Archer Daniels Midland 2009 Annual Report Download - page 60

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54
Archer Daniels Midland Company
Notes to Consolidated Financial Statements (Continued)
Note 5.
Marketable Securities and Cash Equivalents (Continued)
Of the $33 million in unrealized losses at June 30, 2009, $7 million arose within the last 12 months. The market
value of the investments that have been in an unrealized loss position for less than 12 months and for 12 months
and longer is $215 million and $34 million, respectively. The market value of United States government
obligations, government-sponsored enterprise obligations, and other debt securities with unrealized losses as of
June 30, 2009, is $210 million. The $4 million of unrealized losses associated with United States government
obligations, government sponsored enterprise obligations and other debt securities are not considered to be other-
than-temporary because the present value of expected cash flows to be collected is equivalent to or exceeds the
amortized cost basis of the securities. The market value of available-for-sale equity securities with unrealized
losses as of June 30, 2009, is $39 million. Of the $29 million in unrealized losses associated with available-for-sale
equity securities, $25 million is related to the Company’s investment in one security. In June 2009, the Company
recognized an $18 million other-than-temporary impairment related to an investment in an available-for-sale equity
security, based on the Company’s assessment of underlying market conditions. The Company does not intend to
sell any of its impaired debt and equity securities, and, based upon its evaluation, the Company does not believe it
is likely that the Company will be required to sell the investments before recovery of their amortized cost bases.
Note 6.
Investments in and Advances to Affiliates
The Company applies the equity method for investments in investees over which the Company has the ability to
exercise significant influence. The Company had 72 and 80 unconsolidated affiliates as of June 30, 2009 and
2008, respectively, located in North and South America, Africa, Europe, and Asia. The following table
summarizes the combined balance sheets as of June 30, 2009 and 2008, and the combined statements of earnings
of the Company’s unconsolidated affiliates for each of the three years ended June 30, 2009, 2008, and 2007.
2009
2008
2007
(In millions)
Current assets
$ 12,766
$ 15,111
Non-current assets
19,403
17,201
Current liabilities
(8,646)
(11,069)
Non-current liabilities
(3,751)
(2,799)
Minority interests
(681)
(720)
Net assets
$ 19,091
$ 17,724
Net sales
$41,205
$ 37,542
$ 25,127
Gross profit
5,682
4,575
3,123
Net income
816
2,503
1,684
Undistributed earnings of the Company’s unconsolidated affiliates as of June 30, 2009, are $938 million. The
company is a limited partner in various private equity funds which have a carrying value at June 30, 2009 of $83
million. The Company has future capital commitments 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.