Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Monsanto Co., consolidated income statement

US$ in millions

12 months ended:	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013	Aug 31, 2012
Net sales	14,640)	13,502)	15,001)	15,855)	14,861)	13,504)
Cost of goods sold	(6,703)	(6,485)	(6,819)	(7,281)	(7,208)	(6,459)
Gross profit	7,937)	7,017)	8,182)	8,574)	7,653)	7,045)
Selling, general and administrative expenses	(2,969)	(2,833)	(2,686)	(2,774)	(2,550)	(2,390)
Research and development expenses	(1,607)	(1,512)	(1,580)	(1,725)	(1,533)	(1,517)
Restructuring charges	36)	(297)	(393)	—)	—)	10)
Pending Bayer transaction related costs	(185)	—)	—)	—)	—)	—)
Operating expenses	(4,725)	(4,642)	(4,659)	(4,499)	(4,083)	(3,897)
Income from operations	3,212)	2,375)	3,523)	4,075)	3,570)	3,148)
Interest expense	(452)	(436)	(433)	(248)	(172)	(191)
Interest income	76)	74)	105)	102)	92)	77)
Other income (expense), net	50)	(22)	(34)	(102)	(61)	(46)
Income from continuing operations before income taxes	2,886)	1,991)	3,161)	3,827)	3,429)	2,988)
Income tax provision	(626)	(695)	(864)	(1,078)	(915)	(901)
Income from continuing operations including portion attributable to noncontrolling interest	2,260)	1,296)	2,297)	2,749)	2,514)	2,087)
Income on discontinued operations	13)	17)	28)	13)	11)	6)
Net income	2,273)	1,313)	2,325)	2,762)	2,525)	2,093)
Net (income) loss attributable to noncontrolling interest	(13)	23)	(11)	(22)	(43)	(48)
Net income attributable to Monsanto Company	2,260)	1,336)	2,314)	2,740)	2,482)	2,045)

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).

Net Sales and Cost of Goods Sold: Net sales demonstrated a general upward trend from 2012 to 2014, increasing from $13,504 million to $15,855 million. This was followed by a decline in 2015 and 2016, with net sales dropping to $13,502 million in 2016. A partial recovery occurred in 2017, reaching $14,640 million. Cost of goods sold mirrored this pattern, rising until 2014 before declining and then slightly increasing again by 2017.
Gross Profit: Gross profit increased steadily from $7,045 million in 2012 to $8,574 million in 2014, indicating improving margin performance during this period. However, subsequent years saw a decrease, with gross profit declining to $7,017 million in 2016 before recovering to $7,937 million in 2017.
Operating Expenses: Operating expenses, including selling, general and administrative expenses and research and development expenses, consistently increased over the analyzed period. Selling, general, and administrative expenses grew from $2,390 million in 2012 to $2,969 million in 2017, while research and development expenses fluctuated but remained near $1,600 million by 2017. Restructuring charges appeared irregular, with significant charges in 2015 and 2016, followed by a positive adjustment in 2017.
Income from Operations: Income from operations rose from $3,148 million in 2012 to a peak of $4,075 million in 2014, then declined to $2,375 million in 2016. The figure improved in 2017 to $3,212 million, reflecting some recovery in operational profitability.
Interest and Other Income/Expense: Interest expense increased notably from $191 million in 2012 to $452 million in 2017, suggesting rising financing costs. Interest income remained relatively stable around $70 to $100 million annually. Other income/expense showed volatility, with a negative balance initially turning positive to $50 million in 2017.
Income Before Taxes and Tax Provision: Income from continuing operations before income taxes followed a pattern similar to operating income, increasing to a high in 2014 and subsequently declining until 2016 before improving in 2017. The income tax provision declined gradually over the years, from $901 million in 2012 to $626 million in 2017, indicating a potential decrease in effective tax rate or taxable income.
Net Income: Net income attributable to Monsanto Company increased annually through 2014, reaching $2,740 million, then sharply decreased to $1,336 million in 2016. This was followed by a significant recovery in 2017, with net income rising to $2,260 million. The pattern reflects overall earnings volatility, likely influenced by the trends in sales, costs, and operating expenses.

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Monsanto Co. (NYSE:MON)

Income Statement