Archer Daniels Midland 2007 Annual Report Download - page 56

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48
Archer Daniels Midland Company
Notes to Consolidated Financial Statements (Continued)
Note 3. Marketable Securities and Cash Equivalents (Continued)
Unrealized Unrealized
Cost Gains Losses Fair Value
2006 (In millions)
United States government obligations
Maturity less than 1 year $ 359 $
–
$
–
$ 359
Maturity 1 to 5 years 50
–
(1) 49
Government–sponsored enterprise
obligations
Maturity less than 1 year 249 1
–
250
Maturity 1 to 5 years 132
–
(2) 130
Maturity 5 to 10 years 55
–
(2) 53
Maturity greater than 10 years 180
–
(9) 171
Corporate debt securities
Maturity less than 1 year 5
–
–
5
Maturity 1 to 5 years 49
–
(1) 48
Maturity 5 to 10 years 3
–
–
3
Maturity greater than 10 years 5
–
–
5
Other debt securities
Maturity less than 1 year 355
–
–
355
Maturity 1 to 5 years 1
–
–
1
Maturity 5 to 10 years 1
–
–
1
Maturity greater than 10 years 9
–
–
9
Equity securities
Available-for-sale 318 321 (19) 620
Trading 20
–
–
20
$ 1,791 $ 322 $ (34) $ 2,079
Of the $27 million in unrealized losses at June 30, 2007, $2 million of unrealized losses arose within the last 12
months, $1 million of unrealized losses arose within the last 24 months, $21 million of unrealized losses arose
within the last 36 months, and the remaining $3 million of unrealized losses arose within the last 48 months. The
market value of United States government obligations, government-sponsored enterprise obligations, corporate
debt securities, and other debt securities with unrealized losses as of June 30, 2007, is $434 million. The $10
million of unrealized losses associated with United States government obligations, government-sponsored
enterprise obligations, corporate debt securities, and other debt securities are not considered to be other-than-
temporary because their unrealized losses are related to changes in interest rates and do not affect the expected cash
flows to be received upon maturity of these investments or the credit quality of the issuer. The market value of two
available-for-sale equity securities with unrealized losses as of June 30, 2007, is $45 million. The $17 million of
unrealized losses associated with these available-for-sale equity securities arose within the last 36 months and are
principally related to long-term strategic investments. The Company has the intent and ability to hold its debt and
equity securities for a period of time sufficient to recover all unrealized losses. The Company has not recognized
any other-than-temporary impairments for its debt and equity securities.