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Revenues Revenues | 9 Months Ended
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Sep. 30, 2018
Revenues [Abstract] |
Revenues [Text Block] | Revenues Revenue Recognition The Company principally generates revenue from merchandising and transporting agricultural commodities and manufactured products used as ingredients in food, feed, energy, and industrial products. Revenue is measured based on the consideration specified in the contract with a customer, and excludes any sales incentives and amounts collected on behalf of third parties. The Company follows a policy of recognizing revenue at a single point in time when it satisfies its performance obligation by transferring control over a product or service to a customer. For transportation service contracts, the Company recognizes revenue over time as the barge, ocean-going vessel, truck, rail, or container freight moves towards its destination in accordance with the transfer of control guidance of Topic 606. For physically settled derivative sales contracts that are outside the scope of Topic 606, the Company recognizes revenue when control of the inventory is transferred within the meaning of Topic 606 as required by ASC 610-20, Gains and Losses from the Derecognition of Nonfinancial Assets (Topic 610-20). Shipping and Handling Costs Shipping and handling costs related to contracts with customers for 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. Transaction Price Allocated to Remaining Performance Obligations The Company generally recognizes revenue at a point in time with the exception of revenue from transportation services which is recognized over time. The majority of the Company’s contracts with customers have one performance obligation and a contract duration of one year or less. The Company applies the practical expedient in paragraph 10-50-14 of Topic 606 and does not disclose information about remaining performance obligations that have original expected durations of one year or less. Disaggregation of Revenues The following table presents revenue disaggregated by timing of recognition and major product lines for the three months ended September 30, 2018.
| Topic 606 Revenue | Topic 815(1) | Total
| Point in Time | Over Time | Total | Revenue | Revenues
| (In millions)
Origination |  |  |  |  |
Merchandising and Handling | $ | 396 |  | $ | 57 |  | $ | 453 |  | $ | 5,333 |  | $ | 5,786 |
Transportation | — |  | 64 |  | 64 |  | — |  | 64 |
Total Origination | 396 |  | 121 |  | 517 |  | 5,333 |  | 5,850 |
Oilseeds |  |  |  |  |
Crushing and Origination | 330 |  | — |  | 330 |  | 4,109 |  | 4,439 |
Refining, Packaging, Biodiesel, and Other | 593 |  | — |  | 593 |  | 1,378 |  | 1,971 |
Total Oilseeds | 923 |  | — |  | 923 |  | 5,487 |  | 6,410 |
Carbohydrate Solutions |  |  |  |  |
Starches and Sweeteners | 1,261 |  | — |  | 1,261 |  | 445 |  | 1,706 |
Bioproducts | 828 |  | — |  | 828 |  | — |  | 828 |
Total Carbohydrate Solutions | 2,089 |  | — |  | 2,089 |  | 445 |  | 2,534 |
Nutrition |  |  |  |  |
Wild Flavors and Specialty Ingredients | 641 |  | — |  | 641 |  | — |  | 641 |
Animal Nutrition | 281 |  | — |  | 281 |  | — |  | 281 |
Total Nutrition | 922 |  | — |  | 922 |  | — |  | 922 |
Other | 84 |  | — |  | 84 |  | — |  | 84 |
Total Revenues | $ | 4,414 |  | $ | 121 |  | $ | 4,535 |  | $ | 11,265 |  | $ | 15,800 |
(1) Topic 815 revenue relates to the physical delivery or the settlement of the Company’s sales contracts that are accounted for as derivatives and are outside the scope of Topic 606. The following table presents revenue disaggregated by timing of recognition and major product lines for the nine months ended September 30, 2018.
| Topic 606 Revenue | Topic 815(1) | Total
| Point in Time | Over Time | Total | Revenue | Revenues
| (In millions)
Origination |  |  |  |  |
Merchandising and Handling | $ | 1,542 |  | $ | 179 |  | $ | 1,721 |  | $ | 16,768 |  | $ | 18,489 |
Transportation | — |  | 182 |  | 182 |  | — |  | 182 |
Total Origination | 1,542 |  | 361 |  | 1,903 |  | 16,768 |  | 18,671 |
Oilseeds |  |  |  |  |
Crushing and Origination | 647 |  | — |  | 647 |  | 12,225 |  | 12,872 |
Refining, Packaging, Biodiesel, and Other | 1,787 |  | — |  | 1,787 |  | 4,101 |  | 5,888 |
Total Oilseeds | 2,434 |  | — |  | 2,434 |  | 16,326 |  | 18,760 |
Carbohydrate Solutions |  |  |  |  |
Starches and Sweeteners | 3,699 |  | — |  | 3,699 |  | 1,349 |  | 5,048 |
Bioproducts | 2,734 |  | — |  | 2,734 |  | — |  | 2,734 |
Total Carbohydrate Solutions | 6,433 |  | — |  | 6,433 |  | 1,349 |  | 7,782 |
Nutrition |  |  |  |  |
Wild Flavors and Specialty Ingredients | 1,970 |  | — |  | 1,970 |  | — |  | 1,970 |
Animal Nutrition | 920 |  | — |  | 920 |  | — |  | 920 |
Total Nutrition | 2,890 |  | — |  | 2,890 |  | — |  | 2,890 |
Other | 291 |  | — |  | 291 |  | — |  | 291 |
Total Revenues | $ | 13,590 |  | $ | 361 |  | $ | 13,951 |  | $ | 34,443 |  | $ | 48,394 |
(1) Topic 815 revenue relates to the physical delivery or the settlement of the Company’s sales contracts that are accounted for as derivatives and are outside the scope of Topic 606. Origination The Origination segment generates revenue from the sale of commodities and from service fees for the transportation of goods. Revenue is measured based on the consideration specified in the contract and excludes any sales incentives and amounts collected on behalf of third parties. Revenue is recognized when a performance obligation is satisfied by transferring control over a product or providing service to a customer. For transportation service contracts in Transportation, the Company recognizes revenue over time as the barge, ocean-going vessel, truck, rail, or container freight moves towards its destination in accordance with the transfer of control guidance of Topic 606. For physically settled derivative sales contracts that are outside the scope of Topic 606, the Company recognizes revenue when control of the inventory is transferred within the meaning of Topic 606 as required by Topic 610-20. Oilseeds The Oilseeds segment generates revenue primarily from the sale of products manufactured in its global processing facilities. The segment also generates revenue from the sale of raw commodities in its South American grain origination business and from the sale of peanuts, tree nuts, and peanut-derived ingredients. Revenue is recognized when a performance obligation is satisfied by transferring control over a product. The amount of revenue recognized follows the contractually specified price which may include freight or other contractually specified cost components. For physically settled derivative sales contracts that are outside the scope of Topic 606, the Company recognizes revenue when control of the inventory is transferred within the meaning of Topic 606 as required by Topic 610-20. Carbohydrate Solutions The Carbohydrate Solutions segment generates revenue from the sale of products manufactured at the Company’s global corn and milling facilities around the world. Revenue is recognized when control over products is transferred to the customer. Products are shipped to the 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. For physically settled derivative sales contracts that are outside the scope of Topic 606, the Company recognizes revenue when control of the inventory is transferred within the meaning of Topic 606 as required by Topic 610-20. Nutrition The Nutrition segment sells specialty products including natural flavor ingredients, flavor systems, natural colors, animal nutrition products, other specialty food and feed ingredients. Revenue is recognized when control over products is transferred to the customer. The amount of revenue recognized follows the contracted price or the mutually agreed price of the product. Freight and shipping are recognized as a component of revenue at the same time control transfers to the customer. Other Other 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 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. Contract Liabilities Contract liabilities relate to advance payments from customers for goods and services that the Company has yet to provide. Contract liabilities of $106 million and $185 million as of September 30, 2018 and January 1, 2018, respectively, were recorded in accrued expenses and other payables in the consolidated balance sheet. Contract liabilities recognized as revenues for the three and nine months ended September 30, 2018 were $36 million and $286 million, respectively. Impacts on Financial Statements The following tables summarize the impacts of Topic 606 adoption on the various lines of the Company’s consolidated financial statements. Consolidated Balance Sheets (excerpt)
| January 1, 2018 |  | September 30, 2018
| After Adoption |  | As | Under | Effect of
| of Topic 606 |  | Reported | Topic 605 | Change
| (In millions)
Assets |  |  |  |  |
Trade receivables | $ | 2,343 |  |  | $ | 1,934 |  | $ | 1,675 |  | $ | 259 |
Inventories | 8,770 |  |  | 8,483 |  | 8,760 |  | (277 | )
Other current assets | 3,175 |  |  | 3,707 |  | 3,713 |  | (6 | )
Total Current Assets | 19,918 |  |  | 19,465 |  | 19,489 |  | (24 | )
Total Assets | $ | 39,956 |  |  | $ | 39,664 |  | $ | 39,688 |  | $ | (24 | )
Liabilities, Temporary Equity, and Shareholders’ Equity |  |  |  |  |
Accrued expenses and other payables | $ | 2,826 |  |  | $ | 2,925 |  | $ | 2,947 |  | $ | (22 | )
Total Current Liabilities | 12,563 |  |  | 11,648 |  | 11,670 |  | (22 | )
Reinvested earnings | 17,552 |  |  | 18,478 |  | 18,480 |  | (2 | )
Total Shareholders’ Equity | 18,322 |  |  | 19,000 |  | 19,002 |  | (2 | )
Total Liabilities, Temporary Equity, and Shareholders’ Equity | $ | 39,956 |  |  | $ | 39,664 |  | $ | 39,688 |  | $ | (24 | )
Consolidated Statements of Earnings (excerpt)
| Three Months Ended | Nine Months Ended
| September 30, 2018 | September 30, 2018
| As | Under | Effect of | As | Under | Effect of
| Reported | Topic 605 | Change | Reported | Topic 605 | Change
| (In millions)
Revenues | $ | 15,800 |  | $ | 15,785 |  | $ | 15 |  | $ | 48,394 |  | $ | 48,518 |  | $ | (124 | )
Cost of products sold | 14,742 |  | 14,729 |  | 13 |  | 45,266 |  | 45,388 |  | (122 | )
Gross profit | 1,058 |  | 1,056 |  | 2 |  | 3,128 |  | 3,130 |  | (2 | )
Earnings before income taxes | 632 |  | 630 |  | 2 |  | 1,748 |  | 1,750 |  | (2 | )
Income taxes | 96 |  | 95 |  | 1 |  | 250 |  | 250 |  | — |
Net earnings including noncontrolling interests | 536 |  | 535 |  | 1 |  | 1,498 |  | 1,500 |  | (2 | )
Net earnings attributable to controlling interests | 536 |  | 535 |  | 1 |  | 1,495 |  | 1,497 |  | (2 | )

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
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