Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Monsanto Co., balance sheet: goodwill and intangible assets

US$ in millions

	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013	Aug 31, 2012
Acquired Germplasm	1,077)	1,070)	1,074)	1,116)	1,113)	1,144)
Acquired intellectual property	1,079)	1,042)	1,168)	1,160)	1,095)	1,085)
Trademarks	335)	334)	353)	366)	341)	348)
Customer relationships	291)	301)	318)	338)	306)	285)
Other	68)	65)	176)	181)	177)	168)
Other intangible assets, finite lives, carrying amount	2,850)	2,812)	3,089)	3,161)	3,032)	3,030)
Accumulated amortization	(1,918)	(1,779)	(1,858)	(1,710)	(1,909)	(1,841)
Other intangible assets, finite lives, net	932)	1,033)	1,231)	1,451)	1,123)	1,189)
In process research & development	92)	92)	101)	103)	103)	48)
Other intangible assets, indefinite lives	92)	92)	101)	103)	103)	48)
Other intangible assets, net	1,024)	1,125)	1,332)	1,554)	1,226)	1,237)
Goodwill	4,088)	4,020)	4,061)	4,319)	3,520)	3,435)
Goodwill and other intangible assets	5,112)	5,145)	5,393)	5,873)	4,746)	4,672)

Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).

Download chart

Item	Description	The company
Other intangible assets, net	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Monsanto Co. other intangible assets, net decreased from 2015 to 2016 and from 2016 to 2017.
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Monsanto Co. goodwill decreased from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.
Goodwill and other intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Monsanto Co. goodwill and other intangible assets decreased from 2015 to 2016 and from 2016 to 2017.

Monsanto Co., adjustments to financial statements

US$ in millions

	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013	Aug 31, 2012
Adjustment to Total Assets
Total assets (as reported)	21,333)	19,736)	21,920)	21,981)	20,664)	20,224)
Less: Goodwill	4,088)	4,020)	4,061)	4,319)	3,520)	3,435)
Total assets (adjusted)	17,245)	15,716)	17,859)	17,662)	17,144)	16,789)
Adjustment to Total Monsanto Company Shareowners’ Equity
Total Monsanto Company shareowners’ equity (as reported)	6,438)	4,534)	6,990)	7,875)	12,559)	11,833)
Less: Goodwill	4,088)	4,020)	4,061)	4,319)	3,520)	3,435)
Total Monsanto Company shareowners’ equity (adjusted)	2,350)	514)	2,929)	3,556)	9,039)	8,398)

Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).

Monsanto Co., Financial Data: Reported vs. Adjusted

Download chart

Monsanto Co., adjusted financial ratios

	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013	Aug 31, 2012
Total Asset Turnover
Reported total asset turnover	0.69	0.68	0.68	0.72	0.72	0.67
Adjusted total asset turnover	0.85	0.86	0.84	0.90	0.87	0.80
Financial Leverage
Reported financial leverage	3.31	4.35	3.14	2.79	1.65	1.71
Adjusted financial leverage	7.34	30.58	6.10	4.97	1.90	2.00
Return on Equity (ROE)
Reported ROE	35.10%	29.47%	33.10%	34.79%	19.76%	17.28%
Adjusted ROE	96.17%	259.92%	79.00%	77.05%	27.46%	24.35%
Return on Assets (ROA)
Reported ROA	10.59%	6.77%	10.56%	12.47%	12.01%	10.11%
Adjusted ROA	13.11%	8.50%	12.96%	15.51%	14.48%	12.18%

Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Monsanto Co. adjusted total asset turnover ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Monsanto Co. adjusted financial leverage ratio increased from 2015 to 2016 but then slightly decreased from 2016 to 2017 not reaching 2015 level.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Monsanto Co. adjusted ROE improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Monsanto Co. adjusted ROA deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level.

Monsanto Co., Financial Ratios: Reported vs. Adjusted

Download chart

	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013	Aug 31, 2012
As Reported
Selected Financial Data (US$ in millions)
Net sales	14,640)	13,502)	15,001)	15,855)	14,861)	13,504)
Total assets	21,333)	19,736)	21,920)	21,981)	20,664)	20,224)
Activity Ratio
Total asset turnover¹	0.69	0.68	0.68	0.72	0.72	0.67
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net sales	14,640)	13,502)	15,001)	15,855)	14,861)	13,504)
Adjusted total assets	17,245)	15,716)	17,859)	17,662)	17,144)	16,789)
Activity Ratio
Adjusted total asset turnover²	0.85	0.86	0.84	0.90	0.87	0.80

Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).

2017 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 14,640 ÷ 21,333 = 0.69

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 14,640 ÷ 17,245 = 0.85

Download chart

Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Monsanto Co. adjusted total asset turnover ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level.

	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013	Aug 31, 2012
As Reported
Selected Financial Data (US$ in millions)
Total assets	21,333)	19,736)	21,920)	21,981)	20,664)	20,224)
Total Monsanto Company shareowners’ equity	6,438)	4,534)	6,990)	7,875)	12,559)	11,833)
Solvency Ratio
Financial leverage¹	3.31	4.35	3.14	2.79	1.65	1.71
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	17,245)	15,716)	17,859)	17,662)	17,144)	16,789)
Adjusted total Monsanto Company shareowners’ equity	2,350)	514)	2,929)	3,556)	9,039)	8,398)
Solvency Ratio
Adjusted financial leverage²	7.34	30.58	6.10	4.97	1.90	2.00

Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).

2017 Calculations

¹ Financial leverage = Total assets ÷ Total Monsanto Company shareowners’ equity
= 21,333 ÷ 6,438 = 3.31

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Monsanto Company shareowners’ equity
= 17,245 ÷ 2,350 = 7.34

Download chart

Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Monsanto Co. adjusted financial leverage ratio increased from 2015 to 2016 but then slightly decreased from 2016 to 2017 not reaching 2015 level.

	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013	Aug 31, 2012
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Monsanto Company	2,260)	1,336)	2,314)	2,740)	2,482)	2,045)
Total Monsanto Company shareowners’ equity	6,438)	4,534)	6,990)	7,875)	12,559)	11,833)
Profitability Ratio
ROE¹	35.10%	29.47%	33.10%	34.79%	19.76%	17.28%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income attributable to Monsanto Company	2,260)	1,336)	2,314)	2,740)	2,482)	2,045)
Adjusted total Monsanto Company shareowners’ equity	2,350)	514)	2,929)	3,556)	9,039)	8,398)
Profitability Ratio
Adjusted ROE²	96.17%	259.92%	79.00%	77.05%	27.46%	24.35%

Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).

2017 Calculations

¹ ROE = 100 × Net income attributable to Monsanto Company ÷ Total Monsanto Company shareowners’ equity
= 100 × 2,260 ÷ 6,438 = 35.10%

² Adjusted ROE = 100 × Net income attributable to Monsanto Company ÷ Adjusted total Monsanto Company shareowners’ equity
= 100 × 2,260 ÷ 2,350 = 96.17%

Download chart

Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Monsanto Co. adjusted ROE improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level.

	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013	Aug 31, 2012
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Monsanto Company	2,260)	1,336)	2,314)	2,740)	2,482)	2,045)
Total assets	21,333)	19,736)	21,920)	21,981)	20,664)	20,224)
Profitability Ratio
ROA¹	10.59%	6.77%	10.56%	12.47%	12.01%	10.11%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income attributable to Monsanto Company	2,260)	1,336)	2,314)	2,740)	2,482)	2,045)
Adjusted total assets	17,245)	15,716)	17,859)	17,662)	17,144)	16,789)
Profitability Ratio
Adjusted ROA²	13.11%	8.50%	12.96%	15.51%	14.48%	12.18%

Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).

2017 Calculations

¹ ROA = 100 × Net income attributable to Monsanto Company ÷ Total assets
= 100 × 2,260 ÷ 21,333 = 10.59%

² Adjusted ROA = 100 × Net income attributable to Monsanto Company ÷ Adjusted total assets
= 100 × 2,260 ÷ 17,245 = 13.11%

Download chart

Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Monsanto Co. adjusted ROA deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level.

Monsanto Co. (NYSE:MON)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Monsanto Co., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Monsanto Co., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)