Archer Daniels Midland 2006 Annual Report Download - page 56

54 Archer Daniels Midland Company
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Segment Information
2006 2005 2004
(In thousands)
Sales to external customers
Oilseeds Processing . . . . . . . . . . . . . $11,866,895 $11,803,309 $12,049,250
Corn Processing . . . . . . . . . . . . . . . . 4,860,083 4,363,924 4,005,181
Agricultural Services . . . . . . . . . . . . 15,439,567 15,198,831 15,638,341
Other ........................ 4,429,566 4,577,746 4,458,622
Total ......................... $36,596,111 $35,943,810 $36,151,394
Intersegment sales
Oilseeds Processing . . . . . . . . . . . . . $ 151,019 $ 158,519 $ 178,056
Corn Processing . . . . . . . . . . . . . . . . 367,504 398,252 315,173
Agricultural Services . . . . . . . . . . . . 1,207,426 1,084,477 2,192,090
Other ........................ 115,020 109,268 108,655
Total ......................... $1,840,969 $ 1,750,516 $ 2,793,974
Net sales
Oilseeds Processing . . . . . . . . . . . . . $12,017,914 $11,961,828 $12,227,306
Corn Processing . . . . . . . . . . . . . . . . 5,227,587 4,762,176 4,320,354
Agricultural Services . . . . . . . . . . . . 16,646,993 16,283,308 17,830,431
Other ........................ 4,544,586 4,687,014 4,567,277
Intersegment elimination . . . . . . . . (1,840,969) (1,750,516) (2,793,974)
Total ......................... $36,596,111 $35,943,810 $36,151,394
Interest expense
Oilseeds Processing . . . . . . . . . . . . . $ 84,698 $ 51,994 $ 36,942
Corn Processing . . . . . . . . . . . . . . . . 30,592 19,600 9,931
Agricultural Services . . . . . . . . . . . . 68,111 42,620 43,424
Other ........................ 113,869 77,956 56,387
Corporate ..................... 67,910 134,410 195,307
Total ......................... $ 365,180 $ 326,580 $ 341,991
Depreciation
Oilseeds Processing . . . . . . . . . . . . . $ 155,538 $ 162,290 $ 168,836
Corn Processing . . . . . . . . . . . . . . . . 264,853 265,419 268,968
Agricultural Services . . . . . . . . . . . . 74,964 74,124 79,987
Other ........................ 137,295 139,502 144,625
Corporate ..................... 24,064 23,317 23,197
Total ......................... $ 656,714 $ 664,652 $ 685,613
Equity in earnings of affiliates
Oilseeds Processing . . . . . . . . . . . . . $ 61,174 $ 18,346 $ 30,475
Corn Processing . . . . . . . . . . . . . . . . 49,774 39,962 33,286
Agricultural Services . . . . . . . . . . . . 18,571 17,879 12,359
Other ........................ 32,695 106,443 88,919
Corporate ..................... 12,125 46,235 15,677
Total ......................... $ 174,339 $ 228,865 $ 180,716
Operating profit
Oilseeds Processing . . . . . . . . . . . . . $ 598,414 $ 344,654 $ 290,732
Corn Processing . . . . . . . . . . . . . . . . 877,358 530,233 660,947
Agricultural Services . . . . . . . . . . . . 275,469 261,659 249,863
Other ........................ 309,949 414,394 359,469
Total operating profit . . . . . . . . . . . 2,061,190 1,550,940 1,561,011
Corporate ..................... (205,940) (34,565) (843,000)
Earnings before income taxes . . . . . $ 1,855,250 $ 1,516,375 $ 718,011
Investments in and advances to affiliates
Oilseeds Processing . . . . . . . . . . . . . $ 430,040 $ 356,124
Corn Processing . . . . . . . . . . . . . . . . 204,457 163,817
Agricultural Services . . . . . . . . . . . . 231,026 207,805
Other ........................ 744,243 805,527
Corporate ..................... 375,896 346,228
Total ......................... $ 1,985,662 $ 1,879,501
2006 2005 2004
(In thousands)
Identifiable assets
Oilseeds Processing . . . . . . . . . . . . . $ 5,522,442 $ 5,169,644
Corn Processing . . . . . . . . . . . . . . . . 3,026,926 2,769,364
Agricultural Services . . . . . . . . . . . . 3,246,816 2,912,294
Other ........................ 6,659,699 5,911,916
Corporate ..................... 2,813,147 1,834,887
Total ......................... $21,269,030 $18,598,105
Gross additions to property, plant, and equipment
Oilseeds Processing . . . . . . . . . . . . . $ 215,861 $ 192,790
Corn Processing . . . . . . . . . . . . . . . . 313,365 263,483
Agricultural Services . . . . . . . . . . . . 157,720 82,910
Other ........................ 140,330 93,211
Corporate ..................... 13,293 14,984
Total ......................... $ 840,569 $ 647,378
Geographic Information: The following geographic area data
include net sales and other operating income attributed to the
countries based on the location of the subsidiary making the sale and
long-lived assets based on physical location. Long-lived assets
represent the sum of the net book value of property, plant, and
equipment plus goodwill related to consolidated businesses.
2006 2005 2004
(In thousands)
Net sales and other operating income
United States . . . . . . . . . . . . . . . . . . $20,358,068 $19,450,145 $19,105,933
Germany ..................... 5,396,228 5,990,702 6,108,079
Other foreign . . . . . . . . . . . . . . . . . . 10,841,815 10,502,963 10,937,382
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $36,596,111 $35,943,810 $36,151,394
Long-lived assets
United States . . . . . . . . . . . . . . . . . . $ 3,975,424 $ 3,920,060
Foreign ....................... 1,547,049 1,497,482
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,522,473 $ 5,417,542
Note 14-Guarantees
The Company has entered into agreements, primarily debt guarantee
agreements related to equity-method investees, which could obligate
the Company to make future payments if the primary entity fails to
perform its contractual obligation. The Company has not recorded a
liability for payment of these contingent obligations, as the Company
believes the fair value of these contingent obligations is immaterial.
The Company has collateral for a portion of these contingent
obligations. These contingent obligations totaled $250 million
at June 30, 2006. Amounts outstanding under these contingent
obligations were $159 million at June 30, 2006.
Note 15-Antitrust Litigation Settlement
In 2004, the Company entered into a settlement agreement related
to a class action antitrust suit involving the sale of high-fructose
corn syrup pursuant to which the Company accrued $400 million
($252 million after tax). The $400 million was paid in 2005.