What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2023-10-24 compared with 2023-07-25 · 32 added, 35 removed, 31 unchanged (68% of the section changed)

6 unchanged sentences

and international markets.

Cash provided by operating activities was $0.9 billion for the six months ended June 30, 2023 compared to a use of $0.7 billion for the same period last year.

Working capital changes decreased cash by $1.6 billion for the six months ended June 30, 2023 compared to a decrease of $3.9 billion for the same period last year.

Segregated investments increased approximately $1.4 billion driven by higher interest rates.

Cash provided by operating activities was $1.9 billion for the nine months ended September 30, 2023 compared to $3.3 billion for the same period last year.

Working capital changes decreased cash by $1.9 billion for the nine months ended September 30, 2023 compared to a decrease of $1.3 billion for the same period last year.

Segregated investments increased $1.2 billion driven by higher interest rates.

Trade receivables decreased $0.4 billion due to lower revenues.

Inventories decreased approximately $2.9 billion due to lower inventory volumes, partially offset by higher inventory prices.

Other current assets decreased $0.6 billion primarily due to decreases in margin deposits and grain accounts, customer omnibus receivable, and prepaid expenses.

Trade payables decreased $2.8 billion due to lower payables related to grain purchases.

Inventories decreased $3.5 billion due to lower inventory volumes and prices.

Trade payables decreased $2.6 billion primarily due to lower payables related to grain and other inventory purchases.

Brokerage payables decreased approximately $1.6 billion due to decreased trading activity in the Company’s futures commission and brokerage business.

Accrued expenses and other payables decreased $0.6 billion primarily due to decreases in contract liability, and compensation accruals.

Cash used in investing activities was $0.6 billion for the six months ended June 30, 2023 compared to $0.6 billion for the same period last year.

Capital expenditures for the six months ended June 30, 2023 were $0.6 billion compared to $0.5 billion for the same period last year.

There were $5 million additional cost method investments for the six months ended June 30, 2023 compared to $0.1 billion for the same period last year.

Cash used in financing activities was $2.1 billion for the six months ended June 30, 2023 compared to cash provided of $1.5 billion for the same period last year.

Long-term debt borrowings for the six months ended June 30, 2023 were $0.5 billion which consisted of the $500 million aggregate principle amount of 4.500% Notes due 2033 compared to long-term debt borrowings for the same period last year of $0.8 billion which consisted of the $750 million aggregate principal amount of 2.900% Notes due 2032.

Accrued expenses and other payables decreased $0.7 billion primarily due to decreases in contract liability and unrealized losses on derivative contracts.

Cash used in investing activities was $1.1 billion for the nine months ended September 30, 2023 compared to $0.9 billion for the same period last year.

Capital expenditures for the nine months ended September 30, 2023 were $1.1 billion compared to $0.8 billion for the same period last year.

There were $5 million additional cost method investments for the nine months ended September 30, 2023 compared to $0.1 billion for the same period last year.

Cash used in financing activities was $2.8 billion for the nine months ended September 30, 2023 compared to $2.4 billion for the same period last year.

Long-term debt borrowings for the nine months ended September 30, 2023 were $0.5 billion which consisted of the $500 million aggregate principle amount of 4.500% Notes due 2033 compared to long-term debt borrowings for the same period last year of $0.8 billion which consisted of the $750 million aggregate principal amount of 2.900% Notes due 2032.

Proceeds from the borrowings in the current period were used for general corporate purposes.

Proceeds from the borrowings in the prior period were used to finance investments and expenditures in eligible green projects that contribute to environmental objectives and/or eligible social projects that aim to address or mitigate a specific social issue and/or seek to achieve positive social outcomes.

Long-term debt payments were $0.7 billion for the six months ended June 30, 2023 which consisted of the €600 million aggregate principal amount of 1.750% Notes due 2023 compared to an immaterial amount for the same period last year.

Net borrowings on short-term credit agreements for the six months ended June 30, 2023 were $0.4 billion compared to $1.4 billion for the same period last year.

Share repurchases for the six months ended June 30, 2023 were $1.0 billion compared to $0.2 billion for the same period last year.

Dividends for the six months ended June 30, 2023 of $0.5 billion were comparable for the same period last year.

At June 30, 2023, the Company had $1.4 billion of cash and cash equivalents and a current ratio, defined as current assets divided by current liabilities, of 1.6 to 1.

Long-term debt payments were $1.0 billion for the nine months ended September 30, 2023 which consisted of the €600 million aggregate principal amount of 1.750% Notes due 2023 and the $300 million aggregate amount of zero coupon exchangeable bonds due 2023, compared to $0.5 billion for the same period last year which consisted of the €0.5 billion aggregate principal amount of fixed-to-floating rate senior notes due 2022 issued in a private placement on March 25, 2021.

Net borrowings on short-term credit agreements for the nine months ended September 30, 2023 were $0.4 billion compared to $0.8 billion for the same period last year.

Share repurchases for the nine months ended September 30, 2023 were $1.1 billion compared to $1.2 billion for the same period last year.

Dividends were $0.7 billion for the nine months ended September 30, 2023 and the same period last year.

At September 30, 2023, the Company had $1.5 billion of cash and cash equivalents and a current ratio, defined as current assets divided by current liabilities, of 1.7 to 1.

Included in working capital was $6.0 billion of readily marketable commodity inventories.

At June 30, 2023, the Company’s capital resources included shareholders’ equity of $25.0 billion and lines of credit, including the accounts receivable securitization programs described below, totaling $13.6 billion, of which $11.3 billion was unused.

The Company’s ratio of long-term debt to total capital (the sum of the Company’s long-term debt and shareholders’ equity) was 25% and 24% at June 30, 2023 and December 31, 2022, respectively.

At September 30, 2023, the Company’s capital resources included shareholders’ equity of $25.3 billion and lines of credit, including the accounts receivable securitization programs described below, totaling $13.5 billion, of which $11.7 billion was unused.

The Company’s ratio of long-term debt to total capital (the sum of the Company’s long-term debt and shareholders’ equity) was 25% and 24% at September 30, 2023 and December 31, 2022, respectively.

The Company uses this ratio as a measure of the Company’s long-term indebtedness and an indicator of financial flexibility.

The Company’s ratio of net debt (the sum of short-term debt, current maturities of long-term debt, and long-term debt less the sum of cash and cash equivalents and short-term marketable securities) to capital (the sum of net debt and shareholders’ equity) was 22% and 25% at June 30, 2023 and December 31, 2022, respectively.

The Company’s ratio of net debt (the sum of short-term debt, current maturities of long-term debt, and long-term debt less the sum of cash and cash equivalents and short-term marketable securities) to capital (the sum of net debt and shareholders’ equity) was 21% and 25% at September 30, 2023 and December 31, 2022, respectively.

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.

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

As of June 30, 2023, the Company had $1.4 billion of cash and cash equivalents, $0.8 billion of which was cash held by foreign subsidiaries whose undistributed earnings are considered indefinitely reinvested.

As of September 30, 2023, the Company had $1.5 billion of cash and cash equivalents, $0.8 billion of which was cash held by foreign subsidiaries whose undistributed earnings are considered indefinitely reinvested.

Based on the Company’s historical ability to generate sufficient cash flows from its U.S.

3 unchanged sentences

The Programs provide the Company with up to $3.0 billion in funding against accounts receivable transferred into the Programs and expands the Company’s access to liquidity through efficient use of its balance sheet assets (see Note 14 of “Notes to Consolidated Financial Statements” included in Item 1 herein, “Financial Statements” for more information and disclosures on the Programs).

As of June 30, 2023, the Company had $0.9 billion unused capacity of its facility under the Programs.

As of June 30, 2023, the Company has total available liquidity of $12.7 billion comprised of cash and cash equivalents and unused lines of credit with a well-diversified group of primarily investment-grade institutions.

For the six months ended June 30, 2023, the Company spent approximately $0.6 billion in capital expenditures, $0.5 billion in dividends, and $1.0 billion in share repurchases.

As of September 30, 2023, the Company had $1.3 billion unused capacity of its facility under the Programs.

As of September 30, 2023, the Company has total available liquidity of $13.2 billion comprised of cash and cash equivalents and unused lines of credit with a well-diversified group of primarily investment-grade institutions.

For the nine months ended September 30, 2023, the Company spent approximately $1.1 billion in capital expenditures, $0.7 billion in dividends, and $1.1 billion in share repurchases.

The Company has a stock repurchase program.

Under the program, the Company has 74.8 million shares remaining as of June 30, 2023 that may be repurchased until December 31, 2024.

Under the program, the Company has 73.2 million shares remaining as of September 30, 2023 that may be repurchased until December 31, 2024.

In 2023, the Company expects total capital expenditures of approximately $1.5 billion and additional cash outlays of approximately $1.0 billion in dividends and $2.0 billion in opportunistic share repurchases, subject to other strategic uses of capital and the evolution of operating cash flows and the working capital position throughout the year.

Contractual Obligations and Commercial Commitments

The Company’s purchase obligations as of June 30, 2023 and December 31, 2022 were $14.2 billion and $15.8 billion, respectively.

The decrease is primarily related to obligations to purchase lower quantities of agricultural commodity inventories.

As of June 30, 2023, the Company expects to make payments related to purchase obligations of $13.2 billion within the next twelve months.

There were no other material changes in the Company’s contractual obligations during the quarter ended June 30, 2023.

The Company’s purchase obligations as of September 30, 2023 and December 31, 2022 were $16.5 billion and $15.8 billion, respectively.

The increase is primarily related to obligations for energy commitments, partially offset by obligations to purchase lower quantities of agricultural commodity inventories.

As of September 30, 2023, the Company expects to make payments related to purchase obligations of $15.7 billion within the next twelve months.

There were no other material changes in the Company’s contractual obligations during the quarter ended September 30, 2023.

Off Balance Sheet Arrangements

In May 2023, the Company amended its First Program with certain commercial and conduit purchasers and committed purchasers and increased its facility from $1.8 billion to $1.9 billion.

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

There were no other material changes in the Company’s off balance sheet arrangements during the quarter ended June 30, 2023.

There were no material changes in the Company’s off balance sheet arrangements during the quarter ended September 30, 2023.

Critical Accounting Policies and Estimates

There were no material changes in the Company’s critical accounting policies and estimates during the quarter ended June 30, 2023.

There were no material changes in the Company’s critical accounting policies and estimates during the quarter ended September 30, 2023.

For a description of the Company’s critical accounting policies, estimates, and assumptions used in the preparation of the Company’s financial statements, see Part II, Item 7 and Note 1 of “Notes to Consolidated Financial Statements” included in Part II, Item 8, of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

2 unchanged sentences

commodity market prices as they relate to the Company’s net commodity position, foreign currency exchange rates, and interest rates.

Significant changes in market risk sensitive instruments and positions for the quarter ended June 30, 2023 are described below.

Significant changes in market risk sensitive instruments and positions for the quarter ended September 30, 2023 are described below.

There were no material changes during the period in the Company’s potential loss arising from changes in foreign currency exchange rates and interest rates.

1 unchanged sentence

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 2. Management’s Discussion and Analysis