomics $ 13 $ 13 $ 8 Agricultural productivity (1 ) — — Total $ 12 $ 13 $ 8 Total Assets Seeds and genomics $ 15,772 $ 17,330 $ 17,548 Agricultural productivity 3,964 4,590 4,370 Total $ 19,736 $ 21,920 $ 21,918 Property, Plant and Equipment Purchases Seeds and genomics $ 727 $ 762 $ 831 Agricultural productivity 196 205 174 Total $ 923 $ 967 $ 1,005 Investment in Equity Affiliates Seeds and genomics $ 152 $ 114 $ 126 Agricultural productivity — — — Total $ 152 $ 114 $ 126 (1) Represents net sales from continuing operations (2) EBIT is defined as earnings (loss) before interest and taxes; see the following table for reconciliation. Earnings (loss) is intended to mean net income (loss) attributable to Monsanto Company as presented in the Statements of Consolidated Operations under GAAP. EBIT is an operating performance measure for the two reportable segments. (3) Agricultural Productivity EBIT includes income of $27 million , $45 million and $22 million from discontinued operations for fiscal years 2016, 2015 and 2014, respectively. (4) Equity affiliate loss is included in other expense, net in the Statements of Consolidated Operations. |
The reconciliation of EBIT to Net Income | A reconciliation of EBIT to net income for each period follows: Year Ended Aug. 31, (Dollars in millions) 2016 2015 2014 EBIT (1) $ 2,408 $ 3,500 $ 3,952 Interest Expense — Net 362 328 146 Income Tax Provision (2) 710 858 1,066 Net Income Attributable to Monsanto Company $ 1,336 $ 2,314 $ 2,740 (1) Includes the income from operations of discontinued businesses and pre-tax noncontrolling interest (2) Includes the income tax provision from continuing operations, the income tax benefit on noncontrolling interest and the income tax provision on discontinued operations |
Net Sales And Long Lived Assets by World Area | Net sales and long-lived assets are attributed to the geographic areas of the relevant Monsanto legal entities. For example, a sale from the United States to a customer in Brazil is reported as a U.S. export sale. Net Sales to Unaffiliated Customers Long-Lived Assets Year Ended Aug. 31, As of Aug. 31, (Dollars in millions) 2016 2015 2014 2016 2015 United States $ 8,008 $ 8,612 $ 8,625 $ 7,779 $ 7,714 Europe-Africa 1,536 1,834 2,192 1,321 1,309 Brazil 1,437 1,725 1,778 665 614 Argentina 856 871 1,092 345 427 Asia-Pacific 483 686 837 277 293 Canada 619 601 636 87 104 Mexico 436 537 503 138 163 Other 127 135 192 354 394 Total $ 13,502 $ 15,001 $ 15,855 $ 10,966 $ 11,018 |
QUARTERLY DATA (UNAUDITED) (Tab
QUARTERLY DATA (UNAUDITED) (Tables) | 12 Months Ended |
Aug. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Quarterly Data | The following tables include financial data for the fiscal year quarters in 2016 and 2015 which have been adjusted for discontinued operations. (Dollars in millions, except per share amounts) 1st (2)(3) 2nd (4)(5) 3rd (6)(7) 4th (8)(9) 2016 Quarter Quarter Quarter Quarter Total Net Sales $ 2,219 $ 4,532 $ 4,189 $ 2,562 $ 13,502 Gross Profit 901 2,598 2,380 1,138 7,017 (Loss) Income from Continuing Operations Attributable to Monsanto Company (265 ) 1,060 717 (193 ) 1,319 Income on Discontinued Operations 12 3 — 2 17 Net (Loss) Income (257 ) 1,060 715 (205 ) 1,313 Net (Loss) Income Attributable to Monsanto Company $ (253 ) $ 1,063 $ 717 $ (191 ) $ 1,336 Basic (Loss) Earnings per Share Attributable to Monsanto Company: (1) (Loss) Income from continuing operations $ (0.58 ) $ 2.42 $ 1.64 $ (0.44 ) $ 2.98 Income on discontinued operations 0.02 — — — 0.04 Net (Loss) Income Attributable to Monsanto Company $ (0.56 ) $ 2.42 $ 1.64 $ (0.44 ) $ 3.02 Diluted (Loss) Earnings per Share Attributable to Monsanto Company: (1) (Loss) Income from continuing operations $ (0.58 ) $ 2.40 $ 1.63 $ (0.44 ) $ 2.95 Income on discontinued operations 0.02 0.01 — — 0.04 Net (Loss) Income Attributable to Monsanto Company $ (0.56 ) $ 2.41 $ 1.63 $ (0.44 ) $ 2.99 2015 Net Sales $ 2,870 $ 5,197 $ 4,579 $ 2,355 $ 15,001 Gross Profit 1,411 3,039 2,736 996 8,182 Income (Loss) from Continuing Operations Attributable to Monsanto Company 227 1,418 1,141 (500 ) 2,286 Income on Discontinued Operations 16 7 — 5 28 Net Income (Loss) 243 1,419 1,155 (492 ) 2,325 Net Income (Loss) Attributable to Monsanto Company $ 243 $ 1,425 $ 1,141 $ (495 ) $ 2,314 Basic Earnings (Loss) per Share Attributable to Monsanto Company: (1) Income (Loss) from continuing operations $ 0.47 $ 2.93 $ 2.41 $ (1.07 ) $ 4.79 Income on discontinued operations 0.03 0.02 — 0.01 0.06 Net Income (Loss) Attributable to Monsanto Company $ 0.50 $ 2.95 $ 2.41 $ (1.06 ) $ 4.85 Diluted Earnings (Loss) per Share Attributable to Monsanto Company: (1) Income (Loss) from continuing operations $ 0.47 $ 2.90 $ 2.39 $ (1.07 ) $ 4.75 Income on discontinued operations 0.03 0.02 — 0.01 0.06 Net Income (Loss) Attributable to Monsanto Company $ 0.50 $ 2.92 $ 2.39 $ (1.06 ) $ 4.81 (1) Because Monsanto reported a loss from continuing operations in the first quarter 2016 and fourth quarter 2016 and 2015 , generally accepted accounting principles require diluted loss per share to be calculated using weighted-average common shares outstanding, excluding common stock equivalents. As a result, the quarterly earnings (loss) per share may not total to the full-year amount. (2) In the first quarter of fiscal 2016 , the company recorded $52 million of cost of goods sold expenses related to the 2015 Restructuring Plan, $5 million of selling, general and administrative expenses related to environmental and litigation settlements and $266 million of restructuring charges with a combined corresponding income tax benefit of $110 million . (3) In the first quarter of fiscal 2015 , the company recorded $8 million of selling, general and administrative expenses related to environmental and litigation settlements with a corresponding income tax benefit of $3 million . (4) In the second quarter of fiscal 2016 , the company recorded $3 million of selling, general and administrative expenses related to environmental and litigation settlements and a SEC settlement and $9 million of restructuring charges related to the 2015 Restructuring Plan with a combined corresponding income tax benefit of $4 million . (5) In the second quarter of fiscal 2015 , the company recorded $10 million of selling, general and administrative expenses related to environmental and litigation settlements with a corresponding income tax benefit of $4 million . (6) In the third quarter of fiscal 2016 , the company recorded $210 million of net sales as a result of agreements entered into related to the company ’ s alfalfa traits and technology, which resulted in upfront revenue accounted for as an exclusive perpetual license to intellectual property, with a corresponding income tax provision of $74 million . The company also recorded $1 million of cost of goods sold expenses related to the 2015 Restructuring Plan, $16 million of selling, general and administrative expenses related to environmental and litigation settlements and $15 million of restructuring charges with a combined corresponding income tax benefit of $13 million . The company also recorded a net tax charge of $219 million due to losses generated in Argentina in the current year as well as recent uncertainties around the Argentina business. The company evaluated the recoverability of various items on the Statement of Consolidated Financial Position related to the Argentina business and determined an allowance against certain assets was necessary, which resulted in the net charge to tax expense. (7) In the third quarter of fiscal 2015 , the company recorded $274 million of net sales as a result of the sale of a perpetual license to intellectual property, with a corresponding income tax provision of $102 million . The company also recorded $57 million of selling, general and administrative expenses related to environmental and litigation settlements and a SEC settlement with a combined corresponding income tax benefit of $8 million . (8) In the fourth quarter of fiscal 2016 , the company recorded a $157 million gain in other expense, net as a result of the company signing definitive agreements to sell certain manufacturing assets and contribute to a newly-formed joint venture certain intellectual property, real property and tangible assets related to the company ’ s sorghum business, with a corresponding income tax provision of $47 million . The company also recorded $14 million of cost of goods sold expenses related to the 2015 Restructuring Plan, $246 million of selling, general and administrative expenses related to environmental and litigation settlements and a SEC settlement and $7 million of restructuring charges with a combined corresponding income tax benefit of $77 million . The company also recorded a net tax charge of $33 million for Argentine-related tax matters based on similar circumstances as noted above in the third quarter of fiscal 2016. (9) In the fourth quarter of fiscal 2015 , the company recorded $101 million of cost of goods sold expenses related to the 2015 Restructuring Plan, $93 million of selling, general and administrative expenses related to environmental and litigation settlements and a SEC settlement and $393 million of restructuring charges with a combined corresponding income tax benefit of $173 million . |
BACKGROUND AND BASIS OF PRESE58
BACKGROUND AND BASIS OF PRESENTATION Narrative (Details) $ in Millions | Oct. 01, 2008 | Aug. 31, 2016USD ($)segment | Nov. 02, 2015USD ($) |
BACKGROUND AND BASIS OF PRESENTATION [Abstract] | |||
Number of reportable segments | segment | 2 | ||
Earn-out period, length of time | 10 years | ||
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Precision Planting [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Consideration | $ 190 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Precision Planting [Member] | Other Current Assets [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Assets | $ 172 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Precision Planting [Member] | Other Current Liabilities [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Liabilities | $ 12 |
SIGNIFICANT ACCOUNTING POLICI59
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | |
Accounting Policies [Abstract] | |||
Advertising Expense | $ 64 | $ 74 | $ 90 |
Percentage Of LIFO Inventory | 11.00% | 11.00% |
SIGNIFICANT ACCOUNTING POLICI60
SIGNIFICANT ACCOUNTING POLICIES (Other Intangible Assets - Narrative) (Details) | 12 Months Ended |
Aug. 31, 2016 | |
Minimum [Member] | Acquired Germplasm [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life (Years) | 5 years |
Minimum [Member] | Acquired Intellectual Property [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life (Years) | 2 years |
Minimum [Member] | Trademarks [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life (Years) | 2 years |
Minimum [Member] | Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life (Years) | 3 years |
Maximum [Member] | Acquired Germplasm [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life (Years) | 30 years |
Maximum [Member] | Acquired Intellectual Property [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life (Years) | 18 years |
Maximum [Member] | Trademarks [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life (Years) | 30 years |
Maximum [Member] | Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life (Years) | 20 years |
SIGNIFICANT ACCOUNTING POLICI61
SIGNIFICANT ACCOUNTING POLICIES (Property, Plant and Equipment - Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Aug. 31, 2016 | Aug. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Asset Retirement Obligation | $ 78 | $ 68 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 25 years | |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 10 years | |
Computer Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 5 years |
BUSINESS COMBINATIONS (Narrativ
BUSINESS COMBINATIONS (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Nov. 30, 2014 | Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | Nov. 29, 2013 | |
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 2 | $ 8 | $ 922 | ||
The Climate Corporation [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquiree percentage | 100.00% | ||||
Transaction cost | $ 18 | ||||
Business Acquisition Fair Value | $ 932 | ||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 917 |
RESTRUCTURING - Schedule of res
RESTRUCTURING - Schedule of restructuring charges recored in the statement of consolidated operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 24 Months Ended | ||||||
Aug. 31, 2016 | May 31, 2016 | Feb. 29, 2016 | Nov. 30, 2015 | Aug. 31, 2015 | Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | $ (297) | $ (393) | $ 0 | ||||||
Cost of Goods Sold [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | (67) | (100) | |||||||
Restructuring Charges [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | (297) | (393) | |||||||
Income (Loss) from Continuing Operations before Income Taxes | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | (364) | (493) | |||||||
Income Tax Provision | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | 101 | 155 | |||||||
Net Income | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | (263) | (338) | |||||||
Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | $ (7) | $ (15) | $ (8.9) | $ (266) | $ (392.7) | (364) | (493) | $ (857) | |
Seeds And Genomics [Member] | Cost of Goods Sold [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | (66) | (100) | |||||||
Seeds And Genomics [Member] | Restructuring Charges [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | (261) | (380) | |||||||
Seeds And Genomics [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | (327) | (480) | (807) | ||||||
Agricultural Productivity [Member] | Cost of Goods Sold [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | (1) | ||||||||
Agricultural Productivity [Member] | Restructuring Charges [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | (36) | (13) | |||||||
Agricultural Productivity [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | $ (37) | $ (13) | $ (50) |
RESTRUCTURING RESTRUCTURING - P
RESTRUCTURING RESTRUCTURING - Pretax restructuring charges related to 2015 restructuring (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 24 Months Ended | ||||||
Aug. 31, 2016 | May 31, 2016 | Feb. 29, 2016 | Nov. 30, 2015 | Aug. 31, 2015 | Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | $ 297 | $ 393 | $ 0 | ||||||
Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | $ 7 | $ 15 | $ 8.9 | $ 266 | $ 392.7 | 364 | 493 | $ 857 | |
Employee Severance [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | 189 | 217 | 406 | ||||||
Facility Closing [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | 28 | 0 | 28 | ||||||
Impairment in value of Property, Plant and Equipment [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | 43 | 81 | 124 | ||||||
Inventory Valuation and Obsolescence [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | 42 | 51 | 93 | ||||||
Goodwill and Other Intangible Assets [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | 62 | 144 | 206 | ||||||
Seeds And Genomics [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | 327 | 480 | 807 | ||||||
Seeds And Genomics [Member] | Employee Severance [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | 179 | 204 | 383 | ||||||
Seeds And Genomics [Member] | Facility Closing [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | 23 | 0 | 23 | ||||||
Seeds And Genomics [Member] | Impairment in value of Property, Plant and Equipment [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | 41 | 81 | 122 | ||||||
Seeds And Genomics [Member] | Inventory Valuation and Obsolescence [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | 42 | 51 | 93 | ||||||
Seeds And Genomics [Member] | Goodwill and Other Intangible Assets [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | 42 | 144 | 186 | ||||||
Agricultural Productivity [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | 37 | 13 | 50 | ||||||
Agricultural Productivity [Member] | Employee Severance [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | 10 | 13 | 23 | ||||||
Agricultural Productivity [Member] | Facility Closing [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | 5 | 0 | 5 | ||||||
Agricultural Productivity [Member] | Impairment in value of Property, Plant and Equipment [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | 2 | 0 | 2 | ||||||
Agricultural Productivity [Member] | Inventory Valuation and Obsolescence [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | 0 | 0 | 0 | ||||||
Agricultural Productivity [Member] | Goodwill and Other Intangible Assets [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | $ 20 | $ 0 | $ 20 |
RESTRUCTURING - Restructuring C
RESTRUCTURING - Restructuring Charges by Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 24 Months Ended | ||||||
Aug. 31, 2016 | May 31, 2016 | Feb. 29, 2016 | Nov. 30, 2015 | Aug. 31, 2015 | Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2016 | |
Restructuring Reserve [Roll Forward] | |||||||||
Restructuring charges | $ 297 | $ 393 | $ 0 | ||||||
Long-Term Restructuring Reserve | $ 17 | $ 47 | 17 | 47 | $ 17 | ||||
Restructuring Plan 2015 [Member] | |||||||||
Restructuring Reserve [Roll Forward] | |||||||||
Beginning Liability | $ 217 | 217 | |||||||
Restructuring charges | 7 | $ 15 | $ 8.9 | 266 | 392.7 | 364 | 493 | 857 | |
Asset impairments and write-offs | (147) | (276) | |||||||
Cash payments | (192) | ||||||||
Foreign currency impact | 2 | ||||||||
Ending Liability | 244 | 217 | 244 | 217 | 244 | ||||
Employee Severance [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Reserve [Roll Forward] | |||||||||
Beginning Liability | 217 | 217 | |||||||
Restructuring charges | 189 | 217 | 406 | ||||||
Asset impairments and write-offs | 0 | 0 | |||||||
Cash payments | (164) | ||||||||
Foreign currency impact | 2 | ||||||||
Ending Liability | 244 | 217 | 244 | 217 | 244 | ||||
Facility Closing [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Reserve [Roll Forward] | |||||||||
Beginning Liability | 0 | 0 | |||||||
Restructuring charges | 28 | 0 | 28 | ||||||
Asset impairments and write-offs | 0 | 0 | |||||||
Cash payments | (28) | ||||||||
Foreign currency impact | 0 | ||||||||
Ending Liability | 0 | 0 | 0 | 0 | 0 | ||||
Impairment Of Asset [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Reserve [Roll Forward] | |||||||||
Beginning Liability | $ 0 | 0 | |||||||
Restructuring charges | 147 | 276 | |||||||
Asset impairments and write-offs | (147) | (276) | |||||||
Cash payments | 0 | ||||||||
Foreign currency impact | 0 | ||||||||
Ending Liability | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
RESTRUCTURING - Narrative (Deta
RESTRUCTURING - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 24 Months Ended | ||||||
Aug. 31, 2016 | May 31, 2016 | Feb. 29, 2016 | Nov. 30, 2015 | Aug. 31, 2015 | Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | $ 297 | $ 393 | $ 0 | ||||||
Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | $ 7 | $ 15 | $ 8.9 | $ 266 | $ 392.7 | 364 | 493 | $ 857 | |
Employee Severance [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | 189 | 217 | 406 | ||||||
Facility Closing [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | 28 | 0 | 28 | ||||||
Impairment Of Asset [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | 147 | $ 276 | |||||||
Minimum [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Estimated restructuring charges | 1,000 | 1,000 | 1,000 | ||||||
Minimum [Member] | Employee Severance [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Estimated restructuring charges | 420 | 420 | 420 | ||||||
Minimum [Member] | Facility Closing [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Estimated restructuring charges | 130 | 130 | 130 | ||||||
Minimum [Member] | Impairment Of Asset [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Estimated restructuring charges | 450 | 450 | 450 | ||||||
Maximum [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Estimated restructuring charges | 1,100 | 1,100 | 1,100 | ||||||
Maximum [Member] | Employee Severance [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Estimated restructuring charges | 465 | 465 | 465 | ||||||
Maximum [Member] | Facility Closing [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Estimated restructuring charges | 150 | 150 | 150 | ||||||
Maximum [Member] | Impairment Of Asset [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Estimated restructuring charges | $ 485 | $ 485 | $ 485 |
RECEIVABLES (Details)
RECEIVABLES (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | |||
Receivables [Abstract] | |||||
Accounts Receivable, Gross, Noncurrent | $ 260 | $ 156 | |||
Allowance for Doubtful Accounts Receivable, Current [Roll Forward] | |||||
Beginning Balance | 59 | 72 | $ 68 | ||
Additions - Charged to Expense | 82 | 44 | 44 | ||
Other | [1] | (47) | (57) | (40) | |
Ending Balance | 94 | 59 | 72 | ||
Allowance for Doubtful Accounts Receivable, Long Term [Roll Forward] | |||||
Beginning Balance | 120 | 125 | 104 | ||
Incremental Provision | 78 | 9 | 11 | ||
Recoveries | (2) | (3) | (4) | ||
Write Offs | (4) | (28) | (15) | ||
Other | 36 | 17 | 29 | [2] | |
Ending Balance | $ 228 | $ 120 | $ 125 | ||
[1] | Includes reclassifications to long-term, write-offs, recoveries and foreign currency translation adjustments. | ||||
[2] | Includes reclassifications from the allowance for current receivables and foreign currency translation adjustments. |
RECEIVABLES (Trade Receivables
RECEIVABLES (Trade Receivables by Customer Concentration) (Details) - USD ($) $ in Millions | Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 |
Accounts Receivable By Geographical Location [Line Items] | ||||
Gross Trade Receivables | $ 2,020 | $ 1,695 | ||
Less: Allowance for Doubtful Accounts | (94) | (59) | $ (72) | $ (68) |
Trade Receivables, Net | 1,926 | 1,636 | ||
Argentina [Member] | ||||
Accounts Receivable By Geographical Location [Line Items] | ||||
Gross Trade Receivables | 302 | 298 | ||
Asia-Pacific [Member] | ||||
Accounts Receivable By Geographical Location [Line Items] | ||||
Gross Trade Receivables | 113 | 185 | ||
Brazil [Member] | ||||
Accounts Receivable By Geographical Location [Line Items] | ||||
Gross Trade Receivables | 234 | 181 | ||
Canada [Member] | ||||
Accounts Receivable By Geographical Location [Line Items] | ||||
Gross Trade Receivables | 27 | 43 | ||
Europe-Africa [Member] | ||||
Accounts Receivable By Geographical Location [Line Items] | ||||
Gross Trade Receivables | 550 | 498 | ||
Mexico [Member] | ||||
Accounts Receivable By Geographical Location [Line Items] | ||||
Gross Trade Receivables | 147 | 202 | ||
UNITED STATES | ||||
Accounts Receivable By Geographical Location [Line Items] | ||||
Gross Trade Receivables | 574 | 230 | ||
Other Credit Derivatives [Member] | ||||
Accounts Receivable By Geographical Location [Line Items] | ||||
Gross Trade Receivables | $ 73 | $ 58 |
CUSTOMER FINANCING PROGRAMS (De
CUSTOMER FINANCING PROGRAMS (Details) $ in Millions, BRL in Billions | 12 Months Ended | ||||
Aug. 31, 2016USD ($) | Aug. 31, 2016BRL | Aug. 31, 2015USD ($) | Aug. 31, 2014USD ($) | ||
US agreement to sell trade receivables [Member] | |||||
Customer Financing Qualified Programs [Abstract] | |||||
Outstanding balance | [1] | $ 511 | $ 851 | ||
Maximum future payout under recourse provisions | [1] | 19 | 125 | ||
Customer Financing Programs, Receivables Sold [Abstract] | |||||
Gross Amounts of Receivables Sold | [1] | 511 | 852 | $ 457 | |
Additional Information [Abstract] | |||||
Maximum Amount Of Potential Sales Of Receivables | 1,400 | ||||
European agreements to sell accounts receivables [Member] | |||||
Customer Financing Qualified Programs [Abstract] | |||||
Outstanding balance | [2] | 60 | 124 | ||
Maximum future payout under recourse provisions | [2] | 35 | 22 | ||
Customer Financing Programs, Receivables Sold [Abstract] | |||||
Gross Amounts of Receivables Sold | [2] | 96 | 165 | $ 78 | |
Agreements with Lenders [Member] | |||||
Customer Financing Qualified Programs [Abstract] | |||||
Outstanding balance | [3] | 73 | 75 | ||
Maximum future payout under recourse provisions | [3] | 57 | $ 62 | ||
Brazil Qspe [Member] | |||||
Additional Information [Abstract] | |||||
Maximum Amount Of Potential Sales Of Receivables | $ 309 | 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 $1.4 billion and to service such accounts. These receivables qualify for sales treatment under the Transfers and Servicing topic of the ASC and, accordingly, the proceeds are included in net cash provided by operating activities in the Statements of Consolidated Cash Flows. The liability for the guarantees for sales with recourse is recorded at an amount that approximates fair value, based upon the company’s historical collection experience and a current assessment of credit exposure. | ||||
[2] | Monsanto has various agreements in European and Latin American countries to sell trade receivables, both with and without recourse. These receivables qualify for sales treatment under the Transfers and Servicing topic of the ASC and, accordingly, the proceeds are included in net cash provided by operating activities in the Statements of Consolidated Cash Flows. The liability for the guarantees for sales with recourse is recorded at an amount that approximates fair value, based on the company’s historical collection experience and a current assessment of credit exposure. | ||||
[3] | Monsanto has additional agreements with lenders to establish programs that provide financing for select customers in the United States, Latin America and Europe. Monsanto provides various levels of recourse through guarantees of the accounts in the event of customer default. The term of the guarantee is equivalent to the term of the customer loans. The liability for the guarantees is recorded at an amount that approximates fair value, based on the company’s historical collection experience with customers that participate in the program and a current assessment of credit exposure. If performance is required under the guarantee, Monsanto may retain amounts that are subsequently collected from customers. |
VARIABLE INTEREST ENTITIES Narr
VARIABLE INTEREST ENTITIES Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2016 | Aug. 31, 2015 | Jun. 15, 2016 | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Sorghum Business [Member] | ||||
Revolving Financing Programs [Line Items] | ||||
Cash payment received | $ 110 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Sorghum Business [Member] | Other Expense, Net [Member] | ||||
Revolving Financing Programs [Line Items] | ||||
Gain resulting from joint venture | $ 157 | |||
Sorghum Business [Member] | ||||
Revolving Financing Programs [Line Items] | ||||
Ownership percentage | 40.00% | |||
Sorghum Business [Member] | Remington Holding, LLC [Member] | ||||
Revolving Financing Programs [Line Items] | ||||
Ownership percentage | 60.00% | |||
Senior Interest [Member] | ||||
Revolving Financing Programs [Line Items] | ||||
VIE, ownership percentage | 89.00% | 90.00% | ||
Monsanto Interest [Member] | ||||
Revolving Financing Programs [Line Items] | ||||
VIE, ownership percentage | 11.00% | 10.00% | ||
Minimum [Member] | Monsanto Interest [Member] | ||||
Revolving Financing Programs [Line Items] | ||||
VIE, ownership percentage | 10.00% |
VARIABLE INTEREST ENTITIES - Eq
VARIABLE INTEREST ENTITIES - Equity Method and Cost Method Investments (Details) - USD ($) $ in Millions | Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 |
Equity Method Investments and Joint Ventures [Abstract] | |||
Equity Method Investments | $ 152 | $ 114 | $ 126 |
Cost Basis Investments | 94 | 90 | |
Total | $ 246 | $ 204 |
INVENTORY (Details)
INVENTORY (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | ||
Inventory Disclosure [Abstract] | ||||
Effect Of LIFO Inventory Liquidation On Income | $ 0 | |||
Components of Inventory (Details) | ||||
Finished Goods | $ 1,404 | 1,603 | ||
Goods In Process | 1,489 | 1,627 | ||
Raw Materials and Supplies | 498 | 420 | ||
Inventory at FIFO Cost | 3,391 | 3,650 | ||
Excess of FIFO over LIFO Cost | (150) | (154) | ||
Total | 3,241 | 3,496 | ||
Inventory Obsolescence [Roll Forward] | ||||
Beginning Balance | 434 | 415 | $ 408 | |
Additions — charged to expense | 410 | 390 | 331 | |
Deductions and other | [1] | (376) | (371) | (324) |
Ending Balance | $ 468 | $ 434 | $ 415 | |
[1] | Deductions and other includes disposals and foreign currency translation adjustments. |
INVENTORY INVENTORY - Impairmen
INVENTORY INVENTORY - Impairment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 24 Months Ended | ||||||
Aug. 31, 2016 | May 31, 2016 | Feb. 29, 2016 | Nov. 30, 2015 | Aug. 31, 2015 | Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | $ 297 | $ 393 | $ 0 | ||||||
Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | $ 7 | $ 15 | $ 8.9 | $ 266 | $ 392.7 | 364 | 493 | $ 857 | |
Restructuring Plan 2015 [Member] | Inventory Valuation and Obsolescence [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | 42 | 51 | 93 | ||||||
Seeds And Genomics [Member] | Restructuring Plan 2015 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | 327 | 480 | 807 | ||||||
Seeds And Genomics [Member] | Restructuring Plan 2015 [Member] | Inventory Valuation and Obsolescence [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | $ 42 | $ 51 | $ 93 |
PROPERTY, PLANT AND EQUIPMENT74
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 24 Months Ended | ||||||
Aug. 31, 2016 | May 31, 2016 | Feb. 29, 2016 | Nov. 30, 2015 | Aug. 31, 2015 | Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||||||||
Total Property, Plant and Equipment | $ 11,116 | $ 10,428 | $ 11,116 | $ 10,428 | $ 11,116 | ||||
Less: Accumulated Depreciation | 5,885 | 5,455 | 5,885 | 5,455 | 5,885 | ||||
Property, Plant and Equipment, Net (variable interest entity restricted - 2016: $0 and 2015: $2) | 5,231 | 4,973 | 5,231 | 4,973 | 5,231 | ||||
Gross assets acquired under capital leases | 39 | 42 | 39 | 42 | 39 | ||||
Restructuring charges | 297 | 393 | $ 0 | ||||||
Land and Improvements [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Total Property, Plant and Equipment | 645 | 643 | 645 | 643 | 645 | ||||
Buildings and Improvements [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Total Property, Plant and Equipment | 2,225 | 2,143 | 2,225 | 2,143 | 2,225 | ||||
Machinery and Equipment [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Total Property, Plant and Equipment | 5,871 | 5,653 | 5,871 | 5,653 | 5,871 | ||||
Computer Software [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Total Property, Plant and Equipment | 1,008 | 893 | 1,008 | 893 | 1,008 | ||||
Construction In Progress And Other [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Total Property, Plant and Equipment | 1,367 | 1,096 | 1,367 | 1,096 | 1,367 | ||||
Restructuring Plan 2015 [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Restructuring charges | $ 7 | $ 15 | $ 8.9 | $ 266 | $ 392.7 | 364 | 493 | 857 | |
Impairment in value of Property, Plant and Equipment [Member] | Restructuring Plan 2015 [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Restructuring charges | $ 43 | $ 81 | $ 124 |
GOODWILL AND OTHER INTANGIBLE75
GOODWILL AND OTHER INTANGIBLE ASSETS Schedule of net carrying amount of goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Aug. 31, 2016 | Aug. 31, 2015 | |
Goodwill [Line Items] | ||
Accumulated Impairment | $ 2,000 | |
Goodwill [Roll Forward] | ||
Beginning Balance | 4,061 | $ 4,319 |
Dispositions | (41) | (75) |
Effect of foreign currency translation adjustments | 0 | (183) |
Ending Balance | 4,020 | 4,061 |
Seeds And Genomics [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 4,004 | 4,262 |
Dispositions | (41) | (75) |
Effect of foreign currency translation adjustments | 4 | (183) |
Ending Balance | 3,967 | 4,004 |
Agricultural Productivity [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 57 | 57 |
Dispositions | 0 | 0 |
Effect of foreign currency translation adjustments | (4) | 0 |
Ending Balance | $ 53 | $ 57 |
GOODWILL AND OTHER INTANGIBLE76
GOODWILL AND OTHER INTANGIBLE ASSETS Information of other intangible assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | |
Finite-lived and Indefinite-lived Intangible Assets [Roll Forward] | |||
Carrying Amount | $ 2,812 | $ 3,089 | |
Accumulated Amortization | (1,779) | (1,858) | |
Net | 1,033 | 1,231 | |
Total Other Intangible Assets, Carrying Amount | 2,904 | 3,190 | |
Total Other Intangible Assets, net | 1,125 | 1,332 | |
Amortization Expense | 116 | 143 | $ 136 |
In Process Research and Development [Member] | |||
Finite-lived and Indefinite-lived Intangible Assets [Roll Forward] | |||
In Process Research & Development, Indefinite Lives | 92 | 101 | |
Acquired Germplasm [Member] | |||
Finite-lived and Indefinite-lived Intangible Assets [Roll Forward] | |||
Carrying Amount | 1,070 | 1,074 | |
Accumulated Amortization | (778) | (750) | |
Net | 292 | 324 | |
Acquired Intellectual Property [Member] | |||
Finite-lived and Indefinite-lived Intangible Assets [Roll Forward] | |||
Carrying Amount | 1,042 | 1,168 | |
Accumulated Amortization | (593) | (598) | |
Net | 449 | 570 | |
Trademarks [Member] | |||
Finite-lived and Indefinite-lived Intangible Assets [Roll Forward] | |||
Carrying Amount | 334 | 353 | |
Accumulated Amortization | (152) | (152) | |
Net | 182 | 201 | |
Customer Relationships [Member] | |||
Finite-lived and Indefinite-lived Intangible Assets [Roll Forward] | |||
Carrying Amount | 301 | 318 | |
Accumulated Amortization | (223) | (212) | |
Net | 78 | 106 | |
Other Intangible Assets [Member] | |||
Finite-lived and Indefinite-lived Intangible Assets [Roll Forward] | |||
Carrying Amount | 65 | 176 | |
Accumulated Amortization | (33) | (146) | |
Net | $ 32 | $ 30 |
GOODWILL AND OTHER INTANGIBLE77
GOODWILL AND OTHER INTANGIBLE ASSETS Schedule of estimated amortization expense (Details) $ in Millions | Aug. 31, 2016USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,017 | $ 146 |
2,018 | 109 |
2,019 | 115 |
2,020 | 112 |
2,021 | $ 100 |
INCOME TAXES (Components of inc
INCOME TAXES (Components of income from continuing operations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 1,457 | $ 2,092 | $ 2,436 |
Outside United States | 534 | 1,069 | 1,391 |
Income from Continuing Operations Before Income Taxes | $ 1,991 | $ 3,161 | $ 3,827 |
INCOME TAXES (Components of i79
INCOME TAXES (Components of income tax provision) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | |
Current: | |||
U.S. Federal | $ 393 | $ 675 | $ 648 |
U.S. State | 43 | 69 | 65 |
Outside United States | 231 | 408 | 410 |
Total Current | 667 | 1,152 | 1,123 |
Deferred: | |||
U.S. Federal | (109) | (91) | 41 |
U.S. State | (7) | (2) | (2) |
Outside United States | 144 | (195) | (84) |
Total Deferred | 28 | (288) | (45) |
Total | $ 695 | $ 864 | $ 1,078 |
INCOME TAXES (Income Tax Reconc
INCOME TAXES (Income Tax Reconciliation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
U.S. Federal Statutory Rate | $ 697 | $ 1,106 | $ 1,339 |
U.S. Domestic Manufacturing Deduction | (64) | (87) | (75) |
U.S. R&D Tax Credit | (34) | (30) | (12) |
U.S. State Income Taxes | 28 | 39 | 45 |
Lower Taxes on Foreign Operations | (243) | (209) | (230) |
Valuation Allowances | 308 | 13 | 12 |
Adjustment for Unrecognized Tax Benefits | (6) | (4) | (8) |
Other | 9 | 36 | 7 |
Total | $ 695 | $ 864 | $ 1,078 |
INCOME TAXES (Components of def
INCOME TAXES (Components of deferred tax assets and liabilities) (Details) - USD ($) $ in Millions | Aug. 31, 2016 | Aug. 31, 2015 |
Components of Deferred Tax Assets [Abstract] | ||
Net Operating Loss and Other Carryforwards | $ 438 | $ 323 |
Employee Fringe Benefits | 331 | 305 |
Royalties | 155 | 242 |
Restructuring and Impairment Reserves | 189 | 154 |
Inventories | 91 | 173 |
Allowance for Doubtful Accounts | 77 | 72 |
Environmental and Litigation Reserves | 70 | 69 |
Other | 407 | 307 |
Valuation Allowance | (346) | (68) |
Total Deferred Tax Assets | 1,412 | 1,577 |
Components of Deferred Tax Liabilities [Abstract] | ||
Property, Plant and Equipment | 533 | 539 |
Intangibles | 334 | 361 |
Total Deferred Tax Liabilities | 867 | 900 |
Net Deferred Tax Assets | $ 545 | $ 677 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | |
Income Tax Examination [Line Items] | |||
Operating Loss Carryforwards | $ 696 | ||
Undistributed Foreign Earnings | 4,500 | ||
Unrecognized Tax Benefits | 123 | $ 135 | $ 152 |
Unrecognized Tax Benefits That Would Favorably Impact Effective Tax Rate | 90 | 100 | |
Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued | 24 | 28 | |
Unrecognized Tax Benefits Income Tax Penalties And Interest Expense | 1 | $ 6 | $ 4 |
Potential Decrease In Uncertain Tax Benefits | 70 | ||
Argentina [Member] | |||
Income Tax Examination [Line Items] | |||
Deferred tax assets | $ 281 |
INCOME TAXES (Reconciliation of
INCOME TAXES (Reconciliation of unrecognized tax benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Aug. 31, 2016 | Aug. 31, 2015 | |
Reconciliation of beginning and ending balance of unrecognized tax benefits [Abstract] | ||
Beginning Balance | $ 135 | $ 152 |
Increases for Prior Year Tax Positions | 17 | 12 |
Decreases for Prior Year Tax Positions | (11) | (14) |
Increases for Current Year Tax Positions | 8 | 7 |
Settlements | (1) | 0 |
Lapse of Statute of Limitations | (23) | (12) |
Foreign Currency Translation | (2) | (10) |
Ending Balance | $ 123 | $ 135 |
INCOME TAXES (Years subject to
INCOME TAXES (Years subject to examination) (Details) | 12 Months Ended |
Aug. 31, 2016 | |
US federal income tax [Member] | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Year under Examination | 2,013 |
US federal income tax [Member] | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Year under Examination | 2,016 |
U.S. state and local income taxes [Member] | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Year under Examination | 2,000 |
U.S. state and local income taxes [Member] | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Year under Examination | 2,016 |
Argentina [Member] | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Year under Examination | 2,001 |
Argentina [Member] | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Year under Examination | 2,016 |
Brazil [Member] | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Year under Examination | 2,006 |
Brazil [Member] | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Year under Examination | 2,016 |
DEBT AND OTHER CREDIT ARRANGEM
DEBT AND OTHER CREDIT ARRANGEMENTS (Short-term Debt) (Details) - USD ($) $ in Millions | Aug. 31, 2016 | Aug. 31, 2015 |
Short-term Debt [Line Items] | ||
Current Portion of Long-Term Debt | $ 902 | $ 308 |
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value, Amount, Current | 113 | 0 |
Notes Payable to Banks | 72 | 307 |
Commercial Paper | 500 | 0 |
Total Short-Term Debt | $ 1,587 | $ 615 |
DEBT AND OTHER CREDIT ARRANGE86
DEBT AND OTHER CREDIT ARRANGEMENTS (Long-term Debt) (Details) - USD ($) | Aug. 31, 2016 | Aug. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Jul. 31, 2014 | |
Short Term Debt [Abstract] | ||||||
Long-term debt (variable interest entities restricted) | $ 0 | $ 96,000,000 | ||||
Other (including Capital Leases) | 36,000,000 | 27,000,000 | ||||
Total Long-Term Debt | 7,453,000,000 | 8,429,000,000 | ||||
Floating Rate Notes Due Twenty Sixteen [Member] | ||||||
Short Term Debt [Abstract] | ||||||
Discounted Amount | [1] | 0 | 399,000,000 | |||
Senior Notes Due Twenty Seventeen [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 500,000,000 | |||||
Short Term Debt [Abstract] | ||||||
Discounted Amount | [1] | $ 0 | 498,000,000 | |||
Interest Rate | 1.15% | |||||
Senior Notes Due April Twenty Eighteen [Member] | ||||||
Short Term Debt [Abstract] | ||||||
Discounted Amount | [1] | $ 299,000,000 | 299,000,000 | |||
Interest Rate | 5.125% | |||||
Senior Notes Due November Twenty Eighteen [Member] | ||||||
Short Term Debt [Abstract] | ||||||
Discounted Amount | [1] | $ 299,000,000 | 298,000,000 | |||
Interest Rate | 1.85% | |||||
Senior Notes Due Twenty Nineteen [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | 500,000,000 | |||||
Short Term Debt [Abstract] | ||||||
Discounted Amount | [1] | $ 498,000,000 | 497,000,000 | |||
Interest Rate | 2.125% | |||||
Senior Notes Due Twenty Twenty One [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | 500,000,000 | |||||
Short Term Debt [Abstract] | ||||||
Discounted Amount | [1] | $ 496,000,000 | 496,000,000 | |||
Interest Rate | 2.75% | |||||
Senior Notes Due 2022 [Member] | ||||||
Short Term Debt [Abstract] | ||||||
Discounted Amount | [1] | $ 249,000,000 | 248,000,000 | |||
Interest Rate | 2.20% | |||||
Senior Notes Due Twenty Twenty Four [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | 750,000,000 | |||||
Short Term Debt [Abstract] | ||||||
Discounted Amount | [1] | $ 744,000,000 | 744,000,000 | |||
Interest Rate | 3.375% | |||||
Senior Notes Due 2025 [Member] | ||||||
Short Term Debt [Abstract] | ||||||
Discounted Amount | [1] | $ 289,000,000 | 287,000,000 | |||
Interest Rate | 5.50% | |||||
Senior Notes Due April Twenty Twenty Five [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 300,000,000 | |||||
Short Term Debt [Abstract] | ||||||
Discounted Amount | [1] | $ 297,000,000 | 296,000,000 | |||
Interest Rate | 2.85% | |||||
Senior Notes Due Twenty Thirty Four [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | 500,000,000 | |||||
Short Term Debt [Abstract] | ||||||
Discounted Amount | [1] | $ 492,000,000 | 492,000,000 | |||
Interest Rate | 4.20% | |||||
Senior Notes Due 2035 [Member] | ||||||
Short Term Debt [Abstract] | ||||||
Discounted Amount | [1] | $ 393,000,000 | 393,000,000 | |||
Interest Rate | 5.50% | |||||
Senior Notes Due 2038 [Member] | ||||||
Short Term Debt [Abstract] | ||||||
Discounted Amount | [1] | $ 246,000,000 | 245,000,000 | |||
Interest Rate | 5.875% | |||||
Senior Notes Due 2042 [Member] | ||||||
Short Term Debt [Abstract] | ||||||
Discounted Amount | [1] | $ 247,000,000 | 247,000,000 | |||
Interest Rate | 3.60% | |||||
Senior Notes Due Twenty Forty Three [Member] | ||||||
Short Term Debt [Abstract] | ||||||
Discounted Amount | [1] | $ 297,000,000 | 297,000,000 | |||
Interest Rate | 4.65% | |||||
Senior Notes Due Twenty Forty Four [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | 1,000,000,000 | |||||
Short Term Debt [Abstract] | ||||||
Discounted Amount | [1] | $ 982,000,000 | 982,000,000 | |||
Interest Rate | 4.40% | |||||
Senior Notes Due April Twenty Forty Five [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 500,000,000 | |||||
Short Term Debt [Abstract] | ||||||
Discounted Amount | [1] | $ 493,000,000 | 493,000,000 | |||
Interest Rate | 3.95% | |||||
Senior Notes Due Twenty Forty Five [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 365,000,000 | |||||
Short Term Debt [Abstract] | ||||||
Discounted Amount | [1] | $ 361,000,000 | 361,000,000 | |||
Interest Rate | 4.30% | |||||
Senior Notes Due Twenty Sixty Four [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 750,000,000 | |||||
Short Term Debt [Abstract] | ||||||
Discounted Amount | [1] | $ 735,000,000 | $ 734,000,000 | |||
Interest Rate | 4.70% | |||||
Revolving Credit Facility [Member] | Line of Credit [Member] | ||||||
Short Term Debt [Abstract] | ||||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 0 | |||||
[1] | Amounts are net of unamortized discounts and debt issuance costs. |
DEBT AND OTHER CREDIT ARRANGE87
DEBT AND OTHER CREDIT ARRANGEMENTS (Narrative) (Details) - USD ($) | Aug. 31, 2016 | Apr. 30, 2016 | Aug. 31, 2015 | Apr. 30, 2015 | Mar. 31, 2015 | Jan. 31, 2015 | Jul. 31, 2014 | ||
Schedule of Debt [Line Items] | |||||||||
Shelf registration, maximum aggregate amount | $ 6,000,000,000 | ||||||||
Short-term Debt, Fair Value | $ 1,589,000,000 | $ 619,000,000 | |||||||
Weighted average interest rate | 2.00% | 3.00% | |||||||
Long-term Debt, Fair Value | $ 7,834,000,000 | [1] | $ 8,124,000,000 | ||||||
Commercial Paper | 500,000,000 | 0 | |||||||
Senior Notes Due November Twenty Eighteen [Member] | |||||||||
Schedule of Debt [Line Items] | |||||||||
Senior Notes, Noncurrent | [2] | $ 299,000,000 | 298,000,000 | ||||||
Interest Rate | 1.85% | ||||||||
Senior Notes Due April Twenty Twenty Five [Member] | |||||||||
Schedule of Debt [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 300,000,000 | ||||||||
Senior Notes, Noncurrent | [2] | $ 297,000,000 | 296,000,000 | ||||||
Interest Rate | 2.85% | ||||||||
Senior Notes Due April Twenty Forty Five [Member] | |||||||||
Schedule of Debt [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 500,000,000 | ||||||||
Senior Notes, Noncurrent | [2] | $ 493,000,000 | 493,000,000 | ||||||
Interest Rate | 3.95% | ||||||||
Senior Notes Due Twenty Forty Five [Member] | |||||||||
Schedule of Debt [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 365,000,000 | ||||||||
Senior Notes, Noncurrent | [2] | $ 361,000,000 | 361,000,000 | ||||||
Interest Rate | 4.30% | ||||||||
Senior Notes Due Twenty Seventeen [Member] | |||||||||
Schedule of Debt [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 500,000,000 | ||||||||
Senior Notes, Noncurrent | [2] | $ 0 | 498,000,000 | ||||||
Interest Rate | 1.15% | ||||||||
Senior Notes Due Twenty Nineteen [Member] | |||||||||
Schedule of Debt [Line Items] | |||||||||
Debt Instrument, Face Amount | 500,000,000 | ||||||||
Senior Notes, Noncurrent | [2] | $ 498,000,000 | 497,000,000 | ||||||
Interest Rate | 2.125% | ||||||||
Senior Notes Due Twenty Twenty One [Member] | |||||||||
Schedule of Debt [Line Items] | |||||||||
Debt Instrument, Face Amount | 500,000,000 | ||||||||
Senior Notes, Noncurrent | [2] | $ 496,000,000 | 496,000,000 | ||||||
Interest Rate | 2.75% | ||||||||
Senior Notes Due Twenty Twenty Four [Member] | |||||||||
Schedule of Debt [Line Items] | |||||||||
Debt Instrument, Face Amount | 750,000,000 | ||||||||
Senior Notes, Noncurrent | [2] | $ 744,000,000 | 744,000,000 | ||||||
Interest Rate | 3.375% | ||||||||
Senior Notes Due Twenty Thirty Four [Member] | |||||||||
Schedule of Debt [Line Items] | |||||||||
Debt Instrument, Face Amount | 500,000,000 | ||||||||
Senior Notes, Noncurrent | [2] | $ 492,000,000 | 492,000,000 | ||||||
Interest Rate | 4.20% | ||||||||
Senior Notes Due Twenty Forty Four [Member] | |||||||||
Schedule of Debt [Line Items] | |||||||||
Debt Instrument, Face Amount | 1,000,000,000 | ||||||||
Senior Notes, Noncurrent | [2] | $ 982,000,000 | 982,000,000 | ||||||
Interest Rate | 4.40% | ||||||||
Senior Notes Due Twenty Sixty Four [Member] | |||||||||
Schedule of Debt [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 750,000,000 | ||||||||
Senior Notes, Noncurrent | [2] | $ 735,000,000 | 734,000,000 | ||||||
Interest Rate | 4.70% | ||||||||
Floating Rate Notes Due Twenty Sixteen [Member] | |||||||||
Schedule of Debt [Line Items] | |||||||||
Senior Notes, Noncurrent | [2] | $ 0 | 399,000,000 | ||||||
Senior Notes Due Twenty Forty Three [Member] | |||||||||
Schedule of Debt [Line Items] | |||||||||
Senior Notes, Noncurrent | [2] | $ 297,000,000 | $ 297,000,000 | ||||||
Interest Rate | 4.65% | ||||||||
Revolving Credit Facility [Member] | Line of Credit [Member] | |||||||||
Schedule of Debt [Line Items] | |||||||||
Credit facility, maximum borrowing capacity | $ 3,000,000,000 | ||||||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 0 | ||||||||
[1] | Debt instruments, excluding mandatorily redeemable shares, 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] | Amounts are net of unamortized discounts and debt issuance costs. |
DEBT AND OTHER CREDIT ARRANGE88
DEBT AND OTHER CREDIT ARRANGEMENTS (Interest expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | |
Interest Expense [Abstract] | |||
Interest Cost Incurred | $ 468 | $ 460 | $ 275 |
Less: Capitalized on Construction | 32 | 27 | 27 |
Interest Expense | $ 436 | $ 433 | $ 248 |
FAIR VALUE MEASUREMENTS (Fair V
FAIR VALUE MEASUREMENTS (Fair Value Hierarchy Levels) (Details) - USD ($) $ in Millions | Aug. 31, 2016 | Aug. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | $ 1,081 | $ 3,213 | |
Short-term investments | 60 | 47 | |
Equity securities | 13 | 17 | |
Foreign currency | 10 | 40 | |
Commodity contracts | 18 | 8 | |
Interest rate contracts | 2 | ||
Total Assets at Fair Value | 1,182 | 3,327 | |
Short-term debt instruments(1) | 1,589 | 619 | |
Long-term debt instruments(1) | 7,834 | [1] | 8,124 |
Foreign currency | 15 | 11 | |
Commodity contracts | 52 | 85 | |
Interest rate contracts | 41 | ||
Total Liabilities at Fair Value | 9,531 | 8,839 | |
Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 1,081 | 3,213 | |
Short-term investments | 60 | 47 | |
Equity securities | 13 | 17 | |
Foreign currency | 0 | 0 | |
Commodity contracts | 9 | 1 | |
Interest rate contracts | 0 | ||
Total Assets at Fair Value | 1,163 | 3,278 | |
Short-term debt instruments(1) | 0 | 0 | |
Long-term debt instruments(1) | 0 | [1] | 0 |
Foreign currency | 0 | 0 | |
Commodity contracts | 32 | 35 | |
Interest rate contracts | 0 | ||
Total Liabilities at Fair Value | 32 | 35 | |
Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 0 | 0 | |
Short-term investments | 0 | 0 | |
Equity securities | 0 | 0 | |
Foreign currency | 10 | 40 | |
Commodity contracts | 9 | 7 | |
Interest rate contracts | 2 | ||
Total Assets at Fair Value | 19 | 49 | |
Short-term debt instruments(1) | 1,476 | 619 | |
Long-term debt instruments(1) | 7,834 | [1] | 8,028 |
Foreign currency | 15 | 11 | |
Commodity contracts | 20 | 50 | |
Interest rate contracts | 41 | ||
Total Liabilities at Fair Value | 9,386 | 8,708 | |
Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 0 | 0 | |
Short-term investments | 0 | 0 | |
Equity securities | 0 | 0 | |
Foreign currency | 0 | 0 | |
Commodity contracts | 0 | 0 | |
Interest rate contracts | 0 | ||
Total Assets at Fair Value | 0 | 0 | |
Short-term debt instruments(1) | 113 | 0 | |
Long-term debt instruments(1) | 0 | [1] | 96 |
Foreign currency | 0 | 0 | |
Commodity contracts | 0 | 0 | |
Interest rate contracts | 0 | ||
Total Liabilities at Fair Value | $ 113 | $ 96 | |
[1] | Debt instruments, excluding mandatorily redeemable shares, are not recorded at fair value on a recurring basis; however, they are measured at fair value for disclosure purposes, as required by the Fair Value Measurements and Disclosures topic of the ASC. |
FAIR VALUE MEASUREMENTS (Summar
FAIR VALUE MEASUREMENTS (Summary of the Change in Level 3 Liability) (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Aug. 31, 2016USD ($)$ / sharesshares | Aug. 31, 2016BRL / sharesshares | Aug. 31, 2015$ / sharesshares | Aug. 31, 2015BRL / sharesshares | ||
Short-term Debt [Member] | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Beginning Balance | $ 0 | ||||
Reclassifications | 96 | ||||
Accretion expense | 14 | ||||
Payments | (10) | ||||
Effect of foreign currency translation adjustments | 13 | ||||
Ending Balance | [1] | $ 113 | |||
Mandatorily Redeemable Shares Outstanding | shares | 350,000 | 350,000 | |||
Mandatorily Redeemable Shares, Par Value | (per share) | $ 309 | BRL 1,000 | |||
Long-term Debt [Member] | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Beginning Balance | [1] | $ 96 | |||
Reclassifications | (96) | ||||
Ending Balance | $ 0 | ||||
Mandatorily Redeemable Shares Outstanding | shares | 350,000 | 350,000 | |||
Mandatorily Redeemable Shares, Par Value | (per share) | $ 274 | BRL 1,000 | |||
[1] | Includes 350,000 mandatorily redeemable shares outstanding with a par value of 1,000 Brazilian reais (approximately $274) as of Aug. 31, 2015. |
FAIR VALUE MEASUREMENTS (Narrat
FAIR VALUE MEASUREMENTS (Narrative) (Details) number in Millions, $ in Millions | 12 Months Ended | ||
Aug. 31, 2016USD ($) | Aug. 31, 2015USD ($) | Aug. 31, 2014USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Liability Non-Recurring Charge | 0 | 0 | 0 |
Fair Value Transfers, Amount | 0 | 0 | |
Property, Plant and Equipment, Net | $ 5,231 | $ 4,973 | |
Other Intangible Assets, Net | 1,125 | 1,332 | |
Agricultural Productivity [Member] | Property, Plant and Equipment [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset impairment charges | 2 | ||
Agricultural Productivity [Member] | Property, Plant and Equipment [Member] | Restructuring Charges [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset impairment charges | 2 | ||
Agricultural Productivity [Member] | Other Intangible Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset impairment charges | 20 | ||
Agricultural Productivity [Member] | Other Intangible Assets [Member] | Restructuring Charges [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset impairment charges | 20 | ||
Agricultural Productivity [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, Plant and Equipment, Net | 1 | ||
Other Intangible Assets, Net | 1 | ||
Agricultural Productivity [Member] | Impairment Of Asset [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, Plant and Equipment, Net | 2 | ||
Other Intangible Assets, Net | 20 | ||
Seeds And Genomics [Member] | Property, Plant and Equipment [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset impairment charges | 41 | 81 | $ 23 |
Seeds And Genomics [Member] | Property, Plant and Equipment [Member] | Cost of Goods Sold [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset impairment charges | 16 | 49 | 11 |
Seeds And Genomics [Member] | Property, Plant and Equipment [Member] | Restructuring Charges [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset impairment charges | 25 | 32 | |
Seeds And Genomics [Member] | Property, Plant and Equipment [Member] | Research and Development Expense [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset impairment charges | 8 | ||
Seeds And Genomics [Member] | Property, Plant and Equipment [Member] | Selling, General and Administrative Expenses [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset impairment charges | 5 | ||
Seeds And Genomics [Member] | Other Intangible Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset impairment charges | 19 | 71 | 20 |
Seeds And Genomics [Member] | Other Intangible Assets [Member] | Cost of Goods Sold [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset impairment charges | 19 | ||
Seeds And Genomics [Member] | Other Intangible Assets [Member] | Restructuring Charges [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset impairment charges | 19 | 71 | |
Seeds And Genomics [Member] | Other Intangible Assets [Member] | Research and Development Expense [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset impairment charges | 1 | ||
Seeds And Genomics [Member] | Other Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset impairment charges | 2 | ||
Seeds And Genomics [Member] | Other Assets [Member] | Restructuring Charges [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset impairment charges | 2 | ||
Seeds And Genomics [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, Plant and Equipment, Net | 26 | 50 | 4 |
Other Intangible Assets, Net | 1 | 1 | 20 |
Other Assets | 5 | ||
Seeds And Genomics [Member] | Impairment Of Asset [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, Plant and Equipment, Net | 67 | 131 | 27 |
Other Intangible Assets, Net | 19 | $ 71 | $ 40 |
Other Assets | $ 7 |
FINANCIAL INSTRUMENTS Narrative
FINANCIAL INSTRUMENTS Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | |
Derivatives, Fair Value [Line Items] | |||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ (43) | ||
Loss on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring | $ 1 | $ 2 | $ 2 |
Description of Discontinuation of Fair Value Hedge | 0 | no | no |
Fair Value, Concentration of Risk, Accounts Receivable | $ 0 | $ 0 | |
Foreign Exchange Contract [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Maximum Length of Time Hedged in Cash Flow Hedge | 11 months | ||
Commodity [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Maximum Length of Time Hedged in Cash Flow Hedge | 28 months | ||
ISDA Contracts [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Net Liability Position Aggregate Fair Value | $ 63 | $ 41 |
FINANCIAL INSTRUMENTS Notional
FINANCIAL INSTRUMENTS Notional Amounts of Derivative Instruments Outstanding (Details) - USD ($) $ in Millions | Aug. 31, 2016 | Aug. 31, 2015 |
Designated as Hedging Instrument [Member] | ||
Notional Amount of Derivatives, [Abstract] | ||
Total Derivatives | $ 1,022 | $ 1,197 |
Not Designated as Hedging Instrument [Member] | ||
Notional Amount of Derivatives, [Abstract] | ||
Total Derivatives | 1,435 | 2,089 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | ||
Notional Amount of Derivatives, [Abstract] | ||
Total Derivatives | 388 | 456 |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | ||
Notional Amount of Derivatives, [Abstract] | ||
Total Derivatives | 1,096 | 1,926 |
Commodity Contract [Member] | Designated as Hedging Instrument [Member] | ||
Notional Amount of Derivatives, [Abstract] | ||
Total Derivatives | 484 | 591 |
Commodity Contract [Member] | Not Designated as Hedging Instrument [Member] | ||
Notional Amount of Derivatives, [Abstract] | ||
Total Derivatives | 223 | 163 |
Interest Rate Contracts [Member] | Designated as Hedging Instrument [Member] | ||
Notional Amount of Derivatives, [Abstract] | ||
Total Derivatives | 150 | 150 |
Interest Rate Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Notional Amount of Derivatives, [Abstract] | ||
Total Derivatives | $ 116 | $ 0 |
FINANCIAL INSTRUMENTS Fair Valu
FINANCIAL INSTRUMENTS Fair Value of Derivatives Outstanding (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | ||||
Derivatives, Fair Value [Line Items] | ||||||
Fair Value, Concentration of Risk, Accounts Receivable | $ 0 | $ 0 | ||||
Derivative Asset, Fair Value, Gross Asset | 28 | 50 | ||||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (39) | (35) | ||||
Derivative Asset, Fair Value, Amount Offset Against Collateral | (11) | 15 | ||||
Derivative Asset, Fair Value of Collateral | 24 | 35 | ||||
Derivative Asset | 13 | 50 | ||||
Derivative Liability, Fair Value, Gross Liability | 108 | 96 | ||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | (39) | (35) | ||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 69 | 61 | ||||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||||
Derivative Liability | 69 | 61 | ||||
Miscellaneous receivables | 755 | 803 | ||||
Other current assets | 227 | 192 | ||||
Other Assets, Noncurrent | 489 | 610 | ||||
Miscellaneous short-term accruals (variable interest entity restricted - 2016: $0 and 2015: $7) | 1,004 | 791 | ||||
Other Liabilities, Noncurrent | 318 | 345 | ||||
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | $ 0 | $ 0 | $ 0 | |||
Description of Discontinuation of Fair Value Hedge | 0 | no | no | |||
Miscellaneous receivables [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Asset, Fair Value, Gross Asset | $ 2 | |||||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | |||||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 2 | |||||
Derivative Asset, Fair Value of Collateral | 0 | |||||
Derivative Asset | 2 | |||||
Non-derivative Balances | 801 | |||||
Other Current Assets [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Asset, Fair Value, Gross Asset | $ 28 | 46 | ||||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (35) | (29) | ||||
Derivative Asset, Fair Value, Amount Offset Against Collateral | (7) | 17 | ||||
Derivative Asset, Fair Value of Collateral | 20 | 29 | ||||
Derivative Asset | 13 | 46 | ||||
Derivative Liability, Fair Value, Gross Liability | 35 | 29 | ||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | (35) | (29) | ||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 | ||||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||||
Derivative Liability | 0 | 0 | ||||
Non-derivative Balances | 214 | 146 | ||||
Other Assets [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Asset, Fair Value, Gross Asset | 0 | 2 | ||||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (4) | (6) | ||||
Derivative Asset, Fair Value, Amount Offset Against Collateral | (4) | (4) | ||||
Derivative Asset, Fair Value of Collateral | 4 | 6 | ||||
Derivative Asset | 0 | 2 | ||||
Derivative Liability, Fair Value, Gross Liability | 4 | 6 | ||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | (4) | (6) | ||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 | ||||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||||
Derivative Liability | 0 | 0 | ||||
Non-derivative Balances | 489 | 608 | ||||
Other Current Liabilities [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Liability, Fair Value, Gross Liability | 67 | 47 | ||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | ||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 67 | 47 | ||||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||||
Derivative Liability | 67 | 47 | ||||
Non-derivative Balances | (937) | (744) | ||||
Other Noncurrent Liabilities [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Liability, Fair Value, Gross Liability | 2 | 14 | ||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | ||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 2 | 14 | ||||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||||
Derivative Liability | 2 | 14 | ||||
Non-derivative Balances | (316) | (331) | ||||
Interest Rate Contracts [Member] | Miscellaneous receivables [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Asset, Fair Value, Gross Asset | 2 | |||||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | |||||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 2 | |||||
Derivative Asset, Fair Value of Collateral | 0 | |||||
Derivative Asset | 2 | |||||
Interest Rate Contracts [Member] | Other Current Liabilities [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Liability, Fair Value, Gross Liability | 41 | |||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | |||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 41 | |||||
Derivative Liability, Fair Value of Collateral | 0 | |||||
Derivative Liability | 41 | |||||
Foreign Exchange Contract [Member] | Other Current Assets [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Asset, Fair Value, Gross Asset | 4 | [1] | 25 | |||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | [1] | 0 | |||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 4 | [1] | 25 | |||
Derivative Asset, Fair Value of Collateral | 0 | [1] | 0 | |||
Derivative Asset | 4 | [1] | 25 | |||
Foreign Exchange Contract [Member] | Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Asset, Fair Value, Gross Asset | 6 | [1] | 14 | |||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | [1] | 0 | |||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 6 | [1] | 14 | |||
Derivative Asset, Fair Value of Collateral | 0 | [1] | 0 | |||
Derivative Asset | 6 | [1] | 14 | |||
Foreign Exchange Contract [Member] | Other Assets [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Asset, Fair Value, Gross Asset | [2] | 1 | ||||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | [2] | 0 | ||||
Derivative Asset, Fair Value, Amount Offset Against Collateral | [2] | 1 | ||||
Derivative Asset, Fair Value of Collateral | [2] | 0 | ||||
Derivative Asset | [2] | 1 | ||||
Foreign Exchange Contract [Member] | Other Current Liabilities [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Liability, Fair Value, Gross Liability | 8 | |||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | |||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 8 | |||||
Derivative Liability, Fair Value of Collateral | 0 | |||||
Derivative Liability | 8 | |||||
Foreign Exchange Contract [Member] | Other Current Liabilities [Member] | Not Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Liability, Fair Value, Gross Liability | 7 | 11 | ||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | ||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 7 | 11 | ||||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||||
Derivative Liability | 7 | 11 | ||||
Commodity Contract [Member] | Other Current Assets [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Asset, Fair Value, Gross Asset | 9 | [1] | 0 | [2] | ||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (29) | [1] | (29) | [2] | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral | (20) | [1] | (29) | [2] | ||
Derivative Asset, Fair Value of Collateral | 20 | [1] | 29 | [2] | ||
Derivative Asset | 0 | [1] | 0 | [2] | ||
Derivative Liability, Fair Value, Gross Liability | 29 | [1] | 29 | [2] | ||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | (29) | [1] | (29) | [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 [Member] | Not Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Asset, Fair Value, Gross Asset | 9 | [1] | 7 | [2] | ||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (6) | [1] | 0 | [2] | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 3 | [1] | 7 | [2] | ||
Derivative Asset, Fair Value of Collateral | 0 | [1] | 0 | [2] | ||
Derivative Asset | 3 | [1] | 7 | [2] | ||
Derivative Liability, Fair Value, Gross Liability | [1] | 6 | ||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | [1] | (6) | ||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | [1] | 0 | ||||
Derivative Liability, Fair Value of Collateral | [1] | 0 | ||||
Derivative Liability | [1] | 0 | ||||
Commodity Contract [Member] | Other Assets [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Asset, Fair Value, Gross Asset | 0 | 1 | [2] | |||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (4) | (6) | [2] | |||
Derivative Asset, Fair Value, Amount Offset Against Collateral | (4) | (5) | [2] | |||
Derivative Asset, Fair Value of Collateral | 4 | 6 | [2] | |||
Derivative Asset | 0 | 1 | [2] | |||
Derivative Liability, Fair Value, Gross Liability | 4 | [1] | 6 | [2] | ||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | (4) | [1] | (6) | [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 Liabilities [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Liability, Fair Value, Gross Liability | 11 | 27 | ||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | ||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 11 | 27 | ||||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||||
Derivative Liability | 11 | 27 | ||||
Commodity Contract [Member] | Other Current Liabilities [Member] | Not Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Liability, Fair Value, Gross Liability | 9 | |||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | |||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 9 | |||||
Derivative Liability, Fair Value of Collateral | 0 | |||||
Derivative Liability | 9 | |||||
Commodity Contract [Member] | Other Noncurrent Liabilities [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Liability, Fair Value, Gross Liability | 2 | 14 | ||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | ||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 2 | 14 | ||||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||||
Derivative Liability | $ 2 | $ 14 | ||||
[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. | |||||
[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 Gain (Los
FINANCIAL INSTRUMENTS Gain (Loss) from Derivatives (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loss on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring | $ 1 | $ 2 | $ 2 | |
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | [1] | (68) | (100) | (111) |
Amount of Gain (Loss) Recognized in Income | (123) | (130) | (3) | |
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | 0 | 0 | 0 | |
Foreign Currency Transaction Gain (Loss), Realized | 178 | (42) | (96) | |
Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | [1] | (68) | (100) | (111) |
Amount of Gain (Loss) Recognized in Income | [2] | (92) | (54) | (27) |
Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (31) | (76) | 24 | |
Foreign Exchange Contract [Member] | Other Expense [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (36) | (73) | (1) | |
Commodity Contract [Member] | Cost of Goods Sold [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 1 | 0 | 21 | |
Commodity Contract [Member] | Sales [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 4 | (3) | 4 | |
Fair Value Hedging [Member] | Commodity Contract [Member] | Cost of Goods Sold [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | [3] | 7 | 0 | (1) |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | Cost of Goods Sold [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | [1] | 3 | 26 | 1 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | [2] | 21 | 9 | (3) |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | Sales [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | [1] | (17) | 51 | (4) |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | [2],[4] | 8 | 31 | 3 |
Cash Flow Hedging [Member] | Interest Rate Contracts [Member] | Interest Expense [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | [1] | (42) | (85) | (2) |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | [2] | (15) | (13) | (12) |
Cash Flow Hedging [Member] | Commodity Contract [Member] | Cost of Goods Sold [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | [1] | (12) | (92) | (106) |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | [2] | $ (113) | $ (81) | $ (14) |
[1] | Accumulated Other Comprehensive Loss (“AOCL”) | |||
[2] | For derivatives designated as cash flow hedges under the Derivatives and Hedging topic of the ASC, this represents the effective portion of the gain (loss) reclassified from AOCL into income during the period. | |||
[3] | The gain or loss on derivatives designated as hedges from ineffectiveness included in current earnings is not significant during 2016, 2015 or 2014. No gains or losses were excluded from the assessment of hedge effectiveness during 2016, 2015 or 2014. | |||
[4] | Gain or loss on foreign exchange contracts not designated as hedges was offset by a foreign currency transaction loss of $178 million, a gain of $42 million and a loss of $96 million during fiscal years 2016, 2015 and 2014, respectively. |
POSTRETIREMENT BENEFITS - PEN96
POSTRETIREMENT BENEFITS - PENSIONS (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated Net Loss to Be Amortized from AOCI | $ 52 | ||
Defined Benefit Plan, Net Periodic Benefit Cost | 70 | $ 70 | $ 97 |
Total [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $ 2,506 | $ 2,312 | $ 2,488 |
Expected long-term return on assets | 7.50% | 7.50% | 7.50% |
U.S. [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $ 2,324 | $ 2,142 | $ 2,298 |
Defined Benefit Plan, Net Periodic Benefit Cost | 50 | 51 | $ 78 |
Accumulated benefit obligation | $ 2,400 | $ 2,100 | |
Expected long-term return on assets | 7.50% | 7.50% | 7.50% |
Fair Value Assets Measured On Recurring Basis | $ 1,601 | $ 1,454 | |
Outside the U.S. [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 182 | 170 | $ 190 |
Defined Benefit Plan, Net Periodic Benefit Cost | 20 | 19 | $ 19 |
Accumulated benefit obligation | $ 214 | $ 192 | |
Expected long-term return on assets | 5.60% | 6.20% | 6.12% |
Fair Value Assets Measured On Recurring Basis | $ 167 | $ 156 | |
Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Market Capitalization | 2,000 | ||
Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Market Capitalization | 2,000 | ||
Future [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Notional value | 121 | 161 | |
Common And Preferred Stock Sold Short Derivatives [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Notional value | $ 56 | $ 57 |
POSTRETIREMENT BENEFITS - PEN97
POSTRETIREMENT BENEFITS - PENSIONS (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service Cost for Benefits Earned during the Year | $ 73 | $ 76 | $ 73 |
Interest Cost on Benefit Obligation | 100 | 95 | 99 |
Assumed Return on Plan Assets(1) | (159) | (159) | (145) |
Amortization of Unrecognized Net Loss | 52 | 56 | 66 |
Curtailment and Settlement Charge | 2 | 2 | 3 |
Other Adjustments | 2 | 0 | 1 |
Defined Benefit Plan, Net Periodic Benefit Cost | 70 | 70 | 97 |
U.S. [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service Cost for Benefits Earned during the Year | 61 | 64 | 61 |
Interest Cost on Benefit Obligation | 93 | 88 | 90 |
Assumed Return on Plan Assets(1) | (150) | (151) | (135) |
Amortization of Unrecognized Net Loss | 46 | 50 | 62 |
Curtailment and Settlement Charge | 0 | 0 | 0 |
Other Adjustments | 0 | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost | 50 | 51 | 78 |
Outside the U.S. [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service Cost for Benefits Earned during the Year | 12 | 12 | 12 |
Interest Cost on Benefit Obligation | 7 | 7 | 9 |
Assumed Return on Plan Assets(1) | (9) | (8) | (10) |
Amortization of Unrecognized Net Loss | 6 | 6 | 4 |
Curtailment and Settlement Charge | 2 | 2 | 3 |
Other Adjustments | 2 | 0 | 1 |
Defined Benefit Plan, Net Periodic Benefit Cost | 20 | 19 | $ 19 |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service Cost for Benefits Earned during the Year | 73 | 76 | |
Interest Cost on Benefit Obligation | $ 100 | $ 95 | |
Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assumed return on plan assets, non-liability matching gains (losses), period used in calculation (in years) | 4 years | ||
Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assumed return on plan assets, non-liability matching gains (losses), period used in calculation (in years) | 5 years |
POSTRETIREMENT BENEFITS - PEN98
POSTRETIREMENT BENEFITS - PENSIONS (Changes Recognized in OCI Pension) (Details) $ in Millions | 12 Months Ended |
Aug. 31, 2016USD ($) | |
Total [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Current Year Actuarial Loss | $ 111 |
Recognition of Actuarial Loss(1)(2) | (54) |
Total Recognized in Accumulated Other Comprehensive Loss | 57 |
U.S. [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Current Year Actuarial Loss | 100 |
Recognition of Actuarial Loss(1)(2) | (46) |
Total Recognized in Accumulated Other Comprehensive Loss | 54 |
Outside the U.S. [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Current Year Actuarial Loss | 11 |
Recognition of Actuarial Loss(1)(2) | (8) |
Total Recognized in Accumulated Other Comprehensive Loss | $ 3 |
Minimum [Member] | U.S. [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Amortization period of actuarial gains (losses) (in years) | 9 years |
Minimum [Member] | Outside the U.S. [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Amortization period of actuarial gains (losses) (in years) | 5 years |
Maximum [Member] | U.S. [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Amortization period of actuarial gains (losses) (in years) | 16 years |
Maximum [Member] | Outside the U.S. [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Amortization period of actuarial gains (losses) (in years) | 21 years |
POSTRETIREMENT BENEFITS - PEN99
POSTRETIREMENT BENEFITS - PENSIONS (Assumptions Used to Determine Pension Costs) (Details) | 12 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | |
U.S. [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount Rate | 4.33% | 4.04% | 4.44% |
Assumed Long-Term Rate of Return on Assets | 7.50% | 7.50% | 7.50% |
Annual Rate of Salary Increase (for plans that base benefits on final compensation level) | 4.00% | 4.00% | 4.00% |
Outside the U.S. [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount Rate | 2.66% | 3.01% | 3.62% |
Assumed Long-Term Rate of Return on Assets | 5.60% | 6.20% | 6.12% |
Annual Rate of Salary Increase (for plans that base benefits on final compensation level) | 3.76% | 3.92% | 3.95% |
POSTRETIREMENT BENEFITS - PE100
POSTRETIREMENT BENEFITS - PENSIONS (Schedule of Funded Status) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | ||
Change in Benefit Obligation: | ||||
Service cost | $ 73 | $ 76 | $ 73 | |
Interest cost | 100 | 95 | 99 | |
Change in Plan Assets: | ||||
Defined Benefit Plan Contributions By Employer Assets | 13 | 11 | ||
Total [Member] | ||||
Change in Benefit Obligation: | ||||
Benefit obligation at beginning of period | 2,440 | 2,469 | ||
Service cost | 73 | 76 | ||
Interest cost | 100 | 95 | ||
Plan participants’ contributions | 2 | 2 | ||
Actuarial loss | 223 | 22 | ||
Benefits paid | [1] | (150) | (179) | |
Plan Amendments | (6) | 0 | ||
Settlements / curtailments | (12) | (7) | ||
Currency gain | (1) | (38) | ||
Other | 30 | 0 | ||
Benefit Obligation at End of Period | 2,699 | 2,440 | 2,469 | |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of period | 2,312 | 2,488 | ||
Actual return on plan assets | 261 | 20 | ||
Employer contributions | [1] | 78 | 19 | |
Plan participants’ contributions | 2 | 2 | ||
Settlements | (8) | (7) | ||
Benefits paid | [1] | (150) | (179) | |
Currency gain | 0 | (31) | ||
Other | 11 | 0 | ||
Plan Assets at End of Period | 2,506 | 2,312 | 2,488 | |
Net Liability Recognized | 194 | 128 | ||
Fair Value of Plan Assets with PBOs in Excess of Plan Assets | 2,482 | 135 | ||
U.S. [Member] | ||||
Change in Benefit Obligation: | ||||
Benefit obligation at beginning of period | 2,190 | 2,196 | ||
Service cost | 61 | 64 | 61 | |
Interest cost | 93 | 88 | 90 | |
Plan participants’ contributions | 0 | 0 | ||
Actuarial loss | 203 | 13 | ||
Benefits paid | [1] | (137) | (171) | |
Plan Amendments | 0 | 0 | ||
Settlements / curtailments | 0 | 0 | ||
Currency gain | 0 | 0 | ||
Other | 17 | 0 | ||
Benefit Obligation at End of Period | 2,427 | 2,190 | 2,196 | |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of period | 2,142 | 2,298 | ||
Actual return on plan assets | 253 | 11 | ||
Employer contributions | [1] | 66 | 4 | |
Plan participants’ contributions | 0 | 0 | ||
Settlements | 0 | 0 | ||
Benefits paid | [1] | (137) | (171) | |
Currency gain | 0 | 0 | ||
Other | 0 | 0 | ||
Plan Assets at End of Period | 2,324 | 2,142 | 2,298 | |
Net Liability Recognized | 103 | 48 | ||
Fair Value of Plan Assets with PBOs in Excess of Plan Assets | 2,324 | 0 | ||
Outside the U.S. [Member] | ||||
Change in Benefit Obligation: | ||||
Benefit obligation at beginning of period | 250 | 273 | ||
Service cost | 12 | 12 | 12 | |
Interest cost | 7 | 7 | 9 | |
Plan participants’ contributions | 2 | 2 | ||
Actuarial loss | 20 | 9 | ||
Benefits paid | [1] | (13) | (8) | |
Plan Amendments | (6) | 0 | ||
Settlements / curtailments | (12) | (7) | ||
Currency gain | (1) | (38) | ||
Other | 13 | 0 | ||
Benefit Obligation at End of Period | 272 | 250 | 273 | |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of period | 170 | 190 | ||
Actual return on plan assets | 8 | 9 | ||
Employer contributions | [1] | 12 | 15 | |
Plan participants’ contributions | 2 | 2 | ||
Settlements | (8) | (7) | ||
Benefits paid | [1] | (13) | (8) | |
Currency gain | 0 | (31) | ||
Other | 11 | 0 | ||
Plan Assets at End of Period | 182 | 170 | $ 190 | |
Net Liability Recognized | 91 | 80 | ||
Fair Value of Plan Assets with PBOs in Excess of Plan Assets | $ 158 | $ 135 | ||
[1] | Employer contributions and benefits paid include $13 million and $11 million paid from employer assets for unfunded plans in fiscal years 2016 and 2015, respectively. |
POSTRETIREMENT BENEFITS - PE101
POSTRETIREMENT BENEFITS - PENSIONS (Assumptions Used to Determine Pension Benefit Obligation) (Details) | Aug. 31, 2016 | Aug. 31, 2015 |
U.S. [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount Rate | 3.43% | 4.33% |
Rate of Compensation Increase | 4.00% | 4.00% |
Outside the U.S. [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount Rate | 1.93% | 2.66% |
Rate of Compensation Increase | 3.60% | 3.76% |
POSTRETIREMENT BENEFITS - PE102
POSTRETIREMENT BENEFITS - PENSIONS (Projected Benefit Obligations in Excess of Plan Assets) (Details) - USD ($) $ in Millions | Aug. 31, 2016 | Aug. 31, 2015 |
Total [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
PBO | $ 2,676 | $ 289 |
Fair Value of Plan Assets with PBOs in Excess of Plan Assets | 2,482 | 135 |
U.S. [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
PBO | 2,426 | 73 |
Fair Value of Plan Assets with PBOs in Excess of Plan Assets | 2,324 | 0 |
Outside the U.S. [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
PBO | 250 | 216 |
Fair Value of Plan Assets with PBOs in Excess of Plan Assets | $ 158 | $ 135 |
POSTRETIREMENT BENEFITS - PE103
POSTRETIREMENT BENEFITS - PENSIONS (Accumulated Benefit Obligations in Excess of Plan Assets) (Details) - USD ($) $ in Millions | Aug. 31, 2016 | Aug. 31, 2015 |
Total [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
PBO | $ 226 | $ 183 |
ABO | 199 | 159 |
Fair Value of Plan Assets with ABOs in Excess of Plan Assets | 46 | 34 |
U.S. [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
PBO | 96 | 73 |
ABO | 91 | 69 |
Fair Value of Plan Assets with ABOs in Excess of Plan Assets | 0 | 0 |
Outside the U.S. [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
PBO | 130 | 110 |
ABO | 108 | 90 |
Fair Value of Plan Assets with ABOs in Excess of Plan Assets | $ 46 | $ 34 |
POSTRETIREMENT BENEFITS - PE104
POSTRETIREMENT BENEFITS - PENSIONS (Net Amount Recognized) (Details) - USD ($) $ in Millions | Aug. 31, 2016 | Aug. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Postretirement Liabilities | $ 371 | $ 336 |
Total [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Miscellaneous Short-Term Accruals | 14 | 12 |
Postretirement Liabilities | 188 | 150 |
Other Assets | (8) | (34) |
Net Liability Recognized | 194 | 128 |
U.S. [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Miscellaneous Short-Term Accruals | 9 | 7 |
Postretirement Liabilities | 94 | 67 |
Other Assets | 0 | (26) |
Net Liability Recognized | 103 | 48 |
Outside the U.S. [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Miscellaneous Short-Term Accruals | 5 | 5 |
Postretirement Liabilities | 94 | 83 |
Other Assets | (8) | (8) |
Net Liability Recognized | $ 91 | $ 80 |
POSTRETIREMENT BENEFITS - PE105
POSTRETIREMENT BENEFITS - PENSIONS (Pre-Tax Components Recognized in AOCI Pension) (Details) - USD ($) $ in Millions | Aug. 31, 2016 | Aug. 31, 2015 |
Total [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net Prior Service Cost | $ (6) | $ (1) |
Net Loss | 543 | 481 |
Total | 537 | 480 |
U.S. [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net Prior Service Cost | 0 | 0 |
Net Loss | 482 | 428 |
Total | 482 | 428 |
Outside the U.S. [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net Prior Service Cost | (6) | (1) |
Net Loss | 61 | 53 |
Total | $ 55 | $ 52 |
POSTRETIREMENT BENEFITS - PE106
POSTRETIREMENT BENEFITS - PENSIONS (Pension Plan Asset Allocation United States) (Details) - U.S. [Member] | 12 Months Ended | ||
Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of Plan Assets | 100.00% | 100.00% | |
Public Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of Plan Assets | 48.30% | 47.90% | |
Private Equity Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of Plan Assets | 4.50% | 4.80% | |
Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of Plan Assets | 42.40% | 42.70% | |
Real Estate [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of Plan Assets | 4.80% | 4.30% | |
Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of Plan Assets | 0.00% | 0.30% | |
Scenario, Forecast [Member] | Public Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation, Minimum | 44.00% | ||
Target Allocation, Maximum | 54.00% | ||
Scenario, Forecast [Member] | Private Equity Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation, Minimum | 2.00% | ||
Target Allocation, Maximum | 8.00% | ||
Scenario, Forecast [Member] | Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation, Minimum | 34.00% | ||
Target Allocation, Maximum | 48.00% | ||
Scenario, Forecast [Member] | Real Estate [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation, Minimum | 2.00% | ||
Target Allocation, Maximum | 8.00% | ||
Scenario, Forecast [Member] | Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation, Minimum | 0.00% | ||
Target Allocation, Maximum | 3.00% |
POSTRETIREMENT BENEFITS - PE107
POSTRETIREMENT BENEFITS - PENSIONS (Pension Plan Asset Allocation Foreign) (Details) - Outside the U.S. [Member] | 12 Months Ended | |||
Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of Plan Assets | 100.00% | 100.00% | ||
Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of Plan Assets | 30.90% | 32.00% | ||
Debt Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of Plan Assets | 49.90% | 49.30% | ||
Other [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of Plan Assets | 19.20% | 18.70% | ||
Scenario, Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target Allocation | [1] | 100.00% | ||
Scenario, Forecast [Member] | Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target Allocation | [1] | 37.20% | ||
Scenario, Forecast [Member] | Debt Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target Allocation | [1] | 44.60% | ||
Scenario, Forecast [Member] | Other [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target Allocation | [1] | 18.20% | ||
[1] | Monsanto’s plans outside the United States have a wide range of target allocations, and therefore the 2017 target allocations shown above reflect a weighted-average calculation of the target allocations of each of the plans. |
POSTRETIREMENT BENEFITS - PE108
POSTRETIREMENT BENEFITS - PENSIONS (United States Pension Plan Asset Fair Value) (Details) - USD ($) $ in Millions | Aug. 31, 2016 | Aug. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Investment at fair value, after cash collateral offset | $ 13 | $ 50 | |
Collective Investment Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments measured at net asset value | 717 | 679 | |
Future [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Notional Amount Of Derivatives Designated As Hedging Instruments | 121 | 161 | |
Common And Preferred Stock Sold Short Derivatives [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Notional Amount Of Derivatives Designated As Hedging Instruments | 56 | 57 | |
U.S. [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 1,601 | 1,454 | |
Cash Collateral Offset | [1] | 57 | 49 |
Total Investments at Fair Value | 2,484 | 2,384 | |
U.S. [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 566 | 503 | |
U.S. [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 762 | 674 | |
U.S. [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 216 | 228 | |
U.S. [Member] | Cash [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 72 | 19 | |
U.S. [Member] | Cash [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 31 | 19 | |
U.S. [Member] | Cash [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 41 | 0 | |
U.S. [Member] | Cash [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 0 | 0 | |
U.S. [Member] | US government debt [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 296 | 265 | |
U.S. [Member] | US government debt [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 0 | 0 | |
U.S. [Member] | US government debt [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 296 | 265 | |
U.S. [Member] | US government debt [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 0 | 0 | |
U.S. [Member] | US state and municipal debt [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 19 | 17 | |
U.S. [Member] | US state and municipal debt [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 0 | 0 | |
U.S. [Member] | US state and municipal debt [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 19 | 17 | |
U.S. [Member] | US state and municipal debt [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 0 | 0 | |
U.S. [Member] | Foreign government debt [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 9 | 10 | |
U.S. [Member] | Foreign government debt [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 0 | 0 | |
U.S. [Member] | Foreign government debt [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 9 | 10 | |
U.S. [Member] | Foreign government debt [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 0 | 0 | |
U.S. [Member] | US corporate debt [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 386 | 362 | |
U.S. [Member] | US corporate debt [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 0 | 0 | |
U.S. [Member] | US corporate debt [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 386 | 362 | |
U.S. [Member] | US corporate debt [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 0 | 0 | |
U.S. [Member] | Foreign corporate debt [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 65 | 70 | |
U.S. [Member] | Foreign corporate debt [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 0 | 0 | |
U.S. [Member] | Foreign corporate debt [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 65 | 70 | |
U.S. [Member] | Foreign corporate debt [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 0 | 0 | |
U.S. [Member] | US Term Bank Loans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 1 | 1 | |
U.S. [Member] | US Term Bank Loans [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 0 | 0 | |
U.S. [Member] | US Term Bank Loans [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 1 | 1 | |
U.S. [Member] | US Term Bank Loans [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 0 | 0 | |
U.S. [Member] | Common and Preferred Stock: Domestic small capitalization [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 15 | 30 | |
U.S. [Member] | Common and Preferred Stock: Domestic small capitalization [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 15 | 30 | |
U.S. [Member] | Common and Preferred Stock: Domestic small capitalization [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 0 | 0 | |
U.S. [Member] | Common and Preferred Stock: Domestic small capitalization [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 0 | 0 | |
U.S. [Member] | Common and Preferred Stock: Domestic large capitalization [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 311 | 266 | |
U.S. [Member] | Common and Preferred Stock: Domestic large capitalization [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 311 | 266 | |
U.S. [Member] | Common and Preferred Stock: Domestic large capitalization [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 0 | 0 | |
U.S. [Member] | Common and Preferred Stock: Domestic large capitalization [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 0 | 0 | |
U.S. [Member] | Common and Preferred Stock: International: Developed markets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 167 | 154 | |
U.S. [Member] | Common and Preferred Stock: International: Developed markets [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 167 | 154 | |
U.S. [Member] | Common and Preferred Stock: International: Developed markets [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 0 | 0 | |
U.S. [Member] | Common and Preferred Stock: International: Developed markets [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 0 | 0 | |
U.S. [Member] | Common and Preferred Stock: International: Emerging markets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 40 | 31 | |
U.S. [Member] | Common and Preferred Stock: International: Emerging markets [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 39 | 30 | |
U.S. [Member] | Common and Preferred Stock: International: Emerging markets [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 1 | 1 | |
U.S. [Member] | Common and Preferred Stock: International: Emerging markets [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 0 | 0 | |
U.S. [Member] | Private Equity Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 104 | 103 | |
U.S. [Member] | Private Equity Investments [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 0 | 0 | |
U.S. [Member] | Private Equity Investments [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 0 | 0 | |
U.S. [Member] | Private Equity Investments [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 104 | 103 | |
U.S. [Member] | Partnership Interest [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 32 | ||
U.S. [Member] | Partnership Interest [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 0 | ||
U.S. [Member] | Partnership Interest [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 0 | ||
U.S. [Member] | Partnership Interest [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 32 | ||
U.S. [Member] | Interest in Pooled Funds: Interest-bearing cash and cash equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash Collateral Offset | [1] | 60 | 53 |
Investment at fair value, after cash collateral offset | 4 | 1 | |
U.S. [Member] | Interest in Pooled Funds: Interest-bearing cash and cash equivalents [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment at fair value, before cash collateral offset | 0 | 0 | |
U.S. [Member] | Interest in Pooled Funds: Interest-bearing cash and cash equivalents [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment at fair value, before cash collateral offset | (56) | (52) | |
U.S. [Member] | Interest in Pooled Funds: Interest-bearing cash and cash equivalents [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment at fair value, before cash collateral offset | 0 | 0 | |
U.S. [Member] | Collective Investment Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments measured at net asset value | 679 | ||
U.S. [Member] | Interest in Pooled Collerateral Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments measured at net asset value | 166 | 251 | |
U.S. [Member] | Future [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash Collateral Offset | [1] | (3) | (4) |
Investment at fair value, after cash collateral offset | 0 | 0 | |
U.S. [Member] | Future [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment at fair value, before cash collateral offset | 3 | 4 | |
U.S. [Member] | Future [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment at fair value, before cash collateral offset | 0 | 0 | |
U.S. [Member] | Future [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment at fair value, before cash collateral offset | 0 | 0 | |
U.S. [Member] | Commercial Real Estate [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 112 | 93 | |
U.S. [Member] | Commercial Real Estate [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 0 | 0 | |
U.S. [Member] | Commercial Real Estate [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 0 | 0 | |
U.S. [Member] | Commercial Real Estate [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | $ 112 | $ 93 | |
[1] | Futures derivative assets and common and preferred stock sold short have been offset by cash collateral held by the counterparty. |
POSTRETIREMENT BENEFITS - PE109
POSTRETIREMENT BENEFITS - PENSION (United States Pension Plan Asset Level 3 Rollforward) (Details) - U.S. [Member] - Level 3 [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | $ 228 | $ 221 | |
Purchases | 37 | 32 | |
Sales | (60) | (51) | |
Realized/unrealized gains | 11 | 26 | |
Ending Balance | 216 | 228 | |
Net Unrealized Gains (Losses) Still Held Included in Earnings | [1] | (29) | 22 |
Private Equity Investments [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 103 | 87 | |
Purchases | 21 | 26 | |
Sales | (22) | (23) | |
Realized/unrealized gains | 2 | 13 | |
Ending Balance | 104 | 103 | |
Net Unrealized Gains (Losses) Still Held Included in Earnings | [1] | (7) | 12 |
Partnership Interests [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 32 | 32 | |
Purchases | 0 | 0 | |
Sales | (32) | 0 | |
Realized/unrealized gains | 0 | 0 | |
Ending Balance | 0 | 32 | |
Net Unrealized Gains (Losses) Still Held Included in Earnings | [1] | (32) | 1 |
Commercial Real Estate [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 93 | 94 | |
Purchases | 16 | 6 | |
Sales | (6) | (20) | |
Realized/unrealized gains | 9 | 13 | |
Ending Balance | 112 | 93 | |
Net Unrealized Gains (Losses) Still Held Included in Earnings | [1] | 10 | 9 |
Mortgage-Backed securities [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 0 | 8 | |
Purchases | 0 | 0 | |
Sales | 0 | (8) | |
Realized/unrealized gains | 0 | 0 | |
Ending Balance | 0 | 0 | |
Net Unrealized Gains (Losses) Still Held Included in Earnings | [1] | $ 0 | $ 0 |
[1] | 1) Represents the amount of total gains for the period attributable to change in unrealized gains (losses) relating to assets and liabilities classified as Level 3 that are still held as of Aug. 31, 2016, and Aug. 31, 2015. |
POSTRETIREMENT BENEFITS - PE110
POSTRETIREMENT BENEFITS - PENSIONS (Investments at Fair Value to Plan Assets Reconciliation) (Details) - U.S. [Member] - USD ($) $ in Millions | Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total Investments at Fair Value | $ 2,484 | $ 2,384 | |
Liability to return collateral held under securities lending agreement | (166) | ||
Non-interest bearing cash | 3 | ||
Accrued income / (expense) | 7 | ||
Other Liabilities and Receivables | (4) | ||
Plan Assets at the End of the Period | $ 2,324 | $ 2,142 | $ 2,298 |
POSTRETIREMENT BENEFITS - PE111
POSTRETIREMENT BENEFITS - PENSIONS (Foreign Pension Plan Asset Fair Value) (Details) - USD ($) $ in Millions | Aug. 31, 2016 | Aug. 31, 2015 |
Collective Investment Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Investments measured at net asset value | $ 717 | $ 679 |
Outside the U.S. [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 167 | 156 |
Total Investments at Fair Value | 182 | 170 |
Outside the U.S. [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 46 | 44 |
Outside the U.S. [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 79 | 81 |
Outside the U.S. [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 42 | 31 |
Outside the U.S. [Member] | Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 1 | 2 |
Outside the U.S. [Member] | Cash and Cash Equivalents [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 1 | 2 |
Outside the U.S. [Member] | Cash and Cash Equivalents [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 0 | 0 |
Outside the U.S. [Member] | Cash and Cash Equivalents [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 0 | 0 |
Outside the U.S. [Member] | Debt Securities - Foreign Government Debt [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 79 | 9 |
Outside the U.S. [Member] | Debt Securities - Foreign Government Debt [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 0 | 0 |
Outside the U.S. [Member] | Debt Securities - Foreign Government Debt [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 79 | 9 |
Outside the U.S. [Member] | Debt Securities - Foreign Government Debt [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 0 | 0 |
Outside the U.S. [Member] | Common and Preferred Stock [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 45 | 42 |
Outside the U.S. [Member] | Common and Preferred Stock [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 45 | 42 |
Outside the U.S. [Member] | Common and Preferred Stock [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 0 | 0 |
Outside the U.S. [Member] | Common and Preferred Stock [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 0 | 0 |
Outside the U.S. [Member] | Insurance Backed Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 42 | 31 |
Outside the U.S. [Member] | Insurance Backed Securities [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 0 | 0 |
Outside the U.S. [Member] | Insurance Backed Securities [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 0 | 0 |
Outside the U.S. [Member] | Insurance Backed Securities [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 42 | 31 |
Outside the U.S. [Member] | Interest in Pooled Funds: Common and preferred stock funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 5 | |
Outside the U.S. [Member] | Interest in Pooled Funds: Common and preferred stock funds [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 0 | |
Outside the U.S. [Member] | Interest in Pooled Funds: Common and preferred stock funds [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 5 | |
Outside the U.S. [Member] | Interest in Pooled Funds: Common and preferred stock funds [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 0 | |
Outside the U.S. [Member] | Interest in Pooled Funds: Government debt funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 8 | |
Outside the U.S. [Member] | Interest in Pooled Funds: Government debt funds [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 0 | |
Outside the U.S. [Member] | Interest in Pooled Funds: Government debt funds [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 8 | |
Outside the U.S. [Member] | Interest in Pooled Funds: Government debt funds [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 0 | |
Outside the U.S. [Member] | Interest in Pooled Funds: Corporate debt funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 59 | |
Outside the U.S. [Member] | Interest in Pooled Funds: Corporate debt funds [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 0 | |
Outside the U.S. [Member] | Interest in Pooled Funds: Corporate debt funds [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 59 | |
Outside the U.S. [Member] | Interest in Pooled Funds: Corporate debt funds [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 0 | |
Outside the U.S. [Member] | Collective Investment Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Investments measured at net asset value | $ 15 | $ 14 |
POSTRETIREMENT BENEFITS - PE112
POSTRETIREMENT BENEFITS - PENSION (Foreign Pension Plan Asset Level 3 Rollforward) (Details) - Outside the U.S. [Member] - USD ($) $ in Millions | 12 Months Ended | |
Aug. 31, 2016 | Aug. 31, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Settlements | $ 8 | $ 7 |
Insurance-Backed Securities [Member] | Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 31 | 25 |
Purchases | 5 | 6 |
Settlements | (6) | |
Net transfers into Level 3 | 12 | |
Ending Balance | $ 42 | $ 31 |
POSTRETIREMENT BENEFITS - PE113
POSTRETIREMENT BENEFITS - PENSION Summary of Unfunded Commitments and Redemption Features Measured Using NAV (Details) - USD ($) $ in Millions | 12 Months Ended | |
Aug. 31, 2016 | Aug. 31, 2015 | |
Collective Investment Funds [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Investments measured at net asset value | $ 717 | $ 679 |
U.S. [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 1,601 | 1,454 |
U.S. [Member] | Collective Investment Funds [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Investments measured at net asset value | 679 | |
U.S. [Member] | Interest in Pooled Collerateral Fund [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Investments measured at net asset value | 166 | 251 |
U.S. [Member] | Private Equity Investments [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 104 | 103 |
Unfunded Commitments | 53 | 53 |
U.S. [Member] | Partnership Interest [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 32 | |
Unfunded Commitments | $ 0 | |
Redemption Notice Period (in days) | 30 days | |
U.S. [Member] | Commercial Real Estate [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 112 | $ 93 |
Unfunded Commitments | $ 34 | $ 15 |
Redemption Notice Period (in days) | 45 days | 45 days |
POSTRETIREMENT BENEFITS - PE114
POSTRETIREMENT BENEFITS - PENSION (Expected Cash Flows Pension) (Details) $ in Millions | 12 Months Ended |
Aug. 31, 2016USD ($) | |
U.S. [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Employer Contributions 2017 (funded Plans) | $ 60 |
Benefits Paid Directly by Employer to Unfunded Plan | 9 |
2,017 | 195 |
2,018 | 182 |
2,019 | 181 |
2,020 | 180 |
2,021 | 179 |
2022-2026 | 840 |
Outside the U.S. [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Employer Contributions 2017 (funded Plans) | 6 |
Benefits Paid Directly by Employer to Unfunded Plan | 4 |
2,017 | 26 |
2,018 | 13 |
2,019 | 15 |
2,020 | 14 |
2,021 | 16 |
2022-2026 | $ 74 |
POSTRETIREMENT BENEFITS - HE115
POSTRETIREMENT BENEFITS - HEALTH CARE AND OTHER POSTEMPLOYMENT BENEFITS (Narrative) (Details) - Postretirement Benefit Costs [Member] - USD ($) $ in Millions | 12 Months Ended | ||||
Aug. 31, 2023 | Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Initial Trend Rate for Health Care Costs | 5.50% | 6.00% | 6.50% | ||
Ultimate Trend Rate for Health Care Costs | 5.00% | 5.00% | 5.00% | ||
Amortization of net gain | $ 5 | ||||
Amortization of net prior service credit | 5 | ||||
Scenario, Forecast [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Ultimate Trend Rate for Health Care Costs | 4.50% | 5.00% | |||
Postretirement Liabilities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Pension and Other Postretirement Defined Benefit Plans, Liabilities | 22 | $ 32 | |||
Other Liabilities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Pension and Other Postretirement Defined Benefit Plans, Liabilities | $ 65 | $ 71 |
POSTRETIREMENT BENEFITS - HE116
POSTRETIREMENT BENEFITS - HEALTH CARE AND OTHER POSTEMPLOYMENT BENEFITS (Net Periodic Cost Postretirement) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service Cost for Benefits Earned During the Period | $ 73 | $ 76 | $ 73 |
Interest Cost on Benefit Obligation | 100 | 95 | 99 |
Total Net Periodic Benefit Cost (less than $1 million in 2014) | 70 | 70 | 97 |
Postretirement Benefit Costs [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service Cost for Benefits Earned During the Period | 7 | 7 | 7 |
Interest Cost on Benefit Obligation | 6 | 6 | 7 |
Amortization of Prior Service Credit | 0 | (1) | (1) |
Amortization of Actuarial Gain | (4) | (4) | (13) |
Total Net Periodic Benefit Cost (less than $1 million in 2014) | $ 9 | $ 8 | $ 0 |
POSTRETIREMENT BENEFITS - HE117
POSTRETIREMENT BENEFITS - HEALTH CARE AND OTHER POSTEMPLOYMENT BENEFITS (Changes Recognized in OCI Postretirement) (Details) - Postretirement Benefit Costs [Member] - USD ($) $ in Millions | 12 Months Ended | |
Aug. 31, 2016 | Aug. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Actuarial Loss (Gain) | $ 27 | $ 2 |
Amortization of Prior Service Credit(1) | 0 | 1 |
Amortization of Actuarial Gain(1) | 4 | 4 |
Total Recognized in Accumulated Other Comprehensive Loss | $ 31 | $ 7 |
Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amortization period of actuarial gains (losses) (in years) | 7 years | |
Amortization period of net prior service credits (in years) | 7 years | |
Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amortization period of actuarial gains (losses) (in years) | 14 years | |
Amortization period of net prior service credits (in years) | 14 years |
POSTRETIREMENT BENEFITS - HE118
POSTRETIREMENT BENEFITS - HEALTH CARE AND OTHER POSTEMPLOYMENT BENEFITS (Assumptions Used to Determine Postretirement Costs) (Details) - Postretirement Benefit Costs [Member] | 12 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount Rate Postretirement | 3.85% | 3.60% | 3.95% |
Discount Rate Postemployment | 2.30% | 2.40% | 2.55% |
Initial Trend Rate for Health Care Costs | 5.50% | 6.00% | 6.50% |
Ultimate Trend Rate for Health Care Costs | 5.00% | 5.00% | 5.00% |
POSTRETIREMENT BENEFITS - HE119
POSTRETIREMENT BENEFITS - HEALTH CARE AND OTHER POSTEMPLOYMENT BENEFITS (One Percent Effect on Postretirement Costs and Benefit Obligation) (Details) - Postretirement Benefit Costs [Member] $ in Millions | 12 Months Ended |
Aug. 31, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Effect of 1 Percentage-Point Increase on Total Service and Interest Cost | $ 1 |
Effect of 1 Percentage-Point Decrease on Total Service and Interest Cost | (1) |
Effect of 1 Percentage-Point Increase on Postretirement Benefit Obligation | 4 |
Effect of 1 Percentage-Point Decrease on Postretirement Benefit Obligation | $ (4) |
POSTRETIREMENT BENEFITS - HE120
POSTRETIREMENT BENEFITS - HEALTH CARE AND OTHER POSTEMPLOYMENT BENEFITS (Benefit Obligations Postretirement) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | |
Change in Benefit Obligation: | |||
Service cost | $ 73 | $ 76 | $ 73 |
Interest cost | 100 | 95 | 99 |
Postretirement Benefit Costs [Member] | |||
Change in Benefit Obligation: | |||
Benefit obligation at beginning of period | 176 | 189 | |
Service cost | 7 | 7 | 7 |
Interest cost | 6 | 6 | 7 |
Actuarial loss (gain) | 27 | 2 | |
Plan participants’ contributions | 5 | 5 | |
Medicare Part D subsidy receipts | 0 | 1 | |
Benefits paid | (32) | (32) | |
Currency impact | 0 | (2) | |
Benefit Obligation at End of Period | $ 189 | $ 176 | $ 189 |
POSTRETIREMENT BENEFITS - HE121
POSTRETIREMENT BENEFITS - HEALTH CARE AND OTHER POSTEMPLOYMENT BENEFITS (Assumptions Used to Determine Postretirement Benefit Obligation) (Details) - Postretirement Benefit Costs [Member] | 12 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | ||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount Rate Postretirement | 3.00% | 3.85% | |
Discount Rate Postemployment | 1.75% | 2.30% | |
Initial Trend Rate for Health Care Costs | [1] | 7.50% | 5.50% |
Ultimate Trend Rate for Health Care Costs | 4.50% | 5.00% | |
[1] | As of Aug. 31, 2016, this rate is assumed to decrease to 4.5 percent for 2023 and remain at that level thereafter. |
POSTRETIREMENT BENEFITS - HE122
POSTRETIREMENT BENEFITS - HEALTH CARE AND OTHER POSTEMPLOYMENT BENEFITS (Postretirement Amounts Recognized in Statements of Consolidated Financial Position) (Details) - USD ($) $ in Millions | Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | |||
Postretirement Liabilities | $ 371 | $ 336 | |
Postretirement Benefit Costs [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Miscellaneous Short-Term Accruals | 27 | 22 | |
Postretirement Liabilities | 162 | 154 | |
Total Liability Recognized | $ 189 | $ 176 | $ 189 |
POSTRETIREMENT BENEFITS - HE123
POSTRETIREMENT BENEFITS - HEALTH CARE AND OTHER POSTEMPLOYMENT BENEFITS (Pre-Tax Components Recognized in AOCI Postretirement) (Details) - Postretirement Benefit Costs [Member] - USD ($) $ in Millions | Aug. 31, 2016 | Aug. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Actuarial Loss/(Gain) | $ 14 | $ (17) |
Prior Service Credit | 0 | 0 |
Total | $ 14 | $ (17) |
POSTRETIREMENT BENEFITS - HE124
POSTRETIREMENT BENEFITS - HEALTH CARE AND OTHER POSTEMPLOYMENT BENEFITS (Expected Cash Flows Postretirement) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | ||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 13 | $ 11 | |
Postretirement Benefit Costs [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 27 | ||
Prescription Drug Benefit, Effect of Subsidy on Net Periodic Postretirement Benefit Cost | 1 | ||
2,017 | [1],[2] | 27 | |
2,018 | [1],[2] | 24 | |
2,019 | [1],[2] | 21 | |
2,020 | [1],[2] | 20 | |
2,021 | [1],[2] | 19 | |
2022-2026 | [1],[2] | $ 74 | |
[1] | (1) Benefit payments are net of expected federal subsidy receipts related to prescription drug benefits granted under the Medicare Prescription Drug Improvement and Modernization Act of 2003, which are estimated to be less than $1 million annually. | ||
[2] | (2) Expected benefit payments include benefits paid directly by employer for unfunded plans. |
EMPLOYEE SAVINGS PLANS (Details
EMPLOYEE SAVINGS PLANS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Age of Employee to Participate | 18 years | ||
Defined Contribution Plan, Cost Recognized | $ 61 | $ 59 | $ 60 |
Defined Contribution Plan, Non-elective contribution | $ 8 | $ 6 | $ 3 |
Minimum [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Contribution Percentage | 1.00% | ||
Maximum [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Contribution Percentage | 25.00% | ||
Current Period [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employee's Gross Pay | 8.00% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 80.00% |
STOCK-BASED COMPENSATION PLA126
STOCK-BASED COMPENSATION PLANS (Narrative) (Details) $ / shares in Units, $ in Millions | Jan. 24, 2012shares | Aug. 31, 2016USD ($)$ / sharesshares | Aug. 31, 2015USD ($)$ / shares | Aug. 31, 2014USD ($)$ / shares | Nov. 01, 2013shares | Aug. 31, 2013shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Ratio for Shares | 0.11 | |||||
Options Exercisable, Options | 9,292,503 | |||||
Options Exercisable, Weighted-Average Remaining Contractual Life (Years) | 4 years | |||||
Options Exercisable, Weighted-Average Exercise Price | $ / shares | $ 81.25 | |||||
Exercisable intrinsic value | $ | $ 239 | |||||
Equity Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
Long-Term Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized | 33,600,000 | |||||
Decrease in remaining shares available | 2.7 | |||||
Plan term | 10 years | |||||
The Climate Corporation 2006 Stock Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Plan term | 10 years | |||||
Director Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Grant date fair value | $ | $ 16 | |||||
Share-based liabilities paid | $ | $ 10 | $ 0 | $ 1 | |||
Awards outstanding and vested | 234,587 | |||||
Nonqualified stock options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Nonqualified stock options vested or expected to vest | 12,611,875 | |||||
Weighted average contractual term | 5 years | |||||
Weighted average exercise price | $ / shares | $ 85.25 | |||||
Vested or expected to vest, intrinsic value | $ | $ 279 | |||||
Weighted average grant date fair value | $ / shares | $ 20.64 | $ 24.38 | $ 38.23 | |||
Exercises in period intrinsic value | $ | $ 66 | $ 150 | $ 273 | |||
Pretax unrecognized compensation expense | $ | $ 36 | |||||
Weighted average remaining vesting period | 1 year 3 months | |||||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average contractual term | 1 year 5 months | |||||
Weighted average grant date fair value | $ / shares | $ 87.85 | $ 108.42 | $ 102.10 | |||
Pretax unrecognized compensation expense | $ | $ 70 | |||||
Minimum [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
Maximum [Member] | Equity Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Maximum [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Long-Term Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized | 8,600,000 | |||||
Additional shares authorized | 25,000,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 19,100,000 | |||||
The Climate Corporation 2006 Stock Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,000,000 | |||||
The Climate Corporation 2006 Stock Plan [Member] | Long-Term Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized | 2,000,000 |
STOCK-BASED COMPENSATION PLA127
STOCK-BASED COMPENSATION PLANS (Components of Stock Based Compensation) (Details) - USD ($) | 12 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | |
Allocated Stock-Based Compensation Expense [Line Items] | |||
Excess tax benefits from stock-based compensation | $ 16,000,000 | $ 44,000,000 | $ 72,000,000 |
Cost of Goods Sold [Member] | |||
Allocated Stock-Based Compensation Expense [Line Items] | |||
Allocated Share-based Compensation Expense | 14,000,000 | 8,000,000 | 8,000,000 |
Selling, General and Administrative Expenses [Member] | |||
Allocated Stock-Based Compensation Expense [Line Items] | |||
Allocated Share-based Compensation Expense | 70,000,000 | 80,000,000 | 82,000,000 |
Research and Development Expense [Member] | |||
Allocated Stock-Based Compensation Expense [Line Items] | |||
Allocated Share-based Compensation Expense | 28,000,000 | 31,000,000 | 31,000,000 |
Restructuring Charges [Member] | |||
Allocated Stock-Based Compensation Expense [Line Items] | |||
Allocated Share-based Compensation Expense | (10,000,000) | 0 | 0 |
Operating Expense [Member] | |||
Allocated Stock-Based Compensation Expense [Line Items] | |||
Allocated Share-based Compensation Expense | 102,000,000 | 119,000,000 | 121,000,000 |
Continuing Operations [Member] | |||
Allocated Stock-Based Compensation Expense [Line Items] | |||
Allocated Share-based Compensation Expense | (102,000,000) | (119,000,000) | (121,000,000) |
Income Tax Benefit [Member] | |||
Allocated Stock-Based Compensation Expense [Line Items] | |||
Allocated Share-based Compensation Expense | 38,000,000 | 38,000,000 | 40,000,000 |
Net Income (Loss) [Member] | |||
Allocated Stock-Based Compensation Expense [Line Items] | |||
Allocated Share-based Compensation Expense | (64,000,000) | (81,000,000) | (81,000,000) |
Basic Loss Per Share [Member] | |||
Allocated Stock-Based Compensation Expense [Line Items] | |||
Allocated Share-based Compensation Expense | (0.14) | (0.17) | (0.16) |
Diluted Loss Per Share [Member] | |||
Allocated Stock-Based Compensation Expense [Line Items] | |||
Allocated Share-based Compensation Expense | (0.14) | (0.17) | (0.15) |
Net Cash Required By Operating Activities [Member] | |||
Allocated Stock-Based Compensation Expense [Line Items] | |||
Excess tax benefits from stock-based compensation | $ 16,000,000 | $ 44,000,000 | $ 72,000,000 |
STOCK-BASED COMPENSATION PLA128
STOCK-BASED COMPENSATION PLANS (Rollforward of Stock Options) (Details) - $ / shares | 12 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Beginning Balance, Options | 12,486,754 | 13,437,635 | 15,863,887 |
Beginning Balance, Outstanding Weighted-Average Exercise Price | $ 80.88 | $ 72.23 | $ 65.59 |
Options, Granted | 2,264,950 | 1,730,040 | 2,302,786 |
Outstanding Weighted-Average Exercise Price, Granted | $ 91.39 | $ 112.94 | $ 84.97 |
Options, Exercised | (1,502,763) | (2,439,135) | (4,537,028) |
Outstanding Weighted-Average Exercise Price, Exercised | $ 97.51 | $ 56.47 | $ 54.72 |
Options, Forfeited | (359,487) | (241,786) | (192,010) |
Outstanding Weighted-Average Exercise Price, Forfeited | $ 92.65 | $ 75.56 | $ 90.06 |
Ending Balance, Options | 12,889,454 | 12,486,754 | 13,437,635 |
Ending Balance, Outstanding Weighted-Average Exercise Price | $ 85.56 | $ 80.88 | $ 72.23 |
STOCK-BASED COMPENSATION PLA129
STOCK-BASED COMPENSATION PLANS (Restricted Stock) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | |
Restricted Stock [Member] | |||
Stock Based compensation other than options [Roll Forward] | |||
Nonvested as of | 4,042 | ||
Granted | 9,893 | ||
Vested | (6,428) | ||
Forfeitures | 0 | ||
Nonvested as of | 7,507 | 4,042 | |
Other Than Options Weighted Average Fair Value [Abstract] | |||
Nonvested as of | $ 111.37 | ||
Granted | 91.29 | ||
Vested | 97.73 | ||
Forfeitures | 0 | ||
Nonvested as of | $ 96.58 | $ 111.37 | |
Pre-tax unrecognized compensation expense, net of estimated forfeitures as applicable | $ 0 | ||
Additional Information [Abstract] | |||
Weighted-average grant-date fair value during fiscal year | $ 91.29 | $ 115.65 | $ 108.10 |
Total fair value of equity vested during fiscal year | $ 1 | $ 0 | $ 1 |
Weighted average contractual term | 2 years 2 months | ||
Restricted Stock Units (RSUs) [Member] | |||
Stock Based compensation other than options [Roll Forward] | |||
Nonvested as of | 1,939,822 | ||
Granted | 822,423 | ||
Vested | (730,696) | ||
Forfeitures | (342,631) | ||
Nonvested as of | 1,688,918 | 1,939,822 | |
Other Than Options Weighted Average Fair Value [Abstract] | |||
Nonvested as of | $ 99.74 | ||
Granted | 87.85 | ||
Vested | 90.28 | ||
Forfeitures | 97.18 | ||
Nonvested as of | $ 98.56 | $ 99.74 | |
Pre-tax unrecognized compensation expense, net of estimated forfeitures as applicable | $ 70 | ||
Additional Information [Abstract] | |||
Weighted-average grant-date fair value during fiscal year | $ 87.85 | $ 108.42 | $ 102.10 |
Total fair value of equity vested during fiscal year | $ 66 | $ 52 | $ 32 |
Weighted average contractual term | 1 year 5 months | ||
Directors Deferred Stock [Member] | |||
Stock Based compensation other than options [Roll Forward] | |||
Nonvested as of | 0 | ||
Granted | 23,504 | ||
Vested | (22,410) | ||
Forfeitures | (1,094) | ||
Nonvested as of | 0 | 0 | |
Other Than Options Weighted Average Fair Value [Abstract] | |||
Nonvested as of | $ 0 | ||
Granted | 94.87 | ||
Vested | 94.83 | ||
Forfeitures | 95.80 | ||
Nonvested as of | $ 0 | $ 0 | |
Pre-tax unrecognized compensation expense, net of estimated forfeitures as applicable | $ 0 | ||
Additional Information [Abstract] | |||
Weighted-average grant-date fair value during fiscal year | $ 94.87 | $ 115.65 | $ 98.38 |
Total fair value of equity vested during fiscal year | $ 2 | $ 2 | $ 0 |
STOCK-BASED COMPENSATION PLA130
STOCK-BASED COMPENSATION PLANS (Assumptions Used to Value Stock Options) (Details) | 12 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Expected Dividend Yield | 1.90% | 1.70% | 1.70% |
Expected Volatility Minimum | 23.00% | 20.00% | 19.00% |
Expected Volatility Maximum | 35.00% | 35.00% | 36.00% |
Weighted-Average Volatility | 27.50% | 25.90% | 27.50% |
Risk Free Interest Rate Minimum | 1.40% | 1.56% | 0.70% |
Risk Free Interest Rate Maximum | 2.05% | 2.11% | 2.34% |
Weighted-Average Risk-Free Interest Rate | 1.78% | 1.99% | 1.66% |
Expected Option Life (in years) | 7 years | 7 years | 6 years |
CAPITAL STOCK (Common Stock and
CAPITAL STOCK (Common Stock and Preferred Stock) (Details) - $ / shares | Aug. 31, 2016 | Aug. 31, 2015 |
CAPITAL STOCK [Abstract] | ||
Common stock, Authorized | 1,500,000,000 | 1,500,000,000 |
Common stock, Par value | $ 0.01 | $ 0.01 |
Preferred Stock Authorized | 20,000,000 | 20,000,000 |
Preferred stock, Par value | $ 0.01 | $ 0.01 |
Preferred stock, Outstanding | 0 | 0 |
Common stock, Outstanding | 437,795,024 | 467,903,711 |
CAPITAL STOCK (Treasury Stock)
CAPITAL STOCK (Treasury Stock) (Details) - USD ($) shares in Millions, $ in Millions | Jan. 21, 2016 | Jan. 14, 2016 | Oct. 13, 2015 | Jul. 01, 2014 | Jan. 21, 2016 | Jan. 14, 2016 | Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | Oct. 09, 2015 | Jun. 30, 2014 |
Treasury Stock Repurchase [Line Items] | |||||||||||
Share purchases under plans | $ 3,001 | $ 835 | $ 7,082 | ||||||||
Accelerated Share Repurchase [Member] | |||||||||||
Treasury Stock Repurchase [Line Items] | |||||||||||
Stock Repurchase Program, Authorized Amount | $ 6,000 | $ 3,000 | |||||||||
Share Repurchase, Initial Shares Delivered | 28.4 | ||||||||||
Forward Contract Indexed to Issuer's Equity, Settlement Alternatives, Cash, at Fair Value | $ 450 | ||||||||||
Treasury Stock, Shares, Acquired | 1.9 | 1.9 | 51.8 | 16.1 | 16.1 | ||||||
Shares delivered upon settlement | 13.2 | ||||||||||
Share purchases under plans | 3,000 | ||||||||||
Share Repurchase, Initial Payment | $ 2,600 | ||||||||||
Repurchase Plan 2014 [Member] | |||||||||||
Treasury Stock Repurchase [Line Items] | |||||||||||
Stock Repurchase Program, Authorized Amount | $ 10,000 | ||||||||||
Stock repurchase program period | 2 years | ||||||||||
Share repurchase, shares received | 32.2 | 20.2 | |||||||||
Stock Repurchased During Period, Shares | 7 | ||||||||||
Share purchases under plans | $ 1,500 | $ 1,500 | $ 822 |
ACCUMULATED OTHER COMPREHENS133
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (2,808) | $ (2,801) | $ (1,114) | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (92) | (1,744) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 85 | 57 | ||
Total Other Comprehensive (Loss) Income, Net of Tax | (7) | (1,687) | 164 | |
Other comprehensive (income) loss, reclassification adjustment, available for sale securities, tax | (1) | 1 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | (44) | (23) | (9) | |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax | (18) | (18) | ||
Accumulated Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (2,292) | (2,327) | (731) | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 35 | (1,596) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | ||
Total Other Comprehensive (Loss) Income, Net of Tax | 35 | (1,596) | ||
Available-for-sale Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 2 | (4) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 1 | 2 | 5 | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (2) | 0 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1 | (3) | ||
Total Other Comprehensive (Loss) Income, Net of Tax | (1) | (3) | ||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 99 | 54 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (177) | (190) | (167) | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (42) | (54) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 55 | 31 | ||
Total Other Comprehensive (Loss) Income, Net of Tax | 13 | (23) | ||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (340) | (286) | $ (221) | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (83) | (94) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 29 | 29 | ||
Total Other Comprehensive (Loss) Income, Net of Tax | (54) | (65) | ||
Pension Plan [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 47 | 47 | ||
Selling, General and Administrative Expenses [Member] | Pension Plan [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 31 | 31 | ||
Other Expense [Member] | Sale of Securities [Member] | Available-for-sale Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 2 | (4) | ||
Commodity Contract [Member] | Cost of Goods Sold [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 113 | 81 | ||
Interest Rate Contracts [Member] | Interest Expense [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 15 | 13 | ||
Foreign Exchange Contract [Member] | Sales [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (8) | (31) | ||
Foreign Exchange Contract [Member] | Cost of Goods Sold [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (21) | (9) | ||
Inventory [Member] | Pension Plan [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [1] | $ 16 | $ 16 | |
[1] | (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 $16 million of net periodic benefit cost to inventory, of which approximately $16 million was recognized in cost of goods sold during each of the twelve months ended Aug. 31, 2016, and Aug. 31, 2015, respectively. See Note 16 — Postretirement Benefits - Pensions — and Note 17 — Postretirement Benefits - Health Care and Other Postemployment Benefits — for additional information. |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - shares shares in Millions | 12 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | |
Earnings Per Share [Abstract] | |||
Weighted-Average Number of Common Shares | 442.7 | 476.9 | 519.3 |
Dilutive Potential Common Shares | 4.4 | 4.5 | 5.6 |
Antidilutive Potential Common Shares | 5.4 | 1.7 | 1.7 |
Shares Excluded From Computation of Dilutive Potential Shares with Exercise Prices Greater than the Average Market Price of Common Shares for the Period | 3.2 | 0.1 | 0 |
SUPPLEMENTAL CASH FLOW INFOR135
SUPPLEMENTAL CASH FLOW INFORMATION SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | |
Supplemental Cash Flow Information [Abstract] | |||
Interest | $ 387 | $ 343 | $ 158 |
Taxes | $ 841 | $ 992 | $ 1,019 |
SUPPLEMENTAL CASH FLOW INFOR136
SUPPLEMENTAL CASH FLOW INFORMATION Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | |
Noncash Or Part Noncash Acquisitions [Line Items] | |||
Dividends payable | $ 237 | $ 254 | $ 239 |
Non cash capital expenditures | $ 210 | $ 225 | $ 258 |
COMMITMENTS AND CONTINGENCIE137
COMMITMENTS AND CONTINGENCIES (Contractual Obligations) (Details) $ in Millions | Aug. 31, 2016USD ($) | |
Contractual Obligations [Line Items] | ||
Total | $ 19,711 | |
2,017 | 3,822 | |
2,018 | 1,188 | |
2,019 | 1,589 | |
2,020 | 657 | |
2,021 | 1,075 | |
2022 and beyond | 11,310 | |
Total Debt, including Capital Lease Obligations [Member] | ||
Contractual Obligations [Line Items] | ||
Total | 9,040 | |
2,017 | 1,587 | |
2,018 | 306 | |
2,019 | 804 | |
2,020 | 5 | |
2,021 | 500 | |
2022 and beyond | 5,838 | |
Interest Payments Relating to Long-Term Debt And Capital Lease Obligations [Member] | ||
Contractual Obligations [Line Items] | ||
Total | 6,320 | [1] |
2,017 | 310 | [1] |
2,018 | 301 | [1] |
2,019 | 282 | [1] |
2,020 | 269 | [1] |
2,021 | 267 | [1] |
2022 and beyond | 4,891 | [1] |
Operating Lease Obligations [Member] | ||
Contractual Obligations [Line Items] | ||
Total | 520 | |
2,017 | 151 | |
2,018 | 98 | |
2,019 | 76 | |
2,020 | 61 | |
2,021 | 47 | |
2022 and beyond | 87 | |
Uncompleted additions to property [Member] | ||
Contractual Obligations [Line Items] | ||
Total | 271 | |
2,017 | 271 | |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
2022 and beyond | 0 | |
Commitments to purchase inventories [Member] | ||
Contractual Obligations [Line Items] | ||
Total | 2,550 | |
2,017 | 1,282 | |
2,018 | 375 | |
2,019 | 335 | |
2,020 | 243 | |
2,021 | 183 | |
2022 and beyond | 132 | |
Commitments to purchase breeding research [Member] | ||
Contractual Obligations [Line Items] | ||
Total | 495 | |
2,017 | 55 | |
2,018 | 55 | |
2,019 | 55 | |
2,020 | 55 | |
2,021 | 55 | |
2022 and beyond | 220 | |
R and D alliances and joint venture obligations [Member] | ||
Contractual Obligations [Line Items] | ||
Total | 150 | |
2,017 | 48 | |
2,018 | 37 | |
2,019 | 26 | |
2,020 | 18 | |
2,021 | 17 | |
2022 and beyond | 4 | |
Postretirement liabilities [Member] | ||
Contractual Obligations [Line Items] | ||
Total | 106 | [2] |
2,017 | 106 | [2] |
2,018 | 0 | [2] |
2,019 | 0 | [2] |
2,020 | 0 | [2] |
2,021 | 0 | [2] |
2022 and beyond | 0 | [2] |
Unrecognized tax benefits [Member] | ||
Contractual Obligations [Line Items] | ||
Total | 70 | [3] |
2,017 | 0 | [3] |
2,018 | 0 | [3] |
2,019 | 0 | [3] |
2,020 | 0 | [3] |
2,021 | 0 | [3] |
2022 and beyond | 0 | [3] |
Other liabilities [Member] | ||
Contractual Obligations [Line Items] | ||
Total | 189 | |
2,017 | 12 | |
2,018 | 16 | |
2,019 | 11 | |
2,020 | 6 | |
2,021 | 6 | |
2022 and beyond | $ 138 | |
[1] | For variable rate debt, interest is calculated using the applicable rates as of Aug. 31, 2016. | |
[2] | Includes the company’s planned pension and other postretirement benefit contributions for 2017. The actual amounts funded in 2017 may differ from the amounts listed above. Contributions in 2018 and beyond are excluded as those amounts are unknown. Refer to Note 16 — Postretirement Benefits - Pensions — and Note 17 — Postretirement Benefits - Health Care and Other Postemployment Benefits — for more information. | |
[3] | Unrecognized tax benefits relate to reserves for uncertain tax positions recorded under the Income Taxes topic of the ASC. The company is unable to reasonably predict the timing of tax settlements, as tax audits can involve complex issues, and the resolution of those issues may span multiple years, particularly if subject to negotiation or litigation. See Note 12 — Income Taxes — for more information. |
COMMITMENTS AND CONTINGENCIE138
COMMITMENTS AND CONTINGENCIES (Leases and Guarantees Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent Expense | $ 256 | $ 273 | $ 272 |
Guarantees for indemnification liability | $ 1 | $ 1 |
COMMITMENTS AND CONTINGENCIE139
COMMITMENTS AND CONTINGENCIES (Environmental Liabilities Narrative) (Details) | 12 Months Ended |
Aug. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Discount Rate Minimum | 3.00% |
Discount Rate Maximum | 3.50% |
Environmental remediation of sites company involvement minimum | 1.00% |
Environmental remediation of sites company involvement maximum | 100.00% |
COMMITMENTS AND CONTINGENCIE140
COMMITMENTS AND CONTINGENCIES (Discounted and Undiscounted Environmental and Litigation Liabilities) (Details) - USD ($) $ in Millions | Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 |
Commitments and Contingencies Disclosure [Abstract] | ||||
Aggregate Undiscounted Amount | $ 405 | |||
2,017 | 12 | |||
2,018 | 16 | |||
2,019 | 11 | |||
2,020 | 6 | |||
2,021 | 6 | |||
Undiscounted aggregate expected payments after 2022 | 138 | |||
Aggregate Amount to be Discounted as of Aug. 31, 2016 | 189 | |||
Discount, as of Aug. 31, 2016 | (49) | |||
Aggregate Discounted Amount Accrued as of Aug. 31, 2016 | 140 | |||
Total Environmental and Litigation Reserve as of Aug. 31, 2016 | $ 545 | $ 356 | $ 291 | $ 271 |
COMMITMENTS AND CONTINGENCIE141
COMMITMENTS AND CONTINGENCIES (Environmental and Litigation Liabilities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Beginning Balance | $ 356 | $ 291 | $ 271 |
Payments | (117) | (67) | (69) |
Accretion | 3 | 3 | 7 |
Adjustments to liabilities recognized | 303 | 129 | 82 |
Ending Balance | $ 545 | $ 356 | $ 291 |
COMMITMENTS AND CONTINGENCIE142
COMMITMENTS AND CONTINGENCIES (Litigation Narrative) (Details) $ in Millions | 1 Months Ended | 12 Months Ended |
Sep. 30, 2016USD ($) | Aug. 31, 2016USD ($)personclaim | |
State Courts in St Louis, Missouri and Los Angeles, California [Member] | Pending Litigation [Member] | Personal Injury Lawsuits [Member] | ||
Loss Contingencies [Line Items] | ||
Number of claims | claim | 30 | |
Number of plaintiffs | person | 750 | |
State Courts in St Louis, Missouri and Los Angeles, California [Member] | Settled Litigation [Member] | Personal Injury Lawsuits [Member] | Maximum [Member] | Subsequent Event [Member] | ||
Loss Contingencies [Line Items] | ||
Settlement amount | $ 280 | |
State Courts in St Louis, Missouri and Los Angeles, California [Member] | Settled Litigation [Member] | Personal Injury Lawsuits [Member] | Other Current Liabilities [Member] | ||
Loss Contingencies [Line Items] | ||
Settlement accrual | $ 280 | |
Selling, General and Administrative Expenses [Member] | Pending Litigation [Member] | SEC Financial Reporting Investigation [Member] | ||
Loss Contingencies [Line Items] | ||
Litigation expense | $ 80 |
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 (Op
SEGMENT AND GEOGRAPHIC DATA (Operating Segment Information) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||
Aug. 31, 2016USD ($) | May 31, 2016USD ($) | Feb. 29, 2016USD ($) | Nov. 30, 2015USD ($) | Aug. 31, 2015USD ($) | May 31, 2015USD ($) | Feb. 28, 2015USD ($) | Nov. 30, 2014USD ($) | Aug. 31, 2016USD ($)segment | Aug. 31, 2015USD ($) | Aug. 31, 2014USD ($) | |||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Number of reportable segments | segment | 2 | ||||||||||||||||
Net Sales | $ 2,562 | $ 4,189 | $ 4,532 | $ 2,219 | $ 2,355 | $ 4,579 | $ 5,197 | $ 2,870 | $ 13,502 | [1] | $ 15,001 | [1] | $ 15,855 | [1] | |||
Gross Profit | 1,138 | $ 2,380 | $ 2,598 | $ 901 | 996 | $ 2,736 | $ 3,039 | $ 1,411 | 7,017 | 8,182 | 8,574 | ||||||
EBIT | [2],[3] | 2,408 | [4] | 3,500 | 3,952 | ||||||||||||
Depreciation and Amortization Expense | 727 | 716 | 691 | ||||||||||||||
Equity Affiliate Loss (Income) | [5] | 12 | 13 | 8 | |||||||||||||
Total Assets | [6] | 19,736 | 21,920 | 19,736 | 21,920 | 21,918 | |||||||||||
Property, Plant and Equipment Purchases | 923 | 967 | 1,005 | ||||||||||||||
Equity Method Investments | 152 | 114 | 152 | 114 | 126 | ||||||||||||
Income from operations of discontinued businesses | 27 | 45 | 22 | ||||||||||||||
Total Seeds and Genomics [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Net Sales | [1] | 9,988 | 10,243 | 10,740 | |||||||||||||
Gross Profit | 6,074 | 6,277 | 6,596 | ||||||||||||||
EBIT | 2,292 | [2],[3] | 2,206 | 2,607 | |||||||||||||
Depreciation and Amortization Expense | 593 | 586 | 568 | ||||||||||||||
Equity Affiliate Loss (Income) | [5] | 13 | 13 | 8 | |||||||||||||
Total Assets | 15,772 | [6] | 17,330 | [6] | 15,772 | [6] | 17,330 | [6] | 17,548 | [5] | |||||||
Property, Plant and Equipment Purchases | 727 | 762 | 831 | ||||||||||||||
Equity Method Investments | 152 | 114 | 152 | 114 | 126 | ||||||||||||
Corn seed and traits [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Net Sales | 5,825 | [1] | 5,953 | 6,401 | |||||||||||||
Gross Profit | 3,450 | 3,557 | 3,932 | ||||||||||||||
Soybean seed and traits [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Net Sales | 2,162 | [1] | 2,276 | 2,102 | |||||||||||||
Gross Profit | 1,399 | 1,510 | 1,364 | ||||||||||||||
Cotton seed and traits [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Net Sales | 440 | [1] | 523 | 665 | |||||||||||||
Gross Profit | 282 | 408 | 461 | ||||||||||||||
Vegetable seeds [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Net Sales | 801 | [1] | 816 | 867 | |||||||||||||
Gross Profit | 401 | 372 | 401 | ||||||||||||||
All other crops seeds and traits [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Net Sales | 760 | [1] | 675 | 705 | |||||||||||||
Gross Profit | 542 | 430 | 438 | ||||||||||||||
Total Agricultural Productivity [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Net Sales | [1] | 3,514 | 4,758 | 5,115 | |||||||||||||
Gross Profit | 943 | 1,905 | 1,978 | ||||||||||||||
EBIT | 116 | [2],[3] | 1,294 | 1,345 | |||||||||||||
Depreciation and Amortization Expense | 134 | 130 | 123 | ||||||||||||||
Equity Affiliate Loss (Income) | [5] | (1) | 0 | 0 | |||||||||||||
Total Assets | [6] | 3,964 | 4,590 | 3,964 | 4,590 | 4,370 | |||||||||||
Property, Plant and Equipment Purchases | 196 | 205 | 174 | ||||||||||||||
Equity Method Investments | $ 0 | $ 0 | 0 | 0 | 0 | ||||||||||||
Agricultural productivity [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Net Sales | 3,514 | [1] | 4,758 | 5,115 | |||||||||||||
Gross Profit | $ 943 | $ 1,905 | $ 1,978 | ||||||||||||||
[1] | Represents net sales from continuing operations | ||||||||||||||||
[2] | Agricultural Productivity EBIT includes income of $27 million, $45 million and $22 million from discontinued operations for fiscal years 2016, 2015 and 2014, respectively. | ||||||||||||||||
[3] | EBIT is defined as earnings (loss) before interest and taxes; see the following table for reconciliation. Earnings (loss) is intended to mean net income (loss) attributable to Monsanto Company as presented in the Statements of Consolidated Operations under GAAP. EBIT is an operating performance measure for the two reportable segments. | ||||||||||||||||
[4] | Includes the income from operations of discontinued businesses and pre-tax noncontrolling interest | ||||||||||||||||
[5] | Equity affiliate loss is included in other expense, net in the Statements of Consolidated Operations. | ||||||||||||||||
[6] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjdmMGFkODdjMGI4YzQ2N2RhODM3YzQyMTJiMzYxOTE3fFRleHRTZWxlY3Rpb246N0Q5Qzg1QTQxQzQwNDg5MzU1RTc3NzU1OEIwQzc5MzMM} |
SEGMENT AND GEOGRAPHIC DATA (Th
SEGMENT AND GEOGRAPHIC DATA (The reconciliation of EBIT to Net Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Aug. 31, 2016 | May 31, 2016 | Feb. 29, 2016 | Nov. 30, 2015 | Aug. 31, 2015 | May 31, 2015 | Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | |||
Segment Reporting [Abstract] | |||||||||||||
EBIT | [1],[2] | $ 2,408 | [3] | $ 3,500 | $ 3,952 | ||||||||
Interest Expense — Net | 362 | 328 | 146 | ||||||||||
Income Tax Provision | [4] | 710 | 858 | 1,066 | |||||||||
Net Income Attributable to Monsanto Company | $ (191) | $ 717 | $ 1,063 | $ (253) | $ (495) | $ 1,141 | $ 1,425 | $ 243 | $ 1,336 | $ 2,314 | $ 2,740 | ||
[1] | Agricultural Productivity EBIT includes income of $27 million, $45 million and $22 million from discontinued operations for fiscal years 2016, 2015 and 2014, respectively. | ||||||||||||
[2] | EBIT is defined as earnings (loss) before interest and taxes; see the following table for reconciliation. Earnings (loss) is intended to mean net income (loss) attributable to Monsanto Company as presented in the Statements of Consolidated Operations under GAAP. EBIT is an operating performance measure for the two reportable segments. | ||||||||||||
[3] | Includes the income from operations of discontinued businesses and pre-tax noncontrolling interest | ||||||||||||
[4] | Includes the income tax provision from continuing operations, the income tax benefit on noncontrolling interest and the income tax provision on discontinued operations |
SEGMENT AND GEOGRAPHIC DATA (Ne
SEGMENT AND GEOGRAPHIC DATA (Net Sales And Long Lived Assets by World Area) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Aug. 31, 2016 | May 31, 2016 | Feb. 29, 2016 | Nov. 30, 2015 | Aug. 31, 2015 | May 31, 2015 | Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Net Sales to Unaffiliated Customers | $ 2,562 | $ 4,189 | $ 4,532 | $ 2,219 | $ 2,355 | $ 4,579 | $ 5,197 | $ 2,870 | $ 13,502 | [1] | $ 15,001 | [1] | $ 15,855 | [1] |
Long-Lived Assets | 10,966 | 11,018 | 10,966 | 11,018 | ||||||||||
UNITED STATES | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Net Sales to Unaffiliated Customers | 8,008 | 8,612 | 8,625 | |||||||||||
Long-Lived Assets | 7,779 | 7,714 | 7,779 | 7,714 | ||||||||||
Europe-Africa [Member] | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Net Sales to Unaffiliated Customers | 1,536 | 1,834 | 2,192 | |||||||||||
Long-Lived Assets | 1,321 | 1,309 | 1,321 | 1,309 | ||||||||||
BRAZIL | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Net Sales to Unaffiliated Customers | 1,437 | 1,725 | 1,778 | |||||||||||
Long-Lived Assets | 665 | 614 | 665 | 614 | ||||||||||
ARGENTINA | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Net Sales to Unaffiliated Customers | 856 | 871 | 1,092 | |||||||||||
Long-Lived Assets | 345 | 427 | 345 | 427 | ||||||||||
Asia-Pacific [Member] | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Net Sales to Unaffiliated Customers | 483 | 686 | 837 | |||||||||||
Long-Lived Assets | 277 | 293 | 277 | 293 | ||||||||||
CANADA | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Net Sales to Unaffiliated Customers | 619 | 601 | 636 | |||||||||||
Long-Lived Assets | 87 | 104 | 87 | 104 | ||||||||||
MEXICO | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Net Sales to Unaffiliated Customers | 436 | 537 | 503 | |||||||||||
Long-Lived Assets | 138 | 163 | 138 | 163 | ||||||||||
Other [Member] | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Net Sales to Unaffiliated Customers | 127 | 135 | $ 192 | |||||||||||
Long-Lived Assets | $ 354 | $ 394 | $ 354 | $ 394 | ||||||||||
[1] | Represents net sales from continuing operations |
QUARTERLY DATA (UNAUDITED) (Det
QUARTERLY DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | 24 Months Ended | ||||||||||||
Aug. 31, 2016 | May 31, 2016 | Feb. 29, 2016 | Nov. 30, 2015 | Aug. 31, 2015 | May 31, 2015 | Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2016 | ||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||
Net Sales to Unaffiliated Customers | $ 2,562 | $ 4,189 | $ 4,532 | $ 2,219 | $ 2,355 | $ 4,579 | $ 5,197 | $ 2,870 | $ 13,502 | [1] | $ 15,001 | [1] | $ 15,855 | [1] | |
Gross Profit | 1,138 | 2,380 | 2,598 | 901 | 996 | 2,736 | 3,039 | 1,411 | 7,017 | 8,182 | 8,574 | ||||
(Loss) Income from Continuing Operations Attributable to Monsanto Company | (193) | 717 | 1,060 | (265) | (500) | 1,141 | 1,418 | 227 | 1,319 | 2,286 | 2,727 | ||||
Income on discontinued operations | 2 | 0 | 3 | 12 | 5 | 0 | 7 | 16 | 17 | 28 | 13 | ||||
Net Income | (205) | 715 | 1,060 | (257) | (492) | 1,155 | 1,419 | 243 | 1,313 | 2,325 | 2,762 | ||||
Net Income Attributable to Monsanto Company | $ (191) | $ 717 | $ 1,063 | $ (253) | $ (495) | $ 1,141 | $ 1,425 | $ 243 | $ 1,336 | $ 2,314 | $ 2,740 | ||||
Basic (Loss) Earnings per Share Attributable to Monsanto Company: | |||||||||||||||
Income (Loss) from continuing operations (in dollars per share) | $ (0.44) | $ 1.64 | $ 2.42 | $ (0.58) | $ (1.07) | $ 2.41 | $ 2.93 | $ 0.47 | $ 2.98 | $ 4.79 | $ 5.25 | ||||
Income (Loss) on discontinued operations (in dollars per share) | 0 | 0 | 0 | 0.02 | 0.01 | 0 | 0.02 | 0.03 | 0.04 | 0.06 | 0.03 | ||||
Net Income Attributable to Monsanto Company (in dollars per share) | (0.44) | 1.64 | 2.42 | (0.56) | (1.06) | 2.41 | 2.95 | 0.50 | 3.02 | 4.85 | 5.28 | ||||
Diluted (Loss) Earnings per Share Attributable to Monsanto Company: | |||||||||||||||
Income (Loss) from continuing operations (in dollars per share) | (0.44) | 1.63 | 2.40 | (0.58) | (1.07) | 2.39 | 2.90 | 0.47 | 2.95 | 4.75 | 5.19 | ||||
Income on discontinued operations (in dollars per share) | 0 | 0 | 0.01 | 0.02 | 0.01 | 0 | 0.02 | 0.03 | 0.04 | 0.06 | 0.03 | ||||
Net Income Attributable to Monsanto Company (in dollars per share) | $ (0.44) | $ 1.63 | $ 2.41 | $ (0.56) | $ (1.06) | $ 2.39 | $ 2.92 | $ 0.50 | $ 2.99 | $ 4.81 | $ 5.22 | ||||
Items Affecting Comparability [Line Items] | |||||||||||||||
Cost of goods sold | $ 6,485 | $ 6,819 | $ 7,281 | ||||||||||||
Selling, general and administrative expenses | 2,833 | 2,686 | 2,774 | ||||||||||||
Restructuring charges | 297 | 393 | 0 | ||||||||||||
Income tax provision (benefit) | 695 | 864 | $ 1,078 | ||||||||||||
Argentina [Member] | |||||||||||||||
Items Affecting Comparability [Line Items] | |||||||||||||||
Income tax provision (benefit) | $ 33 | $ 218.9 | |||||||||||||
Intellectual Property [Member] | |||||||||||||||
Items Affecting Comparability [Line Items] | |||||||||||||||
Income tax provision (benefit) | 74 | $ 102.1 | |||||||||||||
Net Sales | 210 | 274 | |||||||||||||
Environmental and Litigation Settlements [Member] | |||||||||||||||
Items Affecting Comparability [Line Items] | |||||||||||||||
Selling, general and administrative expenses | $ 5.2 | $ 10 | $ 7.7 | ||||||||||||
Income tax provision (benefit) | $ (3.8) | $ (2.9) | |||||||||||||
Environmental, Litigation, and SEC Settlements [Member] | |||||||||||||||
Items Affecting Comparability [Line Items] | |||||||||||||||
Selling, general and administrative expenses | 246 | 16 | $ 3 | $ 92.6 | 57 | ||||||||||
Income tax provision (benefit) | $ (8.4) | ||||||||||||||
Restructuring Plan 2015 [Member] | |||||||||||||||
Items Affecting Comparability [Line Items] | |||||||||||||||
Cost of goods sold | 14 | 1 | 52 | 100.5 | |||||||||||
Restructuring charges | 7 | 15 | 8.9 | 266 | 392.7 | $ 364 | $ 493 | $ 857 | |||||||
Restructuring Plan 2015 [Member] | Environmental and Litigation Settlements [Member] | |||||||||||||||
Items Affecting Comparability [Line Items] | |||||||||||||||
Income tax provision (benefit) | $ (110) | ||||||||||||||
Restructuring Plan 2015 [Member] | Environmental, Litigation, and SEC Settlements [Member] | |||||||||||||||
Items Affecting Comparability [Line Items] | |||||||||||||||
Income tax provision (benefit) | (77) | $ (12.9) | $ (4.4) | $ (172.8) | |||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Sorghum Business [Member] | |||||||||||||||
Items Affecting Comparability [Line Items] | |||||||||||||||
Income tax provision (benefit) | 47 | ||||||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Other Expense, Net [Member] | Sorghum Business [Member] | |||||||||||||||
Items Affecting Comparability [Line Items] | |||||||||||||||
Gain resulting from joint venture | $ 157 | ||||||||||||||
[1] | Represents net sales from continuing operations |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 14, 2016 | Aug. 31, 2018 | Aug. 31, 2016 | Aug. 31, 2015 |
Subsequent Event [Line Items] | ||||
Common stock, Par value | $ 0.01 | $ 0.01 | ||
Bayer Aktiengesellschaft and KWA Investment Co. [Member] | Scenario, Forecast [Member] | Minimum [Member] | ||||
Subsequent Event [Line Items] | ||||
Transaction costs committed | $ 100 | |||
Bayer Aktiengesellschaft and KWA Investment Co. [Member] | Scenario, Forecast [Member] | Maximum [Member] | ||||
Subsequent Event [Line Items] | ||||
Transaction costs committed | $ 200 | |||
Bayer Aktiengesellschaft and KWA Investment Co. [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Common stock, Par value | $ 0.01 | |||
Share price (in dollars per share) | $ 128 | |||
Term loan facility assumed | $ 56,900 | |||
Divestiture action, one-year loss of net sales threshold (in excess of) | 1,600 | |||
Termination rights, pending stockholder approval, termination fee, net of expense reimbursement | 1,850 | |||
Termination rights, pending stockholder approval, termination fee, expense reimbursement | 150 | |||
Termination rights, pending consummation date, termination fee | $ 2,000 |