Debt Financing Arrangements

12 Months Ended

Dec. 31, 2023

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, 2023		December 31, 2022
			(In millions)
2.5% Notes	$1 billion	2026	$	998	$	997
3.25% Notes	$1 billion	2030	991		989
2.900% Notes	$750 million	2032	744		744
2.700% Notes	$750 million	2051	732		731
1% Notes	€650 million	2025	717		691
4.5% Notes	$600 million	2049	589		589
4.500% Notes	$500 million	2033	492		—
5.375% Debentures	$432 million	2035	426		425
3.75% Notes	$408 million	2047	403		403
5.935% Debentures	$336 million	2032	334		334
5.765% Debentures	$297 million	2041	297		297
4.535% Debentures	$383 million	2042	288		286
4.016% Debentures	$371 million	2043	263		260
7% Debentures	$160 million	2031	159		159
6.95% Debentures	$157 million	2097	154		154
7.5% Debentures	$147 million	2027	147		147
6.625% Debentures	$144 million	2029	144		144
6.75% Debentures	$103 million	2027	103		103
6.45% Debentures	$103 million	2038	102		102
1.750% Notes	€600 million	2023	—		641
0% Bonds	$300 million	2023	—		304
Other			177		177
Total long-term debt including current maturities			8,260		8,677
Current maturities			(1)		(942)
Total long-term debt			$	8,259	$	7,735

On April 3, 2023, the Company issued $500 million aggregate principal amount of 4.500% Notes due August 15, 2033. Net proceeds before expenses were $493 million. Proceeds from the borrowings were used for general corporate purposes.

In June 2023, the Company redeemed €600 million aggregate principal amount of 1.750% Notes due 2023.

In August 2023, the Company redeemed $300 million aggregate principal amount of zero coupon exchangeable bonds due 2023.

During the year ended December 31, 2023, Archer Daniels Midland Singapore, Pte. Ltd., a wholly-owned subsidiary of the Company, increased its revolving credit facility from $500 million to $750 million at an interest rate of Secured Overnight Financing Rate plus a fixed spread. The facility is used to finance working capital requirements and for general corporate purposes.

On February 28, 2022, the Company issued its first sustainability bond of $750 million aggregate principal amount of 2.900% notes due March 1, 2032. Net proceeds before expenses were $745 million. Proceeds from the borrowings were used to finance investments and expenditures in eligible green projects that contribute to environmental objectives and/or eligible social projects that aim to address or mitigate a specific social issue and/or seek to achieve positive social outcomes.

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

Discount amortization expense, net of premium amortization, of $15 million, $6 million, and $10 million for the years ended December 31, 2023, 2022, and 2021, respectively, are included in interest expense related to the Company’s long-term debt.

At December 31, 2023, the fair value of the Company’s long-term debt exceeded the carrying value by $0.3 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, 2023, are $1 million, $718 million, $999 million, $251 million, and $1 million, respectively.

At December 31, 2023, the Company had lines of credit, including the accounts receivable securitization programs described below, totaling $13.2 billion, of which $11.5 billion was unused.  The weighted average interest rates on short-term borrowings outstanding at December 31, 2023 and 2022, were 7.44% and 6.21%, respectively.  Of the Company’s total lines of credit, $5.0 billion supported the combined U.S. and European commercial paper borrowing programs, against which there was $5 million commercial paper outstanding at December 31, 2023.

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, 2023.

The Company had outstanding standby letters of credit and surety bonds at December 31, 2023 and 2022, totaling $1.6 billion.

The Company has accounts receivable securitization programs (the “Programs”).  The Programs provide the Company with up to $3.0 billion in funding resulting from the sale of accounts receivable.  As of December 31, 2023, the Company utilized $1.6 billion of its facility under the Programs (see Note 19 for more information on the Programs).