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Segment and Geographic Information | 12 Months Ended
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Dec. 31, 2018
Segment Reporting [Abstract] |
Segment And Geographic Information | Segment and Geographic Information The Company is principally engaged in procuring, transporting, storing, processing, and merchandising agricultural commodities, products, and ingredients. The Company’s operations are organized, managed, and classified into four reportable business segments: Origination, 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 as Other. Effective January 1, 2018, the Company changed its segment reporting to reflect changes in its operating structure. The Company new segments are Origination (formerly Agricultural Services), Oilseeds (formerly Oilseeds Processing), Carbohydrate Solutions (formerly Corn Processing), and Nutrition (formerly Wild Flavors and Specialty Ingredients). The European origination business previously reported in Oilseeds is now managed by leaders in Origination to better coordinate continental trading activities. Carbohydrate Solutions now includes the results of ADM Milling, which were previously reported in Origination. In addition, the Company also moved the segment reporting of its renewable chemicals business from Carbohydrate Solutions to Oilseeds effective July 1, 2018. Nutrition now includes the results of Animal Nutrition and certain product lines previously reported in Carbohydrate Solutions as well as certain product lines previously reported in Oilseeds. Prior period results have been reclassified to conform to the current period presentation. The Origination segment utilizes its extensive global grain elevator and transportation networks and port operations to buy, store, clean, and transport agricultural commodities, such as oilseeds, corn, wheat, milo, oats, rice, and barley, and resells these commodities primarily as food and feed ingredients and as raw materials for the agricultural processing industry. The Origination segment also includes international agricultural commodities merchandising and handling activities managed through a global trade desk based in Rolle, Switzerland. The Origination segment’s grain sourcing, handling, and transportation network provides reliable and efficient services to the Company’s customers and agricultural processing operations. The Origination segment’s transportation network capabilities include barge, ocean-going vessel, truck, rail, and container freight services. The Origination segment also includes the activities related to structured trade finance, the import and distribution of agricultural feed products, and the Company’s share of the results of its Pacificor joint venture. The Oilseeds segment includes global activities related to the origination, merchandising, 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 Company include ingredients for the food, feed, energy, and industrial products industries. Crude vegetable oils produced by the segment’s crushing activities are sold “as is” 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. In South America, the Oilseeds segment includes origination and merchandising activities as adjuncts to its oilseeds processing assets. These activities include a network of grain elevators, port facilities, and transportation assets used to buy, store, clean, and transport grains and oilseeds. The Oilseeds segment is a major supplier of peanuts, tree nuts, and peanut-derived ingredients to both the U.S. and export markets. In North America, cottonseed flour is produced and sold primarily to the pharmaceutical industry and cotton cellulose pulp is manufactured and sold to the chemical, paper, and other industrial markets. The Oilseeds segment also includes the Company’s share of the results of its equity investment in Wilmar International Limited (Wilmar) and its share of the results of its Stratas Foods LLC, Edible Oils Limited, and Olenex Sarl (Olenex) joint ventures. In June 2018, the Company invested in SoyVen, a 50% joint venture with Cargill, to provide soybean meal and oil for customers in Egypt. In July 2018, the Company completed the sale of its oilseeds operations in Bolivia to Inversiones Piuranas S.A. In December 2018, the Company completed the acquisition of certain assets of Brazil-based Algar Agro. The Company’s 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 sweeteners, corn and wheat starches, wheat flour, and bioproducts. Its products include ingredients used in the food and beverage industry including sweeteners, starch, syrup, glucose, flour, and dextrose. Dextrose and starch are used by the Carbohydrate Solutions segment as feedstocks for its bioproducts operations. 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 as ethanol or as beverage grade. Ethanol, in gasoline, increases octane and is used 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. This segment also includes the Company’s share of the results of its equity investments in Hungrana Ltd., Almidones Mexicanos S.A., and Red Star Yeast Company, LLC. In June 2018, the Company completed the acquisition of a 50% equity stake in the starches and sweeteners business of Russian-based Aston Foods and Food Ingredients. The Nutrition segment engages in the manufacturing, sales, and distribution of specialty products including natural flavor ingredients, flavor systems, natural colors, proteins, emulsifiers, soluble fiber, polyols, hydrocolloids, natural health and nutrition products, and other specialty food and feed ingredients. The Nutrition segment includes the activities related to the procurement, processing, and distribution of edible beans. The Nutrition segment also includes activities related to the processing and distribution of formula feeds and animal health and nutrition products and the manufacture of contract and private label pet treats and foods. In August 2018, the Company completed the acquisition of Probiotics International Limited, a British-based provider of probiotic supplements for human, pet, and production-animal uses and Rodelle Inc., a premium originator, processor and supplier of vanilla products. Other includes the Company’s remaining operations, primarily its financial business units, related to futures commission and insurance activities. On May 1, 2017, the Company completed the sale of its crop risk services business to Validus Holdings, a global group of insurance and reinsurance companies. Intersegment sales have been recorded at amounts approximating market. Operating profit for each segment is based on net sales less identifiable operating expenses. Also included in operating profit for each segment is equity in earnings of affiliates based on the equity method of accounting. Specified items included in total segment operating profit and certain corporate items are not allocated to the Company’s individual business segments because operating performance of each business segment is evaluated by management exclusive of these items. Corporate results principally include the impact of LIFO-related adjustments, unallocated corporate expenses, interest cost net of investment income, and the Company’s share of the results of its equity investment in Compagnie Industrialle et Financiere des Produits Amylaces SA (Luxembourg) (CIP). Segment Information
| Year Ended
(In millions) | December 31
| 2018 |  | 2017 |  | 2016
Gross revenues |  |  |  |  |
Origination | $ | 29,622 |  |  | $ | 28,300 |  |  | $ | 29,812 |
Oilseeds | 29,092 |  |  | 26,424 |  |  | 25,235 |
Carbohydrate Solutions | 11,421 |  |  | 11,314 |  |  | 11,549 |
Nutrition | 3,835 |  |  | 3,562 |  |  | 3,540 |
Other | 381 |  |  | 387 |  |  | 408 |
Intersegment elimination | (10,010 | ) |  | (9,159 | ) |  | (8,198 | )
Total | $ | 64,341 |  |  | $ | 60,828 |  |  | $ | 62,346 |
Intersegment revenues |  |  |  |  |  |
Origination | $ | 4,562 |  |  | $ | 4,176 |  |  | $ | 4,066 |
Oilseeds | 4,261 |  |  | 4,036 |  |  | 3,281 |
Carbohydrate Solutions | 1,142 |  |  | 908 |  |  | 834 |
Nutrition | 45 |  |  | 39 |  |  | 17 |
Total | $ | 10,010 |  |  | $ | 9,159 |  |  | $ | 8,198 |
Revenues from external customers |  |  |  |  |
Origination |  |  |  |  |
Merchandising and Handling | $ | 24,816 |  |  | $ | 23,915 |  |  | $ | 25,522 |
Transportation | 244 |  |  | 209 |  |  | 224 |
Total Origination | 25,060 |  |  | 24,124 |  |  | 25,746 |
Oilseeds |  |  |  |  |
Crushing and Origination | 16,943 |  |  | 14,171 |  |  | 14,034 |
Refining, Packaging, Biodiesel, and Other | 7,888 |  |  | 8,217 |  |  | 7,920 |
Total Oilseeds | 24,831 |  |  | 22,388 |  |  | 21,954 |
Carbohydrate Solutions |  |  |  |  |
Starches and Sweeteners | 6,696 |  |  | 6,565 |  |  | 6,413 |
Bioproducts | 3,583 |  |  | 3,841 |  |  | 4,302 |
Total Carbohydrate Solutions | 10,279 |  |  | 10,406 |  |  | 10,715 |
Nutrition |  |  |  |  |
Wild Flavors and Specialty Ingredients | 2,571 |  |  | 2,367 |  |  | 2,466 |
Animal Nutrition | 1,219 |  |  | 1,156 |  |  | 1,057 |
Total Nutrition | 3,790 |  |  | 3,523 |  |  | 3,523 |
Other | 381 |  |  | 387 |  |  | 408 |
Total | $ | 64,341 |  |  | $ | 60,828 |  |  | $ | 62,346 |
| Year Ended
(In millions) | December 31
| 2018 |  | 2017 |  | 2016
Depreciation |  |  |  |  |  |
Origination | $ | 165 |  |  | $ | 168 |  |  | $ | 169 |
Oilseeds | 207 |  |  | 202 |  |  | 194 |
Carbohydrate Solutions | 328 |  |  | 322 |  |  | 322 |
Nutrition | 80 |  |  | 75 |  |  | 70 |
Other | 6 |  |  | 6 |  |  | 5 |
Corporate | 26 |  |  | 29 |  |  | 27 |
Total | $ | 812 |  |  | $ | 802 |  |  | $ | 787 |
Long-lived asset abandonments and write-downs(1) |  |  |  |  |
Origination | $ | 25 |  |  | $ | 11 |  |  | $ | 3 |
Oilseeds | 15 |  |  | 6 |  |  | 8 |
Carbohydrate Solutions | — |  |  | 63 |  |  | 4 |
Nutrition | 11 |  |  | 21 |  |  | — |
Corporate | 49 |  |  | — |  |  | 2 |
Total | $ | 100 |  |  | $ | 101 |  |  | $ | 17 |
Interest income |  |  |  |  |
Origination | $ | 16 |  |  | $ | 12 |  |  | $ | 21 |
Oilseeds | 29 |  |  | 27 |  |  | 27 |
Carbohydrate Solutions | 1 |  |  | 1 |  |  | 2 |
Nutrition | 2 |  |  | 2 |  |  | 3 |
Other | 100 |  |  | 57 |  |  | 35 |
Corporate | 14 |  |  | 7 |  |  | 4 |
Total | $ | 162 |  |  | $ | 106 |  |  | $ | 92 |
Equity in earnings of affiliates |  |  |  |  |
Origination | $ | 10 |  |  | $ | 23 |  |  | $ | 16 |
Oilseeds | 411 |  |  | 368 |  |  | 208 |
Carbohydrate Solutions | 62 |  |  | 78 |  |  | 82 |
Nutrition | 17 |  |  | 14 |  |  | 16 |
Other | — |  |  | — |  |  | 10 |
Corporate | 18 |  |  | (27 | ) |  | (40 | )
Total | $ | 518 |  |  | $ | 456 |  |  | $ | 292 |
(1) See Note 18 for total asset impairment, exit, and restructuring costs. |  |  |  |  |
| Year Ended
(In millions) | December 31
| 2018 |  | 2017 |  | 2016
Segment Operating Profit |  |  |  |  |
Origination | $ | 546 |  |  | $ | 404 |  |  | $ | 362 |
Oilseeds | 1,474 |  |  | 825 |  |  | 853 |
Carbohydrate Solutions | 945 |  |  | 1,078 |  |  | 1,001 |
Nutrition | 339 |  |  | 312 |  |  | 273 |
Other | 58 |  |  | 51 |  |  | 134 |
Specified Items: |  |  |  |  |
Gains on sales of assets and businesses(1) | 13 |  |  | 22 |  |  | 114 |
Impairment, restructuring, exit, and settlement charges(2) | (102 | ) |  | (160 | ) |  | (32 | )
Hedge timing effects(3) | — |  |  | 4 |  |  | (1 | )
Total segment operating profit | 3,273 |  |  | 2,536 |  |  | 2,704 |
Corporate | (1,213 | ) |  | (927 | ) |  | (882 | )
Earnings before income taxes | $ | 2,060 |  |  | $ | 1,609 |  |  | $ | 1,822 |
(1) The gains in 2018 related to the sale of businesses and assets. The gains in 2017 related to the sale of the crop risk services business and disposals of other individually insignificant assets in the ordinary course of business, partially offset by an adjustment of the proceeds of the 2015 sale of the cocoa business. The gains in 2016 primarily related to recovery of loss provisions and gain related to the sale of the Company’s Brazilian sugar ethanol facilities, realized contingent consideration on the December 2012 sale of the Company’s equity investment in Gruma S.A. de C.V., and revaluation of the remaining interest to settlement value in conjunction with the acquisition of the remaining interest in Amazon Flavors, partially offset by a loss on sale of asset. (2) The charges in 2018 consisted of impairment of certain assets, restructuring, and settlement charges. The charges in 2017 consisted of asset impairments related to the closure of a facility and the reconfiguration of the Company’s Peoria, Illinois ethanol complex, settlement charges, and several individually insignificant asset impairments and restructuring charges. The charges in 2016 consisted of several individually insignificant asset impairments and restructuring charges. (3) Hedge timing effects relate to hedge ineffectiveness associated with documented hedge programs.
(In millions) | December 31
| 2018 |  | 2017
Investments in and advances to affiliates |  |  |
Origination | $ | 360 |  |  | $ | 359 |
Oilseeds | 4,189 |  |  | 3,961 |
Carbohydrate Solutions | 375 |  |  | 373 |
Nutrition | 63 |  |  | 57 |
Corporate | 330 |  |  | 338 |
Total | $ | 5,317 |  |  | $ | 5,088 |
Identifiable assets |  |  |
Origination | $ | 8,461 |  |  | $ | 8,311 |
Oilseeds | 12,195 |  |  | 11,992 |
Carbohydrate Solutions | 5,895 |  |  | 6,085 |
Nutrition | 7,158 |  |  | 5,568 |
Other | 5,131 |  |  | 5,658 |
Corporate | 1,993 |  |  | 2,349 |
Total | $ | 40,833 |  |  | $ | 39,963 |
(In millions) | December 31
| 2018 |  | 2017
Gross additions to property, plant, and equipment |  |  |
Origination | $ | 93 |  |  | $ | 203 |
Oilseeds | 223 |  |  | 262 |
Carbohydrate Solutions | 267 |  |  | 326 |
Nutrition | 182 |  |  | 234 |
Other | 3 |  |  | 12 |
Corporate | 77 |  |  | 63 |
Total | $ | 845 |  |  | $ | 1,100 |
Geographic information: The following geographic data include revenues attributed to the countries based on the location of the subsidiary making the sale and long-lived assets based on physical location. Long-lived assets represent the net book value of property, plant, and equipment.
| Year Ended
(In millions) | December 31
| 2018 |  | 2017 |  | 2016
Revenues |  |  |  |  |
United States | $ | 28,726 |  |  | $ | 27,894 |  |  | $ | 29,419 |
Switzerland | 12,911 |  |  | 14,095 |  |  | 13,413 |
Cayman Islands | 5,724 |  |  | 4,189 |  |  | 3,617 |
Germany | 2,179 |  |  | 2,090 |  |  | 2,341 |
Other Foreign | 14,801 |  |  | 12,560 |  |  | 13,556 |
| $ | 64,341 |  |  | $ | 60,828 |  |  | $ | 62,346 |
(In millions) | December 31
| 2018 |  | 2017
Long-lived assets |  |  |
United States | $ | 6,615 |  |  | $ | 6,767 |
Brazil | 802 |  |  | 731 |
Other Foreign | 2,536 |  |  | 2,640 |
| $ | 9,953 |  |  | $ | 10,138 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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