What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2025-02-20 compared with 2024-03-12 · 800 added, 903 removed, 1122 unchanged (60% of the section changed)

7 unchanged sentences

Notes to Consolidated Financial Statements

Reports of Independent Registered Public Accounting Firm PCAOB ID:

Reports of Independent Registered Public Accounting Firm

ARCHER-DANIELS-MIDLAND COMPANY

CONSOLIDATED STATEMENTS OF EARNINGS

(In millions, except per share amounts) December 31

2024 2023 2022

(In millions, except per share amounts)

Revenues $ 85,530 $ 93,935 $ 101,556

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Equity in earnings of unconsolidated affiliates ( 621 ) ( 551 ) ( 832 )

Loss on debt extinguishment — — 36

Interest and investment income ( 562 ) ( 499 ) ( 293 )

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Income tax expense 476 828 868

Net Earnings Including Noncontrolling Interests 3,466 4,365 2,735

Net earnings (losses) attributable to noncontrolling interests ( 17 ) 25 26

Net Earnings Including Non-controlling Interests

1,779 3,466 4,365

Net earnings (losses) attributable to non-controlling interests

( 21 ) ( 17 ) 25

Net Earnings Attributable to Controlling Interests $ 1,800 $ 3,483 $ 4,340

Average number of shares outstanding – basic 541 562 564

Average number of shares outstanding – diluted 542 563 566

Weighted average number of shares outstanding – basic

Weighted average number of shares outstanding – diluted

Basic earnings per common share $ 3.66 $ 6.44 $ 7.72

Diluted earnings per common share $ 3.65 $ 6.43 $ 7.71

See notes to consolidated financial statements.

The accompanying notes are an integral part of these Consolidated Financial Statements.

ARCHER-DANIELS-MIDLAND COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In millions) December 31

2024 2023 2022

Net earnings including noncontrolling interests $ 3,466 $ 4,365 $ 2,735

Other comprehensive income (loss):

(In millions)

Net earnings including non-controlling interests

$ 1,779 $ 3,466 $ 4,365

Other comprehensive income (loss), net of tax:

Foreign currency translation adjustment ( 415 ) 48 ( 301 )

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Tax effect 9 ( 5 ) 7

Net of tax effect 10 ( 77 ) 40

Net of tax amount

( 32 ) 10 ( 77 )

Unrealized gain (loss) on investments ( 16 ) 16 ( 12 )

Tax effect ( 1 ) ( 1 ) 1

Net of tax effect 15 ( 11 ) ( 2 )

Other comprehensive income (loss) 19 ( 357 ) 432

Net of tax amount

( 17 ) 15 ( 11 )

Total other comprehensive income (loss), net of tax

( 501 ) 19 ( 357 )

Comprehensive income (loss) 1,278 3,485 4,008

Comprehensive income (loss) attributable to noncontrolling interests ( 20 ) 5 26

Comprehensive income (loss) attributable to non-controlling interests

( 21 ) ( 20 ) 5

Comprehensive income (loss) attributable to controlling interests $ 1,299 $ 3,505 $ 4,003

See notes to consolidated financial statements.

The accompanying notes are an integral part of these Consolidated Financial Statements.

ARCHER-DANIELS-MIDLAND COMPANY

CONSOLIDATED BALANCE SHEETS

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

December 31, 2024 December 31, 2023

(In millions)

Current Assets

Cash and cash equivalents $ 611 $ 1,368

Short-term marketable securities 246 —

Segregated cash and investments 7,212 7,228

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Total Investments and Other Assets 14,716 14,356

Property, Plant, and Equipment

Property, Plant, and Equipment, net

Land and land improvements 566 573

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Total Long-Term Liabilities 10,902 11,504

Temporary Equity - Redeemable noncontrolling interest 320 299

Commitments and contingencies (See Note 20)

Temporary Equity - Redeemable non-controlling interest 253 320

Shareholders’ Equity

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Accumulated other comprehensive income (loss) ( 2,988 ) ( 2,487 )

Noncontrolling interests 13 33

Non-controlling interests

Total Shareholders’ Equity 22,178 24,145

Total Liabilities, Temporary Equity, and Shareholders’ Equity $ 53,271 $ 54,631

See notes to consolidated financial statements.

The accompanying notes are an integral part of these Consolidated Financial Statements.

ARCHER-DANIELS-MIDLAND COMPANY

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2024 2023 2022

Operating Activities

Net earnings including noncontrolling interests $ 3,466 $ 4,365 $ 2,735

Adjustments to reconcile net earnings to net cash provided by (used in) operating results

Cash flows from operating activities

Net earnings including non-controlling interests

$ 1,779 $ 3,466 $ 4,365

Adjustments to reconcile net earnings to net cash provided by operating activities

Depreciation and amortization 1,141 1,059 1,028

Asset impairment charges 309 37 125

Impairment of goodwill, intangibles, long-lived assets, and investments

Deferred income taxes ( 130 ) ( 23 ) ( 89 )

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Deferred cash flow hedges ( 40 ) 15 ( 84 )

Loss on debt extinguishment — — 36

(Gain) loss on sales of assets and businesses/investment revaluation ( 12 ) 38 ( 115 )

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Accrued expenses and other payables ( 276 ) ( 790 ) ( 44 )

Total Operating Activities 4,460 3,478 6,595

Investing Activities

Net cash provided by operating activities

2,790 4,460 3,478

Cash flows from investing activities

Capital expenditures ( 1,563 ) ( 1,494 ) ( 1,319 )

Net assets of businesses acquired ( 927 ) ( 23 ) ( 22 )

Proceeds from sales of assets and businesses 60 131 245

Proceeds from sales of assets, businesses and investments

Investments in affiliates ( 58 ) ( 18 ) ( 77 )

Purchases of marketable securities ( 308 ) — —

Proceeds from sales of marketable securities 84 — —

Cost method investments — — ( 155 )

Other – net 4 ( 21 ) 42

Total Investing Activities ( 1,496 ) ( 1,400 ) ( 2,669 )

Financing Activities

Net cash used in investing activities

( 2,702 ) ( 1,496 ) ( 1,400 )

Cash flows from financing activities

Long-term debt borrowings 27 501 752

Long-term debt payments ( 1 ) ( 963 ) ( 482 )

Net borrowings (payments) under lines of credit agreements ( 390 ) ( 428 ) ( 1,085 )

Net change in short-term debt

1,800 ( 390 ) ( 428 )

Share repurchases ( 2,327 ) ( 2,673 ) ( 1,450 )

Cash dividends ( 985 ) ( 977 ) ( 899 )

Acquisition of non-controlling interests

Other – net ( 36 ) ( 102 ) 8

Total Financing Activities ( 4,604 ) ( 2,499 ) ( 1,118 )

Net cash used in financing activities

( 1,530 ) ( 4,604 ) ( 2,499 )

Effect of exchange rate on cash, cash equivalents, restricted cash, and restricted cash equivalents ( 24 ) ( 3 ) —

Increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents ( 1,643 ) ( 421 ) 2,808

Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents

( 1,466 ) ( 1,643 ) ( 421 )

Cash, cash equivalents, restricted cash, and restricted cash equivalents – beginning of year 5,390 7,033 7,454

Cash, cash equivalents, restricted cash, and restricted cash equivalents – end of year $ 3,924 $ 5,390 $ 7,033

$ 5,390 $ 7,033 $ 7,454

Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents to the Consolidated Balance Sheets

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Income taxes $ 658 $ 742 $ 708

See notes to consolidated financial statements.

The accompanying notes are an integral part of these Consolidated Financial Statements.

ARCHER-DANIELS-MIDLAND COMPANY

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

Common Stock Reinvested Comprehensive Noncontrolling Shareholders’

Shares Amount Earnings Income (Loss) Interests Equity

(In millions)

Other Non-controlling

Common Stock Reinvested Comprehensive Shareholders’

(In millions, except per share amounts) Shares Amount Earnings Income (Loss) Interests Equity

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

Comprehensive income

Net earnings 4,340 25 4,365

Other comprehensive income (loss) 432 —

Total comprehensive income 3,167

Other comprehensive (loss), net of tax

( 337 ) ( 20 ) ( 357 )

Cash dividends paid-$ 1.60 per share ( 899 ) ( 899 )

Share repurchases ( 17 ) ( 1,450 ) ( 1,450 )

Stock compensation expense 3 147 147

2 unchanged sentences

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

Comprehensive income

Net earnings 3,483 ( 17 ) 3,466

Other comprehensive income (loss) ( 337 ) ( 20 )

Total comprehensive income 4,008

Other comprehensive income (loss), net of tax

Cash dividends paid-$ 1.80 per share ( 977 ) ( 977 )

2 unchanged sentences

Stock option exercises, net of taxes

( 1 ) ( 110 ) ( 110 )

Other — 5 10 — 15

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

Comprehensive income

Net earnings 1,800 1,800

Other comprehensive income (loss) 22 ( 3 )

Total comprehensive income 3,485

Other comprehensive income (loss), net of tax

( 501 ) — ( 501 )

Cash dividends paid-$ 2.00 per share ( 985 ) ( 985 )

2 unchanged sentences

Stock option exercises, net of taxes

— ( 23 ) ( 23 )

Acquisition of non-controlling interests

( 3 ) ( 1 ) ( 4 )

Other — 21 — ( 2 ) 19

Balance, December 31, 2024 478 $ 3,223 $ 21,933 $ ( 2,988 ) $ 10 $ 22,178

See notes to consolidated financial statements.

The accompanying notes are an integral part of these Consolidated Financial Statements.

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ARCHER-DANIELS-MIDLAND COMPANY

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Summary of Significant Accounting Policies

Nature of Business

ADM unlocks the power of nature to enrich the quality of life for people and animals.

ADM’s innovation and expertise are helping people live healthier lives and support a healthier planet.

The Company’s globally-integrated footprint combined with local insight give ADM capabilities few other companies have to meet critical and global needs.

With a foundation in nature and nutrition, the Company is a leader in sustainability, scaling across entire value chains to help decarbonize the industry, and safeguard the planet.

ADM has three business segments:

Company Overview

Archer-Daniels-Midland Company and its subsidiaries (the "Company" or "ADM") unlock the power of nature to enrich the quality of life.

The Company is an essential global agricultural supply chain manager and processor, providing food security by connecting local needs with global capabilities.

ADM is a premier human and animal nutrition provider, offering one of the industry's broadest portfolios of ingredients and solutions from nature.

The Company is a trailblazer in health and well-being, with an industry-leading range of products for consumers looking for new ways to live healthier lives.

ADM is a cutting-edge innovator, guiding the way to a future of new consumer and industrial solutions.

ADM is a leader in sustainability, scaling across entire value chains to help decarbonize the multiple industries it serves.

Around the globe, the Company's innovation and expertise are meeting critical needs while nourishing quality of life and supporting a healthier planet.

ADM has three reportable segments:

Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition.

The Company is an essential global agricultural supply chain manager and processor supporting food security by connecting local needs with global capabilities.

Segment and Geographic Information for further details on the nature of the Company's business and its reportable operating segments.

Principles of Consolidation

The Consolidated Financial Statements include the accounts of the Company and its subsidiaries.

All significant intercompany accounts and transactions have been eliminated.

All intercompany accounts and transactions have been eliminated.

The Company consolidates all entities, including variable interest entities (VIEs), in which it has a controlling financial interest.

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Segregated cash and investments also include restricted cash collateral for the various insurance programs of the Company’s captive insurance business.

To the degree these segregated balances are comprised of cash and cash equivalents, they are considered restricted cash and cash equivalents on the statement of cash flows.

To the degree these segregated balances are comprised of cash and cash equivalents, they are considered restricted cash and restricted cash equivalents on the statement of cash flows.

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ARCHER-DANIELS-MIDLAND COMPANY

Notes to Consolidated Financial Statements (Continued)

Summary of Significant Accounting Policies (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Short-Term Marketable Securities

Short-term marketable securities include foreign government securities with maturities greater than three months and less than one year and are recorded at fair value with gains and losses on these investments included in Other income in the Consolidated Statements of Earnings.

Revenue Recognition

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

The Company’s revenue that is generated from physically settled derivative sales contracts is accounted for under ASC 815, Derivatives and Hedging (Topic 815), and revenue from sales of other products and services is accounted for under ASC 606, Revenue from Contracts with Customers (Topic 606).

Revenue from physically settled derivative sales contracts primarily relates to forward sales of commodities where such contracts meet the definition of a derivatives under ASC 815.

Revenue from such commodities contracts is recognized at a point in time, upon transferring control of the commodity to the customer, similar to revenue recognized from contracts with customers under Topic 606.

Prior to settlement, these contracts are recognized at fair value within current assets and liabilities, with the unrealized gains or losses primarily recorded within Cost of products sold.

Fair Value Measurements and Note 5.

Derivative Instruments & Hedging Activities for further information.

Revenue from sales of other products and services is measured based on the consideration specified in the contract with a customer, in accordance with Topic 606.

The Company follows a policy of recognizing revenue at a single point in time when it satisfies its performance obligation by transferring control over a product or service to a customer.

Revenue for deferred price contracts that allow for pricing to be determined after title of the goods has passed to the customer is recognized when the price is determined.

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

The amount of revenue recognized follows the contractually specified price which may include freight or other contractually specified cost components.

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 Topic 606, and does not disclose information about remaining performance obligations that have original expected durations of one year or less.

Revenues for further information.

Shipping and Handling Costs

Shipping and handling costs related to contracts with customers for the sale of goods are accounted for as a fulfillment activity and are included in cost of products sold.

Accordingly, amounts billed to customers for such costs are included as a component of revenues.

Taxes Collected from Customers and Remitted to Governmental Authorities

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 transactions prices or as a component of revenues and cost of products sold.

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ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company records accounts receivable at net realizable value.

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

The Company recorded bad debt expense in selling, general, and administrative expenses of $ 6 million, $ 88 million, and $ 32 million in the years ended December 31, 2023, 2022, and 2021, respectively.

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

The Company recorded bad debt (reversals) expense in selling, general, and administrative expenses of $( 16 ) million, $ 6 million, and $ 88 million in the years ended December 31, 2024, 2023, and 2022, respectively.

Changes to the allowance for estimated uncollectible accounts for the years ended December 31, 2024 and 2023 are as follows (in millions):

Year Ended December 31

(In millions)

Beginning, January 1 $ 199 $ 122

Current year provisions 6 88

Opening balance, January 1

Provisions (reversals), net

Recoveries 9 2

Write-offs against allowance ( 32 ) ( 28 )

Foreign exchange translation adjustment — ( 2 )

Ending, December 31 $ 215 $ 199

Current year provisions in the year ended December 31, 2023 is net of reversals of prior year general provisions for economic factors related to the pandemic and provision for a certain customer.

Write-offs against allowance in the year ended December 31, 2023 were related to a customer in Brazil and allowance on receivables that were subsequently sold in the current year.

Other in the year ended December 31, 2023 is due primarily to reclassifications.

Other ( 9 ) 36

Closing balance, December 31

Provisions (reversals), net in the years ended December 31, 2024 and 2023 included reversals of prior general provisions for economic factors related to the COVID pandemic.

Write-offs against allowance in the year ended December 31, 2024 were primarily related to uncollectable trade receivables in the normal course of business.

Write-offs against allowance in the year ended December 31, 2023 were primarily related to a customer in Brazil and allowance on receivables that were subsequently sold.

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

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

The following table sets forth the Company’s inventories as of December 31, 2023 and 2022.

The following table sets forth the Company’s inventories as of December 31, 2024 and 2023 (in millions).

December 31, 2024 December 31, 2023

(In millions)

Raw materials and supplies (1)

$ 1,922 $ 1,944

Finished goods 2,689 3,026

Market inventories

Total inventories $ 11,572 $ 11,957

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

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Summary of Significant Accounting Policies (Continued)

(1) Includes work in process inventories which were not material as of December 31, 2024 and 2023.

Fair Value Measurements

The Company determines fair value based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The Company measures the fair value of certain assets and liabilities in accordance with ASC Topic 820, Fair Value Measurements and Disclosures , which defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date.

The Company uses the market approach valuation technique to measure the majority of its assets and liabilities carried at fair value.

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ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Three levels are established within the fair value hierarchy that may be used to report fair value:

Quoted prices (unadjusted) in active markets for identical assets or liabilities.

The fair value hierarchy gives the highest priority to Level 1 inputs.

Observable inputs, including Level 1 prices that have been adjusted;

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Unobservable inputs that are supported by little or no market activity and that are a significant component of the fair value of the assets or liabilities.

The fair value hierarchy gives the lowest priority to Level 3 inputs.

In evaluating the significance of fair value inputs, the Company generally classifies assets or liabilities as Level 3 when their fair value is determined using unobservable inputs that individually or when aggregated with other unobservable inputs, represent more than 10% of the fair value of the assets or liabilities.

Judgment is required in evaluating both quantitative and qualitative factors in the determination of significance for purposes of fair value level classification.

Level 3 amounts can include assets and liabilities whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as assets and liabilities for which the determination of fair value requires significant management judgment or estimation.

Based on historical experience with the Company’s suppliers and customers, the Company’s own credit risk and knowledge of current market conditions, the Company does not view nonperformance risk to be a significant input to fair value for the majority of its forward commodity purchase and sale contracts.

However, in certain cases, if the Company believes the nonperformance risk to be a significant input, the Company records estimated fair value adjustments, and classifies the measurement in Level 3.

In many cases, a valuation technique used to measure fair value includes inputs from multiple levels of the fair value hierarchy.

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The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the classification of fair value assets and liabilities within the fair value hierarchy levels.

Based on historical experience with the Company’s suppliers and customers, the Company’s own credit risk and knowledge of current market conditions, the Company does not view non-performance risk to be a significant input to fair value for the majority of its forward commodity purchase and sale contracts.

However, in certain cases, if the Company believes the non-performance risk to be a significant input, the Company records estimated fair value adjustments, and classifies the measurement in Level 3.

The Company’s policy regarding the timing of transfers between levels, including both transfers into and transfers out of Level 3, is to measure and record the transfers at the end of the reporting period.

The Company recognizes all of its derivative instruments as either assets or liabilities at fair value in its consolidated balance sheet.

The Company recognizes its financial and non-financial derivative instruments, excluding exchange traded instruments, as either assets or liabilities at fair value in its Consolidated Balance Sheets.

Unrealized gains are reported as other current assets and unrealized losses are reported as accrued expenses and other payables.

Exchange traded instruments are cash-settled daily with the settlement reflected within Other current assets.

The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and on the type of hedging relationship.

The majority of the Company’s derivatives have not been designated as hedging instruments, and as such, changes in fair value of these derivatives are recognized in earnings immediately.

For those derivative instruments that are designated and qualify as hedging instruments, the Company designates the hedging instrument, based upon the exposure being hedged, as a cash flow hedge or a net investment hedge.

The majority of the Company’s derivatives have not been designated as hedging instruments, and as such, changes in fair value of these derivatives are recognized in earnings immediately, within revenue or cost of products sold, as appropriate.

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ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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 flows that is attributable to a particular risk), the gain or loss on the derivative instrument is reported as a component of Accumulated other comprehensive income (loss) (AOCI) and as an operating activity in the statement of cash flows and reclassified into earnings in the same line item affected by the hedged transaction and in the same period or periods during which the hedged transaction affects earnings.

Hedge components excluded from the assessment of effectiveness and gains and losses related to discontinued hedges are recognized in the consolidated statement of earnings during the current period.

Hedge components excluded from the assessment of effectiveness and gains and losses related to discontinued hedges are recognized in the Consolidated Statements of Earnings during the current period.

For derivative instruments that are designated and qualify as net investment hedges, foreign exchange gains and losses related to changes in foreign currency exchange rates are deferred in AOCI until the underlying investment is divested.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Summary of Significant Accounting Policies (Continued)

For derivative instruments that are designated and qualify as fair value hedges, changes in the fair value of the hedging instrument and changes in the fair value of the hedged item are recognized in the Consolidated Statements of Earnings in the same financial statement caption as the hedged items.

Equity Method Investments

The Company uses the equity method of accounting for equity investments if the investment provides the ability to exercise significant influence, but not control, over operating and financial policies of the investee.

The Company’s proportionate share of the net income or loss of these investees is included in consolidated net earnings.

Judgment regarding the level of influence over each equity method investment includes considering key factors such as the Company’s ownership interest, the legal form of the investee, any representation on the board of directors, and any participation in policy-making decisions.

The Company evaluates equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment might not be recoverable.

Factors considered by the Company when reviewing an equity method investment for impairment include the length of time (duration) and the extent (severity) to which the fair value of the equity method investment has been less than cost, the investee’s financial condition and near-term prospects, and the intent and ability to hold the investment for a period of time sufficient to allow for anticipated recovery.

An impairment that is other-than- temporary is recognized in the period identified.

Investments in and Advances to Affiliates for further information.

Cost Method Investments

Cost method investments of $ 439 million and $ 438 million as of December 31, 2024 and 2023, respectively, are included in other assets in the Company’s Consolidated Balance Sheets.

Revaluation losses of $ 16 million for the year ended December 31, 2024 were related to an investment in alternative protein and precision fermentation.

Revaluation losses of $ 76 million for the year ended December 31, 2023 were related to investments in the alternative protein category and precision fermentation.

Revaluation gains of $ 37 million and $ 49 million for the years ended December 31, 2022 and 2021, respectively, were in connection with observable third-party transactions (a level 2 measurement under applicable accounting standards).

Revaluation gains of $ 37 million for the year ended December 31, 2022 were in connection with observable third-party transactions (a Level 2 measurement under applicable accounting standards).

Revaluation gains and losses are recorded in Interest and investment income in the Company’s Consolidated Statements of Earnings.

As of December 31, 2023, the cumulative amounts of upward and downward adjustments were $ 113 million and $ 76 million, respectively.

As of December 31, 2024, the annual and cumulative amounts of upward and downward adjustments were $ 2 million and $ 18 million, and $ 113 million and $ 75 million, respectively.

Property, Plant, and Equipment

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buildings - 15 to 40 years;

machinery and equipment - 3 to 40 years.

and machinery and equipment - 3 to 40 years.

The Company capitalized interest on major construction projects in progress of $ 32 million, $ 32 million, and $ 20 million for the years ended December 31, 2024, 2023, and 2022, respectively.

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ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company evaluates long-lived assets for impairment whenever indicators of impairment exist.

In addition, assets are written down to fair value after consideration of the Company’s ability to utilize the assets for their intended purpose, employ the assets in alternative uses, or sell the assets to recover the carrying value.

Fair value is generally based on a discounted cash flow analysis which relies on management’s estimate of market participant assumptions or estimated selling price for assets considered held for sale (a Level 3 measurement under applicable accounting standards).

The Company leases certain transportation equipment, plant equipment, office equipment, land, buildings, and storage facilities.

Most leases include options to renew, with renewal terms that can extend the lease term from 6 months to 95 years.

The renewal options are not included in the measurement of the right of use assets and lease liabilities unless the Company is reasonably certain to exercise the optional renewal periods.

Certain leases also include index and non-index escalation clauses and options to purchase the leased property.

Leases accounted for as finance leases were immaterial at December 31, 2024.

As an accounting policy election, the Company does not apply the recognition requirements of ASC Topic 842 to short-term leases in all of its underlying asset categories.

The Company recognizes short-term lease payments in earnings on a straight-line basis over the lease term, and variable lease payments in the period in which the obligation for those payments is incurred.

The Company also combines lease and non-lease contract components in all of its underlying asset categories as an accounting policy election.

The Company accounts for income taxes in accordance with the liability method.

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The Company’s accounting policy is to evaluate goodwill and other intangible assets with indefinite lives for impairment on October 1 of each fiscal year or whenever there are indicators the carrying value of the assets may not be fully recoverable.

The Company recorded impairment charges totaling $ 201 million related to goodwill, customer list, and discontinued animal nutrition trademarks, $ 2 million related to customer list, and $ 52 million related to goodwill and other intangibles during the years ended December 31, 2023, 2022, and 2021, respectively (see Note 9 for additional information).

Goodwill and Other Intangible Assets for further information.

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ARCHER-DANIELS-MIDLAND COMPANY

Notes to Consolidated Financial Statements (Continued)

Summary of Significant Accounting Policies (Continued)

The goodwill impairment charge recorded during the year ended December 31, 2023 of $ 137 million was related to the Animal Nutrition reporting unit that was evaluated for impairment using a quantitative assessment.

The Company utilized a third-party valuation specialist to assist management in determining the fair value of the Animal Nutrition reporting unit.

The fair value of the Animal Nutrition reporting unit was estimated based on a combination of discounted cash flows (income approach) and the use of pricing multiples derived from an analysis of comparable public companies multiplied against historical and or anticipated financial metrics (market approach).

As a result of the impairment testing in the fourth quarter of 2023, the Company determined the fair value of the Animal Nutrition reporting unit was below its carrying value.

The decline in the fair value of the Animal Nutrition reporting unit was primarily driven by a higher discount rate due to changes in the underlying business performance and industry conditions as well as the macroeconomic environment, causing a decline in projected cash flows.

Asset Abandonments and Write-Downs

The Company evaluates long-lived assets for impairment whenever indicators of impairment exist.

Fair value is generally based on discounted cash flow analysis which relies on management’s estimate of market participant assumptions or estimated selling price for assets considered held for sale (a Level 3 measurement under applicable accounting standards).

During 2023, 2022 and 2021, the Company temporarily idled certain assets which were not material.

During the years ended December 31, 2023, 2022, and 2021, asset abandonment and impairment charges were $ 108 million, $ 35 million, and $ 73 million, respectively.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Supplier Payable Programs

The Company 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 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 are classified as trade payables in the Company’s Consolidated Balance Sheets and in operating activities in the Consolidated Statements 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 December 31, 2024 and 2023, the Company's outstanding payment obligations that suppliers had elected to sell to the financial institutions were $ 222 million and $ 274 million, respectively.

Changes to the outstanding payment obligations for the years ended December 31, 2024 and 2023 were as follows (in millions):

Year Ended December 31,

Opening balance, January 1

Obligations confirmed 948 1,100

Obligations paid ( 1,000 ) ( 1,022 )

Closing balance, December 31

Payables to Brokerage Customers

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Payables to brokerage customers have a corresponding balance in segregated cash and investments and customer omnibus receivable in other current assets.

The Company follows a policy of recognizing revenue at a single point in time when it satisfies its performance obligation by transferring control over a product or service to a customer.

For physically settled derivative sales contracts that are outside the scope of Topic 606, the Company recognizes revenue when control of the inventory is transferred within the meaning of Topic 606 as required by ASC 610-20, Gains and Losses from the Derecognition of Nonfinancial Assets (“Topic 610-20”).

Stock Compensation

The Company recognizes expense for its stock compensation based on the fair value of the awards that are granted.

The Company’s stock compensation plans provide for the granting of restricted stock, restricted stock units, performance stock units, and stock options.

The fair values of stock options and performance stock units are estimated at the date of grant using the Black-Scholes option valuation model and a lattice valuation model, respectively.

These valuation models require the input of subjective assumptions.

The Company’s stock compensation plans provide for the granting of restricted stock and restricted stock units (Restricted Stock Awards), performance stock units (PSUs), and stock options.

The fair values of stock options are estimated at the date of grant using the Black-Scholes option valuation model, which requires the input of subjective assumptions.

The fair values of Restricted Stock Awards and PSUs are determined based on the market value of the Company's shares on the grant date.

Measured compensation cost, net of forfeitures, is recognized ratably over the vesting period of the related stock compensation award.

Compensation expense for stock option grants, Restricted Stock Awards, and PSUs granted to employees is generally recognized on a straight-line basis during the service period of the respective grant.

Certain of the Company’s option grants, Restricted Stock Awards, and PSUs continue to vest upon the recipient’s retirement from the Company and compensation expense related to option grants and Restricted Stock Awards granted to retirement-eligible employees is recognized in earnings on the date of grant.

Compensation expense for PSUs is based on the probability of meeting the performance criteria.

The Company recognizes forfeitures as they occur.

Research and Development

1 unchanged sentence

Such costs incurred, net of expenditures subsequently reimbursed by government grants, were $ 269 million, $ 256 million, and $ 216 million for the years ended December 31, 2024, 2023, and 2022, respectively.

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ARCHER-DANIELS-MIDLAND COMPANY

Notes to Consolidated Financial Statements (Continued)

Summary of Significant Accounting Policies (Continued)

Per Share Data

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Earnings Per Share

Basic earnings per common share are determined by dividing net earnings attributable to controlling interests by the weighted average number of common shares outstanding.

In computing diluted earnings per share, average number of common shares outstanding is increased by common stock options outstanding with exercise prices lower than the average market price of common shares using the treasury share method.

In computing diluted earnings per common share, average number of common shares outstanding is increased by dilutive potential common shares, including unvested restricted stock units, PSUs and common shares underlying stock options outstanding with exercise prices lower than the average market price of common shares using the treasury stock method.

Business Combinations

10 unchanged sentences

Upon the conclusion of the measurement period or the final determination of the values of assets acquired and liabilities assumed, whichever comes first, any such adjustments are charged to the Consolidated Statements of Earnings.

Redeemable Noncontrolling Interest

The Company accounts for any redeemable noncontrolling interest in temporary equity - redeemable noncontrolling interest at redemption value with periodic changes recorded in retained earnings.

Operations in Ukraine and Russia

ADM employs approximately 630 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 December 31, 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 the assets are appropriately valued.

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

New Accounting Standards

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

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

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

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Summary of Significant Accounting Policies (Continued)

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.

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 December 31, 2023 and 2022, the Company's outstanding payment obligations suppliers had elected to sell to the financial institutions were $ 274 million and $ 196 million, respectively.

Changes to the outstanding payment obligations are as follows:

Redeemable Non-controlling Interests

The Company presents any redeemable non-controlling interests in temporary equity within the Consolidated Balance Sheets at redemption value with period changes recorded in reinvested earnings.

The Company reports the portion of its earnings or loss for redeemable non-controlling interests as net earnings (losses) attributable to non-controlling interests in the Consolidated Statements of Earnings.

Changes to the Company's redeemable non-controlling interests for the years ended December 31, 2024, 2023, and 2022 are as follows (in millions):

Year Ended December 31,

(In millions)

Beginning, January 1 $ 196

Obligations confirmed 1,100

Obligations paid ( 1,022 )

Ending, December 31 $ 274

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 the 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 the 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 are retained through the end of the hedging relationship.

The Company’s adoption of the amended guidance will not have an impact on its 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.

2024 2023 2022

Opening balance, January 1

$ 320 $ 299 $ 259

Net income (loss) attributable to redeemable non-controlling interests

( 21 ) ( 6 ) 21

Acquisition of redeemable non-controlling interests ( 18 ) — —

Currency translation adjustments and other

Closing balance, December 31 (1)

$ 253 $ 320 $ 299

(1) As of December 31, 2024, redeemable non-controlling interests includes $ 136 million related to the 25 % non-controlling interest for PetDine, LLC.

The Company has the option to acquire this remaining 25 % interest in PetDine, LLC by March 31, 2025.

The non-controlling interest holders also have the option to put the 25 % interest to the Company by the same date.

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ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Adoption of New Accounting Pronouncements

Effective January 1, 2024, the Company adopted 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 guidance applies 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 guidance do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2024, except for hedging relationships existing as of December 31, 2024, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship.

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

The transition did not have an impact on the Company’s Consolidated Financial Statements.

Effective December 31, 2024, the Company adopted Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures , 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 adoption of the amended guidance resulted in expanded disclosures in Note 17.

Segment and Geographic Information in this report but did not have an impact on the Company's Consolidated Financial Statements.

New Accounting Pronouncements Not Yet Adopted

Effective December 31, 2025, the Company will be required to adopt ASU 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures , which enhances the transparency and decision usefulness of income tax disclosures.

The amendments address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid 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.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Revenue Recognition

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

The Company follows a policy of recognizing revenue at a single point in time when it satisfies its performance obligation by transferring control over a product or service to a customer.

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 recognized revenue from transportation service contracts of $ 761 million, $ 818 million, and $ 606 million for the years ended December 31, 2023, 2022, and 2021, respectively.

Shipping and Handling Costs

Shipping and handling costs related to contracts with customers for the sale of goods are accounted for as a fulfillment activity and are included in cost of products sold.

Accordingly, amounts billed to customers for such costs are included as a component of revenues.

Taxes Collected from Customers and Remitted to Governmental Authorities

Contract Liabilities

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

Contract liabilities of $ 626 million and $ 694 million as of December 31, 2023 and 2022, respectively, were recorded in accrued expenses and other payables in the consolidated balance sheet.

Revenues recognized in the year ended December 31, 2023 from the December 31, 2022 contract liabilities were $ 469 million.

The adoption of the amended guidance will result in expanded disclosures in the Company’s income taxes footnote but is not expected to have an impact on the Company's Consolidated Financial Statements.

Effective December 31, 2027, the Company will be required to adopt ASU 2024-03, Income Statement—Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of income statement expenses , which will require tabular disclosure of certain operating expenses disaggregated into categories, such as purchases of inventory, employee compensation, depreciation, and intangible asset amortization.

The adoption of the amended guidance will result in expanded disclosures in the Company’s footnotes but is not expected to have an impact on the Company's Consolidated Financial Statements.

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ARCHER-DANIELS-MIDLAND COMPANY

Notes to Consolidated Financial Statements (Continued)

Revenues (Continued)

Disaggregation of Revenues

The following tables present revenue disaggregated by timing of recognition and major product lines for the years ended December 31, 2023, 2022, and 2021.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following tables present revenue disaggregated by timing of recognition and major product lines for the years ended December 31, 2024, 2023, and 2022 (in millions).

Year Ended December 31, 2024

1 unchanged sentence

Point in Time Over Time Total Revenue Revenues

(In millions)

Ag Services and Oilseeds

10 unchanged sentences

Total Nutrition 7,349 — 7,349 — 7,349

Total Segment Revenues 23,019 923 23,942 61,157 85,099

Other Business 431 — 431 — 431

Total Revenues $ 23,450 $ 923 $ 24,373 $ 61,157 $ 85,530

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ARCHER-DANIELS-MIDLAND COMPANY

Notes to Consolidated Financial Statements (Continued)

Revenues (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Year Ended December 31, 2023

1 unchanged sentence

Point in Time Over Time Total Revenue Revenues

(In millions)

Ag Services and Oilseeds

10 unchanged sentences

Total Nutrition 7,211 — 7,211 — 7,211

Total Segment Revenues 24,506 761 25,267 68,244 93,511

Other Business 424 — 424 — 424

3 unchanged sentences

Point in Time Over Time Total Revenue Revenues

(In millions)

Ag Services and Oilseeds

10 unchanged sentences

Total Nutrition 7,636 — 7,636 — 7,636

Total Segment Revenues 26,392 818 27,210 73,950 101,160

Other Business 396 — 396 — 396

1 unchanged sentence

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

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ARCHER-DANIELS-MIDLAND COMPANY

Notes to Consolidated Financial Statements (Continued)

Revenues (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Ag Services and Oilseeds

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

Revenue is measured based on the consideration specified in the contract.

Revenue is recognized when a performance obligation is satisfied by transferring control over a product or providing service to a customer.

The amount of revenue recognized follows the contractually specified price which may include freight or other contractually specified cost components.

For physically settled derivative sales contracts 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.

1 unchanged sentence

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 years ended December 31, 2023, 2022, and 2021.

The net return related to structured trade finance activities is included in revenue and was not significant for the years ended December 31, 2024, 2023, and 2022.

Carbohydrate Solutions

3 unchanged sentences

The amount of revenue recognized is based on the consideration specified in the contract which could include freight and other costs depending on the specific shipping terms of each contract.

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.

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

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

The amount of revenue recognized follows the contracted price or the mutually agreed price of the product.

Freight and shipping are recognized as a component of revenue at the same time control transfers to the customer.

Other Business

3 unchanged sentences

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

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ARCHER-DANIELS-MIDLAND COMPANY

Notes to Consolidated Financial Statements (Continued)

Fiscal year 2023 acquisitions

During the year ended December 31, 2023, the Company acquired Prairie Pulse Inc., an 83 % majority stake in Buckminster Química, and D.C.A.

for an aggregate cash consideration of $ 25 million.

The aggregate cash consideration of these acquisitions, net of $ 2 million in cash acquired, was preliminarily allocated as follows:

(In millions)

Property, plant, and equipment $ 18

Other long-term assets 2

Long-term liabilities ( 17 )

Aggregate cash consideration $ 23

Fiscal year 2022 acquisitions

During the year ended December 31, 2022, the Company acquired Kansas Protein Foods LLC for cash consideration of $ 23 million.

The cash consideration of this acquisition, net of $ 1 million in cash acquired, was allocated as follows:

(In millions)

Property, plant, and equipment $ 9

Cash consideration $ 22

Fiscal year 2021 acquisitions

During the year ended December 31, 2021, the Company’s Nutrition segment acquired five businesses including, a 75 % majority stake in U.S.-based PetDine, Pedigree Ovens, The Pound Bakery, and NutraDine (collectively, “P4”), premier providers of private label pet treats and supplements;

Deerland Probiotics & Enzymes (“Deerland”), a leader in probiotic, prebiotic, and enzyme technology;

and Sojaprotein, a leading European provider of non-GMO soy ingredients, for an aggregate consideration of $ 1.6 billion using cash on hand.

The aggregate cash consideration of these acquisitions, net of $ 21 million in cash acquired, was allocated as follows.

In 2022, the Company made immaterial adjustments to the purchase price allocations related to these acquisitions.

These adjustments have been reflected in the table below.

(In millions) P4 Deerland Sojaprotein Others Total

Working capital $ 11 $ 27 $ 35 $ 7 $ 80

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

During the year ended December 31, 2024, the Company acquired Revela Foods, LLC (“Revela”), a Wisconsin-based developer and manufacturer of innovative dairy flavor ingredients and solutions, Fuerst Day Lawson Ltd.

(“FDL”), a UK-based leading developer and producer of premium flavor and functional ingredient systems, PT Trouw Nutrition Indonesia (“PT”), a leading provider of functional and nutritional solutions for livestock farming in Indonesia, and Totally Natural Solutions Ltd.

(“TNS”), a UK-based hops flavoring producer, for an aggregate cash consideration of $ 948 million.

The aggregate cash consideration of these acquisitions, net of $ 21 million in cash acquired, was allocated as follows, subject to final measurement period adjustments (in millions).

Revela FDL PT TNS Total

Working capital, net of cash acquired $ 49 $ 10 $ 6 $ 2 $ 67

Property, plant, and equipment 38 33 6 2 79

3 unchanged sentences

Long-term liabilities ( 42 ) ( 41 ) — — ( 83 )

Temporary equity - redeemable noncontrolling interest ( 150 ) — — — ( 150 )

Aggregate cash consideration $ 496 $ 644 $ 356 $ 68 $ 1,564

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Acquisitions (Continued)

The Company has the option to acquire the remaining 25 % interest in P4 from December 31, 2023 to March 31, 2025, based on a fixed multiple of earnings before interest, taxes, depreciation, and amortization for the twelve months prior to the exercise of this option.

The noncontrolling interest holders also have the option to put the 25 % interest to the Company on the same terms.

The Company records the 25 % remaining interest in temporary equity - redeemable noncontrolling interest.

Aggregate cash consideration, net of cash acquired $ 648 $ 241 $ 15 $ 23 $ 927

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 $ 557 million allocated to goodwill, $ 373 million is expected to be deductible for tax purposes.

The 2021 acquisitions advance ADM’s growth strategy by expanding the Company’s capabilities in pet treat and supplements and the fast-growing global demand for plant-based proteins as well as capabilities in the high-value flavor segment and the fast growing demand for food, beverages, and supplements.

The post-acquisition financial results of these acquisitions are reported in the Nutrition segment.

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

Useful Lives P4 Deerland Sojaprotein Others Total

These acquisitions add capabilities to the Company’s Nutrition segment.

The Company’s Consolidated Statements of Earnings for the year ended December 31, 2024 includes the post-acquisition results of the acquired businesses which were immaterial.

The following table sets forth the fair values and the useful lives of the other intangible assets acquired as of December 31, 2024.

Useful Lives Revela

(In years) (In millions)

Intangible assets with finite lives:

Trademarks/brands 7 to 15 $ 9 $ 18 $ 5 $ 1 $ 33

Customer lists 10 to 18 $ 124 $ 73 $ 8 $ 205

Recipes and others 7 16 58 — 3 77

Recipes and others 10 to

21 42 20 2 64

Total other intangible assets acquired $ 166 $ 93 $ 10 $ 269

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ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Fair Value Measurements

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

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

Fair Value Measurements at December 31, 2024

Quoted Prices in

Active Markets

for Identical

(Level 1) Significant

(Level 2) Significant

(Level 3) Total

(In millions)

Inventories carried at market $ — $ 3,930 $ 3,031 $ 6,961

2 unchanged sentences

Foreign exchange contracts

Interest rate contracts — 5 — 5

Cash equivalents 70 — — 70

Marketable securities 246 — — 246

Segregated investments 1,681 — — 1,681

5 unchanged sentences

Total Liabilities $ — $ 1,221 $ 493 $ 1,714

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Fair Value Measurements (Continued)

Fair Value Measurements at December 31, 2023

Quoted Prices in

Active Markets

for Identical

(Level 1) Significant

(Level 2) Significant

(Level 3) Total

(In millions)

Inventories carried at market $ — $ 4,274 $ 2,713 $ 6,987

2 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

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

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ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Inventories Carried at Market and Inventory-Related Payables

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

6 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 OTC instruments related primarily to agricultural commodities, energy, interest rates, and foreign currencies.

Exchange-traded futures and options contracts are valued based on unadjusted quoted prices in active markets and are classified in Level 1.

The majority of the Company’s exchange-traded futures and options contracts are cash-settled on a daily basis and, therefore, are not included in these tables.

Unrealized Derivative Gains and Losses

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.

Substantially all of the Company’s exchange-traded commodity futures and options contracts are cash-settled on a daily basis and, therefore, are not included in these tables.

Fair value for forward commodity purchase and sale contracts is estimated based on exchange-quoted prices adjusted for differences in local markets.

9 unchanged sentences

The changes in the fair value of derivatives designated as effective cash flow hedges are recognized in the Consolidated Balance Sheets as a component of AOCI until the hedged items are recorded in earnings or it is probable the hedged transaction will no longer occur.

Cash Equivalents

The Company’s cash equivalents are comprised of money market funds valued using quoted market prices and are classified as Level 1.

Marketable Securities

The Company's marketable securities are comprised of foreign government securities.

Government securities are valued using quoted market prices and are classified as Level 1.

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ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Segregated Investments

The Company’s segregated investments are comprised of U.S.

Treasury securities.

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

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

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

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Fair Value Measurements (Continued)

The following tables present a rollforward of the activity of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2023 and 2022.

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

Level 3 Fair Value Assets Measurements at

1 unchanged sentence

Market Commodity

(In millions)

Balance, December 31, 2022 $ 2,760 $ 541 $ 3,301

Opening balance, January 1, 2024 $ 2,713 $ 731 $ 3,444

Total increase (decrease) in net realized/unrealized gains included in cost of products sold 646 1,010 1,656

4 unchanged sentences

Transfers out of Level 3 ( 1,431 ) ( 186 ) ( 1,617 )

Ending balance, December 31, 2023 (1)

Closing balance, December 31, 2024 (1)

$ 3,031 $ 427 $ 3,458

3 unchanged sentences

Payables Commodity

Losses Debt Conversion Option Total

(In millions)

Balance, December 31, 2022 $ 89 $ 603 $ 6 $ 698

Opening balance, January 1, 2024 $ 101 $ 457 $ 558

Total increase (decrease) in net realized/unrealized losses included in cost of products sold and interest expense ( 12 ) 1,124 1,112

Purchases 79 — 79

Sales ( 81 ) — ( 81 )

Settlements — ( 1,142 ) ( 1,142 )

1 unchanged sentence

Transfers out of Level 3 — ( 102 ) ( 102 )

Ending balance, December 31, 2023 (1)

Closing balance, December 31, 2024 (1)

$ 88 $ 405 $ 493

(1) Includes increase in unrealized losses of $ 1.1 billion relating to Level 3 liabilities still held at December 31, 2024.

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ARCHER-DANIELS-MIDLAND COMPANY

Notes to Consolidated Financial Statements (Continued)

Fair Value Measurements (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Level 3 Fair Value Assets Measurements at

1 unchanged sentence

Market Commodity

(In millions)

Balance, December 31, 2021 $ 3,004 $ 460 $ 3,464

Opening balance, January 1, 2023 $ 2,760 $ 541 $ 3,301

Total increase (decrease) in net realized/unrealized gains included in cost of products sold 432 1,460 1,892

4 unchanged sentences

Transfers out of Level 3 ( 1,950 ) ( 82 ) ( 2,032 )

Ending balance, December 31, 2022 (1)

Closing balance, December 31, 2023 (1)

$ 2,713 $ 731 $ 3,444

4 unchanged sentences

Losses Debt Conversion Option Total

(In millions)

Balance, December 31, 2021 $ 106 $ 815 $ 15 $ 936

Opening balance, January 1, 2023 $ 89 $ 603 $ 6 $ 698

Total increase (decrease) in net realized/unrealized losses included in cost of products sold and interest expense 5 1,303 ( 6 ) 1,302

Purchases 49 — — 49

Sales ( 203 ) — — ( 203 )

Settlements ( 35 ) ( 1,583 ) — ( 1,618 )

1 unchanged sentence

Transfers out of Level 3 ( 8 ) ( 23 ) — ( 31 )

Ending balance, December 31, 2022 (1)

Closing balance, December 31, 2023 (1)

$ 101 $ 457 $ — $ 558

2 unchanged sentences

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

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Fair Value Measurements (Continued)

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

1 unchanged sentence

In the table below, these other adjustments are referred to as basis.

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ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

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

As an example, for Level 3 inventories with basis, the unobservable component as of December 31, 2023 is a weighted average 25.0 % of the total price for assets and 33.2 % of the total price for liabilities.

As an example, for Level 3 inventories with basis, the unobservable component as of December 31, 2024 was a weighted average 24.9 % of the total price for assets and 31.3 % of the total price for liabilities.

Weighted Average % of Total Price

19 unchanged sentences

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

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Derivative Instruments & Hedging Activities (Continued)

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

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

December 31, 2024 December 31, 2023

Assets Liabilities Assets Liabilities

(In millions)

Foreign Currency Contracts $ 272 $ 102 $ 187 $ 122

Commodity Contracts 828 760 1,343 957

Debt Conversion Option — — — 6

Total $ 1,100 $ 862 $ 1,530 $ 1,079

The following table sets forth the pre-tax gains (losses) on derivatives not designated as hedging instruments that have been included in the consolidated statements of earnings for the years ended December 31, 2023, 2022, and 2021.

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ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table sets forth the pre-tax gains (losses) on derivatives not designated as hedging instruments that have been included in the Consolidated Statements of Earnings for the years ended December 31, 2024, 2023, and 2022 (in millions).

Cost of Other expense (income) - net

products Interest

(In millions) Revenues sold Expense

Revenues sold Expense Total

For the Year Ended December 31, 2024

Consolidated Statement of Earnings $ 93,935 $ 86,422 $ 647 $ ( 176 )

Pre-tax gains (losses) on:

1 unchanged sentence

Commodity Contracts — 391 — —

Debt Conversion Option — — 6

Total gain (loss) recognized in earnings $ 29 $ 3 $ — $ 142 $ 174

For the Year Ended December 31, 2023

Consolidated Statement of Earnings $ 101,556 $ 93,986 $ 396 $ ( 358 )

Pre-tax gains (losses) on:

4 unchanged sentences

For the Year Ended December 31, 2022

Consolidated Statement of Earnings $ 85,249 $ 79,262 $ 265 $ ( 94 )

Pre-tax gains (losses) on:

3 unchanged sentences

Total gain (loss) recognized in earnings $ ( 42 ) $ 247 $ 9 $ 194 $ 408

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Derivative Instruments & Hedging Activities (Continued)

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

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 or Net Investment Hedging Instruments

Derivatives Designated as Hedging Instruments

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

In addition, the Company had certain derivatives designated as fair value hedges as of December 31, 2024.

Cash Flow Hedges

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 reclassified into earnings in the same line item affected by the hedged transaction and in the same period or periods during which the hedged transaction affects earnings.

Hedge components excluded from the assessment of effectiveness and gains and losses related to discontinued hedges are recognized in the consolidated statement of earnings during the current period.

Commodity Contracts

Hedge components excluded from the assessment of effectiveness and gains and losses related to discontinued hedges are recognized in the Consolidated Statements of Earnings during the relevant period.

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ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For each of the hedge programs described below, the derivatives are designated as cash flow hedges.

6 unchanged sentences

At December 31, 2024, the Company had designated hedges representing between 9 % to 26 % 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 December 31, 2023, the Company had no hedges related to ethanol sales.

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

6 unchanged sentences

At December 31, 2024, the Company had designated hedges representing between 35 % and 50 % of the anticipated monthly natural gas consumption over the next 12 months.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Derivative Instruments & Hedging Activities (Continued)

As of December 31, 2023 and 2022, the Company had after-tax gains of $ 42 million and after-tax losses of $ 17 million in AOCI, respectively, related to gains and losses from these programs.

The Company expects to recognize $ 42 million of the 2023 after-tax gains 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.

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

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

As of December 31, 2024 and 2023, the Company had after-tax losses of $ 13 million and after-tax gains of $ 42 million in AOCI, respectively, related to gains and losses from these programs.

The Company expects to recognize $ 13 million of the 2024 after-tax losses in its Consolidated Statements 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 Statements 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 rate swaps with an aggregate notional amount of $ 500 million as of December 31, 2024.

As of December 31, 2024, the Company had pre-tax gains of $ 5 million in other current assets related to interest rate swaps and a corresponding offset to the underlying debt for the same amount, with no net impact to earnings.

Net Investment Hedges

The Company uses cross-currency swaps and foreign exchange forwards designated as net investment hedges to protect the Company’s investment in a foreign subsidiary against changes in foreign currency exchange rates.

The Company executed USD-fixed to Euro-fixed cross-currency swaps with an aggregate notional amount of $ 0.8 billion as of December 31, 2023 and 2022, and foreign exchange forwards with an aggregate notional amount of $ 2.1 billion and $ 2.5 billion as of December 31, 2023 and 2022, respectively.

The Company had USD-fixed to Euro-fixed cross-currency swaps with an aggregate notional amount of $ 394 million and $ 805 million as of December 31, 2024 and 2023, respectively, and foreign exchange forwards with an aggregate notional amount of $ 2.1 billion as of each of December 31, 2024 and 2023.

Amounts excluded from the assessment of hedge effectiveness are immaterial for all periods presented.

As of December 31, 2023 and 2022, the Company had after-tax losses of $ 5 million and after-tax gains of $ 79 million in AOCI, respectively, related to foreign exchange gains and losses from net investment hedge transactions.

As of December 31, 2024 and 2023, the Company had after-tax losses of $ 99 million and $ 5 million in AOCI, respectively, related to foreign exchange gains and losses from net investment hedge transactions.

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

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

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ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

December 31, 2024 December 31, 2023

Assets Liabilities Assets Liabilities

(In millions)

Commodity Contracts $ 3 $ — $ 16 $ —

2 unchanged sentences

Total $ 8 $ 110 $ 16 $ 22

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Derivative Instruments & Hedging Activities (Continued)

The following table sets forth the pre-tax gains (losses) on derivatives designated as hedging instruments that have been included in the consolidated statement of earnings for the years ended December 31, 2023, 2022, and 2021.

The following table sets forth the pre-tax gains (losses) on derivatives designated as cash flow hedging instruments that have been included in the Consolidated Statements of Earnings for the years ended December 31, 2024, 2023, and 2022 (in millions).

Cost of products sold

(In millions) Revenues

For the Year Ended December 31, 2024

Consolidated Statement of Earnings $ 93,935 $ 86,422

Effective amounts recognized in earnings

Pre-tax gains (losses) on:

Commodity Contracts $ ( 77 )

Total gain (loss) recognized in earnings $ — $ 322 $ 322

For the Year Ended December 31, 2023

Consolidated Statement of Earnings $ 101,556 $ 93,986

Effective amounts recognized in earnings

Pre-tax gains (losses) on:

Commodity Contracts $ 322

Interest Rate Contracts 1 —

Total gain (loss) recognized in earnings $ 1 $ 351 $ 352

For the Year Ended December 31, 2022

Consolidated Statement of Earnings $ 85,249 $ 79,262

Effective amounts recognized in earnings

Pre-tax gains (losses) on:

Commodity Contracts $ 351

Interest Rate Contracts ( 16 ) —

Total gain (loss) recognized in earnings $ ( 16 ) $ 490 $ 474

Other Net Investment Hedging Strategies

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

The Company has also designated $ 674 million (€ 650 million) of its outstanding long-term debt and commercial paper borrowings at each of December 31, 2024 and 2023, as hedges of its net investment in a foreign subsidiary.

As of December 31, 2024 and 2023, the Company had after-tax gains of $ 251 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.

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ARCHER-DANIELS-MIDLAND COMPANY

Notes to Consolidated Financial Statements (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Other Current Assets

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

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

December 31, 2024 December 31, 2023

(In millions)

Unrealized gains on derivative contracts $ 1,108 $ 1,546

9 unchanged sentences

$ 4,369 $ 4,982

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

The amounts are reported net of allowances of $ 6 million and $ 3 million at December 31, 2023 and 2022, respectively.

(1) Interest earned on financing receivables of $ 18 million, $ 21 million, and $ 15 million for the years ended December 31, 2024, 2023, and 2022, respectively, is included in Interest and investment income in the Consolidated Statements of Earnings.

Accrued Expenses and Other Payables

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

The following table sets forth the items in accrued expenses and other payables (in millions).

December 31, 2024 December 31, 2023

(In millions)

Unrealized losses on derivative contracts $ 972 $ 1,101

2 unchanged sentences

Other taxes payable 138 172

Insurance claims payable 73 223

Contract liability 626 694

Accrued interest payable

Insurance liabilities

Contract liabilities (1)

Other deferred income

Other accruals and payables 1,092 1,045

$ 3,730 $ 4,076

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

Revenues recognized in the year ended December 31, 2024 from contract liabilities as of December 31, 2023 were $ 529 million.

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ARCHER-DANIELS-MIDLAND COMPANY

Notes to Consolidated Financial Statements (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Investments in and Advances to Affiliates

The Company applies the equity method of accounting for investments in investees over which ADM has the ability to exercise significant influence, including the Company’s 22.5 % share ownership in Wilmar as of December 31, 2023 and 2022.

The Company applies the equity method of accounting for investments in investees over which the Company has the ability to exercise significant influence.

Wilmar Investment

The Company had a 22.5 % share ownership in Wilmar as of December 31, 2024 and 2023.

During the year ended December 31, 2024, the Company’s investment in Wilmar was written down to its fair value, resulting in a pre-tax impairment charge of $ 461 million recorded in asset impairment, exit, and restructuring costs within the Consolidated Statement of Earnings.

Subsequent to this impairment, the Company continues to monitor its investment in Wilmar for impairment.

The Company’s investment in Wilmar had a carrying value of $ 3.9 billion as of December 31, 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 December 31, 2024.

In accordance with its accounting policy, as of December 31, 2024, the Company evaluated several factors in its determination of whether an other-than-temporary impairment of its investment in Wilmar had occurred as of that date.

This included consideration of the short duration of the carrying value being above Wilmar's stock price, the recent performance of Wilmar’s stock price as quoted on the Singapore Exchange, latest consensus analyst forecasts, Wilmar’s long history of earnings and dividends and the Company’s continued representation on Wilmar’s Board.

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, the Company does not consider the investment to be other-than temporarily impaired at December 31, 2024.

The Company will continue to reassess its investment in Wilmar which may result in the recognition of an other-than-temporary impairment in the future.

Other Investments

As of December 31, 2024, the Company also holds equity method investments in Pacificor ( 32.2 %), Stratas Foods LLC ( 50.0 %), Edible Oils Limited ( 50.0 %), Olenex ( 37.5 %), SoyVen ( 50.0 %), Hungrana Ltd ( 50.0 %), Almidones Mexicanos S.A.

( 50.0 %), Aston Foods and Food Ingredients ( 50.0 %), Red Star Yeast Company, LLC ( 40.0 %), LSCP, LLLP ( 22.1 %), Vimison S.A.

( 50.0 %), Terminal de Grãos Ponta da Montanha S.A.

( 50.0 %), Gradable, LLC ( 50.0 %), Aston Foods and Food Ingredients ( 50.0 %), Red Star Yeast Company, LLC ( 40.0 %), LSCP, LLLP ( 22.1 %), Vimison S.A.

( 45.3 %), ADM Matsutani LLC ( 50 %), Matsutani Singapore Pte.

2 unchanged sentences

( 42.8 %), and Vitafort ZRT ( 34.3 %).

Summarized Financial Information

The Company had 69 and 73 unconsolidated domestic and foreign affiliates as of December 31, 2024 and 2023, respectively.

The following table summarizes the combined balance sheets as of December 31, 2023 and 2022, and the combined statements of earnings of the Company’s unconsolidated affiliates for the years ended December 31, 2023, 2022, and 2021.

(In millions) 2023 2022

The following tables summarize the aggregated balance sheets as of December 31, 2024 and 2023, and the aggregated statements of earnings of the Company’s unconsolidated affiliates for the years ended December 31, 2024, 2023, and 2022 (in millions).

Current assets $ 33,065 $ 41,032

2 unchanged sentences

Non-current liabilities ( 8,772 ) ( 8,973 )

Noncontrolling interests ( 2,489 ) ( 2,641 )

Non-controlling interests ( 2,499 ) ( 2,489 )

Net assets $ 23,399 $ 25,531

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ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Year Ended December 31

(In millions) 2023 2022 2021

2024 2023 2022

Revenues $ 77,251 $ 85,754 $ 109,448

Gross profit 3,673 4,261 8,946

Net income 2,452 3,140 2,315

The Company’s share of the undistributed earnings of its unconsolidated affiliates as of December 31, 2023 is $ 5.9 billion.

The Company’s investment in Wilmar has a carrying value of $ 4.1 billion as of December 31, 2023, and a market value of $ 3.8 billion based on quoted market price converted to U.S.

dollars at the applicable exchange rate at December 31, 2023.

The Company evaluated the near-term prospects of Wilmar in relation to the severity and duration of the decline in fair value.

Based on that evaluation, the Company does not consider the investment to be other-than-temporarily impaired at December 31, 2023.

The Company provides credit facilities totaling $ 121 million to six unconsolidated affiliates.

One facility that bears interest at 5.97 % has an outstanding balance of $ 2 million while the other five facilities have no outstanding balance as of December 31, 2023.

The outstanding balance is included in other current assets in the accompanying consolidated balance sheet.

Net earnings 2,036 2,452 3,140

The Company’s share of the undistributed earnings of its unconsolidated affiliates as of December 31, 2024 was $ 6.1 billion.

Transactions and Balances with Investees

Net sales to unconsolidated affiliates during the years ended December 31, 2024, 2023, and 2022 were $ 6.7 billion, $ 7.0 billion, and $ 7.8 billion, respectively.

Accounts receivable due from unconsolidated affiliates as of December 31, 2024 and 2023 was $ 342 million and $ 167 million, respectively.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

The Company provides credit facilities totaling $ 142 million to seven unconsolidated affiliates.

One facility that bears interest at 5.9 % has an outstanding balance of $ 2 million, one facility that bears interest at 6.9 % has an outstanding balance of $ 7.5 million, and one facility that bears interest at 4.2 % has an outstanding balance of $ 7.5 million while the remaining facilities have no outstanding balance as of December 31, 2024.

The outstanding balance is included in other current assets in the Company's Consolidated Balance Sheets.

Goodwill and Other Intangible Assets

Goodwill balances attributable to consolidated businesses, by segment, are set forth in the following table.

December 31, 2023 December 31, 2022

(In millions)

Ag Services and Oilseeds $ 235 $ 193

Changes in the carrying amount of goodwill by reportable segment and Other Business for the years ended December 31, 2024 and 2023 are as follows (in millions):

Ag Services & Oilseeds

Carbohydrate Solutions

Nutrition 3,640 3,731

Other Business

Total $ 4,103 $ 4,162

The changes in goodwill during the year ended December 31, 2023 were primarily related to impairment of $ 137 million in the Animal Nutrition reporting unit of Nutrition, partially offset by an increase due to an acquisition of $ 20 million principally in the Ag Services and Oilseeds segment and foreign currency translation gains of $ 65 million primarily in the Nutrition segment.

As of December 31, 2023 and 2022, accumulated amortization loss was $ 156 million and $ 19 million, respectively.

The following table sets forth the other intangible assets:

Balance at December 31, 2022

$ 193 $ 224 $ 3,731 $ 14 $ 4,162

— — ( 137 ) — ( 137 )

Currency translation adjustments and other

22 — 46 ( 10 ) 58

Balance at December 31, 2023

$ 235 $ 224 $ 3,640 $ 4 $ 4,103

Acquisitions — — 557 — 557

Currency translation adjustments and other ( 17 ) ( 8 ) ( 127 ) 1 ( 151 )

Balance at December 31, 2024

$ 218 $ 216 $ 4,070 $ 5 $ 4,509

As of each of December 31, 2024 and 2023, accumulated impairment for goodwill was $ 156 million.

During the year ended December 31, 2024, the Company evaluated goodwill for impairment using a qualitative assessment for two reporting units and using a quantitative assessment for five reporting units.

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ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Per the results of the impairment testing within the Ag Services and Oilseeds (AS&O) reportable segment for the year ended December 31, 2024, the estimated fair value of the Ag Services, Crushing, and RPO reporting units evaluated for impairment using a quantitative assessment was in excess of 128 %, 191 % and 209 % of its carrying value, respectively, and no impairment was recorded for any of the AS&O reporting units.

Per the results of the impairment testing within the Nutrition reportable segment for the year ended December 31, 2024, the estimated fair value of the Animal Nutrition and Human Nutrition reporting units evaluated for impairment using a quantitative assessment was in excess of 7 % and 32 % of its carrying value, respectively, and no impairment was recorded for either of the Nutrition reporting units.

The Company used a combination of the income and market approaches when performing the quantitative assessment of goodwill for the Animal Nutrition reporting unit.

The Company weighted the income approach with a probability weight of 75 %, as it is based on the future business plans and growth estimates for the Company’s Animal Nutrition business and thus considers short-term and long-term cash flow expectations for the business.

The market approach was weighted less heavily at 25 %, as it represents an estimate of fair value based on market guideline companies for which future growth expectations are not precisely known.

During the year ended December 31, 2023, the Company recorded a goodwill impairment charge of $ 137 million related to the Animal Nutrition reporting unit that was evaluated for impairment using a quantitative assessment.

Following the recording of the impairment charge, the remaining carrying value of goodwill in the Animal Nutrition reporting unit as of December 31, 2023 was $ 946 million.

There was no goodwill impairment charge recorded for the year ended December 31, 2022.

Other Intangible Assets

The following table sets forth the detail on other intangible assets.

December 31, 2024 December 31, 2023

14 unchanged sentences

Total $ 4,130 $ ( 1,870 ) $ 2,260 $ 3,892 $ ( 1,654 ) $ 2,238

The changes in the gross amounts during the year ended December 31, 2023 were primarily related to additions to capitalized software and related costs, net of the decrease in intangible assets in process and increases related to foreign currency translation of $ 53 million, partially offset by impairments of $ 64 million and reclassifications.

The changes in accumulated amortization during the year ended December 31, 2023 were related to amortization expense and foreign currency translation of $ 15 million, partially offset by reclassifications.

Aggregate amortization expense was $ 234 million, $ 235 million, and $ 177 million for the years ended December 31, 2023, 2022, and 2021, respectively, of which $ 72 million, $ 69 million, and $ 33 million, respectively, were for amortization of capitalized software and related costs.

The estimated future aggregate amortization expense for the next five years is $ 338 million, $ 345 million, $ 337 million, $ 330 million, and $ 310 million, respectively.

The changes in the gross amounts during the year ended December 31, 2024 were primarily related to acquisitions of $ 269 million, and additions to capitalized software and intangible assets in process of $ 134 million, partially offset by foreign currency and other adjustments of $ 122 million and impairments of $ 43 million.

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ARCHER-DANIELS-MIDLAND COMPANY

Notes to Consolidated Financial Statements (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Aggregate amortization expense was $ 266 million, $ 234 million, and $ 235 million for the years ended December 31, 2024, 2023, and 2022, respectively, of which $ 89 million, $ 72 million, and $ 69 million, respectively, were for amortization of capitalized software and related costs.

The estimated future annual amortization expense for the next five years for intangible assets recorded at December 31, 2024 is $ 285 million, $ 284 million, $ 272 million, $ 266 million, and $ 205 million, respectively.

Debt Financing Arrangements

The Company’s long-term debt consisted of the following:

The Company’s long-term debt consisted of the following (in millions, except as noted):

Debt Instrument

Interest Rate Face Amount Due Date December 31, 2024 December 31, 2023

(In millions)

2.5 % Notes $ 1 billion 2026 $ 998 $ 997

3.25 % Notes $ 1 billion 2030 991 989

1.000 % Notes € 650 million 2025 $ 672 $ 717

2.700 % Notes $ 750 million 2051 732 731

1 % Notes € 650 million 2025 717 691

4.5 % Notes $ 600 million 2049 589 589

4.500 % Notes $ 500 million 2033 492 —

5.375 % Debentures $ 432 million 2035 426 425

3.75 % Notes $ 408 million 2047 403 403

2.500 % Notes $ 1 billion 2026 999 998

7.500 % Debentures $ 147 million 2027 147 147

1 unchanged sentence

6.625 % Debentures $ 144 million 2029 144 144

3.250 % Notes $ 1 billion 2030 993 991

7.000 % Debentures $ 160 million 2031 161 159

2.900 % Notes $ 750 million 2032 745 744

5.935 % Debentures $ 336 million 2032 337 334

4.500 % Notes

$ 500 million 2033 493 492

5.375 % Debentures $ 432 million 2035 426 426

4 unchanged sentences

3.750 % Notes $ 408 million 2047 403 403

0 % Bonds $ 300 million 2023 — 304

4.500 % Notes $ 600 million 2049 589 589

2.700 % Notes $ 750 million 2051 732 732

6.950 % Debentures $ 157 million 2097 154 154

Other 199 177

2 unchanged sentences

Total long-term debt $ 7,580 $ 8,259

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.

Proceeds from the borrowings were used for general corporate purposes.

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

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

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Debt Financing Arrangements (Continued)

During the year ended December 31, 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 at an interest rate of Secured Overnight Financing Rate plus a fixed spread .

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

On February 28, 2022 , the Company issued its first sustainability bond of $ 750 million aggregate principal amount of 2.900 % notes due March 1, 2032 .

Net proceeds before expenses were $ 745 million.

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

In September 2022, the Company redeemed € 500 million aggregate principal amount of Fixed-to-Floating Rate Senior Notes due 2022 issued in a private placement on March 25, 2021.

Discount amortization expense, net of premium amortization, of $ 13 million, $ 15 million, and $ 6 million for the years ended December 31, 2024, 2023, and 2022, respectively, are included in interest expense related to the Company’s long-term debt.

At December 31, 2023, the fair value of the Company’s long-term debt exceeded the carrying value by $ 0.3 billion, as estimated using quoted market prices (a Level 2 measurement under applicable accounting standards).

The aggregate maturities of long-term debt for the five years after December 31, 2023, are $ 1 million, $ 718 million, $ 999 million, $ 251 million, and $ 1 million, respectively.

At December 31, 2023, the Company had lines of credit, including the accounts receivable securitization programs described below, totaling $ 13.2 billion, of which $ 11.5 billion was unused.

The weighted average interest rates on short-term borrowings outstanding at December 31, 2023 and 2022, were 7.44 % and 6.21 %, respectively.

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

and European commercial paper borrowing programs, against which there was $ 5 million commercial paper outstanding at December 31, 2023.

At December 31, 2024, the fair value of the Company’s long-term debt, excluding current portion, was $ 7.1 billion, as estimated using quoted market prices (a Level 2 measurement under applicable accounting standards), compared to a carrying value of $ 7.6 billion.

The Company’s credit facilities and certain debentures require the Company to comply with specified financial and non-financial covenants including maintenance of minimum tangible net worth as well as limitations related to incurring liens, secured debt, and certain other financing arrangements.

The Company is in compliance with these covenants as of December 31, 2023.

The Company had outstanding standby letters of credit and surety bonds at December 31, 2023 and 2022, totaling $ 1.6 billion.

The Company was in compliance with these covenants as of December 31, 2024.

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ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The aggregate future maturities of long-term debt as of December 31, 2024 are as follows (in millions):

Total estimated future maturities

At December 31, 2024, the Company had lines of credit, including the accounts receivable securitization programs described below, totaling $ 13.0 billion, of which $ 9.1 billion was unused.

The Company had outstanding standby letters of credit and surety bonds at December 31, 2024 and 2023, totaling $ 1.4 billion and $ 1.6 billion, respectively.

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

The Programs provide the Company with up to $ 2.8 billion in funding resulting from the sale of accounts receivable.

As of December 31, 2023, the Company utilized $ 1.6 billion of its facility under the Programs (see Note 19 for more information on the Programs).

As of December 31, 2024, the Company utilized $ 2.0 billion of its facility under the Programs.

Sale of Accounts Receivable for further information on the Programs.

The weighted average interest rates on short-term borrowings outstanding at December 31, 2024 and 2023, were 4.7 % and 7.4 %, respectively.

Of the Company’s total lines of credit, $ 5.1 billion supported the combined U.S.

and European commercial paper borrowing programs, against which there was $ 1.7 billion of commercial paper outstanding at December 31, 2024.

Credit Ratings

As of December 31, 2024, the three major credit rating agencies maintained the Company’s credit ratings at investment grade levels with a negative outlook.

Stock Compensation

Total compensation expense for stock option grants, Restricted Stock Awards, and PSUs recognized during the years ended December 31, 2024, 2023, and 2022 was $ 74 million, $ 112 million, and $ 147 million, respectively.

Changes in incentive compensation expense from period to period are primarily caused by the level of attainment of the PSU performance criteria described below.

Stock Option Grants

The Company’s employee stock compensation plans provide for the granting of options to employees to purchase common stock of the Company pursuant to the Company’s 2020 Incentive Compensation Plan.

7 unchanged sentences

No options were granted in 2024, 2023, and 2022.

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ARCHER-DANIELS-MIDLAND COMPANY

Notes to Consolidated Financial Statements (Continued)

Stock Compensation (Continued)

A summary of option activity during 2023 is presented below:

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

A summary of option activity during 2024 is presented below (in thousands, except per share amounts):

Shares Weighted-Average

Exercise Price

(In thousands, except per share amounts)

Shares under option at December 31, 2023 1,614 $ 37.11

Exercised ( 567 ) 44.38

Forfeited or expired — 0.00

Shares under option at December 31, 2024 1,047 $ 33.18

Exercisable at December 31, 2024 1,047 $ 33.18

The weighted-average remaining contractual term of options outstanding and exercisable at December 31, 2023, is 2 years.

The aggregate intrinsic value of options outstanding and exercisable at December 31, 2023, is $ 59 million.

The weighted-average remaining contractual term of options outstanding and exercisable at December 31, 2024, was 1 year.

The aggregate intrinsic value of options outstanding and exercisable at December 31, 2024, was $ 19 million.

The total intrinsic values of options exercised during the years ended December 31, 2024, 2023, and 2022, were $ 9 million, $ 20 million, and $ 117 million, respectively.

Cash proceeds received from options exercised during the years ended December 31, 2023, 2022, and 2021, were $ 20 million, $ 90 million, and $ 64 million, respectively.

At December 31, 2023, unrecognized compensation expense related to option grants to be recognized as compensation expense during the next year was immaterial.

The Company’s 2020 Incentive Compensation Plan provides for the granting of restricted stock and restricted stock units (Restricted Stock Awards) at no cost to certain officers and key employees.

In addition, the Company’s 2020 Incentive Compensation Plan also provides for the granting of performance stock units (PSUs) at no cost to certain officers and key employees.

Cash proceeds received from options exercised during the years ended December 31, 2024, 2023, and 2022, were $ 25 million, $ 20 million, and $ 90 million, respectively, and are presented as financing activities within the Consolidated Statements of Cash Flows under Other - net.

Restricted Stock Awards and PSUs

The Company’s 2020 Incentive Compensation Plan provides for the granting of restricted stock and restricted stock units at no cost to certain officers and key employees.

In addition, the Company’s 2020 Incentive Compensation Plan also provides for the granting of PSUs at no cost to certain officers and key employees.

Restricted Stock Awards are made in common stock or stock units with equivalent rights and vest at the end of a restriction period of three years .

Starting with the February 2023 grant, Restricted Stock Awards have a three-year graded vesting schedule and vest at 33.33 % each year.

The awards for PSUs are made in common stock units and vest at the end of a vesting period of three years subject to the attainment of certain future service and performance criteria based on the Company’s adjusted return on invested capital (ROIC) and adjusted earnings per share (EPS) with a modifier for gender parity and GHG emissions.

The awards for PSUs are made in common stock units and vest at the end of a vesting period of three years subject to the attainment of certain future service and Company performance criteria.

During the years ended December 31, 2024, 2023, and 2022, 2.6 million, 1.7 million, and 2.3 million common stock or stock units, respectively, were granted as Restricted Stock Awards and PSUs.

At December 31, 2023, there were 13.5 million shares available for future grants pursuant to the 2020 plan.

At December 31, 2024, there were 11.2 million shares available for future grants pursuant to the 2020 Incentive Compensation Plan.

The fair value of Restricted Stock Awards and PSUs is determined based on the market value of the Company’s shares on the grant date.

The weighted-average grant-date fair values of awards granted during the years ended December 31, 2024, 2023, and 2022 were $ 55.16 , $ 78.90 , and $ 70.13 , respectively.

A summary of Restricted Stock Awards and PSUs activity during 2023 is presented below:

A summary of Restricted Stock Awards and PSUs activity during 2024 is presented below (in thousands, except per share amounts):

Stock Awards and PSUs Weighted Average

Grant-Date Fair Value

(In thousands, except per share amounts)

Non-vested at December 31, 2022 6,408 $ 57.22

Non-vested at January 1, 2024 5,332 $ 69.82

Granted 2,635 55.16

2 unchanged sentences

Non-vested at December 31, 2024 5,285 $ 68.77

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ARCHER-DANIELS-MIDLAND COMPANY

Notes to Consolidated Financial Statements (Continued)

Stock Compensation (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

At December 31, 2024, there was $ 89 million of total unrecognized compensation expense related to Restricted Stock Awards and PSUs.

Amounts to be recognized as compensation expense during the next three years are $ 58 million, $ 30 million, and $ 3 million, respectively.

The total grant-date fair value of Restricted Stock Awards that vested during the year ended December 31, 2023 was $ 153 million.

Compensation expense for option grants, Restricted Stock Awards, and PSUs granted to employees is generally recognized on a straight-line basis during the service period of the respective grant.

Compensation expense for PSUs is based on the probability of meeting the performance criteria.

The Company recognizes forfeitures as they occur.

Total compensation expense for option grants, Restricted Stock Awards, and PSUs recognized during the years ended December 31, 2023, 2022, and 2021 was $ 112 million, $ 147 million, and $ 161 million, respectively.

Changes in incentive compensation expense are primarily caused by the level of attainment of the PSU performance criteria described above.

Amounts to be recognized as compensation expense during the years ended December 31, 2025, 2026, and 2027 are expected to be $ 58 million, $ 27 million, and $ 4 million, respectively, based on expected Company performance and award service conditions.

The total grant-date fair value of Restricted Stock Awards and PSU's that vested during the year ended December 31, 2024 was $ 141 million.

Other (Income) Expense – Net

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

(In millions) Year Ended December 31

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

Year Ended December 31

2024 2023 2022

Gains on sale of assets $ ( 27 ) $ ( 38 ) $ ( 78 )

Pension settlement — — 83

Other – net ( 224 ) ( 138 ) ( 280 )

$ ( 251 ) $ ( 176 ) $ ( 358 )

Individually significant items included in the table above are:

Gains on sale of assets for the year ended December 31, 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 for the year ended December 31, 2021 consisted of gains on the sale of the Company’s ethanol production complex in Peoria, Illinois of $ 22 million, the sale of certain other assets, and disposals of individually insignificant assets in the ordinary course of business.

Pension settlement for the year ended December 31, 2021 was related to the purchase of group annuity contracts that irrevocably transferred the future benefit obligations and annuity administration for certain salaried and hourly retirees and terminated vested participants under the Company’s ADM Retirement Plan and ADM Pension Plan for Hourly-Wage Employees to independent third parties.

Other - net in the year ended December 31, 2024 included the non-service components of net pension benefit income of $ 18 million, net foreign exchange gains of $ 46 million, third party insurance recoveries of $ 133 million, and net other income.

Other - net for the year ended December 31, 2023 included the non-service components of net pension benefit income of $ 18 million, net foreign exchange gains of $ 85 million, and net other income.

Other - net for the year ended December 31, 2022 included a legal recovery related to the 2019 and 2020 closure of the Company’s export facility in Reserve, Louisiana of $ 110 million, net foreign exchange gains of $ 105 million, a $ 50 million one-time payment from the USDA Biofuel Producer Recovery Program, and the non-service components of net pension benefit income of $ 25 million, partially offset by net other expense.

Other - net for the year ended December 31, 2021 included the non-service components of net pension benefit income of $ 16 million, net foreign exchange gains of $ 24 million, and net other income.

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ARCHER-DANIELS-MIDLAND COMPANY

Notes to Consolidated Financial Statements (Continued)

The following table sets forth the geographic split of earnings before income taxes:

(In millions) December 31

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table sets forth the geographic split of earnings before income taxes (in millions).

Year Ended December 31

2024 2023 2022

1 unchanged sentence

Foreign 1,599 2,450 2,508

Total Earnings Before Income Taxes

$ 2,255 $ 4,294 $ 5,233

Significant components of income taxes are as follows:

(In millions) Year Ended December 31

Significant components of income tax expense are as follows (in millions):

Year Ended December 31

2024 2023 2022

Current expense

Federal $ 108 $ 291 $ 379

1 unchanged sentence

Foreign 490 513 481

$ 606 $ 851 $ 957

Deferred expense (benefit)

Federal ( 99 ) ( 52 ) 23

2 unchanged sentences

$ ( 130 ) $ ( 23 ) $ ( 89 )

Income tax expense

$ 476 $ 828 $ 868

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ARCHER-DANIELS-MIDLAND COMPANY

Notes to Consolidated Financial Statements (Continued)

Income Taxes (Continued)

Significant components of deferred tax liabilities and assets are as follows:

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Significant components of deferred tax liabilities and assets are as follows (in millions):

December 31, 2024 December 31, 2023

(In millions)

Deferred tax liabilities

3 unchanged sentences

Equity in earnings of affiliates 236 214

Inventory reserves — 11

Debt exchange 49 50

Reserves and other accruals 133 49

Other 137 108

$ 1,916 $ 1,898

7 unchanged sentences

State tax attributes 23 25

Reserves and other accruals 5 22

US carryforwards

Gross deferred tax assets 1,223 1,100

3 unchanged sentences

The net deferred tax liabilities are classified as follows:

Noncurrent assets (foreign) $ 295 $ 337

Noncurrent assets

Noncurrent liabilities ( 1,268 ) ( 1,309 )

Noncurrent liabilities (foreign) ( 203 ) ( 219 )

$ ( 916 ) $ ( 1,014 )

During 2023, the Company increased valuation allowances primarily related to net operating loss carryforwards.

Net Operating Losses and Valuation Allowances

The Company had $ 386 million and $ 494 million of tax assets related to net operating loss carryforwards of certain international subsidiaries at December 31, 2024 and 2023, respectively.

As of December 31, 2024, approximately $ 314 million of these assets have no expiration date, and the remaining $ 72 million expire at various times through fiscal 2034.

The annual usage of certain of these assets is limited to a percentage of taxable income of the respective foreign subsidiary for the year.

The Company has recorded a valuation allowance of $ 166 million and $ 160 million against these tax assets at December 31, 2024 and 2023, respectively, due to the uncertainty of their realization.

The Company had $ 41 million of tax assets related to foreign capital loss carryforwards at each of December 31, 2024 and 2023.

The Company recorded a valuation allowance of $ 41 million against these tax assets at each of December 31, 2024 and 2023 due to the uncertainty of their realization.

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ARCHER-DANIELS-MIDLAND COMPANY

Notes to Consolidated Financial Statements (Continued)

Income Taxes (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company had $ 196 million of tax assets related to U.S.

income tax attributes at December 31, 2024, of which $ 39 million will expire between 2029 and 2034, $ 89 million will expire in 2044, and the remaining $ 68 million have no expiration date.

The Company had $ 23 million and $ 25 million of tax assets related to state income tax attributes (incentive credits and net operating loss carryforwards), net of federal tax benefit, at December 31, 2024 and 2023, respectively, a majority of which will expire between 2025 and 2029.

Due to the uncertainty of realization, the Company recorded a valuation allowance of $ 16 million and $ 14 million related to state income tax assets net of federal tax benefit as of December 31, 2024 and 2023, respectively.

The change in the valuation allowance was related to the increase in the state income tax attributes over what was reserved in prior years.

In assessing the need for a valuation allowance, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized.

During 2024, the Company increased valuation allowances primarily related to net operating loss carryforwards.

The activity related to the income tax valuation allowance for the years ended December 31, 2024, 2023, and 2022 was as follows (in millions):

Year Ended December 31

2024 2023 2022

Opening balance, January 1

$ 216 $ 209 $ 281

( 33 ) ( 51 ) ( 90 )

Ending balance, December 31

$ 223 $ 216 $ 209

Income Tax Rate Reconciliation

Reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate on earnings is as follows:

Year Ended December 31

2024 2023 2022

Statutory rate 21.0 % 21.0 % 21.0 %

US Federal Statutory rate

21.0 % 21.0 % 21.0 %

State income taxes, net of federal tax benefit 0.2 0.9 1.4

2 unchanged sentences

Foreign currency effects/remeasurement ( 4.8 ) 0.5 0.6

Income tax adjustment to filed returns ( 0.4 ) ( 0.1 ) 0.7

Withholding Tax

Impairment of Investments 4.3 0.5 —

Change in Uncertain Tax Position

Tax benefit on U.S.

biodiesel credits ( 2.9 ) ( 1.7 ) ( 1.2 )

Tax benefit on U.S.

Second-generation biofuel credit

railroad credits

( 2.5 ) ( 1.5 ) ( 1.2 )

tax on foreign earnings 0.6 1.2 0.2

Valuation allowances ( 0.2 ) — 0.7

Other ( 0.8 ) ( 1.5 ) ( 0.9 )

Effective income tax rate 21.1 % 19.3 % 16.6 %

The effective tax rates for 2023 and 2022 were impacted by the geographic mix of earnings.

The effective tax rate for 2022 was also impacted by discrete tax items.

The effective tax rate for 2021 was impacted by the geographic mix of earnings and U.S.

tax credits, including the biodiesel tax credit and the railroad maintenance tax credit.

The effective tax rates for 2024 and 2023 were impacted by the tax impact of impairments on investments and the Company's geographic mix of earnings.

The effective tax rate for 2022 was impacted by the Company's geographic mix of earnings and discrete tax items.

ADM’s operations in foreign jurisdictions accounted for 71 %, 57 %, and 48 % of the Company’s total pre-tax earnings in fiscal years 2024, 2023, and 2022, respectively.

The foreign rate differential was primarily due to various tax rates applicable to the income earned from the Company’s operations in Switzerland, Asia, South America and the Caribbean.

The foreign rate differential was primarily due to various tax rates applicable to the income earned from the Company’s operations in Europe, Asia, South America and the Caribbean.

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ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Legislative Changes

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.

government enacted the Inflation Reduction Act of 2022 (the “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.

While the Inflation Act has no immediate impact and is not expected to have a material adverse effect on ADM’s results of operations going forward, the Company will continue to evaluate its impact as further information becomes available.

Undistributed earnings of the Company’s foreign subsidiaries and corporate joint ventures were approximately $ 17.9 billion at December 31, 2023.

Because these undistributed earnings continue to be indefinitely reinvested in foreign operations, no income taxes, other than the transition tax, the U.S.

tax on undistributed Subpart F, and the minimum tax on Global Intangible Low Taxed Income (GILTI), have been provided after the Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017.

Other Matters

It is not practicable to determine the amount of unrecognized deferred tax liability related to any remaining undistributed earnings of foreign subsidiaries and corporate joint ventures not subject to the transition tax.

The Company has elected to pay the one-time transition tax on accumulated foreign earnings over eight years.

As of December 31, 2023, the Company’s remaining transition tax liability was $ 85 million, which will be paid in installments through 2025.

As of December 31, 2024, the Company’s remaining transition tax liability was $ 61 million, which will be paid in 2025.

The Company incurred U.S.

taxable income of $ 425 million, $ 684 million, and $ 244 million related to GILTI and deducted $ 77 million, $ 67 million, and $ 87 million related to Foreign Derived Intangible Income Deduction in fiscal years 2023, 2022, and 2021 respectively.

taxable income of $ 674 million, $ 425 million, and $ 684 million related to Global Intangible Low-Taxed Income (GILTI) and deducted $ 16 million, $ 77 million, and $ 67 million related to Foreign Derived Intangible Income Deduction in fiscal years 2024, 2023, and 2022, respectively.

The Company made an accounting policy election to treat GILTI as a period cost.

2 unchanged sentences

The additional guidance, along with the potential for additional global tax legislation changes, may affect significant deductions and income inclusions and could have a material adverse effect on the Company’s net income or cash flow.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Income Taxes (Continued)

The Company had $ 494 million and $ 496 million of tax assets related to net operating loss carryforwards of certain international subsidiaries at December 31, 2023 and 2022, respectively.

As of December 31, 2023, approximately $ 412 million of these assets have no expiration date, and the remaining $ 82 million expire at various times through fiscal 2033.

The annual usage of certain of these assets is limited to a percentage of taxable income of the respective foreign subsidiary for the year.

The Company has recorded a valuation allowance of $ 160 million and $ 142 million against these tax assets at December 31, 2023 and 2022, respectively, due to the uncertainty of their realization.

The Company had $ 42 million of tax assets related to foreign capital loss carryforwards at December 31, 2023 and 2022.

The Company has recorded a valuation allowance of $ 42 million against these tax assets at December 31, 2023 and 2022 due to the uncertainty of their realization.

The Company had $ 25 million and $ 21 million of tax assets related to state income tax attributes (incentive credits and net operating loss carryforwards), net of federal tax benefit, at December 31, 2023 and 2022, respectively, a majority of which will expire between 2024 and 2028.

Due to the uncertainty of realization, the Company recorded a valuation allowance of $ 14 million and $ 15 million related to state income tax assets net of federal tax benefit as of December 31, 2023 and 2022, respectively.

The change in the valuation allowance was related to the expiration of certain state income tax attributes which were fully reserved in prior years.

The Company remains subject to federal examination in the U.S.

for the calendar tax years 2018 through 2023.

The following table sets forth a rollforward of activity of unrecognized tax benefits for the year ended December 31, 2023 and 2022 as follows:

Unrecognized Tax Benefits

December 31, 2023 December 31, 2022

(In millions)

Beginning balance $ 151 $ 157

Additions related to current year’s tax positions 2 6

Additions related to prior years’ tax positions 28 26

The following table sets forth a rollforward of activity of unrecognized tax benefits for the year ended December 31, 2024 and 2023 (in millions).

Opening balance, January 1

Net additions related to current year’s tax positions

Net additions related to prior years’ tax positions

Additions (adjustments) related to acquisitions 2 —

1 unchanged sentence

Settlements with tax authorities ( 48 ) ( 7 )

Ending balance $ 168 $ 151

Ending balance, December 31

The additions and reductions in unrecognized tax benefits shown in the table included effects related to net income and shareholders’ equity.

1 unchanged sentence

At December 31, 2024 and 2023, the Company had accrued interest and penalties on unrecognized tax benefits of $ 59 million and $ 52 million, respectively.

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ARCHER-DANIELS-MIDLAND COMPANY

Notes to Consolidated Financial Statements (Continued)

Income Taxes (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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.

6 unchanged sentences

If the total amount of unrecognized tax benefits were recognized by the Company at one time, there would be a reduction of $ 183 million on the tax expense for that period.

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

As of December 31, 2023, this assessment was $ 90 million in tax and $ 34 million in interest (adjusted for variation in currency exchange rates).

On April 23, 2020, the court issued an unfavorable ruling and in October 2020, assigned a third party expert to establish a valuation.

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

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

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

As of December 31, 2023, the Company has accrued its best estimate of what it believes will be the likely outcome of the litigation.

Lessee Accounting

The Company leases certain transportation equipment, plant equipment, office equipment, land, buildings, and storage facilities.

Most leases include options to renew, with renewal terms that can extend the lease term from 6 months to 49 years.

The renewal options are not included in the measurement of the right of use assets and lease liabilities unless the Company is reasonably certain to exercise the optional renewal periods.

Certain leases also include index and non-index escalation clauses and options to purchase the leased property.

Leases accounted for as finance leases were immaterial at December 31, 2023.

As an accounting policy election, the Company does not apply the recognition requirements of Topic 842 to short-term leases in all of its underlying asset categories.

The Company also combines lease and non-lease contract components in all of its underlying asset categories as an accounting policy election.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Leases (Continued)

The following table sets forth the amounts relating to the Company’s total lease cost and other information.

The Company remains subject to federal examination in the U.S.

for the calendar tax years 2018 through 2024.

In the year ended December 31, 2014, the Company’s wholly-owned subsidiary in the Netherlands, ADM Europe B.V., received a tax assessment of $ 122 million, including interest, from the Netherlands tax authority challenging the transfer pricing aspects of a business reorganization implemented in the year ended December 31, 2009.

On July 11, 2024, the Tax Court of Appeals issued a ruling decreasing the assessment to $ 52 million, including interest.

The Company decided not to appeal the decision further, and therefore the Tax Court of Appeals order is final.

As of December 31, 2024, the Company has paid the final assessed amount, and the issue is considered settled.

The following table sets forth the amounts relating to the Company’s total lease cost and other information (in millions).

Year Ended December 31

2024 2023 2022

(In millions)

Operating lease cost $ 410 $ 390 $ 356

3 unchanged sentences

Operating lease liability principal payments (1)

$ 397 $ 374 $ 339

Right-of-use assets obtained in exchange for new operating lease liabilities $ 437 $ 327 $ 357

1 unchanged sentence

Weighted average discount rate - operating leases 4.5 % 4.1 %

Below is a tabular disclosure of the future annual undiscounted cash flows for operating lease liabilities as of December 31, 2023.

(In millions)

(1) Operating lease payments are presented as operating activities within the Consolidated Statements of Cash Flows.

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ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The aggregate future lease payments for operating leases as of December 31, 2024 are as follows (in millions):

Thereafter 442

Less interest (1)

Total undiscounted minimum lease payments 1,636

Lease liability $ 1,381

(1) Calculated using the implicit rate of the lease, if available, or the incremental borrowing rate that is appropriate for the tenor and geography of the lease.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Employee Benefit Plans

3 unchanged sentences

employees who retire under qualifying conditions with subsidized postretirement health care coverage or Health Care Reimbursement Accounts.

In 2021, the Company amended the ADM Retirement Plan and the ADM Pension Plan for Hourly-Wage Employees (collectively, the “Plans”) and entered into two binding agreements to purchase:

(1) a group annuity contract from Principal Life Insurance Company (“Principal”) and (2) two group annuity contracts, separately from American General Life Insurance Company (“AGL”) and from AGL’s affiliate, The United States Life Insurance Company in the City of New York (“USL”), irrevocably transferring the future benefit obligations and annuity administration for approximately 6,000 retirees and terminated vested participants from the Plans to Principal, AGL, and USL.

The purchase of the group annuity contracts was funded directly by the Plans’ assets and reduced the Company’s pension obligations by approximately $ 0.7 billion.

As a result of the transactions, the Company recognized a non-cash pretax pension settlement charge of $ 83 million for the year ended December 31, 2021.

On July 31, 2017, the Company announced that all participants in the Company’s U.S.

salaried pension plan and the Supplemental Executive Retirement Plan (SERP) began accruing benefits under the cash balance formula effective January 1, 2022.

Benefits for participants who were accruing under the final average pay formula were frozen as of December 31, 2021, including pay and service through that date.

The Company maintains 401(k) plans covering substantially all U.S.

4 unchanged sentences

Cash dividends received on shares of Company common stock by these plans during the year ended December 31, 2024 were $ 11 million.

The following table sets forth the components of retirement plan expense for the years ended December 31, 2023, 2022, and 2021:

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ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table sets forth the components of retirement plan expense for the years ended December 31, 2024, 2023, and 2022 (in millions).

Pension Benefits Postretirement Benefits

(In millions) Year Ended December 31 Year Ended December 31

Year Ended December 31 Year Ended December 31

2024 2023 2022 2024 2023 2022

11 unchanged sentences

Total retirement plan expense $ 99 $ 90 $ 79 $ 8 $ 8 $ 9

Net actuarial loss (gain)

$ ( 38 ) $ 46 $ ( 88 ) $ ( 5 ) $ 4 $ ( 29 )

Prior service cost

26 19 20 — — —

Total pre-tax comprehensive loss (income)

$ ( 12 ) $ 65 $ ( 68 ) $ ( 5 ) $ 4 $ ( 29 )

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ARCHER-DANIELS-MIDLAND COMPANY

Notes to Consolidated Financial Statements (Continued)

Employee Benefit Plans (Continued)

The following tables set forth changes in the defined benefit obligation and the fair value of defined benefit plan assets for the years ended December 31, 2023 and 2022:

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following tables set forth changes in the defined benefit obligation and the fair value of defined benefit plan assets for the years ended December 31, 2024 and 2023 (in millions).

Pension Benefits Postretirement Benefits

2 unchanged sentences

2024 December 31

(In millions) (In millions)

Change in benefit obligations:

Benefit obligation, beginning $ 1,765 $ 1,587 $ 113 $ 118

3 unchanged sentences

Employee contributions 4 3 — —

Curtailments — ( 2 ) — —

Business combinations ( 1 ) — — —

Settlements ( 1 ) ( 1 ) — —

Benefits paid ( 62 ) ( 53 ) ( 14 ) ( 17 )

Foreign currency effects 30 ( 65 ) — —

Plan amendments 6 — — —

Foreign currency effects and Other

( 54 ) 28 1 —

Benefit obligation, ending $ 1,673 $ 1,765 $ 102 $ 113

Change in plan assets

Fair value of plan assets, beginning $ 1,415 $ 1,269 $ — $ —

2 unchanged sentences

Employee contributions 4 3 — —

Settlements ( 1 ) ( 1 ) — —

Benefits paid ( 62 ) ( 53 ) ( 14 ) ( 17 )

Foreign currency effects 22 ( 50 ) — —

Foreign currency effects and Other

( 39 ) 21 — —

Fair value of plan assets, ending $ 1,351 $ 1,415 $ — $ —

Funded status $ ( 322 ) $ ( 350 ) $ ( 102 ) $ ( 113 )

Prepaid benefit cost $ 63 $ 60 $ — $ —

Accrued benefit liability – current ( 19 ) ( 18 ) ( 14 ) ( 14 )

Accrued benefit liability – long-term ( 394 ) ( 360 ) ( 99 ) ( 104 )

Net amount recognized in the balance sheet $ ( 350 ) $ ( 318 ) $ ( 113 ) $ ( 118 )

In 2023, the actuarial loss in the pension plans was primarily due to decreases in the global bond yields while actual return on plan assets was related to favorable asset performance in countries with material assets including the U.S., the U.K., Canada, and Switzerland.

Amounts recognized in the Consolidated Balance Sheets consist of:

Other assets (non-current)

$ 68 $ 63 $ — $ —

Accrued expenses and other payables

( 19 ) ( 19 ) ( 13 ) ( 14 )

Other long-term liabilities

( 371 ) ( 394 ) ( 89 ) ( 99 )

Net amount recognized in the Consolidated Balance Sheets

$ ( 322 ) $ ( 350 ) $ ( 102 ) $ ( 113 )

In 2024, the actuarial gains in the pension plans were primarily driven by increases in the global bond yields, which were partially offset by unfavorable asset performances in the funded plans in the U.S.

The Company uses the corridor approach when amortizing actuarial losses.

5 unchanged sentences

unrecognized prior service credit of $ 30 million and unrecognized actuarial loss of $ 235 million.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Employee Benefit Plans (Continued)

Included in AOCI for postretirement benefits at December 31, 2024, are the following amounts that have not yet been recognized in net periodic postretirement benefit cost:

unrecognized prior service cost of $ 1 million and unrecognized actuarial loss of $ 15 million.

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ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table sets forth the principal assumptions used in developing net periodic benefit cost:

16 unchanged sentences

The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for the pension plans with projected benefit obligations in excess of plan assets were $ 1.4 billion, $ 1.4 billion, and $ 1.0 billion, respectively, as of December 31, 2024, and $ 1.5 billion, $ 1.5 billion, and $ 1.0 billion, respectively, as of December 31, 2023.

The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for the pension plans with accumulated benefit obligations in excess of plan assets were $ 1.5 billion, $ 1.5 billion, and $ 1.0 billion, respectively, as of December 31, 2023 and $ 1.2 billion, $ 1.2 billion, and $ 0.8 billion, respectively, as of December 31, 2022.

The accumulated benefit obligation for all pension plans as of December 31, 2023 and 2022, was $ 1.8 billion and $ 1.6 billion, respectively.

For postretirement benefit measurement purposes, a 8.7 % annual rate of increase in the per capita cost of covered health care benefits was assumed for the year ended December 31, 2024.

5 unchanged sentences

Mutual funds are valued at the closing price reported on the active market on which they are traded and are classified within Level 1 of the valuation hierarchy.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Employee Benefit Plans (Continued)

Common Collective Trust (CCT) Funds:

7 unchanged sentences

Treasury instruments are valued at the closing price reported on the active market on which they are traded and are classified within Level 1 of the valuation hierarchy.

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ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Government Agency, State, and Local Government Bonds:

2 unchanged sentences

Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants’ methods, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

The following tables set forth, by level within the fair value hierarchy, the fair value of plan assets as of December 31, 2023 and 2022.

The following tables set forth, by level within the fair value hierarchy, the fair value of plan assets as of December 31, 2024 and 2023 (in millions).

Fair Value Measurements at December 31, 2024

Quoted Prices in

Active Markets

for Identical

(Level 1) Significant

(Level 2) Significant

(Level 3) Total

(In millions)

Common stock $ 36 $ — $ — $ 36

9 unchanged sentences

Total assets at fair value $ 1,351

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Employee Benefit Plans (Continued)

Fair Value Measurements at December 31, 2023

Quoted Prices in

Active Markets

for Identical

(Level 1) Significant

(Level 2) Significant

(Level 3) Total

(In millions)

Common stock $ 37 $ — $ — $ 37

9 unchanged sentences

Total assets at fair value $ 1,415

Level 3 Gains and Losses:

There are no Plan assets classified as Level 3 in the fair value hierarchy;

therefore there are no gains or losses associated with Level 3 assets.

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ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table sets forth the actual asset allocation for the Company’s global pension plan assets as of the measurement date.

7 unchanged sentences

The actual asset allocation for the Company’s U.S.

pension plans as of the measurement date consists of 20 % equity securities and 80 % debt securities.

pension plans as of the measurement date consists of 23 % equity securities, 74 % debt securities, and 3 % other.

The target asset allocation for the Company’s U.S.

3 unchanged sentences

(2) The Company’s pension plans did not directly hold any shares of Company common stock as of the December 31, 2024 and 2023 measurement dates.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Employee Benefit Plans (Continued)

Investment objectives for the Company’s plan assets are to:

12 unchanged sentences

Adjustments are made to the expected long-term rate of return assumption when deemed necessary based upon revised expectations of future investment performance of the overall investment markets.

Contributions and Expected Future Benefit Payments

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ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Future Contributions and Expected Benefit Payments

Based on actuarial calculations, the Company expects to contribute $ 25 million to the pension plans and $ 13 million to the postretirement benefit plan during 2025.

The Company may elect to make additional discretionary contributions during this period.

The following benefit payments, which reflect expected future service, are expected to be paid by the benefit plans:

The following benefit payments, which reflect expected future service, are expected to be paid by the benefit plans (in millions):

Benefits Postretirement

(In millions)

2025 $ 76 $ 13

4 unchanged sentences

At December 31, 2024 and 2023, the Company had approximately 237.6 million shares and 202.5 million shares, respectively, of its common shares in treasury.

Treasury stock of $ 4.9 billion at December 31, 2023 and 2022 is recorded at cost as a reduction of common stock, and treasury stock of $ 2.7 billion and $ 1.7 billion at December 31, 2023 and 2022, respectively, is recorded at cost as a reduction of retained earnings.

Treasury stock of $ 4.8 billion and $ 4.9 billion at December 31, 2024 and 2023, respectively, is recorded at cost as a reduction of common stock, and treasury stock of $ 2.3 billion and $ 2.7 billion at December 31, 2024 and 2023, respectively, is recorded at cost as a reduction of reinvested earnings.

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ARCHER-DANIELS-MIDLAND COMPANY

Notes to Consolidated Financial Statements (Continued)

Shareholders’ Equity (Continued)

The following tables set forth the changes in AOCI by component and the reclassifications out of AOCI for the years ended December 31, 2023 and 2022:

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following tables set forth the changes in AOCI by component and the reclassifications out of AOCI for the years ended December 31, 2024, 2023, and 2022 (in millions).

Postretirement

1 unchanged sentence

Income (Loss)

(In millions)

Balance at December 31, 2021 $ ( 2,248 ) $ 225 $ ( 147 ) $ ( 2 ) $ ( 2,172 )

Other comprehensive income before reclassifications ( 609 ) 268 117 ( 12 ) ( 236 )

Other comprehensive income (loss) before reclassifications ( 609 ) 268 117 ( 12 ) ( 236 )

Gain (loss) from net investment hedges 328 — — — 328

Amounts reclassified from AOCI — ( 352 ) 23 — ( 329 )

Tax effect ( 93 ) 7 ( 15 ) 1 ( 100 )

Net of tax amount ( 374 ) ( 77 ) 125 ( 11 ) ( 337 )

Balance at December 31, 2022 ( 2,622 ) 148 ( 22 ) ( 13 ) ( 2,509 )

Other comprehensive income (loss) before reclassifications 204 337 ( 46 ) 16 511

Gain (loss) on net investment hedges ( 153 ) — — — ( 153 )

3 unchanged sentences

Balance at December 31, 2023 ( 2,539 ) 158 ( 108 ) 2 ( 2,487 )

Other comprehensive income before reclassifications 204 337 ( 46 ) 16 511

Other comprehensive income (loss) before reclassifications ( 607 ) ( 118 ) ( 27 ) ( 16 ) ( 768 )

Gain (loss) on net investment hedges 192 — — 192

4 unchanged sentences

Amounts reclassified from AOCI

Year Ended December 31 Affected line item in the

Details about AOCI components 2023 2022 2021 consolidated statement of earnings

(In millions)

Year Ended December 31,

Affected line item in the

Consolidated Statements of

Details about AOCI components 2024 2023 2022 Earnings

Deferred loss (gain) on hedging activities

4 unchanged sentences

$ 57 $ ( 245 ) $ ( 290 ) Net earnings

Pension liability adjustment

Amortization of defined benefit pension items:

Prior service losses (credit) $ ( 26 ) $ ( 119 ) $ ( 77 ) Other (income) expense – net

Actuarial losses ( 16 ) 142 176 Other (income) expense – net

( 42 ) 23 99 Earnings before income taxes

( 10 ) ( 4 ) ( 26 ) Income tax expense (benefit)

$ ( 52 ) $ 19 $ 73 Net earnings

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ARCHER-DANIELS-MIDLAND COMPANY

Notes to Consolidated Financial Statements (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Segment and Geographic Information

2 unchanged sentences

Each of these segments is organized based upon the nature of products and services offered.

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

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

The reportable segments have been identified based on financial data utilized by the Chief Operating Decision Maker (CODM), which is the Company’s Chief Executive Officer, who is also the Company’s Chair of the Board.

The CODM uses segment operating profit as the measurement of segment profit or loss.

Separate financial information for the Company’s three reportable segments is evaluated by the CODM on a monthly basis to allocate resources and assess performance.

The CODM does not use total assets by segment to make decisions regarding resources;

therefore, the total asset disclosure by segment has not been included.

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

The Ag Services and Oilseeds segment includes global activities related to the origination, merchandising, transportation, and storage of agricultural raw materials, and the crushing and further processing of oilseeds such as soybeans and soft seeds (cottonseed, sunflower seed, canola, rapeseed, and flaxseed) into vegetable oils and protein meals.

10 unchanged sentences

The Company engages in various structured trade finance activities to leverage its global trade flows.

This segment also includes the Company’s share of the results of its equity investments in Wilmar, Pacificor, SoyVen, Olenex, Stratas Foods LLC, and Edible Oils Limited.

This segment also includes the Company’s share of the results of its equity investments in Wilmar, Pacificor, Stratas Foods LLC, Edible Oils Limited, Olenex, SoyVen, and Gradable.

The Carbohydrate Solutions segment is engaged in corn and wheat wet and dry milling and other activities.

8 unchanged sentences

This segment also includes the Company’s share of the results of its equity investments in Hungrana Ltd., Almidones Mexicanos S.A., Aston Foods and Food Ingredients, Red Star Yeast Company, LLC, and LSCP, LLLP.

In November 2021, the Company sold its ethanol production complex in Peoria, Illinois.

The Nutrition segment serves various end markets including food, beverages, nutritional supplements, and feed and premix for livestock, aquaculture, and pet food.

The segment engages in the manufacturing, sale, and distribution of a wide array of ingredients and solutions including plant-based proteins, natural flavors, flavor systems, natural colors, emulsifiers, soluble fiber, polyols, hydrocolloids, probiotics, prebiotics, postbiotics, enzymes, botanical extracts, and other specialty food and feed ingredients.

The Nutrition segment includes the activities related to the procurement, processing, and distribution of edible beans.

The segment also includes activities related to the processing and distribution of formula feeds and animal health and nutrition products and the manufacture of contract and private label pet treats and foods.

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ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Nutrition segment serves various end markets including food, beverages, and nutritional supplements for humans, and complete feed, feed premix and additives, petfood and pet treats for livestock, aquaculture, and pets.

The segment engages in the creation, manufacturing, sale, and distribution of a wide array of ingredients and solutions including plant-based proteins, natural flavors, flavor systems, natural colors, emulsifiers, soluble fiber, polyols, hydrocolloids, probiotics, prebiotics, postbiotics, enzymes, botanical extracts, and other specialty food and feed ingredients and systems.

The Nutrition segment also includes activities related to the procurement, processing, and distribution of edible beans, the processing and distribution of formula feeds and animal health and nutrition products and the manufacture of contract and private label pet treats and foods.

This segment also includes the Company’s share of the results of its equity investments in Vimison S.A.

1 unchanged sentence

Ltd., ADM Vland Biotech Shandong Co., Ltd., Dusial S.A., and Vitafort ZRT.

Other Business includes the Company’s financial business units related to futures commission and insurance activities.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Segment and Geographic Information (Continued)

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

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

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.

Other Business results include the Company’s financial business units related to futures commission and insurance activities.

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

Correction of Certain Segment-Specific Historical Financial Information

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

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

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

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

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

The following tables present:

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

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

and (iii) adjustments and revised operating profit amounts for the Nutrition segment, in each case, for each of the years ended December 31, 2023, 2022, and 2021.

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

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

Years Ended December 31

(In millions) 2023 (1)

Gross revenues, as originally reported for 2022 and 2021 $ 77,457 $ 83,686 $ 70,455

Adjustments 1 15 24

Gross revenues, as revised $ 77,458 $ 83,701 $ 70,479

Intersegment revenues, as originally reported for 2022 and 2021 $ 4,031 $ 4,123 $ 3,408

Adjustments 1 15 24

Intersegment revenues, as revised $ 4,032 $ 4,138 $ 3,432

Segment operating profit, as originally reported for 2022 and 2021 $ 4,066 $ 4,386 $ 2,775

Adjustments 1 15 24

Segment operating profit, as revised $ 4,067 $ 4,401 $ 2,799

(1) The adjustments set forth in the table above for the year ended December 31, 2023 reflect adjustments effected for the period January 1, 2023 through September 30, 2023.

Given the timing of the Investigation, no adjustments were effected in the fourth quarter of 2023.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Segment and Geographic Information (Continued)

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

Years Ended December 31

(In millions) 2023 (1)

Gross revenues, as originally reported for 2022 and 2021 $ 14,509 $ 16,336 $ 12,672

Adjustments 30 53 35

Gross revenues, as revised $ 14,539 $ 16,389 $ 12,707

Intersegment revenues, as originally reported for 2022 and 2021 $ 1,635 $ 2,375 $ 1,562

Adjustments 30 53 35

Intersegment revenues, as revised $ 1,665 $ 2,428 $ 1,597

Segment operating profit, as originally reported for 2022 and 2021 $ 1,345 $ 1,360 $ 1,283

Adjustments 30 53 35

Segment operating profit, as revised $ 1,375 $ 1,413 $ 1,318

(1) The adjustments set forth in the table above for the year ended December 31, 2023 reflect adjustments effected for the period January 1, 2023 through September 30, 2023.

Given the timing of the Investigation, no adjustments were effected in the fourth quarter of 2023.

Impact of the Adjustments on Nutrition Segment Operating Profit

Years Ended December 31

(In millions) 2023 (1)

Segment operating profit, as originally reported for 2022 and 2021 $ 458 $ 736 $ 691

Adjustments ( 31 ) ( 68 ) ( 59 )

Segment operating profit, as revised $ 427 $ 668 $ 632

(1) The adjustments set forth in the table above for the year ended December 31, 2023 reflect adjustments effected for the period January 1, 2023 through September 30, 2023.

Given the timing of the Investigation, no adjustments were effected in the fourth quarter of 2023.

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

The following tables present:

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

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

and (iii) adjustments and revised gross revenues and intersegment revenues amounts for the Nutrition segment, for each of the years ended December 31, 2023, 2022, and 2021 .

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Segment and Geographic Information (Continued)

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

Years Ended December 31

(In millions) 2023 (1)

Gross revenues, as revised $ 77,458 $ 83,701 $ 70,479

Additional adjustments ( 1,446 ) ( 1,579 ) ( 1,115 )

Gross revenues, as further revised $ 76,012 $ 82,122 $ 69,364

Intersegment revenues, as revised $ 4,032 $ 4,138 $ 3,432

Additional adjustments ( 1,446 ) ( 1,579 ) ( 1,115 )

Intersegment revenues, as further revised $ 2,586 $ 2,559 $ 2,317

(1) The adjustments set forth in the table above for the year ended December 31, 2023 reflect adjustments effected for the period January 1, 2023 through September 30, 2023.

Given the timing of the Investigation, no adjustments were effected in the fourth quarter of 2023.

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

Years Ended December 31

(In millions) 2023 (1)

Gross revenues, as revised $ 14,539 $ 16,389 $ 12,707

Additional adjustments ( 11 ) ( 487 ) ( 295 )

Gross revenues, as further revised $ 14,528 $ 15,902 $ 12,412

Intersegment revenues, as revised $ 1,665 $ 2,428 $ 1,597

Additional adjustments ( 11 ) ( 487 ) ( 295 )

Intersegment revenues, as further revised $ 1,654 $ 1,941 $ 1,302

(1) The adjustments set forth in the table above for the year ended December 31, 2023 reflect adjustments effected for the period January 1, 2023 through September 30, 2023.

Given the timing of the Investigation, no adjustments were effected in the fourth quarter of 2023.

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

Years Ended December 31

(In millions) 2023 (1)

Gross revenues, as originally reported for 2022 and 2021 $ 7,466 $ 7,836 $ 6,933

Adjustments ( 141 ) ( 15 ) ( 68 )

Gross revenues, as revised $ 7,325 $ 7,821 $ 6,865

Intersegment revenues, as originally reported for 2022 and 2021 $ 255 $ 200 $ 221

Adjustments ( 141 ) ( 15 ) ( 68 )

Intersegment revenues, as revised $ 114 $ 185 $ 153

(1) The adjustments set forth in the table above for the year ended December 31, 2023 reflect adjustments effected for the period January 1, 2023 through September 30, 2023.

Given the timing of the Investigation, no adjustments were effected in the fourth quarter of 2023.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Segment and Geographic Information (Continued)

Segment Information

The following tables present data by segment, adjusted for the matters discussed above, for the years ended December 31, 2023, 2022 and 2021.

(In millions) Year Ended December 31

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

Segment Information for the Years ended December 31, 2024, 2023 and 2022

The following tables present data by segment (in millions).

Year Ended December 31, 2024

and Oilseeds Carbohydrate

Solutions Nutrition Total

Revenue from external customers

$ 66,516 $ 11,234 $ 7,349 $ 85,099

Gross revenues

Ag Services and Oilseeds $ 76,012 $ 82,122 $ 69,364

Carbohydrate Solutions 14,528 15,902 12,412

Nutrition 7,325 7,821 6,865

Other 424 396 380

Intersegment elimination ( 4,354 ) ( 4,685 ) ( 3,772 )

Total $ 93,935 $ 101,556 $ 85,249

Intersegment revenues

Ag Services and Oilseeds $ 2,586 $ 2,559 $ 2,317

Carbohydrate Solutions 1,654 1,941 1,302

Nutrition 114 185 153

Total $ 4,354 $ 4,685 $ 3,772

Revenues from external customers

Other Business

Total revenues

Cost of materials 60,378 7,170 4,651

Manufacturing costs 3,436 2,592 1,249

Selling, general, and administrative expenses

919 326 1,166

Other segment items (1)

( 664 ) ( 230 ) ( 103 )

Segment operating profit $ 2,447 $ 1,376 $ 386 $ 4,209

Reconciliation of segment operating profit

Other Business

Corporate ( 1,721 )

Specified items:

Gains on sales of assets and businesses 10

Asset impairment, restructuring, and net settlement contingencies (2)

Earnings before income taxes $ 2,255

(1) Other segment items for each reportable segment include:

Ag Services and Oilseeds:

Ag Services $ 47,420 $ 53,181 $ 45,017

Crushing 14,020 13,139 11,368

Refined Products and Other 11,986 13,243 10,662

Total Ag Services and Oilseeds 73,426 79,563 67,047

Equity in the earnings of affiliates;

interest and investment income, interest expense;

and other income/expense.

Carbohydrate Solutions:

Starches and Sweeteners 9,885 10,251 7,611

Vantage Corn Processors 2,989 3,710 3,499

Total Carbohydrate Solutions 12,874 13,961 11,110

Human Nutrition 3,634 3,769 3,189

Animal Nutrition 3,577 3,867 3,523

Total Nutrition 7,211 7,636 6,712

Other 424 396 380

Total $ 93,935 $ 101,556 $ 85,249

Equity in the earnings of affiliates and other income/expense.

Equity in the earnings of affiliates;

asset impairment, exit, and restructuring charges;

and other income/expense.

(2) These charges primarily include a $ 461 million impairment charge related to the Company's investment in Wilmar, within the Ag Services and Oilseeds segment, and a $ 43 million impairment charge related to the discontinued animal nutrition trademarks, within the Nutrition segment, partially offset by reversals of certain contingency liabilities in the Ag Services and Oilseeds segment.

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ARCHER-DANIELS-MIDLAND COMPANY

Notes to Consolidated Financial Statements (Continued)

Segment and Geographic Information (Continued)

(In millions) Year Ended December 31

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Year Ended December 31, 2023

and Oilseeds Carbohydrate

Solutions Nutrition Total

Revenue from external customers

$ 73,426 $ 12,874 $ 7,211 $ 93,511

Ag Services and Oilseeds $ 350 $ 334 $ 349

Carbohydrate Solutions 304 307 322

Nutrition 132 120 101

Other Business 424

Total revenues

Cost of materials 65,751 8,729 4,608

Manufacturing costs 3,338 2,550 1,136

Selling, general, and administrative expenses

880 323 1,034

Other segment items (1)

( 610 ) ( 103 ) 6

Segment operating profit $ 4,067 $ 1,375 $ 427 $ 5,869

Reconciliation of segment operating profit

Other Business

Corporate ( 1,606 )

Total $ 825 $ 794 $ 807

Long-lived asset impairments (1)

Specified items:

Gains on sales of assets and businesses 17

Asset impairment, restructuring, and net settlement contingencies (2)

Earnings before income taxes $ 4,294

(1) Other segment items for each reportable segment include:

Ag Services and Oilseeds:

Equity in the earnings of affiliates;

interest and investment income;

and other income/expense.

Carbohydrate Solutions:

Nutrition 65 21 50

Total $ 108 $ 35 $ 73

Equity in the earnings of affiliates and other income/expense.

Equity in the earnings of affiliates;

interest and investment income;

Ag Services and Oilseeds $ 54 $ 52 $ 27

Nutrition ( 18 ) 2 1

Other 499 185 16

and other income/expense.

(2) These charges were related to the impairment of certain long-lived assets, goodwill, intangibles, and an equity investment, restructuring, and a contingency related to import duties, partially offset by settlement/contingency adjustments.

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ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Year Ended December 31, 2022

and Oilseeds Carbohydrate

Solutions Nutrition Total

Revenue from external customers

$ 79,563 $ 13,961 $ 7,636 $ 101,160

Other Business 396

Total revenues

Cost of materials 72,464 9,867 4,900

Manufacturing costs 3,135 2,522 1,075

Selling, general, and administrative expenses

839 338 1,040

Other segment items (1)

( 1,276 ) ( 179 ) ( 47 )

Segment operating profit $ 4,401 $ 1,413 $ 668 $ 6,482

Reconciliation of segment operating profit

Other Business

Corporate ( 1,316 )

Total $ 499 $ 293 $ 96

Equity in earnings of affiliates

Specified items:

Gains on sales of assets and businesses 47

Asset impairment, restructuring, and net settlement contingencies ( 147 )

Earnings before income taxes $ 5,233

(1) Other segment items for each reportable segment include:

Ag Services and Oilseeds:

Equity in the earnings of affiliates;

interest and investment income;

and other income/expense.

Carbohydrate Solutions:

Nutrition 21 23 24

Corporate ( 5 ) 1 1

Total $ 551 $ 832 $ 595

(1) See Note 18 for total asset impairment, exit, and restructuring costs.

Equity in the earnings of affiliates and other income/expense.

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ARCHER-DANIELS-MIDLAND COMPANY

Notes to Consolidated Financial Statements (Continued)

Segment and Geographic Information (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions) Year Ended December 31

2024 2023 2022

Segment Operating Profit

Intersegment revenue

Ag Services and Oilseeds $ 1,716 $ 2,108 $ 2,045

1 unchanged sentence

Nutrition 68 48 62

Other 375 167 25

Specified Items:

Gains on sales of assets and businesses (1)

Impairment, restructuring, and net settlement contingencies (2)

Total intersegment revenue

$ 2,673 $ 3,074 $ 3,075

Total segment operating profit 5,900 6,549 4,638

Corporate ( 1,606 ) ( 1,316 ) ( 1,325 )

Earnings before income taxes $ 4,294 $ 5,233 $ 3,313

(1) The gains in 2023 and 2022 were related to the sale of certain assets.

The gains in 2021 were related to the sale of ethanol and certain other assets.

(2) The charges in 2023 were related to the impairment of certain long-lived assets, goodwill, intangibles, and an equity investment, restructuring, and a contingency related to import duties, partially offset by settlement/contingency adjustments.

The charges in 2022 were related to the impairment of certain assets, restructuring, and settlement contingencies.

The charges in 2021 were related to the impairment of certain long-lived assets, goodwill, and other intangibles, restructuring, and a legal settlement.

(In millions) December 31

Investments in and advances to affiliates

Depreciation expense

Ag Services and Oilseeds $ 376 $ 350 $ 334

1 unchanged sentence

Nutrition 151 132 120

Total segment depreciation expense

Other Business

Corporate 34 29 24

Total $ 5,500 $ 5,467

Identifiable assets

Total depreciation expense

$ 875 $ 825 $ 794

Amortization expense

Ag Services and Oilseeds $ 14 $ 17 $ 17

1 unchanged sentence

Nutrition 158 136 139

Other 8,701 10,569

Total segment amortization expense

Corporate 88 73 69

Total $ 54,631 $ 59,774

(In millions) Year Ended December 31

Gross additions to property, plant, and equipment

Total amortization expense

$ 266 $ 234 $ 234

Interest and investment income

Ag Services and Oilseeds $ 84 $ 54 $ 52

Nutrition — ( 18 ) 2

Total segment interest and investment income

Other Business

Corporate 15 ( 36 ) 54

Total interest and investment income

$ 562 $ 499 $ 293

Equity in earnings of unconsolidated affiliates

Ag Services and Oilseeds $ 474 $ 459 $ 714

Carbohydrate Solutions 127 76 94

Nutrition 29 21 23

Total segment equity in earnings of unconsolidated affiliates

Corporate ( 9 ) ( 5 ) 1

Total $ 1,383 $ 1,211

Total equity in earnings of affiliates

$ 621 $ 551 $ 832

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ARCHER-DANIELS-MIDLAND COMPANY

Notes to Consolidated Financial Statements (Continued)

Segment and Geographic Information (Continued)

Geographic information:

The following geographic data include revenues attributed to the countries based on the location of the subsidiary making the sale and long-lived assets based on physical location.

Long-lived assets represent the net book value of property, plant, and equipment.

(In millions) December 31

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Geographic Information for the Company for Years ended December 31, 2024, 2023 and 2022

The following geographic data include revenues from external customers attributed to the countries based on the location of the subsidiary making the sale (in millions).

2024 2023 2022

8 unchanged sentences

$ 85,530 $ 93,935 $ 101,556

(In millions) December 31

Long-lived assets

Long-lived assets represent the net book value of property, plant, and equipment and right-of-use (ROU) assets based on physical location (in millions).

Property, plant, and equipment, net

United States $ 6,965 $ 6,660

1 unchanged sentence

Other Foreign 3,000 2,974

Total property, plant, and equipment, net

$ 10,837 $ 10,508

United States $ 1,063 $ 913

Other Foreign 295 298

Total ROU assets

$ 1,358 $ 1,211

Total long-lived assets

$ 12,195 $ 11,719

Tab le of Contents

ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Asset Impairment, Exit, and Restructuring Costs

The following table sets forth the charges included in asset impairment, exit, and restructuring costs.

(In millions) Year Ended December 31

The following table sets forth the charges included in asset impairment, exit, and restructuring costs (in millions).

Year Ended December 31

2024 2023 2022

4 unchanged sentences

Total asset impairment, exit, and restructuring costs $ 545 $ 342 $ 66

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Asset Impairment, Exit, and Restructuring Costs (Continued)

(1) Restructuring and exit costs for the year ended December 31, 2023 consisted of several individually insignificant restructuring charges totaling $ 27 million presented as specified items within segment operating profit and $ 6 million in Corporate.

Restructuring and exit costs for the year ended December 31, 2022 consisted of several individually insignificant restructuring charges totaling $ 28 million presented as specified items within segment operating profit and restructuring charges of $ 1 million in Corporate.

Restructuring and exit costs for the year ended December 31, 2021 consisted of several individually insignificant restructuring charges totaling $ 35 million presented as specified items within segment operating profit and $ 4 million in Corporate.

(2) Impairment charge - goodwill and other intangible assets for the year ended December 31, 2023 consisted of impairments related to goodwill of $ 137 million and customer list and discontinued animal nutrition trademarks totaling $ 64 million in Nutrition, presented as specified items within segment operating profit.

Impairment charge - goodwill and other intangible assets for the year ended December 31, 2022 consisted of customer list impairment of $ 2 million in Nutrition presented as specified items within segment operating profit.

Impairment charge - goodwill and other intangible assets for the year ended December 31, 2021 consisted of goodwill impairment of $ 5 million and land rights impairment of $ 42 million in Ag Services and Oilseeds, and goodwill impairment of $ 1 million and customer list impairment of $ 4 million in Nutrition, presented as specified items within segment operating profit.

(3) Impairment charge - other long-lived assets for the year ended December 31, 2023 consisted of impairments related to certain long-lived assets in Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition of $ 10 million, $ 33 million, and $ 65 million, respectively, presented as specified items within segment operating profit.

Impairment charge - other long-lived assets for the year ended December 31, 2022 consisted of impairments related to certain long-lived assets in Carbohydrate Solutions and Nutrition of $ 15 million and $ 20 million, respectively, presented as specified items within segment operating profit.

Impairment charge - other long-lived assets for the year ended December 31, 2021 consisted of impairments related to certain long-lived assets in Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition of $ 10 million, $ 13 million, and $ 50 million, respectively, presented as specified items within segment operating profit.

(1) The year ended December 31, 2024 includes restructuring charges of $ 23 million, within Corporate, presented as a specified item.

The year ended December 31, 2023 includes several individually insignificant restructuring charges totaling $ 27 million presented as specified items across the Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition segments, and $ 6 million within Corporate.

The year ended December 31, 2022 includes several individually insignificant restructuring charges totaling $ 28 million presented as specified items and restructuring charges of $ 1 million within Corporate.

(2) The year ended December 31, 2024 includes impairments of discontinued Animal Nutrition trademarks of $ 43 million, within the Nutrition segment, presented as specified items.

The year ended December 31, 2023 includes impairments related to goodwill of $ 137 million and customer list and discontinued Animal Nutrition trademarks totaling $ 64 million, within the Nutrition segment, presented as specified items.

The year ended December 31, 2022 includes customer list impairment of $ 2 million, within the Nutrition segment presented as specified items.

(3) The year ended December 31, 2024 includes $ 461 million impairment charge related to the Company’s investment in Wilmar, within the Ag Services and Oilseeds segment, presented as a specified item.

The year ended December 31, 2023 includes impairments related to certain long-lived assets of $ 10 million, $ 33 million, and $ 65 million, within the Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition segments, respectively, presented as specified items.

The year ended December 31, 2022 includes impairments related to certain long-lived assets of $ 15 million and $ 20 million, within the Carbohydrate Solutions and Nutrition segments, respectively, presented as specified items.

Sale of Accounts Receivable

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

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ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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.

The Company accounts for these transfers as sales.

The Company accounts for these transfers as sales of accounts receivable.

The Company acts as a servicer for the transferred receivables.

At December 31, 2024 and 2023, the Company did not record a servicing asset or liability related to its retained responsibility, based on its assessment of the servicing fee, market values for similar transactions, and its cost of servicing the receivables sold.

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Sale of Accounts Receivable (Continued)

As of December 31, 2023 and 2022, the fair value of trade receivables transferred to the Purchasers under the Programs and derecognized from the Company’s consolidated balance sheet was $ 1.6 billion and $ 2.6 billion, respectively.

As of December 31, 2024 and 2023, the fair value of trade receivables transferred to the Purchasers under the Programs and derecognized from the Company’s Consolidated Balance Sheets was $ 2.0 billion and $ 1.6 billion, respectively.

Total receivables sold were $ 46.9 billion, $ 54.8 billion, and $ 59.0 billion for the years ended December 31, 2024, 2023, and 2022, respectively.

Cash collections from customers on receivables sold were $ 47.0 billion, $ 53.6 billion, and $ 56.9 billion for the years ended December 31, 2024, 2023, and 2022, respectively.

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

Receivables pledged as collateral to the Purchasers were $ 0.7 billion and $ 1.1 billion as of December 31, 2024 and 2023, respectively.

Transfers of receivables under the Programs during the years ended December 31, 2023, 2022, and 2021 resulted in an expense for the loss on sale of $ 56 million, $ 21 million, and $ 11 million, respectively, which is classified as selling, general, and administrative expenses in the consolidated statements of earnings.

The Company reflects cash flows related to the Programs 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.

Transfers of receivables under the Programs resulted in an expense for the loss on sale of $ 95 million, $ 56 million, and $ 21 million, for the years ended December 31, 2024, 2023, and 2022, respectively, which is classified as selling, general, and administrative expenses in the Consolidated Statements of Earnings.

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 13 for information on income tax matters), and class actions.

Income Taxes for information on income tax matters), and class actions.

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

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

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.

7 unchanged sentences

or could result in a change in business practice.

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

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

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ARCHER-DANIELS-MIDLAND COMPANY

Notes to Consolidated Financial Statements (Continued)

Legal Proceedings (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Commodities Class Actions

11 unchanged sentences

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

On May 17, 2024, the court stayed MRE’s case pending a decision in UWGP’s appeal, described below.

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

4 unchanged sentences

GP appealed the dismissal.

As of December 31, 2023, the appeal was pending.

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 moved to dismiss.

On December 3, 2024, the court issued a decision on ADM’s motion to dismiss GP’s amended complaint, denying one ground for dismissal and certifying a question of law to the Nebraska Supreme Court before deciding the other ground.

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.

The Company is cooperating with the SEC.

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

The Company is cooperating with the DOJ.

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

Securities Litigation

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

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

The plaintiff alleges false and misleading statements in the Company’s disclosures.

Government Investigations

As previously disclosed, the Company is under investigation by the United States Securities and Exchange Commission (“SEC”) and the Department of Justice (“DOJ”) relating to, among other things, intersegment sales between the Company’s Nutrition reporting segment and the Company’s Ag Services and Oilseeds and Carbohydrate Solutions reporting segments.

The Company is continuing to cooperate with the SEC and DOJ investigations and is unable to predict the outcome of these investigations.

Shareholder Litigation

As previously disclosed, on January 24, 2024, following the Company’s announcement of an investigation relating to intersegment sales, a purported stockholder of the Company filed a putative securities fraud class action in the U.S.

District Court for the Northern District of Illinois against the Company and certain of its current and former officers.

Defendants filed motions to dismiss, which remain pending and are set for argument on March 6, 2025.

The Company intends to continue to vigorously defend against these claims.

However, given the uncertainty of litigation, the Company is unable to predict the final outcome of this proceeding with any reasonable degree of certainty, nor does it currently have sufficient information to estimate a reasonably possible loss or range of loss with respect to this matter.

Also as previously disclosed, beginning on March 29, 2024, purported stockholders of the Company filed a number of related derivative lawsuits against certain current and former officers and directors of the Company, seeking unspecified damages.

The derivative litigation is now consolidated in the U.S.

District Court for the District of Delaware.

Defendants filed a motion to dismiss the consolidated complaint, which remains pending.

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

Archer-Daniels-Midland Company

Notes to Consolidated Financial Statements (Continued)

Quarterly Financial Data (Unaudited)

Quarter Ended

March 31 June 30 September 30 December 31 Year

(In millions, except per share amounts)

Fiscal Year Ended December 31, 2023

Revenues $ 24,072 $ 25,190 $ 21,695 $ 22,978 $ 93,935

Gross Profit 2,080 1,883 1,810 1,740 7,513

Net Earnings Attributable to Controlling Interests 1,170 927 821 565 3,483

Basic Earnings Per Common Share 2.13 1.70 1.52 1.07 6.44

Diluted Earnings Per Common Share 2.12 1.70 1.52 1.06 6.43

Fiscal Year Ended December 31, 2022

Revenues $ 23,650 $ 27,284 $ 24,683 $ 25,939 $ 101,556

Gross Profit 1,897 2,100 1,811 1,762 7,570

Net Earnings Attributable to Controlling Interests 1,054 1,236 1,031 1,019 4,340

Basic Earnings Per Common Share 1.86 2.18 1.84 1.84 7.72

Diluted Earnings Per Common Share 1.86 2.18 1.83 1.84 7.71

Net earnings attributable to controlling interest for the second quarter of the year ended December 31, 2023 included after-tax gains of $ 8 million (equal to $ 0.02 per share) related to the sale of certain assets;

after-tax charges of $ 93 million (equal to $ 0.17 per share) related to the impairment of certain assets, restructuring, and a contingency loss provision related to import duties;

after-tax expenses of $ 2 million (equal to $ 0.00 per share) related to certain acquisitions;

an after-tax gain on debt conversion option of $ 1 million (equal to $ 0.00 per share) related to the mark-to-market adjustment of the conversion of the exchangeable bond issued in August 2020;

and a tax expense adjustment of $ 21 million (equal to $ 0.04 per share) related to certain discrete items.

Net earnings attributable to controlling interest for the third quarter of the year ended December 31, 2023 included after-tax losses of $ 2 million (equal to $ 0.00 per share) related to the sale of certain assets;

after-tax net charges of $ 54 million (equal to $ 0.10 per share) related to the impairment of certain assets and restructuring, partially offset by a contingency loss reversal;

and after-tax expenses of $ 3 million (equal to $ 0.01 per share) related to certain acquisitions.

Net earnings attributable to controlling interest for the fourth quarter of the year ended December 31, 2023 included after-tax gains of $ 5 million (equal to $ 0.00 per share) related to the sale of certain assets;

after-tax charges of $ 158 million (equal to $ 0.30 per share) related to the impairment of certain long-lived assets and goodwill and restructuring;

after-tax expenses of $ 1 million (equal to $ 0.00 per share) related to certain acquisitions;

and a tax expense adjustment of $ 1 million (equal to $ 0.00 per share) related to certain discrete items.

Net earnings attributable to controlling interest for the third quarter of the year ended December 31, 2022 included after-tax gains of $ 22 million (equal to $ 0.04 per share) related to the sale of certain assets;

after-tax charges of $ 40 million (equal to $ 0.07 per share) related to the impairment of certain assets, restructuring, and settlement contingencies;

an after-tax gain on debt conversion option of $ 8 million (equal to $ 0.01 per share) related to the mark-to-market adjustment of the conversion of the exchangeable bond issued in August 2020;

and a tax expense adjustment of $ 7 million (equal to $ 0.01 per share) related to certain discrete items.

Tab le of Contents

ARCHER-DANIELS-MIDLAND COMPANY

Notes to Consolidated Financial Statements (Continued)

Quarterly Financial Data (Unaudited) (Continued)

Net earnings attributable to controlling interest for the fourth quarter of the year ended December 31, 2022 included after-tax gains of $ 13 million (equal to $ 0.02 per share) related to the sale of certain assets;

after-tax charges of $ 55 million (equal to $ 0.10 per share) related to impairment of certain assets, restructuring, and settlement contingencies;

an after-tax loss on debt conversion option of $ 3 million (equal to $ 0.00 per share) related to the mark-to-market adjustment of the conversion of the exchangeable bond issued in August 2020;

and a tax expense adjustment of $ 5 million (equal to $ 0.01 per share) related to certain discrete items.

Subsequent Events

In January 2024, the Company acquired Revela Foods, a Wisconsin-based developer and manufacturer of innovative dairy flavor ingredients and solutions, for $ 656 million, subject to working capital adjustments, and UK-based FDL, a leading developer and producer of premium flavor and functional ingredient systems, for $ 232 million.

In February 2024, the Company acquired PT Trouw Nutrition Indonesia, a subsidiary of Nutreco and leading provider of functional and nutritional solutions for livestock farming in Indonesia, for $ 18 million, subject to working capital adjustments.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Subsequent Event

On January 31, 2025, the Company completed the acquisition of Vandamme Hugaria Kft, a 700 metric ton/day non-genetically modified crush and extraction facility based in Hungary, for an aggregate consideration of $ 123 million, subject to working capital adjustments.

Report of Independent Registered Public Accounting Firm

1 unchanged sentence

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Archer-Daniels-Midland Company (the Company) as of December 31, 2023 and 2022, the related consolidated statements of earnings, comprehensive income (loss), shareholders’ equity and cash flows for each of the three years in the period ended December 31, 2023, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) (collectively referred to as the “consolidated financial statements”).

We have audited the accompanying Consolidated Balance Sheets of Archer-Daniels-Midland Company (the Company) as of December 31, 2024 and 2023, the related Consolidated Statements of Earnings, Comprehensive Income (Loss), Shareholders’ Equity and Cash Flows for each of the three years in the period ended December 31, 2024, and the related notes (collectively referred to as the “Consolidated Financial Statements”).

In our opinion, the Consolidated Financial Statements present fairly, in all material respects, the financial position of the Company at December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with U.S.

generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated March 12, 2024 expressed an adverse opinion thereon.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 20, 2025 expressed an adverse opinion thereon.

Basis for Opinion

32 unchanged sentences

As discussed in Note 1 and Note 9 of the Consolidated Financial Statements, goodwill is tested at the reporting unit level for impairment at least annually on October 1, or when events or circumstances occur that would more likely than not reduce the fair value of a reporting unit below its carrying amount.

The Company uses an income and market approach in its quantitative impairment tests.

During 2023, the Company recorded an impairment charge of $137 million related to the Animal Nutrition reporting unit that represented the amount by which the carrying value of the reporting unit exceeded the fair value of the reporting unit at the impairment testing date.

The Company uses an income and market approach in its quantitative impairment tests and determined the fair value of the Animal Nutrition reporting unit exceeded its carrying value by 7% at the assessment date.

Auditing the Company’s Animal Nutrition goodwill impairment charge was complex and highly judgmental due to the significant estimation required in determining the fair value of the reporting unit.

9 unchanged sentences

Saint Louis, Missouri

March 12, 2024

February 20, 2025

Report of Independent Registered Public Accounting Firm

5 unchanged sentences

The following material weakness has been identified and included in management’s assessment.

Management has identified a material weakness related to the Company’s accounting practices and procedures for intersegment transactions between the Nutrition segment and the Ag Services and Oilseeds and Carbohydrate Solutions segments.

The absence of adequate controls with respect to the reporting of intersegment sales impacted the accuracy of the Company’s segment disclosures and review controls over key inputs and assumptions utilized by the Company when performing the goodwill and long-lived asset impairment tests.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2023 and 2022, the related consolidated statements of earnings, comprehensive income (loss), shareholders’ equity and cash flows for each of the three years in the period ended December 31, 2023, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2).

This material weakness was considered in determining the nature, timing and extent of audit tests applied in our audit of the 2023 consolidated financial statements, and this report does not affect our report dated March 12, 2024, which expressed an unqualified opinion thereon.

Management has identified a material weakness related to the Company’s accounting practices and procedures for segment disclosures.

Appropriate controls were not in place for the reporting of intersegment sales and for the application of disclosure requirements within ASC 280, Segment Reporting .

The absence of adequate controls with respect to the reporting of intersegment sales impacted the completeness and accuracy of the Company’s segment disclosures and review controls over key inputs and assumptions utilized by the Company when performing the goodwill and long-lived asset impairment tests.

As indicated in the accompanying Management’s Report on Internal Control over Financial Reporting, management’s assessment of and conclusion on the effectiveness of internal control over financial reporting did not include the internal controls of Revela Foods, LLC (Revela), Fuerst Day Lawson Ltd.

(FDL), PT Trouw Nutrition Indonesia (PT) and Totally Natural Solutions Ltd.

(TNS), which are included in the 2024 consolidated financial statements of the Company and constituted 1.0% of total assets, after excluding goodwill and intangibles assets recorded, as of December 31, 2024, and 0.4% and 1.1% of revenues and net earnings attributable to controlling interests, respectively, for the year then ended.

Our audit of internal control over financial reporting of the Company also did not include an evaluation of the internal control over financial reporting of Revela, FDL, PT, and TNS.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Consolidated Balance Sheets of the Company as of December 31, 2024 and 2023, the related Consolidated Statements of Earnings, Comprehensive Income (Loss), Shareholders’ Equity and Cash Flows for each of the three years in the period ended December 31, 2024, and the related notes.

This material weakness was considered in determining the nature, timing and extent of audit tests applied in our audit of the 2024 Consolidated Financial Statements, and this report does not affect our report dated February 20, 2025, which expressed an unqualified opinion thereon.

Basis for Opinion

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Saint Louis, Missouri

March 12, 2024

February 20, 2025

ARCHER-DANIELS-MIDLAND COMPANY

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

An evaluation was performed under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and interim Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”), as of December 31, 2023.

Based on that evaluation, the Company’s Chief Executive Officer and interim Chief Financial Officer concluded that the Company’s disclosure controls and procedures were not effective as of December 31, 2023 and 2022, due to the material weakness described below.

Management’s Report on Internal Control Over Financial Reporting

The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f).

The Company’s internal control system is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with generally accepted accounting principles.

Under the supervision and with the participation of management, including the Company’s Chief Executive Officer and interim Chief Financial Officer, the Company’s management assessed the design and operating effectiveness of the Company’s internal control over financial reporting as of December 31, 2023, based on the framework set forth in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework).

Based on this assessment, management concluded that the Company’s internal control over financial reporting was not effective as of December 31, 2023 and 2022, due to the material weakness described below.

A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of a company’s annual or interim financial statements will not be prevented or detected on a timely basis.

Because the control deficiency described below could have resulted in a material misstatement of its annual or interim financial statements, the Company determined that this deficiency constitutes a material weakness.

During the fourth quarter of 2023, in connection with the Investigation, the Company identified a material weakness in its internal control over financial reporting related to the Company’s accounting practices and procedures for intersegment sales.

The material weakness resulted from inadequate controls that allowed for certain intersegment sales to be reported at amounts that were not in accordance with ASC 606, Revenue from Contracts with Customers .

Specifically, the Company did not have adequate controls in place around measurement of certain intersegment sales between the Nutrition reporting segment and the Ag Services and Oilseeds and Carbohydrate Solutions reporting segments.

The absence of adequate controls with respect to the reporting of intersegment sales impacted the accuracy of the Company’s segment disclosures and review controls over projected financial information utilized in goodwill and other long-lived asset impairment tests.

Notwithstanding such material weakness in internal control over financial reporting, the Company’s Chief Executive Officer and interim Chief Financial Officer have concluded that the Company’s Consolidated Financial Statements included in this Annual Report on Form 10-K present fairly, in all material respects, the Company’s financial position, results of operations, and cash flows for the periods presented in conformity with GAAP.

Ernst & Young LLP, an independent registered public accounting firm, has issued an attestation report on the Company’s internal control over financial reporting as of December 31, 2023.

That report is included herein.

Chairman, Chief Executive Officer, and President /s/ Ismael Roig

Senior Vice President and Interim Chief Financial Officer

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-K

Item 8. Financial Statements and Supplementary Data