Archer-Daniels-Midland Co. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Archer-Daniels-Midland Co. has submitted its 2023 annual report on Form 10-K, detailing financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

Archer-Daniels-Midland Co (ADM) filed a Annual Report (10-K) with the SEC on March 12, 2024. Archer-Daniels-Midland Co. filed its annual report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal business address is 77 W. Wacker Dr., Chicago, IL 60601. The filing includes financial data for the fiscal years 2023, 2022, 2021, and 2020. The report is filed under the Securities Exchange Act of 1934.

Why It Matters

For investors and stakeholders tracking Archer-Daniels-Midland Co, this filing contains several important signals. This 10-K filing provides a comprehensive overview of ADM's financial health, operational performance, and strategic positioning for the past fiscal year, crucial for investors assessing its value and future prospects. The detailed financial statements and disclosures within the report are essential for understanding the company's revenue streams, costs, and overall profitability, enabling informed investment decisions.

Risk Assessment

Risk Level: low — Archer-Daniels-Midland Co shows low risk based on this filing. The filing is a standard annual report (10-K) and does not contain any immediate red flags or unexpected disclosures, indicating a routine update of the company's financial status.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-K to understand ADM's performance and potential challenges in the upcoming fiscal year.

Key Numbers

• 20231231 — Fiscal Year End (Reporting period)
• 20240312 — Filing Date (Date of submission)
• 001-00044 — SEC File Number (SEC registration number)
• 410129150 — IRS Number (Company tax identification)

Key Players & Entities

• Archer-Daniels-Midland Co. (company) — Filer name
• 0000007084 (company) — Central Index Key
• 20231231 (date) — Fiscal year end
• 20240312 (date) — Filing date
• 77 W. Wacker Dr. (address) — Business address street
• Chicago (address) — Business address city
• IL (address) — Business address state
• 60601 (address) — Business address zip

FAQ

Industry Context

Archer-Daniels-Midland Co. operates in the food processing and agricultural commodities sector, a vital part of the global food supply chain.

Regulatory Implications

The company is subject to various regulations governing food safety, agricultural practices, and international trade, as overseen by agencies like the FDA and USDA.

What Investors Should Do

1. Review ADM's detailed financial statements for the fiscal year ended December 31, 2023.
2. Analyze the Management's Discussion and Analysis (MD&A) section for insights into operational performance and strategic initiatives.
3. Examine the Risk Factors section for any new or evolving risks that could impact the company's future performance.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-03-12: Filing Date — Date the 10-K report was officially submitted to the SEC.

Year-Over-Year Comparison

This filing represents the company's annual update for the fiscal year 2023, providing a comprehensive look at its financial position and operational results compared to previous periods.

Filing Documents

• adm-20231231.htm (10-K) — 3623KB
• adm-ex4i_20231231x10k.htm (EX-4.I) — 87KB
• adm-ex21_20231231x10k.htm (EX-21) — 240KB
• adm-ex23_20231231x10k.htm (EX-23) — 7KB
• adm-ex24_20231231x10k.htm (EX-24) — 39KB
• adm-ex311_20231231x10k.htm (EX-31.1) — 10KB
• adm-ex312_20231231x10k.htm (EX-31.2) — 10KB
• adm-ex321_20231231x10k.htm (EX-32.1) — 5KB
• adm-ex322_20231231x10k.htm (EX-32.2) — 4KB
• adm-ex97_20231231x10k.htm (EX-97) — 33KB
• adm-20231231_g1.jpg (GRAPHIC) — 109KB
• adm-20231231_g2.jpg (GRAPHIC) — 118KB
• 0000007084-24-000009.txt (&nbsp;) — 21007KB
• adm-20231231.xsd (EX-101.SCH) — 104KB
• adm-20231231_cal.xml (EX-101.CAL) — 144KB
• adm-20231231_def.xml (EX-101.DEF) — 730KB
• adm-20231231_lab.xml (EX-101.LAB) — 1456KB
• adm-20231231_pre.xml (EX-101.PRE) — 1070KB
• adm-20231231_htm.xml (XML) — 3913KB

Signatures

Signatures 134 4 PART I

BUSINESS

Item 1. BUSINESS Company Overview Archer-Daniels-Midland Company (the Company or ADM) unlocks the power of nature to enrich the quality of life. The Company is an essential global agricultural supply chain manager and processor; a premier human and animal nutrition provider; a trailblazer in groundbreaking solutions to support healthier living; an industry-leading innovator in replacing petroleum-based products; and a leader in sustainability. ADM's breadth, depth, insights, facilities and logistical expertise give the Company unparalleled capabilities to meet demand driven by global trends related to food security, health and well-being, and sustainability of the agriculture and food value chains. From the seed of the idea to the outcome of the solution, ADM gives customers an advantage in solving the nutritional and sustainability challenges of today and tomorrow. The Company is one of the world's leading producers of ingredients for sustainable nutrition. From staple foods, such as flour, oils, and sweeteners, to innovative alternatives like plant-based meat and dairy, ADM offers the industry's broadest portfolio of food and beverage solutions. The Company is also a leader in animal nutrition. Today, more and more people want to feed their pets with the same kind of clean, simple, and healthy products that they eat themselves, and consumers expect livestock and poultry to be fed and raised naturally, humanely, and sustainably. ADM offers a range of ingredients, flavors, and solutions from nature to meet animal's needs. ADM is a global leader in health and well-being, with an industry-leading range of probiotics, enzymes, supplements, and more to meet the needs of consumers looking for new ways to live healthier lives. The Company is also leading the way to a future of new consumer and industrial solutions from nature. With unparalleled expertise and capacity in precision fermentation, ADM is reimagining the world of plastics, lubricants, adhesives, home p

BUSINESS (Continued)

Item 1. BUSINESS (Continued) Segment Descriptions 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 business segments, as defined by the applicable accounting standard, and are classified as Other Business. Financial information with respect to the Company's reportable business segments is set forth in Note 17 of "Notes to Consolidated Financial Statements" included in Item 8 herein, "Financial Statements and Supplementary Data" (Item 8). Ag Services and Oilseeds 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

BUSINESS (Continued)

Item 1. BUSINESS (Continued) Carbohydrate Solutions 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. By continuing to advance additional carbon capture and sequestration initiatives and products aimed at replacing coal power and steam generation with lower emissions power, the Carbohydrate Solutions segment is well positioned to benefit from the replacement of essential materials historically made from fossil fuels with plant-based alternatives. The Company has a 50.0% equity interest in Hungrana Ltd. which operates a corn wet milling plant in Hungary. The Company has a 50.0% equity interest in Almidones Mexicanos S.A. which operates a corn wet milling plant in Mexico. The Company has a 50.0% equity interest in Aston Foods and Food Ingredients, a Russian-based sweeteners and starches business. The Company has a 40.0% equity interest in Red Star Yeast

BUSINESS (Continued)

Item 1. BUSINESS (Continued) ADM Investor Services, Inc., a wholly owned subsidiary of the Company, is a registered futures commission merchant and a clearing member of all principal commodities exchanges in the U.S. ADM Investor Services International Limited, a member of several derivative and commodity exchanges and clearing houses in Europe, ADMIS Singapore Pte. Limited, a clearing member of the Singapore exchange, and ADMIS Hong Kong Limited, are wholly owned subsidiaries of ADM offering brokerage services in Europe and Asia. Insurance activities include Agrinational Insurance Company (Agrinational) and its subsidiaries. Agrinational, a wholly owned subsidiary of ADM, provides insurance coverage for certain property, casualty, marine, medical, and other miscellaneous risks of the Company. Agrinational also participates in certain third-party reinsurance arrangements. Corporate Corporate includes the activities related to cost and equity method investments in early-stage start-up companies within ADM Ventures. In addition to identifying companies to invest in, ADM Ventures also works on select high-potential, new product development projects and alternative business models, all with the objective of supporting the Company's strategic objectives. Internal Investigation Background As previously disclosed, the Company received a voluntary document request from the Securities and Exchange Commission (the SEC) relating to intersegment sales between the Company's Nutrition reporting segment and the Company's Ag Services and Oilseeds and Carbohydrate Solutions reporting segments. In response, the Company initiated an internal investigation regarding certain accounting practices and procedures with respect to its Nutrition reporting segment, including as related to certain intersegment sales (the Investigation). As previously disclosed on January 21, 2024, the Company placed Vikram Luthar, Chief Financial Officer and Senior Vice President, on administrativ

BUSINESS (Continued)

Item 1. BUSINESS (Continued) Methods of Distribution The Company's products are distributed mainly in bulk from processing plants or storage facilities directly to customers' facilities. The Company has developed a comprehensive transportation capability to efficiently move both commodities and processed products virtually anywhere in the world. The Company owns or leases trucks, trailers, railroad tank and hopper cars, river barges, towboats, and ocean-going vessels used to transport the Company's products to its customers. Concentration of Revenues by Product The following products accounted for 10% or more of revenues for the following periods: % of Revenues Year Ended December 31 2023 2022 2021 Soybeans 18% 17% 18% Soybean Meal 13% 12% 12% Corn 12% 14% 14% Status of New Products The Company continues to expand the size and global reach of its business through the development of new products. Acquisitions expand the Company's ability to unlock the potential of nature and serve customers' evolving and expanding needs through its offerings of natural flavor and ingredient products. The Company does not expect any individual new product to have a significant impact on the Company's revenues in 2024. Source and Availability of Raw Materials A significant majority of the Company's raw materials are agricultural commodities. In addition, the Company sources specific fruits, vegetables, and nuts for extracts to make flavors and colors. In any single year, the availability and price of these commodities are subject to factors such as changes in weather conditions, plantings, government programs and policies, competition, changes in global demand, changes in standards of living, and global production of similar and competitive crops. The Company's raw materials are procured from thousands of growers, grain elevators, and wholesale merchants in North America, South America, Europe, Middle East, and Africa (EMEA), Asia, and Australia, pursuant primari

BUSINESS (Continued)

Item 1. BUSINESS (Continued) Under the stewardship of ADM's Board of Directors, the Company has established several key social and environmental policies that collectively outline expectations for its employees, business partners and contractors, and the Company as a whole with respect to its sourcing operations. These policies set the standards that govern the Company's approach to environmental stewardship, employee conduct, and raw material sourcing, among other areas, and outline ADM's positions on issues of widespread public interest. These standards are included in, among others, the Company's Code of Conduct; Environment, Health, and Safety Policy; Human Rights Policy; Commitment to Protect Forests, Biodiversity, and Communities; Statement on Genetically Modified Organisms; Statement on Animal Testing; Commitment to Anti-Corruption Compliance; Protocol for Managing Supplier Non-Compliance and ADM Supplier Expectations, all of which are available on the Company's website (see Item 1, Business - Available Information). In addition to policies, a portion of the Company's commodity sourcing is conducted using third-party certification programs including ADM Responsible Soy, Biomass Biofuel Sustainability Voluntary Scheme, Round Table for Responsible Soy, International Sustainability and Carbon Certification, Round Table on Sustainable Palm Oil, and U.S. Soy Sustainability Assurance Protocol. These programs have standards that are estab