ADM identifies misclassified intersegment transactions, to restate FY23 filings

Following ongoing dialogue with the staff of the SEC, the company will amend its fiscal year 2023 Form 10-K and Form 10-Q for the first and second quarters of 2024 to restate the segment information disclosure included in those filings. These restatements are not expected to result in any material impact on ADM‘s Consolidated Statements of Earnings, Consolidated Statements of Comprehensive Income, Consolidated Balance Sheets, Consolidated Statements of Cash Flow or Consolidated Statements of Shareholders’ Equity as of and for the periods presented. The restated filings will include corrections for newly identified errors related to intersegment sales, will reflect the previously-corrected errors, and will provide disclosures applicable to restated segment information. ADM said it identified and corrected certain intersegment sales amounts that either (i) were not in accordance with prior disclosures about presenting such sales at amounts approximating market or (ii) included intrasegment sales and should have included exclusively intersegment sales. In connection with the error corrections, ADM identified a material weakness in its internal control over financial reporting related to its accounting practices and procedures for intersegment sales. The company put in place a plan to remediate this material weakness, as disclosed in the FY2023 Form 10-K and Q1 and Q2 2024 Form 10-Qs. In addition, in the course of testing new controls implemented as part of the Company’s material weakness remediation plan in the third quarter of 2024, ADM identified additional misclassified intersegment transactions. These newly identified errors concern additional intersegment sales for each of its Ag Services and Oilseeds, Carbohydrate Solutions and Nutrition segments that included certain intrasegment sales and should have included exclusively intersegment sales. The company also identified some intersegment transactions between Ag Services and Oilseeds and Carbohydrate Solutions that were not accounted for consistently in accordance with revenue recognition and segment reporting standards and should not have been reported as intersegment sales. ADM is working to complete these restatements as soon as reasonably practicable.