What changed in this filing

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Item 1. Financial Statements

2023-10-24 compared with 2023-07-25 · 328 added, 303 removed, 1218 unchanged (34% of the section changed)

3 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

23 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

21 unchanged sentences

Consolidated Balance Sheets

(In millions) June 30, 2023 December 31, 2022

(In millions) September 30, 2023 December 31, 2022

Current Assets

46 unchanged sentences

Consolidated Statements of Cash Flows

(In millions) Six Months Ended

(In millions) Nine Months Ended

September 30,

Operating Activities

20 unchanged sentences

Capital expenditures ( 1,055 ) ( 841 )

Net assets of businesses acquired ( 11 ) —

Proceeds from sales of assets and businesses 21 51

29 unchanged sentences

(In millions, except per share amounts) Shares Amount

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

Balance, June 30, 2023 536 $ 3,128 $ 24,244 $ ( 2,433 ) $ 36 $ 24,975

Comprehensive income

6 unchanged sentences

Stock option exercises net of taxes — ( 3 ) ( 3 )

Balance, June 30, 2023 536 $ 3,128 $ 24,244 $ ( 2,433 ) $ 36 $ 24,975

Other — 3 — — ( 1 ) 2

Balance, September 30, 2023 535 $ 3,140 $ 24,699 $ ( 2,611 ) $ 37 $ 25,265

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

8 unchanged sentences

Other — 5 — — 3 8

Balance, September 30, 2023 535 $ 3,140 $ 24,699 $ ( 2,611 ) $ 37 $ 25,265

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

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

Comprehensive income

6 unchanged sentences

Stock option exercises net of taxes — 17 17

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

Other — 1 — — ( 4 ) ( 3 )

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

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

8 unchanged sentences

Other — 2 — — ( 7 ) ( 5 )

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

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

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 six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.

Operating results for the nine months ended September 30, 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 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 thereon.

The Company estimates uncollectible accounts by pooling receivables according to type, region, credit risk rating, and age.

7 unchanged sentences

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

Three Months Ended June 30

Beginning, April 1 $ 182 $ 137

Current year provisions 9 22

Three Months Ended September 30

(In millions)

Beginning, July 1 $ 174 $ 164

Current year provisions (reversals) ( 11 ) 29

Write-offs against allowance ( 3 ) ( 1 )

1 unchanged sentence

Other — ( 11 )

Ending, June 30 $ 174 $ 164

Six Months Ended June 30

Ending, September 30 $ 158 $ 179

Nine Months Ended September 30

(In millions)

Beginning, January 1 $ 199 $ 122

3 unchanged sentences

Foreign exchange translation adjustment ( 1 ) ( 4 )

Ending, June 30 $ 174 $ 164

Write-offs against allowance in the current quarter primarily related to a customer in Brazil.

Also included in write-offs against allowance in the six months ended June 30, 2023 was allowance on receivables that were subsequently sold.

Other — ( 7 )

Ending, September 30 $ 158 $ 179

Net reversals during the three months ended September 30, 2023 included reversals of prior year general provisions for economic factors related to the pandemic and a specific provision for a certain customer, partially offset by provisions for the current quarter.

Write-offs against allowance in the nine months ended September 30, 2023 were related to a customer in Brazil and 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.

1 unchanged sentence

The following table sets forth the Company’s inventories.

June 30, 2023 December 31, 2022

September 30, 2023 December 31, 2022

(In millions)

2 unchanged sentences

Total inventories $ 11,224 $ 14,771

Included in raw materials and supplies are work in process inventories which were not material as of June 30, 2023 and December 31, 2022.

Included in raw materials and supplies are work in process inventories which were not material as of September 30, 2023 and December 31, 2022.

Archer-Daniels-Midland Company

2 unchanged sentences

Cost Method Investments

Cost method investments of $ 494 million and $ 488 million as of June 30, 2023 and December 31, 2022, respectively, were included in Other Assets in the Company’s consolidated balance sheets.

Revaluation gains of $ 3 million and $ 37 million in the three and six months ended June 30, 2022, respectively, 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 and six months ended June 30, 2023.

Cost method investments of $ 493 million and $ 488 million as of September 30, 2023 and December 31, 2022, 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 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 and nine months ended September 30, 2023 and in the three months ended September 30, 2022.

Operations in Ukraine and Russia

1 unchanged sentence

The Company’s footprint in Russia is limited to operations 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 concluded that as of June 30, 2023, receivables, net of allowances, are deemed collectible and market inventories are valued appropriately.

As a result of the ongoing conflict in Ukraine, the Company reviewed the valuation of its assets and concluded that as of September 30, 2023, receivables, net of allowances, are deemed collectible and market inventories are valued appropriately.

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.

10 unchanged sentences

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 June 30, 2023 and December 31, 2022, the Company’s outstanding payment obligations that suppliers had elected to sell to the financial institutions were $ 310 million and $ 196 million, respectively.

As of September 30, 2023 and December 31, 2022, the Company’s outstanding payment obligations that suppliers had elected to sell to the financial institutions were $ 313 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.

11 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 $ 200 million and $ 378 million for the three and six months ended June 30, 2023, respectively, and $ 209 million and $ 384 million for the three and six months ended June 30, 2022, respectively.

The Company recognized revenue from transportation service contracts of $ 174 million and $ 552 million for the three and nine months ended September 30, 2023, respectively, and $ 227 million and $ 611 million for the three and nine months ended September 30, 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 $ 286 million and $ 694 million as of June 30, 2023 and December 31, 2022, respectively, were recorded in accrued expenses and other payables in the consolidated balance sheets.

Revenues recognized from contract liabilities were $ 311 million and $ 673 million for the three and six months ended June 30, 2023, respectively, and $ 335 million and $ 581 million for the three and six months ended June 30, 2022, respectively.

Contract liabilities of $ 411 million and $ 694 million as of September 30, 2023 and December 31, 2022, respectively, were recorded in accrued expenses and other payables in the consolidated balance sheets.

Revenues recognized from the December 31, 2022 contract liabilities were $ 21 million and $ 694 million for the three and nine months ended September 30, 2023, 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 six months ended June 30, 2023 and 2022.

Three Months Ended June 30, 2023

The following tables present revenue disaggregated by timing of recognition and major product lines for the three and nine months ended September 30, 2023 and 2022.

Three Months Ended September 30, 2023

Topic 606 Revenue Topic 815 (1)

14 unchanged sentences

Total Revenues $ 6,224 $ 174 $ 6,398 $ 15,297 $ 21,695

Six Months Ended June 30, 2023

Nine Months Ended September 30, 2023

Topic 606 Revenue Topic 815 (1)

18 unchanged sentences

Revenues (Continued)

Three Months Ended June 30, 2022

Three Months Ended September 30, 2022

Topic 606 Revenue Topic 815 (1)

14 unchanged sentences

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

Six Months Ended June 30, 2022

Nine Months Ended September 30, 2022

Topic 606 Revenue Topic 815 (1)

29 unchanged sentences

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 three and six months ended June 30, 2023 and 2022.

The net return related to structured trade finance activities is included in revenue and is not significant for the three and nine months ended September 30, 2023 and 2022.

Carbohydrate Solutions

16 unchanged sentences

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 June 30, 2023 and December 31, 2022.

Fair Value Measurements at June 30, 2023

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, 2023 and December 31, 2022.

Fair Value Measurements at September 30, 2023

Quoted Prices in

71 unchanged sentences

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.

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 June 30, 2023.

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

The fair value of the embedded derivative was included in long-term debt, with changes in fair value recognized as interest, and was 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, 2023.

Level 3 Fair Value Asset Measurements at

June 30, 2023

September 30, 2023

Market Commodity

(In millions)

Balance, March 31, 2023 $ 3,503 $ 649 $ 4,152

Balance, June 30, 2023 $ 2,859 $ 886 $ 3,745

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

4 unchanged sentences

Transfers out of Level 3 ( 534 ) ( 19 ) ( 553 )

Ending balance, June 30, 2023 $ 2,859 $ 886 $ 3,745

* Includes increase in unrealized gains of $ 780 million relating to Level 3 assets still held at June 30, 2023.

Ending balance, September 30, 2023 $ 2,872 $ 890 $ 3,762

* Includes increase in unrealized gains of $ 438 million relating to Level 3 assets still held at September 30, 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 three months ended June 30, 2023.

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, 2023.

Level 3 Fair Value Liability Measurements at

June 30, 2023

September 30, 2023

Payables Commodity

Losses Debt Conversion Option

(In millions)

Balance, March 31, 2023 $ 57 $ 455 $ 1 $ 513

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

4 535 ( 1 ) 538

Balance, June 30, 2023 $ 65 $ 791 $ 856

Total increase (decrease) in net realized/unrealized losses included in cost of products sold* ( 3 ) 290 287

Purchases 29 — 29

Sales — — — —

Settlements — ( 529 ) ( 529 )

1 unchanged sentence

Transfers out of Level 3 ( 4 ) ( 13 ) ( 17 )

Ending balance, June 30, 2023 $ 65 $ 791 $ — $ 856

* Includes increase in unrealized losses of $ 545 million relating to Level 3 liabilities still held at June 30, 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 June 30, 2022.

Ending balance, September 30, 2023 $ 87 $ 549 $ 636

* Includes increase in unrealized losses of $ 297 million relating to Level 3 liabilities still held at September 30, 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 September 30, 2022.

Level 3 Fair Value Asset Measurements at

June 30, 2022

September 30, 2022

Market Commodity

(In millions)

Balance, March 31, 2022 $ 3,959 $ 828 $ 4,787

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

Total increase (decrease) in net realized/unrealized gains included in cost of products sold* 315 345 660

4 unchanged sentences

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

Ending balance, June 30, 2022 $ 3,245 $ 880 $ 4,125

* Includes increase in unrealized gains of $ 253 million relating to Level 3 assets still held at June 30, 2022.

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

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 three months ended June 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 September 30, 2022.

Level 3 Fair Value Liability Measurements at

June 30, 2022

September 30, 2022

Payables Commodity

1 unchanged sentence

(In millions)

Balance, March 31, 2022 $ 53 $ 1,856 $ 30 $ 1,939

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

4 unchanged sentences

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

Ending balance, June 30, 2022 $ 55 $ 960 $ 11 $ 1,026

* Includes increase in unrealized losses of $ 294 million relating to Level 3 liabilities still held at June 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 six months ended June 30, 2023.

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 nine months ended September 30, 2023.

Level 3 Fair Value Asset Measurements at

June 30, 2023

September 30, 2023

Market Commodity

7 unchanged sentences

Transfers out of Level 3 ( 1,622 ) ( 77 ) ( 1,699 )

Ending balance, June 30, 2023 $ 2,859 $ 886 $ 3,745

* Includes increase in unrealized gains of $ 1.4 billion relating to Level 3 assets still held at June 30, 2023.

Ending balance, September 30, 2023 $ 2,872 $ 890 $ 3,762

* Includes increase in unrealized gains of $ 1.8 billion relating to Level 3 assets still held at September 30, 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 six months ended June 30, 2023.

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, 2023.

Level 3 Fair Value Liability Measurements at

June 30, 2023

September 30, 2023

Payables Commodity

3 unchanged sentences

Total increase (decrease) in net realized/unrealized losses included in cost of products sold and interest expense* ( 1 ) 1,068 ( 6 ) 1,061

Purchase 7 — — 7

Sales — — — —

Purchases 36 — — 36

Settlements ( 34 ) ( 1,236 ) — ( 1,270 )

1 unchanged sentence

Transfers out of Level 3 ( 4 ) ( 21 ) — ( 25 )

Ending balance, June 30, 2023 $ 65 $ 791 $ — $ 856

* Includes increase in unrealized losses of $ 0.8 billion relating to Level 3 liabilities still held at June 30, 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 six months ended June 30, 2022.

Ending balance, September 30, 2023 $ 87 $ 549 $ — $ 636

* Includes increase in unrealized losses of $ 1.1 billion relating to Level 3 liabilities still held at September 30, 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 nine months ended September 30, 2022.

Level 3 Fair Value Asset Measurements at

June 30, 2022

September 30, 2022

Market Commodity

7 unchanged sentences

Transfers out of Level 3 ( 882 ) ( 193 ) ( 1,075 )

Ending balance, June 30, 2022 $ 3,245 $ 880 $ 4,125

* Includes increase in unrealized gains of $ 1.7 billion relating to Level 3 assets still held at June 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 six months ended June 30, 2022.

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.

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.

Level 3 Fair Value Liability Measurements at

June 30, 2022

September 30, 2022

Payables Commodity

8 unchanged sentences

Transfers out of Level 3 — ( 182 ) — ( 182 )

Ending balance, June 30, 2022 $ 55 $ 960 $ 11 $ 1,026

* Includes increase in unrealized losses of $ 1.7 billion relating to Level 3 liabilities still held at June 30, 2022.

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.

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.

5 unchanged sentences

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 June 30, 2023 and December 31, 2022.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

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, 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 June 30, 2023 is a weighted average 21.7 % of the total price for assets and 21.5 % of the total price for liabilities.

As an example, for Level 3 inventories with basis, the unobservable component as of September 30, 2023 is a weighted average 28.1 % of the total price for assets and 47.3 % of the total price for liabilities.

Weighted Average % of Total Price

June 30, 2023 December 31, 2022

September 30, 2023 December 31, 2022

Component Type Assets Liabilities Assets Liabilities

5 unchanged sentences

Transportation cost 12.0 % 21.5 % 13.5 % 3.7 %

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Fair Value Measurements (Continued)

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.

10 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 June 30, 2023 and December 31, 2022.

June 30, 2023 December 31, 2022

The following table sets forth the fair value of derivatives not designated as hedging instruments as of September 30, 2023 and December 31, 2022.

September 30, 2023 December 31, 2022

Assets Liabilities Assets Liabilities

4 unchanged sentences

Total $ 1,938 $ 1,371 $ 1,491 $ 1,529

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 six months ended June 30, 2023 and 2022.

Archer-Daniels-Midland Company

1 unchanged sentence

Derivative Instruments and Hedging Activities (Continued)

Other (income) expense - net

1 unchanged sentence

(In millions) Revenues products sold expense

Three Months Ended June 30, 2023

Three Months Ended September 30, 2023

Consolidated Statement of Earnings $ 21,695 $ 19,885 $ ( 35 ) $ 155

2 unchanged sentences

Commodity Contracts — 168 — —

Debt Conversion Option — — — 1

Total gain (loss) recognized in earnings $ 1 $ 130 $ 96 $ — $ 227

Three Months Ended June 30, 2022

Three Months Ended September 30, 2022

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

7 unchanged sentences

(In millions) Revenues products sold expense

Six Months Ended June 30, 2023

Nine Months Ended September 30, 2023

Consolidated Statement of Earnings $ 70,957 $ 65,184 $ ( 116 ) $ 482

4 unchanged sentences

Total gain (loss) recognized in earnings $ ( 25 ) $ 853 $ 123 $ 6 $ 957

Six Months Ended June 30, 2022

Nine Months Ended September 30, 2022

Consolidated Statement of Earnings $ 75,617 $ 69,809 $ ( 183 ) $ 262

4 unchanged sentences

Total gain (loss) recognized in earnings $ ( 30 ) $ 449 $ 414 $ 12 $ 845

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.

Archer-Daniels-Midland Company

1 unchanged sentence

Derivative Instruments and Hedging Activities (Continued)

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 on the purpose of the contract.

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 June 30, 2023 and December 31, 2022.

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

8 unchanged sentences

During the past 12 months, the Company hedged between 17 % and 34 % of its monthly grind.

At June 30, 2023, the Company had designated hedges representing between 1 % and 34 % of its anticipated monthly grind of corn for the next 12 months.

At September 30, 2023, the Company had designated hedges representing between 5 % 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 June 30, 2023, the Company had no hedges related to ethanol sales under these programs.

During the past 12 months and as of September 30, 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 61 % and 89 % of the anticipated monthly soybean crush for soybean purchases and soybean meal and oil sales at the designated facilities.

At June 30, 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.

At September 30, 2023, the Company had designated hedges representing between 32 % and 61 % 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 70 % and 85 % of the anticipated monthly natural gas consumption at the designated facilities.

At June 30, 2023, the Company had designated hedges representing between 37 % and 78 % of the anticipated monthly natural gas consumption over the next 12 months.

As of June 30, 2023 and December 31, 2022, the Company had after-tax losses of $ 91 million and $ 17 million in AOCI, respectively, related to gains and losses from these programs.

The Company expects to recognize $ 91 million of the June 30, 2023 after-tax losses in its consolidated statement of earnings during the next 12 months.

Interest Rate Contracts

At September 30, 2023, the Company had designated hedges representing between 37 % and 56 % of the anticipated monthly natural gas consumption over the next 12 months.

As of September 30, 2023 and December 31, 2022, the Company had after-tax gains of $ 14 million and after-tax losses of $ 17 million in AOCI, respectively, related to gains and losses from these programs.

The Company expects to recognize $ 14 million of the September 30, 2023 after-tax gains in its consolidated statement of earnings during the next 12 months.

Archer-Daniels-Midland Company

1 unchanged sentence

Derivative Instruments and Hedging Activities (Continued)

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.

5 unchanged sentences

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 $ 0.8 billion as of June 30, 2023 and December 31, 2022, and foreign exchange forwards with an aggregate notional amount of $ 3.2 billion and $ 2.5 billion as of June 30, 2023 and December 31, 2022, respectively.

As of June 30, 2023 and December 31, 2022, the Company had after-tax gains of $ 16 million and $ 79 million in AOCI, respectively, related to foreign exchange gains and losses from net investment hedge transactions.

The Company executed USD-fixed to Euro-fixed cross-currency swaps with an aggregate notional amount of $ 0.8 billion as of September 30, 2023 and December 31, 2022, and foreign exchange forwards with an aggregate notional amount of $ 2.7 billion and $ 2.5 billion as of September 30, 2023 and December 31, 2022, respectively.

As of September 30, 2023 and December 31, 2022, the Company had after-tax gains of $ 90 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.

The following table sets forth the fair value of derivatives designated as hedging instruments as of June 30, 2023 and December 31, 2022.

June 30, 2023 December 31, 2022

The following table sets forth the fair value of derivatives designated as hedging instruments as of September 30, 2023 and December 31, 2022.

September 30, 2023 December 31, 2022

Assets Liabilities Assets Liabilities

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Total $ 112 $ — $ 213 $ 20

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 six months ended June 30, 2023 and 2022.

Archer-Daniels-Midland Company

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Derivative Instruments and Hedging Activities (Continued)

Cost of products sold

(In millions)

Three Months Ended June 30, 2023

(In millions) Revenues

Three Months Ended September 30, 2023

Consolidated Statement of Earnings $ 21,695 $ 19,885

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Total gain (loss) recognized in earnings $ — $ ( 132 ) $ ( 132 )

Three Months Ended June 30, 2022

Three Months Ended September 30, 2022

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

2 unchanged sentences

Commodity Contracts $ — $ 117

Interest Contracts 1 —

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

Cost of products sold

(In millions)

Six Months Ended June 30, 2023

(In millions) Revenues

Nine Months Ended September 30, 2023

Consolidated Statement of Earnings $ 70,957 $ 65,184

3 unchanged sentences

Total gain (loss) recognized in earnings $ — $ ( 277 ) $ ( 277 )

Six Months Ended June 30, 2022

Nine Months Ended September 30, 2022

Consolidated Statement of Earnings $ 75,617 $ 69,809

2 unchanged sentences

Commodity Contracts $ — $ 365

Interest Contracts 1 —

Total gain (loss) recognized in earnings $ 1 $ 365 $ 366

Other Net Investment Hedging Strategies

The Company has designated € 0.9 billion and € 1.3 billion of its outstanding long-term debt and commercial paper borrowings at June 30, 2023 and December 31, 2022, respectively, as hedges of its net investment in a foreign subsidiary.

As of June 30, 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)

Derivative Instruments and Hedging Activities (Continued)

Other Net Investment Hedging Strategies

The Company has designated € 0.7 billion and € 1.3 billion of its outstanding long-term debt and commercial paper borrowings at September 30, 2023 and December 31, 2022, respectively, as hedges of its net investment in a foreign subsidiary.

As of September 30, 2023 and December 31, 2022, the Company had after-tax gains of $ 240 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.

Other Current Assets

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

June 30, December 31,

September 30, December 31,

(In millions)

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(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 at June 30, 2023 and December 31, 2022.

Interest earned on financing receivables of $ 4 million and $ 10 million for the three and six months ended June 30, 2023, respectively, and $ 4 million and $ 8 million for the three and six months ended June 30, 2022, respectively, is included in interest and investment income in the consolidated statements of earnings.

The amounts are reported net of allowances of $ 3 million at September 30, 2023 and December 31, 2022.

Interest earned on financing receivables of $ 4 million and $ 14 million for the three and nine months ended September 30, 2023, respectively, and $ 3 million and $ 11 million for the three and nine months ended September 30, 2022, respectively, is included in interest and investment income in the consolidated statements of earnings.

Archer-Daniels-Midland Company

2 unchanged sentences

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

June 30, December 31,

September 30, December 31,

(In millions)

11 unchanged sentences

In June 2023, the Company redeemed € 600 million aggregate principal amount of 1.750 % Notes due 2023.

During the six months ended June 30, 2023, Archer Daniels Midland Singapore, Pte.

In August 2023, the Company redeemed $ 300 million aggregate principal amount of zero coupon exchangeable bonds due 2023.

During the nine months ended September 30, 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 general corporate purposes.

At June 30, 2023, 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 June 30, 2023, the Company had lines of credit, including the accounts receivable securitization programs described below, totaling $ 13.6 billion, of which $ 11.3 billion was unused.

At September 30, 2023, the fair value of the Company’s long-term debt was below the carrying value by $ 0.7 billion, as estimated using quoted market prices (a Level 2 measurement under applicable accounting standards).

At September 30, 2023, the Company had lines of credit, including the accounts receivable securitization programs described below, totaling $ 13.5 billion, of which $ 11.7 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 June 30, 2023.

and European commercial paper borrowing programs, against which there was $ 10 million of commercial paper outstanding at September 30, 2023.

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

The Programs provide the Company with up to $ 3.0 billion in funding resulting from the sale of accounts receivable with $ 0.9 billion unused capacity as of June 30, 2023.

The Company’s effective tax rate was 18.0 % and 17.0 % for the three and six months ended June 30, 2023, respectively, compared to 18.4 % and 17.4 % for the three and six months ended June 30, 2022, respectively.

The decrease in the rate was primarily due to the impact of discrete tax items.

The Programs provide the Company with up to $ 3.0 billion in funding resulting from the sale of accounts receivable with $ 1.3 billion unused capacity as of September 30, 2023.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

The Company’s effective tax rate was 20.1 % and 17.9 % for the three and nine months ended September 30, 2023, respectively, compared to 15.7 % and 16.9 % for the three and nine months ended September 30, 2022, respectively.

The increase in the rate was primarily due to the change in the geographic mix of forecasted pretax earnings.

On August 16, 2022, the U.S.

2 unchanged sentences

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

Notes to Consolidated Financial Statements (Continued)

Income Taxes (Continued)

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.

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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 June 30, 2023, these assessments totaled $ 3 million in tax and up to $ 18 million in interest (adjusted for variation in currency exchange rates).

As of September 30, 2023, these assessments totaled $ 3 million in tax and up to $ 13 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.

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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 June 30, 2023, this assessment was $ 88 million in tax and $ 33 million in interest (adjusted for variation in currency exchange rates).

As of September 30, 2023, this assessment was $ 86 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.

2 unchanged sentences

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

As of June 30, 2023, the Company has accrued its best estimate of what it believes will be the likely outcome of the litigation.

As of September 30, 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 six months ended June 30, 2023 and the reclassifications out of AOCI for the three and six months ended June 30, 2023 and 2022:

Three months ended June 30, 2023

The following tables set forth the changes in AOCI by component for the three and nine months ended September 30, 2023 and the reclassifications out of AOCI for the three and nine months ended September 30, 2023 and 2022:

Three months ended September 30, 2023

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

(In millions)

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

Balance at June 30, 2023 $ ( 2,402 ) $ 39 $ ( 63 ) $ ( 7 ) $ ( 2,433 )

Other comprehensive income (loss) before reclassifications ( 393 ) ( 4 ) 3 5 ( 389 )

3 unchanged sentences

Net of tax amount ( 280 ) 100 ( 3 ) 5 ( 178 )

Balance at June 30, 2023 $ ( 2,402 ) $ 39 $ ( 63 ) $ ( 7 ) $ ( 2,433 )

Six months ended June 30, 2023

Balance at September 30, 2023 $ ( 2,682 ) $ 139 $ ( 66 ) $ ( 2 ) $ ( 2,611 )

Nine months ended September 30, 2023

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

6 unchanged sentences

Net of tax amount ( 60 ) ( 9 ) ( 44 ) 11 ( 102 )

Balance at June 30, 2023 $ ( 2,402 ) $ 39 $ ( 63 ) $ ( 7 ) $ ( 2,433 )

Balance at September 30, 2023 $ ( 2,682 ) $ 139 $ ( 66 ) $ ( 2 ) $ ( 2,611 )

A rcher-Daniels-Midland Company

2 unchanged sentences

Amount reclassified from AOCI

Three months ended June 30, Six months ended June 30, Affected line item in the consolidated statements of earnings

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

Details about AOCI components 2023 2022 2023 2022

1 unchanged sentence

Deferred loss (gain) on hedging activities

$ — $ ( 1 ) $ — $ ( 1 ) Revenues

132 ( 117 ) 277 ( 365 ) Cost of products sold

12 unchanged sentences

The following table sets forth the items in other (income) expense:

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2023 2022 2023 2022

3 unchanged sentences

Other (Income) Expense - Net $ ( 35 ) $ ( 67 ) $ ( 116 ) $ ( 183 )

Gains on sales of assets in the three and six months ended June 30, 2023 and 2022 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 and six months ended June 30, 2023 included the non-service components of net pension benefit income of $ 5 million and $ 9 million, respectively, net foreign exchange gains, and net other income.

Other - net in the three and six months ended June 30, 2022 included the non-service components of net pension benefit income of $ 6 million and $ 12 million, respectively, a $ 50 million payment from the USDA Biofuel Producer Recovery Program, net foreign exchange gains, and net other expense.

Gains on sales of assets in the three and nine months ended September 30, 2023 and 2022 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 and nine months ended September 30, 2023 included the non-service components of net pension benefit income of $ 4 million and $ 13 million, respectively, net foreign exchange gains, and net other income.

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, net foreign exchange gains, and net other income.

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

Archer-Daniels-Midland Company

9 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, 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 Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

(In millions) 2023 2022 2023 2022

29 unchanged sentences

Segment Information (Continued)

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

(In millions) 2023 2022 2023 2022

5 unchanged sentences

Specified Items:

Gains on sales of assets (1)

Impairment and restructuring charges and contingency provisions (2)

Gain (loss) on sales of assets (1)

( 2 ) 29 10 30

Impairment and restructuring charges and settlement contingencies (2)

( 69 ) ( 49 ) ( 190 ) ( 76 )

Total segment operating profit 1,421 1,559 4,665 4,938

1 unchanged sentence

Earnings before income taxes $ 1,031 $ 1,230 $ 3,560 $ 4,020

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

(2) Current quarter and year-to-date charges were related to the impairment of certain long-lived assets and intangibles, restructuring, and a contingent loss provision related to import duties.

Prior-year quarter and year-to-date charges were related to the impairment of certain Ukraine assets.

Prior year-to-date charges was partially offset by an insurance settlement.

(1) Consists of gains (losses) related to the sale of certain assets in all periods presented.

(2) Current quarter and year-to-date charges were related to the impairment of certain long-lived assets and intangibles and restructuring, partially offset by a contingency loss adjustment.

Also included in the current year-to-date is a contingent loss provision related to import duties.

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

Asset Impairment, Exit, and Restructuring Costs

Asset impairment, exit, and restructuring costs in the three and six months ended June 30, 2023 consisted of $ 43 million and $ 46 million of impairments related to certain long-lived assets and intangibles, respectively, and $ 17 million and $ 21 million of restructuring charges, respectively.

Asset impairment, exit, and restructuring costs in the three and six months ended June 30, 2022 consisted of immaterial charges.

Asset impairment, exit, and restructuring costs in the three and nine months ended September 30, 2023 consisted of impairments related to certain long-lived assets and intangibles of $ 74 million and $ 120 million, respectively, and restructuring charges of $ 3 million and $ 21 million, respectively, presented as specified items within segment operating profit, and restructuring charges in Corporate of $ 2 million and $ 5 million, respectively.

Intangibles impairments in the three and nine months ended September 30, 2023 of $ 37 million and $ 62 million, respectively, was primarily related to discontinued animal nutrition trademarks in the Nutrition segment.

Asset impairment, exit, and restructuring costs in the three and nine months ended September 30, 2022 consisted of impairments related to certain long-lived assets of $ 16 million and $ 20 million, respectively, and restructuring charges of $ 12 million and $ 12 million, respectively, presented as specified items within segment operating profit, and a restructuring adjustment in Corporate of $ 2 million in the nine months ended September 30, 2022.

Sale of Accounts Receivable

2 unchanged sentences

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

In exchange, ADM Receivables receives a cash payment of up to $ 1.9 billion, as amended, for the accounts receivable transferred.

In exchange, ADM Receivables receives a cash payment of up to $ 1.9 billion for the accounts receivable transferred.

The First Program terminates on May 17, 2024, unless extended.

10 unchanged sentences

The Company acts as a servicer for the transferred receivables.

At June 30, 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.

As of June 30, 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 $ 2.1 billion and $ 2.6 billion, respectively.

Total receivables sold were $ 28.8 billion and $ 29.3 billion for the six months ended June 30, 2023 and 2022, respectively.

Cash collections from customers on receivables sold were $ 28.4 billion and $ 28.2 billion for the six months ended June 30, 2023 and 2022, respectively.

As of June 30, 2023 and December 31, 2022, receivables pledged as collateral to the Purchasers was $ 0.8 billion and $ 0.6 billion, respectively.

Transfers of receivables under the Programs resulted in an expense for the loss on sale of $ 11 million and $ 34 million for the three and six months ended June 30, 2023, respectively, and $ 3 million and $ 8 million for the three and six months ended June 30, 2022, respectively, which is classified as selling, general, and administrative expenses in the consolidated statements of earnings.

At September 30, 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.

As of September 30, 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 $ 1.7 billion and $ 2.6 billion, respectively.

Total receivables sold were $ 41.2 billion and $ 42.9 billion for the nine months ended September 30, 2023 and 2022, respectively.

Cash collections from customers on receivables sold were $ 40.7 billion and $ 42.1 billion for the nine months ended September 30, 2023 and 2022, respectively.

As of September 30, 2023 and December 31, 2022, receivables pledged as collateral to the Purchasers was $ 1.3 billion and $ 0.6 billion, respectively.

Transfers of receivables under the Programs resulted in an expense for the loss on sale of $ 11 million and $ 45 million for the three and nine months ended September 30, 2023, respectively, and $ 4 million and $ 12 million for the three and nine months ended September 30, 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.

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Finance B.V., a commodity derivative brokerage service provider, subject to required regulatory approvals;

• the announcement in June 2023 of the opening of a new Customer Creation and Innovation Center in Manchester, England, serving as a United Kingdom (UK) hub for food innovation and building upon ADM’s strong presence in the UK;

• the launch in July 2023 of a growth initiative of its re:generations™ regenerative agriculture program that will drive expansion to cover 2 million acres across 18 U.S.

57 unchanged sentences

The Black Sea Grain Initiative, an agreement that allowed Ukraine to export grain and other food products, expired on July 17, 2023.

In September 2023, a new alternative shipping corridor in the Black Sea took effect with Ukraine setting up temporary route from ports in Greater Odessa.

For more information, refer to Part I, “Item 1A.

Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

As of June 30, 2023, ADM’s assets in Ukraine consisted primarily of current assets that were less than 0.4% of the Company’s total current assets and an immaterial amount of non-current assets.

As of September 30, 2023, ADM’s assets in Ukraine consisted primarily of current assets that were less than 1% of the Company’s total current assets and an immaterial amount of non-current assets.

Of the total current assets in Ukraine, the majority related to inventories that represented less than 1% of ADM’s total inventories.

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

Market Factors Influencing Operations or Results in the Three Months Ended June 30, 2023

Market Factors Influencing Operations or Results in the Three Months Ended September 30, 2023

The Company is subject to a variety of market factors which affect the Company's operating results.

In Ag Services and Oilseeds, supply has been impacted by market dislocations such as the Russian-Ukraine war, a record world soybean production, and extreme drought conditions in Argentina.

Inflationary pressures and declining natural gas prices impacted the entire value chain.

Crushing was impacted by sustainable biofuel demand and protein consumption around the globe.

In Refined Products and Other, margins were driven by strong oil demand, elevated oil values that were supported by biofuels demand driven by favorable blend economics due to historically low distillate levels.

Mediocre growth in mandated renewable volume obligations for 2023 to 2025 drove further market volatility.

In Ag Services and Oilseeds, supply has been impacted by market dislocations driven by geopolitical uncertainty, longer Brazilian export season, and low North American water levels.

Crushing was impacted by renewable fuel demand, adequate crop supplies, and protein consumption around the globe.

In Refined Products and Other, margins were driven by renewable fuel demand and biodiesel market volatility.

In Carbohydrate Solutions, demand for starches and sweeteners remained solid with margins remaining steady across the entire portfolio.

Industry ethanol inventories were restrained as production slowed due to seasonal maintenance at processing plants and strong domestic demand heading into the summer driving season.

Solid export demand for ethanol supported the improved balance between supply and demand.

Ethanol’s extremely favorable price as an oxygenate relative to competing petroleum-based oxygenates supported demand.

Discretionary blending was supported by the ethanol blend economics on the domestic front.

remained as the main supplier for ethanol exports as the world dynamics for sugar shifted Brazil to favor sugar production over ethanol.

In Nutrition, demand was softer in a few food and beverage product categories.

Human Nutrition was impacted by inflation which drove lower demand especially in higher priced product categories in the food, beverage, and dietary supplement segment and impacted volumes in flavors, flavor systems, emulsifiers, bioactives, and alternative proteins.

In Animal Nutrition, amino acids margins were pressured due to competition returning to market and production cost inflation.

In Animal Nutrition, amino acids margins were pressured due to competition returning to the market and production cost inflation.

Results were also adversely affected by weak demand in other product lines due to decreased market for feed, particularly in North America and Europe, Middle East, and Africa (EMEA), and animal disease impacts on farms, and some premix and additives customers cutting products out of formulation due to increased ingredient, freight, and energy costs.

Increased competition in Latin America also contributed to the weak demand in that region.

Three Months Ended June 30, 2023 Compared to Three Months Ended June 30, 2022

Three Months Ended September 30, 2023 Compared to Three Months Ended September 30, 2022

Net earnings attributable to controlling interests decreased $0.2 billion from $1.0 billion to $0.8 billion.

Segment operating profit decreased $0.3 billion from $1.8 billion to $1.5 billion and included a net charge of $103 million consisting of asset impairment and restructuring charges of $114 million and a gain on the sale of certain assets of $11 million.

Included in segment operating profit in the prior-year quarter was a net charge of $9 million consisting of asset impairment charges.

Adjusted segment operating profit (a non-GAAP measure) decreased $0.2 billion to $1.6 billion due primarily to lower results in Crushing, Wilmar, Ag Services, Carbohydrate Solutions, and Animal Nutrition, partially offset by higher results in Refined Products and Other and Other Business.

Corporate results in the current quarter were a net charge of $393 million and included a mark-to-market gain of $1 million on the conversion option of the exchangeable bonds issued in August 2020.

Segment operating profit decreased $0.1 billion from $1.6 billion to $1.4 billion and included a net charge of $71 million consisting of asset impairment and restructuring charges and a contingency loss adjustment totaling $69 million and a loss on the sale of certain assets of $2 million.

Included in segment operating profit in the prior-year quarter was a net charge of $20 million consisting of charges totaling $49 million related to the impairment of certain assets, restructuring, and a contingency/settlement, partially offset by gains on the sale of certain assets of $29 million.

Adjusted segment operating profit (a non-GAAP measure) decreased $0.1 billion to $1.5 billion due primarily to lower results in Wilmar, Crushing, Ag Services, and Nutrition, partially offset by higher results in Carbohydrate Solutions, Refined Products and Other, and Other Business.

Corporate results in the current quarter were a net charge of $390 million.

Corporate results in the prior-year quarter were a net charge of $329 million and included a mark-to-market gain of $8 million on the conversion option of the exchangeable bonds issued in August 2020.

Income tax expense decreased $75 million to $204 million.

The effective tax rate for the quarter ended June 30, 2023 was 18.0% compared to 18.4% for the quarter ended June 30, 2022.

The decrease in the rate was primarily due to the impact of discrete tax items.

Income tax expense increased $14 million to $207 million.

The effective tax rate for the quarter ended September 30, 2023 was 20.1% compared to 15.7% for the quarter ended September 30, 2022.

The increase in the rate was primarily due to changes in the geographic mix of forecasted pretax earnings.

Analysis of Statements of Earnings

1 unchanged sentence

Three Months Ended

September 30,

(In thousands) 2023 2022 Change

3 unchanged sentences

The Company generally operates its production facilities, on an overall basis, at or near capacity, adjusting facilities individually, as needed, to react to the current margin environment and seasonal local supply and demand conditions.

The overall increase in oilseeds processed volumes was primarily related to improved crush rates in the current quarter compared to lower crush rates in the prior-year quarter resulting from unplanned downtime due to logistics and staffing issues.

The overall decrease in corn processed volumes was related to unplanned downtime at a corn germ plant, lower export volumes in North America, and reduced grind in EMEA due to weaker demand.

The overall increase in oilseeds processed volumes was primarily related to improved crush rates in the current quarter compared to decreased crush rates in the prior-year quarter resulting from the decline in canola crop due to the drought condition in North America and a temporarily idled facility in Paraguay due to reduced crop.

The overall increase in corn processed volumes was related to higher grind for fuel alcohol, partially offset by lower export volumes for amino acids and unplanned downtime from the recent Decatur, Illinois incident.

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

1 unchanged sentence

Three Months Ended

September 30,

2023 2022 Change

17 unchanged sentences

Revenues decreased $3.0 billion to $21.7 billion due to lower sales prices ($4.2 billion), partially offset by higher sales volumes ($1.2 billion).

Lower sales prices of soybeans, oils, biodiesel, and corn and lower sales volumes of alcohol, cotton, wheat, and corn were partially offset by higher sales volumes of soybeans and farming materials.

Lower sales prices of oils, corn, soybeans, biodiesel, farming materials, wheat, canola seed, and meal and lower sales volumes of corn and milled rice, were partially offset by higher sales volumes of biodiesel, meal, oils, soybeans, canola seed, and farming materials.

Ag Services and Oilseeds revenues decreased 14% to $16.5 billion due to lower sales prices ($4.3 billion), partially offset by higher sales volumes ($1.6 billion).

Carbohydrate Solutions revenues decreased 10% to $3.4 billion due to lower sales volumes ($0.5 billion), partially offset by higher sales prices ($0.1 billion).

Nutrition revenues decreased 7% to $1.9 billion due to lower sales volumes ($0.3 billion), partially offset by higher sales prices ($0.2 million).

Cost of products sold decreased $1.9 billion to $23.3 billion due principally to lower average commodity costs partially offset by higher manufacturing expenses.

Manufacturing expenses increased $0.1 billion to $1.8 billion due principally to increases in maintenance expenses, salaries and benefit costs, commercial service fees, energy costs, and lease expense.

Foreign currency translation increased revenues and cost of products sold by $11 million and $13 million, respectively.

Gross profit decreased $0.2 billion or 10%, to $1.9 billion due principally to lower results in Crushing ($245 million), Carbohydrate Solutions ($104 million), Ag Services ($46 million), and Animal Nutrition ($38 million), partially offset by higher results in Refined Products and Other ($221 million).

Carbohydrate Solutions revenues decreased 7% to $3.3 billion due to lower sales volumes ($0.2 billion).

Nutrition revenues decreased 4% to $1.8 billion due to lower sales volumes ($0.2 billion), partially offset by higher sales prices ($0.1 billion).

Cost of products sold decreased $3.0 billion to $19.9 billion due principally to lower average commodity costs.

Manufacturing expenses increased $19 million to $1.8 billion due principally to increases in salaries and benefit costs and commercial service fees, partially offset by decreases in maintenance expenses and operating supplies.

Foreign currency translation increased revenues and cost of products sold by $0.3 billion.

Gross profit was unchanged at $1.8 billion.

Higher results in Carbohydrate Solutions ($139 million) and Refined Products and Other ($34 million) were offset by lower results in Ag Services ($71 million), Human Nutrition ($63 million), and Crushing ($55 million).

These factors are explained in the segment operating profit discussion on page 43.

Selling, general, and administrative expenses increased $27 million to $841 million due primarily to higher salaries and benefit costs and higher professional and financing fees, partially offset by decreased provisions for bad debt.

Selling, general, and administrative expenses decreased $3 million to $815 million due primarily to lower provisions for bad debt, partially offset by higher salaries and benefit costs.

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

Asset impairment, exit, and restructuring costs increased $51 million to $79 million.

Charges in the current quarter consisted of $43 million of impairments related to certain long-lived assets and intangibles and $17 million of restructuring.

Charges in the prior-year quarter were not material.

Equity in earnings of unconsolidated affiliates decreased $41 million to $151 million due primarily to lower earnings from the Company’s investments in Wilmar and Stratas Foods LLC.

Charges in the current quarter consisted of $74 million of impairments related to certain long-lived assets and intangibles and $3 million of restructuring, presented as specified items within segment operating profit, and restructuring of $2 million in Corporate.

Intangibles impairments in the current quarter of $37 million was related to discontinued animal nutrition trademarks in the Nutrition segment.

Charges in the prior-year quarter consisted of $16 million of impairments related to long-lived assets and $12 million of restructuring, presented as specified items within segment operating profit.

Equity in earnings of unconsolidated affiliates decreased $127 million to $83 million due primarily to lower earnings from the Company’s investments in Wilmar and Skyland Grain, LLC.

Interest and investment income increased $67 million to $152 million due primarily to higher interest income driven by higher interest rates.

Interest expense increased $107 million to $180 million due primarily to increased short-term rates on customer deposit balances in ADM Investor Services and on the Company’s commercial paper borrowing programs and increased interest expense from the new debt issued in the current quarter.

Interest expense in the current quarter also included a $1 million mark-to-market gain adjustment related to the conversion option of the exchangeable bonds issued in August 2020, compared to a $19 million mark-to-market gain adjustment in the prior-year quarter.

Interest expense increased $58 million to $155 million due primarily to increased short-term rates on customer deposit balances in ADM Investor Services and on the Company’s commercial paper borrowing programs.

Interest expense in the prior-year quarter also included a mark-to-market gain adjustment of $8 million related to the conversion option of the exchangeable bonds issued in August 2020.

Other income-net decreased $32 million to $35 million.

Income in the current quarter included gains on disposals of individually insignificant assets in the ordinary course of business, the non-service components of net pension benefit income, net foreign exchange gains, and net other income.

Income in the prior-year quarter included gains on disposals of individually insignificant assets in the ordinary course of business, the non-service components of net pension benefit income, a $50 million payment from USDA Biofuel Producer Recovery Program, and net foreign exchange gains, partially offset by net other expense.

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

1 unchanged sentence

Three Months Ended

September 30,

Segment Operating Profit (Loss) 2023 2022 Change

15 unchanged sentences

Specified Items:

Gains on sales of assets and businesses 11 — 11

Asset impairment, restructuring, and settlement charges (114) (9) (105)

Gain (loss) on sales of assets and businesses (2) 29 (31)

Impairment, restructuring, and settlement charges, net of a contingency adjustment (69) (49) (20)

Total Specified Items (71) (20) (51)

8 unchanged sentences

Ag Services and Oilseeds operating profit decreased 21%.

Ag Services results were slightly lower than the strong second quarter of 2022.

South American origination results were higher year-over-year, as the business delivered record volumes and higher margins on strong export demand, leveraging strategic investments in port capacity to capitalize on the record Brazilian soybean crop.

Results for North America origination were slightly lower year-over-year, driven by lower export demand due to strong South America supplies.

Execution in destination marketing as well as effective risk management continued to deliver strong Global Trade results, though lower than the prior year’s record quarter.

Crushing results were much lower than the record results from the prior-year quarter.

Global soy crush margins remained strong, but lower year-over-year in all regions due to softer demand for both meal and oil, and a tight U.S.

soybean carryout.

This was partially offset by strong softseed margins and higher volumes, supported by a strong Canadian canola crop and utilization of flex capacity in EMEA.

Additionally, negative mark-to-market timing effects that are expected to reverse as contracts execute in future periods, affected the results in the current quarter.

Refined Products and Other results were significantly higher than the prior-year quarter, achieving a record second quarter.

North America results were higher, driven by strong food oil demand and improved biodiesel volumes.

In EMEA, strong export demand for biodiesel and domestic food oil demand supported stronger margins.

Additionally, positive mark-to-market timing effects that expected to reverse as contracts execute in future periods, contributed to the results in the current quarter.

Equity earnings from Wilmar were lower versus the second quarter of 2022.

Carbohydrate Solutions operating profit decreased 36%.

Starches and Sweeteners, including ethanol production from the wet mills, capitalized on a solid demand environment during the quarter.

North America starches and sweeteners delivered volumes and margins similar to the prior year quarter and ethanol margins were solid as industry stocks moderated, though lower relative to the prior-year quarter.

Results were negatively impacted due to unplanned downtime at one of the corn germ plants.

In EMEA, the business effectively managed margins to deliver improved results.

The global wheat milling business posted higher margins, supported by steady customer demand.

Vantage Corn Processors results were lower due to lower year-over-year ethanol margins and absence of the prior-year quarter’s $50 million payment from the USDA Biofuel Producer Recovery Program.

Ag Services results were lower than the strong third quarter of 2022.

South American origination results were higher year-over-year, as the business delivered significantly higher volumes and margins on strong export demand.

Results for North America origination were lower year-over-year, driven by shift of exports to South America.

Effective risk management and higher volumes and margins in global trade led to strong results, however, lower year-over-year.

The current quarter also included a $48 million insurance settlement related to damages from Hurricane Ida.

Crushing results were lower than the prior-year’s record third quarter.

Global soy crush margins remained robust, but lower than the strong levels of the prior-year quarter.

In EMEA, the business continued to optimize its flex capacity to higher margin softseeds, in-line with market opportunities.

Positive mark-to-market timing effects contributed to the current quarter’s results, however, lower than the net positive impacts from the prior-year quarter.

Refined Products and Other results were higher than the prior-year quarter.

EMEA results were higher year-over-year as strong export demand for biodiesel and domestic demand for food oil supported higher margins.

Additionally, net positive mark-to-market timing effects that are expected to reverse as contracts execute in future periods contributed to the current quarter’s results.

Equity earnings from Wilmar were significantly lower versus the third quarter of 2022.

Carbohydrate Solutions operating profit increased 49%.

Starches and Sweeteners results, including ethanol production from the wet mills, were higher year-over-year on a steady demand environment.

North America starches and sweeteners delivered higher margins on similar volumes versus the prior-year quarter and capitalized on a strong ethanol backdrop.

The global wheat milling business posted higher margins on similar volumes, supported by steady customer demand .

Vantage Corn Processors results were significantly higher year-over-year as the business executed on a robust demand and margin environment for ethanol.

Nutrition operating profit decreased 22%.

Human Nutrition results were in-line with the second quarter of 2022, as the business effectively managed a challenging demand environment.

Flavors results were significantly higher than the prior-year quarter due to improved mix and pricing in EMEA as well as improving demand in North America.

Specialty Ingredients results were lower year-over-year due to softer demand for plant-based proteins, particularly in the meat alternatives category in North America and Europe, partially offset by strong performance in texturants.

Health and Wellness results were similar versus the prior-year quarter as lower demand for fibers offset lower selling, general, and administrative expenses.

Animal Nutrition results were much lower compared to the prior-year quarter due to significantly lower contribution from amino acids, pockets of softer global feed demand affecting volumes, and continued demand fulfillment challenges and inventory losses in pet solutions.

Human Nutrition results were lower than the third quarter of 2022.

Flavors results were substantially higher than the prior-year quarter, driven by pricing actions in EMEA and strong win rates pipeline in North America.

Specialty Ingredients results were lower year-over-year due to continued lower market demand for plant-based proteins in meat alternatives, inventory adjustments, and unplanned downtime resulting from the recent Decatur, Illinois incident.

In Health and Wellness, a favorable impact related to a revised commercial agreement as well as stronger probiotics sales, led to higher results versus the prior-year quarter.

Animal Nutrition results were lower compared to the same quarter last year due to lower contributions from amino acids and persistent demand fulfillment challenges in pet solutions, partially offset by cost management optimization actions and improving volumes.

Other Business operating profit increased $28 million.

Higher net interest income drove improved earnings in ADM Investor Services.

Captive insurance results improved on premiums from new programs partially offset by increased claim settlements.

Captive insurance results were lower on higher claim settlements, partially offset by premiums from new programs.

Corporate results for the quarter are as follows:

Three Months Ended

September 30,

2023 2022 Change

4 unchanged sentences

Gain on debt conversion option — 8 (8)

Restructuring (charges) adjustment (3) 1 (4)

Other expense (1) 13 (14)

Restructuring charges (2) — (2)

Other income 11 (10) 21

Total Corporate $ (390) $ (329) $ (61)

Corporate results were a net charge of $390 million in the current quarter compared to a net charge of $329 million in the prior-

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

Corporate results were a net charge of $393 million in the current quarter compared to a net charge of $321 million in the prior-year quarter.

Interest expense-net increased $38 million due primarily to increased short-term rates on the Company’s commercial paper borrowing programs and increased interest expense from the new debt issued in the current quarter.

Unallocated corporate costs decreased $5 million as lower health insurance costs were partially offset by higher information technology costs.

Gain on debt conversion option was related to the mark-to-market adjustment of the conversion option of the exchangeable bonds issued in August 2020.

Other expense in the current quarter included foreign exchange losses and railroad maintenance expenses, partially offset by the non-service components of net pension benefit income of $5 million.

Other income in the prior-year quarter included the non-service components of net pension benefit income of $6 million, an investment revaluation gain of $3 million, and foreign exchange gains, partially offset by railroad maintenance expenses.

year quarter.

Interest expense-net increased $22 million due primarily to increased short-term rates on the Company’s commercial paper borrowing programs.

Unallocated corporate costs increased $47 million due primarily to higher information technology costs.

Gain on debt conversion option in the prior-year quarter was related to the mark-to-market adjustment of the conversion option of the exchangeable bonds issued in August 2020.

Other income in the current quarter included foreign exchange gains and the non-service components of net pension benefit income of $4 million, partially offset by railroad maintenance expenses of $26 million.

Other expense in the prior-year quarter included railroad maintenance expenses of $32 million, partially offset by the non-service components of net pension benefit income of $7 million and foreign exchange gains.

Non-GAAP Financial Measures

7 unchanged sentences

Adjusted EPS, adjusted EBITDA, and adjusted segment operating profit are not intended to replace or be an alternative to diluted EPS, earnings before income taxes, and segment operating profit, respectively, the most directly comparable amounts reported under GAAP.

The table below provides a reconciliation of diluted EPS to adjusted EPS for the three months ended June 30, 2023 and 2022.

Three months ended June 30,

The table below provides a reconciliation of diluted EPS to adjusted EPS for the three months ended September 30, 2023 and 2022.

Three months ended September 30,

In millions Per share In millions Per share

1 unchanged sentence

Net earnings and reported EPS (fully diluted) $ 821 $ 1.52 $ 1,031 $ 1.83

Gain on sales of assets and businesses - net of tax of $3 million (1)

Loss (gain) on sales of assets and businesses - net of tax of $0 million in 2023 and $7 million in 2022 (1)

2 — (22) (0.04)

1 unchanged sentence

— — (8) (0.01)

Impairment and restructuring charges and contingency provisions - net of tax of $24 million in 2023 and $2 million in 2022 (1)

Impairment, restructuring, and settlement charges, net of a contingency adjustment - net of tax of $17 million in 2023 and $9 million in 2022 (1)

54 0.10 40 0.07

Expenses related to acquisitions - net of tax of $1 million in 2022 (1)

Expenses related to acquisitions - net of tax of $0 million (1)

Certain discrete tax adjustments — — 7 0.01

4 unchanged sentences

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

The tables below provide a reconciliation of earnings before income taxes to adjusted EBITDA and adjusted EBITDA by segment for the three months ended June 30, 2023 and 2022.

The tables below provide a reconciliation of earnings before income taxes to adjusted EBITDA and adjusted EBITDA by segment for the three months ended September 30, 2023 and 2022.

Three months ended

September 30,

(In millions) 2023 2022 Change

2 unchanged sentences

Depreciation and amortization 261 260 1

Gains on sales of assets and businesses (11) — (11)

(Gain) loss on sales of assets and businesses 2 (29) 31

Expenses related to acquisitions 3 — 3

Railroad maintenance expenses 26 32 (6)

Impairment and restructuring charges and contingency provisions 117 8 109

Impairment, restructuring, and settlement charges, net of a contingency adjustment 71 49 22

Adjusted EBITDA $ 1,491 $ 1,639 $ (148)

Three months ended

September 30,

(In millions) 2023 2022 Change

6 unchanged sentences

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

Market Factors Influencing Operations or Results in the Six Months Ended June 30, 2023

Market Factors Influencing Operations or Results in the Nine Months Ended September 30, 2023

The Company is subject to a variety of market factors which affect the Company's operating results.

In Ag Services and Oilseeds, supply has been impacted by market dislocations such as the Russian-Ukraine war, a record world soybean production, and extreme drought conditions in Argentina.

In Ag Services and Oilseeds, supply has been impacted by market dislocations driven by geopolitical uncertainty, record world soybean production, and extreme drought conditions in Argentina.

Inflationary pressures impacted the entire value chain.

Crushing was impacted by sustainable biofuel demand and protein consumption around the globe.

In Refined Products and Other, margins were driven by strong oil demand and elevated oil values that were supported by biofuels demand, driven by favorable blend economics due to historically low distillate levels.

Mediocre growth in mandated renewable volume obligations for 2023 to 2025 drove further market volatility.

In Carbohydrate Solutions, demand for starches and sweeteners remained solid with margins remaining steady across the entire portfolio.

3 unchanged sentences

In Animal Nutrition, amino acids margins were pressured due to competition returning to market and production cost inflation.

In Animal Nutrition, amino acids margins were pressured due to competition returning to the market and production cost inflation.

Results were also adversely affected by weak demand in other product lines due to decreased market for feed, particularly in North America and EMEA, and animal disease impacts on farms, and some premix and additives customers cutting products out of formulation due to increased ingredient, freight, and energy costs.

Increased competition in Latin America also contributed to the weak demand in that region.

Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022

Nine Months Ended September 30, 2023 Compared to Nine Months Ended September 30, 2022

Net earnings attributable to controlling interests decreased $0.4 billion to $2.9 billion.

Segment operating profit decreased $0.1 billion to $3.2 billion and included a net charge of $109 million consisting of asset impairment and restructuring charges of $121 million and a gain on the sale of certain assets of $12 million.

Included in segment operating profit in the prior period was a net charge of $26 million consisting of asset impairment, restructuring, and settlement charges of $27 million and a gain on sale of assets of $1 million.

Adjusted segment operating profit (a non-GAAP measure) decreased $52 million to $3.4 billion due primarily to lower results in Crushing, Wilmar, Carbohydrate Solutions, and Nutrition, partially offset by higher results in Refined Products and Other, Ag Services, and Other Business.

Segment operating profit decreased $0.3 billion to $4.7 billion and included a net charge of $180 million consisting of asset impairment and restructuring charges and contingency provisions totaling $190 million and a gain on the sale of certain assets of $10 million.

Included in segment operating profit in the prior period was a net charge of $46 million consisting of charges totaling $76 million related to the impairment of certain assets, restructuring, and a contingency/settlement, partially offset by gains on the sale of certain assets of $30 million.

Adjusted segment operating profit (a non-GAAP measure) decreased $0.1 billion to $4.8 billion due primarily to lower results in Crushing, Wilmar, Nutrition, Carbohydrate Solutions, and Ag Services, partially offset by higher results in Refined Products and Other and Other Business.

Corporate results in the current period were a net charge of $1.1 billion and included a mark-to-market gain of $6 million on the conversion option of the exchangeable bonds issued in August 2020.

1 unchanged sentence

Income taxes of $636 million decreased $43 million.

The Company’s effective tax rate for the six months ended June 30, 2023 was 17.0% compared to 17.4% for the six months ended June 30, 2022.

The decrease in the rate was primarily due to the impact of discrete tax items.

The Company’s effective tax rate for the nine months ended September 30, 2023 was 17.9% compared to 16.9% for the nine months ended September 30, 2022.

The increase in the rate was primarily due to changes in the geographic mix of forecasted pretax earnings.

Analysis of Statements of Earnings

Processed volumes by product for the six months ended June 30, 2023 and 2022 are as follows (in metric tons):

Six Months Ended

Processed volumes by product for the nine months ended September 30, 2023 and 2022 are as follows (in metric tons):

Nine Months Ended

September 30,

(In thousands) 2023 2022 Change

4 unchanged sentences

The overall increase in oilseeds processed volumes was primarily related to improved crush rates in the current period compared to lower crush rates in the prior period resulting from unplanned downtime due to logistics and staffing issues.

The overall decrease in corn processed volumes was related to unplanned downtime at a corn germ plant, lower export volumes in North America, and reduced grind in EMEA due to weaker demand.

Revenues by segment for the six months ended June 30, 2023 and 2022 are as follows:

Six Months Ended

The overall increase in oilseeds processed volumes was primarily related to improved crush rates in the current period compared to decreased crush rates in the prior period resulting from the decline in global demand for rapeseed and the decline in canola crop due to the drought condition in North America and a temporarily idled facility in Paraguay due to reduced crop.

The overall decrease in corn processed volumes was related to unplanned downtime from the recent Decatur, Illinois incident and due to the earthquake in Turkey and fire at the Cedar Rapids, Iowa dry mill.

Revenues by segment for the nine months ended September 30, 2023 and 2022 are as follows:

Nine Months Ended

September 30,

2023 2022 Change

17 unchanged sentences

Revenues decreased $4.7 billion to $71.0 billion due to lower sales prices ($6.8 billion), partially offset by higher sales volumes ($2.1 billion).

Lower sales prices of soybeans, oils, and biodiesel and lower sales volumes of corn, wheat, and alcohol were partially offset by higher sales prices of meal and higher sales volumes of soybeans, and biodiesel.

Lower sales prices of oils, soybeans, biodiesel, farming materials, and corn and lower sales volumes of corn, were partially offset by higher sales volumes of soybeans and biodiesel.

Ag Services and Oilseeds revenues decreased 7% to $54.9 billion due to lower sales prices ($6.8 billion), partially offset by higher sales volumes ($2.9 billion).

Carbohydrate Solutions revenues decreased 3% to $6.9 billion due to lower sales volumes ($0.3 billion), partially offset by lower sales prices ($0.1 billion).

Carbohydrate Solutions revenues decreased 4% to $10.2 billion due to lower sales volumes ($0.1 billion) and lower sales prices ($0.4 billion).

Nutrition revenues decreased 5% to $5.5 billion due to lower sales volumes ($0.7 billion), partially offset by higher sales prices ($0.4 billion).

2 unchanged sentences

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

Foreign currency translation decreased revenues and cost of products sold by $0.3 billion.

Gross profit decreased $34 million or 1% to $4.0 billion due principally to lower results in Crushing ($232 million), Carbohydrate Solutions ($125 million), and Nutrition ($92 million), partially offset by higher results in Refined Products and Other ($330 million) and Ag Services ($89 million).

Foreign currency translation decreased revenues and cost of products sold by $74 million and $47 million, respectively.

Gross profit decreased $0.0 billion or 1% to $5.8 billion due principally to lower results in Crushing ($287 million) and Nutrition ($151 million), partially offset by higher results in Refined Products and Other ($364 million), Vantage Corn Processors ($19 million), and Ag Services ($18 million).

These factors are explained in the segment operating profit discussion on page 50.

Selling, general, and administrative expenses increased $0.1 billion to $1.7 billion due primarily to higher salaries and benefit costs and higher professional and financing fees, partially offset by decreased provisions for bad debt.

Selling, general, and administrative expenses increased $0.1 billion to $2.5 billion due primarily to higher salaries and benefit costs, increased expenses for contracted outside labor, and higher professional and financing fees, partially offset by decreased provisions for bad debt.

Asset impairment, exit, and restructuring costs increased $116 million to $146 million.

Charges in the current period consisted of $46 million of impairments related to certain long-lived assets and intangibles and $21 million of restructuring.

Charges in the prior period were not material.

Equity in earnings of unconsolidated affiliates decreased $71 million to $325 million due primarily to lower earnings from the Company’s investments in Wilmar and Almidones Mexicanos S.A.

Charges in the current period consisted of $120 million of impairments related to certain long-lived assets and intangibles and $21 million of restructuring, presented as specified items within segment operating profit, and $5 million of restructuring in Corporate.

Intangibles impairments in the current period of $62 million was primarily related to discontinued animal nutrition trademarks in the Nutrition segment.

Charges in the prior period consisted of $20 million of impairments related to certain long-lived assets and $12 million of restructuring, presented as specified items within segment operating profit, and a $2 million restructuring adjustment in Corporate.

Equity in earnings of unconsolidated affiliates decreased $198 million to $408 million due primarily to lower earnings from the Company’s investments in Wilmar, Skyland Grain, LLC, and Almidones Mexicanos S.A., partially offset by higher earnings from ADM’s investment in Olenex Sarl.

Interest and investment income increased $252 million to $428 million due primarily to higher interest income, partially offset by revaluation gains of $37 million in the prior period.

Interest expense increased $162 million to $327 million due primarily to increased short-term rates on the Company’s commercial paper borrowing programs and increased interest expense from new debt issuances.

Interest expense increased $220 million to $482 million due primarily to increased short-term rates on customer deposit balances in ADM Investor Services and on the Company’s commercial paper borrowing programs and increased interest expense from new debt issuances.

Interest expense in the current period also included a $6 million mark-to-market gain adjustment related to the conversion option of the exchangeable bonds issued in August 2020 compared to a $12 million mark-to-market gain adjustment in the prior period.

Other income-net decreased $67 million to $116 million.

Income in the current period included gains on disposals of individually insignificant assets in the ordinary course of business, the non-service components of net pension benefit income, net foreign exchange gains, and net other income.

Income in the prior period included gains on disposals of individually insignificant assets in the ordinary course of business, the non-service components of net pension benefit income, a $50 million payment from USDA Biofuel Producer Recovery Program, and net foreign exchange gains, partially offset by net other expense.

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

Segment operating profit, adjusted segment operating profit (a non-GAAP measure), and earnings before income taxes for the six months ended June 30, 2023 and 2022 are as follows:

Six Months Ended

Segment operating profit, adjusted segment operating profit (a non-GAAP measure), and earnings before income taxes for the nine months ended September 30, 2023 and 2022 are as follows:

Nine Months Ended

September 30,

Segment Operating Profit (Loss) 2023 2022 Change

15 unchanged sentences

Specified Items:

Gains (losses) on sales of assets and businesses 12 1 11

Asset impairment, restructuring, and settlement charges (121) (27) (94)

Gains on sales of assets and businesses 10 30 (20)

Impairment, restructuring, and settlement charges and contingency provisions (190) (76) (114)

Total Specified Items (180) (46) (134)

7 unchanged sentences

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

Ag Services and Oilseeds operating profit increased 6%.

Ag Services results were higher than the prior period.

Ag Services and Oilseeds operating profit decreased 3%.

Ag Services results were in-line with the prior period.

In South American origination, effective risk management and higher export demand due to the record Brazilian soybean crop drove significantly higher year-over-year results.

Results for North America origination were slightly higher, driven by stronger soybean exports.

Results for North America origination were lower year-over-year driven by shift of exports to South America.

Execution in destination marketing as well as effective risk management continued to deliver strong Global Trade results, though lower than the prior period.

Current period results also included a $48 million insurance settlement related to damages from Hurricane Ida.

Crushing results were lower than the prior period.

2 unchanged sentences

This was partially offset by strong softseed margins and higher volumes, supported by a strong Canadian canola crop and utilization of flex capacity in EMEA.

Additionally, negative mark-to-market timing effects that are expected to reverse as contracts in future periods, affected the results in the current period.

Refined Products and Other results were significantly higher than the prior period.

1 unchanged sentence

In EMEA, strong export demand for biodiesel and domestic food oil demand supported stronger margins.

Additionally, positive mark-to-market timing effects that expected to reverse as contracts execute in future periods, contributed to the results in the current quarter.

Additionally, net positive mark-to-market timing effects that are expected to reverse as contracts execute in future periods contributed to the results in the current quarter.

Equity earnings from Wilmar were lower versus the prior period.

5 unchanged sentences

The global wheat milling business posted higher margins driven by solid customer demand.

Vantage Corn Processors results were lower due to lower year-over-year ethanol margins and absence of the prior period’s $50 million payment from the USDA Biofuel Producer Recovery Program.

Vantage Corn Processors results were lower due to the absence of the prior period’s $50 million payment from the USDA Biofuel Producer Recovery Program, partially offset by higher operating results as the business executed on a robust demand and margin environment for ethanol.

Nutrition operating profit decreased 23%.

Human Nutrition results were in-line with the prior period, as the business continued to manage demand fulfillment challenges and destocking in certain categories.

Flavors results were higher than the prior period due to improved mix and pricing in EMEA as well as improving demand in North America.

Health and Wellness results were lower year-over-year due to lower demand for fibers.

Human Nutrition results were lower than the prior period, as the business continued to manage demand fulfillment challenges and destocking in certain categories.

Flavors results were higher than the prior period driven by pricing actions in EMEA and strong win rates in North America.

Health and Wellness results were in-line with the prior period.

Animal Nutrition results were significantly lower compared to the prior period due to lower contribution from amino acids, pockets of softer global feed demand affecting volumes, and continued demand fulfillment challenges and inventory losses in pet solutions.

2 unchanged sentences

Captive insurance results improved on premiums from new programs, partially offset by increased claim settlements.

Corporate results for the six months ended June 30, 2023 and 2022 are as follows:

Six Months Ended

Corporate results for the nine months ended September 30, 2023 and 2022 are as follows:

Nine Months Ended

September 30,

2023 2022 Change

13 unchanged sentences

Gain on debt conversion option was related to the mark-to-market adjustment of the conversion option of the exchangeable bonds issued in August 2020.

Other income in the current period included the non-service components of net pension benefit income of $9 million and foreign exchange gains, partially offset by railroad maintenance expenses.

Other income in the prior period included the non-service components of net pension benefit income of $12 million, an investment revaluation gain of $36 million, and foreign exchange gains, partially offset by railroad maintenance expenses.

Other income in the current period included the non-service components of net pension benefit income of $13 million and foreign exchange gains, partially offset by railroad maintenance expenses of $28 million.

Other income in the prior period included the non-service components of net pension benefit income of $19 million, an investment revaluation gain of $37 million, and foreign exchange gains, partially offset by railroad maintenance expenses of $41 million.

Non-GAAP Financial Measures

7 unchanged sentences

The table below provides a reconciliation of diluted EPS to adjusted EPS for the six months ended June 30, 2023 and 2022.

Six months ended June 30,

The table below provides a reconciliation of diluted EPS to adjusted EPS for the nine months ended September 30, 2023 and 2022.

Nine months ended September 30,

In millions Per share In millions Per share

1 unchanged sentence

Net earnings and reported EPS (fully diluted) $ 2,918 $ 5.35 $ 3,321 $ 5.87

Gains (losses) on sales of assets and businesses - net of tax of $3 million in 2023 and $0 million in 2022 (1)

Gains on sales of assets and businesses - net of tax of $3 million in 2023 and $7 million in 2022 (1)

(7) (0.02) (20) (0.04)

Impairment and restructuring charges and contingency provisions - net of tax of $26 million in 2023 and $5 million in 2022 (1)

Impairment and restructuring charges and settlement contingencies - net of tax of $43 million in 2023 and $14 million in 2022 (1)

152 0.28 60 0.10

8 unchanged sentences

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

The tables below provide a reconciliation of earnings before income taxes to adjusted EBITDA and adjusted EBITDA by segment for the six months ended June 30, 2023 and 2022.

Six months ended

The tables below provide a reconciliation of earnings before income taxes to adjusted EBITDA and adjusted EBITDA by segment for the nine months ended September 30, 2023 and 2022.

Nine months ended

September 30,

(In millions) 2023 2022 Change

2 unchanged sentences

Depreciation and amortization 782 774 8

(Gains) losses on sales of assets and businesses (12) 2 (14)

Gains on sales of assets and businesses (10) (27) 17

Expenses related to acquisitions 6 2 4

Railroad maintenance expenses 28 41 (13)

Impairment and restructuring charges and contingency provisions 124 25 99

Impairment and restructuring charges and settlement contingencies 195 74 121

Adjusted EBITDA $ 4,882 $ 5,146 $ (264)

Six months ended

Nine months ended

September 30,

(In millions) 2023 2022 Change

6 unchanged sentences

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