Archer Daniels Midland 2011 Annual Report Download

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2011
Letter to Shareholders
& Form 10-K

Table of contents

  • Page 1
    2011 Letter to Shareholders & Form 10-K

  • Page 2
    ... our Oilseeds business unit 2011 performance: record operating profits of $1.5 billion―up 9 percent over 2010―on strengths in our origination and crushing, and our refining, packaging and biodiesel businesses. Looking ahead, expanding sourcing, processing and export capabilities in South America...

  • Page 3
    ...seed receiving and storage capacity at our Lloydminster, Alberta, processing plant. We also acquired full ownership of the Golden Peanut Company, LLC, and a grain storage facility in Estill, South Carolina. Global growth in agricultural services Greater crop volumes will be needed-today and tomorrow...

  • Page 4
    ...increasingly competitive world. By naming Juan R. Luciano as executive vice president and chief operating officer, and appointing Ray G. Young senior vice president and chief financial officer, we have brought additional global business acumen and valuable outside perspectives to our management team...

  • Page 5
    ... Identification No.) 4666 Faries Parkway Box 1470 Decatur, Illinois (Address of principal executive offices) 62525 (Zip Code) 217-424-5200 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of each class Name of each exchange...

  • Page 6
    ..., as of the last business day of the registrant's most recently completed second fiscal quarter. Common Stock, no par value--$18.7 billion (Based on the closing sale price of Common Stock as reported on the New York Stock Exchange as of December 31, 2010) Indicate the number of shares outstanding of...

  • Page 7
    ... Supplementary Data Changes in and Disagreements With Accountants on Accounting and Financial Disclosure Controls and Procedures Other Information Part III Directors, Executive Officers and Corporate Governance Executive Compensation Security Ownership of Certain Beneficial Owners and Management and...

  • Page 8
    ... 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, corn, wheat, milo, oats, and barley, as well as processed agricultural...

  • Page 9
    ...of Golden Peanut in the third quarter of fiscal 2011. The Company has a 50% interest in Edible Oils Limited, a joint venture between the Company and Princes Limited to procure, package, and sell edible oils in the United Kingdom. The Company also formed a joint venture with Princes Limited in Poland...

  • Page 10
    ... of agricultural commodities and processed products. Toepfer has 36 sales offices worldwide and operates inland, river, and export facilities in Argentina, Romania, Ukraine, and the United States. The Company has a 45% interest in Kalama Export Company, a grain export elevator in Washington...

  • Page 11
    ...Gruma, in nine Mexican wheat flour mills. The Company procures, transports, and processes cocoa beans and produces cocoa liquor, cocoa butter, cocoa powder, chocolate, and various compounds in North America, South America, Europe, Asia, and Africa for the food processing industry. Hickory Point Bank...

  • Page 12
    ...Income 2011 2010 2009 Soybeans Corn Soybean Meal Status of New Products The Company continues to expand the size and global reach of its business through the development of new products. The Company does not expect any of the following products to have a significant impact on the Company's net sales...

  • Page 13
    ... and changes in standards of living, and global production of similar and competitive crops. The Company's raw materials are procured from thousands of growers, grain elevators, and wholesale merchants in North America, South America, Europe, Asia, and Africa, pursuant primarily to short-term (less...

  • Page 14
    ... project, Illinois Basin Decatur Project (IBDP) led by Midwest Geological Sequestration Consortium (MGSC), has finished construction and expects to start operations in the third quarter of calendar year 2011. The second project, the Illinois Industrial Carbon Capture & Sequestration (IL-ICCS), has...

  • Page 15
    ... address is http://www.sec.gov. Item 1A. RISK FACTORS The availability and prices of the agricultural commodities and agricultural commodity products the Company procures, transports, stores, processes, and merchandises can be affected by weather conditions, disease, government programs, competition...

  • Page 16
    ... modified organisms, renewable fuel, and low carbon fuel mandates, 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 types of imports and exports, the availability and competitiveness...

  • Page 17
    ... to modify existing processing facilities and/or processes which could significantly increase operating costs and adversely affect operating results. The Company is exposed to potential business disruption, including but not limited to disruption of transportation services, supply of non-commodity...

  • Page 18
    ..., human resources benefits and payroll management, complying with regulatory, legal or tax requirements, and other processes necessary to manage the business. The Company has put in place disaster recovery plans for its critical systems. However, if the Company's information technology systems...

  • Page 19
    ...Iowa, Kansas, Minnesota, Missouri, Nebraska, North Carolina, North Dakota, Ohio, South Carolina, Tennessee, and Texas. The international plants are located in Argentina, Bolivia, Brazil, Canada, Czech Republic, Germany, India, Mexico, the Netherlands, Poland, Ukraine, and United Kingdom. The Company...

  • Page 20
    ...and also operates 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...

  • Page 21
    ... plants are located in Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Montana, Nebraska, Ohio, Pennsylvania, Texas, Washington, and Wisconsin. The international plants are located in Canada, China, Puerto Rico, and Trinidad & Tobago. Other United...

  • Page 22
    ...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 2011-Quarter Ended June 30 March 31 December 31 September 30 Fiscal 2010-Quarter Ended June 30 March 31...

  • Page 23
    ... the three-month period ended June 30, 2011, the Company received 1,457 shares as payment for the exercise price of stock option exercises. (2) On November 5, 2009, the Company's Board of Directors approved a stock repurchase program authorizing the Company to repurchase up to 100,000,000 shares...

  • Page 24
    ... 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, 2006. Information in the graph is presented on a June 30 fiscal year basis. Graph produced by Research Data Group, Inc. 20

  • Page 25
    ... data shown above are as follows: • Net earnings attributable to controlling interests for 2011 include a gain of $71 million ($44 million after tax, equal to $0.07 per share) related to the acquisition of the remaining interest in Golden Peanut, start up costs for the Company's significant new...

  • Page 26
    ...per share) related to the reorganization of the holding company structure in which the Company holds a portion of its equity investment in Wilmar. For further information concerning Wilmar-related tax matters, see Note 13 in Item 8. Net earnings attributable to controlling interests for 2007 include...

  • Page 27
    ... operating results of Golden Peanut, its previously 50% owned joint venture, in the third quarter of fiscal 2011. The Oilseeds Processing segment also includes the Company's share of the results of its equity investment in Wilmar and its share of results for its Edible Oils Limited and Stratas Foods...

  • Page 28
    ... oil and protein meal. Other Corn Processing products include citric and lactic acids, lactates, sorbitol, xanthan gum, and glycols which are used in various food and industrial products. The Corn Processing segment includes the activities of the Company's Brazilian sugarcane operations, propylene...

  • Page 29
    ... and competitive crops. Due to these unpredictable factors, the Company does not provide forward-looking information in "Management's Discussion and Analysis of Financial Condition and Results of Operations." 2011 Compared to 2010 As an agricultural commodity-based business, the Company is subject...

  • Page 30
    ... to higher average selling prices for vegetable oils, soybeans, biodiesel, and protein meal. Corn Processing sales increased 26% to $9.9 billion due to higher average selling prices and increased sales volumes of ethanol and other corn products, in part due to the Company's two new ethanol dry mills...

  • Page 31
    ... the prior year caused by decreasing agricultural commodity prices. Manufacturing expenses increased $410 million due primarily to higher processed volumes, including the volumes of the Company's new greenfield operations coming on-line, and higher average unit costs for certain chemicals and fuels...

  • Page 32
    ... profit by segment is as follows: 2011 Oilseeds Processing Crushing and Origination Refining, Packaging, Biodiesel and Other Asia Total Oilseeds Processing Corn Processing Sweeteners and Starches Bioproducts Total Corn Processing Agricultural Services Merchandising and Handling Transportation Total...

  • Page 33
    ... to generally lower and less volatile agricultural commodity market prices and conditions. In addition, the late, extended U.S. harvest reduced profit opportunities. North American oilseed exports and U.S. crushing volumes were enhanced in 2010 by the poor supply of 2009 crop year soybeans in South...

  • Page 34
    ... meal, refined oil, and biodiesel partially offset by increased sales volumes of soybeans and fertilizer. Corn Processing sales increased 3% to $7.9 billion primarily as a result of increased sales volumes of ethanol and lysine partially offset by lower average selling prices of ethanol, sweeteners...

  • Page 35
    ...during 2010 was 25.8%. In 2009, the effective income tax rate was 32.5% which included $158 million of income tax charges related to the partial restructuring of the holding company structure through which the Company holds a portion of its equity investment in Wilmar. Excluding these Wilmar charges...

  • Page 36
    ... profit by segment is as follows: 2010 Oilseeds Processing Crushing and Origination Refining, Packaging, Biodiesel and Other Asia Total Oilseeds Processing Corn Processing Sweeteners and Starches Bioproducts Total Corn Processing Agricultural Services Merchandising and Handling Transportation Total...

  • Page 37
    ...in 2010 benefited from strong demand for U.S. soybean exports following the short South American 2009 crop. Transportation results decreased $77 million due to lower barge freight rates and decreased barge utilization levels resulting from weaker U.S. economic conditions and the late, extended North...

  • Page 38
    ... net worth as well as limitations related to incurring liens, secured debt, and certain other financing arrangements. The Company is in compliance with these covenants as of June 30, 2011. Contractual Obligations and Off-Balance Sheet Arrangements In the normal course of business, the Company...

  • Page 39
    ...hedges to fix the purchase price of anticipated volumes of commodities to be purchased and processed in a future month, to fix the purchase price of the Company's anticipated natural gas requirements for certain production facilities, and to fix the sales price of anticipated volumes of ethanol. The...

  • Page 40
    ...with five or more years of service prior to January 1, 2009 participate in a defined benefit pension plan. Eligible U.S. 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...

  • Page 41
    ... equipment, technology, and companies related to new, value-added products produced from agricultural commodities and products. These new products are not always successful from either a commercial production or marketing perspective. Management evaluates the Company's property, plant, and equipment...

  • Page 42
    ... competitive crops. The Company enters into derivative and non-derivative contracts with the primary objective of managing the Company's exposure to adverse price movements in the agricultural commodities used for, and produced in, our business operations. The Company will also use exchange-traded...

  • Page 43
    Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK (Continued) Currencies The Company conducts its business in over 75 countries. For the majority of the Company's subsidiaries located outside the United States, the local currency is the functional currency. To reduce the risks ...

  • Page 44
    ...8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Page No. 41 42 43 44 45 87 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...

  • Page 45
    Archer-Daniels-Midland Company Consolidated Statements of Earnings Year Ended June 30 2011 2010 2009 (In millions, except per share amounts) Net sales and other operating income Cost of products sold Gross Profit Selling, general...1,684 Average number of shares outstanding - basic Average number of ...

  • Page 46
    Archer-Daniels-Midland Company Consolidated Balance Sheets June 30 2011 (In millions) ...Reinvested earnings Accumulated other comprehensive income (loss) Noncontrolling interests Total Shareholders' Equity Total Liabilities and Shareholders' Equity See notes to consolidated financial statements. 2010...

  • Page 47
    Archer-Daniels-Midland Company Consolidated Statements of Cash Flows Year Ended June 30 2010 (In millions) $ 1,919 2011 Operating Activities Net earnings including noncontrolling interests Adjustments to reconcile net earnings to net cash provided by (used in) operating activities Depreciation and ...

  • Page 48
    Archer-Daniels-Midland Company Consolidated Statements of Shareholders' Equity Common Stock Shares Amount Accumulated Other Reinvested Comprehensive Noncontrolling Earnings Income (Loss) Interests (In millions) Total Shareholders' Equity Balance June 30, 2008 Comprehensive income Net earnings ...

  • Page 49
    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 50
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 1. Summary of Significant Accounting Policies (Continued) Reclassifications Other (income) expense - net in prior years' consolidated statement of earnings has been reclassified to conform to the current year...

  • Page 51
    ... agreement is in place, pricing is fixed or determinable, and collection is reasonably assured. Freight costs and handling charges related to sales are recorded as a component of cost of products sold. Net sales to unconsolidated affiliates during 2011, 2010, and 2009 were $7.1 billion, $7.1 billion...

  • Page 52
    ... by government grants, were $60 million, $56 million, and $50 million for the years ended June 30, 2011, 2010, and 2009, respectively. Per Share Data Basic earnings per common share are determined by dividing net earnings attributable to controlling interests by the weighted average number of...

  • Page 53
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 1. Summary of Significant Accounting Policies (Continued) The Company's wholly-owned subsidiary, Hickory Point Bank and Trust, also has loans receivable. As of June 30, 2011, $290 million of loans were ...

  • Page 54
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 2. Acquisitions (Continued) 2010 Acquisitions During 2010, the Company acquired two businesses for a total cost of $62 million in cash. The final purchase price allocations resulted in goodwill of $3 million....

  • Page 55
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 3. Fair Value Measurements (Continued) The following tables set forth, by level, the Company's assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2011 and 2010. ...

  • Page 56
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 3. Fair Value Measurements (Continued) Fair Value Measurements at June 30, 2010 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs (Level ...

  • Page 57
    .... The Company's marketable securities are comprised of U.S. Treasury securities, obligations of U.S. government agencies, corporate and municipal debt securities, and equity investments. U.S. Treasury securities and certain publicly traded equity investments are valued using quoted market prices and...

  • Page 58
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 3. Fair Value Measurements (Continued) The following tables present a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant ...

  • Page 59
    ... to manage its net position of merchandisable agricultural commodity inventories and forward cash purchase and sales contracts to reduce price risk caused by market fluctuations in agricultural commodities and foreign currencies. The Company also uses exchange-traded futures and exchange-traded and...

  • Page 60
    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 not designated as hedging instruments as of June 30, 2011 and 2010. 2011 ...

  • Page 61
    ... to fix the purchase price of anticipated volumes of corn to be purchased and processed in a future month. The objective of this hedging program is to reduce the variability of cash flows associated with the Company's forecasted purchases of corn. The Company's corn processing plants currently...

  • Page 62
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 4. Inventories, Derivative Instruments & Hedging Activities (Continued) The following tables set forth the fair value of derivatives designated as hedging instruments as of June 30, 2011 and 2010. 2011 ...

  • Page 63
    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 2011 United States government obligations Maturity less than 1 year Maturity 1 to 5 years ...

  • Page 64
    ... in Wilmar. The Company had 68 and 73 unconsolidated affiliates as of June 30, 2011 and 2010, respectively, located in North and South America, Africa, Europe, Australia, and Asia. The following table summarizes the combined balance sheets as of June 30, 2011 and 2010, and the combined statements of...

  • Page 65
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 7. Goodwill Goodwill balances attributable to consolidated businesses and investments in affiliates, by segment, are set forth in the following table. Consolidated Businesses 2011 Investments in Affiliates (...

  • Page 66
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 8. Debt and Financing Arrangements 2011 2010 (In millions) Floating Rate Notes $1.5 billion face amount, due in 2012 0.875% Convertible Senior Notes $1.15 billion face amount, due in 2014 5.765% Debentures ...

  • Page 67
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 8. Debt and Financing Arrangements (Continued) In June 2008, the Company issued $1.75 billion of Equity Units, which were a combination of debt and a forward contract for the holder to purchase the Company...

  • Page 68
    ... tangible net worth as well as limitations related to incurring liens, secured debt, and certain other financing arrangements. The Company is in compliance with these covenants as of June 30, 2011. The Company has outstanding standby letters of credit and surety bonds at June 30, 2011 and 2010...

  • Page 69
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 9. Earnings Per Share The computation of basic and diluted earnings per share is as follows: Years ended June 30 2011 2010 2009 (In millions, except per share amounts) Net earnings attributable to ...

  • Page 70
    ...issues with a remaining term equal to the expected life of option grants. The assumptions used in the Black-Scholes single option pricing model are as follows. 2011 Dividend yield Risk-free interest rate Stock volatility Average expected life (years) 2% 2% 31% 8 2010 2% 2% 32% 8 2009 2% 3% 30% 8 66

  • Page 71
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 10. Shareholders' Equity (Continued) A summary of option activity during 2011 is presented below: Weighted-Average Shares Exercise Price (In thousands, except per share amounts) Shares under option at June ...

  • Page 72
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 11. Accumulated Other Comprehensive Income (Loss) The following table sets forth information with respect to accumulated other comprehensive income: Foreign Currency Translation Adjustment Deferred Gain (...

  • Page 73
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 12. Other (Income) Expense - Net The following table sets forth the items in other (income) expense: 2011 2010 (In millions) - 75 59 6 (15) - - $ 125 $ 2009 Gain on Golden Peanut revaluation Charges from ...

  • Page 74
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 13. Income Taxes (Continued) Significant components of deferred tax liabilities and assets are as follows. 2011 (In millions) Deferred tax liabilities Property, plant, and equipment Equity in earnings of ...

  • Page 75
    ...tax expense was incurred related to the Company's investment in Wilmar International Holdings, Limited (WIHL), a subsidiary of ADM Asia Pacific, Limited (ADMAP), a wholly-owned subsidiary of the Company. On April 1, 2009, WIHL distributed publicly traded shares of Wilmar to ADMAP which triggered the...

  • Page 76
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 13. Income Taxes (Continued) The Company accounts for its income tax positions under the provisions of ASC Topic 740, Income Taxes. ASC Topic 740 prescribes a minimum threshold a tax position is required ...

  • Page 77
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 13. Income Taxes (Continued) The Company's wholly-owned subsidiary, ADM do Brasil Ltda. ("ADM do Brasil"), received three separate tax assessments from the Brazilian Federal Revenue Service ("BFRS") ...

  • Page 78
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 15. Employee Benefit Plans The Company provides substantially all U.S. employees and employees at certain international subsidiaries with pension benefits. Eligible U.S. employees with five or more years of...

  • Page 79
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 15. Employee Benefit Plans (Continued) The Company uses a June 30 measurement date for all defined benefit plans. The following tables set forth changes in the defined benefit obligation and the fair value ...

  • Page 80
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 15. Employee Benefit Plans (Continued) Included in accumulated other comprehensive income for pension benefits at June 30, 2011, are the following amounts that have not yet been recognized in net periodic ...

  • Page 81
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 15. Employee Benefit Plans (Continued) Plan Assets The Company's employee benefit plan assets are principally comprised of the following types of investments: ADM and other common stock: Equity securities ...

  • Page 82
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 15. Employee Benefit Plans (Continued) The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, ...

  • Page 83
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 15. Employee Benefit Plans (Continued) Fair Value Measurements at June 30, 2010 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Significant Observable Unobservable Inputs ...

  • Page 84
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 15. 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: 20111, 2 Equity securities Debt ...

  • Page 85
    ... operating results of Golden Peanut, its previously 50% owned joint venture, in the third quarter of fiscal 2011. The Oilseeds Processing segment also includes the Company's share of the results of its equity investment in Wilmar and its share of results for its Edible Oils Limited and Stratas Foods...

  • Page 86
    ... oil and protein meal. Other corn processing products include citric and lactic acids, lactates, sorbitol, xanthan gum, and glycols which are used in various food and industrial products. The Corn Processing segment includes the activities of the Company's Brazilian sugarcane operations, propylene...

  • Page 87
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 16. Segment and Geographic Information (Continued) Segment Information 2011 Sales to external customers Oilseeds Processing Corn Processing Agricultural Services Other Total Intersegment sales Oilseeds ...

  • Page 88
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 16. Segment and Geographic Information (Continued) 2011 2010 (In millions) 28 - 48 46 14 136 $ 34 1 26 52 13 126 2009 Interest income Oilseeds Processing Corn Processing Agricultural Services Other ...

  • Page 89
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 16. Segment and Geographic Information (Continued) 2011 2010 (In millions) Gross additions to property, plant, and equipment Oilseeds Processing Corn Processing Agricultural Services Other Corporate Total 620 ...

  • Page 90
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 18. Quarterly Financial Data (Unaudited) Quarter First Second Third Fourth Year (In millions, except per share amounts) Fiscal 2011 Net Sales Gross Profit Net Earnings Attributable to Controlling Interests ...

  • Page 91
    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, 2011 and 2010, and the ...

  • Page 92
    ... statements of earnings, shareholders' equity, and cash flows for each of the three years in the period ended June 30, 2011, of Archer-Daniels-Midland Company and our report dated August 24, 2011, expressed an unqualified opinion thereon. /s/ Ernst & Young LLP St. Louis, Missouri August 24, 2011...

  • Page 93
    ... 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's ("ADM's") management is responsible for establishing and maintaining adequate...

  • Page 94
    ... 2010. President, Cocoa, Milling and Other business unit from September 2009 to December 2010. President of ADM Cocoa from September 2001 to September 2009. Vice President of the Company since July 1997. Vice President of Security and Corporate Services since May 1997. Senior Vice President - Human...

  • Page 95
    ... operations. Vice President, Finance and Treasurer of the Company since August 2010. Vice President and Treasurer of the Company from November 2004 to August 2010 51 Kevin L. Hess Craig E. Huss 59 Matthew J. Jansen 45 Randall Kampfe 64 Mark L. Kolkhorst 47 Domingo A. Lastra 43 Juan...

  • Page 96
    .... President ADM Corn Processing Division since June 2005. Assistant Secretary and Assistant General Counsel from July 1997. Vice President of the Company since December 2004. President, Asia Pacific since August 2011. Vice President and Executive Director, Asia-Pacific from July 2010 to August 2011...

  • Page 97
    ... 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE (Continued) Vice President of the Company and Chairman of the Management Board of Alfred C. Toepfer International since September 2009. Manager Global Risk from August 2007 to September 2009. Vice President, Corn Processing from July 2000...

  • Page 98
    ...Data," for a list of financial statements. (a)(2) Financial statement schedules SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES Balance at Beginning of Year Balance at End of Year Additions Deductions (1) (In millions) (6) - (12) Other (2) Allowance for doubtful accounts 2009 2010...

  • Page 99
    ...December 15, 2097, the $196,210,000 - 5 7/8% Debentures due November 15, 2010, the $300,000,000 - 6 5/8% Debentures due May 1, 2029, the $400,...Company and The Bank of New York Mellon (successor to JPMorgan Chase Bank, N.A.), as Trustee (incorporated by reference to Exhibit 4 to Registration Statement...

  • Page 100
    ... Proxy Statement filed with the Securities and Exchange Commission on September 25, 1996 (File No. 1-44)). (iii) The Archer-Daniels-Midland Company Deferred Compensation Plan for Selected Management Employees I, as amended (incorporated by reference to Exhibit 10(iii) to the Company's Annual Report...

  • Page 101
    ...10.1 to the Company's Current Report on Form 8-K (File No. 1-44). (xvii) The Archer-Daniels-Midland Company 2009 Incentive Compensation Plan (incorporated by reference to Exhibit A to the Company's Definitive Proxy Statement (File No. 1-44) filed on September 25, 2009). (xviii) Annual Cash Incentive...

  • Page 102
    ...the undersigned, thereunto duly authorized. Date: August 24, 2011 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 24...

  • Page 103

  • Page 104
    ... 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 62522 888...