Segment and Geographic Information

The Company is principally engaged in procuring, transporting, storing, processing, and merchandising agricultural commodities and products. The Company’s operations are organized, managed and classified into four reportable business segments: Agricultural Services, Corn Processing, Oilseeds Processing, and Wild Flavors and Specialty Ingredients. Each of these segments is organized based upon the nature of products and services offered. The Company’s remaining operations are not reportable segments, as defined by the applicable accounting standard, and are classified as Other.

The Agricultural Services segment utilizes its extensive global grain elevator and transportation networks, and port operations to buy, store, clean, and transport agricultural commodities, such as oilseeds, corn, wheat, milo, oats, rice, and barley, and resells these commodities primarily as food and feed ingredients and as raw materials for the agricultural processing industry. The Agricultural Services segment includes international agricultural commodities merchandising and handling activities managed through a global trade desk based in Rolle, Switzerland. Agricultural Services’ grain sourcing, handling, and transportation network provides reliable and efficient services to the Company’s customers and agricultural processing operations. Agricultural Services’ transportation network capabilities include barge, ocean-going vessel, truck, rail, and container freight services. The Agricultural Services segment also includes the activities related to structured trade finance, the processing of wheat into wheat flour, and the Company’s 32.2% share of the results of its Pacificor (formerly Kalama Export Company LLC) joint venture. The Agricultural Services segment also included returns associated with the Company’s 19.8% investment in GrainCorp until its sale in December 2016. In April 2016, the Company acquired a 50% interest in Cairo, Egypt-based Medsofts Group, a consolidated joint venture that owns and manages merchandising and supply chain operations.

The Company’s Corn Processing segment is engaged in corn wet milling and dry milling activities, utilizing its asset base primarily located in the central part of the United States with additional facilities in China, Bulgaria, Morocco, and Turkey. The Corn Processing segment converts corn into sweeteners, starches, and bioproducts. Its products include ingredients used in the food and beverage industry including sweeteners, starch, syrup, glucose, and dextrose. Dextrose and starch are used by the Corn Processing segment as feedstocks for its bioproducts operations. By fermentation of dextrose, the Corn Processing segment produces alcohol, amino acids, and other food and animal feed ingredients. Ethyl alcohol is produced by the Company for industrial use as ethanol or as beverage grade. Ethanol, in gasoline, increases octane and is used as an extender and oxygenate. Bioproducts also include essential amino acids such as lysine and threonine used in swine and poultry diets to optimize performance. Corn gluten feed and meal, as well as distillers’ grains, are produced for use as animal feed ingredients. Corn germ, a by-product of the wet milling process, is further processed into vegetable oil and protein meal. The Corn Processing segment also includes activities related to the processing and distribution of formula feeds and animal health and nutrition products. Other Corn Processing products include citric acids and glycols, all of which are used in various food and industrial products. The Corn Processing segment also included the activities of the Company’s Brazilian sugarcane ethanol plant and related operations until the Company completed the sale of these operations in May 2016. This segment also includes the Company’s share of the results of its equity investments in Almidones Mexicanos S.A., and Red Star Yeast Company LLC. In June 2016, the Company acquired from Tate & Lyle a Casablanca, Morocco-based corn wet mill that produces glucose and native starch.

The Oilseeds Processing segment includes global activities related to the origination, merchandising, crushing, and further processing of oilseeds such as soybeans and soft seeds (cottonseed, sunflower seed, canola, rapeseed, and flaxseed) into vegetable oils and protein meals. Oilseeds products produced and marketed by the Company include ingredients for the food, feed, energy, and industrial products industries. Crude vegetable oils produced by the segment’s crushing activities are sold “as is” or are further processed by refining, blending, bleaching, and deodorizing into salad oils. Salad oils are sold “as is” or are further processed by hydrogenating and/or interesterifying into margarine, shortening, and other food products. Partially refined oils are used to produce biodiesel or are sold to other manufacturers for use in chemicals, paints, and other industrial products. Oilseed protein meals are principally sold to third parties to be used as ingredients in commercial livestock and poultry feeds. In Europe and South America, the Oilseeds Processing segment includes origination and merchandising activities as adjuncts to its oilseeds processing assets. These activities include a network of grain elevators, port facilities, and transportation assets used to buy, store, clean, and transport grains and oilseeds. The Oilseeds Processing segment is a major supplier of peanuts, tree nuts, and peanut-derived ingredients to both the U.S. and export markets. In North America, cottonseed flour is produced and sold primarily to the pharmaceutical industry and cotton cellulose pulp is manufactured and sold to the chemical, paper, and filter markets. The Oilseeds Processing segment also included activities related to its global chocolate and cocoa businesses until the sale of these businesses in July 2015 and October 2015, respectively. The Oilseeds Processing segment also includes the Company’s share of the results of its equity investment in Wilmar International Limited (Wilmar) and its share of results for its Stratas Foods LLC and Edible Oils Limited joint ventures. The Company acquired additional shares in Wilmar increasing its ownership interest from 19% to 20% in March 2016, 22% in June 2016, and 23.2% in September 2016. In November 2016, the Company completed the expansion of Olenex, a 37.5% joint venture with Wilmar. Olenex owns and operates specialty oils and fats, palm refining, and tropical oils processing plants in Europe.

The Wild Flavors and Specialty Ingredients (WFSI) segment engages in the manufacturing, sales, and distribution of specialty products including natural flavor ingredients, flavor systems, natural colors, proteins, emulsifiers, soluble fiber, polyols, hydrocolloids, natural health and nutrition products, and other specialty food and feed ingredients. The WFSI segment also includes the activities related to the procurement, processing, and distribution of edible beans. The Company acquired a 90% controlling stake in Harvest Innovations, an industry leader in minimally processed, expeller-pressed soy proteins, oils, and gluten-free ingredients in February 2016; the remaining 60% interest in Amazon Flavors, a leading Brazilian manufacturer of natural extracts, emulsions and compounds, in May 2016; and Caterina Foods, a leading toll manufacturer of specialty gluten-free and high-protein pastas, in September 2016.

Other includes the Company’s remaining operations, primarily its financial business units, related to futures commission and insurance activities.

Intersegment sales have been recorded at amounts approximating market. Operating profit for each segment is based on net sales less identifiable operating expenses. Also included in segment operating profit is equity in earnings of affiliates based on the equity method of accounting. Certain Corporate items are not allocated to the Company’s reportable business segments. Corporate results principally include the impact of LIFO-related adjustments, unallocated corporate expenses, other charges including legal settlements, costs, and legal fees, interest cost net of investment income, and the Company’s share of the results of an equity investment.

Following the sale of the cocoa business in October 2015, the remaining results of Cocoa and Other were combined with the results of Refining, Packaging, Biodiesel, and Other within the Oilseeds Processing segment effective January 1, 2016. Prior period results have been reclassified to conform to the current presentation.

Segment Information



	Year Ended
(In millions)	December 31
	2016			2015			2014
Gross revenues
Agricultural Services	$	30,241		$	33,658		$	40,120
Corn Processing	9,512			10,051			12,377
Oilseeds Processing	27,305			29,393			33,591
Wild Flavors and Specialty Ingredients	2,447			2,423			1,380
Other	585			634			573
Intersegment elimination	(7,744		)	(8,457		)	(6,840		)
Total	$	62,346		$	67,702		$	81,201

Intersegment revenues
Agricultural Services	$	2,348		$	3,976		$	3,832
Corn Processing	46			56			95
Oilseeds Processing	5,153			4,176			2,658
Wild Flavors and Specialty Ingredients	20			16			12
Other	177			233			243
Total	$	7,744		$	8,457		$	6,840

Revenues from external customers
Agricultural Services
Merchandising and Handling	$	24,609		$	25,957		$	32,208
Milling and Other	3,060			3,479			3,815
Transportation	224			246			265
Total Agricultural Services	27,893			29,682			36,288
Corn Processing
Sweeteners and Starches	4,028			3,713			3,767
Bioproducts	5,438			6,282			8,515
Total Corn Processing	9,466			9,995			12,282
Oilseeds Processing
Crushing and Origination	13,976			15,597			18,542
Refining, Packaging, Biodiesel, and Other	7,880			9,364			11,937
Asia	296			256			454
Total Oilseeds Processing	22,152			25,217			30,933

Wild Flavors and Specialty Ingredients	2,427			2,407			1,368
Total Wild Flavors and Specialty Ingredients	2,427			2,407			1,368
Other
Financial	408			401			330
Total Other	408			401			330
Total	$	62,346		$	67,702		$	81,201



	Year Ended
(In millions)	December 31
	2016			2015			2014
Depreciation
Agricultural Services	$	191		$	188		$	189
Corn Processing	342			335			332
Oilseeds Processing	185			187			235
Wild Flavors and Specialty Ingredients	37			36			37
Other	5			5			3
Corporate	27			48			54
Total	$	787		$	799		$	850

Long-lived asset abandonments and write-downs⁽¹⁾
Agricultural Services	$	3		$	—		$	17
Corn Processing	6			66			15
Oilseeds Processing	6			40			3
Wild Flavors and Specialty Ingredients	—			1			—
Corporate	2			1			—
Total	$	17		$	108		$	35

Interest income
Agricultural Services	$	21		$	16		$	31
Corn Processing	3			2			10
Oilseeds Processing	27			29			30
Wild Flavors and Specialty Ingredients	2			1			1
Other	35			19			13
Corporate	4			4			7
Total	$	92		$	71		$	92

Equity in earnings of affiliates
Agricultural Services	$	16		$	24		$	41
Corn Processing	91			85			113
Oilseeds Processing	211			251			236
Wild Flavors and Specialty Ingredients	4			—			—
Other	10			(3		)	10
Corporate	(40		)	33			(28		)
Total	$	292		$	390		$	372

⁽¹⁾ See Note 18 for total asset impairment, exit, and restructuring costs.



	Year Ended
(In millions)	December 31
	2016			2015			2014
Operating Profit
Agricultural Services	$	602		$	714		$	1,043
Corn Processing	811			648			1,148
Oilseeds Processing	871			1,574			1,440
Wild Flavors and Specialty Ingredients	286			280			205
Other	134			56			79
Total operating profit	2,704			3,272			3,915
Corporate	(882		)	(988		)	(785		)
Earnings before income taxes	$	1,822		$	2,284		$	3,130



(In millions)	December 31
	2016		2015
Investments in and advances to affiliates
Agricultural Services	$	367	$	384
Corn Processing	395		368
Oilseeds Processing	3,413		2,743
Wild Flavors and Specialty Ingredients	3		—
Other	4		39
Corporate	315		367
Total	$	4,497	$	3,901

Identifiable assets
Agricultural Services	$	8,380	$	8,715
Corn Processing	6,418		6,450
Oilseeds Processing	11,228		10,794
Wild Flavors and Specialty Ingredients	4,610		4,570
Other	7,211		7,902
Corporate	1,922		1,726
Total	$	39,769	$	40,157

(In millions)	December 31
	2016		2015
Gross additions to property, plant, and equipment
Agricultural Services	$	156	$	229
Corn Processing	240		427
Oilseeds Processing	266		404
Wild Flavors and Specialty Ingredients	139		167
Other	20		15
Corporate	61		108
Total	$	882	$	1,350

Geographic information: The following geographic data include revenues attributed to the countries based on the location of the subsidiary making the sale and long-lived assets based on physical location. Long-lived assets represent the net book value of property, plant, and equipment.



	Year Ended
(In millions)	December 31
	2016		2015		2014

Revenues
United States	$	29,419	$	31,828	$	39,609
Switzerland	13,413		11,681		10,118
Cayman Islands	3,617		4,456		5,213
Germany	2,341		3,436		7,174
Other Foreign	13,556		16,301		19,087
	$	62,346	$	67,702	$	81,201



(In millions)	December 31
	2016		2015
Long-lived assets
United States	$	6,763	$	6,877
Foreign	2,995		2,976
	$	9,758	$	9,853