German - ADM

Item 7.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION ANDRESULTS OF OPERATIONS (Continued)Payments Due by PeriodContractual Note Less than 2 – 3 4 – 5 OverObligations Reference Total 1 Year Years Years 5 Years(In millions)PurchasesInventories $ 11,113 $ 10,312 $ 535 $ 159 $ 107Energy 429 269 152 7 1Other 217 67 94 43 13Total purchases 11,759 10,648 781 209 121Short-term debt Note 7 468 468 - - -Long-term debt Note 7 4,897 65 92 425 4,315Estimated interest payments 5,752 290 509 474 4,479Operating leases Note 12 900 318 241 132 209Estimated pension and otherpostretirement plancontributions Note 13 1,045 79 173 195 598Total $24,821 $ 11,868 $ 1,796 $1,435 $9,722At June 30, 2007, the Company estimates it will spend approximately $3.0 billion over the next four years tocomplete approved capital projects and acquisitions. The Company is a limited partner in various private equityfunds which invest primarily in emerging markets. At June 30, 2007, the Company’s carrying value of theselimited partnership investments was $165 million. The Company has future capital commitments related to thesepartnerships of $138 million and expects the majority of these additional capital commitments, if called for, to befunded by cash flows generated by the partnerships. The Company also has outstanding letters of credit and suretybonds of $339 million at June 30, 2007.In addition, the Company has entered into agreements, primarily debt guarantee agreements related to equitymethodinvestees, which could obligate the Company to make future payments. The Company’s liability underthese agreements arises only if the primary entity fails to perform its contractual obligation. The Company hascollateral for a portion of these contingent obligations. At June 30, 2007, these contingent obligations totaledapproximately $98 million. Amounts outstanding for the primary entity under these contingent obligations were$51 million at June 30, 2007.Critical Accounting PoliciesThe process of preparing financial statements requires management to make estimates and judgments that affect thecarrying values of the Company’s assets and liabilities as well as the recognition of revenues and expenses. Theseestimates and judgments are based on the Company’s historical experience and management’s knowledge andunderstanding of current facts and circumstances. Certain of the Company’s accounting policies are consideredcritical, as these policies are important to the depiction of the Company’s financial statements and requiresignificant or complex judgment by management. Management has discussed with the Company’s AuditCommittee the development, selection, disclosure, and application of these critical accounting policies. Followingare the accounting policies management considers critical to the Company’s financial statements.32