What changed in this filing

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Item 1. Financial Statements

2024-11-18 compared with 2023-09-11 · 370 added, 637 removed, 884 unchanged (53% of the section changed)

18 unchanged sentences

Net Earnings Including Noncontrolling Interests 481 928 1,200 2,100

Net earnings attributable to noncontrolling interests 1 4 3 14

Net earnings (losses) attributable to noncontrolling interests ( 5 ) 1 ( 15 ) 3

Net Earnings Attributable to Controlling Interests $ 486 $ 927 $ 1,215 $ 2,097

91 unchanged sentences

Deferred cash flow hedges ( 118 ) ( 141 )

Gains on sales of assets and businesses/investment revaluation ( 32 ) ( 42 )

(Gain) losses on sales/revaluation of assets 9 ( 32 )

Other – net 154 ( 18 )

10 unchanged sentences

Capital expenditures ( 690 ) ( 614 )

Proceeds from sales of assets and businesses 17 12

Net assets of businesses acquired ( 936 ) —

Proceeds from sales of assets 16 17

Investments in affiliates ( 8 ) ( 6 )

Distributions from affiliates 2 —

Cost method investments — ( 5 )

35 unchanged sentences

Stock compensation expense 18 18

Stock option exercises net of taxes — 1 1

Other — — — — 4 4

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

34 unchanged sentences

Notes to Consolidated Financial Statements

Basis of Presentation

Basis of Presentation and Restatement of Previously Filed Consolidated Financial Statements

The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S.

3 unchanged sentences

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.

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

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).

Principles of Consolidation

3 unchanged sentences

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

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

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

In each case, the financial statements are within 93 days of the Company’s year end and are consistent from period to period.

Restatement of Previously Filed Financial Statements

Following ongoing dialogue with the staff of the United States Securities and Exchange Commission, the Company concluded that it would amend its fiscal year 2023 Form 10-K (the “FY2023 Form 10-K”) and Forms 10-Q for the first and second quarters of 2024 (collectively, the “Q1 and Q2 2024 Form 10-Qs”) to restate the segment information disclosure included in those filings.

These restatements do not impact ADM’s Consolidated Statements of Earnings, Consolidated Statements of Comprehensive Income (Loss), Consolidated Balance Sheets, Consolidated Statements of Cash Flows or Consolidated Statements of Shareholders’ Equity as of and for the periods presented in the Amended Reports.

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).

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.

The Company put in place a plan to remediate this material weakness, as disclosed in the FY2023 Form 10-K and Q1 and Q2 2024 Form 10-Qs.

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.

These newly identified errors concern intersegment sales for each of its Ag Services and Oilseeds, Carbohydrate Solutions and Nutrition segments that included certain additional intrasegment sales and should have included exclusively intersegment sales.

The Company also identified some intersegment sales between Ag Services and Oilseeds and Carbohydrate Solutions that were not accounted for consistently in accordance with revenue recognition and segment reporting standards and should not have been reported as intersegment sales.

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,

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

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

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).

Segregated Cash and Investments

4 unchanged sentences

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

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

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

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

3 unchanged sentences

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

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Basis of Presentation (Continued)

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

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

Three Months Ended June 30

(In millions)

Beginning, April 1 $ 216 $ 182

5 unchanged sentences

Six Months Ended June 30

(In millions)

Beginning, January 1 $ 215 $ 199

3 unchanged sentences

Foreign exchange translation adjustment — 1

Other ( 6 ) —

Ending, June 30 $ 194 $ 174

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

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

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.

1 unchanged sentence

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.

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

June 30, 2024 December 31, 2023

2 unchanged sentences

Finished goods 2,909 3,026

Market inventories 5,747 6,987

Total inventories $ 10,443 $ 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.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Basis of Presentation (Continued)

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 gains of $ 3 million and $ 37 million in the three and six months ended June 30, 2022, respectively, in connection with observable third-party transactions, were recorded in interest and investment income in the Company's consolidated statements of earnings.

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

Operations in Ukraine and Russia

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

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

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

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

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

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.

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)

New Accounting Standards

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

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

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

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

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

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

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

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

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

Revenue Recognition

3 unchanged sentences

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

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

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

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

6 unchanged sentences

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

Contract Liabilities

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

Contract liabilities of $ 286 million and $ 694 million as of June 30, 2023 and December 31, 2022, respectively, were recorded in accrued expenses and other payables in the consolidated balance sheets.

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

Archer-Daniels-Midland Company

1 unchanged sentence

Revenues (Continued)

Contract Liabilities

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

Contract liabilities of $ 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.

Disaggregation of Revenues

15 unchanged sentences

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

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Revenues (Continued)

Six Months Ended June 30, 2024

14 unchanged sentences

Total Nutrition 3,744 — 3,744 — 3,744

Total Segment Revenues 11,438 445 11,883 31,990 43,873

Other Business 222 — 222 — 222

Total Revenues $ 11,660 $ 445 $ 12,105 $ 31,990 $ 44,095

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Revenues (Continued)

Three Months Ended June 30, 2023

13 unchanged sentences

Total Nutrition 1,853 — 1,853 — 1,853

Total Segment Revenues 6,311 200 6,511 18,567 25,078

Other Business 112 — 112 — 112

Total Revenues $ 6,423 $ 200 $ 6,623 $ 18,567 $ 25,190

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Revenues (Continued)

Six Months Ended June 30, 2023

14 unchanged sentences

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

1 unchanged sentence

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

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Revenues (Continued)

Ag Services and Oilseeds

5 unchanged sentences

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 Topic 610-20.

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

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

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

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

Carbohydrate Solutions

4 unchanged sentences

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.

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.

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.

The aggregate cash consideration of these acquisitions, net of $ 12 million in cash acquired, was allocated as follows, subject to final measurement period adjustments:

(In millions) Revela FDL PT TNS Total

Working capital $ 50 $ 16 $ 5 $ 2 $ 73

Property, plant, and equipment 38 34 5 2 79

Goodwill 410 128 5 8 551

Other intangible assets 166 97 — 11 274

Other long-term assets 28 1 — — 29

Long-term liabilities ( 43 ) ( 26 ) — ( 1 ) ( 70 )

Aggregate cash consideration $ 649 $ 250 $ 15 $ 22 $ 936

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.

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

Useful Lives Revela FDL TNS Total

(In years) (In millions)

Intangible assets with finite lives:

Trademarks/brands 3 $ — $ 4 $ 1 $ 5

Customer lists 10 to 18 124 73 8 205

Recipes and others 10 to 21 42 20 2 64

Total other intangible assets acquired $ 166 $ 97 $ 11 $ 274

Archer-Daniels-Midland Company

14 unchanged sentences

Foreign currency contracts — 188 — 188

Interest rate contracts — 5 — 5

Cash equivalents 260 — — 260

21 unchanged sentences

Foreign currency contracts — 187 — 187

Interest rate contracts — 109 — 109

Cash equivalents 209 — — 209

4 unchanged sentences

Foreign currency contracts — 144 — 144

Debt conversion option — — 6 6

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

1 unchanged sentence

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

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

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

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

4 unchanged sentences

Changes in the fair value of inventories and inventory-related payables are recognized in the consolidated statements of earnings as a component of cost of products sold.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Fair Value Measurements (Continued)

Derivative contracts include exchange-traded commodity futures and options contracts, forward commodity purchase and sale contracts, and over-the-counter (OTC) instruments related primarily to agricultural commodities, energy, interest rates, and foreign currencies.

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

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.

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.

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

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

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

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

19 unchanged sentences

Payables Commodity

Losses Debt Conversion Option

(In millions)

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

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

4 535 ( 1 ) 538

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

Purchases 2 — 2

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Purchases 5 — — 5

Sales ( 3 ) — — ( 3 )

Settlements ( 3 ) ( 283 ) — ( 286 )

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

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

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

Archer-Daniels-Midland Company

5 unchanged sentences

Payables Commodity

Losses Debt Conversion Option

(In millions)

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

Total increase (decrease) in net realized/unrealized losses included in cost of products sold and interest expense* 2 778 ( 6 ) 774

Purchase 7 — — 7

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

Purchases 3 — 3

Sales ( 64 ) — ( 64 )

3 unchanged sentences

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

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

* 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.

24 unchanged sentences

Purchases 7 — — 7

Sales ( 56 ) — — ( 56 )

Settlements ( 34 ) ( 707 ) — ( 741 )

10 unchanged sentences

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

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Fair Value Measurements (Continued)

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

10 unchanged sentences

Transportation cost 24.8 % 19.8 % 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.

8 unchanged sentences

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

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

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

4 unchanged sentences

Foreign Currency Contracts $ 133 $ 158 $ 187 $ 122

Interest Rate Contracts — — — —

Commodity Contracts 1,121 912 1,343 957

Debt Conversion Option — — — 6

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

11 unchanged sentences

Commodity Contracts — ( 22 ) — —

Debt Conversion Option — — — 1

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

14 unchanged sentences

Commodity Contracts — 175 — —

Debt Conversion Option — — — 6

Total gain (loss) recognized in earnings $ 19 $ ( 43 ) $ 62 $ — $ 38

6 unchanged sentences

Total gain (loss) recognized in earnings $ ( 26 ) $ 723 $ 27 $ 6 $ 730

Changes in the market value of inventories of certain merchandisable agricultural commodities, inventory-related payables, forward cash purchase and sales contracts, exchange-traded futures and exchange-traded and OTC options contracts are recognized in earnings immediately as a component of cost of products sold.

Archer-Daniels-Midland Company

1 unchanged sentence

Derivative Instruments and Hedging Activities (Continued)

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

Derivatives Designated as Cash Flow and Net Investment Hedging Strategies

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.

9 unchanged sentences

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.

The Company, from time to time, also uses futures, options, and swaps to hedge the sales price of certain ethanol sales contracts.

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

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

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

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

6 unchanged sentences

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

1 unchanged sentence

Derivative Instruments and Hedging Activities (Continued)

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

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

Interest Rate Contracts

The Company used swap locks designated as cash flow hedges to hedge the changes in the forecasted interest payments due to changes in the benchmark rate leading up to future bond issuance dates.

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

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

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

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

Foreign Currency Contracts

1 unchanged sentence

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

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

8 unchanged sentences

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.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Derivative Instruments and Hedging Activities (Continued)

Cost of products sold

12 unchanged sentences

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

13 unchanged sentences

Other Net Investment Hedging Strategies

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

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

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Other Current Assets

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

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

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

Archer-Daniels-Midland Company

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.

Accrued Expenses and Other Payables

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Debt and Financing Arrangements

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

Net proceeds before expenses were $ 493 million.

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

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

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

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

At June 30, 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).

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Of the Company’s total lines of credit, $ 5.0 billion supported the combined U.S.

and European commercial paper borrowing programs, against which there was no commercial paper outstanding at June 30, 2023.

and European commercial paper borrowing programs, against which there was $ 1.0 billion of commercial paper outstanding at June 30, 2024.

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

1 unchanged sentence

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

On August 16, 2022, the U.S.

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

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

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

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

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

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

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

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

The Company is subject to income taxation and routine examinations in many jurisdictions around the world and frequently faces challenges regarding the amount of taxes due.

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

1 unchanged sentence

Income Taxes (Continued)

The Company is subject to income taxation and routine examinations in many jurisdictions around the world and frequently faces challenges regarding the amount of taxes due.

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

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.

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

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

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

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

The Argentine tax authorities conducted a review of income and other taxes paid by large exporters and processors of cereals and other agricultural commodities resulting in allegations of income tax evasion.

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

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

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

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

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

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

2 unchanged sentences

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

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

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

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.

Archer-Daniels-Midland Company

Shareholders’ Equity

Accelerated Share Repurchase

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

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

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

The total number of shares of Common Stock 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.

A rcher-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Shareholders’ Equity (Continued)

Accumulated Other Comprehensive Income

22 unchanged sentences

Notes to Consolidated Financial Statements (Continued)

Accumulated Other Comprehensive Income (Continued)

Shareholders’ Equity (Continued)

Amount reclassified from AOCI

21 unchanged sentences

(In millions)

Gains on sales of assets $ ( 21 ) $ ( 5 ) $ ( 32 ) $ ( 5 )

Gains on sale of assets $ ( 5 ) $ ( 21 ) $ ( 7 ) $ ( 32 )

Other – net ( 4 ) ( 16 ) ( 28 ) ( 49 )

Other (Income) Expense – Net $ ( 9 ) $ ( 37 ) $ ( 35 ) $ ( 81 )

Gains on sales of assets in the three and six months ended June 30, 2023 and 2022 consisted of gains on sales of certain assets and disposals of individually insignificant assets in the ordinary course of business.

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

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Segment Information

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.

Segment Information - Restated

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

2 unchanged sentences

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

Intersegment sales have been recorded at amounts approximating market.

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.

Also included in operating profit for each segment is equity in earnings of affiliates based on the equity method of accounting.

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

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

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

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

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.

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.

The Company also identified some intersegment sales that were not accounted for consistently in accordance with revenue recognition and segment reporting standards and should not have been reported as intersegment sales.

These amounts are presented in the table below as Additional intersegment classification adjustments.

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

for further information.

Impact of the Restatement on the Ag Services and Oilseeds Segment

Three Months Ended

Six Months Ended

(In millions) 2024

Intersegment revenues, as originally reported $ 546 $ 1,020 $ 1,155 $ 2,355

Intersegment pricing adjustments — 1 — 2

Intersegment classification adjustments — ( 320 ) — ( 915 )

Intersegment revenues, as previously reported 546 701 1,155 1,442

Additional intersegment classification adjustments ( 114 ) ( 139 ) ( 297 ) ( 350 )

Intersegment revenues, as restated $ 432 $ 562 $ 858 $ 1,092

Segment operating profit, as originally reported $ 459 $ 1,054 $ 1,323 $ 2,264

Intersegment pricing adjustments — — — 1

Segment operating profit, as restated $ 459 $ 1,054 $ 1,323 $ 2,265

A rcher-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Segment Information (Continued)

Segment Information - Restated (Continued)

Impact of the Restatement on the Carbohydrate Solutions Segment

Three Months Ended

Six Months Ended

(In millions) 2024

Intersegment revenues, as originally reported $ 239 $ 448 $ 518 $ 1,177

Intersegment pricing adjustments — 16 — 22

Intersegment classification adjustments — ( 60 ) — ( 290 )

Intersegment revenues, as previously reported 239 404 518 909

Additional intersegment classification adjustments ( 14 ) ( 180 ) ( 84 ) ( 415 )

Intersegment revenues, as restated $ 225 $ 224 $ 434 $ 494

Segment operating profit, as originally reported $ 357 $ 303 $ 605 $ 576

Intersegment pricing adjustments — 16 — 22

Segment operating profit, as restated $ 357 $ 319 $ 605 $ 598

Impact of the Restatement on the Nutrition Segment

Three Months Ended

Six Months Ended

(In millions) 2024

Intersegment revenues, as originally reported $ 13 $ 73 $ 19 $ 164

Intersegment pricing adjustments — — — —

Intersegment classification adjustments — ( 39 ) — ( 94 )

Intersegment revenues, as previously reported 13 34 19 70

Additional intersegment classification adjustments 5 ( 22 ) 12 ( 46 )

Intersegment revenues, as restated $ 18 $ 12 $ 31 $ 24

Segment operating profit, as originally reported $ 109 $ 185 $ 193 $ 330

Intersegment pricing adjustments — ( 16 ) — ( 23 )

Segment operating profit, as restated $ 109 $ 169 $ 193 $ 307

A rcher-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Segment Information - Restated (Continued)

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

Three Months Ended Six Months Ended

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(In millions) 2024 2023 2024 2023

Gross revenues

Ag Services and Oilseeds $ 20,864 $ 22,468 $ 40,778 $ 41,600

Carbohydrate Solutions 3,829 4,500 8,095 8,680

Nutrition 1,926 2,055 3,870 4,021

Other Business 112 101 215 208

Intersegment elimination ( 1,541 ) ( 1,840 ) ( 3,696 ) ( 3,575 )

Total gross revenues $ 25,190 $ 27,284 $ 49,262 $ 50,934

Intersegment sales

Ag Services and Oilseeds $ 1,020 $ 1,039 $ 2,355 $ 1,918

Carbohydrate Solutions 448 749 1,177 1,563

Nutrition 73 52 164 94

Total intersegment sales $ 1,541 $ 1,840 $ 3,696 $ 3,575

Revenues from external customers

11 unchanged sentences

Total Nutrition 1,908 1,853 3,744 3,706

Total segment revenues from external customers

22,135 25,078 43,873 49,047

Other Business 113 112 222 215

Total revenues from external customers $ 22,248 $ 25,190 $ 44,095 $ 49,262

A rcher-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Segment Information (Continued)

Three Months Ended Six Months Ended

June 30, June 30,

(In millions) 2023 2022 2023 2022

Segment operating profit

Intersegment revenues, as restated

Ag Services and Oilseeds $ 432 $ 562 $ 858 $ 1,092

1 unchanged sentence

Nutrition 18 12 31 24

Other Business 86 18 183 60

Specified Items:

Gains on sales of assets (1)

Impairment and restructuring charges and contingency provisions (2)

Total intersegment revenues, as restated

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

Total segment operating profit 1,525 1,840 3,244 3,379

Segment operating profit, as restated

Ag Services and Oilseeds $ 459 $ 1,054 $ 1,323 $ 2,265

Carbohydrate Solutions 357 319 605 598

Nutrition 109 169 193 307

Total segment operating profit, as restated

925 1,542 2,121 3,170

Other Business earnings (loss)

96 86 217 183

Corporate ( 418 ) ( 393 ) ( 844 ) ( 715 )

Specified items:

Gains on sale of assets (1)

Impairment and restructuring charges (2)

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

Earnings before income taxes $ 596 $ 1,132 $ 1,481 $ 2,529

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

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

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

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

(1) 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.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Asset Impairment, Exit, and Restructuring Costs

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

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

Asset impairment, exit, and restructuring costs in the three and 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.

Sale of Accounts Receivable

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

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

In exchange, ADM Receivables receives a cash payment of up to $ 1.7 billion for the accounts receivable transferred.

The First Program terminates on May 16, 2025, unless extended.

3 unchanged sentences

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

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

A rcher-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Sale of Accounts Receivable (Continued)

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

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

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All cash flows under the Programs are classified as operating activities because the cash received from the Purchasers upon both the sale and collection of the receivables is not subject to significant interest rate risk given the short-term nature of the Company’s trade receivables.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Supplier Finance Programs

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

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

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

As of 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

(In millions)

Beginning, January 1, 2024 $ 274

Obligations confirmed 520

Obligations paid ( 505 )

Ending, June 30, 2024 $ 289

Legal Proceedings

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

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

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

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

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

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

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

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

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

involve unsubstantiated or indeterminate claims for damages;

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

or could result in a change in business practice.

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.

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

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

On July 14, 2020, Green Plains Inc.

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

A rcher-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Legal Proceedings (Continued)

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

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

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

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

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

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

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

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

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

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

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

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

GP appealed the dismissal.

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

On March 8, 2024, GP filed an amended complaint, which ADM has moved to dismiss.

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

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

Intersegment Sales Investigations

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

The Company is cooperating with the SEC.

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

The Company is cooperating with the DOJ.

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

Shareholder 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 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.

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

This Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read in conjunction with the accompanying unaudited consolidated financial statements.

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.

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

See Item 1, Note 1.

Basis of Presentation and Restatement of Previously Filed Consolidated Financial Statements, and Note 13.

Segment Information, in the Consolidated Financial Statements for additional information related to the restatements, including descriptions of the adjustments and the impacts on the Consolidated Financial Statements.

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.

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

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

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

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

a premier human and animal nutrition provider;

1 unchanged sentence

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

and a company concerned about sustainability.

and a leader in sustainability.

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

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ADM’s recent significant portfolio actions and announcements include:

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

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

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

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

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

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

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

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

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

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

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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 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.

(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;

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;

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

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

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

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

Environmental and Social Responsibility

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

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

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

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

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

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

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

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

Operating Performance Indicators

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

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

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

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

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

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

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

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

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

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

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

1 unchanged sentence

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

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

The Company has consolidated subsidiaries in more than 70 countries.

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 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, constant currency revenue and operating profit, segment operating profit, adjusted segment operating profit, earnings before interest, taxes, depreciation, and amortization (EBITDA), adjusted EBITDA, return on invested capital, economic value added, and operating cash flows before working capital.

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

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

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

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

Operations in Ukraine and Russia

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

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

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

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

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

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

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

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

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

Of the total current assets in Ukraine, the majority related to inventories that represented less than 0.3% of ADM’s total inventories.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Net earnings attributable to controlling interests decreased $0.3 billion from $1.2 billion to $0.9 billion.

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

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

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

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

Corporate results in the prior-year quarter were a net charge of $321 million and included a mark-to-market gain of $19 million on the conversion option of the exchangeable bonds issued in August 2020.

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

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

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

Analysis of Statements of Earnings

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

Three Months Ended

(In thousands) 2023 2022 Change

Oilseeds 8,783 8,208 575

Corn 4,448 4,776 (328)

Total 13,231 12,984 247

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

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

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

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

Revenues by segment for the quarter are as follows:

Three Months Ended

2023 2022 Change

(In millions)

Ag Services and Oilseeds

Ag Services $ 13,366 $ 14,333 $ (967)

Crushing 3,480 3,362 118

Refined Products and Other 2,998 3,734 (736)

Total Ag Services and Oilseeds 19,844 21,429 (1,585)

Carbohydrate Solutions

Starches and Sweeteners 2,475 2,519 (44)

Vantage Corn Processors 906 1,232 (326)

Total Carbohydrate Solutions 3,381 3,751 (370)

Human Nutrition 966 1,020 (54)

Animal Nutrition 887 983 (96)

Total Nutrition 1,853 2,003 (150)

Other Business 112 101 11

Total $ 25,190 $ 27,284 $ (2,094)

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.

Revenues decreased $2.1 billion to $25.2 billion due to lower sales prices ($3.2 billion), partially offset by higher sales volumes ($1.1 billion).

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

Ag Services and Oilseeds revenues decreased 7% to $19.8 billion due to lower sales prices ($3.5 billion), partially offset by higher sales volumes ($1.9 billion).

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

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

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

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

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

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

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

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

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

Asset impairment, exit, and restructuring costs increased $59 million to $60 million.

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

Charges in the prior-year quarter were not material.

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

Interest and investment income increased $110 million to $142 million due primarily to higher interest income driven by higher interest rates.

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

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

Other income-net decreased $46 million to $37 million.

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

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

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

Segment operating profit (loss), adjusted segment operating profit (a non-GAAP measure), and earnings before income taxes for the quarter are as follows:

Three Months Ended

Segment Operating Profit (Loss) 2023 2022 Change

(In millions)

Ag Services and Oilseeds

Ag Services $ 380 $ 407 $ (27)

Crushing 224 468 (244)

Refined Products and Other 362 130 232

Wilmar 88 114 (26)

Total Ag Services and Oilseeds 1,054 1,119 (65)

Carbohydrate Solutions

Starches and Sweeteners 285 393 (108)

Vantage Corn Processors 18 80 (62)

Total Carbohydrate Solutions 303 473 (170)

Human Nutrition 184 183 1

Animal Nutrition 1 56 (55)

Total Nutrition 185 239 (54)

Other Business 86 18 68

Specified Items:

Gains on sales of assets and businesses 11 — 11

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

Total Specified Items (103) (9) (94)

Total Segment Operating Profit $ 1,525 $ 1,840 $ (315)

Adjusted Segment Operating Profit (1)

$ 1,628 $ 1,849 $ (221)

Segment Operating Profit $ 1,525 $ 1,840 $ (315)

Corporate (393) (321) (72)

Earnings Before Income Taxes $ 1,132 $ 1,519 $ (387)

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

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

Ag Services and Oilseeds operating profit decreased 6%.

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

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

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

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

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

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

soybean carryout.

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

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

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

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

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

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

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

Carbohydrate Solutions operating profit decreased 36%.

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

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

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

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

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

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

Nutrition operating profit decreased 23%.

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

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

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

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

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

Other Business operating profit increased $68 million.

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

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

Corporate results for the quarter are as follows:

Three Months Ended

2023 2022 Change

(In millions)

Interest expense-net $ (125) $ (87) $ (38)

Unallocated corporate costs (262) (267) 5

Expenses related to acquisitions (3) — (3)

Gain on debt conversion option 1 19 (18)

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

Other expense (1) 13 (14)

Total Corporate $ (393) $ (321) $ (72)

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

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

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

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

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

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

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

Non-GAAP Financial Measures

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

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

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

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

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

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

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

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

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

Three months ended June 30,

In millions Per share In millions Per share

Average number of shares outstanding - diluted 546 568

Net earnings and reported EPS (fully diluted) $ 927 $ 1.70 $ 1,236 $ 2.18

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

(8) (0.02) — —

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

(1) — (19) (0.04)

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

93 0.17 6 0.01

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

Certain discrete tax adjustments 21 0.04 (1) —

Total adjustments 107 0.19 (14) (0.03)

Adjusted net earnings and adjusted EPS $ 1,034 $ 1.89 $ 1,222 $ 2.15

(1) Tax effected using the U.S.

and other applicable tax rates.

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

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

Three months ended

(In millions) 2023 2022 Change

Earnings before income taxes $ 1,132 $ 1,519 $ (387)

Interest expense 124 73 51

Depreciation and amortization 262 257 5

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

Expenses related to acquisitions 3 — 3

Railroad maintenance expenses 2 9 (7)

Impairment and restructuring charges and contingency provisions 117 8 109

Adjusted EBITDA $ 1,629 $ 1,866 $ (237)

Three months ended

(In millions) 2023 2022 Change

Ag Services and Oilseeds $ 1,143 $ 1,207 $ (64)

Carbohydrate Solutions 381 550 (169)

Nutrition 253 304 (51)

Other Business 84 24 60

Corporate (232) (219) (13)

Adjusted EBITDA $ 1,629 $ 1,866 $ (237)

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

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

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

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

Inflationary pressures impacted the entire value chain.

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

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

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

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

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

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

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

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

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

Net earnings attributable to controlling interests decreased $0.2 billion to $2.1 billion.

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

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

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

Corporate results in the current period were a net charge of $0.7 billion and included a mark-to-market gain of $6 million on the conversion option of the exchangeable bonds issued in August 2020.

Corporate results in the prior period were a net charge of $0.6 billion and included a mark-to-market gain of $4 million on the conversion option of the exchangeable bonds issued in August 2020.

Income taxes of $429 million decreased $57 million.

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

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

Analysis of Statements of Earnings

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

Six Months Ended

(In thousands) 2023 2022 Change

Oilseeds 17,410 16,699 711

Corn 8,842 9,588 (746)

Total 26,252 26,287 (35)

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

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

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

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

Six Months Ended

2023 2022 Change

(In millions)

Ag Services and Oilseeds

Ag Services $ 25,061 $ 26,180 $ (1,119)

Crushing 7,163 6,584 579

Refined Products and Other 6,199 6,918 (719)

Total Ag Services and Oilseeds 38,423 39,682 (1,259)

Carbohydrate Solutions

Starches and Sweeteners 5,212 5,017 195

Vantage Corn Processors 1,706 2,100 (394)

Total Carbohydrate Solutions 6,918 7,117 (199)

Human Nutrition 1,902 1,978 (76)

Animal Nutrition 1,804 1,949 (145)

Total Nutrition 3,706 3,927 (221)

Other Business 215 208 7

Total $ 49,262 $ 50,934 $ (1,672)

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

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

Revenues decreased $1.7 billion to $49.3 billion due to lower sales prices ($2.7 billion), partially offset by higher sales volumes ($1.0 billion).

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

Ag Services and Oilseeds revenues decreased 3% to $38.4 billion due to lower sales prices ($3.1 billion), partially offset by higher sales volumes ($1.8 billion).

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

Nutrition revenues decreased 6% to $3.7 billion due to lower sales volumes ($0.5 billion), partially offset by higher sales prices ($0.3 billion).

Cost of products sold decreased $1.6 billion to $45.3 billion due principally to lower average commodity costs partially offset by higher manufacturing expenses.

Manufacturing expenses increased $0.4 billion to $3.8 billion due principally to increases in energy costs, maintenance expenses, salaries and benefit costs, commercial service fees, and lease expense.

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

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

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

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

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

Asset impairment, exit, and restructuring costs increased $65 million to $67 million.

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

Charges in the prior period were not material.

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

Interest and investment income increased $185 million to $276 million due primarily to higher interest income, partially offset by revaluation gains of $36 million in the prior period.

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

Interest expense in the current period also included a $6 million mark-to-market gain adjustment related to the conversion option of the exchangeable bonds issued in August 2020 compared to a $4 million mark-to-market gain adjustment in the prior period.

Other income-net decreased $35 million to $81 million.

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

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

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

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

Six Months Ended

Segment Operating Profit (Loss) 2023 2022 Change

(In millions)

Ag Services and Oilseeds

Ag Services $ 728 $ 665 $ 63

Crushing 650 896 (246)

Refined Products and Other 689 328 361

Wilmar 197 238 (41)

Total Ag Services and Oilseeds 2,264 2,127 137

Carbohydrate Solutions

Starches and Sweeteners 592 709 (117)

Vantage Corn Processors (16) 81 (97)

Total Carbohydrate Solutions 576 790 (214)

Human Nutrition 322 324 (2)

Animal Nutrition 8 104 (96)

Total Nutrition 330 428 (98)

Other Business 183 60 123

Specified Items:

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

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

Total Specified Items (109) (26) (83)

Total Segment Operating Profit $ 3,244 $ 3,379 $ (135)

Adjusted Segment Operating Profit (1)

$ 3,353 $ 3,405 $ (52)

Segment Operating Profit $ 3,244 $ 3,379 $ (135)

Corporate (715) (589) (126)

Earnings Before Income Taxes $ 2,529 $ 2,790 $ (261)

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

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

Ag Services and Oilseeds operating profit increased 6%.

Ag Services results were higher than the prior period.

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

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

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

Crushing results were lower than the prior period.

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

soybean carryout.

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

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

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

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

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

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

Equity earnings from Wilmar were lower versus the prior period.

Carbohydrate Solutions operating profit decreased 27%.

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

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

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

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

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

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

Nutrition operating profit decreased 23%.

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

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

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

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

Other Business operating profit increased $123 million.

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

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

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

Six Months Ended

2023 2022 Change

(In millions)

Interest expense-net $ (228) $ (163) (65)

Unallocated corporate costs (510) (476) (34)

Loss on sale of assets — (3) 3

Expenses related to acquisitions (3) (2) (1)

Gain on debt conversion option 6 4 2

Restructuring (charges) adjustment (3) 2 (5)

Other income 23 49 (26)

Total Corporate $ (715) $ (589) $ (126)

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

Corporate results were a net charge of $0.7 billion in the current period compared to a net charge of $0.6 billion in the prior period.

Interest expense-net increased $65 million due primarily to increased short-term rates on the Company’s commercial paper borrowing programs and increased interest expense from new debt issuances.

Unallocated corporate costs increased $34 million due primarily to higher financing, information technology, and centers of excellence costs, partially offset by lower incentive compensation accruals.

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

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

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

Non-GAAP Financial Measures

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

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

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

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

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

Six months ended June 30,

In millions Per share In millions Per share

Average number of shares outstanding - diluted 549 568

Net earnings and reported EPS (fully diluted) $ 2,097 $ 3.82 $ 2,290 $ 4.03

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

(9) (0.02) 2 —

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

98 0.18 20 0.04

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

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

(6) (0.01) (4) (0.01)

Certain discrete tax adjustments 3 0.01 (5) (0.01)

Total adjustments 88 0.16 14 0.02

Adjusted net earnings and adjusted EPS $ 2,185 $ 3.98 $ 2,304 $ 4.05

(1) Tax effected using the U.S.

and other applicable tax rates.

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

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

Six months ended

(In millions) 2023 2022 Change

Earnings before income taxes $ 2,529 $ 2,790 $ (261)

Interest expense 224 165 59

Depreciation and amortization 521 514 7

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

Expenses related to acquisitions 3 2 1

Railroad maintenance expenses 2 9 (7)

Impairment and restructuring charges and contingency provisions 124 25 99

Adjusted EBITDA $ 3,391 $ 3,507 $ (116)

Six months ended

(In millions) 2023 2022 Change

Ag Services and Oilseeds $ 2,443 $ 2,303 $ 140

Carbohydrate Solutions 733 946 (213)

Nutrition 463 558 (95)

Other Business 181 68 113

Corporate (429) (368) (61)

Adjusted EBITDA $ 3,391 $ 3,507 $ (116)

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