UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D. C. 20549
FORM
11-K
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x
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ANNUAL
REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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For
the fiscal year ended December 31, 2007
OR
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o
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TRANSITION
REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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For
the transition period __________ To __________
Commission
file number 1-44
ARCHER-DANIELS-MIDLAND
COMPANY
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A.
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Full
title of the plan and the address of the plan, if different from that of
the issuer named below:
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ADM
401(k) and Employee Stock Ownership Plan for Salaried Employees
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B.
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Name
of the issuer of the securities held pursuant to the Plan and the address
of its principal executive office:
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Archer-Daniels-Midland
Company
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4666
Faries Parkway
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PO
Box 1470
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Decatur,
Illinois 62525
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ADM
401(k) and Employee Stock Ownership Plan for Salaried Employees
Years
Ended December 31, 2007 and 2006
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, 2007 and 2006
Contents
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Report
of Independent Registered Public Accounting Firm
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1
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Audited
Financial Statements
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Statements
of Net Assets Available for Benefits
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2
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Statements
of Changes in Net Assets Available for Benefits
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3
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Notes
to Financial Statements
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4
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Schedule
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Schedule
H, Line 4i – Schedule of Assets (Held at End of Year)
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11
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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, 2007 and 2006, 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, 2007 and 2006, 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, 2007, 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
Ernst & Young
LLP
St.
Louis, Missouri
June 25,
2008
ADM
401(k) and Employee Stock Ownership Plan for Salaried Employees
Statements
of Net Assets Available for Benefits
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December
31
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||||||||
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2007
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2006
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|||||||
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Assets
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||||||||
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Interest
in Master Trust at fair value
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$ | 1,039,851,828 | $ | 815,494,506 | ||||
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Accrued
investment income
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16,327,925 | 9,984,389 | ||||||
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Participant
loans receivable
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5,461,405 | 5,607,404 | ||||||
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Contributions
receivable from employer
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1,548,107 | 1,461,008 | ||||||
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Net
assets available for benefits at fair value
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1,063,189,265 | 832,547,307 | ||||||
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Adjustment
from fair value to contract value for fully responsible investment
contract
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837,830 | 2,022,130 | ||||||
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Net
assets available for benefits
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$ | 1,064,027,095 | $ | 834,569,437 | ||||
See
accompanying notes.
ADM
401(k) and Employee Stock Ownership Plan for Salaried Employees
Statements
of Changes in Net Assets Available for Benefits
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Year
Ended December 31
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2007
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2006
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Additions:
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||||||||
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Contributions
from employer
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$ | 19,014,392 | $ | 17,753,219 | ||||
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Contributions
from employees
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35,715,548 | 32,346,466 | ||||||
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Transfers
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11,415,398 | 2,489,792 | ||||||
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Dividend
and interest income
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36,193,644 | 24,273,250 | ||||||
| 102,338,982 | 76,862,727 | |||||||
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Deductions:
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||||||||
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Withdrawals
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57,606,329 | 74,912,036 | ||||||
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Net
realized and unrealized appreciation in fair value of
investments
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184,725,005 | 150,153,524 | ||||||
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Net
increase
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229,457,658 | 152,104,215 | ||||||
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Net
assets available for benefits at beginning of year
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834,569,437 | 682,465,222 | ||||||
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Net
assets available for benefits at end of year
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$ | 1,064,027,095 | $ | 834,569,437 | ||||
See
accompanying notes.
ADM
401(k) and Employee Stock Ownership Plan for Salaried Employees
Notes to
Financial Statements
December
31, 2007
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. 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.
ADM
401(k) and Employee Stock Ownership Plan for Salaried Employees
Notes to
Financial Statements (continued)
1.
Description of the Plan (continued)
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.
The
Company matches participant contributions made to the Plan by contributing ADM
common stock. The Company matches 100% of the first 4% of
compensation contributed and 50% of the next 2% of compensation
contributed. Both participant contributions and the Company match
immediately vest to the participant.
Investment
Options
Participants
may invest their contributions in one or more of the investment funds 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 to the Plan to be invested in the investment options
available under the Plan.
Participant
Accounts
Each
participant’s account contains the participant’s respective contributions, 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)
Participant
Loans
Eligible
participants may borrow from their fund accounts a minimum of $1,000 up to the
lesser of $50,000, 50% of their participant account balance, or 100% of their
loan eligible fund accounts. A maximum of one loan may be outstanding
to a participant at any time.
Loans are
allowed for purposes of educational or medical expenses, the purchase of a
primary residence, funeral or burial expenses, to prevent eviction or
foreclosure, and casualty repair to a home or auto. 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.
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.
Withdrawal
The full
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 common collective trusts is based on quoted
redemption values 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.
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 attribute 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 invests in
investment contracts through a common collective trust (Invesco Stable Value
Fund). As required by the FSP, the statement of net assets available for
benefits presents the fair value of the investment in the common collective
trust as well as the adjustment from fair value to contract value for fully
benefit-responsive investment contracts. The fair value of the Plan's
interest in the Invesco Stable Value Fund is based on information reported by
the issuer of the common collective trust at year-end. The contract
value of the Invesco Stable Value Fund represents contributions plus earnings,
less participant withdrawals and administrative expenses.
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.
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. Participants are also charged loan fees and check processing
fees in certain circumstances. Any remaining costs of administering
the Plan are currently paid by the Plan’s sponsor, ADM. While it is
anticipated that ADM will continue to pay these costs, the Plan does permit the
reasonable expenses of administering the Plan to be paid from the trust
fund.
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.
ADM
401(k) and Employee Stock Ownership Plan for Salaried Employees
Notes to
Financial Statements (continued)
2. Significant Accounting Policies (continued)
New
Accounting Pronouncement
In
September 2006, the Financial Accounting Standards Board issued Statement on
Financial Accounting Standards No. 157 (FAS 157), Fair Value Measurement. This
standard clarifies the definition of fair value for financial reporting,
establishes a framework for measuring fair value and requires additional
disclosures about the use of fair value measurements. FAS 157 is
effective for financial statements issued for fiscal years beginning after
November 15, 2007. Plan management is currently evaluating the effect that the
provisions of FAS 157 will have on the Plan’s financial statements.
Reclassification
Certain
items in prior year financial statements have been reclassified to conform to
the current year’s presentation.
3.
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, 2007 and 2006, 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:
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December
31
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||||||||
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2007
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2006
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|||||||
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Assets
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||||||||
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Investment
securities at fair value:
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||||||||
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ADM
common stock
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$ | 805,616,265 | $ | 621,115,330 | ||||
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Mutual
funds
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394,095,482 | 314,865,628 | ||||||
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Common
collective trusts
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156,037,872 | 121,143,603 | ||||||
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Other
common stock
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3,775,217 | 4,537,560 | ||||||
| 1,359,524,836 | 1,061,662,121 | |||||||
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Adjustment
from fair value to contract value for fully
responsible investment contract
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1,095,203 | 2,643,307 | ||||||
| $ | 1,360,620,039 | $ | 1,064,305,428 | |||||
ADM
401(k) and Employee Stock Ownership Plan for Salaried Employees
Notes to
Financial Statements (continued)
3.
Master Trust Investment Information (continued)
Summarized
financial information with respect to the Master Trust’s investment income is as
follows:
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Year
Ended December 31
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||||||||
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2007
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2006
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|||||||
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Net
realized and unrealized appreciation (depreciation)
in
fair value of investments:
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||||||||
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ADM
common stock
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$ | 255,530,349 | $ | 172,726,655 | ||||
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Mutual
funds
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(4,799,518 | ) | 19,363,905 | |||||
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Other
common stock
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(409,367 | ) | 598,282 | |||||
| $ | 250,321,464 | $ | 192,688,842 | |||||
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Dividend
and interest income
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$ | 46,965,804 | $ | 30,693,867 | ||||
4.
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 accounts.
5.
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:
|
Year
Ended December 31
|
||||||||
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2007
|
2006
|
|||||||
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Net
assets available for benefits per the financial
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||||||||
|
statements
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$ | 1,064,027,095 | $ | 834,569,437 | ||||
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Less
amounts allocated to withdrawing participants
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2,450,675 | 93,880 | ||||||
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Net
assets available for benefits per the Form 5500
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$ | 1,061,576,420 | $ | 834,475,557 | ||||
ADM
401(k) and Employee Stock Ownership Plan for Salaried Employees
Notes to
Financial Statements (continued)
5.
Reconciliation of Financial Statements to Form 5500 (continued)
The
following is a reconciliation of withdrawals per the financial statements to the
Form 5500:
|
Year
Ended December 31
|
||||||||
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2007
|
2006
|
|||||||
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Withdrawals
per the financial statements
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$ | 57,606,329 | $ | 74,912,036 | ||||
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Add
amounts allocated to withdrawing participants
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2,450,675 | 93,880 | ||||||
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Less
prior year amounts allocated to withdrawing participants
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93,880 | 1,269,076 | ||||||
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Withdrawals
per the Form 5500
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$ | 59,963,124 | $ | 73,736,840 | ||||
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, 2007 and 2006, but not yet paid.
6.
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 tax exempt.
7.
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, 2007
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Identity
of Issuer, Borrower,
Lessor,
or Similar Party
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Description
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Current
Value
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Participant
loans*
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Loans,
interest rates from 4.75% to 10.5%, maturities through
2020
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$5,461,405
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* 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
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/s/Steven R.
Mills
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Steven
R. Mills
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Executive
Vice President and
Chief
Financial Officer
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Dated:
June 30, 2008
Exhibit
Index
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Exhibit
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Description
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23
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Consent
of Ernst & Young LLP.
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