Debt Financing Arrangements

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Debt Financing Arrangements

Debt Financing Arrangements

The Company’s long-term debt consisted of the following:

Debt Instrument
Interest Rate	Face Amount	Due Date	December 31, 2021		December 31, 2020
			(In millions)
2.5% Notes	$1 billion	2026	$	996	$	995
3.25% Notes	$1 billion	2030	988		987
1% Notes	€650 million	2025	735		789
2.700% Notes	$750 million	2051	730		—
1.75% Notes	€600 million	2023	681		731
4.5% Notes	$600 million	2049	588		588
Fixed to Floating Rate Notes	€500 million	2022	569		—
5.375% Debentures	$432 million	2035	425		424
3.75% Notes	$408 million	2047	402		402
5.935% Debentures	$336 million	2032	333		333
0% Bonds	$300 million	2023	310		330
5.765% Debentures	$297 million	2041	297		297
4.535% Debentures	$383 million	2042	283		281
4.016% Debentures	$371 million	2043	258		255
7% Debentures	$160 million	2031	159		159
6.95% Debentures	$157 million	2097	154		154
7.5% Debentures	$147 million	2027	147		146
6.625% Debentures	$144 million	2029	144		144
6.75% Debentures	$103 million	2027	103		103
6.45% Debentures	$103 million	2038	102		102
2.75% Notes	$500 million	2025	—		493
Other			177		174
Total long-term debt including current maturities			8,581		7,887
Current maturities			(570)		(2)
Total long-term debt			$	8,011	$	7,885

On September 10, 2021, the Company issued $750 million aggregate principal amount of 2.700% Notes due September 15, 2051 (the “Notes”). Net proceeds before expenses were $732 million.

In September 2021, the Company used the proceeds of the Notes to redeem $500 million aggregate principal amount of 2.750% notes due March 27, 2025 and recognized a debt extinguishment charge of $36 million in the year ended December 31, 2021.

On March 25, 2021, the Company issued, in a private placement transaction, €500 million aggregate principal amount of Fixed-to-Floating Rate Senior Notes due September 25, 2022.

On August 26, 2020, ADM Ag issued $300 million aggregate principal amount of zero coupon exchangeable bonds (the “Bonds”) due in 2023 to non-U.S. persons outside of the U.S. Subject to and upon compliance with the terms and conditions of the Bonds and any conditions, procedures, and certifications prescribed thereunder, the Bonds will be exchangeable for ordinary shares of Wilmar International Limited (“Wilmar”) currently held by the Company’s consolidated subsidiaries. Effective September 7, 2021, holders of the Bonds will be entitled to receive 52,840.6571 Wilmar shares (the “Exchange Property per Bond”) for each $200,000 principal amount of the Bonds, on the exercise of their exchange rights, subject to dividend adjustments. Effective February 26, 2022, ADM Ag has the option to call the outstanding Bonds at their principal amount if the value of the Exchange Property per Bond exceeds 120% of the principal amount for 20 consecutive trading days. The Company accounts for the Bond’s exchange feature as an equity-linked embedded derivative that is not clearly and closely related to the host debt instrument since it is indexed to Wilmar’s stock. The Company unconditionally and irrevocably guarantees the payment of all sums payable and the performance of all of ADM Ag’s other obligations under the Bonds. In contemplation of the issuance of the Bonds, Archer Daniels Midland Asia-Pacific Limited, the Company’s wholly-owned subsidiary that holds shares in Wilmar, entered into a stock borrowing and lending agreement with a financial institution.

Discount amortization expense, net of premium amortization, of $10 million, $13 million, and $12 million for the years ended December 31, 2021, 2020, and 2019, respectively, are included in interest expense related to the Company’s long-term debt.

At December 31, 2021, the fair value of the Company’s long-term debt exceeded the carrying value by $1.5 billion, as estimated using quoted market prices (a Level 2 measurement under applicable accounting standards).

The aggregate maturities of long-term debt for the five years after December 31, 2021, are $570 million, $992 million, $1 million, $736 million, and $997 million, respectively.

At December 31, 2021, the Company had lines of credit, including the accounts receivable securitization programs described below, totaling $11.2 billion, of which $8.1 billion was unused.  The weighted average interest rates on short-term borrowings outstanding at December 31, 2021 and 2020, were 1.23% and 0.45%, respectively.  Of the Company’s total lines of credit, $5.0 billion supported the commercial paper borrowing programs, against which there was $0.8 billion of commercial paper outstanding at December 31, 2021.

The Company’s credit facilities and certain debentures require the Company to comply with specified financial and non-financial covenants including maintenance of minimum tangible net worth as well as limitations related to incurring liens, secured debt, and certain other financing arrangements.  The Company is in compliance with these covenants as of December 31, 2021.

The Company had outstanding standby letters of credit and surety bonds at December 31, 2021 and 2020, totaling $1.2 billion.

The Company has accounts receivable securitization programs (the “Programs”).  The Programs provide the Company with up to $2.3 billion in funding resulting from the sale of accounts receivable.  As of December 31, 2021, the Company utilized $2.2 billion of its facility under the Programs (see Note 19 for more information on the Programs).