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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, 1997
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
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ADM Savings and Investment Plan
Audited Financial Statements and Schedules
December 31, 1997 and 1996
Report of Independent
Auditors..................................... 3
Audited Financial Statements and Schedules
Statements of Net Assets Available for
Benefits.................... 4
Statements of Changes in Net Assets Available for
Benefits......... 5
Notes to Financial
Statements...................................... 6
Item 27a--Schedule of Assets Held for Investment
Purposes.......... 11
Item 27d--Schedule of Reportable
Transactions...................... 12
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Report Of Independent Auditors
Administrative Committee
ADM Savings and Investment Plan
Decatur, Illinois
We have audited the accompanying statements of net assets
available for benefits of ADM Savings and Investment Plan ("the
Plan") as of December 31, 1997 and 1996, 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 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 benefits of the Plan at December 31, 1997 and
1996, and the changes in its net assets available for 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, 1997 and reportable transactions for the
year ended December 31, 1997 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
May 11, 1998
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ADM Savings and Investment Plan
Statements Of Net Assets Available for Benefits
[CAPTION]
<TABLE>
December 31
1997 1996
___________________________
<S> <C> <C>
Assets
Cash/(cash overdraft) $ 75,681 $ (39,444)
Investments (Note 1)
Cash equivalents 33,762 120,813
Archer Daniels Midland Company common
stock 278,906,131 262,745,956
Pfizer Incorporated common stock 4,453,573 2,825,735
Commingled fixed income funds 1,698,057 1,952,425
Equity mutual funds 4,696,152 3,759,827
Commingled capital contract fund 1,798,212 1,395,821
Participant loans 895,239 -
___________ ___________
292,481,126 272,800,577
Contributions receivable from employer 752,971 492,007
Contributions receivable from employees1,087,943 714,360
___________ ___________
Net assets available for benefits $294,397,721$273,967,500
=========== ===========
</TABLE>
See accompanying notes.
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ADM Savings and Investment Plan
Statements of Changes in Net Assets Available for Benefits
[CAPTION]
<TABLE>
Year ended December 31
1997 1996
____________________________
<S> <C> <C>
Additions:
Contributions from Archer
Daniels Midland Company $ 8,332,945 $6,344,619
(Note 2)
Contributions from
participating 12,078,729 9,216,475
employees(Note 2)
Transfer of Assets From
Qualified 2,093,336 -
Merged Plan
Dividend and interest income 17,382,699 13,242,131
__________ __________
39,887,709 28,803,225
Deductions:
Benefit payments
Common stock 9,023,935 11,125,946
Cash 7,970,984 6,594,125
__________ __________
16,994,919 17,720,071
__________ __________
22,892,790 11,083,154
Net realized and unrealized
appreciation/(depreciation)
in fair value of investments (2,462,569) 46,553,999
__________ ___________
Net increase 20,430,221 57,637,153
Net assets available for
benefits at beginning 273,967,500 216,330,347
of year
___________ ____________
Net assets available for
benefits at end of year $294,397,721 $273,967,500
=========== ===========
</TABLE>
See accompanying notes.
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ADM Savings And Investment Plan
Notes to Financial Statements
December 31, 1997
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. The participant
loans are valued at cost which approximates fair value.
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.
Use of Estimates
The preparation of financial statements in conformity with
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.
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ADM Savings and Investment Plan
Notes To Financial Statements (Continued)
2. Description of the Plan
General
The Plan is a defined contribution plan available to
substantially all salaried employees of the Company who have
completed one year of service. The Plan is subject to the
provisions of the Employee Retirement Income Security Act of
1974 (ERISA). Participants should refer to the Plan agreement
for a more complete description of the Plan's provisions.
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.
Contributions
Under the terms of the Plan effective July 1, 1997, employees
electing to participate can contribute from 1% to 10% of their
current gross cash compensation to the Plan. In addition, the
Company will match 100% of the first 4% employee contribution
and 50% of the next 2% employee contribution. Prior to July 1,
1997, employees were allowed to contribute from 1% to 6% of
their compensation. All contributions are received from the
Company in the form of Archer Daniels Midland Company common
stock and are fully vested to the participant.
Participant Loans
Effective January 1, 1997, participants may borrow from their
fund accounts a minimum of $1,000 up to the lessor of $50,000 or
50% of their account balance. Loan transactions are treated as a
transfer from (to) the investment fund to (from) the loan fund.
A maximum of one loan may be outstanding to a participant at one
time.
Loans are allowed only for education, medical expenses, and
primary home purchases. An education loan or a medical expense
loan is available for up to 5 years, and a home purchase loan is
available for up to 10 years.
The loans are secured by the balance in the participant's
account and bear interest at a rate equal to the prime rate plus
one percent. Principal and interest is repaid ratably through
payroll deductions, with payments taken from each paycheck.
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ADM Savings and Investment Plan
Notes To Financial Statements (Continued)
Withdrawals
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.
Plan Mergers
During the year ended December 31, 1997, the assets and
liabilities of savings plans covering the salaried employees of
recently acquired ADM subsidiaries were merged into the Plan, as
is the policy of ADM.
3. Investments
The Plan's investments are held by a bank administered trust
fund. During 1997 and 1996 the Plan's investments (including
investments bought, sold, as well as held during the year)
appreciated (depreciated) in fair value as follows:
[CAPTION]
<TABLE>
<S> <C> <C>
Net
Appreciation
(Depreciation)
in Fair Value Fair Value at
During Year End of Year
_____________________________________
Year ended December 31, 1997
Cash equivalents $ - $ 33,762
Archer Daniels Midland Company
common stock (4,708,595) 278,906,131
Pfizer Incorporated common stock 2,049,216
4,453,573
Commingled fixed income fund (279) 1,698,057
Equity mutual funds 85,771 4,696,152
Commingled capital contract fund 111,318
1,798,212
Participant loans - 895,239
__________ ___________
$(2,462,569) $ 292,481,126
========== ===========
</TABLE>
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ADM Savings and Investment Plan
Notes To Financial Statements (Continued)
Year ended December 31, 1996
Cash equivalents $ - $ 120,813
Archer Daniels Midland Company
common stock 46,088,526 262,745,956
Pfizer Incorporated common stock 160,026
2,825,735
Commingled fixed income fund (29,959) 1,952,425
Equity mutual funds 224,556 3,759,827
Commingled capital contract fund 110,850
1,395,821
____________ _____________
$ 46,553,999 $272,800,
577
========== ============
At December 31, 1997 and 1996, the fair value of the Archer
Daniels Midland Company common stock represented 5% or more of
the Plan's net assets.
4. Transactions with Parties-in-Interest
During the two years ended December 31, 1997, the Plan had the
following transactions related to Archer Daniels Midland Company
common stock:
1997 1996
______________________________
Number of common shares contributed 944,082 804,159
Number of common shares purchased 123,337 118,568
Cost of common shares purchased $2,521,433 $2,315,440
Cash dividends received $2,453,353 $2,311,965
Shares received through stock dividends600,215 566,342
Number of common shares sold 312,113 278,048
Market value of common shares sold$6,356,629 $5,465,520
Cost of common shares sold $1,450,345 $3,355,002
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"). The Plan has been amended since receiving
the determination letter. However, the Plan Administrator
believes that the Plan is designed and is currently being
operated in compliance with the Code.
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ADM Savings and Investment Plan
Notes To Financial Statements (Continued)
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. Year 2000 Issue (unaudited)
The Plan Sponsor has developed a plan to modify its internal
information technology to be ready for the year 2000 and has
begun converting critical data processing systems. The project
also includes determining whether third party service providers
have reasonable plans in place to become
year 2000 compliant. The Plan Sponsor currently expects the
project to be substantially complete by early 1999. The Plan
Sponsor does not expect this project to have a significant
effect on plan operations.
8. Subsequent Events
The Company intends to convert the Plan to an employee stock
ownership plan (ESOP), effective April 1, 1998. Most features
of the plan, including employee and employer contributions,
loans and withdrawal and distribution options will remain
unchanged. IRS regulations require ESOPs to offer investment
options to employees age 55 and older with 10 or more years of
service.
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ADM Savings and Investment Plan
EIN: 41-0129150
Plan: 020
Item 27a--Schedule of Assets Held for Investment Purposes
December 31, 1997
[CAPTION]
<TABLE>
<S> <C> <C> <C>
Description of
Investment Including
Identity of Issue, Maturity Date, Rate of
Borrower, Lessor or Interest, Par or Current
Similar Party Maturity Value Cost Value
National City Bank-Prime 33,762 units $ 33,762 $
33,762
Cash money market fund *
Archer Daniels Midland
Company * 12,859,929 shares
of common stock82,835,613278,906,131
Pfizer Incorporated 59,729 shares
of common stock1,187,487 4,453,573
Equity mutual funds
Frank Russell--Real Estate
Securities Fund 16,278 units 406,238 502,351
Frank Russell--Equity I26,012 units 749,029 793,624
Frank Russell--Equity II5,940 units 180,295 195,791
Frank Russell--Equity III42,932 units 1,256,071 1,279,382
Frank Russell--Equity Q22,959 units 731,325 824,221
Frank Russell--International31,815 units1,134,753 1,100,783
__________ ___________
4,457,711 4,696,152
Participant loans Various notes bearing
interest at 9.25% to 9.50%
- 895,239
Frank Russell--Commingled
capital contract fund 101,514 shares
of common stock1,607,522 1,798,212
Commingled fixed income funds
Federated High Yield Trust8,669 units 77,702 83,568
Federated International Income
Fund 31,411 units 343,781 324,793
Frank Russell--Fixed Income
I Fund 55,949 units 1,174,198 1,203,452
Frank Russell--Fixed Income
III Fund 8,277 units 83,557 86,244
__________ ___________
1,679,238 1,698,057
__________ ___________
Total assets held for investment purposes$91,801,333$292,481,126
========== ===========
</TABLE>
* Indicates party-in-interest to the Plan.
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[CAPTION]
<TABLE>
ADM Savings And Investment Plan
EIN: 41-0129150
Plan: 020
Item 27d--Schedule of Reportable Transactions
Year ended December 31, 1997
<S> <C> <C> <C> <C> <C> <C>
Identity of Description of Purchase Selling Cost of Current Value Net Gain
Party Asset/Transaction Price Price Asset of Asset on (Loss)
Involved Transaction
Date
Category
(iii)-Series
of
Transactions
National City Prime Cash Money
Bank Market Fund:
Purchased
12,709,791 units
in 171 $12,709,791 $12,709,79 $12,709,791
transactions 1
Sold 12,796,842
units in 146 $12,796,8 12,796,842 $ -
transactions 42 12,796,842
Archer Archer Daniels
Daniels Midland Company
Midland common stock
Company
Sold 312,113
shares in 66 6,356,629
transactions 6,356,629 1,450,345 4,906,284
Purchased 123,337
shares in 10
transactions 2,521,433 2,521,433
2,521,433
</TABLE>
There were no category (i), (ii) or (iv) transactions during the year.
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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 25, 1998
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Exhibit 23
CONSENT OF INDEPENDENT AUDITORS
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 May 11, 1998, 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, 1997.
/s/ ERNST & YOUNG LLP
ERNST & YOUNG LLP
Minneapolis, Minnesota
June 25, 1998
14
