Segment Information

9 Months Ended

Mar. 31, 2012

Segment Information

Segment Information

Note 14. Segment Information

The Company is principally engaged in procuring, transporting, storing, processing, and merchandising agricultural commodities and products.  The Company's operations are organized, managed, and classified into three reportable business segments:  Oilseeds Processing, Corn Processing, and Agricultural Services.  Each of these segments is organized based upon the nature of products and services offered.  The Company's remaining operations, which include wheat processing, cocoa processing, and its financial business units, are not reportable segments, as defined by ASC Topic 280, Segment Reporting, and are classified as Other.

In March 2012, the Company announced a management reorganization to streamline the business unit reporting structure and broaden spans of control.  Segment financial reporting under the new structure will begin in April 2012 when the management transition is expected to be completed.

Starting with the Company's annual report on Form 10-K for the fiscal year ending June 30, 2012, the Oilseeds Processing reportable segment will include cocoa processing operations while the Agricultural Services reportable segment will include wheat processing operations.  The Corn Processing reportable segment which includes sweeteners and starches and bioproducts will remain unchanged.  The Company's remaining operations will continue to be classified as Other.

Intersegment sales have been recorded at amounts approximating market.  Operating profit for each segment is based on net sales less identifiable operating expenses (including an interest charge related to working capital usage).  Also included in segment operating profit is equity in earnings of affiliates based on the equity method of accounting.  Certain Corporate items are not allocated to the Company's reportable business segments.  Corporate results principally include the impact of LIFO-related inventory adjustments, unallocated corporate expenses, and unallocated net interest costs.  Prior to January 1, 2012, Corporate results also included the after-tax elimination of income attributable to mandatorily redeemable interests in consolidated subsidiaries.

Prior year sales to external customers by segment and intersegment sales have been reclassified to conform to the current year's presentation resulting in reclassified net sales at the segment level with no impact to total net sales or operating profit by segment.

For detailed information regarding the Company's reportable segments, see Note 16 to the consolidated financial statements included in the Company's annual report on Form 10-K for the year ended June 30, 2011.

	Three Months Ended						Nine Months Ended
	March 31,						March 31,
	2012			2011			2012			2011
	(In millions)
Sales to external customers
Oilseeds Processing	$	7,044		$	6,156		$	22,883		$	18,095
Corn Processing		2,835			2,463			9,286			7,067
Agricultural Services		9,825			9,876			29,525			27,967
Other		1,451			1,582			4,669			4,677
Total	$	21,155		$	20,077		$	66,363		$	57,806
Intersegment sales
Oilseeds Processing	$	571		$	517		$	1,292		$	1,311
Corn Processing		33			59			146			135
Agricultural Services		1,107			1,179			3,224			2,750
Other		39			38			118			112
Total	$	1,750		$	1,793		$	4,780		$	4,308
Net sales
Oilseeds Processing	$	7,615		$	6,673		$	24,175		$	19,406
Corn Processing		2,868			2,522			9,432			7,202
Agricultural Services		10,932			11,055			32,749			30,717
Other		1,490			1,620			4,787			4,789
Intersegment elimination		(1,750	)		(1,793	)		(4,780	)		(4,308	)
Total	$	21,155		$	20,077		$	66,363		$	57,806
Segment operating profit
Oilseeds Processing	$	395		$	512		$	869		$	1,145
Corn Processing		130			204			176			944
Agricultural Services		179			171			581			729
Other		183			119			269			315
Total segment operating profit		887			1,006			1,895			3,133
Corporate		(319	)		(215	)		(546	)		(882	)
Earnings before income taxes	$	568		$	791		$	1,349		$	2,251