Archer-Daniels-Midland Co 10-K

Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Financial Statements Page No. Consolidated Statements of Earnings 51 Consolidated Statements of Comprehensive Income (Loss) 52 Consolidated Balance Sheets 53 Consolidated Statements of Cash Flows 54 Consolidated Statements of Shareholders’ Equity 55 Notes to Consolidated Financial Statements 56 Reports of Independent Registered Public Accounting Firm PCAOB ID: 42 108 50 Table of Contents ARCHER-DANIELS-MIDLAND COMPANY CONSOLIDATED STATEMENTS OF EARNINGS Year Ended December 31 2024 2023 2022 (In millions, except per share amounts) Revenues $ 85,530 $ 93,935 $ 101,556 Cost of products sold 79,752 86,422 93,986 Gross Profit 5,778 7,513 7,570 Selling, general, and administrative expenses 3,706 3,456 3,358 Asset impairment, exit, and restructuring costs 545 342 66 Equity in earnings of unconsolidated affiliates ( 621 ) ( 551 ) ( 832 ) Interest and investment income ( 562 ) ( 499 ) ( 293 ) Interest expense 706 647 396 Other (income) expense - net ( 251 ) ( 176 ) ( 358 ) Earnings Before Income Taxes 2,255 4,294 5,233 Income tax expense 476 828 868 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 Weighted average number of shares outstanding – basic 492 541 562 Weighted average number of shares outstanding – diluted 493 542 563 Basic earnings per common share $ 3.66 $ 6.44 $ 7.72 Diluted earnings per common share $ 3.65 $ 6.43 $ 7.71 The accompanying notes are an integral part of these Consolidated Financial Statements. 51 Table of Contents ARCHER-DANIELS-MIDLAND COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Year Ended December 31 2024 2023 2022 (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 ) Tax effect ( 45 ) 32 ( 93 ) Net of tax amount ( 460 ) 80 ( 394 ) Pension and other postretirement benefit liabilities adjustment 15 ( 88 ) 140 Tax effect ( 7 ) 2 ( 15 ) Net of tax amount 8 ( 86 ) 125 Deferred gain (loss) on hedging activities ( 41 ) 15 ( 84 ) Tax effect 9 ( 5 ) 7 Net of tax amount ( 32 ) 10 ( 77 ) Unrealized gain (loss) on investments ( 16 ) 16 ( 12 ) Tax effect ( 1 ) ( 1 ) 1 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 non-controlling interests ( 21 ) ( 20 ) 5 Comprehensive income (loss) attributable to controlling interests $ 1,299 $ 3,505 $ 4,003 The accompanying notes are an integral part of these Consolidated Financial Statements. 52 Table of Contents ARCHER-DANIELS-MIDLAND COMPANY CONSOLIDATED BALANCE SHEETS December 31, 2024 December 31, 2023 (In millions) Assets Current Assets Cash and cash equivalents $ 611 $ 1,368 Short-term marketable securities 246 — Segregated cash and investments 7,212 7,228 Trade receivables - net 3,708 4,232 Inventories 11,572 11,957 Other current assets 4,369 4,982 Total Current Assets 27,718 29,767 Investments and Other Assets Investments in and advances to affiliates 5,276 5,500 Goodwill and other intangible assets 6,769 6,341 Right-of-use assets 1,358 1,211 Other assets 1,313 1,304 Total Investments and Other Assets 14,716 14,356 Property, Plant, and Equipment, net Land and land improvements 566 573 Buildings 6,143 5,876 Machinery and equipment 20,636 20,223 Construction in progress 1,553 1,360 28,898 28,032 Accumulated depreciation ( 18,061 ) ( 17,524 ) Net Property, Plant, and Equipment 10,837 10,508 Total Assets $ 53,271 $ 54,631 Liabilities, Temporary Equity, and Shareholders’ Equity Current Liabilities Short-term debt $ 1,903 $ 105 Trade payables 5,535 6,313 Payables to brokerage customers 7,772 7,867 Current lease liabilities 324 300 Accrued expenses and other payables 3,730 4,076 Current maturities of long-term debt 674 1 Total Current Liabilities 19,938 18,662 Long-Term Liabilities Long-term debt 7,580 8,259 Deferred income taxes 1,268 1,309 Non-current lease liabilities 1,057 931 Other 997 1,005 Total Long-Term Liabilities 10,902 11,504 Commitments and contingencies (See Note 20) Temporary Equity - Redeemable non-controlling interest 253 320 Shareholders’ Equity Common stock 3,223 3,154 Reinvested earnings 21,933 23,465 Accumulated other comprehensive income (loss) ( 2,988 ) ( 2,487 ) Non-controlling interests 10 13 Total Shareholders’ Equity 22,178 24,145 Total Liabilities, Temporary Equity, and Shareholders’ Equity $ 53,271 $ 54,631 The accompanying notes are an integral part of these Consolidated Financial Statements. 53 Table of Contents ARCHER-DANIELS-MIDLAND COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) Year Ended December 31 2024 2023 2022 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 Impairment of goodwill, intangibles, long-lived assets, and investments 519 309 37 Deferred income taxes ( 130 ) ( 23 ) ( 89 ) Equity in earnings of affiliates, net of dividends ( 180 ) ( 143 ) ( 457 ) Stock compensation expense 74 112 147 Deferred cash flow hedges ( 40 ) 15 ( 84 ) (Gain) loss on sales of assets and businesses/investment revaluation ( 12 ) 38 ( 115 ) Other – net 131 ( 106 ) 178 Changes in operating assets and liabilities, net of acquisitions and dispositions Segregated investments ( 693 ) ( 194 ) ( 1,512 ) Trade receivables 447 737 ( 1,682 ) Inventories 162 2,889 ( 295 ) Other current assets 665 694 ( 279 ) Trade payables ( 719 ) ( 1,544 ) 1,389 Payables to brokerage customers ( 78 ) ( 2,059 ) 891 Accrued expenses and other payables ( 276 ) ( 790 ) ( 44 ) 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, businesses and investments 66 60 131 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 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 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 ( 8 ) — — Other – net ( 36 ) ( 102 ) 8 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 ) — 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 Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents to the Consolidated Balance Sheets Cash and cash equivalents $ 611 $ 1,368 $ 1,037 Restricted cash and restricted cash equivalents included in segregated cash and investments 3,313 4,022 5,996 Total cash, cash equivalents, restricted cash, and restricted cash equivalents $ 3,924 $ 5,390 $ 7,033 Cash paid for interest and income taxes were as follows: Interest $ 710 $ 711 $ 409 Income taxes $ 658 $ 742 $ 708 The accompanying notes are an integral part of these Consolidated Financial Statements. 54 Table of Contents ARCHER-DANIELS-MIDLAND COMPANY CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY Accumulated Other Non-controlling Total 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 Net earnings 4,340 25 4,365 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 Stock option exercises, net of taxes 1 4 4 Other — 2 — ( 3 ) ( 1 ) Balance, December 31, 2022 547 $ 3,147 $ 23,646 $ ( 2,509 ) $ 33 $ 24,317 Net earnings 3,483 ( 17 ) 3,466 Other comprehensive income (loss), net of tax 22 ( 3 ) 19 Cash dividends paid-$ 1.80 per share ( 977 ) ( 977 ) Share repurchases ( 36 ) ( 2,697 ) ( 2,697 ) Stock compensation expense 3 112 112 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 Net earnings 1,800 1,800 Other comprehensive income (loss), net of tax ( 501 ) — ( 501 ) Cash dividends paid-$ 2.00 per share ( 985 ) ( 985 ) Share repurchases ( 37 ) ( 2,347 ) ( 2,347 ) Stock compensation expense 2 74 74 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 The accompanying notes are an integral part of these Consolidated Financial Statements. 55 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1. Summary of Significant Accounting Policies 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. See Note 17. 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 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. For VIEs, the Company assesses whether it is the primary beneficiary as defined under the applicable accounting standard. Investments in affiliates, including VIEs through which the Company exercises significant influence but does not control the investee and is not the primary beneficiary of the investee’s activities, are carried at cost plus equity in undistributed earnings since acquisition and are adjusted, where appropriate, for basis differences between the investment balance and the underlying net assets of the investee. The Company’s portion of the results of certain affiliates and results of certain VIEs are included using the most recent available financial statements. In each case, the financial statements are within 93 days of the Company’s year-end and are consistent from period to period. Use of Estimates The preparation of Consolidated Financial Statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect amounts reported in its Consolidated Financial Statements and accompanying notes. Actual results could differ from those estimates. Cash Equivalents The Company considers all non-segregated, highly-liquid investments with a maturity of three months or less at the time of purchase to be cash equivalents. Segregated Cash and Investments The Company segregates certain cash, cash equivalents, and investment balances in accordance with regulatory requirements, commodity exchange requirements, and insurance arrangements. These balances represent deposits received from customers of the Company’s registered futures commission merchant and commodity brokerage services, cash margins and securities pledged to commodity exchange clearinghouses, and cash pledged as security under certain insurance arrangements. 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 restricted cash equivalents on the statement of cash flows. 56 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY 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. See Note 4. 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. See Note 2. 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. 57 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Receivables The Company records accounts receivable at net realizable value. This value includes an allowance for estimated uncollectible accounts to reflect any loss anticipated on the accounts receivable balances including any accrued interest receivables thereon. The Company estimates uncollectible accounts by pooling receivables according to type, region, credit risk rating, and age. Each pool is assigned an expected loss co-efficient to arrive at a general reserve based on historical write-offs adjusted, as needed, for regional, economic, and other forward-looking factors. The Company minimizes credit risk due to the large and diversified nature of its worldwide customer base. ADM manages its exposure to counter-party credit risk through credit analysis and approvals, credit limits, and monitoring procedures. Long-term receivables recorded in other assets were not material to the Company’s overall receivables portfolio. 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 2024 2023 Opening balance, January 1 $ 215 $ 199 Provisions (reversals), net ( 16 ) 6 Recoveries 9 2 Write-offs against allowance ( 32 ) ( 28 ) Other ( 9 ) 36 Closing balance, December 31 $ 167 $ 215 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. Inventories 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, 2024 and 2023 (in millions). December 31, 2024 December 31, 2023 Raw materials and supplies (1) $ 1,922 $ 1,944 Finished goods 2,689 3,026 Market inventories 6,961 6,987 Total inventories $ 11,572 $ 11,957 (1) Includes work in process inventories which were not material as of December 31, 2024 and 2023. Fair Value Measurements 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. 58 Tab le of Contents 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: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable inputs, including Level 1 prices that have been adjusted; quoted prices for similar assets or liabilities; quoted prices in markets that are less active than traded exchanges; and other inputs that are observable or can be substantially corroborated by observable market data. Level 3: 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. In many cases, a valuation technique used to measure fair value includes inputs from multiple levels of the fair value hierarchy. The lowest level of input that is a significant component of the fair value measurement determines the placement of the entire fair value measurement in the hierarchy. 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. 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 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. Derivatives 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, within revenue or cost of products sold, as appropriate. 59 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 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, fair value hedge or a net investment hedge. 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 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. 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. See Note 8. 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 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, 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 Property, plant, and equipment are recorded at cost. Repair and maintenance costs are expensed as incurred. The Company uses the straight-line method in computing depreciation for financial reporting purposes and generally uses accelerated methods for income tax purposes. The annual provisions for depreciation have been computed principally in accordance with the following ranges of asset lives: buildings - 15 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. 60 Tab le of Contents 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). Leases 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. Income Taxes The Company accounts for income taxes in accordance with the liability method. Deferred tax assets and liabilities are recorded for temporary differences between the tax basis of assets and liabilities and reported amounts in the Consolidated Financial Statements using statutory rates in effect for the year in which the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recorded in the results of operations in the period that includes the enactment date under the law. Applicable accounting standards prescribe a minimum threshold a tax position is required to meet before being recognized in the Consolidated Financial Statements. The Company recognizes in its Consolidated Financial Statements tax positions determined more likely than not to be sustained upon examination, based on the technical merits of the position. The Company classifies interest on income tax-related balances as interest expense and classifies tax-related penalties as selling, general, and administrative expenses. Income tax effects from AOCI are released when the individual units of account are sold, terminated, or extinguished. Goodwill and Other Intangible Assets Goodwill and other intangible assets deemed to have indefinite lives are not amortized but are subject to annual impairment tests. Definite-lived intangible assets, including capitalized expenses related to the Company’s 1ADM program such as third-party configuration costs and internal labor, are amortized over their estimated useful lives of 1 to 50 years and are reviewed for impairment whenever there are indicators the carrying value of the assets may not be fully recoverable. 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. See Note 9. Goodwill and Other Intangible Assets for further information. 61 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY 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, 2024 2023 Opening balance, January 1 $ 274 $ 196 Obligations confirmed 948 1,100 Obligations paid ( 1,000 ) ( 1,022 ) Closing balance, December 31 $ 222 $ 274 Payables to Brokerage Customers Payables to brokerage customers represent the total of customer accounts at the Company’s futures commission merchant with credit or positive balances. Customer accounts are used primarily in connection with commodity transactions and include gains and losses on open commodity trades as well as securities and other deposits made for margins or other purposes as required by the Company or the exchange-clearing organizations or counterparties. Payables to brokerage customers have a corresponding balance in segregated cash and investments and customer omnibus receivable in other current assets. 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 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 Costs associated with research and development are expensed as incurred and recorded within selling, general, and administrative expenses. 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. 62 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY 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 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 The Company’s acquisitions are accounted for in accordance with ASC Topic 805, Business Combinations, as amended . The consideration transferred is allocated to various assets acquired and liabilities assumed at their estimated fair values as of the acquisition date with the residual allocated to goodwill. Fair values allocated to assets acquired and liabilities assumed in business combinations require management to make significant judgments, estimates, and assumptions, especially with respect to intangible assets. Management makes estimates of fair values based upon assumptions it believes to be reasonable. These estimates are based upon historical experience and information obtained from the management of the acquired companies and are inherently uncertain. The estimated fair values related to intangible assets primarily consist of customer relationships, trademarks, and developed technology which are determined primarily using discounted cash flow models. Estimates in the discounted cash flow models include, but are not limited to, certain assumptions that form the basis of the forecasted results (e.g. revenue growth rates, customer attrition rates, and royalty rates). These significant assumptions are forward looking and could be affected by future economic and market conditions. During the measurement period, which may take up to one year from the acquisition date, adjustments due to changes in the estimated fair value of assets acquired and liabilities assumed may be recorded as adjustments to the consideration transferred and the related allocations. 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 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, 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 ( 28 ) 27 19 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. 63 Tab le of Contents 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 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 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. 64 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 2. Revenues 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 Topic 606 Revenue Topic 815 (1) Total Point in Time Over Time Total Revenue Revenues Ag Services and Oilseeds Ag Services 3,779 $ 923 $ 4,702 $ 39,381 $ 44,083 Crushing 462 — 462 11,374 11,836 Refined Products and Other 2,447 — 2,447 8,150 10,597 Total Ag Services and Oilseeds 6,688 923 7,611 58,905 66,516 Carbohydrate Solutions Starches and Sweeteners 6,335 — 6,335 2,252 8,587 Vantage Corn Processors 2,647 — 2,647 — 2,647 Total Carbohydrate Solutions 8,982 — 8,982 2,252 11,234 Nutrition Human Nutrition 3,944 — 3,944 — 3,944 Animal Nutrition 3,405 — 3,405 — 3,405 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 65 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Year Ended December 31, 2023 Topic 606 Revenue Topic 815 (1) Total Point in Time Over Time Total Revenue Revenues Ag Services and Oilseeds Ag Services $ 4,110 $ 761 $ 4,871 $ 42,549 $ 47,420 Crushing 470 — 470 13,550 14,020 Refined Products and Other 2,295 — 2,295 9,691 11,986 Total Ag Services and Oilseeds 6,875 761 7,636 65,790 73,426 Carbohydrate Solutions Starches and Sweeteners 7,431 — 7,431 2,454 9,885 Vantage Corn Processors 2,989 — 2,989 — 2,989 Total Carbohydrate Solutions 10,420 — 10,420 2,454 12,874 Nutrition Human Nutrition 3,634 — 3,634 — 3,634 Animal Nutrition 3,577 — 3,577 — 3,577 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 Total Revenues $ 24,930 $ 761 $ 25,691 $ 68,244 $ 93,935 Year Ended December 31, 2022 Topic 606 Revenue Topic 815 (1) Total Point in Time Over Time Total Revenue Revenues Ag Services and Oilseeds Ag Services $ 4,053 $ 818 $ 4,871 $ 48,310 $ 53,181 Crushing 573 — 573 12,566 13,139 Refined Products and Other 2,724 — 2,724 10,519 13,243 Total Ag Services and Oilseeds 7,350 818 8,168 71,395 79,563 Carbohydrate Solutions Starches and Sweeteners 7,696 — 7,696 2,555 10,251 Vantage Corn Processors 3,710 — 3,710 — 3,710 Total Carbohydrate Solutions 11,406 — 11,406 2,555 13,961 Nutrition Human Nutrition 3,769 — 3,769 — 3,769 Animal Nutrition 3,867 — 3,867 — 3,867 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 Total Revenues $ 26,788 $ 818 $ 27,606 $ 73,950 $ 101,556 (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. 66 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY 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. The Company engages in various structured trade finance activities to leverage its global trade flows whereby the Company obtains letters of credit (LCs) to guarantee payments on both global purchases and sales of grain. LCs guaranteeing payment on grain sales are sold on a non-recourse basis with no continuing involvement. The Company earns returns from the difference in interest rates between the LCs that guarantee payment on the underlying purchases and sales of grain given the differing risk profiles of the underlying transactions. The net return related to structured trade finance activities is included in revenue and was not significant for the years ended December 31, 2024, 2023, and 2022. Carbohydrate Solutions The Carbohydrate Solutions segment generates revenue from the sale of products manufactured at the Company’s global corn and wheat milling facilities around the world. Revenue is recognized when control over products is transferred to the customer. Products are shipped to customers from the Company’s various facilities and from its network of storage terminals. 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. Nutrition 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. Other Business Other Business includes the Company’s futures commission business whose primary sources of revenue are commissions and brokerage income generated from executing orders and clearing futures contracts and options on futures contracts on behalf of its customers. Commissions and brokerage revenue are recognized on the date the transaction is executed. Other Business also includes the Company’s captive insurance business which generates third party revenue through its proportionate share of premiums from third-party reinsurance pools. Reinsurance premiums are recognized on a straight-line basis over the period underlying the policy. 67 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 3. Acquisitions 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 Goodwill 409 136 3 9 557 Other intangible assets 166 93 — 10 269 Other long-term assets 28 10 — — 38 Long-term liabilities ( 42 ) ( 41 ) — — ( 83 ) 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. 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 FDL TNS Total (In years) (In millions) Intangible assets with finite lives: Customer lists 10 to 18 $ 124 $ 73 $ 8 $ 205 Recipes and others 10 to 21 42 20 2 64 Total other intangible assets acquired $ 166 $ 93 $ 10 $ 269 68 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 4. 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, 2024 and 2023 (in millions). Fair Value Measurements at December 31, 2024 Level 1 Level 2 Level 3 Total Assets: Inventories carried at market $ — $ 3,930 $ 3,031 $ 6,961 Unrealized derivative gains: Commodity contracts — 404 427 831 Foreign exchange contracts — 272 — 272 Interest rate contracts — 5 — 5 Cash equivalents 70 — — 70 Marketable securities 246 — — 246 Segregated investments 1,681 — — 1,681 Total Assets $ 1,997 $ 4,611 $ 3,458 $ 10,066 Liabilities: Unrealized derivative losses: Commodity contracts $ — $ 355 $ 405 $ 760 Foreign exchange contracts — 212 — 212 Inventory-related payables — 654 88 742 Total Liabilities $ — $ 1,221 $ 493 $ 1,714 Fair Value Measurements at December 31, 2023 Level 1 Level 2 Level 3 Total Assets: Inventories carried at market $ — $ 4,274 $ 2,713 $ 6,987 Unrealized derivative gains: Commodity contracts — 628 731 1,359 Foreign currency contracts — 187 — 187 Cash equivalents 209 — — 209 Segregated investments 1,362 — — 1,362 Total Assets $ 1,571 $ 5,089 $ 3,444 $ 10,104 Liabilities: Unrealized derivative losses: Commodity contracts $ — $ 500 $ 457 $ 957 Foreign currency contracts — 144 — 144 Inventory-related payables — 1,219 101 1,320 Total Liabilities $ — $ 1,863 $ 558 $ 2,421 69 Tab le of Contents 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. Market valuations for the Company’s inventories are adjusted for location and quality (basis) because the exchange-quoted prices represent contracts that have standardized terms for commodity, quantity, future delivery period, delivery location, and commodity quality or grade. The basis adjustments are generally determined using inputs from competitor and broker quotations or market transactions and are considered observable. Basis adjustments are impacted by specific local supply and demand characteristics at each facility and the overall market. Factors such as substitute products, weather, fuel costs, contract terms, and futures prices also impact the movement of these basis adjustments. In some cases, the basis adjustments are unobservable because they are supported by little to no market activity. When unobservable inputs have a significant impact (more than 10%) on the measurement of fair value, the inventory is classified in Level 3. 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. 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. Market valuations for the Company’s forward commodity purchase and sale contracts are adjusted for location (basis) because the exchange-quoted prices represent contracts that have standardized terms for commodity, quantity, future delivery period, delivery location, and commodity quality or grade. The basis adjustments are generally determined using inputs from competitor and broker quotations or market transactions and are considered observable. Basis adjustments are impacted by specific local supply and demand characteristics at each facility and the overall market. Factors such as substitute products, weather, fuel costs, contract terms, and futures prices also impact the movement of these basis adjustments. In some cases, the basis adjustments are unobservable because they are supported by little to no market activity. When observable inputs are available for substantially the full term of the contract, it is classified in Level 2. When unobservable inputs have a significant impact (more than 10%) on the measurement of fair value, the contract is classified in Level 3. Except for certain derivatives designated as cash flow hedges, changes in the fair value of commodity-related derivatives are recognized in the Consolidated Statements of Earnings as a component of cost of products sold. 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 upon the purpose of the contract. 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. 70 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Segregated Investments The Company’s segregated investments are comprised of U.S. Treasury securities. U.S. Treasury securities are valued using quoted market prices and are classified as Level 1. 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, 2024 and 2023 (in millions). Level 3 Fair Value Assets Measurements at December 31, 2024 Inventories Carried at Market Commodity Derivative Contracts Gains Total 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 Purchases 16,296 — 16,296 Sales ( 16,609 ) — ( 16,609 ) Settlements — ( 1,369 ) ( 1,369 ) Transfers into Level 3 1,416 241 1,657 Transfers out of Level 3 ( 1,431 ) ( 186 ) ( 1,617 ) Closing balance, December 31, 2024 (1) $ 3,031 $ 427 $ 3,458 (1) Includes increase in unrealized gains of $ 1.7 billion relating to Level 3 assets still held at December 31, 2024. Level 3 Fair Value Liabilities Measurements at December 31, 2024 Inventory- related Payables Commodity Derivative Contracts Losses Total 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 ) Transfers into Level 3 1 68 69 Transfers out of Level 3 — ( 102 ) ( 102 ) 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. 71 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Level 3 Fair Value Assets Measurements at December 31, 2023 Inventories Carried at Market Commodity Derivative Contracts Gains Total 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 Purchases 29,929 — 29,929 Sales ( 30,038 ) — ( 30,038 ) Settlements ( 4 ) ( 1,559 ) ( 1,563 ) Transfers into Level 3 1,584 371 1,955 Transfers out of Level 3 ( 1,950 ) ( 82 ) ( 2,032 ) Closing balance, December 31, 2023 (1) $ 2,713 $ 731 $ 3,444 (1) Includes increase in unrealized gains of $ 2.1 billion relating to Level 3 assets still held at December 31, 2023. Level 3 Fair Value Liabilities Measurements at December 31, 2023 Inventory- related Payables Commodity Derivative Contracts Losses Debt Conversion Option Total 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 Settlements ( 35 ) ( 1,583 ) — ( 1,618 ) Transfers into Level 3 1 157 — 158 Transfers out of Level 3 ( 8 ) ( 23 ) — ( 31 ) Closing balance, December 31, 2023 (1) $ 101 $ 457 $ — $ 558 (1) Includes increase in unrealized losses of $ 1.3 billion relating to Level 3 liabilities still held at December 31, 2023. Transfers into Level 3 of assets and liabilities previously classified in Level 2 were due to the relative value of unobservable inputs to the total fair value measurement of certain products and derivative contracts rising above the 10% threshold. Transfers out of Level 3 were primarily due to the relative value of unobservable inputs to the total fair value measurement of certain products and derivative contracts falling below the 10% threshold and thus permitting reclassification to Level 2. In some cases, the price components that result in differences between exchange-traded prices and local prices for inventories and commodity purchase and sale contracts are observable based upon available quotations for these pricing components, and in some cases, the differences are unobservable. These price components primarily include transportation costs and other adjustments required due to location, quality, or other contract terms. In the table below, these other adjustments are referred to as basis. 72 Tab le of Contents 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, 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 December 31, 2024 December 31, 2023 Component Type Assets Liabilities Assets Liabilities Inventories and Related Payables Basis 24.9 % 31.3 % 25.0 % 33.2 % Transportation cost 10.8 % — % 11.5 % — % Commodity Derivative Contracts Basis 21.8 % 23.4 % 24.2 % 24.9 % Transportation cost 10.8 % 10.8 % 9.3 % 3.2 % In certain of the Company’s principal markets, the Company relies on price quotes from third parties to value its inventories and physical commodity purchase and sale contracts. These price quotes are generally not further adjusted by the Company in determining the applicable market price. In some cases, availability of third-party quotes is limited to only one or two independent sources. In these situations, absent other corroborating evidence, the Company considers these price quotes as 100% unobservable and, therefore, the fair value of these items is reported in Level 3. Note 5. Derivative Instruments & Hedging Activities Derivatives Not Designated as Hedging Instruments The majority of the Company’s derivative instruments have not been designated as hedging instruments. The Company uses exchange-traded futures and exchange-traded and OTC options contracts to manage its net position of merchandisable agricultural product inventories and forward cash purchase and sales contracts to reduce price risk caused by market fluctuations in agricultural commodities and foreign currencies. The Company also uses exchange-traded futures and exchange-traded and OTC options contracts as components of merchandising strategies designed to enhance margins. The results of these strategies can be significantly impacted by factors such as the correlation between the value of exchange-traded commodities futures contracts and the value of the underlying commodities, counterparty contract defaults, and volatility of freight markets. Derivatives, including exchange traded contracts and forward commodity purchase or sale contracts, and inventories of certain merchandisable agricultural products, which include amounts acquired under deferred pricing contracts, are stated at fair value or market value. Inventory is not a derivative and therefore fair values of and changes in fair values of inventories are not included in the tables below. The following table sets forth the fair value of derivatives not designated as hedging instruments as of December 31, 2024 and 2023 (in millions). December 31, 2024 December 31, 2023 Assets Liabilities Assets Liabilities Foreign Currency Contracts $ 272 $ 102 $ 187 $ 122 Commodity Contracts 828 760 1,343 957 Total $ 1,100 $ 862 $ 1,530 $ 1,079 73 Tab le of Contents 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 Revenues sold Expense Total For the Year Ended December 31, 2024 Pre-tax gains (losses) on: Foreign Currency Contracts $ 29 $ ( 388 ) $ — $ 142 Commodity Contracts — 391 — — Total gain (loss) recognized in earnings $ 29 $ 3 $ — $ 142 $ 174 For the Year Ended December 31, 2023 Pre-tax gains (losses) on: Foreign Currency Contracts $ ( 33 ) $ 322 $ — $ 43 Commodity Contracts — 619 — — Debt Conversion Option — — 6 — Total gain (loss) recognized in earnings $ ( 33 ) $ 941 $ 6 $ 43 $ 957 For the Year Ended December 31, 2022 Pre-tax gains (losses) on: Foreign Currency Contracts $ ( 42 ) $ 367 $ — $ 194 Commodity Contracts — ( 120 ) — — Debt Conversion Option — — 9 — Total gain (loss) recognized in earnings $ ( 42 ) $ 247 $ 9 $ 194 $ 408 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 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 Statements of Earnings during the relevant period. 74 Tab le of Contents 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. The changes in the market value of such derivative contracts have historically been, and are expected to continue to be, highly effective at offsetting changes in price movements of the hedged item. Once the hedged item is recognized in earnings, the gains and losses arising from the hedge are reclassified from AOCI to either revenues or cost of products sold, as applicable. The Company uses futures or options contracts to hedge the purchase price of anticipated volumes of corn to be purchased and processed in a future month. The objective of this hedging program is to reduce the variability of cash flows associated with the Company’s forecasted purchases of corn. The Company’s corn processing plants normally grind approximately 59 million bushels per month. During the past 12 months, the Company hedged between 12 % and 31 % of its monthly grind. 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 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. soybean crush facilities, subject to certain program limits. The Company also uses futures or options contracts to hedge the sales prices of anticipated soybean meal and soybean oil sales proportionate to the soybean crushing process at these facilities, subject to certain program limits. During the past 12 months, the Company hedged between 76 % and 100 % of the anticipated monthly soybean crush for soybean purchases and soybean meal and oil sales at the designated facilities. At December 31, 2024, the Company had designated hedges representing between 5 % and 100 % of the anticipated monthly soybean crush for soybean purchases and soybean meal and oil sales at the designated facilities over the next 12 months. The Company uses futures and OTC swaps to hedge the purchase price of anticipated volumes of natural gas consumption in a future month for certain of its facilities in North America and Europe, subject to certain program limits. During the past 12 months, the Company hedged between 41 % and 74 % of the anticipated monthly natural gas consumption at the designated facilities. 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. 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 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, 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. 75 Tab le of Contents 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 Commodity Contracts $ 3 $ — $ 16 $ — Interest Rate Contracts 5 — — — Foreign Currency Contracts — 110 — 22 Total $ 8 $ 110 $ 16 $ 22 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 For the Year Ended December 31, 2024 Pre-tax gains (losses) on: Commodity Contracts $ ( 77 ) For the Year Ended December 31, 2023 Pre-tax gains (losses) on: Commodity Contracts $ 322 For the Year Ended December 31, 2022 Pre-tax gains (losses) on: Commodity Contracts $ 351 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. 76 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 6. Other Current Assets The following table sets forth the items in other current assets (in millions): December 31, 2024 December 31, 2023 Unrealized gains on derivative contracts $ 1,108 $ 1,546 Margin deposits and grain accounts 516 560 Customer omnibus receivable 872 1,052 Financing receivables - net (1) 258 237 Insurance premiums receivable 76 61 Prepaid expenses 279 445 Biodiesel tax credit 104 119 Tax receivables 539 491 Non-trade receivables 393 304 Other current assets 224 167 $ 4,369 $ 4,982 (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. Note 7. 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 Unrealized losses on derivative contracts $ 972 $ 1,101 Accrued compensation 346 439 Income tax payable 167 284 Other taxes payable 138 172 Accrued interest payable 153 142 Insurance liabilities 172 117 Contract liabilities (1) 534 626 Other deferred income 156 150 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. 77 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 8. Investments in and Advances to Affiliates 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 %), 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. de C.V. ( 45.3 %), ADM Matsutani LLC ( 50 %), Matsutani Singapore Pte. Ltd. ( 50 %), ADM Vland Biotech Shandong Co., Ltd. ( 50 %), Dusial S.A. ( 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 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). December 31, 2024 2023 Current assets $ 33,065 $ 41,032 Non-current assets 28,962 29,773 Current liabilities ( 27,357 ) ( 33,812 ) Non-current liabilities ( 8,772 ) ( 8,973 ) Non-controlling interests ( 2,499 ) ( 2,489 ) Net assets $ 23,399 $ 25,531 78 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Year Ended December 31 2024 2023 2022 Revenues $ 77,251 $ 85,754 $ 109,448 Gross profit 3,673 4,261 8,946 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. 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. Note 9. Goodwill and Other Intangible Assets Goodwill 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 Other Business Total Balance at December 31, 2022 $ 193 $ 224 $ 3,731 $ 14 $ 4,162 Acquisitions 20 — — — 20 Impairments — — ( 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. 79 Tab le of Contents 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. 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 the projected cash flows. 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 Useful Gross Accumulated Gross Accumulated Life Amount Amortization Net Amount Amortization Net (In years) (In millions) Intangible assets with indefinite lives: Trademarks/brands $ 290 $ — $ 290 $ 375 $ — $ 375 Other — — — 58 — 58 Intangible assets with definite lives: Trademarks/brands 5 to 20 86 ( 42 ) 44 53 ( 35 ) 18 Customer lists 1 to 30 1,687 ( 708 ) 979 1,544 ( 627 ) 917 Capitalized software and related costs 5 to 8 964 ( 612 ) 352 950 ( 523 ) 427 Land rights 20 to 65 89 ( 27 ) 62 107 ( 30 ) 77 Other intellectual property 5 to 20 187 ( 142 ) 45 211 ( 135 ) 76 Recipes and other 1 to 35 620 ( 339 ) 281 511 ( 304 ) 207 Intangible assets in process 207 — 207 83 — 83 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, 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. 80 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY 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. Note 10. Debt Financing Arrangements 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 1.000 % Notes € 650 million 2025 $ 672 $ 717 2.500 % Notes $ 1 billion 2026 999 998 7.500 % Debentures $ 147 million 2027 147 147 6.750 % Debentures $ 103 million 2027 103 103 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 6.450 % Debentures $ 103 million 2038 103 102 5.765 % Debentures $ 297 million 2041 297 297 4.535 % Debentures $ 383 million 2042 291 288 4.016 % Debentures $ 371 million 2043 266 263 3.750 % Notes $ 408 million 2047 403 403 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 Total long-term debt including current maturities 8,254 8,260 Current maturities ( 674 ) ( 1 ) Total long-term debt $ 7,580 $ 8,259 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, 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 was in compliance with these covenants as of December 31, 2024. 81 Tab le of Contents 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): Amount 2025 $ 675 2026 1,007 2027 265 2028 1 2029 145 Thereafter 6,428 Total estimated future maturities $ 8,521 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, 2024, the Company utilized $ 2.0 billion of its facility under the Programs. See Note 19. 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. Note 11. 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. These options are issued at market value on the date of grant, vest incrementally over one year to five years , and expire ten years after the date of grant. The fair value of each option grant is estimated as of the date of grant using the Black-Scholes single option pricing model. The volatility assumption used in the Black-Scholes single option pricing model is based on the historical volatility of the Company’s stock. The volatility of the Company’s stock was calculated based upon the monthly closing price of the Company’s stock for the period immediately prior to the date of grant corresponding to the average expected life of the grant. The average expected life represents the period of time that option grants are expected to be outstanding. The risk-free rate is based on the rate of U.S. Treasury zero-coupon issues with a remaining term equal to the expected life of option grants. No options were granted in 2024, 2023, and 2022. 82 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY 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 Shares under option at December 31, 2023 1,614 $ 37.11 Exercised ( 567 ) 44.38 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, 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, 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 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, 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 2024 is presented below (in thousands, except per share amounts): Restricted Stock Awards and PSUs Weighted Average Grant-Date Fair Value Per Share Non-vested at January 1, 2024 5,332 $ 69.82 Granted 2,635 55.16 Vested ( 2,396 ) 58.70 Forfeited ( 286 ) 67.19 Non-vested at December 31, 2024 5,285 $ 68.77 83 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY 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 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. Note 12. Other (Income) Expense – Net 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 ) Other – net ( 224 ) ( 138 ) ( 280 ) $ ( 251 ) $ ( 176 ) $ ( 358 ) 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. 84 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 13. Income Taxes The following table sets forth the geographic split of earnings before income taxes (in millions). Year Ended December 31 2024 2023 2022 United States $ 656 $ 1,844 $ 2,725 Foreign 1,599 2,450 2,508 Total Earnings Before Income Taxes $ 2,255 $ 4,294 $ 5,233 Significant components of income tax expense are as follows (in millions): Year Ended December 31 2024 2023 2022 Current expense Federal $ 108 $ 291 $ 379 State 8 47 97 Foreign 490 513 481 $ 606 $ 851 $ 957 Deferred expense (benefit) Federal ( 99 ) ( 52 ) 23 State 6 ( 10 ) 7 Foreign ( 37 ) 39 ( 119 ) $ ( 130 ) $ ( 23 ) $ ( 89 ) Income tax expense $ 476 $ 828 $ 868 85 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Significant components of deferred tax liabilities and assets are as follows (in millions): December 31, 2024 December 31, 2023 Deferred tax liabilities Property, plant, and equipment $ 808 $ 827 Intangibles 343 358 Right of use assets 317 263 Equity in earnings of affiliates 236 214 Debt exchange 49 50 Reserves and other accruals 133 49 Other 30 137 $ 1,916 $ 1,898 Deferred tax assets Pension and postretirement benefits $ 95 $ 111 Inventories 12 20 Lease liabilities 323 268 Stock compensation 36 42 Foreign tax loss carryforwards 386 494 Capital loss carryforwards 41 42 State tax attributes 23 25 US carryforwards 196 27 Other 111 71 Gross deferred tax assets 1,223 1,100 Valuation allowances ( 223 ) ( 216 ) Net deferred tax assets $ 1,000 $ 884 Net deferred tax liabilities $ 916 $ 1,014 The net deferred tax liabilities are classified as follows: Noncurrent assets $ 352 $ 295 Noncurrent liabilities ( 1,268 ) ( 1,309 ) $ ( 916 ) $ ( 1,014 ) 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. 86 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY 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 Additions 40 58 18 Deductions ( 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 US Federal Statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit 0.2 0.9 1.4 Foreign earnings taxed at rates other than the U.S. statutory rate 2.2 ( 0.3 ) ( 3.8 ) Foreign currency effects/remeasurement ( 4.8 ) 0.5 0.6 Withholding Tax 1.8 0.1 — Impairment of Investments 4.3 0.5 — Change in Uncertain Tax Position 3.2 0.1 0.5 Tax benefit on U.S. biodiesel credits ( 2.9 ) ( 1.7 ) ( 1.2 ) Second-generation biofuel credit ( 1.2 ) — — U.S. railroad credits ( 2.5 ) ( 1.5 ) ( 1.2 ) U.S. tax on foreign earnings 0.6 1.2 0.2 Other ( 0.8 ) ( 1.5 ) ( 0.9 ) Effective income tax rate 21.1 % 19.3 % 16.6 % 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 Europe, Asia, South America and the Caribbean. 87 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. Legislative Changes On August 16, 2022, 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. 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, 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 $ 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. The Company has recorded and will continue to record the impact of tax reform items as U.S. tax authorities issue Treasury Regulations and other guidance addressing tax reform-related changes. 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. Unrecognized Tax Benefits The following table sets forth a rollforward of activity of unrecognized tax benefits for the year ended December 31, 2024 and 2023 (in millions). December 31, 2024 2023 Opening balance, January 1 $ 168 $ 151 Net additions related to current year’s tax positions 12 2 Net additions related to prior years’ tax positions 57 28 Additions (adjustments) related to acquisitions 2 — Reductions related to lapse of statute of limitations ( 6 ) ( 6 ) Settlements with tax authorities ( 48 ) ( 7 ) Ending balance, December 31 $ 185 $ 168 The additions and reductions in unrecognized tax benefits shown in the table included effects related to net income and shareholders’ equity. The changes in unrecognized tax benefits did not have a material effect on the Company’s net income or cash flow. At December 31, 2024 and 2023, the Company had accrued interest and penalties on unrecognized tax benefits of $ 59 million and $ 52 million, respectively. 88 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY 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. These challenges include positions taken by the Company related to the timing, nature, and amount of deductions and the allocation of income among various jurisdictions. In its routine evaluations of the exposure associated with various tax filing positions, the Company recognizes a liability, when necessary, for estimated potential tax owed by the Company in accordance with applicable accounting standards. Resolution of the related tax positions, through negotiations with relevant tax authorities or through litigation, may take years to complete. Therefore, it is difficult to predict the timing for resolution of tax positions and the Company cannot predict or provide assurance as to the ultimate outcome of these ongoing or future examinations. However, the Company does not anticipate that the total amount of unrecognized tax benefits will increase or decrease significantly in the next twelve months. Given the long periods of time involved in resolving tax positions, the Company does not expect that the recognition of unrecognized tax benefits will have a material impact on the Company’s effective income tax rate in any given period. 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. 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. Note 14. Leases 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 Lease cost: Operating lease cost $ 410 $ 390 $ 356 Short-term lease cost 135 126 127 Total lease cost $ 545 $ 516 $ 483 Other information: Operating lease liability principal payments (1) $ 397 $ 374 $ 339 Right-of-use assets obtained in exchange for new operating lease liabilities $ 437 $ 327 $ 357 December 31 2024 2023 Weighted-average remaining lease term - operating leases (in years) 7 7 Weighted average discount rate - operating leases 4.5 % 4.1 % (1) Operating lease payments are presented as operating activities within the Consolidated Statements of Cash Flows. 89 Tab le of Contents 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): Undiscounted Cash Flows 2025 $ 377 2026 284 2027 231 2028 180 2029 122 Thereafter 442 Total undiscounted minimum lease payments 1,636 Less: Interest (1) ( 255 ) 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. Note 15. Employee Benefit Plans The Company provides substantially all U.S. employees and employees at certain foreign subsidiaries with retirement benefits including defined benefit pension plans and defined contribution plans. The Company also provides certain eligible U.S. employees who retire under qualifying conditions with subsidized postretirement health care coverage or Health Care Reimbursement Accounts. The Company maintains 401(k) plans covering substantially all U.S. employees. The Company contributes cash to the plans to match qualifying employee contributions, and also provides a non-matching employer contribution of 1 % of pay to eligible participants. Under an employee stock ownership component of the 401(k) plans, employees may choose to invest in the Company’s stock as part of their own investment elections. Assets of the Company’s 401(k) plans consist primarily of listed common stocks and pooled funds. The Company’s 401(k) plans held 5.6 million shares of Company common stock at December 31, 2024, with a market value of $ 282 million. Cash dividends received on shares of Company common stock by these plans during the year ended December 31, 2024 were $ 11 million. 90 Tab le of Contents 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 Year Ended December 31 Year Ended December 31 2024 2023 2022 2024 2023 2022 Retirement plan expense Defined benefit plans: Service cost (benefits earned during the period) $ 46 $ 41 $ 48 $ — $ — $ 1 Interest cost 79 76 48 5 6 3 Expected return on plan assets ( 89 ) ( 83 ) ( 79 ) — — — Settlement charges 2 — — — — — Curtailments — — ( 2 ) — — — Amortization of actuarial loss 5 3 17 3 2 5 Amortization of prior service cost (credit) ( 20 ) ( 20 ) ( 20 ) — — — Net periodic defined benefit plan expense 23 17 12 8 8 9 Defined contribution plans 76 73 67 — — — 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 ) 91 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY 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 December 31 2024 December 31 2023 December 31 2024 December 31 2023 Change in benefit obligations: Benefit obligation, beginning $ 1,765 $ 1,587 $ 113 $ 118 Service cost 46 41 — — Interest cost 79 76 5 6 Actuarial loss (gain) ( 111 ) 83 ( 3 ) 6 Employee contributions 4 3 — — Benefits paid ( 62 ) ( 53 ) ( 14 ) ( 17 ) 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 $ — $ — Actual return on plan assets 7 121 — — Employer contributions 26 54 14 17 Employee contributions 4 3 — — Benefits paid ( 62 ) ( 53 ) ( 14 ) ( 17 ) Foreign currency effects and Other ( 39 ) 21 — — Fair value of plan assets, ending $ 1,351 $ 1,415 $ — $ — Funded status $ ( 322 ) $ ( 350 ) $ ( 102 ) $ ( 113 ) 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. and the U.K. The Company uses the corridor approach when amortizing actuarial losses. Under the corridor approach, net unrecognized actuarial losses in excess of 10% of the greater of the projected benefit obligation or the market related value of plan assets are amortized over future periods. For plans with little to no active participants, the amortization period is the remaining average life expectancy of the participants. For plans with active participants, the amortization period is the remaining average service period of the active participants. The amortization periods range from 4 to 27 years for the Company’s defined benefit pension plans and from 5 to 18 years for the Company’s postretirement benefit plans. Included in AOCI for pension benefits at December 31, 2024, are the following amounts that have not yet been recognized in net periodic pension cost: unrecognized prior service credit of $ 30 million and unrecognized actuarial loss of $ 235 million. 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. 92 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The following table sets forth the principal assumptions used in developing net periodic benefit cost: Pension Benefits Postretirement Benefits December 31 2024 December 31 2023 December 31 2024 December 31 2023 Discount rate 4.5 % 4.8 % 4.9 % 5.1 % Expected return on plan assets 6.0 % 6.0 % N/A N/A Rate of compensation increase 4.8 % 4.3 % N/A N/A Interest crediting rate 4.0 % 3.9 % N/A N/A The following table sets forth the principal assumptions used in developing the year-end actuarial present value of the projected benefit obligations: Pension Benefits Postretirement Benefits December 31 2024 December 31 2023 December 31 2024 December 31 2023 Discount rate 5.0 % 4.5 % 5.5 % 4.9 % Rate of compensation increase 4.8 % 4.8 % N/A N/A Interest crediting rate 4.6 % 4.0 % N/A N/A 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. 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. The rate was assumed to decrease gradually to 4.5 % by 2034 and remain at that level thereafter. Plan Assets The Company’s employee benefit plan assets are principally comprised of the following types of investments: Common Stock: Equity securities are valued based on quoted exchange prices and are classified within Level 1 of the valuation hierarchy. Mutual Funds: 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. Common Collective Trust (CCT) Funds: The fair values of the CCTs are valued using net asset value (NAV). The investments in CCTs are comprised of U.S. and international equity, fixed income, and other securities. The investments are valued at NAV provided by administrators of the funds. Corporate Debt Instruments: Corporate debt instruments are valued using third-party pricing services and are classified within Level 2 of the valuation hierarchy. U.S. Treasury Instruments: U.S. 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. 93 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. Government Agency, State, and Local Government Bonds: U.S. government agency obligations and state and municipal debt securities are valued using third-party pricing services and are classified within Level 2 of the valuation hierarchy. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. 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, 2024 and 2023 (in millions). Fair Value Measurements at December 31, 2024 Level 1 Level 2 Level 3 Total Common stock $ 36 $ — $ — $ 36 Mutual funds 154 — — 154 Corporate bonds — 517 — 517 U.S. Treasury instruments 161 — — 161 U.S. government agency, state and local government bonds — 4 — 4 Other 13 18 — 31 Total assets $ 364 $ 539 $ — $ 903 Common collective trust funds at NAV U.S. equity 30 International equity 67 Fixed income 298 Other 53 Total assets at fair value $ 1,351 Fair Value Measurements at December 31, 2023 Level 1 Level 2 Level 3 Total Common stock $ 37 $ — $ — $ 37 Mutual funds 147 — — 147 Corporate bonds — 473 — 473 U.S. Treasury instruments 262 — — 262 U.S. government agency, state and local government bonds — 8 — 8 Other — 7 — 7 Total assets $ 446 $ 488 $ — $ 934 Common collective trust funds at NAV U.S. equity 15 International equity 60 Fixed income 330 Other 76 Total assets at fair value $ 1,415 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. 94 Tab le of Contents 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. December 31 2024 (1)(2) December 31 2023 (2) Equity securities 21 % 19 % Debt securities 68 % 77 % Other 11 % 4 % Total 100 % 100 % (1) The Company’s U.S. pension plans contain approximately 68 % of the Company’s global pension plan assets. The actual asset allocation for the Company’s U.S. 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. pension plans is approximately the same as the actual asset allocation. The actual asset allocation for the Company’s foreign pension plans as of the measurement date consists of 18 % equity securities, 56 % debt securities, and 26 % other. The target asset allocation for the Company’s foreign pension plans is approximately the same as the actual asset allocation. (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. Investment objectives for the Company’s plan assets are to: – Optimize the long-term return on plan assets in consideration of funded status risk. – Maintain a broad diversification of assets and appropriate risk exposure across asset classes. – Maintain careful control of the risk level within each asset class. Asset allocation targets promote optimal expected return and volatility characteristics given the long-term time horizon for fulfilling the obligations of the pension plans. Selection of the targeted asset allocation for plan assets was based upon a review of the expected return and risk characteristics of each asset class, as well as the correlation of returns among asset classes. The U.S. pension plans target asset allocation is also based on an asset and liability study that is updated periodically. Investment guidelines are established with each investment manager. These guidelines provide the parameters within which the investment managers agree to operate, including criteria that determine eligible and ineligible securities, diversification requirements, and credit quality standards, where applicable. In some countries, derivatives may be used to gain market exposure in an efficient and timely manner; however, derivatives may not be used to leverage the portfolio beyond the market value of underlying investments. The Company uses external consultants to assist in monitoring the investment strategy and asset mix for the Company’s plan assets. To develop the Company’s expected long-term rate of return assumption on plan assets, the Company generally uses long-term historical return information for the targeted asset mix identified in asset and liability studies. 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. 95 Tab le of Contents 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 (in millions): Pension Benefits Postretirement Benefits 2025 $ 76 $ 13 2026 83 12 2027 89 11 2028 96 10 2029 102 10 2030-2034 590 39 Note 16. Shareholders’ Equity The Company has authorized one billion shares of common stock and 500,000 shares of preferred stock, each with zero par value. No preferred stock has been issued. 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 $ 4.8 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. 96 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY 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). Foreign Currency Translation Adjustments Deferred Gain (Loss) on Hedging Activities Pension and Other Postretirement Benefit Liabilities Unrealized Gain (Loss) on Investments Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2021 $ ( 2,248 ) $ 225 $ ( 147 ) $ ( 2 ) $ ( 2,172 ) 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 ) Amounts reclassified from AOCI — ( 322 ) ( 42 ) — ( 364 ) Tax effect 32 ( 5 ) 2 ( 1 ) 28 Net of tax amount 83 10 ( 86 ) 15 22 Balance at December 31, 2023 ( 2,539 ) 158 ( 108 ) 2 ( 2,487 ) Other comprehensive income (loss) before reclassifications ( 607 ) ( 118 ) ( 27 ) ( 16 ) ( 768 ) Gain (loss) on net investment hedges 192 — — 192 Amounts reclassified from AOCI — 77 42 — 119 Tax effect ( 45 ) 9 ( 7 ) ( 1 ) ( 44 ) Net of tax amount ( 460 ) ( 32 ) 8 ( 17 ) ( 501 ) Balance at December 31, 2024 $ ( 2,999 ) $ 126 $ ( 100 ) $ ( 15 ) $ ( 2,988 ) Amounts reclassified from AOCI 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 $ — $ — $ ( 1 ) Revenues 77 ( 322 ) ( 351 ) Cost of products sold 77 ( 322 ) ( 352 ) Earnings before income taxes ( 20 ) 77 62 Income tax expense $ 57 $ ( 245 ) $ ( 290 ) Net earnings 97 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 17. Segment and Geographic Information The Company’s operations are organized, managed, and classified into three reportable business segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition. 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 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. Oilseeds products produced and marketed by the segment include ingredients for food, feed, energy, and industrial customers. Crude vegetable oils produced by the segment’s crushing activities are sold “as is” to manufacturers of renewable green diesel and other customers or are further processed by refining, blending, bleaching, and deodorizing into salad oils. Salad oils are sold “as is” or are further processed by hydrogenating and/or interesterifying into margarine, shortening, and other food products. Partially refined oils are used to produce biodiesel and glycols or are sold to other manufacturers for use in chemicals, paints, and other industrial products. Oilseed protein meals are principally sold to third parties to be used as ingredients in commercial livestock and poultry feeds. The Ag Services and Oilseeds segment is also a major supplier of peanuts and peanut-derived ingredients to both the U.S. and export markets. In North America, cotton cellulose pulp is manufactured and sold to the chemical, paper, and other industrial markets. The Ag Services and Oilseeds segment’s grain sourcing, handling, and transportation network (including barge, ocean-going vessel, truck, rail, and container freight services) provides reliable and efficient services to the Company’s customers and agricultural processing operations. The Ag Services and Oilseeds segment also includes agricultural commodity and feed product import, export, and global distribution, and structured trade finance activities. 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, 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. The Carbohydrate Solutions segment converts corn and wheat into products and ingredients used in the food and beverage industry including sweeteners, corn and wheat starches, syrup, glucose, wheat flour, and dextrose. Dextrose and starch are used by the Carbohydrate Solutions segment as feedstocks in other downstream processes. By fermentation of dextrose, the Carbohydrate Solutions segment produces alcohol and other food and animal feed ingredients. Ethyl alcohol is produced by the Company for industrial use in products such as hand sanitizers and ethanol for use in gasoline due to its ability to increase octane as an extender and oxygenate. Corn gluten feed and meal, as well as distillers’ grains, are produced for use as animal feed ingredients. Corn germ, a by-product of the wet milling process, is further processed into vegetable oil and protein meal. Other Carbohydrate Solutions products include citric acids which are used in various food and industrial products. The Carbohydrate Solutions segment is a leader in carbon capture and sequestration. 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. 98 Tab le of Contents 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. de C.V., ADM Matsutani LLC, Matsutani Singapore Pte. Ltd., ADM Vland Biotech Shandong Co., Ltd., Dusial S.A., and Vitafort ZRT. 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. 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 Ag Services and Oilseeds Carbohydrate Solutions Nutrition Total Revenue from external customers $ 66,516 $ 11,234 $ 7,349 $ 85,099 Other Business 431 Total revenues $ 85,530 Less: 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 247 Corporate ( 1,721 ) Specified items: Gains on sales of assets and businesses 10 Asset impairment, restructuring, and net settlement contingencies (2) ( 490 ) Earnings before income taxes $ 2,255 (1) Other segment items for each reportable segment include: Ag Services and Oilseeds: Equity in the earnings of affiliates; interest and investment income, interest expense; and other income/expense. Carbohydrate Solutions: Equity in the earnings of affiliates and other income/expense. Nutrition: 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. 99 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Year Ended December 31, 2023 Ag Services and Oilseeds Carbohydrate Solutions Nutrition Total Revenue from external customers $ 73,426 $ 12,874 $ 7,211 $ 93,511 Other Business 424 Total revenues $ 93,935 Less: 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 375 Corporate ( 1,606 ) Specified items: Gains on sales of assets and businesses 17 Asset impairment, restructuring, and net settlement contingencies (2) ( 361 ) 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: Equity in the earnings of affiliates and other income/expense. Nutrition: Equity in the earnings of affiliates; interest and investment income; 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. 100 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Year Ended December 31, 2022 Ag Services and Oilseeds Carbohydrate Solutions Nutrition Total Revenue from external customers $ 79,563 $ 13,961 $ 7,636 $ 101,160 Other Business 396 Total revenues $ 101,556 Less: 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 167 Corporate ( 1,316 ) 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: Equity in the earnings of affiliates and other income/expense. Nutrition: Equity in the earnings of affiliates and other income/expense. 101 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (In millions) Year Ended December 31 2024 2023 2022 Intersegment revenue Ag Services and Oilseeds $ 1,716 $ 2,108 $ 2,045 Carbohydrate Solutions 889 918 968 Nutrition 68 48 62 Total intersegment revenue $ 2,673 $ 3,074 $ 3,075 Depreciation expense Ag Services and Oilseeds $ 376 $ 350 $ 334 Carbohydrate Solutions 305 304 307 Nutrition 151 132 120 Total segment depreciation expense 832 786 761 Other Business 9 10 9 Corporate 34 29 24 Total depreciation expense $ 875 $ 825 $ 794 Amortization expense Ag Services and Oilseeds $ 14 $ 17 $ 17 Carbohydrate Solutions 6 8 9 Nutrition 158 136 139 Total segment amortization expense 178 161 165 Corporate 88 73 69 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 84 36 54 Other Business 463 499 185 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 630 556 831 Corporate ( 9 ) ( 5 ) 1 Total equity in earnings of affiliates $ 621 $ 551 $ 832 102 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY 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). Year Ended December 31 2024 2023 2022 Revenues United States $ 33,550 $ 38,783 $ 43,272 Switzerland 19,877 19,898 21,821 Cayman Islands 5,603 7,646 5,883 Brazil 3,353 3,361 4,004 Mexico 3,209 3,185 3,709 Canada 2,055 2,400 2,272 United Kingdom 2,186 2,219 2,231 Other Foreign 15,697 16,443 18,364 $ 85,530 $ 93,935 $ 101,556 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). December 31 2024 2023 Property, plant, and equipment, net United States $ 6,965 $ 6,660 Brazil 872 874 Other Foreign 3,000 2,974 Total property, plant, and equipment, net $ 10,837 $ 10,508 ROU assets United States $ 1,063 $ 913 Other Foreign 295 298 Total ROU assets $ 1,358 $ 1,211 Total long-lived assets $ 12,195 $ 11,719 103 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 18. 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 2024 2023 2022 Restructuring and exit costs (1) $ 26 $ 33 $ 29 Impairment charge - goodwill and other intangible assets (2) 43 201 2 Impairment charge - other long-lived assets (3) 476 108 35 Total asset impairment, exit, and restructuring costs $ 545 $ 342 $ 66 (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. Note 19. Sale of Accounts Receivable The Company has an accounts receivable securitization program (the “First Program”) with certain commercial paper conduit purchasers and committed purchasers (collectively, the “First Purchasers”). Under the First Program, certain U.S.-originated trade accounts receivable are sold to a wholly-owned bankruptcy-remote entity, ADM Receivables, LLC (“ADM Receivables”). ADM Receivables transfers certain of the purchased accounts receivable to each of the First Purchasers together with a security interest in all of its right, title, and interest in the remaining purchased accounts receivable. In exchange, ADM Receivables receives a cash payment of up to $ 1.7 billion for the accounts receivable transferred. The First Program terminates on May 16, 2025, unless extended. The Company also has an accounts receivable securitization program (the “Second Program”) with certain commercial paper conduit purchasers and committed purchasers (collectively, the “Second Purchasers”). Under the Second Program, certain non-U.S.-originated trade accounts receivable are sold to a wholly-owned bankruptcy-remote entity, ADM Ireland Receivables Company ("ADM Ireland Receivables"). ADM Ireland Receivables transfers certain of the purchased accounts receivable to each of the Second Purchasers together with a security interest in all of its right, title, and interest in the remaining purchased accounts receivable. In exchange, ADM Ireland Receivables receives a cash payment of up to $ 1.1 billion (€ 1.1 billion) for the accounts receivables transferred. The Second Program terminates on April 18, 2025, unless extended. 104 Tab le of Contents 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 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. 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 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. Note 20. 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. 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 the Company’s complete control and may not be known for prolonged periods of time. In some actions, claimants seek damages, as well as other relief including injunctive relief, that could require significant expenditures or result in lost revenues. In accordance with applicable accounting standards, the Company records a liability in its Consolidated Financial Statements for material loss contingencies when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a material loss contingency is reasonably possible but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed in the notes to the Consolidated Financial Statements. When determining the estimated loss or range of loss, significant judgment is required to estimate the amount and timing of a loss to be recorded. Estimates of probable losses resulting from litigation and governmental proceedings involving the Company are inherently difficult to predict, particularly when the matters are in early procedural stages, with incomplete facts or legal discovery; involve unsubstantiated or indeterminate claims for damages; potentially involve penalties, fines, disgorgement, or punitive damages; or could result in a change in business practice. The Company’s estimated loss or range of loss with respect to loss contingencies may change from time to time, and it is reasonably possible the Company will incur actual losses in excess of the amounts currently accrued and such additional amounts may be material. While the Company continues to work with parties with respect to potential resolution, no assurance can be given that it will be successful in doing so and the Company cannot predict the outcome of these matters. 105 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Commodities Class Actions On September 4, 2019, AOT Holding AG (“AOT”) filed a putative class action under the U.S. Commodities Exchange Act in federal district court in Urbana, Illinois, alleging that the Company sought to manipulate the benchmark price used to price and settle ethanol derivatives traded on futures exchanges. On March 16, 2021, AOT filed an amended complaint adding a second named plaintiff Maize Capital Group, LLC (“Maize”). AOT and Maize allege that members of the putative class collectively suffered damages calculated to be between approximately $ 500 million to over $ 2.0 billion as a result of the Company’s alleged actions. On July 14, 2020, Green Plains Inc. and its related entities (“GP”) filed a putative class action lawsuit, alleging substantially the same operative facts, in federal court in Nebraska, seeking to represent sellers of ethanol. On July 23, 2020, Midwest Renewable Energy, LLC (“MRE”) filed a putative class action in federal court in Illinois alleging substantially the same operative facts and asserting claims under the Sherman Act. On November 11, 2020, United Wisconsin Grain Producers LLC (“UWGP”) and five other ethanol producers filed a lawsuit in federal court in Illinois alleging substantially the same facts and asserting claims under the Sherman Act and Illinois, Iowa, and Wisconsin law. The court granted ADM’s motion to dismiss the MRE and UWGP complaints without prejudice on August 9, 2021 and September 28, 2021, respectively. On August 16, 2021, the court granted ADM’s motion to dismiss the GP complaint, dismissing one claim with prejudice and declining jurisdiction over the remaining state law claim. MRE filed an amended complaint on August 30, 2021, which ADM moved to dismiss on September 27, 2021. The court denied ADM’s motion to dismiss on September 26, 2023. 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. UWGP has appealed the dismissal to the United States Court of Appeals for the Seventh Circuit. On October 26, 2021, GP filed a new complaint in Nebraska federal district court, alleging substantially the same facts and asserting a claim for tortious interference with contractual relations. On March 18, 2022, the Nebraska federal district court granted ADM’s motion to transfer the GP case back to the Central District of Illinois for further proceedings. ADM moved to dismiss the complaint on May 20, 2022 and on December 30, 2022, the court dismissed GP’s complaint with prejudice. GP appealed the dismissal. On January 12, 2024, the appellate court vacated the dismissal and remanded the case to the district court for further proceedings. On March 8, 2024, GP filed an amended complaint, which ADM 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. 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. 106 Tab le of Contents ARCHER-DANIELS-MIDLAND COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 21. 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. 107 Table of Contents Report of Independent Registered Public Accounting Firm To the Shareholders and the Board of Directors of Archer-Daniels-Midland Company Opinion on the 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, 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 These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matters The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the Consolidated Financial Statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. 108 Table of Contents Market or Fair Values of Certain Merchandisable Agricultural Commodity Inventories, Inventory-Related Payables, and Forward Commodity Purchase and Sales Contracts Description of the Matter As explained in Notes 1 and 4 to the Consolidated Financial Statements, certain merchandisable agricultural commodity inventory and inventory-related payables are stated at market or fair value. Forward commodity purchase and sales contracts that qualify as derivative contracts are also stated at market or fair value. The merchandisable agricultural commodity inventory, inventory-related payables, and forward commodity purchase and sales contracts are considered level 2 and 3 fair value instruments. As of December 31, 2024, the market or fair values for certain merchandisable agricultural commodity inventories, inventory-related payables, forward commodity contracts in an asset position, and forward commodity contracts in a liability position were $6,961 million, $742 million, $831 million, and $760 million, respectively. Auditing the estimated market or fair values for merchandisable agricultural commodity inventories, inventory-related payables, and forward commodity purchase and sale contracts is complex due to the judgment involved in determining market or fair value, specifically related to determining the estimated basis adjustments, which represent the adjustment made to exchange quoted prices to arrive at the market or fair values for certain merchandisable agricultural commodity inventories, inventory-related payables, and forward commodity purchase and sales contracts. The basis adjustments are generally determined using inputs from competitor or broker quotations or market transactions and are impacted by specific local supply and demand characteristics at each facility and the overall market. Factors such as substitute products, weather, fuel costs, contract terms, and futures prices also impact these basis adjustments. How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s determination of the estimated market or fair values for certain merchandisable agricultural commodity inventories, inventory-related payables, and forward commodity purchase and sale contracts. Our tests included controls over the estimation process supporting the basis adjustments. To test the estimated market or fair values of certain merchandisable agricultural commodity inventories, inventory-related payables, and forward commodity purchase and sale contracts, our audit procedures included, among others, evaluating (i) the Company’s selection of the principal market, (ii) the inputs for the basis adjustments, and (iii) the completeness and accuracy of the underlying data supporting the basis adjustments. For example, we evaluated management’s methodology for determining the basis adjustment including assessing the principal market identified and sources utilized by management to support the basis adjustment. Specifically, we compared the basis adjustments used by management to competitor and broker quotations, trade publications, and/or recently executed transactions. Further, we investigated, to the extent necessary, basis adjustments that were inconsistent with third party available information. Finally, we evaluated the adequacy of the Company’s financial statement disclosures related to the estimated market or fair values of certain merchandisable agricultural inventories, inventory-related payables, and forward commodity purchase and sale contracts. Animal Nutrition Goodwill Impairment Evaluation Description of the Matter At December 31, 2024, the Company’s total goodwill was $4.5 billion of which $0.9 billion was assigned to the Animal Nutrition reporting unit. Goodwill is assigned to the Company’s reporting units as of the acquisition date. 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 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. In particular, the fair value estimate using a weighted income and market approach was sensitive to significant assumptions such as revenue growth rates, projected EBITDA margins, and the discount rate. These significant assumptions are forward-looking and could be affected by future economic and market conditions and the performance of the Animal Nutrition reporting unit. 109 Table of Contents How We Addressed the Matter in Our Audit To test the estimated fair value used in the Company’s Animal Nutrition reporting unit goodwill impairment charge, we performed audit procedures that included, among others, assessing the methodologies used to determine the fair value of the reporting unit and testing the significant assumptions discussed above and the underlying data used by the Company in its analysis. As it pertains to revenue growth rates and projected EBITDA margins, we compared the significant assumptions used by management to historical results and current industry and economic trends, as applicable. We assessed the historical accuracy of management’s estimates. In addition, we involved our valuation specialists to assist with our evaluation of the methodology used by the Company to determine the fair value of reporting unit and testing of the significant assumptions used by management, including the discount rate. Specifically, we evaluated the components of the discount rate used by the Company with the involvement of our valuation specialists. /s/ Ernst & Young LLP We have served as the Company’s auditor since 1930. Saint Louis, Missouri February 20, 2025 110 Table of Contents Report of Independent Registered Public Accounting Firm To the Shareholders and the Board of Directors of Archer-Daniels-Midland Company Opinion on Internal Control over Financial Reporting We have audited Archer-Daniels-Midland 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) (the COSO criteria). In our opinion, because of the effect of the material weakness described below on the achievement of the objectives of the control criteria, Archer-Daniels-Midland Company (the Company) has not maintained effective internal control over financial reporting as of December 31, 2024, based on the COSO criteria. 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 the company’s annual or interim financial statements will not be prevented or detected on a timely basis. 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 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 The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. 111 Table of Contents Definition and Limitations of Internal Control Over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ Ernst & Young LLP Saint Louis, Missouri February 20, 2025 112 Table of Contents ARCHER-DANIELS-MIDLAND COMPANY PART II Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None.