Archer Daniels Midland 2010 Annual Report Download - page 76

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72
Archer Daniels Midland Company
Notes to Consolidated Financial Statements (Continued)
Note 14.
Employee Benefit Plans
The Company provides substantially all domestic employees and employees 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 than five years of service prior to January 1, 2009 participate in a ―cash
balance‖ pension formula. The Company provides eligible domestic employees who retire under qualifying
conditions with access to postretirement health care, at full cost to the retiree (certain employees are
―grandfathered‖ into subsidized coverage).
The Company also maintains 401(k) plans covering substantially all domestic employees. The Company
contributes cash to the plans to match qualifying employee contributions, and also provides a non-matching
employer contribution of 1% of pay to eligible participants. Under an employee stock ownership component of
the 401(k) plans, employees may choose to invest in ADM stock as part of their own investment elections. The
employer contributions are expensed when paid. Assets of the Company‘s 401(k) plans consist primarily of
listed common stocks and pooled funds. The Company‘s 401(k) plans held 17.2 million shares of Company
common stock at June 30, 2010, with a market value of $443 million. Cash dividends received on shares of
Company common stock by these plans during the year ended June 30, 2010 were $10 million.
Pension Benefits
Postretirement Benefits
2010
2009
2008
2010
2009
2008
(In millions)
(In millions)
Retirement plan expense
Defined benefit plans:
Service cost (benefits earned during the
period)
$ 58
$ 52
$ 68
$ 9
$ 7
$ 9
Interest cost
119
111
109
16
13
12
Expected return on plan assets
(117)
(113)
(121)
–
–
–
Curtailment/Plan settlements
–
–
–
–
(15)
–
Amortization of actuarial loss
31
2
17
5
1
2
Other amortization
6
6
5
(1)
(1)
(1)
Net periodic defined benefit plan
expense
97
58
78
29
5
22
Defined contribution plans
40
35
31
–
–
–
Total retirement plan expense
$ 137
$ 93
$ 109
$ 29
$ 5
$ 22