XML 34 R20.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Segment Information
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information
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.
Intersegment sales have been recorded using principles consistent with ASC 606, Revenue from Contracts with Customers. 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 unallocated corporate expenses, interest cost net of interest income, and revaluation gains and losses on cost method investments and the share of the results of equity investments in early-stage start-up companies.

Correction of Certain Segment-Specific Historical Financial Information

As previously disclosed, the Company received a voluntary document request from the Securities and Exchange Commission (“SEC”) relating to intersegment sales between the Company’s Nutrition segment and the Company’s Ag Services and Oilseeds and Carbohydrate Solutions segments. In response, the Company engaged external counsel, assisted by a forensic accounting firm, to conduct an internal investigation, overseen by the Audit Committee of the Company’s Board of Directors, which is separately advised by external counsel (the “Investigation”).

The Company has historically disclosed in the footnotes to its financial statements that intersegment sales have been recorded at amounts approximating market. In connection with the Investigation, the Company identified certain intersegment sales for the years ended December 31, 2021 through 2023 that occurred between the Company’s Nutrition segment and the Company’s Ag Services and Oilseeds and Carbohydrate Solutions segments that were not recorded at amounts approximating market. The Company corrected these immaterial errors in its Annual Report on Form 10-K for the year ended December 31, 2023 for the years presented therein. The correction of these immaterial errors for the quarter ended March 31, 2023 is set forth below.

The correction of these immaterial errors does not have any impact on the Company’s previously reported Consolidated Statement of Earnings, Consolidated Statement of Comprehensive Income (Loss), Consolidated Balance Sheet, Consolidated Statement of Cash Flows, or Consolidated Statement of Shareholders’ Equity as of and for the period presented below.

The following tables present: (i) adjustments and revised gross revenues, intersegment revenues, and operating profit amounts for the Ag Services and Oilseeds segment; (ii) adjustments and revised gross revenues, intersegment revenues and operating profit amounts for the Carbohydrate Solutions segment; and (iii) adjustments and revised operating profit amounts for the Nutrition segment, in each case, for the three months ended March 31, 2023. No adjustments were required to the gross revenues of the Nutrition segment.

Impact of the Adjustments on Ag Services and Oilseeds Segment Gross Revenues and Operating Profit
(In millions)Three Months Ended March 31, 2023
Gross revenues, as originally reported$19,914 
Adjustments1 
Gross revenues, as revised$19,915 
Intersegment revenues, as originally reported$1,335 
Adjustments1 
Intersegment revenues, as revised$1,336 
Segment operating profit, as originally reported$1,210 
Adjustments1 
Segment operating profit, as revised$1,211 
Impact of the Adjustments on Carbohydrate Solutions Segment Gross Revenues and Operating Profit
(In millions)Three Months Ended March 31, 2023
Gross revenues, as originally reported$4,266 
Adjustments6 
Gross revenues, as revised$4,272 
Intersegment revenues, as originally reported$729 
Adjustments6 
Intersegment revenues, as revised$735 
Segment operating profit, as originally reported$273 
Adjustments6 
Segment operating profit, as revised$279 

Impact of the Adjustments on Nutrition Segment Operating Profit
(In millions)Three Months Ended March 31, 2023
Segment operating profit, as originally reported$145 
Adjustments(7)
Segment operating profit, as revised$138 

Separately, the Company determined that a portion of the originally reported gross revenues and intersegment revenues of each of the Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition segments included certain intrasegment revenues (resulting from sales within the segment), and should have included exclusively intersegment revenues (resulting from sales from one segment to the other).

The correction of these immaterial errors does not have any impact on the Company’s previously reported Consolidated Statement of Earnings, Consolidated Statement of Comprehensive Income (Loss), Consolidated Balance Sheet, Consolidated Statements of Cash Flow, or Consolidated Statement of Shareholders’ Equity as of and for the period presented below.

The following tables present: (i) additional adjustments and further revised gross revenues and intersegment revenues amounts for the Ag Services and Oilseeds segment; (ii) additional adjustments and further revised gross revenues and intersegment revenues amounts for the Carbohydrate Solutions segment; and (iii) adjustments and revised gross revenues and intersegment revenues amounts for the Nutrition segment, for the three months ended March 31, 2023.
Additional Impact of the Adjustments on Ag Services and Oilseeds Segment Gross Revenues and Intersegment Revenues
(In millions)Three Months Ended March 31, 2023
Gross revenues, as revised$19,915 
Additional adjustments(595)
Gross revenues, as further revised$19,320 
Intersegment revenues, as revised$1,336 
Additional adjustments(595)
Intersegment revenues, as further revised$741 
Additional Impact of the Adjustments on Carbohydrate Solutions Segment Gross Revenues and Intersegment Revenues
(In millions)Three Months Ended March 31, 2023
Gross revenues, as revised$4,272 
Additional adjustments(230)
Gross revenues, as further revised$4,042 
Intersegment revenues, as revised$735 
Additional adjustments(230)
Intersegment revenues, as further revised$505 

Impact of the Adjustments on Nutrition Segment Gross Revenues and Intersegment Revenues
(In millions)Three Months Ended March 31, 2023
Gross revenues, as originally reported$1,944 
Adjustments(55)
Gross revenues, as revised$1,889 
Intersegment revenues, as originally reported$91 
Adjustments(55)
Intersegment revenues, as revised$36 

For more information about the Company’s business segments, refer to Note 17 of “Notes to Consolidated Financial Statements” included in Item 8, “Financial Statements and Supplementary Data” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
Segment Information
Three Months Ended
March 31,
(In millions)20242023
Gross revenues  
Ag Services and Oilseeds$17,828 $19,320 
Carbohydrate Solutions2,962 4,042 
Nutrition1,842 1,889 
Other Business109 103 
Intersegment elimination(894)(1,282)
Total gross revenues$21,847 $24,072 
Intersegment sales  
Ag Services and Oilseeds$609 $741 
Carbohydrate Solutions279 505 
Nutrition6 36 
Total intersegment sales$894 $1,282 
Revenues from external customers  
Ag Services and Oilseeds
Ag Services $11,197 $11,695 
Crushing3,327 3,683 
Refined Products and Other2,695 3,201 
Total Ag Services and Oilseeds17,219 18,579 
Carbohydrate Solutions
Starches and Sweeteners2,156 2,737 
Vantage Corn Processors527 800 
Total Carbohydrate Solutions2,683 3,537 
Nutrition
Human Nutrition964 936 
Animal Nutrition872 917 
Total Nutrition1,836 1,853 
Other Business109 103 
Total revenues from external customers$21,847 $24,072 
Segment operating profit
Ag Services and Oilseeds$864 $1,211 
Carbohydrate Solutions248 279 
Nutrition84 138 
Other Business121 97 
Specified Items: Gains on sale of assets(1)
— 1 
Impairment and restructuring charges(2)
(6)(7)
Total segment operating profit1,311 1,719 
Corporate(426)(322)
Earnings before income taxes$885 $1,397 
(1) Prior quarter gains were related to the sale of certain assets.
(2) Current and prior quarter charges were related to the impairment of certain long-lived assets and restructuring.