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PAGE 1
FORM 10-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended June 30, 1994
OR
[ ]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 1-44
ARCHER-DANIELS-MIDLAND COMPANY
(Exact name of registrant as specified in its charter)
Delaware 41-0129150
(State or other jurisdiction of (I. R. S. Employer
incorporation or organization) Identification No.)
4666 Faries Parkway Box 1470 Decatur, Illinois 62525
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code217-424-5200
Securities registered pursuant to Section 12(b) of the Act:
Name of each exchange on
Title of each class which registered
Common Stock, no par value New York Stock Exchange
Chicago Stock Exchange
Stock Exchange of Basle,
Switzerland
Stock Exchange of
Zurich,
Switzerland
Stock Exchange of
Geneva,
Switzerland
Tokyo Stock Exchange
Frankfurt Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No ___
State the aggregate market value of the voting stock held by non-
affiliates of the registrant.
Common Stock, no par value--$7.3 billion
(Based on the closing price of the New York Stock Exchange on
August 22, 1994)
Indicate the number of shares outstanding of each of the
registrant's classes of common stock, as of the latest
practicable date.
Common Stock, no par value--327,306,990 shares
(August 22, 1994)
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the annual shareholders' report for the year ended
June 30, 1994 are incorporated by reference into Parts I, II and
IV.
Portions of the annual proxy statement for the year ended June
30, 1994 are incorporated by reference into Part III.
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PART I
Item 1. BUSINESS
(a) General Development of Business
Archer Daniels Midland Company was incorporated in
Delaware in 1923, successor to the Daniels Linseed
Co. founded in 1902.
During the last five years, the Company has
experienced significant growth, spending
approximately $3.3 billion for construction of new
plants, expansions of existing plants and the
acquisitions of plants and transportation equipment.
There have been no significant dispositions during
this period.
(b) Financial Information About Industry Segments
The Company is in one business segment--procuring,
transporting, storing, processing and merchandising
agricultural commodities and products.
(c) Narrative Description of Business
(i) Principal products produced and principal markets
for and methods of distribution of such products
The Company is engaged in the business of
procuring, transporting, storing, processing and
merchandising agricultural commodities and
products. It is one of the world's largest
processors of oilseeds, corn and wheat. The
Company also processes rice, milo, oats, barley,
peanuts and cane sugar. Other operations include
transporting, merchandising and storing
agricultural commodities and products. These
operations and processes produce products which
have primarily two end uses, either food or feed
ingredients. Each commodity processed is in
itself a feed ingredient as are the by-products
produced during the processing of each commodity.
Production processes of all commodities are
capital intensive and similar in nature. These
processes involve grinding, crushing or milling
with further value added through extraction,
refining and fermenting. Generally, each
commodity can be processed by any of these
methods to generate additional value added
products. All commodities and related processed
products share the same network of commodity
procurement facilities, transportation services
(including rail, barge, truck and ocean vessels)
and storage facilities.
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The geographic areas, customers and marketing
methods are basically the same for all
commodities and their related further processed
products. Feed ingredient products and by-
products are sold to farmers, feed dealers and
livestock producers, all of which can and will
purchase products from across the entire
commodity chain. Food ingredient products are
also sold to one basic group of customers, food
processors. Any single customer may purchase
products produced from all commodities and any
single food or feed product could include
ingredients produced from all commodities we
process.
Oilseed Products
Soybeans, cottonseed, sunflower seeds, canola,
peanuts, flaxseed and corn germ are processed to
provide vegetable oils and meals principally for the
food and feed industries. Crude vegetable oil is
sold as is or is further processed by refining and
hydrogenating into margarine, shortening, salad oils
and other food products. Partially refined oil is
sold for use in chemicals, paints and other
industrial products. Lecithin, an emulsifier
produced in the vegetable oil refining process, is
marketed as a food and feed ingredient.
Oilseed meals supply more than one-half of the high
protein ingredients used in the domestic manufacture
of commercial livestock and poultry feeds. Soybean
meal is further processed into soy flour and grits,
used in both food and industrial products, and into
value-added soy protein products. Textured
vegetable protein (TVP R), a soy protein product
developed by the Company, is sold primarily to the
institutional food market and, through others, to
the food consumer market. The Company also produces
a wide range of other edible soy protein products
including isolated soy protein, soy protein
concentrate, soy-based milk products, soy flours and
vegetable patties (Harvest Burgers R). The Company
produces and markets a wide range of consumer and
institutional health foods based on the Company's
various soy protein products.
Corn Products
The Company is engaged in dry milling and wet milling
corn operations. Products produced for use by the
food and beverage industry include syrup, starch,
glucose, dextrose, crystalline dextrose, high
fructose sweeteners, crystalline fructose and grits.
Corn gluten feed and distillers grains are produced
for use as feed ingredients. Ethyl alcohol is
produced to beverage grade or for industrial use as
ethanol. Ethanol is used to increase octane, and as
an extender and oxygenate in gasoline. Corn germ, a
byproduct of the milling process, is further
processed as an oilseed.
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ITEM 1. BUSINESS--Continued
The Company produces by fermentation, from dextrose,
citric and lactic acids, feed-grade amino acids and
vitamins, lactates, sorbitol, monosodium glutamate,
nematodes and food emulsifiers principally for the
food and feed industries.
Wheat and Other Milled Products
Wheat flour is sold primarily to large bakeries,
durum flour is sold to pasta manufacturers and
bulgur, a gelatinized wheat food, is sold to both
the export and the domestic food markets. Masa corn
flour is sold primarily to specialty food producers
to be used in the production of tortillas, taco
shells and tortilla chips.
The Company mills long, medium and short grain rice
and mills oats into oat bran and oat flour for
institutional and consumer food customers. The
Company also mills milo to produce industrial flour
that is used in the manufacturing of wall board for
the building industry.
Other Products and Services
The Company buys, stores and cleans agricultural
commodities, such as corn, wheat, soybeans, canola,
milo, sunflower seeds, rice, oats and barley, for
resale to other processors worldwide.
The Company produces and distributes formula feeds
and animal health and nutrition products to the
livestock, dairy and poultry industries. Many of
the feed ingredients and health and nutrition
products can be, and in many cases are, produced in
our other commodity processing operations.
The Company produces bakery products and mixes which
are sold to the baking industry.
The Company produces spaghetti, noodles, macaroni,
and other consumer food products. The Company also
produces lettuce, other fresh vegetables and herbs
in its hydroponic greenhouse.
Malt products are produced for use by the food and
beverage industries.
The Company produces from cane sugar granulated and
liquid refined sugars principally for the food and
beverage industries.
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Item 1. BUSINESS--Continued
Hickory Point Bank and Trust Co. furnishes public
banking services, except commercial loans, as well
as cash management and securities safekeeping
services for the Company.
Agrinational Insurance Company and Agrinational Ltd.,
Vermont and Cayman Island subsidiaries,
respectively, act as direct insurers and reinsurers
of a portion of the Company's domestic and foreign
property and casualty insurance risks.
Alfred C. Toepfer International (Germany) and
affiliates, of which the Company has a 50% interest,
is one of the world's largest, most respected
trading companies specializing in processed
agricultural products. Toepfer has thirty-nine
sales offices worldwide. Compagnie Industrielle et
Financiere des Produits Amylaces SA (Luxembourg) and
affiliates, of which the Company has a 41.5%
interest, owns European agricultural processing
plants that are primarily engaged in corn wet
milling and wheat starch production.
The Company, through its partnership with Gold Kist,
Inc. and Alimenta Processing Corporation d/b/a
Golden Peanut Company, is a major supplier of
peanuts to both the domestic and export markets.
These peanuts are used in peanut butter, snacks,
cereals and many other foods.
The percentage of net sales and other operating
income by classes of products and services for the
last three fiscal years were as follows:
1994 1993 1992
Oilseed products 50% 50% 51%
Corn products 26 28 29
Wheat and other
milled products 13 13 10
Other products and services 11 9 10
100% 100% 100%
Methods of Distribution
Since the Company's customers are principally other
manufacturers and processors, its products are
distributed mainly in bulk from processing plants or
storage facilities directly to the customers'
facilities. The Company owns a large number of
trucks and trailers and owns or leases large numbers
of railroad tank cars and hopper cars to augment
those provided by the railroads. The Company uses
the inland waterway system and functions as a
contract carrier of commodities for its own
operations as well as for other companies.
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Item 1. BUSINESS--continued
The Company owns, leases or manages under operating
agreements approximately 1,900 river barges and 25
line-haul towboats.
(ii) Status of new products
The Company continues to expand its bioproducts.
The Company is currently producing, from
dextrose, the feed-grade amino acids lysine and
threonine, and expects to be producing
tryptophan during the coming year. The Company
has entered the vitamin market with the
production of riboflavin and biotin, and is
currently expanding production facilities to
produce vitamins C and E. The Company is also
producing, from dextrose fermentation, citric
acid, monosodium glutamate (MSG) and lactic
acid and is scheduled to begin to produce, in
the next year, the food additive, xanthan gum.
(iii) Source and availability of raw materials
Substantially all of the Company's raw materials
are agricultural commodities. In any single
year, the availability and price of these
commodities are subject to wide fluctuations
due to unpredictable factors such as weather,
plantings, government (domestic and foreign)
farm programs and policies, changes in global
demand created by population growth and higher
standards of living and worldwide production of
similar and competitive crops. The Company
follows a policy of hedging commodity
transactions, including certain anticipated
production requirements, to minimize price risk
due to market fluctuations and risk of crop
failure.
(iv) Patents, trademarks and licenses
The Company owns several valuable patents,
trademarks and licenses but does not consider
its business dependent upon any single or group
of patents, trademarks and licenses.
(v) Extent to which business is seasonal
Since the Company is so widely diversified in
global agribusiness markets, there are no
material seasonal fluctuations in the
manufacture, sale and distribution of its
products and services. There is a degree of
seasonality in the growing season and
procurement of the Company's principal raw
materials, oilseeds, wheat, corn and other
grains. However, the actual physical movement
of the millions of bushels of these crops
through the Company's storage and processing
facilities is reasonably constant throughout
the year. The worldwide need for food is not
seasonal and is ever expanding as is the
world's population.
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Item 1. BUSINESS--Continued
(vi) Working capital items
Price variations and availability of grain at
harvest often cause wide fluctuations in the
Company's inventories and short-term borrowings.
(vii) Dependence on single customer
No material part of the Company's business is
dependent upon a single customer or very few
customers.
(viii) Amount of backlog
Because of the nature of the Company's business,
the backlog of orders at year end is not a
significant indication of the Company's activity
for the current or upcoming year.
(ix) Business subject to renegotiation
The Company has no business with the government
that is subject to renegotiation.
(x) Competitive conditions
Markets for the Company's products are highly
competitive and sensitive to product
substitution. No single company competes with
the Company in all of its markets; however, a
number of large companies compete in one or more
markets. Major competitors in one or more
markets include, but are not limited to,
Cargill, Inc., ConAgra, Inc., CPC International,
Eridania Beghin-Say and Tate & Lyle.
(xi) Research and development expenditures
Practically all of the Company's technical
efforts and expenditures are concerned with food
and feed ingredient products. Special efforts
are being made to find improvements in food
technology to alleviate the protein malnutrition
throughout the world, utilizing the three
largest United States crops-wheat, soybeans and
corn.
The need to successfully market new or improved
food and feed ingredients developed in the
Company's research laboratories led to the
concept of technical support. The Company is
staffed with technical representatives who work
closely with customers and potential customers
on the development of food and feed products
which incorporate Company produced ingredients.
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Item 1. BUSINESS--Continued
These technical representatives are an adjunct to
both the research and sales functions.
The Company maintains a research laboratory in
Decatur, Illinois where product and process
development activities are conducted. Enzyme
development and production are an important part
of these activities. Protein research is
conducted at facilities in Decatur where meat
and dairy pilot plants support application
research. Research to support sales and product
development for bakery products is done at a
laboratory in Olathe, Kansas. Additional
research activities are conducted at the
Decatur, Indiana feed research facility and at
the British Arkady plant in Manchester, England.
The amount spent during the three years ended
June 30, 1994, 1993 and 1992 for such technical
efforts were approximately $20.1, $14.8, and
$14.6 million, respectively. In addition, the
Company maintains separate quality control
departments which are supervised by research
personnel.
(xii) Material effects of capital expenditures for
environmental protection
During 1994, $22 million was spent for equipment,
facilities and programs for pollution control
and compliance with the requirements of various
environmental agencies.
There have been no material effects upon the
earnings and competitive position of the Company
resulting from compliance with federal, state
and local laws or regulations enacted or adopted
relating to the protection of the environment.
The Company expects that expenditures for
environmental facilities and programs will
continue at approximately the present rate with
no unusual amounts anticipated for the next two
years.
(xiii) Number of employees
The number of persons employed by the Company was
16,013 at June 30, 1994.
Item 1. BUSINESS--Continued
(d) Financial Information About Foreign and Domestic
Operations and Export Sales
The Company's foreign operations are principally in
developed countries and do not entail any undue or
unusual business risks. Geographic financial
information is set forth in Note 9 to the audited
financial statements included in the Company's 1994
Annual Report to Shareholders.
Export sales by classes of products for the last
three fiscal years were as follows:
1994 1993 1992
Oilseed products 5% 5% 5%
Corn products 6% 6 7
Wheat and other milled
products 1 2 1
Other products and services - 1 1
12% 14% 14%
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Item 1. BUSINESS--Continued
(e) Executive Officers
Name Title Age
Dwayne O. Andreas Chairman of the Board of 76
Directors from 1972.
Chief Executive Officer
James R. Randall President from 1975. 69
G. Allen Andreas Vice President from 1988. 51
Counsel to the Executive
Committee from September 1994
Michael D. Andreas Vice Chairman of the Board 45
of Directors from October 1992.
Executive Vice President
from 1988.
Martin L. Andreas Senior Vice President from 1988.
55
Executive Assistant to the
Chief Executive.
Charles P. Archer Treasurer from October 1992. 38
Assistant Treasurer from 1988.
Charles T. Bayless Group Vice President from
January 1993. Vice President 59
from 1992. President of ADM
Processing Division since 1980.
Dale F. Benson Vice President from 1969. 68
Howard G. Buffett Vice President and Assistant 39
to the Chairman from 1992.
Chairman of Douglas County,
Nebraska Board of Commissioners
from 1988 to 1992. President of
Buffett Farms Inc. since 1984.
Howard E. Buoy Group Vice President from 67
January 1993. Vice President
of ADM Processing Division
from 1979.
William H. Camp Vice President from April 1993.45
Vice President of ADM Processing
Division from 1990 to 1993.
Various merchandising positions
from 1988 to 1990.
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Item 1. BUSINESS--Continued
Larry H. Cunningham Vice President and President 50
of Protein Specialties
Division since July 1993.
Formerly President of
A. E. Staley Manufacturing Co.
Thomas A. Duffield Vice President from 1975. 69
Edward A. Harjehausen Vice President from October
43
1992. Vice President of
ADM Corn Processing Division
from 1988.
Burnell D Kraft Group Vice President from 62
January 1993. Vice President
from 1984. President of
ADM/Growmark, Collingwood
Grain and Tabor Grain Co.
subsidiaries.
Paul L. Krug, Jr. Vice President from 1991 and 50
President of ADM Investor
Services. Formerly a Vice
President of Continental Grain.
Raymond V. Preiksaitis Vice President - Management
41
Information Systems from 1988.
John G. Reed Vice President from 1982. 64
Chief Executive-Europe from
September 1994
Richard P. Reising Vice President, Secretary and 50
General Counsel from 1991.
Secretary and Assistant General
Counsel since 1988.
John D. Rice Vice President from April 1993.40
Vice President of ADM Processing
Division from 1992. Various
merchandising positions from
1988 to 1992.
Douglas J. Schmalz Vice President, Controller and48
Chief Financial Officer from
1986.
Item 1. BUSINESS--Continued
Mark E. Whitacre Vice President from October 37
1992. President of ADM Bio-
products Division from 1989.
Terrance S. Wilson Group Vice President from 56
January 1993. Officer of
ADM Corn Processing Division
since 1988.
Officers of the registrant are elected by the Board of
Directors for terms of one year and until their
successors are duly elected and qualified.
Michael D. Andreas is the son of Dwayne O. Andreas. G.
Allen Andreas and Martin L. Andreas are nephews of
Dwayne O. Andreas. Lowell W. Andreas and Dwayne O.
Andreas, directors of the registrant are brothers.
Charles P. Archer is the son of S. M. Archer, Jr., a
director of the registrant.
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Item 2. PROPERTIES
(a) Processing Facilities
The Company has one hundred sixty-three processing plants
in the United States of which one hundred fifty-six are
owned and the balance are leased. The Company also owns
or has a 50% or greater ownership interest in fifty-four
foreign processing plants. The Company's operations are
such that most products are efficiently processed near
the source of raw materials. Consequently, the Company
has many plants located strategically in grain producing
areas. The annual volume processed will vary depending
upon availability of raw material and demand for the
finished products.
The Company operates thirty-five domestic and seven
foreign oilseed crushing plants with a daily processing
capacity of approximately 73,000 tons. The domestic
plants are located in Alabama, Arkansas, Georgia,
Illinois, Indiana, Iowa, Kansas, Louisiana, Minnesota,
Missouri, Mississippi, Nebraska, North Dakota, Ohio,
South Carolina, Tennessee and Texas. The foreign plants
are located in Canada, England, Germany and the
Netherlands.
The Company operates four wet corn milling and two dry
corn milling plants with a daily grind capacity of
approximately 1,590,000 bushels. These plants and other
related properties, including corn germ extraction and
corn gluten pellet plants, are located in Illinois,
Iowa, New York, North Dakota and Texas. The Company
also has interests, through joint ventures, in corn
milling plants in Mexico, Bulgaria, Hungary and
Slovakia.
The Company operates twenty-nine domestic wheat and
durum flour mills, a domestic bulgur plant, six Canadian
flour mills and one Mexican flour mill with a total
daily capacity of approximately 355,000 cwt. of flour.
The Company also operates six corn flour mills, three
rice mills, two milo mills, two pasta plants and four
starch and gluten plants. These plants and other related
properties are strategically located across North
America in California, Illinois, Indiana, Iowa, Kansas,
Kentucky, Louisiana, Minnesota, Missouri, Nebraska, New
York, North Carolina, North Dakota, Oklahoma, Oregon,
Pennsylvania, Tennessee, Texas, Washington, Wisconsin,
Canada and Mexico.
The Company operates ten domestic oilseed refineries in
Illinois, Indiana, Iowa, Georgia, Nebraska, Tennessee
and Texas as well as five foreign refineries in Canada,
Germany and the Netherlands. The Company produces
packaged oils in Illinois, California and Germany and
soy protein specialty products in Illinois, England, and
the Netherlands. Lecithin products are produced in
Illinois, Iowa, Nebraska, Germany and the Netherlands.
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The Company produces feed and food additives at seven
bioproduct plants located in Illinois, North Carolina
and Ireland. The Company also operates formula feed,
animal health and nutrition and pet food plants in
Arkansas, Georgia, Illinois, Iowa, Kansas, Kentucky,
Michigan, Missouri, Nebraska, North Carolina, Ohio,
Pennsylvania, South Carolina, Tennessee, Texas,
Washington, Wisconsin, Vermont, England and Ireland.
The Company operates five North American barley malting
plants located in Illinois, Minnesota, Wisconsin and
Canada plus a cane sugar refinery in Louisiana.
The Company operates various other food ingredient
plants in Iowa, Kansas, Washington, England, France,
Germany, Italy, Portugal and Spain.
(b) Procurement Facilities
The Company operates one hundred sixty-nine domestic
terminal, country and river elevators covering the
Midwest, West and South Central states, including one
hundred-thirteen country elevators and fifty-six
terminal and river loading facilities including three
grain export elevators in Louisiana. Elevators are
located in Arkansas, Colorado, Georgia, Illinois,
Indiana, Iowa, Kansas, Minnesota, Missouri, Montana,
Nebraska, North Carolina, Oklahoma, South Carolina,
Tennessee and Texas. Domestic grain terminals,
elevators and processing plants have an aggregate
storage capacity of approximately 355,000,000 bushels.
The Company also operates ten foreign grain elevators in
Canada, Ireland and Germany. Thirteen cotton gins are
located in Texas and serve the cottonseed crushing
plants in that area.
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Item 3. LEGAL PROCEEDINGS
In 1993, the State of Illinois Environmental Protection
Agency brought administrative enforcement proceedings
arising out of the Company's failure to obtain permits
for certain pollution control equipment at certain of
the Company's processing facilities in Illinois. The
Company believes it has meritorious defenses. While the
Company cannot reasonably estimate the amount of the
sanctions which may be imposed in these matters, in
management's opinion, they will not, either individually
or in the aggregate, have a material adverse effect on
the Company's financial condition or results of
operations.
The Company is involved in approximately 20
administrative and judicial proceedings in which it has
been identified as a potentially responsible party (PRP)
under the federal Superfund law and its state analogs
for the study and clean-up of sites contaminated by
material discharged into the environment. In all of
these matters, there are numerous PRP's. Due to various
factors such as the required level of remediation and
participation in the clean-up effort by others, the
Company's future clean-up at these sites cannot be
reasonably estimated. However, in management's opinion,
these proceedings will not, either individually or in
the aggregate, have a material adverse effect on the
Company's financial condition or results of operations.
The Company from time to time, in the ordinary course of
business, is named as a defendant in various lawsuits.
In management's opinion, the gross liability from
litigation, including environmental exposure, with or
without insurance recoveries is not considered to be
material to the Company's financial condition or results
of operations.
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Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
PART II
Item 5.MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED
STOCKHOLDER MATTERS
Common Stock Market Prices and Dividends on page 37 of
the annual shareholders' report for the year ended June
30, 1994 is incorporated herein by reference.
Item 6. SELECTED FINANCIAL DATA
Years 1990 through 1994 included in the Ten-Year Summary
of Operating, Financial and Other Data on pages 38 and
39 of the annual shareholders' report for the year ended
June 30, 1994 is incorporated herein by reference.
Item 7.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Management's Discussion of Operations and Financial
Condition on pages 24 and 25 of the annual shareholders'
report for the year ended June 30, 1994 is incorporated
herein by reference.
Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The following financial statements and supplementary data
included in the annual shareholders' report for the year
ended June 30, 1994 are incorporated herein by
reference:
Page(s) in the Annual
Shareholders' Report
Consolidated Financial Statements,
Summary Significant Accounting Policies
and Notes to Consolidated Financial
Statements Pages 26 through
34
Report of Independent Auditors Page 35
Quarterly Financial Data (Unaudited) Page 36
Item 9.CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE
None.
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PART III
The following items of Part III, included in the
definitive proxy statement for 1994, are incorporated
herein by reference:
Page(s) in the
Definitive Proxy Statement
Item 10. DIRECTORS AND
EXECUTIVE OFFICERS OF THE Pages 2 through 6
REGISTRANT Page 13
Information with respect to executive officers
is included in Item 1 (e) of this report.
Item 11. EXECUTIVE
COMPENSATION Pages 7 through
12
Item 12. SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL Page 2
OWNERS AND MANAGEMENT
Item 13. CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS Page 12
15
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PART IV
Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON
FORM 8-K
(a)(1)The following consolidated financial statements
and other financial data of the registrant and
its subsidiaries, included in the annual report
of the registrant to its shareholders for the
year ended June 30, 1994, are incorporated by
reference in Item 8, and are also incorporated
herein by reference:
Consolidated balance sheets--June 30, 1994 and
1993
Consolidated statements of earnings--Years ended
June 30, 1994, 1993 and 1992
Consolidated statements of shareholders' equity--
Years ended June 30, 1994, 1993 and 1992
Consolidated statements of cash flows--Years ended
June 30, 1994, 1993 and 1992
Notes to consolidated financial statements--June
30,
1994
Quarterly Financial Data (Unaudited)
(a)(2)The following consolidated financial schedules of
the registrant and its subsidiaries are included
in this report:
Schedule I--Marketable securities--other
investments ...................................
23
Schedule V--Property, plant and equipment ......
24
Schedule VI--Accumulated depreciation, depletion
and amortization of property, plant and
equipment .....................................
26
Schedule IX--Short-term borrowings
.............. 27
Schedule X--Supplementary income statement
information
.................................... 28
All other schedules are not applicable and
therefore not included in this report.
Financial statements of affiliates accounted for
by the equity method have been omitted because
they do not, considered individually, constitute
significant subsidiaries.
16
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Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON
FORM 8-K
--Continued
(a)(3) LIST OF EXHIBITS
(3) Composite Certificate of Incorporation and
Bylaws filed on November 7, 1986 as Exhibits
3(a) and 3(b), respectively, to Post Effective
Amendment No. 1 to Registration Statement on
Form S-3, Registration No. 33-6721, are
incorporated herein by reference.
(4) Instruments defining the rights of security
holders, including:
(i) Indenture dated May 15, 1981, between
the registrant and Morgan Guaranty Trust
Company of New York, as Trustee
(incorporated by reference to Exhibit
4(b) to Amendment No. 1 to Registration
Statement No. 2-71862), relating to the
$250,000,000 - 7% Debentures due May 15,
2011;
(ii) Indenture dated May 1, 1982, between the
registrant and Morgan Guaranty Trust
Company of New York, as Trustee
(incorporated by reference to Exhibit
4(c) to registration Statement No. 2-
77368), relating to the $400,000,000
Zero Coupon Debentures due May 1, 2002;
(iii)Indenture dated as of March 1, 1984
between the registrant and Chemical
Bank, as Trustee (incorporated by
reference to Exhibit 4 to the
registrant's Current Report on Form 8-K
dated August 3, 1984 (File No. 1-44)),
as supplemented by the Supplemental
Indenture dated as of January 9, 1986,
between the registrant and Chemical
Bank, as Trustee (incorporated by
reference to Exhibit 4 to the
registrant's Current Report on Form 8-K
dated January 9, 1986 (File No. 1-44)),
relating to the $100,000,000 - 10 1/4%
Debentures due January 15, 2006;
(iv) Indenture dated June 1, 1986 between the
registrant and Chemical Bank, (as
successor to Manufacturers Hanover Trust
Company), as Trustee (incorporated by
reference to Exhibit 4(a) to
Registration Statement No. 33-6721), and
Supplemental Indenture dated as of
August 1, 1989 between the registrant
and Chemical Bank (as successor to
Manufacturers Hanover Trust Company), as
Trustee (incorporated by reference to
Exhibit 4(c) to Post-Effective Amendment
No. 3 to Registration Statement No. 33-
6721), relating to the $300,000,000 -
8 7/8%
17
PAGE 18
Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND
REPORTS ON FORM 8-K
--Continued
Debentures due April 15, 2011, the
$300,000,000 - 8 3/8% Debentures due
April 15, 2017, the $300,000,000 - 8
1/8% Debentures due June 1, 2012, the
$250,000,000 - 6 1/4% Notes due May
15, 2003, and the $250,000,000 - 7
1/8% Debentures due March 1, 2013.
Copies of constituent instruments
defining rights of holders of long-term
debt of the Company and Subsidiaries,
other than the Indentures specified
herein, are not filed herewith, pursuant
to Instruction (b)(4) (iii)(A) to Item
601 of Regulation S-K, because the total
amount of securities authorized under
any such instrument does not exceed 10%
of the total assets of the Company and
Subsidiaries on a consolidated basis.
The registrant hereby agrees that it
will, upon request by the Commission,
furnish to the Commission a copy of each
such instrument.
(10)Material Contracts--Copies of the Company's
stock option plans and its savings and
investment plans, pursuant to Instruction
(10)(iii)(A) to Item 601 of Regulation S-K, are
incorporated herein by reference as follows:
(i) Registration Statement No. 2-91811 on Form
S-8 dated June 22, 1984 (definitive
Prospectus dated July 16, 1984) relating
to the Archer Daniels Midland 1982
Incentive Stock Option Plan.
(ii)Registration Statement No. 33-27331 on Form
S-8 dated February 27, 1989 relating to
the Archer Daniels Midland Company Savings
and Investment Plan for Hourly Employees.
(iii) Registration Statement No. 33-49409
on Form S-8 dated March 15, 1993 relating
to the Archer Daniels Midland 1991
Incentive Stock Option Plan and Archer
Daniels Midland Company Savings and
Investment Plan.
(13) Annual report to security holders
(21) Subsidiaries of the registrant
18
PAGE 19
Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND
REPORTS ON FORM 8-K
--Continued
(23) Consent of independent auditors
(24) Powers of attorney
(27) Financial Data Schedule
(b) Reports on Form 8-K
A Form 8-K was not filed during the quarter ended
June 30, 1994.
19
PAGE 20
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date: September 27, 1994
ARCHER-DANIELS-MIDLAND
COMPANY
R. P. Reising
Vice President, Secretary
and General Counsel
D. J. Schmalz
Vice President, Controller
and
Chief Financial Officer
Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed below on September 27, 1994,
by the following persons on behalf of the Registrant and in
the capacities indicated.
D. O. Andreas*, Chairman of the Board, Chief Executive and
Director
(Principal Executive Officer)
L. W. Andreas*, Director
M. D. Andreas*, Director
M. L. Andreas*, Director
S. M. Archer, Jr.*, Director
Ralph Bruce*, Director
H. G. Buffett*, Director
J. H. Daniels*, Director
R. A. Goldberg*, Director
H. D. Hale*, Director
F. R. Johnson*, Director
J. R. Randall*, Director
Mrs. N. A. Rockefeller*, Director
R. S. Strauss*, Director
J. K. Vanier*, Director
O. G. Webb*, Director
R. P. Reising
Attorney-in-Fact
*Powers of Attorney authorizing R. L. Erickson, R. P. Reising,
D. J. Schmalz and D. J. Smith and each of them, to sign the Form
10-K on behalf of the above-named officers and directors of the
Company are being filed with the
and Exchange Commission.
20
PAGE 21
SCHEDULE I--MARKETABLE SECURITIES--OTHER INVESTMENTS
ARCHER DANIELS MIDLAND COMPANY AND SUBSIDIARIES
June 30, 1994
COL. A COL. B COL. C COL. D COL. E
Amount at Which
Number of Each Portfolio
Shares or Market of Equity Security
Units--Principal Value of Issues and Each
Amount of Each Issue Other Security
Name of Issuer Bonds and Cost of at Balance Issue Carried in
and Title of Each Issue Notes Each Issue Sheet Date the Balance Sheet
(In thousands)
Marketable securities consist of:
United States government obligations$1,258,024 $1,245,697 $1,244,524 $1,245,697
Marketable equity securities
ARCO Chemical Company 4,869,500 188,558 220,954 188,558
Other 544,832 586,451 544,832
Other investments 199,542 202,267 199,542
_________ _________ _________
$2,178,629 $2,254,196 $2,178,629
========= ========= =========
Marketable securities are classified
in the balance sheet as follows:
Cash and cash equivalents $ 268,497
Marketable securities 1,019,059
Long-term marketable securities 891,073
_________
$2,178,629
=========
21
PAGE 22
SCHEDULE V--PROPERTY, PLANT AND EQUIPMENT
ARCHER DANIELS MIDLAND COMPANY AND SUBSIDIARIES
COL. A COL. B COL. C COL. D COL. E COL. F
Balance at Additions Other Changes Add - Balance at
Classification Beginning of Period at Cost (1) Retirements(Deduct)-Describe (2)End of Period
Year Ended June 30, 1994 (In
Thousands)
Land $ 94,143 $ 4,691 $ 1,951 $ 4,971 $ 101,854
Buildings 907,625 107,654 10,593 25,131 1,029,817
Machinery and equipment 4,622,590 353,163 45,770 143,648 5,073,631
Construction in progress 377,317 66,013 - 12,399 455,729
_________ _______ ______ _______ _________
TOTAL $6,001,675 $531,521 $58,314 $186,149 $6,661,031
========= ======= ====== ======= =========
Year Ended June 30, 1993
Land $ 89,141 $ 7,861 $ 96 $ (2,763) $ 94,143
Buildings 843,437 58,180 3,057 9,065 907,625
Machinery and equipment 4,319,936 322,487 32,875 13,042 4,622,590
Construction in progress 295,537 19,084 - 62,696 377,317
_________ _______ ______ _______ _________
TOTAL $5,548,051 $407,612 $36,028 $ 82,040 $6,001,675
========= ======= ====== ======= =========
Year Ended June 30, 1992
Land $ 74,991 $ 5,782 $ 117 $ 8,485 $ 89,141
Buildings 700,565 98,557 4,133 48,448 843,437
Machinery and equipment 3,669,515 490,171 50,395 210,645 4,319,936
Construction in progress 386,858 (109,483) - 18,162 295,537
______ _______ _________
TOTAL $4,831,929 $485,027 $54,645 $285,740 $5,548,051
========= ======= ====== ======= =========
See notes on following page.
22
PAGE 23
NOTES TO SCHEDULE V--PROPERTY, PLANT AND EQUIPMENT
ARCHER DANIELS MIDLAND COMPANY AND SUBSIDIARIES
June 30, 1994
(1) Additions consist principally of:
1994--Bioproduct facility and expansions at Decatur,
Illinois, and Southport, North Carolina. Corn
processing expansions at Cedar Rapids and Clinton,
Iowa, Decatur and Peoria, Illinois and Walhalla,
North Dakota. Flour milling facility at Beech Grove,
Indiana. Rice processing expansion at Weiner,
Arkansas. Transportation equipment consisting
primarily of railroad cars.
1993--Bioproduct facility and expansions at Decatur,
Illinois, Southport, North Carolina and Ringaskiddy,
Ireland. Corn processing expansions at Cedar Rapids
and Clinton, Iowa and Decatur and Peoria, Illinois.
Flour milling facility at Beech Grove, Indiana.
Transportation equipment consisting primarily of
railroad cars and barges.
1992--Bioproduct facility and expansion, antibiotic plant,
expansions in corn processing, sorbitol and soy
protein isolate at Decatur, Illinois. Soy protein
concentrate plant, second gas turbine system and oil
refinery at Europoort, Netherlands. Corn processing
and cogeneration expansions at Cedar Rapids, Iowa.
Citric acid expansion and cogeneration plant at
Southport, North Carolina. Corn processing expansion
and oil refinery at Clinton, Iowa. Softseed
extraction plant at Erith, England. Cogeneration
facility at Spyck, Germany. Oil refinery at
Frankfort, Indiana. Transportation equipment
consisting primarily of railroad cars.
(2)Other changes relate to assets of acquired companies and
changes due to foreign currency translation.
(3)The annual provisions for depreciation have been computed
principally in accordance with the following ranges of asset
lives:
Buildings 10 to 50 years
Machinery and equipment 3 to 20 years
23
PAGE 24
SCHEDULE VI--ACCUMULATED DEPRECIATION, DEPLETION AND
AMORTIZATION
OF PROPERTY, PLANT AND EQUIPMENT
ARCHER DANIELS MIDLAND COMPANY AND SUBSIDIARIES
COL. A COL. B COL. C COL. D COL. E COL. F
Balance at Additions Other Changes Balance at
Beginning Charged to Costs Add (Deduct) End of
Description of Period and Expenses Retirements Describe (1) Period
(In thousands)
Year ended June 30, 1994:
Buildings $ 358,330 $ 42,547 $ 3,826 $ 3,827 $ 400,878
Machinery and equipment 2,428,511 312,472 37,330 17,925 2,721,578
_________ _______ ______ _______ _________
TOTAL $2,786,841 $355,019 $41,156 $21,752 $3,122,456
========= ======= ====== ======= =========
Year ended June 30, 1993:
Buildings $ 319,341 $ 39,013 $ 1,370 $ 1,346 $ 358,330
Machinery and equipment 2,168,614 290,092 21,446 (8,749) 2,428,511
_________ _______ ______ _______ _________
TOTAL $2,487,955 $329,105 $22,816 $ (7,403) $2,786,841
========= ======= ====== ======= =========
Year ended June 30, 1992:
Buildings $ 287,249 $ 33,104 $ 2,499 $ 1,487 $ 319,341
Machinery and equipment 1,849,055 261,181 41,894 100,272 2,168,614
_________ _______ ______ _______ _________
TOTAL $2,136,304 $294,285 $44,393 $101,759 $2,487,955
========= ======= ====== ======= =========
(1) Other changes relate to accumulated depreciation of acquired
companies and changes due to foreign currency translation.
24
PAGE 25
SCHEDULE IX--SHORT-TERM BORROWINGS
ARCHER DANIELS MIDLAND COMPANY AND SUBSIDIARIES
COL. A COL. B COL. C COL. D. COL. E COL.
F
Maximum Average Weighted
Weighted Amount Amount Average
Average Outstanding Outstanding Interest Rate
Category of Aggregate Balance at Interest During the During the During the
Short-Term Borrowings End of Period Rate Period (1) Period (2) Period (3)
Year ended June 30, 1994:
Commercial paper holders None - $181,500,000 $29,381,000 3.32%
Banks None - 72,275,000 55,857,000 3.85%
Other financial institutions None - -0- -0- - %
Year ended June 30, 1993:
Commercial paper holders None - $135,000,000 $13,070,000 3.24%
Banks None - 69,700,000 54,769,000 3.87%
Other financial institutions None - -0- -0- - %
Year ended June 30, 1992:
Commercial paper holders None - $140,000,000 $ 7,432,000 4.36%
Banks None - 50,000,000 60,372,000 5.54%
Other financial institutions None - -0- -0- - %
(1) Represents maximum aggregate short-term borrowings
outstanding during the period without regard to category.
(2) The average amount outstanding during the period was
computed by dividing the total daily outstanding principal
balances by 365.
(3) The weighted average interest rate during the period was
computed by dividing the actual short-term interest expense
by average short-term debt outstanding.
25
PAGE 26
SCHEDULE X--SUPPLEMENTARY INCOME STATEMENT INFORMATION
ARCHER DANIELS MIDLAND COMPANY AND SUBSIDIARIES
COL. A COL. B
Charged to Costs
Item and Expenses
Year Ended June 30
1994 1993 1992
________ ________
________
(In thousands)
Maintenance and repairs $299,519 $273,572 $251,820
Amounts for other items are not presented as such amounts are
each less than 1% of total sales and other operating income.
26