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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
Employee Benefit Plans Employee Benefit PlansThe Company provides substantially all U.S. employees and employees at certain foreign subsidiaries with retirement benefits including defined benefit pension plans and defined contribution plans.  The Company provides certain eligible U.S. employees who retire under qualifying conditions with subsidized postretirement health care coverage or Health Care Reimbursement Accounts.
In 2021, the Company amended the ADM Retirement Plan and the ADM Pension Plan for Hourly-Wage Employees (collectively, the “Plans”) and entered into two binding agreements to purchase: (1) a group annuity contract from Principal Life Insurance Company (“Principal”) and (2) two group annuity contracts, separately from American General Life Insurance Company (“AGL”) and from AGL’s affiliate, The United States Life Insurance Company in the City of New York (“USL”), irrevocably transferring the future benefit obligations and annuity administration for approximately 6,000 retirees and terminated vested participants from the Plans to Principal, AGL, and USL. The purchase of the group annuity contracts was funded directly by the Plans’ assets and reduced the Company’s pension obligations by approximately $0.7 billion. As a result of the transactions, the Company recognized a non-cash pretax pension settlement charge of $83 million for the year ended December 31, 2021.

In April 2019, the Company announced an enhanced early retirement program for some eligible employees in the U.S. and Canada. As a result, the Company recognized a pension remeasurement charge of $48 million in the second quarter of 2019. Employees electing to retire early were also given the option to receive their benefit in the form of a lump sum payment which resulted in a pension settlement charge of $51 million during the second half of 2019.

On July 31, 2017, the Company announced that all participants in the Company’s U.S. salaried pension plan and the Supplemental Executive Retirement Plan (SERP) will begin accruing benefits under the cash balance formula effective January 1, 2022. Benefits for participants who were accruing under the final average pay formula were frozen as of December 31, 2021, including pay and service through that date.

The Company maintains 401(k) plans covering substantially all U.S. employees.  The Company contributes cash to the plans to match qualifying employee contributions, and also provides a non-matching employer contribution of 1% of pay to eligible participants.  Under an employee stock ownership component of the 401(k) plans, employees may choose to invest in the Company’s stock as part of their own investment elections.  The employer contributions are expensed when paid.  Assets of the Company’s 401(k) plans consist primarily of listed common stocks and pooled funds.  The Company’s 401(k) plans held 6.5 million shares of Company common stock at December 31, 2021, with a market value of $441 million.  Cash dividends received on shares of Company common stock by these plans during the year ended December 31, 2021 were $10 million.

The following table sets forth the components of retirement plan expense for the years ended December 31, 2021, 2020, and 2019:
 Pension BenefitsPostretirement Benefits
(In millions) Year Ended December 31Year Ended December 31
202120202019202120202019
Retirement plan expense
Defined benefit plans:
Service cost (benefits earned during the period)$64 $61 $58 $1 $1 $2 
Interest cost48 70 82 2 4 5 
Expected return on plan assets(95)(126)(115)— — — 
Settlement charges83 — 96 — — 3 
Amortization of actuarial loss33 38 26 6 6 4 
Amortization of prior service cost (credit)(20)(19)(19)(2)(13)(15)
Net periodic defined benefit plan expense113 24 128 7 (2)(1)
Defined contribution plans61 54 58 — — — 
Total retirement plan expense$174 $78 $186 $7 $(2)$(1)
The following tables set forth changes in the defined benefit obligation and the fair value of defined benefit plan assets for the years ended December 31, 2021 and 2020:
 Pension BenefitsPostretirement Benefits
December 31
2021		December 31
2020		December 31
2021		December 31
2020
 (In millions)(In millions)
Benefit obligation, beginning$3,014 $2,650 $173 $167 
Service cost64 61 1 1 
Interest cost48 70 2 4 
Actuarial loss (gain)(152)285 (5)17 
Employee contributions2 2 — — 
Settlements(715)(17)— — 
Benefits paid(51)(84)(17)(14)
Foreign currency effects(32)47 — (2)
Benefit obligation, ending$2,178 $3,014 $154 $173 
Fair value of plan assets, beginning$2,337 $2,018 $— $— 
Actual return on plan assets146 317 — — 
Employer contributions30 85 17 14 
Employee contributions2 2 — — 
Settlements(715)(18)— — 
Benefits paid(51)(84)(17)(14)
Foreign currency effects(7)17 — — 
Fair value of plan assets, ending$1,742 $2,337 $— $— 
Funded status$(436)$(677)$(154)$(173)
Prepaid benefit cost$121 $29 $— $— 
Accrued benefit liability – current(18)(19)(15)(16)
Accrued benefit liability – long-term(539)(687)(139)(157)
Net amount recognized in the balance sheet$(436)$(677)$(154)$(173)
 
The actuarial gain in the pension plans in 2021 is primarily due to increases in the global bond yields while the actuarial loss in the pension plans in 2020 is primarily due to declines in the global bond yields.

The Company uses the corridor approach when amortizing actuarial losses. Under the corridor approach, net unrecognized actuarial losses in excess of 10% of the greater of the projected benefit obligation or the market related value of plan assets are amortized over future periods. For plans with little to no active participants, the amortization period is the remaining average life expectancy of the participants. For plans with active participants, the amortization period is the remaining average service period of the active participants. The amortization periods range from 2 to 28 years for the Company’s defined benefit pension plans and from 6 to 21 years for the Company’s postretirement benefit plans.

Included in AOCI for pension benefits at December 31, 2021, are the following amounts that have not yet been recognized in net periodic pension cost: unrecognized prior service credit of $94 million and unrecognized actuarial loss of $314 million.

Included in AOCI for postretirement benefits at December 31, 2021, are the following amounts that have not yet been recognized in net periodic postretirement benefit cost: unrecognized prior service cost of $1 million and unrecognized actuarial loss of $46 million.  
The following table sets forth the principal assumptions used in developing net periodic benefit cost:
 Pension BenefitsPostretirement Benefits
December 31
2021		December 31
2020		December 31
2021		December 31
2020
Discount rate2.3%2.9%2.3%3.2%
Expected return on plan assets6.0%6.6%N/AN/A
Rate of compensation increase4.8%4.9%N/AN/A
Interest crediting rate2.0%2.2%N/AN/A

The following table sets forth the principal assumptions used in developing the year-end actuarial present value of the projected benefit obligations:

 Pension BenefitsPostretirement Benefits
December 31
2021		December 31
2020		December 31
2021		December 31
2020
Discount rate2.5 %2.3 %2.7%2.3%
Rate of compensation increase4.2 %4.8 %N/AN/A
Interest crediting rate1.9 %2.0 %N/AN/A

The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for the pension plans with projected benefit obligations in excess of plan assets were $1.7 billion, $1.6 billion, and $1.2 billion, respectively, as of December 31, 2021, and $2.6 billion, $2.5 billion, and $1.9 billion, respectively, as of December 31, 2020.  The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for the pension plans with accumulated benefit obligations in excess of plan assets were $1.7 billion, $1.6 billion, and $1.2 billion, respectively, as of December 31, 2021 and $2.6 billion, $2.5 billion, and $1.9 billion, respectively, as of December 31, 2020.  The accumulated benefit obligation for all pension plans as of December 31, 2021 and 2020, was $2.1 billion and $2.9 billion, respectively.

For postretirement benefit measurement purposes, a 6.1% annual rate of increase in the per capita cost of covered health care benefits was assumed for the year ended December 31, 2021.  The rate was assumed to decrease gradually to 4.5% by 2031 and remain at that level thereafter.

Plan Assets

The Company’s employee benefit plan assets are principally comprised of the following types of investments:

Common stock:
Equity securities are valued based on quoted exchange prices and are classified within Level 1 of the valuation hierarchy.

Mutual funds:
Mutual funds are valued at the closing price reported on the active market on which they are traded and are classified within Level 1 of the valuation hierarchy.

Common collective trust (CCT) funds:
The fair values of the CCTs are valued using net asset value (NAV). The investments in CCTs are comprised of U.S. and international equity, fixed income, and other securities. The investments are valued at NAV provided by administrators of the funds.
Corporate debt instruments:
Corporate debt instruments are valued using third-party pricing services and are classified within Level 2 of the valuation hierarchy.

U.S.  Treasury instruments:
U.S. Treasury instruments are valued at the closing price reported on the active market on which they are traded and are classified within Level 1 of the valuation hierarchy.

U.S. government agency, state, and local government bonds:
U.S. government agency obligations and state and municipal debt securities are valued using third-party pricing services and are classified within Level 2 of the valuation hierarchy.  

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants’ methods, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

The following tables set forth, by level within the fair value hierarchy, the fair value of plan assets as of December 31, 2021 and 2020.
 Fair Value Measurements at December 31, 2021
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
 (In millions)
Common stock$135 $— $— $135 
Mutual funds426 — — 426 
Corporate bonds— 304 — 304 
U.S. Treasury instruments
226 — — 226 
U.S. government agency, state and local government bonds
— 3 — 3 
Other— 8 — 8 
Total assets$787 $315 $— $1,102 
Common collective trust funds at NAV
U.S. equity34 
International equity193 
Fixed income285 
Other128 
Total assets at fair value$1,742 
 Fair Value Measurements at December 31, 2020
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
 (In millions)
Common stock$251 $— $— $251 
Mutual funds666 — — 666 
Corporate bonds— 328 — 328 
U.S. Treasury instruments345 — — 345 
U.S. government agency, state and local government bonds
— 4 — 4 
Other— 9 — 9 
Total assets$1,262 $341 $— $1,603 
Common collective trust funds at NAV
U.S. equity23 
International equity316 
Fixed income245 
Other150 
Total assets at fair value$2,337 

Level 3 Gains and Losses:
There are no Plan assets classified as Level 3 in the fair value hierarchy; therefore there are no gains or losses associated with Level 3 assets.

The following table sets forth the actual asset allocation for the Company’s global pension plan assets as of the measurement date:
 
December 31 2021(1)(2)
December 31
2020(2)
Equity securities47%54%
Debt securities44%35%
Other9%11%
Total100%100%

(1)The Company’s U.S. pension plans contain approximately 64% of the Company’s global pension plan assets.  The actual asset allocation for the Company’s U.S. pension plans as of the measurement date consists of 50% equity securities and 50% debt securities.  The target asset allocation for the Company’s U.S. pension plans is approximately the same as the actual asset allocation. The actual asset allocation for the Company’s foreign pension plans as of the measurement date consists of 41% equity securities, 17% debt securities, and 42% other.  The target asset allocation for the Company’s foreign pension plans is approximately the same as the actual asset allocation.

(2)The Company’s pension plans did not directly hold any shares of Company common stock as of the December 31, 2021 and 2020 measurement dates. 
Investment objectives for the Company’s plan assets are to:

•Optimize the long-term return on plan assets at an acceptable level of risk.
•Maintain a broad diversification across asset classes and among investment managers.
•Maintain careful control of the risk level within each asset class.

Asset allocation targets promote optimal expected return and volatility characteristics given the long-term time horizon for fulfilling the obligations of the pension plans.  Selection of the targeted asset allocation for plan assets was based upon a review of the expected return and risk characteristics of each asset class, as well as the correlation of returns among asset classes.  The U.S. pension plans target asset allocation is also based on an asset and liability study that is updated periodically.

Investment guidelines are established with each investment manager.  These guidelines provide the parameters within which the investment managers agree to operate, including criteria that determine eligible and ineligible securities, diversification requirements, and credit quality standards, where applicable.  In some countries, derivatives may be used to gain market exposure in an efficient and timely manner; however, derivatives may not be used to leverage the portfolio beyond the market value of underlying investments.

The Company uses external consultants to assist in monitoring the investment strategy and asset mix for the Company’s plan assets.  To develop the Company’s expected long-term rate of return assumption on plan assets, the Company generally uses long-term historical return information for the targeted asset mix identified in asset and liability studies.  Adjustments are made to the expected long-term rate of return assumption when deemed necessary based upon revised expectations of future investment performance of the overall investment markets.

Contributions and Expected Future Benefit Payments

Based on actuarial calculations, the Company expects to contribute $28 million to the pension plans and $15 million to the postretirement benefit plan during 2022.  The Company may elect to make additional discretionary contributions during this period.

The following benefit payments, which reflect expected future service, are expected to be paid by the benefit plans:
 
Pension
Benefits		Postretirement
Benefits
 (In millions)
2022$57 $15 
202362 14 
202467 13 
202573 13 
202680 11 
2027-2031474 46