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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Employee Benefit Plans Employee Benefit Plans
The 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 also 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.

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) began 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.  Assets of the Company’s 401(k) plans consist primarily of listed common stocks and pooled funds.  The Company’s 401(k) plans held 5.9 million shares of Company common stock at December 31, 2022, with a market value of $550 million.  Cash dividends received on shares of Company common stock by these plans during the year ended December 31, 2022 were $10 million.

The following table sets forth the components of retirement plan expense for the years ended December 31, 2022, 2021, and 2020:
 Pension BenefitsPostretirement Benefits
(In millions) Year Ended December 31Year Ended December 31
202220212020202220212020
Retirement plan expense
Defined benefit plans:
Service cost (benefits earned during the period)$48 $64 $61 $1 $1 $1 
Interest cost48 48 70 3 2 4 
Expected return on plan assets(79)(95)(126)— — — 
Settlement charges— 83 — — — — 
Curtailments(2)— — — — — 
Amortization of actuarial loss17 33 38 5 6 6 
Amortization of prior service cost (credit)(20)(20)(19)— (2)(13)
Net periodic defined benefit plan expense12 113 24 9 7 (2)
Defined contribution plans67 61 54 — — — 
Total retirement plan expense$79 $174 $78 $9 $7 $(2)
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, 2022 and 2021:
 Pension BenefitsPostretirement Benefits
December 31
2022		December 31
2021		December 31
2022		December 31
2021
 (In millions)(In millions)
Benefit obligation, beginning$2,178 $3,014 $154 $173 
Service cost48 64 1 1 
Interest cost48 48 3 2 
Actuarial loss (gain)(575)(152)(24)(5)
Employee contributions3 2 — — 
Curtailments(2)— — — 
Settlements(1)(715)— — 
Benefits paid(47)(51)(16)(17)
Foreign currency effects(65)(32)— — 
Benefit obligation, ending$1,587 $2,178 $118 $154 
Fair value of plan assets, beginning$1,742 $2,337 $— $— 
Actual return on plan assets(438)146 — — 
Employer contributions60 30 16 17 
Employee contributions3 2 — — 
Settlements(1)(715)— — 
Benefits paid(47)(51)(16)(17)
Foreign currency effects(50)(7)— — 
Fair value of plan assets, ending$1,269 $1,742 $— $— 
Funded status$(318)$(436)$(118)$(154)
Prepaid benefit cost$60 $121 $— $— 
Accrued benefit liability – current(18)(18)(14)(15)
Accrued benefit liability – long-term(360)(539)(104)(139)
Net amount recognized in the balance sheet$(318)$(436)$(118)$(154)
 
In 2022, the actuarial gain in the pension plans was primarily due to increases in the global bond yields while actual return on plan assets was related to unfavorable asset performance in countries with material assets including the U.S., Canada, and Switzerland.

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 5 to 19 years for the Company’s postretirement benefit plans.

Included in AOCI for pension benefits at December 31, 2022, are the following amounts that have not yet been recognized in net periodic pension cost: unrecognized prior service credit of $75 million and unrecognized actuarial loss of $226 million.
Included in AOCI for postretirement benefits at December 31, 2022, 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 $16 million.  


The following table sets forth the principal assumptions used in developing net periodic benefit cost:
 Pension BenefitsPostretirement Benefits
December 31
2022		December 31
2021		December 31
2022		December 31
2021
Discount rate2.5%2.3%2.7%2.3%
Expected return on plan assets5.0%6.0%N/AN/A
Rate of compensation increase4.2%4.8%N/AN/A
Interest crediting rate1.9%2.0%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
2022		December 31
2021		December 31
2022		December 31
2021
Discount rate4.8 %2.5 %5.1%2.7%
Rate of compensation increase4.3 %4.2 %N/AN/A
Interest crediting rate3.9 %1.9 %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 $1.3 billion, $1.3 billion, and $0.9 billion, respectively, as of December 31, 2022, and $1.7 billion, $1.6 billion, and $1.2 billion, respectively, as of December 31, 2021.  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 $1.2 billion, $1.2 billion, and $0.8 billion, respectively, as of December 31, 2022 and $1.7 billion, $1.6 billion, and $1.2 billion, respectively, as of December 31, 2021.  The accumulated benefit obligation for all pension plans as of December 31, 2022 and 2021, was $1.6 billion and $2.1 billion, respectively.

For postretirement benefit measurement purposes, a 6.9% annual rate of increase in the per capita cost of covered health care benefits was assumed for the year ended December 31, 2022.  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, 2022 and 2021.
 Fair Value Measurements at December 31, 2022
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$68 $— $— $68 
Mutual funds245 — — 245 
Corporate bonds— 318 — 318 
U.S. Treasury instruments
173 — — 173 
U.S. government agency, state and local government bonds
— 5 — 5 
Other— 9 — 9 
Total assets$486 $332 $— $818 
Common collective trust funds at NAV
U.S. equity23 
International equity76 
Fixed income247 
Other105 
Total assets at fair value$1,269 
 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 instruments226 — — 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 

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 2022(1)(2)
December 31
2021(2)
Equity securities33%47%
Debt securities62%44%
Other5%9%
Total100%100%

(1)The Company’s U.S. pension plans contain approximately 66% 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 37% equity securities and 63% 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 24% equity securities, 62% debt securities, and 14% 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, 2022 and 2021 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 $25 million to the pension plans and $14 million to the postretirement benefit plan during 2023.  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)
2023$64 $14 
202470 13 
202576 12 
202682 11 
202785 10 
2028-2032524 44