UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D. C. 20549
FORM
11-K
|
x
|
ANNUAL
REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For
the fiscal year ended December 31, 2008
OR
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For
the transition period __________ To __________
Commission
file number 1-44
ARCHER-DANIELS-MIDLAND
COMPANY
|
A.
|
Full
title of the plan and the address of the plan, if different from that of
the issuer named below:
|
ADM
401(k) and Employee Stock Ownership Plan for Salaried Employees
|
B.
|
Name
of the issuer of the securities held pursuant to the Plan and the address
of its principal executive office:
|
|
Archer-Daniels-Midland
Company
|
|
4666
Faries Parkway
|
|
PO
Box 1470
|
|
Decatur,
Illinois 62525
|
ADM
401(k) and Employee Stock Ownership Plan for Salaried Employees
Years
Ended December 31, 2008 and 2007
With
Report of Independent Registered Public Accounting Firm
ADM
401(k) and Employee Stock Ownership Plan for Salaried Employees
Audited
Financial Statements and Schedule
Years
Ended December 31, 2008 and 2007
Contents
|
Report
of Independent Registered Public Accounting Firm
|
1
|
|
Audited
Financial Statements
|
|
|
Statements
of Net Assets Available for Benefits
|
2
|
|
Statements
of Changes in Net Assets Available for Benefits
|
3
|
|
Notes
to Financial Statements
|
4
|
|
Schedule
|
|
|
Schedule
H, Line 4i – Schedule of Assets (Held at End of Year)
|
16
|
Report of
Independent Registered Public Accounting Firm
The
Benefit Plans Committee
ADM
401(k) and Employee Stock Ownership Plan for Salaried Employees
We have
audited the accompanying statements of net assets available for benefits of the
ADM 401(k) and Employee Stock Ownership Plan for Salaried Employees as of
December 31, 2008 and 2007, and the related statements of changes in net assets
available for benefits for the years then ended. These financial
statements are the responsibility of the Plan’s management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We
conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. We were not engaged to perform an
audit of the Plan’s internal control over financial reporting. Our audits
included consideration of internal control over financial reporting as a basis
for designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the Plan’s
internal control over financial reporting. Accordingly, we express no such
opinion. An audit also includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our
opinion, the financial statements referred to above present fairly, in all
material respects, the net assets available for benefits of the Plan at December
31, 2008 and 2007, and the changes in its net assets available for benefits for
the years then ended, in conformity with U.S. generally accepted accounting
principles.
Our
audits were performed for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedule of assets
(held at end of year) as of December 31, 2008, is presented for purposes of
additional analysis and is not a required part of the financial statements but
is supplementary information required by the Department of Labor’s Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. The supplemental schedule is the responsibility of the
Plan’s management. The supplemental schedule has been subjected to the auditing
procedures applied in our audits of the financial statements and, in our
opinion, is fairly stated in all material respects in relation to the financial
statements taken as a whole.
/s/ Ernst & Young
LLP
St.
Louis, Missouri
June 10,
2009
ADM
401(k) and Employee Stock Ownership Plan for Salaried Employees
Statements
of Net Assets Available for Benefits
|
December
31
|
||||||||
|
2008
|
2007
|
|||||||
|
Assets
|
||||||||
|
Interest
in Master Trust at fair value
|
$ | 717,489,996 | $ | 1,039,851,828 | ||||
|
Accrued
investment income
|
1,245,159 | 16,327,925 | ||||||
|
Participant
loans receivable
|
15,856,806 | 5,461,405 | ||||||
|
Contributions
receivable from employer
|
1,603,553 | 1,548,107 | ||||||
|
Net
assets available for benefits at fair value
|
736,195,514 | 1,063,189,265 | ||||||
|
Adjustment
from fair value to contract value for fully responsive investment
contract
|
10,261,804 | 837,830 | ||||||
|
Net
assets available for benefits
|
$ | 746,457,318 | $ | 1,064,027,095 | ||||
See
accompanying notes.
ADM
401(k) and Employee Stock Ownership Plan for Salaried Employees
Statements
of Changes in Net Assets Available for Benefits
|
Year
Ended December 31
|
||||||||
|
2008
|
2007
|
|||||||
|
Additions:
|
||||||||
|
Contributions
from employer
|
$ | 19,927,468 | $ | 19,014,392 | ||||
|
Contributions
from employees
|
36,241,281 | 35,715,548 | ||||||
|
Transfers
|
1,080,526 | 11,415,398 | ||||||
|
Dividend
and interest income
|
21,400,981 | 36,193,644 | ||||||
| 78,650,256 | 102,338,982 | |||||||
|
Deductions:
|
||||||||
|
Withdrawals
|
73,367,228 | 57,606,329 | ||||||
|
Plan
expenses
|
178,742 | 146,770 | ||||||
| 73,545,970 | 57,753,099 | |||||||
|
Net
realized and unrealized appreciation (depreciation) in fair value of
investments
|
(322,674,063 | ) | 184,871,775 | |||||
|
Net
increase (decrease)
|
(317,569,777 | ) | 229,457,658 | |||||
|
Net
assets available for benefits at beginning of year
|
1,064,027,095 | 834,569,437 | ||||||
|
Net
assets available for benefits at end of year
|
$ | 746,457,318 | $ | 1,064,027,095 | ||||
See
accompanying notes.
ADM
401(k) and Employee Stock Ownership Plan for Salaried Employees
Notes to
Financial Statements (continued)
December
31, 2008
1.
Description of the Plan
General
The ADM
401(k) and Employee Stock Ownership Plan for Salaried Employees (the Plan) is a
defined contribution plan available to all eligible salaried employees of
Archer-Daniels-Midland Company (ADM or the Company). The Plan is
subject to the provisions of the Employee Retirement Income Security Act of 1974
(ERISA). Participants should refer to the plan document and the
prospectus for a more complete description of the Plan’s
provisions.
Employees
are eligible to enroll in the Plan on the first day of employment with a
participating employer. Employees are eligible to receive Company
matching contributions after completing six months of continuous employment with
a participating employer. Effective January 1, 2009, employees of a
participating employer are eligible to receive Company matching contributions
immediately. At least 1,000 hours and one year of continuous service
are required for part-time, temporary or seasonal employees to be eligible for
participation in the Plan.
Arrangement
With Related Party
All plan
assets are held by Hickory Point Bank & Trust, FSB, a wholly owned
subsidiary of ADM, through a master trust agreement (the Master Trust)
established for the Plan and the ADM 401(k) and Employee Stock Ownership Plan
for Hourly Employees.
Contributions
Under the
terms of the Plan, employees electing to participate can contribute from 1% up
to as much as 50% of their compensation to the Plan, subject to certain Internal
Revenue Service (IRS) limitations. Participants age 50 or older can
make additional “catch-up” contributions, up to the limits allowed under the tax
law.
Until
December 31, 2008, the Company matched participant contributions to the Plan
with ADM common stock. The Company matched 100% of the first 4% of
compensation contributed and 50% of the next 2% of compensation
contributed. The participant and Company contributions vested immediately
to the participant. Effective January 1, 2009, ADM’s matching contributions are
made in cash. In addition, starting January 1, 2009, the Company will also make
a non-elective contribution of 1% to all eligible employees’ accounts and
revised the match formula to match 100% of the first 2% of compensation
contributed and 50% of the next 4% of compensation contributed. For
participants hired after January 1, 2009, the Company match and non-elective
contributions will vest over a two year period.
ADM
401(k) and Employee Stock Ownership Plan for Salaried Employees
Notes to
Financial Statements (continued)
1.
Description of the Plan (continued)
Investment
Options
Participants
may invest their contributions in one or more of the investment options offered
by the Plan and in ADM common stock.
Participants
can elect at any time to convert all or any number of the shares of ADM common
stock acquired through participant contributions and Company match to cash and
have the cash transferred within the Plan to be invested in the investment
options available under the Plan.
Participant
Loans
On
January 1, 2008, the criteria to obtain a participant loan
changed. Loans are allowed for general purposes, educational or
medical expenses, purchase of a primary residence, funeral or burial expenses,
to prevent eviction or foreclosure and for casualty repair to a home or
auto. General purpose, educational or medical expense loans are available
for terms of up to five years and home purchase loans are available for terms of
up to ten years. The terms of the other loans vary by
situation.
Eligible
participants may borrow from their fund accounts a minimum of $1,000 or the
amount available to the participant up to the lesser of $50,000, 50% of their
participant account balance or 100% of their loan eligible fund
accounts. A “loan-eligible plan account” for this purpose is any plan
account except an account reflecting “Roth” contributions (including Roth 401(k)
contributions and Roth account rollovers) and earnings thereon. A
maximum of one loan may be outstanding to a participant at any
time.
The loans
are secured by the balance in the participant’s account and bear interest at a
rate equal to the prime rate at the time of the loan’s issuance plus
1%. Principal and interest are repaid ratably through payroll
deductions, with payments taken from each paycheck.
Participant
Accounts
Each
participant’s account contains the participant’s contributions, roll-over or
transferred accounts from other qualified plans, the Company’s matching
contributions and investment earnings. The benefit to which a
participant is entitled is the benefit that can be provided from the
participant’s account.
ADM
401(k) and Employee Stock Ownership Plan for Salaried Employees
Notes to
Financial Statements (continued)
1.
Description of the Plan (continued)
Withdrawal
The fully
vested value of an employee’s account is payable following termination of
employment. Withdrawals by active employees are permitted upon
reaching age 59 1/2 or for specific hardship circumstances (only after
receiving a loan available to the participant under the loan
program).
2.
Significant Accounting Policies
Basis
of Accounting
The
accounting records of the Plan are maintained on the accrual basis.
Investment
Valuation and Income Recognition
Investments
in the Master Trust are carried at fair value. Common stocks are
valued at the quoted market price on the last business day of the plan
year. Investments in mutual funds are stated at the reported net
asset value on the last business day of the plan year. The fair value
of the participation units in the fully responsive investment contracts is based
on quoted redemption value on the last business day of the plan
year. Unallocated funds are invested in a short-term money market
account. Participant loans are valued at cost, which approximates
fair value. Purchases and sales of securities are recorded on a
trade-date basis. Interest income is recorded on the accrual
basis. Dividends are recorded on the shareholder record date as
declared by the related investment.
ADM
401(k) and Employee Stock Ownership Plan for Salaried Employees
Notes to
Financial Statements (continued)
2.
Significant Accounting Policies (continued)
As
described in Financial Accounting Standards Board Staff Position (FSP) AAG INV-1
and SOP 94-4-1, Reporting of
Fully Benefit-Responsive Investment Contracts Held by Certain Investment
Companies Subject to the AICPA Investment Company Guide and Defined-Contribution
Health and Welfare and Pension Plans (the FSP), investment contracts held
by a defined contribution plan are required to be reported at fair value.
However, contract value is the relevant measurement for that portion of the net
assets available for benefits of a defined contribution plan attributable to
fully benefit-responsive investment contracts, because contract value is the
amount participants would receive if they were to initiate permitted
transactions under the terms of the Plan. The Master Trust investment in the
Galliard Stable Value Fund (the Fund) is considered a synthetic guaranteed
investment contract. The Fund replaced the Invesco Stable Value Fund effective
February 1, 2008. As required by the FSP, the statement of net assets
available for benefits presents the fair value of the investment in the Fund as
well as the adjustment from fair value to contract value for fully
benefit-responsive investment contracts. The fair value of the Fund
is based on information reported by Galliard at the last business day of the
plan year. The contract value of the Fund represents contributions
plus earnings, less participant withdrawals and administrative
expenses.
Use
of Estimates
The
preparation of financial statements in conformity with U.S. generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the financial statements and accompanying
notes. Actual results could differ from those estimates.
Reclassification
Certain
items in prior year financial statements have been reclassified to conform to
the current year’s presentation.
ADM
401(k) and Employee Stock Ownership Plan for Salaried Employees
Notes to
Financial Statements (continued)
3. Fair
Value Measurements
Effective
January 1, 2008, the Plan adopted Statement of Financial Accounting Standard No.
157, Fair Value
Measurements (SFAS 157). SFAS 157 establishes a framework for measuring
fair value. That framework provides a fair value hierarchy that
prioritizes the inputs to valuation techniques used to measure fair
value. The hierarchy gives the highest priority to unadjusted quoted
prices in active markets for identical assets or liabilities (level 1
measurements) and the lowest priority to unobservable inputs (level 3
measurements). The three levels are described below:
Level 1: Quoted prices
(unadjusted) in active markets for identical assets or liabilities.
Level 2: Observable inputs,
including Level 1 prices that have been adjusted; quoted prices for similar
assets or liabilities; quoted prices in markets that are less active than traded
exchanges; and other inputs that are observable or can be substantially
corroborated by observable market data.
Level 3: Unobservable inputs
that are supported by little or no market activity and that are a significant
component of the fair value of the assets or liabilities.
A
financial instrument's level within the fair value hierarchy is based on the
lowest level of any input that is significant to the fair value
measurement. In evaluating the significance of fair value inputs, the
Company generally classifies assets or liabilities as Level 3 when their fair
value is determined using unobservable inputs that individually, or when
aggregated with other unobservable inputs, represent more than 10% of the fair
value of the assets or liabilities. Judgment is required in evaluating
both quantitative and qualitative factors in the determination of significance
for purposes of fair value level classification. Valuation techniques used
are generally required to maximize the use of observable inputs and minimize the
use of unobservable inputs.
Following
is a description of the valuation methodologies used for instruments measured at
fair value, including the general classification of such instruments pursuant to
the valuation hierarchy.
ADM
and other common stock:
ADM and
other common stocks are valued at the closing price reported on the New York
Stock Exchange and are classified within level 1 of the valuation
hierarchy.
Mutual
funds:
Mutual
funds are valued at the closing price reported on the NASDAQ and are classified
within level 1 of the valuation hierarchy.
ADM
401(k) and Employee Stock Ownership Plan for Salaried Employees
Notes to
Financial Statements (continued)
3. Fair
Value Measurements (continued)
Stable
Value Fund:
The
security backed contract is created through the Fund’s investments in wrapper
contracts associated with its investments in common collective
trusts. The fair value of a wrapper contract provided by a
security-backed contract issuer is the present value of the difference between
the current wrapper fee and the contracted wrapper fee. The fees and
discount rate are directly observable inputs. The fair values of the
common collective trusts are based on the cumulative net asset value of their
underlying investments, which are primarily U.S. government and agency
securities, municipal bonds, and corporate notes and bonds. The fair
value of these underlying investments are generally determined by quotes from a
quotation reporting system, established market makers, or pricing
services.
Participant
Loans:
Loans to
plan participants are valued at cost plus accrued interest, which approximates
fair value and are classified within level 3 of the valuation
hierarchy.
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, while the Plan believes its valuation methods
are appropriate and consistent with other market participants’ methods, the use
of different methodologies or assumptions to determine the fair value of certain
financial instruments could result in a different fair value measurement at the
reporting date.
The
following table sets forth by level within the fair value hierarchy the
investments included in the Master Trust at fair value as at December 31,
2008.
|
Quoted
Prices
in
Active
Markets
for
Identical
Assets
(Level
1)
|
Significant
Other Observable Inputs
(Level
2)
|
Significant
Unobservable Inputs
(Level
3)
|
Total
|
|||||||||||||
|
ADM
and other common stock
|
$ | 509,201,651 | $ | – | $ | – | $ | 509,201,651 | ||||||||
|
Mutual
funds
|
271,513,255 | – | – | 271,513,255 | ||||||||||||
|
Stable
value fund
|
– | 156,933,894 | – | 156,933,894 | ||||||||||||
|
Total
assets at fair value
|
$ | 780,714,906 | $ | 156,933,894 | $ | – | $ | 937,648,800 | ||||||||
ADM
401(k) and Employee Stock Ownership Plan for Salaried Employees
Notes to
Financial Statements (continued)
3. Fair
Value Measurements (continued)
Participant
loans are the only investments specific to the Plan. Fair value of
the Plan’s participant loans balance of $15,856,806 is classified as a level 3
investment.
Level
3 Gains and Losses:
The table
below sets forth a summary of changes in the fair value of the Plan’s level 3
assets for the year ended December 31, 2008.
|
Participant
loans
|
||||
|
Balance
at beginning of year
|
$ | 5,461,405 | ||
|
Issuances
and settlements (net)
|
10,395,401 | |||
|
Balance
at end of year
|
$ | 15,856,806 | ||
4. Investment
Contract
The
Master Trust invests in security backed investment contracts through the
Galliard Stable Value Fund (the Fund). The Fund is considered a security backed
investment contract and primarily invests in common collective trusts as well as
wrapper contracts. The wrapper contracts provide assurance that
future adjustments to the variable crediting rates of investments in the common
collective trust cannot result in a crediting rate less than zero.
The
wrapper contracts are investment contracts issued by an insurance company or
other financial institution, backed by the portfolio of bonds that are owned by
the common collective trusts in which the Fund is invested. The portfolio
underlying the contract is maintained separately from the contract issuer’s
general assets, by a third party custodian. The interest crediting rate of the
wrapper contracts is based on the contract value, and the fair value, duration,
and yield to maturity of the underlying portfolio. These contracts typically
allow for realized and unrealized gains and losses on the underlying assets to
be amortized, usually over the duration of the underlying investments, through
adjustments to the future interest crediting rate, rather than reflected
immediately in the net assets of the Fund. The issuer guarantees that all
qualified participant withdrawals will be at contract value.
Risks
arise when entering into any investment contract due to the potential inability
of the issuer to meet the terms of the contract. In addition, security backed
investment contracts have the risk of default or the lack of liquidity of the
underlying portfolio assets.
ADM
401(k) and Employee Stock Ownership Plan for Salaried Employees
Notes to
Financial Statements (continued)
4. Investment
Contract (continued)
The
primary variables impacting the future crediting rates of security backed
investment contracts include the current yield of the assets underlying the
contract, the duration of the assets underlying the contract and the existing
difference between the fair value and contract value of the assets within the
contract.
The Fund
uses a compound net crediting rate formula, which reflects fees paid to security
backed contract issuers.
The
security backed investment contracts are designed to reset their respective
crediting rates on a quarterly basis and cannot credit an interest rate that is
less than zero percent.
The
crediting rate of security backed investment contracts will track current market
yields on a trailing basis. The rate reset allows the contract value to converge
with the fair value of the underlying portfolio over time, assuming the
portfolio continues to earn the current yield for a period of time equal to the
current portfolio duration.
To the
extent that the underlying portfolio of a security backed investment contract
has unrealized and/or realized losses, a positive adjustment is made to the
adjustment from fair value to contract value under contract value accounting. As
a result, the future crediting rate may be lower over time than the then-current
market rates. Similarly, if the underlying portfolio generates unrealized and/or
realized gains, a negative adjustment is made to the adjustment from fair value
to contract value, and the future crediting rate may be higher than the
then-current market rates.
The yield
earned by the Fund at December 31, 2008 was 6.20%. This represents the
annualized earnings of all investments in the Fund divided by the fair value of
all investments in the Fund at December 31, 2008. The yield earned by the Fund
with an adjustment to reflect the actual interest rate credited to participants
in the Fund at December 31, 2008 was 4.16%. This represents the annualized
earnings credited to participants in the Fund divided by the fair value of all
investments in the Fund at December 31, 2008.
Security
backed investment contracts generally provide for withdrawals associated with
certain events which are not in the ordinary course of Fund operations. These
withdrawals are paid with a market value adjustment applied to the withdrawal as
defined in the investment contract. Each contract issuer specifies the events
which may trigger a market value adjustment.
At this
time, the Fund does not believe that the occurrence of any such market value
event, which would limit the Fund’s ability to transact at contract value with
participants, is probable.
ADM
401(k) and Employee Stock Ownership Plan for Salaried Employees
Notes to
Financial Statements (continued)
4. Investment
Contract (continued)
Security
backed investment contracts generally contain termination provisions, allowing
the Fund or the contract issuer to terminate with notice at any time at fair
value, and providing for automatic termination of the contract if the contract
value or the fair value of the underlying portfolio equals zero. The issuer is
obligated to pay the excess contract value when the fair value of the underlying
portfolio equals zero. In addition, if the Fund defaults on its obligations
under the security-backed contract (including the issuer’s determination that
the agreement constitutes a non-exempt prohibited transaction as defined under
ERISA), and such default is not corrected within the time permitted by the
contract, then the contract may be terminated by the issuer and the Fund will
receive the fair value as of the date of termination.
5.
Master Trust Investment Information
The
Plan’s investments are held in the Master Trust. Investments and the
income therefrom are allocated to participating plans based on each plan’s
participation in investment options within the Master Trust. At
December 31, 2008 and 2007, the Plan’s interest in the net assets of the Master
Trust was approximately 76%.
The
following table presents the investments for the Master Trust:
|
December
31
|
||||||||
|
2008
|
2007
|
|||||||
|
Assets
|
||||||||
|
Investment
securities at fair value:
|
||||||||
|
ADM
common stock
|
$ | 506,439,622 | $ | 805,616,265 | ||||
|
Mutual
funds
|
271,513,255 | 394,095,482 | ||||||
|
Common
collective trusts
|
– | 156,037,872 | ||||||
|
Investment
contract
|
156,933,894 | – | ||||||
|
Other
common stock
|
2,762,029 | 3,775,217 | ||||||
| 937,648,800 | 1,359,524,836 | |||||||
|
Adjustment
from fair value to contract value for fully responsive investment
contract
|
13,658,695 | 1,095,203 | ||||||
| $ | 951,307,495 | $ | 1,360,620,039 | |||||
ADM
401(k) and Employee Stock Ownership Plan for Salaried Employees
Notes to
Financial Statements (continued)
5.
Master Trust Investment Information (continued)
Summarized
financial information with respect to the Master Trust’s investment income is as
follows:
|
Year
Ended December 31
|
||||||||
|
2008
|
2007
|
|||||||
|
Net
realized and unrealized appreciation (depreciation) in
fair value of investments:
|
||||||||
|
ADM
common stock
|
$ | (268,008,531 | ) | $ | 255,721,316 | |||
|
Mutual
funds
|
(151,470,530 | ) | (4,799,518 | ) | ||||
|
Other
common stock
|
(821,382 | ) | (408,422 | ) | ||||
| (420,300,443 | ) | 250,513,376 | ||||||
|
Dividend
and interest income
|
$ | 25,517,084 | $ | 46,965,804 | ||||
The 2007
net realized and unrealized appreciation (depreciation) amounts have been
adjusted to reflect plan expenses which are now separately classified in the
statement of changes in net assets available for benefits.
6.
Plan expenses
Brokerage
commissions, transfer taxes, and other charges and expenses in connection with
the purchase or sale of securities are charged against the trust fund and added
to the cost of such securities or deducted from the sale proceeds, as the case
may be. Mutual funds incur expenses in the course of their operations
and distribute returns to shareholders based on the fund’s net income.
Accordingly these costs are not shown in plan expenses. Participants are charged
check processing fees in certain circumstances. Costs of
administering the Plan, including the trustee, record keeper, audit and
actuarial fees are currently paid by the Plan’s sponsor, ADM. While
it is anticipated that ADM will continue to pay these costs, the Plan permits
the reasonable expenses of administering the Plan to be paid from the trust
fund.
7.
Plan Termination
Although
it has not expressed any intent to do so, the Company has the right to
discontinue its contributions at any time and to terminate the Plan subject to
the provisions of ERISA. In the event of plan termination,
participants remain 100% vested in their contributions.
ADM
401(k) and Employee Stock Ownership Plan for Salaried Employees
Notes to
Financial Statements (continued)
8.
Reconciliation of Financial Statements to Form 5500
The
following is a reconciliation of net assets available for benefits per the
financial statements to the Form 5500:
|
December
31
|
||||||||
|
2008
|
2007
|
|||||||
|
Net
assets available for benefits per the financial statements
|
$ | 746,457,318 | $ | 1,064,027,095 | ||||
|
Adjustments
to contract value for fully responsive investment contract
|
(10,261,804 | ) | (837,830 | ) | ||||
|
Amounts
allocated to deemed distributions
|
(40,620 | ) | - | |||||
|
Amounts
allocated to withdrawing participants
|
(183,946 | ) | (2,450,675 | ) | ||||
|
Net
assets available for benefits per the Form 5500
|
$ | 735,970,948 | $ | 1,060,738,590 | ||||
The
following is a reconciliation of net realized and unrealized appreciation
(depreciation) per the financial statements to the Form 5500:
|
Year
Ended December 31
|
||||||||
|
2008
|
2007
|
|||||||
|
Net
realized and unrealized appreciation (depreciation) per the financial
statements
|
$ | (322,674,063 | ) | $ | 184,871,775 | |||
|
Current
year adjustments to contract value for fully responsive investment
contract
|
(10,261,804 | ) | (837,830 | ) | ||||
|
Prior
year adjustments to contract value for fully responsive investment
contract
|
837,830 | - | ||||||
|
Net
realized and unrealized appreciation (depreciation) per the Form
5500
|
$ | (332,098,037 | ) | $ | 184,033,945 | |||
The
following is a reconciliation of withdrawals per the financial statements to the
Form 5500:
|
Year
Ended December 31
|
||||||||
|
2008
|
2007
|
|||||||
|
Withdrawals
per the financial statements
|
$ | 73,367,228 | $ | 57,606,329 | ||||
|
Amounts
allocated to deemed distributions
|
40,620 | - | ||||||
|
Current
year amounts allocated to withdrawing participants
|
183,946 | 2,450,675 | ||||||
|
Prior
year amounts allocated to withdrawing participants
|
(2,450,675 | ) | (93,880 | ) | ||||
|
Withdrawals
per the Form 5500
|
$ | 71,141,119 | $ | 59,963,124 | ||||
Amounts
allocated to withdrawing participants were recorded on the Form 5500 for
withdrawal requests that have been processed and approved for payment prior to
December 31, 2008 and 2007, but not yet paid.
ADM
401(k) and Employee Stock Ownership Plan for Salaried Employees
Notes to
Financial Statements (continued)
9.
Income Tax Status
The Plan
received a determination letter from the IRS, dated July 27, 2007, stating the
Plan is qualified under Section 401(a) of the Internal Revenue Code (the Code),
and therefore, the related trust is exempt from taxation. Subsequent
to this determination by the Internal Revenue Service, the Plan was
amended. Once qualified, the Plan is required to operate in
conformity with the Code to maintain its qualification. The plan
sponsor believes the Plan is being operated in compliance with the applicable
requirements of the Code and, therefore, believes that the Plan, as amended, is
qualified and the related trust is exempt.
10.
Risks and Uncertainties
The Plan
invests in various investment securities. Investment securities are
exposed to various risks such as interest rate, market, and credit
risks. Due to the level of risk associated with certain investment
securities, it is at least reasonably possible that changes in the values of
investment securities will occur in the near term and that such changes could
materially affect participants’ account balances and the amounts reported in the
statements of net assets available for benefits.
Schedule
ADM
401(k) and Employee Stock Ownership Plan for Salaried Employees
EIN: 41-0129150
Plan
029
Schedule
H, Line 4i – Schedule of Assets (Held at End of Year)
December
31, 2008
|
Identity
of Issuer, Borrower,
Lessor,
or Similar Party
|
Description
|
Current
Value
|
|
Participant
loans*
|
Loans,
interest rates from 4.75% to 10.5%, maturities through
2018
|
$15,856,806
|
* Parties
in interest.
Signature
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Plan
Administrator has duly caused this annual report to be signed on its behalf by
the undersigned hereunto duly authorized.
| ARCHER-DANIELS-MIDLAND COMPANY | |
|
/s/Steven R. Mills
|
|
|
Steven
R. Mills
|
|
|
Executive
Vice President and
Chief
Financial
Officer
|
Dated:
June 25, 2009
Exhibit
Index
|
Exhibit
|
Description
|
|
23
|
Consent
of Ernst & Young LLP.
|