Archer Daniels Midland 2014 Annual Report Download

Download and view the complete annual report

Please find the complete 2014 Archer Daniels Midland annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 204

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204

Letter to
SHAREHOLDERS
Proxy
STATEMENT
Form
10K
2014
ARCHER DANIELS MIDLAND COMPANY

Table of contents

  • Page 1
    2014 ARCHER DANIELS MIDLAND COMPANY Letter to SHAREHOLDERS Proxy STATEMENT Form 10-K

  • Page 2
    ... and now as a global supplier of natural flavors as well. Strong earnings on contributions from all businesses Earnings were up nearly $1 billion from the prior year, and adjusted segment operating profit was up 25 percent, to $3.7 billion, from $3.0 billion in 2013. By the end of 2014, thanks to an...

  • Page 3
    ... criteria. In 2014, we reached agreements to sell our chocolate business to Cargill for $440 million, and our cocoa business to Olam International Limited for $1.3 billion. While our teams have done a good job of growing these businesses since ADM entered the cocoa and chocolate industry in 1997...

  • Page 4
    ...range of solutions that address taste, texture, nutrition and function. On Jan. 1, 2015, we launched a new business unit, WILD Flavors and Specialty Ingredients, which brings together WILD Flavors, many of ADM's specialty businesses, and the operations of the newly acquired Specialty Commodities Inc...

  • Page 5
    ...past year demonstrated that we have the right talent, coupled with the right strategy, to take us forward. The goal now is to help them take their efforts-and ADM's performance- to the next level. Juan R. Luciano Chief Executive Officer and President Patricia A. Woertz Chairman, Board of Directors

  • Page 6

  • Page 7
    Proxy STATEMENT ARCHER DANIELS MIDLAND COMPANY 2014

  • Page 8
    ...Annual Meeting of Stockholders of Archer-Daniels-Midland Company, a Delaware corporation, will be held at the JAMES R. RANDALL RESEARCH CENTER located at 1001 Brush College Road, Decatur, Illinois, on Thursday, May 7, 2015, commencing at 10:00 A.M., for the following purposes: (1) To elect Directors...

  • Page 9
    ARCHER-DANIELS-MIDLAND COMPANY 77 West Wacker Drive, Suite 4600, Chicago, Illinois 60601 March 27, 2015 PROXY STATEMENT General Matters Our board of directors asks that you complete the accompanying proxy for the annual stockholders' meeting. The meeting will be held at the time, place, and location...

  • Page 10
    ... stock shares: Name and Address of Beneficial Owner Amount Percent of Class State Farm Mutual Automobile Insurance Company ...and related entities One State Farm Plaza Bloomington, IL 61710 The Vanguard Group ...100 Vanguard Blvd. Malvern, PA 19355 BlackRock, Inc...40 East 52nd Street New York...

  • Page 11
    ... election as Chief Executive Officer of our company. If elected, the nominees would hold office until the next annual stockholders' meeting and until their successors are elected and qualified. If any nominee for director becomes unable to serve as a director, the persons named in the proxy may vote...

  • Page 12
    ... Director of Northrup Grumman Corporation. Juan R. Luciano, 53 ...Chief Executive Officer and President since January 2015; President and Chief Operating Officer from February 2014 to December 2014; Executive Vice President and Chief Operating Officer from April 2011 to February 2014; Executive Vice...

  • Page 13
    ... March, 2010 - November, 2013; Senior Advisor, U.S. Department of Commerce from May, 2009 - March, 2010 Daniel Shih, 63 ...Deputy Chairman, Executive Director and Chief Strategy Officer of Stella International Holdings Limited (a developer and manufacturer of footwear) from May, 2008 - August, 2013...

  • Page 14
    ..., Chief Financial Officer and Vegetable Business CEO for Monsanto Company from September 2007 to November 2009, and Executive Vice President and Chief Financial Officer from 2000 to 2007. Mr. Crews brings to our board of directors extensive expertise in finance and related functions, as well as...

  • Page 15
    ..., human resources, compliance, risk management, international business and public affairs. Juan R. Luciano Mr. Luciano joined ADM in 2011 as executive vice president and chief operating officer, was named president in February 2014, and was named Chief Executive Officer effective January 1, 2015...

  • Page 16
    ... policy, international trade and international investment. Daniel Shih Mr. Shih served as Deputy Chairman, Executive Director and Chief Strategy Officer of Stella International Holdings Limited, a company listed on the Main Board of the Hong Kong Stock Exchange, from May 2008 to August 2013. He...

  • Page 17
    knowledge of our company's operations and strategy provide a valuable resource to both the board and Mr. Luciano, which has helped facilitate a smooth transition of the Chief Executive Officer role and effective dialogue between management and the board. Ms. Woertz also has significant knowledge of ...

  • Page 18
    ... level of responsibility with our company. The stock ownership guidelines applicable to the named executive officers (as defined herein) are set forth below. Ownership Guideline as a Multiple of Salary Executive P. A. Woertz ...J. R. Luciano ...R. G. Young ...D. C. Findlay ...J.D. Taets ... 5x 3x...

  • Page 19
    ...accounts of the named individuals under our 401(k) and Employee Stock Ownership Plan and, pursuant to SEC rules, stock options exercisable within 60 days. Common stock beneficially owned as of March 12, 2015 by all directors, director nominees and executive officers as a group, numbering 22 persons...

  • Page 20
    ... supplies to our company and that Hormel Foods Corporation, of which Mr. Crews is a director, purchased certain commodity products from our company, all on an arms-length basis during the fiscal year ended December 31, 2014. The board determined that Mr. Crews does not have a direct or indirect...

  • Page 21
    ... website, www.adm.com, and are available free of charge on written request to the Secretary, Archer-Daniels-Midland Company 77 West Wacker Drive, Suite 4600, Chicago, Illinois 60601. Independent Executive Sessions In accordance with our corporate governance guidelines, the non-management directors...

  • Page 22
    ... employee benefit plans with respect to the benefits salaried employees receive under such plans. The Compensation/Succession Committee provides reports to the board of directors and, where appropriate, submits actions to the board of directors for ratification. Members of management attend meetings...

  • Page 23
    ... with the General Corporation Law of Delaware, the committee may delegate to one or more officers the authority to grant stock options to other officers and employees who are not directors or executive officers, provided that the resolution authorizing this delegation specifies the total number of...

  • Page 24
    ... company's NEOs during 2014, who were: Name Title P.A. Woertz J.R. Luciano R.G. Young D.C. Findlay J.D. Taets Chairman and Chief Executive Officer ("CEO") President and Chief Operating Officer ("COO") Senior Vice President and Chief Financial Officer ("CFO") Senior Vice President, General Counsel...

  • Page 25
    ...in 2011 as executive vice president and chief operating officer, and was named president in February 2014. In his role as president and chief operating officer, Mr. Luciano oversaw the commercial and production activities of the company's Corn, Oilseeds, and Agricultural Services businesses, as well...

  • Page 26
    ... each quarter during 2014, our underlying segment operating profit improved sequentially and year-over-year. For the year, the Oilseeds Processing business delivered a strong performance, demonstrating the strength and diversity of the portfolio in delivering consistent results. The Corn Processing...

  • Page 27
    ..., ancient grains and other healthy ingredients. Our Golden Peanut business acquired pecan operations in South Africa and the U.S., and changed its name to Golden Peanut and Tree Nuts. We also acquired the remaining stake in global grain merchandiser Alfred C. Toepfer International, the integration...

  • Page 28
    ... for 2014 were awarded based on performance for the three-year period ended December 31, 2013. 2013 and 2014 Business Performance Impact on CEO Compensation The following chart presents the total direct compensation for the company's Chairman and former Chief Executive Officer, Ms. Patricia Woertz...

  • Page 29
    ... The company's executive compensation program is built on a structure that balances short and long term performance: • Salaries generally target the median of companies of similar scope, complexity and business environment; salaries are reviewed annually and set based on competitiveness versus...

  • Page 30
    ...number used for the annual cash incentive program. Individual performance and the Compensation/Succession Committee's informed judgment are incorporated to ensure actual awards appropriately reflect the company's operating environment and individual executive contributions. The company's LTI program...

  • Page 31
    ... considers proxy advisor and corporate governance best practices as they relate to our executive compensation programs What We Don't Do X No Employment Contracts/Agreements: Effective February 11, 2015 the company no longer has any employment contract with any executive officer X No Dividends Paid...

  • Page 32
    ... annual base salary adjustments, individual and group performance factors, or short and long-term incentive award target levels that should be paid to the other NEOs. The company's Senior Vice President of Human Resources oversees all employee compensation and the administration of benefits programs...

  • Page 33
    ... Senior Vice President of Human Resources involves other members of management in portions of the Compensation/Succession Committee meetings to participate in discussions related to company and individual performance and the company's compensation and benefit programs. The company's executives leave...

  • Page 34
    ...reward measurable results. Section 6 - 2014 Executive Compensation The company's NEOs received, on average, 86% of actual total direct compensation1 in variable pay and 66% of actual total direct compensation in equity awards for FY2014. Although the Compensation/Succession Committee has not adopted...

  • Page 35
    ... of WILD Flavors and Specialty Commodities, Inc. and signed agreements to divest Chocolate, Cocoa and Fertilizer businesses. Ms. Woertz's LTI award for FY2013 was granted at the "challenge" level based primarily on the company's relative TSR performance from January 1, 2011 - December 31, 2013 and...

  • Page 36
    ... Increased leadership capacity; redesigned the company's executive leadership programs to provide our leaders exposure to the latest thinking in strategy development and hired key international colleagues to help accelerate growth in global markets. Mr. Luciano's LTI award for FY2013 was granted at...

  • Page 37
    .... • Further integrated compliance into the business units. Mr. Findlay's LTI award for FY2013 was granted at the "base" level reflecting his partial year of service as agreed at the time of his hire in July, 2013. The award value of Mr. Findlay's FY2013 LTI, awarded in February 2014, was $2,100...

  • Page 38
    ... • • 1 - The FY2013 LTI awards granted in February 2014 appear in the Grants of Plan-Based Awards Table (GPBAT) and are reflected in the Summary Compensation Table (SCT) information for FY2014 because the SEC requires companies to report equity-based LTI awards for the fiscal year during which...

  • Page 39
    ... of WILD Flavors GmbH, which was the largest acquisition in ADM's history, and Specialty Commodities, Inc., and our acquisition of the remaining stake in Alfred C. Toepfer International. The Compensation/Succession Committee incorporated its and the full Board's assessment of the company's CEO...

  • Page 40
    ... as well as multiple other performance factors and economic conditions, and is not strictly formulaic. The February 2014 grants appear in the Grants of Plan-Based Awards table and are reflected in the Summary Compensation Table information for FY2014 because the SEC requires companies to report...

  • Page 41
    ... to President and CEO. Vesting conditions of the company's equity awards granted in February 2014 and February 2015 generally are as follows: • Stock options are granted at an exercise price equal to fair market value of the company's common stock at the grant date in accordance with the 2009...

  • Page 42
    ... 2009 Incentive Compensation Plan, fair market value is the closing market price of the company's common stock on the last trading day prior to the date of grant. The Compensation/Succession Committee meets during the first fiscal quarter of each fiscal year and determines the annual equity awards...

  • Page 43
    ... limitations under applicable tax law. Deferred Compensation Plan Employees with salaries above $175,000 Supplemental Retirement Plan Employees whose retirement benefit is limited by applicable IRS limits What Other Benefits are Provided to NEOs? We provide a benefits package for employees...

  • Page 44
    ... Benefits What Employment Agreements are in Place? In connection with the election of Ms. Woertz as our President and Chief Executive Officer, we and Ms. Woertz entered into Terms of Employment dated as of April 27, 2006. In recognition of the January 1, 2015 change in her position with our company...

  • Page 45
    ...'s directors, the NEOs and certain other officers and employees must be pre-cleared by the company's law department. What Role Does Section 162(m) of the Internal Revenue Code Have in the Design of Executive Compensation Programs? Section 162(m) of the Internal Revenue Code generally disallows a tax...

  • Page 46
    ...Internal Revenue Code and the Employee Retirement Income Security Act. Historically, the company has made contributions in excess of the minimum to maintain its plans at or near a full funding level relative to the accrued benefit obligation. Compensation/Succession Committee Report The Compensation...

  • Page 47
    ... in connection with our company's relocation of our global headquarters to Chicago, IL; $91,988 related to personal use of company-owned aircraft; and amounts related to company contributions under our 401(k) and Employee Stock Ownership Plan, executive healthcare services and home security system...

  • Page 48
    ... using the closing market price of a share of our common stock on the New York Stock Exchange on the trading day immediately prior to the grant date. (2) The grant date fair value is generally the amount the company would expense in its financial statements over the award's service period under FASB...

  • Page 49
    ...Plan Compensation" column. See "Compensation Discussion and Analysis" for more information about our annual cash incentive plan. All of the awards shown in the "All Other Stock Awards" column in the table above are restricted stock unit awards and vest in full three years after the date of the grant...

  • Page 50
    ... market price of a share of our common stock on the New York Stock Exchange on December 31, 2014, which was $52.00, by the number of shares or units that have not vested. (2) Stock options vest at the rate of 20% of the initial grant per year, with remaining vesting dates on February 13 of 2015...

  • Page 51
    ...calculated using the average of the high and low sale prices reported on the New York Stock Exchange on the vesting date. Pension Benefits The following table summarizes information regarding the participation of each of the named executive officers in our defined benefit retirement plans as of the...

  • Page 52
    ... the ADM Retirement Plan (the "Retirement Plan"), which is a qualified defined benefit plan under Section 401(a) of the Internal Revenue Code. The Retirement Plan covers eligible salaried employees of our company and its participating affiliates. Effective January 1, 2009, the Retirement Plan was...

  • Page 53
    ... the Retirement Plan, subject to the limitations of Section 409A of the Internal Revenue Code. Nonqualified Deferred Compensation The following table summarizes information with respect to the participation of the named executive officers in the ADM Deferred Compensation Plan for Selected Management...

  • Page 54
    ...election to defer under the Deferred Comp Plan II causes a loss of company contributions under the 401(k) and Employee Stock Ownership Plan. No "make-whole" company credits were made on behalf of the named executive officers for Fiscal Year 2014. A participant with an account balance remaining under...

  • Page 55
    ... would result from a termination of employment or change-in-control of our company under our pension and nonqualified deferred compensation plans. Under the terms of our time-vested restricted stock unit award agreements governing awards held by our named executive officers, vesting accelerates upon...

  • Page 56
    ... returned to us or the recipient must pay us the amount of the shares' fair market value as of the date the units vested. The amount of compensation payable to each named executive officer in various termination and change-incontrol scenarios is listed in the tables below. Unless otherwise indicated...

  • Page 57
    ... $52.00, the closing sale price of a share of our common stock on the New York Stock Exchange ("NYSE") on December 31, 2014, and the exercise price of the applicable stock option. The amount shown with respect to restricted stock units was calculated by multiplying the number of shares as to which...

  • Page 58
    ... Internal Revenue Code Section 280G, and other terms and provisions to be developed with the board. J. R. Luciano, R. G. Young, D. C. Findlay and J. D. Taets The following table lists the potential payments and benefits upon termination of employment or change in control of our company for our named...

  • Page 59
    ...calculated by multiplying the number of shares by $52.00, the closing sale price of a share of our common stock on the NYSE on December 31, 2014. This named executive officer also is party to a 2012 performance share unit award agreement under the 2009 Incentive Compensation Plan which provides that...

  • Page 60
    ...company's common stock on the last business day of the quarter. For purposes of this plan, the "fair market value" of a share of our common stock on any date is the average of the high and low reported sales prices for our stock on the New York Stock Exchange on that date. The fair value of services...

  • Page 61
    ... 31, 2014. The ADM International Limited SavingsRelated Share Option Scheme is a program whereby employees in the United Kingdom can save through payroll deductions and have the option to purchase shares at a predetermined, discounted price at a point in time in the future. The number of shares...

  • Page 62
    ...responsibility for the financial statements and the reporting process, including the systems of internal controls. In fulfilling its oversight responsibilities, the Audit Committee reviewed and discussed the audited financial statements in the annual report with management, including a discussion of...

  • Page 63
    ... Relationships and Related Transactions Various policies and procedures of our company, including our Code of Conduct, our bylaws, the charter of the Nominating/Corporate Governance Committee and annual questionnaires completed by all of our directors and executive officers, require disclosure...

  • Page 64
    ... decisions regarding the named executive officers, as well as the Summary Compensation Table and other related compensation tables, notes and narrative disclosures in this proxy statement. This vote is not intended to address any specific element of our executive compensation program, but rather the...

  • Page 65
    ...at the annual meeting of stockholders following the fiscal year ending December 31, 2015. The Board of Directors recommends that you vote FOR the approval of the advisory resolution on the compensation of our company's named executive officers, as disclosed in this proxy statement. Proxies solicited...

  • Page 66
    ... proxy statement for our 2015 Annual Meeting that we have filed with the SEC and is available at the SEC's website, www.sec.gov. Types of Awards and Number of Shares. The types of awards that may be granted under the Incentive Compensation Plan include incentive and nonqualified stock options, stock...

  • Page 67
    ..." under the rules of the New York Stock Exchange. Subject to the provisions of the Incentive Compensation Plan, the Committee will have the power to make awards under the Incentive Compensation Plan and to determine when and to whom awards will be granted, and the form, amount, and other terms...

  • Page 68
    ... (as defined in the Incentive Compensation Plan) of a share of common stock of the company as of the date the option is granted, except in the case of substitute awards. The closing sale price of a share of common stock of the company on the New York Stock Exchange on March 12, 2015 was $46.64 per...

  • Page 69
    ... time the award is granted. The base price per share of a stock appreciation rights award must be at least 100% of the fair market value of a share of common stock of the company on the date the stock appreciation rights award is granted, except in the case of substitute awards. A stock appreciation...

  • Page 70
    ... by applicable laws or regulations or the rules of the principal securities exchange on which the company's common stock is listed (which is currently the New York Stock Exchange). No amendment of the Incentive Compensation Plan shall materially impair the rights of any participant under any award...

  • Page 71
    ... target awards to the individuals who were considered covered employees for Section 162(m) purposes as of December 31, 2014: Name and Current Position Target Payout ($) P.A. Woertz ...Chairman J.R. Luciano ...CEO and President D.C. Findlay ...Senior Vice President, General Counsel & Secretary...

  • Page 72
    ... in the United Kingdom and many international markets. This proposal topic won 50%-plus support at 5 major U.S. companies in 2013 including 73%-support at Netflix. This topic is of additional importance for Archer Daniels Midland because our Lead Director, Mollie Hale Carter, CEO of Sunflower...

  • Page 73
    ...Luciano's appointment as Chief Executive Officer effective as of that date. As discussed further below, the Company has a Lead Director, Mr. Donald Felsinger, who has served in this capacity since May 1, 2014, and as a director of the Company since 2009. The Company's Corporate Governance Guidelines...

  • Page 74
    ... Woertz and Mr. Luciano are independent under the standards of the New York Stock Exchange; the Board's Audit Committee, Compensation/Succession Committee, and Nominating/Corporate Governance Committee are composed solely of independent directors; non-management directors meet privately in executive...

  • Page 75
    ... annual reports and proxy statements in the future, or to send a single copy in the future if we are currently sending multiple copies to the same address. Requests related to householding should be made by writing Investor Relations, Archer-Daniels-Midland Company, 4666 Faries Parkway, Decatur...

  • Page 76
    ... Capital". Adjusted ROIC Earnings is the Company's net earnings attributable to controlling interests adjusted for the after-tax effects of interest expense, changes in the LIFO reserve, and other specified items. Adjusted Invested Capital is the average of quarter-end amounts for the trailing four...

  • Page 77
    ... accounting principles generally accepted in the United States, and should be considered in addition to, not in lieu of, GAAP reported measures. (1) Adjusted Return on Invested Capital (ROIC) is Adjusted ROIC Earnings divided by Adjusted Invested Capital. Adjusted ROIC Earnings is ADM's net earnings...

  • Page 78
    (This page intentionally left blank)

  • Page 79
    Form 10-K ARCHER DANIELS MIDLAND COMPANY 2014

  • Page 80

  • Page 81
    ...December 31, 2014 Commission file number 1-44 ARCHER-DANIELS-MIDLAND COMPANY (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 77 West Wacker Drive, Suite 4600 Chicago, Illinois (Address of principal executive offices) 312...

  • Page 82
    ...in the prices of food, feed, and other commodities, including gasoline; and macroeconomic conditions in various parts of the world. To the extent permitted under applicable law, the Company assumes no obligation to update any forward-looking statements as a result of new information or future events...

  • Page 83
    ..., Executive Officers and Corporate Governance Executive Compensation Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Certain Relationships and Related Transactions, and Director Independence Principal Accounting Fees and Services Part IV 15. Exhibits...

  • Page 84
    ... new global headquarters and customer center at 77 West Wacker Drive, Suite 4600, Chicago, Illinois, 60601. Segment Descriptions Prior to January 1, 2015, the Company's operations were classified into three reportable business segments: Oilseeds Processing, Corn Processing, and Agricultural Services...

  • Page 85
    ... a network of grain elevators, port facilities, and transportation assets used to buy, store, clean, and transport grains and oilseeds. The Oilseeds Processing segment produces natural health and nutrition products and other specialty food and feed ingredients. In North America, cottonseed flour is...

  • Page 86
    ... animal health and nutrition products, and the procurement, processing, and distribution of edible beans. The Company has a 19.8% interest in GrainCorp Limited (GrainCorp), a publicly-listed company on the Australian Stock Exchange. GrainCorp is engaged in grain receival and handling, transportation...

  • Page 87
    ... cereal, energy bar, confectionery and pet food companies throughout the world. Other also includes the operations of the Company's financial business units, related principally to futures commission merchant activities and captive insurance. ADM Investor Services, Inc., a wholly owned subsidiary of...

  • Page 88
    ..., plantings, government programs and policies, competition, changes in global demand, changes in standards of living, and global production of similar and competitive crops. The Company's raw materials are procured from thousands of growers, grain elevators, and wholesale merchants in North America...

  • Page 89
    .... Number of Employees The number of full-time employees of the Company was approximately 33,900 at December 31, 2014 and 31,100 at December 31, 2013. The net increase in the number of full-time employees is primarily related to acquisitions. Financial Information About Foreign and U.S. Operations...

  • Page 90
    ..., the Company makes available, through its website, the Company's Code of Conduct, Corporate Governance Guidelines, and the written charters of the Audit, Compensation/Succession, Nominating/Corporate Governance, and Executive Committees. References to our website address in this report are provided...

  • Page 91
    ...are located in the United States, the Company also has significant operations in both developed areas (such as Western Europe, Canada, Brazil) and emerging market areas (such as Eastern Europe, Asia, portions of South and Central America, the Middle East, and Africa). One of the Company's strategies...

  • Page 92
    .... The Company's strategy involves expanding the volume and diversity of crops it merchandises and processes, expanding the global reach of its core model, and expanding its value-added product portfolio. Government policies, including anti-trust and competition law, trade restrictions, food safety...

  • Page 93
    ... FACTORS (Continued) The Company is subject to numerous laws, regulations, and mandates globally which could adversely affect the Company's operating results and forward strategy. The Company does business globally, connecting crops and markets in 147 countries. The Company is required to comply...

  • Page 94
    ... products, inventory management, shipping products to customers, processing transactions, summarizing and reporting results of operations, human resources benefits and payroll management, complying with regulatory, legal or tax requirements, and other processes necessary to manage the business...

  • Page 95
    ...305 161 466 The Company's operations are such that most products are efficiently processed near the source of raw materials. Consequently, the Company has many plants strategically located in agricultural commodity producing areas. The annual volume of commodities processed will vary depending upon...

  • Page 96
    ...'s) Asia India Singapore Total Daily capacity Metric tons (in 1,000's) Africa/Middle East Ghana Ivory Coast South Africa Total Daily capacity Metric tons (in 1,000's) Grand Total Total daily capacity Metric tons (in 1,000's) 25 3 1 29 55 - 1 6 1 - 8 18 - 1 - 4 1 2 - 2 1 11 34 48 107 Cocoa & Other...

  • Page 97
    ... U.S. plants in the table above are located in Alabama, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Carolina, North Dakota, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, and Wisconsin. Oilseeds Processing Procurement Facilities Owned Leased Cocoa...

  • Page 98
    ... 4 18 76 - 1 5 - - 6 373 - - - 6 373 Other 6 2 - - 1 9 7 1 1 4 10 11 Total North America Illinois Iowa Minnesota Nebraska North Carolina Total Daily/Storage capacity Metric tons (in 1,000's) South America Brazil Total Daily/Storage capacity Metric tons (in 1,000's) Grand Total Total daily/storage...

  • Page 99
    ... capacity Metric tons (in 1,000's) 2 2 2 2 2 *The U.S. plants are located in California, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Montana, Nebraska, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas, Washington...

  • Page 100
    ...22 752 4 - 4 34 26 786 *The U.S. procurement facilities are located in Arkansas, Florida, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Minnesota, Missouri, Montana, Nebraska, North Dakota, Ohio, Oklahoma, Oregon, South Dakota, Tennessee, Texas, Wisconsin, and Wyoming. 20

  • Page 101
    ...) Other Processing Plants Owned North America Leased 8 8 South America 1 1 Europe 1 2 - 2 1 1 - 7 Asia/ Middle East 2 2 5 5 - - - 1 1 - - - 1 3 2 2 U.S.* Total Brazil Total France Germany Netherlands Poland Spain Switzerland Turkey Total India Total *The U.S. plants are located in California...

  • Page 102
    ...personal injuries, employment law, product liability, intellectual property, environmental issues, alleged tax liability (see Note 13 for information on tax matters), and class actions. The Company also routinely receives inquiries from regulators and other government authorities relating to various...

  • Page 103
    PART II Item 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES Common Stock Market Prices and Dividends The Company's common stock is listed and traded on the New York Stock Exchange and the Frankfurt Stock Exchange. The following table...

  • Page 104
    ... of $100 on June 30, 2009 and assumes all dividends have been reinvested through December 31, 2014. COMPARISON OF 66 MONTH CUMULATIVE TOTAL RETURN Among Archer Daniels Midland Company (ADM), the S&P 500 Index, and the S&P Consumer Staples Copyright© 2013 S&P, a division of The McGraw-Hill...

  • Page 105
    ...related to certain fixed assets of $41 million ($26 million after tax, equal to $0.04 per share) and $64 million ($41 million after tax, equal to $0.06 per share) of costs related to the relocation of the global headquarters to Chicago, Illinois, and restructuring charges related to the Wild Flavors...

  • Page 106
    ... Company's Clinton, IA bioplastics facility. Net earnings attributable to controlling interests for the year ended June 30, 2012 include exit costs and asset impairment charges of $437 million ($274 million after tax, equal to $0.41 per share) related primarily to the bioplastics facility and global...

  • Page 107
    ...and transport grains and oilseeds. The Oilseeds Processing segment produces natural health and nutrition products and other specialty food and feed ingredients. The Oilseeds Processing segment is a major supplier of peanuts and peanut-derived ingredients to both the U.S. and export markets. In North...

  • Page 108
    ... 2, 2014; announcing the sale of its global cocoa business to Olam International Limited for $1.3 billion on December 15, 2014; and signing an agreement with Glencore plc to sell a 50 percent stake in its export terminal in Barcarena, in the northern Brazilian state of Pará on February 3, 2015. 28

  • Page 109
    ...in process. The chocolate and cocoa businesses are classified as held for sale as of December 31, 2014. Operating Performance Indicators The Company's oilseeds processing and agricultural services operations are principally agricultural commodity-based businesses where changes in selling prices move...

  • Page 110
    ... exchange for new equity units, a gain of $126 million on the sale of the fertilizer business, long-lived asset impairment charges of $35 million, and Wild Flavors restructuring charges and acquisition costs of $33 million. In 2013, segment operating profit included a $155 million write-down related...

  • Page 111
    ... related to the acquired Wild Flavors and SCI businesses, partially offset by the absence of the prior year charge of $54 million related to an anti-corruption settlement. In addition, salaries and benefits and enterprise resource planning project, information technology, and other project-related...

  • Page 112
    ...the Company's global headquarters to Chicago, Illinois, $48 million of restructuring charges related primarily to the Wild Flavors acquisition and Toepfer integration following the acquisition of the minority interest, other-than-temporary investment writedown of $6 million, and property, plant, and...

  • Page 113
    ... OPERATIONS (Continued) Operating profit by segment and earnings before income taxes for the year ended December 31, 2014 and 2013 are as follows: (In millions) Oilseeds Processing Crushing and Origination Refining, Packaging, Biodiesel, and Other Cocoa and Other Asia Total Oilseeds Processing Corn...

  • Page 114
    ...Starches operating profit decreased $39 million primarily due to lower average selling prices partially offset by lower net corn costs. Also contributing to the decrease were decreased co-products income, an additional $8 million in bad debt reserve and $7 million of startup costs related to the new...

  • Page 115
    ... lower results in the 2012 period in Corn Processing's bioproducts business of $408 million, excluding the Clinton, IA asset impairment charge discussed above, and the 2012 period loss of $146 million in the Agricultural Services segment related to the disposal of Gruma. Corporate expenses were $27...

  • Page 116
    ..., following below-average harvests in the 2011/2012 crop year in North and South America, corn and soybean supplies were tight and commodity market prices were generally higher. In South America, farmers responded to high crop prices with record soybean plantings for the 2012/2013 crop year. The...

  • Page 117
    ... Corn Processing Sweeteners and Starches Bioproducts Total Corn Processing Agricultural Services Merchandising and Handling Transportation Milling and Other Total Agricultural Services Other Financial Total Other Total Segment Operating Profit Corporate Earnings Before Income Taxes 2012 2011...

  • Page 118
    ... and Starches operating profit increased $86 million to $191 million, as tight sweetener industry capacity supported higher average selling prices. The prior period Sweeteners and Starches results were negatively impacted by higher net corn costs related to the mark-to-market timing effects...

  • Page 119
    ..., partially offset by increasing agricultural commodity prices, compared to charges of $368 million in the prior year. Fiscal 2012 unallocated corporate expenses included $71 million of charges related to the Company's global workforce reduction program. Income taxes decreased $0.5 billion due to...

  • Page 120
    ... due to the acquisition of Golden Peanut in December 2010. Corn Processing sales increased 22% to $12.1 billion due principally to higher average selling prices of ethanol and sweeteners as well as higher sales volumes of sugar and ethanol. Agricultural Services sales increased 3% to $42.1 billion...

  • Page 121
    ... for the Golden Peanut Gain and $30 million for gains on interest rate swaps. Operating profit by segment is as follows: (In millions) Oilseeds Processing Crushing and Origination Refining, Packaging, Biodiesel, and Other Cocoa and Other Asia Total Oilseeds Processing Corn Processing Sweeteners and...

  • Page 122
    ... improved North American protein specialties and natural health and nutrition results due to higher margins and volumes. Cocoa and Other results declined $57 million to $183 million. Fiscal 2012 results in Cocoa and Other were reduced by $100 million for net unrealized mark-to-market losses related...

  • Page 123
    ...agricultural commodity-based business. The Company's strategy involves expanding the volume and diversity of crops that it merchandises and processes, expanding the global reach of its core model, and expanding its value-added product portfolio. The Company depends on access to credit markets, which...

  • Page 124
    ... purchase obligations related to the Company's normal business activities. The following table does not include unrecognized income tax benefits of $72 million as of December 31, 2014 as the Company is unable to reasonably estimate the timing of settlement. Where applicable, information included...

  • Page 125
    ...). The Program terminates on June 26, 2015, unless extended. In March 2014, the Company entered into a second accounts receivable securitization program (the "Second Program") with certain commercial paper conduit purchasers and committed purchasers (collectively, the "Second Purchasers"). Under...

  • Page 126
    ... the purchase price of the Company's anticipated natural gas requirements for certain production facilities, and to fix the sales price of anticipated volumes of ethanol. These designated hedging programs principally relate to the Company's Corn Processing operating segment. Assuming normal market...

  • Page 127
    ... from tax authorities in Brazil and Argentina challenging income tax positions taken by subsidiaries of the Company. The Company evaluated its tax positions for these matters and concluded, based in part upon advice from legal counsel, that it was appropriate to recognize the tax benefits of...

  • Page 128
    ... equipment, technology, and companies related to new, value-added products produced from agricultural commodities and products. These new products are not always successful from either a commercial production or marketing perspective. Management evaluates the Company's property, plant, and equipment...

  • Page 129
    ..., crop disease, plantings, government programs and policies, competition, changes in global demand, changes in customer preferences and standards of living, and global production of similar and competitive crops. The Company manages its exposure to adverse price movements of agricultural commodities...

  • Page 130
    ... change in quoted foreign currency exchange rates is $802 million and $779 million for December 31, 2014 and 2013, respectively. Actual results may differ. Interest The fair value of the Company's long-term debt is estimated using quoted market prices, where available, and discounted future cash...

  • Page 131
    ... SUPPLEMENTARY DATA Financial Statements Consolidated Statements of Earnings Consolidated Statements of Comprehensive Income (Loss) Consolidated Balance Sheets Consolidated Statements of Cash Flows Consolidated Statements of Shareholders' Equity Notes to Consolidated Financial Statements Reports of...

  • Page 132
    Archer-Daniels-Midland Company Consolidated Statements of Earnings Year Ended (In millions, except per share amounts) December 31 2014 Revenues Cost of products sold Gross Profit Selling, general and administrative expenses Asset impairment, exit, and restructuring costs Interest expense Equity in ...

  • Page 133
    Archer-Daniels-Midland Company Consolidated Statements of Comprehensive Income (Loss) Year Ended (In millions) December 31 2014 Net earnings including noncontrolling interests Other comprehensive income (loss): Foreign currency translation adjustment Tax effect Net of tax amount Pension and other ...

  • Page 134
    Archer-Daniels-Midland Company Consolidated Balance Sheets (In millions) Assets Current Assets Cash and cash equivalents Short-term marketable securities Segregated cash and investments Trade receivables Inventories Current assets held for sale Other current assets Total Current Assets Investments ...

  • Page 135
    Archer-Daniels-Midland Company Consolidated Statements of Cash Flows Year Ended December 31 2014 2013 Six Months Ended December 31 2012 2011 (Unaudited) $ 694 $ 544 Year Ended June 30 2012 (In millions) Operating Activities Net earnings including noncontrolling interests Adjustments to reconcile ...

  • Page 136
    Archer-Daniels-Midland Company Consolidated Statements of Shareholders' Equity Accumulated Other Comprehensive Income (Loss) (In millions) 176 Total Shareholders' Equity 18,838 Common Stock Shares Amount Balance June 30, 2011 Comprehensive income Net earnings Other comprehensive loss Total ...

  • Page 137
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements Note 1. Summary of Significant Accounting Policies Nature of Business The Company is principally engaged in procuring, transporting, storing, processing, and merchandising agricultural commodities and products. Change in ...

  • Page 138
    ... December 31, 2014 and 2013 was $15 million and $73 million, respectively. Inventories Inventories of certain merchandisable agricultural commodities, which include inventories acquired under deferred pricing contracts, are stated at market value. In addition, the Company values certain inventories...

  • Page 139
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 1. Summary of Significant Accounting Policies (Continued) Fair Value Measurements The Company determines fair value based on the price that would be received to sell an asset or paid to transfer a liability ...

  • Page 140
    ... in the results of operations in the period that includes the enactment date under the law. Applicable accounting standards prescribe a minimum threshold a tax position is required to meet before being recognized in the consolidated financial statements. The Company recognizes in its consolidated...

  • Page 141
    ...ratably over the vesting period of the related stock compensation award. Research and Development Costs associated with research and development are expensed as incurred. Such costs incurred, net of expenditures subsequently reimbursed by government grants, were $79 million, $59 million, $28 million...

  • Page 142
    ... where a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction or if the Company does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit should be...

  • Page 143
    ... of the WILD Flavors businesses (Wild Flavors) and Specialty Commodities Inc. (SCI), respectively. Both acquisitions are in line with the Company's strategy to increase returns and reduce earnings volatility through the growth of its specialty ingredient offerings. The 2014 post acquisition...

  • Page 144
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 2. Acquisitions (Continued) During the year ended December 31, 2014, the Company acquired six businesses, including Wild Flavors and SCI, for a total cost of $3.0 billion. The purchase price net of cash ...

  • Page 145
    ..., 2013, the Company acquired four businesses for a total cost of $44 million and recorded a preliminary allocation of the purchase price related to these acquisitions. The net cash purchase price for the acquisitions of $44 million was preliminarily allocated to working capital, property, plant, and...

  • Page 146
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 3. Fair Value Measurements The following tables set forth, by level, the Company's assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2014 and 2013. Fair ...

  • Page 147
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 3. Fair Value Measurements (Continued) Fair Value Measurements at December 31, 2013 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs (...

  • Page 148
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 3. Fair Value Measurements (Continued) Derivative contracts include exchange-traded commodity futures and option contracts, forward commodity purchase and sale contracts, and OTC instruments related primarily...

  • Page 149
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 3. Fair Value Measurements (Continued) The following tables present a rollforward of the activity of all assets and liabilities measured at fair value on a recurring ...

  • Page 150
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 3. Fair Value Measurements (Continued) Level 3 Fair Value Assets Measurements at December 31, 2013 Commodity Inventories Derivative Carried at Contracts Market Gains Total Balance, December 31, 2012 Total ...

  • Page 151
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 3. Fair Value Measurements (Continued) In some cases, the price components of inventories and commodity purchase and sale contracts are observable based upon available quotations for these pricing components,...

  • Page 152
    ... 31, 2014 and 2013, the six months ended December 31, 2012 and 2011, and the year ended June 30, 2012. Year Ended (In millions) December 31 2014 Interest Contracts Other income (expense) - net Foreign Currency Contracts Revenues Cost of products sold Other income (expense) - net Commodity Contracts...

  • Page 153
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 4. Derivative Instruments & Hedging Activities (Continued) Inventories of certain merchandisable agricultural commodities, which include amounts acquired under deferred pricing contracts, are stated at market...

  • Page 154
    ... 2012 and 2011, and the year ended June 30, 2012. Year Ended December 31 2014 2013 Six Months Ended December 31 2012 2011 (Unaudited) Effective amounts recognized in earnings FX Contracts Other income/expense -net Interest Contracts Interest expense Commodity Contracts Cost of products sold Revenues...

  • Page 155
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 5. Marketable Securities The following table sets forth items in short-term and long-term investments. Cost December 31, 2014 United States government obligations Maturity less than 1 year Maturity 1 to 5 ...

  • Page 156
    ... 1,532 402 2,714 6,056 $ The Company provides financing to suppliers, primarily Brazilian farmers, to finance a portion of the suppliers' production costs. The amounts are reported net of allowances of $11 million and $15 million at December 31, 2014 and 2013, respectively. Changes in the allowance...

  • Page 157
    ...December 31, 2014, is $2.1 billion. The Company has a direct investment in a foreign equity method investee with a carrying value of $2.4 billion as of December 31, 2014, and a market value of $2.7 billion based on active market quoted prices converted to U.S. dollars at applicable exchange rates at...

  • Page 158
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 9. Goodwill and Other Intangible Assets Goodwill balances attributable to consolidated businesses, by segment, are set forth in the following table. December 31, 2014 Oilseeds Processing Corn Processing ...

  • Page 159
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 10. Debt Financing Arrangements December 31, December 31, 2014 2013 (In millions) 773 746 701 600 589 417 378 375 294 186 184 182 170 153 122 - 458 5,582 (24) 5,558 $ 699 600 588 416 ...

  • Page 160
    ... Programs). Note 11. Stock Compensation The Company's employee stock compensation plans provide for the granting of options to employees to purchase common stock of the Company pursuant to the Company's 2002 and 2009 Incentive Compensation Plans. These options are issued at market value on the date...

  • Page 161
    ...the 2009 plan. The fair value of Restricted Stock Awards and PSUs is determined based on the market value of the Company's shares on the grant date. The weighted-average grant-date fair values of awards granted during the years ended December 31, 2014 and 2013, the six months ended December 31, 2012...

  • Page 162
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 11. Stock Compensation (Continued) A summary of Restricted Stock Awards and PSUs activity during 2014 is presented below: Restricted Stock Awards and PSUs Non-vested at December 31, 2013 Granted Vested ...

  • Page 163
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 12. Other (Income) Expense - Net (Continued) Individually significant items included in the table above are: The loss on derivatives for the year ended December 31, 2014 was due to losses on Euro foreign ...

  • Page 164
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 13. Income Taxes The following table sets forth the geographic split of earnings before income taxes: Year Ended (In millions) December 31 2014 United States Foreign $ $ Significant components of income tax...

  • Page 165
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 13. Income Taxes (Continued) Significant components of deferred tax liabilities and assets are as follows: December 31, 2014 Deferred tax liabilities Property, plant, and equipment Equity in earnings of ...

  • Page 166
    ... and state income tax returns. In the fourth quarter of 2013, the Internal Revenue Service released a Chief Counsel Advice stipulating that biodiesel credits should not be included in taxable income. Based upon the Chief Counsel Advice, the Company changed its position related to these credits...

  • Page 167
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 13. Income Taxes (Continued) The Company has $76 million and $26 million of tax assets related to excess foreign tax credits at December 31, 2014 and 2013, respectively, which begin to expire in 2015. The ...

  • Page 168
    ... examinations. The Company's wholly-owned subsidiary, ADM do Brasil Ltda. (ADM do Brasil), has received three separate tax assessments from the Brazilian Federal Revenue Service (BFRS) challenging the tax deductibility of commodity hedging losses and related expenses for the tax years 2004, 2006...

  • Page 169
    ... all U.S. employees and employees at certain foreign subsidiaries with retirement benefits including defined benefit pension plans and defined contribution plans. The Company provides eligible U.S. employees who retire under qualifying conditions with access to postretirement health care, at full...

  • Page 170
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 15. Employee Benefit Plans (Continued) Pension Benefits (In millions) Retirement plan expense Defined benefit plans: Service cost (benefits earned during the period) Interest cost Expected return on plan ...

  • Page 171
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 15. Employee Benefit Plans (Continued) Pension Benefits (In millions) Retirement plan expense Defined benefit plans: Service cost (benefits earned during the period) Interest cost Expected return on plan ...

  • Page 172
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 15. Employee Benefit Plans (Continued) Prior to December 31, 2012, the Company used a June 30 measurement date for all defined benefit plans. As a result of the change in fiscal year end (see Note 1), the ...

  • Page 173
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 15. Employee Benefit Plans (Continued) Included in accumulated other comprehensive income for postretirement benefits at December 31, 2014, are the following amounts that have not yet been recognized in net ...

  • Page 174
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 15. Plan Assets The Company's employee benefit plan assets are principally comprised of the following types of investments: Common stock: Equity securities are valued based on quoted exchange prices and are ...

  • Page 175
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 15. Employee Benefit Plans (Continued) The following tables set forth, by level within the fair value hierarchy, the fair value of plan assets as of December 31, 2014 and 2013. Fair Value Measurements at ...

  • Page 176
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 15. Employee Benefit Plans (Continued) Fair Value Measurements at December 31, 2013 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs (...

  • Page 177
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 15. Employee Benefit Plans (Continued) The following table sets forth the actual asset allocation for the Company's global pension plan assets as of the measurement date: December 31 2014(1)(2) 51% 48% 1% 100...

  • Page 178
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 15. Employee Benefit Plans (Continued) The following benefit payments, which reflect expected future service, are expected to be paid by the benefit plans: Pension Benefits 2015 2016 2017 2018 2019 2020 - ...

  • Page 179
    ... quarter of 2014, the Company completed the acquisition of Wild Flavors and SCI, making the Company one of the world's leading flavors and specialty ingredients companies. Effective January 1, 2015, the Company has formed a fourth reportable business segment, Wild Flavors and Specialty Ingredients...

  • Page 180
    ...and transport grains and oilseeds. The Oilseeds Processing segment produces natural health and nutrition products and other specialty food and feed ingredients. The Oilseeds Processing segment is a major supplier of peanuts and peanut-derived ingredients to both the U.S. and export markets. In North...

  • Page 181
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 17. Segment and Geographic Information (Continued) Intersegment sales have been recorded at amounts approximating market. Operating profit for each segment is based on net sales less identifiable operating ...

  • Page 182
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 17. Segment and Geographic Information (Continued) Segment Information (In millions) Year Ended December 31 2014 2013 Six Months Ended December 31 2012 2011 (Unaudited) Year Ended June 30 2012 Gross revenues...

  • Page 183
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 17. Segment and Geographic Information (Continued) Year Ended December 31 2014 2013 Six Months Ended December 31 2012 2011 (Unaudited) $ 113 165 99 2 17 396 $ 108 178 90 2 13 391 Year Ended June 30 2012 (In ...

  • Page 184
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 17. Segment and Geographic Information (Continued) December 31 2014 2013 (In millions) Investments in and advances to affiliates Oilseeds Processing Corn Processing Agricultural Services Other Corporate Total ...

  • Page 185
    ... December 15, 2014, the Company also announced that it has reached an agreement to sell its global cocoa business to Olam International Limited for $1.3 billion, subject to customary conditions. Both transactions are expected to close in 2015. Assets and liabilities subject to the purchase and sale...

  • Page 186
    ... benefits provided to employees who have been involuntarily terminated and $34 million for pension and postretirement remeasurement charges triggered by an amendment of the Company's U.S. plans due to the voluntary early retirement program. (2) As part of the Company's ongoing portfolio management...

  • Page 187
    ... the Clinton, IA, bioplastics and Walhalla, ND, ethanol facilities in the Corn Processing segment and other facility exit-related costs of $4 million in Corporate. Note 20. Sale of Accounts Receivable Since March 2012, the Company has had an accounts receivable securitization program (the "Program...

  • Page 188
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 20. Sale of Accounts Receivable (Continued) As of December 31, 2014 and 2013, the fair value of trade receivables transferred to the Purchasers under the Programs and derecognized from the Company's ...

  • Page 189
    ... 1,342 2.03 2.02 Net earnings attributable to controlling interests for the second quarter of the fiscal year ended December 31, 2014 include relocation and restructuring costs associated with the relocation of the Company's global headquarters to Chicago, Illinois, costs related to integration of...

  • Page 190
    Archer-Daniels-Midland Company Notes to Consolidated Financial Statements (Continued) Note 22. Quarterly Financial Data (Unaudited) (Continued) Net earnings attributable to controlling interests for the first quarter of the fiscal year ended December 31, 2013 include an aftertax FCPA charge of $17 ...

  • Page 191
    ... The Board of Directors and Shareholders Archer-Daniels-Midland Company Decatur, Illinois We have audited the accompanying consolidated balance sheets of Archer-Daniels-Midland Company (the Company) as of December 31, 2014 and 2013, and the related consolidated statements of earnings, comprehensive...

  • Page 192
    ... 2.8% of revenues and net income, respectively, for the year then ended. Our audit of internal control over financial reporting of Archer-Daniels-Midland Company also did not include an evaluation of the internal control over financial reporting of WILD Flavors Gmbh and Specialty Commodities Inc. In...

  • Page 193
    ... Company's internal control over financial reporting as of December 31, 2014. That report is included herein. /s/ Juan R. Luciano Juan R. Luciano Chief Executive Officer and President /s/ Ray G. Young Ray G. Young Senior Vice President and Chief Financial Officer Item 9B. None. OTHER INFORMATION...

  • Page 194
    ... 2008, with responsibility for the Company's Corn Processing production operations. Vice President of the Company since December 2010. President of ADM Milling since August 2013. President, Milling and Alliance Nutrition from March 2012 to August 2013. President, Milling and Cocoa from December 2010...

  • Page 195
    ... President of the new WILD Flavors and Specialty Ingredients business unit. President, North American Oilseeds Processing from 2008 to December 2014. Vice President and Treasurer of the Company since January 2012. Assistant Treasurer of the Company from November 2009 to December 2011. Vice President...

  • Page 196
    ..."Executive Officer Stock Ownership," and "Equity Compensation Plan Information" of the definitive proxy statement for the Company's annual meeting of stockholders to be held on May 7, 2015, and is incorporated herein by reference. Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR...

  • Page 197
    ...not required, not applicable, or the information is otherwise included. (a)(3) (2) List of exhibits Sale and Purchase agreement dated July 5, 2014, by and among Archer-Daniels-Midland Europe B.V., Archer Daniels Midland Europoort B.V., ADM Worldwide Holdings L.P., Dr. Hans-Peter Wild and KKR Columba...

  • Page 198
    ...Deferred Compensation Plan for Selected Management Employees II, as amended and restated (incorporated by reference to Exhibit 10(ii) to the Company's Annual Report on Form 10-K for the year ended December 31, 2013 (File No. 1-44)). The Archer-Daniels-Midland Company Supplemental Retirement Plan, as...

  • Page 199
    ...on May 1, 2006. The Archer-Daniels-Midland Company 2009 Incentive Compensation Plan (incorporated by reference to Exhibit A to the Company's Definitive Proxy Statement (File No. 1-44) filed on September 25, 2009). Form of Stock Option Agreement for non-NEO employees (U.S.) (incorporated by reference...

  • Page 200
    Item 15. (31.1) EXHIBITS AND FINANCIAL STATEMENT SCHEDULES (Continued) Certification of Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended. Certification of Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the ...

  • Page 201
    ... 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date: February 20, 2015 ARCHER-DANIELS-MIDLAND COMPANY By: /s/ D. C. Findlay D. C. Findlay Senior Vice President, General Counsel and Secretary Pursuant to the requirements of...

  • Page 202
    (This page intentionally left blank)

  • Page 203

  • Page 204
    ...Archer Daniels Midland Company common stock is listed and traded on the New York Stock Exchange and the Frankfurt Stock Exchange. Ticker Symbol: ADM. TRANSFER AGENT AND REGISTRAR NOTICE OF ANNUAL MEETING The Annual Meeting of Stockholders of the Company will be held at the James R. Randall Research...