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Segment Information
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Segment Information Segment Information

As discussed in Note 1, prior period results have been reclassified to conform to the current period segment presentation.

The Company’s operations are organized, managed, and classified into three reportable business segments: Ag Services and 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 Business.

The Ag Services and Oilseeds segment includes global activities related to the origination, merchandising, transportation, and storage of agricultural raw materials, and the 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 segment include ingredients for food, feed, energy, and industrial customers. 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. The Ag Services and Oilseeds segment is also a major supplier of peanuts, tree nuts, and peanut-derived ingredients to both the U.S. and export markets. In North America, cotton cellulose pulp is manufactured and sold to the chemical, paper, and other industrial markets. The Ag Services and Oilseeds segment's grain sourcing, handling, and transportation network (including barge, ocean-going vessel, truck, rail, and container freight services) provides reliable and efficient services to the Company's customers and agricultural processing operations. The Ag Services and Oilseeds segment also includes agricultural commodity and feed product import, export, and global distribution, and structured trade finance activities. This 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 Pacificor, Stratas Foods LLC, Edible Oils Limited, Olenex Sarl, and SoyVen joint ventures.

The 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 products and ingredients used in the food and beverage industry including sweeteners, corn and wheat starches, syrup, glucose, wheat 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., Red Star Yeast Company, LLC, and Aston Foods and Food Ingredients.

The Nutrition segment serves customer needs for food, beverages, health and wellness, and more. The segment engages in the manufacturing, sale, and distribution of a wide array of products from nature including plant-based proteins, natural flavor ingredients, flavor systems, natural colors, emulsifiers, soluble fiber, polyols, hydrocolloids, natural health and nutrition products including probiotics, prebiotics, enzymes, and botanical extracts, 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 January 2020, ADM acquired Yerbalatina, a natural plant-based extracts and ingredients manufacturer.

Other Business includes the Company’s financial business units related to futures commission and insurance activities.






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), which was sold in December 2019.
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
(In millions)
2020
 
2019
 
2020
 
2019
Gross revenues
 
 
 
 
 
 
 
Ag Services and Oilseeds
$
14,431

 
$
13,728

 
$
26,781

 
$
26,601

Carbohydrate Solutions
2,213

 
2,878

 
4,767

 
5,454

Nutrition
1,474

 
1,541

 
2,990

 
2,841

Other Business
89

 
104

 
193

 
185

Intersegment elimination
(1,926
)
 
(1,954
)
 
(3,480
)
 
(3,480
)
Total gross revenues
$
16,281

 
$
16,297

 
$
31,251

 
$
31,601

 
 
 
 
 
 
 
 
Intersegment sales
 

 
 

 
 

 
 

Ag Services and Oilseeds
$
1,690

 
$
1,500

 
$
2,961

 
$
2,835

Carbohydrate Solutions
199

 
437

 
437

 
610

Nutrition
37

 
17

 
82

 
35

Total intersegment sales
$
1,926

 
$
1,954

 
$
3,480

 
$
3,480

 
 
 
 
 
 
 
 
Revenues from external customers
 

 
 

 
 

 
 

Ag Services and Oilseeds
 
 
 
 
 
 
 
Ag Services
$
8,652

 
$
8,030

 
$
15,578

 
$
15,407

Crushing
2,405

 
2,316

 
4,718

 
4,665

Refined Products and Other
1,684

 
1,882

 
3,524

 
3,694

Total Ag Services and Oilseeds
12,741

 
12,228

 
23,820

 
23,766

Carbohydrate Solutions
 
 
 
 
 
 
 
Starches and Sweeteners
1,545

 
1,684

 
3,195

 
3,306

Vantage Corn Processors
469

 
757

 
1,135

 
1,538

Total Carbohydrate Solutions
2,014

 
2,441

 
4,330

 
4,844

Nutrition
 
 
 
 
 
 
 
Human Nutrition
723

 
728

 
1,442

 
1,402

Animal Nutrition
714

 
796

 
1,466

 
1,404

Total Nutrition
1,437

 
1,524

 
2,908

 
2,806

 
 
 
 
 
 
 
 
Other Business
89

 
104

 
193

 
185

Total revenues from external customers
$
16,281

 
$
16,297

 
$
31,251

 
$
31,601

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
(In millions)
2020
 
2019
 
2020
 
2019
Segment operating profit
 
 
 
 
 
 
 
Ag Services and Oilseeds
$
413

 
$
362

 
$
835

 
$
779

Carbohydrate Solutions
195

 
192

 
263

 
288

Nutrition
158

 
117

 
300

 
198

Other Business
38

 
11

 
49

 
25

Specified Items:
 
 
 
 
 
 
 
Gains (losses) on sales of assets and businesses(1)
23

 
—

 
23

 
12

Impairment, restructuring, and settlement charges(2)
(14
)
 
(37
)
 
(58
)
 
(46
)
Total segment operating profit
813

 
645

 
1,412

 
1,256

Corporate
(261
)
 
(371
)
 
(485
)
 
(667
)
Earnings before income taxes
$
552

 
$
274

 
$
927

 
$
589

 
 
 
 
 
 
 
 


(1) Current quarter and year-to-date gain consisted of a gain on the sale of certain assets. Prior year-to-date gains consisted of a gain on the sale of certain assets and a step up gain on an equity investment.

(2) Current quarter and year-to-date charges related to the impairment of certain long-lived assets and restructuring. Prior quarter and year-to-date charges related to the impairment of certain long-lived assets and a settlement.