| Consolidated Statements of Earnings (USD $) | |||||||||||||||||||
| In Millions, except Per Share data | 3 Months Ended
Dec. 31, 2009 | 3 Months Ended
Dec. 31, 2008 | 6 Months Ended
Dec. 31, 2009 | 6 Months Ended
Dec. 31, 2008 | |||||||||||||||
| Consolidated Statements of Earnings | |||||||||||||||||||
| Net sales and other operating income | $15,913 | $16,673 | $30,834 | $37,833 | |||||||||||||||
| Cost of products sold | 14,860 | 15,461 | 28,808 | 34,754 | |||||||||||||||
| Gross Profit | 1,053 | 1,212 | 2,026 | 3,079 | |||||||||||||||
| Selling, general and administrative expenses | 358 | 337 | 712 | 746 | |||||||||||||||
| Other (income) expense - net | (89) | 58 | [1] | (187) | 30 | [1] | |||||||||||||
| Earnings Before Income Taxes | 784 | 817 | [1] | 1,501 | 2,303 | [1] | |||||||||||||
| Income taxes | 223 | 238 | [1] | 443 | 678 | [1] | |||||||||||||
| Net Earnings including Noncontrolling Interests | 561 | 579 | [1] | 1,058 | 1,625 | [1] | |||||||||||||
| Less: Net earnings (losses) attributable to noncontrolling interests | (6) | 1 | [1] | (5) | 2 | [1] | |||||||||||||
| Net Earnings Attributable to Controlling Interests | $567 | $578 | [1] | $1,063 | $1,623 | [1] | |||||||||||||
| Average number of shares outstanding - basic (in shares) | 643 | 642 | 643 | 643 | |||||||||||||||
| Average number of shares outstanding - diluted (in shares) | 645 | 643 | 644 | 644 | |||||||||||||||
| Basic earnings per common share (in dollars per share) | 0.88 | 0.9 | [1] | 1.65 | 2.52 | [1] | |||||||||||||
| Diluted earnings per common share (in dollars per share) | 0.88 | 0.9 | [1] | 1.65 | 2.52 | [1] | |||||||||||||
| Dividends per common share (in dollars per share) | 0.14 | 0.13 | 0.28 | 0.26 | |||||||||||||||
| [1]As adjusted for ASC Topics 470-20 and 810. | |||||||||||||||||||
| Consolidated Balance Sheets (USD $) | |||||||||||||||||||
| In Millions | Dec. 31, 2009
| Jun. 30, 2009
| |||||||||||||||||
| Current Assets | |||||||||||||||||||
| Cash and cash equivalents | $1,317 | $1,055 | |||||||||||||||||
| Short-term marketable securities | 317 | 500 | |||||||||||||||||
| Segregated cash and investments | 2,187 | 2,430 | |||||||||||||||||
| Receivables | 7,075 | 7,311 | |||||||||||||||||
| Inventories | 9,126 | 7,782 | |||||||||||||||||
| Other assets | 366 | 330 | |||||||||||||||||
| Total Current Assets | 20,388 | 19,408 | |||||||||||||||||
| Investments and Other Assets | |||||||||||||||||||
| Investments in and advances to affiliates | 2,693 | 2,459 | |||||||||||||||||
| Long-term marketable securities | 651 | 626 | |||||||||||||||||
| Goodwill | 524 | 532 | |||||||||||||||||
| Other assets | 637 | 607 | [1] | ||||||||||||||||
| Total Investments and Other Assets | 4,505 | 4,224 | [1] | ||||||||||||||||
| Property, Plant, and Equipment | |||||||||||||||||||
| Land | 261 | 240 | |||||||||||||||||
| Buildings | 3,667 | 3,304 | |||||||||||||||||
| Machinery and equipment | 14,186 | 13,052 | |||||||||||||||||
| Construction in progress | 1,845 | 2,245 | |||||||||||||||||
| Property, Plant, and Equipment, Gross | 19,959 | 18,841 | |||||||||||||||||
| Accumulated depreciation | (11,323) | (10,891) | |||||||||||||||||
| Net Property, Plant, and Equipment | 8,636 | 7,950 | |||||||||||||||||
| Total Assets | 33,529 | 31,582 | [1] | ||||||||||||||||
| Current Liabilities | |||||||||||||||||||
| Short-term debt | 221 | 356 | |||||||||||||||||
| Accounts payable | 6,832 | 5,786 | |||||||||||||||||
| Accrued expenses | 2,301 | 2,695 | |||||||||||||||||
| Current maturities of long-term debt | 246 | 48 | |||||||||||||||||
| Total Current Liabilities | 9,600 | 8,885 | |||||||||||||||||
| Long-Term Liabilities | |||||||||||||||||||
| Long-term debt | 7,398 | 7,592 | [1] | ||||||||||||||||
| Deferred income taxes | 553 | 308 | [1] | ||||||||||||||||
| Other | 1,183 | 1,144 | [1] | ||||||||||||||||
| Total Long-Term Liabilities | 9,134 | 9,044 | [1] | ||||||||||||||||
| Shareholders' Equity | |||||||||||||||||||
| Common stock | 5,234 | 5,204 | |||||||||||||||||
| Reinvested earnings | 9,686 | 8,778 | [1] | ||||||||||||||||
| Accumulated other comprehensive income (loss) | (155) | (355) | |||||||||||||||||
| Noncontrolling interests | 30 | 26 | [1] | ||||||||||||||||
| Total Shareholders' Equity | 14,795 | 13,653 | [1] | ||||||||||||||||
| Total Liabilities and Shareholders' Equity | $33,529 | $31,582 | [1] | ||||||||||||||||
| [1]As adjusted for ASC Topics 470-20 and 810. | |||||||||||||||||||
| Consolidated Statements of Cash Flows (USD $) | |||||||||||||||||||
| In Millions | 6 Months Ended
Dec. 31, 2009 | 6 Months Ended
Dec. 31, 2008 | |||||||||||||||||
| Operating Activities | |||||||||||||||||||
| Net earnings including noncontrolling interests | $1,058 | $1,625 | [1] | ||||||||||||||||
| Adjustments to reconcile net earnings to net cash provided by (used in) operating activities | |||||||||||||||||||
| Depreciation and amortization | 431 | 381 | [1] | ||||||||||||||||
| Deferred income taxes | 202 | 160 | [1] | ||||||||||||||||
| Equity in earnings of affiliates, net of dividends | (207) | (128) | |||||||||||||||||
| Pension and postretirement accruals (contributions), net | 45 | (101) | |||||||||||||||||
| Deferred cash flow hedges | 84 | (475) | |||||||||||||||||
| Other - net | 47 | 110 | [1] | ||||||||||||||||
| Changes in operating assets and liabilities | |||||||||||||||||||
| Segregated cash and investments | 239 | 118 | |||||||||||||||||
| Receivables | 214 | 2,143 | |||||||||||||||||
| Inventories | (1,274) | 1,855 | |||||||||||||||||
| Other assets | (35) | 92 | |||||||||||||||||
| Accounts payable and accrued expenses | 576 | 85 | |||||||||||||||||
| Total Operating Activities | 1,380 | 5,865 | |||||||||||||||||
| Investing Activities | |||||||||||||||||||
| Purchases of property, plant, and equipment | (939) | (1,069) | |||||||||||||||||
| Proceeds from sales of property, plant, and equipment | 22 | 54 | |||||||||||||||||
| Proceeds from sales of businesses | 237 | ||||||||||||||||||
| Net assets of businesses acquired | (57) | (24) | |||||||||||||||||
| Purchases of marketable securities | (569) | (1,644) | |||||||||||||||||
| Proceeds from sales of marketable securities | 767 | 907 | |||||||||||||||||
| Other - net | (4) | (18) | |||||||||||||||||
| Total Investing Activities | (780) | (1,557) | |||||||||||||||||
| Financing Activities | |||||||||||||||||||
| Long-term debt borrowings | 10 | 102 | |||||||||||||||||
| Long-term debt payments | (36) | (16) | |||||||||||||||||
| Net payments under lines of credit agreements | (140) | (2,698) | |||||||||||||||||
| Purchases of treasury stock | (100) | ||||||||||||||||||
| Cash dividends | (180) | (167) | |||||||||||||||||
| Other - net | 8 | 9 | |||||||||||||||||
| Total Financing Activities | (338) | (2,870) | |||||||||||||||||
| Increase in cash and cash equivalents | 262 | 1,438 | |||||||||||||||||
| Cash and cash equivalents beginning of period | 1,055 | 810 | |||||||||||||||||
| Cash and cash equivalents end of period | $1,317 | $2,248 | |||||||||||||||||
| [1]As adjusted for ASC Topics 470-20 and 810. | |||||||||||||||||||
| Consolidated Statement of Shareholders' Equity (USD $) | |||||||||||||||||||
| In Millions | Common Stock
| Reinvested Earnings
| Accumulated Other Comprehensive Income (Loss)
| Noncontrolling Interests
| Total
| ||||||||||||||
| Beginning Balance at Jun. 30, 2009 | $5,204 | $8,778 | [1] | ($355) | $26 | [1] | $13,653 | [1] | |||||||||||
| Beginning Balance (in shares) at Jun. 30, 2009 | 642 | ||||||||||||||||||
| Net earnings | 1,063 | (5) | 1,058 | ||||||||||||||||
| Other comprehensive income | 200 | ||||||||||||||||||
| Total comprehensive income | 1,258 | ||||||||||||||||||
| Cash dividends paid-$.28 per share | (180) | (180) | |||||||||||||||||
| Other | (30) | (25) | (9) | (64) | |||||||||||||||
| Other, shares | 1 | ||||||||||||||||||
| Ending Balance at Dec. 31, 2009 | $5,234 | $9,686 | ($155) | $30 | $14,795 | ||||||||||||||
| Ending Balance (in shares) at Dec. 31, 2009 | 643 | ||||||||||||||||||
| [1]As adjusted for ASC Topics 470-20 and 810. | |||||||||||||||||||
| Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $) | |
| 6 Months Ended
Dec. 31, 2009 | |
| Consolidated Statement of Shareholders' Equity | |
| Dividends per common share | 0.28 |
| Basis of Presentation | |
| 6 Months Ended
Dec. 31, 2009 USD / shares | |
| Notes to Consolidated Financial Statements | |
| Basis of Presentation | Note 1. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form10-Q and Article10 of Regulation S-X. Accordingly, these statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the quarter and six months ended December31, 2009 are not necessarily indicative of the results that may be expected for the year ending June30, 2010. For further information, refer to the consolidated financial statements and footnotes thereto included in the Companys annual report on Form10-K for the year ended June30, 2009. Subsequent Events The Company has performed a review of subsequent events through the date the financial statements were filed with the Securities and Exchange Commission (SEC), and concluded there were no events or transactions occurring during this period that required recognition or disclosure in our financial statements. Adoption of New Accounting Standards On July1, 2009, the Company adopted Financial Accounting Standards Board (FASB) amended guidance in Accounting Standards Codification (ASC) Topic 805, Business Combinations, which changes the financial accounting and reporting of business combination transactions. The guidance is to be applied prospectively to business combinations completed on or after the adoption date. This amended guidance requires recognizing, with certain exceptions, 100 percent of the fair values of assets acquired, liabilities assumed, and noncontrolling interests in acquisitions of less than a 100 percent controlling interest when the acquisition constitutes a change in control of the acquired entity; measuring acquirer shares issued and contingent consideration arrangements in connection with a business combination at fair value on the acquisition date with subsequent changes in fair value reflected in earnings; and expensing as incurred acquisition-related transaction costs. The amended guidance also includes requirements relating to the accounting for assets acquired and liabilities assumed in a business combination that arise from contingencies and establishes a model to account for certain pre-acquisition contingencies. Under the amended guidance, an acquirer is required to recognize at fair value an asset acquired or a liability assumed in a business combination that arises from a contingency if the acquisition-date fair value of that asset or liability can be determined during the measurement period. If the acquisition-date fair value cannot be determined, the acquirer should follow the recognition criteria in ASC Topic 450, Contingencies. There was no material effect on the Companys consolidated financial statements as a result of the adoption of this amended guidance. On July1, 2009, the Company adopted the amended guidance in ASC Topic 470-20, Deb |
| New Accounting Standards | |
| 6 Months Ended
Dec. 31, 2009 USD / shares | |
| Notes to Consolidated Financial Statements | |
| New Accounting Standards | Note 2. New Accounting Standards Effective June30, 2010, the Company will be required to adopt the amended guidance in ASC Topic 715, Compensation Retirement Benefits, which expands disclosure requirements and requires entities to disclose investment policies and strategies, major categories of plan assets, fair value measurements for each major category of plan assets segregated by fair value hierarchy level as defined in ASC Topic 820, the effect of fair value measurements using Level 3 inputs on changes in plan assets for the period, and significant concentrations of risk within plan assets. The adoption of this amended guidance will require expanded disclosure in the notes to the Companys consolidated financial statements but will not impact financial results. Effective July1, 2010, the Company will be required to adopt the amended guidance in ASC Topic 810, Consolidations, which will change how a reporting entity determines when an entity that is insufficiently capitalized or is not controlled through voting or similar rights (known as variable interest entities or VIEs) should be consolidated. The determination of whether a reporting entity is required to consolidate another entity is based on, among other things, the other entitys purpose and design and the reporting entitys ability to direct the activities of the other entity that most significantly impact the other entitys economic performance. This amended guidance will require a number of new disclosures including disclosures about the reporting entitys involvement with VIEs, how its involvement with VIEs affects the reporting entitys financial statements, and any significant changes in risk exposure due to that involvement. The Company has not yet assessed the impact of the adoption of this amended guidance on the Companys financial statements. Effective January1, 2010 the Company will be required to adopt a portion of the amended guidance in ASC Topic 820, Fair Value Measurements and Disclosures, which requires a number of additional disclosures regarding fair value measurements. The Company will be required to disclose the amounts of significant transfers between Level 1 and Level 2 and the reasons for the transfers; the reasons for any transfers in or out of Level 3; and information in the reconciliation of recurring Level 3 measurements about purchases, sales, issuances and settlements on a gross basis. ASC 820 is also amended to clarify that the Company is required to provide fair value measurement disclosures for each class of assets and liabilities and disclose information about both the valuation techniques and inputs used in estimating Level 2 and Level 3 fair value measurements. The Company will adopt these disclosure requirements for its quarter ending March31, 2010 with the exception of the requirement to disclose information about purchases, sales, issuances and settlement in the reconciliation of recurring Level 3 measurements on a gross basis, which is effective for the Company on July1, 2011. The adoption of this amended guidance will require expanded disclosure in the notes to the Companys consolidated financial statements but will not impact financi |
| Fair Value Measurements | |
| 6 Months Ended
Dec. 31, 2009 USD / shares | |
| Notes to Consolidated Financial Statements | |
| Fair Value Measurements | Note 3. Fair Value Measurements The Company determines the fair market value of certain of its inventories of agricultural commodities, derivative contracts, and marketable securities based on the fair value definition and hierarchy levels established in the guidance of ASC Topic 820, Fair Value Measurements and Disclosures. Three levels are established within the hierarchy that may be used to measure fair value: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 1 assets and liabilities include exchange-traded derivative contracts, U.S. treasury securities and certain publicly traded equity securities. Level 2: Observable inputs, including Level 1 prices that have been adjusted; quoted prices for similar assets or liabilities; quoted prices in markets that are less active than traded exchanges; and other inputs that are observable or can be substantially corroborated by observable market data. Level 3: Unobservable inputs that are supported by little or no market activity and that are a significant component of the fair value of the assets or liabilities. In evaluating the significance of fair value inputs, the Company generally classifies assets or liabilities as Level 3 when their fair value is determined using unobservable inputs that individually or when aggregated with other unobservable inputs, represent more than 10% of the fair value of the assets or liabilities. Judgment is required in evaluating both quantitative and qualitative factors in the determination of significance for purposes of fair value level classification. Level 3 amounts can include assets and liabilities whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as assets and liabilities for which the determination of fair value requires significant management judgment or estimation. The following table sets forth, by level, the Companys assets and liabilities that were accounted for at fair value on a recurring basis as of December31, 2009. In many cases, a valuation technique used to measure fair value includes inputs from multiple levels of the fair value hierarchy. The lowest level of input that is a significant component of the fair value measurement determines the placement of the entire fair value measurement in the hierarchy. The Companys assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the classification of fair value assets and liabilities within the fair value hierarchy levels. Fair Value Measurements at December31, 2009 Quoted Prices inActive Marketsfor IdenticalAssets(Level 1) SignificantOtherObservableInputs(Level 2) SignificantUnobservableInputs(Level 3) Total (In millions) Assets: Inventories carried at market $ $ 3,972 $ 609 $ 4,581 Unrealized gains on derivative contracts 847 916 143 1,906 Marketable securities 902 594 1,496 Total Assets $ 1,749 $ 5,482 $ 752 $ 7,983 Liabilities: Unrealized losses on derivative contracts $ 1,010 |
| Derivative Instruments and Hedging Activities | |
| 6 Months Ended
Dec. 31, 2009 USD / shares | |
| Notes to Consolidated Financial Statements | |
| Derivative Instruments and Hedging Activities | Note 4. Derivative Instruments and Hedging Activities ASC Topic 815, Derivatives and Hedging, requires the Company to recognize all of its derivative instruments as either assets or liabilities in its consolidated balance sheet at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, a reporting entity must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, a cash flow hedge, or a hedge of a net investment in a foreign operation. The Company does not currently have any derivatives designated as hedges of net investment in foreign operations or fair value hedges. The Company has certain derivatives designated as cash flow hedges; however, the majority of the Companys derivatives have not been designated as hedging instruments. Derivatives Not Designated as Hedging Instruments To reduce price risk caused by market fluctuations in agricultural commodities and foreign currencies, the Company generally follows a policy of using exchange-traded futures and exchange-traded and OTC options contracts to minimize its net position of merchandisable agricultural commodity inventories and forward cash purchase and sales contracts. The Company also uses exchange-traded futures and exchange-traded and OTC options contracts as components of merchandising strategies designed to enhance margins. The results of these strategies can be significantly impacted by factors such as the volatility of the relationship between the value of exchange-traded commodities futures contracts and the cash prices of the underlying commodities, counterparty contract defaults, and volatility of freight markets. Exchange-traded futures and exchange-traded and OTC options contracts, and forward cash purchase and sales contracts of certain merchandisable agricultural commodities are valued at fair value. Inventories of certain merchandisable agricultural commodities, which include amounts acquired under deferred pricing contracts, are stated at market value. Inventory is not a derivative and therefore is not included in the tables below. Changes in the market value of inventories of merchandisable agricultural commodities, forward cash purchase and sales contracts, and exchange-traded futures and exchange-traded and OTC options contracts are recognized in earnings immediately, resulting in cost of products sold approximating first-in, first-out (FIFO) cost. Unrealized gains and unrealized losses on forward cash purchase contracts, forward foreign currency exchange (FX) contracts, forward cash sales contracts, and exchange-traded and OTC options contracts represent the fair value of such instruments and are classified on the Companys consolidated balance sheet as receivables and accrued expenses, respectively. The following table sets forth the fair value of derivatives not designated as hedging instruments as of December31, 2009. Assets Liab |
| Marketable Securities and Cash Equivalents | |
| 6 Months Ended
Dec. 31, 2009 USD / shares | |
| Notes to Consolidated Financial Statements | |
| Marketable Securities and Cash Equivalents | Note 5. Marketable Securities and Cash Equivalents Unrealized Unrealized Fair Cost Gains Losses Value (In millions) December31, 2009 United States government obligations Maturity less than 1 year $ 399 $ $ $ 399 Maturity 1 to 5 years 39 1 40 Government-sponsored enterprise obligations Maturity less than 1 year 52 52 Maturity 1 to 5 years 56 2 58 Maturity 5 to 10 years 126 (1 ) 125 Maturity greater than 10 years 250 5 (1 ) 254 Corporate debt securities Maturity less than 1 year 7 7 Maturity 1 to 5 years 33 2 35 Other debt securities Maturity less than 1 year 783 783 Maturity 5 to 10 years 6 6 Maturity greater than 10 years 13 (1 ) 12 Equity securities Available-for-sale 70 48 (18 ) 100 Trading 22 22 $ 1,856 $ 58 $ (21 ) $ 1,893 Unrealized Unrealized Fair Cost Gains Losses Value (In millions) June30, 2009 United States government obligations Maturity less than 1 year $ 645 $ $ $ 645 Maturity 1 to 5 years 29 1 30 Government-sponsored enterprise obligations Maturity less than 1 year 8 8 Maturity 1 to 5 years 59 2 61 Maturity 5 to 10 years 104 1 (1 ) 104 Maturity greater than 10 years 268 6 274 Corporate debt securities Maturity less than 1 year 10 10 Maturity 1 to 5 years 37 1 38 Other debt securities Maturity less than 1 year 463 463 Maturity 5 to 10 years 6 6 Maturity greater than 10 years 16 (3 ) 13 Equity securities Available-for-sale 69 33 (29 ) 73 Trading 19 19 $ 1,733 $ 44 $ (33 ) $ 1,744 Of the $21 million in unrealized losses at December31, 2009, $2 million arose within the last 12 months. The market value of the investments that have been in an unrealized loss position for less than 12 months and for 12 months and longer is $337 million and $38 million, respectively. The market value of United States government obligations, government-sponsored enterprise obligations, and other debt securities with unrealized losses as of December31, 2009, is $348 million. The $3 million of unrealized losses associated with United States government obligations, government sponsored enterprise obligations and other debt securities are not considered to be other-than-temporary because the present value of expected cash flows to be collected is equivalent to or exceeds the amortized cost basis of the securities. The market value of available-for-sale equity securities with unrealized losses as of December31, 2009, is $27 million. All of the $18 million in unrealized losses associated with available-for-sale equity securities is related to the Companys investment in one security. The Company does not intend to sell any of its impaired debt and equity securities, and, based upon its evaluat |
| Debt and Financing Arrangements | |
| 6 Months Ended
Dec. 31, 2009 USD / shares | |
| Notes to Consolidated Financial Statements | |
| Debt and Financing Arrangements | Note 6. Debt and Financing Arrangements The Company has outstanding $1.15 billion principal amount of convertible senior notes (the Notes) due in 2014. As of December31, 2009, none of the conditions permitting conversion of the Notes had been satisfied. Therefore, no share amounts related to the conversion of the Notes or exercise of the warrants sold in connection with the issuance of the Notes were included in diluted average shares outstanding. On July1, 2009, the Company began accounting for the Notes in accordance with the amended guidance in ASC Topic 470-20, Debt with Conversion and Other Options, pertaining to convertible debt instruments with cash settlement features. The amendment addresses the accounting for convertible debt securities that, upon conversion, may be settled by the issuer fully or partially in cash. Previously, most forms of convertible debt securities were treated solely as debt. Under the new guidance, issuers of convertible debt securities within its scope must separate these securities into two accounting components; a debt component, representing the issuers contractual obligation to pay principal and interest; and an equity component, representing the holders option to convert the debt security into equity of the issuer or, if the issuer so elects, an equivalent amount of cash. The amended guidance required retrospective application to all periods presented. The following tables reflect the Companys previously reported amounts, along with adjustments required by the amended guidance: Consolidated Statement of Earnings Impact Three Months Ended December31, 2008 As Originally Adjustment due to Reported Topic 470-20 As Adjusted (In millions, except per share amounts) Interest expense reported in Other (income) expense net $ 120 $ 10 $ 130 Income taxes 241 (3 ) 238 Net earnings 585 (7 ) 578 (1) Basic and diluted earnings per common share 0.91 (0.01 ) 0.90 Six Months Ended December31, 2008 As Originally Adjustment due to Reported Topic 470-20 As Adjusted (In millions, except per share amounts) Interest expense reported in Other (income) expense net $ 249 $ 19 $ 268 Income taxes 685 (7 ) 678 Net earnings 1,635 (12 ) 1,623 (1) Basic and diluted earnings per common share 2.54 (0.02 ) 2.52 (1) Currently presented as net earnings attributable to controlling interests in the consolidated statements of earnings as a result of the adoption of ASC Topic 810 on July1, 2009. Consolidated Balance Sheet Impact June30, 2009 As Originally Adjustment due to Reported Topic 470-20 As Adjusted (In millions) Other assets $ 610 $ (3 ) $ 607 Long-term debt 7,800 (208 ) 7,592 Deferred income taxes 230 78 308 Common stock 5,022 182 5,204 Reinvested earnings 8,832 (54 ) 8,778 The Company also has outstanding $1.75 billion |
| Income Taxes | |
| 6 Months Ended
Dec. 31, 2009 USD / shares | |
| Notes to Consolidated Financial Statements | |
| Income Taxes | Note 7. Income Taxes The Companys effective tax rate for the quarter and six months ended December31, 2009, was 28.4% and 29.5%, respectively, compared to 29.1% and 29.4% for the quarter and six months ended December31, 2008. The decrease in the Companys effective tax rate for the quarter is primarily due to changes in the geographic mix of pretax earnings. The Company has an investment in Wilmar International Holdings, Limited (WIHL), a subsidiary of ADM Asia Pacific, Limited (ADMAP), a wholly-owned subsidiary of the Company.Through WIHL, ADMAP holds an indirect ownership interest in Wilmar International Ltd. (WIL). Historically, the Company considered the retained earnings of its investment in ADMAP to be permanently reinvested outside the U.S. and did not provide a deferred income tax liability associated with the undistributed earnings of this investment. In February, 2009, the shareholders of WIHL approved a plan of voluntary liquidation which was followed by a partial liquidating distribution in April, 2009. Pursuant to this distribution, ADMAP received publicly traded shares of WIL that represented approximately 40% of the WIL shares indirectly held by WIHL.The liquidation caused the difference between the market value ofthe WIL shares received and the tax basis of ADMAPs investment in WIHL to be subject to U.S. income tax as a deemed distribution from ADMAP to the Company.Consequently, the Company concluded that a portion of its investment in ADMAP related to its investment in WIHL was not permanently reinvested. The finalization of the liquidation process is expected to occur during calendar year 2010 and is contingent on certain regulatory approvals.While the ultimate impact of the transaction is uncertain, based on the February 5, 2010 market value of WIL shares and certain other assumptions, including the applicable foreign currency exchange rate and the U.S. income tax rate, the finalization of the liquidation could result in additional income tax expense for the Company of approximately $530 million in the period(s)that the liquidation occurs. The Company is subject to income taxation in many jurisdictions around the world. The Company is subject to routine examination by domestic and foreign tax authorities and frequently faces challenges regarding the amount of taxes due.These challenges include questions regarding the timing, nature and amount of deductions and the allocation of income among various tax jurisdictions.Resolution of the related tax positions through negotiation with relevant tax authorities or through litigation may take years to complete. Therefore, it is difficult to predict the timing for resolution of tax positions. In its routine evaluations of the exposure associated with various tax filing positions, the Company recognizes a liability, when necessary, for estimated potential additional tax owed by the Company in accordance with ASC 740, Income Taxes.However, the Company cannot accurately predict or provide assurance as to the ultimate outcome of these ongoing or future examinations. In December2009, the Companys wholly-owned subsidiary, ADM do Brasil Ltda. (ADM do Brasil), received a ta |
| Comprehensive Income | |
| 6 Months Ended
Dec. 31, 2009 USD / shares | |
| Notes to Consolidated Financial Statements | |
| Comprehensive Income | Note 8. Comprehensive Income The components of comprehensive income, net of related tax, are as follows: Three Months Ended Six Months Ended December31, December31, 2009 2008 2009 2008 (In millions) Net earnings including noncontrolling interests $ 561 $ 579 $ 1,058 $ 1,625 Unrealized gain (loss) on investments 1 (8 ) 16 (27 ) Deferred gain (loss) on hedging activities 65 (22 ) 67 (254 ) Pension liability adjustment 3 9 (5 ) 14 Foreign currency translation adjustment (27 ) (317 ) 122 (942 ) Comprehensive income 603 241 1,258 416 Less: Comprehensive income attributable to noncontrolling interests (6 ) 1 (5 ) 2 Comprehensive income attributable to controlling interests $ 609 $ 240 $ 1,263 $ 414 |
| Other (Income) Expense - Net | |
| 6 Months Ended
Dec. 31, 2009 USD / shares | |
| Notes to Consolidated Financial Statements | |
| Other (Income) Expense - Net | Note 9. Other (Income) Expense - Net Three Months Ended Six Months Ended December31, December31, 2009 2008 2009 2008 (In millions) Interest expense $ 105 $ 130 $ 203 $ 268 Investment income (36 ) (48 ) (66 ) (102 ) Net (gain) loss on marketable securities transactions (6 ) (7 ) (9 ) Equity in earnings of affiliates (139 ) (93 ) (291 ) (216 ) Other net (13 ) 69 (26 ) 89 $ (89 ) $ 58 $ (187 ) $ 30 |
| Segment Information | |
| 6 Months Ended
Dec. 31, 2009 USD / shares | |
| Notes to Consolidated Financial Statements | |
| Segment Information | Note 10. Segment Information The Company is principally engaged in procuring, transporting, storing, processing, and merchandising agricultural commodities and products. The Companys operations are classified into three reportable business segments: Oilseeds Processing, Corn Processing and Agricultural Services. Each of these segments is organized based upon the nature of products and services offered. The Companys remaining operations are aggregated and classified as Other. The Oilseeds Processing segment includes activities related to the crushing and origination of oilseeds such as soybeans, cottonseed, sunflower seeds, canola, rapeseed, peanuts, and flaxseed into vegetable oils and protein meals principally for the food and feed industries. In addition, oilseeds and oilseed products may be processed internally or resold into the marketplace as raw materials for other processing. Crude vegetable oil is sold as is or is further processed by refining, bleaching, and deodorizing into salad oils. Salad oils can be further processed by hydrogenating and/or interesterifying into margarine, shortening, and other food products. Partially refined oil is sold for use in paints and other industrial products. Refined oil can be further processed for use in the production of biodiesel. Oilseed meals are primary ingredients used in the manufacture of commercial livestock and poultry feeds. Oilseeds Processing includes activities related to the production of natural health and nutrition products and the production of other specialty food and feed ingredients. This segment also includes activities related to the Companys interest in its unconsolidated affiliate in Asia, Wilmar International Limited. The Corn Processing segment includes activities related to the production of sweeteners, starches, dextrose, and syrups primarily for the food and beverage industry as well as activities related to the production by fermentation of bioproducts such as ethanol, amino acids, and other food, feed and industrial products. The Corn Processing segment also includes activities related to the processing of sugarcane into ethanol. The Agricultural Services segment utilizes the Companys extensive grain elevator and transportation network to buy, store, clean, and transport agricultural commodities, such as oilseeds, corn, wheat, milo, oats, rice, and barley, and resells these commodities primarily as food and feed ingredients for the agricultural processing industry. In addition, the Agricultural Services segment includes activities related to edible bean procurement, rice milling, formula feed, and animal health and nutrition. Agricultural Services grain sourcing and transportation network also provides reliable and efficient services to the Companys agricultural processing operations. Also included in Agricultural Services are the activities of A.C. Toepfer International, a global merchant of agricultural commodities and processed products. Other includes the Companys remaining processing operations, consisting of activities related to processing agricultural commodities into food ingredient products such as wheat into wheat flour, cocoa into chocol |
| Document and Entity Information (USD $) | ||
| 6 Months Ended
Dec. 31, 2009 | Jan. 31, 2010
| |
| Document and Entity Information | ||
| Entity Registrant Name | ARCHER DANIELS MIDLAND CO | |
| Entity Central Index Key | 0000007084 | |
| Document Type | 10-Q | |
| Document Period End Date | 2009-12-31 | |
| Amendment Flag | false | |
| Current Fiscal Year End Date | --06-30 | |
| Entity Current Reporting Status | Yes | |
| Entity Filer Category | Large Accelerated Filer | |
| Entity Common Stock, Shares Outstanding | 642,591,084 |
