German - ADM

Archer Daniels Midland CompanyNotes to Consolidated Financial Statements (Continued)Note 1.Summary of Significant Accounting Policies (Continued)defined benefit postretirement plans in the accompanying consolidated balance sheet. The impact on theCompany’s consolidated balance sheet resulting from recording the funded status of its defined benefitpostretirement plans is disclosed in Note 13. The Company will be required to adopt the measurement dateprovisions of SFAS Number 158 on June 30, 2009, and does not believe such adoption will have a significantimpact on the Company’s financial statements.During February 2007, the FASB issued SFAS Number 159, The Fair Value Option for Financial Assets andFinancial Liabilities. SFAS Number 159 allows entities to voluntarily choose, at specified election dates, tomeasure many financial assets and financial liabilities at fair value. The election is made on an instrument-byinstrumentbasis and is irrevocable. If the fair value option is elected for an instrument, SFAS Number 159 specifiesthat all subsequent changes in fair value for that instrument shall be reported in earnings. The Company will berequired to adopt SFAS No. 159 on July 1, 2008, and has not yet assessed the impact of the adoption of thisstandard on the Company’s financial statements.Note 2.AcquisitionsThe 2007, 2006, and 2005 acquisitions were accounted for as purchases in accordance with SFAS Number 141,Business Combinations. Accordingly, the tangible assets and liabilities have been adjusted to fair values with theremainder of the purchase price, if any, recorded as goodwill. The identifiable intangible assets acquired as part ofthese acquisitions are not material.2007 AcquisitionsDuring 2007, the Company acquired seven businesses for a total cost of $103 million. In one of these acquisitions,the Company acquired the remaining outstanding shares of an unconsolidated affiliate. Prior to obtaining theremaining outstanding shares, the Company held a 50% interest in the unconsolidated affiliate and accounted forthis investment on the equity method of accounting. The carrying value of the Company’s investment in theunconsolidated affiliate immediately prior to the acquisition was $100 million.The Company has recorded a preliminary allocation of the purchase price related to the 2007 acquisitions. Thepurchase price allocation resulted in goodwill of $6 million which was assigned to the Oilseeds Processingsegment. The cash purchase price of $103 million plus the $100 million carrying value of the previouslyunconsolidated affiliate was allocated to current assets, property, plant, and equipment, current liabilities, and debtfor $82 million, $206 million, $33 million, and $52 million, respectively.2006 AcquisitionsDuring 2006, the Company acquired twelve businesses for a total cost of $182 million. The Company recorded nogoodwill related to these acquisitions. The portion of the purchase price allocated to current assets, property, plant,and equipment, other long-term assets, and current liabilities, was $64 million, $79 million, $59 million, and $25million, respectively.2005 AcquisitionsDuring 2005, the Company acquired five businesses for a total cost of $24 million. The Company recorded nogoodwill related to these acquisitions.46