Segment And Geographic Information | Segment and Geographic Information Effective July 1, 2019, the Company changed its segment reporting to reflect the creation of the combined Ag Services and Oilseeds segment. The former Origination and Oilseeds businesses were merged into a combined Ag Services and Oilseeds segment which enables the Company to better respond to market changes by integrating the supply and value chains and risk management, while delivering significant simplification and efficiency to the day-to-day business. As part of the Company’s efforts for a streamlined management structure, the combined segment is led by the former President of Oilseeds expanding his role to President of Ag Services and Oilseeds. Prior period results have been reclassified to conform to the current period segment presentation. 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 as Other. 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” 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, tree nuts, 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. This segment also includes the Company's share of the results of its equity investment in Wilmar and its share of the results of its Pacificor, Stratas Foods LLC, Edible Beans Oils Limited, Olenex, and SoyVen joint ventures. In February 2019, the Company purchased the remaining 50% interest owned by InVivo Group in the Gleadell Agriculture Ltd. joint venture located in the United Kingdom. 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 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., Red Star Yeast Company, LLC, and Aston Foods and Food Ingredients. The Nutrition segment serves customer needs for food, beverages, health and wellness, and more. The segment engages in the manufacturing, sale, and distribution of a wide array of products from nature including plant-based proteins, natural flavor ingredients, flavor systems, natural colors, emulsifiers, soluble fiber, polyols, hydrocolloids, natural health and nutrition products including probiotics, prebiotics, enzymes, and botanical extracts, and other specialty food and feed ingredients. The Nutrition segment includes the activities related to the procurement, processing, and distribution of edible beans. The 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 2019, ADM completed the acquisitions of Neovia, a French-based global provider of value-added animal nutrition solutions, with 72 production facilities and a presence in 25 countries; FCC, one of the world’s largest producers of citrus oils and ingredients; and Ziegler, a leading European provider of natural citrus flavor ingredients. Other includes the Company’s 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 CIP, which was sold in December 2019. Segment Information Year Ended (In millions) December 31 2019 2018 2017 Gross revenues Ag Services and Oilseeds $ 54,633 $ 56,591 $ 52,217 Carbohydrate Solutions 11,154 11,421 11,314 Nutrition 5,786 3,836 3,562 Other 352 381 387 Intersegment elimination (7,269 ) (7,888 ) (6,652 ) Total $ 64,656 $ 64,341 $ 60,828 Intersegment revenues Ag Services and Oilseeds $ 5,892 $ 6,700 $ 5,705 Carbohydrate Solutions 1,268 1,142 908 Nutrition 109 46 39 Total $ 7,269 $ 7,888 $ 6,652 Revenues from external customers Ag Services and Oilseeds Ag Services $ 31,705 $ 31,766 $ 29,124 Crushing 9,479 10,319 9,265 Refined Products and Other 7,557 7,806 8,123 Total Ag Services and Oilseeds 48,741 49,891 46,512 Carbohydrate Solutions Starches and Sweeteners 6,692 6,696 6,565 Bioproducts 3,194 3,583 3,841 Total Carbohydrate Solutions 9,886 10,279 10,406 Nutrition Wild Flavors and Specialty Ingredients 2,745 2,571 2,367 Animal Nutrition 2,932 1,219 1,156 Total Nutrition 5,677 3,790 3,523 Other 352 381 387 Total $ 64,656 $ 64,341 $ 60,828 Year Ended (In millions) December 31 2019 2018 2017 Depreciation Ag Services and Oilseeds $ 361 $ 372 $ 370 Carbohydrate Solutions 320 328 322 Nutrition 113 80 75 Other 6 6 6 Corporate 27 26 29 Total $ 827 $ 812 $ 802 Long-lived asset abandonments and write-downs (1) Ag Services and Oilseeds $ 130 $ 40 $ 17 Carbohydrate Solutions 1 — 63 Nutrition — 11 21 Corporate — 49 — Total $ 131 $ 100 $ 101 Interest income Ag Services and Oilseeds $ 51 $ 45 $ 39 Carbohydrate Solutions — 1 1 Nutrition 1 2 2 Other 125 100 57 Corporate 15 14 7 Total $ 192 $ 162 $ 106 Equity in earnings of affiliates Ag Services and Oilseeds $ 378 $ 421 $ 391 Carbohydrate Solutions 60 62 78 Nutrition 17 17 14 Corporate (1 ) 18 (27 ) Total $ 454 $ 518 $ 456 (1) See Note 18 for total asset impairment, exit, and restructuring costs. Year Ended (In millions) December 31 2019 2018 2017 Segment Operating Profit Ag Services and Oilseeds $ 1,935 $ 2,020 $ 1,229 Carbohydrate Solutions 644 945 1,078 Nutrition 418 339 312 Other 85 58 51 Specified Items: Gains on sales of assets and businesses (1) 12 13 22 Impairment, restructuring, exit, and settlement charges (2) (146 ) (102 ) (160 ) Hedge timing effects (3) — — 4 Total segment operating profit 2,948 3,273 2,536 Corporate (1,360 ) (1,213 ) (927 ) Earnings before income taxes $ 1,588 $ 2,060 $ 1,609 (1) The gains in 2019 consisted of a gain on the sale of certain assets and a step-up gain on an equity investment.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. (2) The charges in 2019 primarily related to the impairment of certain long-lived assets.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. (3) Hedge timing effects relate to hedge ineffectiveness associated with documented hedge programs. (In millions) December 31 2019 2018 Investments in and advances to affiliates Ag Services and Oilseeds $ 4,662 $ 4,549 Carbohydrate Solutions 363 375 Nutrition 98 63 Corporate 9 330 Total $ 5,132 $ 5,317 Identifiable assets Ag Services and Oilseeds $ 21,927 $ 20,656 Carbohydrate Solutions 6,044 5,895 Nutrition 8,622 7,158 Other 5,661 5,131 Corporate 1,743 1,993 Total $ 43,997 $ 40,833 (In millions) December 31 2019 2018 Gross additions to property, plant, and equipment Ag Services and Oilseeds $ 271 $ 316 Carbohydrate Solutions 275 267 Nutrition 166 182 Other 2 3 Corporate 103 77 Total $ 817 $ 845 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 2019 2018 2017 Revenues United States $ 27,509 $ 28,726 $ 27,894 Switzerland 13,016 12,911 14,095 Cayman Islands 4,374 5,724 4,189 Brazil 2,381 1,702 1,589 Germany 2,026 2,179 2,090 Other Foreign 15,350 13,099 10,971 $ 64,656 $ 64,341 $ 60,828 (In millions) December 31 2019 2018 Long-lived assets United States $ 6,488 $ 6,615 Brazil 869 802 Other Foreign 2,749 2,536 $ 10,106 $ 9,953 |