Archer-Daniels-Midland CoADM
Archer-Daniels-Midland Co Fair Value Disclosure
Fair Value Measurements
The following tables set forth, by level, the Company’s assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2025 and 2024 (in millions).
| Fair Value Measurements at December 31, 2025 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Inventories carried at market | $ | — | $ | 3,549 | $ | 2,673 | $ | 6,222 | |||||||||||||||
| Unrealized derivative gains: | |||||||||||||||||||||||
| Commodity contracts | — | 310 | 512 | 822 | |||||||||||||||||||
Foreign exchange contracts | — | 108 | — | 108 | |||||||||||||||||||
| Interest rate contracts | — | 17 | — | 17 | |||||||||||||||||||
| Cash equivalents | 280 | — | — | 280 | |||||||||||||||||||
| Marketable securities | 32 | — | — | 32 | |||||||||||||||||||
| Segregated investments and restricted cash equivalents | 1,771 | — | — | 1,771 | |||||||||||||||||||
| Total Assets | $ | 2,083 | $ | 3,984 | $ | 3,185 | $ | 9,252 | |||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Unrealized derivative losses: | |||||||||||||||||||||||
| Commodity contracts | $ | — | $ | 300 | $ | 313 | $ | 613 | |||||||||||||||
Foreign exchange contracts | — | 144 | — | 144 | |||||||||||||||||||
| Inventory-related payables | — | 714 | 16 | 730 | |||||||||||||||||||
| Total Liabilities | $ | — | $ | 1,158 | $ | 329 | $ | 1,487 | |||||||||||||||
| Fair Value Measurements at December 31, 2024 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Inventories carried at market | $ | — | $ | 3,930 | $ | 3,031 | $ | 6,961 | |||||||||||||||
| Unrealized derivative gains: | |||||||||||||||||||||||
| Commodity contracts | — | 404 | 427 | 831 | |||||||||||||||||||
| Foreign currency contracts | — | 272 | — | 272 | |||||||||||||||||||
| Interest rate contracts | — | 5 | — | 5 | |||||||||||||||||||
| Cash equivalents | 70 | — | — | 70 | |||||||||||||||||||
| Marketable securities | 246 | — | — | 246 | |||||||||||||||||||
| Segregated investments and restricted cash equivalents | 1,681 | — | — | 1,681 | |||||||||||||||||||
| Total Assets | $ | 1,997 | $ | 4,611 | $ | 3,458 | $ | 10,066 | |||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Unrealized derivative losses: | |||||||||||||||||||||||
| Commodity contracts | $ | — | $ | 355 | $ | 405 | $ | 760 | |||||||||||||||
| Foreign currency contracts | — | 212 | — | 212 | |||||||||||||||||||
| Inventory-related payables | — | 654 | 88 | 742 | |||||||||||||||||||
| Total Liabilities | $ | — | $ | 1,221 | $ | 493 | $ | 1,714 | |||||||||||||||
Inventories Carried at Market and Inventory-Related Payables
Estimated fair values of inventories and inventory-related payables stated at market are based on exchange-quoted prices, adjusted for differences in local markets and quality, referred to as basis. Market valuations for the Company’s inventories are adjusted for location and quality (basis) because the exchange-quoted prices represent contracts that have standardized terms for commodity, quantity, future delivery period, delivery location, and commodity quality or grade.
The basis adjustments are generally determined using inputs from competitor and broker quotations or market transactions and are considered observable. Basis adjustments are impacted by specific local supply and demand characteristics at each facility and the overall market. Factors such as substitute products, weather, fuel costs, contract terms, and futures prices also impact the movement of these basis adjustments. In certain cases, the basis adjustments are unobservable because they are supported by little to no market activity. When unobservable inputs have a significant impact (more than 10%) on the measurement of fair value, the inventory is classified as Level 3.
Changes in the fair value of inventories and inventory-related payables are recognized in the Consolidated Statements of Earnings as a component of Cost of products sold.
Unrealized Derivative Gains and Losses
Derivative contracts include exchange-traded commodity futures and options contracts, forward commodity purchase and sale contracts, and over-the-counter (OTC) instruments related primarily to agricultural commodities, energy, interest rates, and foreign currencies.
Substantially all of the Company’s exchange-traded commodity futures and options contracts are cash-settled on a daily basis and, therefore, are not included in these tables.
Fair value for forward commodity purchase and sale contracts is estimated based on exchange-quoted prices adjusted for differences in local markets. Market valuations for the Company’s forward commodity purchase and sale contracts are adjusted for location (basis) because the exchange-quoted prices represent contracts that have standardized terms for commodity, quantity, future delivery period, delivery location, and commodity quality or grade.
The basis adjustments are generally determined using inputs from competitor and broker quotations or market transactions and are considered observable. Basis adjustments are impacted by specific local supply and demand characteristics at each facility and the overall market. Factors such as substitute products, weather, fuel costs, contract terms, and futures prices also impact the movement of these basis adjustments.
In certain cases, the basis adjustments are unobservable because they are supported by little to no market activity. When observable inputs are available for substantially the full term of the contract, it is classified in Level 2. When unobservable inputs have a significant impact (more than 10%) on the measurement of fair value, the contract is classified in Level 3.
Except for certain derivatives designated as cash flow hedges, changes in the fair value of commodity-related derivatives are recognized in the Consolidated Statements of Earnings as a component of Cost of products sold.
Except for certain derivatives designated as net investment hedges, changes in the fair value of foreign currency-related derivatives are recognized in the Consolidated Statements of Earnings as a component of Revenues, Cost of products sold, and Other (income) - net, depending upon the purpose of the contract.
Cash Equivalents
The Company’s cash equivalents are comprised of money market funds valued using quoted market prices and are classified as Level 1.
Marketable Securities
The Company's marketable securities are comprised of foreign government securities and foreign term deposits with original maturities greater than 90 days. These securities are valued using quoted market prices and are classified as Level 1.
Segregated Investments and Restricted Cash Equivalents
The Company’s segregated investments and restricted cash equivalents are primarily comprised of U.S. Treasury securities purchased using ADM Investor Services customer funds and segregated to meet regulatory requirements. U.S. Treasury securities are valued using quoted market prices and are classified as Level 1.
Level 3 Assets and Liabilities
The following tables present a rollforward of the activity of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2025 and 2024 (in millions).
| Assets | Liabilities | ||||||||||||||||||||||||||||||||||
| December 31, 2025 | December 31, 2025 | ||||||||||||||||||||||||||||||||||
| Inventories Carried at Market | Commodity Derivative Contracts Gains | Total Assets | Inventory-related Payables | Commodity Derivative Contracts Losses | Total Liabilities | ||||||||||||||||||||||||||||||
| Opening balance, January 1, 2025 | $ | 3,031 | $ | 427 | $ | 3,458 | $ | 88 | $ | 405 | $ | 493 | |||||||||||||||||||||||
| (1,021) | 1,075 | 54 | — | — | — | ||||||||||||||||||||||||||||||
| Increase (decrease) in unrealized losses included in Cost of products sold | — | — | — | — | 13 | 852 | 865 | ||||||||||||||||||||||||||||
| Realized increases (decreases) included in Cost of products sold | 28 | — | 28 | (15) | — | (15) | |||||||||||||||||||||||||||||
| Purchases | 18,640 | — | 18,640 | 21 | — | 21 | |||||||||||||||||||||||||||||
| Sales | (17,761) | — | (17,761) | (91) | — | (91) | |||||||||||||||||||||||||||||
| Settlements | — | (1,106) | (1,106) | — | (985) | (985) | |||||||||||||||||||||||||||||
| Transfers into Level 3 | 1,616 | 241 | 1,857 | — | 72 | 72 | |||||||||||||||||||||||||||||
| Transfers out of Level 3 | (1,860) | (125) | (1,985) | — | (31) | (31) | |||||||||||||||||||||||||||||
| Closing balance, December 31, 2025 | $ | 2,673 | $ | 512 | $ | 3,185 | $ | 16 | $ | 313 | $ | 329 | |||||||||||||||||||||||
| Assets | Liabilities | ||||||||||||||||||||||||||||||||||
| December 31, 2024 | December 31, 2024 | ||||||||||||||||||||||||||||||||||
| Inventories Carried at Market | Commodity Derivative Contracts Gains | Total Assets | Inventory-related Payables | Commodity Derivative Contracts Losses | Total Liabilities | ||||||||||||||||||||||||||||||
| Opening balance, January 1, 2024 | $ | 2,713 | $ | 731 | $ | 3,444 | $ | 101 | $ | 457 | $ | 558 | |||||||||||||||||||||||
| 697 | 1,010 | 1,707 | — | — | — | ||||||||||||||||||||||||||||||
| Increase (decrease) in unrealized losses included in Cost of products sold | — | — | — | — | 17 | 1,124 | 1,141 | ||||||||||||||||||||||||||||
| Realized increases (decreases) included in Cost of products sold | (51) | — | (51) | (29) | — | (29) | |||||||||||||||||||||||||||||
| Purchases | 16,296 | — | 16,296 | 79 | — | 79 | |||||||||||||||||||||||||||||
| Sales | (16,609) | — | (16,609) | (81) | — | (81) | |||||||||||||||||||||||||||||
| Settlements | — | (1,369) | (1,369) | — | (1,142) | (1,142) | |||||||||||||||||||||||||||||
| Transfers into Level 3 | 1,416 | 241 | 1,657 | 1 | 68 | 69 | |||||||||||||||||||||||||||||
| Transfers out of Level 3 | (1,431) | (186) | (1,617) | — | (102) | (102) | |||||||||||||||||||||||||||||
| Closing balance, December 31, 2024 | $ | 3,031 | $ | 427 | $ | 3,458 | $ | 88 | $ | 405 | $ | 493 | |||||||||||||||||||||||
Transfers into Level 3 of assets and liabilities previously classified in Level 2 were due to the relative value of unobservable inputs to the total fair value measurement of certain products and derivative contracts rising above the 10% threshold. Transfers out of Level 3 were primarily due to the relative value of unobservable inputs to the total fair value measurement of certain products and derivative contracts falling below the 10% threshold and thus permitting reclassification to Level 2.
In some cases, the price components that result in differences between exchange-traded prices and local prices for inventories and physical commodity purchase and sale contracts are observable based upon available quotations for these pricing components, and in some cases, the differences are unobservable. These price components primarily include transportation costs and other basis adjustments required due to location, quality, or other contract terms. The changes in unobservable price components are determined by specific local supply and demand characteristics at each location and the overall market. Factors such as substitute products, weather, fuel costs, contract terms, and futures prices also impact the movement of these unobservable price components.
The following table sets forth the weighted average percentage of the unobservable price components included in the Company’s Level 3 valuations as of December 31, 2025 and 2024. The Company’s Level 3 measurements may include basis only, transportation cost only, or both price components.
| Weighted Average % of Total Price | ||||||||||||||||||||||||||
| December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||||
| Component Type | Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||||||
| Inventories and Related Payables | ||||||||||||||||||||||||||
| Basis | 21.1% | 9.0% | 24.9% | 31.3% | ||||||||||||||||||||||
| Transportation cost | 22.4% | —% | 10.8% | —% | ||||||||||||||||||||||
| Commodity Derivative Contracts | ||||||||||||||||||||||||||
| Basis | 23.3% | 23.6% | 21.8% | 23.4% | ||||||||||||||||||||||
| Transportation cost | 25.7% | —% | 10.8% | 10.8% | ||||||||||||||||||||||
In certain of the Company’s principal markets, the Company relies on price quotes from third parties to value its inventories and physical commodity purchase and sale contracts. These price quotes are generally not further adjusted by the Company in determining the applicable market price. In some cases, availability of third-party quotes is limited to only one or two independent sources. In these situations, absent other corroborating evidence, the Company considers these price quotes as 100% unobservable and, therefore, the fair value of these items is reported in Level 3.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 17, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Mar 12, 2024 | |
| 2022 | Feb 14, 2023 | |
| 2021 | Feb 17, 2022 | |
| 2020 | Feb 18, 2021 | |
| 2019 | Feb 18, 2020 | |
| 2018 | Feb 19, 2019 | |
| 2017 | Feb 16, 2018 | |
| 2016 | Feb 17, 2017 | |
| 2015 | Feb 19, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.