Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 29, 2020 | |
Class of Stock [Line Items] | ||
Entity Central Index Key | 0000007084 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-44 | |
Entity Registrant Name | ARCHER-DANIELS-MIDLAND CO | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 41-0129150 | |
Entity Address, Address Line One | 77 West Wacker Drive, Suite 4600 | |
Entity Address, City or Town | Chicago, | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60601 | |
City Area Code | 312 | |
Local Phone Number | 634-8100 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 556,389,049 | |
Debt Securities [Member] | ||
Class of Stock [Line Items] | ||
Title of 12(b) Security | 1.000% Notes due 2025 | |
Security Exchange Name | NYSE | |
No Trading Symbol Flag | true | |
Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Title of 12(b) Security | Common Stock, no par value | |
Trading Symbol | ADM | |
Security Exchange Name | NYSE |
Consolidated Statements Of Earn
Consolidated Statements Of Earnings - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Revenues | $ 15,126 | $ 16,726 | $ 46,377 | $ 48,327 |
Cost of Products Sold | 14,084 | 15,648 | 43,276 | 45,349 |
Gross Profit | 1,042 | 1,078 | 3,101 | 2,978 |
Selling, general, and administrative expenses | 636 | 578 | 1,938 | 1,839 |
Asset impairment, exit, and restructuring costs | 4 | 53 | 61 | 200 |
Interest Expense | 100 | 97 | 270 | 307 |
Equity in (earnings) losses of unconsolidated affiliates | (160) | (88) | (403) | (279) |
Interest Income | (16) | (47) | (71) | (142) |
Other (Income) Expense - Net | 278 | (18) | 179 | (39) |
Earnings Before Income Taxes | 200 | 503 | 1,127 | 1,092 |
Income taxes | (26) | 95 | 38 | 212 |
Net earnings including noncontrolling interests | 226 | 408 | 1,089 | 880 |
Less: Net earnings (losses) attributable to noncontrolling interests | 1 | 1 | 4 | 5 |
Net Earnings Attributable to Controlling Interests | $ 225 | $ 407 | $ 1,085 | $ 875 |
Average number of shares outstanding - basic | 561 | 562 | 561 | 564 |
Average number of shares outstanding - diluted | 562 | 563 | 563 | 565 |
Earnings Per Share, Basic | $ 0.40 | $ 0.72 | $ 1.93 | $ 1.55 |
Earnings Per Share, Diluted | 0.40 | 0.72 | 1.93 | 1.55 |
Dividends per common share | $ 0.36 | $ 0.35 | $ 1.08 | $ 1.05 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings including noncontrolling interests | $ 226 | $ 408 | $ 1,089 | $ 880 |
Other Comprehensive Income (Loss), before Tax | ||||
Foreign currency translation adjustment, before tax | (154) | (251) | (429) | (236) |
Pension and other postretirement benefit liabilities adjustment, before tax | (5) | 7 | 0 | 10 |
Deferred gain (loss) on hedging activities, before tax | 112 | (2) | 111 | (65) |
Unrealized gain (loss) on investments, before tax | (28) | 7 | (25) | 12 |
Other Comprehensive Income (Loss), Tax | ||||
Foreign currency translation adjustment, tax effect | 51 | (35) | 37 | (38) |
Pension and other postretirement benefit liabilities adjustment, tax effect | 3 | 0 | (9) | 15 |
Deferred gain (loss) on hedging activities, tax effect | (22) | 8 | (23) | 13 |
Unrealized gain (loss) on investments, tax effect | 0 | 0 | (1) | (1) |
Other Comprehensive Income (Loss), Net of Tax | ||||
Foreign currency translation adjustment, net of tax | (103) | (286) | (392) | (274) |
Pension and other postretirement benefit liabilities adjustment, net of tax | (2) | 7 | (9) | 25 |
Deferred gain (loss) on hedging activities, net of tax | 90 | 6 | 88 | (52) |
Unrealized gain (loss) on investments, net of tax | (28) | 7 | (26) | 11 |
Other comprehensive income (loss) | (43) | (266) | (339) | (290) |
Comprehensive income (loss) including noncontrolling interests | 183 | 142 | 750 | 590 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 2 | 0 | 9 | 4 |
Comprehensive income (loss) attributable to controlling interests | $ 181 | $ 142 | $ 741 | $ 586 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 948 | $ 852 |
Segregated cash and investments | 5,484 | 4,458 |
Trade receivables | 2,616 | 2,267 |
Inventories | 8,762 | 9,170 |
Other current assets | 4,956 | 4,600 |
Total Current Assets | 22,766 | 21,347 |
Investments and Other Assets | ||
Investments in and advances to affiliates | 4,771 | 5,132 |
Goodwill and other intangible assets | 5,275 | 5,476 |
Other assets | 2,167 | 1,936 |
Total Investments and Other Assets | 12,213 | 12,544 |
Property, Plant, and Equipment | ||
Land and Land Improvements | 538 | 592 |
Buildings | 5,429 | 5,381 |
Machinery and equipment | 18,992 | 19,005 |
Construction in progress | 1,037 | 1,021 |
Gross Property, Plant, and Equipment | 25,996 | 25,999 |
Accumulated depreciation | (16,180) | (15,893) |
Net Property, Plant, and Equipment | 9,816 | 10,106 |
Total Assets | 44,795 | 43,997 |
Current Liabilities | ||
Short-term debt | 209 | 1,202 |
Trade payables | 3,347 | 3,746 |
Payables to Brokerage Customers | 6,069 | 5,022 |
Accrued expenses and other payables | 4,280 | 3,757 |
Current maturities of long-term debt | 2 | 7 |
Total Current Liabilities | 13,907 | 13,734 |
Long-Term Liabilities | ||
Long-term debt | 7,922 | 7,672 |
Deferred income taxes | 1,344 | 1,194 |
Other | 2,196 | 2,114 |
Total Long-Term Liabilities | 11,462 | 10,980 |
Redeemable Noncontrolling Interest, Equity, Carrying Amount | 85 | 58 |
Shareholders' Equity | ||
Common stock | 2,760 | 2,655 |
Reinvested earnings | 19,311 | 18,958 |
Accumulated other comprehensive income (loss) | (2,749) | (2,405) |
Noncontrolling interests | 19 | 17 |
Total Shareholders' Equity | 19,341 | 19,225 |
Total Liabilities and Shareholders' Equity | $ 44,795 | $ 43,997 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Cash Flows [Abstract] | ||
Gain (Loss) on Extinguishment of Debt | $ 410 | $ 0 |
Operating Activities | ||
Net earnings including noncontrolling interests | 1,089 | 880 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities | ||
Depreciation and amortization | 727 | 742 |
Asset impairment charges | 50 | 50 |
Deferred income taxes | 57 | 8 |
Equity in earnings of affiliates, net of dividends | (165) | (92) |
Stock compensation expense | 114 | 66 |
Deferred cash flow hedges | 111 | (65) |
Gain (Loss) on Disposition of Assets | (132) | (37) |
Other - net | 34 | 148 |
Changes in operating assets and liabilities, net of businesses acquired | ||
Segregated cash and investments | 147 | 300 |
Trade receivables | (343) | 276 |
Inventories | 370 | 994 |
Increase (Decrease) in Accounts Receivable from Securitization | (4,603) | (5,714) |
Other current assets | (467) | (444) |
Trade payables | (389) | (808) |
Increase (Decrease) in Payables to Brokerage Customers | 1,060 | 263 |
Accrued expenses and other payables | 414 | (206) |
Total Operating Activities | (1,516) | (3,639) |
Investing Activities | ||
Purchases of property, plant, and equipment | (558) | (566) |
Proceeds from sale of business and assets | 708 | 43 |
Net assets of businesses acquired | (3) | (1,946) |
Purchases of marketable securities | (2) | (26) |
Proceeds from sales of marketable securities | 1 | 67 |
Payments to Acquire Interest in Subsidiaries and Affiliates | (5) | (12) |
Payments to Acquire Retained Interest in Securitized Receivables | (2,121) | (3,813) |
Proceeds from Collection of Retained Interest in Securitized Receivables | 6,724 | 9,527 |
Other - net | (16) | (23) |
Total Investing Activities | 4,728 | 3,251 |
Financing Activities | ||
Long-term debt borrowings | 1,790 | 3 |
Long-term debt payments | (2,032) | (615) |
Net borrowings (payments) under lines of credit agreements | (993) | 960 |
Purchases of treasury stock | (117) | (150) |
Cash dividends | (607) | (592) |
Other - net | 16 | (36) |
Total Financing Activities | (1,943) | (430) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 1,269 | (818) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Beginning | 2,990 | 3,843 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Ending | 4,259 | 3,025 |
Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents [Abstract] | ||
Cash and cash equivalents | 948 | 932 |
Restricted Cash and Cash Equivalents | 3,311 | 2,093 |
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | ||
Noncash or Part Noncash Acquisition, Investments Acquired | $ 4,656 | $ 5,657 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interests [Member] | Previously Reported [Member] | Previously Reported [Member]Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Accumulated Other Comprehensive Income (Loss) [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Noncontrolling Interests [Member] |
Balance (shares) at Dec. 31, 2018 | 559 | |||||||||||||
Balance at Dec. 31, 2018 | $ 18,996 | $ 2,560 | $ 18,527 | $ (2,106) | $ 15 | |||||||||
Comprehensive income | ||||||||||||||
Net earnings including noncontrolling interests | 880 | 875 | 5 | |||||||||||
Other comprehensive income (loss) | (290) | (289) | (1) | |||||||||||
Total comprehensive income | $ 590 | |||||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 1.05 | |||||||||||||
Cash dividends paid | $ (592) | (592) | ||||||||||||
Stock Repurchased During Period, Value | $ (150) | (150) | ||||||||||||
Stock Repurchased During Period, Shares | (4) | |||||||||||||
Stock compensation expense, shares | 2 | |||||||||||||
Stock compensation expense | $ 66 | $ 66 | ||||||||||||
Other, shares | 0 | |||||||||||||
Other | (15) | $ (9) | (9) | 0 | 3 | |||||||||
Balance (shares) at Sep. 30, 2019 | 557 | |||||||||||||
Balance at Sep. 30, 2019 | 18,895 | $ 2,617 | 18,651 | (2,395) | 22 | |||||||||
Balance (shares) at Jun. 30, 2019 | 558 | |||||||||||||
Balance at Jun. 30, 2019 | 18,979 | $ 2,588 | 18,497 | (2,130) | 24 | |||||||||
Comprehensive income | ||||||||||||||
Net earnings including noncontrolling interests | 408 | 407 | 1 | |||||||||||
Other comprehensive income (loss) | (266) | (265) | (1) | |||||||||||
Total comprehensive income | $ 142 | |||||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.35 | |||||||||||||
Cash dividends paid | $ (197) | (197) | ||||||||||||
Stock Repurchased During Period, Value | $ (56) | (56) | ||||||||||||
Stock Repurchased During Period, Shares | (2) | |||||||||||||
Stock compensation expense, shares | 1 | |||||||||||||
Stock compensation expense | $ 21 | $ 21 | ||||||||||||
Other, shares | 0 | |||||||||||||
Other | 6 | $ 8 | 0 | 0 | (2) | |||||||||
Balance (shares) at Sep. 30, 2019 | 557 | |||||||||||||
Balance at Sep. 30, 2019 | 18,895 | $ 2,617 | 18,651 | (2,395) | 22 | |||||||||
Balance (shares) at Dec. 31, 2019 | 557 | |||||||||||||
Balance at Dec. 31, 2019 | 19,225 | $ 2,655 | (2,405) | 17 | $ 19,225 | $ 18,958 | $ (8) | $ (8) | $ 19,217 | $ 2,655 | $ 18,950 | $ (2,405) | $ 17 | |
Comprehensive income | ||||||||||||||
Net earnings including noncontrolling interests | 1,089 | 1,085 | 4 | |||||||||||
Other comprehensive income (loss) | (339) | (344) | 5 | |||||||||||
Total comprehensive income | $ 750 | |||||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 1.08 | |||||||||||||
Cash dividends paid | $ (607) | (607) | ||||||||||||
Stock Repurchased During Period, Value | (117) | (117) | ||||||||||||
Stock Repurchased During Period, Shares | (3) | |||||||||||||
Stock compensation expense, shares | 2 | |||||||||||||
Stock compensation expense | 114 | $ 114 | ||||||||||||
Other, shares | 0 | |||||||||||||
Other | (16) | $ (9) | 0 | (7) | ||||||||||
Balance (shares) at Sep. 30, 2020 | 556 | |||||||||||||
Balance at Sep. 30, 2020 | 19,341 | $ 2,760 | 19,311 | (2,749) | 19 | |||||||||
Balance (shares) at Jun. 30, 2020 | 556 | |||||||||||||
Balance at Jun. 30, 2020 | 19,311 | $ 2,705 | 19,293 | (2,705) | 18 | |||||||||
Comprehensive income | ||||||||||||||
Net earnings including noncontrolling interests | 226 | 225 | 1 | |||||||||||
Other comprehensive income (loss) | (43) | (44) | 1 | |||||||||||
Total comprehensive income | $ 183 | |||||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.36 | |||||||||||||
Cash dividends paid | $ (202) | (202) | ||||||||||||
Stock Repurchased During Period, Value | $ (5) | (5) | ||||||||||||
Stock Repurchased During Period, Shares | 0 | |||||||||||||
Stock compensation expense, shares | 0 | |||||||||||||
Stock compensation expense | $ 39 | $ 39 | ||||||||||||
Other, shares | 0 | |||||||||||||
Other | 15 | $ 16 | 0 | 0 | (1) | |||||||||
Balance (shares) at Sep. 30, 2020 | 556 | |||||||||||||
Balance at Sep. 30, 2020 | $ 19,341 | $ 2,760 | $ 19,311 | $ (2,749) | $ 19 |
Consolidated Statements Of Sh_2
Consolidated Statements Of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends paid, per share | $ 0.36 | $ 0.35 | $ 1.08 | $ 1.05 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these statements do not include all of the information and footnotes required by generally accepted accounting principles for audited financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 . For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 . Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. The Company consolidates all entities, including variable interest entities (VIEs), in which it has a controlling financial interest. For VIEs, the Company assesses whether it is the primary beneficiary as defined under the applicable accounting standard. Investments in affiliates, including VIEs through which the Company exercises significant influence but does not control the investee and is not the primary beneficiary of the investee’s activities, are carried at cost plus equity in undistributed earnings since acquisition and are adjusted, where appropriate, for basis differences between the investment balance and the underlying net assets of the investee. The Company’s portion of the results of certain affiliates and results of certain VIEs are included using the most recent available financial statements. In each case, the financial statements are within 93 days of the Company’s year end and are consistent from period to period. Reclassifications Effective January 1, 2020, the Company started reporting its newly created dry mill ethanol subsidiary, Vantage Corn Processors (VCP), as a sub-segment within the Carbohydrate Solutions segment. VCP replaces the Bioproducts sub-segment which included the combined results of the Company’s corn dry and wet mill ethanol operations. The wet mill ethanol operations that were previously reported in Bioproducts are now included in the Starches and Sweeteners sub-segment. In addition to dry mill ethanol production, VCP sells/brokers ADM’s wet mill ethanol production as the sole marketer of ethanol produced at the Company’s facilities. The change does not have an impact on the total results of the Carbohydrate Solutions segment. Prior period information in Notes 4 and 14 has been reclassified to conform to the current period segment presentation. Segregated Cash and Investments The Company segregates certain cash, cash equivalents, and investment balances in accordance with regulatory requirements, commodity exchange requirements, and insurance arrangements. These balances represent deposits received from customers of the Company’s registered futures commission merchant and commodity brokerage services, cash margins and securities pledged to commodity exchange clearinghouses, and cash pledged as security under certain insurance arrangements. Segregated cash and investments also include restricted cash collateral for the various insurance programs of the Company’s captive insurance business. To the degree these segregated balances are comprised of cash and cash equivalents, they are considered restricted cash and cash equivalents on the consolidated statements of cash flows. Receivables The Company records receivables at net realizable value in trade receivables, other current assets, and other assets. These amounts include allowances for estimated uncollectible accounts totaling $105 million and $110 million at September 30, 2020 and December 31, 2019 , respectively, to reflect any loss anticipated on the accounts receivable balances including any accrued interest receivables thereon. Long-term receivables recorded in other assets were not material to the Company’s overall receivables portfolio. Effective January 1, 2020, the Company adopted Accounting Standards Codification (ASC) Topic 326, Financial Instruments - Credit Losses (Topic 326), and developed a new methodology for estimating uncollectible accounts. Under this methodology, receivables are pooled according to type, region, credit risk rating, and age. Each pool is assigned an expected loss co-efficient to arrive at a general reserve based on historical write-offs adjusted, as needed, for regional, economic, and other forward-looking factors. The Company minimizes credit risk due to the large and diversified nature of its worldwide customer base. ADM manages its exposure to counter-party credit risk through credit analysis and approvals, credit limits, and monitoring procedures. The Company recorded bad debt expense in selling, general, and administrative expenses of $7 million and $32 million in the three and nine months ended September 30, 2020 , respectively, and $3 million and $10 million in the three and nine months ended September 30, 2019. Inventory Valuation Effective January 1, 2020, the Company changed the method of accounting for certain of its agricultural commodity inventories from the last-in, first-out (LIFO) method to market value in the Ag Services and Oilseeds segment. As of December 31, 2019, inventories accounted for using LIFO at the lower of cost or net realizable value represented approximately 10% of consolidated inventories. The Company believes market value is preferable because it: (i) conforms to the inventory valuation methodology used for the majority of ADM’s agricultural commodity inventories; (ii) enhances the matching of inventory costs with revenues and better reflects the current cost of inventory on the Company’s balance sheet; and (iii) provides better comparability with the Company’s peers. The Company concluded that the accounting change does not have a material effect on prior periods’ financial statements and elected not to apply the change on a retrospective basis. As a result, the Company recorded a reduction in cost of products sold of $91 million ( $69 million after tax, equal to $0.12 per diluted share) for the cumulative effect of the change in the three months ended March 31, 2020 with no impact to the statement of cash flows. The Company does not expect the change to have a material impact on its results for the year ending December 31, 2020. If the Company had not made the accounting change, the effect of LIFO valuation on ADM’s operating results would have been an increase in cost of products sold of $50 million ( $38 million after tax, equal to $0.07 per diluted share) in the three months ended September 30, 2020 and an increase in cost of goods sold of $7 million ( $5 million after tax, equal to $0.01 per diluted share) in the nine months ended September 30, 2020 |
New Accounting Standards
New Accounting Standards | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Accounting Standards Update and Change in Accounting Principle [Text Block] | New Accounting Standards Effective January 1, 2020, the Company adopted the amended guidance of Topic 326, which is intended to improve financial reporting by requiring more timely recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The amended guidance replaces the prior “incurred loss” approach with an “expected loss” model and requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The Company was required to adopt the amended guidance on a modified retrospective basis through a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption. The Company evaluated its current methodology of estimating allowance for doubtful accounts and the risk profile of its receivable portfolio and developed a model that includes the qualitative and forecasting aspects of the “expected loss” model under the amended guidance. The Company finalized its assessment of the impact of the amended guidance and recorded a $8 million cumulative effect adjustment to retained earnings at January 1, 2020. For more information about the Company’s receivables, see Note 1. Effective January 1, 2020, the Company adopted the amended guidance of ASC Topic 820, Fair Value Measurement , which modifies the disclosure requirements on fair value measurements. The adoption of this amended guidance did not impact the Company’s financial results. |
Pending Accounting Standards
Pending Accounting Standards | 9 Months Ended |
Sep. 30, 2020 | |
Prospective Adoption of New Accounting Pronouncements [Abstract] | |
Pending Accounting Standards | Pending Accounting Standards Effective December 31, 2020, the Company will be required to adopt the amended guidance of ASC Subtopic 715-20, Compensation - Retirement Benefits - Defined Benefit Plans - General , which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Early adoption is permitted. The adoption of this amended guidance will not impact the Company’s financial results. Effective January 1, 2021, the Company will be required to adopt the amended guidance of ASC Topic 740, Income Taxes (Topic 740), which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify other areas of Topic 740. Early adoption is permitted. The Company has not yet completed its assessment of the impact of the amended guidance on the consolidated financial statements but does not expect the adoption of the amendments to have a significant impact on its financial results. Through December 31, 2022, the Company has the option to adopt the amended guidance of ASC Topic 848, Reference Rate Reform , which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amended guidance do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The Company plans to adopt the expedients and exceptions provided by the amended guidance before the December 31, 2022 expiry date but has not yet completed its assessment of the impact on the consolidated financial statements. |
Revenues Revenues
Revenues Revenues | 9 Months Ended |
Sep. 30, 2020 | |
Revenues [Abstract] | |
Revenues [Text Block] | Revenues Revenue Recognition The Company principally generates revenue from merchandising and transporting agricultural commodities and manufactured products used as ingredients in food, feed, energy, and industrial products. Revenue is measured based on the consideration specified in the contract with a customer, and excludes any sales incentives and amounts collected on behalf of third parties. The Company follows a policy of recognizing revenue at a single point in time when it satisfies its performance obligation by transferring control over a product or service to a customer. The majority of the Company’s contracts with customers have one performance obligation and a contract duration of one year or less. The Company applies the practical expedient in paragraph 10-50-14 of ASC 606, Revenue from Contracts with Customers (Topic 606) and does not disclose information about remaining performance obligations that have original expected durations of one year or less. For transportation service contracts, the Company recognizes revenue over time as the barge, ocean-going vessel, truck, rail, or container freight moves towards its destination in accordance with the transfer of control guidance of Topic 606. The Company recognized revenue from transportation service contracts of $87 million and $310 million for the three and nine months ended September 30, 2020 , respectively, and $134 million and $377 million for the three and nine months ended September 30, 2019 , respectively. For physically settled derivative sales contracts that are outside the scope of Topic 606, the Company recognizes revenue when control of the inventory is transferred within the meaning of Topic 606 as required by ASC 610-20, Gains and Losses from the Derecognition of Nonfinancial Assets (Topic 610-20). Shipping and Handling Costs Shipping and handling costs related to contracts with customers for the sale of goods are accounted for as a fulfillment activity and are included in cost of products sold. Accordingly, amounts billed to customers for such costs are included as a component of revenues. Taxes Collected from Customers and Remitted to Governmental Authorities The Company does not include taxes assessed by governmental authorities that are (i) imposed on and concurrent with a specific revenue-producing transaction and (ii) collected from customers, in the measurement of transactions prices or as a component of revenues and cost of products sold. Contract Liabilities Contract liabilities relate to advance payments from customers for goods and services that the Company has yet to provide. Contract liabilities of $344 million and $604 million as of September 30, 2020 and December 31, 2019 , respectively, were recorded in accrued expenses and other payables in the consolidated balance sheets. Contract liabilities recognized as revenues for the three and nine months ended September 30, 2020 were $121 million and $742 million , respectively, and $193 million and $519 million for the three and nine months ended September 30, 2019 , respectively. Disaggregation of Revenues The following tables present revenue disaggregated by timing of recognition and major product lines for the three and nine months ended September 30, 2020 and 2019 . Three Months Ended September 30, 2020 Topic 606 Revenue Topic 815 (1) Total Point in Time Over Time Total Revenue Revenues (In millions) Ag Services and Oilseeds Ag Services $ 776 $ 87 $ 863 $ 6,489 $ 7,352 Crushing 113 — 113 2,204 2,317 Refined Products and Other 462 — 462 1,396 1,858 Total Ag Services and Oilseeds 1,351 87 1,438 10,089 11,527 Carbohydrate Solutions Starches and Sweeteners 1,162 — 1,162 412 1,574 Vantage Corn Processors 490 — 490 — 490 Total Carbohydrate Solutions 1,652 — 1,652 412 2,064 Nutrition Human Nutrition 719 — 719 — 719 Animal Nutrition 732 — 732 — 732 Total Nutrition 1,451 — 1,451 — 1,451 Other Business 84 — 84 — 84 Total Revenues $ 4,538 $ 87 $ 4,625 $ 10,501 $ 15,126 Nine Months Ended September 30, 2020 Topic 606 Revenue Topic 815 (1) Total Point in Time Over Time Total Revenue Revenues (In millions) Ag Services and Oilseeds Ag Services $ 2,504 $ 310 $ 2,814 $ 20,116 $ 22,930 Crushing 493 — 493 6,542 7,035 Refined Products and Other 1,501 — 1,501 3,881 5,382 Total Ag Services and Oilseeds 4,498 310 4,808 30,539 35,347 Carbohydrate Solutions Starches and Sweeteners 3,539 — 3,539 1,230 4,769 Vantage Corn Processors 1,625 — 1,625 — 1,625 Total Carbohydrate Solutions 5,164 — 5,164 1,230 6,394 Nutrition Human Nutrition 2,161 — 2,161 — 2,161 Animal Nutrition 2,198 — 2,198 — 2,198 Total Nutrition 4,359 — 4,359 — 4,359 Other Business 277 — 277 — 277 Total Revenues $ 14,298 $ 310 $ 14,608 $ 31,769 $ 46,377 Three Months Ended September 30, 2019 Topic 606 Revenue Topic 815 (1) Total Point in Time Over Time Total Revenue Revenues (In millions) Ag Services and Oilseeds Ag Services $ 1,369 $ 134 $ 1,503 $ 6,743 $ 8,246 Crushing 175 — 175 2,290 2,465 Refined Products and Other 628 — 628 1,277 1,905 Total Ag Services and Oilseeds 2,172 134 2,306 10,310 12,616 Carbohydrate Solutions Starches and Sweeteners 1,098 — 1,098 428 1,526 Vantage Corn Processors 1,039 — 1,039 — 1,039 Total Carbohydrate Solutions 2,137 — 2,137 428 2,565 Nutrition Human Nutrition 703 — 703 — 703 Animal Nutrition 754 — 754 — 754 Total Nutrition 1,457 — 1,457 — 1,457 Other Business 88 — 88 — 88 Total Revenues $ 5,854 $ 134 $ 5,988 $ 10,738 $ 16,726 Nine Months Ended September 30, 2019 Topic 606 Revenue Topic 815 (1) Total Point in Time Over Time Total Revenue Revenues (In millions) Ag Services and Oilseeds Ag Services $ 2,509 $ 377 $ 2,886 $ 20,767 $ 23,653 Crushing 546 — 546 6,584 7,130 Refined Products and Other 1,665 — 1,665 3,934 5,599 Total Ag Services and Oilseeds 4,720 377 5,097 31,285 36,382 Carbohydrate Solutions Starches and Sweeteners 3,507 — 3,507 1,275 4,782 Vantage Corn Processors 2,627 — 2,627 — 2,627 Total Carbohydrate Solutions 6,134 — 6,134 1,275 7,409 Nutrition Human Nutrition 2,105 — 2,105 — 2,105 Animal Nutrition 2,158 — 2,158 — 2,158 Total Nutrition 4,263 — 4,263 — 4,263 Other Business 273 — 273 — 273 Total Revenues $ 15,390 $ 377 $ 15,767 $ 32,560 $ 48,327 (1) Topic 815 revenue relates to the physical delivery or the settlement of the Company’s sales contracts that are accounted for as derivatives and are outside the scope of Topic 606. Ag Services and Oilseeds The Ag Services and Oilseeds segment generates revenue from the sale of commodities, from service fees for the transportation of goods, and from the sale of products manufactured in its global processing facilities. Revenue is measured based on the consideration specified in the contract and excludes any sales incentives and amounts collected on behalf of third parties. Revenue is recognized when a performance obligation is satisfied by transferring control over a product or providing service to a customer. For transportation service contracts, the Company recognizes revenue over time as the barge, ocean-going vessel, truck, rail, or container freight moves towards its destination in accordance with the transfer of control guidance of Topic 606. The amount of revenue recognized follows the contractually specified price which may include freight or other contractually specified cost components. For physically settled derivative sales contracts that are outside the scope of Topic 606, the Company recognizes revenue when control of the inventory is transferred within the meaning of Topic 606 as required by Topic 610-20. Carbohydrate Solutions The Carbohydrate Solutions segment generates revenue from the sale of products manufactured at the Company’s global corn and wheat milling facilities around the world. Revenue is recognized when control over products is transferred to the customer. Products are shipped to customers from the Company’s various facilities and from its network of storage terminals. The amount of revenue recognized is based on the consideration specified in the contract which could include freight and other costs depending on the specific shipping terms of each contract. For physically settled derivative sales contracts that are outside the scope of Topic 606, the Company recognizes revenue when control of the inventory is transferred within the meaning of Topic 606 as required by Topic 610-20. Nutrition The Nutrition segment sells specialty products including natural flavor ingredients, flavor systems, natural colors, animal nutrition products, and other specialty food and feed ingredients. Revenue is recognized when control over products is transferred to the customer. The amount of revenue recognized follows the contracted price or the mutually agreed price of the product. Freight and shipping are recognized as a component of revenue at the same time control transfers to the customer. Other Business Other Business includes the Company’s futures commission business whose primary sources of revenue are commissions and brokerage income generated from executing orders and clearing futures contracts and options on futures contracts on behalf of its customers. Commissions and brokerage revenue are recognized on the date the transaction is executed. Other Business also includes the Company’s captive insurance business which generates third party revenue through its proportionate share of premiums from third-party reinsurance pools. Reinsurance premiums are recognized on a straight-line basis over the period underlying the policy. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables set forth, by level, the Company’s assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2020 and December 31, 2019 . Fair Value Measurements at September 30, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (In millions) Assets: Inventories carried at market $ — $ 3,572 $ 2,092 $ 5,664 Unrealized derivative gains: Commodity contracts — 894 580 1,474 Foreign currency contracts — 292 — 292 Interest rate contracts — 32 — 32 Cash equivalents 496 — — 496 Marketable securities 9 — — 9 Segregated investments 1,158 — — 1,158 Deferred receivables consideration — 272 — 272 Total Assets $ 1,663 $ 5,062 $ 2,672 $ 9,397 Liabilities: Unrealized derivative losses: Commodity contracts $ — $ 592 $ 796 $ 1,388 Foreign currency contracts — 547 — 547 Interest rate contracts — 34 — 34 Debt conversion option — — 32 32 Inventory-related payables — 482 7 489 Total Liabilities $ — $ 1,655 $ 835 $ 2,490 Fair Value Measurements at December 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (In millions) Assets: Inventories carried at market $ — $ 3,227 $ 1,477 $ 4,704 Unrealized derivative gains: Commodity contracts — 277 201 478 Foreign currency contracts — 138 — 138 Interest rate contracts — 3 — 3 Cash equivalents 505 — — 505 Marketable securities 5 — — 5 Segregated investments 628 — — 628 Deferred receivables consideration — 446 — 446 Total Assets $ 1,138 $ 4,091 $ 1,678 $ 6,907 Liabilities: Unrealized derivative losses: Commodity contracts $ — $ 375 $ 199 $ 574 Foreign currency contracts — 125 — 125 Interest rate contracts — 43 — 43 Inventory-related payables — 702 27 729 Total Liabilities $ — $ 1,245 $ 226 $ 1,471 Estimated fair values for inventories carried at market are based on exchange-quoted prices, adjusted for differences in local markets and quality, referred to as basis. Market valuations for the Company’s inventories are adjusted for location and quality (basis) because the exchange-quoted prices represent contracts that have standardized terms for commodity, quantity, future delivery period, delivery location, and commodity quality or grade. The basis adjustments are generally determined using the inputs from broker or dealer quotations or market transactions in either the listed or over the counter (OTC) markets and are considered observable. In some cases, the basis adjustments are unobservable because they are supported by little to no market activity. When unobservable inputs have a significant impact on the measurement of fair value, the inventory is classified in Level 3. Changes in the fair value of inventories are recognized in the consolidated statements of earnings as a component of cost of products sold. Derivative contracts include exchange-traded commodity futures and options contracts, forward commodity purchase and sale contracts, and OTC instruments related primarily to agricultural commodities, energy, interest rates, and foreign currencies. Exchange-traded futures and options contracts are valued based on unadjusted quoted prices in active markets and are classified in Level 1. The majority of the Company’s exchange-traded futures and options contracts are cash-settled on a daily basis and, therefore, are not included in these tables. Fair value for forward commodity purchase and sale contracts is estimated based on exchange-quoted prices adjusted for differences in local markets. Market valuations for the Company’s forward commodity purchase and sale contracts are adjusted for location (basis) because the exchange-quoted prices represent contracts that have standardized terms for commodity, quantity, future delivery period, delivery location, and commodity quality or grade. The basis adjustments are generally determined using inputs from broker or dealer quotations or market transactions in either the listed or OTC markets and are considered observable. In some cases, the basis adjustments are unobservable because they are supported by little to no market activity. When observable inputs are available for substantially the full term of the contract, it is classified in Level 2. When unobservable inputs have a significant impact (more than 10%) on the measurement of fair value, the contract is classified in Level 3. Except for certain derivatives designated as cash flow hedges, changes in the fair value of commodity-related derivatives are recognized in the consolidated statements of earnings as a component of cost of products sold. Changes in the fair value of foreign currency-related derivatives are recognized in the consolidated statements of earnings as a component of revenues, cost of products sold, or other (income) expense - net, depending upon the purpose of the contract. The changes in the fair value of derivatives designated as effective cash flow hedges are recognized in the consolidated balance sheets as a component of accumulated other comprehensive income (loss) (AOCI) until the hedged items are recorded in earnings or it is probable the hedged transaction will no longer occur. The Company’s cash equivalents are comprised of money market funds valued using quoted market prices and are classified as Level 1. The Company’s segregated investments are comprised of U.S. Treasury securities. U.S. Treasury securities are valued using quoted market prices and are classified in Level 1. The Company has deferred consideration under its accounts receivable securitization program (the “First Program”) which represents notes receivable from the purchasers under the First Program (see Note 16 for more information). This amount is reflected in other current assets on the consolidated balance sheets (see Note 7 for more information). The Company carries the deferred receivables consideration at fair value determined by calculating the expected amount of cash to be received. The fair value is principally based on observable inputs (a Level 2 measurement) consisting mainly of the face amount of the receivables adjusted for anticipated credit losses and discounted at the appropriate market rate. Payment of deferred receivables consideration is not subject to significant risks other than delinquencies and credit losses on accounts receivable transferred under the First Program, which have historically been insignificant. The following table presents a rollforward of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended September 30, 2020 . Level 3 Fair Value Asset Measurements at September 30, 2020 Inventories Carried at Market Commodity Derivative Contracts Gains Total Assets (In millions) Balance, June 30, 2020 $ 1,399 $ 442 $ 1,841 Total increase (decrease) in net realized/unrealized gains included in cost of products sold* 258 286 544 Purchases 3,181 — 3,181 Sales (2,703 ) — (2,703 ) Settlements — (96 ) (96 ) Transfers into Level 3 290 13 303 Transfers out of Level 3 (333 ) (65 ) (398 ) Ending balance, September 30, 2020 $ 2,092 $ 580 $ 2,672 * Includes increase in unrealized gains of $392 million relating to Level 3 assets still held at September 30, 2020 . The following table presents a rollforward of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended September 30, 2020 . Level 3 Fair Value Liability Measurements at September 30, 2020 Inventory- related Payables Commodity Derivative Contracts Losses Debt Conversion Option Total Liabilities (In millions) Balance, June 30, 2020 $ 14 $ 363 $ — $ 377 Total increase (decrease) in net realized/unrealized losses included in cost of products sold and interest expense* (3 ) 618 15 630 Purchases and issuance of debt conversion option 3 — 17 20 Sales (7 ) — — (7 ) Settlements — (188 ) — (188 ) Transfers into Level 3 — 24 — 24 Transfers out of Level 3 — (21 ) — (21 ) Ending balance, September 30, 2020 $ 7 $ 796 $ 32 $ 835 * Includes increase in unrealized losses of $635 million relating to Level 3 liabilities still held at September 30, 2020 . The following table presents a rollforward of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended September 30, 2019 . Level 3 Fair Value Asset Measurements at September 30, 2019 Inventories Carried at Market Commodity Derivative Contracts Gains Total Assets (In millions) Balance, June 30, 2019 $ 1,388 $ 159 $ 1,547 Total increase (decrease) in net realized/unrealized gains included in cost of products sold* 27 91 118 Purchases 2,772 — 2,772 Sales (2,643 ) — (2,643 ) Settlements — (106 ) (106 ) Transfers into Level 3 213 21 234 Transfers out of Level 3 (327 ) (4 ) (331 ) Ending balance, September 30, 2019 $ 1,430 $ 161 $ 1,591 * Includes increase in unrealized gains of $165 million relating to Level 3 assets still held at September 30, 2019 . The following table presents a rollforward of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended September 30, 2019 . Level 3 Fair Value Liability Measurements at September 30, 2019 Inventory- related Payables Commodity Derivative Contracts Losses Total Liabilities (In millions) Balance, June 30, 2019 $ 22 $ 216 $ 238 Total increase (decrease) in net realized/unrealized losses included in cost of products sold* (3 ) 82 79 Purchases 26 — 26 Sales (4 ) — (4 ) Settlements — (167 ) (167 ) Transfers into Level 3 — 13 13 Transfers out of Level 3 — (4 ) (4 ) Ending balance, September 30, 2019 $ 41 $ 140 $ 181 * Includes increase in unrealized losses of $81 million relating to Level 3 liabilities still held at September 30, 2019 . The following table presents a rollforward of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended September 30, 2020 . Level 3 Fair Value Asset Measurements at September 30, 2020 Inventories Carried at Market Commodity Derivative Contracts Gains Total Assets (In millions) Balance, December 31, 2019 $ 1,477 $ 201 $ 1,678 Total increase (decrease) in net realized/unrealized gains included in cost of products sold* 626 732 1,358 Purchases 9,600 — 9,600 Sales (9,838 ) — (9,838 ) Settlements — (331 ) (331 ) Transfers into Level 3 290 57 347 Transfers out of Level 3 (63 ) (79 ) (142 ) Ending balance, September 30, 2020 $ 2,092 $ 580 $ 2,672 * Includes increase in unrealized gains of $1.2 billion relating to Level 3 assets still held at September 30, 2020 . The following table presents a rollforward of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended September 30, 2020 . Level 3 Fair Value Liability Measurements at September 30, 2020 Inventory- related Payables Commodity Derivative Contracts Losses Debt Conversion Option Total Liabilities (In millions) Balance, December 31, 2019 $ 27 $ 199 $ — $ 226 Total increase (decrease) in net realized/unrealized losses included in cost of products sold and interest expense* 1 1,070 15 1,086 Purchases and issuance of debt conversion option 11 — 17 28 Sales (32 ) — (32 ) Settlements — (521 ) (521 ) Transfers into Level 3 — 79 79 Transfers out of Level 3 — (31 ) (31 ) Ending balance, September 30, 2020 $ 7 $ 796 $ 32 $ 835 * Includes increase in unrealized losses of $1.1 billion relating to Level 3 liabilities still held at September 30, 2020 . The following table presents a rollforward of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended September 30, 2019 . Level 3 Fair Value Asset Measurements at September 30, 2019 Inventories Carried at Market Commodity Derivative Contracts Gains Total Assets (In millions) Balance, December 31, 2018 $ 1,515 $ 155 $ 1,670 Total increase (decrease) in net realized/unrealized gains included in cost of products sold* 148 319 467 Purchases 8,118 — 8,118 Sales (8,425 ) — (8,425 ) Settlements — (346 ) (346 ) Transfers into Level 3 213 54 267 Transfers out of Level 3 (139 ) (21 ) (160 ) Ending balance, September 30, 2019 $ 1,430 $ 161 $ 1,591 * Includes increase in unrealized gains of $656 million relating to Level 3 assets still held at September 30, 2019 . The following table presents a rollforward of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended September 30, 2019 . Level 3 Fair Value Liability Measurements at September 30, 2019 Inventory- related Payables Commodity Derivative Contracts Losses Total Liabilities (In millions) Balance, December 31, 2018 $ 18 $ 245 $ 263 Total increase (decrease) in net realized/unrealized losses included in cost of products sold* (2 ) 254 252 Purchases 41 — 41 Sales (16 ) — (16 ) Settlements — (354 ) (354 ) Transfers into Level 3 — 37 37 Transfers out of Level 3 — (42 ) (42 ) Ending balance, September 30, 2019 $ 41 $ 140 $ 181 * Includes increase in unrealized losses of $258 million relating to Level 3 liabilities still held at September 30, 2019 . Transfers into Level 3 of assets and liabilities previously classified in Level 2 were due to the relative value of unobservable inputs to the total fair value measurement of certain products and derivative contracts rising above the 10% threshold. Transfers out of Level 3 were primarily due to the relative value of unobservable inputs to the total fair value measurement of certain products and derivative contracts falling below the 10% threshold and thus permitting reclassification to Level 2. In some cases, the price components that result in differences between exchange-traded prices and local prices for inventories and commodity purchase and sale contracts are observable based upon available quotations for these pricing components, and in some cases, the differences are unobservable. These price components primarily include transportation costs and other adjustments required due to location, quality, or other contract terms. In the table below, these other adjustments are referred to as basis. The changes in unobservable price components are determined by specific local supply and demand characteristics at each facility and the overall market. Factors such as substitute products, weather, fuel costs, contract terms, and futures prices also impact the movement of these unobservable price components. The following table sets forth the weighted average percentage of the unobservable price components included in the Company’s Level 3 valuations as of September 30, 2020 and December 31, 2019 . The Company’s Level 3 measurements may include basis only, transportation cost only, or both price components. As an example, for Level 3 inventories with basis, the unobservable component as of September 30, 2020 is a weighted average 20.6% of the total price for assets and 56.4% of the total price for liabilities. Weighted Average % of Total Price September 30, 2020 December 31, 2019 Component Type Assets Liabilities Assets Liabilities Inventories and Related Payables Basis 20.6 % 56.4 % 28.2 % 14.7 % Transportation cost 15.8 % — % 24.7 % — % Commodity Derivative Contracts Basis 12.6 % 18.7 % 16.0 % 20.2 % Transportation cost 5.2 % 4.3 % 9.7 % 3.1 % In certain of the Company’s principal markets, the Company relies on price quotes from third parties to value its inventories and physical commodity purchase and sale contracts. These price quotes are generally not further adjusted by the Company in determining the applicable market price. In some cases, availability of third-party quotes is limited to only one or two independent sources. In these situations, absent other corroborating evidence, the Company considers these price quotes as 100% unobservable and, therefore, the fair value of these items is reported in Level 3. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Derivatives Not Designated as Hedging Instruments The majority of the Company’s derivative instruments have not been designated as hedging instruments. The Company uses exchange-traded futures and exchange-traded and OTC options contracts to manage its net position of merchandisable agricultural product inventories and forward cash purchase and sales contracts to reduce price risk caused by market fluctuations in agricultural commodities and foreign currencies. The Company also uses exchange-traded futures and exchange-traded and OTC options contracts as components of merchandising strategies designed to enhance margins. The results of these strategies can be significantly impacted by factors such as the correlation between the value of exchange-traded commodities futures contracts and the value of the underlying commodities, counterparty contract defaults, and volatility of freight markets. Derivatives, including exchange-traded contracts and physical purchase or sale contracts, and inventories of certain merchandisable agricultural product inventories, which include amounts acquired under deferred pricing contracts, are stated at market value. Inventory is not a derivative and therefore fair values of and changes in fair values of inventories are not included in the tables below. The following table sets forth the fair value of derivatives not designated as hedging instruments as of September 30, 2020 and December 31, 2019 . September 30, 2020 December 31, 2019 Assets Liabilities Assets Liabilities (In millions) Foreign Currency Contracts $ 276 $ 547 $ 125 $ 120 Commodity Contracts 1,474 1,388 478 574 Debt Conversion Option — 32 — — Total $ 1,750 $ 1,967 $ 603 $ 694 The following tables set forth the pre-tax gains (losses) on derivatives not designated as hedging instruments that have been included in the consolidated statements of earnings for the three and nine months ended September 30, 2020 and 2019 . Other expense (income) - net Cost of Interest (In millions) Revenues products sold expense Three Months Ended September 30, 2020 Consolidated Statement of Earnings $ 15,126 $ 14,084 $ 278 $ 100 Pre-tax gains (losses) on: Foreign Currency Contracts $ 8 $ (77 ) $ (85 ) $ — Commodity Contracts — (272 ) — — Debt Conversion Option — — — (15 ) Total gain (loss) recognized in earnings $ 8 $ (349 ) $ (85 ) $ (15 ) $ (441 ) Three Months Ended September 30, 2019 Consolidated Statement of Earnings $ 16,726 $ 15,648 $ (18 ) $ 97 Pre-tax gains (losses) on: Foreign Currency Contracts $ 17 $ (81 ) $ (6 ) $ — Commodity Contracts — 153 — — Total gain (loss) recognized in earnings $ 17 $ 72 $ (6 ) $ — $ 83 Other expense (income) - net Cost of Interest (In millions) Revenues products sold expense Nine Months Ended September 30, 2020 Consolidated Statement of Earnings $ 46,377 $ 43,276 $ 179 270 Pre-tax gains (losses) on: Foreign Currency Contracts $ 54 $ (738 ) $ (13 ) $ — Commodity Contracts — 321 55 — Debt Conversion Option — — — (15 ) Total gain (loss) recognized in earnings $ 54 $ (417 ) $ 42 $ (15 ) $ (336 ) Nine Months Ended September 30, 2019 Consolidated Statement of Earnings $ 48,327 $ 45,349 $ (39 ) $ 307 Pre-tax gains (losses) on: Foreign Currency Contracts $ 15 $ (30 ) $ (22 ) $ — Commodity Contracts — 142 — — Total gain (loss) recognized in earnings $ 15 $ 112 $ (22 ) $ — $ 105 Changes in the market value of inventories of certain merchandisable agricultural product inventories, forward cash purchase and sales contracts, exchange-traded futures and exchange-traded and OTC options contracts are recognized in earnings immediately as a component of cost of products sold. Derivatives Designated as Cash Flow, Fair Value or Net Investment Hedging Strategies The Company had certain derivatives designated as cash flow and net investment hedges as of September 30, 2020 and cash flow, fair value, and net investment hedges as of December 31, 2019 . For derivative instruments that were designated and qualify as fair value hedges, changes in the fair value of the hedging instrument and changes in the fair value of the hedged item were recognized in the consolidated statement of earnings during the period. The Company used interest rate swaps designated as fair value hedges to protect the fair value of $495 million in fixed-rate debt due to changes in interest rates. The terms of the interest rate swaps matched the terms of the underlying debt. At December 31, 2019 , the Company had $3 million in other current assets representing the fair value of the interest rate swaps and a corresponding increase in the underlying debt for the same amount with no net impact to earnings. In June 2020, the Company redeemed the debt and recorded a gain of $8 million from the termination of the swaps. For derivative instruments that are designated and qualify as net investment hedges, foreign exchange gains and losses related to changes in foreign currency exchange rates are deferred in AOCI until the underlying investment is divested. The Company uses cross-currency swaps and foreign exchange forwards designated as net investment hedges to protect the Company’s investment in a foreign subsidiary against changes in foreign currency exchange rates. The Company executed USD-fixed to Euro-fixed cross-currency swaps with an aggregate notional amount of $1.3 billion and $1.2 billion as of September 30, 2020 and December 31, 2019 , respectively, and foreign exchange forwards with an aggregate notional amount of $1.8 billion as of September 30, 2020 . As of September 30, 2020 and December 31, 2019 , the Company had after-tax losses of $80 million and after-tax gains of $6 million in AOCI, respectively, related to foreign exchange gains and losses from these net investment hedge transactions. The amount is deferred in AOCI until the underlying investment is divested. For derivative instruments that are designated and qualify as highly-effective cash flow hedges (i.e., hedging the exposure to variability in expected future cash flow that is attributable to a particular risk), the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive income (loss) (AOCI) and as an operating activity in the statement of cash flows and reclassified into earnings in the same line item affected by the hedged transaction and in the same period or periods during which the hedged transaction affects earnings. Hedge components excluded from the assessment of effectiveness and gains and losses related to discontinued hedges are recognized in the consolidated statement of earnings during the current period. The Company uses interest rate swaps designated as cash flow hedges to hedge the forecasted interest payments on certain letters of credit from banks. The terms of the interest rate swaps match the terms of the forecasted interest payments. The deferred gains and losses are recognized in other (income) expense - net over the period in which the related interest payments are paid to the banks. The Company also uses swap locks designated as cash flow hedges to hedge the changes in the forecasted interest payments due to changes in the benchmark rate leading up to future bond issuance dates. The terms of the swap locks match the terms of the forecasted interest payments. The deferred gains and losses will be recognized in interest expense over the period in which the related interest payments will be paid. During the nine months ended September 30, 2020 , the Company executed swap locks maturing on various dates with an aggregate notional amount of $550 million . As of September 30, 2020 and December 31, 2019 , the Company had after-tax losses of $8 million and $43 million in AOCI, respectively, related to the interest rate swaps and the swap locks. The Company expects to recognize this amount in its consolidated statements of earnings during the life of the instruments. For each of the hedge programs described below, the derivatives are designated as cash flow hedges. The changes in the market value of such derivative contracts have historically been, and are expected to continue to be, highly effective at offsetting changes in price movements of the hedged item. Once the hedged item is recognized in earnings, the gains and losses arising from the hedge are reclassified from AOCI to either revenues or cost of products sold, as applicable. As of September 30, 2020 and December 31, 2019 , the Company had after-tax losses of $41 million and $5 million in AOCI, respectively, related to gains and losses from these programs. The Company expects to recognize $41 million of the September 30, 2020 after-tax losses in its consolidated statements of earnings during the next 12 months . The Company uses futures or options contracts to hedge the purchase price of anticipated volumes of corn to be purchased and processed in a future month. The objective of this hedging program is to reduce the variability of cash flows associated with the Company’s forecasted purchases of corn. The Company’s corn processing plants normally grind approximately 72 million bushels of corn per month. Due to the temporarily idled dry mill assets, the Company is currently grinding approximately 56 million bushels of corn per month. During the past 12 months, the Company hedged between 20% and 60% of its monthly grind. At September 30, 2020 , the Company had designated hedges representing between 11% and 34% of its anticipated monthly grind of corn for the next 12 months . The Company, from time to time, also uses futures, options, and swaps to hedge the sales price of certain ethanol sales contracts. The Company has established hedging programs for ethanol sales contracts that are indexed to unleaded gasoline prices and to various exchange-traded ethanol contracts. The objective of these hedging programs is to reduce the variability of cash flows associated with the Company’s sales of ethanol. During the past 12 months, the Company hedged between 0 and 91 million gallons of ethanol sales per month under these programs. The Company had no hedges related to ethanol sales as of September 30, 2020 . The Company uses futures and options contracts to hedge the purchase price of anticipated volumes of soybeans to be purchased and processed in a future month for certain of its U.S. soybean crush facilities. The Company also uses futures or options contracts to hedge the sales prices of anticipated soybean meal and soybean oil sales proportionate to the soybean crushing process at these facilities. During the past 12 months, the Company hedged between 52% and 100% of the anticipated monthly soybean crush for soybean purchases and soybean meal and oil sales at the designated facilities. At September 30, 2020 , the Company had designated hedges representing between 0% and 100% of the anticipated monthly soybean crush for soybean purchases and soybean meal and oil sales at the designated facilities over the next 12 months . The following table sets forth the fair value of derivatives designated as hedging instruments as of September 30, 2020 and December 31, 2019 . September 30, 2020 December 31, 2019 Assets Liabilities Assets Liabilities (In millions) Foreign Currency Contracts $ 16 $ — $ 13 $ 5 Interest Rate Contracts 32 34 3 43 Total $ 48 $ 34 $ 16 $ 48 The following table sets forth the pre-tax gains (losses) on derivatives designated as hedging instruments that have been included in the consolidated statements of earnings for the three and nine months ended September 30, 2020 and 2019 . Cost of products sold Interest expense Other expense (income) - net (In millions) Revenues Three Months Ended September 30, 2020 Consolidated Statement of Earnings $ 15,126 $ 14,084 $ 100 $ 278 Effective amounts recognized in earnings Pre-tax gains (losses) on: Commodity Contracts $ 1 $ 79 $ — $ — Interest Contracts — — — (14 ) Total gain (loss) recognized in earnings $ 1 $ 79 $ — $ (14 ) $ 66 Three Months Ended September 30, 2019 Consolidated Statement of Earnings $ 16,726 $ 15,648 $ 97 $ (18 ) Effective amounts recognized in earnings Pre-tax gains (losses) on: Commodity Contracts $ 3 $ 1 $ — $ — Interest Contracts — — — (21 ) Total gain (loss) recognized in earnings $ 3 $ 1 $ — $ (21 ) $ (17 ) Cost of products sold Interest expense Other expense (income) - net (In millions) Revenues Nine Months Ended September 30, 2020 Consolidated Statement of Earnings $ 46,377 $ 43,276 $ 270 $ 179 Effective amounts recognized in earnings Pre-tax gains (losses) on: Commodity Contracts $ 9 $ 19 $ — $ — Interest Contracts — — (8 ) (55 ) Total gain (loss) recognized in earnings $ 9 $ 19 $ (8 ) $ (55 ) $ (35 ) Nine Months Ended September 30, 2019 Consolidated Statement of Earnings $ 48,327 $ 45,349 $ 307 $ (39 ) Effective amounts recognized in earnings Pre-tax gains (losses) on: Commodity Contracts $ (5 ) $ 7 $ — $ — Interest Contracts — — — (29 ) Total gain (loss) recognized in earnings $ (5 ) $ 7 $ — $ (29 ) $ (27 ) Other Net Investment Hedging Strategies The Company has designated €1.5 billion and €1.7 billion of its outstanding long-term debt and commercial paper borrowings at September 30, 2020 and December 31, 2019 , respectively, as hedges of its net investment in a foreign subsidiary. As of September 30, 2020 and December 31, 2019 , the Company had after-tax losses of $29 million and after-tax gains of $7 million in AOCI, respectively, related to foreign exchange gains and losses from these net investment hedge transactions. The amount is deferred in AOCI until the underlying investment is divested. |
Other Current Assets
Other Current Assets | 9 Months Ended |
Sep. 30, 2020 | |
Other Assets [Abstract] | |
Other Current Assets | Other Current Assets The following table sets forth the items in other current assets: September 30, December 31, 2020 2019 (In millions) Unrealized gains on derivative contracts $ 1,798 $ 619 Deferred receivables consideration 272 446 Customer omnibus receivable 888 1,014 Financing receivables - net (1) 331 395 Insurance premiums receivable 25 41 Prepaid expenses 308 318 Biodiesel tax credit 89 541 Tax receivables 665 579 Non-trade receivables (2) 296 369 Other current assets 284 278 $ 4,956 $ 4,600 (1) The Company provides financing to certain suppliers, primarily Brazilian farmers, to finance a portion of the suppliers’ production costs. The amounts are reported net of allowances of $4 million and $3 million at September 30, 2020 and December 31, 2019 , respectively. Interest earned on financing receivables of $4 million and $15 million for the three and nine months ended September 30, 2020 , respectively, and $5 million and $19 million for the three and nine months ended September 30, 2019 , respectively, is included in interest income in the consolidated statements of earnings. (2) Non-trade receivables included $77 million and $81 million of reinsurance recoverables as of September 30, 2020 and December 31, 2019 , respectively. |
Accrued Expenses And Other Paya
Accrued Expenses And Other Payables | 9 Months Ended |
Sep. 30, 2020 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Accrued Expenses And Other Payables | The following table sets forth the items in accrued expenses and other payables: September 30, December 31, 2020 2019 (In millions) Unrealized losses on derivative contracts $ 1,969 $ 742 Accrued compensation 349 300 Income tax payable 61 72 Other taxes payable 120 120 Biodiesel tax credit payable 17 332 Insurance claims payable 277 284 Contract liability 344 604 Current maturities - operating leases 251 215 Other accruals and payables 892 1,088 $ 4,280 $ 3,757 |
Debt And Financing Arrangements
Debt And Financing Arrangements | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt And Financing Arrangements | Debt and Financing Arrangements On March 27, 2020 , the Company issued $0.5 billion and $1.0 billion aggregate principal amounts of 2.75% Notes due in 2025 and 3.25% Notes due in 2030, respectively. Net proceeds before expenses for the 2.75% and 3.25% Notes were $492 million and $988 million , respectively. During the second half of 2020, the global credit market stabilized with corporate credit spreads below pre-pandemic levels. Continued actions by central banks provided additional support in both the short-term and long-term funding markets further stabilizing corporate credit markets. Low benchmark yields and favorable credit spreads coupled with continued strong cash flow generation during the second half of the year presented opportunities for ADM to re-balance the company’s liability portfolio to pre-pandemic levels. Starting in June 2020, ADM began a series of liability management transactions including multiple early debt redemptions and the $0.7 billion debt tender in September 2020 to capitalize on all-time low interest rates: In June 2020, the Company redeemed $495 million aggregate principal amount of 4.479% debentures due in 2021 and recognized a debt extinguishment charge of $14 million in the nine months ended September 30, 2020. In September 2020, the Company redeemed $400 million aggregate principal amount of 3.375% notes due in 2022 and recognized a debt extinguishment charge of $19 million in the quarter ended September 30, 2020. In September 2020, the Company repurchased $665 million aggregate principal amount of certain of its outstanding notes and debentures (the “Debentures”) validly tendered and not withdrawn. Pursuant to the terms of its cash tender offers, the Company paid aggregate total consideration of $933 million for the Debentures accepted for repurchase. The cash tender offers were partially financed by the proceeds of the exchangeable bonds issued by the Company's wholly-owned subsidiary, ADM Ag Holding Limited (“ADM Ag”), on August 26, 2020 as discussed below. The Company recognized a debt extinguishment charge of $374 million in the quarter ended September 30, 2020 which consisted of make-whole premiums and the write-off of debt issuance costs. In September 2020, the Company’s wholly-owned subsidiary, ADM Germany GmbH, redeemed $100 million aggregate principal amount of private placement notes due in 2021 and 2024 and recognized a debt extinguishment charge of $3 million in the quarter ended September 30, 2020. On August 26, 2020 , ADM Ag issued $300 million aggregate principal amount of zero coupon exchangeable bonds (the “Bonds”) due in 2023 to non-U.S. persons outside of the U.S. Subject to and upon compliance with the terms and conditions of the Bonds and any conditions, procedures, and certifications prescribed thereunder, the Bonds will be exchangeable for ordinary shares of Wilmar International Limited (“Wilmar”) currently held by the Company’s consolidated subsidiaries. Effective October 6, 2020, holders of the Bonds will be entitled to receive 50,597.0453 Wilmar shares (the “Exchange Property per Bond”) for each $200,000 principal amount of the Bonds, on the exercise of their exchange rights, subject to dividend adjustments. Effective February 26, 2022, ADM Ag has the option to call the outstanding Bonds at their principal amount if the value of the Exchange Property per Bond exceeds 120% of the principal amount for 20 consecutive trading days. The Company accounts for the Bond’s exchange feature as an equity-linked embedded derivative that is not clearly and closely related to the host debt instrument since it is indexed to Wilmar’s stock. As such, it does not qualify for the scope exception in ASC Topic 815, Derivatives and Hedging and is bifurcated and measured at fair value with changes in fair value recognized as interest expense. The fair value of the embedded derivative included in long-term debt as of September 30, 2020 was $32 million , valued with the assistance of a third-party pricing service (a level 3 measurement under applicable accounting standards). The Company unconditionally and irrevocably guarantees the payment of all sums payable and the performance of all of ADM Ag’s other obligations under the Bonds. In contemplation of the issuance of the Bonds, the Company's wholly-owned subsidiary, Archer Daniels Midland Asia-Pacific Limited, that holds shares in Wilmar, entered into a stock borrowing and lending agreement with Goldman Sachs International. At September 30, 2020 , the fair value of the Company’s long-term debt exceeded the carrying value by $2.2 billion , as estimated using quoted market prices (a Level 2 measurement under applicable accounting standards). At September 30, 2020 , the Company had lines of credit, including the accounts receivable securitization programs described below, totaling $10.7 billion , of which $9.1 billion was unused. 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 no commercial paper outstanding at September 30, 2020 . The Company has accounts receivable securitization programs (the “Programs”). The Programs provide the Company with up to $1.8 billion in funding resulting from the sale of accounts receivable, of which $0.4 billion was unused as of September 30, 2020 (see Note 16 for more information about the Programs). |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rates were a benefit of 13.0% and an expense of 3.4% for the three and nine months ended September 30, 2020 , respectively, compared to an expense of 18.9% and 19.4% for the three and nine months ended September 30, 2019 , respectively. The change in rates for the three and nine months was due to a shift in the geographical mix of forecasted pretax earnings and significant transactions that occurred during the quarter, including the early debt retirement and the tax-free sale of a portion of the Company's shares in Wilmar, which resulted in a significant decrease in the previously forecasted 2020 effective tax rate. The change in rates was also due to the impact of U.S. tax credits signed into law in December 2019, including a $73 million discrete tax benefit related to 45G railroad tax credits recognized in the quarter ended March 31, 2020. The 45G railroad tax credits have an offsetting expense in cost of products sold. In March 2020, the Coronavirus Aid Relief and Economic Security Act (CARES Act) was signed into law in the United States. The Company continues to assess the effects of the provisions of the CARES Act and does not expect any income tax effects to have a material impact on the annual effective tax rate for the year ending December 31, 2020. The Company also continues to evaluate the effects of COVID-19 on its ability to indefinitely reinvest foreign earnings and does not expect any change in its assertion to have a material impact on the annual effective tax rate for the year ending December 31, 2020. The Company is subject to income taxation and routine examinations in many jurisdictions around the world and frequently faces challenges regarding the amount of taxes due. These challenges include positions taken by the Company related to the timing, nature and amount of deductions and the allocation of income among various tax jurisdictions. In its routine evaluations of the exposure associated with various tax filing positions, the Company recognizes a liability, when necessary, for estimated potential tax owed by the Company in accordance with applicable accounting standards. Resolution of the related tax positions, through negotiations with relevant tax authorities or through litigation, may take years to complete. Therefore, it is difficult to predict the timing for resolution of tax positions and the Company cannot predict or provide assurance as to the ultimate outcome of these ongoing or future examinations. However, the Company does not anticipate that the total amount of unrecognized tax benefits will increase or decrease significantly in the next twelve months. Given the long periods of time involved in resolving tax positions, the Company does not expect that the recognition of unrecognized tax benefits will have a material impact on the Company’s effective income tax rate in any given period. The Company’s subsidiary in Argentina, ADM Agro SRL (formerly ADM Argentina SA and Alfred C. Toepfer Argentina SRL), received tax assessments challenging transfer prices used to price grain exports for the tax years 1999 through 2011. As of September 30, 2020 , these assessments totaled $11 million in tax and $44 million in interest (adjusted for variation in currency exchange rates). The Argentine tax authorities conducted a review of income and other taxes paid by large exporters and processors of cereals and other agricultural commodities resulting in allegations of income tax evasion. The Company believes that it has complied with all Argentine tax laws. To date, the Company has not received assessments for closed years subsequent to 2011. While the statute of limitations has expired for tax years 2012 and 2013, the Company cannot rule out receiving additional assessments challenging transfer prices used to price grain exports for years subsequent to 2013, and estimates that these potential assessments could be approximately $34 million in tax and $25 million in interest (adjusted for variation in currency exchange rates as of September 30, 2020 ). The Company believes that it has appropriately evaluated the transactions underlying these assessments, and has concluded, based on Argentine tax law, that its tax position would be sustained, and accordingly, has not recorded a tax liability for these assessments. In accordance with the accounting requirements for uncertain tax positions, the Company has not recorded an uncertain tax liability for this assessment because it has concluded that it is more likely than not to prevail on the matter based upon its technical merits and because the taxing jurisdiction’s process does not provide a mechanism for settling at less than the full amount of the assessment. The Company intends to vigorously defend its position against the current assessments and any similar assessments that may be issued for years subsequent to 2013. In 2014, the Company’s wholly-owned subsidiary in the Netherlands, ADM Europe B.V., received a tax assessment from the Netherlands tax authority challenging the transfer pricing aspects of a 2009 business reorganization, which involved two of its subsidiary companies in the Netherlands. As of September 30, 2020 , this assessment was $95 million in tax and $38 million in interest (adjusted for variation in currency exchange rates). In September 2019, the Company received an interim decision on its appeal which directed the parties to work toward a settlement. On April 23, 2020, the court issued an unfavorable ruling and in October 2020, assigned a third party expert to establish a valuation by early 2021. Subsequent appeals may take an extended period of time and could result in additional financial impacts of up to the entire amount of the assessment. The Company has carefully evaluated the underlying transactions and has concluded that the amount of gain recognized on the reorganization for tax purposes was appropriate. As of September 30, 2020, the Company has accrued its best estimate of what it believes will be the likely outcome of the litigation and will vigorously defend its position against the assessment. During the quarter ended June 30, 2020, the ongoing litigation between the Company’s wholly-owned subsidiary, ADM do Brasil Ltda. and the Brazilian Federal Revenue Service |
Leases Leases (Notes)
Leases Leases (Notes) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | Accounting The Company leases certain transportation equipment, plant equipment, office equipment, land, buildings, and storage facilities. Most leases include options to renew, with renewal terms that can extend the lease term from 10 months to 49 years. Certain leases also include index and non-index escalation clauses and options to purchase the leased property. Leases accounted for as finance leases were immaterial at September 30, 2020 . As an accounting policy election, the Company does not apply the recognition requirements of Topic 842 to short-term leases in all of its underlying asset categories. The Company recognizes short-term lease payments in earnings on a straight-line basis over the lease term, and variable lease payments in the period in which the obligation for those payments is incurred. The following table sets forth the amounts relating to the Company’s total lease cost and other information. Three Months Ended Nine Months Ended Sep 30, 2020 Sep 30, 2019 Sep 30, 2020 Sep 30, 2019 (In millions) Lease cost: Operating lease cost $ 84 $ 51 $ 231 $ 197 Short-term lease cost 19 24 73 71 Total lease cost $ 103 $ 75 $ 304 $ 268 Other information: Operating lease liability principal payments $ 222 $ 149 Right-of-use assets obtained in exchange for new operating lease liabilities $ 244 $ 192 Sep 30, 2020 Dec 31, 2019 Weighted-average remaining lease term - operating leases (in years) 7 7 Weighted average discount rate - operating leases 4.3 % 4.6 % Below is a tabular disclosure of the future annual undiscounted cash flows for operating lease liabilities. Undiscounted Cash Flows (In millions) Remainder of 2020 $ 76 2021 284 2022 252 2023 204 2024 144 2025 83 Thereafter 250 Total 1,293 Less interest (1) (180 ) Lease liability $ 1,113 (1) Calculated using the implicit rate of the lease, if available, or the incremental borrowing rate that is appropriate for the tenor and geography of the lease. As of September 30, 2020 and December 31, 2019, the Company had right-of-use assets included in Other assets of $1.1 billion and $1.0 billion , respectively, current lease liabilities included in Accrued expenses and other payables of $251 million and $215 million , respectively, and non-current lease liabilities included in Other long-term liabilities of $862 million and $781 million , respectively, in its consolidated balance sheets. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (AOCI) | 9 Months Ended |
Sep. 30, 2020 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Income (AOCI) | Accumulated Other Comprehensive Income The following tables set forth the changes in AOCI by component for the three and nine months ended September 30, 2020 and the reclassifications out of AOCI for the three and nine months ended September 30, 2020 and 2019 : Three months ended September 30, 2020 Foreign Currency Translation Adjustment Deferred Gain (Loss) on Hedging Activities Pension Liability Adjustment Unrealized Gain (Loss) on Investments Total (In millions) Balance at June 30, 2020 $ (2,445 ) $ (14 ) $ (275 ) $ 29 $ (2,705 ) Other comprehensive income (loss) before reclassifications (155 ) 178 (5 ) (28 ) (10 ) Amounts reclassified from AOCI — (66 ) — — (66 ) Tax effect 51 (22 ) 3 — 32 Net of tax amount (104 ) 90 (2 ) (28 ) (44 ) Balance at September 30, 2020 $ (2,549 ) $ 76 $ (277 ) $ 1 $ (2,749 ) Nine months ended September 30, 2020 Foreign Currency Translation Adjustment Deferred Gain (Loss) on Hedging Activities Pension Liability Adjustment Unrealized Gain (Loss) on Investments Total (In millions) Balance at December 31, 2019 $ (2,152 ) $ (12 ) $ (268 ) $ 27 $ (2,405 ) Other comprehensive income (loss) before reclassifications (434 ) 76 (5 ) (25 ) (388 ) Amounts reclassified from AOCI — 35 5 — 40 Tax effect 37 (23 ) (9 ) (1 ) 4 Net of tax amount (397 ) 88 (9 ) (26 ) (344 ) Balance at September 30, 2020 $ (2,549 ) $ 76 $ (277 ) $ 1 $ (2,749 ) Amount reclassified from AOCI Three months ended September 30, Nine months ended September 30, Affected line item in the consolidated statements of earnings Details about AOCI components 2020 2019 2020 2019 (In millions) Foreign currency translation adjustment $ — $ — $ — $ (1 ) Other (income) expense-net — — — — Tax $ — $ — $ — $ (1 ) Net of tax Deferred loss (gain) on hedging activities $ (1 ) $ (3 ) $ (9 ) $ 5 Revenues (79 ) (1 ) (19 ) (7 ) Cost of products sold 14 21 55 29 Other (income) expense-net — — 8 — Interest expense (66 ) 17 35 27 Total before tax 19 4 5 — Tax $ (47 ) $ 21 $ 40 $ 27 Net of tax Pension liability adjustment Amortization of defined benefit pension items: Prior service credit $ (9 ) $ — $ (25 ) $ (13 ) Other (income) expense-net Actuarial losses 9 3 30 10 Other (income) expense-net — 3 5 (3 ) Total before tax 1 1 (10 ) 16 Tax $ 1 $ 4 $ (5 ) $ 13 Net of tax 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. |
Other (Income) Expense - Net
Other (Income) Expense - Net | 9 Months Ended |
Sep. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expense - Net | Other (Income) Expense - Net The following table sets forth the items in other (income) expense: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (In millions) Gains on sales of assets $ (68 ) $ (7 ) $ (132 ) $ (37 ) Early debt retirement charges 396 — 410 — Other – net (50 ) (11 ) (99 ) (2 ) Other (Income) Expense - Net $ 278 $ (18 ) $ 179 $ (39 ) Gains on sales of assets in the three months ended September 30, 2020 included gains related to the sale of a portion of the Company's shares in Wilmar, which decreased the Company’s ownership interest from 24.8% as of December 31, 2019 to 22.1% as of September 30, 2020, and net gains on the sale of certain other assets, and disposals of individually insignificant assets in the ordinary course of business. Gains on sales of assets in the nine months ended September 30, 2020 included gains on the sale of a portion of the Company's shares in Wilmar shares, an investment revaluation gain, net gains on the sale of certain assets, and disposals of individually insignificant assets in the ordinary course of business. Gains on sales of assets in the three months ended September 30, 2019 included gains on disposals of individually insignificant assets in the ordinary course of business. Gains on sales of assets in the nine months ended September 30, 2019 included gains on the sale of certain assets, step-up gains on equity investments, and gains on disposals of individually insignificant assets in the ordinary course of business. Early debt retirement charges in the three and nine months ended September 30, 2020 related to multiple early debt redemptions and the $0.7 billion debt tender in September 2020 (see Note 9 for more information). Other - net in the three and nine months ended September 30, 2020 included the non-service components of net pension benefit income of $7 million and $28 million , respectively, and other income. Other - net in the nine months ended September 30, 2020 also included loss provisions related to the Company’s futures commission and brokerage business and foreign exchange gains. Other - net in the three and nine months ended September 30, 2019 included the non-service components of net pension benefit income of $2 million and $10 million , respectively, and other income, partially offset by foreign exchange losses. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information As discussed in Note 1, prior period results have been reclassified to conform to the current period segment presentation. 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. The Ag Services and Oilseeds segment includes global activities related to the origination, merchandising, transportation, and storage of agricultural raw materials, and the crushing and further processing of oilseeds such as soybeans and soft seeds (cottonseed, sunflower seed, canola, rapeseed, and flaxseed) into vegetable oils and protein meals. Oilseeds products produced and marketed by the segment include ingredients for food, feed, energy, and industrial customers. Crude vegetable oils produced by the segment’s crushing activities are sold “as is” or are further processed by refining, blending, bleaching, and deodorizing into salad oils. Salad oils are sold “as is” or are further processed by hydrogenating and/or interesterifying into margarine, shortening, and other food products. Partially refined oils are used to produce biodiesel and glycols or are sold to other manufacturers for use in chemicals, paints, and other industrial products. Oilseed protein meals are principally sold to third parties to be used as ingredients in commercial livestock and poultry feeds. The Ag Services and Oilseeds segment is also a major supplier of peanuts, tree nuts, and peanut-derived ingredients to both the U.S. and export markets. In North America, cotton cellulose pulp is manufactured and sold to the chemical, paper, and other industrial markets. The Ag Services and Oilseeds segment's grain sourcing, handling, and transportation network (including barge, ocean-going vessel, truck, rail, and container freight services) provides reliable and efficient services to the Company's customers and agricultural processing operations. The Ag Services and Oilseeds segment also includes agricultural commodity and feed product import, export, and global distribution, and structured trade finance activities. This segment also includes the Company's share of the results of its equity investment in Wilmar and its share of the results of its Pacificor, Stratas Foods LLC, Edible Oils Limited, Olenex Sarl, and SoyVen joint ventures. In August 2020, the Company sold a portion of its shares in Wilmar, decreasing its ownership interest from 24.8% as of December 31, 2019 to 22.1% as of September 30, 2020. The Carbohydrate Solutions segment is engaged in corn and wheat wet and dry milling and other activities. The Carbohydrate Solutions segment converts corn and wheat into products and ingredients used in the food and beverage industry including sweeteners, corn and wheat starches, syrup, glucose, wheat flour, and dextrose. Dextrose and starch are used by the Carbohydrate Solutions segment as feedstocks for its bioproducts operations. By fermentation of dextrose, the Carbohydrate Solutions segment produces alcohol and other food and animal feed ingredients. Ethyl alcohol is produced by the Company for industrial use as ethanol or as beverage grade. Ethanol, in gasoline, increases octane and is used as an extender and oxygenate. Corn gluten feed and meal, as well as distillers’ grains, are produced for use as animal feed ingredients. Corn germ, a by-product of the wet milling process, is further processed into vegetable oil and protein meal. Other Carbohydrate Solutions products include citric acids which are used in various food and industrial products. This segment also includes the Company’s share of the results of its equity investments in Hungrana Ltd., Almidones Mexicanos S.A., Red Star Yeast Company, LLC, and Aston Foods and Food Ingredients. The Nutrition segment serves customer needs for food, beverages, health and wellness, and more. The segment engages in the manufacturing, sale, and distribution of a wide array of products from nature including plant-based proteins, natural flavor ingredients, flavor systems, natural colors, emulsifiers, soluble fiber, polyols, hydrocolloids, natural health and nutrition products including probiotics, prebiotics, enzymes, and botanical extracts, and other specialty food and feed ingredients. The Nutrition segment includes the activities related to the procurement, processing, and distribution of edible beans. The Nutrition segment also includes activities related to the processing and distribution of formula feeds and animal health and nutrition products and the manufacture of contract and private label pet treats and foods. In January 2020, ADM acquired Yerbalatina, a natural plant-based extracts and ingredients manufacturer. Other Business includes the Company’s financial business units related to futures commission and insurance activities. Intersegment sales have been recorded at amounts approximating market. 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 the impact of LIFO-related adjustments, unallocated corporate expenses, interest cost net of investment income, the equity results of early-stage start-up companies that ADM Ventures has investments in, and the Company’s share of the results of its equity investment in Compagnie Industrielle et Financiere des Produits Amylaces SA (Luxembourg) (CIP), which was sold in December 2019. Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2020 2019 2020 2019 Gross revenues Ag Services and Oilseeds $ 13,415 $ 14,440 $ 40,196 $ 41,041 Carbohydrate Solutions 2,335 3,018 7,102 8,472 Nutrition 1,481 1,481 4,471 4,322 Other Business 84 88 277 273 Intersegment elimination (2,189 ) (2,301 ) (5,669 ) (5,781 ) Total gross revenues $ 15,126 $ 16,726 $ 46,377 $ 48,327 Intersegment sales Ag Services and Oilseeds $ 1,888 $ 1,824 $ 4,849 $ 4,659 Carbohydrate Solutions 271 453 708 1,063 Nutrition 30 24 112 59 Total intersegment sales $ 2,189 $ 2,301 $ 5,669 $ 5,781 Revenues from external customers Ag Services and Oilseeds Ag Services $ 7,352 $ 8,246 $ 22,930 $ 23,653 Crushing 2,317 2,465 7,035 7,130 Refined Products and Other 1,858 1,905 5,382 5,599 Total Ag Services and Oilseeds 11,527 12,616 35,347 36,382 Carbohydrate Solutions Starches and Sweeteners 1,574 1,526 4,769 4,782 Vantage Corn Processors 490 1,039 1,625 2,627 Total Carbohydrate Solutions 2,064 2,565 6,394 7,409 Nutrition Human Nutrition 719 703 2,161 2,105 Animal Nutrition 732 754 2,198 2,158 Total Nutrition 1,451 1,457 4,359 4,263 Other Business 84 88 277 273 Total revenues from external customers $ 15,126 $ 16,726 $ 46,377 $ 48,327 Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2020 2019 2020 2019 Segment operating profit Ag Services and Oilseeds $ 436 $ 417 $ 1,271 $ 1,196 Carbohydrate Solutions 246 182 509 470 Nutrition 147 118 447 316 Other Business 20 47 69 72 Specified Items: Gains (losses) on sales of assets and businesses (1) 57 — 80 12 Impairment, restructuring, and settlement charges (2) (2 ) (6 ) (60 ) (52 ) Total segment operating profit 904 758 2,316 2,014 Corporate (704 ) (255 ) (1,189 ) (922 ) Earnings before income taxes $ 200 $ 503 $ 1,127 $ 1,092 (1) Current quarter and year-to-date gain consisted of a gain on the sale of a portion of the Company’s shares in Wilmar and certain other assets. Prior year-to-date gains consisted of a gain on the sale of certain assets and a step-up gain on an equity investment. (2) Current quarter and year-to-date charges related to the impairment of certain long-lived assets, restructuring, and a settlement. Prior quarter and year-to-date charges related to the impairment of certain long-lived assets and a settlement. |
Asset Impairment, Exit, and Res
Asset Impairment, Exit, and Restructuring Costs | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring, Settlement and Impairment Provisions [Abstract] | |
Asset Impairment, Exit, and Restructuring Costs | Asset Impairment, Exit, and Restructuring Costs Asset impairment, exit, and restructuring costs in the three months ended September 30, 2020 consisted of individually insignificant long-lived asset impairments of $3 million and restructuring charges of $1 million . Asset impairment, exit, and restructuring costs in the nine months ended September 30, 2020 consisted primarily of $50 million of impairments related to certain intangible and other long-lived assets and $11 million of restructuring charges. Asset impairment, exit, and restructuring costs in the three and nine months ended September 30, 2019 consisted of $6 million and $50 million , respectively, of impairments related to certain long-lived assets presented as specified items within segment operating profit and $47 million and $150 million , respectively, of restructuring and pension settlement and remeasurement charges in Corporate primarily related to early retirement and reorganization initiatives. The Company recorded a $35 million impairment related to a Company facility in the nine months ended September 30, 2019, based on the fair value of the asset determined using a third-party market participant’s offer to purchase the facility. In April 2020, the Company temporarily idled ethanol production at its corn dry mill facilities in Cedar Rapids, Iowa, and Columbus, Nebraska. During the quarter ended September 30, 2020, the Company performed an impairment assessment on its corn processing business, which includes all assets where ethanol is produced, and determined that no impairment was required based on the Company’s forecast of undiscounted cash flows. The Company currently expects that the idled facilities will be restarted as demand for ethanol improves within the next 12 months. |
Sale of Accounts Receivable
Sale of Accounts Receivable | 9 Months Ended |
Sep. 30, 2020 | |
Transfers and Servicing [Abstract] | |
Sale of Accounts Receivable | Sale of Accounts Receivable The Company has an accounts receivable securitization program (the “First Program”) with certain commercial paper conduit purchasers and committed purchasers (collectively, the “First Purchasers”). Under the First Program, certain U.S.-originated trade accounts receivable are sold to a wholly-owned bankruptcy-remote entity, ADM Receivables, LLC (“ADM Receivables”). ADM Receivables in turn transfers such purchased accounts receivable in their entirety to the First Purchasers pursuant to a receivables purchase agreement. In exchange for the transfer of the accounts receivable, ADM Receivables receives a cash payment of up to $1.2 billion and an additional amount upon the collection of the accounts receivable (deferred consideration). The First Program terminates on May 18, 2021, unless extended. The Company also has an accounts receivable securitization program (the “Second Program”) with certain commercial paper conduit purchasers and committed purchasers (collectively, the “Second Purchasers”). Under the Second Program, certain non-U.S.-originated trade accounts receivable are sold to a wholly-owned bankruptcy-remote entity, ADM Ireland Receivables Company (ADM Ireland Receivables). Prior to April 1, 2020, ADM Ireland Receivables transferred such purchased accounts receivable in their entirety to the Second Purchasers pursuant to a receivables purchase agreement. In exchange for the transfer of the accounts receivable, ADM Ireland Receivables received a cash payment up to a certain amount and an additional amount upon the collection of the accounts receivable (deferred consideration). On April 1, 2020, the Company restructured the Second Program from a deferred purchase price to a pledge structure. Under the new structure, ADM Ireland Receivables transfers a portion of the purchased accounts receivable together with an equally proportional security interest in all of its right, title, and interest in the remaining purchased accounts receivable to each of the Second Purchasers. In exchange, ADM Ireland Receivables receives a cash payment of up to $0.6 billion ( €0.5 billion ) for the accounts receivables transferred. The Second Program terminates on March 12, 2021, unless extended. Under the First and Second Programs (collectively, the “Programs”), ADM Receivables and ADM Ireland Receivables use the cash proceeds from the transfer of receivables to the First Purchasers and Second Purchasers (collectively, the “Purchasers”) and other consideration, as applicable, to finance the purchase of receivables from the Company and the ADM subsidiaries originating the receivables. The Company accounts for these transfers as sales. The Company has no retained interests in the transferred receivables, other than collection and administrative responsibilities and its right to the deferred consideration under the First Program. At September 30, 2020 and December 31, 2019 , the Company did not record a servicing asset or liability related to its retained responsibility, based on its assessment of the servicing fee, market values for similar transactions, and its cost of servicing the receivables sold. As of September 30, 2020 and December 31, 2019 , the fair value of trade receivables transferred to the Purchasers under the Programs and derecognized from the Company’s consolidated balance sheets was $1.7 billion and $1.9 billion , respectively. In exchange for the transfers as of September 30, 2020 and December 31, 2019 , the Company received cash of $1.4 billion and $1.4 billion , respectively, and recorded a receivable for deferred consideration included in other current assets of $0.3 billion and $0.4 billion , respectively. Cash collections from customers on receivables sold were $24.2 billion and $25.1 billion for the nine months ended September 30, 2020 and 2019 , respectively. Of this amount, $6.7 billion and $9.5 billion were cash collections on the deferred receivables consideration reflected as cash inflows from investing activities for the nine months ended September 30, 2020 and 2019 , respectively. Deferred receivables consideration is paid to the Company in cash on behalf of the First Purchasers as receivables are collected; however, as this is a revolving facility, cash collected from the Company’s customers is reinvested by the First Purchasers daily in new receivable purchases under the First Program. The Company’s risk of loss following the transfer of accounts receivable under the First Program is limited to the deferred receivables consideration outstanding. The Company carries the deferred receivables consideration at fair value determined by calculating the expected amount of cash to be received and is principally based on observable inputs (a Level 2 measurement under the applicable accounting standards) consisting mainly of the face amount of the receivables adjusted for anticipated credit losses and discounted at the appropriate market rate. Payment of deferred receivables consideration is not subject to significant risks other than delinquencies and credit losses on accounts receivable transferred under the First Program which have historically been insignificant. Transfers of receivables under the Programs resulted in an expense for the loss on sale of $2 million and $5 million for the three months ended September 30, 2020 and 2019 , respectively, and $7 million and $14 million for the nine months ended September 30, 2020 and 2019 , respectively, which is classified as selling, general, and administrative expenses in the consolidated statements of earnings. In accordance with the amended guidance of Topic 230, the Company reflects cash flows related to the deferred receivables consideration as investing activities in its consolidated statements of cash flows. All other cash flows are classified as operating activities because the cash received from the Purchasers upon both the sale and collection of the receivables is not subject to significant interest rate risk given the short-term nature of the Company’s trade receivables. On October 1, 2020, the Company restructured the First Program from a deferred purchase price to a pledge structure. Under the new structure, ADM Receivables transfers a portion of the purchased accounts receivable together with an equally proportional security interest in all of its right, title, and interest in the remaining purchased accounts receivable to each of the First Purchasers. In exchange, ADM Receivables receives a cash payment for the accounts receivables transferred. |
Revenues Revenues (Policies)
Revenues Revenues (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Revenues [Abstract] | |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition The Company principally generates revenue from merchandising and transporting agricultural commodities and manufactured products used as ingredients in food, feed, energy, and industrial products. Revenue is measured based on the consideration specified in the contract with a customer, and excludes any sales incentives and amounts collected on behalf of third parties. The Company follows a policy of recognizing revenue at a single point in time when it satisfies its performance obligation by transferring control over a product or service to a customer. The majority of the Company’s contracts with customers have one performance obligation and a contract duration of one year or less. The Company applies the practical expedient in paragraph 10-50-14 of ASC 606, Revenue from Contracts with Customers (Topic 606) and does not disclose information about remaining performance obligations that have original expected durations of one year or less. For transportation service contracts, the Company recognizes revenue over time as the barge, ocean-going vessel, truck, rail, or container freight moves towards its destination in accordance with the transfer of control guidance of Topic 606. The Company recognized revenue from transportation service contracts of $87 million and $310 million for the three and nine months ended September 30, 2020 , respectively, and $134 million and $377 million for the three and nine months ended September 30, 2019 , respectively. For physically settled derivative sales contracts that are outside the scope of Topic 606, the Company recognizes revenue when control of the inventory is transferred within the meaning of Topic 606 as required by ASC 610-20, Gains and Losses from the Derecognition of Nonfinancial Assets (Topic 610-20). Shipping and Handling Costs Shipping and handling costs related to contracts with customers for the sale of goods are accounted for as a fulfillment activity and are included in cost of products sold. Accordingly, amounts billed to customers for such costs are included as a component of revenues. Taxes Collected from Customers and Remitted to Governmental Authorities The Company does not include taxes assessed by governmental authorities that are (i) imposed on and concurrent with a specific revenue-producing transaction and (ii) collected from customers, in the measurement of transactions prices or as a component of revenues and cost of products sold. |
Leases Leases (Policies)
Leases Leases (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Lessee, Leases [Policy Text Block] | As an accounting policy election, the Company does not apply the recognition requirements of Topic 842 to short-term leases in all of its underlying asset categories. The Company recognizes short-term lease payments in earnings on a straight-line basis over the lease term, and variable lease payments in the period in which the obligation for those payments is incurred. |
Revenues Revenues (Tables)
Revenues Revenues (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenues [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Disaggregation of Revenues The following tables present revenue disaggregated by timing of recognition and major product lines for the three and nine months ended September 30, 2020 and 2019 . Three Months Ended September 30, 2020 Topic 606 Revenue Topic 815 (1) Total Point in Time Over Time Total Revenue Revenues (In millions) Ag Services and Oilseeds Ag Services $ 776 $ 87 $ 863 $ 6,489 $ 7,352 Crushing 113 — 113 2,204 2,317 Refined Products and Other 462 — 462 1,396 1,858 Total Ag Services and Oilseeds 1,351 87 1,438 10,089 11,527 Carbohydrate Solutions Starches and Sweeteners 1,162 — 1,162 412 1,574 Vantage Corn Processors 490 — 490 — 490 Total Carbohydrate Solutions 1,652 — 1,652 412 2,064 Nutrition Human Nutrition 719 — 719 — 719 Animal Nutrition 732 — 732 — 732 Total Nutrition 1,451 — 1,451 — 1,451 Other Business 84 — 84 — 84 Total Revenues $ 4,538 $ 87 $ 4,625 $ 10,501 $ 15,126 Nine Months Ended September 30, 2020 Topic 606 Revenue Topic 815 (1) Total Point in Time Over Time Total Revenue Revenues (In millions) Ag Services and Oilseeds Ag Services $ 2,504 $ 310 $ 2,814 $ 20,116 $ 22,930 Crushing 493 — 493 6,542 7,035 Refined Products and Other 1,501 — 1,501 3,881 5,382 Total Ag Services and Oilseeds 4,498 310 4,808 30,539 35,347 Carbohydrate Solutions Starches and Sweeteners 3,539 — 3,539 1,230 4,769 Vantage Corn Processors 1,625 — 1,625 — 1,625 Total Carbohydrate Solutions 5,164 — 5,164 1,230 6,394 Nutrition Human Nutrition 2,161 — 2,161 — 2,161 Animal Nutrition 2,198 — 2,198 — 2,198 Total Nutrition 4,359 — 4,359 — 4,359 Other Business 277 — 277 — 277 Total Revenues $ 14,298 $ 310 $ 14,608 $ 31,769 $ 46,377 Three Months Ended September 30, 2019 Topic 606 Revenue Topic 815 (1) Total Point in Time Over Time Total Revenue Revenues (In millions) Ag Services and Oilseeds Ag Services $ 1,369 $ 134 $ 1,503 $ 6,743 $ 8,246 Crushing 175 — 175 2,290 2,465 Refined Products and Other 628 — 628 1,277 1,905 Total Ag Services and Oilseeds 2,172 134 2,306 10,310 12,616 Carbohydrate Solutions Starches and Sweeteners 1,098 — 1,098 428 1,526 Vantage Corn Processors 1,039 — 1,039 — 1,039 Total Carbohydrate Solutions 2,137 — 2,137 428 2,565 Nutrition Human Nutrition 703 — 703 — 703 Animal Nutrition 754 — 754 — 754 Total Nutrition 1,457 — 1,457 — 1,457 Other Business 88 — 88 — 88 Total Revenues $ 5,854 $ 134 $ 5,988 $ 10,738 $ 16,726 Nine Months Ended September 30, 2019 Topic 606 Revenue Topic 815 (1) Total Point in Time Over Time Total Revenue Revenues (In millions) Ag Services and Oilseeds Ag Services $ 2,509 $ 377 $ 2,886 $ 20,767 $ 23,653 Crushing 546 — 546 6,584 7,130 Refined Products and Other 1,665 — 1,665 3,934 5,599 Total Ag Services and Oilseeds 4,720 377 5,097 31,285 36,382 Carbohydrate Solutions Starches and Sweeteners 3,507 — 3,507 1,275 4,782 Vantage Corn Processors 2,627 — 2,627 — 2,627 Total Carbohydrate Solutions 6,134 — 6,134 1,275 7,409 Nutrition Human Nutrition 2,105 — 2,105 — 2,105 Animal Nutrition 2,158 — 2,158 — 2,158 Total Nutrition 4,263 — 4,263 — 4,263 Other Business 273 — 273 — 273 Total Revenues $ 15,390 $ 377 $ 15,767 $ 32,560 $ 48,327 (1) Topic 815 revenue relates to the physical delivery or the settlement of the Company’s sales contracts that are accounted for as derivatives and are outside the scope of Topic 606. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following tables set forth, by level, the Company’s assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2020 and December 31, 2019 . Fair Value Measurements at September 30, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (In millions) Assets: Inventories carried at market $ — $ 3,572 $ 2,092 $ 5,664 Unrealized derivative gains: Commodity contracts — 894 580 1,474 Foreign currency contracts — 292 — 292 Interest rate contracts — 32 — 32 Cash equivalents 496 — — 496 Marketable securities 9 — — 9 Segregated investments 1,158 — — 1,158 Deferred receivables consideration — 272 — 272 Total Assets $ 1,663 $ 5,062 $ 2,672 $ 9,397 Liabilities: Unrealized derivative losses: Commodity contracts $ — $ 592 $ 796 $ 1,388 Foreign currency contracts — 547 — 547 Interest rate contracts — 34 — 34 Debt conversion option — — 32 32 Inventory-related payables — 482 7 489 Total Liabilities $ — $ 1,655 $ 835 $ 2,490 Fair Value Measurements at December 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (In millions) Assets: Inventories carried at market $ — $ 3,227 $ 1,477 $ 4,704 Unrealized derivative gains: Commodity contracts — 277 201 478 Foreign currency contracts — 138 — 138 Interest rate contracts — 3 — 3 Cash equivalents 505 — — 505 Marketable securities 5 — — 5 Segregated investments 628 — — 628 Deferred receivables consideration — 446 — 446 Total Assets $ 1,138 $ 4,091 $ 1,678 $ 6,907 Liabilities: Unrealized derivative losses: Commodity contracts $ — $ 375 $ 199 $ 574 Foreign currency contracts — 125 — 125 Interest rate contracts — 43 — 43 Inventory-related payables — 702 27 729 Total Liabilities $ — $ 1,245 $ 226 $ 1,471 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | * Includes increase in unrealized losses of $1.1 billion relating to Level 3 liabilities still held at September 30, 2020 . The following table presents a rollforward of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended September 30, 2019 . Level 3 Fair Value Asset Measurements at September 30, 2019 Inventories Carried at Market Commodity Derivative Contracts Gains Total Assets (In millions) Balance, December 31, 2018 $ 1,515 $ 155 $ 1,670 Total increase (decrease) in net realized/unrealized gains included in cost of products sold* 148 319 467 Purchases 8,118 — 8,118 Sales (8,425 ) — (8,425 ) Settlements — (346 ) (346 ) Transfers into Level 3 213 54 267 Transfers out of Level 3 (139 ) (21 ) (160 ) Ending balance, September 30, 2019 $ 1,430 $ 161 $ 1,591 Level 3 Fair Value Asset Measurements at September 30, 2020 Inventories Carried at Market Commodity Derivative Contracts Gains Total Assets (In millions) Balance, December 31, 2019 $ 1,477 $ 201 $ 1,678 Total increase (decrease) in net realized/unrealized gains included in cost of products sold* 626 732 1,358 Purchases 9,600 — 9,600 Sales (9,838 ) — (9,838 ) Settlements — (331 ) (331 ) Transfers into Level 3 290 57 347 Transfers out of Level 3 (63 ) (79 ) (142 ) Ending balance, September 30, 2020 $ 2,092 $ 580 $ 2,672 The following table presents a rollforward of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended September 30, 2020 . Level 3 Fair Value Asset Measurements at September 30, 2020 Inventories Carried at Market Commodity Derivative Contracts Gains Total Assets (In millions) Balance, June 30, 2020 $ 1,399 $ 442 $ 1,841 Total increase (decrease) in net realized/unrealized gains included in cost of products sold* 258 286 544 Purchases 3,181 — 3,181 Sales (2,703 ) — (2,703 ) Settlements — (96 ) (96 ) Transfers into Level 3 290 13 303 Transfers out of Level 3 (333 ) (65 ) (398 ) Ending balance, September 30, 2020 $ 2,092 $ 580 $ 2,672 * Includes increase in unrealized gains of $392 million relating to Level 3 assets still held at September 30, 2020 . The following table presents a rollforward of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended September 30, 2019 . Level 3 Fair Value Asset Measurements at September 30, 2019 Inventories Carried at Market Commodity Derivative Contracts Gains Total Assets (In millions) Balance, June 30, 2019 $ 1,388 $ 159 $ 1,547 Total increase (decrease) in net realized/unrealized gains included in cost of products sold* 27 91 118 Purchases 2,772 — 2,772 Sales (2,643 ) — (2,643 ) Settlements — (106 ) (106 ) Transfers into Level 3 213 21 234 Transfers out of Level 3 (327 ) (4 ) (331 ) Ending balance, September 30, 2019 $ 1,430 $ 161 $ 1,591 * Includes increase in unrealized gains of $165 million relating to Level 3 assets still held at September 30, 2019 . |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Level 3 Fair Value Liability Measurements at September 30, 2019 Inventory- related Payables Commodity Derivative Contracts Losses Total Liabilities (In millions) Balance, December 31, 2018 $ 18 $ 245 $ 263 Total increase (decrease) in net realized/unrealized losses included in cost of products sold* (2 ) 254 252 Purchases 41 — 41 Sales (16 ) — (16 ) Settlements — (354 ) (354 ) Transfers into Level 3 — 37 37 Transfers out of Level 3 — (42 ) (42 ) Ending balance, September 30, 2019 $ 41 $ 140 $ 181 * Includes increase in unrealized gains of $1.2 billion relating to Level 3 assets still held at September 30, 2020 . The following table presents a rollforward of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended September 30, 2020 . Level 3 Fair Value Liability Measurements at September 30, 2020 Inventory- related Payables Commodity Derivative Contracts Losses Debt Conversion Option Total Liabilities (In millions) Balance, December 31, 2019 $ 27 $ 199 $ — $ 226 Total increase (decrease) in net realized/unrealized losses included in cost of products sold and interest expense* 1 1,070 15 1,086 Purchases and issuance of debt conversion option 11 — 17 28 Sales (32 ) — (32 ) Settlements — (521 ) (521 ) Transfers into Level 3 — 79 79 Transfers out of Level 3 — (31 ) (31 ) Ending balance, September 30, 2020 $ 7 $ 796 $ 32 $ 835 The following table presents a rollforward of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended September 30, 2019 . Level 3 Fair Value Liability Measurements at September 30, 2019 Inventory- related Payables Commodity Derivative Contracts Losses Total Liabilities (In millions) Balance, June 30, 2019 $ 22 $ 216 $ 238 Total increase (decrease) in net realized/unrealized losses included in cost of products sold* (3 ) 82 79 Purchases 26 — 26 Sales (4 ) — (4 ) Settlements — (167 ) (167 ) Transfers into Level 3 — 13 13 Transfers out of Level 3 — (4 ) (4 ) Ending balance, September 30, 2019 $ 41 $ 140 $ 181 * Includes increase in unrealized losses of $81 million relating to Level 3 liabilities still held at September 30, 2019 . The following table presents a rollforward of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended September 30, 2020 . Level 3 Fair Value Liability Measurements at September 30, 2020 Inventory- related Payables Commodity Derivative Contracts Losses Debt Conversion Option Total Liabilities (In millions) Balance, June 30, 2020 $ 14 $ 363 $ — $ 377 Total increase (decrease) in net realized/unrealized losses included in cost of products sold and interest expense* (3 ) 618 15 630 Purchases and issuance of debt conversion option 3 — 17 20 Sales (7 ) — — (7 ) Settlements — (188 ) — (188 ) Transfers into Level 3 — 24 — 24 Transfers out of Level 3 — (21 ) — (21 ) Ending balance, September 30, 2020 $ 7 $ 796 $ 32 $ 835 * Includes increase in unrealized losses of $635 million relating to Level 3 liabilities still held at September 30, 2020 . |
Unobservable Price Components Present in the Level 3 Valuations of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table sets forth the weighted average percentage of the unobservable price components included in the Company’s Level 3 valuations as of September 30, 2020 and December 31, 2019 . The Company’s Level 3 measurements may include basis only, transportation cost only, or both price components. As an example, for Level 3 inventories with basis, the unobservable component as of September 30, 2020 is a weighted average 20.6% of the total price for assets and 56.4% of the total price for liabilities. Weighted Average % of Total Price September 30, 2020 December 31, 2019 Component Type Assets Liabilities Assets Liabilities Inventories and Related Payables Basis 20.6 % 56.4 % 28.2 % 14.7 % Transportation cost 15.8 % — % 24.7 % — % Commodity Derivative Contracts Basis 12.6 % 18.7 % 16.0 % 20.2 % Transportation cost 5.2 % 4.3 % 9.7 % 3.1 % |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block] | The following table sets forth the fair value of derivatives designated as hedging instruments as of September 30, 2020 and December 31, 2019 . September 30, 2020 December 31, 2019 Assets Liabilities Assets Liabilities (In millions) Foreign Currency Contracts $ 16 $ — $ 13 $ 5 Interest Rate Contracts 32 34 3 43 Total $ 48 $ 34 $ 16 $ 48 The following table sets forth the pre-tax gains (losses) on derivatives designated as hedging instruments that have been included in the consolidated statements of earnings for the three and nine months ended September 30, 2020 and 2019 . Cost of products sold Interest expense Other expense (income) - net (In millions) Revenues Three Months Ended September 30, 2020 Consolidated Statement of Earnings $ 15,126 $ 14,084 $ 100 $ 278 Effective amounts recognized in earnings Pre-tax gains (losses) on: Commodity Contracts $ 1 $ 79 $ — $ — Interest Contracts — — — (14 ) Total gain (loss) recognized in earnings $ 1 $ 79 $ — $ (14 ) $ 66 Three Months Ended September 30, 2019 Consolidated Statement of Earnings $ 16,726 $ 15,648 $ 97 $ (18 ) Effective amounts recognized in earnings Pre-tax gains (losses) on: Commodity Contracts $ 3 $ 1 $ — $ — Interest Contracts — — — (21 ) Total gain (loss) recognized in earnings $ 3 $ 1 $ — $ (21 ) $ (17 ) Cost of products sold Interest expense Other expense (income) - net (In millions) Revenues Nine Months Ended September 30, 2020 Consolidated Statement of Earnings $ 46,377 $ 43,276 $ 270 $ 179 Effective amounts recognized in earnings Pre-tax gains (losses) on: Commodity Contracts $ 9 $ 19 $ — $ — Interest Contracts — — (8 ) (55 ) Total gain (loss) recognized in earnings $ 9 $ 19 $ (8 ) $ (55 ) $ (35 ) Nine Months Ended September 30, 2019 Consolidated Statement of Earnings $ 48,327 $ 45,349 $ 307 $ (39 ) Effective amounts recognized in earnings Pre-tax gains (losses) on: Commodity Contracts $ (5 ) $ 7 $ — $ — Interest Contracts — — — (29 ) Total gain (loss) recognized in earnings $ (5 ) $ 7 $ — $ (29 ) $ (27 ) The following table sets forth the fair value of derivatives not designated as hedging instruments as of September 30, 2020 and December 31, 2019 . September 30, 2020 December 31, 2019 Assets Liabilities Assets Liabilities (In millions) Foreign Currency Contracts $ 276 $ 547 $ 125 $ 120 Commodity Contracts 1,474 1,388 478 574 Debt Conversion Option — 32 — — Total $ 1,750 $ 1,967 $ 603 $ 694 The following tables set forth the pre-tax gains (losses) on derivatives not designated as hedging instruments that have been included in the consolidated statements of earnings for the three and nine months ended September 30, 2020 and 2019 . Other expense (income) - net Cost of Interest (In millions) Revenues products sold expense Three Months Ended September 30, 2020 Consolidated Statement of Earnings $ 15,126 $ 14,084 $ 278 $ 100 Pre-tax gains (losses) on: Foreign Currency Contracts $ 8 $ (77 ) $ (85 ) $ — Commodity Contracts — (272 ) — — Debt Conversion Option — — — (15 ) Total gain (loss) recognized in earnings $ 8 $ (349 ) $ (85 ) $ (15 ) $ (441 ) Three Months Ended September 30, 2019 Consolidated Statement of Earnings $ 16,726 $ 15,648 $ (18 ) $ 97 Pre-tax gains (losses) on: Foreign Currency Contracts $ 17 $ (81 ) $ (6 ) $ — Commodity Contracts — 153 — — Total gain (loss) recognized in earnings $ 17 $ 72 $ (6 ) $ — $ 83 Other expense (income) - net Cost of Interest (In millions) Revenues products sold expense Nine Months Ended September 30, 2020 Consolidated Statement of Earnings $ 46,377 $ 43,276 $ 179 270 Pre-tax gains (losses) on: Foreign Currency Contracts $ 54 $ (738 ) $ (13 ) $ — Commodity Contracts — 321 55 — Debt Conversion Option — — — (15 ) Total gain (loss) recognized in earnings $ 54 $ (417 ) $ 42 $ (15 ) $ (336 ) Nine Months Ended September 30, 2019 Consolidated Statement of Earnings $ 48,327 $ 45,349 $ (39 ) $ 307 Pre-tax gains (losses) on: Foreign Currency Contracts $ 15 $ (30 ) $ (22 ) $ — Commodity Contracts — 142 — — Total gain (loss) recognized in earnings $ 15 $ 112 $ (22 ) $ — $ 105 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Assets [Abstract] | |
Other Current Assets | The following table sets forth the items in other current assets: September 30, December 31, 2020 2019 (In millions) Unrealized gains on derivative contracts $ 1,798 $ 619 Deferred receivables consideration 272 446 Customer omnibus receivable 888 1,014 Financing receivables - net (1) 331 395 Insurance premiums receivable 25 41 Prepaid expenses 308 318 Biodiesel tax credit 89 541 Tax receivables 665 579 Non-trade receivables (2) 296 369 Other current assets 284 278 $ 4,956 $ 4,600 (1) The Company provides financing to certain suppliers, primarily Brazilian farmers, to finance a portion of the suppliers’ production costs. The amounts are reported net of allowances of $4 million and $3 million at September 30, 2020 and December 31, 2019 , respectively. Interest earned on financing receivables of $4 million and $15 million for the three and nine months ended September 30, 2020 , respectively, and $5 million and $19 million for the three and nine months ended September 30, 2019 , respectively, is included in interest income in the consolidated statements of earnings. (2) Non-trade receivables included $77 million and $81 million of reinsurance recoverables as of September 30, 2020 and December 31, 2019 , respectively. |
Accrued Expenses And Other Pa_2
Accrued Expenses And Other Payables (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Accrued Expenses And Other Payables | Accrued Expenses and Other Payables The following table sets forth the items in accrued expenses and other payables: September 30, December 31, 2020 2019 (In millions) Unrealized losses on derivative contracts $ 1,969 $ 742 Accrued compensation 349 300 Income tax payable 61 72 Other taxes payable 120 120 Biodiesel tax credit payable 17 332 Insurance claims payable 277 284 Contract liability 344 604 Current maturities - operating leases 251 215 Other accruals and payables 892 1,088 $ 4,280 $ 3,757 |
Leases Leases (Tables)
Leases Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | the amounts relating to the Company’s total lease cost and other information. Three Months Ended Nine Months Ended Sep 30, 2020 Sep 30, 2019 Sep 30, 2020 Sep 30, 2019 (In millions) Lease cost: Operating lease cost $ 84 $ 51 $ 231 $ 197 Short-term lease cost 19 24 73 71 Total lease cost $ 103 $ 75 $ 304 $ 268 Other information: Operating lease liability principal payments $ 222 $ 149 Right-of-use assets obtained in exchange for new operating lease liabilities $ 244 $ 192 Sep 30, 2020 Dec 31, 2019 Weighted-average remaining lease term - operating leases (in years) 7 7 Weighted average discount rate - operating leases 4.3 % 4.6 % |
Lessee, Operating and Finance Leases, Liability Maturity [Table Text Block] | Below is a tabular disclosure of the future annual undiscounted cash flows for operating lease liabilities. Undiscounted Cash Flows (In millions) Remainder of 2020 $ 76 2021 284 2022 252 2023 204 2024 144 2025 83 Thereafter 250 Total 1,293 Less interest (1) (180 ) Lease liability $ 1,113 (1) Calculated using the implicit rate of the lease, if available, or the incremental borrowing rate that is appropriate for the tenor and geography of the lease. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (AOCI) (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following tables set forth the changes in AOCI by component for the three and nine months ended September 30, 2020 and the reclassifications out of AOCI for the three and nine months ended September 30, 2020 and 2019 : Three months ended September 30, 2020 Foreign Currency Translation Adjustment Deferred Gain (Loss) on Hedging Activities Pension Liability Adjustment Unrealized Gain (Loss) on Investments Total (In millions) Balance at June 30, 2020 $ (2,445 ) $ (14 ) $ (275 ) $ 29 $ (2,705 ) Other comprehensive income (loss) before reclassifications (155 ) 178 (5 ) (28 ) (10 ) Amounts reclassified from AOCI — (66 ) — — (66 ) Tax effect 51 (22 ) 3 — 32 Net of tax amount (104 ) 90 (2 ) (28 ) (44 ) Balance at September 30, 2020 $ (2,549 ) $ 76 $ (277 ) $ 1 $ (2,749 ) Nine months ended September 30, 2020 Foreign Currency Translation Adjustment Deferred Gain (Loss) on Hedging Activities Pension Liability Adjustment Unrealized Gain (Loss) on Investments Total (In millions) Balance at December 31, 2019 $ (2,152 ) $ (12 ) $ (268 ) $ 27 $ (2,405 ) Other comprehensive income (loss) before reclassifications (434 ) 76 (5 ) (25 ) (388 ) Amounts reclassified from AOCI — 35 5 — 40 Tax effect 37 (23 ) (9 ) (1 ) 4 Net of tax amount (397 ) 88 (9 ) (26 ) (344 ) Balance at September 30, 2020 $ (2,549 ) $ 76 $ (277 ) $ 1 $ (2,749 ) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Amount reclassified from AOCI Three months ended September 30, Nine months ended September 30, Affected line item in the consolidated statements of earnings Details about AOCI components 2020 2019 2020 2019 (In millions) Foreign currency translation adjustment $ — $ — $ — $ (1 ) Other (income) expense-net — — — — Tax $ — $ — $ — $ (1 ) Net of tax Deferred loss (gain) on hedging activities $ (1 ) $ (3 ) $ (9 ) $ 5 Revenues (79 ) (1 ) (19 ) (7 ) Cost of products sold 14 21 55 29 Other (income) expense-net — — 8 — Interest expense (66 ) 17 35 27 Total before tax 19 4 5 — Tax $ (47 ) $ 21 $ 40 $ 27 Net of tax Pension liability adjustment Amortization of defined benefit pension items: Prior service credit $ (9 ) $ — $ (25 ) $ (13 ) Other (income) expense-net Actuarial losses 9 3 30 10 Other (income) expense-net — 3 5 (3 ) Total before tax 1 1 (10 ) 16 Tax $ 1 $ 4 $ (5 ) $ 13 Net of tax |
Other (Income) Expense - Net (T
Other (Income) Expense - Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expense - Net | The following table sets forth the items in other (income) expense: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (In millions) Gains on sales of assets $ (68 ) $ (7 ) $ (132 ) $ (37 ) Early debt retirement charges 396 — 410 — Other – net (50 ) (11 ) (99 ) (2 ) Other (Income) Expense - Net $ 278 $ (18 ) $ 179 $ (39 ) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2020 2019 2020 2019 Gross revenues Ag Services and Oilseeds $ 13,415 $ 14,440 $ 40,196 $ 41,041 Carbohydrate Solutions 2,335 3,018 7,102 8,472 Nutrition 1,481 1,481 4,471 4,322 Other Business 84 88 277 273 Intersegment elimination (2,189 ) (2,301 ) (5,669 ) (5,781 ) Total gross revenues $ 15,126 $ 16,726 $ 46,377 $ 48,327 Intersegment sales Ag Services and Oilseeds $ 1,888 $ 1,824 $ 4,849 $ 4,659 Carbohydrate Solutions 271 453 708 1,063 Nutrition 30 24 112 59 Total intersegment sales $ 2,189 $ 2,301 $ 5,669 $ 5,781 Revenues from external customers Ag Services and Oilseeds Ag Services $ 7,352 $ 8,246 $ 22,930 $ 23,653 Crushing 2,317 2,465 7,035 7,130 Refined Products and Other 1,858 1,905 5,382 5,599 Total Ag Services and Oilseeds 11,527 12,616 35,347 36,382 Carbohydrate Solutions Starches and Sweeteners 1,574 1,526 4,769 4,782 Vantage Corn Processors 490 1,039 1,625 2,627 Total Carbohydrate Solutions 2,064 2,565 6,394 7,409 Nutrition Human Nutrition 719 703 2,161 2,105 Animal Nutrition 732 754 2,198 2,158 Total Nutrition 1,451 1,457 4,359 4,263 Other Business 84 88 277 273 Total revenues from external customers $ 15,126 $ 16,726 $ 46,377 $ 48,327 Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2020 2019 2020 2019 Segment operating profit Ag Services and Oilseeds $ 436 $ 417 $ 1,271 $ 1,196 Carbohydrate Solutions 246 182 509 470 Nutrition 147 118 447 316 Other Business 20 47 69 72 Specified Items: Gains (losses) on sales of assets and businesses (1) 57 — 80 12 Impairment, restructuring, and settlement charges (2) (2 ) (6 ) (60 ) (52 ) Total segment operating profit 904 758 2,316 2,014 Corporate (704 ) (255 ) (1,189 ) (922 ) Earnings before income taxes $ 200 $ 503 $ 1,127 $ 1,092 (1) Current quarter and year-to-date gain consisted of a gain on the sale of a portion of the Company’s shares in Wilmar and certain other assets. Prior year-to-date gains consisted of a gain on the sale of certain assets and a step-up gain on an equity investment. (2) Current quarter and year-to-date charges related to the impairment of certain long-lived assets, restructuring, and a settlement. Prior quarter and year-to-date charges related to the impairment of certain long-lived assets and a settlement. |
Basis of Presentation Basis of
Basis of Presentation Basis of Presentation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | $ 105 | $ 105 | $ 110 | |||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense | 7 | $ 3 | 32 | $ 10 | ||
Percentage of LIFO Inventory | 10.00% | |||||
Cost of Revenue | (14,084) | (15,648) | (43,276) | (45,349) | ||
Net Income (Loss) Attributable to Parent | $ 225 | $ 407 | $ 1,085 | $ 875 | ||
Earnings Per Share, Diluted | $ 0.40 | $ 0.72 | $ 1.93 | $ 1.55 | ||
Inventory, LIFO Reserve, Period Charge | $ 50 | $ 7 | ||||
Inventory, LIFO Reserve, Period Charge (Income), after tax | $ 38 | $ 5 | ||||
Inventory, LIFO Reserve, Period Charge (Income), per share | $ 0.07 | $ 0.01 | ||||
Change in Accounting Principle, Other [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cost of Revenue | $ 91 | |||||
Net Income (Loss) Attributable to Parent | $ 69 | |||||
Earnings Per Share, Diluted | $ 0.12 |
New Accounting Standards New Ac
New Accounting Standards New Accounting Standards (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ (19,341) | $ (19,311) | $ (19,225) | $ (18,895) | $ (18,979) | $ (18,996) |
Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 8 | |||||
Retained Earnings [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ (19,311) | $ (19,293) | $ (18,651) | $ (18,497) | $ (18,527) | |
Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 8 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 15,126 | $ 16,726 | $ 46,377 | $ 48,327 | |
Contract with Customer, Liability [Abstract] | |||||
Contract with Customer, Liability | 344 | 344 | $ 604 | ||
Change in Contract with Customer, Liability [Abstract] | |||||
Contract with Customer, Liability, Revenue Recognized | 121 | 193 | 742 | 519 | |
Ag Services and Oilseeds [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 11,527 | 12,616 | 35,347 | 36,382 | |
Ag Services [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 7,352 | 8,246 | 22,930 | 23,653 | |
Crushing [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,317 | 2,465 | 7,035 | 7,130 | |
Refined Products and Other [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,858 | 1,905 | 5,382 | 5,599 | |
Carbohydrate Solutions [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,064 | 2,565 | 6,394 | 7,409 | |
Starches and sweeteners [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,574 | 1,526 | 4,769 | 4,782 | |
VCP [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 490 | 1,039 | 1,625 | 2,627 | |
Nutrition [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,451 | 1,457 | 4,359 | 4,263 | |
Wild Flavors and Specialty Ingredients [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 719 | 703 | 2,161 | 2,105 | |
Animal Nutrition [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 732 | 754 | 2,198 | 2,158 | |
Other [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 84 | 88 | 277 | 273 | |
Non MTM Products and Services [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 4,625 | 5,988 | 14,608 | 15,767 | |
Non MTM Products and Services [Member] | Transferred at Point in Time [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 4,538 | 5,854 | 14,298 | 15,390 | |
Non MTM Products and Services [Member] | Transferred over Time [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 87 | 134 | 310 | 377 | |
Non MTM Products and Services [Member] | Ag Services and Oilseeds [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,438 | 2,306 | 4,808 | 5,097 | |
Non MTM Products and Services [Member] | Ag Services and Oilseeds [Member] | Transferred at Point in Time [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,351 | 2,172 | 4,498 | 4,720 | |
Non MTM Products and Services [Member] | Ag Services and Oilseeds [Member] | Transferred over Time [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 87 | 134 | 310 | 377 | |
Non MTM Products and Services [Member] | Ag Services [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 863 | 1,503 | 2,814 | 2,886 | |
Non MTM Products and Services [Member] | Ag Services [Member] | Transferred at Point in Time [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 776 | 1,369 | 2,504 | 2,509 | |
Non MTM Products and Services [Member] | Ag Services [Member] | Transferred over Time [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 87 | 134 | 310 | 377 | |
Non MTM Products and Services [Member] | Crushing [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 113 | 175 | 493 | 546 | |
Non MTM Products and Services [Member] | Crushing [Member] | Transferred at Point in Time [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 113 | 175 | 493 | 546 | |
Non MTM Products and Services [Member] | Refined Products and Other [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 462 | 628 | 1,501 | 1,665 | |
Non MTM Products and Services [Member] | Refined Products and Other [Member] | Transferred at Point in Time [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 462 | 628 | 1,501 | 1,665 | |
Non MTM Products and Services [Member] | Carbohydrate Solutions [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,652 | 2,137 | 5,164 | 6,134 | |
Non MTM Products and Services [Member] | Carbohydrate Solutions [Member] | Transferred at Point in Time [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,652 | 2,137 | 5,164 | 6,134 | |
Non MTM Products and Services [Member] | Starches and sweeteners [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,162 | 1,098 | 3,539 | 3,507 | |
Non MTM Products and Services [Member] | Starches and sweeteners [Member] | Transferred at Point in Time [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,162 | 1,098 | 3,539 | 3,507 | |
Non MTM Products and Services [Member] | VCP [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 490 | 1,039 | 1,625 | 2,627 | |
Non MTM Products and Services [Member] | VCP [Member] | Transferred at Point in Time [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 490 | 1,039 | 1,625 | 2,627 | |
Non MTM Products and Services [Member] | Nutrition [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,451 | 1,457 | 4,359 | 4,263 | |
Non MTM Products and Services [Member] | Nutrition [Member] | Transferred at Point in Time [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,451 | 1,457 | 4,359 | 4,263 | |
Non MTM Products and Services [Member] | Wild Flavors and Specialty Ingredients [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 719 | 703 | 2,161 | 2,105 | |
Non MTM Products and Services [Member] | Wild Flavors and Specialty Ingredients [Member] | Transferred at Point in Time [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 719 | 703 | 2,161 | 2,105 | |
Non MTM Products and Services [Member] | Animal Nutrition [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 732 | 754 | 2,198 | 2,158 | |
Non MTM Products and Services [Member] | Animal Nutrition [Member] | Transferred at Point in Time [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 732 | 754 | 2,198 | 2,158 | |
Non MTM Products and Services [Member] | Other [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 84 | 88 | 277 | 273 | |
Non MTM Products and Services [Member] | Other [Member] | Transferred at Point in Time [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 84 | 88 | 277 | 273 | |
Mark-to-Market Products [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 10,501 | 10,738 | 31,769 | 32,560 | |
Mark-to-Market Products [Member] | Ag Services and Oilseeds [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 10,089 | 10,310 | 30,539 | 31,285 | |
Mark-to-Market Products [Member] | Ag Services [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 6,489 | 6,743 | 20,116 | 20,767 | |
Mark-to-Market Products [Member] | Crushing [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,204 | 2,290 | 6,542 | 6,584 | |
Mark-to-Market Products [Member] | Refined Products and Other [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,396 | 1,277 | 3,881 | 3,934 | |
Mark-to-Market Products [Member] | Carbohydrate Solutions [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 412 | 428 | 1,230 | 1,275 | |
Mark-to-Market Products [Member] | Starches and sweeteners [Member] | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 412 | $ 428 | $ 1,230 | $ 1,275 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Aug. 26, 2020 | Dec. 31, 2019 | |
Fair Value Measurements [Line Items] | ||||||
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss) | $ (635) | $ (81) | $ (1,100) | $ (258) | ||
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss) | $ 392 | $ 165 | $ 1,200 | $ 656 | ||
Weighted Average [Member] | Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Inventory Related Payables [Member] | ||||||
Fair Value Measurements [Line Items] | ||||||
Basis | 56.40% | 56.40% | 14.70% | |||
Weighted Average [Member] | Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Inventories Carried At Market [Member] | ||||||
Fair Value Measurements [Line Items] | ||||||
Basis | 20.60% | 20.60% | 28.20% | |||
Bonds Zero Percent Due in 2023 [Member] | ||||||
Fair Value Measurements [Line Items] | ||||||
Debt Instrument, Face Amount | $ 300 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurements At Reporting Date) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Derivative Asset | $ 1,798 | $ 619 |
Deferred Receivables Consideration | 272 | 446 |
Liabilities: | ||
Derivative Liability | 1,969 | 742 |
Fair Value, Recurring [Member] | ||
Assets: | ||
Inventories carried at market | 5,664 | 4,704 |
Cash Equivalents, at Carrying Value | 496 | 505 |
Available-for-sale Securities, Fair Value Disclosure | 9 | 5 |
Restricted Investments, at Fair Value | 1,158 | 628 |
Deferred Receivables Consideration | 272 | 446 |
Total Assets | 9,397 | 6,907 |
Liabilities: | ||
Inventory-related payables | 489 | 729 |
Total Liabilities | 2,490 | 1,471 |
Fair Value, Recurring [Member] | Commodity Contracts [Member] | ||
Assets: | ||
Derivative Asset | 1,474 | 478 |
Liabilities: | ||
Derivative Liability | 1,388 | 574 |
Fair Value, Recurring [Member] | Foreign Exchange Contracts [Member] | ||
Assets: | ||
Derivative Asset | 292 | 138 |
Liabilities: | ||
Derivative Liability | 547 | 125 |
Fair Value, Recurring [Member] | Interest Rate Contracts [Member] | ||
Assets: | ||
Derivative Asset | 32 | 3 |
Liabilities: | ||
Derivative Liability | 34 | 43 |
Fair Value, Recurring [Member] | Embedded Derivative Financial Instruments [Member] | ||
Liabilities: | ||
Derivative Liability | 32 | |
Fair Value, Recurring [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ||
Assets: | ||
Inventories carried at market | 0 | 0 |
Cash Equivalents, at Carrying Value | 496 | 505 |
Available-for-sale Securities, Fair Value Disclosure | 9 | 5 |
Restricted Investments, at Fair Value | 1,158 | 628 |
Deferred Receivables Consideration | 0 | 0 |
Total Assets | 1,663 | 1,138 |
Liabilities: | ||
Inventory-related payables | 0 | 0 |
Total Liabilities | 0 | 0 |
Fair Value, Recurring [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Commodity Contracts [Member] | ||
Assets: | ||
Derivative Asset | 0 | 0 |
Liabilities: | ||
Derivative Liability | 0 | 0 |
Fair Value, Recurring [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Foreign Exchange Contracts [Member] | ||
Assets: | ||
Derivative Asset | 0 | 0 |
Liabilities: | ||
Derivative Liability | 0 | 0 |
Fair Value, Recurring [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Interest Rate Contracts [Member] | ||
Assets: | ||
Derivative Asset | 0 | 0 |
Liabilities: | ||
Derivative Liability | 0 | 0 |
Fair Value, Recurring [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Embedded Derivative Financial Instruments [Member] | ||
Liabilities: | ||
Derivative Liability | 0 | |
Fair Value, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Inventories carried at market | 3,572 | 3,227 |
Cash Equivalents, at Carrying Value | 0 | 0 |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Restricted Investments, at Fair Value | 0 | 0 |
Deferred Receivables Consideration | 272 | 446 |
Total Assets | 5,062 | 4,091 |
Liabilities: | ||
Inventory-related payables | 482 | 702 |
Total Liabilities | 1,655 | 1,245 |
Fair Value, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Commodity Contracts [Member] | ||
Assets: | ||
Derivative Asset | 894 | 277 |
Liabilities: | ||
Derivative Liability | 592 | 375 |
Fair Value, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Foreign Exchange Contracts [Member] | ||
Assets: | ||
Derivative Asset | 292 | 138 |
Liabilities: | ||
Derivative Liability | 547 | 125 |
Fair Value, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Contracts [Member] | ||
Assets: | ||
Derivative Asset | 32 | 3 |
Liabilities: | ||
Derivative Liability | 34 | 43 |
Fair Value, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Embedded Derivative Financial Instruments [Member] | ||
Liabilities: | ||
Derivative Liability | 0 | |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Inventories carried at market | 2,092 | 1,477 |
Cash Equivalents, at Carrying Value | 0 | 0 |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Restricted Investments, at Fair Value | 0 | 0 |
Deferred Receivables Consideration | 0 | 0 |
Total Assets | 2,672 | 1,678 |
Liabilities: | ||
Inventory-related payables | 7 | 27 |
Total Liabilities | 835 | 226 |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Commodity Contracts [Member] | ||
Assets: | ||
Derivative Asset | 580 | 201 |
Liabilities: | ||
Derivative Liability | 796 | 199 |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Foreign Exchange Contracts [Member] | ||
Assets: | ||
Derivative Asset | 0 | 0 |
Liabilities: | ||
Derivative Liability | 0 | 0 |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Interest Rate Contracts [Member] | ||
Assets: | ||
Derivative Asset | 0 | 0 |
Liabilities: | ||
Derivative Liability | 0 | $ 0 |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Embedded Derivative Financial Instruments [Member] | ||
Liabilities: | ||
Derivative Liability | $ 32 |
Fair Value Measurements (Reconc
Fair Value Measurements (Reconciliation Of Assets Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss) | $ 392 | $ 165 | $ 1,200 | $ 656 |
Significant Unobservable Inputs (Level 3) [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at beginning of period | 1,841 | 1,547 | 1,678 | 1,670 |
Total increase (decrease) in unrealized gains included in cost of products sold | 544 | 118 | 1,358 | 467 |
Purchases | 3,181 | 2,772 | 9,600 | 8,118 |
Sales | (2,703) | (2,643) | (9,838) | (8,425) |
Settlements | (96) | (106) | (331) | (346) |
Transfers into Level 3 | 303 | 234 | 347 | 267 |
Transfers out of Level 3 | (398) | (331) | (142) | (160) |
Balance at end of period | 2,672 | 1,591 | 2,672 | 1,591 |
Significant Unobservable Inputs (Level 3) [Member] | Inventories Carried At Market [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at beginning of period | 1,399 | 1,388 | 1,477 | 1,515 |
Total increase (decrease) in unrealized gains included in cost of products sold | 258 | 27 | 626 | 148 |
Purchases | 3,181 | 2,772 | 9,600 | 8,118 |
Sales | (2,703) | (2,643) | (9,838) | (8,425) |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 290 | 213 | 290 | 213 |
Transfers out of Level 3 | (333) | (327) | (63) | (139) |
Balance at end of period | 2,092 | 1,430 | 2,092 | 1,430 |
Significant Unobservable Inputs (Level 3) [Member] | Commodity Derivative Contracts Gains [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at beginning of period | 442 | 159 | 201 | 155 |
Total increase (decrease) in unrealized gains included in cost of products sold | 286 | 91 | 732 | 319 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | (96) | (106) | (331) | (346) |
Transfers into Level 3 | 13 | 21 | 57 | 54 |
Transfers out of Level 3 | (65) | (4) | (79) | (21) |
Balance at end of period | $ 580 | $ 161 | $ 580 | $ 161 |
Fair Value Measurements (Reco_2
Fair Value Measurements (Reconciliation Of Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss) | $ (635) | $ (81) | $ (1,100) | $ (258) |
Significant Unobservable Inputs (Level 3) [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at beginning of period | 377 | 238 | 226 | 263 |
Total increase (decrease) in unrealized losses included in cost of products sold | 630 | 79 | 1,086 | 252 |
Purchases | 20 | 26 | 28 | 41 |
Sales | (7) | (4) | (32) | (16) |
Settlements | (188) | (167) | (521) | (354) |
Transfers into Level 3 | 24 | 13 | 79 | 37 |
Transfers out of Level 3 | (21) | (4) | (31) | (42) |
Balance at end of period | 835 | 181 | 835 | 181 |
Significant Unobservable Inputs (Level 3) [Member] | Long-term Debt [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at beginning of period | 0 | 0 | ||
Total increase (decrease) in unrealized losses included in cost of products sold | 15 | 15 | ||
Purchases | 17 | 17 | ||
Balance at end of period | 32 | 32 | ||
Significant Unobservable Inputs (Level 3) [Member] | Inventory Related Payables [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at beginning of period | 14 | 22 | 27 | 18 |
Total increase (decrease) in unrealized losses included in cost of products sold | (3) | (3) | 1 | (2) |
Purchases | 3 | 26 | 11 | 41 |
Sales | (7) | (4) | (32) | (16) |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance at end of period | 7 | 41 | 7 | 41 |
Significant Unobservable Inputs (Level 3) [Member] | Commodity Derivative Contracts Losses [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at beginning of period | 363 | 216 | 199 | 245 |
Total increase (decrease) in unrealized losses included in cost of products sold | 618 | 82 | 1,070 | 254 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | (188) | (167) | (521) | (354) |
Transfers into Level 3 | 24 | 13 | 79 | 37 |
Transfers out of Level 3 | (21) | (4) | (31) | (42) |
Balance at end of period | $ 796 | $ 140 | $ 796 | $ 140 |
Fair Value Measurements (Unobse
Fair Value Measurements (Unobservable Inputs In Level 3 Valuations Of Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - Weighted Average [Member] - Significant Unobservable Inputs (Level 3) [Member] - Fair Value, Recurring [Member] | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Related Payables [Member] | ||
Unobservable inputs in Level 3 Valuations of Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | ||
Basis | 56.40% | 14.70% |
Transportation cost | 0.00% | 0.00% |
Commodity Derivative Contracts Losses [Member] | ||
Unobservable inputs in Level 3 Valuations of Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | ||
Basis | 18.70% | 20.20% |
Transportation cost | 4.30% | 3.10% |
Inventories Carried At Market [Member] | ||
Unobservable inputs in Level 3 Valuations of Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | ||
Basis | 20.60% | 28.20% |
Transportation cost | 15.80% | 24.70% |
Commodity Derivative Contracts Gains [Member] | ||
Unobservable inputs in Level 3 Valuations of Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | ||
Basis | 12.60% | 16.00% |
Transportation cost | 5.20% | 9.70% |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Narrative) (Details) bu in Millions, $ in Millions, € in Billions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020USD ($)galbu | Jun. 30, 2020USD ($) | Sep. 30, 2020EUR (€) | Dec. 31, 2019EUR (€) | Mar. 31, 2020bu | Dec. 31, 2019USD ($) | |
Derivative [Line Items] | ||||||
Proceeds from hedge termination | $ 8 | |||||
Unrealized gain (loss) on interest rate cash flow hedges, after-tax, AOCI | $ 8 | $ 43 | ||||
Corn processed per month (in bushels) | bu | 56 | 72 | ||||
Notional Amount of Nonderivative Instruments | € | € 1.5 | € 1.7 | ||||
Foreign Debt used in Net Investment Hedge, Net of Tax | $ 29 | 7 | ||||
Designated As Hedging Instrument [Member] | ||||||
Derivative [Line Items] | ||||||
Unrealized Gain (Loss) on Price Risk Cash Flow Hedges, after Tax, Accumulated Other Comprehensive Income | 41 | 5 | ||||
Interest Rate Derivative Assets, at Fair Value | 32 | 3 | ||||
After-tax gains (losses) in AOCI from commodity cash flow hedge transactions | $ 41 | |||||
Corn [Member] | Designated As Hedging Instrument [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative Hedged Item Time Period | 12 months | |||||
Corn [Member] | Minimum [Member] | Designated As Hedging Instrument [Member] | ||||||
Derivative [Line Items] | ||||||
Percentage of anticipated commodity purchases or production hedged during historical hedging period (as a percent) | 20.00% | |||||
Percentage of anticipated commodity purchases or production hedged over future hedging period (as a percent) | 11.00% | |||||
Corn [Member] | Maximum [Member] | Designated As Hedging Instrument [Member] | ||||||
Derivative [Line Items] | ||||||
Percentage of anticipated commodity purchases or production hedged during historical hedging period (as a percent) | 60.00% | |||||
Percentage of anticipated commodity purchases or production hedged over future hedging period (as a percent) | 34.00% | |||||
Ethanol [Member] | Designated As Hedging Instrument [Member] | ||||||
Derivative [Line Items] | ||||||
Commodity hedged over future hedging period, (in gallons) | gal | 0 | |||||
Ethanol [Member] | Minimum [Member] | Designated As Hedging Instrument [Member] | ||||||
Derivative [Line Items] | ||||||
Commodity hedged during historical hedging period, (in gallons) | gal | 0 | |||||
Ethanol [Member] | Maximum [Member] | Designated As Hedging Instrument [Member] | ||||||
Derivative [Line Items] | ||||||
Commodity hedged during historical hedging period, (in gallons) | gal | 91,000,000 | |||||
Soybean [Member] | Designated As Hedging Instrument [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative Hedged Item Time Period | 12 months | |||||
Soybean [Member] | Minimum [Member] | Designated As Hedging Instrument [Member] | ||||||
Derivative [Line Items] | ||||||
Percentage of anticipated commodity purchases or production hedged during historical hedging period (as a percent) | 52.00% | |||||
Percentage of anticipated commodity purchases or production hedged over future hedging period (as a percent) | 0.00% | |||||
Soybean [Member] | Maximum [Member] | Designated As Hedging Instrument [Member] | ||||||
Derivative [Line Items] | ||||||
Percentage of anticipated commodity purchases or production hedged during historical hedging period (as a percent) | 100.00% | |||||
Percentage of anticipated commodity purchases or production hedged over future hedging period (as a percent) | 100.00% | |||||
Fair Value Hedging [Member] | Interest Rate Swap [Member] | ||||||
Derivative [Line Items] | ||||||
Interest Rate Derivative Assets, at Fair Value | 3 | |||||
Derivative Liability, Notional Amount | 495 | |||||
Net Investment Hedging [Member] | ||||||
Derivative [Line Items] | ||||||
Derivatives used in Net Investment Hedge, Net of Tax | $ 80 | (6) | ||||
Net Investment Hedging [Member] | Currency Swap [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative Liability, Notional Amount | 1,300 | $ 1,200 | ||||
Net Investment Hedging [Member] | Foreign Exchange Forward [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative Liability, Notional Amount | 1,800 | |||||
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative Liability, Notional Amount | $ 550 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities (Fair Value Of Derivatives Not Designated As Hedging Instruments) (Details) - Not Designated As Hedging Instrument [Member] - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
FX Contracts Assets | $ 276 | $ 125 |
Embedded Derivative, Fair Value of Embedded Derivative Asset | 0 | 0 |
Commodity Contracts Assets | 1,474 | 478 |
Total fair value of derivative assets not designated as hedging instruments | 1,750 | 603 |
FX Contracts Liabilities | 547 | 120 |
Commodity Contracts Liabilities | 1,388 | 574 |
Embedded Derivative, Fair Value of Embedded Derivative Liability | 32 | 0 |
Total fair value of derivative liabilities not designated as hedging instruments. | $ 1,967 | $ 694 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities (Pre-Tax Gains (Losses) On Derivatives Not Designated As Hedging Instruments) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative [Line Items] | ||||
Revenues | $ 15,126 | $ 16,726 | $ 46,377 | $ 48,327 |
Cost of Products Sold | 14,084 | 15,648 | 43,276 | 45,349 |
Other (Income) Expense - Net | 278 | (18) | 179 | (39) |
Interest Expense | 100 | 97 | 270 | 307 |
Total gain (loss) recognized in earnings | (441) | 83 | (336) | 105 |
Revenues [Member] | ||||
Derivative [Line Items] | ||||
FX Contracts | 8 | 17 | 54 | 15 |
Total gain (loss) recognized in earnings | 8 | 17 | 54 | 15 |
Cost of Products Sold [Member] | ||||
Derivative [Line Items] | ||||
FX Contracts | (77) | (81) | (738) | (30) |
Commodity Contracts | (272) | 153 | 321 | 142 |
Total gain (loss) recognized in earnings | (349) | 72 | (417) | 112 |
Interest Expense [Member] | ||||
Derivative [Line Items] | ||||
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net | (15) | (15) | ||
Total gain (loss) recognized in earnings | (15) | (15) | ||
Other (Income) Expense - Net [Member] | ||||
Derivative [Line Items] | ||||
FX Contracts | (85) | (6) | (13) | (22) |
Commodity Contracts | 0 | 55 | ||
Total gain (loss) recognized in earnings | $ (85) | $ (6) | $ 42 | $ (22) |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities (Fair Value Of Derivatives Designated As Hedging Instruments) (Details) - Designated As Hedging Instrument [Member] - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Derivative Instruments in Hedges, Net Investment in Foreign Operations, Assets, Fair Value | $ 16 | $ 13 |
Derivative Instruments in Hedges, Net Investment in Foreign Operations, Liabilities, Fair Value | 0 | 5 |
Interest Rate Derivative Assets, at Fair Value | 32 | 3 |
Interest Rate Derivative Liabilities, at Fair Value | 34 | 43 |
Derivative Instruments in Hedges, Assets, at Fair Value | 48 | 16 |
Derivative Instruments in Hedges, Liabilities, at Fair Value | $ 34 | $ 48 |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities (Pre-Tax Gains (Losses) On Derivatives Designated As Hedging Instruments) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments, Gains (Loss) [Line Items] | ||||
Revenues | $ 15,126 | $ 16,726 | $ 46,377 | $ 48,327 |
Cost of Products Sold | 14,084 | 15,648 | 43,276 | 45,349 |
Interest Expense | 100 | 97 | 270 | 307 |
Other (Income) Expense - Net | 278 | (18) | 179 | (39) |
Designated As Hedging Instrument [Member] | ||||
Derivative Instruments, Gains (Loss) [Line Items] | ||||
Total amount recognized in earnings | 66 | (17) | (35) | (27) |
Designated As Hedging Instrument [Member] | Revenues [Member] | ||||
Derivative Instruments, Gains (Loss) [Line Items] | ||||
Commodity Contracts effective amount recognized in earnings | 1 | 3 | 9 | (5) |
Total amount recognized in earnings | 1 | 3 | 9 | (5) |
Designated As Hedging Instrument [Member] | Cost of Products Sold [Member] | ||||
Derivative Instruments, Gains (Loss) [Line Items] | ||||
Commodity Contracts effective amount recognized in earnings | 79 | 1 | 19 | 7 |
Total amount recognized in earnings | 79 | 1 | 19 | 7 |
Designated As Hedging Instrument [Member] | Interest Expense [Member] | ||||
Derivative Instruments, Gains (Loss) [Line Items] | ||||
Interest contracts effective amount recognized in earnings | 0 | 0 | (8) | 0 |
Total amount recognized in earnings | 0 | 0 | (8) | 0 |
Designated As Hedging Instrument [Member] | Other (Income) Expense - Net [Member] | ||||
Derivative Instruments, Gains (Loss) [Line Items] | ||||
Interest contracts effective amount recognized in earnings | (14) | (21) | (55) | (29) |
Commodity Contracts effective amount recognized in earnings | 0 | 0 | 0 | |
Total amount recognized in earnings | $ (14) | $ (21) | $ (55) | $ (29) |
Other Current Assets (Details)
Other Current Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Other Assets [Abstract] | |||||
Derivative Asset | $ 1,798 | $ 1,798 | $ 619 | ||
Deferred Receivables Consideration | 272 | 272 | 446 | ||
Receivables from Customers | 888 | 888 | 1,014 | ||
Financing Receivable, after Allowance for Credit Loss | 331 | 331 | 395 | ||
Premiums Receivable, Net | 25 | 25 | 41 | ||
Prepaid Expense, Current | 308 | 308 | 318 | ||
Biodiesel tax credit | 89 | 89 | 541 | ||
Tax receivables | 665 | 665 | 579 | ||
Other Receivables | 296 | 296 | 369 | ||
Other current assets | 284 | 284 | 278 | ||
Total other current assets | 4,956 | 4,956 | 4,600 | ||
Financing Receivable, Allowance for Credit Loss | 4 | 4 | 3 | ||
Interest on financing receivables | 4 | $ 5 | 15 | $ 19 | |
Reinsurance Recoverables | $ 77 | $ 77 | $ 81 |
Accrued Expenses And Other Pa_3
Accrued Expenses And Other Payables (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Derivative Liability | $ 1,969 | $ 742 |
Employee-related Liabilities | 349 | 300 |
Accrued Income Taxes, Current | 61 | 72 |
Accrual for Taxes Other than Income Taxes, Current | 120 | 120 |
Biodiesel tax credit payable | 17 | 332 |
Liability for Claims and Claims Adjustment Expense | 277 | 284 |
Contract with Customer, Liability | 344 | 604 |
Operating Lease, Liability, Current | 251 | 215 |
Accrued expenses and other payables | 892 | 1,088 |
Total accrued expenses and other payables | $ 4,280 | $ 3,757 |
Debt And Financing Arrangemen_2
Debt And Financing Arrangements (Narrative) (Details) | Sep. 28, 2020USD ($) | Aug. 26, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 27, 2020USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 23, 2020USD ($) | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Issuance Date | Mar. 27, 2020 | |||||||||
Gain (Loss) on Extinguishment of Debt | $ 396,000,000 | $ 0 | $ 410,000,000 | $ 0 | ||||||
Excess of fair value over carrying value of long-term debt | 2,200,000,000 | 2,200,000,000 | ||||||||
Line of Credit [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 10,700,000,000 | 10,700,000,000 | ||||||||
Unused lines of credit | 9,100,000,000 | 9,100,000,000 | ||||||||
Commercial Paper [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 5,000,000,000 | 5,000,000,000 | ||||||||
Commercial Paper | 0 | 0 | ||||||||
Accounts Receivable Securitization Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,800,000,000 | 1,800,000,000 | ||||||||
Unused lines of credit | 400,000,000 | 400,000,000 | ||||||||
Debentures [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Repurchased Face Amount | $ 665,000,000 | |||||||||
Debt Instrument, Repurchase Amount | $ 933,000,000 | |||||||||
Payment for Debt Extinguishment or Debt Prepayment Cost | 374,000,000 | |||||||||
Other Long Term Debt [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Extinguishment of Debt, Amount | $ 100,000,000 | |||||||||
Payment for Debt Extinguishment or Debt Prepayment Cost | 3,000,000 | |||||||||
Notes Three Point Three Seventy-Five Due in 2022 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Extinguishment of Debt, Amount | $ 400,000,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.375% | |||||||||
Payment for Debt Extinguishment or Debt Prepayment Cost | 19,000,000 | |||||||||
Bonds Zero Percent Due in 2023 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Issuance Date | Aug. 26, 2020 | |||||||||
Debt Instrument, Face Amount | $ 300,000,000 | |||||||||
Debt Instrument, Convertible, Conversion Ratio | 50,597.0453 | |||||||||
Debt Instrument Convertible Conversion Ratio Basis Principal Amount | $ 200,000 | |||||||||
Debt Instrument, Call Feature | Effective February 26, 2022, ADM Ag has the option to call the outstanding Bonds at their principal amount if the value of the Exchange Property per Bond exceeds 120% of the principal amount for 20 consecutive trading days. | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.00% | |||||||||
Notes Four Point Four Seventy-Nine Percent Due in 2021 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Extinguishment of Debt, Amount | $ 495,000,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.479% | |||||||||
Payment for Debt Extinguishment or Debt Prepayment Cost | 14,000,000 | |||||||||
Notes Two Point Seventy-Five Percent Due in 2025 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 500,000,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.75% | |||||||||
Proceeds from Issuance of Unsecured Debt | $ 492,000,000 | |||||||||
Notes Three Point Twenty-Five Percent Due in 2030 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 1,000,000,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | |||||||||
Proceeds from Issuance of Unsecured Debt | $ 988,000,000 | |||||||||
Not Designated as Hedging Instrument [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 32,000,000 | 32,000,000 | $ 0 | |||||||
Not Designated as Hedging Instrument [Member] | Bonds Zero Percent Due in 2023 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Embedded Derivative, Fair Value of Embedded Derivative Liability | $ 32,000,000 | $ 32,000,000 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Contingency [Line Items] | |||||
Effective income tax rate | (13.00%) | 18.90% | 3.40% | 19.40% | |
Tax expense (credit) related to out of period discretes | $ 73 | ||||
Argentine Tax Authorities [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Income tax assessment | $ 11 | $ 11 | |||
Income tax assessment - Interest and Penalties | 44 | 44 | |||
Estimated Additional Tax Assessment | 34 | 34 | |||
Additional income tax assessment - Interest and Penalties | 25 | 25 | |||
Tax and Customs Administration, Netherlands [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Income tax assessment | 95 | 95 | |||
Additional income tax assessment - Interest and Penalties | $ 38 | $ 38 |
Leases Lease Cost (Details)
Leases Lease Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Leases [Abstract] | |||||
Operating Lease, Cost | $ 84 | $ 51 | $ 231 | $ 197 | |
Short-term Lease, Cost | 19 | 24 | 73 | 71 | |
Lease, Cost | $ 103 | $ 75 | 304 | 268 | |
Operating Lease, Payments | 222 | 149 | |||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 244 | $ 192 | |||
Operating Lease, Weighted Average Remaining Lease Term | 7 years | 7 years | 7 years | ||
Operating Lease, Weighted Average Discount Rate, Percent | 4.30% | 4.30% | 4.60% |
Leases Liability Maturity (Deta
Leases Liability Maturity (Details) $ in Millions | Sep. 30, 2020USD ($) |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, to be Paid, Remainder of Fiscal Year | $ 76 |
Lessee, Operating Lease, Liability, to be Paid, Year One | 284 |
Lessee, Operating Lease, Liability, to be Paid, Year Two | 252 |
Lessee, Operating Lease, Liability, to be Paid, Year Three | 204 |
Lessee, Operating Lease, Liability, to be Paid, Year Four | 144 |
Lessee, Operating Lease, Liability, to be Paid, Year Five | 83 |
Lessee, Operating Lease, Liability, to be Paid, after Year Five | 250 |
Lessee, Operating Lease, Liability, to be Paid | 1,293 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (180) |
Operating Lease, Liability | $ 1,113 |
Leases Narrative (Details)
Leases Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Operating Leased Assets [Line Items] | ||
Operating Lease, Right-of-Use Asset | $ 1,100 | $ 1,000 |
Operating Lease, Liability, Current | 251 | 215 |
Operating Lease, Liability, Noncurrent | $ 862 | $ 781 |
Minimum [Member] | ||
Operating Leased Assets [Line Items] | ||
Lessee, Operating Lease, Renewal Term | 10 months | |
Maximum [Member] | ||
Operating Leased Assets [Line Items] | ||
Lessee, Operating Lease, Renewal Term | 49 years |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance of Accumulated Other Comprehensive Income (Loss) at Beginning of Period | $ (2,705) | $ (2,405) |
Other comprehensive income (loss) before reclassifications | (10) | (388) |
Amounts reclassified from AOCI | (66) | 40 |
Other comprehensive income (loss), tax, portion attributable to parent | 32 | 4 |
Other Comprehensive Income (Loss), Net of Tax | (44) | (344) |
Balance of Accumulated Other Comprehensive Income (Loss) at End of period | (2,749) | (2,749) |
Foreign Currency Translation Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance of Accumulated Other Comprehensive Income (Loss) at Beginning of Period | (2,445) | (2,152) |
Other comprehensive income (loss) before reclassifications | (155) | (434) |
Amounts reclassified from AOCI | 0 | 0 |
Other comprehensive income (loss), tax, portion attributable to parent | 51 | 37 |
Other Comprehensive Income (Loss), Net of Tax | (104) | (397) |
Balance of Accumulated Other Comprehensive Income (Loss) at End of period | (2,549) | (2,549) |
Deferred Gain (Loss) On Hedging Activities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance of Accumulated Other Comprehensive Income (Loss) at Beginning of Period | (14) | (12) |
Other comprehensive income (loss) before reclassifications | 178 | 76 |
Amounts reclassified from AOCI | (66) | 35 |
Other comprehensive income (loss), tax, portion attributable to parent | (22) | (23) |
Other Comprehensive Income (Loss), Net of Tax | 90 | 88 |
Balance of Accumulated Other Comprehensive Income (Loss) at End of period | 76 | 76 |
Pension Liability Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance of Accumulated Other Comprehensive Income (Loss) at Beginning of Period | (275) | (268) |
Other comprehensive income (loss) before reclassifications | (5) | (5) |
Amounts reclassified from AOCI | 0 | 5 |
Other comprehensive income (loss), tax, portion attributable to parent | 3 | (9) |
Other Comprehensive Income (Loss), Net of Tax | (2) | (9) |
Balance of Accumulated Other Comprehensive Income (Loss) at End of period | (277) | (277) |
Unrealized Gain (Loss) On Investments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance of Accumulated Other Comprehensive Income (Loss) at Beginning of Period | 29 | 27 |
Other comprehensive income (loss) before reclassifications | (28) | (25) |
Amounts reclassified from AOCI | 0 | 0 |
Other comprehensive income (loss), tax, portion attributable to parent | 0 | (1) |
Other Comprehensive Income (Loss), Net of Tax | (28) | (26) |
Balance of Accumulated Other Comprehensive Income (Loss) at End of period | $ 1 | $ 1 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (AOCI) Components (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Asset impairment, exit, and restructuring costs | $ 4 | $ 53 | $ 61 | $ 200 |
Earnings Before Income Taxes | (200) | (503) | (1,127) | (1,092) |
Income taxes | 26 | (95) | (38) | (212) |
Net Earnings Including Noncontrolling Interests | (226) | (408) | (1,089) | (880) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Foreign Currency Translation Adjustment [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Income taxes | 0 | 0 | 0 | 0 |
Net Earnings Including Noncontrolling Interests | 0 | 0 | 0 | (1) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Deferred (Gain) Loss On Hedging Activities [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (66) | 17 | 35 | 27 |
Income taxes | (19) | (4) | (5) | 0 |
Net Earnings Including Noncontrolling Interests | (47) | 21 | 40 | 27 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension Liability Adjustment [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Earnings Before Income Taxes | 0 | 3 | 5 | (3) |
Income taxes | (1) | (1) | 10 | (16) |
Net Earnings Including Noncontrolling Interests | 1 | 4 | (5) | 13 |
Revenues [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Deferred (Gain) Loss On Hedging Activities [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (1) | (3) | (9) | 5 |
Cost of Products Sold [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Deferred (Gain) Loss On Hedging Activities [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (79) | (1) | (19) | (7) |
Other (Income) Expense - Net [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Deferred (Gain) Loss On Hedging Activities [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 14 | 55 | ||
Other (Income) Expense - Net [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Foreign Currency Translation Adjustment [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 0 | 0 | 0 | 1 |
Other (Income) Expense - Net [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Deferred (Gain) Loss On Hedging Activities [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 21 | 29 | ||
Other (Income) Expense - Net [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension Liability Adjustment [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Prior Service Cost (Credit) | (9) | 0 | (25) | (13) |
Actuarial Losses | 9 | 3 | 30 | 10 |
Interest Expense [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Deferred (Gain) Loss On Hedging Activities [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 0 | $ 0 | $ 8 | $ 0 |
Other (Income) Expense (Details
Other (Income) Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 23, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | ||||||
Other - net | $ (50) | $ (11) | $ (99) | $ (2) | ||
Gain (Loss) on Extinguishment of Debt | (396) | 0 | (410) | 0 | ||
Gain (Loss) on Sale and Revaluation of Assets | 68 | 7 | 132 | 37 | ||
Other (Income) Expense - Net | 278 | (18) | 179 | (39) | ||
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | $ (7) | $ (2) | $ (28) | $ (10) | ||
Wilmar [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 22.10% | 22.10% | 24.80% | |||
Debentures [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Debt Instrument, Repurchased Face Amount | $ 665 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) - segment | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | 3 | |
Wilmar [Member] | ||
Segment Reporting Information [Line Items] | ||
Equity Method Investment, Ownership Percentage | 22.10% | 24.80% |
Segment Information (Segment In
Segment Information (Segment Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Information | ||||
Revenues | $ (15,126) | $ (16,726) | $ (46,377) | $ (48,327) |
Earnings Before Income Taxes | 200 | 503 | 1,127 | 1,092 |
Ag Services and Oilseeds [Member] | ||||
Segment Information | ||||
Revenues | (11,527) | (12,616) | (35,347) | (36,382) |
Earnings Before Income Taxes | 436 | 417 | 1,271 | 1,196 |
Ag Services [Member] | ||||
Segment Information | ||||
Revenues | (7,352) | (8,246) | (22,930) | (23,653) |
Crushing [Member] | ||||
Segment Information | ||||
Revenues | (2,317) | (2,465) | (7,035) | (7,130) |
Refined Products and Other [Member] | ||||
Segment Information | ||||
Revenues | (1,858) | (1,905) | (5,382) | (5,599) |
Carbohydrate Solutions [Member] | ||||
Segment Information | ||||
Revenues | (2,064) | (2,565) | (6,394) | (7,409) |
Earnings Before Income Taxes | 246 | 182 | 509 | 470 |
Starches and sweeteners [Member] | ||||
Segment Information | ||||
Revenues | (1,574) | (1,526) | (4,769) | (4,782) |
VCP [Member] | ||||
Segment Information | ||||
Revenues | (490) | (1,039) | (1,625) | (2,627) |
Nutrition [Member] | ||||
Segment Information | ||||
Revenues | (1,451) | (1,457) | (4,359) | (4,263) |
Earnings Before Income Taxes | 147 | 118 | 447 | 316 |
Human Nutrition [Member] | ||||
Segment Information | ||||
Revenues | (719) | (703) | (2,161) | (2,105) |
Animal Nutrition [Member] | ||||
Segment Information | ||||
Revenues | (732) | (754) | (2,198) | (2,158) |
Other [Member] | ||||
Segment Information | ||||
Revenues | (84) | (88) | (277) | (273) |
Earnings Before Income Taxes | 20 | 47 | 69 | 72 |
Corporate, Non-Segment [Member] | ||||
Segment Information | ||||
Earnings Before Income Taxes | (704) | (255) | (1,189) | (922) |
Aggregate Segment [Member] | ||||
Segment Information | ||||
Earnings Before Income Taxes | 904 | 758 | 2,316 | 2,014 |
Operating Segments [Member] | Ag Services and Oilseeds [Member] | ||||
Segment Information | ||||
Revenues | (13,415) | (14,440) | (40,196) | (41,041) |
Operating Segments [Member] | Carbohydrate Solutions [Member] | ||||
Segment Information | ||||
Revenues | (2,335) | (3,018) | (7,102) | (8,472) |
Operating Segments [Member] | Nutrition [Member] | ||||
Segment Information | ||||
Revenues | (1,481) | (1,481) | (4,471) | (4,322) |
Operating Segments [Member] | Other [Member] | ||||
Segment Information | ||||
Revenues | (84) | (88) | (277) | (273) |
Intersegment Elimination [Member] | ||||
Segment Information | ||||
Revenues | 2,189 | 2,301 | 5,669 | 5,781 |
Intersegment Elimination [Member] | Ag Services and Oilseeds [Member] | ||||
Segment Information | ||||
Revenues | 1,888 | 1,824 | 4,849 | 4,659 |
Intersegment Elimination [Member] | Carbohydrate Solutions [Member] | ||||
Segment Information | ||||
Revenues | 271 | 453 | 708 | 1,063 |
Intersegment Elimination [Member] | Nutrition [Member] | ||||
Segment Information | ||||
Revenues | 30 | 24 | 112 | 59 |
Other (Income) Expense - Net [Member] | Segment Reconciling Items [Member] | ||||
Segment Information | ||||
Earnings Before Income Taxes | 57 | 0 | 80 | 12 |
Asset impairment, restructuring, and settlement [Member] | Segment Reconciling Items [Member] | ||||
Segment Information | ||||
Earnings Before Income Taxes | $ (2) | $ (6) | $ (60) | $ (52) |
Asset Impairment, Exit, and R_2
Asset Impairment, Exit, and Restructuring Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Asset Impairment Charges And Exit Costs [Line Items] | ||||
Asset Impairment Charges | $ 3 | $ 6 | $ 50 | $ 50 |
Restructuring Charges | $ 1 | $ 11 | ||
Corporate, Non-Segment [Member] | ||||
Asset Impairment Charges And Exit Costs [Line Items] | ||||
Restructuring Charges | $ 47 | 150 | ||
Ag Services and Oilseeds [Member] | ||||
Asset Impairment Charges And Exit Costs [Line Items] | ||||
Asset Impairment Charges | $ 35 |
Sale of Accounts Receivable (Na
Sale of Accounts Receivable (Narrative) (Details) $ in Millions, € in Billions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020EUR (€) | Dec. 31, 2019USD ($) | |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||||||
Transfer of Financial Assets Accounted for as Sales, Fair Value of Derecognized Assets | $ 1,700 | $ 1,700 | $ 1,900 | |||
Transfer of Financial Assets Accounted for as Sales, Cash Proceeds Received for Assets Derecognized, Amount | 1,400 | 1,400 | 1,400 | |||
Deferred Receivables Consideration | 272 | 272 | $ 446 | |||
Proceeds from Sale of Other Receivables | 24,200 | $ 25,100 | ||||
Proceeds from Collection of Retained Interest in Securitized Receivables | 6,724 | 9,527 | ||||
Loss on transfer of accounts receivables to purchasers | 2 | $ 5 | 7 | $ 14 | ||
Accounts Receivable Securitization Facility [Member] | ||||||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,800 | 1,800 | ||||
First Purchasers [Member] | Accounts Receivable Securitization Facility [Member] | ||||||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,200 | 1,200 | ||||
Second Purchasers [Member] | Accounts Receivable Securitization Facility [Member] | ||||||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 600 | $ 600 | € 0.5 |