Revenues Revenues

6 Months Ended

Jun. 30, 2020

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. The Company recognized revenue from transportation service contracts of $106 million and $223 million for the three and six months ended June 30, 2020, respectively, and $128 million and $243 million for the three and six months ended June 30, 2019, respectively. 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 $286 million and $604 million as of June 30, 2020 and December 31, 2019, respectively, were recorded in accrued expenses and other payables in the consolidated balance sheets. Contract liabilities recognized as revenues for the three and six months ended June 30, 2020 were $339 million and $621 million, respectively, and $160 million and $326 million for the three and six months ended June 30, 2019, respectively.

Disaggregation of Revenues

The following tables present revenue disaggregated by timing of recognition and major product lines for the three and six months ended June 30, 2020 and 2019.

	Three Months Ended June 30, 2020
	Topic 606 Revenue						Topic 815(1)		Total
	Point in Time		Over Time		Total		Revenue		Revenues
	(In millions)
Ag Services and Oilseeds
Ag Services	$	877	$	106	$	983	$	7,669	$	8,652
Crushing	200		—		200		2,205		2,405
Refined Products and Other	521		—		521		1,163		1,684
Total Ag Services and Oilseeds	1,598		106		1,704		11,037		12,741
Carbohydrate Solutions
Starches and Sweeteners	1,137		—		1,137		408		1,545
Vantage Corn Processors	469		—		469		—		469
Total Carbohydrate Solutions	1,606		—		1,606		408		2,014
Nutrition
Human Nutrition	723		—		723		—		723
Animal Nutrition	714		—		714		—		714
Total Nutrition	1,437		—		1,437		—		1,437
Other Business	89		—		89		—		89
Total Revenues	$	4,730	$	106	$	4,836	$	11,445	$	16,281

	Six Months Ended June 30, 2020
	Topic 606 Revenue						Topic 815(1)		Total
	Point in Time		Over Time		Total		Revenue		Revenues
	(In millions)
Ag Services and Oilseeds
Ag Services	$	1,728	$	223	$	1,951	$	13,627	$	15,578
Crushing	380		—		380		4,338		4,718
Refined Products and Other	1,039		—		1,039		2,485		3,524
Total Ag Services and Oilseeds	3,147		223		3,370		20,450		23,820
Carbohydrate Solutions
Starches and Sweeteners	2,377		—		2,377		818		3,195
Vantage Corn Processors	1,135		—		1,135		—		1,135
Total Carbohydrate Solutions	3,512		—		3,512		818		4,330
Nutrition
Human Nutrition	1,442		—		1,442		—		1,442
Animal Nutrition	1,466		—		1,466		—		1,466
Total Nutrition	2,908		—		2,908		—		2,908
Other Business	193		—		193		—		193
Total Revenues	$	9,760	$	223	$	9,983	$	21,268	$	31,251

	Three Months Ended June 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	$	810	$	128	$	938	$	7,092	$	8,030
Crushing	201		—		201		2,115		2,316
Refined Products and Other	523		—		523		1,359		1,882
Total Ag Services and Oilseeds	1,534		128		1,662		10,566		12,228
Carbohydrate Solutions
Starches and Sweeteners	1,260		—		1,260		424		1,684
Vantage Corn Processors	757		—		757		—		757
Total Carbohydrate Solutions	2,017		—		2,017		424		2,441
Nutrition
Human Nutrition	728		—		728		—		728
Animal Nutrition	796		—		796		—		796
Total Nutrition	1,524		—		1,524		—		1,524
Other Business	104		—		104		—		104
Total Revenues	$	5,179	$	128	$	5,307	$	10,990	$	16,297

	Six Months Ended June 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	$	1,141	$	243	$	1,384	$	14,023	$	15,407
Crushing	372		—		372		4,293		4,665
Refined Products and Other	1,035		—		1,035		2,659		3,694
Total Ag Services and Oilseeds	2,548		243		2,791		20,975		23,766
Carbohydrate Solutions
Starches and Sweeteners	2,459		—		2,459		847		3,306
Vantage Corn Processors	1,538		—		1,538		—		1,538
Total Carbohydrate Solutions	3,997		—		3,997		847		4,844
Nutrition
Human Nutrition	1,402		—		1,402		—		1,402
Animal Nutrition	1,404		—		1,404		—		1,404
Total Nutrition	2,806		—		2,806		—		2,806
Other Business	185		—		185		—		185
Total Revenues	$	9,536	$	243	$	9,779	$	21,822	$	31,601

⁽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 Business

Other Business 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.