Segment Information

9 Months Ended

Sep. 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 and its share of the results of its Pacificor, Stratas Foods LLC, Edible Oils Limited, Olenex Sarl, and SoyVen joint ventures. In August 2020, the Company sold a portion of its shares in Wilmar, decreasing its ownership interest from 24.8% as of December 31, 2019 to 22.1% as of September 30, 2020.

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, the equity results of early-stage start-up companies that ADM Ventures has investments in, and the Company’s share of the results of its equity investment in Compagnie Industrielle et Financiere des Produits Amylaces SA (Luxembourg) (CIP), which was sold in December 2019.

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In millions)	2020			2019			2020			2019
Gross revenues
Ag Services and Oilseeds	$	13,415		$	14,440		$	40,196		$	41,041
Carbohydrate Solutions	2,335			3,018			7,102			8,472
Nutrition	1,481			1,481			4,471			4,322
Other Business	84			88			277			273
Intersegment elimination	(2,189		)	(2,301		)	(5,669		)	(5,781		)
Total gross revenues	$	15,126		$	16,726		$	46,377		$	48,327
Intersegment sales
Ag Services and Oilseeds	$	1,888		$	1,824		$	4,849		$	4,659
Carbohydrate Solutions	271			453			708			1,063
Nutrition	30			24			112			59
Total intersegment sales	$	2,189		$	2,301		$	5,669		$	5,781
Revenues from external customers
Ag Services and Oilseeds
Ag Services	$	7,352		$	8,246		$	22,930		$	23,653
Crushing	2,317			2,465			7,035			7,130
Refined Products and Other	1,858			1,905			5,382			5,599
Total Ag Services and Oilseeds	11,527			12,616			35,347			36,382
Carbohydrate Solutions
Starches and Sweeteners	1,574			1,526			4,769			4,782
Vantage Corn Processors	490			1,039			1,625			2,627
Total Carbohydrate Solutions	2,064			2,565			6,394			7,409
Nutrition
Human Nutrition	719			703			2,161			2,105
Animal Nutrition	732			754			2,198			2,158
Total Nutrition	1,451			1,457			4,359			4,263
Other Business	84			88			277			273
Total revenues from external customers	$	15,126		$	16,726		$	46,377		$	48,327

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In millions)	2020			2019			2020			2019
Segment operating profit
Ag Services and Oilseeds	$	436		$	417		$	1,271		$	1,196
Carbohydrate Solutions	246			182			509			470
Nutrition	147			118			447			316
Other Business	20			47			69			72
Specified Items:
Gains (losses) on sales of assets and businesses(1)	57			—			80			12
Impairment, restructuring, and settlement charges(2)	(2		)	(6		)	(60		)	(52		)
Total segment operating profit	904			758			2,316			2,014
Corporate	(704		)	(255		)	(1,189		)	(922		)
Earnings before income taxes	$	200		$	503		$	1,127		$	1,092

⁽¹⁾ Current quarter and year-to-date gain consisted of a gain on the sale of a portion of the Company’s shares in Wilmar and certain other 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, restructuring, and a settlement. Prior quarter and year-to-date charges related to the impairment of certain long-lived assets and a settlement.