Shareholders' Equity

9 Months Ended

Sep. 30, 2024

Equity [Abstract]

Shareholders' Equity

Shareholders’ Equity

Accelerated Share Repurchase

On March 12, 2024, the Company entered into an accelerated share repurchase (“ASR”) transaction agreement (“ASR Agreement”) with Merrill Lynch International, an affiliate of BofA Securities, Inc., to repurchase $1.0 billion (the “Prepayment Amount”) of ADM common stock (“Common Stock”). The ASR transaction is part of ADM’s existing share repurchase program to repurchase up to 200 million shares through December 31, 2024.

Under the terms of the ASR Agreement, on March 13, 2024, the Company paid the Prepayment Amount and received no upfront shares of Common Stock. The total number of shares of Common Stock repurchased under the ASR Agreement were determined based on volume weighted-average prices of the Common Stock during the term of the ASR transaction less a discount and subject to certain adjustments pursuant to the terms of the ASR Agreement.

On March 28, 2024, the Company received an interim delivery of 8,880,986 shares at an average share price of $60.596 or $538 million in aggregate. The Prepayment Amount initially recorded in additional paid in capital was partially reclassified to

reinvested earnings for the $538 million amount repurchased. On April 15, 2024, the Company received a final delivery of 7,325,733 shares at an average share price of $63.045, or $462 million in aggregate, as final settlement of the ASR transaction and the amount was reclassified to reinvested earnings.

As of September 30, 2024, the Company had 14.8 million remaining shares under its existing share repurchase program.

Accumulated Other Comprehensive Income

The following tables set forth the changes in AOCI by component for the three and nine months ended September 30, 2024 and 2023 (in millions).

	Three Months Ended September 30, 2024
	Foreign Currency Translation Adjustment		Deferred Gain (Loss) on Hedging Activities		Pension Liability Adjustment		Unrealized Gain (Loss) on Investments		Total
Balance at June 30, 2024	$	(2,818)	$	57	$	(113)	$	(6)	$	(2,880)
Other comprehensive income (loss) before reclassifications	143		(46)		(5)		—		92
Gain (loss) on net investment hedges	(142)		—		—		—		(142)
Amounts reclassified from AOCI	—		49		(3)		—		46
Tax effect	34		8		2		—		44
Net of tax amount	35		11		(6)		—		40
Balance at September 30, 2024	$	(2,783)	$	68	$	(119)	$	(6)	$	(2,840)
	Nine Months Ended September 30, 2024
	Foreign Currency Translation Adjustment		Deferred Gain (Loss) on Hedging Activities		Pension Liability Adjustment		Unrealized Gain (Loss) on Investments		Total
Balance at December 31, 2023	$	(2,539)	$	158	$	(108)	$	2	$	(2,487)
Other comprehensive income (loss) before reclassifications	(219)		(167)		(6)		(7)		(399)
Gain (loss) on net investment hedges	(33)		—		—		—		(33)
Amounts reclassified from AOCI	—		52		(9)		—		43
Tax effect	8		25		4		(1)		36
Net of tax amount	(244)		(90)		(11)		(8)		(353)
Balance at September 30, 2024	$	(2,783)	$	68	$	(119)	$	(6)	$	(2,840)

	Three Months Ended September 30, 2023
	Foreign Currency Translation Adjustment		Deferred Gain (Loss) on Hedging Activities		Pension Liability Adjustment		Unrealized Gain (Loss) on Investments		Total
Balance at June 30, 2023	$	(2,402)	$	39	$	(63)	$	(7)	$	(2,433)
Other comprehensive income (loss) before reclassifications	(393)		(4)		3		5		(389)
Gain (loss) on net investment hedges	149		—		—		—		149
Amounts reclassified from AOCI	—		132		(3)		—		129
Tax effect	(36)		(28)		(3)		—		(67)
Net of tax amount	(280)		100		(3)		5		(178)
Balance at September 30, 2023	$	(2,682)	$	139	$	(66)	$	(2)	$	(2,611)
	Nine Months Ended September 30, 2023
	Foreign Currency Translation Adjustment		Deferred Gain (Loss) on Hedging Activities		Pension Liability Adjustment		Unrealized Gain (Loss) on Investments		Total
Balance at December 31, 2022	$	(2,622)	$	148	$	(22)	$	(13)	$	(2,509)
Other comprehensive income (loss) before reclassifications	(71)		(290)		6		13		(342)
Gain (loss) on net investment hedges	19		—		—		—		19
Amounts reclassified from AOCI	—		277		(38)		—		239
Tax effect	(8)		4		(12)		(2)		(18)
Net of tax amount	(60)		(9)		(44)		11		(102)
Balance at September 30, 2023	$	(2,682)	$	139	$	(66)	$	(2)	$	(2,611)

The following table sets forth the reclassifications out of AOCI for the three and nine months ended September 30, 2024 and 2023 (in millions).

	Three Months Ended September 30,				Nine Months Ended September 30,				Affected line item in the Consolidated Statements of Earnings
Details about AOCI components	2024		2023		2024		2023
Deferred Gain (Loss) on Hedging Activities
	$	48	$	132	$	52	$	277	Cost of products sold
	48		132		52		277		Earnings before income tax
	(14)		(29)		(14)		(55)		Income tax expense
	$	34	$	103	$	38	$	222	Net earnings
Pension Liability Adjustment
Amortization of defined benefit pension items:
Prior service loss (credit)	$	(4)	$	(4)	$	(14)	$	(21)	Other (income) expense-net
Actuarial losses	1		1		5		(17)		Other (income) expense-net
	(3)		(3)		(9)		(38)		Earnings before income tax
	—		(3)		2		(12)		Income tax expense
	$	(3)	$	(6)	$	(7)	$	(50)	Net earnings

The Company’s accounting policy is to release the income tax effects from AOCI when the individual units of account are sold, terminated, or extinguished.