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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 the address of the plan, if
different from that of the issuer named below:
ADM SAVINGS AND INVESTMENT PLAN FOR HOURLY EMPLOYEES
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
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Audited Financial Statements
ADM Savings And Investment Plan For Hourly Employees
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
Schedule Item 27a--Schedule of Reportable Assets Held for
Investment
Purposes.......................................................
..... 9
Schedule Item 27d--Schedule of Reportable
Transactions................ 10
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Report of Independent Auditors
Administrative Committee
ADM Savings and Investment Plan for Hourly Employees
Decatur, Illinois
We have audited the accompanying statements of net assets
available for plan benefits of the ADM Savings and Investment
Plan for Hourly Employees (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
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ADM Savings and Investment Plan for Hourly Employees
Statements Of Net Assets Available For Plan Benefits
[CAPTION]
<TABLE>
December 31
1995 1994
________________________
<S> <C>
<C>
Assets
Cash and cash equivalents $ 6,812$ 60,533
Investments (Note 1)
Archer Daniels Midland Company
common stock 21,689,820 17,138,498
Pfizer Incorporated common stock 2,900,016 1,699,037
Commingled fixed income funds 462,335 218,243
Equity mutual funds 261,029 102,702
Commingled capital contract fund231,942 -
__________ __________
25,545,142 19,158,480
Contributions receivable from employer 279,367 230,830
Contributions receivable from employees 418,965 344,826
__________ __________
Net assets available for plan benefits $26,250,286$19,794,669
========== ==========
</TABLE>
See accompanying notes.
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ADM Savings and Investment Plan for Hourly Employees
Statement of Changes in Net Assets Available for Plan Benefits
[CAPTION]
<TABLE>
<S> <C> <C>
Year ended December 31
1995 1994
__________________________________
Additions:
Contributions from Archer Daniels
Midland Company (Note 2) $ 2,802,731 $
1,987,185
Contributions from participating
employees (Note 2) 4,184,757 2,936,424
Transfer of Assets From Qualified 637,179 -
Merged
Plan - 180,536
Transfer of Assets - Other
Investment income
Dividends 214,649 104,984
Interest 21,891 1,891
_________ _________
7,861,207 5,211,020
Deductions:
Benefit payments
Common stock 929,307 563,894
Cash 298,829 209,120
Other deductions (fees) 288
-
Transfer of assets - 215,445
_________ _________
1,228,136 988,747
_________ _________
6,633,071 4,222,273
Net realized and unrealized
(depreciation) appreciation
in fair value of investment (177,394) 4,850,402
_________ _________
Net increase 6,455,677 9,072,675
Net assets available for plan
benefits at beginning of year 19,794,669 10,721,994
__________ __________
Net assets available for plan
benefits at end of year $26,250,346 $19,794,66
9
========== ==========
See accompanying notes.
</TABLE>
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ADM Savings And Investment Plan For Hourly Employees
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 may
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 hourly 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, for most employees, 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.
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ADM Savings And Investment Plan For Hourly Employees
Notes To Financial Statements (continued)
The full value of an employee's account is payable following
termination of employment. 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]
<TABLE> Net
Appreciation
(Depreciation)
in Fair Value Fair Value at
During Year End of Year
______________________________________
<S> <C> <C>
Year ended December 31, 1995
Archer Daniels Midland Company
common stock ($1,368,099) $21,689,820
Pfizer Incorporated common stock1,103,596 2,900,016
Commingled fixed income fund 39,504 462,335
Equity mutual funds 33,452 261,029
Commingled Capital Contract Fund 14,153 231,942
_________ _________
($177,394) $25,545,142
========= =========
Year ended December 31, 1994
Archer Daniels Midland Company
common stock $4,717,529 $17,138,498
Pfizer Incorporated common stock142,350 1,699,037
Commingled fixed income fund (10,313) 218,243
Equity mutual funds 836 102,702
_______ __________
$4,850,402 $19,158,480
======= ==========
</TABLE>
At December 31, 1995 and 1994, the fair value of the Archer
Daniels Midland Company common stock and the Pfizer Incorporated
common stock each represented 5% or more of the Plan's net
assets.
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ADM Savings And Investment Plan For Hourly Employees
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 397,337 185,504
Number of common shares purchased 8,581 -
Cost of common shares purchased $149,418 -
Cash dividends received $205,707 $52,992
Shares received through stock dividends51,197 303,038
Number of common shares sold 45,165 6,536
Market value of common shares sold $795,972 $161,065
Cost of common shares sold $633,830 $153,593
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
6. Income Tax Status
The Plan has received a determination letter from the Internal
Revenue Service, dated April 5, 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 ordinary 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.
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ADM Savings And Investment Plan For Hourly Employees
Item 27a-Schedule of Assets Held For Investment Purposes
December 31, 1995
[CAPTION]
<TABLE>
<S> <C> <C> <C>
Description of
Investment Including
Identity of Issue, Maturity Date, Rate of
Borrower, Lessor or Interest, Par or
Similar Party Maturity Value Cost Current Value
Archer Daniels Midland
Company * 1,204,990 shares
of common stock$18,267,778$21,689,820
Pfizer Incorporated 46,032 shares
of common stock 665,460 2,900,016
Equity mutual funds
Frank Russell--Real Estate
Securities Fund 1,109 units23,518 26,078
Frank Russell--Equity I Fund 1,605 units39,075 44,939
Frank Russell--Equity II Fund 386 units 9,673
11,137
Frank Russell--Equity III Fund 2,379 units61,291 69,242
Frank Russell--Equity Q Fund 1,431 units36,433 43,501
Frank Russell--International Fund 1,824 units62,345 66,132
__________ __________
232,335 261,029
Frank Russell--Commingled capital 14,765 units220,609 231,942
contract fund
Commingled fixed income funds
Federated High Yield Trust2,584 units 22,052 23,253
Federated International Income
Fund 8,112 units 84,239 91,503
Frank Russell--Multistrategy
Bond Fund 2,242 units 21,806 23,187
Frank Russell--Diversified
Bond Fund 15,025 units 307,127 324,392
__________ __________
435,224 462,335
__________ __________
Total assets held for investment $19,821,406$25,545,142
========== ==========
</TABLE>
* Indicates party-in-interest to the Plan.
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ADM Savings And Investment Plan For Hourly Employees
Item 27d--Schedule of Reportable Transactions
Year ended December 31, 1995
[CAPTION]
<TABLE>
<S> <C> <C> <C> <C> <C>
Net
Purchase Selling Cost of Gain
Identity of Party Involved Description of Asset/TransactionPrice Price Asset
(Loss)
Category (iii)-Series of
Transactions
National City Bank Prime Cash Money Market Fund:
Purchased 2,360,122 units
in 124 transactions $2,360,122 $2,360,122
Sold 2,404,749 units in
113 transactions $2,404,749$2,404,749
Frank Russell Investment Company Commingled Fixed
Income Fund, Equity
Mutual Funds and Capital
Preservation Fund:
Purchased 57,386 shares $1,087,537 $1,087,537
in 26 transactions
Sold 30,810 shares $637,463 $623,846$13,617
in 30 transactions
Merrill Lynch Archer Daniels Midland Common Stock
and Pfizer Common Stock:
Purchased 9,914 shares $248,625 $248,625
in 11 transactions
Sold 45,192 shares $797,788 $634,048$163,740
in 43 transactions
Archer Daniels Midland Company Archer Daniels
Midland Company
common stock
Received for 401(k) plan
contribution 397,337
shares in 24 transactions$6,987,488 $6,987,488
Sold 45,165 shares in 43
transactions $745,472 $633,030$162,142
There were no category (i), (ii) or (iv) transactions during the year.
</TABLE>
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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
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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 for Hourly Employees of
our report dated June 20, 1996 with respect to the financial
statements and schedules of the ADM Savings and Investment Plan
for Hourly Employees 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
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