What changed in this filing

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Item 1. Financial Statements

2023-04-25 compared with 2022-10-25 · 225 added, 422 removed, 686 unchanged (49% of the section changed)

3 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

(In millions, except per share amounts)

22 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

(In millions)

20 unchanged sentences

Consolidated Balance Sheets

(In millions) September 30, 2022 December 31, 2021

(In millions) March 31, 2023 December 31, 2022

Current Assets

46 unchanged sentences

Consolidated Statements of Cash Flows

(In millions) Nine Months Ended

September 30,

(In millions) Three Months Ended

Operating Activities

6 unchanged sentences

Stock compensation expense 65 69

Loss on debt extinguishment — 36

Deferred cash flow hedges ( 104 ) 283

12 unchanged sentences

Capital expenditures ( 327 ) ( 217 )

Net assets of businesses acquired — ( 501 )

Proceeds from sales of assets and businesses 13 5

Investments in affiliates ( 4 ) ( 36 )

Cost method investments — ( 102 )

Other – net ( 10 ) 8

8 unchanged sentences

Total Financing Activities 598 3,318

Effect of exchange rate on cash, cash equivalents, restricted cash, and restricted cash equivalents ( 6 ) —

Increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents ( 1,346 ) 1,770

15 unchanged sentences

(In millions, except per share amounts) Shares Amount

Balance, June 30, 2022 561 $ 3,066 $ 23,292 $ ( 1,965 ) $ 33 $ 24,426

Comprehensive income

Net earnings 1,031 6

Other comprehensive income (loss) ( 247 ) ( 3 )

Total comprehensive income 787

Cash dividends paid - $ 0.40 per share ( 224 ) ( 224 )

Share repurchases ( 12 ) ( 1,000 ) ( 1,000 )

Stock compensation expense — 26 26

Stock option exercises net of taxes — 17 17

Other — 1 — — ( 4 ) ( 3 )

Balance, September 30, 2022 549 $ 3,110 $ 23,099 $ ( 2,212 ) $ 32 $ 24,029

Balance, December 31, 2022 547 $ 3,147 $ 23,646 $ ( 2,509 ) $ 33 $ 24,317

8 unchanged sentences

Other — 2 — — 4 6

Balance, September 30, 2022 549 $ 3,110 $ 23,099 $ ( 2,212 ) $ 32 $ 24,029

Balance, June 30, 2021 559 $ 2,941 $ 20,762 $ ( 2,121 ) $ 21 $ 21,603

Comprehensive income

Net earnings 526 7

Other comprehensive income (loss) 45 ( 1 )

Total comprehensive income 577

Cash dividends paid - $ 0.37 per share ( 209 ) ( 209 )

Stock compensation expense — 21 21

Stock option exercises net of taxes — 1 1

Other — 1 2 — ( 6 ) ( 3 )

Balance, September 30, 2021 559 $ 2,964 $ 21,081 $ ( 2,076 ) $ 21 $ 21,990

Balance, March 31, 2023 545 $ 3,106 $ 24,217 $ ( 2,463 ) $ 36 $ 24,896

Balance, December 31, 2021 560 $ 2,994 $ 21,655 $ ( 2,172 ) $ 31 $ 22,508

5 unchanged sentences

Stock compensation expense 3 69 69

Stock option exercises net of taxes — ( 36 ) ( 36 )

Other — 1 — — ( 3 ) ( 2 )

Balance, September 30, 2021 559 $ 2,964 $ 21,081 $ ( 2,076 ) $ 21 $ 21,990

Balance, March 31, 2022 563 $ 3,028 $ 22,483 $ ( 1,789 ) $ 33 $ 23,755

See notes to consolidated financial statements.

6 unchanged sentences

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, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022.

Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.

For further information, refer to the consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2022 for Archer-Daniels-Midland Company (the Company or ADM).

13 unchanged sentences

The Company records receivables at net realizable value in trade receivables, other current assets, and other assets.

These amounts included allowances for estimated uncollectible accounts totaling $ 179 million and $ 122 million at September 30, 2022 and December 31, 2021, respectively, to reflect any loss anticipated on the accounts receivable balances including any accrued interest receivables thereon.

These amounts included allowances for estimated uncollectible accounts to reflect any loss anticipated on the accounts receivable balances including any accrued interest receivables thereon.

The Company estimates uncollectible accounts by pooling receivables 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.

Long-term receivables recorded in other assets were not material to the Company’s overall receivables portfolio.

The Company recorded bad debt expense in selling, general, and administrative expenses of $ 29 million and $ 73 million in the three and nine months ended September 30, 2022, respectively, and $ 1 million and $ 9 million in the three and nine months ended September 30, 2021, respectively.

Cost Method Investments

Cost method investments of $ 465 million and $ 297 million as of September 30, 2022 and December 31, 2021, respectively, were included in Other Assets in the Company’s consolidated balance sheets.

Revaluation gains of $ 37 million in the nine months ended September 30, 2022, and $ 9 million and $ 49 million in the three and nine months ended September 30, 2021, respectively, in connection with observable third-party transactions, were recorded in investment income in the Company's consolidated statements of earnings.

There were no revaluation gains recorded in the three months ended September 30, 2022.

Archer-Daniels-Midland Company

1 unchanged sentence

Basis of Presentation (Continued)

Changes to the allowance for estimated uncollectible accounts are as follows:

Three Months Ended March 31

Beginning, January 1 $ 199 $ 122

Current year provisions 4 22

Recoveries 1 1

Write-offs against allowance ( 24 ) ( 1 )

Foreign exchange translation adjustment 1 —

Other 1 ( 7 )

Ending, March 31 $ 182 $ 137

Write-offs against allowance in the current quarter related primarily to allowance on receivables that were subsequently sold.

Certain merchandisable agricultural commodity inventories, which include inventories acquired under deferred pricing contracts, are stated at market value.

In addition, the Company values certain inventories using the first-in, first-out (FIFO) method at the lower of cost or net realizable value.

The following table sets forth the Company’s inventories as of December 31, 2022 and 2021.

March 31, 2023 December 31, 2022

(In millions)

Raw materials and supplies $ 6,310 $ 6,975

Finished goods 8,461 7,796

Total inventories $ 14,771 $ 14,771

Included in raw materials and supplies are work in process inventories which were not material as of March 31, 2023 and December 31, 2022.

Cost Method Investments

Cost method investments of $ 489 million and $ 488 million as of March 31, 2023 and December 31, 2022, respectively, were included in Other Assets in the Company’s consolidated balance sheets.

Revaluation gains of $ 34 million in the three months ended March 31, 2022 in connection with observable third-party transactions, were recorded in interest and investment income in the Company's consolidated statements of earnings.

There were no revaluation gains in the three months ended March 31, 2023.

Operations in Ukraine and Russia

ADM employs approximately 640 people in Ukraine and operates an oilseeds crushing plant, a grain port terminal, inland and river silos, and a trading office.

Most of the facilities have been temporarily idled since February 24, 2022, some of which were brought back online during the quarter ended September 30, 2022, due in part to the opening of the Black Sea grain export corridor.

The Company’s footprint in Russia is limited and operations have been scaled down to those related to the production and transport of essential food commodities and ingredients.

As a result of the ongoing conflict in Ukraine, the Company reviewed the valuation of its assets and recorded immaterial charges in the three and nine months ended September 30, 2022 related to receivables and inventories.

As of September 30, 2022, ADM concluded that 1) receivables, net of allowances, are deemed collectible;

and 2) market inventories are valued appropriately.

The temporarily idled property, plant, and equipment, which is immaterial, are not considered impaired.

The Company also evaluated the impact of Russia’s recent announcement of its purported annexation of four Ukrainian regions on the valuation of ADM’s assets in those regions and concluded that the assets are appropriately valued.

Facilities have been temporarily idled since February 24, 2022, most of which were brought back online by March 31, 2023, due in part to the opening of the Black Sea grain export corridor.

The Company’s footprint in Russia is limited to operations related to the production and transport of essential food commodities and ingredients.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Basis of Presentation (Continued)

As a result of the ongoing conflict in Ukraine, the Company reviewed the valuation of its assets and concluded that as of March 31, 2023, receivables, net of allowances, are deemed collectible and market inventories are valued appropriately.

The temporarily idled property, plant, and equipment, which are immaterial, are not considered impaired.

The Company also evaluated the impact of Russia’s announcement of its purported annexation of four Ukrainian regions on the valuation of ADM’s assets in those regions and concluded that the assets are appropriately valued.

As the conflict in Ukraine evolves, the Company will continue to review the valuation of these assets and make any required adjustments, which are not expected to be material to the Company’s consolidated financial statements.

Pending Accounting Standards

Through December 31, 2022, the Company has the option to adopt the amended guidance of Accounting Standards Codification (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.

New Accounting Standards

Effective January 1, 2023, the Company adopted the amended guidance of Accounting Standards Codification (ASC) Topic 805, Business Combinations , which improves comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination.

The amended guidance requires an entity (acquirer) to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC Topic 606, Revenue from Contracts with Customers , (Topic 606).

The Company’s adoption of this amended guidance did not have an impact on its consolidated financial statements.

Effective January 1, 2023, the Company adopted the amended guidance of ASC Subtopic 405-50, Liabilities - Supplier Finance Programs, which enhances the transparency of supplier finance programs.

The amended guidance requires an entity (buyer) in a supplier finance program to disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude.

ADM has Supplier Payable Programs (“SPP”) with financial institutions which act as its paying agents for payables due to certain of its suppliers.

The Company has neither an economic interest in a supplier’s participation in the SPP nor a direct financial relationship with the financial institutions, and has concluded that its obligations to the suppliers, including amounts due and scheduled payment terms, are not impacted by their participation in the SPP.

Accordingly, amounts associated with the SPP continue to be classified in current liabilities in the Company’s consolidated balance sheet and in operating activities in its consolidated statement of cash flows.

The supplier invoices that have been confirmed as valid under the program require payment in full generally within 90 days of the invoice date.

As of March 31, 2023 and December 31, 2022, the Company’s outstanding payment obligations that suppliers had elected to sell to the financial institutions were $ 247 million and $ 196 million, respectively.

Through December 31, 2024, 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.

1 unchanged sentence

The Company plans to adopt the expedients and exceptions provided by the amended guidance before the December 31, 2024 expiry date and does not expect the adoption of the amended guidance to have an impact on its consolidated financial statements.

Effective January 1, 2023, the Company will be required to adopt the amended guidance of ASC Topic 805, Business Combinations , which improves comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination.

Early adoption is permitted.

The Company does not expect the adoption of this amended guidance to have a significant impact on its consolidated financial statements.

Effective January 1, 2023, the Company will be required to adopt the amended guidance of ASC Subtopic 405-50, Liabilities - Supplier Finance Programs , which enhances the transparency of supplier finance programs.

Early adoption is permitted.

The adoption of this amended guidance will require the Company to provide disclosures about its supplier finance programs, if material, but is not expected to have an impact on its consolidated financial statements.

Archer-Daniels-Midland Company

7 unchanged sentences

For transportation service contracts, the Company recognizes revenue over time as the mode of transportation moves towards its destination in accordance with the transfer of control guidance of Topic 606.

The Company recognized revenue from transportation service contracts of $ 227 million and $ 611 million for the three and nine months ended September 30, 2022, respectively, and $ 153 million and $ 408 million for the three and nine months ended September 30, 2021, respectively.

The Company recognized revenue from transportation service contracts of $ 178 million and $ 175 million for the three months ended March 31, 2023 and 2022, 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).

6 unchanged sentences

Contract liabilities relate to advance payments from customers for goods and services that the Company has yet to provide.

Contract liabilities of $ 423 million and $ 581 million as of September 30, 2022 and December 31, 2021, respectively, were recorded in accrued expenses and other payables in the consolidated balance sheets.

Contract liabilities recognized as revenues were $ 111 million and $ 581 million for the three and nine months ended September 30, 2022, respectively, and $ 128 million and $ 697 million for the three and nine months ended September 30, 2021, respectively.

Contract liabilities of $ 473 million and $ 694 million as of March 31, 2023 and December 31, 2022, respectively, were recorded in accrued expenses and other payables in the consolidated balance sheets.

Contract liabilities recognized as revenues were $ 362 million and $ 324 million for the three months ended March 31, 2023 and 2022, respectively.

Archer-Daniels-Midland Company

2 unchanged sentences

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, 2022 and 2021.

Three Months Ended September 30, 2022

Topic 606 Revenue Topic 815 (1)

Point in Time Over Time Total Revenue Revenues

(In millions)

Ag Services and Oilseeds

Ag Services $ 1,095 $ 227 $ 1,322 $ 11,215 $ 12,537

Crushing 202 — 202 3,018 3,220

Refined Products and Other 715 — 715 2,669 3,384

Total Ag Services and Oilseeds 2,012 227 2,239 16,902 19,141

Carbohydrate Solutions

Starches and Sweeteners 1,994 — 1,994 686 2,680

Vantage Corn Processors 901 — 901 — 901

Total Carbohydrate Solutions 2,895 — 2,895 686 3,581

Human Nutrition 906 — 906 — 906

Animal Nutrition 958 — 958 — 958

Total Nutrition 1,864 — 1,864 — 1,864

Other Business 97 — 97 — 97

Total Revenues $ 6,868 $ 227 $ 7,095 $ 17,588 $ 24,683

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Revenues (Continued)

Nine Months Ended September 30, 2022

The following tables present revenue disaggregated by timing of recognition and major product lines for the three months ended March 31, 2023 and 2022.

Three Months Ended March 31, 2023

Topic 606 Revenue Topic 815 (1)

Point in Time Over Time Total Revenue Revenues

(In millions)

(In millions) Point in Time Over Time Total Revenue Revenues

Ag Services and Oilseeds

12 unchanged sentences

Total Revenues $ 6,674 $ 178 $ 6,852 $ 17,220 $ 24,072

Three Months Ended September 30, 2021

Three Months Ended March 31, 2022

Topic 606 Revenue Topic 815 (1)

Point in Time Over Time Total Revenue Revenues

(In millions)

(In millions) Point in Time Over Time Total Revenue Revenues

Ag Services and Oilseeds

12 unchanged sentences

Total Revenues $ 6,556 $ 175 $ 6,731 $ 16,919 $ 23,650

(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.

Archer-Daniels-Midland Company

1 unchanged sentence

Revenues (Continued)

Nine Months Ended September 30, 2021

Topic 606 Revenue Topic 815 (1)

Point in Time Over Time Total Revenue Revenues

(In millions)

Ag Services and Oilseeds

Ag Services $ 2,080 $ 408 $ 2,488 $ 30,372 $ 32,860

Crushing 335 — 335 8,076 8,411

Refined Products and Other 1,828 — 1,828 5,868 7,696

Total Ag Services and Oilseeds 4,243 408 4,651 44,316 48,967

Carbohydrate Solutions

Starches and Sweeteners 4,326 — 4,326 1,237 5,563

Vantage Corn Processors 2,346 — 2,346 — 2,346

Total Carbohydrate Solutions 6,672 — 6,672 1,237 7,909

Human Nutrition 2,410 — 2,410 — 2,410

Animal Nutrition 2,583 — 2,583 — 2,583

Total Nutrition 4,993 — 4,993 — 4,993

Other Business 290 — 290 — 290

Total Revenues $ 16,198 $ 408 $ 16,606 $ 45,553 $ 62,159

(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, from the sale of products manufactured in its global processing facilities, and from its structured trade finance activities.

4 unchanged sentences

The Company engages in various structured trade finance activities to leverage its global trade flows whereby the Company obtains letters of credit (LCs) to guarantee payments on both global purchases and sales of grain.

LCs guaranteeing payment on grain sales are sold on a non-recourse basis with no continuing involvement.

The Company earns returns from the difference in interest rates between the LCs that guarantee payment on the underlying purchases and sales of grain given the differing risk profiles of the underlying transactions.

The net return related to structured trade finance activities is included in revenue and is not significant for the quarters ended March 31, 2023 and 2022.

Carbohydrate Solutions

4 unchanged sentences

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Revenues (Continued)

The Nutrition segment sells ingredients and solutions including plant-based proteins, natural flavors, flavor systems, natural colors, emulsifiers, soluble fiber, polyols, hydrocolloids, probiotics, prebiotics, enzymes, botanical extracts, edible beans, formula feeds, animal health and nutrition products, pet food and treats, and other specialty food and feed ingredients.

7 unchanged sentences

Reinsurance premiums are recognized on a straight-line basis over the period underlying the policy.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

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, 2022 and December 31, 2021.

Fair Value Measurements at September 30, 2022

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 March 31, 2023 and December 31, 2022.

Fair Value Measurements at March 31, 2023

Quoted Prices in

9 unchanged sentences

Foreign currency contracts — 238 — 238

Interest rate contracts — 105 — 105

Cash equivalents 397 — — 397

34 unchanged sentences

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 competitor and broker quotations or market transactions in either the listed or over the counter (OTC) markets and are considered observable.

The basis adjustments are generally determined using the inputs from competitor and broker quotations or market transactions and are considered observable.

Basis adjustments are impacted 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 basis adjustments.

In some cases, the basis adjustments are unobservable because they are supported by little to no market activity.

9 unchanged sentences

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 competitor and broker quotations or market transactions in either the listed or OTC markets and are considered observable.

The basis adjustments are generally determined using inputs from competitor and broker quotations or market transactions and are considered observable.

Basis adjustments are impacted 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 basis adjustments.

In some cases, the basis adjustments are unobservable because they are supported by little to no market activity.

2 unchanged sentences

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 in Level 1.

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, and 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 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.

1 unchanged sentence

Treasury securities are valued using quoted market prices and are classified in Level 1.

The debt conversion option is the equity-linked embedded derivative related to the exchangeable bonds issued in August 2020.

The debt conversion option is the equity linked embedded derivative related to the exchangeable bonds.

The fair value of the embedded derivative is included in long-term debt, with changes in fair value recognized as interest, and is valued with the assistance of a third-party pricing service (a level 3 measurement).

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, 2022.

Level 3 Fair Value Asset Measurements at

September 30, 2022

Market Commodity

(In millions)

Balance, June 30, 2022 $ 3,245 $ 880 $ 4,125

Total increase (decrease) in net realized/unrealized gains included in cost of products sold*

Purchases 13,294 — 13,294

Sales ( 13,931 ) — ( 13,931 )

Settlements — ( 456 ) ( 456 )

Transfers into Level 3 384 49 433

Transfers out of Level 3 ( 221 ) ( 116 ) ( 337 )

Ending balance, September 30, 2022 $ 3,086 $ 702 $ 3,788

* Includes increase in unrealized gains of $ 481 million relating to Level 3 assets still held at September 30, 2022.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Fair Value Measurements (Continued)

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, 2022.

Level 3 Fair Value Liability Measurements at

September 30, 2022

Payables Commodity

Losses Debt Conversion Option

(In millions)

Balance, June 30, 2022 $ 55 $ 960 $ 11 $ 1,026

Total increase (decrease) in net realized/unrealized losses included in cost of products sold and interest expense*

3 391 ( 8 ) 386

Purchases 167 — — 167

Sales ( 5 ) — — ( 5 )

Settlements — ( 634 ) — ( 634 )

Transfers into Level 3 — 57 — 57

Transfers out of Level 3 — ( 65 ) — ( 65 )

Ending balance, September 30, 2022 $ 220 $ 709 $ 3 $ 932

* Includes increase in unrealized losses of $ 394 million relating to Level 3 liabilities still held at September 30, 2022.

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, 2021.

Level 3 Fair Value Asset Measurements at

September 30, 2021

Market Commodity

(In millions)

Balance, June 30, 2021 $ 2,824 $ 551 $ 3,375

Total increase (decrease) in net realized/unrealized gains included in cost of products sold* 70 288 358

Purchases 7,351 — 7,351

Sales ( 7,346 ) — ( 7,346 )

Settlements — ( 311 ) ( 311 )

Transfers into Level 3 205 34 239

Transfers out of Level 3 ( 602 ) ( 77 ) ( 679 )

Ending balance, September 30, 2021 $ 2,502 $ 485 $ 2,987

* Includes increase in unrealized gains of $ 435 million relating to Level 3 assets still held at September 30, 2021.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Fair Value Measurements (Continued)

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, 2021.

Level 3 Fair Value Liability Measurements at

September 30, 2021

Payables Commodity

Losses Debt Conversion Option

(In millions)

Balance, June 30, 2021 $ 38 $ 1,037 $ 24 $ 1,099

Total increase (decrease) in net realized/unrealized losses included in cost of products sold and interest expense* 3 310 ( 7 ) 306

Purchases 1 — — 1

Sales ( 27 ) — — ( 27 )

Settlements — ( 654 ) — ( 654 )

Transfers into Level 3 — 60 — 60

Transfers out of Level 3 — ( 50 ) — ( 50 )

Ending balance, September 30, 2021 $ 15 $ 703 $ 17 $ 735

* Includes increase in unrealized losses of $ 313 million relating to Level 3 liabilities still held at September 30, 2021.

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, 2022.

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 March 31, 2023.

Level 3 Fair Value Asset Measurements at

September 30, 2022

March 31, 2023

Market Commodity

7 unchanged sentences

Transfers out of Level 3 ( 275 ) ( 37 ) ( 312 )

Ending balance, September 30, 2022 $ 3,086 $ 702 $ 3,788

* Includes increase in unrealized gains of $ 2.2 billion relating to Level 3 assets still held at September 30, 2022.

Ending balance, March 31, 2023 $ 3,503 $ 649 $ 4,152

* Includes increase in unrealized gains of $ 632 million relating to Level 3 assets still held at March 31, 2023.

Archer-Daniels-Midland Company

1 unchanged sentence

Fair Value Measurements (Continued)

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, 2022.

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 March 31, 2023.

Level 3 Fair Value Liability Measurements at

September 30, 2022

March 31, 2023

Payables Commodity

3 unchanged sentences

Total increase (decrease) in net realized/unrealized losses included in cost of products sold and interest expense*

Purchase 176 — — 176

( 2 ) 243 ( 5 ) 236

Purchases 2 — — 2

Sales — — — —

2 unchanged sentences

Transfers out of Level 3 ( 1 ) ( 6 ) — ( 7 )

Ending balance, September 30, 2022 $ 220 $ 709 $ 3 $ 932

* Includes increase in unrealized losses of $ 2.1 billion relating to Level 3 liabilities still held at September 30, 2022.

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, 2021.

Ending balance, March 31, 2023 $ 57 $ 455 $ 1 $ 513

* Includes increase in unrealized losses of $ 248 million relating to Level 3 liabilities still held at March 31, 2023.

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 March 31, 2022.

Level 3 Fair Value Asset Measurements at

September 30, 2021

March 31, 2022

Market Commodity

7 unchanged sentences

Transfers out of Level 3 ( 256 ) ( 12 ) ( 268 )

Ending balance, September 30, 2021 $ 2,502 $ 485 $ 2,987

* Includes increase in unrealized gains of $ 1.7 billion relating to Level 3 assets still held at September 30, 2021.

Ending balance, March 31, 2022 $ 3,959 $ 828 $ 4,787

* Includes increase in unrealized gains of $ 1.4 billion relating to Level 3 assets still held at March 31, 2022.

Archer-Daniels-Midland Company

1 unchanged sentence

Fair Value Measurements (Continued)

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, 2021.

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 March 31, 2022.

Level 3 Fair Value Liability Measurements at

September 30, 2021

March 31, 2022

Payables Commodity

8 unchanged sentences

Transfers out of Level 3 — ( 18 ) — ( 18 )

Ending balance, September 30, 2021 $ 15 $ 703 $ 17 $ 735

* Includes increase in unrealized losses of $ 1.4 billion relating to Level 3 liabilities still held at September 30, 2021.

Ending balance, March 31, 2022 $ 53 $ 1,856 $ 30 $ 1,939

* Includes increase in unrealized losses of $ 1.4 billion relating to Level 3 liabilities still held at March 31, 2022.

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.

8 unchanged sentences

Fair Value Measurements (Continued)

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, 2022 and December 31, 2021.

The following table sets forth the weighted average percentage of the unobservable price components included in the Company’s Level 3 valuations as of March 31, 2023 and December 31, 2022.

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, 2022 is a weighted average 27.9 % of the total price for assets and 18.1 % of the total price for liabilities.

As an example, for Level 3 inventories with basis, the unobservable component as of March 31, 2023 is a weighted average 22.2 % of the total price for assets and 20.9 % of the total price for liabilities.

Weighted Average % of Total Price

September 30, 2022 December 31, 2021

March 31, 2023 December 31, 2022

Component Type Assets Liabilities Assets Liabilities

17 unchanged sentences

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, 2022 and December 31, 2021.

September 30, 2022 December 31, 2021

The following table sets forth the fair value of derivatives not designated as hedging instruments as of March 31, 2023 and December 31, 2022.

March 31, 2023 December 31, 2022

Assets Liabilities Assets Liabilities

7 unchanged sentences

Derivative Instruments and Hedging Activities (Continued)

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, 2022 and 2021.

Other expense (income) - net

Cost of Interest

(In millions) Revenues products sold expense

Three Months Ended September 30, 2022

Consolidated Statement of Earnings $ 24,683 $ 22,872 $ ( 67 ) $ 97

Pre-tax gains (losses) on:

Foreign Currency Contracts $ ( 5 ) $ 6 $ 151 $ —

Commodity Contracts — 134 — —

Debt Conversion Option — — — 8

Total gain (loss) recognized in earnings $ ( 5 ) $ 140 $ 151 $ 8 $ 294

Three Months Ended September 30, 2021

Consolidated Statement of Earnings $ 20,340 $ 19,014 $ 20 $ 61

Pre-tax gains (losses) on:

Foreign Currency Contracts $ 13 $ ( 92 ) $ 62 $ —

Commodity Contracts — 214 — —

Debt Conversion Option — — — 7

Total gain (loss) recognized in earnings $ 13 $ 122 $ 62 $ 7 $ 204

Other expense (income) - net

1 unchanged sentence

(In millions) Revenues products sold expense

Nine Months Ended September 30, 2022

Three Months Ended March 31, 2023

Consolidated Statement of Earnings $ 24,072 $ 21,992 $ ( 44 ) $ 147

4 unchanged sentences

Total gain (loss) recognized in earnings $ ( 11 ) $ 535 $ ( 16 ) $ 5 $ 513

Nine Months Ended September 30, 2021

Three Months Ended March 31, 2022

Consolidated Statement of Earnings $ 23,650 $ 21,753 $ ( 33 ) $ 92

4 unchanged sentences

Total gain (loss) recognized in earnings $ ( 38 ) $ ( 658 ) $ 23 $ ( 15 ) $ ( 688 )

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Derivative Instruments and Hedging Activities (Continued)

Changes in the market value of inventories of certain merchandisable agricultural commodities, 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.

Changes in the market value of inventories of certain merchandisable agricultural commodities, inventory-related payables, 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 and Net Investment Hedging Strategies

The Company had certain derivatives designated as cash flow and net investment hedges as of September 30, 2022 and December 31, 2021.

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 $ 0.7 billion and $ 1.2 billion as of September 30, 2022 and December 31, 2021, respectively, and foreign exchange forwards with an aggregate notional amount of $ 2.3 billion and $ 2.6 billion as of September 30, 2022 and December 31, 2021, respectively.

As of September 30, 2022 and December 31, 2021, the Company had after-tax gains of $ 283 million and after-tax losses of $ 44 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.

The Company had certain derivatives designated as cash flow and net investment hedges as of March 31, 2023 and December 31, 2022.

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 AOCI and as an operating activity in the statement of cash flows, and is reclassified into earnings in the same line item affected by the hedged transaction 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’s structured trade finance programs use 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 revenues over the period in which the related interest payments are paid to the banks.

The amounts are recorded in revenues as the related results are also recorded in revenues.

As of September 30, 2022 and December 31, 2021, the Company had interest rate swaps maturing on various dates with aggregate notional amounts of $ 0.5 billion and $ 1.0 billion, respectively.

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.

As of September 30, 2022 and December 31, 2021, the Company executed swap locks maturing on various dates with an aggregate notional amount of $ 400 million.

As of September 30, 2022 and December 31, 2021, the Company had after-tax gains of $ 80 million and $ 35 million in AOCI, respectively, related to the interest rate swaps and swap locks.

The Company expects to recognize amounts deferred in AOCI in its consolidated statement of earnings during the life of the debt instruments.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Derivative Instruments and Hedging Activities (Continued)

Commodity Contracts

For each of the hedge programs described below, the derivatives are designated as cash flow hedges.

1 unchanged sentence

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, 2022 and December 31, 2021, the Company had after-tax gains of $ 270 million and $ 161 million in AOCI, respectively, related to gains and losses from these programs.

The Company expects to recognize $ 270 million of the September 30, 2022 after-tax gains in its consolidated statement of earnings during the next 12 months.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Derivative Instruments and Hedging Activities (Continued)

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.

2 unchanged sentences

During the past 12 months, the Company hedged between 17 % and 33 % of its monthly grind.

At September 30, 2022, the Company had designated hedges representing between 5 % and 33 % of its anticipated monthly grind of corn for the next 12 months.

At March 31, 2023, the Company had designated hedges representing between 1 % and 31 % 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.

1 unchanged sentence

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 and as of September 30, 2022, the Company had no hedges related to ethanol sales under these programs.

During the past 12 months and as of March 31, 2023, the Company had no hedges related to ethanol sales under these programs.

The Company uses futures and options contracts to hedge the purchase price of the anticipated volumes of soybeans to be purchased and processed in a future month for certain of its U.S.

2 unchanged sentences

During the past 12 months, the Company hedged between 94 % and 100 % of the anticipated monthly soybean crush for soybean purchases and soybean meal and oil sales at the designated facilities.

At September 30, 2022, 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.

At March 31, 2023, 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 Company uses futures and OTC swaps to hedge the purchase price of anticipated volumes of natural gas consumption in a future month for certain of its facilities in North America and Europe, subject to certain program limits.

During the past 12 months, the Company hedged between 74 % and 93 % of the anticipated monthly natural gas consumption at the designated facilities.

At September 30, 2022, the Company had designated hedges representing between 0 % and 89 % of the anticipated monthly natural gas consumption over the next 12 months.

The following table sets forth the fair value of derivatives designated as hedging instruments as of September 30, 2022 and December 31, 2021.

September 30, 2022 December 31, 2021

At March 31, 2023, the Company had designated hedges representing between 37 % and 80 % of the anticipated monthly natural gas consumption over the next 12 months.

As of March 31, 2023 and December 31, 2022, the Company had after-tax losses of $ 65 million and $ 17 million in AOCI, respectively, related to gains and losses from these programs.

The Company expects to recognize $ 63 million of the March 31, 2023 after-tax losses in its consolidated statement of earnings during the next 12 months.

Interest Rate Contracts

The Company used 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 matched 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.

The Company executed swap locks maturing on various dates with an aggregate notional amount of $ 400 million as of December 31, 2022.

During the quarter ended March 31, 2023, the Company unwound the swap locks in anticipation of the April 3, 2023 debt issuance.

As of March 31, 2023 and December 31, 2022, the Company had after-tax gains of $ 79 million and $ 82 million in AOCI, respectively, related to the swap locks.

The Company expects to recognize amounts deferred in AOCI in its consolidated statement of earnings during the life of the debt instruments.

Foreign Currency Contracts

The Company executed USD-fixed to Euro-fixed cross-currency swaps with an aggregate notional amount of $ 0.8 billion as of March 31, 2023 and December 31, 2022, and foreign exchange forwards with an aggregate notional amount of $ 2.8 billion and $ 2.5 billion as of March 31, 2023 and December 31, 2022, respectively.

As of March 31, 2023 and December 31, 2022, the Company had after-tax gains of $ 54 million and $ 79 million in AOCI, respectively, related to foreign exchange gains and losses from net investment hedge transactions.

The amount is deferred in AOCI until the underlying investment is divested.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Derivative Instruments and Hedging Activities (Continued)

The following table sets forth the fair value of derivatives designated as hedging instruments as of March 31, 2023 and December 31, 2022.

March 31, 2023 December 31, 2022

Assets Liabilities Assets Liabilities

4 unchanged sentences

Total $ 62 $ 141 $ 213 $ 20

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Derivative Instruments and Hedging Activities (Continued)

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, 2022 and 2021.

Cost of products sold

(In millions) Revenues

Three Months Ended September 30, 2022

Consolidated Statement of Earnings $ 24,683 $ 22,872

Effective amounts recognized in earnings

Pre-tax gains (losses) on:

Commodity Contracts $ — $ 117

Interest Contracts 1 —

Total gain (loss) recognized in earnings $ 1 $ 117 $ 118

Three Months Ended September 30, 2021

Consolidated Statement of Earnings $ 20,340 $ 19,014

Effective amounts recognized in earnings

Pre-tax gains (losses) on:

Commodity Contracts $ — $ 122

Interest Contracts — —

Total gain (loss) recognized in earnings $ — $ 122 $ 122

Cost of products sold

(In millions) Revenues

Nine Months Ended September 30, 2022

Three Months Ended March 31, 2023

Consolidated Statement of Earnings $ 24,072 $ 21,992

2 unchanged sentences

Commodity Contracts — ( 104 )

Interest Contracts 1 —

Total gain (loss) recognized in earnings $ — $ ( 104 ) $ ( 104 )

Nine Months Ended September 30, 2021

Three Months Ended March 31, 2022

Consolidated Statement of Earnings $ 23,650 $ 21,753

2 unchanged sentences

Commodity Contracts — 98

Interest Contracts ( 15 ) —

Total gain (loss) recognized in earnings $ — $ 98 $ 98

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Derivative Instruments and Hedging Activities (Continued)

Other Net Investment Hedging Strategies

The Company has designated € 1.3 billion and € 1.8 billion of its outstanding long-term debt and commercial paper borrowings at September 30, 2022 and December 31, 2021, respectively, as hedges of its net investment in a foreign subsidiary.

As of September 30, 2022 and December 31, 2021, the Company had after-tax gains of $ 311 million and $ 55 million in AOCI, respectively, related to foreign exchange gains and losses from net investment hedge transactions.

The Company has designated € 1.3 billion of its outstanding long-term debt and commercial paper borrowings at March 31, 2023 and December 31, 2022 as hedges of its net investment in a foreign subsidiary.

As of March 31, 2023 and December 31, 2022, the Company had after-tax gains of $ 208 million and $ 228 million in AOCI, respectively, related to foreign exchange gains and losses from the net investment hedge transactions.

The amount is deferred in AOCI until the underlying investment is divested.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Other Current Assets

The following table sets forth the items in other current assets:

September 30, December 31,

March 31, December 31,

(In millions)

11 unchanged sentences

(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 $ 3 million and $ 4 million at September 30, 2022 and December 31, 2021, respectively.

Interest earned on financing receivables of $ 3 million and $ 11 million for the three and nine months ended September 30, 2022, respectively and $ 2 million and $ 8 million for the three and nine months ended September 30, 2021, respectively, is included in interest and investment income in the consolidated statements of earnings.

(2) Non-trade receivables included $ 18 million and $ 27 million of reinsurance recoverables as of September 30, 2022 and December 31, 2021, respectively.

The amounts are reported net of allowances of $ 4 million and $ 3 million at March 31, 2023 and December 31, 2022, respectively.

Interest earned on financing receivables of $ 6 million and $ 4 million for the three months ended March 31, 2023 and 2022, respectively, is included in interest and investment income in the consolidated statements of earnings.

(2) Non-trade receivables as of March 31, 2023 included dividends receivable of $ 116 million.

Archer-Daniels-Midland Company

2 unchanged sentences

The following table sets forth the items in accrued expenses and other payables:

September 30, December 31,

March 31, December 31,

(In millions)

8 unchanged sentences

Debt and Financing Arrangements

On February 28, 2022 , the Company issued its first sustainability bond of $ 750 million aggregate principal amount of 2.900 % notes due March 1, 2032 .

Net proceeds before expenses were $ 748 million.

The Company expects to apply an amount equal to the net proceeds to finance or refinance eligible green projects and/or eligible social projects.

During the quarter ended September 30, 2022, the Company redeemed € 500 million aggregate principal amount of Fixed-to-Floating Rate Senior Notes due 2022 issued in a private placement on March 25, 2021.

On September 29, 2022, Archer Daniels Midland Singapore, Pte.

Ltd., a wholly-owned subsidiary of the Company, closed on a $ 500 million revolving credit facility at an interest rate of SOFR plus 45 basis points .

The facility will be used to finance working capital requirements of ADM entities in the Asia Pacific region and general corporate purposes.

At September 30, 2022, the fair value of the Company’s long-term debt was below the carrying value by $ 0.3 billion, as estimated using quoted market prices (a Level 2 measurement under applicable accounting standards).

At September 30, 2022, the Company had lines of credit, including the accounts receivable securitization programs described below, totaling $ 12.2 billion, of which $ 10.1 billion was unused.

During the quarter ended March 31, 2023, Archer Daniels Midland Singapore, Pte.

Ltd., a wholly-owned subsidiary of the Company, increased its revolving credit facility from $ 500 million to $ 750 million.

The facility is used to finance working capital requirements and for and general corporate purposes.

At March 31, 2023, the fair value of the Company’s long-term debt was below the carrying value by $ 0.1 billion, as estimated using quoted market prices (a Level 2 measurement under applicable accounting standards).

At March 31, 2023, the Company had lines of credit, including the accounts receivable securitization programs described below, totaling $ 13.3 billion, of which $ 8.9 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, 2022.

and European commercial paper borrowing programs, against which there was $ 0.8 billion commercial paper outstanding at March 31, 2023.

The Company has accounts receivable securitization programs (the “Programs”).

The Programs provide the Company with up to $ 2.6 billion in funding resulting from the sale of accounts receivable with $ 0.6 billion unused capacity as of September 30, 2022 (see Note 14 for more information about the Programs).

The Company’s effective tax rates were 15.7 % and 16.9 % for the three and nine months ended September 30, 2022, respectively, compared to 18.4 % and 15.8 % for the three and nine months ended September 30, 2021, respectively.

The change in the rate was primarily due to changes in the geographic mix of earnings and the impact of discrete tax items.

The Programs provide the Company with up to $ 2.9 billion in funding resulting from the sale of accounts receivable with $ 0.3 billion unused capacity as of March 31, 2023.

The Company’s effective tax rate was 16.1 % for the three months ended March 31, 2023 compared to 16.3 % for the three months ended March 31, 2022.

The decrease in the rate was primarily due to the impact of discrete tax items, partially offset by changes in the geographic mix of forecasted earnings.

On August 16, 2022, the U.S.

1 unchanged sentence

corporate income tax system, including a 15 % minimum tax based on “adjusted financial statement income” and a one percent excise tax on net repurchases of stock for tax years beginning after December 31, 2022.

While the Inflation Act has no immediate impact and is not expected to have a material adverse effect on ADM’s results of operations going forward, the Company will continue to evaluate its impact as further information becomes available.

The Company’s adoption of the Inflation Act did not have a significant impact on the Company’s consolidated financial statements.

A rcher-Daniels-Midland Company

10 unchanged sentences

Toepfer Argentina SRL), received tax assessments challenging transfer prices used to price grain exports for the tax years 1999 through 2011, 2014 and 2015.

As of September 30, 2022, these assessments totaled $ 6 million in tax and up to $ 29 million in interest (adjusted for variation in currency exchange rates).

As of March 31, 2023, these assessments totaled $ 4 million in tax and up to $ 22 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.

1 unchanged sentence

Currently the Company is under audit for fiscal years 2016 to 2017.

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 2014, and estimates that these potential assessments could be approximately $ 78 million in tax and $ 49 million in interest (adjusted for variation in currency exchange rates as of September 30, 2022).

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 2014.

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 is more likely than not to be sustained based upon its technical merits, and accordingly, has not recorded a tax liability for these assessments.

The Company intends to vigorously defend its position against any assessments.

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, 2022, this assessment was $ 80 million in tax and $ 28 million in interest (adjusted for variation in currency exchange rates).

As of March 31, 2023, this assessment was $ 88 million in tax and $ 32 million in interest (adjusted for variation in currency exchange rates).

On April 23, 2020, the court issued an unfavorable ruling and in October 2020, assigned a third party expert to establish a valuation.

During the second quarter of 2021, the third party expert issued a final valuation.

On September 30, 2022, the court issued a ruling consistent with the valuation report, and the Dutch tax authorities have six weeks to file an appeal.

Subsequent appeals may take an extended period of time and could result in financial impacts of up to the entire amount of the assessment.

As of September 30, 2022, the Company has accrued its best estimate of what it believes will be the likely outcome of the litigation.

On September 30, 2022, the court issued a ruling consistent with the valuation report, and the Dutch tax authorities have filed an appeal.

During the quarter ended March 31, 2023, ADM filed a cross-appeal.

As of March 31, 2023, the Company has accrued its best estimate of what it believes will be the likely outcome of the litigation.

Archer-Daniels-Midland Company

1 unchanged sentence

Accumulated Other Comprehensive Income

The following tables set forth the changes in AOCI by component for the three and nine months ended September 30, 2022 and the reclassifications out of AOCI for the three and nine months ended September 30, 2022 and 2021:

Three months ended September 30, 2022

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, 2022 $ ( 2,212 ) $ 382 $ ( 121 ) $ ( 14 ) $ ( 1,965 )

Other comprehensive income (loss) before reclassifications ( 536 ) 161 8 — ( 367 )

Gain (loss) on net investment hedges 318 — — — 318

Amounts reclassified from AOCI — ( 118 ) — — ( 118 )

Tax effect ( 74 ) ( 5 ) ( 2 ) 1 ( 80 )

Net of tax amount ( 292 ) 38 6 1 ( 247 )

Balance at September 30, 2022 $ ( 2,504 ) $ 420 $ ( 115 ) $ ( 13 ) $ ( 2,212 )

Nine months ended September 30, 2022

The following tables set forth the changes in AOCI by component for the three months ended March 31, 2023 and the reclassifications out of AOCI for the three months ended March 31, 2023 and 2022:

Three months ended March 31, 2023

Foreign Currency Translation Adjustment Deferred Gain (Loss) on Hedging Activities Pension Liability Adjustment Unrealized Gain (Loss) on Investments Total

6 unchanged sentences

Net of tax amount 170 ( 88 ) ( 39 ) 3 46

Balance at September 30, 2022 $ ( 2,504 ) $ 420 $ ( 115 ) $ ( 13 ) $ ( 2,212 )

A rcher-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Accumulated Other Comprehensive Income (Continued)

Balance at March 31, 2023 $ ( 2,452 ) $ 60 $ ( 61 ) $ ( 10 ) $ ( 2,463 )

Amount reclassified from AOCI

Three months ended September 30, Nine months ended September 30, Affected line item in the consolidated statements of earnings

Three months ended March 31, Affected line item in the consolidated statements of earnings

Details about AOCI components 2023 2022

1 unchanged sentence

Deferred loss (gain) on hedging activities

$ ( 1 ) $ — $ ( 1 ) $ 15 Revenues

$ 104 $ ( 98 ) Cost of products sold

10 unchanged sentences

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.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

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,

2022 2021 2022 2021

Three Months Ended

(In millions)

Gains on sales of assets $ ( 11 ) $ —

Debt extinguishment charges — 36 — 36

Pension settlement — 1 — 83

Other – net ( 33 ) ( 33 )

Other (Income) Expense - Net $ ( 44 ) $ ( 33 )

Gains on sales of assets in the three and nine months ended September 30, 2022 and 2021 consisted of gains on sales of certain assets and disposals of individually insignificant assets in the ordinary course of business.

Debt extinguishment charges in the three and nine months ended September 30, 2021 were related to the early redemption of $ 500 million aggregate principal amount of 2.750 % notes due in March 2025.

Pension settlement in the three and nine months ended September 30, 2021 was related to the purchase of group annuity contracts that irrevocably transferred the future benefit obligations and annuity administration for certain salaried and hourly retirees and terminated vested participants under the Company’s ADM Retirement Plan and ADM Pension Plan for Hourly-Wage Employees to independent third parties.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Other (Income) Expense - Net (Continued)

Other - net in the three and nine months ended September 30, 2022 included the non-service components of net pension benefit income of $ 7 million and $ 19 million, respectively, foreign exchange gains from hedge activity, and other income.

Other - net in the nine months ended September 30, 2022 also included a $ 50 million one-time payment from the USDA Biofuel Producer Recovery Program.

Other - net in the three and nine months ended September 30, 2021 included the non-service components of net pension benefit income of $ 1 million and $ 12 million, respectively, foreign exchange gains from hedge activity, and other income and expense.

Gains on sales of assets in the three months ended March 31, 2023 consisted of gains on sales of certain assets and disposals of individually insignificant assets in the ordinary course of business.

Other - net in the three months ended March 31, 2023 included the non-service components of net pension benefit income of $ 4 million, net foreign exchange gains, and other net income.

Other - net in the three months ended March 31, 2022 included the non-service components of net pension benefit income of $ 6 million, net foreign exchange gains, and other net income.

Segment Information

7 unchanged sentences

Specified items included in total segment operating profit and certain corporate items are not allocated to the Company’s individual business segments because operating performance of each business segment is evaluated by management exclusive of these items.

Corporate results principally include unallocated corporate expenses and interest expense net of interest income.

Corporate results also include revaluation gains and losses on cost method investments and the share of the results of equity investments in early-stage start-up companies that ADM Ventures has investments in.

Corporate results principally include unallocated corporate expenses, interest cost net of interest income, and revaluation gains and losses on cost method investments and the share of the results of equity investments in early-stage start-up companies that ADM Ventures has investments in.

For more information about the Company’s business segments, refer to Note 17 of “Notes to Consolidated Financial Statements” included in Item 8, “Financial Statements and Supplementary Data” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

2 unchanged sentences

Segment Information (Continued)

Three Months Ended Nine Months Ended

September 30, September 30,

Three Months Ended

(In millions) 2023 2022

29 unchanged sentences

Segment Information (Continued)

Three Months Ended Nine Months Ended

September 30, September 30,

Three Months Ended

(In millions) 2023 2022

5 unchanged sentences

Specified Items:

Gains on sales of assets and businesses (1)

Gains on sales of assets (1)

Impairment, restructuring, and settlement charges (2)

( 49 ) ( 2 ) ( 76 ) ( 133 )

Total segment operating profit 1,719 1,539

1 unchanged sentence

Earnings before income taxes $ 1,397 $ 1,271

(1) Consists of gains on the sale of certain assets in all periods presented.

(2) Current quarter and year-to-date charges related primarily to the impairment of certain assets, restructuring, and a contingency/settlement.

Prior quarter charges were related to restructuring.

Prior year-to-date charges were related to the impairment of certain long-lived assets, restructuring, and a contingency/settlement.

(1) Current and prior-year quarter gains were related to the sale of certain assets.

(2) Current quarter charges were related to the impairment of certain assets and restructuring.

Prior-year quarter charges were related to the impairment of certain Ukraine assets, partially offset by an insurance settlement.

Asset Impairment, Exit, and Restructuring Costs

Asset impairment, exit, and restructuring costs in the three months ended September 30, 2022 consisted of $ 16 million of impairments related to certain long-lived assets and $ 12 million of restructuring charges, presented as specified items within segment operating profit.

Asset impairment, exit, and restructuring costs in the nine months ended September 30, 2022 consisted of $ 20 million of impairments related to certain long-lived assets and $ 12 million of restructuring charges, presented as specified items within segment operating profit, and $ 2 million of restructuring adjustment in Corporate.

Asset impairment, exit, and restructuring costs in the three months ended September 30, 2021 consisted of $ 2 million of restructuring charges, presented as a specified item within segment operating profit.

Asset impairment, exit, and restructuring costs in the nine months ended September 30, 2021 consisted of $ 54 million of impairments related to certain long-lived assets and $ 26 million of restructuring charges, presented as specified items within segment operating profit, and $ 4 million of restructuring charges in Corporate.

Asset impairment, exit, and restructuring costs in the three months ended March 31, 2023 consisted of $ 3 million of impairments related to certain long-lived assets and $ 4 million of restructuring charges, presented as specified items within segment operating profit.

Asset impairment, exit, and restructuring costs in the three months ended March 31, 2022 consisted of immaterial charges.

Sale of Accounts Receivable

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In exchange, ADM Receivables receives a cash payment of up to $ 1.8 billion for the accounts receivable transferred.

The First Program terminates on November 18, 2022, unless extended.

The First Program terminates on May 18, 2023, 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”).

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ADM Ireland Receivables transfers certain of the purchased accounts receivable to each of the Second Purchasers together with a security interest in all of its right, title, and interest in the remaining purchased accounts receivable.

In exchange, ADM Ireland Receivables receives a cash payment of up to $ 0.8 billion (€ 0.8 billion) for the accounts receivables transferred.

In exchange, ADM Ireland Receivables receives a cash payment of up to $ 1.1 billion (€ 1.0 billion), as amended, for the accounts receivables transferred.

The Second Program terminates on February 20, 2024, unless extended.

A rcher-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Sale of Accounts Receivable (Continued)

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.

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The Company acts as a servicer for the transferred receivables.

At September 30, 2022 and December 31, 2021, 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, 2022 and December 31, 2021, the fair value of trade receivables transferred to the Purchasers under the Programs and derecognized from the Company’s consolidated balance sheets was $ 2.0 billion and $ 2.2 billion, respectively.

Total receivables sold were $ 42.9 billion and $ 36.7 billion for the nine months ended September 30, 2022 and 2021, respectively.

Cash collections from customers on receivables sold were $ 42.1 billion and $ 34.2 billion for the nine months ended September 30, 2022 and 2021, respectively.

As of September 30, 2022 and December 31, 2021, receivables pledged as collateral to the Purchasers were $ 1.3 billion and $ 0.5 billion, respectively.

Transfers of receivables under the Programs resulted in an expense for the loss on sale of $ 4 million and $ 12 million for the three and nine months ended September 30, 2022, respectively, and $ 2 million and $ 8 million for the three and nine months ended September 30, 2021, respectively, which is classified as selling, general, and administrative expenses in the consolidated statements of earnings.

At March 31, 2023 and December 31, 2022, 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.

A rcher-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Sale of Accounts Receivable (Continued)

As of March 31, 2023 and December 31, 2022, the fair value of trade receivables transferred to the Purchasers under the Programs and derecognized from the Company’s consolidated balance sheets was $ 2.6 billion.

Total receivables sold were $ 15.1 billion and $ 14.3 billion for the three months ended March 31, 2023 and 2022, respectively.

Cash collections from customers on receivables sold were $ 14.8 billion and $ 13.7 billion for the three months ended March 31, 2023 and 2022, respectively.

As of March 31, 2023 and December 31, 2022, receivables pledged as collateral to the Purchasers was $ 0.6 billion.

Transfers of receivables under the Programs resulted in an expense for the loss on sale of $ 23 million and $ 5 million for the three months ended March 31, 2023 and 2022, respectively, which is classified as selling, general, and administrative expenses in the consolidated statements of earnings.

All cash flows under the Programs 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.

Subsequent Event

On April 3, 2023 , the Company issued $ 500 million aggregate principal amount of 4.500 % Notes due August 15, 2033 .

Net proceeds before expenses were $ 493 million.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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This MD&A should be read in conjunction with the accompanying unaudited consolidated financial statements.

ADM is a global leader in human and animal nutrition and one of the world’s premier agricultural origination and processing companies.

It is one of the world’s leading producers of ingredients for human and animal nutrition, and other products made from nature.

The Company uses its significant global asset base to originate and transport agricultural commodities, connecting to markets in 200 countries.

ADM is an indispensable global agricultural supply chain manager and processor;

a premier human and animal nutrition provider;

a trailblazer in groundbreaking solutions to support healthier living;

an industry-leading innovator in replacing petroleum-based products;

and a leader in sustainability.

It is one of the world’s leading producers of ingredients for sustainable nutrition.

The Company uses its significant global asset base to originate and transport agricultural commodities, connecting to markets in over 190 countries.

The Company also processes corn, oilseeds, and wheat into products for food, animal feed, industrial, and energy uses.

The Company also engages in the manufacturing, sale, and distribution of specialty products including natural flavor ingredients, flavor systems, natural colors, proteins, emulsifiers, soluble fiber, polyols, hydrocolloids, natural health and nutrition products, and other specialty food and feed ingredients.

The Company uses its global asset network, business acumen, and its relationships with suppliers and customers to efficiently connect the harvest to the home thereby generating returns for our shareholders, principally from margins earned on these activities.

The Company also engages in the manufacturing, sale, and distribution of a wide array of ingredients and solutions including plant-based proteins, natural flavors, flavor systems, natural colors, emulsifiers, soluble fiber, polyols, hydrocolloids, probiotics, prebiotics, enzymes, botanical extracts, and other specialty food and feed ingredients.

The Company uses its global asset network, business acumen, and its relationships with suppliers and customers to efficiently connect the harvest to the home thereby generating returns for its shareholders, principally from margins earned on these activities.

The Company’s operations are organized, managed, and classified into three reportable business segments:

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ADM’s recent significant portfolio actions and announcements include:

• the acquisition in February 2022 of Comhan, a leading South African flavor distributor;

• the announcement in April 2022 of a growth investment in the Company’s oilseed facility in Mainz, Germany, which is expected to be completed in the third quarter of 2023;

• the announcement in April 2022 of a $300 million investment in Decatur, Illinois to expand alternative protein production and the opening of a new, state-of-the-art protein innovation center, which is expected to be completed in the first quarter of 2025;

• the announcement in April 2022 of a commitment to achieve 100% deforestation-free supply chains by 2025, five years earlier than previously targeted;

• the announcement in May 2022 to significantly expand starch production at the Company’s Marshall, Minnesota facility, which is expected to be completed in the second half of 2023;

• the announcement in May 2022 of five projects funded with support from ADM, in partnership with the U.S.

Department of Agriculture’s Natural Resources Conservation Service, to provide farmers with technical and financial resources to help plant cover crop on half a million acres;

• the announcement in June 2022 of the signing of a memorandum of understanding with Bayer, a global enterprise with core competencies in the life science fields of healthcare and agriculture, to build and implement a sustainable crop protection model to soybean farmers in India;

• the announcement in July 2022 of the signing of an agreement with Farmers Business Network (FBN) to expand availability of FBN’s leading-edge digital farm business management platform, Gradable, to ADM’s network of farmers across North America, offering 55,000 growers a comprehensive digital solution to manage their businesses and measure sustainable production data;

• the announcement in August 2022 of the official inauguration of ScaleUp Bio, a joint venture with Nurasa (formerly Asia Sustainable Foods Platform), a company focused on accelerating the commercialization of sustainable foods in Asia.

ScaleUp Bio is the first company in Singapore to provide contract development and manufacturing organization services for precision fermentation for food applications;

• the announcement in August 2022 of a long-term strategic partnership with Benson Hill, Inc., a food tech company unlocking the natural genetic diversity of plants, to scale innovative high-protein soy ingredients that will help meet the rapidly growing demand for plant-based proteins;

• the announcement in August 2022 of the launch of two joint ventures, GreenWise Lactic and LG Chem Illinois Biochem, with LG Chem, a leading global diversified chemical company, for the U.S.

production of lactic acid and polylactic acid to meet growing demand for a wide variety of plant-based products, including bioplastics;

• the announcement in August 2022 of a strategic partnership with New Culture, a pioneering animal-free dairy company, to accelerate the development and commercialization of alternative dairy products;

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

• the opening in September 2022 of the Company’s first Science and Technology Center in China that will leverage its unparalleled research and development, technology, and product innovation capabilities to spur high-quality development in the nutrition and health industry and meet growing and evolving needs in China and Asia Pacific;

• the announcement in September 2022 of a seven-and-a-half-year strategic commercial agreement with PepsiCo to collaborate closely on projects that aim to significantly expand regenerative agriculture across their shared North American supply chains;

• the opening in September 2022 of a new extrusion facility in Serbia that will further expand ADM’s footprint in Europe, extending its production of non-GMO textured soy to include vital origination and extrusion capabilities.

• the opening in February 2023 of a new production facility in Valencia, Spain to help meet rising global demand for probiotics, postbiotics, and other products that support health and well-being;

• the announcement in March 2023 of the signing of a joint venture agreement with Marel, a leading provider of advanced food processing solutions, to build an innovation center in the heart of the Netherlands food valley at the Wageningen Campus, subject to regulatory approvals.

Sustainability is a key driver in ADM’s expanding portfolio of environmentally responsible, plant-derived products.

Consumers today increasingly expect their food and drink to come from sustainable ingredients, produced by companies that share their values, and ADM is continually finding new ways to meet those needs through its portfolio actions.

The current phase of the Company’s strategic transformation is focused on two strategic pillars:

Productivity and Innovation.

The Company’s strategic transformation is focused on three strategic pillars:

Productivity, Innovation, and Culture.

The Productivity pillar includes (1) advancing the roles of the Company’s Centers of Excellence in procurement, supply chain, and operations to deliver additional efficiencies across the enterprise;

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and (3) increased use of technology, analytics, and automation at production facilities, in offices, and with customers.

Innovation activities include expansions and investments in (1) improving the customer experience, including leveraging producer relationships and enhancing the use of state-of-the-art digital technology to help customers grow;

The Innovation pillar includes expansions and investments in (1) improving the customer experience by leveraging producer relationships and enhancing the use of state-of-the-art digital technology;

(2) sustainability-driven innovation, which encompasses the full range of products, solutions, capabilities, and commitments to serve customers’ needs;

and (3) growth initiatives, including organic growth to support additional capacity and meet growing demand, and targeted mergers and acquisitions.

ADM will support both pillars with investments in science and technology, which include expanding digital capabilities and investing further in product research and development.

All of these efforts will continue to be strengthened by the Company’s ongoing commitment to Readiness.

and (3) growth initiatives, including organic growth with additional capacity to meet growing market demand and strategic objectives.

The Culture pillar focuses on building capabilities and enabling collaboration, teamwork, and agility from process standardization and digitalization and ADM’s diversity, equity, and inclusion initiatives, which bring new perspectives and expertise to the Company’s decision-making.

ADM will support the three pillars with investments in technology, which include expanding digital capabilities and investing further in research and development.

All of these efforts will continue to be strengthened by the Company’s ongoing commitment to its Readiness initiative as described in Part I Item 4 “Controls and Procedures” on page 42.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

Environmental and Social Responsibility

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and the Company’s non-compliance protocol for suppliers.

By the end of 2022, the Company expects to achieve full traceability of its direct and indirect sourcing throughout its soy supply chains in Brazil, Paraguay, and Argentina.

In 2022, the Company achieved full traceability of its direct and indirect sourcing throughout its soy supply chains in Brazil, Paraguay, and Argentina.

ADM aims to eliminate deforestation from all of the Company’s supply chains by 2025.

In 2020, ADM announced its environmental stewardship goals, collectively called “Strive 35” – an ambitious plan to, by 2035, reduce absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 25 percent from a 2019 baseline, reduce energy intensity by 15 percent, reduce water intensity by 10 percent, and achieve a 90 percent landfill diversion rate.

In 2021, ADM added 5-year interim targets to ensure the Company stays on track to meet its 2035 goals.

By 2025, the Company aims to reduce absolute GHG emissions by 1.5%, reduce energy and water intensity by 6% and 5%, respectively, and achieve 87% of its waste diverted from landfill.

In 2021, the Company announced its Scope 3 GHG reduction goal, focused upon the five most material Scope 3 categories for the Company;

purchased goods and services;

fuel and energy related emissions;

upstream transportation and distribution;

and processing of solid products/goods.

ADM aims to reduce its absolute Scope 3 emissions by 25% from a 2019 baseline by 2035.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

The Company’s environmental goals, collectively called “Strive 35” – an ambitious plan to, by 2035, reduce from a 2019 baseline absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 25 percent, reduce absolute Scope 3 emissions by 25 percent, reduce energy intensity by 15 percent, reduce water intensity by 10 percent, and achieve a 90 percent landfill diversion rate – are part of an aggressive plan to continue to reduce the Company’s environmental footprint.

Operating Performance Indicators

The Company is exposed to certain risks inherent to an agricultural-based commodity business.

These risks are further described in Part I Item 1A, “Risk Factors” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and in Part II Item 1A “Risk Factors” on page 56.

These risks are further described in Part I Item 1A, “Risk Factors” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

The Company’s Ag Services and Oilseeds operations are principally agricultural commodity-based businesses where changes in

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dollar which did not and is not expected to have a material impact on the Company’s consolidated financial statements.

The Company measures its performance using key financial metrics including net earnings, gross margins, constant currency revenue and operating profit, segment operating profit, adjusted segment operating profit, earnings before interest, taxes, depreciation, and amortization (EBITDA), adjusted EBITDA, manufacturing expenses, selling, general, and administrative expenses, return on invested capital, economic value added, and operating cash flows before working capital.

The Company measures its performance using key financial metrics including net earnings, adjusted earnings per share (EPS), gross margins, constant currency revenue and operating profit, segment operating profit, adjusted segment operating profit, earnings before interest, taxes, depreciation, and amortization (EBITDA), adjusted EBITDA, return on invested capital, economic value added, and operating cash flows before working capital.

Some of these metrics are not defined by accounting principles generally accepted in the United States and should be considered in addition to, and not in lieu of, GAAP financial measures.

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Due to the unpredictable nature of these and other factors, the Company undertakes no responsibility for updating any forward-looking information contained within “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

Operations in Ukraine and Russia

ADM employs approximately 650 people in Ukraine and operates an oilseeds crushing plant, a grain port terminal, inland and river silos, and a trading office.

The Company’s footprint in Russia is limited and operations have been scaled down to those related to the production and transport of essential food commodities and ingredients.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements