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Revenues Revenues
 9 Months Ended
Sep. 30, 2019
Revenues [Abstract]  
Revenues [Text Block]
Revenues

Revenue Recognition

The Company principally generates revenue from merchandising and transporting agricultural commodities and manufactured products used as ingredients in food, feed, energy, and industrial products. Revenue is measured based on the consideration specified in the contract with a customer, and excludes any sales incentives and amounts collected on behalf of third parties. The Company follows a policy of recognizing revenue at a single point in time when it satisfies its performance obligation by transferring control over a product or service to a customer. The majority of the Company’s contracts with customers have one performance obligation and a contract duration of one year or less. The Company applies the practical expedient in paragraph 10-50-14 of ASC 606, Revenue from Contracts with Customers (“Topic 606”) and does not disclose information about remaining performance obligations that have original expected durations of one year or less. For transportation service contracts, the Company recognizes revenue over time as the barge, ocean-going vessel, truck, rail, or container freight moves towards its destination in accordance with the transfer of control guidance of Topic 606. For physically settled derivative sales contracts that are outside the scope of Topic 606, the Company recognizes revenue when control of the inventory is transferred within the meaning of Topic 606 as required by ASC 610-20, Gains and Losses from the Derecognition of Nonfinancial Assets (“Topic 610-20”).
Shipping and Handling Costs

Shipping and handling costs related to contracts with customers for the sale of goods are accounted for as a fulfillment activity and are included in cost of products sold. Accordingly, amounts billed to customers for such costs are included as a component of revenues.
Taxes Collected from Customers and Remitted to Governmental Authorities
 
The Company does not include taxes assessed by governmental authorities that are (i) imposed on and concurrent with a specific revenue-producing transaction and (ii) collected from customers, in the measurement of transactions prices or as a component of revenues and cost of products sold.
Contract Liabilities

Contract liabilities relate to advance payments from customers for goods and services that the Company has yet to provide. Contract liabilities of $319 million and $501 million as of September 30, 2019 and December 31, 2018, respectively, were recorded in accrued expenses and other payables in the consolidated balance sheets. Contract liabilities recognized as revenues were $193 million and $519 million for the three and nine months ended September 30, 2019, respectively and $107 million and $616 million for the three and nine months ended September 30, 2018, respectively.




















Disaggregation of Revenues

The following tables present revenue disaggregated by timing of recognition and major product lines for the three and nine months ended September 30, 2019 and 2018.

 
Three Months Ended September 30, 2019
 
Topic 606 Revenue
Topic 815(1)
Total
 
Point in Time
Over Time
Total
Revenue
Revenues
 
(In millions)
Ag Services and Oilseeds
 
 
 
 
 
Ag Services
$
1,369

$
134

$
1,503

$
6,743

$
8,246

Crushing
175

—

175

2,290

2,465

Refined Products and Other
628

—

628

1,277

1,905

Total Ag Services and Oilseeds
2,172

134

2,306

10,310

12,616

Carbohydrate Solutions
 
 
 
 
 
Starches and Sweeteners
1,296

—

1,296

428

1,724

Bioproducts
841

—

841

—

841

Total Carbohydrate Solutions
2,137

—

2,137

428

2,565

Nutrition
 
 
 
 
 
Wild Flavors and Specialty Ingredients
703

—

703

—

703

Animal Nutrition
754

—

754

—

754

Total Nutrition
1,457

—

1,457

—

1,457

 
 
 
 
 
 
Other
88

—

88

—

88

Total Revenues
$
5,854

$
134

$
5,988

$
10,738

$
16,726


 
Nine Months Ended September 30, 2019
 
Topic 606 Revenue
Topic 815(1)
Total
 
Point in Time
Over Time
Total
Revenue
Revenues
 
(In millions)
Ag Services and Oilseeds
 
 
 
 
 
Ag Services
$
2,509

$
377

$
2,886

$
20,767

$
23,653

Crushing
546

—

546

6,584

7,130

Refined Products and Other
1,665

—

1,665

3,934

5,599

Total Ag Services and Oilseeds
4,720

377

5,097

31,285

36,382

Carbohydrate Solutions
 
 
 
 
 
Starches and Sweeteners
3,755

—

3,755

1,275

5,030

Bioproducts
2,379

—

2,379

—

2,379

Total Carbohydrate Solutions
6,134

—

6,134

1,275

7,409

Nutrition
 
 
 
 
 
Wild Flavors and Specialty Ingredients
2,105

—

2,105

—

2,105

Animal Nutrition
2,158

—

2,158

—

2,158

Total Nutrition
4,263

—

4,263

—

4,263

 
 
 
 
 
 
Other
273

—

273

—

273

Total Revenues
$
15,390

$
377

$
15,767

$
32,560

$
48,327



















 
Three Months Ended September 30, 2018
 
Topic 606 Revenue
Topic 815(1)
Total
 
Point in Time
Over Time
Total
Revenue
Revenues
 
(In millions)
Ag Services and Oilseeds
 
 
 
 
 
Ag Services
$
396

$
121

$
517

$
7,106

$
7,623

Crushing
330

—

330

2,358

2,688

Refined Products and Other
593

—

593

1,356

1,949

Total Ag Services and Oilseeds
1,319

121

1,440

10,820

12,260

Carbohydrate Solutions
 
 
 
 
 
Starches and Sweeteners
1,261

—

1,261

445

1,706

Bioproducts
828

—

828

—

828

Total Carbohydrate Solutions
2,089

—

2,089

445

2,534

Nutrition
 
 
 
 
 
Wild Flavors and Specialty Ingredients
641

—

641

—

641

Animal Nutrition
281

—

281

—

281

Total Nutrition
922

—

922

—

922

 
 
 
 
 
 
Other
84

—

84

—

84

Total Revenues
$
4,414

$
121

$
4,535

$
11,265

$
15,800


 
Nine Months Ended September 30, 2018
 
Topic 606 Revenue
Topic 815(1)
Total
 
Point in Time
Over Time
Total
Revenue
Revenues
 
(In millions)
Ag Services and Oilseeds
 
 
 
 
 
Ag Services
$
1,542

$
361

$
1,903

$
21,866

$
23,769

Crushing
647

—

647

7,191

7,838

Refined Products and Other
1,787

—

1,787

4,037

5,824

Total Ag Services and Oilseeds
3,976

361

4,337

33,094

37,431

Carbohydrate Solutions
 
 
 
 
 
Starches and Sweeteners
3,699

—

3,699

1,349

5,048

Bioproducts
2,734

—

2,734

—

2,734

Total Carbohydrate Solutions
6,433

—

6,433

1,349

7,782

Nutrition
 
 
 
 
 
Wild Flavors and Specialty Ingredients
1,970

—

1,970

—

1,970

Animal Nutrition
920

—

920

—

920

Total Nutrition
2,890

—

2,890

—

2,890

 
 
 
 
 
 
Other
291

—

291

—

291

Total Revenues
$
13,590

$
361

$
13,951

$
34,443

$
48,394


(1) Topic 815 revenue relates to the physical delivery or the settlement of the Company’s sales contracts that are accounted for as derivatives and are outside the scope of Topic 606.

Ag Services and Oilseeds

The Ag Services and Oilseeds segment generates revenue from the sale of commodities, from service fees for the transportation of goods, and from the sale of products manufactured in its global processing facilities. Revenue is measured based on the consideration specified in the contract and excludes any sales incentives and amounts collected on behalf of third parties. Revenue is recognized when a performance obligation is satisfied by transferring control over a product or providing service to a customer. For transportation service contracts, the Company recognizes revenue over time as the barge, ocean-going vessel, truck, rail, or container freight moves towards its destination in accordance with the transfer of control guidance of Topic 606. The amount of revenue recognized follows the contractually specified price which may include freight or other contractually specified cost components. For physically settled derivative sales contracts that are outside the scope of Topic 606, the Company recognizes revenue when control of the inventory is transferred within the meaning of Topic 606 as required by Topic 610-20.

Carbohydrate Solutions

The Carbohydrate Solutions segment generates revenue from the sale of products manufactured at the Company’s global corn and wheat milling facilities around the world. Revenue is recognized when control over products is transferred to the customer. Products are shipped to customers from the Company’s various facilities and from its network of storage terminals. The amount of revenue recognized is based on the consideration specified in the contract which could include freight and other costs depending on the specific shipping terms of each contract. For physically settled derivative sales contracts that are outside the scope of Topic 606, the Company recognizes revenue when control of the inventory is transferred within the meaning of Topic 606 as required by Topic 610-20.

Nutrition

The Nutrition segment sells specialty products including natural flavor ingredients, flavor systems, natural colors, animal nutrition products, and other specialty food and feed ingredients. Revenue is recognized when control over products is transferred to the customer. The amount of revenue recognized follows the contracted price or the mutually agreed price of the product. Freight and shipping are recognized as a component of revenue at the same time control transfers to the customer.

Other

Other includes the Company’s futures commission business whose primary sources of revenue are commissions and brokerage income generated from executing orders and clearing futures contracts and options on futures contracts on behalf of its customers. Commissions and brokerage revenue are recognized on the date the transaction is executed. Other also includes the Company’s captive insurance business which generates third party revenue through its proportionate share of premiums from third-party reinsurance pools. Reinsurance premiums are recognized on a straight-line basis over the period underlying the policy.