Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Monsanto Co., consolidated cash flow 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 income	2,273)	1,313)	2,325)	2,762)	2,525)	2,093)
Depreciation and amortization	748)	727)	716)	691)	615)	622)
Bad-debt expense	69)	152)	45)	41)	27)	3)
Stock-based compensation expense	126)	111)	111)	120)	100)	128)
Excess tax benefits from stock-based compensation	—)	(16)	(44)	(72)	(79)	(50)
Deferred income taxes	98)	97)	(271)	12)	176)	242)
Restructuring impairments	46)	147)	276)	—)	—)	(10)
Equity affiliate (income) loss, net	15)	15)	7)	4)	(17)	(19)
Net gain on sales of a business or other assets	(163)	(181)	(2)	(11)	(17)	(4)
Other items, net	103)	181)	118)	139)	(77)	158)
Items that did not require (provide) cash	1,042)	1,233)	956)	924)	728)	1,070)
Trade receivables	(262)	(498)	68)	(172)	222)	89)
Inventory, net	(74)	181)	(425)	(650)	(192)	(422)
Deferred revenues	220)	189)	32)	(163)	50)	(43)
Accounts payable and other accrued liabilities	458)	176)	235)	709)	(104)	430)
Restructuring reserves	(198)	25)	217)	—)	—)	(12)
Pension contributions	(35)	(78)	(27)	(64)	(75)	(83)
Other items, net	(198)	47)	(273)	(292)	(414)	(71)
Changes in assets and liabilities that provided (required) cash, net of acquisitions	(89)	42)	(173)	(632)	(513)	(112)
Adjustments to reconcile cash provided by operating activities	953)	1,275)	783)	292)	215)	958)
Net cash provided by operating activities	3,226)	2,588)	3,108)	3,054)	2,740)	3,051)
Purchases of short-term investments	—)	(50)	(63)	(145)	(716)	(746)
Maturities of short-term investments	50)	35)	56)	359)	764)	746)
Capital expenditures	(1,240)	(923)	(967)	(1,005)	(741)	(646)
Acquisition of businesses, net of cash acquired	(11)	(2)	(8)	(922)	(165)	(322)
Purchases of long-term debt and equity securities	—)	—)	(30)	(12)	—)	—)
Technology and other investments	(71)	(69)	(48)	(403)	(88)	(77)
Other investments and property disposal proceeds	165)	145)	41)	33)	169)	11)
Net cash required by investing activities	(1,107)	(864)	(1,019)	(2,095)	(777)	(1,034)
Net change in financing with less than 90-day maturities	(695)	676)	45)	38)	104)	(116)
Short-term debt proceeds	72)	49)	57)	50)	22)	30)
Short-term debt reductions	(54)	(272)	(36)	(24)	(29)	(42)
Long-term debt proceeds	601)	9)	1,279)	5,479)	32)	499)
Long-term debt reductions	(1,019)	(306)	(107)	(7)	(2)	(629)
Payments on other financing	—)	—)	—)	(39)	—)	—)
Debt issuance costs	(2)	—)	(12)	(53)	—)	(5)
Treasury stock purchases	—)	(3,001)	(835)	(7,082)	(1,095)	(432)
Stock option exercises	103)	81)	137)	248)	257)	117)
Excess tax benefits from stock-based compensation	—)	16)	44)	72)	79)	50)
Tax withholding on restricted stock and restricted stock units	(19)	(24)	(36)	(9)	(10)	(19)
Dividend payments	(948)	(964)	(938)	(904)	(802)	(642)
Proceeds from noncontrolling interest	—)	—)	—)	—)	133)	101)
Payments to noncontrolling interests	(5)	(6)	(28)	(28)	(174)	(77)
Net cash required by financing activities	(1,966)	(3,742)	(430)	(2,259)	(1,485)	(1,165)
Effect of exchange rate changes on cash and cash equivalents	27)	(7)	(325)	(1)	(93)	(141)
Net increase (decrease) in cash and cash equivalents	180)	(2,025)	1,334)	(1,301)	385)	711)
Cash and cash equivalents at beginning of period	1,676)	3,701)	2,367)	3,668)	3,283)	2,572)
Cash and cash equivalents at end of period	1,856)	1,676)	3,701)	2,367)	3,668)	3,283)

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 Income: Net income showed growth from 2012 through 2014, peaking at 2,762 million USD in 2014. It declined notably in 2016 to 1,313 million USD, before recovering again in 2017 to 2,273 million USD.
Depreciation and Amortization: Depreciation and amortization expenses gradually increased each year from 622 million USD in 2012 to 748 million USD in 2017, reflecting steady investment in capital assets and intangible resources.
Bad-Debt Expense: Bad-debt expense was relatively low in 2012 and 2013 but rose sharply in 2016 to 152 million USD, then decreased to 69 million USD in 2017. This spike could indicate a period of increased credit risk or collection difficulties.
Stock-Based Compensation Expense: This expense remained fairly stable, fluctuating between 100 and 128 million USD across the years, suggesting consistent employee compensation strategies based on equity.
Deferred Income Taxes: Deferred income taxes fluctuated considerably, with a sharp negative value in 2015 (-271 million USD) followed by positive recoveries in 2016 and 2017, indicating volatile tax timing differences or adjustments.
Restructuring Impairments and Reserves: Restructuring impairments first appeared in 2015 (276 million USD), declining in subsequent years, while restructuring reserves showed a similar pattern with significant movement in 2015 and 2017. These figures suggest active cost restructuring processes during this period.
Equity Affiliate Income/Loss: The company moved from losses in 2012 and 2013 to gains from 2014 onwards, showing improved performance or valuation of affiliated entities.
Net Gain on Sales of Business or Assets: Net gains were negative throughout the period, with substantial losses in 2016 and 2017 (-181 and -163 million USD), indicating significant disposals at unfavorable prices or impairments.
Operating Cash Flow: Net cash provided by operating activities remained strong, generally above 2,500 million USD each year, peaking at 3,226 million USD in 2017. This underscores the company's ability to generate consistent operational cash flow despite income fluctuations.
Investing Activities: Net cash used in investing activities was substantial, with a notable increase in outflows in 2014 (-2,095 million USD). Capital expenditures rose steadily, reaching 1,240 million USD in 2017 from 646 million USD in 2012, indicating significant ongoing investment. Acquisitions peaked in 2014 but were minimal in later years.
Financing Activities: Net cash used for financing activities was negative across all years, with peaks in 2014 (-2,259 million USD) and 2016 (-3,742 million USD), reflecting substantial debt repayments, treasury stock purchases, and dividend payments. Long-term debt proceeds peaked sharply in 2014 (5,479 million USD) but were lower elsewhere, while long-term debt reductions increased significantly in 2017 (-1,019 million USD), suggesting active debt management timetables.
Cash and Cash Equivalents: Cash balances fluctuated notably, with increases in 2013, 2015, and 2017, and decreases in 2014 and 2016. The sharp decline in 2016 aligns with a large net decrease in cash and cash equivalents (-2,025 million USD), possibly reflecting large investing or financing outflows.
Other Items: The "Other items, net" category showed high volatility, with positive values in some years and substantial negative values in others, suggesting variable impacts from miscellaneous transactions or adjustments.

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Monsanto Co. (NYSE:MON)

Cash Flow Statement