XML 21 R10.htm IDEA: XBRL DOCUMENT v3.23.2
Revenues Revenues
 6 Months Ended
Jun. 30, 2023
Revenues [Abstract]  
Revenues [Text Block] Revenues
Revenue Recognition

The Company principally generates revenue from merchandising and transporting agricultural commodities, and manufacturing products for use in food, beverages, feed, energy, and industrial applications, and ingredients and solutions for human and animal nutrition. Revenue is measured based on the consideration specified in the contract with a customer. The Company follows a policy of recognizing revenue at a single point in time when it satisfies its performance obligation by transferring control over a product or service to a customer. The majority of the Company’s contracts with customers have one performance obligation and a contract duration of one year or less. The Company applies the practical expedient in paragraph 10-50-14 of Topic 606 and does not disclose information about remaining performance obligations that have original expected durations of one year or less. For transportation service contracts, the Company recognizes revenue over time as the mode of transportation moves towards its destination in accordance with the transfer of control guidance of Topic 606. The Company recognized revenue from transportation service contracts of $200 million and $378 million for the three and six months ended June 30, 2023, respectively, and $209 million and $384 million for the three and six months ended June 30, 2022, respectively. For physically settled derivative sales contracts that are outside the scope of Topic 606, the Company recognizes revenue when control of the inventory is transferred within the meaning of Topic 606 as required by ASC 610-20, Gains and Losses from the Derecognition of Nonfinancial Assets (Topic 610-20).
Shipping and Handling Costs
Shipping and handling costs related to contracts with customers for the sale of goods are accounted for as a fulfillment activity and are included in cost of products sold. Accordingly, amounts billed to customers for such costs are included as a component of revenues.
Taxes Collected from Customers and Remitted to Governmental Authorities
The Company does not include taxes assessed by governmental authorities that are (i) imposed on and concurrent with a specific revenue-producing transaction and (ii) collected from customers, in the measurement of transaction prices or as a component of revenues and cost of products sold.

Contract Liabilities

Contract liabilities relate to advance payments from customers for goods and services that the Company has yet to provide. Contract liabilities of $286 million and $694 million as of June 30, 2023 and December 31, 2022, respectively, were recorded in accrued expenses and other payables in the consolidated balance sheets. Revenues recognized from contract liabilities were $311 million and $673 million for the three and six months ended June 30, 2023, respectively, and $335 million and $581 million for the three and six months ended June 30, 2022, respectively.
Disaggregation of Revenues

The following tables present revenue disaggregated by timing of recognition and major product lines for the three and six months ended June 30, 2023 and 2022.
Three Months Ended June 30, 2023
Topic 606 Revenue
Topic 815(1)
Total
(In millions)Point in TimeOver TimeTotalRevenueRevenues
Ag Services and Oilseeds
Ag Services$1,071 $200 $1,271 $12,095 $13,366 
Crushing32 — 32 3,448 3,480 
Refined Products and Other577 — 577 2,421 2,998 
Total Ag Services and Oilseeds1,680 200 1,880 17,964 19,844 
Carbohydrate Solutions
Starches and Sweeteners1,872 — 1,872 603 2,475 
Vantage Corn Processors906 — 906 — 906 
Total Carbohydrate Solutions2,778 — 2,778 603 3,381 
Nutrition
Human Nutrition966 — 966 — 966 
Animal Nutrition887 — 887 — 887 
Total Nutrition1,853 — 1,853 — 1,853 
Other Business112 — 112 — 112 
Total Revenues$6,423 $200 $6,623 $18,567 $25,190 
Six Months Ended June 30, 2023
Topic 606 Revenue
Topic 815(1)
Total
Point in TimeOver TimeTotalRevenueRevenues
(In millions)
Ag Services and Oilseeds
Ag Services$2,088 $378 $2,466 $22,595 $25,061 
Crushing223 — 223 6,940 7,163 
Refined Products and Other1,203 — 1,203 4,996 6,199 
Total Ag Services and Oilseeds3,514 378 3,892 34,531 38,423 
Carbohydrate Solutions
Starches and Sweeteners3,956 — 3,956 1,256 5,212 
Vantage Corn Processors1,706 — 1,706 — 1,706 
Total Carbohydrate Solutions5,662 — 5,662 1,256 6,918 
Nutrition
Human Nutrition1,902 — 1,902 — 1,902 
Animal Nutrition1,804 — 1,804 — 1,804 
Total Nutrition3,706 — 3,706 — 3,706 
Other Business215 — 215 — 215 
Total Revenues$13,097 $378 $13,475 $35,787 $49,262 
Three Months Ended June 30, 2022
Topic 606 Revenue
Topic 815(1)
Total
(In millions)Point in TimeOver TimeTotalRevenueRevenues
Ag Services and Oilseeds
Ag Services$1,013 $209 $1,222 $13,111 $14,333 
Crushing128 — 128 3,234 3,362 
Refined Products and Other744 — 744 2,990 3,734 
Total Ag Services and Oilseeds1,885 209 2,094 19,335 21,429 
Carbohydrate Solutions
Starches and Sweeteners1,889 — 1,889 630 2,519 
Vantage Corn Processors1,232 — 1,232 — 1,232 
Total Carbohydrate Solutions3,121 — 3,121 630 3,751 
Nutrition
Human Nutrition1,020 — 1,020 — 1,020 
Animal Nutrition983 — 983 — 983 
Total Nutrition2,003 — 2,003 — 2,003 
Other Business101 — 101 — 101 
Total Revenues$7,110 $209 $7,319 $19,965 $27,284 
Six Months Ended June 30, 2022
Topic 606 Revenue
Topic 815(1)
Total
Point in TimeOver TimeTotalRevenueRevenues
(In millions)
Ag Services and Oilseeds
Ag Services$1,983 $384 $2,367 $23,813 $26,180 
Crushing253 — 253 6,331 6,584 
Refined Products and Other1,376 — 1,376 5,542 6,918 
Total Ag Services and Oilseeds3,612 384 3,996 35,686 39,682 
Carbohydrate Solutions
Starches and Sweeteners3,819 — 3,819 1,198 5,017 
Vantage Corn Processors2,100 — 2,100 — 2,100 
Total Carbohydrate Solutions5,919 — 5,919 1,198 7,117 
Nutrition
Human Nutrition1,978 — 1,978 — 1,978 
Animal Nutrition1,949 — 1,949 — 1,949 
Total Nutrition3,927 — 3,927 — 3,927 
Other Business208 — 208 — 208 
Total Revenues$13,666 $384 $14,050 $36,884 $50,934 
(1) Topic 815 revenue relates to the physical delivery or the settlement of the Company’s sales contracts that are accounted for as derivatives and are outside the scope of Topic 606.
Ag Services and Oilseeds

The Ag Services and Oilseeds segment generates revenue from the sale of commodities, from service fees for the transportation of goods, from the sale of products manufactured in its global processing facilities, and from its structured trade finance activities. Revenue is measured based on the consideration specified in the contract. Revenue is recognized when a performance obligation is satisfied by transferring control over a product or providing service to a customer. For transportation service contracts, the Company recognizes revenue over time as the mode of transportation moves towards its destination in accordance with the transfer of control guidance of Topic 606. The amount of revenue recognized follows the contractually specified price, which may include freight or other contractually specified cost components. For physically settled derivative sales contracts that are outside the scope of Topic 606, the Company recognizes revenue when control of the inventory is transferred within the meaning of Topic 606 as required by Topic 610-20. The Company engages in various structured trade finance activities to leverage its global trade flows whereby the Company obtains letters of credit (LCs) to guarantee payments on both global purchases and sales of grain. LCs guaranteeing payment on grain sales are sold on a non-recourse basis with no continuing involvement. The Company earns returns from the difference in interest rates between the LCs that guarantee payment on the underlying purchases and sales of grain given the differing risk profiles of the underlying transactions. The net return related to structured trade finance activities is included in revenue and is not significant for the three and six months ended June 30, 2023 and 2022.

Carbohydrate Solutions

The Carbohydrate Solutions segment generates revenue from the sale of products manufactured at the Company’s global corn and wheat milling facilities around the world. Revenue is recognized when control over products is transferred to the customer. Products are shipped to customers from the Company’s various facilities and from its network of storage terminals. The amount of revenue recognized is based on the consideration specified in the contract, which could include freight and other costs depending on the specific shipping terms of each contract. For physically settled derivative sales contracts that are outside the scope of Topic 606, the Company recognizes revenue when control of the inventory is transferred within the meaning of Topic 606 as required by Topic 610-20.

Nutrition

The Nutrition segment sells ingredients and solutions including plant-based proteins, natural flavors, flavor systems, natural colors, emulsifiers, soluble fiber, polyols, hydrocolloids, probiotics, prebiotics, enzymes, botanical extracts, edible beans, formula feeds, animal health and nutrition products, pet food and treats, and other specialty food and feed ingredients. Revenue is recognized when control over products is transferred to the customer. The amount of revenue recognized follows the contracted price or the mutually agreed price of the product. Freight and shipping are recognized as a component of revenue at the same time control transfers to the customer.

Other Business

Other Business includes the Company’s futures commission business whose primary sources of revenue are commissions and brokerage income generated from executing orders and clearing futures contracts and options on futures contracts on behalf of its customers. Commissions and brokerage revenue are recognized on the date the transaction is executed. Other Business also includes the Company’s captive insurance business, which generates third party revenue through its proportionate share of premiums from third-party reinsurance pools. Reinsurance premiums are recognized on a straight-line basis over the period underlying the policy.