Segment Information

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segment Information

Segment Information - Restated

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 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.

Restatement of Certain Segment-Specific Historical Financial Information

As described in Note 1 to the Consolidated Financial Statements, the Company has restated its Consolidated Financial Statements as of March 31, 2024 and 2023 and for the quarters ended March 31, 2024 and 2023. As a result, the previously reported financial information as of March 31, 2024 and 2023 and for the quarters ended March 31, 2024 and 2023 in this Note 13. Segment Information, has been updated to reflect the restatements.

The following tables set forth the impact of the restatements on intersegment sales and segment operating profit for each of the Company’s three reportable segments for the three months ended March 31, 2024 and 2023.

Intersegment pricing adjustments include restatements related to intersegment sales that were not in accordance with prior disclosures about presenting such sales at amounts approximating market. Intersegment classification adjustments include restatements related to intrasegment sales (resulting from sales within the segment) previously misclassified and reported as intersegment sales (resulting from sales from one segment to another). Intersegment pricing adjustments and Intersegment classification adjustments are included within the Intersegment sales amounts and segment operating profit amounts previously reported by the Company in the Form 10-Q filed with the SEC on April 30, 2024.

In the course of testing new controls implemented as part of the Company’s material weakness remediation plan in the third quarter of 2024, ADM identified additional intrasegment sales previously misclassified and reported as intersegment sales. The Company also identified some intersegment sales that were not accounted for consistently in accordance with revenue recognition and segment reporting standards and should not have been reported as intersegment sales. These amounts are presented in the table below as Additional intersegment classification adjustments. The Company also is correcting certain segment disclosure presentation errors in this Form 10-Q/A. See Note 1 for further information.

Impact of the Restatement on the Ag Services and Oilseeds Segment

	Three Months Ended
	March 31,
(In millions)	2024 (Restated)		2023 (Restated)
Intersegment revenues, as originally reported	$	609	$	1,335
Intersegment pricing adjustments	—		1
Intersegment classification adjustments	—		(595)
Intersegment revenues, as previously reported	609		741
Additional intersegment classification adjustments	(183)		(211)
Intersegment revenues, as restated	$	426	$	530
Segment operating profit, as originally reported	$	864	$	1,210
Intersegment pricing adjustments	—		1
Segment operating profit, as restated	$	864	$	1,211

Impact of the Restatement on the Carbohydrate Solutions Segment

	Three Months Ended
	March 31,
(In millions)	2024 (Restated)		2023 (Restated)
Intersegment revenues, as originally reported	$	279	$	729
Intersegment pricing adjustments	—		6
Intersegment classification adjustments	—		(230)
Intersegment revenues, as previously reported	279		505
Additional intersegment classification adjustments	(71)		(235)
Intersegment revenues, as restated	$	208	$	270
Segment operating profit, as originally reported	$	248	$	273
Intersegment pricing adjustments	—		6
Segment operating profit, as restated	$	248	$	279

Impact of the Restatement on the Nutrition Segment

	Three Months Ended
	March 31,
(In millions)	2024 (Restated)		2023 (Restated)
Intersegment revenues, as originally reported	$	6	$	91
Intersegment pricing adjustments	—		—
Intersegment classification adjustments	—		(55)
Intersegment revenues, as previously reported	6		36
Additional intersegment classification adjustments	7		(24)
Intersegment revenues, as restated	$	13	$	12
Segment operating profit, as originally reported	$	84	$	145
Intersegment pricing adjustments	—		(7)
Segment operating profit, as restated	$	84	$	138

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/A for the year ended December 31, 2023.

Segment Information for the Three Months ended March 31, 2024 and 2023
	Three Months Ended
	March 31,
(In millions)	2024		2023
Revenues from external customers
Ag Services and Oilseeds
Ag Services	$	11,197	$	11,695
Crushing	3,327		3,683
Refined Products and Other	2,695		3,201
Total Ag Services and Oilseeds	17,219		18,579
Carbohydrate Solutions
Starches and Sweeteners	2,156		2,737
Vantage Corn Processors	527		800
Total Carbohydrate Solutions	2,683		3,537
Nutrition
Human Nutrition	964		936
Animal Nutrition	872		917
Total Nutrition	1,836		1,853
Total segment revenues from external customers	21,738		23,969
Other Business	109		103
Total revenues from external customers	$	21,847	$	24,072
Intersegment revenues, as restated
Ag Services and Oilseeds	$	426	$	530
Carbohydrate Solutions	208		270
Nutrition	13		12
Total intersegment revenues, as restated	$	647	$	812
Segment operating profit, as restated
Ag Services and Oilseeds	$	864	$	1,211
Carbohydrate Solutions	248		279
Nutrition	84		138
Total segment operating profit, as restated	1,196		1,628
Other Business earnings (loss)	121		97
Corporate	(426)		(322)
Specified items:
Gains on sale of assets(1)	—		1
Impairment and restructuring charges(2)	(6)		(7)
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.