Segment and Geographic 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 are not reportable segments, as defined by ASC Topic 280, Segment Reporting, and are classified as Other.

During the fourth quarter of 2014, the Company completed the acquisition of Wild Flavors and SCI, making the Company one of the world’s leading flavors and specialty ingredients companies. Effective January 1, 2015, the Company has formed a fourth reportable business segment, Wild Flavors and Specialty Ingredients. Results of Wild Flavors and SCI were reported in Other as the 2014 results were not material to the Company.

The Oilseeds Processing segment includes global activities related to the origination, merchandising, crushing, and further processing of oilseeds such as soybeans and soft seeds (cottonseed, sunflower seed, canola, rapeseed, and flaxseed) into vegetable oils and protein meals. Oilseeds products produced and marketed by the Company include ingredients for the food, feed, energy, and other industrial products industries. Crude vegetable oils produced by the segment’s crushing activities are sold “as is” or are further processed by refining, blending, bleaching, and deodorizing into salad oils. Salad oils are sold “as is” or are further processed by hydrogenating and/or interesterifying into margarine, shortening, and other food products. Partially refined oils are used to produce biodiesel or are sold to other manufacturers for use in chemicals, paints, and other industrial products. Oilseed protein meals are principally sold to third parties to be used as ingredients in commercial livestock and poultry feeds. The Oilseeds Processing segment also includes activities related to the procurement, transportation and processing of cocoa beans into cocoa liquor, cocoa butter, cocoa powder, chocolate, and various compounds in North America, South America, Europe, Asia, and Africa for the food processing industry. In Europe and South America, the Oilseeds Processing segment includes origination and merchandising activities as adjuncts to its oilseeds processing assets. These activities include a network of grain elevators, port facilities, and transportation assets used to buy, store, clean, and transport grains and oilseeds. The Oilseeds Processing segment produces natural health and nutrition products and other specialty food and feed ingredients. The Oilseeds Processing segment is a major supplier of peanuts and peanut-derived ingredients to both the U.S. and export markets. In North America, cottonseed flour is produced and sold primarily to the pharmaceutical industry and cotton cellulose pulp is manufactured and sold to the chemical, paper, and filter markets. In South America, the Oilseeds Processing segment operates fertilizer blending facilities. The Oilseeds Processing segment also includes the Company’s share of the results of its equity investment in Wilmar and its share of results for its Stratas Foods LLC and Edible Oils Limited joint ventures.

The Company’s Corn Processing segment is engaged in corn wet milling and dry milling activities, with its asset base primarily located in the central part of the United States. The Corn Processing segment converts corn into sweeteners and starches, and bioproducts. Its products include ingredients used in the food and beverage industry including sweeteners, starch, syrup, glucose, and dextrose. Dextrose and starch are used by the Corn Processing segment as feedstocks for its bioproducts operations. By fermentation of dextrose, the Corn Processing segment produces alcohol, amino acids, and other specialty food and animal feed ingredients. Ethyl alcohol is produced by the Company for industrial use as ethanol or as beverage grade. Ethanol, in gasoline, increases octane and is used as an extender and oxygenate. Bioproducts also include amino acids such as lysine and threonine that are vital compounds used in swine feeds to produce leaner animals and in poultry feeds to enhance the speed and efficiency of poultry production. Corn gluten feed and meal, as well as distillers’ grains, are produced for use as animal feed ingredients. Corn germ, a by-product of the wet milling process, is further processed into vegetable oil and protein meal. Other Corn Processing products include citric and lactic acids, lactates, sorbitol, xanthan gum, and glycols which are used in various food and industrial products. The Corn Processing segment includes the activities of a propylene and ethylene glycol facility and the Company’s Brazilian sugarcane ethanol plant and related operations. This segment also includes the Company’s share of the results of its equity investments in Almidones Mexicanos S.A., Eaststarch C.V., and Red Star Yeast Company LLC.

The Agricultural Services segment utilizes its extensive U.S. grain elevator, global transportation network, and port operations to buy, store, clean, and transport agricultural commodities, such as oilseeds, corn, wheat, milo, oats, rice, and barley, and resells these commodities primarily as food and feed ingredients and as raw materials for the agricultural processing industry. Agricultural Services’ grain sourcing, handling, and transportation network provides reliable and efficient services to the Company’s customers and agricultural processing operations. Agricultural Services’ transportation network capabilities include barge, ocean-going vessel, truck, and rail freight services. Agricultural Services segment also includes the activities related to the processing of wheat into wheat flour, the processing and distribution of formula feeds, animal health and nutrition products, and the procurement, processing, and distribution of edible beans. The Agricultural Services segment includes the activities of Alfred C. Toepfer International (Toepfer), a global merchant of agricultural commodities and processed products. On June 6, 2014, the Company announced that it has completed its acquisition of the remaining 20% interest in Toepfer. The Agricultural Services segment also includes the Company’s 32.2% share of the results of its Pacificor (formerly Kalama Export Company LLC) joint venture and returns associated with the Company's 19.8% investment in GrainCorp. Prior to December 2012, the Company had a 23.2% interest in Gruma S.A.B. de C.V. (Gruma), the world’s largest producer and marketer of corn flour and tortillas. Additionally, the Company had joint ventures in corn flour and wheat flour mills with and through Gruma. In December 2012, the Company sold its 23.2% interest in Gruma and the Gruma-related joint ventures.

Other includes the activities of Wild Flavors, SCI, and the Company’s remaining operations, primarily its financial business units, related principally to futures commission merchant and insurance activities.

Intersegment sales have been recorded at amounts approximating market. Operating profit for each segment is based on net sales less identifiable operating expenses. 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 adjustments, unallocated corporate expenses, interest cost net of investment income, and the Company’s share of the results of an equity investment. Corporate results also include the after-tax elimination of income attributable to mandatorily redeemable interests in consolidated subsidiaries except during the calendar year 2012 when the put options related to these interests expired and the results were included in noncontrolling interest. The Company acquired the remaining 20% interest in Toepfer during the second quarter of 2014, thus no longer requiring the elimination of income attributable to the minority shareholder as of June 30, 2014.

Segment Information



	Year Ended						Six Months Ended						Year Ended
(In millions)	December 31						December 31						June 30
	2014			2013			2012			2011			2012
										(Unaudited)
Gross revenues
Oilseeds Processing	$	34,196		$	38,490		$	19,465		$	18,073		$	36,990
Corn Processing	11,814			13,299			6,223			6,564			12,287
Agricultural Services	41,150			46,950			25,487			24,115			47,691
Other	885			515			151			136			288
Intersegment elimination	(6,844		)	(9,450		)	(4,597		)	(3,680		)	(8,218		)
Total	$	81,201		$	89,804		$	46,729		$	45,208		$	89,038

Intersegment revenues
Oilseeds Processing	$	2,650		$	3,607		$	1,413		$	736		$	2,275
Corn Processing	128			160			56			113			173
Agricultural Services	3,823			5,470			3,046			2,751			5,609
Other	243			213			82			80			161
Total	$	6,844		$	9,450		$	4,597		$	3,680		$	8,218

Revenues from external customers
Oilseeds Processing
Crushing and Origination	$	18,542		$	20,522		$	10,784		$	8,927		$	18,794
Refining, Packaging, Biodiesel, and Other	9,111			10,375			5,256			6,218			11,628
Cocoa and Other	3,439			3,281			1,746			1,952			3,715
Asia	454			705			266			240			578
Total Oilseeds Processing	31,546			34,883			18,052			17,337			34,715
Corn Processing
Sweeteners and Starches	3,749			4,717			2,405			2,316			4,793
Bioproducts	7,937			8,422			3,762			4,135			7,321
Total Corn Processing	11,686			13,139			6,167			6,451			12,114
Agricultural Services
Merchandising and Handling	33,061			36,968			20,159			19,061			37,631
Transportation	265			228			128			149			269
Milling and Other	4,001			4,284			2,154			2,154			4,182
Total Agricultural Services	37,327			41,480			22,441			21,364			42,082
Other
Processing	312			—			—			—			—
Financial	330			302			69			56			127
Total Other	642			302			69			56			127
Total	$	81,201		$	89,804		$	46,729		$	45,208		$	89,038



	Year Ended						Six Months Ended						Year Ended
(In millions)	December 31						December 31						June 30
	2014			2013			2012			2011			2012
										(Unaudited)
Depreciation
Oilseeds Processing	$	244		$	237		$	113		$	108		$	228
Corn Processing	323			325			165			178			345
Agricultural Services	214			220			99			90			188
Other	15			5			2			2			4
Corporate	54			40			17			13			28
Total	$	850		$	827		$	396		$	391		$	793

Long-lived asset abandonments and write-downs⁽¹⁾
Oilseeds Processing	$	3		$	4		$	—		$	—		$	1
Corn Processing	15			62			—			337			360
Agricultural Services	17			3			—			—			2
Corporate	—			15			—			—			4
Total	$	35		$	84		$	—		$	337		$	367

Interest income
Oilseeds Processing	$	30		$	36		$	18		$	16		$	35
Corn Processing	10			3			1			—			1
Agricultural Services	31			47			18			10			22
Other	14			12			11			14			21
Corporate	7			4			11			22			33
Total	$	92		$	102		$	59		$	62		$	112

Equity in earnings of affiliates
Oilseeds Processing	$	236		$	261		$	96		$	129		$	226
Corn Processing	113			98			49			53			107
Agricultural Services	41			64			49			55			110
Other	10			1			—			—			—
Corporate	(28		)	(13		)	61			14			29
Total	$	372		$	411		$	255		$	251		$	472

Operating Profit
Oilseeds Processing	$	1,605		$	1,473		$	747		$	429		$	1,302
Corn Processing	1,188			814			71			54			261
Agricultural Services	1,089			380			395			563			947
Other	33			41			93			17			15
Total operating profit	3,915			2,708			1,306			1,063			2,525
Corporate	(785		)	(684		)	(309		)	(282		)	(760		)
Earnings before income taxes	$	3,130		$	2,024		$	997		$	781		$	1,765

(1) See Note 19 for total asset impairment, exit, and restructuring costs.



	December 31
	2014		2013
	(In millions)
Investments in and advances to affiliates
Oilseeds Processing	$	2,596	$	2,304
Corn Processing	426		438
Agricultural Services	460		309
Other	33		24
Corporate	377		463
Total	$	3,892	$	3,538

Identifiable assets
Oilseeds Processing	$	12,979	$	15,408
Corn Processing	6,196		6,558
Agricultural Services	10,716		12,358
Other	10,833		6,408
Corporate	3,303		3,020
Total	$	44,027	$	43,752



	Year Ended
	December 31
	2014		2013
	(In millions)
Gross additions to property, plant, and equipment
Oilseeds Processing	$	335	$	302
Corn Processing	334		317
Agricultural Services	186		239
Other	434		1
Corporate	68		88
Total	$	1,357	$	947

Geographic information: The following geographic data include revenues attributed to the countries based on the location of the subsidiary making the sale and long-lived assets based on physical location. Long-lived assets represent the net book value of property, plant, and equipment.



	Year Ended				Six Months Ended				Year Ended
(In millions)	December 31				December 31				June 30
	2014		2013		2012		2011		2012
							(Unaudited)
Revenues
United States	$	39,609	$	41,427	$	25,033	$	24,490	$	46,593
Switzerland	10,118		10,467		4,991		5,237		9,698
Germany	7,174		10,029		4,450		4,521		9,656
Other Foreign	24,300		27,881		12,255		10,960		23,091
	$	81,201	$	89,804	$	46,729	$	45,208	$	89,038

(In millions)	December 31
	2014		2013
Long-lived assets
United States	$	6,693	$	7,192
Foreign	3,267		2,945
	$	9,960	$	10,137