ADM(ADM) - 2024 Q4 - Annual Report

Financial Performance - Revenues for the year ended December 31, 2024, were $85,530 million, a decrease of 8.5% from$ 93,935 million in 2023[342] - Gross profit decreased to $5,778 million in 2024 from$ 7,513 million in 2023, reflecting a decline of 23.1%[342] - Net earnings attributable to controlling interests fell to $1,800 million in 2024, down 48.3% from$ 3,483 million in 2023[342] - The company reported a comprehensive income of $1,278 million in 2024, down from$ 3,485 million in 2023, indicating a decline of 63.3%[344] - Net earnings for 2024 were $1,779 million, a decrease of 48.7% from$ 3,466 million in 2023[350] - Net cash provided by operating activities decreased to $2,790 million in 2024 from$ 4,460 million in 2023, representing a decline of 37.5%[350] - The Company reported a closing balance of redeemable non-controlling interests of $253 million as of December 31, 2024, down from$ 320 million in 2023[417] - The Company’s net earnings for 2024 were $2.036 billion, down 17% from$ 2.452 billion in 2023[501] Assets and Liabilities - Total assets decreased to $53,271 million in 2024 from$ 54,631 million in 2023, reflecting a reduction of 2.5%[348] - The fair value of long-term debt decreased to $7,055 million in 2024 from$ 8,557 million in 2023, with a market risk of $271 million due to increased corporate bond interest rates[337] - The fair value of total assets as of December 31, 2024, was$ 10.066 billion, compared to $10.104 billion in 2023, indicating a slight decrease[1] - The fair value of total liabilities as of December 31, 2024, was$ 1.714 billion, down from $2.421 billion in 2023, showing a significant reduction[1] - The total long-term debt, including current maturities, was$ 8.254 billion as of December 31, 2024, slightly down from $8.260 billion in 2023[514] - The fair value of the Company's long-term debt, excluding current portion, was estimated at$ 7.1 billion as of December 31, 2024[515] Cash Flow and Investments - Cash and cash equivalents decreased to $611 million in 2024 from$ 1,368 million in 2023, a decline of 55.3%[348] - Net cash used in investing activities rose to $2,702 million in 2024 compared to$ 1,496 million in 2023, indicating an increase of 80.8%[350] - The total cash, cash equivalents, restricted cash, and restricted cash equivalents at the end of 2024 was $3,924 million, down from$ 5,390 million in 2023, a decrease of 27.3%[350] - The Company had $13.0 billion in lines of credit as of December 31, 2024, with$ 9.1 billion unused[518] - The Company utilized $2.0 billion of its$ 2.8 billion accounts receivable securitization program as of December 31, 2024[520] Expenses and Costs - The company incurred asset impairment, exit, and restructuring costs of $545 million in 2024, compared to$ 342 million in 2023[342] - Research and development costs for the year ended December 31, 2024, were $269 million, an increase from$ 256 million in 2023 and $216 million in 2022[410] - Aggregate amortization expense for intangible assets was$ 266 million in 2024, an increase from $234 million in 2023[513] - Total compensation expense for stock option grants and related awards was$ 74 million in 2024, a decrease from $112 million in 2023[523] Acquisitions and Goodwill - The company acquired Revela Foods, Fuerst Day Lawson, PT Trouw Nutrition Indonesia, and Totally Natural Solutions for a total cash consideration of$ 948 million in 2024[1] - Goodwill recorded from acquisitions amounted to $557 million, with$ 373 million expected to be tax-deductible[1] - The Company recorded a goodwill impairment charge of $137 million in 2023, primarily related to the Animal Nutrition reporting unit[509] Market and Risk Management - The company has established metrics to monitor market risk exposure, including volumetric limits and value-at-risk (VaR) limits, with VaR calculations monitored weekly[332] - The average position for commodity risk showed a fair value of$ 168 million in 2024, with a market risk of $17 million from a hypothetical 10% adverse price change[333] - The Company hedged between 12% and 31% of its monthly corn grind over the past 12 months, with designated hedges representing between 9% to 26% of anticipated monthly grind for the next 12 months as of December 31, 2024[478] - The company hedged between 41% and 74% of its anticipated monthly natural gas consumption over the past 12 months, with designated hedges representing between 35% and 50% for the next 12 months as of December 31, 2024[480] Stock and Dividends - Share repurchases amounted to$ 2,327 million in 2024, down from $2,673 million in 2023, a reduction of 12.9%[350] - Cash dividends paid increased to$ 985 million in 2024, compared to $977 million in 2023, marking a rise of 0.8%[350] Other Financial Metrics - The Company recorded bad debt expense of$ (16) million, $6 million, and$ 88 million for the years ended December 31, 2024, 2023, and 2022, respectively[372] - The closing balance for estimated uncollectible accounts decreased to $167 million in 2024 from$ 215 million in 2023[373] - Total inventories as of December 31, 2024, were $11,572 million, a decrease from$ 11,957 million in 2023[375] - The Company capitalized interest on major construction projects in progress of $32 million for both 2024 and 2023[395]