Investments in and Advances to Affiliates

12 Months Ended

Jun. 30, 2011

Investments in and Advances to Affiliates

Investments in and Advances to Affiliates

Note 6. Investments in and Advances to Affiliates

The Company applies the equity method for investments in investees over which the Company has the ability to exercise significant influence, including the Company’s 16.4% share ownership in Wilmar.  The Company had 68 and 73 unconsolidated affiliates as of June 30, 2011 and 2010, respectively, located in North and South America, Africa, Europe, Australia, and Asia.  The following table summarizes the combined balance sheets as of June 30, 2011 and 2010, and the combined statements of earnings of the Company’s unconsolidated affiliates for each of the three years ended June 30, 2011, 2010, and 2009.

	2011			2010			2009
	(In millions)
Current assets	$	26,222		$	18,495
Non-current assets	17,733			16,315
Current liabilities	(20,748		)	(12,967		)
Non-current liabilities	(5,160		)	(4,209		)
Noncontrolling interests	(1,072		)	(783		)
Net assets	$	16,975		$	16,851
Net sales	$	48,941		$	39,524		$	41,205
Gross profit	4,819			5,225			5,682
Net income	2,252			2,931			816

The Company’s share of the undistributed earnings of its unconsolidated affiliates as of June 30, 2011 is $1.3 billion.  The Company has direct investments in two foreign equity method investees who have a carrying value of $1.9 billion as of June 30, 2011, and a market value of $4.7 billion based on active market quoted prices converted to U.S. dollars at applicable exchange rates at August 18, 2011.

The Company provides credit facilities totaling $607 million to ten unconsolidated affiliates.  One facility that matures on December 9, 2011 and bears interest at the Australian dollar LIBOR rate plus 2% has an outstanding balance of $206 million.  Another facility that matures on December 31, 2011 and bears interest at the one month LIBOR rate has an outstanding balance of $72 million.  One facility has no outstanding balance while the other seven credit facilities have individually insignificant outstanding balances totaling $64 million as of June 30, 2011.  The outstanding balances are included in receivables in the accompanying consolidated balance sheet.