Seaboard (SEB) 10-Q 10 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jul. 02, 2016	Jul. 29, 2016
Document and Entity Information
Entity Registrant Name	SEABOARD CORP /DE/
Entity Central Index Key	88,121
Document Type	10-Q
Document Period End Date	Jul. 2, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		1,170,550
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jul. 04, 2015	Jul. 02, 2016	Jul. 04, 2015
Net sales:
Products (includes sales to affiliates of $212, $212, $436 and $424)	$ 1,094	$ 1,148	$ 2,160	$ 2,325
Services (includes sales to affiliates of $1, $0, $1 and $0)	243	252	479	501
Other	20	28	37	54
Total net sales	1,357	1,428	2,676	2,880
Cost of sales and operating expenses:
Products	981	1,081	1,971	2,200
Services	209	224	421	443
Other	16	23	33	44
Total cost of sales and operating expenses	1,206	1,328	2,425	2,687
Gross income	151	100	251	193
Selling, general and administrative expenses	75	68	139	133
Operating income	76	32	112	60
Other income (expense):
Interest expense	(8)	(3)	(16)	(8)
Interest income		3	4	6
Interest income from affiliates	6	7	12	14
Income from affiliates	11	12	33	23
Other investment income (loss), net	8	(3)	13	4
Foreign currency gains, net	2	1	9	2
Miscellaneous, net	1	2	(2)	(2)
Total other income, net	20	19	53	39
Earnings before income taxes	96	51	165	99
Income tax expense	(16)	(19)	(30)	(34)
Net earnings	80	32	135	65
Less: Net income attributable to noncontrolling interests			(1)
Net earnings attributable to Seaboard	$ 80	$ 32	$ 134	$ 65
Earnings per common share	$ 68.34	$ 27.04	$ 114.25	$ 55.15
Other comprehensive income (loss), net of income tax benefit (expense) of $(2), $1, $8 and $1:
Foreign currency translation adjustment	$ 10	$ (9)	$ (16)	$ (15)
Unrealized gain on investments				1
Unrecognized pension cost	1	1	2	2
Other comprehensive income (loss), net of tax	11	(8)	(14)	(12)
Comprehensive income	91	24	121	53
Less: Comprehensive income attributable to noncontrolling interests			(1)
Comprehensive income attributable to Seaboard	$ 91	$ 24	$ 120	$ 53
Average number of shares outstanding (in shares)	1,170,550	1,170,550	1,170,550	1,170,550

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jul. 04, 2015	Jul. 02, 2016	Jul. 04, 2015
Other comprehensive income (loss), income tax benefit (expense)	$ (2)	$ 1	$ 8	$ 1
Products
Sales to affiliates	212	212	436	424
Services
Sales to affiliates	$ 1	$ 0	$ 1	$ 0

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Jul. 02, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 151	$ 50
Short-term investments	1,143	1,254
Receivables, net	414	510
Inventories	659	739
Other current assets	118	111
Total current assets	2,485	2,664
Net property, plant and equipment	930	831
Investments in and advances to affiliates	742	671
Notes receivable from affiliates, net	197	200
Other non-current assets	73	65
Total assets	4,427	4,431
Current liabilities:
Notes payable to banks	104	141
Current maturities of long-term debt	13	4
Accounts payable	158	239
Deferred revenue	101	93
Other current liabilities	276	289
Total current liabilities	652	766
Long-term debt, less current maturities	507	518
Deferred income taxes	33	41
Other liabilities and deferred credits	227	224
Total non-current liabilities	767	783
Commitments and contingent liabilities
Stockholders' equity:
Common stock of $1 par value. Authorized 1,250,000 shares; issued and outstanding 1,170,550 shares	1	1
Accumulated other comprehensive loss	(292)	(278)
Retained earnings	3,287	3,153
Total Seaboard stockholders' equity	2,996	2,876
Noncontrolling interests	12	6
Total equity	3,008	2,882
Total liabilities and stockholders' equity	$ 4,427	$ 4,431

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jul. 02, 2016	Dec. 31, 2015
Condensed Consolidated Balance Sheets
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, Authorized shares	1,250,000	1,250,000
Common stock, issued shares	1,170,550	1,170,550
Common stock, outstanding shares	1,170,550	1,170,550

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jul. 02, 2016	Jul. 04, 2015
Cash flows from operating activities:
Net earnings	$ 135	$ 65
Adjustments to reconcile net earnings to cash from operating activities:
Depreciation and amortization	49	46
Deferred income taxes		(20)
Pay-in-kind interest and accretion on notes receivable from affiliates	(2)	(9)
Income from affiliates	(33)	(23)
Dividends received from affiliates	8	18
Other investment income, net	(13)	(4)
Other, net	13	2
Changes in assets and liabilities, net of acquisition:
Receivables, net of allowance	81	145
Inventories	94	64
Other current assets	(8)	(14)
Current liabilities, exclusive of debt	(83)	(19)
Other, net	5	13
Net cash from operating activities	246	264
Cash flows from investing activities:
Purchase of short-term investments	(299)	(313)
Proceeds from the sale of short-term investments	422	166
Proceeds from the maturity of short-term investments	10	16
Capital expenditures	(96)	(68)
Proceeds from the sale of fixed assets	45	24
Acquisition of business	(148)
Investments in and advances to affiliates, net	(37)	(50)
Long-term notes receivable issued to affiliates	(12)
Principal payments received on long-term notes receivable from affiliates	6
Purchase of long-term investments	(13)	(22)
Other, net	8	(4)
Net cash from investing activities	(114)	(251)
Cash flows from financing activities:
Notes payable to banks, net	(31)	31
Net cash from financing activities	(31)	31
Net change in cash and cash equivalents	101	44
Cash and cash equivalents at beginning of year	50	36
Cash and cash equivalents at end of period	$ 151	$ 80

Accounting Policies and Basis o

Accounting Policies and Basis of Presentation	6 Months Ended
	Jul. 02, 2016
Accounting Policies and Basis of Presentation
Accounting Policies and Basis of Presentation	Note 1 – Accounting Policies and Basis of Presentation The Condensed Consolidated Financial Statements include the accounts of Seaboard Corporation and its domestic and foreign subsidiaries (“Seaboard”). All significant intercompany balances and transactions have been eliminated in consolidation. Seaboard’s investments in non-consolidated affiliates are accounted for by the equity method. The unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements of Seaboard for the year ended December 31, 2015 as filed in its annual report on Form 10-K. Seaboard’s first three quarterly periods include approximately 13 weekly periods ending on the Saturday closest to the end of March, June and September. Seaboard’s year-end is December 31. The accompanying unaudited Condensed Consolidated Financial Statements include all adjustments (consisting only of normal recurring adjustments) that, in the opinion of management, are necessary for a fair presentation of financial position, results of operations and cash flows. Results of operations for interim periods are not necessarily indicative of results to be expected for a full year. As Seaboard conducts its commodity trading business with third parties, consolidated subsidiaries and non-consolidated affiliates on an interrelated basis, gross margin on non-consolidated affiliates cannot be clearly distinguished without making numerous assumptions primarily with respect to mark-to-market accounting for commodity derivatives. Use of Estimates The preparation of the Condensed Consolidated Financial Statements in conformity with United States (“U.S.”) generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements, and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include those related to allowance for doubtful accounts, valuation of inventories, impairment of long-lived assets, potential write-down related to investments in and advances to affiliates and notes receivable from affiliates, income taxes and accrued pension liability. Actual results could differ from those estimates. Supplemental Non-Cash Transactions Seaboard had notes receivable from affiliates that accrued pay-in-kind interest income, primarily from one affiliate. On January 4, 2016, the interest on this note receivable was modified to eliminate future pay-in-kind interest. See Note 9 to the Condensed Consolidated Financial Statements for further discussion of this modification. Seaboard recognized $1 million and $2 million of non-cash, pay-in-kind interest income and accretion of discount for the three and six months ended July 2, 2016 , respectively, and $5 million and $9 million for the three and six months ended July 4, 2015 , respectively, related to notes receivable from affiliates. Recently Issued Accounting Standards Not Yet Adopted In May 2014, the Financial Accounting Standards Board ("FASB") issued guidance to develop a single, comprehensive revenue recognition model for all contracts with customers. This guidance requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This guidance will replace most existing revenue recognition guidance in GAAP when it becomes effective. Seaboard is currently evaluating the impact this new guidance will have on its consolidated financial statements and related disclosures. Seaboard will be required to adopt this guidance on January 1, 2018, and it is currently anticipated that Seaboard will apply this guidance using the cumulative effect transition method. In July 2015, the FASB issued guidance to simplify the subsequent measurement of inventory, excluding inventory measured using last-in, first-out or the retail inventory method. Under the new standard, inventory should be at the lower of cost and net realizable value. The new guidance is effective for interim and annual periods beginning after December 15, 2016, with early adoption permitted. Seaboard believes the adoption of this guidance will not have a material impact on Seaboard’s financial position or net earnings. In January 2016, the FASB issued guidance that requires entities to measure equity investments, other than those accounted for using the equity method of accounting, at fair value and recognize any changes in fair value in net income if a readily determinable fair value exists. For equity investments without readily determinable fair values, the cost method of accounting is also eliminated. An entity may elect to record these equity investments at cost, less impairment, and plus or minus subsequent adjustments for observable price changes. The new guidance is effective for interim and annual periods beginning after December 15, 2017. Seaboard believes the adoption of this guidance will not have a material impact on Seaboard’s financial position or net earnings. In February 2016, the FASB issued guidance that a lessee should recognize in the balance sheet a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from the previous guidance. For operating leases, a lessee is required to: (1) recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the balance sheet, (2) recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis and (3) classify all cash payments within operating activities in the statement of cash flows. It is effective for public entities for fiscal years and interim periods within those years, beginning after December 15, 2018, with early adoption permitted. In transition, lessees are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach, which includes a number of optional practical expedients that entities may elect to apply. Seaboard is currently assessing the potential impact of this new standard.

Investments

Investments	6 Months Ended
	Jul. 02, 2016
Investments
Investments	Note 2 – Investments The following is a summary of the amortized cost and estimated fair value of short-term investments for both available-for-sale and trading securities at July 2, 2016 and December 31, 2015 . July 2, 2016 December 31, 2015 Amortized Fair Amortized Fair (Millions of dollars) Cost Value Cost Value Money market funds $ $ $ $ Total available-for-sale short-term investments Domestic equity securities Domestic debt securities Foreign equity securities High yield debt securities Collateralized loan obligations Money market funds held in trading accounts Other trading securities Total trading short-term investments Total short-term investments $ $ $ $ Seaboard had $76 million of equity securities denominated in foreign currencies at July 2, 2016 , with $23 million in euros, $17 million in Japanese yen, $14 million in British pounds, $6 million in Swiss francs and the remaining $16 million in various other currencies. At December 31, 2015, Seaboard had $80 million of equity securities denominated in foreign currencies, with $25 million in euros, $20 million in Japanese yen, $15 million in British pounds, $7 million in Swiss francs and the remaining $13 million in various other currencies. Also, money market funds included $2 million and $3 million denominated in various foreign currencies at July 2, 2016 , and December 31, 2015 , respectively. Unrealized gains (losses) related to trading securities were $9 million and $13 million for the three and six months ended July 2, 2016, respectively, and $(2) million and $3 million for the three and six months ended July 4, 2015, respectively. In addition to its short-term investments, Seaboard also has trading securities related to Seaboard’s deferred compensation plans classified in other current assets in the Condensed Consolidated Balance Sheets. See Note 5 to the Condensed Consolidated Financial Statements for information on the types of trading securities held related to the deferred compensation plans.

Inventories

Inventories	6 Months Ended
	Jul. 02, 2016
Inventories
Inventories	Note 3 – Inventories The following is a summary of inventories at July 2, 2016 and December 31, 2015 : July 2, December 31, (Millions of dollars) 2016 2015 At lower of LIFO cost or market: Live hogs and materials $ $ Fresh pork and materials LIFO adjustment Total inventories at lower of LIFO cost or market At lower of FIFO cost or market: Grains, oilseeds and other commodities Sugar produced and in process Other Total inventories at lower of FIFO cost or market Grain, flour and feed at lower of weighted average cost or market Total inventories $ $

Income Taxes

Income Taxes	6 Months Ended
	Jul. 02, 2016
Income Taxes
Income Taxes	Note 4 – Income Taxes Seaboard’s tax returns are regularly audited by federal, state and foreign tax authorities, which may result in material adjustments. Seaboard’s U.S. federal income tax years are closed through 2011. Seaboard’s 2013 U.S. income tax return is currently under Internal Revenue Service examination. There have not been any material changes in unrecognized income tax benefits since December 31, 2015 . Interest and penalties related to unrecognized tax benefits were not material for the six months ended July 2, 2016 .

Derivatives and Fair Value of F

Derivatives and Fair Value of Financial Instruments	6 Months Ended
	Jul. 02, 2016
Derivatives and Fair Value of Financial Instruments
Derivatives and Fair Value of Financial Instruments	Note 5 – Derivatives and Fair Value of Financial Instruments GAAP discusses valuation techniques, such as the market approach (prices and other relevant information generated by market conditions involving identical or comparable assets or liabilities), the income approach (techniques to convert future amounts to single present amounts based on market expectations including present value techniques and option-pricing), and the cost approach (amount that would be required to replace the service capacity of an asset, which is often referred to as replacement cost). Seaboard utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into the following three broad levels: Level 1: Observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities that Seaboard has the ability to access at the measurement date. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. The following table shows assets and liabilities measured at fair value on a recurring basis as of July 2, 2016 and also the level within the fair value hierarchy used to measure each category of assets and liabilities. Seaboard determines if there were any transfers between levels at the end of a reporting period. There were no transfers between levels that occurred in the first six months of 2016 . The trading securities classified as other current assets below are assets held for Seaboard’s deferred compensation plans. Balance July 2, (Millions of dollars) 2016 Level 1 Level 2 Level 3 Assets: Available-for-sale securities – short-term investments: Money market funds $ $ $ — $ — Trading securities – short term investments: Domestic equity securities — — Domestic debt securities — — Foreign equity securities — — High yield debt securities — — Collateralized loan obligations — — Money market funds held in trading accounts — — Other trading securities — — Trading securities – other current assets: Domestic equity securities — — Foreign equity securities — — Fixed income mutual funds — — Other — — Derivatives: Commodities (1) — — Foreign currencies — — Total Assets $ $ $ $ — Liabilities: Derivatives: Commodities (1) $ $ $ — $ — Interest rate swaps — — Foreign currencies — — Total Liabilities $ $ $ $ — (1) Seaboard’s commodity derivative assets and liabilities are presented in the Condensed Consolidated Balance Sheets on a net basis, including netting the derivatives with the related margin accounts. As of July 2, 2016 , the commodity derivatives had a margin account balance of $(2) million resulting in a net other current asset in the Condensed Consolidated Balance Sheet of $20 million. The following table shows assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and also the level within the fair value hierarchy used to measure each category of assets. Balance December 31, (Millions of dollars) 2015 Level 1 Level 2 Level 3 Assets: Available-for-sale securities – short-term investments: Money market funds $ $ $ — $ — Trading securities – short term investments: Domestic equity securities — — Domestic debt securities — — Foreign equity securities — — High yield debt securities — — Money market funds held in trading accounts — — Collateralized loan obligation — — Other trading securities — — Trading securities – other current assets: Domestic equity securities — — Foreign equity securities — — Fixed income mutual funds — — Other — Derivatives: Commodities (1) — — Foreign currencies — — Total Assets $ $ $ $ — Liabilities: Derivatives: Commodities (1) $ $ $ — $ — Interest rate swaps — — Total Liabilities $ $ $ $ — (1) Seaboard’s commodity derivative assets and liabilities are presented in the Condensed Consolidated Balance Sheets on a net basis, including netting the derivatives with the related margin accounts. As of December 31, 2015 , the commodity derivatives had a margin account balance of $29 million resulting in a net other current asset in the Condensed Consolidated Balance Sheet of $15 million. Financial instruments consisting of cash and cash equivalents, net receivables, notes payable, and accounts payable are carried at cost, which approximates fair value as a result of the short-term nature of the instruments. The amortized cost and estimated fair values of investments at July 2, 2016 and December 31, 2015 are presented in Note 2 to the Condensed Consolidated Financial Statements. The fair value of long-term debt is estimated by comparing interest rates for debt with similar terms and maturities. As Seaboard’s long-term debt is variable-rate, its carrying amount approximates fair value. If Seaboard’s long-term debt was measured at fair value on its Condensed Consolidated Balance Sheets, it would have been classified as level 2 in the fair value hierarchy. While management believes its derivatives are primarily economic hedges of its firm purchase and sales contracts or anticipated sales contracts, Seaboard does not perform the extensive record-keeping required to account for these types of transactions as hedges for accounting purposes. Since the derivatives discussed below are not accounted for as hedges, fluctuations in the related commodity prices, foreign currency exchange rates and interest rates could have a material impact on earnings in any given period. Seaboard also enters into speculative derivative transactions not directly related to its raw material requirements. The nature of Seaboard’s market risk exposure has not changed materially since December 31, 2015 . Commodity Instruments Seaboard uses various derivative futures and options to manage its risk of price fluctuations for raw materials and other inventories, finished product sales and firm sales commitments. At July 2, 2016 , Seaboard had open net derivative contracts to purchase 31 million pounds of soybean oil and 13 million bushels of grain, and open net derivative contracts to sell 77 million pounds of hogs and 5 million gallons of heating oil. At December 31, 2015 , Seaboard had open net derivative contracts to purchase 25 million pounds of hogs, 22 million bushels of grain and 3 million pounds of sugar, and open net derivative contracts to sell 8 million pounds of soybean oil. Commodity derivatives are recorded at fair value with any changes in fair value being marked-to-market as a component of cost of sales in the Condensed Consolidated Statements of Comprehensive Income. Foreign Currency Exchange Agreements Seaboard enters into foreign currency exchange agreements to manage the foreign currency exchange rate risk with respect to certain transactions denominated in foreign currencies. Foreign currency exchange agreements that are primarily related to an underlying commodity transaction are recorded at fair value with changes in value marked-to-market as a component of cost of sales in the Condensed Consolidated Statements of Comprehensive Income. Foreign currency exchange agreements that are not related to an underlying commodity transaction are recorded at fair value with changes in value marked-to-market as a component of foreign currency gains (losses), net in the Condensed Consolidated Statements of Comprehensive Income. At July 2, 2016 and December 31, 2015 , Seaboard had trading foreign currency exchange agreements to cover a portion of its firm sales and purchase commitments and related trade receivables and payables with net notional amounts of $45 million and $94 million, respectively, primarily related to the South African rand and Canadian dollar. Interest Rate Exchange Agreements During 2014 and 2015, Seaboard entered into four , approximately eight -year interest rate exchange agreements with mandatory early termination dates, which coincided with the anticipated delivery dates in 2015 and 2016 of dry bulk vessels to be leased. These agreements involved the exchange of fixed-rate and variable-rate interest payments without the exchange of the underlying notional amounts to mitigate the potential effects of fluctuations in interest rates on the anticipated dry bulk vessel leases. As of December 31, 2015, two agreements remained, each with a $22 million notional amount outstanding. In the first quarter of 2016, these agreements were terminated and not renewed with the delivery of the final two bulk vessels. Payments to unwind these agreements totaled $2 million. During 2010, Seaboard entered into three ten -year interest rate exchange agreements to mitigate the effects of fluctuations in interest rates on variable-rate debt. These agreements involve the exchange of fixed-rate and variable-rate interest payments over the life of the agreements without the exchange of the underlying notional amounts. Seaboard pays a fixed rate and receives a variable rate of interest on the notional amounts of $25 million each. At July 2, 2016 and December 31, 2015 , Seaboard had three and five interest rate exchange agreements outstanding, respectively, with a total notional value of $75 million and $119 million, respectively. None of Seaboard’s outstanding interest rate exchange agreements qualify as hedges for accounting purposes. Accordingly, the changes in fair value of these agreements are recorded in miscellaneous, net in the Condensed Consolidated Statements of Comprehensive Income. Counterparty Credit Risk From time to time Seaboard is subject to counterparty credit risk related to its foreign currency exchange agreements and interest rate swaps should the counterparties fail to perform according to the terms of the contracts. As of July 2, 2016 , Seaboard had a maximum amount of loss due to credit risk in the amount of $2 million with three counterparties related to foreign c urrency exchange agreements, and no counterparty credit risk related to the interest rate swaps. Seaboard does not hold any collateral related to these agreements. The following table provides the amount of gain or (loss) recognized in income for each type of derivative and where it was recognized in the Condensed Consolidated Statements of Comprehensive Income for the three and six months ended July 2, 2016 and July 4, 2015 . Three Months Ended Six Months Ended July 2, July 4, July 2, July 4, (Millions of dollars) 2016 2015 2016 2015 Commodities Cost of sales $ $ $ $ Foreign currencies Cost of sales Foreign currencies Foreign currency gains, net — — — Interest rate swaps Miscellaneous, net The following table provides the fair value of each type of derivative held as of July 2, 2016 and December 31, 2015 and where each derivative is included in the Condensed Consolidated Balance Sheets. Asset Derivatives Liability Derivatives July 2, December 31, July 2, December 31, (Millions of dollars) 2016 2015 2016 2015 Commodities (1) Other current assets $ $ Other current liabilities $ $ Foreign currencies Other current assets Other current liabilities — Interest rate swaps Other current assets — — Other current liabilities (1) Seaboard’s commodity derivative assets and liabilities are presented in the Condensed Consolidated Balance Sheets on a net basis, including netting the derivatives with the related margin accounts. As of July 2, 2016 and December 31, 2015 , the commodity derivatives had a margin account balance of $(2) million and $29 million, respectively, resulting in a net other current asset in the Condensed Consolidated Balance Sheets of $20 million and $15 million, respectively.

Employee Benefits

Employee Benefits	6 Months Ended
	Jul. 02, 2016
Employee Benefits
Employee Benefits	Note 6 – Employee Benefits Seaboard maintains two defined benefit pension plans for its domestic salaried and clerical employees. At this time, no contributions are expected to be made to these plans in 2016 . Seaboard also sponsors non-qualified, unfunded supplemental executive plans, and has certain individual, non-qualified, unfunded supplemental retirement agreements for certain retired employees. Management has no plans to provide funding for these supplemental plans in advance of when the benefits are paid. The net periodic benefit cost for all of these plans was as follows: Three Months Ended Six Months Ended July 2, July 4, July 2, July 4, (Millions of dollars) 2016 2015 2016 2015 Components of net periodic benefit cost: Service cost $ $ $ $ Interest cost Expected return on plan assets Amortization and other Net periodic benefit cost $ $ $ $

Notes Payable, Long-term Debt,

Notes Payable, Long-term Debt, Commitments and Contingencies	6 Months Ended
	Jul. 02, 2016
Notes Payable, Long-term Debt, Commitments and Contingencies
Notes Payable, Long-term Debt, Commitments and Contingencies	Note 7 – Notes Payable, Long-term Debt, Commitments and Contingencies Notes Payable All of the notes payable outstanding at July 2, 2016 are related to foreign subsidiaries, with $78 million denominated in South African rand, $13 million denominated in Argentine pesos and $13 million denominated in Zambian kwacha. The weighted average interest rate for outstanding notes payable was 14.53% and 11.74% at July 2, 2016 and December 31, 2015, respectively. As of July 2, 2016 , Seaboard had uncommitted bank lines totaling $379 million, of which $329 million related to foreign subsidiaries. Seaboard’s maximum borrowing capacity was reduced by $104 million drawn under the uncommitted lines and letters of credit totaling $4 million. The notes payable under the credit lines are unsecured and do not require compensating balances. Long-term Debt The following is a summary of long-term debt: July 2, December 31, (Millions of dollars) 2016 2015 Term Loan due 2022 $ $ Foreign subsidiary obligations due 2018 through 2023 Total long-term debt at face value Current maturities of long-term debt and unamortized discount Long-term debt, less current maturities and unamortized discount $ $ The interest rate on the Term Loan due 2022 was 2.07% and 1.90% at July 2, 2016 and December 31, 2015, respectively. The weighted average interest rate on Seaboard’s foreign subsidiary obligations was 24.05% and 30.23% at July 2, 2016 and December 31, 2015, respectively. Seaboard was in compliance with all restrictive debt covenants relating to these agreements as of July 2, 2016 . Commitments In 2015, Seaboard’s Pork segment and Triumph Foods, LLC (“Triumph”) entered into a new joint venture, Seaboard Triumph Foods, LLC (“STF LLC”), with equal ownership of 50% . This joint venture is constructing a new pork processing facility in Sioux City, Iowa, which is expected to be completed by mid-2017. Seaboard originally agreed to contribute up to $207 million in connection with the development and operation of the facility; however, in the first quarter of 2016, third-party financing was obtained by STF LLC, and the subscription agreement was amended to require $150 million in capital contributions. As of July 2, 2016 , $33 million is expected to be contributed during the remainder of 2016, with $73 million due in 2017. As part of the operations, Seaboard agreed to provide a portion of the hogs to be processed at the facility. Contingencies On April 29, 2015, Seaboard received from the Department of Justice, Asset Forfeiture and Money Laundering Section (“AFMLS”), a Grand Jury subpoena issued by the U.S. District Court for the District of Columbia (the “DC District Court”) requesting records related to 37 specified foreign companies and five individuals. Seaboard has previously produced documents responsive to Grand Jury subpoenas dated September 18, 2014 and October 17, 2014. The subpoena issued September 18, 2014 requested records related to nine entities and one individual, and the subpoena issued October 17, 2014 requested records with respect to eight additional entities and one additional individual. Two additional subpoenas, each dated July 2, 2015, were received by Seaboard requesting records related to a certain customer. The companies and individuals as to which the requested records relate to are not affiliated with Seaboard. The AFMLS attorney conducting the investigation advised Seaboard during discussions in 2015 that it was not a target of the investigation. On June 6, 2016, a request was received for additional information relating to an affiliate of Seaboard as to which Seaboard is in the process of responding. Seaboard has retained outside counsel and is cooperating with the government’s investigation. It is impossible at this stage either to determine the probability of a favorable or unfavorable outcome or to estimate the amount of potential loss, if any, resulting from the government’s inquiry. On September 19, 2012, the U.S. Immigration and Customs Enforcement (“ICE”) executed three search warrants authorizing the seizure of certain records from Seaboard’s offices in Merriam, Kansas and at the Seaboard Foods LLC ("Seaboard Foods") employment office and the human resources department in Guymon, Oklahoma. The warrants generally called for the seizure of employment-related files, certain e-mails and other electronic records relating to Medicaid and Medicaid recipients, certain health care providers in the Guymon area, and Seaboard’s health plan and certain personnel issues. The U.S. Attorney’s Office for the Western District of Oklahoma (“USAO”), which has been leading the investigation, previously advised Seaboard that it intended to close its investigation and that no charges would be brought against Seaboard. However, discussions continue with the USAO, ICE and the Oklahoma Attorney General's office regarding the matter, including the possibility of a settlement. No proceedings have been filed or brought as of the date of this report. It is not possible at this time to determine whether a settlement will be reached or whether Seaboard will incur any material fines, penalties or liabilities in connection with this matter. On February 16, 2016, Seaboard Foods received an information request from the U.S. Environmental Protection Agency (“EPA”) seeking information under the Clean Air Act with regard to various ammonia releases at Seaboard Foods’ pork processing plant in Guymon, Oklahoma. Seaboard has been cooperating with the EPA with regard to the investigation and has responded to the request. It is not possible at this time to determine whether Seaboard will incur any material fines, penalties or liabilities in connection with this matter. Seaboard is subject to various administrative and judicial proceedings and other legal matters related to the normal conduct of its business. In the opinion of management, the ultimate resolution of these items is not expected to have a material adverse effect on the Condensed Consolidated Financial Statements of Seaboard. Contingent Obligations Certain of the non-consolidated affiliates and third-party contractors who perform services for Seaboard have bank debt supporting their underlying operations. From time to time, Seaboard will provide guarantees of that debt in order to further Seaboard’s business objectives. Seaboard does not issue guarantees of third parties for compensation. As of July 2, 2016 , guarantees outstanding to third parties were not material. Seaboard has not accrued a liability for any of the third-party or affiliate guarantees as management considers the likelihood of loss to be remote. See Notes Payable section above for discussion of letters of credit.

Stockholders' Equity and Accumu

Stockholders' Equity and Accumulated Other Comprehensive Loss	6 Months Ended
	Jul. 02, 2016
Stockholders' Equity and Accumulated Other Comprehensive Loss
Stockholders' Equity and Accumulated Other Comprehensive Loss	Note 8 – Stockholders’ Equity and Accumulated Other Comprehensive Loss Seaboard has a share repurchase program in place that was approved by its Board of Directors and is in effect through October 31, 2017. As of July 2, 2016 , the authorized amount of repurchase under the share repurchase program remained at $100 million. Seaboard did not repurchase any shares of common stock for the six months ended July 2, 2016 . Under this share repurchase program, Seaboard is authorized to repurchase its common stock from time to time in open market or privately negotiated purchases, which may be above or below the traded market price. During the period that the share repurchase program remains in effect, from time to time, Seaboard may enter into a 10b5-1 plan authorizing a third party to make such purchases on behalf of Seaboard. All stock repurchased will be made in compliance with applicable legal requirements and funded by cash on hand. The timing of the repurchases and the number of shares repurchased at any given time will depend upon market conditions, compliance with Securities and Exchange Commission regulations, and other factors. The Board of Directors’ stock repurchase authorization does not obligate Seaboard to acquire a specific amount of common stock, and the stock repurchase program may be suspended at any time at Seaboard’s discretion. In December 2012, Seaboard declared and paid a dividend of $12.00 per share on common stock. The increased amount of the dividend (which has historically been $0.75 per share on a quarterly basis or $3.00 per share on an annual basis) represented a prepayment of the annual 2013 , 2014 , 2015 and 2016 dividends ( $3.00 per share per year). Seaboard did not declare or pay a dividend in 2013, 2014, or 2015, and does not currently intend to declare any dividends for 2016 . The changes in the components of other comprehensive income (loss), net of related taxes, are as follows: Three Months Ended Six Months Ended July 2, July 4, July 2, July 4, (Millions of dollars) 2016 2015 2016 2015 Foreign currency translation adjustment $ $ $ $ Unrealized gain on investments — — — Unrecognized pension cost (1) Other comprehensive income (loss), net of tax $ $ $ $ (1) This primarily represents the amortization of actuarial losses that were included in net periodic pension cost and was recorded in operating income. See Note 6 to the Condensed Consolidated Financial Statements for further discussion. The components of accumulated other comprehensive loss, net of related taxes, are as follows: July 2, December 31, (Millions of dollars) 2016 2015 Cumulative foreign currency translation adjustment $ $ Unrealized gain on investments Unrecognized pension cost Total accumulated other comprehensive loss $ $ The foreign currency translation adjustment primarily represents the effect of the Argentine peso currency exchange fluctuation on the net assets of the Sugar segment. During the first half of 2016, Seaboard recognized $18 million of other comprehensive loss, net of related taxes, related to the devaluation of the Argentine peso. At July 2, 2016 , the Sugar segment had $98 million in net assets denominated in Argentine pesos and $12 million in net assets denominated in U.S. dollars. Management anticipates that the Argentine peso could continue to weaken against the U.S. dollar and that Seaboard could incur additional foreign currency translation adjustment losses in other comprehensive loss during the remainder of 2016 . At July 2, 2016 and July 4, 2015 , income taxes for the cumulative foreign currency translation adjustment was recorded using a 35% effective tax rate except for $86 million and $67 million, respectively, related to certain subsidiaries for which no tax benefit was recorded. At July 2, 2016 and July 4, 2015 , income taxes for all other components of accumulated other comprehensive loss were recorded using a 39% effective rate except for unrecognized pension cost of $18 million and $19 million, respectively, related to employees at certain subsidiaries for which no tax benefit was recorded .

Segment Information

Segment Information	6 Months Ended
	Jul. 02, 2016
Segment Information
Segment Information	Note 9 – Segment Information Seaboard has six reportable segments: Pork, Commodity Trading and Milling (“CT&M”), Marine, Sugar, Power and Turkey, each offering a specific product or service. Below are segment updates from year-end or that impact prior period financial statements. On February 7, 2016, Seaboard’s Pork segment acquired hog inventory, a feed mill, truck washes and certain hog farms in the Central U.S. from Christensen Farms & Feedlots, Inc. and Christensen Farms Midwest, LLC for total cash consideration of $148 million. Seaboard had previously agreed to provide a portion of the hogs to be processed at the new pork processing facility being developed through STF LLC, as discussed in Note 7 to the Condensed Consolidated Financial Statements. With this purchase, Seaboard will increase its sow herd to meet the majority of such supply commitment for single shift processing at the new plant. Seaboard anticipates buying additional hog inventory and related assets during 2016 to fulfill the remaining amount of such hog supply commitment. The purchase was recorded at fair value in Seaboard’s Pork segment and the allocation of the purchase price was as follows: (Millions of dollars) Inventories $ Property, plant and equipment Intangible assets Goodwill Total consideration transferred $ Intangible assets include customer relationships that have a weighted-average useful life of 1.6 years. Goodwill represents the farms’ established processes, workforce and close proximity to the Sioux City, Iowa, processing plant. Operating results have been included in Seaboard’s Condensed Consolidated Financial Statements from the date of acquisition. Net sales of $34 million and $54 million and an immaterial amount of net income were recognized during the three and six months ended July 2, 2016, respec tively . Acquisition costs were less than $1 million. The following unaudited pro forma information presents the combined consolidated financial results for Seaboard as if the acquisition had been completed at the beginning of January 1, 2015. Three months ended Six months ended July 2, July 4, July 2, July 4, (Millions of dollars except per share amounts) 2016 2015 2016 2015 Net sales $ $ $ $ Net earnings $ $ $ $ Earnings per common share $ $ $ $ The CT&M segment has a 50% noncontrolling interest in a bakery located in the Democratic Republic of Congo (“DRC”), which began operations in 2012. As a result of continuing equipment problems, other production challenges and unfavorable local market conditions causing operating losses and challenges in gaining market share, Seaboard recorded a write-down of $11 million in loss from affiliate in the fourth quarter of 2014, which represented the remaining equity investment in this business. There was no tax benefit from this transaction. As part of its original investment, Seaboard has an interest bearing long-term note receivable from this affiliate. During the second quarter of 2016, Seaboard reached an agreement with the other owner to restructure this note receivable by extending the maturity 18 months to June 2022 and changing the bi-annual payments to monthly payments of varying amounts beginning in the fourth quarter of 2016. In addition to the debt restructuring, certain events occurred during the second quarter, including the bakery’s failure to meet cash flow forecasts due to significant equipment updates that did not accomplish the intended improvement in quality and consistency of the bread, that caused new bakery management to reevaluate the business plan and the production and profitability forecast. The new forecasts and the restructuring of the debt resulted in Seaboard recording a reserve of $11 million in bad debt expense within selling, general and administrative expenses in the Condensed Consolidated Statements of Comprehensive Income. There was no tax benefit from this transaction. As of July 2, 2016 , the recorded balance of this note was $24 million, all classified as long-term. If the future long-term cash flows of this bakery do not improve and updated forecasted cash flow projections are not met, more of the recorded value of the note receivable from affiliate could be deemed uncollectible in the future, which could result in a material charge to earnings. Including this business, as of July 2, 2016 , Seaboard had a total of $50 million of investments in, advances to and notes receivable from all of its affiliates in the DRC, which represent the single largest foreign country risk exposure of Seaboard’s equity method investments. One of the other affiliates in the DRC, to which Seaboard sells wheat, is the only supplier of flour to this bakery. The CT&M segment also has a 50% noncontrolling interest in a flour production business in Brazil. Since September 2013, Seaboard has contributed a total of $63 million in investments and advances, and provided a $13 million long-term loan to this business. Half of the interest on this long-term note receivable from affiliate is payable currently in cash and the other half accrues as pay-in-kind interest. This note receivable matures in September 2020 but can be repaid with Seaboard having the option to convert the note receivable to equity and the other equity holders having the option to match such conversion with a purchase of new shares to avoid dilution. During the three and six months ended July 2, 2016 , Seaboard’s advances totaled $13 million and $14 million, respectively. Related to these advances, Seaboard recorded losses from affiliate of $11 million and $12 million, respectively, and currency translation adjustment losses included in other comprehensive income (loss) of $2 million and $2 million, respectively, as this entity’s functional currency is the Brazilian real. Based on discussions with the business’s other 50% shareholder and the executive management of the business, the extent of the losses and revised financial forecast of the business economy, the halting of the construction plans for a new plant and the amount of existing third-party debt, Seaboard previously reserved a total of $22 million related to its advances and long-term note receivable. Third-party debt was $19 million and $16 million as of July 2, 2016 and December 31, 2015, respectively. In total, Seaboard’s investment in the business, advances and long-term note receivable are zero as of July 2, 2016 . Seaboard is in discussions with the other shareholder to revise the Shareholders Agreement, and, if finalized, Seaboard would obtain control of the business and the entity would become consolidated. However, there is no certainty that Seaboard will successfully be able to obtain control. Seaboard also had a gross trade receivable due from affiliate related to this business resulting from sales of grain and supplies of $21 million and $17 million as of July 2, 2016 and December 31, 2015 , respectively, which Seaboard recorded a reserve of $9 million during 2015 based on an analysis of collectability and working capital. During the first quarter of 2016, the CT&M segment provided a $12 million loan to a Peruvian affiliate. Interest is payable monthly, and the principal is due on August 31, 2017, with no prepayment penalty. The balance of this long-term note receivable was $6 million as of July 2, 2016. During the first quarter of 2016, Seaboard invested $7 million of cash and converted its $8 million note receivable to equity for a 36% noncontrolling interest in a holding company that owns a controlling interest in two Haitian start-up projects consisting of a marine terminal operation and a free trade zone development, which includes a planned power plant. The investment is accounted for in the Marine segment using the equity method and reported on a three -month lag. Seaboard’s first proportionate share of income (loss) from affiliates was recognized in the second quarter of 2016. During the second quarter of 2015, the Power segment invested an additional $10 million in a business operating a 300 megawatt electricity generating facility in the Dominican Republic and changed its method of accounting from a cost method investment to an equity method investment. This change in accounting required Seaboard to present its prior period financial results to reflect the equity method of accounting from the date of the initial investment. Seaboard's portion of the investee’s loss for the three months ended April 4, 2015 was not material. The Turkey segment, accounted for using the equity method, represents Seaboard’s investment in Butterball, LLC (“Butterball”). As of July 2, 2016 and December 31, 2015 , Butterball had total assets of $1,146 million and $1,087 million, respectively. Butterball’s summarized income statement information is as follows: Three Months Ended Six Months Ended July 2, July 4, July 2, July 4, (Millions of dollars) 2016 2015 2016 2015 Net sales $ $ $ $ Operating income $ $ $ $ Net income $ $ $ $ In connection with its initial investment in Butterball in December 2010, Seaboard provided Butterball with a $100 million unsecured subordinated loan with a seven -year maturity and interest of 15% per annum, comprised of 5% payable in cash semi-annually, plus 10% pay-in-kind interest, compounded semi-annually, which accumulates and is paid at maturity. Also in connection with providing the subordinated loan, Seaboard received detachable warrants, which upon exercise for a nominal price, would enable Seaboard to acquire an additional 5% equity interest in Butterball. In January 2016, the interest on the subordinated loan was modified to 10% per annum, payable only in cash semi-annually and the warrants were also modified, whereby Seaboard can exercise these warrants at any time after December 31, 2018 or prior to December 31, 2025 after which time the warrants expire. The following tables set forth specific financial information about each segment as reviewed by Seaboard’s management. Operating income for segment reporting is prepared on the same basis as that used for consolidated operating income. Operating income, along with income or losses from affiliates for the CT&M and Turkey segments, is used as the measure of evaluating segment performance because management does not consider interest, other investment income and income tax expense on a segment basis. Sales to External Customers: Three Months Ended Six Months Ended July 2, July 4, July 2, July 4, (Millions of dollars) 2016 2015 2016 2015 Pork $ $ $ $ Commodity Trading and Milling Marine Sugar Power All Other Segment/Consolidated Totals $ $ $ $ Operating Income (Loss): Three Months Ended Six Months Ended July 2, July 4, July 2, July 4, (Millions of dollars) 2016 2015 2016 2015 Pork $ $ $ $ Commodity Trading and Milling Marine Sugar Power All Other — — Segment Totals Corporate Consolidated Totals $ $ $ $ Income (Loss) from Affiliates: Three Months Ended Six Months Ended July 2, July 4, July 2, July 4, (Millions of dollars) 2016 2015 2016 2015 Pork $ $ $ $ Commodity Trading and Milling Marine — — Sugar — — — Power — Turkey Segment/Consolidated Totals $ $ $ $ Total Assets: July 2, December 31, (Millions of dollars) 2016 2015 Pork $ $ Commodity Trading and Milling Marine Sugar Power Turkey All Other Segment Totals Corporate Consolidated Totals $ $ Investments in and Advances to Affiliates: July 2, December 31, (Millions of dollars) 2016 2015 Pork $ $ Commodity Trading and Milling Marine Sugar Power Turkey Segment/Consolidated Totals $ $ Administrative services provided by the corporate office are allocated to the individual segments and represent corporate services rendered to and costs incurred for each specific segment, with no allocation to individual segments for general corporate management oversight costs. Corporate assets include short-term investments, other current assets related to deferred compensation plans, fixed assets, deferred tax amounts and other miscellaneous items. Corporate operating losses represent certain operating costs not specifically allocated to individual segments and include costs related to Seaboard’s deferred compensation plans, which are offset by the effect of the mark-to-market adjustments on these investments recorded in other investment income (loss), net.

Accounting Policies and Basis16

Accounting Policies and Basis of Presentation (Policies)	6 Months Ended
	Jul. 02, 2016
Accounting Policies and Basis of Presentation
Use of Estimates	Use of Estimates The preparation of the Condensed Consolidated Financial Statements in conformity with United States (“U.S.”) generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements, and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include those related to allowance for doubtful accounts, valuation of inventories, impairment of long-lived assets, potential write-down related to investments in and advances to affiliates and notes receivable from affiliates, income taxes and accrued pension liability. Actual results could differ from those estimates.
Supplemental Non-Cash Transactions	Supplemental Non-Cash Transactions Seaboard had notes receivable from affiliates that accrued pay-in-kind interest income, primarily from one affiliate. On January 4, 2016, the interest on this note receivable was modified to eliminate future pay-in-kind interest. See Note 9 to the Condensed Consolidated Financial Statements for further discussion of this modification. Seaboard recognized $1 million and $2 million of non-cash, pay-in-kind interest income and accretion of discount for the three and six months ended July 2, 2016 , respectively, and $5 million and $9 million for the three and six months ended July 4, 2015 , respectively, related to notes receivable from affiliates.
Recently Issued Accounting Standards	Recently Issued Accounting Standards Not Yet Adopted In May 2014, the Financial Accounting Standards Board ("FASB") issued guidance to develop a single, comprehensive revenue recognition model for all contracts with customers. This guidance requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This guidance will replace most existing revenue recognition guidance in GAAP when it becomes effective. Seaboard is currently evaluating the impact this new guidance will have on its consolidated financial statements and related disclosures. Seaboard will be required to adopt this guidance on January 1, 2018, and it is currently anticipated that Seaboard will apply this guidance using the cumulative effect transition method. In July 2015, the FASB issued guidance to simplify the subsequent measurement of inventory, excluding inventory measured using last-in, first-out or the retail inventory method. Under the new standard, inventory should be at the lower of cost and net realizable value. The new guidance is effective for interim and annual periods beginning after December 15, 2016, with early adoption permitted. Seaboard believes the adoption of this guidance will not have a material impact on Seaboard’s financial position or net earnings. In January 2016, the FASB issued guidance that requires entities to measure equity investments, other than those accounted for using the equity method of accounting, at fair value and recognize any changes in fair value in net income if a readily determinable fair value exists. For equity investments without readily determinable fair values, the cost method of accounting is also eliminated. An entity may elect to record these equity investments at cost, less impairment, and plus or minus subsequent adjustments for observable price changes. The new guidance is effective for interim and annual periods beginning after December 15, 2017. Seaboard believes the adoption of this guidance will not have a material impact on Seaboard’s financial position or net earnings. In February 2016, the FASB issued guidance that a lessee should recognize in the balance sheet a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from the previous guidance. For operating leases, a lessee is required to: (1) recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the balance sheet, (2) recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis and (3) classify all cash payments within operating activities in the statement of cash flows. It is effective for public entities for fiscal years and interim periods within those years, beginning after December 15, 2018, with early adoption permitted. In transition, lessees are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach, which includes a number of optional practical expedients that entities may elect to apply. Seaboard is currently assessing the potential impact of this new standard.

Investments (Tables)

Investments (Tables)	6 Months Ended
	Jul. 02, 2016
Investments
Summary of the amortized cost and estimated fair value of short-term investments for both available-for-sale and trading securities	July 2, 2016 December 31, 2015 Amortized Fair Amortized Fair (Millions of dollars) Cost Value Cost Value Money market funds $ $ $ $ Total available-for-sale short-term investments Domestic equity securities Domestic debt securities Foreign equity securities High yield debt securities Collateralized loan obligations Money market funds held in trading accounts Other trading securities Total trading short-term investments Total short-term investments $ $ $ $

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jul. 02, 2016
Inventories
Summary of inventories	July 2, December 31, (Millions of dollars) 2016 2015 At lower of LIFO cost or market: Live hogs and materials $ $ Fresh pork and materials LIFO adjustment Total inventories at lower of LIFO cost or market At lower of FIFO cost or market: Grains, oilseeds and other commodities Sugar produced and in process Other Total inventories at lower of FIFO cost or market Grain, flour and feed at lower of weighted average cost or market Total inventories $ $

Derivatives and Fair Value of19

Derivatives and Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jul. 02, 2016
Derivatives and Fair Value of Financial Instruments
Schedule of assets and liabilities measured at fair value on a recurring basis	Balance July 2, (Millions of dollars) 2016 Level 1 Level 2 Level 3 Assets: Available-for-sale securities – short-term investments: Money market funds $ $ $ — $ — Trading securities – short term investments: Domestic equity securities — — Domestic debt securities — — Foreign equity securities — — High yield debt securities — — Collateralized loan obligations — — Money market funds held in trading accounts — — Other trading securities — — Trading securities – other current assets: Domestic equity securities — — Foreign equity securities — — Fixed income mutual funds — — Other — — Derivatives: Commodities (1) — — Foreign currencies — — Total Assets $ $ $ $ — Liabilities: Derivatives: Commodities (1) $ $ $ — $ — Interest rate swaps — — Foreign currencies — — Total Liabilities $ $ $ $ — (1) Seaboard’s commodity derivative assets and liabilities are presented in the Condensed Consolidated Balance Sheets on a net basis, including netting the derivatives with the related margin accounts. As of July 2, 2016 , the commodity derivatives had a margin account balance of $(2) million resulting in a net other current asset in the Condensed Consolidated Balance Sheet of $20 million. The following table shows assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and also the level within the fair value hierarchy used to measure each category of assets. Balance December 31, (Millions of dollars) 2015 Level 1 Level 2 Level 3 Assets: Available-for-sale securities – short-term investments: Money market funds $ $ $ — $ — Trading securities – short term investments: Domestic equity securities — — Domestic debt securities — — Foreign equity securities — — High yield debt securities — — Money market funds held in trading accounts — — Collateralized loan obligation — — Other trading securities — — Trading securities – other current assets: Domestic equity securities — — Foreign equity securities — — Fixed income mutual funds — — Other — Derivatives: Commodities (1) — — Foreign currencies — — Total Assets $ $ $ $ — Liabilities: Derivatives: Commodities (1) $ $ $ — $ — Interest rate swaps — — Total Liabilities $ $ $ $ — (1) Seaboard’s commodity derivative assets and liabilities are presented in the Condensed Consolidated Balance Sheets on a net basis, including netting the derivatives with the related margin accounts. As of December 31, 2015 , the commodity derivatives had a margin account balance of $29 million resulting in a net other current asset in the Condensed Consolidated Balance Sheet of $15 million.
Schedule of gain or (loss) recognized for each type of derivative and its location in the Condensed Consolidated Statements of Comprehensive Income	Three Months Ended Six Months Ended July 2, July 4, July 2, July 4, (Millions of dollars) 2016 2015 2016 2015 Commodities Cost of sales $ $ $ $ Foreign currencies Cost of sales Foreign currencies Foreign currency gains, net — — — Interest rate swaps Miscellaneous, net
Schedule of fair value of each type of derivative and its location in the Condensed Consolidated Balance Sheets	Asset Derivatives Liability Derivatives July 2, December 31, July 2, December 31, (Millions of dollars) 2016 2015 2016 2015 Commodities (1) Other current assets $ $ Other current liabilities $ $ Foreign currencies Other current assets Other current liabilities — Interest rate swaps Other current assets — — Other current liabilities Seaboard’s commodity derivative assets and liabilities are presented in the Condensed Consolidated Balance Sheets on a net basis, including netting the derivatives with the related margin accounts. As of July 2, 2016 and December 31, 2015 , the commodity derivatives had a margin account balance of $(2) million and $29 million, respectively, resulting in a net other current asset in the Condensed Consolidated Balance Sheets of $20 million and $15 million, respectively.

Employee Benefits (Tables)

Employee Benefits (Tables)	6 Months Ended
	Jul. 02, 2016
Employee Benefits
Schedule of net periodic benefit cost of plans	Three Months Ended Six Months Ended July 2, July 4, July 2, July 4, (Millions of dollars) 2016 2015 2016 2015 Components of net periodic benefit cost: Service cost $ $ $ $ Interest cost Expected return on plan assets Amortization and other Net periodic benefit cost $ $ $ $

Notes Payable, Long-term Debt21

Notes Payable, Long-term Debt, Commitments and Contingencies (Tables)	6 Months Ended
	Jul. 02, 2016
Notes Payable and Long-Term Debt
Summary of long-term debt	July 2, December 31, (Millions of dollars) 2016 2015 Term Loan due 2022 $ $ Foreign subsidiary obligations due 2018 through 2023 Total long-term debt at face value Current maturities of long-term debt and unamortized discount Long-term debt, less current maturities and unamortized discount $ $

Stockholders' Equity and Accu22

Stockholders' Equity and Accumulated Other Comprehensive Loss (Tables)	6 Months Ended
	Jul. 02, 2016
Stockholders' Equity and Accumulated Other Comprehensive Loss
Schedule of changes in the components of other comprehensive loss (OCL), net of related taxes	Three Months Ended Six Months Ended July 2, July 4, July 2, July 4, (Millions of dollars) 2016 2015 2016 2015 Foreign currency translation adjustment $ $ $ $ Unrealized gain on investments — — — Unrecognized pension cost (1) Other comprehensive income (loss), net of tax $ $ $ $ (1) This primarily represents the amortization of actuarial losses that were included in net periodic pension cost and was recorded in operating income. See Note 6 to the Condensed Consolidated Financial Statements for further discussion.
Schedule of components of accumulated other comprehensive loss, net of related taxes	July 2, December 31, (Millions of dollars) 2016 2015 Cumulative foreign currency translation adjustment $ $ Unrealized gain on investments Unrecognized pension cost Total accumulated other comprehensive loss $ $

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jul. 02, 2016
Schedule of allocation of preliminary purchase price	(Millions of dollars) Inventories $ Property, plant and equipment Intangible assets Goodwill Total consideration transferred $
Schedule of proforma information related to acquisition	Three months ended Six months ended July 2, July 4, July 2, July 4, (Millions of dollars except per share amounts) 2016 2015 2016 2015 Net sales $ $ $ $ Net earnings $ $ $ $ Earnings per common share $ $ $ $
Summary of specific financial information related to sales to external customers	Sales to External Customers: Three Months Ended Six Months Ended July 2, July 4, July 2, July 4, (Millions of dollars) 2016 2015 2016 2015 Pork $ $ $ $ Commodity Trading and Milling Marine Sugar Power All Other Segment/Consolidated Totals $ $ $ $
Summary of specific financial information related to operating income (loss)	Operating Income (Loss): Three Months Ended Six Months Ended July 2, July 4, July 2, July 4, (Millions of dollars) 2016 2015 2016 2015 Pork $ $ $ $ Commodity Trading and Milling Marine Sugar Power All Other — — Segment Totals Corporate Consolidated Totals $ $ $ $
Summary of specific financial information related to income (loss) from affiliates	Income (Loss) from Affiliates: Three Months Ended Six Months Ended July 2, July 4, July 2, July 4, (Millions of dollars) 2016 2015 2016 2015 Pork $ $ $ $ Commodity Trading and Milling Marine — — Sugar — — — Power — Turkey Segment/Consolidated Totals $ $ $ $
Summary of specific financial information related to total assets	Total Assets: July 2, December 31, (Millions of dollars) 2016 2015 Pork $ $ Commodity Trading and Milling Marine Sugar Power Turkey All Other Segment Totals Corporate Consolidated Totals $ $
Summary of specific financial information related to investments in and advances to affiliates	Investments in and Advances to Affiliates: July 2, December 31, (Millions of dollars) 2016 2015 Pork $ $ Commodity Trading and Milling Marine Sugar Power Turkey Segment/Consolidated Totals $ $
Butterball, LLC
Summary of specific financial information related to equity method	Three Months Ended Six Months Ended July 2, July 4, July 2, July 4, (Millions of dollars) 2016 2015 2016 2015 Net sales $ $ $ $ Operating income $ $ $ $ Net income $ $ $ $

Accounting Policies and Basis24

Accounting Policies and Basis of Presentation (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jul. 04, 2015	Jul. 02, 2016	Jul. 04, 2015
Supplemental Cash Flow Information [Abstract]
Non-cash, pay-in-kind interest income and accretion of discount recognized on a note receivable from an affiliate	$ 1	$ 5	$ 2	$ 9

Investments (Details)

Investments (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jul. 04, 2015	Jul. 02, 2016	Jul. 04, 2015	Dec. 31, 2015
Investments
Total short term investments, amortized cost	$ 1,140		$ 1,140		$ 1,269
Total short term investments, fair value	1,143		1,143		1,254
Unrealized gains (losses) on trading securities	9	$ (2)	13	$ 3
Available-for-sale securities.
Investments
Amortized Cost	2		2		81
Fair Value	2		2		81
Money market funds
Investments
Amortized Cost	2		2		81
Fair Value	2		2		81
Trading securities.
Investments
Amortized Cost	1,138		1,138		1,188
Fair Value	1,141		1,141		1,173
Domestic equity securities
Investments
Amortized Cost	474		474		475
Fair Value	484		484		466
Domestic debt securities
Investments
Amortized Cost	396		396		452
Fair Value	398		398		450
Foreign equity securities
Investments
Amortized Cost	132		132		120
Fair Value	125		125		120
High yield trading debt securities
Investments
Amortized Cost	108		108		108
Fair Value	107		107		104
Collateralized loan obligation
Investments
Amortized Cost	14		14		10
Fair Value	13		13		10
Money market funds held in trading accounts
Investments
Amortized Cost	13		13		22
Fair Value	13		13		22
Other trading securities
Investments
Amortized Cost	1		1		1
Fair Value	1		1		1
Denominated in foreign currencies | Money market funds
Investments
Fair Value	2		2		3
Denominated in foreign currencies | Foreign equity securities
Investments
Fair Value	76		76		80
Denominated in Euros | Foreign equity securities
Investments
Fair Value	23		23		25
Denominated in Japanese Yen | Foreign equity securities
Investments
Fair Value	17		17		20
Denominated in British pounds | Foreign equity securities
Investments
Fair Value	14		14		15
Denominated in Swiss Franc | Foreign equity securities
Investments
Fair Value	6		6		7
Denominated in other foreign currencies | Foreign equity securities
Investments
Fair Value	$ 16		$ 16		$ 13

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Jul. 02, 2016	Dec. 31, 2015
At lower of LIFO cost or market:
Live hogs and materials	$ 235	$ 210
Fresh pork and materials	29	26
Inventories at lower of LIFO cost or market, Gross	264	236
LIFO adjustment	(28)	(28)
Total inventories at lower of LIFO cost or market	236	208
At lower of FIFO cost or market:
Grains, oilseeds and other commodities	241	330
Sugar produced and in process	43	52
Other	61	61
Total inventories at lower of FIFO cost or market	345	443
Grain, flour and feed at lower of weighted average cost or market	78	88
Total inventories	$ 659	$ 739

Derivatives and Fair Value of27

Derivatives and Fair Value of Financial Instruments-Deferred Comp Securities (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jul. 02, 2016	Dec. 31, 2015
Assets and liabilities measured at fair value on a recurring basis and also its level within the fair value hierarchy
Transfers that occurred into or out of level 1	$ 0	$ 0
Transfers that occurred into or out of level 2	0	0
Transfers that occurred into or out of level 3	0	0
Commodities
Assets:
Margin account	(2)	29
Money market funds
Assets:
Available-for-sale securities	2	81
Domestic equity securities
Assets:
Trading securities	484	466
Domestic debt securities
Assets:
Trading securities	398	450
Foreign equity securities
Assets:
Trading securities	125	120
High yield trading debt securities
Assets:
Trading securities	107	104
Collateralized loan obligation
Assets:
Trading securities	13	10
Money market funds held in trading accounts
Assets:
Trading securities	13	22
Other trading securities
Assets:
Trading securities	1	1
Recurring basis | Fair Value
Assets:
Total Assets	1,220	1,309
Liabilities:
Liabilities	27	24
Recurring basis | Fair Value | Commodities
Assets:
Derivatives	36	4
Margin account	(2)	29
Liabilities:
Derivatives	14	18
Recurring basis | Fair Value | Interest rate swaps
Liabilities:
Derivatives	7	6
Recurring basis | Fair Value | Foreign currencies
Assets:
Derivatives	2	8
Liabilities:
Derivatives	6
Recurring basis | Fair Value | Other current assets | Commodities
Assets:
Derivative assets and liabilities, net basis	20	15
Recurring basis | Fair Value | Money market funds | Short-term investments.
Assets:
Available-for-sale securities	2	81
Recurring basis | Fair Value | Domestic equity securities | Short-term investments.
Assets:
Trading securities	484	466
Recurring basis | Fair Value | Domestic equity securities | Other current assets
Assets:
Trading securities	30	31
Recurring basis | Fair Value | Domestic debt securities | Short-term investments.
Assets:
Trading securities	398	450
Recurring basis | Fair Value | Foreign equity securities | Short-term investments.
Assets:
Trading securities	125	120
Recurring basis | Fair Value | Foreign equity securities | Other current assets
Assets:
Trading securities	4	5
Recurring basis | Fair Value | High yield trading debt securities | Short-term investments.
Assets:
Trading securities	107	104
Recurring basis | Fair Value | Collateralized loan obligation | Short-term investments.
Assets:
Trading securities	13	10
Recurring basis | Fair Value | Money market funds held in trading accounts | Short-term investments.
Assets:
Trading securities	13	22
Recurring basis | Fair Value | Other trading securities | Short-term investments.
Assets:
Trading securities	1	1
Recurring basis | Fair Value | Other | Other current assets
Assets:
Trading securities	2	3
Recurring basis | Fair Value | Fixed income mutual funds | Other current assets
Assets:
Trading securities	3	4
Recurring basis | Level 1
Assets:
Total Assets	1,098	1,185
Liabilities:
Liabilities	14	18
Recurring basis | Level 1 | Commodities
Assets:
Derivatives	36	4
Liabilities:
Derivatives	14	18
Recurring basis | Level 1 | Money market funds | Short-term investments.
Assets:
Available-for-sale securities	2	81
Recurring basis | Level 1 | Domestic equity securities | Short-term investments.
Assets:
Trading securities	484	466
Recurring basis | Level 1 | Domestic equity securities | Other current assets
Assets:
Trading securities	30	31
Recurring basis | Level 1 | Domestic debt securities | Short-term investments.
Assets:
Trading securities	398	450
Recurring basis | Level 1 | Foreign equity securities | Short-term investments.
Assets:
Trading securities	125	120
Recurring basis | Level 1 | Foreign equity securities | Other current assets
Assets:
Trading securities	4	5
Recurring basis | Level 1 | Money market funds held in trading accounts | Short-term investments.
Assets:
Trading securities	13	22
Recurring basis | Level 1 | Other trading securities | Short-term investments.
Assets:
Trading securities	1
Recurring basis | Level 1 | Other | Other current assets
Assets:
Trading securities	2	2
Recurring basis | Level 1 | Fixed income mutual funds | Other current assets
Assets:
Trading securities	3	4
Recurring basis | Level 2
Assets:
Total Assets	122	124
Liabilities:
Liabilities	13	6
Recurring basis | Level 2 | Interest rate swaps
Liabilities:
Derivatives	7	6
Recurring basis | Level 2 | Foreign currencies
Assets:
Derivatives	2	8
Liabilities:
Derivatives	6
Recurring basis | Level 2 | High yield trading debt securities | Short-term investments.
Assets:
Trading securities	107	104
Recurring basis | Level 2 | Collateralized loan obligation | Short-term investments.
Assets:
Trading securities	$ 13	10
Recurring basis | Level 2 | Other trading securities | Short-term investments.
Assets:
Trading securities		1
Recurring basis | Level 2 | Other | Other current assets
Assets:
Trading securities		$ 1

Derivatives and Fair Value of28

Derivatives and Fair Value of Financial Instruments-Derivatives (Details) lb in Millions, gal in Millions, bu in Millions, $ in Millions	3 Months Ended	6 Months Ended	12 Months Ended		24 Months Ended
	Apr. 02, 2016USD ($)item	Jul. 02, 2016USD ($)agreementlbgalbu	Dec. 31, 2015USD ($)agreementlbbu	Dec. 31, 2010USD ($)agreement	Dec. 31, 2015USD ($)agreement
Net commodity purchase contracts | Grain
Derivative commodity instruments
Nonmonetary notional amount | bu		13	22
Net commodity purchase contracts | Sugar
Derivative commodity instruments
Nonmonetary notional amount			3
Net commodity purchase contracts | Hogs
Derivative commodity instruments
Nonmonetary notional amount			25
Net commodity purchase contracts | Soybean oil
Derivative commodity instruments
Nonmonetary notional amount		31
Net commodity sale contracts | Hogs
Derivative commodity instruments
Nonmonetary notional amount		77
Net commodity sale contracts | Soybean oil
Derivative commodity instruments
Nonmonetary notional amount			8
Net commodity sale contracts | Heating oil
Derivative commodity instruments
Nonmonetary notional amount | gal		5
Foreign currencies
Derivative commodity instruments
Notional amounts | $		$ 45	$ 94		$ 94
Interest rate swaps
Derivative commodity instruments
Notional amounts | $		$ 75	$ 119	$ 25	$ 119
Number of derivative agreements | agreement		3	5	3	5
Term of derivative contract				10 years
Eight-year interest rate exchange agreements
Derivative commodity instruments
Notional amounts | $			$ 22		$ 22
Number of derivative instruments entered into | agreement					4
Number of derivative agreements | agreement			2		2
Term of derivative contract					8 years
Number of bulk vessels delivered | item	2
Payments to unwind interest rate exchange agreements | $	$ 2

Derivatives and Fair Value of29

Derivatives and Fair Value of Financial Instruments-Counterparty Risk (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2016USD ($)item	Jul. 04, 2015USD ($)	Jul. 02, 2016USD ($)item	Jul. 04, 2015USD ($)
Commodities | Cost of sales
Amount of gain or (loss) recognized for each type of derivative and its location in the Consolidated Statements of Comprehensive Income
Amount of Gain or (Loss) Recognized in Income on Derivatives	$ 31	$ 4	$ 31	$ (2)
Foreign currencies
Amount of gain or (loss) recognized for each type of derivative and its location in the Consolidated Statements of Comprehensive Income
Loss due to credit risk associated with derivative contracts			$ 2
Number of counterparties | item	3		3
Foreign currencies | Cost of sales
Amount of gain or (loss) recognized for each type of derivative and its location in the Consolidated Statements of Comprehensive Income
Amount of Gain or (Loss) Recognized in Income on Derivatives	$ (1)	2	$ (13)	1
Foreign currencies | Foreign currency
Amount of gain or (loss) recognized for each type of derivative and its location in the Consolidated Statements of Comprehensive Income
Amount of Gain or (Loss) Recognized in Income on Derivatives				2
Interest rate swaps
Amount of gain or (loss) recognized for each type of derivative and its location in the Consolidated Statements of Comprehensive Income
Loss due to credit risk associated with derivative contracts			0
Interest rate swaps | Miscellaneous, net
Amount of gain or (loss) recognized for each type of derivative and its location in the Consolidated Statements of Comprehensive Income
Amount of Gain or (Loss) Recognized in Income on Derivatives	$ (1)	$ 4	$ (4)	$ (1)

Derivatives and Fair Value of30

Derivatives and Fair Value of Financial Instruments-Derivatives Fair Value (Details) - USD ($) $ in Millions	Jul. 02, 2016	Dec. 31, 2015
Commodities
Fair value of each type of derivative and its location in the Consolidated Balance Sheets
Margin account	$ (2)	$ 29
Commodities | Other current assets
Fair value of each type of derivative and its location in the Consolidated Balance Sheets
Asset Derivatives	36	4
Derivative assets and liabilities, net basis	20	15
Commodities | Other current liabilities
Fair value of each type of derivative and its location in the Consolidated Balance Sheets
Liability Derivatives	14	18
Foreign currencies | Other current assets
Fair value of each type of derivative and its location in the Consolidated Balance Sheets
Asset Derivatives	2	8
Foreign currencies | Other current liabilities
Fair value of each type of derivative and its location in the Consolidated Balance Sheets
Liability Derivatives	6
Interest rate swaps | Other current liabilities
Fair value of each type of derivative and its location in the Consolidated Balance Sheets
Liability Derivatives	$ 7	$ 6

Employee Benefits (Details)

Employee Benefits (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2016USD ($)plan	Jul. 04, 2015USD ($)	Jul. 02, 2016USD ($)plan	Jul. 04, 2015USD ($)
Components of net periodic benefit cost:
Service cost	$ 2	$ 3	$ 4	$ 5
Interest cost	3	2	6	5
Expected return on plan assets	(2)	(2)	(4)	(4)
Amortization and other	1	1	2	2
Net periodic benefit cost	$ 4	$ 4	$ 8	$ 8
Defined benefit pension plan
Target allocation and pension plan asset allocation
Number of defined benefit plans | plan	2		2
Contributions expected to be made to defined benefit pension plans			$ 0

Notes Payable, Long-term Debt32

Notes Payable, Long-term Debt, Commitments and Contingencies (Details) $ in Millions	Jul. 02, 2015item	Apr. 29, 2015item	Oct. 17, 2014item	Sep. 18, 2014item	Jul. 02, 2016USD ($)item	Apr. 02, 2016USD ($)	Dec. 31, 2015USD ($)	Sep. 19, 2012item
Debt Instrument
Total long-term debt at face value					$ 521		$ 523
Current maturities of long-term debt and unamortized discount					(14)		(5)
Long-term debt, less current maturities and unamortized discount					$ 507		518
Contingencies
Number of foreign companies, where records requested by court | item		37
Number of individuals, where records requested by court | item		5	1	1
Number of entities, where records requested by court | item			8	9
Number of subpoenas | item	2
Number of search warrants executed authorizing the seizure of certain records from Seaboard's offices in Merriam, Kansas and at the Seaboard Foods employment office and the human resources department in Guymon, Oklahoma. | item								3
Number of civil or criminal proceedings or charges filed | item					0
Pork Processing Plant In Sioux City Iowa
Commitments
Agreed contribution						$ 150	$ 207
Remainder of 2016					$ 33
Contractual Obligation, Due in Second Year					$ 73
Seaboard Triumph Foods | Pork
Commitments
Percentage of ownership							50.00%
Notes payable to bank
Debt Instrument
Weighted average interest rate (as a percent)					14.53%		11.74%
Uncommitted bank lines
Debt Instrument
Maximum capacity					$ 379
Letters of credit outstanding					4
Term loan due 2022
Debt Instrument
Total long-term debt at face value					$ 500		$ 500
Effective interest rate (as a percent)					2.07%		1.90%
Foreign subsidiary obligations due 2020 through 2023
Debt Instrument
Total long-term debt at face value					$ 21		$ 23
Effective interest rate (as a percent)					24.05%		30.23%
Foreign subsidiaries | Uncommitted bank lines
Debt Instrument
Notes payable to banks					$ 104
Maximum capacity					329
Foreign subsidiaries | South African Rand
Debt Instrument
Notes payable to banks					78
Foreign subsidiaries | Argentine pesos
Debt Instrument
Notes payable to banks					13
Foreign subsidiaries | Zambian kwacha
Debt Instrument
Notes payable to banks					$ 13

Stockholders' Equity and Accu33

Stockholders' Equity and Accumulated Other Comprehensive Loss (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2012	Jul. 02, 2016	Jul. 04, 2015	Jul. 02, 2016	Jul. 04, 2015	Dec. 31, 2012	Dec. 31, 2015
Stockholders' Equity and Accumulated Other Comprehensive Loss
Stock repurchase programs, authorized amount		$ 100		$ 100
Common stock dividend declared and paid (in dollars per share)	$ 12
Common stock dividend historical amount on a quarterly basis (in dollars per share)						$ 0.75
Common stock dividend historical amount on annual basis (in dollars per share)						$ 3
Portion of dividend serving as prepayment for next succeeding year (in dollars per share)	3
Portion of dividend serving as prepayment for second succeeding year (in dollars per share)	3
Portion of dividend serving as prepayment for third succeeding year (in dollars per share)	3
Portion of dividend serving as prepayment for fourth succeeding year (in dollars per share)	$ 3
Changes in the components of other comprehensive loss (OCL), net of related taxes
Foreign currency translation adjustment		10	$ (9)	(16)	$ (15)
Unrealized gain (loss) on investments					1
Unrecognized pension cost		1	1	2	2
Other comprehensive income (loss), net of tax		11	(8)	(14)	(12)
Components of accumulated other comprehensive loss, net of related taxes
Accumulated other comprehensive loss		(292)		(292)			$ (278)
Argentine pesos | Sugar
Components of accumulated other comprehensive loss, net of related taxes
Other comprehensive loss recognized related to devaluation of foreign currency				18
Net assets		98		98
U.S. dollars | Sugar
Components of accumulated other comprehensive loss, net of related taxes
Net assets		12		12
Certain subsidiaries
Components of accumulated other comprehensive loss, net of related taxes
Cumulative foreign currency translation adjustment, net of related taxes		86	67	86	67
Tax benefit recorded on foreign currency translation adjustments				0	0
Unrecognized pension cost related to employees at certain subsidiaries		18	$ 19	18	19
Tax benefit recorded on unrecognized pension cost				0	$ 0
Cumulative foreign currency translation adjustment
Components of accumulated other comprehensive loss, net of related taxes
Accumulated other comprehensive loss		(244)		(244)			(228)
Unrealized gain on investments
Components of accumulated other comprehensive loss, net of related taxes
Accumulated other comprehensive loss		1		1			1
Unrecognized pension cost
Components of accumulated other comprehensive loss, net of related taxes
Accumulated other comprehensive loss		$ (49)		$ (49)			$ (51)
Cumulative foreign currency translation adjustment.
Components of accumulated other comprehensive loss, net of related taxes
Effective income tax rate (as a percent)				35.00%	35.00%
All components of AOCL except cumulative foreign currency translation adjustments
Components of accumulated other comprehensive loss, net of related taxes
Effective income tax rate (as a percent)				39.00%	39.00%

Segment Information-Acquisition

Segment Information-Acquisition (Details) $ / shares in Units, $ in Millions	Feb. 07, 2016USD ($)	Jul. 02, 2016USD ($)$ / shares	Jul. 04, 2015USD ($)$ / shares	Jul. 02, 2016USD ($)segment$ / shares	Jul. 04, 2015USD ($)$ / shares
Segment Information
Number of reportable segments | segment				6
Acquisition of business, cash consideration				$ 148
Christensen Farms & Feedlots, Inc. and Christensen Farms Midwest, LLC, Assets
Unaudited pro forma information:
Net sales		$ 1,357	$ 1,469	2,692	$ 2,958
Net earnings		$ 80	$ 36	$ 135	$ 68
Earnings per common share | $ / shares		$ 68.34	$ 30.46	$ 114.25	$ 57.71
Christensen Farms & Feedlots, Inc. and Christensen Farms Midwest, LLC, Assets | Pork
Segment Information
Acquisition of business, cash consideration	$ 148
Preliminary purchase price allocation
Inventories	33
Property, plant and equipment	111
Intangible assets	1
Goodwill	3
Total consideration transferred	148
Net sales from the date of acquisition		$ 34		$ 54
Christensen Farms & Feedlots, Inc. and Christensen Farms Midwest, LLC, Assets | Pork | Maximum
Preliminary purchase price allocation
Acquisition costs	$ 1
Christensen Farms & Feedlots, Inc. and Christensen Farms Midwest, LLC, Assets | Pork | Customer relationships
Preliminary purchase price allocation
Weighted average useful life (in years)	1 year 7 months 6 days

Segment Information-DRC (Detail

Segment Information-DRC (Details) - USD ($) $ in Millions	3 Months Ended
	Jul. 02, 2016	Dec. 31, 2014	Dec. 31, 2015
Segment Information
Notes receivable from affiliates, net	$ 197		$ 200
Total investment in affiliate	742		671
Democratic Republic of Congo
Segment Information
Total investment in affiliate	50
Commodity Trading and Milling
Segment Information
Total investment in affiliate	$ 207		$ 218
Commodity Trading and Milling | Democratic Republic of Congo
Segment Information
Percentage of ownership interest accounted as equity method investment	50.00%
Bakery business | Commodity Trading and Milling | Democratic Republic of Congo
Segment Information
Write-down in investment		$ 11
Tax benefit from transaction		$ 0
Reserve recorded in bad debt expense	$ 11
Notes receivable from affiliates, net	24
Tax benefit on recording a reserve in bad debt expense	$ 0
Period of extension of note receivable	18 months

Segment Information-Flour Produ

Segment Information-Flour Production (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended	33 Months Ended
	Sep. 28, 2013	Jul. 02, 2016	Jul. 04, 2015	Jul. 02, 2016	Jul. 04, 2015	Dec. 31, 2015	Jul. 02, 2016	Dec. 31, 2013
Segment Information
Notes receivable from affiliates, net		$ 197		$ 197		$ 200	$ 197
Amount contributed as additional equity to provide additional working capital to equity method investee				37	$ 50
Income from affiliates		11	$ 12	33	23
Foreign currency translation adjustment		10	(9)	(16)	(15)
Total investment in affiliate		742		742		671	742
Commodity Trading and Milling
Segment Information
Income from affiliates		(11)	$ (16)	(15)	$ (25)
Total investment in affiliate		$ 207		$ 207		218	$ 207
Flour production business | Commodity Trading and Milling | Long-term note receivable
Segment Information
Interest received in cash (as a percent)	50.00%
Interest receivable in kind (as a percent)	50.00%
Flour production business | Commodity Trading and Milling | Brazil
Segment Information
Percentage of ownership interest accounted as equity method investment		50.00%		50.00%			50.00%
Amount invested for acquiring non-controlling interest							$ 63
Amount contributed as additional equity to provide additional working capital to equity method investee		$ 13		$ 14
Income from affiliates		(11)		(12)
Foreign currency translation adjustment		(2)		$ (2)
Ownership percentage of other shareholder of equity method investment				50.00%
Existing third party debt		19		$ 19		16	19
Reserve on remaining portion of advances and long-term notes receivable						22
Total investment in affiliate		0		0			0
Advance balance		0		0			0
Due from affiliates		$ 21		$ 21		17	$ 21
Bad debt expense for receivable from affiliates						$ 9
Flour production business | Commodity Trading and Milling | Brazil | Long-term note receivable
Segment Information
Notes receivable from affiliates, net								$ 13

Segment Information-CT&M and Ma

Segment Information-CT&M and Marine (Details) $ in Millions	3 Months Ended	6 Months Ended
	Apr. 02, 2016USD ($)project	Jul. 02, 2016USD ($)	Dec. 31, 2015USD ($)
Segment Information
Notes receivable from affiliates, net		$ 197	$ 200
Commodity Trading and Milling | Peru | Long-term note receivable
Segment Information
Notes receivable from affiliates, net	$ 12	$ 6
Holding company owning interest in Haitian port project | Marine
Segment Information
Amount invested under equity method	7
Amount of note converted to equity	$ 8
Percentage of ownership interest accounted as equity method investment	36.00%
Time lag for reporting financial information of certain foreign subsidiaries and affiliates		3 months
Holding company owning interest in Haitian port project | Marine | Haiti
Segment Information
Number of projects a controlling interest is held in | project	2

Segment Information-Power (Deta

Segment Information-Power (Details) - Power - Electricity generating facility - Dominican Republic $ in Millions	3 Months Ended
	Jul. 04, 2015USD ($)MW
Segment Information
Amount invested under equity method | $	$ 10
Capacity of power facility (in megawatts) | MW	300

Segment Information -Turkey (De

Segment Information -Turkey (Details) - Butterball, LLC - USD ($) $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Dec. 31, 2010	Jul. 02, 2016	Jul. 04, 2015	Jul. 02, 2016	Jul. 04, 2015	Jan. 30, 2016	Dec. 31, 2015
Segment Information
Net sales		$ 391	$ 390	$ 776	$ 788
Operating income		44	51	89	94
Net income		34	$ 44	72	$ 76
Turkey
Segment Information
Total assets		$ 1,146		$ 1,146			$ 1,087
Subordinated loan
Segment Information
Loan provided to affiliate	$ 100
Maturity period of unsecured subordinated loan provided	7 years
Interest rate on loan provided (as a percent)	15.00%
Interest rate on loan provided, portion payable in cash (as a percent)	5.00%					10.00%
Interest rate on loan provided, portion pay-in-kind (as a percent)	10.00%
Detachable warrants
Segment Information
Additional equity interest that can be acquired upon exercise of warrants (as a percent)	5.00%

Segment Information-Information

Segment Information-Information by Segment (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jul. 04, 2015	Jul. 02, 2016	Jul. 04, 2015	Dec. 31, 2015
Segment Information
Sales to External Customers:	$ 1,357	$ 1,428	$ 2,676	$ 2,880
Operating Income (Loss):	76	32	112	60
Income (Loss) from Affiliates:	11	12	33	23
Total Assets:	4,427		4,427		$ 4,431
Investment in and Advances to Affiliates:	742		742		671
Pork
Segment Information
Sales to External Customers:	359	331	687	652
Operating Income (Loss):	50	19	79	35
Income (Loss) from Affiliates:	4	4	7	6
Investment in and Advances to Affiliates:	146		146		115
Commodity Trading and Milling
Segment Information
Sales to External Customers:	707	779	1,416	1,599
Operating Income (Loss):	19	8	28	12
Income (Loss) from Affiliates:	(11)	(16)	(15)	(25)
Investment in and Advances to Affiliates:	207		207		218
Marine
Segment Information
Sales to External Customers:	232	242	459	479
Operating Income (Loss):	7	5	10	12
Income (Loss) from Affiliates:			1	1
Investment in and Advances to Affiliates:	35		35		19
Sugar
Segment Information
Sales to External Customers:	36	45	69	90
Operating Income (Loss):	2	1	2	5
Income (Loss) from Affiliates:			1
Investment in and Advances to Affiliates:	3		3		3
Power
Segment Information
Sales to External Customers:	19	28	36	53
Operating Income (Loss):	2	4	2	7
Income (Loss) from Affiliates:		1	1	1
Investment in and Advances to Affiliates:	35		35		34
Turkey
Segment Information
Income (Loss) from Affiliates:	18	23	38	40
Investment in and Advances to Affiliates:	316		316		282
All Other
Segment Information
Sales to External Customers:	4	3	9	7
Operating Income (Loss):	1		1
Segment Totals
Segment Information
Operating Income (Loss):	81	37	122	71
Total Assets:	3,106		3,106		3,069
Segment Totals | Pork
Segment Information
Total Assets:	1,026		1,026		858
Segment Totals | Commodity Trading and Milling
Segment Information
Total Assets:	903		903		988
Segment Totals | Marine
Segment Information
Total Assets:	313		313		296
Segment Totals | Sugar
Segment Information
Total Assets:	176		176		202
Segment Totals | Power
Segment Information
Total Assets:	199		199		271
Segment Totals | Turkey
Segment Information
Total Assets:	483		483		448
Segment Totals | All Other
Segment Information
Total Assets:	6		6		6
Corporate Items
Segment Information
Operating Income (Loss):	(5)	$ (5)	(10)	$ (11)
Total Assets:	$ 1,321		$ 1,321		$ 1,362