Monsanto Co., balance sheet: debt

US$ in millions

	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013	Aug 31, 2012
Short-term debt, including current portion of long-term debt	870)	1,587)	615)	233)	51)	36)
Long-term debt, excluding current portion	7,254)	7,453)	8,429)	7,528)	2,061)	2,038)
Total debt (carrying amount)	8,124)	9,040)	9,044)	7,761)	2,112)	2,074)

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Debt item	Description	The company
Total debt (carrying amount)	Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations.	Monsanto Co. total debt decreased from 2015 to 2016 and from 2016 to 2017.

	Aug 31, 2017
Selected Financial Data (US$ in millions)
Short-term debt, including current portion of long-term debt	877)
Long-term debt, excluding current portion	7,603)
Total debt (fair value)	8,480)
Financial Ratio
Debt, fair value to carrying amount ratio	1.04

Weighted average interest rate on debt: 3.88%

Interest rate	Debt amount¹	Interest rate × Debt amount
1.85%	299)	6)
2.13%	498)	11)
2.75%	497)	14)
2.20%	249)	5)
3.38%	745)	25)
2.85%	297)	8)
5.50%	292)	16)
4.20%	493)	21)
5.50%	393)	22)
5.88%	246)	14)
3.60%	248)	9)
4.65%	297)	14)
4.40%	983)	43)
4.30%	361)	16)
3.95%	494)	20)
4.70%	735)	35)
3.00%	64)	2)
Total	7,191)	279)
3.88%

¹ US$ in millions

² Weighted-average interest rate = 100 × 279 ÷ 7,191 = 3.88%

Monsanto Co., interest costs incurred

US$ in millions

12 months ended:	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013	Aug 31, 2012
Interest expense	452)	436)	433)	248)	172)	191)
Interest capitalized on construction	44)	32)	27)	27)	23)	21)
Interest cost incurred	496)	468)	460)	275)	195)	212)

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Debt item	Description	The company
Interest expense	Amount of the cost of borrowed funds accounted for as interest expense for debt.	Monsanto Co. interest expense increased from 2015 to 2016 and from 2016 to 2017.
Interest capitalized on construction	Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred.	Monsanto Co. interest capitalized on construction increased from 2015 to 2016 and from 2016 to 2017.
Interest cost incurred	Total interest costs incurred during the period and either capitalized or charged against earnings.	Monsanto Co. interest cost incurred increased from 2015 to 2016 and from 2016 to 2017.

	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013	Aug 31, 2012
Selected Financial Data (US$ in millions)
Net income attributable to Monsanto Company	2,260)	1,336)	2,314)	2,740)	2,482)	2,045)
Add: Net income attributable to noncontrolling interest	13)	(23)	11)	22)	43)	48)
Less: Income on discontinued operations	13)	17)	28)	13)	11)	6)
Add: Income tax expense	626)	695)	864)	1,078)	915)	901)
Add: Interest expense	452)	436)	433)	248)	172)	191)
Earnings before interest and tax (EBIT)	3,338)	2,427)	3,594)	4,075)	3,601)	3,179)

Interest cost incurred	496)	468)	460)	275)	195)	212)
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)¹	7.38	5.57	8.30	16.43	20.94	16.64
Adjusted interest coverage ratio (with capitalized interest)²	6.73	5.19	7.81	14.82	18.47	15.00

2017 Calculations

¹ Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 3,338 ÷ 452 = 7.38

² Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest cost incurred
= 3,338 ÷ 496 = 6.73

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Solvency ratio	Description	The company
Adjusted interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest).	Monsanto Co. adjusted interest coverage ratio deteriorated from 2015 to 2016 but then improved from 2016 to 2017 not reaching 2015 level.

Monsanto Co. (NYSE:MON)

Analysis of Debt