UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D. C. 20549
FORM
11-K
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x
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ANNUAL
REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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For
the fiscal year ended December 31, 2006
OR
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o
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TRANSITION
REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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For
the transition period __________ To __________
Commission
file number 1-44
ARCHER-DANIELS-MIDLAND
COMPANY
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A.
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Full
title of the plan and the address of the plan, if different from
that of
the issuer named below:
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ADM
401(k) and Employee Stock Ownership Plan for Hourly Employees
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B.
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Name
of the issuer of the securities held pursuant to the Plan and the
address
of its principal executive office:
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Archer-Daniels-Midland
Company
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4666
Faries Parkway
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PO
Box 1470
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Decatur,
Illinois 62525
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Audited
Financial Statements and Schedule
ADM
401(k) and Employee Stock Ownership Plan for Hourly Employees
Years
Ended December 31, 2006 and 2005
ADM
401(k) and Employee Stock Ownership Plan for Hourly Employees
Audited
Financial Statements and Schedule
Years
Ended December 31, 2006 and 2005
Contents
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Report
of Independent Registered Public Accounting Firm
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1
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Audited
Financial Statements
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Statements
of Net Assets Available for Benefits
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2
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Statements
of Changes in Net Assets Available for Benefits
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3
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Notes
to Financial Statements
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4
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Schedule
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Schedule
H, Line 4i – Schedule of Assets (Held at End of Year)
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10
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Report
of
Independent Registered Public Accounting Firm
The
Benefit Plans Committee
ADM
401(k) and Employee Stock Ownership Plan for Hourly Employees
We
have
audited the accompanying statements of net assets available for benefits of
the
ADM 401(k) and Employee Stock Ownership Plan for Hourly Employees as of December
31, 2006 and 2005, and the related statements of changes in net assets available
for 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 auditing standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. We were not engaged to perform
an
audit of the Plan’s internal control over financial reporting. Our audits
included consideration of internal control over financial reporting as a basis
for designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the Plan’s
internal control over financial reporting. Accordingly, we express no such
opinion. An audit also includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
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 benefits of the Plan at December
31, 2006 and 2005, and the changes in its net assets available for benefits
for
the years then ended, in conformity with U.S. generally accepted accounting
principles.
Our
audits were performed for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedule of assets
(held at end of year) as of December 31, 2006, is presented for purposes of
additional analysis and is not a required part of the financial statements
but
is supplementary information required by the Department of Labor’s Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. The supplemental schedule is the responsibility of the
Plan’s management. The supplemental schedule has been subjected to the auditing
procedures applied in our audits of the financial statements and, in our
opinion, is fairly stated in all material respects in relation to the financial
statements taken as a whole.
/s/
Ernst
& Young LLP
St.
Louis, Missouri
May 29,
2007
ADM
401(k) and Employee Stock Ownership Plan for Hourly Employees
Statements
of Net Assets Available for Benefits
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December
31
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||||||||
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2006
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2005
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|||||||
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Assets
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||||||||
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Interest
in Master Trust
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$ |
246,788,792
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$ |
202,510,035
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||||
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Accrued
investment income
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2,044,995
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137,740
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||||||
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Participant
loans receivable
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4,089,396
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3,260,103
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||||||
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Contributions
receivable from employer
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853,727
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877,874
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||||||
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Net
assets available for benefits
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$ |
253,776,910
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$ |
206,785,752
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||||
See
accompanying notes.
ADM
401(k) and Employee Stock Ownership Plan for Hourly Employees
Statements
of Changes in Net Assets Available for Benefits
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Year
Ended December 31
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||||||||
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2006
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2005
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|||||||
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Additions:
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||||||||
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Contributions
from employer
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$ |
8,490,546
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$ |
7,906,454
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||||
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Contributions
from participating employees
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13,108,309
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12,220,114
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||||||
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Dividend
and interest income
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6,420,617
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4,410,443
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||||||
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28,019,472
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24,537,011
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|||||||
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Deductions:
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||||||||
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Withdrawals
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20,953,514
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14,116,177
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||||||
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Transfer
of assets to another plan
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2,610,118
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10,764,610
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||||||
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23,563,632
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24,880,787
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|||||||
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Net
realized and unrealized appreciation in fair value
of
investments
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42,535,318
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13,602,323
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||||||
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Net
increase
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46,991,158
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13,258,547
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||||||
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Net
assets available for benefits at beginning of year
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206,785,752
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193,527,205
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||||||
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Net
assets available for benefits at end of year
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$ |
253,776,910
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$ |
206,785,752
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||||
See
accompanying notes.
ADM
401(k) and Employee Stock Ownership Plan for Hourly
Employees
Notes
to Financial Statements
December
31, 2006
1.
Description of the Plan
General
The
ADM
401(k) and Employee Stock Ownership Plan for Hourly Employees (the Plan) is
a
defined contribution plan available to all eligible hourly employees of
Archer-Daniels-Midland Company (ADM or the Company). The Plan is
subject to the provisions of the Employee Retirement Income Security Act of
1974
(ERISA). Participants should refer to the plan document and the
prospectus for a more complete description of the Plan’s
provisions.
Employee
eligibility varies by location and employment status. Employees
should refer to the plan appendix applicable to their participating location
for
more complete information regarding employee eligibility.
During
2006, the Plan was amended and restated to reflect the addition of an after-tax
Roth 401(k) investment option.
Arrangement With Related Party
All
plan
assets are held by Hickory Point Bank & Trust, FSB, a wholly owned
subsidiary of ADM, through a master trust agreement (the Master Trust)
established for the Plan and the ADM 401(k) and Employee Stock Ownership Plan
for Salaried Employees.
Contributions
Under
the
terms of the Plan, employees electing to participate can contribute from 1%
up
to as much as 50% of their compensation to the Plan, subject to certain
Internal Revenue Service (IRS) limitations and the Plan’s provisions for the
participating location. Participants age 50 or older can make
additional “catch-up” contributions, up to the limits allowed under the tax
laws.
ADM
401(k) and Employee Stock Ownership Plan for Hourly
Employees
Notes
to Financial Statements (continued)
1.
Description of the Plan (continued)
Contributions
(continued)
The
Company matches participant contributions made to the Plan by contributing
ADM
common stock. Both participant and Company match contributions
immediately vest to the participant. The Company match varies by
location. Employees should refer to the plan appendix applicable to
their participating location for more complete information regarding employee
contributions and employer match limitations.
Investment
Options
Participants
may invest their contributions in one or more of the investment funds offered
by
the Plan and in ADM common stock.
Participants
can elect at any time to convert all or any number of the shares of ADM common
stock acquired through participant and Company matching contributions to cash
and have the cash transferred to the Plan to be invested in the investment
options available under the Plan.
Participant
Accounts
Each
participant’s account contains the participant’s respective contributions, the
Company’s matching contributions and investment earnings. The benefit
to which a participant is entitled is the benefit that can be provided from
the
participant’s account.
ADM
401(k) and Employee Stock Ownership Plan for Hourly
Employees
Notes
to Financial Statements
(continued)
1.
Description of the Plan (continued)
Participant
Loans
Participants
may borrow from their fund accounts a minimum of $1,000 up to the lesser of
$50,000 or 50% of the participant account balance. A maximum of one loan may
be
outstanding to a participant at any time.
Loans
are
allowed only for purposes of educational or medical expenses, the purchase
of a
primary residence, and catastrophic events, as determined by the
IRS. Educational or medical expense loans are available for up to
five years, home purchase loans are available for up to ten years, and
catastrophic event loans have a specified payback period.
The
loans
are secured by the balance in the participant’s account and bear interest at a
rate equal to the prime rate plus 1% at time of issuance. Principal
and interest are repaid ratably through payroll deductions, with payments taken
from each paycheck.
Withdrawal
The
full
value of an employee’s account is payable following termination of
employment. Withdrawals by active employees are permitted upon
reaching age 59 1/2 or for specific hardship circumstances (only after receiving
a loan available to the participant under the loan program).
2.
Significant Accounting Policies
Basis
of Accounting
The
accounting records of the Plan are maintained on the accrual basis.
Investment
Valuation and Income Recognition
Investments
in the Master Trust 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 mutual funds are stated at the reported net
asset value on the last business day of the plan year. Unallocated
funds are invested in a short-term money market account. Participant
loans are valued at cost, which approximates fair value.
Purchases
and sales of securities are recorded on a trade-date basis. Interest
income is recorded on the accrual basis. Dividends are recorded on
the shareholder record date as declared by the related
investment.
ADM
401(k) and Employee Stock Ownership Plan for Hourly
Employees
Notes
to Financial Statements
(continued)
2.
Significant Accounting Policies (continued)
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
may be. Participants are also charged loan fees and check processing
fees in certain circumstances. Any remaining costs of administering
the Plan are currently paid by the Plan’s sponsor, ADM. While it is
anticipated ADM will continue to pay these costs, the Plan does permit the
reasonable expenses of administering the Plan to be paid from the trust
fund.
Use
of Estimates
The
preparation of financial statements in conformity with U.S. generally accepted
accounting principles requires management to make estimates and assumptions
that
affect the amounts reported in the financial statements and accompanying
notes. Actual results could differ from those estimates.
3.
Master Trust Investment Information
The
Plan’s investments are held in the Master Trust. Investments and the income
therefrom are allocated to participating plans based on each plan’s
participation in investment options within the Master Trust. At
December 31, 2006 and 2005, the Plan’s interest in the net assets of the Master
Trust was approximately 23%.
The
following table presents the fair value of investments for the Master
Trust:
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December
31
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||||||||
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2006
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2005
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|||||||
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Assets
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||||||||
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Cash
and cash equivalents
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$ |
1,326,926
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$ |
1,912,028
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||||
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Investment
securities:
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||||||||
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ADM
common stock
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621,115,330
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543,690,390
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||||||
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Mutual
funds
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437,325,612
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326,470,455
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||||||
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Other
common stock
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4,537,560
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6,115,240
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||||||
| $ |
1,064,305,428
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$ |
878,188,113
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|||||
ADM
401(k) and Employee Stock Ownership Plan for Hourly
Employees
Notes
to Financial Statements
(continued)
3.
Master Trust Investment Information (continued)
Summarized
financial information with respect to the Master Trust’s investment income is as
follows:
|
Year
Ended December 31
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||||||||
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2006
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2005
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|||||||
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Net
realized and unrealized appreciation (depreciation)
in
fair value of investments:
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||||||||
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ADM
common stock
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$ |
172,726,655
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$ |
52,690,164
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||||
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Mutual
funds
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19,363,905
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9,146,106
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||||||
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Other
common stock
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598,282
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(907,962 | ) | |||||
| $ |
192,688,842
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$ |
60,928,308
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|||||
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Dividend
and interest income
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$ |
30,693,867
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$ |
18,962,476
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||||
4.
Plan Termination
Although
it has not expressed any intent to do so, the Company has the right under the
Plan to discontinue its contributions at any time and to terminate the Plan
subject to the provisions of ERISA. In the event of plan termination,
participants remain 100% vested in their accounts.
5.
Reconciliation of Financial Statements to Form 5500
The
following is a reconciliation of net assets available for benefits per the
financial statements to the Form 5500:
|
Year
Ended December 31
|
||||||||
|
2006
|
2005
|
|||||||
|
Net
assets available for benefits per the financial
|
||||||||
|
statements
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$ |
253,776,910
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$ |
206,785,752
|
||||
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Less
amounts allocated to withdrawing participants
|
31,556
|
341,833
|
||||||
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Net
assets available for benefits per the Form 5500
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$ |
253,745,354
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$ |
206,443,919
|
||||
ADM
401(k) and Employee Stock Ownership Plan for Hourly
Employees
Notes
to Financial Statements
(continued)
5.
Reconciliation of Financial Statements to Form 5500
(continued)
The
following is a reconciliation of withdrawals per the financial statements to
the
Form 5500:
|
Year
Ended December 31
|
||||||||
|
2006
|
2005
|
|||||||
|
Withdrawals
per the financial
|
||||||||
|
statements
|
$ |
20,953,514
|
$ |
14,116,177
|
||||
|
Add
amounts allocated to withdrawing participants
|
31,556
|
341,833
|
||||||
|
Less
prior year amounts allocated to withdrawing participants
|
341,833
|
–
|
||||||
|
Withdrawals per
the Form 5500
|
$ |
20,643,237
|
$ |
14,458,010
|
||||
Amounts
allocated to withdrawing participants were recorded on the Form 5500 for
withdrawal requests that have been processed and approved for payment prior
to
December 31, 2006 and 2005, but not yet paid.
6.
Income Tax Status
The
Plan received a determination letter from the IRS dated October 1, 2004,
stating the Plan is qualified under Section 401(a) of the Internal Revenue
Code
(the Code) and, therefore, the related trust is exempt from
taxation. Subsequent to this determination by the IRS, the Plan was
amended. Once qualified, the Plan is required to operate in
conformity with the Code to maintain its qualification. The
plan sponsor believes the Plan is being operated in compliance with the
applicable requirements of the Code and, therefore, believes the Plan, as
amended, is qualified and the related trust is exempt from
taxation.
7.
Risks and Uncertainties
The
Plan
invests in various investment securities. Investment securities are
exposed to various risks such as interest rate, market, and credit
risks. Due to the level of risk associated with certain investment
securities, it is at least reasonably possible that changes in the values of
investment securities will occur in the near term and that such changes could
materially affect participants’ account balances and the amounts reported in the
statements of net assets available for benefits.
Schedule
ADM
401(k) and Employee Stock Ownership Plan for Hourly Employees
EIN:
41-0129150
Plan
030
Schedule
H, Line 4i – Schedule of Assets (Held at End of Year)
December
31, 2006
|
Identity
of Issuer, Borrower,
Lessor,
or Similar Party
|
Description
|
Current
Value
|
|
Participant
loans*
|
Loans,
interest rates from 4.75% to 10.5%, maturities through
2026
|
$4,089,396
|
*
Parties
in interest.
Signature
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Plan
Administrator has duly caused this annual report to be signed on its behalf
by
the undersigned hereunto duly authorized.
|
ARCHER-DANIELS-MIDLAND
COMPANY
|
|
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/s/Douglas
J. Schmalz
|
|
|
Douglas
J. Schmalz
|
|
|
Senior
Vice President and Chief Financial Officer
|
|
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Dated:
June 5, 2007
|
Exhibit
Index
|
Exhibit
|
Description
|
|
23
|
Consent
of Ernst & Young LLP.
|