8-KFinancial Events

Archer-Daniels-Midland Co 8-K Report, Financial Restatement (Nov 5, 2024)

Filed November 5, 2024For Securities:ADM

Summary

Archer-Daniels-Midland Co. (ADM) has filed an 8-K report announcing that its previously issued financial statements for fiscal year 2023 and the first and second quarters of 2024 will be restated. This restatement is necessary due to identified errors in segment information disclosures, specifically concerning intersegment sales amounts and classifications. The company is revising its FY2023 Form 10-K and its Q1 and Q2 2024 Form 10-Qs to correct these misstatements. Importantly, ADM states that the restatements are not expected to have a material impact on the company's overall financial results, such as earnings, balance sheets, or cash flows. The errors identified primarily relate to the accuracy and classification of intersegment sales within its Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition segments. In connection with these errors, ADM has also identified and is actively remediating a material weakness in its internal control over financial reporting related to intersegment sales accounting.

Key Highlights

  • 1ADM will restate its FY2023 10-K and Q1/Q2 2024 10-Qs due to errors in segment information disclosures.
  • 2The errors specifically relate to the classification and amounts of intersegment sales.
  • 3ADM has identified a material weakness in internal controls over financial reporting concerning intersegment sales.
  • 4The company is implementing remediation plans to address the identified material weakness.
  • 5The restatements are not expected to materially impact ADM's Consolidated Statements of Earnings, Balance Sheets, or Cash Flows.
  • 6The company is working to complete the restatements promptly.
  • 7Ernst & Young LLP has been informed of these matters.

Frequently Asked Questions

ADM is restating its fiscal year 2023 Form 10-K and its first and second quarter 2024 Form 10-Qs because of identified errors in the segment information disclosures. These errors primarily concern the accuracy and classification of intersegment sales within certain business segments.

According to the filing, the restatements are not expected to result in any material impact on ADM's Consolidated Statements of Earnings, Consolidated Statements of Comprehensive Income (Loss), Consolidated Balance Sheets, Consolidated Statements of Cash Flow, or Consolidated Statements of Shareholders’ Equity as of and for the periods presented.

A material weakness signifies a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the company's annual or interim financial statements will not be prevented or detected on a timely basis. ADM has identified such a weakness related to its accounting for intersegment sales and is actively implementing a remediation plan.

The restatements pertain to segment information for ADM's Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition segments. The errors involve intersegment sales within and between these segments.