Extinguishment of Debt, Amount

Archer-Daniels-Midland Company  
Notes to Consolidated Financial Statements (Continued)(Unaudited)  
Note 10.     Accumulated Other Comprehensive Income (Continued)

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Amount reclassified from AOCI |  |
|  | Three months ended September 30, |  | Nine months ended September 30, | Affected line item in the consolidated statements of earnings |
| Details about AOCI components | 2022 | 2021 |  | 2022 | 2021 |
|  | (In millions) |  |
|  |  |  |  |  |  |
|  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |
| Deferred loss (gain) on hedging activities |  |  |  |  |  |  |
|  | $ | (1) |  | $ | —  |  |  | $ | (1) |  | $ | 15  |  | Revenues |
|  | (117) |  | (122) |  |  | (365) |  | (450) |  | Cost of products sold |
|  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |
|  | (118) |  | (122) |  |  | (366) |  | (435) |  | Total before tax |
|  | 17  |  | 29  |  |  | 69  |  | 108  |  | Tax |
|  | $ | (101) |  | $ | (93) |  |  | $ | (297) |  | $ | (327) |  | Net of tax |
|  |  |  |  |  |  |  |
| Pension liability adjustment |  |  |  |  |  |  |
| Amortization of defined benefit pension items: |  |  |  |  |  |  |
| Prior service loss (credit) | $ | (10) |  | $ | (4) |  |  | $ | (114) |  | $ | (71) |  | Other (income) expense-net |
| Actuarial losses  | 10  |  | 12  |  |  | 137  |  | 161  |  | Other (income) expense-net |
|  | —  |  | 8  |  |  | 23  |  | 90  |  | Total before tax |
|  | —  |  | 6  |  |  | (8) |  | (20) |  | Tax |
|  | $ | —  |  | $ | 14  |  |  | $ | 15  |  | $ | 70  |  | Net of tax |
|  |  |  |  |  |  |  |

The Company’s accounting policy is to release the income tax effects from AOCI when the individual units of account are sold, terminated, or extinguished.  
Note 11.    Other (Income) Expense - Net  
The following table sets forth the items in other (income) expense:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three Months Ended |  | Nine Months Ended |
|  | September 30, |  | September 30, |
|   | 2022 |  | 2021 |  | 2022 |  | 2021 |
|   | (In millions) |
| Gains on sales of assets | $ | (35) |  |  | $ | (7) |  |  | $ | (40) |  |  | $ | (46) |  |
| Debt extinguishment charges | —  |  |  | 36  |  |  | —  |  |  | 36  |  |
| Pension settlement | —  |  |  | 1  |  |  | —  |  |  | 83  |  |
|  |  |  |  |  |  |  |  |
| Other – net | (32) |  |  | (10) |  |  | (143) |  |  | (37) |  |
| Other (Income) Expense - Net | $ | (67) |  |  | $ | 20  |  |  | $ | (183) |  |  | $ | 36  |  |

  
Gains on sales of assets in the three and nine months ended September 30, 2022 and 2021 consisted of gains on sales of certain assets and disposals of individually insignificant assets in the ordinary course of business.  
Debt extinguishment charges in the three and nine months ended September 30, 2021 were related to the early redemption of $500 million aggregate principal amount of 2.750% notes due in March 2025. Pension settlement in the three and nine months ended September 30, 2021 was related to the purchase of group annuity contracts that irrevocably transferred the future benefit obligations and annuity administration for certain salaried and hourly retirees and terminated vested participants under the Company’s ADM Retirement Plan and ADM Pension Plan for Hourly-Wage Employees to independent third parties.  
30
