Page 1
SECURITIES AND
EXCHANGE
COMMISSION
WASHINGTON, D.C.
20549
FORM 11-K
[X]Annual Report Pursuant to Section 15(d) of
the Securities Exchange Act of 1934
For the fiscal year ended December 31, 1999
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 EMPLOYEE STOCK OWNERSHIP PLAN FOR SALARIED
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
1
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Audited Financial
Statement
s and
Schedules
ADM Employee Stock
Ownership Plan
for Salaried
Employees
Years ended December 31,
1999 and 1998 2
Page 3
ADM Employee Stock
Ownership Plan for
Salaried Employees
Audited Financial Statements and Schedules
Years ended December 31, 1999 and 1998
Contents
Report of Independent Auditors
1 Audited Financial Statements and Schedules
Statements of Net Assets Available for Benefits
2 Statements of Changes in Net Assets Available
for Benefits3 Notes to Financial Statements
4 Schedule H, Line 4i - Schedule of Assets Held
for Investment
Purposes at End of Year
9 Schedule H, Line 4j - Schedule of Reportable
Transactions10 Schedule G, Part III - Schedule
of Nonexempt Transactions11
3
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Report of Independent Auditors
Administrative Committee
ADM Employee Stock Ownership Plan
for Salaried Employees
We have audited the accompanying statements of
net assets available for benefits of the ADM
Employee Stock Ownership Plan for Salaried
Employees as of December 31, 1999 and 1998, 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 generally accepted in the
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. 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, 1999 and
1998, and the changes in its net assets
available for benefits for the years then ended,
in conformity with
accounting principles generally accepted in the
United States.
Our audits were performed 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, 1999, reportable transactions
and non-exempt transactions for the year then
ended, are presented for purposes of additional
analysis required by the Department of Labor's
Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income
Security Act of 1974. These supplemental
schedules are the responsibility of the Plan's
management and are not a required part of the
financial statements, but are supplementary
information required by the Department of
Labor's Rules and Regulations for Report and
Disclosure under the Employee Retirement Income
Security Act of 1974. The supplemental schedules
have been subjected to the auditing procedures
applied in our audits of the financial
statements and, in our opinion, are fairly
stated in all material respects in the relation
to the financial statements taken as a whole.
/s/
Ernst & Young LLP
Minneapolis, Minnesota
June 13, 2000
4
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ADM Employee Stock Ownership Plan
for Salaried Employees
Statements of Net Assets Available for Benefits
<TABLE>
<CAPTION>
<S> <C>
<C>
December 31
1999
1998
Assets
Cash $
$
167
175
Investments, at fair value
231,197,982 261,853,35
3
Contributions receivable from employer 1,016,315
1,940,436
Contributions receivable from employees 1,345,427
2,837,125 Loan repayment receivable 32,873
47,297
Net assets available for benefits
$233,592,76 $266,678,3
4
86
See accompanying notes.
</TABLE>
5
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ADM Employee Stock Ownership Plan
for Salaried Employees
Statements of Changes in Net Assets Available
for Benefits
<TABLE>
<CAPTION>
<S>
<C> <C>
Year ended
December
31 1999 1998
Additions:
Contributions from Archer Daniels Midland $12,693,268
$12,689,676 Company
Contributions from participating 17,682,425
17,149,765
employees
Transfer of assets from another plan 11,499,161
1,228,370
Dividend and interest income 13,964,662
13,578,824
55,839,516
44,646,635
Deductions:
Benefit payments:
Common stock 8,037,087 12,158,907
Cash 6,011,807 8,442,674
14,048,894
20,601,581
41,790,622
24,045,054
Net realized and unrealized depreciation
in fair value of investments (74,876,244
(51,764,389
) )
Net decrease (33,085,622
(27,719,335
) )
Net assets available for benefits at 266,678,386
294,397,721
beginning of year
Net assets available for benefits at end $233,592,76
$266,678,38 of year 4
6
See accompanying notes.
</TABLE>6
Page 7
1. Significant Accounting Policies
Basis of Accounting
The accounting records of the ADM Employee Stock
Ownership
Plan for Salaried Employees
(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 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 the Plan Sponsor, Archer Daniels
Midland Company ("ADM" or the "Company") and
its affiliates. While it is anticipated 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.
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.
2. Description of the Plan
General
The Plan is a defined contribution plan available
to all salaried
7
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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.
The Company converted the Plan, formerly called
the ADM Savings and Investment Plan, to an
employee stock ownership plan ("ESOP"), effective
April 1, 1998. Most features of the Plan,
including employee and employer contributions,
loans and withdrawals, and distribution
options remained
unchanged. In accordance with Internal Revenue
Service regulations for ESOPs, the Plan offers
investment options to employees age 55 and
older with ten or more years of service.
2. Description of the Plan (continued)
All Plan assets are held and managed by Hickory
Point Bank & Trust, FSB (trustee of the Plan as of
October 1, 1998). The former trustee was
National City Bank of Minneapolis. The trust will
continue for an indefinite period of time as
provided by the Plan. Hickory Point Bank & Trust,
FSB is a subsidiary of ADM.
Contributions
Employees electing to participate can contribute
from 1% to 10% of their current covered
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. All contributions are
received from the
Company in the form of Archer Daniels Midland
Company common stock and are fully vested to the
participant.
The investment option that allows participants age
55 and older with ten years of service to
reallocate their ESOP accounts into the various
investment funds maintained under the Plan
became available January 1, 1999. Shares of ADM
stock added to the participants' accounts after
April 1, 1998 may be reallocated.
Participant Loans
Participants may borrow from their fund accounts a
minimum
of $1,000 up to the lesser 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 any
time.
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Loans are allowed only for purposes of
educational and medical expenses and for
purchases of a primary residence. Educational or
medical expense loans are available for up to five
years, and a home purchase loan is available for up
to ten 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 at time
of issuance. Principal and interest are repaid
ratably through payroll deductions, with payments
taken from each paycheck.
Withdrawals
The full value of an employee's account is payable
following termination of employment. Withdrawals
by active employees are permitted for two
reasons: upon reaching age 59 1/2 and for specific
hardship circumstances and only after receiving a
loan available to the participant under the loan
program. Withdrawal of shares acquired under
401(k) provisions is subject to hardship
restrictions.
Plan Mergers
During the years ended December 31, 1999 and
1998, the assets and liabilities of certain
savings plans covering the salaried employees of
recently acquired ADM subsidiaries were merged
into the Plan, as is the policy of ADM.
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3. Investments
The Plan's investments are held by a bank-
administered trust fund. During 1999 and
1998, the Plan's investments (including
investments bought, sold, as well as held during
the year) appreciated (depreciated) in fair
value as follows:
<TABLE>
<CAPTION>
<S> <C>
<C>
Net
Appreciati
o
n
(Depreciati Fair Value on) in Fair at
Value
End of
Year
During
Year
Year ended December 31, 1999:
Archer Daniels Midland Company common $(73,402,47
$200,876,57
stock 4)
0
Pfizer Incorporated common stock (1,736,772)
5,367,108
Vanguard Wellington Fund (812,461)
3,976,313
Equity mutual funds (178,080)
15,179,169
Invesco Stable Value Fund -
3,943,268
Participant loans -
1,821,084
Cash equivalents -
34,470
$(76,129,78
$231,197,98
7) 2
Year ended December 31, 1998:
Archer Daniels Midland Company common $(54,931,57
$244,252,41
stock 0)
9
Pfizer Incorporated common stock 2,922,243
7,053,000
Balanced Fund 27,392
1,603,183
Equity mutual funds 156,070
5,309,524
Stable Value Fund 61,476
2,347,591
Participant loans -
1,287,636
$(51,764,38
$261,853,35
9) 3
</TABLE>
At December 31, 1999 and 1998, the fair value of the
Archer Daniels Midland Company common stock
represented more than
5% of the Plan's net assets.
4. Nonparticipant-Directed Investments
Information about the net assets and the
significant components of the changes in net
assets relating to the nonparticipant-
directed investments is as follows:
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<TABLE>
<CAPTION>
<S> <C> <C>
December 31
1999
1998
Net assets:
Archer Daniels Midland Company common
$200,876,5 $244,252,4
stock 70 19
Total
$200,876,5 $244,252,4
70
19
</TABLE>
4. Nonparticipant-Directed Investments (continued)
<TABLE>
<CAPTION>
<S> <C>
Y
e
a
r
e
n
d
e
d
D
e
c
e
m
b
e
r
3
1
,
1
9
9
9
Changes in net assets:
Contributions:
Employer $12,693,268
Employee 17,682,425
Dividend income 13,006,468
Net realized and unrealized depreciation in fair (73,244,260
value of investments
)
Distributions to participants (12,130,368
)
Transfers to participant-directed investments (1,383,382)
$(43,375,84 9)
</TABLE>
5. Transactions with Parties-in-Interest
During the years ended December 31, 1999 and 1998,
the Plan had the following transactions related
to Archer Daniels Midland Company common stock:
<TABLE>
<CAPTION>
<S> <C>
<C>
1999
1998
Number of common shares contributed 1,959,665
1,404,803
Number of common shares purchased 4,246,432
144,251
Cost of common shares purchased
$39,533,66 $2,710,468
1
Cash dividends received
$3,051,381 $2,611,681
Shares received through stock dividends 773,425
643,564
Number of common shares sold 1,942,207
378,539
Market value of common shares sold
$10,269,76 $7,473,031
5
Cost of common shares sold
$14,720,14 $1,808,559
4
</TABLE>
6. 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.
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7. 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
(the "Code") and, therefore, the related trust
is exempt from taxation. Once qualified, the
Plan is required to operate in conformity
with the Code to maintain its
qualification. The Plan administrator believes the
Plan is being operated in compliance
with the applicable
requirements of the Code and, therefore, believes
that the Plan is qualified and the related
trust is tax-exempt. Subsequent amendments have
been structured to, and are intended to,
maintain the Plan's qualified status.
Distributions of benefits to participants, their
estates or beneficiaries, generally are subject to
federal income tax
as either income or capital gain depending on
the event giving rise to the distribution and
the method used.
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ADM Employee Stock Ownership
Plan
for Salaried Employees
EIN: 41-0129150
Plan #020
Schedule H, Line 4i - Schedule of Assets Held for
Investment Purposes at End of
Year
December 31, 1999
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Description of
Identity of Issue, Investment Including Current
Borrower, Maturity Date, Rate of
Cost Value
Lessor or Similar Party Interest, Par or
Maturity Value
SEI Liquid Asset Prime
Obligations Fund #12 34,470 units $
$
34,470
34,470
Archer Daniels Midland 16,567,140 shares of
127,143,79 200,876,57
Company* common stock 6
0
Pfizer Incorporated 165,460 shares of 1,229,491
5,367,108
common stock
Equity mutual funds:
Vanguard S&P 500 Index 83,423 units
10,136,866 11,289,716
Fund
T. Rowe Price Mid-Small
Cap Equity Fund 93,920 units 3,360,418
3,769,001
Hotchkis & Wiley
International Equity 4,563 units 115,520
120,452
Fund
Total equity mutual fund
13,612,804 15,179,169
Invesco Stable Value 3,943,268 units 3,943,268
3,943,268
Fund
Vanguard Wellington Fund 142,214 units 4,425,963
3,976,313
Participant loans Various notes bearing
interest at 8.75% to 0
1,821,084
9.50%
Total assets held for investment purposes $150,389,7
$231,197,9
92
82
</TABLE>
*Indicates a party-in-interest to the Plan.
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ADM Employee Stock Ownership Plan
for Salaried Employees
EIN: 41-0129150
Plan #020
Schedule H, Line 4j - Schedule of Reportable Transactions
Year ended December 31, 1999
<TABLE>
<CAPTION>
<S> <S> <S> <S> <S>
<S> <S>
Current
Value
of
Asset Identity of Party
Purchase Selling Cost on Net Gain/
Involved Description of Price Price of Asset
Transactio (Loss)
Asset/Transaction n
Date
Category (iii)-- Series of Transactions in Excess
of 5% of Net Assets
Archer Daniels Midland Archer Daniels Midland Company
Company common stock:
Purchased 4,246,432 shares
in $39,533,661 $39,533,66
$39,533,66
18 transactions 1 1
Sold 1,942,207 shares in $10,269,76 14,720,144
10,269,765 $(4,450,37
436 transactions 5 9)
Hickory Point Bank SEI Liquid Asset Prime
Obligations Fund #12:
Purchased 26,484,071 shares
in 196 transactions 26,484,071 26,484,071
26,484,071 Sold 26,449,601 shares in 26,449,601 26,449,601
26,449,601 -
214 transactions
</TABLE>
There were no category (i), (ii) or (iv) transactions for the year ended
December 31, 1999.
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ADM Employee Stock Ownership Plan
for Salaried Employees
EIN: 41-0129150
Plan #020
Schedule G, Part III - Schedule of Nonexempt Transactions
Year ended December 31, 1999
<TABLE>
<CAPTION>
<S> <C> <C>
(b) Relationship
(a) Identity of to Plan, Employer (c) Description of Transactions Including
Maturity
Party Involved or Other Date,
Party-in-Interest Rate of Interest, Collateral, Par or
Maturity
Value
Archer Daniels Midland Employer/Plan The Plan Sponsor failed to timely remit
participant Company Sponsor 401(k)
contributions in February 1999, due to
administrative error. The amount totaled
$1,491,346 and has been subsequently
deposited.
There was no earnings impact to the
participants as a result of the delay.
The subsequent deposit of treasury
stock shares of the Plan Sponsor was
made at the appropriate cost, as if
the deposit had been made timely.
</TABLE>
Columns (d) through (j) are not applicable.
*Indicates a party-in-interest to the Plan.
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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 28, 2000
16
