Archer Daniels Midland 2009 Annual Report Download - page 79

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73
Archer Daniels Midland Company
Notes to Consolidated Financial Statements (Continued)
Note 15.
Segment and Geographic Information (Continued)
The Oilseeds Processing segment includes activities related to the crushing and origination of oilseeds such as
soybeans, cottonseed, sunflower seeds, canola, rapeseed, peanuts, and flaxseed into vegetable oils and protein
meals principally for the food and feed industries. In addition, oilseeds and oilseed products may be processed
internally or resold into the marketplace as raw materials for other processing. Crude vegetable oil is sold "as is"
or is further processed by refining, bleaching, and deodorizing into salad oils. Salad oils can be further
processed by hydrogenating and/or interesterifying into margarine, shortening, and other food products. Partially
refined oil is sold for use in paints and other industrial products. Refined oil can be further processed for use in
the production of biodiesel. Oilseed meals are primary ingredients used in the manufacture of commercial
livestock and poultry feeds. Oilseeds Processing includes activities related to the production of natural health
and nutrition products and the production of other specialty food and feed ingredients. This segment also
includes activities related to the Company’s interests in its unconsolidated affiliate in Asia, Wilmar International
Limited.
The Corn Processing segment includes activities related to the production of sweeteners, starches, dextrose, and
syrups primarily for the food and beverage industry as well as activities related to the production, by
fermentation, of bioproducts 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 barley,
and resells these commodities primarily as food and feed ingredients for the agricultural processing industry. In
addition, the Agricultural Services’ segment includes activities related to edible bean procurement, rice milling,
formula feed, and animal health and nutrition. Agricultural Services’ grain sourcing and transportation network
also provides reliable and efficient services to the Company’s agricultural processing operations. Also included in
Agricultural Services are the activities of A.C. Toepfer International, a global merchant of agricultural commodities
and processed products.
Other includes the Company’s remaining processing operations, consisting of activities related to processing
agricultural commodities into food ingredient products such as wheat into wheat flour, cocoa into chocolate and
cocoa products, barley into malt, and sugarcane into sugar and ethanol. Other also includes financial activities
related to banking, captive insurance, private equity fund investments, and futures commission merchant
activities.
Intersegment sales have been recorded at amounts approximating market. Operating profit for each segment is
based on net sales less identifiable operating expenses, including an interest charge related to working capital
usage. Also included in segment operating profit are equity in earnings of affiliates based on the equity method
of accounting. Unallocated corporate expenses, investment income, unallocated interest expense, marketable
securities transactions, FIFO to LIFO inventory adjustments and minority interest eliminations have been
excluded from segment operations and classified as Corporate.