What changed in this filing

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Item 1. Financial Statements

2024-04-30 compared with 2023-10-24 · 435 added, 746 removed, 800 unchanged (60% of the section changed)

3 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

(In millions, except per share amounts)

11 unchanged sentences

Net Earnings Including Noncontrolling Interests 719 1,172

Net earnings attributable to noncontrolling interests 3 6 6 20

Net earnings (losses) attributable to noncontrolling interests ( 10 ) 2

Net Earnings Attributable to Controlling Interests $ 729 $ 1,170

8 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

(In millions)

20 unchanged sentences

Consolidated Balance Sheets

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

(In millions) March 31, 2024 December 31, 2023

Current Assets

46 unchanged sentences

Consolidated Statements of Cash Flows

(In millions) Nine Months Ended

September 30,

(In millions) Three Months Ended

Operating Activities

7 unchanged sentences

Deferred cash flow hedges ( 69 ) ( 104 )

Gains on sales of assets and businesses/investment revaluation ( 33 ) ( 77 )

(Gain) losses on sales/revaluation of assets 14 ( 11 )

Other – net 69 ( 8 )

11 unchanged sentences

Net assets of businesses acquired ( 915 ) —

Proceeds from sales of assets and businesses 21 51

Proceeds from sales of assets 6 13

Investments in affiliates ( 4 ) ( 4 )

Cost method investments ( 5 ) ( 134 )

Other – net 11 ( 10 )

1 unchanged sentence

Financing Activities

Long-term debt borrowings 500 752

Long-term debt payments — ( 2 )

22 unchanged sentences

(In millions, except per share amounts) Shares Amount

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

Comprehensive income

Net earnings 821 3

Other comprehensive income (loss) ( 178 ) ( 1 )

Total comprehensive income 645

Cash dividends paid - $ 0.45 per share ( 244 ) ( 244 )

Share repurchases ( 1 ) ( 122 ) ( 122 )

Stock compensation expense — 12 12

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

Other — 3 — — ( 1 ) 2

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

Balance, December 31, 2023 513 $ 3,154 $ 23,465 $ ( 2,487 ) $ 13 $ 24,145

5 unchanged sentences

Share repurchases ( 13 ) ( 868 ) ( 868 )

Stock compensation expense 3 98 98

Stock option exercises net of taxes ( 1 ) ( 110 ) ( 110 )

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

Comprehensive income

Net earnings 1,031 6

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

Total comprehensive income 787

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

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

Share repurchases prepayment ( 462 ) ( 462 )

Stock compensation expense 3 66 66

1 unchanged sentence

Other — 3 — — 13 16

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

Balance, March 31, 2024 502 $ 2,720 $ 23,069 $ ( 2,570 ) $ 13 $ 23,232

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

8 unchanged sentences

Other — 2 — — 4 6

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

Balance, March 31, 2023 546 $ 3,106 $ 24,217 $ ( 2,463 ) $ 36 $ 24,896

See notes to consolidated financial statements.

6 unchanged sentences

In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.

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

Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.

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, 2023 for Archer-Daniels-Midland Company (the Company or ADM).

4 unchanged sentences

For VIEs, the Company assesses whether it is the primary beneficiary as defined under the applicable accounting standard.

Investments in affiliates, including VIEs through which the Company exercises significant influence but does not control the investee and is not the primary beneficiary of the investee’s activities, are carried at cost plus equity in undistributed earnings since acquisition and are adjusted, where appropriate, for basis differences between the investment balance and the underlying net assets of the investee.

The Company’s portion of the results of certain affiliates and results of certain VIEs are included using the most recent available financial statements.

6 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 thereon.

These amounts include 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 September 30

(In millions)

Beginning, July 1 $ 174 $ 164

Current year provisions (reversals) ( 11 ) 29

Write-offs against allowance ( 3 ) ( 1 )

Foreign exchange translation adjustment ( 2 ) ( 2 )

Other — ( 11 )

Ending, September 30 $ 158 $ 179

Nine Months Ended September 30

March 31, 2024 March 31, 2023

(In millions)

4 unchanged sentences

Foreign exchange translation adjustment 1 1

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.

Ending, March 31 $ 216 $ 182

Write-offs against allowance in the three months ended March 31, 2024 were primarily related to long-term receivables.

Write-offs against allowance in the three months ended March 31, 2023 were primarily related to allowance on receivables that were subsequently sold.

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

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

The following table sets forth the Company’s inventories.

September 30, 2023 December 31, 2022

The following table sets forth the Company’s inventories as of March 31, 2024 and December 31, 2023.

March 31, 2024 December 31, 2023

(In millions)

1 unchanged sentence

Finished goods 3,047 3,026

Market inventories 6,707 6,987

Total inventories $ 11,634 $ 11,957

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

Included in raw materials and supplies are work in process inventories which were not material as of March 31, 2024 and December 31, 2023.

Cost Method Investments

Cost method investments of $ 421 million and $ 438 million as of March 31, 2024 and December 31, 2023, respectively, were included in Other Assets in the Company’s consolidated balance sheets.

Revaluation loss of $ 18 million in the three months ended March 31, 2024 was related to an investment in alternative protein and precision fermentation, partially offset by an upward adjustment of $ 2 million.

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

Revaluation gains and losses are recorded in interest and investment income in the Company’s consolidated statements of earnings.

As of March 31, 2024, the cumulative amounts of upward and downward adjustments were $ 115 million and $ 94 million, respectively.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Basis of Presentation (Continued)

Cost Method Investments

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

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

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 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.

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

New Accounting Standards

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

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

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

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

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

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

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

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

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

As of 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.

Through December 31, 2024, the Company has the option to adopt the amended guidance of Accounting Standards Codification (ASC) 848, Reference Rate Reform , which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met.

The amendments apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform.

The expedients and exceptions provided by the amended guidance do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2024, except for hedging relationships existing as of December 31, 2024, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship.

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

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Through March 31, 2024, ADM has completed the transition of its financing, funding, and hedging portfolios from LIBOR to alternative reference rates.

The transition did not have an impact on the Company’s consolidated financial statements.

Effective December 31, 2024, the Company will be required to adopt the amended guidance of ASC 280, Segment Reporting , which improves disclosures about a public entity’s reportable segments and addresses requests from investors and other allocators of capital for more detailed information about a reportable segment’s expenses.

The amended guidance improves reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses and permits entities to disclose more than one measure of a reportable segment’s profitability used by the Chief Operating Decision Maker.

The adoption of the amended guidance will result in expanded disclosures in the Company’s segment and geographic information footnote but will not have an impact on the consolidated financial statements.

Effective December 31, 2025, the Company will be required to adopt the amended guidance of ASC 740, Income Taxes , which enhances the transparency and decision usefulness of income tax disclosures.

The amendments address investor requests for more transparency about income tax information.

The adoption of the amended guidance will result in expanded disclosures in the Company’s income taxes footnote but will not have an impact on the consolidated financial statements.

Revenue Recognition

3 unchanged sentences

The majority of the Company’s contracts with customers have one performance obligation and a contract duration of one year or less.

The Company applies the practical expedient in paragraph 10-50-14 of Topic 606 and does not disclose information about remaining performance obligations that have original expected durations of one year or less.

The Company applies the practical expedient in paragraph 10-50-14 of ASC 606, Revenue from Contracts with Customers , (Topic 606) and does not disclose information about remaining performance obligations that have original expected durations of one year or less.

For transportation service contracts, the Company recognizes revenue over time as the 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 $ 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.

The Company recognized revenue from transportation service contracts of $ 193 million and $ 178 million for the three months ended March 31, 2024 and 2023, 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).

4 unchanged sentences

The Company does not include taxes assessed by governmental authorities that are (i) imposed on and concurrent with a specific revenue-producing transaction and (ii) collected from customers, in the measurement of transaction prices or as a component of revenues and cost of products sold.

Contract Liabilities

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

Contract liabilities of $ 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

1 unchanged sentence

Revenues (Continued)

Contract Liabilities

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

Contract liabilities of $ 508 million and $ 626 million as of March 31, 2024 and December 31, 2023, respectively, were recorded in accrued expenses and other payables in the consolidated balance sheets.

Revenues recognized in the three months ended March 31, 2024 from the December 31, 2023 contract liabilities were $ 235 million.

Disaggregation of Revenues

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

Three Months Ended September 30, 2023

The following tables present revenue disaggregated by timing of recognition and major product lines for the three months ended March 31, 2024 and 2023.

Three Months Ended March 31, 2024

Topic 606 Revenue Topic 815 (1)

14 unchanged sentences

Total Revenues $ 5,752 $ 193 $ 5,945 $ 15,902 $ 21,847

Nine Months Ended September 30, 2023

Topic 606 Revenue Topic 815 (1)

Point in Time Over Time Total Revenue Revenues

(In millions)

Ag Services and Oilseeds

Ag Services $ 3,068 $ 552 $ 3,620 $ 31,639 $ 35,259

Crushing 341 — 341 10,174 10,515

Refined Products and Other 1,730 — 1,730 7,398 9,128

Total Ag Services and Oilseeds 5,139 552 5,691 49,211 54,902

Carbohydrate Solutions

Starches and Sweeteners 5,787 — 5,787 1,873 7,660

Vantage Corn Processors 2,583 — 2,583 — 2,583

Total Carbohydrate Solutions 8,370 — 8,370 1,873 10,243

Human Nutrition 2,802 — 2,802 — 2,802

Animal Nutrition 2,688 — 2,688 — 2,688

Total Nutrition 5,490 — 5,490 — 5,490

Other Business 322 — 322 — 322

Total Revenues $ 19,321 $ 552 $ 19,873 $ 51,084 $ 70,957

Archer-Daniels-Midland Company

1 unchanged sentence

Revenues (Continued)

Three Months Ended September 30, 2022

Three Months Ended March 31, 2023

Topic 606 Revenue Topic 815 (1)

14 unchanged sentences

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

Nine Months Ended September 30, 2022

Topic 606 Revenue Topic 815 (1)

Point in Time Over Time Total Revenue Revenues

(In millions)

Ag Services and Oilseeds

Ag Services $ 3,078 $ 611 $ 3,689 $ 35,028 $ 38,717

Crushing 455 — 455 9,349 9,804

Refined Products and Other 2,091 — 2,091 8,211 10,302

Total Ag Services and Oilseeds 5,624 611 6,235 52,588 58,823

Carbohydrate Solutions

Starches and Sweeteners 5,813 — 5,813 1,884 7,697

Vantage Corn Processors 3,001 — 3,001 — 3,001

Total Carbohydrate Solutions 8,814 — 8,814 1,884 10,698

Human Nutrition 2,884 — 2,884 — 2,884

Animal Nutrition 2,907 — 2,907 — 2,907

Total Nutrition 5,791 — 5,791 — 5,791

Other Business 305 — 305 — 305

Total Revenues $ 20,534 $ 611 $ 21,145 $ 54,472 $ 75,617

(1) Topic 815 revenue relates to the physical delivery or the settlement of the Company’s sales contracts that are accounted for as derivatives and are outside the scope of Topic 606.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Revenues (Continued)

Ag Services and Oilseeds

5 unchanged sentences

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

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

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

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

Carbohydrate Solutions

4 unchanged sentences

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Revenues (Continued)

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

7 unchanged sentences

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

During the three months ended March 31, 2024, the Company acquired Revela Foods (“Revela”), a Wisconsin-based developer and manufacturer of innovative dairy flavor ingredients and solutions, FDL, a UK-based leading developer and producer of premium flavor and functional ingredient systems, and PT Trouw Nutrition Indonesia (“PT”), a subsidiary of Nutreco and leading provider of functional and nutritional solutions for livestock farming in Indonesia, for an aggregate cash consideration of $ 924 million.

The aggregate cash consideration of these acquisitions, net of $ 9 million in cash acquired, was allocated as follows, subject to final measurement period adjustments:

(In millions) Revela FDL PT Total

Working capital $ 50 $ — $ 5 $ 55

Property, plant, and equipment 38 33 5 76

Goodwill 403 145 5 553

Other intangible assets 166 97 — 263

Other long-term assets 28 1 — 29

Long-term liabilities ( 35 ) ( 26 ) — ( 61 )

Aggregate cash consideration $ 650 $ 250 $ 15 $ 915

Goodwill recorded in connection with the acquisitions is primarily attributable to the synergies expected to arise after the Company’s acquisition of the businesses.

Of the $ 553 million allocated to goodwill, none is expected to be deductible for tax purposes.

These acquisitions add capabilities to the Human and Animal Nutrition businesses.

The Company’s consolidated statement of earnings for the quarter ended March 31, 2024 includes the post-acquisition results of the acquired businesses which were immaterial.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Acquisitions (Continued)

The following table sets forth the fair values and the useful lives of the other intangible assets acquired.

Useful Lives Revela FDL Total

(In years) (In millions)

Intangible assets with finite lives:

Trademarks/brands 3 $ — $ 4 $ 4

Customer lists 10 to 18 124 73 197

Recipes and others 10 to 21 42 20 62

Total other intangible assets acquired $ 166 $ 97 $ 263

Fair Value Measurements

The following tables set forth, by level, the Company’s assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2023 and December 31, 2022.

Fair Value Measurements at September 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 March 31, 2024 and December 31, 2023.

Fair Value Measurements at March 31, 2024

Quoted Prices in

32 unchanged sentences

Foreign currency contracts — 187 — 187

Interest rate contracts — 109 — 109

Cash equivalents 209 — — 209

4 unchanged sentences

Foreign currency contracts — 144 — 144

Debt conversion option — — 6 6

Inventory-related payables — 1,219 101 1,320

1 unchanged sentence

Estimated fair values for inventories and inventory-related payables carried at market are based on exchange-quoted prices, adjusted for differences in local markets and quality, referred to as basis.

Market valuations for the Company’s inventories are adjusted for location and quality (basis) because the exchange-quoted prices represent contracts that have standardized terms for commodity, quantity, future delivery period, delivery location, and commodity quality or grade.

Market valuations for the Company’s inventories are adjusted for location and quality (basis) because the exchange-quoted prices represent contracts with standardized terms for commodity, quantity, future delivery period, delivery location, and commodity quality or grade.

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

27 unchanged sentences

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

September 30, 2023

Market Commodity

(In millions)

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

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

Purchases 6,615 — 6,615

Sales ( 6,539 ) — ( 6,539 )

Settlements — ( 356 ) ( 356 )

Transfers into Level 3 336 49 385

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

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

Notes to Consolidated Financial Statements (Continued)

Fair Value Measurements (Continued)

The following table presents a rollforward of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended September 30, 2023.

Level 3 Fair Value Liability Measurements at

September 30, 2023

Payables Commodity

(In millions)

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

Settlements — ( 529 ) ( 529 )

Transfers into Level 3 — 10 10

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

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

September 30, 2022

Market Commodity

(In millions)

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

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

Purchases 13,294 — 13,294

Sales ( 13,931 ) — ( 13,931 )

Settlements — ( 456 ) ( 456 )

Transfers into Level 3 384 49 433

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

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

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

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Fair Value Measurements (Continued)

The following table presents a rollforward of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended September 30, 2022.

Level 3 Fair Value Liability Measurements at

September 30, 2022

Payables Commodity

Losses Debt Conversion Option

(In millions)

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

Total increase (decrease) in net realized/unrealized losses included in cost of products sold and interest expense* 3 391 ( 8 ) 386

Purchases 167 — — 167

Sales ( 5 ) — — ( 5 )

Settlements — ( 634 ) — ( 634 )

Transfers into Level 3 — 57 — 57

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

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

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

The following table presents a rollforward of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended 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 March 31, 2024.

Level 3 Fair Value Asset Measurements at

September 30, 2023

March 31, 2024

Market Commodity

2 unchanged sentences

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

( 97 ) 375 278

Purchases 3,789 — 3,789

3 unchanged sentences

Transfers out of Level 3 ( 90 ) ( 18 ) ( 108 )

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.

Ending balance, March 31, 2024 $ 2,948 $ 764 $ 3,712

* Includes increase in unrealized gains of $ 564 million relating to Level 3 assets still held at March 31, 2024.

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, 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 March 31, 2024.

Level 3 Fair Value Liability Measurements at

September 30, 2023

March 31, 2024

Payables Commodity

Losses Debt Conversion Option

(In millions)

Balance, December 31, 2023 $ 101 $ 457 $ 558

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

Total increase (decrease) in net realized/unrealized losses included in cost of products sold* ( 3 ) 329 326

Purchases 1 — 1

Sales ( 38 ) — ( 38 )

Settlements — ( 290 ) ( 290 )

1 unchanged sentence

Transfers out of Level 3 — ( 74 ) ( 74 )

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.

Ending balance, March 31, 2024 $ 62 $ 435 $ 497

* Includes increase in unrealized losses of $ 338 million relating to Level 3 liabilities still held at March 31, 2024.

The following table presents a rollforward of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended March 31, 2023.

Level 3 Fair Value Asset Measurements at

September 30, 2022

March 31, 2023

Market Commodity

7 unchanged sentences

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

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

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

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

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

Archer-Daniels-Midland Company

1 unchanged sentence

Fair Value Measurements (Continued)

The following table presents a rollforward of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended September 30, 2022.

The following table presents a rollforward of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended March 31, 2023.

Level 3 Fair Value Liability Measurements at

September 30, 2022

March 31, 2023

Payables Commodity

4 unchanged sentences

Purchases 2 — — 2

Sales ( 61 ) — — ( 61 )

Settlements ( 31 ) ( 424 ) — ( 455 )

1 unchanged sentence

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

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

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

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

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

Transfers into Level 3 of assets and liabilities previously classified in Level 2 were due to the relative value of unobservable inputs to the total fair value measurement of certain products and derivative contracts rising above the 10% threshold.

8 unchanged sentences

Fair Value Measurements (Continued)

The following table sets forth the weighted average percentage of the unobservable price components included in the Company’s Level 3 valuations as of September 30, 2023 and December 31, 2022.

The following table sets forth the weighted average percentage of the unobservable price components included in the Company’s Level 3 valuations as of March 31, 2024 and December 31, 2023.

The Company’s Level 3 measurements may include basis only, transportation cost only, or both price components.

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

As an example, for Level 3 inventories with basis, the unobservable component as of March 31, 2024 is a weighted average 28.2 % of the total price for assets and 25.9 % of the total price for liabilities.

Weighted Average % of Total Price

September 30, 2023 December 31, 2022

March 31, 2024 December 31, 2023

Component Type Assets Liabilities Assets Liabilities

15 unchanged sentences

The results of these strategies can be significantly impacted by factors such as the correlation between the value of exchange-traded commodities futures contracts and the value of the underlying commodities, counterparty contract defaults, and volatility of freight markets.

Derivatives, including exchange-traded contracts and forward commodity purchase or sale contracts, and inventories of certain merchandisable agricultural products, which include amounts acquired under deferred pricing contracts, are stated at fair value or market value.

Inventory is not a derivative and therefore fair values of and changes in fair values of inventories are not included in the tables below.

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

September 30, 2023 December 31, 2022

The following table sets forth the fair value of derivatives not designated as hedging instruments as of March 31, 2024 and December 31, 2023.

March 31, 2024 December 31, 2023

Assets Liabilities Assets Liabilities

2 unchanged sentences

Commodity Contracts 1,351 883 1,343 957

Debt Conversion Option — — — 6

Total $ 1,496 $ 977 $ 1,530 $ 1,079

2 unchanged sentences

Derivative Instruments and Hedging Activities (Continued)

The following tables set forth the pre-tax gains (losses) on derivatives not designated as hedging instruments that have been included in the consolidated statements of earnings for the three and nine months ended September 30, 2023 and 2022.

Other (income) expense - net

Cost of Interest

(In millions) Revenues products sold expense

Three Months Ended September 30, 2023

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

Pre-tax gains (losses) on:

Foreign Currency Contracts $ 1 $ ( 38 ) $ 96 $ —

Commodity Contracts — 168 — —

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

Three Months Ended September 30, 2022

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

Pre-tax gains (losses) on:

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

Commodity Contracts — 134 — —

Debt Conversion Option — — — 8

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

Other (income) expense - net

1 unchanged sentence

(In millions) Revenues products sold expense

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

Consolidated Statement of Earnings $ 21,847 $ 20,188 $ ( 26 ) $ 166

2 unchanged sentences

Commodity Contracts — 197 — —

Debt Conversion Option — — — 6

Total gain (loss) recognized in earnings $ 1 $ 134 $ 54 $ — $ 189

Nine Months Ended September 30, 2022

Three Months Ended March 31, 2023

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

4 unchanged sentences

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

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Derivative Instruments and Hedging Activities (Continued)

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

1 unchanged sentence

Derivatives Designated as Cash Flow and Net Investment Hedging Strategies

The Company had certain derivatives designated as cash flow and net investment hedges as of September 30, 2023 and December 31, 2022.

The Company had certain derivatives designated as cash flow and net investment hedges as of March 31, 2024 and December 31, 2023.

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.

4 unchanged sentences

Once the hedged item is recognized in earnings, the gains and losses arising from the hedge are reclassified from AOCI to either revenues or cost of products sold, as applicable.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Derivative Instruments and Hedging Activities (Continued)

The Company uses futures or options contracts to hedge the purchase price of anticipated volumes of corn to be purchased and processed in a future month.

2 unchanged sentences

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

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.

The Company has established hedging programs for ethanol sales contracts that are indexed to unleaded gasoline prices and to various exchange-traded ethanol contracts.

The objective of these hedging programs is to reduce the variability of cash flows associated with the Company’s sales of ethanol.

During the past 12 months and as of September 30, 2023, the Company had no hedges related to ethanol sales under these programs.

At March 31, 2024, the Company had designated hedges representing between 0 % and 29 % of its anticipated monthly grind of corn for the next 12 months.

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 77 % and 100 % of the anticipated monthly soybean crush for soybean purchases and soybean meal and oil sales at the designated facilities.

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.

At March 31, 2024, the Company had designated hedges representing between 3 % and 100 % of the anticipated monthly soybean crush for soybean purchases and soybean meal and oil sales at the designated facilities over the next 12 months.

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

During the past 12 months, the Company hedged between 39 % and 80 % of the anticipated monthly natural gas consumption at the designated facilities.

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

Notes to Consolidated Financial Statements (Continued)

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.

The terms of the swap locks matched the terms of the forecasted interest payments.

The deferred gains and losses will be recognized in interest expense over the period in which the related interest payments will be paid.

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

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

At March 31, 2024, the Company had designated hedges representing between 34 % and 70 % of the anticipated monthly natural gas consumption over the next 12 months.

As of March 31, 2024 and December 31, 2023, the Company had after-tax losses of $ 9 million and after-tax gains of $ 42 million in AOCI, respectively, related to gains and losses from these programs.

The Company expects to recognize $ 9 million of the March 31, 2024 after-tax losses in its consolidated statement of earnings during the next 12 months.

Foreign Currency Contracts

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 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 Company executed USD-fixed to Euro-fixed cross-currency swaps with an aggregate notional amount of $ 0.8 billion as of March 31, 2024 and December 31, 2023, and foreign exchange forwards with an aggregate notional amount of $ 2.1 billion as of March 31, 2024 and December 31, 2023.

As of March 31, 2024 and December 31, 2023, the Company had after-tax gains of $ 46 million and after-tax losses of $ 5 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 September 30, 2023 and December 31, 2022.

September 30, 2023 December 31, 2022

The following table sets forth the fair value of derivatives designated as hedging instruments as of March 31, 2024 and December 31, 2023.

March 31, 2024 December 31, 2023

Assets Liabilities Assets Liabilities

2 unchanged sentences

Foreign Currency Contracts 42 — — 22

Interest Rate Contracts — — 109 —

Total $ 53 $ — $ 16 $ 22

2 unchanged sentences

Derivative Instruments and Hedging Activities (Continued)

The following table sets forth the pre-tax gains (losses) on derivatives designated as hedging instruments that have been included in the consolidated statements of earnings for the three and nine months ended September 30, 2023 and 2022.

Cost of products sold

(In millions) Revenues

Three Months Ended September 30, 2023

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

Effective amounts recognized in earnings

Pre-tax gains (losses) on:

Commodity Contracts $ — $ ( 132 )

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

Three Months Ended September 30, 2022

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

Effective amounts recognized in earnings

Pre-tax gains (losses) on:

Commodity Contracts $ — $ 117

Interest Contracts 1 —

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

Cost of products sold

(In millions) Revenues

Nine Months Ended September 30, 2023

(In millions)

Three Months Ended March 31, 2024

Consolidated Statement of Earnings $ 20,188

3 unchanged sentences

Total gain (loss) recognized in earnings $ 19 $ 19

Nine Months Ended September 30, 2022

Three Months Ended March 31, 2023

Consolidated Statement of Earnings $ 21,992

2 unchanged sentences

Commodity Contracts $ ( 104 )

Interest Contracts 1 —

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

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 Company has designated € 0.7 billion of its outstanding long-term debt and commercial paper borrowings at March 31, 2024 and December 31, 2023 as hedges of its net investment in a foreign subsidiary.

As of March 31, 2024 and December 31, 2023, the Company had after-tax gains of $ 224 million and $ 212 million in AOCI, respectively, related to foreign exchange gains and losses from the net investment hedge transactions.

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

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Other Current Assets

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

September 30, December 31,

March 31, December 31,

(In millions)

11 unchanged sentences

(1) The Company provides financing to certain suppliers, primarily Brazilian farmers, to finance a portion of the suppliers’ production costs.

The amounts are reported net of allowances of $ 3 million 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

Notes to Consolidated Financial Statements (Continued)

The amounts are reported net of allowances of $ 6 million at March 31, 2024 and December 31, 2023.

Interest earned on financing receivables of $ 5 million and $ 6 million for the three months ended March 31, 2024 and 2023, respectively, is included in interest and investment income in the consolidated statements of earnings.

Accrued Expenses and Other Payables

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

September 30, December 31,

March 31, December 31,

(In millions)

7 unchanged sentences

$ 3,922 $ 4,076

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Debt and Financing Arrangements

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

Net proceeds before expenses were $ 493 million.

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

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 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.

At March 31, 2024, 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 March 31, 2024, the Company had lines of credit, including the accounts receivable securitization programs described below, totaling $ 12.8 billion, of which $ 8.8 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 $ 10 million of commercial paper outstanding at September 30, 2023.

and European commercial paper borrowing programs, against which there was $ 0.9 billion of commercial paper outstanding at March 31, 2024.

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 $ 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.

government enacted the Inflation Reduction Act of 2022 (“Inflation Act”), which includes, among other provisions, changes to the U.S.

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

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

The Programs provide the Company with up to $ 3.0 billion in funding resulting from the sale of accounts receivable with $ 0.7 billion unused capacity as of March 31, 2024.

The Company’s effective tax rate was 18.8 % for the three months ended March 31, 2024 compared to 16.1 % for the three months ended March 31, 2023.

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

The Organization for Economic Cooperation and Development’s Pillar Two initiative introduced a 15% global minimum tax applied on a country-by-country basis that has been enacted in certain jurisdictions in which the Company operates, with effective dates starting in fiscal year 2024.

The Company is in scope of the enacted legislation and has performed an assessment of the potential exposure based on its most recent tax filings, country-by-country reporting, and the financial results of the constituent entities.

Based on the assessment, the effective tax rates in most of the jurisdictions in which the Company operates are above the 15% global minimum tax threshold.

However, there are a limited number of jurisdictions where the effective tax rate is close to 15%.

ADM does not expect a material liability to global minimum tax in those jurisdictions.

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.

5 unchanged sentences

Given the long periods of time involved in resolving tax positions, the Company does not expect the recognition of unrecognized tax benefits will have a material impact on the Company’s effective income tax rate in any given period.

The Company’s subsidiary in Argentina, ADM Agro SRL (formerly ADM Argentina SA and Alfred C.

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

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.

The Company strongly believes it has complied with all Argentine tax laws.

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

While the statute of limitations has expired for tax years 2012 and 2013, the Company cannot rule out receiving additional assessments challenging transfer prices used to price grain exports for years subsequent to 2015.

The Company believes it has appropriately evaluated the transactions underlying these assessments, and has concluded, based on Argentine tax law, that its tax position is more likely than not to be sustained based upon its technical merits, and accordingly, has not recorded a tax liability for these assessments.

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

In 2014, the Company’s wholly-owned subsidiary in the Netherlands, ADM Europe B.V., received a tax assessment from the Netherlands tax authority challenging the transfer pricing aspects of a 2009 business reorganization, which involved two of its subsidiary companies in the Netherlands.

As of September 30, 2023, this assessment was $ 86 million in tax and $ 32 million in interest (adjusted for variation in currency exchange rates).

As of March 31, 2024, this assessment was $ 88 million in tax and $ 34 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.

1 unchanged sentence

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

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

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

During the quarter ended March 31, 2023, ADM filed a cross-appeal and is currently awaiting the court’s ruling.

As of March 31, 2024, the Company has accrued its best estimate of what it believes will be the likely outcome of the litigation.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Shareholders’ Equity

Accelerated Share Repurchase

On March 12, 2024, the Company entered into an accelerated share repurchase (“ASR”) transaction agreement (“ASR Agreement”) with Merrill Lynch International, an affiliate of BofA Securities, Inc., to repurchase $ 1.0 billion (the “Prepayment Amount”) of ADM common stock (“Common Stock”).

The ASR transaction is part of ADM’s existing share repurchase program to repurchase up to 200 million shares through December 31, 2024 .

Under the terms of the ASR Agreement, on March 13, 2024, the Company paid the Prepayment Amount and received no upfront shares of Common Stock.

The total number of shares of Common Stock to be repurchased under the ASR Agreement will be based on volume weighted-average prices of the Common Stock during the term of the ASR transaction less a discount and subject to certain adjustments pursuant to the terms of the ASR Agreement.

ADM will receive share deliveries at the end of each month commencing in March 2024, and upon final settlement of the ASR transaction, which is expected to occur no later than the end of the second quarter of 2024.

On March 28, 2024, the Company received an interim delivery of 8,880,986 shares at an average share price of $ 60.596 or $ 538 million.

The Prepayment Amount initially recorded in additional paid in capital was partially reclassified to reinvested earnings for the $ 538 million amount repurchased.

As of March 31, 2024, the Company had 38.5 million remaining shares under its share repurchase program.

Accumulated Other Comprehensive Income

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

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

Gain (loss) on net investment hedges 149 — — — 149

Amounts reclassified from AOCI — 132 ( 3 ) — 129

Tax effect ( 36 ) ( 28 ) ( 3 ) — ( 67 )

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

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

Nine months ended September 30, 2023

The following tables set forth the changes in AOCI by component for the three months ended March 31, 2024 and the reclassifications out of AOCI for the three months ended March 31, 2024 and 2023:

Three months ended March 31, 2024

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 ( 13 ) ( 59 ) ( 3 ) ( 8 ) ( 83 )

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

Balance at March 31, 2024 $ ( 2,552 ) $ 99 $ ( 111 ) $ ( 6 ) $ ( 2,570 )

A rcher-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Accumulated Other Comprehensive Income (Continued)

Shareholders’ Equity (Continued)

Amount reclassified from AOCI

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

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

Details about AOCI components 2024 2023

1 unchanged sentence

Deferred loss (gain) on hedging activities

$ — $ ( 1 ) $ — $ ( 1 ) Revenues

( 19 ) 104 Cost of products sold

( 19 ) 104 Total before tax

( 29 ) 17 ( 55 ) 69 Tax

$ ( 15 ) $ 86 Net of tax

4 unchanged sentences

( 2 ) ( 31 ) Total before tax

( 3 ) — ( 12 ) ( 8 ) Tax

$ ( 1 ) $ ( 43 ) Net of tax

2 unchanged sentences

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

Three Months Ended Nine Months Ended

September 30, September 30,

2023 2022 2023 2022

Three Months Ended

(In millions)

Gains on sales of assets $ ( 1 ) $ ( 35 ) $ ( 33 ) $ ( 40 )

Gains on sale of assets $ ( 2 ) $ ( 11 )

Other – net ( 24 ) ( 33 )

Other (Income) Expense – Net $ ( 26 ) $ ( 44 )

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

Notes to Consolidated Financial Statements (Continued)

Gains on sale of assets in the three months ended March 31, 2024 and 2023 consisted of gains on sales of certain assets and disposals of individually insignificant assets in the ordinary course of business.

Other – net in the three months ended March 31, 2024 included the non-service components of net pension benefit income of $ 5 million, net foreign exchange gains, and net other income.

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

Segment Information

3 unchanged sentences

The Company’s remaining operations are not reportable segments, as defined by the applicable accounting standard , and are classified as Other Business.

Intersegment sales have been recorded at amounts approximating market.

A rcher-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Segment Information (Continued)

Intersegment sales have been recorded using principles consistent with ASC 606, Revenue from Contracts with Customers .

Operating profit for each segment is based on net sales less identifiable operating expenses.

2 unchanged sentences

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.

Correction of Certain Segment-Specific Historical Financial Information

As previously disclosed, the Company received a voluntary document request from the Securities and Exchange Commission (“SEC”) relating to intersegment sales between the Company’s Nutrition segment and the Company’s Ag Services and Oilseeds and Carbohydrate Solutions segments.

In response, the Company engaged external counsel, assisted by a forensic accounting firm, to conduct an internal investigation, overseen by the Audit Committee of the Company’s Board of Directors, which is separately advised by external counsel (the “Investigation”).

The Company has historically disclosed in the footnotes to its financial statements that intersegment sales have been recorded at amounts approximating market.

In connection with the Investigation, the Company identified certain intersegment sales for the years ended December 31, 2021 through 2023 that occurred between the Company’s Nutrition segment and the Company’s Ag Services and Oilseeds and Carbohydrate Solutions segments that were not recorded at amounts approximating market.

The Company corrected these immaterial errors in its Annual Report on Form 10-K for the year ended December 31, 2023 for the years presented therein.

The correction of these immaterial errors for the quarter ended March 31, 2023 is set forth below.

The correction of these immaterial errors does not have any impact on the Company’s previously reported Consolidated Statement of Earnings, Consolidated Statement of Comprehensive Income (Loss), Consolidated Balance Sheet, Consolidated Statement of Cash Flows, or Consolidated Statement of Shareholders’ Equity as of and for the period presented below.

The following tables present:

(i) adjustments and revised gross revenues, intersegment revenues, and operating profit amounts for the Ag Services and Oilseeds segment;

(ii) adjustments and revised gross revenues, intersegment revenues and operating profit amounts for the Carbohydrate Solutions segment;

and (iii) adjustments and revised operating profit amounts for the Nutrition segment, in each case, for the three months ended March 31, 2023.

No adjustments were required to the gross revenues of the Nutrition segment.

Impact of the Adjustments on Ag Services and Oilseeds Segment Gross Revenues and Operating Profit

(In millions) Three Months Ended March 31, 2023

Gross revenues, as originally reported $ 19,914

Adjustments 1

Gross revenues, as revised $ 19,915

Intersegment revenues, as originally reported $ 1,335

Adjustments 1

Intersegment revenues, as revised $ 1,336

Segment operating profit, as originally reported $ 1,210

Adjustments 1

Segment operating profit, as revised $ 1,211

A rcher-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Segment Information (Continued)

Impact of the Adjustments on Carbohydrate Solutions Segment Gross Revenues and Operating Profit

(In millions) Three Months Ended March 31, 2023

Gross revenues, as originally reported $ 4,266

Adjustments 6

Gross revenues, as revised $ 4,272

Intersegment revenues, as originally reported $ 729

Adjustments 6

Intersegment revenues, as revised $ 735

Segment operating profit, as originally reported $ 273

Adjustments 6

Segment operating profit, as revised $ 279

Impact of the Adjustments on Nutrition Segment Operating Profit

(In millions) Three Months Ended March 31, 2023

Segment operating profit, as originally reported $ 145

Adjustments ( 7 )

Segment operating profit, as revised $ 138

Separately, the Company determined that a portion of the originally reported gross revenues and intersegment revenues of each of the Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition segments included certain intrasegment revenues (resulting from sales within the segment), and should have included exclusively intersegment revenues (resulting from sales from one segment to the other).

The correction of these immaterial errors does not have any impact on the Company’s previously reported Consolidated Statement of Earnings, Consolidated Statement of Comprehensive Income (Loss), Consolidated Balance Sheet, Consolidated Statements of Cash Flow, or Consolidated Statement of Shareholders’ Equity as of and for the period presented below.

The following tables present:

(i) additional adjustments and further revised gross revenues and intersegment revenues amounts for the Ag Services and Oilseeds segment;

(ii) additional adjustments and further revised gross revenues and intersegment revenues amounts for the Carbohydrate Solutions segment;

and (iii) adjustments and revised gross revenues and intersegment revenues amounts for the Nutrition segment, for the three months ended March 31, 2023 .

Additional Impact of the Adjustments on Ag Services and Oilseeds Segment Gross Revenues and Intersegment Revenues

(In millions) Three Months Ended March 31, 2023

Gross revenues, as revised $ 19,915

Additional adjustments ( 595 )

Gross revenues, as further revised $ 19,320

Intersegment revenues, as revised $ 1,336

Additional adjustments ( 595 )

Intersegment revenues, as further revised $ 741

A rcher-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Segment Information (Continued)

Additional Impact of the Adjustments on Carbohydrate Solutions Segment Gross Revenues and Intersegment Revenues

(In millions) Three Months Ended March 31, 2023

Gross revenues, as revised $ 4,272

Additional adjustments ( 230 )

Gross revenues, as further revised $ 4,042

Intersegment revenues, as revised $ 735

Additional adjustments ( 230 )

Intersegment revenues, as further revised $ 505

Impact of the Adjustments on Nutrition Segment Gross Revenues and Intersegment Revenues

(In millions) Three Months Ended March 31, 2023

Gross revenues, as originally reported $ 1,944

Adjustments ( 55 )

Gross revenues, as revised $ 1,889

Intersegment revenues, as originally reported $ 91

Adjustments ( 55 )

Intersegment revenues, as revised $ 36

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, 2023.

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Segment Information (Continued)

Three Months Ended Nine Months Ended

September 30, September 30,

Segment Information

Three Months Ended

(In millions) 2024 2023

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Total revenues from external customers $ 21,847 $ 24,072

A rcher-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Segment Information (Continued)

Three Months Ended Nine Months Ended

September 30, September 30,

(In millions) 2023 2022 2023 2022

Segment operating profit

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Specified Items:

Gain (loss) on sales of assets (1)

( 2 ) 29 10 30

Impairment and restructuring charges and settlement contingencies (2)

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

Gains on sale of assets (1)

Impairment and restructuring charges (2)

Total segment operating profit 1,311 1,719

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Earnings before income taxes $ 885 $ 1,397

(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.

(1) Prior quarter gains were related to the sale of certain assets.

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

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Asset Impairment, Exit, and Restructuring Costs

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.

Asset impairment, exit, and restructuring costs in the three months ended March 31, 2024 consisted of impairments related to certain long-lived assets of $ 3 million and restructuring charges of $ 3 million, presented as specified items within segment operating profit, and restructuring charges in Corporate of $ 12 million.

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

Sale of Accounts Receivable

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

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

A rcher-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Sale of Accounts Receivable (Continued)

The Second Program terminates on April 18, 2025, unless extended.

Under the First and Second Programs (collectively, the “Programs”), ADM Receivables and ADM Ireland Receivables use the cash proceeds from the transfer of receivables to the First Purchasers and Second Purchasers (collectively, the “Purchasers”) and other consideration, as applicable, to finance the purchase of receivables from the Company and the ADM subsidiaries originating the receivables.

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The Company acts as a servicer for the transferred receivables.

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.

At March 31, 2024 and December 31, 2023, 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 March 31, 2024 and December 31, 2023, the fair value of trade receivables transferred to the Purchasers under the Programs and derecognized from the Company’s consolidated balance sheets was $ 2.3 billion and $ 1.6 billion, respectively.

Total receivables sold were $ 12.3 billion and $ 15.1 billion for the three months ended March 31, 2024 and 2023, respectively.

Cash collections from customers on receivables sold were $ 11.8 billion and $ 14.8 billion for the three months ended March 31, 2024 and 2023, respectively.

As of March 31, 2024 and December 31, 2023, receivables pledged as collateral to the Purchasers was $ 0.7 billion and $ 1.1 billion, respectively.

Transfers of receivables under the Programs resulted in an expense for the loss on sale of $ 27 million and $ 23 million for the three months ended March 31, 2024 and 2023, 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.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Supplier Finance Programs

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

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

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

As of March 31, 2024 and December 31, 2023, the Company’s outstanding payment obligations that suppliers had elected to sell to the financial institutions were $ 275 million and $ 274 million, respectively.

Changes to the outstanding payment obligations are as follows:

March 31, 2024

(In millions)

Beginning, January 1, 2024 $ 274

Obligations confirmed 257

Obligations paid ( 256 )

Ending, March 31, 2024 $ 275

Legal Proceedings

The Company is routinely involved in a number of actual or threatened legal actions, including those involving alleged personal injuries, employment law, product liability, intellectual property, environmental issues, alleged tax liability (see Note 10 for information on income tax matters), and class actions.

The Company also routinely receives inquiries from regulators and other government authorities relating to various aspects of its business, and at any given time, the Company has matters at various stages of resolution.

The outcomes of these matters are not within Company’s complete control and may not be known for prolonged periods of time.

In some actions, claimants seek damages, as well as other relief including injunctive relief, that could require significant expenditures or result in lost revenues.

In accordance with applicable accounting standards, the Company records a liability in its consolidated financial statements for material loss contingencies when a loss is known or considered probable and the amount can be reasonably estimated.

If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued.

If a material loss contingency is reasonably possible but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed in the notes to the consolidated financial statements.

When determining the estimated loss or range of loss, significant judgment is required to estimate the amount and timing of a loss to be recorded.

Estimates of probable losses resulting from litigation and governmental proceedings involving the Company are inherently difficult to predict, particularly when the matters are in early procedural stages, with incomplete facts or legal discovery;

involve unsubstantiated or indeterminate claims for damages;

potentially involve penalties, fines, disgorgement, or punitive damages;

or could result in a change in business practice.

A rcher-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Legal Proceedings (Continued)

Commodities Class Actions

On September 4, 2019, AOT Holding AG (“AOT”) filed a putative class action under the U.S.

Commodities Exchange Act in federal district court in Urbana, Illinois, alleging that the Company sought to manipulate the benchmark price used to price and settle ethanol derivatives traded on futures exchanges.

On March 16, 2021, AOT filed an amended complaint adding a second named plaintiff Maize Capital Group, LLC (“Maize”).

AOT and Maize allege that members of the putative class collectively suffered damages calculated to be between approximately $ 500 million to over $ 2.0 billion as a result of the Company’s alleged actions.

On July 14, 2020, Green Plains Inc.

and its related entities (“GP”) filed a putative class action lawsuit, alleging substantially the same operative facts, in federal court in Nebraska, seeking to represent sellers of ethanol.

On July 23, 2020, Midwest Renewable Energy, LLC (“MRE”) filed a putative class action in federal court in Illinois alleging substantially the same operative facts and asserting claims under the Sherman Act.

On November 11, 2020, United Wisconsin Grain Producers LLC (“UWGP”) and five other ethanol producers filed a lawsuit in federal court in Illinois alleging substantially the same facts and asserting claims under the Sherman Act and Illinois, Iowa, and Wisconsin law.

The court granted ADM’s motion to dismiss the MRE and UWGP complaints without prejudice on August 9, 2021 and September 28, 2021, respectively.

On August 16, 2021, the court granted ADM’s motion to dismiss the GP complaint, dismissing one claim with prejudice and declining jurisdiction over the remaining state law claim.

MRE filed an amended complaint on August 30, 2021, which ADM moved to dismiss on September 27, 2021.

The court denied ADM’s motion to dismiss on September 26, 2023.

UWGP filed an amended complaint on October 19, 2021, which the court dismissed on July 12, 2022.

UWGP has appealed the dismissal to the United States Court of Appeals for the Seventh Circuit.

On October 26, 2021, GP filed a new complaint in Nebraska federal district court, alleging substantially the same facts and asserting a claim for tortious interference with contractual relations.

On March 18, 2022, the Nebraska federal district court granted ADM’s motion to transfer the GP case back to the Central District of Illinois for further proceedings.

ADM moved to dismiss the complaint on May 20, 2022 and on December 30, 2022, the court dismissed GP’s complaint with prejudice.

GP appealed the dismissal.

On January 12, 2024, the appellate court vacated the dismissal and remanded the case to the district court for further proceedings.

On March 8, 2024, GP filed an amended complaint.

The Company denies liability, and is vigorously defending itself in these actions.

As these actions are in pretrial proceedings, the Company is unable at this time to predict the final outcome with any reasonable degree of certainty, but believes the outcome will not have a material adverse effect on its financial condition, results of operations, or cash flows.

Intersegment Sales Investigations

On June 30, 2023, the Company received a voluntary document request from the SEC relating to intersegment sales between the Company’s Nutrition reporting segment and the Company’s Ag Services and Oilseeds and Carbohydrate Solutions reporting segments, and subsequently received an additional document request from the SEC.

The Company is cooperating with the SEC.

Following the Company’s January 21, 2024 announcement of the Investigation, the Company received document requests from the Department of Justice (“DOJ”) focused primarily on the same subject matter, and the DOJ directed grand jury subpoenas to certain current and former Company employees.

The Company is cooperating with the DOJ.

The Company is unable to predict the final outcome of these investigations with any reasonable degree of certainty.

Securities Litigation

On January 24, 2024, following the Company’s January 21, 2024 announcement of the investigation relating to intersegment sales, a purported stockholder of the Company filed a putative class action in the U.S.

District Court for the Northern District of Illinois against the Company and its Chief Executive Officer, as well as Vikram Luthar and Ray Young.

The plaintiff alleges false and misleading statements in the Company’s disclosures and seeks unspecified compensatory and punitive damages.

On March 29, 2024 and April 12, 2024, purported stockholders of the Company filed derivative lawsuits in the U.S.

District Court for the Northern District of Illinois against the Chief Executive Officer, Vikram Luthar, Ray Young, and certain individual ADM Directors, alleging false and misleading statements in the Company’s proxy statements, breach of fiduciary duty, and corporate waste, among other claims, and seeking unspecified damages.

On April 23, 2024, a purported stockholder of the Company filed a derivative lawsuit in the U.S.

District Court for the District of Delaware against the Chief Executive Officer, Vikram Luthar, Ray Young, and certain individual ADM Directors, asserting claims for breach of fiduciary duty and contribution and indemnification under the Securities Exchange Act and seeking unspecified damages.

The Company is unable to predict the final outcome of these proceedings with any reasonable degree of certainty.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Subsequent Event

On April 15, 2024, the Company received a final delivery of 7,325,733 shares at an average share price of $ 63.065 or $ 462 million as final settlement of the ASR transaction (see Note 11 for more information).

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

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

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

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

a premier human and animal nutrition provider;

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

and a company concerned about sustainability.

and a leader in sustainability.

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

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ADM’s recent significant portfolio actions and announcements include:

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

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

• the announcement in May 2023 of a Strategic Development Agreement with Air Protein, a pioneer in air-based nutritional protein that requires no agriculture or farmland, decoupling protein production from traditional supply chain risks, to collaborate on research and development to further advance new and novel proteins for nutrition;

• the announcement in May 2023 of an agreement to acquire D.C.A.

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 and;

• 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.

states and Canada in 2023, and 4 million acres globally by 2025.

• the acquisitions in January 2024 of Revela Foods, a Wisconsin-based developer and manufacturer of innovative dairy flavor ingredients and solutions and FDL, a UK-based leading developer and producer of premium flavor and functional ingredient systems.

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

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and (3) increased use of technology, data analytics, and automation at production facilities, in offices, and with customers to improve efficiencies and customer service.

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

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

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

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

All of these efforts will continue to be strengthened by the Company’s ongoing commitment to its Readiness initiative as described in Part I Item 4 “Controls and Procedures” on page 55.

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

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

Environmental and Social Responsibility

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

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

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

ADM is committed to eliminating deforestation from all of the Company’s supply chains by 2025.

In 2023, after a strategic investigation of the impact of conversion of native habitats in its key supply chains, the Company announced its commitment to eliminate conversion of native habitats in high risk areas in South America for direct suppliers of all commodities by 2025 and indirect suppliers by 2027, with a 2025 cutoff date (a date after which conversion of primary native vegetation renders a given area or production unit non-compliant) for both direct and indirect suppliers.

The Company’s environmental goals, collectively called “Strive 35” – an ambitious plan to, by 2035, reduce absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 25 percent from a 2019 baseline, reduce Scope 3 emissions by 25% from a 2021 baseline, reduce energy intensity by 15 percent from a 2019 baseline, reduce water intensity by 10 percent from a 2019 baseline, and achieve a 90 percent landfill diversion rate.

In 2023, ADM refined two of its Strive 35 commitments to more meaningfully drive progress:

ADM aims to reduce its absolute water withdrawal by 10%, from a 2019 baseline, by 2035, and ADM aims to increase its use of low-carbon energy sources to 25% of total energy used by 2035.

Operating Performance Indicators

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These risks are further described in Part I Item 1A, “Risk Factors” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

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

selling prices move in relationship to changes in prices of the commodity-based agricultural raw materials.

The Company’s Ag Services and Oilseeds and Carbohydrate Solutions operations are principally agricultural commodity-based businesses where changes in selling prices move in relationship to changes in prices of the commodity-based agricultural raw materials.

As a result, changes in agricultural commodity prices have relatively equal impacts on both revenues and cost of products sold.

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Thus, gross margins per volume or metric ton are more meaningful than gross margins as percentage of revenues.

The Company’s Carbohydrate Solutions operations and Nutrition businesses also utilize agricultural commodities (or products derived from agricultural commodities) as raw materials.

The Nutrition businesses also utilize agricultural commodities (or products derived from agricultural commodities) as raw materials.

However, in these operations, agricultural commodity market price changes do not necessarily correlate to changes in cost of products sold.

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Thus, gross margins rates are more meaningful as a performance indicator in these businesses.

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

The Company has consolidated subsidiaries in more than 70 countries.

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

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

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

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

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

For more information, see “Non-GAAP Financial Measures” on pages 44 to 45 and 51 to 52.

For more information, see “Non-GAAP Financial Measures” on page 43 .

The Company’s financial results can vary significantly due to changes in factors such as fluctuations in energy prices, weather conditions, crop plantings, government programs and policies, trade policies, changes in global demand, general global economic conditions, changes in standards of living, global production of similar and competitive crops, and geopolitical developments.

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

Operations in Ukraine and Russia

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

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

While the Company’s Ukraine and Russian operations have historically represented less than 0.2% of consolidated revenues, the direct and indirect impacts of the ongoing military action could negatively affect ADM’s future operating results.

The conflict in Ukraine has created disruptions in global supply chains and has created dislocations of key agricultural commodities.

The indirect impact of these dislocations on the Company’s operating results will be a function of a number of variables including supply and demand responses from the rest of the world as well as the length of the conflict and the condition of the agricultural industry and export infrastructure after the conflict ends.

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 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 September 30, 2023

Intersegment Sales - Correction of Certain Segment-Specific Historical Information and Related Matters

As further described in Note 13, Segment Information of “Notes to Consolidated Financial Statements” included in Part I, Item 1 herein, the Company conducted an Investigation following receipt of a voluntary document request from the SEC.

As disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, based on the Investigation, the Company corrected certain segment-specific historical financial information for the years presented in the Form 10-K.

Because each sale to be adjusted occurred between the Company’s reporting segments, the adjustments had no impact on the Company’s previously-reported consolidated balance sheets and statements of earnings, comprehensive income (loss), or cash flows.

The Company determined the adjustments are not material to the Company’s consolidated financial statements taken as a whole for any period.

As further described in Note 13, Segment Information of “Notes to Consolidated Financial Statements” included in Part I, Item 1 herein, the Company also corrected certain immaterial errors relating to the classification of certain intrasegment revenues.

Additional information about such error corrections is set forth in Note 13, Segment Information of “Notes to Consolidated Financial Statements” included in Part I, Item 1 herein.

Note 13 also includes adjustments to certain corresponding segment-specific historical financial information for the three months ended March 31, 2023 to reflect these immaterial error corrections.

The information in this MD&A reflects the corrections to the historical financial information for the three months ended March 31, 2023.

Market Factors Influencing Operations or Results in the Three Months Ended March 31, 2024

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 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 Ag Services and Oilseeds, following two years of very favorable market conditions, several headwinds in the agriculture cycle led to more normalized results throughout the entire value chain.

Ag Services experienced slow South American farmer selling, low demand for North American exports, along with low margins in all regions with the move to a carry market.

Crushing saw strong run rates, the anticipation of a more normal global supply environment, and new capacity suppressing meal values.

In Refined Products and Other, oil values in North America were under pressure due to low carbon intensity feedstocks competing in the renewable diesel market.

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

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.

Industry ethanol stocks remained elevated.

Solid export demand for ethanol helped minimize the imbalance between supply and demand.

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

Human Nutrition was impacted by inflation which drove lower demand and impacted volumes in alternative proteins.

Demand has started to recover in the food, beverage, and dietary supplement segment.

In Animal Nutrition, a soft amino acids market driven by price weakness in North America was partially compensated by a slightly improved market in Europe, Middle East, and Africa (EMEA).

The global feed and feed additives market remained challenged on the demand side, with weakness in the Chinese beef and pork business and continued subdued global shrimp prices.

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

Three Months Ended March 31, 2024 Compared to Three Months Ended March 31, 2023

Net earnings attributable to controlling interests decreased $0.4 billion from $1.2 billion to $0.7 billion.

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.

Segment operating profit decreased $0.4 billion from $1.7 billion to $1.3 billion and included asset impairment and restructuring charges totaling $6 million.

Included in segment operating profit in the prior-year quarter was a net charge of $6 million consisting of charges totaling $7 million related to asset impairment and restructuring, partially offset by a gain on the sale of certain assets of $1 million.

Adjusted segment operating profit (a non-GAAP measure) decreased $0.4 billion to $1.3 billion due primarily to lower results in Refined Products and Other, Ag Services, Crushing, Human Nutrition, and Starches and Sweeteners, partially offset by higher results in Wilmar, Vantage Corn Processors, Other Business, and Animal Nutrition.

Corporate results in the current quarter were a net charge of $426 million and included restructuring charges of $12 million.

Corporate results in the prior-year quarter were a net charge of $322 million and included a mark-to-market gain of $5 million on the conversion option of the exchangeable bonds issued in August 2020.

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.

Income tax expense decreased $59 million to $166 million.

The effective tax rate for the quarter ended March 31, 2024 was 18.8% compared to 16.1% for the quarter ended March 31, 2023.

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

Analysis of Statements of Earnings

1 unchanged sentence

Three Months Ended

September 30,

(In thousands) 2024 2023 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 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.

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 weather related issues and reduced capacity due to the Russian-Ukraine war.

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

1 unchanged sentence

Three Months Ended

September 30,

2024 2023 Change

17 unchanged sentences

Revenues decreased $2.2 billion to $21.8 billion due to lower sales prices ($5.0 billion), partially offset by higher sales volumes ($2.8 billion).

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.

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

Ag Services and Oilseeds revenues decreased 7% to $17.2 billion due to lower sales prices ($4.3 billion), partially offset by higher sales volumes ($3.0 billion).

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).

Carbohydrate Solutions revenues decreased 24% to $2.7 billion due to lower sales prices ($0.7 billion) and lower sales volumes ($0.2 billion).

Nutrition revenues of $1.8 billion was comparable to the prior-year quarter.

Cost of products sold decreased $1.8 billion to $20.2 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).

Manufacturing expenses decreased $86 million to $1.8 billion due principally to lower energy costs, partially offset by higher salaries and benefit costs and commercial service fees.

Foreign currency translation increased revenues by $64 million and cost of products sold by $64 million.

Gross profit decreased $0.4 billion or 20% to $1.7 billion.

Lower results in Ag Services and Oilseeds ($363 million), Starches and Sweeteners ($58 million), and Human Nutrition ($48 million) were partially offset by higher results in Vantage Corn Processors ($18 million), Animal Nutrition ($17 million), and Other ($17 million).

These factors are explained in the segment operating profit discussion on page 42.

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.

Selling, general, and administrative expenses increased $70 million to $951 million due primarily to higher legal and professional fees, increased amortization of intangibles, and 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 $11 million to $18 million.

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 $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.

Charges in the current quarter consisted of $3 million of impairments related to certain long-lived assets and $3 million of restructuring, presented as specified items within segment operating profit, and restructuring of $12 million in Corporate.

Charges in the prior-year quarter consisted of $3 million of impairments related to certain long-lived assets and $4 million of restructuring, presented as specified items within segment operating profit.

Equity in earnings of unconsolidated affiliates increased $38 million to $212 million due primarily to higher earnings from the Company’s investment in Wilmar.

Interest and investment income decreased $11 million to $123 million due primarily to a valuation loss related to an investment in alternative protein and precision fermentation, partially offset by higher interest income driven by higher interest rates.

Interest expense increased $19 million to $166 million due primarily to increased short-term rates on customer deposit balances in ADM Investor Services.

Interest expense in the prior-year quarter also included a mark-to-market gain adjustment of $5 million related to the conversion option of the exchangeable bonds issued in August 2020.

Other income-net decreased $18 million to $26 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, and 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, and net foreign exchange gains.

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

2024 2023 Change

(In millions)

Earnings before income taxes $ 885 $ 1,397 $ (512)

Corporate results 426 322 104

Segment Operating Profit 1,311 1,719 (408)

Specified Items:

Gains on sale of assets — (1) 1

Impairment and restructuring charges 6 7 (1)

Adjusted Segment Operating Profit $ 1,317 $ 1,725 $ (408)

Ag Services and Oilseeds

12 unchanged sentences

Other Business $ 121 $ 97 $ 24

Specified Items:

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)

Total Segment Operating Profit $ 1,421 $ 1,559 $ (138)

Adjusted Segment Operating Profit (1)

$ 1,492 $ 1,579 $ (87)

Segment Operating Profit $ 1,421 $ 1,559 $ (138)

Corporate (390) (329) (61)

Earnings Before Income Taxes $ 1,031 $ 1,230 $ (199)

(1) Adjusted segment operating profit is segment operating profit excluding the above specified items.

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

Ag Services and Oilseeds operating profit decreased 29%.

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.

Ag Services results were lower than the first quarter of 2023 due to the stabilization of trade flows leading to lower global trade and risk management results.

Crushing results were lower than the prior-year quarter as increased imports of used cooking oil and the anticipation of large South American supplies negatively impacted North American soy crush margins.

Significant positive mark-to-market timing impacts that contributed to the prior-year quarter results also drove lower results in the current quarter.

Refined Products and Other results were lower than the prior-year quarter as the increased imports of used cooking oil negatively impacted refining margins in North America.

Negative mark-to-market timing impacts affected current quarter results versus positive impacts in the prior-year quarter.

Equity earnings from Wilmar were higher versus the first quarter of 2023.

Carbohydrate Solutions operating profit decreased 11%.

Starches and Sweeteners results were lower year-over-year as strong starches and sweeteners margins were offset by lower domestic ethanol margins due to strong industry production and elevated stocks, as well as moderating margins in the EMEA region.

Vantage Corn Processors results improved year-over-year as strong demand for sustainably certified exports of ethanol supported volumes and margins .

Nutrition operating profit decreased 39%.

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.

Human Nutrition results were lower than the first quarter of 2023 as impacts related to unplanned downtime at Decatur East and a normalizing texturants market negatively impacted margins.

Animal Nutrition results were higher compared to the same quarter last year as cost optimization efforts and lower input costs bolstered margins.

Other Business operating profit increased $24 million.

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

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

Captive insurance results were higher due to higher program premiums and lower claims.

ADM Investor Services results improved on higher net interest income.

Corporate results for the quarter are as follows:

Three Months Ended

September 30,

2024 2023 Change

2 unchanged sentences

Unallocated corporate costs (304) (248) (56)

Expenses related to acquisitions (3) — (3)

Gain on debt conversion option — 5 (5)

2 unchanged sentences

Total Corporate $ (426) $ (322) $ (104)

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)

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.

Corporate results were a net charge of $426 million in the current quarter compared to a net charge of $322 million in the prior-year quarter.

Interest expense-net increased $7 million due primarily to lower capitalized interest.

Unallocated corporate costs increased $56 million due primarily to increases in legal and professional fees, global technology spend, incentive compensation accruals, and financing 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.

Other income in the current quarter includes foreign exchange gains of $15 million and the non-service components of net pension benefit income of $5 million offset by an investment revaluation loss of $18 million.

Other income in the prior-year quarter included the non-service components of net pension benefit income of $4 million and foreign exchange gains of $22 million.

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

Non-GAAP Financial Measures

The Company uses adjusted EPS, adjusted EBITDA, and adjusted segment operating profit, non-GAAP financial measures as defined by the Securities and Exchange Commission, to evaluate the Company’s financial performance.

The Company uses adjusted net earnings, adjusted earnings per share (EPS), adjusted EBITDA, and adjusted segment operating profit, non-GAAP financial measures as defined by the SEC, to evaluate the Company’s financial performance.

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

Adjusted net earnings is defined as net earnings adjusted for the effects on net earnings of specified items.

Adjusted EPS is defined as diluted EPS adjusted for the effects on reported diluted EPS of specified items.

Adjusted EBITDA is defined as earnings before interest on borrowings, taxes, depreciation, and amortization, adjusted for specified items.

The Company calculates adjusted EBITDA by removing the impact of specified items and adding back the amounts of interest expense on borrowings and depreciation and amortization to earnings before income taxes.

Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, and amortization, adjusted for specified items.

The Company calculates adjusted EBITDA by removing the impact of specified items and adding back the amounts of income tax expense, interest expense on borrowings, and depreciation and amortization to net earnings.

Adjusted segment operating profit is segment operating profit adjusted, where applicable, for specified items.

Management believes that adjusted EPS, adjusted EBITDA, and adjusted segment operating profit are useful measures of the Company’s performance because they provide investors additional information about the Company’s operations allowing better evaluation of underlying business performance and better period-to-period comparability.

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 September 30, 2023 and 2022.

Three months ended September 30,

Management believes that adjusted net earnings, adjusted EPS, adjusted EBITDA, and adjusted segment operating profit are useful measures of the Company’s performance because they provide investors additional information about the Company’s operations allowing better evaluation of underlying business performance and better period-to-period comparability.

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

The table below provides a reconciliation of net earnings to adjusted net earnings and diluted EPS to adjusted EPS for the three months ended March 31, 2024 and 2023.

Three months ended March 31,

In millions Per share In millions Per share

1 unchanged sentence

Net earnings and reported EPS (fully diluted) $ 729 $ 1.42 $ 1,170 $ 2.12

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)

Gain on debt conversion option - net of tax of $0 (1)

Gains on sale of assets - net of tax of $0 million (1)

Gain on debt conversion option - net of tax of $0 million (1)

— — (5) (0.01)

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

Impairment and restructuring charges - net of tax of $0 million in 2024 and $2 million in 2023 (1)

18 0.03 5 0.01

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

Certain discrete tax adjustments 3 0.01 (18) (0.03)

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 September 30, 2023 and 2022.

The tables below provide a reconciliation of net earnings to adjusted EBITDA and adjusted EBITDA by segment for the three months ended March 31, 2024 and 2023.

Three months ended

September 30,

(In millions) 2024 2023 Change

Earnings before income taxes $ 1,031 $ 1,230 $ (199)

Net earnings $ 729 $ 1,170 $ (441)

Net earnings (losses) attributable to noncontrolling interests (10) 2 (12)

Income tax expense 166 225 (59)

Interest expense 115 100 15

Depreciation and amortization 280 259 21

EBITDA 1,280 1,756 (476)

(Gain) loss on sales of assets and businesses — (1) 1

Expenses related to acquisitions 3 — 3

Railroad maintenance expenses 26 32 (6)

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

Impairment and restructuring charges 18 7 11

Adjusted EBITDA $ 1,298 $ 1,762 $ (464)

Three months ended

September 30,

(In millions) 2024 2023 Change

5 unchanged sentences

Adjusted EBITDA $ 1,298 $ 1,762 $ (464)

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

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 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.

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.

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

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.

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 $0.3 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.

Corporate results in the prior period were a net charge of $0.9 billion and included a mark-to-market gain of $12 million on the conversion option of the exchangeable bonds issued in August 2020.

Income taxes of $636 million decreased $43 million.

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 nine months ended September 30, 2023 and 2022 are as follows (in metric tons):

Nine Months Ended

September 30,

(In thousands) 2023 2022 Change

Oilseeds 26,058 24,387 1,671

Corn 13,349 13,969 (620)

Total 39,407 38,356 1,051

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

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

(In millions)

Ag Services and Oilseeds

Ag Services $ 35,259 $ 38,717 $ (3,458)

Crushing 10,515 9,804 711

Refined Products and Other 9,128 10,302 (1,174)

Total Ag Services and Oilseeds 54,902 58,823 (3,921)

Carbohydrate Solutions

Starches and Sweeteners 7,660 7,697 (37)

Vantage Corn Processors 2,583 3,001 (418)

Total Carbohydrate Solutions 10,243 10,698 (455)

Human Nutrition 2,802 2,884 (82)

Animal Nutrition 2,688 2,907 (219)

Total Nutrition 5,490 5,791 (301)

Other Business 322 305 17

Total $ 70,957 $ 75,617 $ (4,660)

Revenues and cost of products sold in a commodity merchandising and processing business are significantly correlated to the underlying commodity prices and volumes.

During periods of significant changes in commodity prices, the underlying performance of the Company is better evaluated by looking at margins because both revenues and cost of products sold, particularly in Ag Services and Oilseeds, generally have a relatively equal impact from commodity price changes, which generally result in an insignificant impact to gross profit.

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 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 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).

Cost of products sold decreased $4.6 billion to $65.2 billion due principally to lower average commodity costs partially offset by higher manufacturing expenses.

Manufacturing expenses increased $0.4 billion to $5.5 billion due principally to increases in energy costs, maintenance expenses, salaries and benefit costs, commercial service fees, and lease expense.

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

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 $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 $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 $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, and net foreign exchange gains.

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, net foreign exchange gains, and net other income.

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 nine months ended September 30, 2023 and 2022 are as follows:

Nine Months Ended

September 30,

Segment Operating Profit (Loss) 2023 2022 Change

(In millions)

Ag Services and Oilseeds

Ag Services $ 954 $ 957 $ (3)

Crushing 900 1,242 (342)

Refined Products and Other 1,026 623 403

Wilmar 232 380 (148)

Total Ag Services and Oilseeds 3,112 3,202 (90)

Carbohydrate Solutions

Starches and Sweeteners 987 1,036 (49)

Vantage Corn Processors 49 63 (14)

Total Carbohydrate Solutions 1,036 1,099 (63)

Human Nutrition 440 470 (30)

Animal Nutrition 28 135 (107)

Total Nutrition 468 605 (137)

Other Business 229 78 151

Specified Items:

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)

Total Segment Operating Profit $ 4,665 $ 4,938 $ (273)

Adjusted Segment Operating Profit (1)

$ 4,845 $ 4,984 $ (139)

Segment Operating Profit $ 4,665 $ 4,938 $ (273)

Corporate (1,105) (918) (187)

Earnings Before Income Taxes $ 3,560 $ 4,020 $ (460)

(1) Adjusted segment operating profit is segment operating profit excluding the above specified items.

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

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 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.

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.

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

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, 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.

Carbohydrate Solutions operating profit decreased 6%.

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

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

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 driven by solid customer demand.

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 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.

Other Business operating profit increased $151 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.

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

Nine Months Ended

September 30,

2023 2022 Change

(In millions)

Interest expense-net $ (326) $ (239) (87)

Unallocated corporate costs (808) (727) (81)

Loss on sale of assets — (3) 3

Expenses related to acquisitions (6) (2) (4)

Gain on debt conversion option 6 12 (6)

Restructuring (charges) adjustment (5) 2 (7)

Other income 34 39 (5)

Total Corporate $ (1,105) $ (918) $ (187)

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

Corporate results were a net charge of $1.1 billion in the current period compared to a net charge of $0.9 billion in the prior period.

Interest expense-net increased $87 million due primarily to increased short-term rates on the Company’s commercial paper borrowing programs and increased interest expense from new debt issuances.

Unallocated corporate costs increased $81 million due primarily to higher financing, information technology, and centers of excellence costs, partially offset by lower incentive compensation accruals.

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 $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

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

Adjusted EPS is defined as diluted EPS adjusted for the effects on reported diluted EPS of specified items.

Adjusted EBITDA is defined as earnings before interest on borrowings, taxes, depreciation, and amortization, adjusted for specified items.

Adjusted segment operating profit is segment operating profit adjusted, where applicable, for specified items.

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

Average number of shares outstanding - diluted 546 566

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

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

152 0.28 60 0.10

Expenses related to acquisitions - net of tax of $1 million in 2023 and 2022 (1)

Gain on debt conversion option - net of tax of $0 (1)

(6) (0.01) (12) (0.02)

Certain discrete tax adjustments 3 0.01 2 —

Total adjustments 147 0.27 31 0.04

Adjusted net earnings and adjusted EPS $ 3,065 $ 5.62 $ 3,352 $ 5.91

(1) Tax effected using the U.S.

and other applicable tax rates.

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 nine months ended September 30, 2023 and 2022.

Nine months ended

September 30,

(In millions) 2023 2022 Change

Earnings before income taxes $ 3,560 $ 4,020 $ (460)

Interest expense 321 262 59

Depreciation and amortization 782 774 8

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 settlement contingencies 195 74 121

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

Nine months ended

September 30,

(In millions) 2023 2022 Change

Ag Services and Oilseeds $ 3,380 $ 3,469 $ (89)

Carbohydrate Solutions 1,271 1,337 (66)

Nutrition 668 800 (132)

Other Business 225 103 122

Corporate (662) (563) (99)

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

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