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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, |
||||||
|
2018
|
|
2017
|
||||
|
(In millions, except per share amounts)
|
||||||
|
|
|
|
||||
Revenues
|
$
|
15,526
|
|
|
$
|
14,988
|
|
Cost of products sold
|
14,637
|
|
|
14,116
|
|
||
Gross Profit
|
889
|
|
|
872
|
|
||
|
|
|
|
||||
Selling, general, and administrative expenses
|
513
|
|
|
516
|
|
||
Asset impairment, exit, and restructuring costs
|
16
|
|
|
10
|
|
||
Interest expense
|
91
|
|
|
81
|
|
||
Equity in (earnings) losses of unconsolidated affiliates
|
(147
|
)
|
|
(172
|
)
|
||
Interest income
|
(33
|
)
|
|
(23
|
)
|
||
Other (income) expense – net
|
(15
|
)
|
|
2
|
|
||
Earnings Before Income Taxes
|
464
|
|
|
458
|
|
||
|
|
|
|
||||
Income taxes
|
68
|
|
|
118
|
|
||
Net Earnings Including Noncontrolling Interests
|
396
|
|
|
340
|
|
||
|
|
|
|
||||
Less: Net earnings attributable to noncontrolling interests
|
3
|
|
|
1
|
|
||
|
|
|
|
||||
Net Earnings Attributable to Controlling Interests
|
$
|
393
|
|
|
$
|
339
|
|
|
|
|
|
||||
Average number of shares outstanding – basic
|
563
|
|
|
576
|
|
||
|
|
|
|
||||
Average number of shares outstanding – diluted
|
565
|
|
|
579
|
|
||
|
|
|
|
||||
Basic earnings per common share
|
$
|
0.70
|
|
|
$
|
0.59
|
|
|
|
|
|
||||
Diluted earnings per common share
|
$
|
0.70
|
|
|
$
|
0.59
|
|
|
|
|
|
||||
Dividends per common share
|
$
|
0.335
|
|
|
$
|
0.320
|
|
|
Three Months Ended
March 31, |
||||||
|
2018
|
|
2017
|
||||
|
(In millions)
|
||||||
|
|
|
|
||||
Net earnings including noncontrolling interests
|
$
|
396
|
|
|
$
|
340
|
|
Other comprehensive income (loss):
|
|
|
|
||||
Foreign currency translation adjustment
|
211
|
|
|
21
|
|
||
Tax effect
|
(3
|
)
|
|
3
|
|
||
Net of tax amount
|
208
|
|
|
24
|
|
||
|
|
|
|
||||
Pension and other postretirement benefit liabilities adjustment
|
2
|
|
|
12
|
|
||
Tax effect
|
(3
|
)
|
|
(6
|
)
|
||
Net of tax amount
|
(1
|
)
|
|
6
|
|
||
|
|
|
|
||||
Deferred gain (loss) on hedging activities
|
(25
|
)
|
|
3
|
|
||
Tax effect
|
6
|
|
|
(3
|
)
|
||
Net of tax amount
|
(19
|
)
|
|
—
|
|
||
|
|
|
|
||||
Unrealized gain (loss) on investments
|
(2
|
)
|
|
(6
|
)
|
||
Tax effect
|
—
|
|
|
—
|
|
||
Net of tax amount
|
(2
|
)
|
|
(6
|
)
|
||
Other comprehensive income (loss)
|
186
|
|
|
24
|
|
||
Comprehensive income (loss) including noncontrolling interests
|
582
|
|
|
364
|
|
||
|
|
|
|
||||
Less: Comprehensive income (loss) attributable to noncontrolling interests
|
3
|
|
|
1
|
|
||
|
|
|
|
||||
Comprehensive income (loss) attributable to controlling interests
|
$
|
579
|
|
|
$
|
363
|
|
(In millions)
|
March 31, 2018
|
|
December 31, 2017
|
||||
|
(Unaudited)
|
|
|
||||
Assets
|
|
|
|
||||
Current Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
797
|
|
|
$
|
804
|
|
Segregated cash and investments
|
4,408
|
|
|
4,826
|
|
||
Trade receivables
|
2,147
|
|
|
1,947
|
|
||
Inventories
|
9,820
|
|
|
9,173
|
|
||
Other current assets
|
3,734
|
|
|
3,175
|
|
||
Total Current Assets
|
20,906
|
|
|
19,925
|
|
||
|
|
|
|
||||
Investments and Other Assets
|
|
|
|
|
|
||
Investments in and advances to affiliates
|
5,151
|
|
|
5,088
|
|
||
Long-term marketable securities
|
91
|
|
|
92
|
|
||
Goodwill and other intangible assets
|
3,970
|
|
|
3,918
|
|
||
Other assets
|
859
|
|
|
802
|
|
||
Total Investments and Other Assets
|
10,071
|
|
|
9,900
|
|
||
|
|
|
|
||||
Property, Plant, and Equipment
|
|
|
|
|
|
||
Land
|
473
|
|
|
470
|
|
||
Buildings
|
5,098
|
|
|
5,043
|
|
||
Machinery and equipment
|
18,193
|
|
|
18,056
|
|
||
Construction in progress
|
1,216
|
|
|
1,224
|
|
||
|
24,980
|
|
|
24,793
|
|
||
Accumulated depreciation
|
(14,857
|
)
|
|
(14,655
|
)
|
||
Net Property, Plant, and Equipment
|
10,123
|
|
|
10,138
|
|
||
Total Assets
|
$
|
41,100
|
|
|
$
|
39,963
|
|
|
|
|
|
||||
Liabilities, Temporary Equity, and Shareholders’ Equity
|
|
|
|
|
|
||
Current Liabilities
|
|
|
|
|
|
||
Short-term debt
|
$
|
2,330
|
|
|
$
|
857
|
|
Trade payables
|
3,340
|
|
|
3,894
|
|
||
Payables to brokerage customers
|
4,567
|
|
|
4,973
|
|
||
Accrued expenses and other payables
|
3,035
|
|
|
2,833
|
|
||
Current maturities of long-term debt
|
13
|
|
|
13
|
|
||
Total Current Liabilities
|
13,285
|
|
|
12,570
|
|
||
|
|
|
|
||||
Long-Term Liabilities
|
|
|
|
|
|
||
Long-term debt
|
6,657
|
|
|
6,623
|
|
||
Deferred income taxes
|
1,037
|
|
|
1,053
|
|
||
Other
|
1,325
|
|
|
1,342
|
|
||
Total Long-Term Liabilities
|
9,019
|
|
|
9,018
|
|
||
|
|
|
|
||||
Temporary Equity - Redeemable noncontrolling interest
|
59
|
|
|
53
|
|
||
|
|
|
|
||||
Shareholders’ Equity
|
|
|
|
|
|
||
Common stock
|
2,428
|
|
|
2,398
|
|
||
Reinvested earnings
|
17,755
|
|
|
17,552
|
|
||
Accumulated other comprehensive income (loss)
|
(1,451
|
)
|
|
(1,637
|
)
|
||
Noncontrolling interests
|
5
|
|
|
9
|
|
||
Total Shareholders’ Equity
|
18,737
|
|
|
18,322
|
|
||
Total Liabilities, Temporary Equity, and Shareholders’ Equity
|
$
|
41,100
|
|
|
$
|
39,963
|
|
|
|
|
|
(In millions)
|
Three Months Ended
March 31, |
||||||
|
2018
|
|
2017
|
||||
Operating Activities
|
|
|
|
||||
Net earnings including noncontrolling interests
|
$
|
396
|
|
|
$
|
340
|
|
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities
|
|
|
|
|
|
||
Depreciation and amortization
|
235
|
|
|
225
|
|
||
Asset impairment charges
|
12
|
|
|
1
|
|
||
Deferred income taxes
|
(21
|
)
|
|
1
|
|
||
Equity in earnings of affiliates, net of dividends
|
(105
|
)
|
|
(140
|
)
|
||
Stock compensation expense
|
29
|
|
|
32
|
|
||
Pension and postretirement accruals (contributions), net
|
(26
|
)
|
|
11
|
|
||
Deferred cash flow hedges
|
(25
|
)
|
|
3
|
|
||
Gains on sales of assets and businesses/revaluation
|
(6
|
)
|
|
(16
|
)
|
||
Other – net
|
64
|
|
|
51
|
|
||
Changes in operating assets and liabilities
|
|
|
|
|
|
||
Segregated investments
|
308
|
|
|
101
|
|
||
Trade receivables
|
(185
|
)
|
|
169
|
|
||
Inventories
|
(600
|
)
|
|
222
|
|
||
Deferred consideration in securitized receivables
|
(2,450
|
)
|
|
(2,185
|
)
|
||
Other current assets
|
(432
|
)
|
|
143
|
|
||
Trade payables
|
(567
|
)
|
|
(209
|
)
|
||
Payables to brokerage customers
|
(432
|
)
|
|
303
|
|
||
Accrued expenses and other payables
|
231
|
|
|
(541
|
)
|
||
Total Operating Activities
|
(3,574
|
)
|
|
(1,489
|
)
|
||
|
|
|
|
||||
Investing Activities
|
|
|
|
|
|
||
Purchases of property, plant, and equipment
|
(196
|
)
|
|
(200
|
)
|
||
Proceeds from sales of business and assets
|
14
|
|
|
25
|
|
||
Net assets of businesses acquired
|
—
|
|
|
(90
|
)
|
||
Purchases of marketable securities
|
—
|
|
|
(148
|
)
|
||
Proceeds from sales of marketable securities
|
—
|
|
|
220
|
|
||
Investments in and advances to affiliates
|
—
|
|
|
(185
|
)
|
||
Investments in retained interest in securitized receivables
|
(1,298
|
)
|
|
(881
|
)
|
||
Proceeds from retained interest in securitized receivables
|
3,656
|
|
|
3,310
|
|
||
Other – net
|
4
|
|
|
(3
|
)
|
||
Total Investing Activities
|
2,180
|
|
|
2,048
|
|
||
|
|
|
|
||||
Financing Activities
|
|
|
|
|
|
||
Long-term debt payments
|
(1
|
)
|
|
(2
|
)
|
||
Net borrowings (payments) under lines of credit agreements
|
1,474
|
|
|
263
|
|
||
Share repurchases
|
—
|
|
|
(248
|
)
|
||
Cash dividends
|
(190
|
)
|
|
(183
|
)
|
||
Other – net
|
(6
|
)
|
|
(10
|
)
|
||
Total Financing Activities
|
1,277
|
|
|
(180
|
)
|
||
|
|
|
|
||||
Increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents
|
(117
|
)
|
|
379
|
|
||
Cash, cash equivalents, restricted cash, and restricted cash equivalents - beginning of period
|
1,858
|
|
|
1,561
|
|
||
Cash, cash equivalents, restricted cash, and restricted cash equivalents - end of period
|
$
|
1,741
|
|
|
$
|
1,940
|
|
|
|
|
|
||||
Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents to the consolidated balance sheets
|
|
|
|
||||
|
|
|
|
||||
Cash and cash equivalents
|
$
|
797
|
|
|
$
|
476
|
|
Restricted cash and restricted cash equivalents included in segregated cash and investments
|
944
|
|
|
1,464
|
|
||
Total cash, cash equivalents, restricted cash, and restricted cash equivalents
|
$
|
1,741
|
|
|
$
|
1,940
|
|
|
|
|
|
||||
Supplemental Disclosure of Noncash Investing Activity:
|
|
|
|
||||
Retained interest in securitized receivables
|
$
|
2,368
|
|
|
$
|
2,114
|
|
|
Common Stock
|
|
Reinvested
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Noncontrolling
Interests
|
|
Total
Shareholders’
Equity
|
|||||||||||||
|
Shares
|
|
Amount
|
|
|
|
|
|||||||||||||||
|
(In millions)
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, December 31, 2017
|
557
|
|
|
$
|
2,398
|
|
|
$
|
17,552
|
|
|
$
|
(1,637
|
)
|
|
$
|
9
|
|
|
$
|
18,322
|
|
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net earnings
|
|
|
|
|
|
393
|
|
|
|
|
|
3
|
|
|
|
|
||||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
186
|
|
|
—
|
|
|
|
|
|||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
582
|
|
|||||
Dividends paid - $0.335 per share
|
|
|
|
|
|
|
(190
|
)
|
|
|
|
|
|
|
|
(190
|
)
|
|||||
Stock compensation expense
|
2
|
|
|
29
|
|
|
|
|
|
|
|
|
|
|
|
29
|
|
|||||
Other
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
(6
|
)
|
|||||
Balance, March 31, 2018
|
559
|
|
|
$
|
2,428
|
|
|
$
|
17,755
|
|
|
$
|
(1,451
|
)
|
|
$
|
5
|
|
|
$
|
18,737
|
|
Note 1.
|
Basis of Presentation
|
Note 1.
|
Basis of Presentation (Continued)
|
Note 2.
|
New Accounting Standards
|
Note 2.
|
New Accounting Standards (Continued)
|
Note 3.
|
Pending Accounting Standards
|
Note 4.
|
Revenues
|
Note 4.
|
Revenues (Continued)
|
|
Topic 606 Revenue
|
Topic 815
(1)
|
Total
|
||||||||||||
|
Point in Time
|
Over Time
|
Total
|
Revenue
|
Revenues
|
||||||||||
Origination
|
|
|
|
|
|
||||||||||
Merchandising and Handling
|
$
|
619
|
|
$
|
62
|
|
$
|
681
|
|
$
|
5,479
|
|
$
|
6,160
|
|
Transportation
|
—
|
|
55
|
|
55
|
|
—
|
|
55
|
|
|||||
Total Origination
|
619
|
|
117
|
|
736
|
|
5,479
|
|
6,215
|
|
|||||
Oilseeds
|
|
|
|
|
|
||||||||||
Crushing and Origination
|
186
|
|
—
|
|
186
|
|
3,424
|
|
3,610
|
|
|||||
Refining, Packaging, Biodiesel, and Other
|
558
|
|
—
|
|
558
|
|
1,465
|
|
2,023
|
|
|||||
Total Oilseeds
|
744
|
|
—
|
|
744
|
|
4,889
|
|
5,633
|
|
|||||
Carbohydrate Solutions
|
|
|
|
|
|
||||||||||
Starches and Sweeteners
|
1,638
|
|
—
|
|
1,638
|
|
—
|
|
1,638
|
|
|||||
Bioproducts
|
984
|
|
—
|
|
984
|
|
—
|
|
984
|
|
|||||
Total Carbohydrate Solutions
|
2,622
|
|
—
|
|
2,622
|
|
—
|
|
2,622
|
|
|||||
Nutrition
|
|
|
|
|
|
||||||||||
Wild Flavors and Specialty Ingredients
|
636
|
|
—
|
|
636
|
|
—
|
|
636
|
|
|||||
Animal Nutrition
|
314
|
|
—
|
|
314
|
|
—
|
|
314
|
|
|||||
Total Nutrition
|
950
|
|
—
|
|
950
|
|
—
|
|
950
|
|
|||||
|
|
|
|
|
|
||||||||||
Other
|
106
|
|
—
|
|
106
|
|
—
|
|
106
|
|
|||||
Total Revenues
|
$
|
5,041
|
|
$
|
117
|
|
$
|
5,158
|
|
$
|
10,368
|
|
$
|
15,526
|
|
Note 4.
|
Revenues (Continued)
|
Note 4.
|
Revenues (Continued)
|
|
January 1, 2018
|
|
March 31, 2018
|
||||||||||
|
After Adoption
|
|
As
|
Under
|
Effect of
|
||||||||
|
of Topic 606
|
|
Reported
|
Topic 605
|
Change
|
||||||||
|
(In millions)
|
||||||||||||
Assets
|
|
|
|
|
|
||||||||
Trade receivables
|
$
|
2,343
|
|
|
$
|
2,147
|
|
$
|
1,752
|
|
$
|
395
|
|
Inventories
|
8,770
|
|
|
9,820
|
|
10,212
|
|
(392
|
)
|
||||
Total Current Assets
|
19,918
|
|
|
20,906
|
|
20,903
|
|
3
|
|
||||
Total Assets
|
$
|
39,956
|
|
|
$
|
41,100
|
|
$
|
41,097
|
|
$
|
3
|
|
Liabilities, Temporary Equity, and Shareholders’ Equity
|
|
|
|
|
|
||||||||
Accrued expenses and other payables
|
$
|
2,826
|
|
|
$
|
3,035
|
|
$
|
3,035
|
|
$
|
—
|
|
Total Current Liabilities
|
12,563
|
|
|
13,285
|
|
13,285
|
|
—
|
|
||||
Reinvested earnings
|
17,552
|
|
|
17,755
|
|
17,752
|
|
3
|
|
||||
Total Shareholders’ Equity
|
18,322
|
|
|
18,737
|
|
18,734
|
|
3
|
|
||||
Total Liabilities, Temporary Equity, and Shareholders’ Equity
|
$
|
39,956
|
|
|
$
|
41,100
|
|
$
|
41,097
|
|
$
|
3
|
|
|
|
Without
|
|
||||||
|
As
|
Adoption of
|
Effect of
|
||||||
|
Reported
|
Topic 606
|
Change
|
||||||
|
(In millions)
|
||||||||
Revenues
|
$
|
15,526
|
|
$
|
15,536
|
|
$
|
(10
|
)
|
Cost of products sold
|
14,637
|
|
14,652
|
|
(15
|
)
|
|||
Gross profit
|
889
|
|
884
|
|
5
|
|
|||
Earnings before income taxes
|
464
|
|
459
|
|
5
|
|
|||
Income taxes
|
68
|
|
66
|
|
2
|
|
|||
Net earnings including noncontrolling interests
|
396
|
|
393
|
|
3
|
|
|||
Net earnings attributable to controlling interests
|
$
|
393
|
|
$
|
390
|
|
$
|
3
|
|
Note 5.
|
Fair Value Measurements
|
|
Fair Value Measurements at March 31, 2018
|
||||||||||||||
|
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
|
$
|
—
|
|
|
$
|
3,563
|
|
|
$
|
1,829
|
|
|
$
|
5,392
|
|
Unrealized derivative gains:
|
|
|
|
|
|
|
|
||||||||
Commodity contracts
|
—
|
|
|
471
|
|
|
116
|
|
|
587
|
|
||||
Foreign currency contracts
|
—
|
|
|
47
|
|
|
—
|
|
|
47
|
|
||||
Cash equivalents
|
443
|
|
|
—
|
|
|
—
|
|
|
443
|
|
||||
Marketable securities
|
89
|
|
|
1
|
|
|
—
|
|
|
90
|
|
||||
Segregated investments
|
2,077
|
|
|
—
|
|
|
—
|
|
|
2,077
|
|
||||
Deferred receivables consideration
|
—
|
|
|
399
|
|
|
—
|
|
|
399
|
|
||||
Total Assets
|
$
|
2,609
|
|
|
$
|
4,481
|
|
|
$
|
1,945
|
|
|
$
|
9,035
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Unrealized derivative losses:
|
|
|
|
|
|
|
|
||||||||
Commodity contracts
|
$
|
—
|
|
|
$
|
449
|
|
|
$
|
291
|
|
|
$
|
740
|
|
Foreign currency contracts
|
—
|
|
|
106
|
|
|
—
|
|
|
106
|
|
||||
Interest rate contracts
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Inventory-related payables
|
—
|
|
|
1,102
|
|
|
75
|
|
|
1,177
|
|
||||
Total Liabilities
|
$
|
—
|
|
|
$
|
1,658
|
|
|
$
|
366
|
|
|
$
|
2,024
|
|
Note 5.
|
Fair Value Measurements (Continued)
|
|
Fair Value Measurements at December 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
|
$
|
—
|
|
|
$
|
3,400
|
|
|
$
|
1,486
|
|
|
$
|
4,886
|
|
Unrealized derivative gains:
|
|
|
|
|
|
|
|
||||||||
Commodity contracts
|
—
|
|
|
275
|
|
|
111
|
|
|
386
|
|
||||
Foreign currency contracts
|
—
|
|
|
63
|
|
|
—
|
|
|
63
|
|
||||
Cash equivalents
|
352
|
|
|
—
|
|
|
—
|
|
|
352
|
|
||||
Marketable securities
|
91
|
|
|
1
|
|
|
—
|
|
|
92
|
|
||||
Segregated investments
|
1,733
|
|
|
—
|
|
|
—
|
|
|
1,733
|
|
||||
Deferred receivables consideration
|
—
|
|
|
307
|
|
|
—
|
|
|
307
|
|
||||
Total Assets
|
$
|
2,176
|
|
|
$
|
4,046
|
|
|
$
|
1,597
|
|
|
$
|
7,819
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Unrealized derivative losses:
|
|
|
|
|
|
|
|
||||||||
Commodity contracts
|
$
|
—
|
|
|
$
|
268
|
|
|
$
|
103
|
|
|
$
|
371
|
|
Foreign currency contracts
|
—
|
|
|
92
|
|
|
—
|
|
|
92
|
|
||||
Interest rate contracts
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Inventory-related payables
|
—
|
|
|
680
|
|
|
39
|
|
|
719
|
|
||||
Total Liabilities
|
$
|
—
|
|
|
$
|
1,041
|
|
|
$
|
142
|
|
|
$
|
1,183
|
|
Note 5.
|
Fair Value Measurements (Continued)
|
Note 5.
|
Fair Value Measurements (Continued)
|
|
Level 3 Fair Value Asset Measurements at
|
||||||||||
|
March 31, 2018
|
||||||||||
|
Inventories
Carried at
Market
|
|
Commodity
Derivative
Contracts
Gains
|
|
Total
Assets
|
||||||
|
(In millions)
|
||||||||||
|
|
|
|
|
|
||||||
Balance, December 31, 2017
|
$
|
1,486
|
|
|
$
|
111
|
|
|
$
|
1,597
|
|
Total increase (decrease) in net realized/unrealized gains included in cost of products sold*
|
173
|
|
|
47
|
|
|
220
|
|
|||
Purchases
|
2,239
|
|
|
—
|
|
|
2,239
|
|
|||
Sales
|
(2,150
|
)
|
|
—
|
|
|
(2,150
|
)
|
|||
Settlements
|
—
|
|
|
(66
|
)
|
|
(66
|
)
|
|||
Transfers into Level 3
|
187
|
|
|
28
|
|
|
215
|
|
|||
Transfers out of Level 3
|
(106
|
)
|
|
(4
|
)
|
|
(110
|
)
|
|||
Ending balance, March 31, 2018
|
$
|
1,829
|
|
|
$
|
116
|
|
|
$
|
1,945
|
|
|
Level 3 Fair Value Liability Measurements at
|
||||||||||
|
March 31, 2018
|
||||||||||
|
Inventory-
related
Payables
|
|
Commodity
Derivative
Contracts
Losses
|
|
Total
Liabilities
|
||||||
|
(In millions)
|
||||||||||
|
|
|
|
|
|
||||||
Balance, December 31, 2017
|
$
|
39
|
|
|
$
|
103
|
|
|
$
|
142
|
|
Total increase (decrease) in net realized/unrealized losses included in cost of products sold*
|
17
|
|
|
198
|
|
|
215
|
|
|||
Purchases
|
21
|
|
|
—
|
|
|
21
|
|
|||
Sales
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|||
Settlements
|
—
|
|
|
(57
|
)
|
|
(57
|
)
|
|||
Transfers into Level 3
|
—
|
|
|
65
|
|
|
65
|
|
|||
Transfers out of Level 3
|
—
|
|
|
(18
|
)
|
|
(18
|
)
|
|||
Ending balance, March 31, 2018
|
$
|
75
|
|
|
$
|
291
|
|
|
$
|
366
|
|
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)
|
|
Weighted Average % of Total Price
|
||||||||||
|
March 31, 2018
|
|
December 31, 2017
|
||||||||
Component Type
|
Assets
|
|
Liabilities
|
|
Assets
|
|
Liabilities
|
||||
Inventories and Related Payables
|
|
|
|
|
|
|
|
||||
Basis
|
20.3
|
%
|
|
177.8
|
%
|
|
12.8
|
%
|
|
99.9
|
%
|
Transportation cost
|
14.3
|
%
|
|
—
|
%
|
|
19.2
|
%
|
|
—
|
|
|
|
|
|
|
|
|
|
||||
Commodity Derivative Contracts
|
|
|
|
|
|
|
|
||||
Basis
|
19.0
|
%
|
|
21.6
|
%
|
|
24.2
|
%
|
|
23.0
|
%
|
Transportation cost
|
9.3
|
%
|
|
7.3
|
%
|
|
12.5
|
%
|
|
10.4
|
%
|
Note 6.
|
Derivative Instruments and Hedging Activities
|
|
March 31, 2018
|
|
December 31, 2017
|
||||||||||||
|
Assets
|
|
Liabilities
|
|
Assets
|
|
Liabilities
|
||||||||
|
(In millions)
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Foreign Currency Contracts
|
$
|
47
|
|
|
$
|
106
|
|
|
$
|
63
|
|
|
$
|
92
|
|
Commodity Contracts
|
587
|
|
|
740
|
|
|
386
|
|
|
371
|
|
||||
Total
|
$
|
634
|
|
|
$
|
846
|
|
|
$
|
449
|
|
|
$
|
463
|
|
|
|
|
Cost of products sold
|
|
Other expense - net
|
|
|
||||||||
(In millions)
|
Revenues
|
|
|
|
|
||||||||||
Three Months Ended March 31, 2018
|
|
|
|
|
|
|
|
||||||||
Consolidated Statement of Earnings
|
$
|
15,526
|
|
|
$
|
14,637
|
|
|
$
|
(15
|
)
|
|
|
||
|
|
|
|
|
|
|
|
||||||||
Pre-tax gains (losses) on:
|
|
|
|
|
|
|
|
||||||||
Foreign Currency Contracts
|
$
|
(3
|
)
|
|
$
|
(15
|
)
|
|
$
|
64
|
|
|
|
||
Commodity Contracts
|
—
|
|
|
(313
|
)
|
|
—
|
|
|
|
|||||
Total gain (loss) recognized in earnings
|
$
|
(3
|
)
|
|
$
|
(328
|
)
|
|
$
|
64
|
|
|
$
|
(267
|
)
|
|
|
|
|
|
|
|
|
||||||||
Three Months Ended March 31, 2017
|
|
|
|
|
|
|
|
||||||||
Consolidated Statement of Earnings
|
$
|
14,988
|
|
|
$
|
14,116
|
|
|
$
|
2
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||||
Pre-tax gains (losses) on:
|
|
|
|
|
|
|
|
||||||||
Foreign Currency Contracts
|
$
|
(11
|
)
|
|
$
|
60
|
|
|
$
|
1
|
|
|
|
||
Commodity Contracts
|
—
|
|
|
259
|
|
|
—
|
|
|
|
|||||
Total gain (loss) recognized in earnings
|
$
|
(11
|
)
|
|
$
|
319
|
|
|
$
|
1
|
|
|
$
|
309
|
|
|
|
|
|
|
|
|
|
Note 6.
|
Derivative Instruments and Hedging Activities (Continued)
|
|
|
|
|
|
March 31, 2018
|
|
December 31, 2017
|
||||||||||||
|
Assets
|
|
Liabilities
|
|
Assets
|
|
Liabilities
|
||||||||
|
(In millions)
|
||||||||||||||
Interest Rate Contracts
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
Total
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
Note 6.
|
Derivative Instruments and Hedging Activities (Continued)
|
|
|
|
Cost of products sold
|
|
Other expense - net
|
|
|
||||||||
(In millions)
|
Revenues
|
|
|
|
|
||||||||||
Three Months Ended March 31, 2018
|
|
|
|
|
|
||||||||||
Consolidated Statement of Earnings
|
$
|
15,526
|
|
|
$
|
14,637
|
|
|
$
|
(15
|
)
|
|
|
||
|
|
|
|
|
|
|
|
||||||||
Effective amounts recognized in earnings
|
|
|
|
|
|
|
|
||||||||
Pre-tax gains (losses) on:
|
|
|
|
|
|
|
|
||||||||
Commodity Contracts
|
$
|
2
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
|
||
Total gain (loss) recognized in earnings
|
$
|
2
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
|
|
|
|
|
|
|
||||||||
Three Months Ended March 31, 2017
|
|
|
|
|
|
|
|
||||||||
Consolidated Statement of Earnings
|
$
|
14,988
|
|
|
$
|
14,116
|
|
|
$
|
2
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||||
Effective amounts recognized in earnings
|
|
|
|
|
|
|
|
||||||||
Pre-tax gains (losses) on:
|
|
|
|
|
|
|
|
||||||||
Foreign Currency Contracts
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
|
||
Commodity Contracts
|
(1
|
)
|
|
1
|
|
|
$
|
—
|
|
|
|
||||
Ineffective amount recognized in earnings
|
|
|
|
|
|
|
|
||||||||
Commodity Contracts
|
4
|
|
|
5
|
|
|
$
|
—
|
|
|
|
||||
Total gain (loss) recognized in earnings
|
$
|
3
|
|
|
$
|
6
|
|
|
$
|
(2
|
)
|
|
$
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
||||
|
2018
|
|
2017
|
||||
|
(In millions)
|
||||||
|
|
|
|
||||
Unrealized gains on derivative contracts
|
$
|
634
|
|
|
$
|
449
|
|
Deferred receivables consideration
|
399
|
|
|
307
|
|
||
Customer omnibus receivable
|
496
|
|
|
477
|
|
||
Financing receivables - net
(1)
|
487
|
|
|
413
|
|
||
Insurance premiums receivable
|
132
|
|
|
129
|
|
||
Prepaid expenses
|
259
|
|
|
232
|
|
||
Tax receivables
|
585
|
|
|
425
|
|
||
Non-trade receivables
(2)
|
430
|
|
|
371
|
|
||
Other current assets
|
312
|
|
|
372
|
|
||
|
$
|
3,734
|
|
|
$
|
3,175
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
||||
|
2018
|
|
2017
|
||||
|
(In millions)
|
||||||
|
|
|
|
||||
Unrealized losses on derivative contracts
|
$
|
847
|
|
|
$
|
464
|
|
Accrued compensation
|
209
|
|
|
235
|
|
||
Income tax payable
|
183
|
|
|
140
|
|
||
Other taxes payable
|
98
|
|
|
99
|
|
||
Reinsurance premiums payable
|
95
|
|
|
111
|
|
||
Insurance claims payable
|
297
|
|
|
268
|
|
||
Contract liability
|
194
|
|
|
185
|
|
||
Other accruals and payables
|
1,112
|
|
|
1,331
|
|
||
|
$
|
3,035
|
|
|
$
|
2,833
|
|
Note 9.
|
Debt and Financing Arrangements
|
Note 10.
|
Income Taxes
|
|
Three months ended March 31, 2018
|
||||||||||||||||||
|
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, 2017
|
$
|
(1,353
|
)
|
|
$
|
17
|
|
|
$
|
(321
|
)
|
|
$
|
20
|
|
|
$
|
(1,637
|
)
|
Other comprehensive income (loss) before reclassifications
|
211
|
|
|
(17
|
)
|
|
(6
|
)
|
|
(2
|
)
|
|
186
|
|
|||||
Amounts reclassified from AOCI
|
—
|
|
|
(8
|
)
|
|
8
|
|
|
—
|
|
|
—
|
|
|||||
Tax effect
|
(3
|
)
|
|
6
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|||||
Net of tax amount
|
208
|
|
|
(19
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
186
|
|
|||||
Balance at March 31, 2018
|
$
|
(1,145
|
)
|
|
$
|
(2
|
)
|
|
$
|
(322
|
)
|
|
$
|
18
|
|
|
$
|
(1,451
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount reclassified from AOCI
|
|
|
||||||
|
|
Three months ended
|
|
|
||||||
Details about AOCI components
|
|
Mar 31
2018 |
|
Mar 31
2017 |
|
Affected line item in the consolidated statement of earnings
|
||||
|
|
(In millions)
|
|
|
||||||
Deferred loss (gain) on hedging activities
|
|
|
|
|
|
|
||||
|
|
$
|
(6
|
)
|
|
$
|
(1
|
)
|
|
Cost of products sold
|
|
|
—
|
|
|
2
|
|
|
Interest expense
|
||
|
|
(2
|
)
|
|
1
|
|
|
Revenues
|
||
|
|
(8
|
)
|
|
2
|
|
|
Total before tax
|
||
|
|
2
|
|
|
(1
|
)
|
|
Tax
|
||
|
|
$
|
(6
|
)
|
|
$
|
1
|
|
|
Net of tax
|
|
|
|
|
|
|
|
||||
Pension liability adjustment
|
|
|
|
|
|
|
||||
Amortization of defined benefit pension items:
|
|
|
|
|
|
|
||||
Prior service credit
|
|
$
|
(8
|
)
|
|
$
|
(3
|
)
|
|
Other (income) expense - net
|
Actuarial losses
|
|
16
|
|
|
18
|
|
|
Other (income) expense - net
|
||
|
|
8
|
|
|
15
|
|
|
Total before tax
|
||
|
|
(4
|
)
|
|
(6
|
)
|
|
Tax
|
||
|
|
$
|
4
|
|
|
$
|
9
|
|
|
Net of tax
|
|
|
|
|
|
|
|
Note 12.
|
Other (Income) Expense - Net
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(In millions)
|
||||||
|
|
|
|
||||
Gains on sales of assets
|
$
|
(6
|
)
|
|
$
|
(16
|
)
|
Other – net
|
(9
|
)
|
|
18
|
|
||
Other (Income) Expense - Net
|
$
|
(15
|
)
|
|
$
|
2
|
|
Note 13.
|
Segment Information (Continued)
|
Note 13.
|
Segment Information (Continued)
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
(In millions)
|
2018
|
|
2017
|
||||
Gross revenues
|
|
|
|
||||
Origination
|
$
|
7,127
|
|
|
$
|
7,352
|
|
Oilseeds
|
6,866
|
|
|
6,082
|
|
||
Carbohydrate Solutions
|
2,833
|
|
|
2,869
|
|
||
Nutrition
|
958
|
|
|
860
|
|
||
Other
|
106
|
|
|
94
|
|
||
Intersegment elimination
|
(2,364
|
)
|
|
(2,269
|
)
|
||
Total gross revenues
|
$
|
15,526
|
|
|
$
|
14,988
|
|
|
|
|
|
||||
Intersegment sales
|
|
|
|
|
|
||
Origination
|
$
|
912
|
|
|
$
|
1,049
|
|
Oilseeds
|
1,233
|
|
|
856
|
|
||
Carbohydrate Solutions
|
211
|
|
|
359
|
|
||
Nutrition
|
8
|
|
|
5
|
|
||
Total intersegment sales
|
$
|
2,364
|
|
|
$
|
2,269
|
|
|
|
|
|
||||
Revenues from external customers
|
|
|
|
|
|
||
Origination
|
|
|
|
||||
Merchandising and Handling
|
$
|
6,160
|
|
|
$
|
6,253
|
|
Transportation
|
55
|
|
|
50
|
|
||
Total Origination
|
6,215
|
|
|
6,303
|
|
||
Oilseeds
|
|
|
|
||||
Crushing and Origination
|
3,610
|
|
|
3,293
|
|
||
Refining, Packaging, Biodiesel, and Other
|
2,023
|
|
|
1,933
|
|
||
Total Oilseeds
|
5,633
|
|
|
5,226
|
|
||
Carbohydrate Solutions
|
|
|
|
||||
Starches and Sweeteners
|
1,638
|
|
|
1,575
|
|
||
Bioproducts
|
984
|
|
|
935
|
|
||
Total Carbohydrate Solutions
|
2,622
|
|
|
2,510
|
|
||
Nutrition
|
|
|
|
||||
Wild Flavors and Specialty Ingredients
|
636
|
|
|
574
|
|
||
Animal Nutrition
|
314
|
|
|
281
|
|
||
Total Nutrition
|
950
|
|
|
855
|
|
||
|
|
|
|
||||
Other
|
106
|
|
|
94
|
|
||
Total revenues from external customers
|
$
|
15,526
|
|
|
$
|
14,988
|
|
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
Note 13.
|
Segment Information (Continued)
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
(In millions)
|
2018
|
|
2017
|
||||
Segment operating profit
|
|
|
|
||||
Origination
|
$
|
45
|
|
|
$
|
47
|
|
Oilseeds
|
350
|
|
|
313
|
|
||
Carbohydrate Solutions
|
213
|
|
|
211
|
|
||
Nutrition
|
96
|
|
|
77
|
|
||
Other
|
13
|
|
|
30
|
|
||
Specified Items:
|
|
|
|
||||
Asset impairment and restructuring charges
(1)
|
(13
|
)
|
|
(9
|
)
|
||
Hedge timing effects
(2)
|
—
|
|
|
7
|
|
||
Total segment operating profit
|
704
|
|
|
676
|
|
||
Corporate
|
(240
|
)
|
|
(218
|
)
|
||
Earnings before income taxes
|
$
|
464
|
|
|
$
|
458
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
||||
(In millions)
|
2018
|
|
2017
|
||||
Identifiable Assets
|
|
|
|
||||
Origination
|
$
|
7,990
|
|
|
$
|
8,311
|
|
Oilseeds
|
13,831
|
|
|
11,835
|
|
||
Carbohydrate Solutions
|
6,108
|
|
|
6,242
|
|
||
Nutrition
|
5,644
|
|
|
5,568
|
|
||
Other
|
5,311
|
|
|
5,658
|
|
||
Corporate
|
2,216
|
|
|
2,349
|
|
||
Total Identifiable Assets
|
$
|
41,100
|
|
|
$
|
39,963
|
|
|
|
|
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
•
|
the announcement in December 2017 of the sale of the Company’s oilseeds operations in Bolivia to Inversiones Piuranas S.A., which is subject to regulatory approvals and is expected to close in the first half of 2018;
|
•
|
the announcement in January 2018 of a joint development agreement with Vland Biotech to develop and commercialize enzymes for animal feed;
|
•
|
the announcement in February 2018 of an agreement with Cargill to launch a joint venture to provide soybean meal and oil for customers in Egypt. The deal, which is not yet complete, is subject to regulatory review. The companies hope to formally launch the joint venture in mid-2018; and
|
•
|
the announcement in March 2018 of an agreement to acquire a
50%
equity stake in the sweeteners and starches business of Russia-based Aston Foods and Food Ingredients, which is subject to regulatory approval and is expected to close in the second quarter of 2018.
|
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,
|
|
|
|||||
(In thousands)
|
2018
|
|
2017
|
|
Change
|
|||
Oilseeds
|
9,047
|
|
|
8,819
|
|
|
228
|
|
Corn
|
5,591
|
|
|
5,544
|
|
|
47
|
|
Total
|
14,638
|
|
|
14,363
|
|
|
275
|
|
|
Three Months Ended
|
|
|
||||||||
|
March 31,
|
|
|
||||||||
|
2018
|
|
2017
|
|
Change
|
||||||
|
(In millions)
|
||||||||||
Origination
|
|
|
|
|
|
||||||
Merchandising and Handling
|
$
|
6,160
|
|
|
$
|
6,253
|
|
|
$
|
(93
|
)
|
Transportation
|
55
|
|
|
50
|
|
|
5
|
|
|||
Total Origination
|
6,215
|
|
|
6,303
|
|
|
(88
|
)
|
|||
|
|
|
|
|
|
||||||
Oilseeds
|
|
|
|
|
|
|
|
|
|||
Crushing and Origination
|
3,610
|
|
|
3,293
|
|
|
317
|
|
|||
Refining, Packaging, Biodiesel, and Other
|
2,023
|
|
|
1,933
|
|
|
90
|
|
|||
Total Oilseeds
|
5,633
|
|
|
5,226
|
|
|
407
|
|
|||
|
|
|
|
|
|
||||||
Carbohydrate Solutions
|
|
|
|
|
|
|
|
|
|||
Starches and Sweeteners
|
1,638
|
|
|
1,575
|
|
|
63
|
|
|||
Bioproducts
|
984
|
|
|
935
|
|
|
49
|
|
|||
Total Carbohydrate Solutions
|
2,622
|
|
|
2,510
|
|
|
112
|
|
|||
|
|
|
|
|
|
||||||
Nutrition
|
|
|
|
|
|
||||||
Wild Flavors and Specialty Ingredients
|
636
|
|
|
574
|
|
|
62
|
|
|||
Animal Nutrition
|
314
|
|
|
281
|
|
|
33
|
|
|||
Total Nutrition
|
950
|
|
|
855
|
|
|
95
|
|
|||
|
|
|
|
|
|
||||||
Other
|
106
|
|
|
94
|
|
|
12
|
|
|||
Total
|
$
|
15,526
|
|
|
$
|
14,988
|
|
|
$
|
538
|
|
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,
|
|
|
||||||||
Segment Operating Profit
|
2018
|
|
2017
|
|
Change
|
||||||
|
(In millions)
|
||||||||||
Origination
|
|
|
|
|
|
||||||
Merchandising and Handling
|
$
|
42
|
|
|
$
|
23
|
|
|
$
|
19
|
|
Transportation
|
3
|
|
|
24
|
|
|
(21
|
)
|
|||
Total Origination
|
45
|
|
|
47
|
|
|
(2
|
)
|
|||
|
|
|
|
|
|
||||||
Oilseeds
|
|
|
|
|
|
|
|
|
|||
Crushing and Origination
|
68
|
|
|
121
|
|
|
(53
|
)
|
|||
Refining, Packaging, Biodiesel, and Other
|
173
|
|
|
57
|
|
|
116
|
|
|||
Asia
|
109
|
|
|
135
|
|
|
(26
|
)
|
|||
Total Oilseeds
|
350
|
|
|
313
|
|
|
37
|
|
|||
|
|
|
|
|
|
||||||
Carbohydrate Solutions
|
|
|
|
|
|
|
|
|
|||
Starches and Sweeteners
|
216
|
|
|
201
|
|
|
15
|
|
|||
Bioproducts
|
(3
|
)
|
|
10
|
|
|
(13
|
)
|
|||
Total Carbohydrate Solutions
|
213
|
|
|
211
|
|
|
2
|
|
|||
|
|
|
|
|
|
||||||
Nutrition
|
|
|
|
|
|
||||||
Wild Flavors and Specialty Ingredients
|
73
|
|
|
73
|
|
|
—
|
|
|||
Animal Nutrition
|
23
|
|
|
4
|
|
|
19
|
|
|||
Total Nutrition
|
96
|
|
|
77
|
|
|
19
|
|
|||
|
|
|
|
|
|
||||||
Other
|
13
|
|
|
30
|
|
|
(17
|
)
|
|||
|
|
|
|
|
|
||||||
Specified Items:
|
|
|
|
|
|
||||||
Asset impairment and restructuring charges
|
(13
|
)
|
|
(9
|
)
|
|
(4
|
)
|
|||
Hedge timing effects
|
—
|
|
|
7
|
|
|
(7
|
)
|
|||
Total Specified Items
|
(13
|
)
|
|
(2
|
)
|
|
(11
|
)
|
|||
|
|
|
|
|
|
||||||
Total Segment Operating Profit
|
$
|
704
|
|
|
$
|
676
|
|
|
$
|
28
|
|
|
|
|
|
|
|
||||||
Adjusted Segment Operating Profit
(1)
|
$
|
717
|
|
|
$
|
678
|
|
|
$
|
39
|
|
|
|
|
|
|
|
||||||
Segment Operating Profit
|
$
|
704
|
|
|
$
|
676
|
|
|
$
|
28
|
|
Corporate
|
(240
|
)
|
|
(218
|
)
|
|
(22
|
)
|
|||
Earnings Before Income Taxes
|
$
|
464
|
|
|
$
|
458
|
|
|
$
|
6
|
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
|
|
Three Months Ended
|
|
|
||||||||
|
March 31,
|
|
|
||||||||
|
2018
|
|
2017
|
|
Change
|
||||||
|
(In millions)
|
||||||||||
LIFO credit (charge)
|
$
|
8
|
|
|
$
|
13
|
|
|
$
|
(5
|
)
|
Interest expense - net
|
(83
|
)
|
|
(79
|
)
|
|
(4
|
)
|
|||
Unallocated corporate costs
|
(146
|
)
|
|
(124
|
)
|
|
(22
|
)
|
|||
Specified items
|
(3
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|||
Other charges
|
(16
|
)
|
|
(27
|
)
|
|
11
|
|
|||
Total Corporate
|
$
|
(240
|
)
|
|
$
|
(218
|
)
|
|
$
|
(22
|
)
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
|
|
Three months ended March 31,
|
||||||||||||||
|
2018
|
|
2017
|
||||||||||||
|
In millions
|
|
Per share
|
|
In millions
|
|
Per share
|
||||||||
Average number of shares outstanding - diluted
|
565
|
|
|
|
|
579
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Net earnings and reported EPS (fully diluted)
|
$
|
393
|
|
|
$
|
0.70
|
|
|
$
|
339
|
|
|
$
|
0.59
|
|
Adjustments:
|
|
|
|
|
|
|
|
||||||||
LIFO charge (credit) - net of tax of $2 million in 2018 and $5 million in 2017
(1)
|
(6
|
)
|
|
(0.01
|
)
|
|
(8
|
)
|
|
(0.01
|
)
|
||||
Asset impairment and restructuring charges - net of tax of $4 million in 2018 and $2 million in 2017
(2)
|
12
|
|
|
0.02
|
|
|
8
|
|
|
0.01
|
|
||||
Certain discrete tax adjustments
|
(14
|
)
|
|
(0.03
|
)
|
|
4
|
|
|
0.01
|
|
||||
Total adjustments
|
(8
|
)
|
|
(0.02
|
)
|
|
4
|
|
|
0.01
|
|
||||
Adjusted net earnings and adjusted EPS
|
$
|
385
|
|
|
$
|
0.68
|
|
|
$
|
343
|
|
|
$
|
0.60
|
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
|
|
Three months ended March 31,
|
|
|
||||||||
(In millions)
|
2018
|
|
2017
|
|
Change
|
||||||
Earnings before income taxes
|
$
|
464
|
|
|
$
|
458
|
|
|
$
|
6
|
|
Interest expense
|
91
|
|
|
81
|
|
|
10
|
|
|||
Depreciation and amortization
|
235
|
|
|
225
|
|
|
10
|
|
|||
LIFO
|
(8
|
)
|
|
(13
|
)
|
|
5
|
|
|||
Asset impairment and restructuring charges
|
16
|
|
|
10
|
|
|
6
|
|
|||
Adjusted EBITDA
|
$
|
798
|
|
|
$
|
761
|
|
|
$
|
37
|
|
|
|
|
|
|
|
||||||
|
Three months ended March 31,
|
|
|
||||||||
(In millions)
|
2018
|
|
2017
|
|
Change
|
||||||
Origination
|
$
|
88
|
|
|
$
|
90
|
|
|
$
|
(2
|
)
|
Oilseeds
|
401
|
|
|
361
|
|
|
$
|
40
|
|
||
Carbohydrate Solutions
|
301
|
|
|
303
|
|
|
$
|
(2
|
)
|
||
Nutrition
|
133
|
|
|
111
|
|
|
22
|
|
|||
Other
|
19
|
|
|
32
|
|
|
(13
|
)
|
|||
Corporate
|
(144
|
)
|
|
(136
|
)
|
|
(8
|
)
|
|||
Adjusted EBITDA
|
$
|
798
|
|
|
$
|
761
|
|
|
$
|
37
|
|
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
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK (Continued)
|
|
|
Three months ended
|
|
Year ended
|
||||||||||||
|
|
March 31, 2018
|
|
December 31, 2017
|
||||||||||||
Long/(Short)
(In millions)
|
|
Fair Value
|
|
Market Risk
|
|
Fair Value
|
|
Market Risk
|
||||||||
Highest position
|
|
$
|
384
|
|
|
$
|
38
|
|
|
$
|
455
|
|
|
$
|
46
|
|
Lowest position
|
|
25
|
|
|
2
|
|
|
(82
|
)
|
|
(8
|
)
|
||||
Average position
|
|
203
|
|
|
20
|
|
|
213
|
|
|
21
|
|
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, 2018 to
|
|
|
|
|
|
|
|
|
|||||
January 31, 2018
|
|
220
|
|
|
$
|
40.212
|
|
|
220
|
|
|
13,771,088
|
|
|
|
|
|
|
|
|
|
|
|||||
February 1, 2018 to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
February 28, 2018
|
|
148,718
|
|
|
41.491
|
|
|
80
|
|
|
13,771,008
|
|
|
|
|
|
|
|
|
|
|
|
|||||
March 1, 2018 to
|
|
|
|
|
|
|
|
|
|
|
|
||
March 31, 2018
|
|
767
|
|
|
42.672
|
|
|
131
|
|
|
13,770,877
|
|
|
Total
|
|
149,705
|
|
|
$
|
41.495
|
|
|
431
|
|
|
13,770,877
|
|
(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, 2018
, there were
149,274
shares received as payments for the minimum withholding taxes on vested restricted stock awards and 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)
|
|
|
|
|
|
(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 |
---|