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Archer Daniels Midland CompanyNotes to Consolidated Financial Statements (Continued)Note 3.Marketable Securities and Cash Equivalents (Continued)Unrealized UnrealizedCost Gains Losses Fair Value2006 (In millions)United States government obligationsMaturity less than 1 year $ 359 $ – $ – $ 359Maturity 1 to 5 years 50 – (1) 49Government–sponsored enterpriseobligationsMaturity less than 1 year 249 1 – 250Maturity 1 to 5 years 132 – (2) 130Maturity 5 to 10 years 55 – (2) 53Maturity greater than 10 years 180 – (9) 171Corporate debt securitiesMaturity less than 1 year 5 – – 5Maturity 1 to 5 years 49 – (1) 48Maturity 5 to 10 years 3 – – 3Maturity greater than 10 years 5 – – 5Other debt securitiesMaturity less than 1 year 355 – – 355Maturity 1 to 5 years 1 – – 1Maturity 5 to 10 years 1 – – 1Maturity greater than 10 years 9 – – 9Equity securitiesAvailable-for-sale 318 321 (19) 620Trading 20 – – 20$ 1,791 $ 322 $ (34) $ 2,079Of the $27 million in unrealized losses at June 30, 2007, $2 million of unrealized losses arose within the last 12months, $1 million of unrealized losses arose within the last 24 months, $21 million of unrealized losses arosewithin the last 36 months, and the remaining $3 million of unrealized losses arose within the last 48 months. Themarket value of United States government obligations, government-sponsored enterprise obligations, corporatedebt securities, and other debt securities with unrealized losses as of June 30, 2007, is $434 million. The $10million of unrealized losses associated with United States government obligations, government-sponsoredenterprise obligations, corporate debt securities, and other debt securities are not considered to be other-thantemporarybecause their unrealized losses are related to changes in interest rates and do not affect the expected cashflows to be received upon maturity of these investments or the credit quality of the issuer. The market value of twoavailable-for-sale equity securities with unrealized losses as of June 30, 2007, is $45 million. The $17 million ofunrealized losses associated with these available-for-sale equity securities arose within the last 36 months and areprincipally related to long-term strategic investments. The Company has the intent and ability to hold its debt andequity securities for a period of time sufficient to recover all unrealized losses. The Company has not recognizedany other-than-temporary impairments for its debt and equity securities.48
Archer Daniels Midland CompanyNotes to Consolidated Financial Statements (Continued)Note 4.Inventories and DerivativesTo reduce price risk caused by market fluctuations, the Company generally follows a policy of using exchangetradedfutures and options contracts to minimize its net position of merchandisable agricultural commodityinventories and forward cash purchase and sales contracts. The Company will also use exchange-traded futuresand options contracts as components of merchandising strategies designed to enhance margins. The results ofthese strategies can be significantly impacted by factors such as the volatility of the relationship between thevalue of exchange-traded commodities futures contracts and the cash prices of the underlying commodities,counterparty contracts defaults, and volatility of freight markets. Inventories of certain merchandisableagricultural commodities, which include amounts acquired under deferred pricing contracts, are stated at marketvalue. Exchange-traded futures and options contracts, forward cash purchase contracts, and forward cash salescontracts of merchandisable agricultural commodities, none of which are designated as fair value hedges, arevalued at market price. Changes in the market value of inventories of merchandisable agricultural commodities,forward cash purchase and sales contracts, and exchange-traded futures contracts are recognized in earningsimmediately, resulting in cost of goods sold approximating first-in, first-out (FIFO) cost. Unrealized gains onforward cash purchase contracts, forward cash sales contracts, and exchange-traded futures contracts representthe fair value of such instruments and are classified on the Company’s balance sheet as receivables. Unrealizedlosses on forward cash purchase contracts, forward cash sales contracts, and exchange-traded futures contractsrepresent the fair value of such instruments and are classified on the Company’s balance sheet as accountspayable.The Company also values certain inventories using the lower of cost, determined by either the LIFO or FIFOmethod, or market.2007 2006(In millions)LIFO inventoriesFIFO value $ 786 $ 438LIFO valuation reserve (215) (9)LIFO inventories carrying value 571 429FIFO inventories 1,688 1,427Market inventories 3,801 2,821$ 6,060 $ 4,67749
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ARCHER DANIELS MIDLAND COMPANY JAHR
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Financial Highlights2007 2006(in mi
Page 5 and 6: W a c h s t u m s c h a n c e n - W
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Page 9 and 10: UNITED STATESSECURITIES AND EXCHANG
Page 11 and 12: Table of ContentsItem No. Descripti
Page 13 and 14: Item 1.BUSINESS (Continued)Corn Pro
Page 15 and 16: Item 1.BUSINESS (Continued)Status o
Page 17 and 18: Item 1.BUSINESS (Continued)The Comp
Page 19 and 20: Item 1A. RISK FACTORS (Continued)Th
Page 21 and 22: Item 2.PROPERTIESThe Company owns o
Page 23 and 24: Item 2.PROPERTIES (Continued)The Co
Page 25 and 26: Item 5.MARKET FOR REGISTRANT’S CO
Page 27 and 28: Item 6.SELECTED FINANCIAL DATASelec
Page 29 and 30: Item 7.MANAGEMENT’S DISCUSSION AN
Page 37 and 38: Item 7.MANAGEMENT'S DISCUSSION AND
Page 45 and 46: Item 7A.QUANTITATIVE AND QUALITATIV
Page 47 and 48: Archer Daniels Midland CompanyConso
Page 49 and 50: Archer Daniels Midland CompanyConso
Page 51 and 52: Archer Daniels Midland CompanyNotes
Page 55: Archer Daniels Midland CompanyNotes
Page 81 and 82: Report of Independent Registered Pu
Page 83 and 84: Item 9.CHANGES IN AND DISAGREEMENTS
Page 85 and 86: Item 10.DIRECTORS, EXECUTIVE OFFICE
Page 87 and 88: Item 10.DIRECTORS, EXECUTIVE OFFICE
Page 89 and 90: Item 15.(a)(3)EXHIBITS AND FINANCIA
Page 91 and 92: Item 15.EXHIBITS AND FINANCIAL STAT
Page 93: INFORMATIONEN FÜR AKTIONÄREBörse
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German - ADM

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