Item 1. BUSINESS
(a) General Development of Business
Archer Daniels Midland Company was incorporated in Delaware in 1923, successor to the Daniels Linseed Co. founded in 1902.
During the last five years, the Company has experienced significant growth, spending approximately $3.3 billion for construction of new plants, expansions of existing plants and the acquisitions of plants and transportation equipment. There have been no significant dispositions during this period.
(b) Financial Information About Industry Segments
The Company is in one business segment--procuring, transporting, storing, processing and merchandising agricultural commodities and products.
(c) Narrative Description of Business
(i) Principal products produced and principal markets for and methods of distribution of such products
The Company is engaged in the business of procuring, transporting, storing, processing and merchandising agricultural commodities and products. It is one of the world's largest processors of oilseeds, corn and wheat. The Company also processes rice, milo, oats, barley, peanuts and cane sugar. Other operations include transporting, merchandising and storing agricultural commodities and products. These operations and processes produce products which have primarily two end uses, either food or feed ingredients. Each commodity processed is in itself a feed ingredient as are the by-products produced during the processing of each commodity.
Production processes of all commodities are capital intensive and similar in nature. These processes involve grinding, crushing or milling with further value added through extraction, refining and fermenting. Generally, each commodity can be processed by any of these methods to generate additional value added products. All commodities and related processed products share the same network of commodity procurement facilities, transportation services (including rail, barge, truck and ocean vessels) and storage facilities.
The geographic areas, customers and marketing methods are basically the same for all commodities and their related further processed products. Feed ingredient products and by- products are sold to farmers, feed dealers and livestock producers, all of which can and will purchase products from across the entire commodity chain. Food ingredient products are also sold to one basic group of customers, food processors. Any single customer may purchase products produced from all commodities and any single food or feed product could include ingredients produced from all commodities we process.
Oilseed Products
Soybeans, cottonseed, sunflower seeds, canola, peanuts, flaxseed and corn germ are processed to provide vegetable oils and meals principally for the food and feed industries. Crude vegetable oil is sold as is or is further processed by refining and hydrogenating into margarine, shortening, salad oils and other food products. Partially refined oil is sold for use in chemicals, paints and other industrial products. Lecithin, an emulsifier produced in the vegetable oil refining process, is marketed as a food and feed ingredient.
Oilseed meals supply more than one-half of the high protein ingredients used in the domestic manufacture of commercial livestock and poultry feeds. Soybean meal is further processed into soy flour and grits, used in both food and industrial products, and into value-added soy protein products. Textured vegetable protein (TVP R), a soy protein product developed by the Company, is sold primarily to the institutional food market and, through others, to the food consumer market. The Company also produces a wide range of other edible soy protein products including isolated soy protein, soy protein concentrate, soy-based milk products, soy flours and vegetable patties (Harvest Burgers R). The Company produces and markets a wide range of consumer and institutional health foods based on the Company's various soy protein products.
Corn Products
The Company is engaged in dry milling and wet milling corn operations. Products produced for use by the food and beverage industry include syrup, starch, glucose, dextrose, crystalline dextrose, high fructose sweeteners, crystalline fructose and grits. Corn gluten feed and distillers grains are produced for use as feed ingredients. Ethyl alcohol is produced to beverage grade or for industrial use as ethanol. Ethanol is used to increase octane, and as an extender and oxygenate in gasoline. Corn germ, a byproduct of the milling process, is further processed as an oilseed.ITEM 1. BUSINESS--Continued
The Company produces by fermentation, from dextrose, citric and lactic acids, feed-grade amino acids and vitamins, lactates, sorbitol, monosodium glutamate, nematodes and food emulsifiers principally for the food and feed industries.
Wheat and Other Milled Products
Wheat flour is sold primarily to large bakeries, durum flour is sold to pasta manufacturers and bulgur, a gelatinized wheat food, is sold to both the export and the domestic food markets. Masa corn flour is sold primarily to specialty food producers to be used in the production of tortillas, taco shells and tortilla chips.
The Company mills long, medium and short grain rice and mills oats into oat bran and oat flour for institutional and consumer food customers. The Company also mills milo to produce industrial flour that is used in the manufacturing of wall board for the building industry.
Other Products and Services
The Company buys, stores and cleans agricultural commodities, such as corn, wheat, soybeans, canola, milo, sunflower seeds, rice, oats and barley, for resale to other processors worldwide.
The Company produces and distributes formula feeds and animal health and nutrition products to the livestock, dairy and poultry industries. Many of the feed ingredients and health and nutrition products can be, and in many cases are, produced in our other commodity processing operations.
The Company produces bakery products and mixes which are sold to the baking industry.
The Company produces spaghetti, noodles, macaroni, and other consumer food products. The Company also produces lettuce, other fresh vegetables and herbs in its hydroponic greenhouse.
Malt products are produced for use by the food and beverage industries.
The Company produces from cane sugar granulated and liquid refined sugars principally for the food and beverage industries.Item 1. BUSINESS--Continued
Hickory Point Bank and Trust Co. furnishes public banking services, except commercial loans, as well as cash management and securities safekeeping services for the Company.
Agrinational Insurance Company and Agrinational Ltd., Vermont and Cayman Island subsidiaries, respectively, act as direct insurers and reinsurers of a portion of the Company's domestic and foreign property and casualty insurance risks.
Alfred C. Toepfer International (Germany) and affiliates, of which the Company has a 50% interest, is one of the world's largest, most respected trading companies specializing in processed agricultural products. Toepfer has thirty-nine sales offices worldwide. Compagnie Industrielle et Financiere des Produits Amylaces SA (Luxembourg) and affiliates, of which the Company has a 41.5% interest, owns European agricultural processing plants that are primarily engaged in corn wet milling and wheat starch production.
The Company, through its partnership with Gold Kist, Inc. and Alimenta Processing Corporation d/b/a Golden Peanut Company, is a major supplier of peanuts to both the domestic and export markets. These peanuts are used in peanut butter, snacks, cereals and many other foods.
The percentage of net sales and other operating income by classes of products and services for the last three fiscal years were as follows: 1994 1993 1992
Oilseed products 50% 50% 51% Corn products 26 28 29 Wheat and other milled products 13 13 10 Other products and services 11 9 10
100% 100% 100% Methods of Distribution
Since the Company's customers are principally other manufacturers and processors, its products are distributed mainly in bulk from processing plants or storage facilities directly to the customers' facilities. The Company owns a large number of trucks and trailers and owns or leases large numbers of railroad tank cars and hopper cars to augment those provided by the railroads. The Company uses the inland waterway system and functions as a contract carrier of commodities for its own operations as well as for other companies.Item 1. BUSINESS--continued
The Company owns, leases or manages under operating agreements approximately 1,900 river barges and 25 line-haul towboats.
(ii) Status of new products
The Company continues to expand its bioproducts. The Company is currently producing, from dextrose, the feed-grade amino acids lysine and threonine, and expects to be producing tryptophan during the coming year. The Company has entered the vitamin market with the production of riboflavin and biotin, and is currently expanding production facilities to produce vitamins C and E. The Company is also producing, from dextrose fermentation, citric acid, monosodium glutamate (MSG) and lactic acid and is scheduled to begin to produce, in the next year, the food additive, xanthan gum.
(iii) Source and availability of raw materials
Substantially all of the Company's raw materials are agricultural commodities. In any single year, the availability and price of these commodities are subject to wide fluctuations due to unpredictable factors such as weather, plantings, government (domestic and foreign) farm programs and policies, changes in global demand created by population growth and higher standards of living and worldwide production of similar and competitive crops. The Company follows a policy of hedging commodity transactions, including certain anticipated production requirements, to minimize price risk due to market fluctuations and risk of crop failure.
(iv) Patents, trademarks and licenses
The Company owns several valuable patents, trademarks and licenses but does not consider its business dependent upon any single or group of patents, trademarks and licenses.
(v) Extent to which business is seasonal
Since the Company is so widely diversified in global agribusiness markets, there are no material seasonal fluctuations in the manufacture, sale and distribution of its products and services. There is a degree of seasonality in the growing season and procurement of the Company's principal raw materials, oilseeds, wheat, corn and other grains. However, the actual physical movement of the millions of bushels of these crops through the Company's storage and processing facilities is reasonably constant throughout the year. The worldwide need for food is not seasonal and is ever expanding as is the world's population.Item 1. BUSINESS--Continued
(vi) Working capital items
Price variations and availability of grain at harvest often cause wide fluctuations in the Company's inventories and short-term borrowings.
(vii) Dependence on single customer
No material part of the Company's business is dependent upon a single customer or very few customers.
(viii) Amount of backlog
Because of the nature of the Company's business, the backlog of orders at year end is not a significant indication of the Company's activity for the current or upcoming year.
(ix) Business subject to renegotiation
The Company has no business with the government that is subject to renegotiation.
(x) Competitive conditions
Markets for the Company's products are highly competitive and sensitive to product substitution. No single company competes with the Company in all of its markets; however, a number of large companies compete in one or more markets. Major competitors in one or more markets include, but are not limited to, Cargill, Inc., ConAgra, Inc., CPC International, Eridania Beghin-Say and Tate & Lyle.
(xi) Research and development expenditures
Practically all of the Company's technical efforts and expenditures are concerned with food and feed ingredient products. Special efforts are being made to find improvements in food technology to alleviate the protein malnutrition throughout the world, utilizing the three largest United States crops-wheat, soybeans and corn.
The need to successfully market new or improved food and feed ingredients developed in the Company's research laboratories led to the concept of technical support. The Company is staffed with technical representatives who work closely with customers and potential customers on the development of food and feed products which incorporate Company produced ingredients. Item 1. BUSINESS--Continued
These technical representatives are an adjunct to both the research and sales functions.
The Company maintains a research laboratory in Decatur, Illinois where product and process development activities are conducted. Enzyme development and production are an important part of these activities. Protein research is conducted at facilities in Decatur where meat and dairy pilot plants support application research. Research to support sales and product development for bakery products is done at a laboratory in Olathe, Kansas. Additional research activities are conducted at the Decatur, Indiana feed research facility and at the British Arkady plant in Manchester, England.
The amount spent during the three years ended June 30, 1994, 1993 and 1992 for such technical efforts were approximately $20.1, $14.8, and $14.6 million, respectively. In addition, the Company maintains separate quality control departments which are supervised by research personnel.
(xii) Material effects of capital expenditures for environmental protection
During 1994, $22 million was spent for equipment, facilities and programs for pollution control and compliance with the requirements of various environmental agencies.
There have been no material effects upon the earnings and competitive position of the Company resulting from compliance with federal, state and local laws or regulations enacted or adopted relating to the protection of the environment.
The Company expects that expenditures for environmental facilities and programs will continue at approximately the present rate with no unusual amounts anticipated for the next two years.
(xiii) Number of employees
The number of persons employed by the Company was 16,013 at June 30, 1994. Item 1. BUSINESS--Continued
(d) Financial Information About Foreign and Domestic Operations and Export Sales
The Company's foreign operations are principally in developed countries and do not entail any undue or unusual business risks. Geographic financial information is set forth in Note 9 to the audited financial statements included in the Company's 1994 Annual Report to Shareholders.
Export sales by classes of products for the last three fiscal years were as follows:
1994 1993 1992
Oilseed products 5% 5% 5% Corn products 6% 6 7 Wheat and other milled products 1 2 1 Other products and services - 1 1
12% 14% 14%Item 1. BUSINESS--Continued
(e) Executive Officers
Name Title Age
Dwayne O. Andreas Chairman of the Board of 76 Directors from 1972. Chief Executive Officer
James R. Randall President from 1975. 69
G. Allen Andreas Vice President from 1988. 51 Counsel to the Executive Committee from September 1994
Michael D. Andreas Vice Chairman of the Board 45 of Directors from October 1992. Executive Vice President from 1988.
Martin L. Andreas Senior Vice President from 1988. Executive Assistant to the Chief Executive.
Charles P. Archer Treasurer from October 1992. 38 Assistant Treasurer from 1988.
Charles T. Bayless Group Vice President from January 1993. Vice President 59 from 1992. President of ADM Processing Division since 1980.
Dale F. Benson Vice President from 1969. 68
Howard G. Buffett Vice President and Assistant 39 to the Chairman from 1992. Chairman of Douglas County, Nebraska Board of Commissioners from 1988 to 1992. President of Buffett Farms Inc. since 1984.
Howard E. Buoy Group Vice President from 67 January 1993. Vice President of ADM Processing Division from 1979.
William H. Camp Vice President from April 1993.45 Vice President of ADM Processing Division from 1990 to 1993. Various merchandising positions from 1988 to 1990.Item 1. BUSINESS--Continued
Larry H. Cunningham Vice President and President 50 of Protein Specialties Division since July 1993. Formerly President of A. E. Staley Manufacturing Co.
Thomas A. Duffield Vice President from 1975. 69
Edward A. Harjehausen Vice President from October 1992. Vice President of ADM Corn Processing Division from 1988.
Burnell D Kraft Group Vice President from 62 January 1993. Vice President from 1984. President of ADM/Growmark, Collingwood Grain and Tabor Grain Co. subsidiaries.
Paul L. Krug, Jr. Vice President from 1991 and 50 President of ADM Investor Services. Formerly a Vice President of Continental Grain.
Raymond V. Preiksaitis Vice President - Management Information Systems from 1988.
John G. Reed Vice President from 1982. 64 Chief Executive-Europe from September 1994
Richard P. Reising Vice President, Secretary and 50 General Counsel from 1991. Secretary and Assistant General Counsel since 1988.
John D. Rice Vice President from April 1993.40 Vice President of ADM Processing Division from 1992. Various merchandising positions from 1988 to 1992.
Douglas J. Schmalz Vice President, Controller and48 Chief Financial Officer from 1986.
Item 1. BUSINESS--Continued
Mark E. Whitacre Vice President from October 37 1992. President of ADM Bio- products Division from 1989.
Terrance S. Wilson Group Vice President from 56 January 1993. Officer of ADM Corn Processing Division since 1988.
Officers of the registrant are elected by the Board of Directors for terms of one year and until their successors are duly elected and qualified.
Michael D. Andreas is the son of Dwayne O. Andreas. G. Allen Andreas and Martin L. Andreas are nephews of Dwayne O. Andreas. Lowell W. Andreas and Dwayne O. Andreas, directors of the registrant are brothers. Charles P. Archer is the son of S. M. Archer, Jr., a director of the registrant.Item 2.
Item 5.MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
Common Stock Market Prices and Dividends on page 37 of the annual shareholders' report for the year ended June 30, 1994 is incorporated herein by reference.
Item 6.
Item 6. SELECTED FINANCIAL DATA
Years 1990 through 1994 included in the Ten-Year Summary of Operating, Financial and Other Data on pages 38 and 39 of the annual shareholders' report for the year ended June 30, 1994 is incorporated herein by reference.
Item 7.
Item 7.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Management's Discussion of Operations and Financial Condition on pages 24 and 25 of the annual shareholders' report for the year ended June 30, 1994 is incorporated herein by reference.
Item 8.
Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The following financial statements and supplementary data included in the annual shareholders' report for the year ended June 30, 1994 are incorporated herein by reference:
Page(s) in the Annual Shareholders' Report
Consolidated Financial Statements, Summary Significant Accounting Policies and Notes to Consolidated Financial Statements Pages 26 through
Report of Independent Auditors Page 35
Quarterly Financial Data (Unaudited) Page 36
Item 9.
Item 9.CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None. PART III
The following items of Part III, included in the definitive proxy statement for 1994, are incorporated herein by reference: Page(s) in the Definitive Proxy Statement
Item 10.
Item 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE Pages 2 through 6 REGISTRANT Page 13 Information with respect to executive officers is included in Item 1 (e) of this report.
Item 11.
Item 11. EXECUTIVE COMPENSATION Pages 7 through
Item 12.
Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL Page 2 OWNERS AND MANAGEMENT
Item 13.
Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS Page 12 PART IV
Item 14.
Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K
(a)(1)The following consolidated financial statements and other financial data of the registrant and its subsidiaries, included in the annual report of the registrant to its shareholders for the year ended June 30, 1994, are incorporated by reference in Item 8, and are also incorporated herein by reference:
Consolidated balance sheets--June 30, 1994 and
Consolidated statements of earnings--Years ended June 30, 1994, 1993 and 1992
Consolidated statements of shareholders' equity-- Years ended June 30, 1994, 1993 and 1992
Consolidated statements of cash flows--Years ended June 30, 1994, 1993 and 1992
Notes to consolidated financial statements--June 30,
Quarterly Financial Data (Unaudited)
(a)(2)The following consolidated financial schedules of the registrant and its subsidiaries are included in this report:
Schedule I--Marketable securities--other investments ...................................
Schedule V--Property, plant and equipment ......
Schedule VI--Accumulated depreciation, depletion and amortization of property, plant and equipment .....................................
Schedule IX--Short-term borrowings .............. 27
Schedule X--Supplementary income statement information .................................... 28
All other schedules are not applicable and therefore not included in this report.
Financial statements of affiliates accounted for by the equity method have been omitted because they do not, considered individually, constitute significant subsidiaries.Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K --Continued
(a)(3) LIST OF EXHIBITS
(3) Composite Certificate of Incorporation and Bylaws filed on November 7, 1986 as Exhibits 3(a) and 3(b), respectively, to Post Effective Amendment No. 1 to Registration Statement on Form S-3, Registration No. 33-6721, are incorporated herein by reference.
(4) Instruments defining the rights of security holders, including:
(i) Indenture dated May 15, 1981, between the registrant and Morgan Guaranty Trust Company of New York, as Trustee (incorporated by reference to Exhibit 4(b) to Amendment No. 1 to Registration Statement No. 2-71862), relating to the $250,000,000 - 7% Debentures due May 15, 2011;
(ii) Indenture dated May 1, 1982, between the registrant and Morgan Guaranty Trust Company of New York, as Trustee (incorporated by reference to Exhibit 4(c) to registration Statement No. 2- 77368), relating to the $400,000,000 Zero Coupon Debentures due May 1, 2002;
(iii)Indenture dated as of March 1, 1984 between the registrant and Chemical Bank, as Trustee (incorporated by reference to Exhibit 4 to the registrant's Current Report on Form 8-K dated August 3, 1984 (File No. 1-44)), as supplemented by the Supplemental Indenture dated as of January 9, 1986, between the registrant and Chemical Bank, as Trustee (incorporated by reference to Exhibit 4 to the registrant's Current Report on Form 8-K dated January 9, 1986 (File No. 1-44)), relating to the $100,000,000 - 10 1/4% Debentures due January 15, 2006;
(iv) Indenture dated June 1, 1986 between the registrant and Chemical Bank, (as successor to Manufacturers Hanover Trust Company), as Trustee (incorporated by reference to Exhibit 4(a) to Registration Statement No. 33-6721), and Supplemental Indenture dated as of August 1, 1989 between the registrant and Chemical Bank (as successor to Manufacturers Hanover Trust Company), as Trustee (incorporated by reference to Exhibit 4(c) to Post-Effective Amendment No. 3 to Registration Statement No. 33- 6721), relating to the $300,000,000 - 8 7/8%Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K --Continued
Debentures due April 15, 2011, the $300,000,000 - 8 3/8% Debentures due April 15, 2017, the $300,000,000 - 8 1/8% Debentures due June 1, 2012, the $250,000,000 - 6 1/4% Notes due May 15, 2003, and the $250,000,000 - 7 1/8% Debentures due March 1, 2013.
Copies of constituent instruments defining rights of holders of long-term debt of the Company and Subsidiaries, other than the Indentures specified herein, are not filed herewith, pursuant to Instruction (b)(4) (iii)(A) to Item 601 of Regulation S-K, because the total amount of securities authorized under any such instrument does not exceed 10% of the total assets of the Company and Subsidiaries on a consolidated basis. The registrant hereby agrees that it will, upon request by the Commission, furnish to the Commission a copy of each such instrument.
(10)Material Contracts--Copies of the Company's stock option plans and its savings and investment plans, pursuant to Instruction (10)(iii)(A) to Item 601 of Regulation S-K, are incorporated herein by reference as follows:
(i) Registration Statement No. 2-91811 on Form S-8 dated June 22, 1984 (definitive Prospectus dated July 16, 1984) relating to the Archer Daniels Midland 1982 Incentive Stock Option Plan.
(ii)Registration Statement No. 33-27331 on Form S-8 dated February 27, 1989 relating to the Archer Daniels Midland Company Savings and Investment Plan for Hourly Employees.
(iii) Registration Statement No. 33-49409 on Form S-8 dated March 15, 1993 relating to the Archer Daniels Midland 1991 Incentive Stock Option Plan and Archer Daniels Midland Company Savings and Investment Plan.
(13) Annual report to security holders
(21) Subsidiaries of the registrantItem 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K --Continued
(23) Consent of independent auditors
(24) Powers of attorney
(27) Financial Data Schedule
(b) Reports on Form 8-K
A Form 8-K was not filed during the quarter ended June 30, 1994. SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: September 27, 1994
ARCHER-DANIELS-MIDLAND COMPANY
R. P. Reising Vice President, Secretary and General Counsel
D. J. Schmalz Vice President, Controller and Chief Financial Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below on September 27, 1994, by the following persons on behalf of the Registrant and in the capacities indicated.
D. O. Andreas*, Chairman of the Board, Chief Executive and Director (Principal Executive Officer) L. W. Andreas*, Director M. D. Andreas*, Director M. L. Andreas*, Director S. M. Archer, Jr.*, Director Ralph Bruce*, Director H. G. Buffett*, Director J. H. Daniels*, Director R. A. Goldberg*, Director H. D. Hale*, Director F. R. Johnson*, Director J. R. Randall*, Director Mrs. N. A. Rockefeller*, Director R. S. Strauss*, Director J. K. Vanier*, Director O. G. Webb*, Director
R. P. Reising Attorney-in-Fact
*Powers of Attorney authorizing R. L. Erickson, R. P. Reising, D. J. Schmalz and D. J. Smith and each of them, to sign the Form 10-K on behalf of the above-named officers and directors of the Company are being filed with the and Exchange Commission.NOTES TO SCHEDULE V--PROPERTY, PLANT AND EQUIPMENT
ARCHER DANIELS MIDLAND COMPANY AND SUBSIDIARIES
June 30, 1994
(1) Additions consist principally of:
1994--Bioproduct facility and expansions at Decatur, Illinois, and Southport, North Carolina. Corn processing expansions at Cedar Rapids and Clinton, Iowa, Decatur and Peoria, Illinois and Walhalla, North Dakota. Flour milling facility at Beech Grove, Indiana. Rice processing expansion at Weiner, Arkansas. Transportation equipment consisting primarily of railroad cars.
1993--Bioproduct facility and expansions at Decatur, Illinois, Southport, North Carolina and Ringaskiddy, Ireland. Corn processing expansions at Cedar Rapids and Clinton, Iowa and Decatur and Peoria, Illinois. Flour milling facility at Beech Grove, Indiana. Transportation equipment consisting primarily of railroad cars and barges.
1992--Bioproduct facility and expansion, antibiotic plant, expansions in corn processing, sorbitol and soy protein isolate at Decatur, Illinois. Soy protein concentrate plant, second gas turbine system and oil refinery at Europoort, Netherlands. Corn processing and cogeneration expansions at Cedar Rapids, Iowa. Citric acid expansion and cogeneration plant at Southport, North Carolina. Corn processing expansion and oil refinery at Clinton, Iowa. Softseed extraction plant at Erith, England. Cogeneration facility at Spyck, Germany. Oil refinery at Frankfort, Indiana. Transportation equipment consisting primarily of railroad cars.
(2)Other changes relate to assets of acquired companies and changes due to foreign currency translation.
(3)The annual provisions for depreciation have been computed principally in accordance with the following ranges of asset lives:
Buildings 10 to 50 years Machinery and equipment 3 to 20 years