Segment 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: Origination, Oilseeds, Carbohydrate Solutions, and Nutrition. 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.

Effective January 1, 2018, the Company changed its segment reporting to reflect changes in its operating structure: Origination (formerly Agricultural Services), Oilseeds (formerly Oilseeds Processing), Carbohydrate Solutions (formerly Corn Processing) and Nutrition (formerly Wild Flavors and Specialty Ingredients). The European origination business previously reported in Oilseeds is now managed by leaders in Origination to better coordinate continental trading activities. Carbohydrate Solutions now includes the results of ADM Milling which were previously reported in Origination. Nutrition now includes the results of Animal Nutrition and certain product lines previously reported in Carbohydrate Solutions as well as certain product lines previously reported in Oilseeds. Prior period results of the product lines and businesses previously reported in the other reportable business segments have been reclassified to conform to the current period presentation.

The Origination 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 Origination segment includes international agricultural commodities merchandising and handling activities managed through a global trade desk based in Rolle, Switzerland. The Origination segment’s grain sourcing, handling, and transportation network provides reliable and efficient services to the Company’s customers and agricultural processing operations. The Origination segment’s transportation network capabilities include barge, ocean-going vessel, truck, rail, and container freight services. The Origination segment also includes the activities related to structured trade finance, the import and distribution of agricultural feed products, and the Company’s share of the results of its Pacificor joint venture.

The Oilseeds 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 South America, the Oilseeds 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 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 other industrial markets. The Oilseeds segment also includes the Company’s share of the results of its equity investment in Wilmar International Limited (Wilmar) and its share of the results of its Stratas Foods LLC, Edible Oils Limited, and Olenex Sarl joint ventures. In June 2018, the Company invested in a 50% joint venture with Cargill to provide soybean meal and oil for customers in Egypt.

The Company’s Carbohydrate Solutions segment is engaged in corn and wheat wet and dry milling and other activities. The Carbohydrate Solutions segment converts corn and wheat into sweeteners, corn and wheat starches, wheat flour, and bioproducts. Its products include ingredients used in the food and beverage industry including sweeteners, starch, syrup, glucose, flour, and dextrose. Dextrose and starch are used by the Carbohydrate Solutions segment as feedstocks for its bioproducts operations. By fermentation of dextrose, the Carbohydrate Solutions segment produces alcohol 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. 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 Carbohydrate Solutions products include citric acids and glycols, all of which are used in various food and industrial products. This segment also includes the Company’s share of the results of its equity investments in Hungrana Ltd., Almidones Mexicanos S.A., and Red Star Yeast Company, LLC. In June 2018, the Company completed the acquisition of a 50% equity stake in the starches and sweeteners business of Russian-based Aston Foods and Food Ingredients.

The Nutrition 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 Nutrition segment includes the activities related to the procurement, processing, and distribution of edible beans. The Nutrition segment also includes activities related to the processing and distribution of formula feeds and animal health and nutrition products and the manufacture of contract and private label pet treats and foods.

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 operating profit for each segment 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).



	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2018			2017			2018			2017
Gross revenues
Origination	$	7,723		$	6,172		14,850			13,524
Oilseeds	8,264			7,100			15,130			13,182
Carbohydrate Solutions	2,927			2,662			5,760			5,531
Nutrition	1,029			944			1,987			1,804
Other	101			101			207			195
Intersegment elimination	(2,976		)	(2,036		)	(5,340		)	(4,305		)
Total gross revenues	$	17,068		$	14,943		$	32,594		$	29,931

Intersegment sales
Origination	$	1,117		$	825		2,029			1,874
Oilseeds	1,589			1,089			2,822			1,945
Carbohydrate Solutions	259			111			470			470
Nutrition	11			11			19			16
Total intersegment sales	$	2,976		$	2,036		$	5,340		$	4,305

Revenues from external customers
Origination
Merchandising and Handling	$	6,543		$	5,295		$	12,703		$	11,548
Transportation	63			52			118			102
Total Origination	6,606			5,347			12,821			11,650
Oilseeds
Crushing and Origination	4,823			3,927			8,433			7,220
Refining, Packaging, Biodiesel, and Other	1,852			2,084			3,875			4,017
Total Oilseeds	6,675			6,011			12,308			11,237
Carbohydrate Solutions
Starches and Sweeteners	1,704			1,629			3,342			3,204
Bioproducts	964			922			1,948			1,857
Total Carbohydrate Solutions	2,668			2,551			5,290			5,061
Nutrition
Wild Flavors and Specialty Ingredients	693			661			1,329			1,235
Animal Nutrition	325			272			639			553
Total Nutrition	1,018			933			1,968			1,788

Other	101			101			207			195
Total revenues from external customers	$	17,068		$	14,943		$	32,594		$	29,931



	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2018			2017			2018			2017
Segment operating profit
Origination	$	189		$	57		$	234		$	104
Oilseeds	341			201			691			514
Carbohydrate Solutions	249			279			462			490
Nutrition	114			94			210			171
Other	31			27			44			57
Specified Items:
Gains (losses) on sales of assets and businesses⁽¹⁾	—			8			—			8
Impairment, restructuring, and settlement charges⁽²⁾	(22		)	(26		)	(35		)	(35		)
Hedge timing effects⁽³⁾	—			2			—			9
Total segment operating profit	902			642			1,606			1,318
Corporate	(250		)	(259		)	(490		)	(477		)
Earnings before income taxes	$	652		$	383		$	1,116		$	841

⁽¹⁾ Prior period gain related to the sale of the crop risk services businesses partially offset by an adjustment of the proceeds of the 2015 sale of the cocoa business.

⁽²⁾ Current quarter charges consisted of an impairment charge related to a long-term financing receivable and restructuring charges. Current year-to-date charges consisted of impairment charges related to a financing receivable and an equity investment and restructuring charges. Prior period charges related to impairment of certain long-lived assets and restructuring charges.

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



	June 30,		December 31,
(In millions)	2018		2017
Identifiable Assets
Origination	$	7,063	$	8,311
Oilseeds	13,298		11,835
Carbohydrate Solutions	6,047		6,242
Nutrition	6,765		5,568
Other	4,884		5,658
Corporate	698		2,349
Total Identifiable Assets	$	38,755	$	39,963