Segment and Geographic Information

The Company is principally engaged in procuring, transporting, storing, processing, and merchandising agricultural commodities, products, and ingredients. The Company’s operations are organized, managed, and classified into four reportable business segments: Agricultural Services, Corn Processing, Oilseeds Processing, and Wild Flavors and Specialty Ingredients. 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 the applicable accounting standard, and are classified as Other.

The Agricultural Services segment utilizes its extensive global grain elevator and transportation networks, 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. The Agricultural Services segment includes international agricultural commodities merchandising and handling activities managed through a global trade desk based in Rolle, Switzerland. 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, rail, and container freight services. The Agricultural Services segment also includes the activities related to structured trade finance, the processing of wheat into wheat flour, and the Company’s share of the results of its Pacificor (formerly Kalama Export Company LLC) joint venture. The Agricultural Services segment also included returns associated with the Company’s 19.8% investment in GrainCorp until its sale in December 2016. In July 2017, the Company completed the acquisition of a 51% controlling interest in Industries Centers, an Israeli company specializing in the import and distribution of agricultural feed products, which is now known as ADM Israel.

The Company’s Corn Processing segment is engaged in corn wet and dry milling and other activities, utilizing its asset base primarily located in the central part of the United States with additional facilities in China, Bulgaria, France, Morocco, Spain, and Turkey. The Corn Processing segment converts corn into sweeteners, 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 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 essential amino acids such as lysine and threonine used in swine and poultry diets to optimize performance. 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. The Corn Processing segment also includes activities related to the processing and distribution of formula feeds and animal health and nutrition products. Other Corn Processing products include citric acids and glycols, all of which are used in various food and industrial products. The Corn Processing segment also included the activities of the Company’s Brazilian sugarcane ethanol plant and related operations until the Company completed the sale of these operations in May 2016. This segment also includes the Company’s share of the results of its equity investments in Almidones Mexicanos S.A., and Red Star Yeast Company LLC. In February 2017, the Company acquired Crosswind Industries, Inc., an industry leader in the manufacture of contract and private label pet treats and foods and an 89% controlling interest in Biopolis SL, a leading provider of microbial technology with a strong portfolio of novel food ingredients. In June 2017, the Company completed the acquisition of Chamtor SA, a French producer of wheat-based sweeteners and starches.

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 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. 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 is a major supplier of peanuts, tree nuts, 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. The Oilseeds Processing segment also included activities related to its global chocolate and cocoa businesses until the sale of these businesses in July 2015 and October 2015, respectively. The Oilseeds Processing segment also includes the Company’s share of the results of its equity investment in Wilmar and its share of the results of its Stratas Foods LLC and Edible Oils Limited, and Olenex joint ventures. During the year ended December 31, 2017, the Company acquired additional shares in Wilmar increasing its ownership interest from 23.2% to 24.9%.

The Wild Flavors and Specialty Ingredients (WFSI) segment engages in the manufacturing, sales, and distribution of specialty products including natural flavor ingredients, flavor systems, natural colors, proteins, emulsifiers, soluble fiber, polyols, hydrocolloids, natural health and nutrition products, and other specialty food and feed ingredients. The WFSI segment also includes the activities related to the procurement, processing, and distribution of edible beans.

Other includes the Company’s remaining operations, primarily its financial business units, related to futures commission and insurance activities. On May 1, 2017, the Company completed the sale of its crop risk services business to Validus Holdings, a global group of insurance and reinsurance companies.

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. Specified items included in total segment operating profit and certain corporate items are not allocated to the Company’s individual business segments because operating performance of each business segment is evaluated by management exclusive of these items. 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 its equity investment in Compagnie Industrialle et Financiere des Produits Amylaces SA (Luxembourg) (CIP).

Segment Information



	Year Ended
(In millions)	December 31
	2017			2016			2015
Gross revenues
Agricultural Services	$	30,017		$	31,656		$	33,471
Corn Processing	9,997			10,314			11,226
Oilseeds Processing	26,566			25,433			29,748
Wild Flavors and Specialty Ingredients	2,352			2,439			2,419
Other	387			408			401
Intersegment elimination	(8,491		)	(7,904		)	(9,563		)
Total	$	60,828		$	62,346		$	67,702

Intersegment revenues
Agricultural Services	$	3,771		$	3,763		$	3,789
Corn Processing	645			848			1,231
Oilseeds Processing	4,036			3,281			4,531
Wild Flavors and Specialty Ingredients	39			12			12
Total	$	8,491		$	7,904		$	9,563

Revenues from external customers
Agricultural Services
Merchandising and Handling	$	23,127		$	24,609		$	25,957
Milling and Other	2,910			3,060			3,479
Transportation	209			224			246
Total Agricultural Services	26,246			27,893			29,682
Corn Processing
Sweeteners and Starches	4,253			4,028			3,713
Bioproducts	5,099			5,438			6,282
Total Corn Processing	9,352			9,466			9,995
Oilseeds Processing
Crushing and Origination	14,091			13,976			15,597
Refining, Packaging, Biodiesel, and Other	8,169			7,880			9,364
Asia	270			296			256
Total Oilseeds Processing	22,530			22,152			25,217

Wild Flavors and Specialty Ingredients	2,313			2,427			2,407

Other	387			408			401
Total	$	60,828		$	62,346		$	67,702



	Year Ended
(In millions)	December 31
	2017			2016			2015
Depreciation
Agricultural Services	$	192		$	191		$	188
Corn Processing	345			342			335
Oilseeds Processing	194			185			187
Wild Flavors and Specialty Ingredients	36			37			36
Other	6			5			5
Corporate	29			27			48
Total	$	802		$	787		$	799

Long-lived asset abandonments and write-downs⁽¹⁾
Agricultural Services	$	11		$	3		$	—
Corn Processing	64			6			66
Oilseeds Processing	5			6			40
Wild Flavors and Specialty Ingredients	21			—			1
Corporate	—			2			1
Total	$	101		$	17		$	108

Interest income
Agricultural Services	$	12		$	21		$	16
Corn Processing	2			3			2
Oilseeds Processing	27			27			29
Wild Flavors and Specialty Ingredients	1			2			1
Other	57			35			19
Corporate	7			4			4
Total	$	106		$	92		$	71

Equity in earnings of affiliates
Agricultural Services	$	24		$	16		$	24
Corn Processing	86			91			85
Oilseeds Processing	370			211			251
Wild Flavors and Specialty Ingredients	3			4			—
Other	—			10			(3		)
Corporate	(27		)	(40		)	33
Total	$	456		$	292		$	390

⁽¹⁾ See Note 18 for total asset impairment, exit, and restructuring costs.



	Year Ended
(In millions)	December 31
	2017			2016			2015
Segment Operating Profit
Agricultural Services	$	585		$	573		$	684
Corn Processing	909			761			606
Oilseeds Processing	841			880			1,289
Wild Flavors and Specialty Ingredients	284			275			289
Other	51			134			56
Specified Items:
Gains on sales of assets and businesses⁽¹⁾	22			114			530
Impairment, restructuring, exit, and settlement charges⁽²⁾	(160		)	(32		)	(214		)
Hedge timing effects⁽³⁾	4			(1		)	32
Total segment operating profit	2,536			2,704			3,272
Corporate	(927		)	(882		)	(988		)
Earnings before income taxes	$	1,609		$	1,822		$	2,284

⁽¹⁾ The gains in 2017 related to the sale of the crop risk services business and disposals of other individually insignificant assets in the ordinary course of business, partially offset by an adjustment of the proceeds of the 2015 sale of the cocoa business. The gains in 2016 primarily related to recovery of loss provisions and gain related to the sale of the Company’s Brazilian sugar ethanol facilities, realized contingent consideration on the December 2012 sale of the Company’s equity investment in Gruma S.A. de C.V., and revaluation of the remaining interest to settlement value in conjunction with the acquisition of the remaining interest in Amazon Flavors, partially offset by a loss on sale of asset. The gains in 2015 related primarily to the sale of the cocoa, chocolate, and lactic businesses, revaluation of the Company’s previously held investments in North Star Shipping, Minmetal, and Eaststarch C.V. in conjunction with the acquisition of the remaining interests, and the sale of a 50% interest in the Barcarena export terminal facility in Brazil.

⁽²⁾ The charges in 2017 consisted of asset impairments related to the closure of a facility in the WFSI segment and the reconfiguration of the Company’s Peoria, Illinois ethanol complex in the Corn Processing segment, settlement charges, and several individually insignificant asset impairments and restructuring charges. The charges in 2016 consisted of several individually insignificant asset impairments and restructuring charges. The charges in 2015 consisted of asset impairments related primarily to certain international Oilseeds Processing facilities, asset impairments, loss provisions, and exit charges related to the sugar ethanol facilities in Brazil, goodwill impairment charges, an inventory writedown, and several individually insignificant asset impairments and restructuring charges.

⁽³⁾ Hedge timing effects relate to hedge ineffectiveness associated with documented hedge programs.



(In millions)	December 31
	2017		2016
Investments in and advances to affiliates
Agricultural Services	$	366	$	367
Corn Processing	433		395
Oilseeds Processing	3,957		3,413
Wild Flavors and Specialty Ingredients	3		3
Other	4		4
Corporate	325		315
Total	$	5,088	$	4,497

Identifiable assets
Agricultural Services	$	9,013	$	8,380
Corn Processing	6,306		6,418
Oilseeds Processing	11,949		11,228
Wild Flavors and Specialty Ingredients	4,688		4,610
Other	5,658		7,211
Corporate	2,349		1,922
Total	$	39,963	$	39,769

(In millions)	December 31
	2017		2016
Gross additions to property, plant, and equipment
Agricultural Services	$	331	$	156
Corn Processing	305		240
Oilseeds Processing	265		266
Wild Flavors and Specialty Ingredients	124		139
Other	12		20
Corporate	63		61
Total	$	1,100	$	882

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
(In millions)	December 31
	2017		2016		2015

Revenues
United States	$	27,894	$	29,419	$	31,828
Switzerland	14,095		13,413		11,681
Cayman Islands	4,189		3,617		4,456
Germany	2,090		2,341		3,436
Other Foreign	12,560		13,556		16,301
	$	60,828	$	62,346	$	67,702



(In millions)	December 31
	2017		2016
Long-lived assets
United States	$	6,767	$	6,763
Foreign	3,371		2,995
	$	10,138	$	9,758