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: 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. The Company new segments are 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. In addition, the Company also moved the segment reporting of its renewable chemicals business from Carbohydrate Solutions to Oilseeds effective July 1, 2018. 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 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 also 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 and glycols 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 (Olenex) joint ventures. In June 2018, the Company invested in SoyVen, a 50% joint venture with Cargill, to provide soybean meal and oil for customers in Egypt. In July 2018, the Company completed the sale of its oilseeds operations in Bolivia to Inversiones Piuranas S.A. In December 2018, the Company completed the acquisition of certain assets of Brazil-based Algar Agro.

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 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. In August 2018, the Company completed the acquisition of Probiotics International Limited, a British-based provider of probiotic supplements for human, pet, and production-animal uses and Rodelle Inc., a premium originator, processor and supplier of vanilla products.

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).

Segment Information



	Year Ended
(In millions)	December 31
	2018			2017			2016
Gross revenues
Origination	$	29,622		$	28,300		$	29,812
Oilseeds	29,092			26,424			25,235
Carbohydrate Solutions	11,421			11,314			11,549
Nutrition	3,835			3,562			3,540
Other	381			387			408
Intersegment elimination	(10,010		)	(9,159		)	(8,198		)
Total	$	64,341		$	60,828		$	62,346

Intersegment revenues
Origination	$	4,562		$	4,176		$	4,066
Oilseeds	4,261			4,036			3,281
Carbohydrate Solutions	1,142			908			834
Nutrition	45			39			17
Total	$	10,010		$	9,159		$	8,198

Revenues from external customers
Origination
Merchandising and Handling	$	24,816		$	23,915		$	25,522
Transportation	244			209			224
Total Origination	25,060			24,124			25,746

Oilseeds
Crushing and Origination	16,943			14,171			14,034
Refining, Packaging, Biodiesel, and Other	7,888			8,217			7,920
Total Oilseeds	24,831			22,388			21,954

Carbohydrate Solutions
Starches and Sweeteners	6,696			6,565			6,413
Bioproducts	3,583			3,841			4,302
Total Carbohydrate Solutions	10,279			10,406			10,715

Nutrition
Wild Flavors and Specialty Ingredients	2,571			2,367			2,466
Animal Nutrition	1,219			1,156			1,057
Total Nutrition	3,790			3,523			3,523

Other	381			387			408
Total	$	64,341		$	60,828		$	62,346



	Year Ended
(In millions)	December 31
	2018		2017			2016
Depreciation
Origination	$	165	$	168		$	169
Oilseeds	207		202			194
Carbohydrate Solutions	328		322			322
Nutrition	80		75			70
Other	6		6			5
Corporate	26		29			27
Total	$	812	$	802		$	787

Long-lived asset abandonments and write-downs⁽¹⁾
Origination	$	25	$	11		$	3
Oilseeds	15		6			8
Carbohydrate Solutions	—		63			4
Nutrition	11		21			—
Corporate	49		—			2
Total	$	100	$	101		$	17

Interest income
Origination	$	16	$	12		$	21
Oilseeds	29		27			27
Carbohydrate Solutions	1		1			2
Nutrition	2		2			3
Other	100		57			35
Corporate	14		7			4
Total	$	162	$	106		$	92

Equity in earnings of affiliates
Origination	$	10	$	23		$	16
Oilseeds	411		368			208
Carbohydrate Solutions	62		78			82
Nutrition	17		14			16
Other	—		—			10
Corporate	18		(27		)	(40		)
Total	$	518	$	456		$	292

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



	Year Ended
(In millions)	December 31
	2018			2017			2016
Segment Operating Profit
Origination	$	546		$	404		$	362
Oilseeds	1,474			825			853
Carbohydrate Solutions	945			1,078			1,001
Nutrition	339			312			273
Other	58			51			134
Specified Items:
Gains on sales of assets and businesses⁽¹⁾	13			22			114
Impairment, restructuring, exit, and settlement charges⁽²⁾	(102		)	(160		)	(32		)
Hedge timing effects⁽³⁾	—			4			(1		)
Total segment operating profit	3,273			2,536			2,704
Corporate	(1,213		)	(927		)	(882		)
Earnings before income taxes	$	2,060		$	1,609		$	1,822

⁽¹⁾ The gains in 2018 related to the sale of businesses and assets. 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.

⁽²⁾The charges in 2018 consisted of impairment of certain assets, restructuring, and settlement charges. The charges in 2017 consisted of asset impairments related to the closure of a facility and the reconfiguration of the Company’s Peoria, Illinois ethanol complex, 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.

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



(In millions)	December 31
	2018		2017
Investments in and advances to affiliates
Origination	$	360	$	359
Oilseeds	4,189		3,961
Carbohydrate Solutions	375		373
Nutrition	63		57
Corporate	330		338
Total	$	5,317	$	5,088

Identifiable assets
Origination	$	8,461	$	8,311
Oilseeds	12,195		11,992
Carbohydrate Solutions	5,895		6,085
Nutrition	7,158		5,568
Other	5,131		5,658
Corporate	1,993		2,349
Total	$	40,833	$	39,963

(In millions)	December 31
	2018		2017
Gross additions to property, plant, and equipment
Origination	$	93	$	203
Oilseeds	223		262
Carbohydrate Solutions	267		326
Nutrition	182		234
Other	3		12
Corporate	77		63
Total	$	845	$	1,100

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
	2018		2017		2016

Revenues
United States	$	28,726	$	27,894	$	29,419
Switzerland	12,911		14,095		13,413
Cayman Islands	5,724		4,189		3,617
Germany	2,179		2,090		2,341
Other Foreign	14,801		12,560		13,556
	$	64,341	$	60,828	$	62,346



(In millions)	December 31
	2018		2017
Long-lived assets
United States	$	6,615	$	6,767
Brazil	802		731
Other Foreign	2,536		2,640
	$	9,953	$	10,138