XML 32 R20.htm IDEA: XBRL DOCUMENT v3.24.3
Segment Information
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company’s operations are organized, managed, and classified into three reportable segments: Ag Services and Oilseeds (AS&O), 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 Topic 606. Operating profit for each reportable 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 reportable segments because operating performance of each reportable 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 previously disclosed in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2023, the Company has restated its Consolidated Financial Statements as of December 31, 2023 and for the year then ended. As a result, previously reported financial information as of September 30, 2023 and for the three and nine months ended September 30, 2023 in this Note 13. Segment Information, has been updated to reflect the restatements. These restatements do not impact ADM’s Consolidated Statements of Earnings, Consolidated Statements of Comprehensive Income (Loss), Consolidated Balance Sheets, Consolidated Statements of Cash Flows or Consolidated Statements of Shareholders’ Equity as of and for the periods presented.
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 and nine months ended September 30, 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).

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 prior year periods. In this report, the Company is revising its reconciliation and calculation of total segment operating profit. The revised reconciliation in this Note 13. Segment Information and elsewhere in this report presents a subtotal for total segment operating profit that is equal to the sum of the segment operating profit reported for each of the Ag Services and Oilseeds, Carbohydrate Solutions and Nutrition segments. Amounts for other business and specified items, which previously were reflected in the calculation of total segment operating profit, are now reflected as reconciling items, similar to Corporate, between total segment operating profit and earnings before income taxes.
The following tables present adjustments to intersegment sales and segment operating profit amounts for the three and nine months ended September 30, 2023 for each reportable segment.

Impact of the Restatement on the Ag Services and Oilseeds Segment

Three Months EndedNine Months Ended
(In millions)September 30, 2023
(Restated)		September 30, 2023
(Restated)
Intersegment revenues, as originally reported$1,164 $3,519 
Intersegment pricing adjustments— 2 
Intersegment classification adjustments(532)(1,447)
Additional intersegment classification adjustments(38)(388)
Intersegment revenues, as restated$594 $1,686 
Segment operating profit, as originally reported$848 $3,112 
Intersegment pricing adjustments— 1 
Segment operating profit, as restated$848 $3,113 

Impact of the Restatement on the Carbohydrate Solutions Segment

Three Months EndedNine Months Ended
(In millions)September 30, 2023
(Restated)		September 30, 2023
(Restated)
Intersegment revenues, as originally reported$159 $1,336 
Intersegment pricing adjustments8 30 
Intersegment classification adjustments278 (12)
Additional intersegment revenue classifications(213)(628)
Intersegment revenues, as restated$232 $726 
Segment operating profit, as originally reported$460 $1,036 
Intersegment pricing adjustments8 30 
Segment operating profit, as restated$468 $1,066 
Impact of the Restatement on the Nutrition Segment

Three Months EndedNine Months Ended
(In millions)September 30, 2023
(Restated)		September 30, 2023
(Restated)
Intersegment revenues, as originally reported$67 $231 
Intersegment pricing adjustments— — 
Intersegment classification adjustments(47)(141)
Additional intersegment classification adjustments(9)(55)
Intersegment revenues, as restated$11 $35 
Segment operating profit, as originally reported$138 $468 
Intersegment pricing adjustments(8)(31)
Segment operating profit, as restated$130 $437 

For more information about the Company’s reportable 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 and Nine Months ended September 30, 2024 and 2023

The following table reflects results of operations of the Company’s reportable segments (in millions).

Three Months EndedNine Months Ended
September 30,September 30,
(In millions)2024202320242023
Revenues from external customers    
Ag Services and Oilseeds
Ag Services $9,653 $10,198 $32,597 $35,259 
Crushing2,869 3,352 9,046 10,515 
Refined Products and Other2,567 2,929 7,999 9,128 
Total Ag Services and Oilseeds15,089 16,479 49,642 54,902 
Carbohydrate Solutions
Starches and Sweeteners2,192 2,448 6,559 7,660 
Vantage Corn Processors716 877 1,925 2,583 
Total Carbohydrate Solutions2,908 3,325 8,484 10,243 
Nutrition
Human Nutrition1,004 900 3,029 2,802 
Animal Nutrition827 884 2,546 2,688 
Total Nutrition1,831 1,784 5,575 5,490 
Total segment revenues from external customers19,828 21,588 63,701 70,635 
Other Business109 107 331 322 
Total revenues from external customers$19,937 $21,695 $64,032 $70,957 
Intersegment revenues(1)
    
Ag Services and Oilseeds$463 $594 $1,320 $1,686 
Carbohydrate Solutions247 232 680 726 
Nutrition23 11 55 35 
Total intersegment revenues$733 $837 $2,055 $2,447 
Segment operating profit(1)
Ag Services and Oilseeds$480 $848 $1,803 $3,113 
Carbohydrate Solutions452 468 1,057 1,066 
Nutrition105 130 298 437 
Total segment operating profit1,037 1,446 3,158 4,616 
   Other Business (loss) earnings(17)46 200 229 
Corporate(2)
(409)(390)(1,254)(1,105)
Specified items:
   (Gain) loss on sales of assets1 (2)1 10 
   Impairment and restructuring charges(504)(69)(517)(190)
Earnings before income taxes$108 $1,031 $1,588 $3,560 
(1)Amounts presented for Intersegment revenues and Segment operating profit for the three and nine months ended September 30, 2023 reflect the restatements described above.
(2)Includes restructuring costs of $12 million and $5 million for the nine months ended September 30, 2024 and 2023, respectively. Includes restructuring costs of $2 million for the three months ended September 30, 2023.