Segment Information | Segment Information The Company is principally engaged in procuring, transporting, storing, processing, and merchandising agricultural commodities and products. The Company’s operations are organized, managed and classified into four reportable business segments: Agricultural Services, Corn Processing, Oilseeds Processing, and Wild Flavors and Specialty Ingredients. 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, 2015, the Company formed a fourth reportable business segment, Wild Flavors and Specialty Ingredients. Results of Wild Flavors and SCI, which were acquired during the fourth quarter of fiscal 2014, are reported in this segment in addition to results of certain product lines previously reported in the Agricultural Services, Corn Processing, and Oilseeds Processing business segments. Prior period results of the product lines previously reported in the other reportable business segments have been reclassified to conform to the current period presentation. The Agricultural Services segment utilizes its extensive global grain elevator, global transportation network, 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. Agricultural Services’ grain sourcing, handling, and transportation network provides reliable and efficient services to the Company’s customers and agricultural processing operations. Agricultural Services’ transportation network capabilities include barge, ocean-going vessel, truck, and rail freight services. The Agricultural Services segment also includes the activities related to the processing of wheat into wheat flour. The Agricultural Services segment includes international merchandising and handling activities managed by the Company’s global trade desk in Switzerland. The Agricultural Services segment also includes the Company’s 32.2% share of the results of its Pacificor (formerly Kalama Export Company LLC) joint venture and returns associated with the Company’s 19.8% investment in GrainCorp. The Company’s Corn Processing segment is engaged in corn wet milling and dry milling activities, with its asset base primarily located in the central part of the United States. The Corn Processing segment converts corn into sweeteners, starches, and bioproducts. Its products include ingredients used in the food and beverage industry including sweeteners, starch, syrup, glucose, and dextrose. Dextrose and starch are used by the Corn Processing segment as feedstocks for its bioproducts operations. By fermentation of dextrose, the Corn Processing segment produces alcohol, amino acids, 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. Bioproducts also include amino acids such as lysine and threonine that are vital compounds used in swine feeds to produce leaner animals and in poultry feeds to enhance the speed and efficiency of poultry production. 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. The Corn Processing segment also includes activities related to the processing and distribution of formula feeds and animal health and nutrition products. Other Corn Processing products include citric acids and glycols, all of which are used in various food and industrial products. The Corn Processing segment also includes the activities of a propylene and ethylene glycol facility and the Company’s Brazilian sugarcane ethanol plant and related operations. This segment also includes the Company’s share of the results of its equity investments in Almidones Mexicanos S.A., Eaststarch C.V., and Red Star Yeast Company LLC. In May 2015, the Company sold its lactic acid business. The Oilseeds Processing 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 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 Europe and South America, the Oilseeds Processing 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 Processing segment is a major supplier of peanuts 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 filter markets. The Oilseeds Processing segment also includes activities related to the procurement, transportation and processing of cocoa beans into cocoa liquor, cocoa butter, cocoa powder, chocolate, and various compounds in North America, South America, Europe, Asia, and Africa for the food processing industry. The Oilseeds Processing segment also includes the Company’s share of the results of its equity investment in Wilmar International Limited (Wilmar) and its share of results for its Stratas Foods LLC and Edible Oils Limited joint ventures. In March 2015, the Company acquired additional shares in Wilmar increasing its ownership interest from 17.3% to 18.1% . Prior to December 2014, the Oilseeds Processing segment operated fertilizer blending facilities in South America. In December 2014, the Company completed the sale of its fertilizer blending business. The Wild Flavors and Specialty Ingredients segment engages in the manufacturing, sales, and distribution of specialty products including natural flavor ingredients, flavor systems, proteins, emulsifiers, soluble fiber, polyols, hydrocolloids, sorbitol, xanthan gum, natural health and nutrition products, and other specialty food and feed ingredients. The Company’s Wild Flavors and Specialty Ingredients segment includes the activities of Wild Flavors and SCI, which were acquired during the fourth quarter of fiscal 2014. The Wild Flavors and Specialty Ingredients segment also includes the activities related to the procurement, processing, and distribution of edible beans. Other includes the Company’s remaining operations, primarily its financial business units, related to futures commission and insurance activities. 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 segment operating profit is equity in earnings of affiliates based on the equity method of accounting. Certain Corporate items are not allocated to the Company’s reportable business segments. 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 an equity investment. Three Months Ended Six Months Ended June 30, June 30, (In millions) 2015 2014 2015 2014 Gross revenues Agricultural Services $ 7,833 $ 10,022 $ 16,911 $ 20,837 Corn Processing 2,592 3,243 5,080 6,239 Oilseeds Processing 8,239 9,662 15,135 17,914 Wild Flavors and Specialty Ingredients 687 298 1,294 557 Other 158 129 317 275 Intersegment elimination (2,323 ) (1,860 ) (4,045 ) (3,632 ) Total gross revenues $ 17,186 $ 21,494 $ 34,692 $ 42,190 Intersegment sales Agricultural Services $ 828 $ 792 $ 1,861 $ 1,896 Corn Processing 13 24 35 36 Oilseeds Processing 1,417 982 2,020 1,579 Wild Flavors and Specialty Ingredients 5 2 6 4 Other 60 60 123 117 Total intersegment sales $ 2,323 $ 1,860 $ 4,045 $ 3,632 Revenues from external customers Agricultural Services Merchandising and Handling $ 6,074 $ 8,241 $ 13,101 $ 16,993 Milling and Other 874 931 1,838 1,845 Transportation 57 58 111 103 Total Agricultural Services 7,005 9,230 15,050 18,941 Corn Processing Sweeteners and Starches 956 954 1,831 1,892 Bioproducts 1,623 2,265 3,214 4,311 Total Corn Processing 2,579 3,219 5,045 6,203 Oilseeds Processing Crushing and Origination 4,217 5,437 7,992 9,983 Refining, Packaging, Biodiesel, and Other 1,782 2,276 3,466 4,392 Cocoa and Other 751 837 1,508 1,664 Asia 72 130 149 296 Total Oilseeds Processing 6,822 8,680 13,115 16,335 Wild Flavors and Specialty Ingredients 682 296 1,288 553 Total Wild Flavors and Specialty Ingredients 682 296 1,288 553 Other - Financial 98 69 194 158 Total Other 98 69 194 158 Total revenues from external customers $ 17,186 $ 21,494 $ 34,692 $ 42,190 Three Months Ended Six Months Ended June 30, June 30, (In millions) 2015 2014 2015 2014 Segment operating profit Agricultural Services $ 152 $ 184 $ 346 $ 326 Corn Processing 204 338 317 524 Oilseeds Processing 344 280 813 577 Wild Flavors and Specialty Ingredients 104 75 172 133 Other 4 11 15 19 Total segment operating profit 808 888 1,663 1,579 Corporate (282 ) (153 ) (447 ) (478 ) Earnings before income taxes $ 526 $ 735 $ 1,216 $ 1,101 June 30, December 31, (In millions) 2015 2014 Identifiable Assets Agricultural Services $ 9,362 $ 10,250 Corn Processing 6,188 6,384 Oilseeds Processing 13,017 12,712 Wild Flavors and Specialty Ingredients 3,213 3,468 Other 6,729 7,910 Corporate 2,059 3,273 Total identifiable assets $ 40,568 $ 43,997 |