Monsanto Sees Record Sales in Fiscal Year 2007; Seeds and Traits Business Contributes to Strong Fourth Quarter and Year-E...(Aug. 31 ...)

2007 2006

Operating Activities:

Net Income $993 $689

Adjustments to Reconcile Cash Provided by

Operating Activities:

Items That Did Not Require (Provide) Cash:

Pre-Tax Cumulative Effect of Change in

Accounting Principle - 9

Depreciation and Amortization Expense 527 519

Bad-Debt Expense 70 47

Stock-Based Compensation Expense 73 63

Excess Tax Benefits from Stock-Based

Compensation (83) (98)

Deferred Income Taxes (88) 39

Equity Affiliate Expense - Net 34 31

Acquired In-Process Research and

Development 193 -

Other Items (39) 26

Changes in Assets and Liabilities, Net of the

Effects of Acquisitions:

Trade Receivables (2) 218

Inventories 60 (25)

Accounts Payable and Other Accrued

Liabilities 250 135

Solutia-Related Payments (26) (34)

PCB Litigation Settlement Proceeds 27 27

Net Investment Hedge Settlement (23) (1)

Other Items (112) 29

Net Cash Provided by Operating Activities 1,854 1,674

Cash Flows Provided (Required) by Investing

Activities:

Purchases of Short-Term Inve
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