Archer Daniels Midland 2009 Annual Report Download

Download and view the complete annual report

Please find the complete 2009 Archer Daniels Midland annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 96

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96

ARCHER DANIEL S MIDL AND COMPANY 2009 FORM 10 - K AND LETTER FROM THE CHAIRMAN
TO OUR SHAREHOLDERS AND EMPLOYE ES:
When a company serves vital
human needs, it must perform.
Period. Markets uctuate and
operating conditions vary, but the
work of sourcing, transporting,
processing and transforming
crops into food, feed and energy
products remains essential.
So ADM must perform.

Table of contents

  • Page 1
    ARCHER DANIELS MIDLAND COMPANY 2009 FORM 10-K AND LETTER FROM THE CHAIRMAN TO OUR SHAREHOLDERS AND EMPLOYEES: When a company serves vital human needs, it must perform. Period. Markets fluctuate and operating conditions vary, but the work of sourcing, transporting, processing and transforming crops...

  • Page 2
    02 ARCHER DANIELS MIDLAND COMPANY 2009 FORM 10-K AND LETTER FROM THE CHAIRMAN From 2006 to 2008 ADM delivered some of the best performance in our 107-year history. In a world of growing economies, rising expectations for high-quality food, increasing energy demands, crop dislocations, and market ...

  • Page 3
    ... facility to market higher-margin finished products. In Southeast Germany, we acquired a rapeseed processing facility to improve our access to the growing Eastern European market. And through our North American packaged-oil joint venture, Stratas Foods, LLC, we combined ADM's efficient origination...

  • Page 4
    ...In Decatur, Illinois, we completed the first phase of our glycols plant that will provide yet another use for the starch from our corn wet mill or the glycerin from our biodiesel plants. The propylene and ethylene glycol made at this facility will be a cost-effective, direct-replacement product for...

  • Page 5
    ... analysis, which is the foundation of an effort to develop and institute water-management guidelines for all ADM facilities globally. In Decatur, Illinois, we began a project to store, deep underground, carbon dioxide generated by our ethanol production, reducing overall carbon-dioxide emissions...

  • Page 6
    06 ARCHER DANIELS MIDLAND COMPANY 2009 FORM 10-K AND LETTER FROM THE CHAIRMAN Looking ahead All of these achievements were made possible by our 28,000 colleagues, whose industry acumen and ...

  • Page 7
    ... Commission file number 1-44 ARCHER-DANIELS-MIDLAND COMPANY (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 41-0129150 (I. R. S. Employer Identification No.) 4666 Faries Parkway Box 1470 Decatur, Illinois (Address...

  • Page 8
    ...last business day of the registrant's most recently completed second fiscal quarter. Common Stock, no par value--$18.1 billion (Based on the closing sale price of Common Stock as reported on the New York Stock Exchange as of December 31, 2008) Indicate the number of shares outstanding of each of the...

  • Page 9
    ..., Executive Officers and Corporate Governance Executive Compensation Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Certain Relationships and Related Transactions, and Director Independence Principal Accounting Fees and Services Part IV Exhibits and...

  • Page 10
    ... manufacturer of vegetable oil and protein meal, corn sweeteners, flour, biodiesel, ethanol, and other value-added food and feed ingredients. The Company also has an extensive grain elevator and transportation network to procure, store, clean, and transport agricultural commodities, such as oilseeds...

  • Page 11
    ... in this joint venture. Agricultural Services The Agricultural Services segment utilizes the Company's extensive grain elevator and transportation network in the United States to buy, store, clean, and transport agricultural commodities, such as oilseeds, corn, wheat, milo, oats, rice, and barley...

  • Page 12
    ...of the Company, which operated malting barley plants in the United States, Australia, New Zealand, and Canada. The Company has entered into Brazilian joint ventures for the purposes of growing sugarcane and the production of sugar and ethanol from sugarcane. Hickory Point Bank and Trust Company, fsb...

  • Page 13
    ... the Company's joint venture with ACH Jupiter, LLC, a subsidiary of Associated British Foods, which markets the packaged fats and oils products in North America. In addition, the Company is working to develop vegetable oil products with reduced saturated fats, and oils with lower levels of naturally...

  • Page 14
    ... semi-works volumes of PHA that are being used for market development by Telles, a joint venture of the Company and Metabolix The Company is constructing a 100,000 metric ton per-year propylene/ethylene glycol facility in Decatur, Illinois. In 2007, the Company entered into a development agreement...

  • Page 15
    ... Park, Kansas. Sales and development support for cocoa and chocolate products is performed in Milwaukee, Wisconsin, and Koog aan de Zaan, the Netherlands. Research and technical support for industrial and food wheat starch applications is conducted in Montreal, Canada. The Company uses technical...

  • Page 16
    ... them to, the Securities and Exchange Commission (SEC). In addition, the Company makes available, through its Internet site, the Company's Business Code of Conduct and Ethics, Corporate Governance Guidelines, and the written charters of the Audit, Compensation/Succession, Nominating/Corporate...

  • Page 17
    ... of agricultural commodities could also limit the Company's ability to procure, transport, store, process, and merchandise agricultural commodities in an efficient manner which could adversely affect the Company's profitability. In addition, the availability and price of agricultural commodities can...

  • Page 18
    ... taxes, tariffs, duties, subsidies, incentives, and import and export restrictions on agricultural commodities and commodity products, can influence the planting of certain crops, the location and size of crop production, whether unprocessed or processed commodity products are traded, the volume and...

  • Page 19
    ...affect the Company's operating results. The Company's risk management strategies may not be effective. The Company's business is affected by fluctuations in agricultural commodity prices, transportation costs, energy prices, interest rates, and foreign currency exchange rates. The Company engages in...

  • Page 20
    ...plants are located in Georgia, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Carolina, Tennessee, and Texas. The international plants are located in Bolivia, Brazil, Canada, England, Germany, India, Mexico, the Netherlands, Poland, and Ukraine. The Company...

  • Page 21
    ... eight grain export elevators in Florida, Louisiana, Ohio, and Texas. Elevators are located in Arkansas, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Montana, Nebraska, North Dakota, Ohio, Oklahoma, Tennessee, and Texas. These elevators have an aggregate storage capacity...

  • Page 22
    ... production capacity of approximately 3,000 metric tons. The domestic plants are located in Massachusetts, New Jersey, Pennsylvania, and Wisconsin, and the international plants are located in Belgium, Brazil, Canada, England, Germany, Ghana, Ivory Coast, the Netherlands, and Singapore. The Company...

  • Page 23
    ...the high and low market prices of the common stock as reported on the New York Stock Exchange and common stock cash dividends declared per share. Cash Dividends Per Share Market Price High Fiscal 2009-Quarter Ended June 30 March 31 December 31 September 30 Fiscal 2008-Quarter Ended June 30 March 31...

  • Page 24
    ... the three-month period ended June 30, 2009, the Company received 9,937 shares as payment of the exercise price for stock option exercises. (2) On November 4, 2004, the Company's Board of Directors approved a stock repurchase program authorizing the Company to repurchase up to 100,000,000 shares...

  • Page 25
    ...graph below compares five-year returns of the Company's common stock with those of the S&P 500 Index and the S&P Consumer Staples Index. The graph assumes all dividends have been reinvested and assumes an initial investment of $100 on June 30, 2004. Information in the graph is presented on a June 30...

  • Page 26
    ... to $0.44 per share) related to the exchange of the Company's interests in certain Asian joint ventures for shares of Wilmar International Limited, realized securities gains of $357 million ($225 million after tax, equal to $0.34 per share) related to the Company's sale of equity securities of Tyson...

  • Page 27
    ... such as ethanol, amino acids, and other food, feed and industrial products. The Agricultural Services segment utilizes the Company's extensive grain elevator and transportation network to buy, store, clean, and transport agricultural commodities, such as oilseeds, corn, wheat, milo, oats, rice, and...

  • Page 28
    ... prices on LIFO inventory valuation reserves, compared to a charge of $569 million in 2008. Income taxes for 2009 include charges of $158 million resulting from the restructuring of a holding company in which the Company holds a portion of its equity investment in Wilmar International Limited...

  • Page 29
    ... average selling prices of ethanol. Agricultural Services sales decreased 7% to $31.6 billion due principally to lower sales volumes of grain. Other sales decreased 1% to $5.4 billion primarily due to the sale of the Company's malting business during the first quarter of fiscal year 2009 and lower...

  • Page 30
    ... for value-added products. 2008 results for refining, packaging, biodiesel and other included asset abandonment charges of $27 million. Asia results increased $116 million due principally to the Company's share in improved operating results of Wilmar International Limited. Corn Processing operating...

  • Page 31
    ... in 2007 including $440 million related to the exchange of the Company's interest in certain Asian joint ventures for shares of Wilmar International Limited (the Wilmar gain), a $357 million realized securities gain from sales of the Company's equity securities of Tyson Foods, Inc. and Overseas...

  • Page 32
    ... of agricultural commodities, ethanol, and biodiesel, also contributed to the increase in net sales. In addition, net sales and other operating income increased $1.83 billion, or 4%, due to currency rate fluctuations. Net sales and other operating income by segment are as follows: 2008 Oilseeds...

  • Page 33
    ... increased $121 million in 2008, primarily related to improved operating results of the Company's investments in U.S. grain export, Asian oilseeds and peanut processing ventures. Other (income) expense - net also reflects $38 million in gains on sales of securities in 2008, $21 million in gains...

  • Page 34
    ... due to higher net corn costs, higher manufacturing expenses, and decreased average ethanol selling prices, partially offset by higher sales volumes for ethanol and, to a lesser extent, higher average lysine selling prices and higher lysine sales volumes. Agricultural Services operating profits...

  • Page 35
    .... As of June 30, 2009, the market price of the Company's common stock was not greater than the exercise price of the purchased call options or warrants related to the convertible senior notes. In June 2008, the Company issued $1.75 billion of debentures as a component of Equity Units (see Note 8 in...

  • Page 36
    ... accounting policies management considers critical to the Company's financial statements. Inventories and Derivatives Certain of the Company's merchandisable agricultural commodity inventories, forward fixed-price purchase and sale contracts, and exchange-traded futures and exchange-traded and over...

  • Page 37
    ...at certain international subsidiaries with pension benefits. Eligible domestic employees with five or more years of service prior to January 1, 2009 participate in a defined benefit pension plan. Eligible domestic employees hired on or after January 1, 2009 (and eligible salaried employees with less...

  • Page 38
    ... as they relate to the Company's net commodity position, foreign currency exchange rates, and interest rates as described below. Commodities The availability and price of agricultural commodities are subject to wide fluctuations due to factors such as weather, plantings, government programs and...

  • Page 39
    .... The Company's daily net commodity position consists of merchandisable agricultural commodity inventories, related purchase and sale contracts, and exchange-traded futures and exchange-traded and over-the-counter option contracts, including those contracts used to hedge portions of production...

  • Page 40
    ...10% adverse change in quoted foreign currency exchange rates is $664 million and $695 million for 2009 and 2008, respectively. Actual results may differ. Interest The fair value of the Company's long-term debt is estimated using quoted market prices, where available, and discounted future cash flows...

  • Page 41
    ... 78 Financial Statements Consolidated Statements of Earnings Consolidated Balance Sheets Consolidated Statements of Cash Flows Consolidated Statements of Shareholders' Equity Notes to Consolidated Financial Statements Reports of Independent Registered Public Accounting Firm 35

  • Page 42
    Archer Daniels Midland Company Consolidated Statements of Earnings Year Ended June 30 2009 2008 2007 (In millions, except per share amounts) Net sales and other operating income Cost of products sold Gross Profit Selling, general and administrative expenses Other (income) expense - net Earnings ...

  • Page 43
    Archer Daniels Midland Company Consolidated Balance Sheets June 30 2009 (In millions) Assets Current Assets Cash and cash equivalents ... Assets Property, Plant, and Equipment Land Buildings Machinery and equipment Construction in progress Accumulated depreciation Net Property, Plant, and Equipment ...

  • Page 44
    Archer Daniels Midland Company Consolidated Statements of Cash Flows 2009 Operating Activities Net earnings Adjustments to reconcile net earnings to net cash provided by (used in) operating activities Depreciation Asset abandonments and impairments Deferred income taxes (Gain) loss on sales of ...

  • Page 45
    Archer Daniels Midland Company Consolidated Statements of Shareholders' Equity Accumulated Other Total Comprehensive Shareholders' Income Equity Common Stock Shares Amount Reinvested Earnings (In millions) Balance June 30, 2006 Comprehensive income Net earnings Other comprehensive income Total ...

  • Page 46
    Archer Daniels Midland Company Notes to Consolidated Financial Statements Note 1. Summary of Significant Accounting Policies Nature of Business The Company is principally engaged in procuring, transporting, storing, processing, and merchandising agricultural commodities and products. Principles ...

  • Page 47
    .... Collateral is generally not required for the Company's trade receivables. Trade accounts receivable due from unconsolidated affiliates as of June 30, 2009 and 2008 was $301 million and $199 million, respectively. Inventories Inventories of certain merchandisable agricultural commodities, which...

  • Page 48
    Archer Daniels Midland Company Notes to Consolidated Financial Statements (Continued) Note 1. Net Sales The Company follows a policy of recognizing sales revenue at the time of delivery of the product and when all of the following have occurred: a sales agreement is in place, pricing is fixed or ...

  • Page 49
    Archer Daniels Midland Company Notes to Consolidated Financial Statements (Continued) Note 1. Summary of Significant Accounting Policies (Continued) During December 2007, the FASB issued SFAS No. 160, Accounting and Reporting of Noncontrolling Interests in Consolidated Financial Statements, an ...

  • Page 50
    Archer Daniels Midland Company Notes to Consolidated Financial Statements (Continued) Note 1. Summary of Significant Accounting Policies (Continued) During April 2009, the FASB issued three FSPs that are intended to provide additional application guidance and enhance disclosures about fair value ...

  • Page 51
    Archer Daniels Midland Company Notes to Consolidated Financial Statements (Continued) Note 2. Acquisitions (Continued) 2009 Acquisitions During 2009, the Company acquired ten businesses for a total cost of $198 million and recorded a preliminary allocation of the purchase price related to these ...

  • Page 52
    Archer Daniels Midland Company Notes to Consolidated Financial Statements (Continued) Note 3. Fair Value Measurements (Continued) Level 2: Observable inputs, including Level 1 prices that have been adjusted; quoted prices for similar assets or liabilities; quoted prices in markets that are less ...

  • Page 53
    ...component of cost of products sold. The Company's derivative contracts that are measured at fair value include forward commodity purchase and sale contracts, exchange-traded commodity futures and option contracts, and OTC instruments related primarily to agricultural commodities, energy, and foreign...

  • Page 54
    Archer Daniels Midland Company Notes to ...Net (In millions) $ (6) $ 10 Total Balance, June 30, 2008 Total gains (losses), realized or unrealized, included in earnings before income taxes* Purchases, issuances and settlements Transfers in and/or out of Level 3 Ending balance, June 30, 2009...

  • Page 55
    ... Company generally follows a policy of using exchange-traded futures and exchange-traded and over-the-counter (OTC) options contracts to minimize its net position of merchandisable agricultural commodity inventories and forward cash purchase and sales contracts and foreign exchange risk. The Company...

  • Page 56
    Archer Daniels Midland Company... instrument is reported as a component...net sales and other operating income, or cost of products sold. As of June 30, 2009, the Company has $25 million of after-tax losses in AOCI related to gains and losses from commodity cash flow hedge transactions. The Company...

  • Page 57
    ...anticipated monthly natural gas purchases. To protect against fluctuations in cash flows due to changes in foreign currency exchange rates, the Company from time to time will use forward foreign exchange contracts with banks as foreign currency cash flow hedge programs. Certain production facilities...

  • Page 58
    Archer Daniels Midland Company Notes to Consolidated Financial Statements (Continued) Note 4. Inventories, Derivative Instruments & Hedging Activities (Continued) The following table sets forth the fair value of derivatives designated as hedging instruments under SFAS 133 as of June 30, 2009. ...

  • Page 59
    Archer Daniels Midland Company Notes to Consolidated Financial Statements (Continued) Note 5. Marketable Securities and Cash Equivalents Cost Unrealized Unrealized Gains Losses (In millions) Fair Value 2009 United States government obligations Maturity less than 1 year Maturity 1 to 5 years ...

  • Page 60
    ... related to these partnerships of $114 million as of June 30, 2009. The Company has a direct investment in two foreign affiliates which have a carrying value of $963 million as of June 30, 2009, and a market value of $3.1 billion based on quoted market prices and exchange rates at August 26, 2009...

  • Page 61
    ... in Agricore United for cash of $321 million and recognized a gain of $153 million. During June 2007, the Company exchanged its ownership interests in eleven Asian joint venture companies for shares of Wilmar International Limited (WIL), a Singapore publicly listed company. In exchange for its...

  • Page 62
    Archer Daniels Midland Company Notes to Consolidated Financial Statements (Continued) Note 8. Debt and Financing Arrangements 2009 2008 (In millions) 4.70% Debentures $1,750 million face amount, due in 2041 0.875% Convertible Senior Notes $1,150 million face amount, due in 2014 5.45% Notes $700 ...

  • Page 63
    Archer Daniels Midland Company Notes to Consolidated Financial Statements (Continued) Note 8. Debt and Financing Arrangements (Continued) In fiscal year 2008, the Company issued $3.10 billion of additional long-term debt, including $500 million of debentures issued in December 2007, $700 million ...

  • Page 64
    ... the Notes had been satisfied. In addition, as of June 30, 2009, the market price of the Company's common stock was not greater than the exercise price of the purchased call options or warrants. As of June 30, 2009, no share amounts related to the conversion of the Notes or exercise of the warrants...

  • Page 65
    ... for the granting of restricted stock and restricted stock units (Restricted Stock Awards) at no cost to certain officers and key employees. The awards are made in common stock or stock units with equivalent rights and vest at the end of a three-year restriction period. During 2009, 2008, and 2007...

  • Page 66
    Archer Daniels Midland Company Notes to Consolidated Financial Statements (Continued) Note 9. Shareholders' Equity (Continued) The fair value of each option grant is estimated as of the date of grant using the Black-Scholes single option pricing model. The volatility assumption used in the Black-...

  • Page 67
    Archer Daniels Midland Company Notes to Consolidated Financial Statements (Continued) Note 9. Shareholders' Equity (Continued) The fair value of Restricted Stock Awards is determined based on the market value of the Company's shares on the grant date. The weighted-average grant-date fair values ...

  • Page 68
    Archer Daniels Midland Company Notes to Consolidated Financial Statements (Continued) Note 10. Accumulated Other Comprehensive Income The following table sets forth information with respect to accumulated other comprehensive income: Foreign Currency Translation Adjustment Deferred Gain (Loss) on ...

  • Page 69
    Archer Daniels Midland Company Notes to Consolidated Financial Statements (Continued) Note 11. Other (Income) Expense - Net 2009 2008 (In millions) $ 477 (269) - (38) (9) (8) (415) 61 $(201) 2007 $ 434 (257) 46 (393) (440) (209) (294) 1 $(1,112) Interest expense Investment income Loss on ...

  • Page 70
    Archer Daniels Midland Company Notes to Consolidated Financial Statements (Continued) Note 12. Income Taxes (Continued) Significant components of deferred tax liabilities and assets are as follows. 2008 amounts have been reclassified to conform to current year presentation. 2009 (In millions) ...

  • Page 71
    Archer Daniels Midland Company Notes to Consolidated Financial Statements (Continued) Note 12. Income Taxes (Continued) The Company has $55 million and $69 million of tax assets for net operating loss carry-forwards related to certain international subsidiaries at June 30, 2009 and 2008, ...

  • Page 72
    ... classifies interest on income tax related balances as interest expense or interest income and classifies tax-related penalties as selling, general and administrative expenses. At June 30, 2009 and 2008, the Company had accrued interest and penalties on unrecognized tax benefits of $22 million and...

  • Page 73
    ...at certain international subsidiaries with pension benefits. Eligible domestic employees with five or more years of service prior to January 1, 2009 participate in a defined benefit pension plan. Eligible domestic employees hired on or after January 1, 2009 (and eligible salaried employees with less...

  • Page 74
    Archer Daniels Midland Company Notes to Consolidated Financial Statements (Continued) Note 14. Employee Benefit Plans (Continued) Pension Benefits 2009 2008 2007 (In millions) Postretirement Benefits 2009 2008 2007 (In millions) Retirement plan expense Defined benefit plans: Service cost (...

  • Page 75
    Archer Daniels Midland Company Notes to Consolidated Financial Statements (Continued) Note 14. Employee Benefit Plans (Continued) Pension Benefits 2009 2008 (In millions) $ 1,916 $ 1,851 68 52 109 111 (242) 160 3 2 - (15) - 39 (78) (94) 6 (2) 69 (92) $ 1,851 $ 2,012 $ 1,662 (283) 217 2 (15) 27 (94...

  • Page 76
    Archer Daniels Midland Company Notes to Consolidated Financial Statements (Continued) Note 14. Employee Benefit Plans (Continued) Included in accumulated other comprehensive income for pension benefits at June 30, 2009, are the following amounts that have not yet been recognized in net periodic ...

  • Page 77
    Archer Daniels Midland Company Notes to Consolidated Financial Statements (Continued) Note 14. Plan Assets Employee Benefit Plans (Continued) The following table sets forth the actual asset allocation for the Company's global pension plan assets as of the measurement date: 20091, 2 Equity ...

  • Page 78
    ..., transporting, storing, processing, and merchandising agricultural commodities and products. The Company's operations are classified into three reportable business segments: Oilseeds Processing, Corn Processing and Agricultural Services. Each of these segments is organized based upon the nature of...

  • Page 79
    ... such as ethanol, amino acids, and other food, feed and industrial products. The Agricultural Services segment utilizes the Company's extensive grain elevator and transportation network to buy, store, clean, and transport agricultural commodities, such as oilseeds, corn, wheat, milo, oats, rice, and...

  • Page 80
    Archer Daniels Midland Company Notes to Consolidated Financial Statements (Continued) Note 15. Segment and Geographic Information (Continued) Segment Information 2009 Sales to external customers Oilseeds Processing Corn Processing Agricultural Services Other Total Intersegment sales Oilseeds ...

  • Page 81
    Archer Daniels Midland Company Notes to Consolidated Financial Statements (Continued) Note 15. Segment and Geographic Information (Continued) 2009 2008 (In millions) 36 29 79 37 181 $ 24 48 136 61 269 2007 Investment income Oilseeds Processing Agricultural Services Other Corporate Total Equity in...

  • Page 82
    Archer Daniels Midland Company Notes to Consolidated Financial Statements (Continued) Note 15. Segment and Geographic Information (Continued) 2009 2008 (In millions) Gross additions to property, plant, and equipment Oilseeds Processing Corn Processing Agricultural Services Other Corporate Total $ ...

  • Page 83
    ... tax equal to $0.27 per share), respectively, related to equity losses resulting from currency derivative losses of the Company's investee, Gruma S.A.B. de C.V. Net earnings for the third quarter ended March 31, 2009, and fourth quarter and year ended June 30, 2009 include income tax charges of $97...

  • Page 84
    Report of Independent Registered Public Accounting Firm The Board of Directors and Shareholders Archer Daniels Midland Company Decatur, Illinois We have audited the accompanying consolidated balance sheets of Archer Daniels Midland Company (the Company) as of June 30, 2009 and 2008, and the related...

  • Page 85
    ... Midland Company Decatur, Illinois We have audited Archer Daniels Midland Company's internal control over financial reporting as of June 30, 2009, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission...

  • Page 86
    ...reporting during the Company's most recently completed fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company's internal controls over financial reporting. MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING Archer Daniels Midland Company...

  • Page 87
    ...," "Code of Conduct," "Information Concerning Committees and Meetings - Audit Committee," "Report of the Audit Committee," and "Section 16(a) Beneficial Ownership Reporting Compliance," of the definitive proxy statement for the Company's annual meeting of stockholders to be held on November 5, 2009...

  • Page 88
    ...President with AON/ International Risk Management Company, Inc. from 1989 to November 1999. Vice President and Treasurer from November 2004. Various treasury positions with General Motors Corporation from 1993 to 2004. Executive Vice President and Chief Financial Officer from March 2008. Senior Vice...

  • Page 89
    .... Finance Director-Europe from January 2001 to July 2005. Various financial and treasury positions from 1992 to 2001. 53 Victoria Podesta John D. Rice 55 Dennis C. Riddle 62 Scott A. Roberts 49 Ismael Roig 42 Scott A. Roney 45 Marc A. Sanner 56 David J. Smith 54 John P. Stott 42 83

  • Page 90
    ... Fiscal 2009" of the definitive proxy statement for the Company's annual meeting of stockholders to be held on November 5, 2009, and is incorporated herein by reference. Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS Information responsive...

  • Page 91
    ... 2008 2009 (1) (2) $ 54 $ 69 $ 89 2 7 21 16 19 (1) $ 69 $ 89 $103 Uncollectible accounts written off, net of recoveries Impact of reclassifications, business combinations, and foreign currency exchange adjustments All other schedules are either not required, not applicable, or the information...

  • Page 92
    ...due September 15, 2035. (ii) Indenture dated September 20, 2006, between the Company and The Bank of New York, as Trustee (incorporated by reference to Exhibit 4 to Registration Statement on Form S-3, Registration No. 333-137541), relating to: the $500,000,000 - 6.45% Debentures due January 15, 2038...

  • Page 93
    ... Plan for Salaried Employees and the ADM Employee Stock Ownership Plan for Hourly Employees. (vi) The Archer-Daniels-Midland Company Incentive Compensation Plan (incorporated by reference to Exhibit A to the Company's Definitive Proxy Statement filed with the Securities and Exchange Commission on...

  • Page 94
    ... as Exhibit 10.1 to the Company's Current Report on Form 8-K (File No. 1-44). (xvi) Transition Agreement between Archer-Daniels-Midland Company and G. Allen Andreas dated May 5, 2006 filed on May 8, 2006, as Exhibit 10.1 to the Company's Current Report on Form 8-K (File No. 1-44). (xvii) Annual Cash...

  • Page 95
    ...the undersigned, thereunto duly authorized. Date: August 26, 2009 ARCHER-DANIELS-MIDLAND COMPANY By: /s/ D. J. Smith D. J. Smith Executive Vice President, Secretary and General Counsel Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below on August 26...

  • Page 96
    .... STOCK EXCHANGES NOTICE OF ANNUAL MEETING Archer Daniels Midland Company common stock is listed and traded on the New York Stock Exchange and the Frankfurt Stock Exchange. Ticker Symbol: ADM. TRANSFER AGENT AND REGISTRAR Hickory Point Bank and Trust, fsb 1099 W. Wood St., Suite G Decatur, IL...