Archer Daniels Midland 2006 Annual Report Download - page 50

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48 Archer Daniels Midland Company
The weighted-average remaining contractual term of options
outstanding and exercisable at June 30, 2006 is 7 years and
4 years, respectively. The aggregate intrinsic value of options
outstanding and exercisable at June 30, 2006 is $252 million
and $47 million, respectively. The weighted-average grant-date
fair values of options granted during 2006, 2005, and 2004
were $7.52, $5.41, and $4.72, respectively. The total intrinsic
values of options exercised during 2006, 2005, and 2004 were
$60 million, $33 million, and $18 million, respectively. Cash proceeds
received from options exercised during 2006, 2005, and 2004 were
$30 million, $31 million, and $39 million, respectively.
At June 30, 2006, there was $33 million of total unrecognized
compensation expense related to option grants. Amounts to
be recognized as compensation expense during the next five fiscal
years are $10 million, $9 million, $7 million, $4 million, and
$2 million, respectively.
The fair value of restricted shares is determined based on the market
value of the Company’s shares on the grant date. The weighted-
average grant-date fair values of shares granted during 2006 and
2005 were $22.04 and $15.73, respectively.
A summary of restricted shares activity during 2006 is presented
below:
Weighted-
Average
Grant-Date
Shares Fair Value
(In thousands,
except per share amounts)
Non-vested at June 30, 2005 . . . . . . . . . . . . . . . . . . . . . . . . . 4,434 $14.35
Granted ......................................... 2,447 22.04
Vested ........................................... (930) 11.33
Forfeited ........................................ (326) 15.93
Non-vested at June 30, 2006 . . . . . . . . . . . . . . . . . . . . . . . . . 5,625 $18.11
At June 30, 2006 there was $33 million of total unrecognized
compensation expense related to restricted shares. Amounts to be
recognized as compensation expense during the next three fiscal
years are $22 million, $10 million, and $1 million, respectively.
The total fair value of restricted shares vested during 2006 was
$11 million.
Note 8-Accumulated Other Comprehensive Income (Loss)
The following table sets forth information with respect to accumulated other comprehensive income (loss):
Foreign Deferred Minimum Unrealized Accumulated
Currency Gain (Loss) Pension Gain (Loss) Other
Translation on Hedging Liability on Comprehensive
Adjustment Activities Adjustment Investments Income (Loss)
(In thousands)
Balance at June 30, 2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (123,001) $ 14,174 $ (141,463) $ 83,332 $ (166,958)
Unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97,044 14,292 19,227 250,876 381,439
(Gains) losses reclassified to net earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (22,834) (11,042) (33,876)
Tax effect ..................................................................... 3,379 (9,330) (91,699) (97,650)
Net of tax amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97,044 (5,163) 9,897 148,135 249,913
Balance at June 30, 2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (25,957) 9,011 (131,566) 231,467 82,955
Unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,528 9,677 (53,274) 33,655 (1,414)
(Gains) losses reclassified to net earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14,292) (35,889) (50,181)
Tax effect ..................................................................... 1,705 19,685 (16,133) 5,257
Net of tax amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,528 (2,910) (33,589) (18,367) (46,338)
Balance at June 30, 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (17,429) 6,101 (165,155) 213,100 36,617
Unrealized gains (losses) ................................................... 107,356 (42,095) 212,315 (23,868) 253,708
(Gains) losses reclassified to net earnings ................................... (9,677) (16,653) (26,330)
Tax effect ................................................................... 21,749 (78,053) 6,680 (49,624)
Net of tax amount ........................................................... 107,356 (30,023) 134,262 (33,841) 177,754
Balance at June 30, 2006 ...................................................... $ 89,927 $(23,922) $(30,893) $179,259 $214,371
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)