What changed in this filing

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Item 1. Financial Statements

2024-11-18 compared with 2024-11-18 · 395 added, 419 removed, 835 unchanged (49% of the section changed)

3 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2024 2023 2024 2023

(In millions, except per share amounts)

22 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2024 2023 2024 2023

(In millions)

20 unchanged sentences

Consolidated Balance Sheets

(In millions) June 30, 2024 December 31, 2023

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

Current Assets

46 unchanged sentences

Consolidated Statements of Cash Flows

(In millions) Six Months Ended

(In millions) Three Months Ended

Operating Activities

23 unchanged sentences

Investments in affiliates ( 4 ) ( 4 )

Distributions from affiliates 2 —

Cost method investments — ( 5 )

Other – net 11 ( 10 )

1 unchanged sentence

Financing Activities

Long-term debt borrowings — 500

Long-term debt payments — ( 2 )

22 unchanged sentences

(In millions, except per share amounts) Shares Amount

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

Comprehensive income

Net earnings 486 ( 5 )

Other comprehensive income (loss) ( 310 ) ( 1 )

Total comprehensive income 170

Cash dividends paid - $ 0.50 per share ( 247 ) ( 247 )

Share repurchases ( 24 ) 462 ( 1,480 ) ( 1,018 )

Stock compensation expense 18 18

Other — — — — 4 4

Balance, June 30, 2024 478 3,200 $ 21,828 $ ( 2,880 ) $ 11 $ 22,159

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

5 unchanged sentences

Share repurchases ( 13 ) ( 868 ) ( 868 )

Share repurchases prepayment ( 462 ) ( 462 )

Stock compensation expense 3 66 66

1 unchanged sentence

Other — 3 — — 13 16

Balance, June 30, 2024 478 $ 3,200 $ 21,828 $ ( 2,880 ) $ 11 $ 22,159

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

Comprehensive income

Net earnings 927 1

Other comprehensive income (loss) 30 ( 1 )

Total comprehensive income 957

Cash dividends paid - $ 0.45 per share ( 246 ) ( 246 )

Share repurchases ( 9 ) ( 654 ) ( 654 )

Stock compensation expense — 21 21

Stock option exercises net of taxes — 1 1

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

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

8 unchanged sentences

Other — 2 — — 4 6

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

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 six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.

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/A for the year ended December 31, 2023 for Archer-Daniels-Midland Company (the Company or ADM).

11 unchanged sentences

As previously disclosed in Note 13.

Segment Information, to ADM’s consolidated financial statements included in the Form 10-Q for the quarter ended June 30, 2024, ADM identified and corrected certain intersegment sales amounts that either (i) were not in accordance with prior disclosures about presenting such sales at amounts approximating market or (ii) included intrasegment sales (resulting from sales within the segment) and should have included exclusively intersegment sales (resulting from sales from one segment to another).

Segment Information, to ADM’s consolidated financial statements included in the Form 10-Q for the quarter ended March 31, 2024, ADM identified and corrected certain intersegment sales amounts that either (i) were not in accordance with prior disclosures about presenting such sales at amounts approximating market or (ii) included intrasegment sales (resulting from sales within the segment) and should have included exclusively intersegment sales (resulting from sales from one segment to another).

In connection with the error corrections, ADM identified a material weakness in its internal control over financial reporting related to its accounting practices and procedures for intersegment sales.

12 unchanged sentences

which previously were reflected in the calculation of total segment operating profit, are now reflected as reconciling items, similar to Corporate, between total segment operating profit and earnings before income taxes.

The Company has restated its consolidated financial statements for the quarters ended June 30, 2024 and 2023 in Note 13, Segment Information (Unaudited).

The Company has restated its Consolidated Financial Statements for the quarters ended March 31, 2024 and 2023 in Note 13, Segment Information (Unaudited).

Segregated Cash and Investments

10 unchanged sentences

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

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

Three Months Ended June 30

(In millions)

Beginning, April 1 $ 216 $ 182

Current year provisions ( 12 ) 9

Write-offs against allowance ( 3 ) ( 16 )

Foreign exchange translation adjustment ( 1 ) —

Other ( 6 ) ( 1 )

Ending, June 30 $ 194 $ 174

Six Months Ended June 30

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

March 31, 2024 March 31, 2023

(In millions)

4 unchanged sentences

Foreign exchange translation adjustment 1 1

Other ( 6 ) —

Ending, June 30 $ 194 $ 174

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.

Archer-Daniels-Midland Company

1 unchanged sentence

Basis of Presentation and Restatement of Previously Filed Consolidated Financial Statements (Continued)

Current year provisions in the three months ended June 30, 2024 include reversals of prior general provisions for economic factors related to the pandemic.

Write-offs against allowance in the three months and six months ended June 30, 2024 were primarily related to trade receivables and long-term receivables, respectively.

Write-offs against allowance in the three months ended June 30, 2023 were primarily related to a customer in Brazil.

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

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

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

The following table sets forth the Company’s inventories as of June 30, 2024 and December 31, 2023.

June 30, 2024 December 31, 2023

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)

3 unchanged sentences

Total inventories $ 11,634 $ 11,957

Included in raw materials and supplies are work in process inventories which were not material as of June 30, 2024 and December 31, 2023.

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 $ 440 million and $ 438 million as of June 30, 2024 and December 31, 2023, respectively, were included in Other Assets in the Company’s consolidated balance sheets.

Revaluation losses of $ 18 million in the six months ended June 30, 2024 were related to an investment in alternative protein and precision fermentation, partially offset by an upward adjustment of $ 2 million in the six months ended June 30, 2024.

There were no revaluation gains or losses in the three and six months ended June 30, 2023.

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 June 30, 2024, the cumulative amounts of upward and downward adjustments were $ 115 million and $ 94 million, respectively.

Investments in Affiliates

The Company applies the equity method of accounting for investments over which the Company has the ability to exercise significant influence, including its 22.5 % investment in Wilmar International Limited (“Wilmar”).

The Company’s investment in Wilmar had a carrying value of $ 4.1 billion as of June 30, 2024, and a market value of $ 3.2 billion based on the quoted Singapore Exchange market price converted to U.S.

dollars at the applicable exchange rate at June 30, 2024.

Wilmar does not have a recent history of operating losses, has positive working capital and positive cash flows and has a long history of paying dividends.

A significant portion of the decline in market value of Wilmar based on the quoted Singapore Exchange market price occurred during the quarter ended June 30, 2024.

The Company considers its investment in Wilmar a significant and strategic relationship and has the intent and ability to retain its investment in Wilmar for a period of time sufficient to allow for any anticipated recovery in market value.

Based on the evaluation of the factors above and the Company’s evaluation of the near-term prospects of Wilmar in relation to the severity and duration of the decline in fair value, the Company does not consider the investment to be other-than-temporarily impaired at June 30, 2024.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

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

New Accounting Standards

2 unchanged sentences

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.

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

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.

6 unchanged sentences

Revenue Recognition

The Company principally generates revenue from merchandising and transporting agricultural commodities, and manufacturing products for use in food, beverages, feed, energy, and industrial applications, and ingredients and solutions for human and animal nutrition.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Revenues (Continued)

animal nutrition.

Revenue is measured based on the consideration specified in the contract with a customer.

3 unchanged sentences

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

The Company recognized revenue from transportation service contracts of $ 252 million and $ 445 million for the three and six months ended June 30, 2024, respectively, and $ 200 million and $ 378 million for the three and six months ended June 30, 2023, 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.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

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 $ 364 million and $ 626 million as of June 30, 2024 and December 31, 2023, respectively, were recorded in accrued expenses and other payables in the consolidated balance sheets.

Revenues recognized in the three and six months ended June 30, 2024 from the December 31, 2023 contract liabilities were $ 120 million and $ 355 million, respectively.

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 six months ended June 30, 2024 and 2023.

Three Months Ended June 30, 2024

Topic 606 Revenue Topic 815 (1)

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

Ag Services and Oilseeds

Ag Services $ 925 $ 252 $ 1,177 $ 10,569 $ 11,746

Crushing 104 — 104 2,746 2,850

Refined Products and Other 523 — 523 2,214 2,737

Total Ag Services and Oilseeds 1,552 252 1,804 15,529 17,333

Carbohydrate Solutions

Starches and Sweeteners 1,654 — 1,654 557 2,211

Vantage Corn Processors 683 — 683 — 683

Total Carbohydrate Solutions 2,337 — 2,337 557 2,894

Human Nutrition 1,061 — 1,061 — 1,061

Animal Nutrition 847 — 847 — 847

Total Nutrition 1,908 — 1,908 — 1,908

Total Segment Revenues 5,797 252 6,049 16,086 22,135

Other Business 113 — 113 — 113

Total Revenues $ 5,910 $ 252 $ 6,162 $ 16,086 $ 22,248

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

Archer-Daniels-Midland Company

1 unchanged sentence

Revenues (Continued)

Six Months Ended June 30, 2024

Three Months Ended March 31, 2024

Topic 606 Revenue Topic 815 (1)

Point in Time Over Time Total Revenue Revenues

(In millions)

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

Ag Services and Oilseeds

13 unchanged sentences

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

Three Months Ended June 30, 2023

Three Months Ended March 31, 2023

Topic 606 Revenue Topic 815 (1)

15 unchanged sentences

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

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

Archer-Daniels-Midland Company

1 unchanged sentence

Revenues (Continued)

Six Months Ended June 30, 2023

Topic 606 Revenue Topic 815 (1)

Point in Time Over Time Total Revenue Revenues

(In millions)

Ag Services and Oilseeds

Ag Services $ 2,088 $ 378 $ 2,466 $ 22,595 $ 25,061

Crushing 223 — 223 6,940 7,163

Refined Products and Other 1,203 — 1,203 4,996 6,199

Total Ag Services and Oilseeds 3,514 378 3,892 34,531 38,423

Carbohydrate Solutions

Starches and Sweeteners 3,956 — 3,956 1,256 5,212

Vantage Corn Processors 1,706 — 1,706 — 1,706

Total Carbohydrate Solutions 5,662 — 5,662 1,256 6,918

Human Nutrition 1,902 — 1,902 — 1,902

Animal Nutrition 1,804 — 1,804 — 1,804

Total Nutrition 3,706 — 3,706 — 3,706

Total Segment Revenues 12,882 378 13,260 35,787 49,047

Other Business 215 — 215 — 215

Total Revenues $ 13,097 $ 378 $ 13,475 $ 35,787 $ 49,262

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

Ag Services and Oilseeds

The Ag Services and Oilseeds segment generates revenue from the sale of commodities, from service fees for the transportation of goods, from the sale of products manufactured in its global processing facilities, and from its structured trade finance activities.

10 unchanged sentences

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Revenues (Continued)

formula feeds, animal health and nutrition products, pet food and treats, and other specialty food and feed ingredients.

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.

Revenue is recognized when control over products is transferred to the customer.

6 unchanged sentences

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

During the six months ended June 30, 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, PT Trouw Nutrition Indonesia (“PT”), a subsidiary of Nutreco and leading provider of functional and nutritional solutions for livestock farming in Indonesia, and Totally Natural Solutions (“TNS”), a UK-based hops flavoring producer, for an aggregate cash consideration of $ 948 million.

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.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Acquisitions (Continued)

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 TNS Total

(In millions) Revela FDL PT Total

Working capital $ 50 $ — $ 5 $ 55

6 unchanged sentences

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 $ 551 million allocated to goodwill, $ 313 million is expected to be deductible for tax purposes.

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 three and six months ended June 30, 2024 includes the post-acquisition results of the acquired businesses which were immaterial.

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.

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

Useful Lives Revela FDL TNS Total

Useful Lives Revela FDL Total

(In years) (In millions)

4 unchanged sentences

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 March 31, 2024 and December 31, 2023.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Fair Value Measurements

The following tables set forth, by level, the Company’s assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2024 and December 31, 2023.

Fair Value Measurements at June 30, 2024

Fair Value Measurements (Continued)

Fair Value Measurements at March 31, 2024

Quoted Prices in

9 unchanged sentences

Foreign currency contracts — 187 — 187

Interest rate contracts — 5 — 5

Cash equivalents 206 — — 206

6 unchanged sentences

Total Liabilities $ — $ 2,470 $ 497 $ 2,967

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Fair Value Measurements (Continued)

Fair Value Measurements at December 31, 2023

18 unchanged sentences

Total Liabilities $ — $ 1,863 $ 558 $ 2,421

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Fair Value Measurements (Continued)

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.

16 unchanged sentences

When observable inputs are available for substantially the full term of the contract, it is classified in Level 2.

When unobservable inputs have a significant impact (more than 10%) on

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Fair Value Measurements (Continued)

the measurement of fair value, the contract is classified in Level 3.

When unobservable inputs have a significant impact (more than 10%) on the measurement of fair value, the contract is classified in Level 3.

Except for certain derivatives designated as cash flow hedges, changes in the fair value of commodity-related derivatives are recognized in the consolidated statements of earnings as a component of cost of products sold.

5 unchanged sentences

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

The following table presents a rollforward of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended June 30, 2024.

Level 3 Fair Value Asset Measurements at

June 30, 2024

Market Commodity

(In millions)

Balance, March 31, 2024 $ 2,948 $ 764 $ 3,712

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

Purchases 3,637 3,637

Sales ( 4,194 ) — ( 4,194 )

Settlements — ( 438 ) ( 438 )

Transfers into Level 3 557 29 586

Transfers out of Level 3 ( 589 ) ( 157 ) ( 746 )

Ending balance, June 30, 2024 $ 2,546 $ 395 $ 2,941

* Includes increase in unrealized gains of $ 325 million relating to Level 3 assets still held at June 30, 2024.

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

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

Archer-Daniels-Midland Company

1 unchanged sentence

Fair Value Measurements (Continued)

The following table presents a rollforward of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended June 30, 2024.

Level 3 Fair Value Liability Measurements at

June 30, 2024

Payables Commodity

(In millions)

Balance, March 31, 2024 $ 62 $ 435 $ 497

Total increase (decrease) in net realized/unrealized losses included in cost of products sold* ( 4 ) 203 199

Purchases 2 — 2

Sales ( 26 ) — ( 26 )

Settlements — ( 282 ) ( 282 )

Transfers into Level 3 — 15 15

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

Ending balance, June 30, 2024 $ 34 $ 367 $ 401

* Includes increase in unrealized losses of $ 208 million relating to Level 3 liabilities still held at June 30, 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 June 30, 2023.

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

Level 3 Fair Value Asset Measurements at

June 30, 2023

March 31, 2024

Market Commodity

(In millions)

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

Balance, December 31, 2023 $ 2,713 $ 731 $ 3,444

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

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

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 June 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.

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

June 30, 2023

March 31, 2024

Payables Commodity

Losses Debt Conversion Option

(In millions)

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

Total increase (decrease) in net realized/unrealized losses included in cost of products sold and interest expense* 4 535 ( 1 ) 538

Purchases 5 — — 5

Settlements ( 3 ) ( 283 ) — ( 286 )

Transfers into Level 3 2 86 — 88

Transfers out of Level 3 — ( 2 ) — ( 2 )

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

* Includes increase in unrealized losses of $ 545 million relating to Level 3 liabilities still held at June 30, 2023.

The following table presents a rollforward of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the six months ended June 30, 2024.

Level 3 Fair Value Asset Measurements at

June 30, 2024

Market Commodity

(In millions)

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

Total increase (decrease) in net realized/unrealized gains included in cost of products sold* 90 572 662

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

Purchases 1 — 1

3 unchanged sentences

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

Ending balance, June 30, 2024 $ 2,546 $ 395 $ 2,941

* Includes increase in unrealized gains of $ 889 million relating to Level 3 assets still held at June 30, 2024.

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.

Archer-Daniels-Midland Company

1 unchanged sentence

Fair Value Measurements (Continued)

The following table presents a rollforward of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the six months ended June 30, 2024.

Level 3 Fair Value Liability Measurements at

June 30, 2024

Payables Commodity

(In millions)

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

Total increase (decrease) in net realized/unrealized losses included in cost of products sold* ( 7 ) 532 525

Purchases 3 — 3

Sales ( 64 ) — ( 64 )

Settlements — ( 572 ) ( 572 )

Transfers into Level 3 1 28 29

Transfers out of Level 3 — ( 78 ) ( 78 )

Ending balance, June 30, 2024 $ 34 $ 367 $ 401

* Includes increase in unrealized losses of $ 546 million relating to Level 3 liabilities still held at June 30, 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 six months ended June 30, 2023.

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

Level 3 Fair Value Asset Measurements at

June 30, 2023

March 31, 2023

Market Commodity

7 unchanged sentences

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

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

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

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 six months ended June 30, 2023.

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.

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

June 30, 2023

March 31, 2023

Payables Commodity

7 unchanged sentences

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

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

* Includes increase in unrealized losses of $ 0.8 billion relating to Level 3 liabilities still held at June 30, 2023.

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.

Transfers out of Level 3 were primarily due to the relative value of unobservable inputs to the total fair value measurement of certain products and derivative contracts falling below the 10% threshold and thus permitting reclassification to Level 2.

In some cases, the price components that result in differences between exchange-traded prices and local prices for inventories and commodity purchase and sale contracts are observable based upon available quotations for these pricing components, and in some cases, the differences are unobservable.

In some cases, the price components that result in differences between exchange-traded prices and local prices for inventories

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Fair Value Measurements (Continued)

and commodity purchase and sale contracts are observable based upon available quotations for these pricing components, and in some cases, the differences are unobservable.

These price components primarily include transportation costs and other adjustments required due to location, quality, or other contract terms.

2 unchanged sentences

Factors such as substitute products, weather, fuel costs, contract terms, and futures prices also impact the movement of these unobservable price components.

The following table sets forth the weighted average percentage of the unobservable price components included in the Company’s Level 3 valuations as of June 30, 2024 and December 31, 2023.

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 June 30, 2024 is a weighted average 39.1 % of the total price for assets and 42.7 % 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

June 30, 2024 December 31, 2023

March 31, 2024 December 31, 2023

Component Type Assets Liabilities Assets Liabilities

5 unchanged sentences

Transportation cost 8.3 % 1.5 % 9.3 % 3.2 %

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Fair Value Measurements (Continued)

In certain of the Company’s principal markets, the Company relies on price quotes from third parties to value its inventories and physical commodity purchase and sale contracts.

10 unchanged sentences

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

The following table sets forth the fair value of derivatives not designated as hedging instruments as of June 30, 2024 and December 31, 2023.

June 30, 2024 December 31, 2023

Assets Liabilities Assets Liabilities

(In millions)

Foreign Currency Contracts $ 133 $ 158 $ 187 $ 122

Interest Rate Contracts — — — —

Commodity Contracts 1,121 912 1,343 957

Total $ 1,254 $ 1,070 $ 1,530 $ 1,079

Archer-Daniels-Midland Company

1 unchanged sentence

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 six months ended June 30, 2024 and 2023.

Other (income) expense - net

Cost of Interest

(In millions) Revenues products sold expense

Three Months Ended June 30, 2024

Consolidated Statement of Earnings $ 22,248 $ 20,852 $ ( 9 ) $ 187

Pre-tax gains (losses) on:

Foreign Currency Contracts $ 18 $ ( 155 ) $ 8 $ —

Commodity Contracts — ( 22 ) — —

Total gain (loss) recognized in earnings $ 18 $ ( 177 ) $ 8 $ — $ ( 151 )

Three Months Ended June 30, 2023

Consolidated Statement of Earnings $ 25,190 $ 23,307 $ ( 37 ) $ 180

Pre-tax gains (losses) on:

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

(In millions)

Foreign Currency Contracts $ 145 $ 94 $ 187 $ 122

Commodity Contracts 1,351 883 1,343 957

Debt Conversion Option — — — 1

Total gain (loss) recognized in earnings $ ( 15 ) $ 188 $ 43 $ 1 $ 217

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

Other (income) expense - net

1 unchanged sentence

(In millions) Revenues products sold expense

Six Months Ended June 30, 2024

Three Months Ended March 31, 2024

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

3 unchanged sentences

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

Six Months Ended June 30, 2023

Three Months Ended March 31, 2023

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

5 unchanged sentences

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.

Changes in the fair value of foreign currency-related derivatives are recognized in the consolidated statements of earnings as a component of revenues, cost of products sold, and other (income) expense - net depending on the purpose of the contract.

Derivatives Designated as Cash Flow and Net Investment Hedging Strategies

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

Archer-Daniels-Midland Company

1 unchanged sentence

Derivative Instruments and Hedging Activities (Continued)

Derivatives Designated as Cash Flow, Fair Value, and Net Investment Hedging Strategies

The Company had certain derivatives designated as cash flow and net investment hedges as of June 30, 2024 and December 31, 2023.

In addition, the Company had certain derivatives designated as fair value hedges as of June 30, 2024.

For derivative instruments that are designated and qualify as highly-effective cash flow hedges (i.e., hedging the exposure to variability in expected future cash flow that is attributable to a particular risk), the gain or loss on the derivative instrument is reported as a component of AOCI and as an operating activity in the statement of cash flows, and is reclassified into earnings in the same line item affected by the hedged transaction in the same period or periods during which the hedged transaction affects earnings.

8 unchanged sentences

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

At June 30, 2024, the Company had designated hedges representing between 1 % and 31 % of its anticipated monthly grind of corn for the next 12 months.

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 June 30, 2024, the Company had designated hedges representing between 0 % and 100 % of the anticipated monthly soybean crush for soybean purchases and soybean meal and oil sales at the designated facilities over the next 12 months.

At March 31, 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 June 30, 2024, the Company had designated hedges representing between 33 % and 58 % of the anticipated monthly natural gas consumption over the next 12 months.

As of June 30, 2024 and December 31, 2023, the Company had after-tax gains of $ 26 million and after-tax gains of $ 42 million in AOCI, respectively, related to gains and losses from these programs.

The Company expects to recognize $ 26 million of the June 30, 2024 after-tax gains in its consolidated statement of earnings during the next 12 months.

Fair Value Hedges

The Company uses interest rate swaps designated as fair value hedges to protect the fair value of fixed-rate debt due to changes in interest rates.

The changes in the fair value of the interest rate swaps and the underlying fixed-rate debt is recognized in the consolidated statement of earnings during the current period.

The terms of the interest rate swaps match the terms of the underlying debt.

The Company executed fixed to floating rate interest swaps with an aggregate notional amount of $ 500 million as of as of June 30, 2024.

As of June 30, 2024, the Company had after-tax gains of $ 5 million in other current assets and a corresponding decrease to the underlying debt for the same amount with no net impact to earnings.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Derivative Instruments and Hedging Activities (Continued)

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 June 30, 2024 and December 31, 2023, and foreign exchange forwards with an aggregate notional amount of $ 2.0 billion and $ 2.1 billion as of June 30, 2024 and December 31, 2023, respectively.

As of June 30, 2024 and December 31, 2023, the Company had after-tax gains of $ 60 million and after-tax losses of $ 5 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 June 30, 2024 and December 31, 2023.

June 30, 2024 December 31, 2023

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Derivative Instruments and Hedging Activities (Continued)

The following table sets forth the fair value of derivatives designated as hedging instruments as of March 31, 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 5 — — —

Total $ 53 $ — $ 16 $ 22

The following table sets forth the pre-tax gains (losses) on derivatives designated as hedging instruments that have been included in the consolidated statements of earnings for the three and six months ended June 30, 2024 and 2023.

Cost of products sold

(In millions)

Three Months Ended June 30, 2024

Consolidated Statement of Earnings $ 20,852

Effective amounts recognized in earnings

Pre-tax gains (losses) on:

Commodity Contracts $ ( 23 )

Total gain (loss) recognized in earnings $ ( 23 ) $ ( 23 )

Three Months Ended June 30, 2023

Consolidated Statement of Earnings $ 23,307

Effective amounts recognized in earnings

Pre-tax gains (losses) on:

Commodity Contracts $ ( 41 )

Total gain (loss) recognized in earnings $ ( 41 ) $ ( 41 )

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Derivative Instruments and Hedging Activities (Continued)

Cost of products sold

(In millions)

Six Months Ended June 30, 2024

Three Months Ended March 31, 2024

Consolidated Statement of Earnings $ 20,188

3 unchanged sentences

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

Six Months Ended June 30, 2023

Three Months Ended March 31, 2023

Consolidated Statement of Earnings $ 21,992

4 unchanged sentences

Other Net Investment Hedging Strategies

The Company has designated € 0.7 billion of its outstanding long-term debt and commercial paper borrowings at June 30, 2024 and December 31, 2023 as hedges of its net investment in a foreign subsidiary.

As of June 30, 2024 and December 31, 2023, the Company had after-tax gains of $ 227 million and $ 212 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:

June 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 $ 6 million at each of June 30, 2024 and December 31, 2023.

Interest earned on financing receivables of $ 5 million and $ 10 million for the three and six months ended June 30, 2024,

A rcher-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Other Current Assets (Continued)

respectively, and $ 4 million and $ 10 million for the three and six months ended June 30, 2023, respectively, is included in interest and investment income in the consolidated statements of earnings.

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:

June 30, December 31,

March 31, December 31,

(In millions)

8 unchanged sentences

Debt and Financing Arrangements

At June 30, 2024, the fair value of the Company’s long-term debt was below the carrying value by $ 0.5 billion, as estimated using quoted market prices (a Level 2 measurement under applicable accounting standards).

At June 30, 2024, the Company had lines of credit, including the accounts receivable securitization programs described below, totaling $ 12.3 billion, of which $ 7.8 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 $ 1.0 billion of commercial paper outstanding at June 30, 2024.

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

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Debt and Financing Arrangements (Continued)

the combined U.S.

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 $ 2.8 billion in funding resulting from the sale of accounts receivable with $ 0.7 billion unused capacity as of June 30, 2024.

The Company’s effective tax rate was 19.3 % and 19.0 % for the three and six months ended June 30, 2024, respectively, compared to 18.0 % and 17.0 % for the three and six months ended June 30, 2023, respectively.

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

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.

5 unchanged sentences

These challenges include positions taken by the Company related to the timing, nature, and amount of deductions and the allocation of income among various tax jurisdictions.

In its routine evaluations of the exposure associated with various tax filing positions, the Company recognizes a liability, when necessary, for

A rcher-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Income Taxes (Continued)

estimated potential tax owed by the Company in accordance with applicable accounting standards.

In its routine evaluations of the exposure associated with various tax filing positions, the Company recognizes a liability, when necessary, for estimated potential tax owed by the Company in accordance with applicable accounting standards.

Resolution of the related tax positions, through negotiations with relevant tax authorities or through litigation, may take years to complete.

3 unchanged sentences

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

As of June 30, 2024, this assessment was $ 87 million in tax and $ 35 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.

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

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

On July 11, 2024, the Court of Appeals issued a decision which resulted in the Company increasing its uncertain tax position for this matter equal to the Court’s decision.

The Company is evaluating the legal options.

As of June 30, 2024, the Company has accrued its best estimate of what it believes will be the likely outcome of the litigation.

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

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

Shareholders’ Equity

3 unchanged sentences

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 repurchased under the ASR Agreement were determined 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.

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.

On April 15, 2024, the Company received a final delivery of 7,325,733 shares at an average share price of $ 63.045 , or $ 462 million in aggregate, as final settlement of the ASR transaction and such amount was reclassified during the quarter ended June 30, 2024, to reinvested earnings.

As of June 30, 2024, the Company had 14.8 million remaining shares under its share repurchase program.

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

A rcher-Daniels-Midland Company

1 unchanged sentence

Shareholders’ Equity (Continued)

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 six months ended June 30, 2024 and the reclassifications out of AOCI for the three and six months ended June 30, 2024 and 2023:

Three Months Ended June 30, 2024

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

(In millions)

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

Other comprehensive income (loss) before reclassifications ( 285 ) ( 71 ) 1 — ( 355 )

Gain (loss) on net investment hedges 25 — — — 25

Amounts reclassified from AOCI — 23 ( 4 ) — 19

Tax effect ( 6 ) 6 1 — 1

Net of tax amount ( 266 ) ( 42 ) ( 2 ) — ( 310 )

Balance at June 30, 2024 $ ( 2,818 ) $ 57 $ ( 113 ) $ ( 6 ) $ ( 2,880 )

Six Months Ended June 30, 2024

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 June 30, 2024 $ ( 2,818 ) $ 57 $ ( 113 ) $ ( 6 ) $ ( 2,880 )

A rcher-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Shareholders’ Equity (Continued)

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

Amount reclassified from AOCI

Three Months Ended June 30, Six Months Ended June 30, Affected line item in the consolidated statements of earnings

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

Details about AOCI components 2024 2023

3 unchanged sentences

( 19 ) 104 Total before tax

( 4 ) ( 8 ) — ( 26 ) Tax

$ ( 15 ) $ 86 Net of tax

4 unchanged sentences

( 2 ) ( 31 ) Total before tax

1 3 2 ( 9 ) Tax

$ ( 1 ) $ ( 43 ) Net of tax

A rcher-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Shareholders’ Equity (Continued)

The Company’s accounting policy is to release the income tax effects from AOCI when the individual units of account are sold, terminated, or extinguished.

1 unchanged sentence

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

Three Months Ended Six Months Ended

June 30, June 30,

2024 2023 2024 2023

Three Months Ended

(In millions)

2 unchanged sentences

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

Gains on sale of assets in the three and six months ended June 30, 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 and six months ended June 30, 2024 included the non-service components of net pension benefit income of $ 5 million and $ 9 million, respectively, net foreign exchange gains, and net other income.

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

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 - Restated

4 unchanged sentences

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

A rcher-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Segment Information - Restated (Continued)

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

3 unchanged sentences

Restatement of Certain Segment-Specific Historical Financial Information

As described in Note 1 to the Consolidated Financial Statements, the Company has restated its Consolidated Financial Statements as of June 30, 2024 and 2023 and for the three and six months ended June 30, 2024 and 2023.

As a result, the previously reported financial information as of June 30, 2024 and 2023 and for the three and six months ended June 30, 2024 and 2023 in this Note 13.

As described in Note 1 to the Consolidated Financial Statements, the Company has restated its Consolidated Financial Statements as of March 31, 2024 and 2023 and for the quarters ended March 31, 2024 and 2023.

As a result, the previously reported financial information as of March 31, 2024 and 2023 and for the quarters ended March 31, 2024 and 2023 in this Note 13.

Segment Information, has been updated to reflect the restatements.

The following tables set forth the impact of the restatements on intersegment sales and segment operating profit for each of the Company’s three reportable segments for the three and six months ended June 30, 2024 and 2023.

Intersegment pricing adjustments include restatements related to intersegment sales that were not in accordance with prior disclosures about presenting such sales at amounts approximating market.

Intersegment classification adjustments include restatements related to intrasegment sales (resulting from sales within the segment) previously misclassified and reported as intersegment sales (resulting from sales from one segment to another).

Intersegment pricing adjustments and Intersegment classification adjustments are included within the Intersegment sales amounts and segment operating profit amounts previously reported by the Company in the Form 10-Q filed with the SEC on July 30, 2024.

A rcher-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Segment Information - Restated (Continued)

In the course of testing new controls implemented as part of the Company’s material weakness remediation plan in the third quarter of 2024, ADM identified additional intrasegment sales previously misclassified and reported as intersegment sales.

2 unchanged sentences

The Company also is correcting certain segment disclosure presentation errors in this Form 10-Q/A.

for further information.

See Note 1 for further information.

Impact of the Restatement on the Ag Services and Oilseeds Segment

Three Months Ended

Six Months Ended

(In millions) 2024

8 unchanged sentences

Segment operating profit, as restated $ 864 $ 1,211

A rcher-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Segment Information - Restated (Continued)

Impact of the Restatement on the Carbohydrate Solutions Segment

Three Months Ended

Six Months Ended

(In millions) 2024

8 unchanged sentences

Segment operating profit, as restated $ 248 $ 279

A rcher-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Segment Information - Restated (Continued)

Impact of the Restatement on the Nutrition Segment

Three Months Ended

Six Months Ended

(In millions) 2024

12 unchanged sentences

Segment Information - Restated (Continued)

Segment Information for the Three and Six Months ended June 30, 2024 and 2023

Three Months Ended Six Months Ended

June 30, June 30,

Segment Information for the Three Months ended March 31, 2024 and 2023

Three Months Ended

(In millions) 2024 2023

21 unchanged sentences

Total intersegment revenues, as restated

$ 675 $ 798 $ 1,323 $ 1,610

Segment operating profit, as restated

3 unchanged sentences

Total segment operating profit, as restated

925 1,542 2,121 3,170

Other Business earnings (loss)

96 86 217 183

Corporate ( 426 ) ( 322 )

2 unchanged sentences

Impairment and restructuring charges (2)

( 7 ) ( 114 ) ( 13 ) ( 121 )

Earnings before income taxes $ 885 $ 1,397

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

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

(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

1 unchanged sentence

Asset Impairment, Exit, and Restructuring Costs

Asset impairment, exit, and restructuring costs in the three and six months ended June 30, 2024 consisted of impairments related to certain long-lived assets of $ 7 million and $ 10 million, respectively, and restructuring charges of $ 3 million for the six months ended June 30, 2024, presented as specified items, and restructuring charges in Corporate of $ 12 million, for the six months ended June 30, 2024.

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

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, 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.

Sale of Accounts Receivable

12 unchanged sentences

The Company acts as a servicer for the transferred receivables.

At June 30, 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 June 30, 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 $ 2.1 billion and $ 1.6 billion, respectively.

Total receivables sold were $ 23.6 billion and $ 28.8 billion for the six months ended June 30, 2024 and 2023, respectively.

Cash collections from customers on receivables sold were $ 23.0 billion and $ 28.4 billion for the six months ended June 30, 2024 and 2023, respectively.

As of June 30, 2024 and December 31, 2023, receivables pledged as collateral to the Purchasers was $ 0.8 billion and $ 1.1 billion, respectively.

Transfers of receivables under the Programs resulted in an expense for the loss on sale of $ 26 million and $ 53 million for the three and six months ended June 30, 2024, respectively, and $ 11 million and $ 34 million for the three and six months ended June, 30, 2023, 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.

6 unchanged sentences

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

As of June 30, 2024 and December 31, 2023, the Company’s outstanding payment obligations that suppliers had elected to sell to the financial institutions were $ 289 million and $ 274 million, respectively.

Changes to the outstanding payment obligations were as follows:

June 30, 2024

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)

2 unchanged sentences

Obligations paid ( 256 )

Ending, June 30, 2024 $ 289

Ending, March 31, 2024 $ 275

Legal Proceedings

1 unchanged sentence

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 the Company’s complete control and may not be known for prolonged periods of time.

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.

7 unchanged sentences

or could result in a change in business practice.

The Company’s estimated loss or range of loss with respect to loss contingencies may change from time to time, and it is reasonably possible the Company will incur actual losses in excess of the amounts currently accrued and such additional amounts may be material.

While the Company continues to work with parties with respect to potential resolution, no assurance can be given that it will be successful in doing so and the Company cannot predict the outcome of these matters.

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 the Company sought to manipulate the benchmark price used to price and settle ethanol derivatives traded on futures exchanges.

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”).

1 unchanged sentence

On July 14, 2020, Green Plains Inc.

and its related entities (“GP”) filed a putative class action lawsuit, alleging

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

A rcher-Daniels-Midland Company

1 unchanged sentence

Legal Proceedings (Continued)

substantially the same operative facts, in federal court in Nebraska, seeking to represent sellers of ethanol.

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.

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.

9 unchanged sentences

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, which ADM has moved to dismiss.

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

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

1 unchanged sentence

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 additional document requests from the SEC.

The Company is cooperating with the SEC.

2 unchanged sentences

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

Shareholder Litigation

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.

On June 24, 2024, the court-appointed lead plaintiffs filed an amended putative class action complaint against the Company, its Chief Executive Officer, as well as Vikram Luthar, Ray Young, and Vince Macciocchi.

Plaintiffs allege false and misleading statements in the Company’s disclosures related to ADM’s Nutrition segment and seek unspecified compensatory and punitive damages.

Beginning on March 29, 2024, purported stockholders of the Company filed four derivative lawsuits in the U.S.

District Court for the Northern District of Illinois and the U.S.

District Court for the District of Delaware, against the Chief Executive Officer, Vikram Luthar, Ray Young, and certain individual current and former 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.

The plaintiffs voluntarily dismissed one of the derivative complaints;

the remainder have been consolidated in the U.S.

District Court for the District of Delaware and the plaintiffs’ amended complaint is due September 13, 2024.

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.

Subsequent Event

On July 28, 2024, there was an explosion at the Company’s Decatur, Illinois production complex resulting in damage to an elevator with no injuries to employees.

The Company is assessing the operational and financial impacts of this 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

1 unchanged sentence

Restatement of Previously Issued Consolidated Financial Statements

As described in the Explanatory Note above and in Part I, Item 1, Note 1 to the Consolidated Financial Statements, the Company has restated its Consolidated Financial Statements as of June 30, 2024 and 2023 and for the three and six months ended June 30, 2024 and 2023 contained in this Amendment.

As a result, the previously reported financial information as of June 30, 2024 and 2023 and for the three and six months ended June 30, 2024 and 2023, in this Item 2.

As described in the Explanatory Note above and in Part I, Item 1, Note 1 to the Consolidated Financial Statements, the Company has restated its Consolidated Financial Statements as of March 31, 2024 and 2023 and for the quarters ended March 31, 2024 and 2023 contained in this Amendment.

As a result, the previously reported financial information as of March 31, 2024 and 2023 and for the quarters ended March 31, 2024 and 2023, in this Item 2.

MD&A has been updated to reflect the relevant restatements.

3 unchanged sentences

The Company also is correcting certain segment disclosure presentation errors.

In this Amendment, the Company is revising its reconciliation and calculation of total segment operating profit.

The revised reconciliation in Note 13.

Segment Information presents a subtotal for total segment operating profit that is equal to the sum of the segment operating profit reported for each of the Ag Services and Oilseeds, Carbohydrate Solutions and Nutrition segments.

Amounts for other business and specified items, which previously were reflected in the calculation of total segment operating profit, are now reflected as reconciling items, similar to Corporate, between total segment operating profit and earnings before income taxes.

Company Overview

21 unchanged sentences

The Productivity pillar includes (1) partnering across various global teams including procurement, supply chain, operations, and commercial to optimize costs and improve production volumes across the enterprise;

(2) continued roll out of the 1ADM

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

business transformation program and implementation of improved standardized business processes;

(2) continued roll out of the 1ADM business transformation program and implementation of improved standardized business processes;

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

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

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

(2) sustainability-driven innovation, which

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

encompasses the full range of products, solutions, capabilities, and commitments to serve customers’ needs;

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

23 unchanged sentences

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

The Company has consolidated subsidiaries in more than 70 countries.

For the majority of the Company’s subsidiaries located outside the United States, the local currency is the functional currency except for certain significant subsidiaries in Switzerland where Euro is the functional currency, and Brazil and Argentina where U.S.

dollar is the functional currency.

Revenues and expenses denominated in foreign currencies are translated into U.S.

dollars at the weighted average exchange rates for the applicable periods.

For the majority of the Company’s business activities in Brazil and Argentina, the functional currency is the U.S.

however, certain transactions, including taxes, occur in local currency and require remeasurement to the functional currency.

Changes in revenues are expected to be correlated to changes in expenses reported by the Company caused by

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

fluctuations in the exchange rates of foreign currencies, primarily the Euro, British pound, Canadian dollar, and Brazilian real, as compared to the U.S.

Effective April 1, 2022, the Company changed the functional currency of its Turkish entities to the U.S.

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, segment operating profit, total 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 page 41 .

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.”

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, 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.

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 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.

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

Earnings before income taxes decreased $512 million from $1.4 billion to $885 million.

Total segment operating profit (a non-GAAP measure) decreased $432 million from $1.6 billion to $1.2 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, and Animal Nutrition.

Total segment operating profit (a non-GAAP measure) excluded asset impairment and restructuring charges totaling $6 million.

Excluded from the total segment operating profit (a non-GAAP measure) 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.

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 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.

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

Analysis of Statements of Earnings

Processed volumes by product for the quarter are as follows (in metric tons):

Three Months Ended

(In thousands) 2024 2023 Change

Oilseeds 9,387 8,627 760

Corn 4,407 4,394 13

Total 13,794 13,021 773

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

The overall increase in oilseeds processed volumes was primarily related to improved crush rates in the current quarter compared to lower crush rates in the prior-year quarter resulting from weather related issues and reduced capacity due to the Russian-Ukraine war.

Revenues by segment for the quarter are as follows:

Three Months Ended

2024 2023 Change

(In millions)

Ag Services and Oilseeds

Ag Services $ 11,197 $ 11,695 $ (498)

Crushing 3,327 3,683 (356)

Refined Products and Other 2,695 3,201 (506)

Total Ag Services and Oilseeds 17,219 18,579 (1,360)

Carbohydrate Solutions

Starches and Sweeteners 2,156 2,737 (581)

Vantage Corn Processors 527 800 (273)

Total Carbohydrate Solutions 2,683 3,537 (854)

Human Nutrition 964 936 28

Animal Nutrition 872 917 (45)

Total Nutrition 1,836 1,853 (17)

Total Segment Revenues 21,738 23,969 (2,231)

Other Business 109 103 6

Total Revenues $ 21,847 $ 24,072 $ (2,225)

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 market price changes, which generally result in an insignificant impact to gross profit.

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

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, 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 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 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 4 0 .

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.

Asset impairment, exit, and restructuring costs increased $11 million to $18 million.

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, 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.

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, 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, net foreign exchange gains, and net other income.

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

Total segment operating profit (a non-GAAP measure) is reconciled to earnings before income taxes, the most directly comparable GAAP measure, for the quarters ended March 31, 2024 and 2023 as follows:

Three Months Ended

2024 2023 Change

(In millions)

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

Other Business (earnings) loss (121) $ (97) (24)

Corporate 426 322 104

Specified Items:

Gains on sale of assets — (1) 1

Impairment and restructuring charges 6 7 (1)

Total Segment Operating Profit $ 1,196 $ 1,628 $ (432)

Segment Operating Profit

Ag Services and Oilseeds

Ag Services $ 232 $ 348 $ (116)

Crushing 313 427 (114)

Refined Products and Other 170 327 (157)

Wilmar 149 109 40

Total Ag Services and Oilseeds $ 864 $ 1,211 $ (347)

Carbohydrate Solutions

Starches and Sweeteners $ 261 $ 313 $ (52)

Vantage Corn Processors (13) (34) 21

Total Carbohydrate Solutions $ 248 $ 279 $ (31)

Human Nutrition $ 76 $ 138 $ (62)

Animal Nutrition 8 — 8

Total Nutrition $ 84 $ 138 $ (54)

Ag Services and Oilseeds segment operating profit decreased 29%.

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 segment 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 segment operating profit decreased 39%.

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.

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

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.

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

2024 2023 Change

(In millions)

Interest expense-net $ (110) $ (103) $ (7)

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

Gain on debt conversion option — 5 (5)

Restructuring charges (12) — (12)

Other income — 24 (24)

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

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 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.

Non-GAAP Financial Measures

The Company uses adjusted net earnings, adjusted earnings per share (EPS), adjusted EBITDA, and total 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.

EBITDA is defined as earnings

before interest on borrowings, taxes, and depreciation and amortization.

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.

Total segment operating profit is defined as ADM’s consolidated earnings before income taxes, adjusted for Other business, Corporate, and specified items.

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

The table on page 4 0 provides a reconciliation of total segment operating profit to earnings before income taxes for the three months ended March 31, 2024 and 2023.

In this Amendment, the Company is revising its reconciliation and calculation of total segment operating profit.

The revised reconciliation in Note 13.

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

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

Average number of shares outstanding - diluted 514 551

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

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

18 0.03 5 0.01

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

Total adjustments 21 0.04 (19) (0.03)

Adjusted net earnings and adjusted EPS $ 750 $ 1.46 $ 1,151 $ 2.09

(1) Tax effected using the U.S.

and other applicable tax rates.

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

Three months ended

(In millions) 2024 2023 Change

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

Impairment and restructuring charges 18 7 11

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

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/A

Item 1. Financial Statements