-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JZ0C9qHWw7YFyJkIcCmUUEYFjeaNGh0F7JsQpjZF2lWmvflaB8z5DW7EE78miSZv TzA6Xw8BMReLaYSG+SrNrw== 0000007084-96-000006.txt : 19960627 0000007084-96-000006.hdr.sgml : 19960627 ACCESSION NUMBER: 0000007084-96-000006 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960626 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ARCHER DANIELS MIDLAND CO CENTRAL INDEX KEY: 0000007084 STANDARD INDUSTRIAL CLASSIFICATION: FATS & OILS [2070] IRS NUMBER: 410129150 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-00044 FILM NUMBER: 96586261 BUSINESS ADDRESS: STREET 1: 4666 FARIES PKWY CITY: DECATUR STATE: IL ZIP: 62526 BUSINESS PHONE: 2174245200 11-K 1 ADM SAV. & INV. PLAN FOR SALARIED EMPLOYEES Page 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 11-K [X]Annual Report Pursuant to Section 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 1995 or [ ]Transition Report Pursuant to Section 15(d) of the Securities Exchange Act of 1934 For the transition period from _________________ to _______________ Commission file number 1-44 A.Full title of the plan and address of the plan, if different from that of the issuer named below: ADM SAVINGS AND INVESTMENT PLAN B.Name of the issuer of the securities held pursuant to the Plan and the address of its principal executive office: ARCHER DANIELS MIDLAND COMPANY BOX 1470 DECATUR, IL 62525 Page 2 Audited Financial Statements ADM Savings and Investment Plan December 31, 1995 Report of Independent Auditors..................................... 3 Statements of Net Assets Available for Plan Benefits............... 4 Statements of Changes in Net Assets Available for Plan Benefits.... 5 Notes to Financial Statements...................................... 6 Item 27a--Schedule of Reportable Assets Held for Investment Purposes 9 Item 27d--Schedule of Reportable Transactions...................... 10 Page 3 Report Of Independent Auditors Administrative Committee ADM Savings and Investment Plan Decatur, Illinois We have audited the accompanying statements of net assets available for plan benefits of ADM Savings and Investment Plan ("the Plan") as of December 31, 1995 and 1994, and the related statements of changes in net assets available for plan 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 generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as 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 plan benefits of the Plan at December 31, 1995 and 1994, and the changes in its net assets available for plan benefits for the years then ended, in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplemental schedules of assets held for investment purposes as of December 31, 1995 and reportable transactions for the year ended December 31, 1995 are presented for purposes of complying with the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 and are not a required part of the financial statements. The supplemental schedules have been subjected to the auditing procedures applied in our audit of the financial statements and, in our opinion, are fairly stated in all material respects in relation to the financial statements taken as a whole. /s/ ERNST & YOUNG, LLP ERNST & YOUNG, LLP Minneapolis, Minnesota June 20, 1996 Page 4 ADM Savings and Investment Plan Statements Of Net Assets Available For Plan Benefits [CAPTION] December 31 1995 1994 ___________________________ Assets Cash and cash equivalents $ 2,171$ 109,817 Investments (Note 1) Archer Daniels Midland Company common stock 205,004,592 220,040,463 Pfizer Incorporated common stock 2,950,794 2,323,449 Commingled fixed income funds 2,107,518 666,123 Equity mutual funds 2,938,280 1,035,588 Commingled capital contract fund 2,162,048 104,789 ___________ ___________ 215,163,232 224,170,412 Contributions receivable from employer 475,444 455,246 Contributions receivable from employees 689,500 660,968 ___________ ___________ Net assets available for plan benefits$216,330,347$225,396,443 =========== ===========
See accompanying notes. 6 Page 5 ADM Savings and Investment Plan Statements of Changes in Net Assets Available for Plan Benefits [CAPTION] Year ended December 31 1995 1994 ____________________________ Additions: Contributions from Archer Daniels Midland Company $6,109,855 $ 5,463,893 (Note 2) Contributions from participating employees 8,880,046 7,929,694 (Note 2) Transfer of Assets From 5,743,916 - Qualified Merged Plan 9,234 96,191 Transfer of Assets - Other Investment income Dividends 1,626,343 870,544 Interest 222,778 9,068 __________ __________ 22,592,172 14,369,390 Deductions: Benefit payments Common stock 3,586,810 4,533,959 Cash 2,497,961 2,573,369 Other deductions (fees) 8,759 1,335 _________ _________ 6,093,530 7,108,663 _________ _________ 16,498,642 7,260,727 Net realized and unrealized (depreciation)appreciation in fair value of investments (25,564,738) 64,746,322 __________ ___________ Net increase (decrease) (9,066,096) 72,007,049 Net assets available for plan benefits at beginning of year 225,396,443 153,389,394 ___________ ____________ Net assets available for plan benefits at end of year $216,330,347 $225,396,443 =========== =========== See accompanying notes.
5 Page 6 ADM Savings And Investment Plan Notes To Financial Statements December 31, 1995 1. Significant Accounting Policies Basis of Accounting The accounting records of the Plan are maintained on the accrual basis. Investments Investments 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 commingled and mutual funds are stated at the reported net asset value on the last day of the Plan year. Unallocated funds are invested in a short-term money market account as deemed appropriate by the trustee. 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 be. Any remaining costs of administering the plan are currently paid by ADM and its affiliates. While it is anticipated that ADM and its affiliates will continue to pay these costs, the Plan does permit the reasonable expenses of administering the Plan to be paid from the trust fund. There are no charges or deductions, other than taxes, that may be made against the trust fund other than those described in this summary. Plan Year The Plan year is the twelve month period ending December 31, corresponding to the tax year of the Company. 2. Description of the Plan The Plan is a defined contribution plan available to substantially all salaried employees of the Company who have completed one year of service. Under the terms of the Plan, employees electing to participate can contribute from 1% to 6% of their current gross cash compensation to the Plan, within ERISA limitations. In addition, the Company will match 100% of the first 2% employee contribution and 50% of the remaining 4% employee contribution. All contributions are received from the Company in the form of Archer Daniels Midland Company common stock and are fully vested to the participant. 6 Page 7 ADM Savings and Investment Plan Notes To Financial Statements (Continued) The full value of an employee's account is payable following termination of employment. Withdrawals by active employees are permitted after completion of seven years of eligible service under specific circumstances. Withdrawal of shares acquired under 401(k) provisions is subject to hardship restrictions. All plan assets are held and managed by National City Bank of Minneapolis (trustee of the Plan). The trust will continue for an indefinite period of time as provided by the Plan. 3. Investments The Plan's investments are held by a bank administered trust fund. During 1995 and 1994 the Plan's investments (including investments bought, sold, as well as held during the year) appreciated (depreciated) in fair value as follows: [CAPTION] Net Appreciation (Depreciation) in Fair Value Fair Value at During Year End of Year _____________________________________ Year ended December 31, 1995 Archer Daniels Midland Company common stock $(26,865,424) $205,004,592 Pfizer Incorporated common stock659,991 2,950,794 Commingled fixed income fund 148,884 2,107,518 Equity mutual funds 331,392 2,938,280 Commingled capital contract fund160,419 2,162,048 __________ ___________ ($25,564,738) $215,163,232 ========== =========== Year ended December 31, 1994 Archer Daniels Midland Company common stock $64,539,405 $220,040,463 Pfizer Incorporated common stock253,127 2,323,449 Commingled fixed income fund (46,726) 666,123 Equity mutual funds (2,924) 1,035,588 Commingled capital contract fund 3,440 104,789 __________ ___________ $64,746,322 $224,170,412 ========== ===========
At December 31, 1995 and 1994, the fair value of the Archer Daniels Midland Company common stock represented 5% or more of the Plan's net assets. 7 Page 8 ADM Savings and Investment Plan Notes To Financial Statements (Continued) 4. Transactions with Parties-in-Interest During the two years ended December 31, 1995, the Plan had the following transactions related to Archer Daniels Midland Company common stock: 1995 1994 ______________________________ Number of common shares contributed 850,844 529,920 Number of common shares purchased 103,745 3,674 Cost of common shares purchased $1,564,832 $ 85,778 Cash dividends received $1,590,716 $ 764,933 Shares received through stock dividends541,993 3,907,051 Number of common shares sold 164,272 71,913 Market value of common shares sold$2,863,115 $1,833,884 Cost of common shares sold $1,827,772 $1,220,787 5. Plan Terminations Although it has not expressed any intent to do so, the Company has the right to terminate the Plan at any time. Upon termination, all amounts in participants' accounts are 100% vested. 6. Income Tax Status The Plan has received a determination letter from the Internal Revenue Service dated April 10, 1996 stating that the Plan is qualified under Section 401(a) of the Internal Revenue Code of 1986 (the "Code"). Once qualified, the Plan is required to operate in conformity with the Code and ERISA to maintain its tax exempt status. The administrator is not aware of any course of action or series of events that have occurred that might adversely affect the Plan's qualified status. Distributions of benefits to participants, their estates or beneficiaries, generally are subject to federal income tax as either income or capital gain depending on the event giving rise to the distribution and the method used. 7. Merger of Premiere Thrift Savings Plan The Premiere Thrift Savings Plan, a qualified plan maintained by Premiere Technologies, Inc., a subsidiary of the Company, was merged into this plan and assets transferred in January 1995. The participants allocated their transferred funds in the Plan's investment options, except the ADM Stock Fund. All future contributions will be invested in the ADM Stock Fund. However, the merged Premiere participants have the option to re-allocate the transferred funds within the other investment options while they are active participants in the Plan. Page 9 ADM Savings And Investment Plan Item 27a--Schedule of Assets Held For Investment Purposes December 31, 1995 [CAPTION] Description of Investment Including Identity of Issue, Maturity Date, Rate of Borrower, Lessor or Interest, Par or Current Similar Party Maturity Value Cost Value Archer Daniels Midland Company * 11,389,144 shares of common stock$67,550,416$205,004,5 92 Pfizer Incorporated 46,838 shares of common stock1,240,011 2,950,794 Equity mutual funds Frank Russell--Real Estate Securities Fund 12,551 units 273,350 295,065 Frank Russell--Equity I17,832 units 451,685 499,310 Frank Russell--Equity II4,097 units 107,549 118,327 Frank Russell--Equity III27,304 units 728,682 794,828 Frank Russell--Equity Q16,437 units 436,570 499,679 Frank Russell--International20,162 units 676,715 731,071 __________ ___________ 2,674,551 2,938,280 Frank Russell--Commingled capital contract fund 137,631 shares of common stock2,050,295 2,162,048 Commingled fixed income funds Federated High Yield Trust11,776 units 101,530 105,987 Federated International Income Fund 36,985 units 390,934 417,189 Frank Russell--Multistrategy Bond Fund 10,221 units 100,107 105,688 Frank Russell--Diversified Bond Fund 68,488 units 1,409,635 1,478,654 __________ ___________ 2,002,206 2,107,518 __________ ___________ Total assets held for investment $75,517,479$215,163,232 ========== ===========
* Indicates party-in-interest to the Plan. Page 10 ADM Savings And Investment Plan Item 27d--Schedule of Reportable Transactions Year ended December 31, 1995 [CAPTION] Net Purchase Selling Cost of Gain Identity of Party Involved Description of Asset/Transaction Price Price Asset (Loss) Category (iii)-Series of Transactions National City Bank Prime Cash Money Market Fund Purchased 24,373,041 units in 165 transactions $24,373,041 $24,373,041 Sold 24,464,819 units in 162 transactions $24,464,819$24,464,819 Frank Russell Investment Company Frank Russell Equity Funds Purchased 450,888 shares $8,310,698 $8,310,698 in 47 transactions Sold 220,678 shares $4,188,699 $4,058,549 $130,150 in 84 transactions Archer Daniels Midland Company Archer Daniels Midland Company common stock Purchased or received for 401(k) plan contribution 882,491 shares in 24 transactions $16,554,733 $16,554,733 Sold 164,272 shares in 52 transactions $2,863,115 $1,827,772$1,035,343 There were no category (i), (ii) or (iv) transactions during the year.
Page 11 Signature Pursuant to the requirements of the Securities Exchange Act of 1934, the Plan Administrator has duly caused this annual report to be signed by the undersigned thereunto duly authorized. ARCHER DANIELS MIDLAND COMPANY /s/Douglas J. Schmalz Douglas J. Schmalz Vice President and Chief Financial Officer Dated: June 26, 1996 Page 12 Exhibit 23 CONSENT OF INDEPENDENT ACCOUNTANTS We consent to the incorporation by reference in the Registration Statement (Form S-8 No. 33-58387 dated April 3, 1995) pertaining to the ADM Savings and Investment Plan of our report dated June 20, 1996, with respect to the financial statements and schedules of the ADM Savings and Investment Plan included in this Annual Report (Form 11-K) for the year ended December 31, 1995. /s/ ERNST & YOUNG, LLP ERNST & YOUNG, LLP Minneapolis, Minnesota June 26, 1996 12 -----END PRIVACY-ENHANCED MESSAGE-----