Monsanto 10-Q 2018 Q1 Quarterly report

Exhibit 12

MONSANTO COMPANY

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES⁽¹⁾⁽²⁾ 

(Dollars in millions)

	Three Months Ended Nov. 30,			Year Ended Aug. 31,
	2017			2017			2016			2015			2014			2013
EARNINGS:
Income from Continuing Operations Before Income Taxes	$	230		$	2,886		$	1,991		$	3,161		$	3,827		$	3,429
Add:
Fixed charges	149			546			515			509			327			246
Equity affiliate loss (income) - net	2			17			12			13			8			(15		)
Amortization of capitalized interest	6			21			20			18			17			16
Less:
Capitalized interest	(16		)	(44		)	(32		)	(26		)	(28		)	(23		)
Earnings available for fixed charges	$	371		$	3,426		$	2,506		$	3,675		$	4,151		$	3,653
FIXED CHARGES:
Interest expense(3)	$	121		$	455		$	437		$	434		$	250		$	176
Capitalized interest	16			44			32			26			28			23
Portion of rents representative of interest factor	12			47			46			49			49			47
Total fixed charges	$	149		$	546		$	515		$	509		$	327		$	246
Ratio of Earnings to Fixed Charges	2.49			6.27			4.87			7.22			12.69			14.85

(1) Monsanto has not paid any preference security dividends and, therefore, has not included the ratio of combined fixed charges and preference security dividends to earnings for the relevant periods.

(2) The operating results of the Dairy business have been conformed to discontinued operations presentation for all relevant fiscal years presented.

(3) Includes amortization of deferred debt issuance costs and the interest component of the income tax provision.