Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 01, 2016 | Oct. 28, 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 | Oct. 1, 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 | Q3 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Net sales: | ||||
Products (includes sales to affiliates of $261, $241, $697 and $665) | $ 1,070 | $ 1,139 | $ 3,230 | $ 3,464 |
Services (includes sales to affiliates of $0, $0, $1 and $0) | 237 | 243 | 716 | 744 |
Other | 23 | 29 | 60 | 83 |
Total net sales | 1,330 | 1,411 | 4,006 | 4,291 |
Cost of sales and operating expenses: | ||||
Products | 1,006 | 1,077 | 2,977 | 3,277 |
Services | 198 | 223 | 619 | 666 |
Other | 18 | 21 | 51 | 65 |
Total cost of sales and operating expenses | 1,222 | 1,321 | 3,647 | 4,008 |
Gross income | 108 | 90 | 359 | 283 |
Selling, general and administrative expenses | 66 | 67 | 205 | 200 |
Operating income | 42 | 23 | 154 | 83 |
Other income (expense): | ||||
Interest expense | (7) | (4) | (23) | (12) |
Interest income | 7 | 2 | 11 | 8 |
Interest income from affiliates | 6 | 7 | 18 | 21 |
Income from affiliates | 21 | 16 | 54 | 39 |
Other investment income (loss), net | 29 | (26) | 42 | (22) |
Foreign currency gains, net | 1 | 10 | 2 | |
Miscellaneous, net | 1 | (5) | (1) | (7) |
Total other income (loss), net | 58 | (10) | 111 | 29 |
Earnings before income taxes | 100 | 13 | 265 | 112 |
Income tax expense | (25) | (10) | (55) | (44) |
Net earnings | 75 | 3 | 210 | 68 |
Less: Net income attributable to noncontrolling interests | (1) | |||
Net earnings attributable to Seaboard | $ 75 | $ 3 | $ 209 | $ 68 |
Earnings per common share | $ 64.42 | $ 2.59 | $ 178.67 | $ 57.73 |
Other comprehensive income (loss), net of income tax benefit of $1, $1, $9 and $2 | ||||
Foreign currency translation adjustment | $ (7) | $ (7) | $ (23) | $ (22) |
Unrealized gain on investments | 1 | 1 | 1 | |
Unrecognized pension cost | 1 | 2 | 3 | |
Other comprehensive income (loss), net of tax | (6) | (6) | (20) | (18) |
Comprehensive income (loss) | 69 | (3) | 190 | 50 |
Less: Comprehensive income attributable to noncontrolling interests | (1) | |||
Comprehensive income (loss) attributable to Seaboard | $ 69 | $ (3) | $ 189 | $ 50 |
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 | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Other comprehensive income (loss), income tax benefit (expense) | $ 1 | $ 1 | $ 9 | $ 2 |
Products | ||||
Sales to affiliates | 261 | 241 | 697 | 665 |
Services | ||||
Sales to affiliates | $ 0 | $ 0 | $ 1 | $ 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Oct. 01, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 113 | $ 50 |
Short-term investments | 1,180 | 1,254 |
Receivables, net | 451 | 510 |
Inventories | 779 | 739 |
Other current assets | 104 | 111 |
Total current assets | 2,627 | 2,664 |
Net property, plant and equipment | 978 | 831 |
Investments in and advances to affiliates | 756 | 671 |
Notes receivable from affiliates, net | 192 | 200 |
Other non-current assets | 90 | 65 |
Total assets | 4,643 | 4,431 |
Current liabilities: | ||
Notes payable to banks | 129 | 141 |
Current maturities of long-term debt | 17 | 4 |
Accounts payable | 213 | 239 |
Deferred revenue | 106 | 93 |
Other current liabilities | 328 | 289 |
Total current liabilities | 793 | 766 |
Long-term debt, less current maturities | 503 | 518 |
Deferred income taxes | 66 | 41 |
Other liabilities and deferred credits | 203 | 224 |
Total non-current liabilities | 772 | 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 | (298) | (278) |
Retained earnings | 3,363 | 3,153 |
Total Seaboard stockholders' equity | 3,066 | 2,876 |
Noncontrolling interests | 12 | 6 |
Total equity | 3,078 | 2,882 |
Total liabilities and stockholders' equity | $ 4,643 | $ 4,431 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Oct. 01, 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 | 9 Months Ended | |
Oct. 01, 2016 | Oct. 03, 2015 | |
Cash flows from operating activities: | ||
Net earnings | $ 210 | $ 68 |
Adjustments to reconcile net earnings to cash from operating activities: | ||
Depreciation and amortization | 74 | 69 |
Deferred income taxes | 34 | (33) |
Pay-in-kind interest and accretion on notes receivable from affiliates | (2) | (13) |
Income from affiliates | (54) | (39) |
Dividends received from affiliates | 31 | 36 |
Other investment loss (income), net | (42) | 22 |
Other, net | 15 | 2 |
Changes in assets and liabilities, net of acquisition: | ||
Receivables, net of allowance | 42 | 177 |
Inventories | (14) | 30 |
Other current assets | 7 | (9) |
Current liabilities, exclusive of debt | 26 | 40 |
Other, net | (28) | 16 |
Net cash from operating activities | 299 | 366 |
Cash flows from investing activities: | ||
Purchase of short-term investments | (353) | (675) |
Proceeds from the sale of short-term investments | 461 | 434 |
Proceeds from the maturity of short-term investments | 19 | 24 |
Capital expenditures | (128) | (96) |
Proceeds from the sale of fixed assets | 46 | 24 |
Acquisition of business | (214) | |
Investments in and advances to affiliates, net | (55) | (78) |
Long-term notes receivable issued to affiliates | (12) | |
Principal payments received on long-term notes receivable from affiliates | 12 | |
Purchase of long-term investments | (19) | (26) |
Other, net | 8 | 7 |
Net cash from investing activities | (235) | (386) |
Cash flows from financing activities: | ||
Notes payable to banks, net | (2) | 33 |
Proceeds from long-term debt | 2 | |
Principal payments of long-term debt | (1) | |
Net cash from financing activities | (1) | 33 |
Net change in cash and cash equivalents | 63 | 13 |
Cash and cash equivalents at beginning of year | 50 | 36 |
Cash and cash equivalents at end of period | $ 113 | $ 49 |
Accounting Policies and Basis o
Accounting Policies and Basis of Presentation | 9 Months Ended |
Oct. 01, 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 as discussed in Note 9 to the Condensed Consolidated Financial Statements. Seaboard recognized less than $1 million of non-cash accretion of discount and $2 million of non-cash, pay-in-kind interest income and accretion of discount for the three and nine months ended October 1, 2016, respectively, and $4 million and $13 million for the three and nine months ended October 3, 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 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 | 9 Months Ended |
Oct. 01, 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 October 1, 2016 and December 31, 2015. October 1, 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 $91 million of equity securities denominated in foreign currencies at October 1, 2016, with $34 million in euros, $19 million in Japanese yen, $15 million in British pounds, $7 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 less than $1 million and $3 million denominated in various foreign currencies at October 1, 2016 and December 31, 2015, respectively. Unrealized gains (losses) related to trading securities were $27 million and $41 million for the three and nine months ended October 1, 2016, respectively, and $(22) million and $(21) million for the three and nine months ended October 3, 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 | 9 Months Ended |
Oct. 01, 2016 | |
Inventories | |
Inventories | Note 3 – Inventories The following is a summary of inventories at October 1, 2016 and December 31, 2015: October 1, 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 | 9 Months Ended |
Oct. 01, 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 nine months ended October 1, 2016. |
Derivatives and Fair Value of F
Derivatives and Fair Value of Financial Instruments | 9 Months Ended |
Oct. 01, 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 October 1, 2016 and also the level within the fair value hierarchy used to measure each category of assets and liabilities. Seaboard determines if there are any transfers between levels at the end of a reporting period. There were no transfers between levels that occurred in the first nine months of 2016. The trading securities classified as other current assets below are assets held for Seaboard’s deferred compensation plans. Balance October 1, (Millions of dollars) 2016 Level 1 Level 2 Level 3 Assets: 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 — — 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 October 1, 2016, the commodity derivatives had a margin account balance of $17 million resulting in a net other current asset in the Condensed Consolidated Balance Sheet of $14 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 and liabilities. 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 short-term investments at October 1, 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. As 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 October 1, 2016, Seaboard had open net derivative contracts to purchase 20 million bushels of grain, 14 million pounds of hogs and 12 million pounds of soybean 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 October 1, 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 $60 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, with an aggregate notional amount of $44 million. 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. At October 1, 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 October 1, 2016, Seaboard had a maximum amount of loss due to credit risk in the amount of $1 million with three counterparties related to foreign currency 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 nine months ended October 1, 2016 and October 3, 2015. Three Months Ended Nine Months Ended October 1, October 3, October 1, October 3, (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 October 1, 2016 and December 31, 2015 and where each derivative is included in the Condensed Consolidated Balance Sheets. Asset Derivatives Liability Derivatives October 1, December 31, October 1, 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 October 1, 2016 and December 31, 2015, the commodity derivatives had a margin account balance of $17 million and $29 million, respectively, resulting in a net other current asset in the Condensed Consolidated Balance Sheets of $14 million and $15 million, respectively. |
Employee Benefits
Employee Benefits | 9 Months Ended |
Oct. 01, 2016 | |
Employee Benefits | |
Employee Benefits | Note 6 – Employee Benefits Seaboard maintains two defined benefit pension plans for its domestic salaried and clerical employees. During the third quarter of 2016, Seaboard completed future funding analyses for these plans, and in September 2016 made a deductible contribution of $39 million to one of the pension plans for the 2015 plan year. At this time, no further 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 Nine Months Ended October 1, October 3, October 1, October 3, (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 | 9 Months Ended |
Oct. 01, 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 Of the $129 million of notes payable outstanding at October 1, 2016, $106 million are related to foreign subsidiaries, with $90 million denominated in South African rand, $11 million denominated in Argentine pesos and $5 million denominated in Zambian kwacha. The weighted average interest rate for outstanding notes payable was 10.21% and 11.74% at October 1, 2016 and December 31, 2015, respectively. As of October 1, 2016, Seaboard had uncommitted bank lines totaling $381 million, of which $331 million related to foreign subsidiaries. The notes payable under the credit lines are unsecured and do not require compensating balances. On September 30, 2016, Seaboard entered into a $100 million committed bank line with Wells Fargo Bank, National Association (“Wells Fargo”) that matures on September 29, 2017. Interest is computed at LIBOR plus 0.50% and Seaboard incurs an unused commitment fee of 0.09% per annum. This bank line is secured by certain short-term investments. The line of credit is subject to standard representations and covenants. There was no outstanding balance as of October 1, 2016. Seaboard’s borrowing capacity under its committed and uncommitted lines was reduced by $129 million drawn under the uncommitted lines and letters of credit totaling $4 million as of October 1, 2016. Long-term Debt The following is a summary of long-term debt: October 1, 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 2.14% and 1.90% at October 1, 2016 and December 31, 2015, respectively. The weighted average interest rate on Seaboard’s foreign subsidiary obligations was 23.82% and 30.23% at October 1, 2016 and December 31, 2015, respectively. Seaboard was in compliance with all restrictive debt covenants relating to these agreements as of October 1, 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 October 1, 2016, $15 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 October 1, 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 | 9 Months Ended |
Oct. 01, 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 October 1, 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 nine months ended October 1, 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 is currently evaluating whether to declare a dividend for 2017, although no assurance can be given as to whether or when any dividend would be declared and paid, or as to the amount of any dividend. The changes in the components of other comprehensive income (loss), net of related taxes, are as follows: Three Months Ended Nine Months Ended October 1, October 3, October 1, October 3, (Millions of dollars) 2016 2015 2016 2015 Foreign currency translation adjustment $ $ $ $ Unrealized gain on investments — Unrecognized pension cost (1) — Other comprehensive 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: October 1, 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 nine months ended October 1, 2016, Seaboard recognized $22 million of other comprehensive loss, net of related taxes, related to the devaluation of the Argentine peso. At October 1, 2016, the Sugar segment had $96 million in net assets denominated in Argentine pesos and net assets denominated in U.S. dollars were less than $1 million. 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 October 1, 2016 and October 3, 2015, income taxes for the cumulative foreign currency translation adjustment was recorded using a 35% effective tax rate except for $87 million and $72 million, respectively, related to certain subsidiaries for which no tax benefit was recorded. At October 1, 2016 and October 3, 2015, income taxes for all other components of accumulated other comprehensive loss were recorded using a 39% effective tax 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 | 9 Months Ended |
Oct. 01, 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 September 1, 2016, Seaboard’s Pork segment acquired certain assets of Texas Farm LLC for total cash consideration of $59 million. Texas Farm LLC was a hog growing operation with hog inventory, hog farms and a feed mill located in Texas. The additional hog production will allow Seaboard to expand and realign its hog production in other states to supply the Guymon, Oklahoma, pork processing plant and the Seaboard Triumph Foods processing plant located in Sioux City, Iowa, scheduled to begin operations in mid-2017. The purchase was recorded at fair value in Seaboard’s Pork segment and the allocation of the preliminary purchase price was as follows. Goodwill is primarily attributable to workforce and the benefits of acquiring an existing operation rather than incurring the costs and time to begin a new hog operation. (Millions of dollars) Inventories $ Property, plant and equipment Goodwill Accounts payable Total consideration transferred $ Operating results have been included in Seaboard’s Condensed Consolidated Financial Statements from the date of acquisition. There was no material impact to Seaboard’s sales and net earnings as a result of the purchase. Acquisition costs were less than $1 million. During the third quarter of 2016, Seaboard’s Pork segment acquired additional hog inventory and a sow farm for total cash consideration of $7 million. The purchase was recorded at fair value and $1 million and $6 million were allocated to inventories and property, plant and equipment, respectively. No material intangible assets were identified and acquisition costs were less than $1 million. 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 (“Christensen Farms”) 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. 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 $39 million and $93 million and an immaterial amount of net income were recognized during the three and nine months ended October 1, 2016, respectively. Acquisition costs were less than $1 million. With these purchases, Seaboard increased its sow herd to meet the majority of its supply commitment for single shift processing at the new Seaboard Triumph Foods plant. The following unaudited pro forma information presents the combined consolidated financial results for Seaboard as if all three acquisitions had been completed at the beginning of January 1, 2015. Three months ended Nine months ended October 1, October 3, October 1, October 3, (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”). 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, which was restructured during the second quarter of 2016 to extend the maturity to June 2022 and change 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. As a result, Seaboard reserved $11 million of this note in bad debt expense within selling, general and administrative expenses in the Condensed Consolidated Statements of Comprehensive Income during the second quarter of 2016. There was no tax benefit from this transaction. As of October 1, 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, updated forecasted cash flow projections are not met, or scheduled payments are not made, 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 October 1, 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. Due to the extent of the losses, Seaboard has previously fully reserved all advances and long-term receivable, and as such, Seaboard’s investment in the business, advances and long-term note receivable are zero as of October 1, 2016. Included in the above, Seaboard’s advances totaled $14 million during the nine months ended October 1, 2016. Seaboard recorded income (loss) from affiliate of $2 million and $(10) million for the three and nine months ended October 1, 2016, respectively, and currency translation adjustment losses included in other comprehensive income (loss) of $2 million and $4 million, respectively, as this entity’s functional currency is the Brazilian real. Seaboard also has a gross trade receivable due from affiliate related to this business resulting from sales of grain and supplies of $22 million and $17 million as of October 1, 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. On October 28, 2016, Seaboard reached an agreement with the other shareholder to revise the Shareholders Agreement to restructure the affiliate debt and equity of the business, which resulted in the dilution of the other shareholder’s ownership. No cash consideration was exchanged. As a result of the dilution, Seaboard owns 98% of the voting equity and obtained control of the business. During the fourth quarter of 2016, Seaboard will account for the transaction as a business combination achieved in stages by remeasuring its equity interest to fair value as of the acquisition date and will recognize any gain or loss in earnings. Seaboard will then include the financial results of the business in its consolidated financial statements from the date of acquisition. The business had third-party debt of $13 million and $16 million as of October 1, 2016 and December 31, 2015, respectively. The purchase price allocation was not complete as of the date of the filing pending the valuation of assets acquired and liabilities assumed. During the first quarter of 2016, the CT&M segment provided a $12 million loan to a Peruvian affiliate. The Peruvian affiliate repaid $6 million in the second quarter of 2016 and the remaining $6 million in the third quarter of 2016. Interest was payable monthly and the principal due on August 31, 2017, with no prepayment penalty. 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 October 1, 2016 and December 31, 2015, Butterball had total assets of $1,143 million and $1,087 million, respectively. Butterball’s summarized income statement information is as follows: Three Months Ended Nine Months Ended October 1, October 3, October 1, October 3, (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 Nine Months Ended October 1, October 3, October 1, October 3, (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 Nine Months Ended October 1, October 3, October 1, October 3, (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 Nine Months Ended October 1, October 3, October 1, October 3, (Millions of dollars) 2016 2015 2016 2015 Pork $ $ $ $ Commodity Trading and Milling Marine — Sugar — Power Turkey Segment/Consolidated Totals $ $ $ $ Total Assets: October 1, 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: October 1, 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) | 9 Months Ended |
Oct. 01, 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 as discussed in Note 9 to the Condensed Consolidated Financial Statements. Seaboard recognized less than $1 million of non-cash accretion of discount and $2 million of non-cash, pay-in-kind interest income and accretion of discount for the three and nine months ended October 1, 2016, respectively, and $4 million and $13 million for the three and nine months ended October 3, 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 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) | 9 Months Ended |
Oct. 01, 2016 | |
Investments | |
Summary of the amortized cost and estimated fair value of short-term investments for both available-for-sale and trading securities | October 1, 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) | 9 Months Ended |
Oct. 01, 2016 | |
Inventories | |
Summary of inventories | October 1, 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) | 9 Months Ended |
Oct. 01, 2016 | |
Derivatives and Fair Value of Financial Instruments | |
Schedule of assets and liabilities measured at fair value on a recurring basis | Balance October 1, (Millions of dollars) 2016 Level 1 Level 2 Level 3 Assets: 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 — — 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 October 1, 2016, the commodity derivatives had a margin account balance of $17 million resulting in a net other current asset in the Condensed Consolidated Balance Sheet of $14 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 and liabilities. 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 Nine Months Ended October 1, October 3, October 1, October 3, (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 October 1, December 31, October 1, 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 October 1, 2016 and December 31, 2015, the commodity derivatives had a margin account balance of $17 million and $29 million, respectively, resulting in a net other current asset in the Condensed Consolidated Balance Sheets of $14 million and $15 million, respectively. |
Employee Benefits (Tables)
Employee Benefits (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Employee Benefits | |
Schedule of net periodic benefit cost of plans | Three Months Ended Nine Months Ended October 1, October 3, October 1, October 3, (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) | 9 Months Ended |
Oct. 01, 2016 | |
Notes Payable and Long-Term Debt | |
Summary of long-term debt | October 1, 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) | 9 Months Ended |
Oct. 01, 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 Nine Months Ended October 1, October 3, October 1, October 3, (Millions of dollars) 2016 2015 2016 2015 Foreign currency translation adjustment $ $ $ $ Unrealized gain on investments — Unrecognized pension cost (1) — Other comprehensive 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 | October 1, 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) | 9 Months Ended |
Oct. 01, 2016 | |
Summary of specific financial information related to sales to external customers | Sales to External Customers: Three Months Ended Nine Months Ended October 1, October 3, October 1, October 3, (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 Nine Months Ended October 1, October 3, October 1, October 3, (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 Nine Months Ended October 1, October 3, October 1, October 3, (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: October 1, 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: October 1, 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 Nine Months Ended October 1, October 3, October 1, October 3, (Millions of dollars) 2016 2015 2016 2015 Net sales $ $ $ $ Operating income $ $ $ $ Net income $ $ $ $ |
Texas Farm LLC, Christensen Farms And Feedlots Inc., Christensen Farms Midwest LLC and hog inventory and sow farm | |
Schedule of proforma information related to acquisition | Three months ended Nine months ended October 1, October 3, October 1, October 3, (Millions of dollars except per share amounts) 2016 2015 2016 2015 Net sales $ $ $ $ Net earnings $ $ — $ $ Earnings per common share $ $ $ $ |
Texas Farm LLC | |
Schedule of allocation of preliminary purchase price | (Millions of dollars) Inventories $ Property, plant and equipment Goodwill Accounts payable Total consideration transferred $ |
Christensen Farms & Feedlots, Inc. and Christensen Farms Midwest, LLC, Assets | |
Schedule of allocation of preliminary purchase price | (Millions of dollars) Inventories $ Property, plant and equipment Intangible assets Goodwill Total consideration transferred $ |
Accounting Policies and Basis24
Accounting Policies and Basis of Presentation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Supplemental Non-Cash Transactions | ||||
Non-cash, pay-in-kind interest income and accretion of discount recognized on a note receivable from an affiliate | $ 4 | $ 2 | $ 13 | |
Maximum | ||||
Supplemental Non-Cash Transactions | ||||
Non-cash, pay-in-kind interest income and accretion of discount recognized on a note receivable from an affiliate | $ 1 |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | Dec. 31, 2015 | |
Investments | |||||
Total short term investments, amortized cost | $ 1,150 | $ 1,150 | $ 1,269 | ||
Total short term investments, fair value | 1,180 | 1,180 | 1,254 | ||
Unrealized gains (losses) on trading securities | 27 | $ (22) | 41 | $ (21) | |
Available-for-sale securities. | |||||
Investments | |||||
Amortized Cost | 81 | ||||
Fair Value | 81 | ||||
Money market funds | |||||
Investments | |||||
Amortized Cost | 81 | ||||
Fair Value | 81 | ||||
Trading securities. | |||||
Investments | |||||
Amortized Cost | 1,150 | 1,150 | 1,188 | ||
Fair Value | 1,180 | 1,180 | 1,173 | ||
Domestic equity securities | |||||
Investments | |||||
Amortized Cost | 466 | 466 | 475 | ||
Fair Value | 491 | 491 | 466 | ||
Domestic debt securities | |||||
Investments | |||||
Amortized Cost | 400 | 400 | 452 | ||
Fair Value | 403 | 403 | 450 | ||
Foreign equity securities | |||||
Investments | |||||
Amortized Cost | 158 | 158 | 120 | ||
Fair Value | 159 | 159 | 120 | ||
High yield trading debt securities | |||||
Investments | |||||
Amortized Cost | 104 | 104 | 108 | ||
Fair Value | 105 | 105 | 104 | ||
Collateralized loan obligation | |||||
Investments | |||||
Amortized Cost | 14 | 14 | 10 | ||
Fair Value | 14 | 14 | 10 | ||
Money market funds held in trading accounts | |||||
Investments | |||||
Amortized Cost | 8 | 8 | 22 | ||
Fair Value | 8 | 8 | 22 | ||
Other trading securities | |||||
Investments | |||||
Amortized Cost | 1 | ||||
Fair Value | 1 | ||||
Denominated in foreign currencies | Money market funds | |||||
Investments | |||||
Fair Value | 3 | ||||
Denominated in foreign currencies | Money market funds | Maximum | |||||
Investments | |||||
Fair Value | 1 | 1 | |||
Denominated in foreign currencies | Foreign equity securities | |||||
Investments | |||||
Fair Value | 91 | 91 | 80 | ||
Denominated in Euros | Foreign equity securities | |||||
Investments | |||||
Fair Value | 34 | 34 | 25 | ||
Denominated in Japanese Yen | Foreign equity securities | |||||
Investments | |||||
Fair Value | 19 | 19 | 20 | ||
Denominated in British pounds | Foreign equity securities | |||||
Investments | |||||
Fair Value | 15 | 15 | 15 | ||
Denominated in Swiss Franc | Foreign equity securities | |||||
Investments | |||||
Fair Value | 7 | 7 | 7 | ||
Denominated in other foreign currencies | Foreign equity securities | |||||
Investments | |||||
Fair Value | $ 16 | $ 16 | $ 13 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Oct. 01, 2016 | Dec. 31, 2015 |
At lower of LIFO cost or market: | ||
Live hogs and materials | $ 255 | $ 210 |
Fresh pork and materials | 31 | 26 |
Inventories at lower of LIFO cost or market, Gross | 286 | 236 |
LIFO adjustment | (25) | (28) |
Total inventories at lower of LIFO cost or market | 261 | 208 |
At lower of FIFO cost or market: | ||
Grains, oilseeds and other commodities | 315 | 330 |
Sugar produced and in process | 37 | 52 |
Other | 62 | 61 |
Total inventories at lower of FIFO cost or market | 414 | 443 |
Grain, flour and feed at lower of weighted average cost or market | 104 | 88 |
Total inventories | $ 779 | $ 739 |
Derivatives and Fair Value of27
Derivatives and Fair Value of Financial Instruments-Deferred Comp Securities (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 01, 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 | |
Transfers that occurred into or out of level 2 | 0 | |
Transfers that occurred into or out of level 3 | 0 | |
Commodities | ||
Assets: | ||
Margin account | 17 | $ 29 |
Money market funds | ||
Assets: | ||
Available-for-sale securities | 81 | |
Domestic equity securities | ||
Assets: | ||
Trading securities | 491 | 466 |
Domestic debt securities | ||
Assets: | ||
Trading securities | 403 | 450 |
Foreign equity securities | ||
Assets: | ||
Trading securities | 159 | 120 |
High yield trading debt securities | ||
Assets: | ||
Trading securities | 105 | 104 |
Collateralized loan obligation | ||
Assets: | ||
Trading securities | 14 | 10 |
Money market funds held in trading accounts | ||
Assets: | ||
Trading securities | 8 | 22 |
Other trading securities | ||
Assets: | ||
Trading securities | 1 | |
Recurring basis | Fair Value | ||
Assets: | ||
Total Assets | 1,231 | 1,309 |
Liabilities: | ||
Liabilities | 25 | 24 |
Recurring basis | Fair Value | Commodities | ||
Assets: | ||
Derivatives | 9 | 4 |
Margin account | 17 | 29 |
Liabilities: | ||
Derivatives | 12 | 18 |
Recurring basis | Fair Value | Interest rate swaps | ||
Liabilities: | ||
Derivatives | 6 | 6 |
Recurring basis | Fair Value | Foreign currencies | ||
Assets: | ||
Derivatives | 1 | 8 |
Liabilities: | ||
Derivatives | 7 | |
Recurring basis | Fair Value | Other current assets | Commodities | ||
Assets: | ||
Derivative assets and liabilities, net basis | 14 | 15 |
Recurring basis | Fair Value | Money market funds | Short-term investments. | ||
Assets: | ||
Available-for-sale securities | 81 | |
Recurring basis | Fair Value | Domestic equity securities | Short-term investments. | ||
Assets: | ||
Trading securities | 491 | 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 | 403 | 450 |
Recurring basis | Fair Value | Foreign equity securities | Short-term investments. | ||
Assets: | ||
Trading securities | 159 | 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 | 105 | 104 |
Recurring basis | Fair Value | Collateralized loan obligation | Short-term investments. | ||
Assets: | ||
Trading securities | 14 | 10 |
Recurring basis | Fair Value | Money market funds held in trading accounts | Short-term investments. | ||
Assets: | ||
Trading securities | 8 | 22 |
Recurring basis | Fair Value | Other trading securities | Short-term investments. | ||
Assets: | ||
Trading securities | 1 | |
Recurring basis | Fair Value | Other | Other current assets | ||
Assets: | ||
Trading securities | 4 | 3 |
Recurring basis | Fair Value | Fixed income mutual funds | Other current assets | ||
Assets: | ||
Trading securities | 3 | 4 |
Recurring basis | Level 1 | ||
Assets: | ||
Total Assets | 1,110 | 1,185 |
Liabilities: | ||
Liabilities | 12 | 18 |
Recurring basis | Level 1 | Commodities | ||
Assets: | ||
Derivatives | 9 | 4 |
Liabilities: | ||
Derivatives | 12 | 18 |
Recurring basis | Level 1 | Money market funds | Short-term investments. | ||
Assets: | ||
Available-for-sale securities | 81 | |
Recurring basis | Level 1 | Domestic equity securities | Short-term investments. | ||
Assets: | ||
Trading securities | 491 | 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 | 403 | 450 |
Recurring basis | Level 1 | Foreign equity securities | Short-term investments. | ||
Assets: | ||
Trading securities | 159 | 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 | 8 | 22 |
Recurring basis | Level 1 | Other | Other current assets | ||
Assets: | ||
Trading securities | 3 | 2 |
Recurring basis | Level 1 | Fixed income mutual funds | Other current assets | ||
Assets: | ||
Trading securities | 3 | 4 |
Recurring basis | Level 2 | ||
Assets: | ||
Total Assets | 121 | 124 |
Liabilities: | ||
Liabilities | 13 | 6 |
Recurring basis | Level 2 | Interest rate swaps | ||
Liabilities: | ||
Derivatives | 6 | 6 |
Recurring basis | Level 2 | Foreign currencies | ||
Assets: | ||
Derivatives | 1 | 8 |
Liabilities: | ||
Derivatives | 7 | |
Recurring basis | Level 2 | High yield trading debt securities | Short-term investments. | ||
Assets: | ||
Trading securities | 105 | 104 |
Recurring basis | Level 2 | Collateralized loan obligation | Short-term investments. | ||
Assets: | ||
Trading securities | 14 | 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 | $ 1 |
Derivatives and Fair Value of28
Derivatives and Fair Value of Financial Instruments-Derivatives (Details) lb in Millions, bu in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | 24 Months Ended | |
Apr. 02, 2016USD ($)item | Oct. 01, 2016USD ($)agreementlbbu | Dec. 31, 2015USD ($)agreementlbbu | Dec. 31, 2010agreement | Dec. 31, 2015USD ($)agreement | |
Net commodity purchase contracts | Grain | |||||
Derivative commodity instruments | |||||
Nonmonetary notional amount | bu | 20 | 22 | |||
Net commodity purchase contracts | Sugar | |||||
Derivative commodity instruments | |||||
Nonmonetary notional amount | lb | 3 | ||||
Net commodity purchase contracts | Hogs | |||||
Derivative commodity instruments | |||||
Nonmonetary notional amount | lb | 14 | 25 | |||
Net commodity purchase contracts | Soybean oil | |||||
Derivative commodity instruments | |||||
Nonmonetary notional amount | lb | 12 | ||||
Net commodity sale contracts | Soybean oil | |||||
Derivative commodity instruments | |||||
Nonmonetary notional amount | lb | 8 | ||||
Foreign currencies | |||||
Derivative commodity instruments | |||||
Notional amounts | $ | $ 60 | $ 94 | $ 94 | ||
Interest rate swaps | |||||
Derivative commodity instruments | |||||
Notional amounts | $ | $ 75 | $ 119 | $ 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 | $ | $ 44 | $ 44 | |||
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 | 9 Months Ended | ||
Oct. 01, 2016USD ($)item | Oct. 03, 2015USD ($) | Oct. 01, 2016USD ($)item | Oct. 03, 2015USD ($) | |
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 | $ (14) | $ (16) | $ 17 | $ (18) |
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 | $ 1 | |||
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 | $ (12) | 4 | $ (25) | 5 |
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 | $ (5) | $ (3) | $ (6) |
Derivatives and Fair Value of30
Derivatives and Fair Value of Financial Instruments-Derivatives Fair Value (Details) - USD ($) $ in Millions | Oct. 01, 2016 | Dec. 31, 2015 |
Commodities | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Margin account | $ 17 | $ 29 |
Commodities | Other current assets | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Asset Derivatives | 9 | 4 |
Derivative assets and liabilities, net basis | 14 | 15 |
Commodities | Other current liabilities | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Liability Derivatives | 12 | 18 |
Foreign currencies | Other current assets | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Asset Derivatives | 1 | 8 |
Foreign currencies | Other current liabilities | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Liability Derivatives | 7 | |
Interest rate swaps | Other current liabilities | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Liability Derivatives | $ 6 | $ 6 |
Employee Benefits (Details)
Employee Benefits (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016USD ($)plan | Oct. 01, 2016USD ($)plan | Oct. 03, 2015USD ($) | Oct. 01, 2016USD ($)plan | Oct. 03, 2015USD ($) | |
Components of net periodic benefit cost: | |||||
Service cost | $ 3 | $ 2 | $ 7 | $ 7 | |
Interest cost | 2 | 3 | 8 | 8 | |
Expected return on plan assets | (2) | (2) | (6) | (6) | |
Amortization and other | 1 | 1 | 3 | 3 | |
Net periodic benefit cost | $ 4 | $ 4 | $ 12 | $ 12 | |
Defined benefit pension plans | |||||
Target allocation and pension plan asset allocation | |||||
Number of defined benefit plans | plan | 2 | 2 | 2 | ||
Contributions made to defined benefit pension plans | $ 39 | ||||
Number of defined benefit pensions plans that contributions were made to | plan | 1 | ||||
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 | Sep. 30, 2016USD ($) | Jul. 02, 2015item | Apr. 29, 2015item | Oct. 17, 2014item | Sep. 18, 2014item | Oct. 01, 2016USD ($)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 | (18) | (5) | |||||||
Long-term debt, less current maturities and unamortized discount | $ 503 | 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 | $ 15 | ||||||||
Contractual Obligation, Due in Second Year | 73 | ||||||||
Seaboard Triumph Foods | Pork | |||||||||
Commitments | |||||||||
Percentage of ownership | 50.00% | ||||||||
Notes payable | |||||||||
Debt Instrument | |||||||||
Notes payable outstanding | $ 129 | ||||||||
Weighted average interest rate (as a percent) | 10.21% | 11.74% | |||||||
Uncommitted bank lines | |||||||||
Debt Instrument | |||||||||
Notes payable outstanding | $ 129 | ||||||||
Maximum capacity | 381 | ||||||||
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) | 2.14% | 1.90% | |||||||
Foreign subsidiary obligations due 2018 through 2023 | |||||||||
Debt Instrument | |||||||||
Total long-term debt at face value | $ 21 | $ 23 | |||||||
Effective interest rate (as a percent) | 23.82% | 30.23% | |||||||
Wells Fargo | Committed bank line | |||||||||
Debt Instrument | |||||||||
Maximum capacity | $ 100 | ||||||||
Outstanding balance | $ 0 | ||||||||
Unused commitment fee | 0.09% | ||||||||
Wells Fargo | LIBOR | Committed bank line | |||||||||
Debt Instrument | |||||||||
Basis spread on variable rate (as a percent) | 0.50% | ||||||||
Foreign subsidiaries | Notes payable | |||||||||
Debt Instrument | |||||||||
Notes payable outstanding | 106 | ||||||||
Foreign subsidiaries | Uncommitted bank lines | |||||||||
Debt Instrument | |||||||||
Maximum capacity | 331 | ||||||||
Foreign subsidiaries | South African Rand | Notes payable | |||||||||
Debt Instrument | |||||||||
Notes payable outstanding | 90 | ||||||||
Foreign subsidiaries | Argentine pesos | Notes payable | |||||||||
Debt Instrument | |||||||||
Notes payable outstanding | 11 | ||||||||
Foreign subsidiaries | Zambian kwacha | Notes payable | |||||||||
Debt Instrument | |||||||||
Notes payable outstanding | $ 5 |
Stockholders' Equity and Accu33
Stockholders' Equity and Accumulated Other Comprehensive Loss (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2012 | Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 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 | (7) | $ (7) | (23) | $ (22) | |||
Unrealized gain (loss) on investments | 1 | 1 | 1 | ||||
Unrecognized pension cost | 1 | 2 | 3 | ||||
Other comprehensive income (loss), net of tax | (6) | (6) | (20) | (18) | |||
Components of accumulated other comprehensive loss, net of related taxes | |||||||
Accumulated other comprehensive loss | (298) | (298) | $ (278) | ||||
Argentine pesos | Sugar | |||||||
Components of accumulated other comprehensive loss, net of related taxes | |||||||
Other comprehensive loss recognized related to devaluation of foreign currency | 22 | ||||||
Net assets | 96 | 96 | |||||
U.S. dollars | Sugar | Maximum | |||||||
Components of accumulated other comprehensive loss, net of related taxes | |||||||
Net assets | 1 | 1 | |||||
Certain subsidiaries | |||||||
Components of accumulated other comprehensive loss, net of related taxes | |||||||
Cumulative foreign currency translation adjustment, net of related taxes | 87 | 72 | 87 | 72 | |||
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 | (251) | (251) | (228) | ||||
Unrealized gain on investments | |||||||
Components of accumulated other comprehensive loss, net of related taxes | |||||||
Accumulated other comprehensive loss | 2 | 2 | 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 | Sep. 01, 2016USD ($) | Feb. 07, 2016USD ($) | Oct. 01, 2016USD ($)$ / shares | Oct. 03, 2015USD ($)$ / shares | Oct. 01, 2016USD ($)segment$ / shares | Oct. 03, 2015USD ($)$ / shares |
Segment Information | ||||||
Number of reportable segments | segment | 6 | |||||
Acquisition of business, cash consideration | $ 214 | |||||
Texas Farm LLC, Christensen Farms And Feedlots Inc., Christensen Farms Midwest LLC and hog inventory and sow farm | ||||||
Unaudited pro forma information: | ||||||
Net sales | $ 1,344 | $ 1,482 | 4,078 | $ 4,495 | ||
Net earnings | $ 73 | $ 198 | $ 54 | |||
Earnings per common share | $ / shares | $ 62.71 | $ 0.02 | $ 169.27 | $ 45.77 | ||
Texas Farm LLC | Pork | ||||||
Segment Information | ||||||
Acquisition of business, cash consideration | $ 59 | |||||
Preliminary purchase price allocation | ||||||
Inventories | 16 | |||||
Property, plant and equipment | 42 | |||||
Goodwill | 3 | |||||
Accounts payable | (2) | |||||
Total consideration transferred | 59 | |||||
Texas Farm LLC | Pork | Maximum | ||||||
Preliminary purchase price allocation | ||||||
Acquisition costs | $ 1 | |||||
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 | $ 39 | $ 93 | ||||
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 | |||||
Hog inventory and sow farm | Pork | ||||||
Segment Information | ||||||
Acquisition of business, cash consideration | 7 | |||||
Preliminary purchase price allocation | ||||||
Inventories | 1 | 1 | ||||
Property, plant and equipment | 6 | 6 | ||||
Hog inventory and sow farm | Pork | Maximum | ||||||
Preliminary purchase price allocation | ||||||
Acquisition costs | $ 1 | $ 1 |
Segment Information-DRC (Detail
Segment Information-DRC (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Jul. 02, 2016 | Dec. 31, 2014 | Oct. 01, 2016 | Dec. 31, 2015 | |
Segment Information | ||||
Notes receivable from affiliates, net | $ 192 | $ 200 | ||
Total investment in affiliate | 756 | 671 | ||
Democratic Republic of Congo | ||||
Segment Information | ||||
Total investment in affiliate | 50 | |||
Commodity Trading and Milling | ||||
Segment Information | ||||
Total investment in affiliate | $ 208 | $ 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 |
Segment Information-Flour Produ
Segment Information-Flour Production (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 36 Months Ended | ||||
Sep. 28, 2013 | Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | Dec. 31, 2015 | Oct. 01, 2016 | Oct. 28, 2016 | Dec. 31, 2013 | |
Segment Information | |||||||||
Notes receivable from affiliates, net | $ 192 | $ 192 | $ 200 | $ 192 | |||||
Amount contributed as additional equity to provide additional working capital to equity method investee | 55 | $ 78 | |||||||
Income from affiliates | 21 | $ 16 | 54 | 39 | |||||
Foreign currency translation adjustment | (7) | (7) | (23) | (22) | |||||
Total investment in affiliate | 756 | 756 | 671 | 756 | |||||
Commodity Trading and Milling | |||||||||
Segment Information | |||||||||
Income from affiliates | 5 | $ (19) | (10) | $ (44) | |||||
Total investment in affiliate | $ 208 | $ 208 | 218 | $ 208 | |||||
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% | ||||||
Voting equity ownership percentage | 98.00% | ||||||||
Amount invested under equity method | $ 63 | ||||||||
Income from affiliates | $ 2 | $ (10) | |||||||
Foreign currency translation adjustment | (2) | (4) | |||||||
Existing third party debt | 13 | 13 | 16 | 13 | |||||
Total investment in affiliate | 0 | 0 | 0 | ||||||
Advance balance | 14 | 14 | 14 | ||||||
Due from affiliates | $ 22 | $ 22 | 17 | $ 22 | |||||
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 | 9 Months Ended | |||
Oct. 01, 2016USD ($) | Jul. 02, 2016USD ($) | Apr. 02, 2016USD ($)project | Oct. 01, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Information | |||||
Notes receivable from affiliates, net | $ 192 | $ 192 | $ 200 | ||
Principal payments received on long-term notes receivable from affiliates | $ 12 | ||||
Commodity Trading and Milling | Peru | Long-term note receivable | |||||
Segment Information | |||||
Notes receivable from affiliates, net | $ 12 | ||||
Principal payments received on long-term notes receivable from affiliates | $ 6 | $ 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 | 9 Months Ended | ||||
Dec. 31, 2010 | Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | Jan. 30, 2016 | Dec. 31, 2015 | |
Segment Information | |||||||
Net sales | $ 450 | $ 511 | $ 1,226 | $ 1,299 | |||
Operating income | 27 | 69 | 116 | 163 | |||
Net income | 22 | $ 58 | 94 | $ 134 | |||
Turkey | |||||||
Segment Information | |||||||
Total assets | $ 1,143 | $ 1,143 | $ 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 | 9 Months Ended | |||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | Dec. 31, 2015 | |
Segment Information | |||||
Sales to External Customers: | $ 1,330 | $ 1,411 | $ 4,006 | $ 4,291 | |
Operating Income (Loss): | 42 | 23 | 154 | 83 | |
Income (Loss) from Affiliates: | 21 | 16 | 54 | 39 | |
Total Assets: | 4,643 | 4,643 | $ 4,431 | ||
Investment in and Advances to Affiliates: | 756 | 756 | 671 | ||
Pork | |||||
Segment Information | |||||
Sales to External Customers: | 371 | 347 | 1,058 | 999 | |
Operating Income (Loss): | 54 | 26 | 133 | 61 | |
Income (Loss) from Affiliates: | 3 | 2 | 10 | 8 | |
Investment in and Advances to Affiliates: | 166 | 166 | 115 | ||
Commodity Trading and Milling | |||||
Segment Information | |||||
Sales to External Customers: | 673 | 756 | 2,089 | 2,355 | |
Operating Income (Loss): | (13) | (5) | 15 | 7 | |
Income (Loss) from Affiliates: | 5 | (19) | (10) | (44) | |
Investment in and Advances to Affiliates: | 208 | 208 | 218 | ||
Marine | |||||
Segment Information | |||||
Sales to External Customers: | 225 | 230 | 684 | 709 | |
Operating Income (Loss): | 9 | (2) | 19 | 10 | |
Income (Loss) from Affiliates: | 1 | 1 | 2 | ||
Investment in and Advances to Affiliates: | 35 | 35 | 19 | ||
Sugar | |||||
Segment Information | |||||
Sales to External Customers: | 34 | 49 | 103 | 139 | |
Operating Income (Loss): | (7) | 3 | (5) | 8 | |
Income (Loss) from Affiliates: | 1 | 1 | 1 | ||
Investment in and Advances to Affiliates: | 4 | 4 | 3 | ||
Power | |||||
Segment Information | |||||
Sales to External Customers: | 23 | 25 | 59 | 78 | |
Operating Income (Loss): | 4 | 3 | 6 | 10 | |
Income (Loss) from Affiliates: | 2 | 1 | 3 | 2 | |
Investment in and Advances to Affiliates: | 28 | 28 | 34 | ||
Turkey | |||||
Segment Information | |||||
Income (Loss) from Affiliates: | 11 | 30 | 49 | 70 | |
Investment in and Advances to Affiliates: | 315 | 315 | 282 | ||
All Other | |||||
Segment Information | |||||
Sales to External Customers: | 4 | 4 | 13 | 11 | |
Operating Income (Loss): | 1 | 1 | 2 | 1 | |
Segment Totals | |||||
Segment Information | |||||
Operating Income (Loss): | 48 | 26 | 170 | 97 | |
Total Assets: | 3,276 | 3,276 | 3,069 | ||
Segment Totals | Pork | |||||
Segment Information | |||||
Total Assets: | 1,118 | 1,118 | 858 | ||
Segment Totals | Commodity Trading and Milling | |||||
Segment Information | |||||
Total Assets: | 1,005 | 1,005 | 988 | ||
Segment Totals | Marine | |||||
Segment Information | |||||
Total Assets: | 316 | 316 | 296 | ||
Segment Totals | Sugar | |||||
Segment Information | |||||
Total Assets: | 161 | 161 | 202 | ||
Segment Totals | Power | |||||
Segment Information | |||||
Total Assets: | 188 | 188 | 271 | ||
Segment Totals | Turkey | |||||
Segment Information | |||||
Total Assets: | 483 | 483 | 448 | ||
Segment Totals | All Other | |||||
Segment Information | |||||
Total Assets: | 5 | 5 | 6 | ||
Corporate Items | |||||
Segment Information | |||||
Operating Income (Loss): | (6) | $ (3) | (16) | $ (14) | |
Total Assets: | $ 1,367 | $ 1,367 | $ 1,362 |