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x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
41-0129150
|
(State or other jurisdiction of
incorporation or organization)
|
(I. R. S. Employer
Identification No.)
|
|
|
77 West Wacker Drive, Suite 4600
Chicago, Illinois
(Address of principal executive offices)
|
60601
(Zip Code)
|
|
|
(
312) 634-8100
|
|
(Registrant’s telephone number, including area code)
|
Large accelerated filer
x
|
Accelerated filer
o
|
Non-accelerated filer
o
|
Smaller reporting company
o
|
|
Emerging growth company
o
|
ITEM 1.
|
FINANCIAL STATEMENTS
|
|
Three Months Ended
March 31, |
||||||
|
2017
|
|
2016
|
||||
|
(In millions, except per share amounts)
|
||||||
|
|
|
|
||||
Revenues
|
$
|
14,988
|
|
|
$
|
14,384
|
|
Cost of products sold
|
14,120
|
|
|
13,603
|
|
||
Gross Profit
|
868
|
|
|
781
|
|
||
|
|
|
|
||||
Selling, general, and administrative expenses
|
521
|
|
|
479
|
|
||
Asset impairment, exit, and restructuring costs
|
10
|
|
|
13
|
|
||
Interest expense
|
81
|
|
|
70
|
|
||
Equity in earnings of unconsolidated affiliates
|
(172
|
)
|
|
(65
|
)
|
||
Interest income
|
(23
|
)
|
|
(22
|
)
|
||
Other (income) expense – net
|
(7
|
)
|
|
—
|
|
||
Earnings Before Income Taxes
|
458
|
|
|
306
|
|
||
|
|
|
|
||||
Income taxes
|
118
|
|
|
76
|
|
||
Net Earnings Including Noncontrolling Interests
|
340
|
|
|
230
|
|
||
|
|
|
|
||||
Less: Net earnings (losses) attributable to noncontrolling interests
|
1
|
|
|
—
|
|
||
|
|
|
|
||||
Net Earnings Attributable to Controlling Interests
|
$
|
339
|
|
|
$
|
230
|
|
|
|
|
|
||||
Average number of shares outstanding – basic
|
576
|
|
|
595
|
|
||
|
|
|
|
||||
Average number of shares outstanding – diluted
|
579
|
|
|
597
|
|
||
|
|
|
|
||||
Basic earnings per common share
|
$
|
0.59
|
|
|
$
|
0.39
|
|
|
|
|
|
||||
Diluted earnings per common share
|
$
|
0.59
|
|
|
$
|
0.39
|
|
|
|
|
|
||||
Dividends per common share
|
$
|
0.32
|
|
|
$
|
0.30
|
|
|
Three Months Ended
March 31, |
||||||
|
2017
|
|
2016
|
||||
|
(In millions)
|
||||||
|
|
|
|
||||
Net earnings including noncontrolling interests
|
$
|
340
|
|
|
$
|
230
|
|
Other comprehensive income (loss):
|
|
|
|
||||
Foreign currency translation adjustment
|
21
|
|
|
202
|
|
||
Tax effect
|
3
|
|
|
23
|
|
||
Net of tax amount
|
24
|
|
|
225
|
|
||
|
|
|
|
||||
Pension and other postretirement benefit liabilities adjustment
|
12
|
|
|
1
|
|
||
Tax effect
|
(6
|
)
|
|
—
|
|
||
Net of tax amount
|
6
|
|
|
1
|
|
||
|
|
|
|
||||
Deferred gain (loss) on hedging activities
|
3
|
|
|
10
|
|
||
Tax effect
|
(3
|
)
|
|
(2
|
)
|
||
Net of tax amount
|
—
|
|
|
8
|
|
||
|
|
|
|
||||
Unrealized gain (loss) on investments
|
(6
|
)
|
|
(33
|
)
|
||
Tax effect
|
—
|
|
|
(2
|
)
|
||
Net of tax amount
|
(6
|
)
|
|
(35
|
)
|
||
Other comprehensive income (loss)
|
24
|
|
|
199
|
|
||
Comprehensive income (loss) including noncontrolling interests
|
364
|
|
|
429
|
|
||
|
|
|
|
||||
Less: Comprehensive income (loss) attributable to noncontrolling interests
|
1
|
|
|
—
|
|
||
|
|
|
|
||||
Comprehensive income (loss) attributable to controlling interests
|
$
|
363
|
|
|
$
|
429
|
|
(In millions)
|
March 31, 2017
|
|
December 31, 2016
|
||||
|
(Unaudited)
|
|
|
||||
Assets
|
|
|
|
||||
Current Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
476
|
|
|
$
|
619
|
|
Short-term marketable securities
|
272
|
|
|
296
|
|
||
Segregated cash and investments
|
5,376
|
|
|
5,011
|
|
||
Trade receivables
|
1,757
|
|
|
1,905
|
|
||
Inventories
|
8,664
|
|
|
8,831
|
|
||
Other current assets
|
3,941
|
|
|
4,383
|
|
||
Total Current Assets
|
20,486
|
|
|
21,045
|
|
||
|
|
|
|
||||
Investments and Other Assets
|
|
|
|
|
|
||
Investments in and advances to affiliates
|
4,700
|
|
|
4,497
|
|
||
Long-term marketable securities
|
196
|
|
|
187
|
|
||
Goodwill and other intangible assets
|
3,780
|
|
|
3,703
|
|
||
Other assets
|
697
|
|
|
579
|
|
||
Total Investments and Other Assets
|
9,373
|
|
|
8,966
|
|
||
|
|
|
|
||||
Property, Plant, and Equipment
|
|
|
|
|
|
||
Land
|
448
|
|
|
445
|
|
||
Buildings
|
4,715
|
|
|
4,679
|
|
||
Machinery and equipment
|
17,228
|
|
|
17,160
|
|
||
Construction in progress
|
1,228
|
|
|
1,213
|
|
||
|
23,619
|
|
|
23,497
|
|
||
Accumulated depreciation
|
(13,848
|
)
|
|
(13,739
|
)
|
||
Net Property, Plant, and Equipment
|
9,771
|
|
|
9,758
|
|
||
Total Assets
|
$
|
39,630
|
|
|
$
|
39,769
|
|
|
|
|
|
||||
Liabilities, Temporary Equity, and Shareholders’ Equity
|
|
|
|
|
|
||
Current Liabilities
|
|
|
|
|
|
||
Short-term debt
|
$
|
420
|
|
|
$
|
154
|
|
Trade payables
|
3,415
|
|
|
3,606
|
|
||
Payables to brokerage customers
|
5,474
|
|
|
5,158
|
|
||
Accrued expenses and other payables
|
3,462
|
|
|
3,982
|
|
||
Current maturities of long-term debt
|
831
|
|
|
273
|
|
||
Total Current Liabilities
|
13,602
|
|
|
13,173
|
|
||
|
|
|
|
||||
Long-Term Liabilities
|
|
|
|
|
|
||
Long-term debt
|
5,956
|
|
|
6,504
|
|
||
Deferred income taxes
|
1,682
|
|
|
1,669
|
|
||
Other
|
1,235
|
|
|
1,218
|
|
||
Total Long-Term Liabilities
|
8,873
|
|
|
9,391
|
|
||
|
|
|
|
||||
Temporary Equity - Redeemable noncontrolling interest
|
26
|
|
|
24
|
|
||
|
|
|
|
||||
Shareholders’ Equity
|
|
|
|
|
|
||
Common stock
|
2,350
|
|
|
2,327
|
|
||
Reinvested earnings
|
17,345
|
|
|
17,444
|
|
||
Accumulated other comprehensive income (loss)
|
(2,574
|
)
|
|
(2,598
|
)
|
||
Noncontrolling interests
|
8
|
|
|
8
|
|
||
Total Shareholders’ Equity
|
17,129
|
|
|
17,181
|
|
||
Total Liabilities, Temporary Equity, and Shareholders’ Equity
|
$
|
39,630
|
|
|
$
|
39,769
|
|
|
|
|
|
(In millions)
|
Three Months Ended
March 31, |
||||||
|
2017
|
|
2016
|
||||
Operating Activities
|
|
|
|
||||
Net earnings including noncontrolling interests
|
$
|
340
|
|
|
$
|
230
|
|
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities
|
|
|
|
|
|
||
Depreciation and amortization
|
225
|
|
|
231
|
|
||
Asset impairment charges
|
1
|
|
|
11
|
|
||
Deferred income taxes
|
1
|
|
|
50
|
|
||
Equity in earnings of affiliates, net of dividends
|
(140
|
)
|
|
(44
|
)
|
||
Stock compensation expense
|
32
|
|
|
28
|
|
||
Pension and postretirement accruals (contributions), net
|
11
|
|
|
15
|
|
||
Deferred cash flow hedges
|
3
|
|
|
10
|
|
||
Gains on sales of assets/revaluations
|
(16
|
)
|
|
(3
|
)
|
||
Other – net
|
51
|
|
|
29
|
|
||
Changes in operating assets and liabilities
|
|
|
|
|
|
||
Segregated cash and investments
|
(430
|
)
|
|
(115
|
)
|
||
Trade receivables
|
169
|
|
|
(172
|
)
|
||
Inventories
|
222
|
|
|
406
|
|
||
Other current assets
|
387
|
|
|
128
|
|
||
Trade payables
|
(209
|
)
|
|
(527
|
)
|
||
Payables to brokerage customers
|
303
|
|
|
217
|
|
||
Accrued expenses and other payables
|
(541
|
)
|
|
(469
|
)
|
||
Total Operating Activities
|
409
|
|
|
25
|
|
||
|
|
|
|
||||
Investing Activities
|
|
|
|
|
|
||
Purchases of property, plant, and equipment
|
(200
|
)
|
|
(180
|
)
|
||
Proceeds from sales of business and assets
|
25
|
|
|
11
|
|
||
Net assets of businesses acquired
|
(90
|
)
|
|
(84
|
)
|
||
Purchases of marketable securities
|
(148
|
)
|
|
(426
|
)
|
||
Proceeds from sales of marketable securities
|
220
|
|
|
376
|
|
||
Investments in and advances to affiliates
|
(185
|
)
|
|
(149
|
)
|
||
Other – net
|
(3
|
)
|
|
4
|
|
||
Total Investing Activities
|
(381
|
)
|
|
(448
|
)
|
||
|
|
|
|
||||
Financing Activities
|
|
|
|
|
|
||
Long-term debt payments
|
(2
|
)
|
|
(4
|
)
|
||
Net borrowings (payments) under lines of credit agreements
|
263
|
|
|
697
|
|
||
Share repurchases
|
(248
|
)
|
|
(296
|
)
|
||
Cash dividends
|
(183
|
)
|
|
(177
|
)
|
||
Other – net
|
(10
|
)
|
|
1
|
|
||
Total Financing Activities
|
(180
|
)
|
|
221
|
|
||
|
|
|
|
||||
Increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents
|
(152
|
)
|
|
(202
|
)
|
||
Cash, cash equivalents, restricted cash, and restricted cash equivalents - beginning of period
|
688
|
|
|
1,003
|
|
||
Cash, cash equivalents, restricted cash, and restricted cash equivalents - end of period
|
$
|
536
|
|
|
$
|
801
|
|
|
|
|
|
||||
Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents to the consolidated balance sheets
|
|
|
|
||||
|
|
|
|
||||
Cash and cash equivalents
|
$
|
476
|
|
|
$
|
706
|
|
Restricted cash and restricted cash equivalents included in segregated cash and investments
|
60
|
|
|
95
|
|
||
Total cash, cash equivalents, restricted cash, and restricted cash equivalents
|
$
|
536
|
|
|
$
|
801
|
|
|
|
|
|
|
Common Stock
|
|
Reinvested
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Noncontrolling
Interests
|
|
Total
Shareholders’
Equity
|
||||||||||||||
|
Shares
|
|
Amount
|
|
|
|
|
||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, December 31, 2016
|
573
|
|
|
$
|
2,327
|
|
|
$
|
17,444
|
|
|
$
|
(2,598
|
)
|
|
$
|
8
|
|
|
$
|
17,181
|
|
|
Impact of ASU 2016-16 (see Note 2)
|
|
|
|
|
(7
|
)
|
|
|
|
|
|
(7
|
)
|
||||||||||
Balance, January 1, 2017
|
$
|
573
|
|
|
$
|
2,327
|
|
|
$
|
17,437
|
|
|
$
|
(2,598
|
)
|
|
$
|
8
|
|
|
$
|
17,174
|
|
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net earnings
|
|
|
|
|
|
339
|
|
|
|
|
|
1
|
|
|
|
|
|||||||
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
|
24
|
|
|
—
|
|
|
|
|
||||||
Total comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
364
|
|
||||||
Cash dividends paid- $0.32 per share
|
|
|
|
|
|
|
(183
|
)
|
|
|
|
|
|
|
|
(183
|
)
|
||||||
Share repurchases
|
(5
|
)
|
|
|
|
(248
|
)
|
|
|
|
|
|
(248
|
)
|
|||||||||
Stock compensation expense
|
1
|
|
|
32
|
|
|
|
|
|
|
|
|
|
|
|
32
|
|
||||||
Other
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(10
|
)
|
||||||
Balance, March 31, 2017
|
569
|
|
|
$
|
2,350
|
|
|
$
|
17,345
|
|
|
$
|
(2,574
|
)
|
|
$
|
8
|
|
|
$
|
17,129
|
|
Note 1.
|
Basis of Presentation
|
Note 2.
|
New Accounting Standards
|
Note 2.
|
New Accounting Standards (Continued)
|
Note 3.
|
Pending Accounting Standards
|
Note 3.
|
Pending Accounting Standards (Continued)
|
Note 4.
|
Acquisitions
|
Note 5.
|
Fair Value Measurements
|
|
Fair Value Measurements at March 31, 2017
|
||||||||||||||
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Total
|
||||||||
|
(In millions)
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Inventories carried at market
|
$
|
—
|
|
|
$
|
3,461
|
|
|
$
|
1,129
|
|
|
$
|
4,590
|
|
Unrealized derivative gains:
|
|
|
|
|
|
|
|
||||||||
Commodity contracts
|
—
|
|
|
421
|
|
|
173
|
|
|
594
|
|
||||
Foreign currency contracts
|
—
|
|
|
64
|
|
|
—
|
|
|
64
|
|
||||
Interest rate contracts
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
||||
Cash equivalents
|
27
|
|
|
—
|
|
|
—
|
|
|
27
|
|
||||
Marketable securities
|
373
|
|
|
95
|
|
|
—
|
|
|
468
|
|
||||
Segregated investments
|
1,443
|
|
|
—
|
|
|
—
|
|
|
1,443
|
|
||||
Deferred receivables consideration
|
—
|
|
|
298
|
|
|
—
|
|
|
298
|
|
||||
Total Assets
|
$
|
1,843
|
|
|
$
|
4,345
|
|
|
$
|
1,302
|
|
|
$
|
7,490
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Unrealized derivative losses:
|
|
|
|
|
|
|
|
||||||||
Commodity contracts
|
$
|
—
|
|
|
$
|
355
|
|
|
$
|
123
|
|
|
$
|
478
|
|
Foreign currency contracts
|
—
|
|
|
96
|
|
|
—
|
|
|
96
|
|
||||
Inventory-related payables
|
—
|
|
|
336
|
|
|
28
|
|
|
364
|
|
||||
Total Liabilities
|
$
|
—
|
|
|
$
|
787
|
|
|
$
|
151
|
|
|
$
|
938
|
|
Note 5.
|
Fair Value Measurements (Continued)
|
|
Fair Value Measurements at December 31, 2016
|
||||||||||||||
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Total
|
||||||||
|
(In millions)
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Inventories carried at market
|
$
|
—
|
|
|
$
|
3,102
|
|
|
$
|
1,322
|
|
|
$
|
4,424
|
|
Unrealized derivative gains:
|
|
|
|
|
|
|
|
||||||||
Commodity contracts
|
—
|
|
|
371
|
|
|
140
|
|
|
511
|
|
||||
Foreign exchange contracts
|
—
|
|
|
102
|
|
|
—
|
|
|
102
|
|
||||
Interest rate contracts
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
||||
Cash equivalents
|
286
|
|
|
—
|
|
|
—
|
|
|
286
|
|
||||
Marketable securities
|
408
|
|
|
69
|
|
|
—
|
|
|
477
|
|
||||
Segregated investments
|
1,613
|
|
|
—
|
|
|
—
|
|
|
1,613
|
|
||||
Deferred receivables consideration
|
—
|
|
|
540
|
|
|
—
|
|
|
540
|
|
||||
Total Assets
|
$
|
2,307
|
|
|
$
|
4,195
|
|
|
$
|
1,462
|
|
|
$
|
7,964
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Unrealized derivative losses:
|
|
|
|
|
|
|
|
||||||||
Commodity contracts
|
$
|
—
|
|
|
$
|
419
|
|
|
$
|
142
|
|
|
$
|
561
|
|
Foreign exchange contracts
|
—
|
|
|
90
|
|
|
—
|
|
|
90
|
|
||||
Inventory-related payables
|
—
|
|
|
491
|
|
|
30
|
|
|
521
|
|
||||
Total Liabilities
|
$
|
—
|
|
|
$
|
1,000
|
|
|
$
|
172
|
|
|
$
|
1,172
|
|
Note 5.
|
Fair Value Measurements (Continued)
|
Note 5.
|
Fair Value Measurements (Continued)
|
|
Level 3 Fair Value Asset Measurements at
|
||||||||||
|
March 31, 2017
|
||||||||||
|
Inventories
Carried at
Market
|
|
Commodity
Derivative
Contracts
Gains
|
|
Total
Assets
|
||||||
|
(In millions)
|
||||||||||
|
|
|
|
|
|
||||||
Balance, December 31, 2016
|
$
|
1,322
|
|
|
$
|
140
|
|
|
$
|
1,462
|
|
Total increase (decrease) in net realized/unrealized gains included in cost of products sold*
|
(228
|
)
|
|
69
|
|
|
(159
|
)
|
|||
Purchases
|
3,248
|
|
|
—
|
|
|
3,248
|
|
|||
Sales
|
(3,194
|
)
|
|
—
|
|
|
(3,194
|
)
|
|||
Settlements
|
—
|
|
|
(69
|
)
|
|
(69
|
)
|
|||
Transfers into Level 3
|
34
|
|
|
47
|
|
|
81
|
|
|||
Transfers out of Level 3
|
(53
|
)
|
|
(14
|
)
|
|
(67
|
)
|
|||
Ending balance, March 31, 2017
|
$
|
1,129
|
|
|
$
|
173
|
|
|
$
|
1,302
|
|
|
Level 3 Fair Value Liability Measurements at
|
||||||||||
|
March 31, 2017
|
||||||||||
|
Inventory-
related
Payables
|
|
Commodity
Derivative
Contracts
Losses
|
|
Total
Liabilities
|
||||||
|
(In millions)
|
||||||||||
|
|
|
|
|
|
||||||
Balance, December 31, 2016
|
$
|
30
|
|
|
$
|
142
|
|
|
$
|
172
|
|
Total increase (decrease) in net realized/unrealized losses included in cost of products sold*
|
14
|
|
|
39
|
|
|
53
|
|
|||
Purchases
|
2
|
|
|
—
|
|
|
2
|
|
|||
Sales
|
(18
|
)
|
|
—
|
|
|
(18
|
)
|
|||
Settlements
|
—
|
|
|
(68
|
)
|
|
(68
|
)
|
|||
Transfers into Level 3
|
—
|
|
|
23
|
|
|
23
|
|
|||
Transfers out of Level 3
|
—
|
|
|
(13
|
)
|
|
(13
|
)
|
|||
Ending balance, March 31, 2017
|
$
|
28
|
|
|
$
|
123
|
|
|
$
|
151
|
|
Note 5.
|
Fair Value Measurements (Continued)
|
|
Level 3 Fair Value Asset Measurements at
|
||||||||||
|
March 31, 2016
|
||||||||||
|
Inventories
Carried at
Market
|
|
Commodity
Derivative
Contracts
Gains
|
|
Total
Assets
|
||||||
|
(In millions)
|
||||||||||
|
|
|
|
|
|
||||||
Balance, December 31, 2015
|
$
|
1,004
|
|
|
$
|
243
|
|
|
$
|
1,247
|
|
Total increase (decrease) in net realized/unrealized gains included in cost of products sold*
|
(114
|
)
|
|
63
|
|
|
(51
|
)
|
|||
Purchases
|
2,356
|
|
|
—
|
|
|
2,356
|
|
|||
Sales
|
(2,237
|
)
|
|
—
|
|
|
(2,237
|
)
|
|||
Settlements
|
—
|
|
|
(97
|
)
|
|
(97
|
)
|
|||
Transfers into Level 3
|
88
|
|
|
32
|
|
|
120
|
|
|||
Transfers out of Level 3
|
(128
|
)
|
|
(23
|
)
|
|
(151
|
)
|
|||
Ending balance, March 31, 2016
|
$
|
969
|
|
|
$
|
218
|
|
|
$
|
1,187
|
|
|
Level 3 Fair Value Liability Measurements at
|
||||||||||
|
March 31, 2016
|
||||||||||
|
Inventory-
related
Payables
|
|
Commodity
Derivative
Contracts
Losses
|
|
Total
Liabilities
|
||||||
|
(In millions)
|
||||||||||
|
|
|
|
|
|
||||||
Balance, December 31, 2015
|
$
|
16
|
|
|
$
|
113
|
|
|
$
|
129
|
|
Total increase (decrease) in net realized/unrealized losses included in cost of products sold*
|
13
|
|
|
79
|
|
|
92
|
|
|||
Purchases
|
1
|
|
|
—
|
|
|
1
|
|
|||
Sales
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
|||
Settlements
|
—
|
|
|
(72
|
)
|
|
(72
|
)
|
|||
Transfers into Level 3
|
—
|
|
|
15
|
|
|
15
|
|
|||
Transfers out of Level 3
|
—
|
|
|
(24
|
)
|
|
(24
|
)
|
|||
Ending balance, March 31, 2016
|
$
|
23
|
|
|
$
|
111
|
|
|
$
|
134
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 5.
|
Fair Value Measurements (Continued)
|
|
|
|
|
|
|
|
Weighted Average % of Total Price
|
||||||||||
|
March 31, 2017
|
|
December 31, 2016
|
||||||||
Component Type
|
Assets
|
|
Liabilities
|
|
Assets
|
|
Liabilities
|
||||
Inventories and Related Payables
|
|
|
|
|
|
|
|
||||
Basis
|
12.4
|
%
|
|
68.4
|
%
|
|
16.5
|
%
|
|
67.1
|
%
|
Transportation cost
|
18.6
|
%
|
|
2.3
|
%
|
|
8.3
|
%
|
|
—
|
|
|
|
|
|
|
|
|
|
||||
Commodity Derivative Contracts
|
|
|
|
|
|
|
|
||||
Basis
|
29.7
|
%
|
|
29.2
|
%
|
|
16.9
|
%
|
|
27.0
|
%
|
Transportation cost
|
12.8
|
%
|
|
13.2
|
%
|
|
11.6
|
%
|
|
13.4
|
%
|
Note 6.
|
Derivative Instruments and Hedging Activities
|
|
March 31, 2017
|
|
December 31, 2016
|
||||||||||||
|
Assets
|
|
Liabilities
|
|
Assets
|
|
Liabilities
|
||||||||
|
(In millions)
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Foreign Currency Contracts
|
$
|
64
|
|
|
$
|
96
|
|
|
$
|
102
|
|
|
$
|
90
|
|
Commodity Contracts
|
594
|
|
|
478
|
|
|
511
|
|
|
561
|
|
||||
Total
|
$
|
658
|
|
|
$
|
574
|
|
|
$
|
613
|
|
|
$
|
651
|
|
|
Three months ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
|
(In millions)
|
||||||
Foreign Currency Contracts
|
|
|
|
|
|
||
Revenues
|
$
|
(11
|
)
|
|
$
|
—
|
|
Cost of products sold
|
60
|
|
|
107
|
|
||
Other income (expense) – net
|
1
|
|
|
(1
|
)
|
||
|
|
|
|
||||
Commodity Contracts
|
|
|
|
|
|
||
Cost of products sold
|
259
|
|
|
(10
|
)
|
||
Total gain (loss) recognized in earnings
|
$
|
309
|
|
|
$
|
96
|
|
|
|
|
|
Note 6.
|
Derivative Instruments and Hedging Activities (Continued)
|
|
March 31, 2017
|
|
December 31, 2016
|
||||||||||||
|
Assets
|
|
Liabilities
|
|
Assets
|
|
Liabilities
|
||||||||
|
(In millions)
|
||||||||||||||
Interest Rate Contracts
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
11
|
|
|
$
|
—
|
|
Total
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
11
|
|
|
$
|
—
|
|
Note 6.
|
Derivative Instruments and Hedging Activities (Continued)
|
|
|
|
Three months ended
|
||||||
|
Consolidated Statement of
Earnings Locations
|
|
March 31,
|
||||||
|
|
2017
|
|
2016
|
|||||
|
|
|
(In millions)
|
||||||
Effective amounts recognized in earnings
|
|
|
|
|
|
||||
Foreign Currency Contracts
|
Other income/expense – net
|
|
$
|
(2
|
)
|
|
$
|
(14
|
)
|
Commodity Contracts
|
Revenues
|
|
(1
|
)
|
|
1
|
|
||
|
Cost of products sold
|
|
1
|
|
|
(19
|
)
|
||
Ineffective amount recognized in earnings
|
|
|
|
|
|
||||
Commodity Contracts
|
Revenues
|
|
4
|
|
|
2
|
|
||
|
Cost of products sold
|
|
5
|
|
|
2
|
|
||
Total amount recognized in earnings
|
|
|
$
|
7
|
|
|
$
|
(28
|
)
|
|
|
|
|
|
|
Note 7.
|
Marketable Securities
|
|
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
(In millions)
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
March 31, 2017
|
|
|
|
|
|
|
|
||||||||
United States government obligations
|
|
|
|
|
|
|
|
||||||||
Maturity less than 1 year
|
$
|
258
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
258
|
|
Maturity 1 to 5 years
|
115
|
|
|
—
|
|
|
(1
|
)
|
|
114
|
|
||||
Corporate debt securities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Maturity less than 1 year
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||
Maturity 1 to 5 years
|
82
|
|
|
—
|
|
|
—
|
|
|
82
|
|
||||
Other debt securities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Maturity less than 1 year
|
12
|
|
|
—
|
|
|
—
|
|
|
12
|
|
||||
|
$
|
469
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
468
|
|
|
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
(In millions)
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
December 31, 2016
|
|
|
|
|
|
|
|
||||||||
United States government obligations
|
|
|
|
|
|
|
|
||||||||
Maturity less than 1 year
|
$
|
287
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
287
|
|
Maturity 1 to 5 years
|
121
|
|
|
—
|
|
|
(1
|
)
|
|
120
|
|
||||
Corporate debt securities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Maturity less than 1 year
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Maturity 1 to 5 years
|
66
|
|
|
—
|
|
|
—
|
|
|
66
|
|
||||
Other debt securities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Maturity less than 1 year
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
||||
Equity securities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Available-for-sale
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
|
$
|
484
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
483
|
|
|
March 31,
|
|
December 31,
|
||||
|
2017
|
|
2016
|
||||
|
(In millions)
|
||||||
|
|
|
|
||||
Unrealized gains on derivative contracts
|
$
|
664
|
|
|
$
|
624
|
|
Deferred receivables consideration
|
298
|
|
|
540
|
|
||
Customer omnibus receivable
|
474
|
|
|
521
|
|
||
Financing receivables - net
(1)
|
363
|
|
|
373
|
|
||
Insurance premiums receivable
|
617
|
|
|
648
|
|
||
Prepaid expenses
|
214
|
|
|
268
|
|
||
Tax receivables
|
401
|
|
|
480
|
|
||
Non-trade receivables
(2)
|
589
|
|
|
478
|
|
||
Other current assets
|
321
|
|
|
451
|
|
||
|
$
|
3,941
|
|
|
$
|
4,383
|
|
|
March 31,
|
|
December 31,
|
||||
|
2017
|
|
2016
|
||||
|
(In millions)
|
||||||
|
|
|
|
||||
Unrealized losses on derivative contracts
|
$
|
574
|
|
|
$
|
651
|
|
Reinsurance premiums payable
|
457
|
|
|
479
|
|
||
Insurance claims payables
|
427
|
|
|
373
|
|
||
Deferred income
|
635
|
|
|
1,065
|
|
||
Other accruals and payable
|
1,369
|
|
|
1,414
|
|
||
|
$
|
3,462
|
|
|
$
|
3,982
|
|
Note 10.
|
Debt and Financing Arrangements
|
Note 11.
|
Income Taxes
|
|
Three months ended March 31, 2017
|
||||||||||||||||||
|
Foreign Currency Translation Adjustment
|
|
Deferred Gain (Loss) on Hedging Activities
|
|
Pension Liability Adjustment
|
|
Unrealized Gain (Loss) on Investments
|
|
Total
|
||||||||||
|
(In millions)
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at December 31, 2016
|
$
|
(2,102
|
)
|
|
$
|
6
|
|
|
$
|
(521
|
)
|
|
$
|
19
|
|
|
$
|
(2,598
|
)
|
Other comprehensive income (loss) before reclassifications
|
21
|
|
|
1
|
|
|
(3
|
)
|
|
(6
|
)
|
|
13
|
|
|||||
Amounts reclassified from AOCI
|
—
|
|
|
2
|
|
|
15
|
|
|
—
|
|
|
17
|
|
|||||
Tax effect
|
3
|
|
|
(3
|
)
|
|
(6
|
)
|
|
—
|
|
|
(6
|
)
|
|||||
Net current period other comprehensive income
|
24
|
|
|
—
|
|
|
6
|
|
|
(6
|
)
|
|
24
|
|
|||||
Balance at March 31, 2017
|
$
|
(2,078
|
)
|
|
$
|
6
|
|
|
$
|
(515
|
)
|
|
$
|
13
|
|
|
$
|
(2,574
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount reclassified from AOCI
|
|
|||||||
|
|
Three months ended
|
|
|
||||||
Details about AOCI components
|
|
March 31,
2017 |
|
March 31,
2016 |
|
Affected line item in the consolidated statement of earnings
|
||||
|
|
(In millions)
|
|
|
||||||
|
|
|
|
|
|
|
||||
Deferred loss (gain) on hedging activities
|
|
|
|
|
|
|
||||
|
|
$
|
(1
|
)
|
|
$
|
19
|
|
|
Cost of products sold
|
|
|
2
|
|
|
14
|
|
|
Other income/expense
|
||
|
|
1
|
|
|
(1
|
)
|
|
Revenues
|
||
|
|
2
|
|
|
32
|
|
|
Total before tax
|
||
|
|
(1
|
)
|
|
(11
|
)
|
|
Tax
|
||
|
|
$
|
1
|
|
|
$
|
21
|
|
|
Net of tax
|
|
|
|
|
|
|
|
||||
Pension liability adjustment
|
|
|
|
|
|
|
||||
Amortization of defined benefit pension items:
|
|
|
|
|
|
|
||||
Prior service credit
|
|
$
|
(3
|
)
|
|
$
|
(4
|
)
|
|
Selling, general, and administrative expenses
|
Actuarial losses
|
|
18
|
|
|
14
|
|
|
Selling, general, and administrative expenses
|
||
|
|
15
|
|
|
10
|
|
|
Total before tax
|
||
|
|
(6
|
)
|
|
(1
|
)
|
|
Tax
|
||
|
|
$
|
9
|
|
|
$
|
9
|
|
|
Net of tax
|
Note 13.
|
Other (Income) Expense - Net
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2017
|
|
2016
|
||||
|
(In millions)
|
||||||
Gains on sales of assets
|
$
|
(16
|
)
|
|
$
|
(3
|
)
|
Other – net
|
9
|
|
|
3
|
|
||
Other (Income) Expense - Net
|
$
|
(7
|
)
|
|
$
|
—
|
|
Note 14.
|
Segment Information (Continued)
|
Note 14.
|
Segment Information (Continued)
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
(In millions)
|
2017
|
|
2016
|
||||
Gross revenues
|
|
|
|
||||
Agricultural Services
|
$
|
7,311
|
|
|
$
|
6,863
|
|
Corn Processing
|
2,259
|
|
|
2,220
|
|
||
Oilseeds Processing
|
6,589
|
|
|
6,092
|
|
||
Wild Flavors and Specialty Ingredients
|
566
|
|
|
596
|
|
||
Other
|
136
|
|
|
158
|
|
||
Intersegment elimination
|
(1,873
|
)
|
|
(1,545
|
)
|
||
Total gross revenues
|
$
|
14,988
|
|
|
$
|
14,384
|
|
|
|
|
|
||||
Intersegment sales
|
|
|
|
|
|
||
Agricultural Services
|
$
|
505
|
|
|
$
|
383
|
|
Corn Processing
|
15
|
|
|
13
|
|
||
Oilseeds Processing
|
1,307
|
|
|
1,095
|
|
||
Wild Flavors and Specialty Ingredients
|
4
|
|
|
4
|
|
||
Other
|
42
|
|
|
50
|
|
||
Total intersegment sales
|
$
|
1,873
|
|
|
$
|
1,545
|
|
|
|
|
|
||||
Revenues from external customers
|
|
|
|
|
|
||
Agricultural Services
|
|
|
|
||||
Merchandising and Handling
|
$
|
6,070
|
|
|
$
|
5,679
|
|
Milling and Other
|
686
|
|
|
746
|
|
||
Transportation
|
50
|
|
|
55
|
|
||
Total Agricultural Services
|
6,806
|
|
|
6,480
|
|
||
Corn Processing
|
|
|
|
||||
Sweeteners and Starches
|
1,028
|
|
|
967
|
|
||
Bioproducts
|
1,216
|
|
|
1,240
|
|
||
Total Corn Processing
|
2,244
|
|
|
2,207
|
|
||
Oilseeds Processing
|
|
|
|
||||
Crushing and Origination
|
3,274
|
|
|
3,106
|
|
||
Refining, Packaging, Biodiesel, and Other
|
1,945
|
|
|
1,769
|
|
||
Asia
|
63
|
|
|
122
|
|
||
Total Oilseeds Processing
|
5,282
|
|
|
4,997
|
|
||
|
|
|
|
||||
Wild Flavors and Specialty Ingredients
|
562
|
|
|
592
|
|
||
Total Wild Flavors and Specialty Ingredients
|
562
|
|
|
592
|
|
||
|
|
|
|
||||
Other - Financial
|
94
|
|
|
108
|
|
||
Total Other
|
94
|
|
|
108
|
|
||
Total revenues from external customers
|
$
|
14,988
|
|
|
$
|
14,384
|
|
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
Note 14.
|
Segment Information (Continued)
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
(In millions)
|
2017
|
|
2016
|
||||
Segment operating profit
|
|
|
|
||||
Agricultural Services
|
$
|
81
|
|
|
$
|
75
|
|
Corn Processing
|
177
|
|
|
131
|
|
||
Oilseeds Processing
|
313
|
|
|
260
|
|
||
Wild Flavors and Specialty Ingredients
|
75
|
|
|
70
|
|
||
Other
|
30
|
|
|
37
|
|
||
Total segment operating profit
|
676
|
|
|
573
|
|
||
Corporate
|
(218
|
)
|
|
(267
|
)
|
||
Earnings before income taxes
|
$
|
458
|
|
|
$
|
306
|
|
|
|
|
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
•
|
the acquisition in February 2017 of Crosswind Industries, Inc., an industry leader in the manufacture of contract and private label pet treats and foods, as well as specialty ingredients;
|
•
|
the acquisition in February 2017 of an
89%
ownership stake in Biopolis SL, a leading provider of microbial technology with a strong portfolio of novel food ingredients;
|
•
|
the construction of a new feed-premix facility in Xiangtan, China, which is expected to be completed in 2019;
|
•
|
the pending acquisition of Chamtor, a French producer of wheat-based sweeteners and starches; and
|
•
|
the sale in May 2017 of the Company's crop risk services business to Validus Holdings, a global group of insurance and reinsurance companies.
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
|
|
Three Months Ended
|
|
||||||
|
March 31,
|
|
|
|||||
(In thousands)
|
2017
|
|
2016
|
|
Change
|
|||
Oilseeds
|
8,819
|
|
|
8,281
|
|
|
538
|
|
Corn
|
5,544
|
|
|
5,742
|
|
|
(198
|
)
|
Total
|
14,363
|
|
|
14,023
|
|
|
340
|
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
|
|
Three Months Ended
|
|
|
||||||||
|
March 31,
|
|
|
||||||||
|
2017
|
|
2016
|
|
Change
|
||||||
|
(In millions)
|
||||||||||
Agricultural Services
|
|
|
|
|
|
||||||
Merchandising and Handling
|
$
|
6,070
|
|
|
$
|
5,679
|
|
|
$
|
391
|
|
Milling and Other
|
686
|
|
|
746
|
|
|
(60
|
)
|
|||
Transportation
|
50
|
|
|
55
|
|
|
(5
|
)
|
|||
Total Agricultural Services
|
6,806
|
|
|
6,480
|
|
|
326
|
|
|||
|
|
|
|
|
|
||||||
Corn Processing
|
|
|
|
|
|
|
|
|
|||
Sweeteners and Starches
|
1,028
|
|
|
967
|
|
|
61
|
|
|||
Bioproducts
|
1,216
|
|
|
1,240
|
|
|
(24
|
)
|
|||
Total Corn Processing
|
2,244
|
|
|
2,207
|
|
|
37
|
|
|||
|
|
|
|
|
|
||||||
Oilseeds Processing
|
|
|
|
|
|
|
|
|
|||
Crushing and Origination
|
3,274
|
|
|
3,106
|
|
|
168
|
|
|||
Refining, Packaging, Biodiesel, and Other
|
1,945
|
|
|
1,769
|
|
|
176
|
|
|||
Asia
|
63
|
|
|
122
|
|
|
(59
|
)
|
|||
Total Oilseeds Processing
|
5,282
|
|
|
4,997
|
|
|
285
|
|
|||
|
|
|
|
|
|
||||||
Wild Flavors and Specialty Ingredients
|
562
|
|
|
592
|
|
|
(30
|
)
|
|||
Total Wild Flavors and Specialty Ingredients
|
562
|
|
|
592
|
|
|
(30
|
)
|
|||
|
|
|
|
|
|
||||||
Other - Financial
|
94
|
|
|
108
|
|
|
(14
|
)
|
|||
Total Other
|
94
|
|
|
108
|
|
|
(14
|
)
|
|||
Total
|
$
|
14,988
|
|
|
$
|
14,384
|
|
|
$
|
604
|
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
|
|
Three Months Ended
|
|
|
||||||||
|
March 31,
|
|
|
||||||||
|
2017
|
|
2016
|
|
Change
|
||||||
|
(In millions)
|
||||||||||
Agricultural Services
|
|
|
|
|
|
||||||
Merchandising and Handling
|
$
|
13
|
|
|
$
|
23
|
|
|
$
|
(10
|
)
|
Milling and Other
|
44
|
|
|
48
|
|
|
(4
|
)
|
|||
Transportation
|
24
|
|
|
4
|
|
|
20
|
|
|||
Total Agricultural Services
|
81
|
|
|
75
|
|
|
6
|
|
|||
|
|
|
|
|
|
||||||
Corn Processing
|
|
|
|
|
|
|
|
|
|||
Sweeteners and Starches
|
162
|
|
|
143
|
|
|
19
|
|
|||
Bioproducts
|
15
|
|
|
(12
|
)
|
|
27
|
|
|||
Total Corn Processing
|
177
|
|
|
131
|
|
|
46
|
|
|||
|
|
|
|
|
|
||||||
Oilseeds Processing
|
|
|
|
|
|
|
|
|
|||
Crushing and Origination
|
119
|
|
|
119
|
|
|
—
|
|
|||
Refining, Packaging, Biodiesel, and Other
|
59
|
|
|
79
|
|
|
(20
|
)
|
|||
Asia
|
135
|
|
|
62
|
|
|
73
|
|
|||
Total Oilseeds Processing
|
313
|
|
|
260
|
|
|
53
|
|
|||
|
|
|
|
|
|
||||||
Wild Flavors and Specialty Ingredients
|
75
|
|
|
70
|
|
|
5
|
|
|||
Total Wild Flavors and Specialty Ingredients
|
75
|
|
|
70
|
|
|
5
|
|
|||
|
|
|
|
|
|
||||||
Other - Financial
|
30
|
|
|
37
|
|
|
(7
|
)
|
|||
Total Other
|
30
|
|
|
37
|
|
|
(7
|
)
|
|||
Total Segment Operating Profit
|
676
|
|
|
573
|
|
|
103
|
|
|||
Corporate
|
(218
|
)
|
|
(267
|
)
|
|
49
|
|
|||
Earnings Before Income Taxes
|
$
|
458
|
|
|
$
|
306
|
|
|
$
|
152
|
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
|
|
Three Months Ended
|
|
|
||||||||
|
March 31,
|
|
|
||||||||
|
2017
|
|
2016
|
|
Change
|
||||||
|
(In millions)
|
||||||||||
LIFO credit (charge)
|
$
|
13
|
|
|
$
|
(14
|
)
|
|
$
|
27
|
|
Interest expense - net
|
(79
|
)
|
|
(68
|
)
|
|
(11
|
)
|
|||
Unallocated corporate costs
|
(132
|
)
|
|
(105
|
)
|
|
(27
|
)
|
|||
Other charges
|
(1
|
)
|
|
(11
|
)
|
|
10
|
|
|||
Minority interest and other
|
(19
|
)
|
|
(69
|
)
|
|
50
|
|
|||
Total Corporate
|
$
|
(218
|
)
|
|
$
|
(267
|
)
|
|
$
|
49
|
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
|
|
Three months ended March 31,
|
||||||||||||||
|
2017
|
|
2016
|
||||||||||||
|
In millions
|
|
Per share
|
|
In millions
|
|
Per share
|
||||||||
Average number of shares outstanding - diluted
|
579
|
|
|
|
|
597
|
|
|
|
||||||
Net earnings and reported EPS (fully diluted)
|
$
|
339
|
|
|
$
|
0.59
|
|
|
$
|
230
|
|
|
$
|
0.39
|
|
Adjustments:
|
|
|
|
|
|
|
|
||||||||
LIFO charge (credit) - net of tax of $5 million in 2017 and $5 million and 2016
(1)
|
(8
|
)
|
|
(0.01
|
)
|
|
9
|
|
|
0.02
|
|
||||
Asset impairment and restructuring charges - net of tax of $2 million in 2017 and $5 million in 2016
(2)
|
8
|
|
|
0.01
|
|
|
8
|
|
|
0.01
|
|
||||
Certain discrete tax adjustments
|
4
|
|
|
0.01
|
|
|
—
|
|
|
—
|
|
||||
Total adjustments
|
4
|
|
|
0.01
|
|
|
17
|
|
|
0.03
|
|
||||
Adjusted net earnings and adjusted EPS
|
$
|
343
|
|
|
$
|
0.60
|
|
|
$
|
247
|
|
|
$
|
0.42
|
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
|
|
Three months ended March 31,
|
|
|
||||||||
(In millions)
|
2017
|
|
2016
|
|
Change
|
||||||
Earnings before income taxes
|
$
|
458
|
|
|
$
|
306
|
|
|
$
|
152
|
|
Interest expense
|
81
|
|
|
70
|
|
|
11
|
|
|||
Depreciation and amortization
|
225
|
|
|
229
|
|
|
(4
|
)
|
|||
LIFO
|
(13
|
)
|
|
14
|
|
|
(27
|
)
|
|||
Asset impairment and restructuring charges
|
10
|
|
|
13
|
|
|
(3
|
)
|
|||
Adjusted EBITDA
|
$
|
761
|
|
|
$
|
632
|
|
|
$
|
129
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
Agricultural Services
|
|
|
|
|
|
|
|
|
|||
Earnings before income taxes
|
$
|
81
|
|
|
$
|
75
|
|
|
$
|
6
|
|
Depreciation and amortization
|
49
|
|
|
51
|
|
|
(2
|
)
|
|||
Asset impairment and restructuring charges
|
7
|
|
|
1
|
|
|
6
|
|
|||
Agricultural Services Adjusted EBITDA
|
137
|
|
|
127
|
|
|
10
|
|
|||
Corn Processing
|
|
|
|
|
|
|
|
|
|||
Earnings before income taxes
|
177
|
|
|
131
|
|
|
46
|
|
|||
Depreciation and amortization
|
88
|
|
|
93
|
|
|
(5
|
)
|
|||
Asset impairment, restructuring, and settlement charges
|
1
|
|
|
—
|
|
|
1
|
|
|||
Corn Processing Adjusted EBITDA
|
266
|
|
|
224
|
|
|
42
|
|
|||
Oilseeds Processing
|
|
|
|
|
|
||||||
Earnings before income taxes
|
313
|
|
|
260
|
|
|
53
|
|
|||
Depreciation and amortization
|
49
|
|
|
48
|
|
|
1
|
|
|||
Asset impairment and restructuring charges
|
1
|
|
|
1
|
|
|
—
|
|
|||
Oilseeds Processing Adjusted EBITDA
|
363
|
|
|
309
|
|
|
54
|
|
|||
Wild Flavors and Specialty Ingredients
|
|
|
|
|
|
||||||
Earnings before income taxes
|
75
|
|
|
70
|
|
|
5
|
|
|||
Depreciation and amortization
|
24
|
|
|
22
|
|
|
2
|
|
|||
Wild Flavors and Specialty Ingredients Adjusted EBITDA
|
99
|
|
|
92
|
|
|
7
|
|
|||
Other - Financial
|
|
|
|
|
|
||||||
Earnings before income taxes
|
30
|
|
|
37
|
|
|
(7
|
)
|
|||
Interest expense
|
1
|
|
|
1
|
|
|
—
|
|
|||
Depreciation and amortization
|
1
|
|
|
1
|
|
|
—
|
|
|||
Other - Financial Adjusted EBITDA
|
32
|
|
|
39
|
|
|
(7
|
)
|
|||
Corporate
|
|
|
|
|
|
||||||
Earnings (losses) before income taxes
|
(218
|
)
|
|
(267
|
)
|
|
49
|
|
|||
Interest expense
|
80
|
|
|
69
|
|
|
11
|
|
|||
Depreciation and amortization
|
14
|
|
|
14
|
|
|
—
|
|
|||
LIFO
|
(13
|
)
|
|
14
|
|
|
(27
|
)
|
|||
Asset impairment and restructuring charges
|
1
|
|
|
11
|
|
|
(10
|
)
|
|||
Corporate Adjusted EBITDA
|
(136
|
)
|
|
(159
|
)
|
|
23
|
|
|||
Total Adjusted EBITDA
|
$
|
761
|
|
|
$
|
632
|
|
|
$
|
129
|
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
|
|
Three months ended
|
|
Year ended
|
||||||||||||
|
|
March 31, 2017
|
|
December 31, 2016
|
||||||||||||
Long/(Short)
(In millions)
|
|
Fair Value
|
|
Market Risk
|
|
Fair Value
|
|
Market Risk
|
||||||||
Highest position
|
|
$
|
394
|
|
|
$
|
39
|
|
|
$
|
876
|
|
|
$
|
88
|
|
Lowest position
|
|
(82
|
)
|
|
(8
|
)
|
|
(529
|
)
|
|
(53
|
)
|
||||
Average position
|
|
102
|
|
|
10
|
|
|
27
|
|
|
3
|
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 1A.
|
RISK FACTORS
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
Period
|
|
Total Number of Shares Purchased
(1)
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of a Publicly Announced Program
(2)
|
|
Number of Shares Remaining that May be Purchased Under the Program
(2)
|
|||||
January 1, 2017 to
|
|
|
|
|
|
|
|
|
|||||
January 31, 2017
|
|
1,394,257
|
|
|
$
|
44.911
|
|
|
1,394,257
|
|
|
29,943,652
|
|
|
|
|
|
|
|
|
|
|
|||||
February 1, 2017 to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
February 28, 2017
|
|
1,623,660
|
|
|
44.078
|
|
|
1,499,375
|
|
|
28,444,277
|
|
|
|
|
|
|
|
|
|
|
|
|||||
March 1, 2017 to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2017
|
|
2,639,622
|
|
|
45.201
|
|
|
2,639,622
|
|
|
25,804,655
|
|
|
Total
|
|
5,657,539
|
|
|
$
|
44.807
|
|
|
5,533,254
|
|
|
25,804,655
|
|
(1)
|
Total shares purchased represents those shares purchased in the open market as part of the Company’s publicly announced share repurchase program described below, shares received as payment for the exercise price of stock option exercises, and shares received as payment for the withholding taxes on vested restricted stock awards. During the three-month period ended
March 31, 2017
, there were
124,285
shares received as payments for the minimum withholding taxes on vested restricted stock awards. During the three-month period ended
March 31, 2017
, there were no shares received for the exercise price of stock option exercises.
|
(2)
|
On November 5, 2014, the Company’s Board of Directors approved a stock repurchase program authorizing the Company to repurchase up to 100,000,000 shares of the Company’s common stock during the period commencing January 1, 2015 and ending December 31, 2019.
|
ITEM 6.
|
EXHIBITS
|
(3)(i)
|
|
|
|
|
|
(3)(ii)
|
|
|
|
|
|
10.1
|
|
|
|
|
|
10.2
|
|
|
|
|
|
(12)
|
|
|
|
|
|
(31.1)
|
|
|
|
|
|
(31.2)
|
|
|
|
|
|
(32.1)
|
|
|
|
|
|
(32.2)
|
|
|
|
|
|
(101)
|
|
Interactive Data File
|
|
ARCHER-DANIELS-MIDLAND COMPANY
|
|
|
|
|
|
|
|
/s/ R. G. Young
|
|
R. G. Young
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
|
|
|
|
/s/ D. C. Findlay
|
|
D. C. Findlay
|
|
Senior Vice President, General Counsel, and Secretary
|
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
---|
DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
---|
No information found
Customers
Customer name | Ticker |
---|---|
Constellation Brands, Inc. | STZ |
The Kraft Heinz Company | KHC |
PepsiCo, Inc. | PEP |
UFP Industries, Inc. | UFPI |
ProShares Ultra 7-10 Year Treasury | UST |
Weyerhaeuser Company | WY |
Price
Yield
Owner | Position | Direct Shares | Indirect Shares |
---|