Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 28, 2019 | Oct. 23, 2019 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 28, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-3390 | |
Entity Registrant Name | Seaboard Corporation | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 04-2260388 | |
Entity Address, Address Line One | 9000 West 67th Street | |
Entity Address, City or Town | Merriam | |
Entity Address, State or Province | KS | |
Entity Address, Postal Zip Code | 66202 | |
City Area Code | 913 | |
Local Phone Number | 676-8800 | |
Title of 12(b) Security | Common Stock $1.00 Par Value | |
Trading Symbol | SEB | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,164,848 | |
Entity Central Index Key | 0000088121 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Net sales: | ||||
Net sales | $ 1,663 | $ 1,651 | $ 5,028 | $ 4,921 |
Cost of sales and operating expenses: | ||||
Total cost of sales and operating expenses | 1,589 | 1,529 | 4,768 | 4,511 |
Gross income | 74 | 122 | 260 | 410 |
Selling, general and administrative expenses | 80 | 85 | 247 | 244 |
Operating income (loss) | (6) | 37 | 13 | 166 |
Other income (expense): | ||||
Interest expense | (9) | (12) | (27) | (31) |
Interest income | 10 | 3 | 25 | 9 |
Loss from affiliates | (15) | (18) | (49) | (40) |
Other investment income, net | 2 | 40 | 152 | 15 |
Foreign currency gains, net | 1 | 9 | 3 | 7 |
Miscellaneous, net | (1) | 1 | (1) | (1) |
Total other income (expense), net | (12) | 23 | 103 | (41) |
Earnings (loss) before income taxes | (18) | 60 | 116 | 125 |
Income tax benefit (expense) | 11 | (26) | (8) | (52) |
Net earnings (loss) | (7) | 34 | 108 | 73 |
Less: Net loss attributable to noncontrolling interests | 0 | 1 | 0 | 1 |
Net earnings (loss) attributable to Seaboard | $ (7) | $ 35 | $ 108 | $ 74 |
Earnings (loss) per common share | $ (6) | $ 29.93 | $ 92.97 | $ 62.96 |
Average number of shares outstanding (in shares) | 1,165,081 | 1,170,550 | 1,166,073 | 1,170,550 |
Other comprehensive income (loss), net of income tax benefit of $0, $(1), $0 and $0: | ||||
Foreign currency translation adjustment | $ 2 | $ (25) | $ (9) | $ (52) |
Unrecognized pension cost | 1 | 1 | 7 | (1) |
Other comprehensive income (loss), net of tax | 3 | (24) | (2) | (53) |
Comprehensive income (loss) | (4) | 10 | 106 | 20 |
Less: Comprehensive loss attributable to noncontrolling interests | 0 | 1 | 0 | 1 |
Comprehensive income (loss) attributable to Seaboard | (4) | 11 | 106 | 21 |
Products | ||||
Net sales: | ||||
Net sales | 1,359 | 1,338 | 4,117 | 4,011 |
Cost of sales and operating expenses: | ||||
Total cost of sales and operating expenses | 1,329 | 1,267 | 3,981 | 3,721 |
Services | ||||
Net sales: | ||||
Net sales | 270 | 273 | 814 | 815 |
Cost of sales and operating expenses: | ||||
Total cost of sales and operating expenses | 239 | 235 | 717 | 717 |
Other | ||||
Net sales: | ||||
Net sales | 34 | 40 | 97 | 95 |
Cost of sales and operating expenses: | ||||
Total cost of sales and operating expenses | $ 21 | $ 27 | $ 70 | $ 73 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Other comprehensive income (loss), income tax benefit | $ 0 | $ (1) | $ 0 | $ 0 |
Products | ||||
Sales to affiliates | 339 | 295 | 1,017 | 944 |
Services | ||||
Sales to affiliates | $ 5 | $ 3 | $ 13 | $ 8 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 28, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 121 | $ 194 |
Short-term investments | 1,418 | 1,336 |
Receivables, net | 529 | 551 |
Inventories | 916 | 815 |
Other current assets | 112 | 131 |
Total current assets | 3,096 | 3,027 |
Property, plant and equipment, net | 1,358 | 1,160 |
Operating lease right of use assets, net | 443 | |
Investments in and advances to affiliates | 734 | 804 |
Goodwill | 165 | 167 |
Other non-current assets | 150 | 149 |
Total assets | 5,946 | 5,307 |
Current liabilities: | ||
Lines of credit | 210 | 148 |
Current maturities of long-term debt | 58 | 39 |
Accounts payable | 235 | 238 |
Deferred revenue | 46 | 39 |
Deferred revenue from affiliates | 34 | 31 |
Operating lease liabilities | 97 | |
Other current liabilities | 279 | 289 |
Total current liabilities | 959 | 784 |
Long-term debt, less current maturities | 733 | 739 |
Long-term operating lease liabilities | 382 | |
Deferred income taxes | 127 | 127 |
Long-term income tax liability | 73 | 73 |
Other liabilities | 262 | 255 |
Total non-current liabilities | 1,577 | 1,194 |
Commitments and contingent liabilities | ||
Stockholders' equity: | ||
Common stock of $1 par value. Authorized 1,250,000 shares; issued and outstanding 1,164,848 shares in 2019 and 1,169,217 shares in 2018 | 1 | 1 |
Accumulated other comprehensive loss | (412) | (410) |
Retained earnings | 3,811 | 3,727 |
Total Seaboard stockholders' equity | 3,400 | 3,318 |
Noncontrolling interests | 10 | 11 |
Total equity | 3,410 | 3,329 |
Total liabilities and stockholders' equity | $ 5,946 | $ 5,307 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 28, 2019 | Dec. 31, 2018 |
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 | 1,164,848 | 1,169,217 |
Common stock, outstanding shares | 1,164,848 | 1,169,217 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Cash flows from operating activities: | ||
Net earnings | $ 108 | $ 73 |
Adjustments to reconcile net earnings to cash from operating activities: | ||
Depreciation and amortization | 103 | 101 |
Deferred income taxes | (9) | 2 |
Loss from affiliates | 49 | 40 |
Dividends received from affiliates | 7 | 20 |
Other investment income, net | (152) | (15) |
Other, net | 7 | 16 |
Changes in assets and liabilities, net of acquisitions: | ||
Receivables, net of allowance | 15 | (8) |
Inventories | (96) | (106) |
Other assets | 26 | 60 |
Current liabilities, exclusive of debt | 12 | (17) |
Net cash from operating activities | 70 | 166 |
Cash flows from investing activities: | ||
Purchase of short-term investments | (863) | (685) |
Proceeds from the sale of short-term investments | 762 | 667 |
Proceeds from the maturity of short-term investments | 174 | 32 |
Capital expenditures | (261) | (95) |
Proceeds from the sale of non-consolidated affiliate | 24 | |
Cash paid for acquisition of business | (270) | |
Investments in and advances to affiliates, net | (11) | (26) |
Issuance of notes receivable | (16) | |
Purchase of long-term investments | (14) | (17) |
Other, net | 10 | 8 |
Net cash from investing activities | (195) | (386) |
Cash flows from financing activities: | ||
Lines of credit, net | 63 | 13 |
Proceeds from long-term debt | 36 | 222 |
Principal payments of long-term debt | (20) | (43) |
Repurchase of common stock | (17) | |
Dividends paid | (7) | (6) |
Other, net | (3) | (1) |
Net cash from financing activities | 52 | 185 |
Effect of exchange rate changes on cash and cash equivalents | 0 | (3) |
Net change in cash and cash equivalents | (73) | (38) |
Cash and cash equivalents at beginning of year | 194 | 116 |
Cash and cash equivalents at end of period | $ 121 | $ 78 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Common Stock | Accumulated Other Comprehensive Loss | Retained Earnings | Noncontrolling Interest | Total |
Increase (Decrease) in Stockholders' Equity | |||||
Adoption of accounting guidance | $ (7) | $ 7 | |||
Balances at Dec. 31, 2017 | $ 1 | (354) | 3,750 | $ 11 | $ 3,408 |
Increase (Decrease) in Stockholders' Equity | |||||
Addition to noncontrolling interests | 4 | 4 | |||
Comprehensive income: | |||||
Net earnings (loss) | 32 | 32 | |||
Other comprehensive income (loss), net of tax | (9) | (9) | |||
Dividends on common stock ($1.50/share for 2018 and $2.25/share for 2019) | (2) | (2) | |||
Balances at Mar. 31, 2018 | 1 | (370) | 3,787 | 15 | 3,433 |
Balances at Dec. 31, 2017 | 1 | (354) | 3,750 | 11 | 3,408 |
Comprehensive income: | |||||
Net earnings (loss) | 73 | ||||
Other comprehensive income (loss), net of tax | (53) | ||||
Balances at Sep. 29, 2018 | 1 | (414) | 3,825 | 14 | 3,426 |
Balances at Mar. 31, 2018 | 1 | (370) | 3,787 | 15 | 3,433 |
Comprehensive income: | |||||
Net earnings (loss) | 7 | 7 | |||
Other comprehensive income (loss), net of tax | (20) | (20) | |||
Dividends on common stock ($1.50/share for 2018 and $2.25/share for 2019) | (2) | (2) | |||
Balances at Jun. 30, 2018 | 1 | (390) | 3,792 | 15 | 3,418 |
Comprehensive income: | |||||
Net earnings (loss) | 35 | (1) | 34 | ||
Other comprehensive income (loss), net of tax | (24) | (24) | |||
Dividends on common stock ($1.50/share for 2018 and $2.25/share for 2019) | (2) | (2) | |||
Balances at Sep. 29, 2018 | 1 | (414) | 3,825 | 14 | 3,426 |
Balances at Dec. 31, 2018 | 1 | (410) | 3,727 | 11 | 3,329 |
Increase (Decrease) in Stockholders' Equity | |||||
Reduction to noncontrolling interests | (1) | (1) | |||
Comprehensive income: | |||||
Net earnings (loss) | 57 | 57 | |||
Other comprehensive income (loss), net of tax | 1 | 1 | |||
Repurchase of common stock | (13) | (13) | |||
Dividends on common stock ($1.50/share for 2018 and $2.25/share for 2019) | (3) | (3) | |||
Balances at Mar. 30, 2019 | 1 | (409) | 3,768 | 10 | 3,370 |
Balances at Dec. 31, 2018 | 1 | (410) | 3,727 | 11 | 3,329 |
Comprehensive income: | |||||
Net earnings (loss) | 108 | ||||
Other comprehensive income (loss), net of tax | (2) | ||||
Repurchase of common stock | (17) | ||||
Balances at Sep. 28, 2019 | 1 | (412) | 3,811 | 10 | 3,410 |
Balances at Mar. 30, 2019 | 1 | (409) | 3,768 | 10 | 3,370 |
Comprehensive income: | |||||
Net earnings (loss) | 58 | 58 | |||
Other comprehensive income (loss), net of tax | (6) | (6) | |||
Repurchase of common stock | (1) | (1) | |||
Dividends on common stock ($1.50/share for 2018 and $2.25/share for 2019) | (2) | (2) | |||
Balances at Jun. 29, 2019 | 1 | (415) | 3,823 | 10 | 3,419 |
Comprehensive income: | |||||
Net earnings (loss) | (7) | (7) | |||
Other comprehensive income (loss), net of tax | 3 | 3 | |||
Repurchase of common stock | (3) | (3) | |||
Dividends on common stock ($1.50/share for 2018 and $2.25/share for 2019) | (2) | (2) | |||
Balances at Sep. 28, 2019 | $ 1 | $ (412) | $ 3,811 | $ 10 | $ 3,410 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Condensed Consolidated Statements of Changes in Equity | ||||||
Dividends on common stock (in dollars per share) | $ 2.25 | $ 2.25 | $ 2.25 | $ 1.50 | $ 1.50 | $ 1.50 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 28, 2019 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 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, 2018 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. Except for new guidance adopted prospectively as discussed below, Seaboard has consistently applied all accounting policies as disclosed in the annual report on Form 10-K to all periods presented in these condensed consolidated financial statements. 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, lease liabilities and right of use (“ROU”) assets and accrued pension liability. Actual results could differ from those estimates. Supplemental Cash Flow Information Non-cash investing and financing activities for the nine months ended September 28, 2019, included leased assets obtained in exchange for new operating and finance lease liabilities of $62 million and $31 million, respectively. Cash paid for amounts included in the measurement of operating lease liabilities was $101 million, all included in net cash from operating activities. Cash paid for amounts included in the measurement of finance lease liabilities was $2 million. Seaboard reports the amortization of ROU assets and the change in operating lease liabilities in other liabilities, exclusive of debt in the condensed consolidated statement of cash flows. Goodwill and Other Intangible Assets The change in the carrying amount of goodwill of $2 million from year-end to September 28, 2019 was related to foreign currency exchange differences within the Commodity Trading and Milling (“CT&M”) segment. As of September 28, 2019, intangible assets were $62 million, net of accumulated amortization of $13 million. Recently Issued Accounting Standard Adopted On January 1, 2019, Seaboard adopted guidance which requires the recognition of ROU assets and lease liabilities for most leases. As a result of this adoption, Seaboard recorded operating lease ROU assets of $460 million, adjusted for the deferred rent liability balance at year-end, and lease liabilities of $498 million. The adoption of the new guidance did not have a material impact on the condensed consolidated statement of comprehensive income and the condensed consolidated statement of cash flows. The accounting for finance leases, formerly called capital leases, remained substantially unchanged. Seaboard adopted the new guidance using the effective date method and, therefore, prior period financials were not revised. Seaboard elected the package of practical expedients available upon transition, which permitted Seaboard to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs. See Note 4 for additional details on the impact of adopting this new accounting standard. Recently Issued Accounting Standard Not Yet Adopted In June 2016, the Financial Accounting Standards Board issued guidance on the measurement of financial instrument credit losses that requires, among other things, the use of a new current expected credit loss ("CECL") model in order to determine the allowance for doubtful accounts with respect to accounts receivable and notes receivable. The CECL model requires estimation of lifetime expected credit loss based on historical experience, current conditions and reasonable supportable forecasts. The new guidance replaces the existing incurred loss model and will be effective for Seaboard on January 1, 2020. The adoption of this standard will be through a cumulative-effect adjustment to retained earnings as of the effective date. Seaboard is currently evaluating the impact of the new guidance on the consolidated financial statements. |
Investments
Investments | 9 Months Ended |
Sep. 28, 2019 | |
Investments | |
Investments | Note 2 – Investments The following is a summary of the estimated fair value of short-term investments classified as trading securities: September 28, December 31, (Millions of dollars) 2019 2018 Domestic equity securities $ 669 $ 632 Domestic debt securities 413 268 Foreign equity securities 191 218 High yield securities 57 19 Foreign debt securities 39 16 Collateralized loan obligations 27 28 Money market funds held in trading securities 13 146 Term deposits 4 9 Other trading securities 5 — Total trading short-term investments $ 1,418 $ 1,336 The change in unrealized gains related to trading securities still held at the end of the respective reporting period was $2 million and $124 million for the three and nine months ended September 28, 2019, respectively, and $37 million and $15 million for the three and nine months ended September 29, 2018, respectively. Seaboard had $57 million of equity securities denominated in foreign currencies as of September 28, 2019, with $29 million in euros, $11 million in Japanese yen, $8 million in British pounds, $3 million in Swiss francs and the remaining $6 million in various other currencies. As of December 31, 2018, Seaboard had $66 million of equity securities denominated in foreign currencies, with $25 million in euros, $20 million in Japanese yen, $9 million in British pounds, $3 million in Swiss francs and the remaining $9 million in various other currencies. Also, money market funds included $2 million and $10 million denominated in various foreign currencies as of September 28, 2019 and December 31, 2018, respectively. Term deposits are denominated in the West African franc. |
Inventories
Inventories | 9 Months Ended |
Sep. 28, 2019 | |
Inventories | |
Inventories | Note 3 – Inventories The following is a summary of inventories: September 28, December 31, (Millions of dollars) 2019 2018 At lower of LIFO cost or market: Hogs and materials $ 376 $ 361 Fresh pork and materials 35 36 LIFO adjustment (66) (58) Total inventories at lower of LIFO cost or market 345 339 At lower of FIFO cost and net realizable value: Grains, oilseeds and other commodities 306 229 Sugar produced and in process 25 17 Other 78 81 Total inventories at lower of FIFO cost and net realizable value 409 327 Grain, flour and feed at lower of weighted average cost and net realizable value 162 149 Total inventories $ 916 $ 815 |
Leases
Leases | 9 Months Ended |
Sep. 28, 2019 | |
Leases | |
Leases | Note 4 – Leases Seaboard’s operating leases are primarily for ports, vessels, contract grower assets, and to a lesser extent, other land, buildings, and machinery and equipment. Seaboard’s finance leases are primarily for contract grower assets. Seaboard’s Marine segment leases its PortMiami terminal, among other ports. The Marine and CT&M segments lease vessels for use in operations. The Pork segment has contract grower agreements in place with farmers to raise a portion of Seaboard’s hogs using the farmer’s buildings, land and equipment. Seaboard elected to account for lease and nonlease maintenance components as a single lease component for all classes of underlying assets. Seaboard’s nonlease components are primarily for services related to labor associated with caring for hogs in its contract grower agreements and crew services on vessel charter arrangements. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The present value of lease payments is determined primarily using the incremental borrowing rate based on the information available at the lease commencement date. As of September 28, 2019, the weighted average remaining lease term for Seaboard’s operating and finance leases was approximately 7 years and 9 years, respectively. Seaboard’s lease terms vary depending upon the class of asset and some leases include options to extend or terminate. Since Seaboard is not reasonably certain to exercise these renewal or termination options, the options are not considered in determining the lease term, and associated potential option payments or penalties are excluded from lease payments. Seaboard has elected not to recognize ROU assets and lease liabilities for short-term leases for all classes of underlying assets. Short-term leases are leases with terms greater than 1 month, but less than 12 months. The components of lease cost were as follows: Three Nine Months Months Ended Ended (Millions of dollars) September 28, 2019 September 28, 2019 Operating lease cost $ 33 $ 100 Finance lease cost: Amortization of right of use assets 1 2 Interest on lease liabilities 1 1 Variable lease cost 3 7 Short-term lease cost 12 35 Total lease cost $ 50 $ 145 Operating lease cost and short-term lease cost are recognized on a straight-line basis over the lease term. Finance lease cost is recognized based on the effective interest method for the lease liability and straight-line amortization of the ROU asset. Variable lease payments are recognized when the circumstance in the lease agreement on which those payments are assessed occurs. Variable lease payments are primarily for payments in excess of minimums with regards to throughput of shipping containers. Short-term leases are primarily for containers and vessels at Seaboard’s Marine segment. Lease cost is included in various line items in the condensed consolidated statements of comprehensive income or capitalized to inventory. Rental expense for leases with terms of a month or less are excluded from the total lease cost above. Seaboard’s operating lease assets and liabilities are reported separately in the condensed consolidated balance sheet. The classification of Seaboard’s finance leases in the condensed consolidated balance sheet as of September 28, 2019 was as follows: Balance Description Balance Sheet Classification (Millions of dollars) Finance lease right of use assets, net Property, plant and equipment, net $ 39 Finance lease liabilities Other current liabilities 4 Non-current finance lease liabilities Other liabilities 30 Maturities of lease liabilities as of September 28, 2019 were as follows: Operating Finance (Millions of dollars) Leases Leases Remainder of 2019 $ 41 $ 1 2020 117 6 2021 103 6 2022 77 6 2023 56 5 Thereafter 205 23 Total undiscounted lease payments 599 47 Less imputed interest (120) (13) Total lease liability $ 479 $ 34 Seaboard’s weighted average discount rate for operating and finances leases was 6.63% and 6.96%, respectively, as of September 28, 2019. There were estimates and judgments made in determining Seaboard’s multiple discount rates based on term, country and currency, including developing a secured credit rating and spreading market yield data across maturities and country risk-free rates. Below is Seaboard’s commitments table as of December 31, 2018 that disclosed operating lease payments for the next five years and thereafter. Seaboard had no material capital leases as of December 31, 2018. Years ended December 31, (Millions of dollars) 2019 2020 2021 2022 2023 Thereafter Ports $ 18 $ 18 $ 19 $ 19 $ 20 $ 109 Vessel, time and voyage-charters 58 27 26 13 8 25 Contract grower agreements 47 41 37 27 18 61 Other operating lease payments 18 13 9 8 6 15 Total unrecognized non-cancelable commitments $ 141 $ 99 $ 91 $ 67 $ 52 $ 210 |
Lines of Credit, Long-Term Debt
Lines of Credit, Long-Term Debt, Commitments and Contingencies | 9 Months Ended |
Sep. 28, 2019 | |
Lines of Credit, Long-term Debt, Commitments and Contingencies | |
Lines of Credit, Long-Term Debt, Commitments and Contingencies | Note 5 – Lines of Credit, Long-Term Debt, Commitments and Contingencies Lines of Credit The outstanding balance under uncommitted lines of credit was $210 million as of September 28, 2019, with $127 million denominated in South African rand, $22 million denominated in Canadian dollars, $18 million denominated in Zambian kwacha and $3 million denominated in Brazilian real. The weighted average interest rate for outstanding uncommitted lines of credit was 7.30% and 7.76% as of September 28, 2019 and December 31, 2018, respectively. The uncommitted lines of credit are unsecured and do not require compensating balances. Also, Seaboard has a $100 million committed credit line secured by certain short-term investments with no balance outstanding as of September 28, 2019. During the third quarter of 2019, Seaboard renewed this credit line through September 25, 2020, with no other changes to the agreement. S eaboard’s borrowing capacity under its uncommitted and committed lines of credit was reduced by the outstanding balances and letters of credit totaling $18 million as of September 28, 2019. Long-Term Debt Long-term debt includes borrowings under term loans and other contractual obligations for payment, including notes payable. The following is a summary of long-term debt: September 28, December 31, (Millions of dollars) 2019 2018 Term Loan due 2028 $ 695 $ 698 Foreign subsidiary obligations due 2019 through 2023 97 81 Total long-term debt at face value 792 779 Current maturities of long-term debt and unamortized discount and costs (59) (40) Long-term debt, less current maturities and unamortized discount and costs $ 733 $ 739 The interest rate on the Term Loan due 2028 was 3.74% and 4.15% as of September 28, 2019 and December 31, 2018, respectively. The weighted average interest rate on Seaboard’s foreign subsidiary obligations was 3.76% and 3.80% as of September 28, 2019 and December 31, 2018, respectively. Seaboard was in compliance with all restrictive debt covenants relating to these agreements as of September 28, 2019. Contingencies On June 28, 2018, Wanda Duryea and eleven other indirect purchasers of pork products, acting on behalf of themselves and a putative class of indirect purchasers of pork products, filed a class action complaint in the U.S. District Court for the District of Minnesota against several pork processors, including Seaboard Foods LLC and Agri Stats, Inc., a company described in the complaint as a data sharing service. Subsequent to the filing of this initial complaint, additional class action complaints making similar claims on behalf of putative classes of direct and indirect purchasers were filed in the U.S. District Court for the District of Minnesota. The complaints were amended and consolidated, for pre-trial purposes, into three consolidated putative class actions brought on behalf of (a) direct purchasers, (b) consumer indirect purchasers and (c) commercial and institutional indirect purchasers. The amended complaints named Seaboard Corporation as an additional defendant. The consolidated actions are styled In re Pork Antitrust Litigation On March 20, 2018, the bankruptcy trustee (the “Trustee”) for Cereoil Uruguay S.A. (“Cereoil”) filed a suit in the Bankruptcy Court of First Instance in Uruguay that was served during the second quarter of 2018 naming as parties Seaboard and Seaboard’s subsidiaries, Seaboard Overseas Limited (“SOL”) and Seaboard Uruguay Holdings Ltd. (“Seaboard Uruguay”). Seaboard has a 45% indirect ownership of Cereoil. The suit seeks an order requiring Seaboard, SOL, and Seaboard Uruguay to reimburse Cereoil the amount of $22 million, contending that deliveries of soybeans to SOL pursuant to purchase agreements should be set aside as fraudulent conveyances. Seaboard intends to defend this case vigorously. It is impossible at this stage to determine the probability of a favorable or unfavorable outcome resulting from this suit. In the event of an adverse ruling, Seaboard and its two subsidiaries could be ordered to pay the amount of $22 million. Any award in this case would offset against any award in the additional case described below filed by the Trustee on April 27, 2018. On April 27, 2018, the Trustee for Cereoil filed another suit in the Bankruptcy Court of First Instance in Uruguay that was served during the second quarter of 2018 naming as parties Seaboard, SOL, Seaboard Uruguay, all directors of Cereoil, including two individuals employed by Seaboard who served as directors at the behest of Seaboard, and the Chief Financial Officer of Cereoil, an employee of Seaboard who also served at the behest of Seaboard (collectively, the “Cereoil Defendants”). The Trustee contends that the Cereoil Defendants acted with willful misconduct to cause Cereoil’s insolvency, and thus should be ordered to pay all liabilities of Cereoil, net of assets. The bankruptcy filing lists total liabilities of $53 million and assets of $30 million. Seaboard intends to defend this case vigorously. It is impossible at this stage to determine the probability of a favorable or unfavorable outcome resulting from this suit. In the event of an adverse ruling, Seaboard and the other Cereoil Defendants could be ordered to pay the amount of the net indebtedness of Cereoil, which based on the bankruptcy schedules would total $23 million. It is possible that the net indebtedness could be higher than this amount if Cereoil’s liabilities are greater than $53 million and/or Cereoil’s assets are worth less than $30 million. In addition, in the event of an adverse ruling, the Bankruptcy Court of First Instance could order payment of the Trustee’s professional fees, interest, and other expenses. Any award in this case would offset against any award in the case described above filed on March 20, 2018. A creditor of Cereoil which has a claim in the bankruptcy proceeding pending in Uruguay of approximately $10 million, plus accrued interest, has threatened to bring legal action in the United States against Seaboard alleging on various legal theories that Seaboard is responsible for this same indebtedness. Seaboard is evaluating this claim. On May 15, 2018, the Trustee for Nolston S.A. (“Nolston”) filed a suit in the Bankruptcy Court of First Instance in Uruguay that was served during the second quarter of 2018 naming as parties Seaboard and the other Cereoil Defendants. Seaboard has a 45% indirect ownership of Nolston. The Trustee contends that the Cereoil Defendants acted with willful misconduct to cause Nolston’s insolvency, and thus should be ordered to pay all liabilities of Nolston, net of assets. The bankruptcy filing lists total liabilities of $29 million and assets of $15 million. Seaboard intends to defend this case vigorously. It is impossible at this stage to determine the probability of a favorable or unfavorable outcome resulting from this suit. In the event of an adverse ruling, Seaboard and the other Cereoil Defendants could be ordered to pay the amount of the net indebtedness of Nolston, which based on the bankruptcy schedules would total $14 million. It is possible that the net indebtedness could be higher than this amount if Nolston’s liabilities are greater than $29 million and/or Nolston’s assets are worth less than $15 million. In addition, in the event of an adverse ruling, the Bankruptcy Court of First Instance could order payment of the Trustee’s professional fees, interest, and other expenses. On September 18, 2014, and subsequently in 2015 and 2016, Seaboard received a number of grand jury subpoenas and informal requests for information from the Department of Justice, Asset Forfeiture and Money Laundering Section (“AFMLS”), seeking records related to specified foreign companies and individuals. The companies and individuals as to which the requested records relate were not affiliated with Seaboard, although Seaboard has also received subpoenas and requests for additional information relating to an affiliate of Seaboard. During 2017, Seaboard received grand jury subpoenas requesting documents and information related to money transfers and bank accounts in the Democratic Republic of Congo (“DRC”) and other African countries and requests to interview certain Seaboard employees and to obtain testimony before a grand jury. 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 reasonably estimate the amount of potential loss or range of potential loss, if any, resulting from the government’s inquiry. 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. Guarantees 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 September 28, 2019, guarantees outstanding to affiliates and third parties were not material. Seaboard has not accrued a liability for any of the affiliate or third-party guarantees as management considers the likelihood of loss to be remote. See Lines of Credit above for discussion of letters of credit . |
Employee Benefits
Employee Benefits | 9 Months Ended |
Sep. 28, 2019 | |
Employee Benefits | |
Employee Benefits | Note 6 – Employee Benefits Seaboard has a defined benefit pension plan for certain domestic salaried and clerical employees. At this time, no contributions are expected to be made to the plan in 2019. Seaboard also sponsors non-qualified, unfunded supplemental executive plans, and has 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 September 28, September 29, September 28, September 29, (Millions of dollars) 2019 2018 2019 2018 Components of net periodic benefit cost: Service cost $ 2 $ 2 $ 6 $ 7 Interest cost 3 3 9 8 Expected return on plan assets (2) (3) (7) (8) Amortization and other 1 2 5 5 Net periodic benefit cost $ 4 $ 4 $ 13 $ 12 Seaboard participated in a multi-employer pension fund, the United Food and Commercial Workers International Union-Industry Pension Fund (the “Fund”). Pursuant to a collective bargaining agreement, Seaboard made contributions to the Fund based on hours worked by certain union employees who are participants in the Fund. Effective July 22, 2019, after ratification of a renewed collective bargaining agreement, Seaboard ceased contributing to the Fund, which will result in the termination of participation in the Fund. Seaboard recorded an estimated $14 million withdrawal liability during the third quarter of 2019, that will be payable in quarterly installments over 20 years . |
Derivatives and Fair Value of F
Derivatives and Fair Value of Financial Instruments | 9 Months Ended |
Sep. 28, 2019 | |
Derivatives and Fair Value of Financial Instruments | |
Derivatives and Fair Value of Financial Instruments | Note 7 – Derivatives and Fair Value of Financial Instruments The following tables shows assets and liabilities measured at fair value on a recurring basis as of September 28, 2019 and December 31, 2018, and also the level within the fair value hierarchy used to measure each category of assets and liabilities. The trading securities classified as other current assets below are assets held for Seaboard’s deferred compensation plans. Balance September 28, (Millions of dollars) 2019 Level 1 Level 2 Level 3 Assets: Trading securities – short-term investments: Domestic equity securities $ 669 $ 669 $ — $ — Domestic debt securities 413 115 298 — Foreign equity securities 191 191 — — High yield securities 57 10 47 — Foreign debt securities 39 — 39 — Collateralized loan obligations 27 — 27 — Money market funds held in trading accounts 13 13 — — Term deposits 4 4 — — Other trading securities 5 5 — — Trading securities – other current assets: Domestic equity securities 37 37 — — Money market fund held in trading accounts 5 5 — — Foreign equity securities 2 2 — — Fixed income securities 2 2 — — Other 1 — 1 — Derivatives: Commodities (1) 6 6 — — Foreign currencies 1 — 1 — Total Assets $ 1,472 $ 1,059 $ 413 $ — Liabilities: Contingent consideration $ 12 $ — $ — $ 12 Derivatives: Commodities (1) 6 6 — — Foreign currencies 1 — 1 — Total Liabilities $ 19 $ 6 $ 1 $ 12 (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 September 28, 2019, the commodity derivatives had a margin account balance of $19 million resulting in a net other current asset in the condensed consolidated balance sheet of $19 million. Balance December 31, (Millions of dollars) 2018 Level 1 Level 2 Level 3 Assets: Trading securities – short-term investments: Domestic equity securities $ 632 $ 632 $ — $ — Domestic debt securities 268 215 53 — Foreign equity securities 218 218 — — Money market funds held in trading accounts 146 146 — — Collateralized loan obligations 28 — 28 — High yield securities 19 7 12 — Foreign debt securities 16 2 14 — Term deposits 9 9 — — Other trading securities 5 5 — — Trading securities – other current assets: Domestic equity securities 32 32 — — Money market fund held in trading accounts 5 5 — — Foreign equity securities 3 3 — — Fixed income securities 3 3 — — Other 1 1 — — Derivatives: Commodities (1) 6 4 2 — Foreign currencies 2 — 2 — Total Assets $ 1,393 $ 1,282 $ 111 $ — Liabilities: Trading securities – short-term investments: Other trading securities $ 5 $ — $ 5 $ — Contingent consideration 13 — — 13 Derivatives: Commodities (1) 4 $ 4 $ — $ — Total Liabilities $ 22 $ 4 $ 5 $ 13 (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, 2018, the commodity derivatives had a margin account balance of $15 million resulting in a net other current asset in the condensed consolidated balance sheet of $17 million. Financial instruments consisting of cash and cash equivalents, net receivables, lines of credit and accounts payable are carried at cost, which approximates fair value as a result of the short-term nature of the instruments. The fair value of short-term investments is measured using multiple levels. Domestic debt securities categorized as level 1 in the fair value hierarchy include debt securities held in mutual funds and ETFs. Domestic debt securities categorized as level 2 include corporate bonds, mortgage-backed securities, asset-backed securities and U.S. Treasuries. Foreign debt securities categorized as level 1 in the fair value hierarchy include debt securities held in mutual funds and ETFs with a country of origin concentration outside the U.S. Foreign debt securities categorized as level 2 include foreign government or government related securities and asset-backed securities with a country of origin concentration outside the U.S. High yield securities categorized as level 1 in the fair value hierarchy include high yield securities held in mutual funds and ETFs, and level 2 includes corporate bonds and bank loans. 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 mostly variable-rate, the carrying amount approximates fair value. If Seaboard’s long-term debt was measured at fair value in its condensed consolidated balance sheets, it would have been classified as level 2 in the fair value hierarchy. The fair value of Seaboard’s contingent consideration related to a 2018 acquisition was classified as a level 3 in the fair value hierarchy since the calculation is dependent upon projected company specific inputs using a Monte Carlo simulation. Seaboard will remeasure the estimated fair value of the contingent consideration liability until settled. 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 equity prices could have a material impact on earnings in any given reporting period. The nature of Seaboard’s market risk exposure has not changed materially since December 31, 2018. 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. As of September 28, 2019, Seaboard had open net derivative contracts to purchase 34 million pounds of hogs and 32 million bushels of grain and open net derivative contracts to sell 84 million pounds of soybean oil and 4 million gallons of heating oil. As of December 31, 2018, Seaboard had open net derivative contracts to purchase 33 million bushels of grain and 8 million pounds of soybean oil and open net derivative contracts to sell 26 million pounds of hogs and 7 million gallons of heating 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. As of September 28, 2019 and December 31, 2018, 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 $34 million and $82 million, respectively, primarily related to the South African rand and euro. From time to time, Seaboard is subject to counterparty credit risk related to its foreign currency exchange agreements should the counterparties fail to perform according to the terms of the applicable agreements. As of September 28, 2019, Seaboard had a maximum aggregate amount of loss due to credit risk of $1 million with three counterparties related to foreign currency exchange agreements. Seaboard does not hold any collateral related to these agreements. Equity Futures Contracts Seaboard enters into equity futures contracts to manage the equity price risk with respect to certain short-term investments. Equity futures contracts are recorded at fair value with changes in value marked-to-market as a component of other investment income (loss), net in the condensed consolidated statements of comprehensive income. The notional amounts of these equity futures contracts were $2 million and $97 million as of September 28, 2019 and December 31, 2018, respectively. 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: Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, (Millions of dollars) 2019 2018 2019 2018 Commodities Cost of sales $ (17) $ — $ (48) $ (16) Foreign currencies Cost of sales 1 2 5 (2) Equity Other investment income (loss), net — — (3) (10) The following table provides the fair value of each type of derivative held and where each derivative is included in the condensed consolidated balance sheets: Asset Derivatives Liability Derivatives September 28, December 31, September 28, December 31, (Millions of dollars) 2019 2018 2019 2018 Commodities (1) Other current assets $ 6 $ 6 Other current liabilities $ 6 $ 4 Foreign currencies Other current assets 1 2 Other current liabilities 1 — Equity (1) Short-term investments — — Short-term investments — 5 (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. Seaboard’s equity derivatives are also presented on a net basis, including netting the derivatives within short-term investments. |
Stockholders' Equity and Accumu
Stockholders' Equity and Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 28, 2019 | |
Stockholders' Equity and Accumulated Other Comprehensive Loss | |
Stockholders' Equity and Accumulated Other Comprehensive Loss | Note 8 – Stockholders’ Equity and Accumulated Other Comprehensive Loss In October 2019, the Board of Directors extended through October 31, 2020 Seaboard’s share repurchase program. 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, 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 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. As of September 28, 2019, $78 million remained available for repurchase under this program. Seaboard repurchased 4,369 shares of common stock at a total price of $17 million during the nine months ended September 28, 2019. The changes in the components of other comprehensive income (loss), net of related taxes, are as follows: Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, (Millions of dollars) 2019 2018 2019 2018 Foreign currency translation adjustment $ 2 $ (25) $ (9) $ (52) Unrecognized pension cost (1) 1 1 7 (1) Other comprehensive income (loss), net of tax $ 3 $ (24) $ (2) $ (53) (1) This primarily represents the amortization of actuarial losses that were included in net periodic benefit cost. Amounts for the nine months ended September 29, 2018 included other actuarial adjustments. The components of accumulated other comprehensive loss, net of related taxes, are as follows: September 28, December 31, (Millions of dollars) 2019 2018 Cumulative foreign currency translation adjustment $ (358) $ (349) Unrecognized pension cost (54) (61) Total accumulated other comprehensive loss $ (412) $ (410) The cumulative foreign currency translation adjustment primarily represents the effect of the Argentine peso currency exchange fluctuation on the net assets of the Sugar & Alcohol segment. However, effective in the third quarter of 2018, the Sugar & Alcohol segment’s functional currency changed from the Argentine peso to the U.S. dollar due to highly inflationary accounting. As of September 28, 2019 and September 29, 2018, income taxes for the cumulative unrecognized pension cost were recorded using an effective tax rate of 26% except for unrecognized pension cost of $20 million and $23 million, respectively, related to employees at certain subsidiaries for which no tax benefit was recorded. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 28, 2019 | |
Revenue Recognition | |
Revenue Recognition | Note 9 – Revenue Recognition Seaboard has multiple segments with diverse revenue streams. The following tables present Seaboard’s sales disaggregated by revenue source and segment: Three Months Ended September 28, 2019 (Millions of dollars) Pork CT&M Marine Sugar & Alcohol Power All Other Consolidated Totals Major Products/Services Lines: Products $ 381 $ 906 $ — $ 32 $ — $ 5 $ 1,324 Transportation — — 256 — — — 256 Energy 35 — — 4 30 — 69 Other 7 7 — — — — 14 Segment/Consolidated Totals $ 423 $ 913 $ 256 $ 36 $ 30 $ 5 $ 1,663 Three Months Ended September 29, 2018 (Millions of dollars) Pork CT&M Marine Sugar & Alcohol Power All Other Consolidated Totals Major Products/Services Lines: Products $ 334 $ 894 $ — $ 39 $ — $ 5 $ 1,272 Transportation 4 — 259 — — — 263 Energy 66 — — 4 34 — 104 Other 8 4 — — — — 12 Segment/Consolidated Totals $ 412 $ 898 $ 259 $ 43 $ 34 $ 5 $ 1,651 Nine Months Ended September 28, 2019 (Millions of dollars) Pork CT&M Marine Sugar & Alcohol Power All Other Consolidated Totals Major Products/Services Lines: Products $ 1,165 $ 2,731 $ — $ 86 $ — $ 13 $ 3,995 Transportation 7 — 769 — — 1 777 Energy 122 — — 5 92 — 219 Other 24 13 — — — — 37 Segment/Consolidated Totals $ 1,318 $ 2,744 $ 769 $ 91 $ 92 $ 14 $ 5,028 Nine Months Ended September 29, 2018 (Millions of dollars) Pork CT&M Marine Sugar & Alcohol Power All Other Consolidated Totals Major Products/Services Lines: Products $ 1,060 $ 2,560 $ — $ 149 $ — $ 13 $ 3,782 Transportation 12 — 771 — — — 783 Energy 225 — — 6 88 — 319 Other 23 14 — — — — 37 Segment/Consolidated Totals $ 1,320 $ 2,574 $ 771 $ 155 $ 88 $ 13 $ 4,921 Revenue from goods and services transferred to customers at a single point in time accounted for approximately 85% of Seaboard’s net sales for the three and nine months ended September 28, 2019 and September 29, 2018. Substantially all of the sales in Seaboard’s Marine segment are recognized ratably over the transit time for each voyage as Seaboard believes this is a faithful depiction of the performance obligation to its customers. Almost all of Seaboard’s contracts with its customers are short-term, defined as less than one year. As of September 28, 2019, Seaboard had $8 million of remaining performance obligations that extend beyond one year, of which 20% is expected to be recognized as net sales in 2019 and the remaining balance in 2020. Deferred revenue represents cash payments received in advance of Seaboard’s performance or revenue billed that is unearned. The CT&M segment, which operates internationally with sales in Africa, South America, the Caribbean and Asia, requires certain customers to pay in advance or upon delivery to avoid collection risk. The Marine segment’s deferred revenue balance primarily relates to the unearned portion of billed revenue when a ship is on the water and has not arrived at the designated port. The Pork segment has a marketing agreement with Triumph Foods, LLC, of which certain fees paid at commencement are recognized over the term of the agreement. Deferred revenue balances are reduced when revenue is recognized. Except for the long-term performance obligation discussed above, the deferred revenue balance as of December 31, 2018 was fully recognized as revenue during the three months ended March 30, 2019. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 28, 2019 | |
Income Taxes | |
Income Taxes | Note 10 – Income Taxes Seaboard computes its year-to-date provision for income taxes by applying the estimated annual effective tax rate to year-to-date pretax income or loss and adjusts the provision for discrete tax items recorded in the period. Seaboard’s projected annual income tax rate for the third quarter of 2019 included $3 million of anticipated tax expense associated with the global intangible low-taxed income (“GILTI”) provision and no anticipated tax expense associated with the base-erosion and anti-abuse tax (“BEAT”) provision. In the normal course of business, Seaboard’s tax filings are subject to audit by federal, state and foreign tax authorities. The Internal Revenue Service began an examination of Seaboard’s 2016 U.S. income tax return during the third quarter of 2019. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 28, 2019 | |
Segment Information | |
Segment Information | Note 11 – Segment Information Seaboard has six reportable segments: Pork, CT&M, Marine, Sugar & Alcohol, Power and Turkey, each offering a specific product or service. For details on the respective products or services, see Note 14 to the consolidated financial statements included in Seaboard’s annual report for the year ended December 31, 2018. Below are segment updates from year-end. In February 2019, the Pork segment entered into an asset purchase agreement to buy an idle ethanol plant in Hugoton, Kansas for approximately $40 million. Seaboard accounted for this transaction as an asset acquisition as no workforce or substantive processes were acquired. The purchase price was allocated to property, plant and equipment based on a relative fair value basis. In September 2019, Seaboard’s Power segment sold its 29.9% noncontrolling interest in a Dominican Republic electricity generation facility for $23 million cash, net of $1 million in selling expenses and taxes and recorded a $6 million note receivable in other non-current assets in the condensed consolidated balance sheet. There was no gain or loss recognized in the condensed consolidated statements of comprehensive income upon the sale. The Power segment is currently constructing a new floating power barge for use in the Dominican Republic that is anticipated to begin operations in 2021. The total project is expected to exceed $160 million. Seaboard’s Power segment continues to explore strategic alternatives, including the possible sale or relocation of the existing power barge. The Turkey segment, accounted for using the equity method, represents Seaboard’s investment in Butterball, LLC (“Butterball”). In August 2019, Seaboard provided approximately $8 million in loans to Butterball that mature on October 30, 2020. Interest accrues on the principal outstanding balance at the prime rate plus 2% per annum and is payable monthly. Notes receivable issued to affiliates are presented in receivables, net or other non-current assets in the condensed consolidated balance sheet depending upon the remaining maturity. As of September 28, 2019 and December 31, 2018, Butterball had total assets of $1,193 million and $1,072 million, respectively. Butterball’s summarized income statement information was as follows: Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, (Millions of dollars) 2019 2018 2019 2018 Net sales $ 416 $ 399 $ 1,062 $ 1,046 Operating loss $ (15) $ (19) $ (42) $ (29) Net loss $ (22) $ (23) $ (59) $ (36) The following tables set forth specific financial information about each segment as reviewed by Seaboard’s management. Operating income (loss) for segment reporting is prepared on the same basis as that used for consolidated operating income. Operating income (loss), along with income or loss from affiliates for the Pork, CT&M and Turkey segments, is used as the measure of evaluating segment performance because management does not consider interest, other investment income (loss) and income tax benefit (expense) on a segment basis. Sales to External Customers: Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, (Millions of dollars) 2019 2018 2019 2018 Pork $ 423 $ 412 $ 1,318 $ 1,320 CT&M 913 898 2,744 2,574 Marine 256 259 769 771 Sugar & Alcohol 36 43 91 155 Power 30 34 92 88 All Other 5 5 14 13 Segment/Consolidated Totals $ 1,663 $ 1,651 $ 5,028 $ 4,921 Operating Income (Loss): Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, (Millions of dollars) 2019 2018 2019 2018 Pork $ (22) $ 2 $ (31) $ 111 CT&M 14 21 50 30 Marine (2) 9 2 9 Sugar & Alcohol (1) 5 (9) 17 Power 9 7 21 13 All Other 1 1 2 2 Segment Totals (1) 45 35 182 Corporate (5) (8) (22) (16) Consolidated Totals $ (6) $ 37 $ 13 $ 166 Income (Loss) from Affiliates: Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, (Millions of dollars) 2019 2018 2019 2018 Pork $ (5) $ (8) $ (19) $ (21) CT&M (1) (4) (6) (10) Marine 1 — 2 1 Sugar & Alcohol — 1 1 1 Power 1 4 3 7 Turkey (11) (11) (30) (18) Segment/Consolidated Totals $ (15) $ (18) $ (49) $ (40) Total Assets: September 28, December 31, (Millions of dollars) 2019 2018 Pork $ 1,577 $ 1,304 CT&M 1,527 1,423 Marine 535 345 Sugar & Alcohol 143 138 Power 250 203 Turkey 272 295 All Other 11 8 Segment Totals 4,315 3,716 Corporate 1,631 1,591 Consolidated Totals $ 5,946 $ 5,307 Investments in and Advances to Affiliates: September 28, December 31, (Millions of dollars) 2019 2018 Pork $ 180 $ 192 CT&M 250 255 Marine 32 28 Sugar & Alcohol 5 4 Power 3 30 Turkey 264 295 Segment/Consolidated Totals $ 734 $ 804 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 of general corporate management oversight costs. Corporate assets include short-term investments, other current assets related to deferred compensation plans, fixed assets 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 Basis o
Accounting Policies and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 28, 2019 | |
Summary of Significant Accounting Policies | |
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, lease liabilities and right of use (“ROU”) assets and accrued pension liability. Actual results could differ from those estimates. |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Non-cash investing and financing activities for the nine months ended September 28, 2019, included leased assets obtained in exchange for new operating and finance lease liabilities of $62 million and $31 million, respectively. Cash paid for amounts included in the measurement of operating lease liabilities was $101 million, all included in net cash from operating activities. Cash paid for amounts included in the measurement of finance lease liabilities was $2 million. Seaboard reports the amortization of ROU assets and the change in operating lease liabilities in other liabilities, exclusive of debt in the condensed consolidated statement of cash flows. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The change in the carrying amount of goodwill of $2 million from year-end to September 28, 2019 was related to foreign currency exchange differences within the Commodity Trading and Milling (“CT&M”) segment. As of September 28, 2019, intangible assets were $62 million, net of accumulated amortization of $13 million. |
Recently Issued Accounting Standards | Recently Issued Accounting Standard Adopted On January 1, 2019, Seaboard adopted guidance which requires the recognition of ROU assets and lease liabilities for most leases. As a result of this adoption, Seaboard recorded operating lease ROU assets of $460 million, adjusted for the deferred rent liability balance at year-end, and lease liabilities of $498 million. The adoption of the new guidance did not have a material impact on the condensed consolidated statement of comprehensive income and the condensed consolidated statement of cash flows. The accounting for finance leases, formerly called capital leases, remained substantially unchanged. Seaboard adopted the new guidance using the effective date method and, therefore, prior period financials were not revised. Seaboard elected the package of practical expedients available upon transition, which permitted Seaboard to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs. See Note 4 for additional details on the impact of adopting this new accounting standard. Recently Issued Accounting Standard Not Yet Adopted In June 2016, the Financial Accounting Standards Board issued guidance on the measurement of financial instrument credit losses that requires, among other things, the use of a new current expected credit loss ("CECL") model in order to determine the allowance for doubtful accounts with respect to accounts receivable and notes receivable. The CECL model requires estimation of lifetime expected credit loss based on historical experience, current conditions and reasonable supportable forecasts. The new guidance replaces the existing incurred loss model and will be effective for Seaboard on January 1, 2020. The adoption of this standard will be through a cumulative-effect adjustment to retained earnings as of the effective date. Seaboard is currently evaluating the impact of the new guidance on the consolidated financial statements. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Investments | |
Summary of the estimated fair value of short-term investments classified as trading securities | September 28, December 31, (Millions of dollars) 2019 2018 Domestic equity securities $ 669 $ 632 Domestic debt securities 413 268 Foreign equity securities 191 218 High yield securities 57 19 Foreign debt securities 39 16 Collateralized loan obligations 27 28 Money market funds held in trading securities 13 146 Term deposits 4 9 Other trading securities 5 — Total trading short-term investments $ 1,418 $ 1,336 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Inventories | |
Summary of inventories | September 28, December 31, (Millions of dollars) 2019 2018 At lower of LIFO cost or market: Hogs and materials $ 376 $ 361 Fresh pork and materials 35 36 LIFO adjustment (66) (58) Total inventories at lower of LIFO cost or market 345 339 At lower of FIFO cost and net realizable value: Grains, oilseeds and other commodities 306 229 Sugar produced and in process 25 17 Other 78 81 Total inventories at lower of FIFO cost and net realizable value 409 327 Grain, flour and feed at lower of weighted average cost and net realizable value 162 149 Total inventories $ 916 $ 815 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Leases | |
Summary of components of lease costs | Three Nine Months Months Ended Ended (Millions of dollars) September 28, 2019 September 28, 2019 Operating lease cost $ 33 $ 100 Finance lease cost: Amortization of right of use assets 1 2 Interest on lease liabilities 1 1 Variable lease cost 3 7 Short-term lease cost 12 35 Total lease cost $ 50 $ 145 |
Summary of finance leases in condensed consolidated balance sheet | The classification of Seaboard’s finance leases in the condensed consolidated balance sheet as of September 28, 2019 was as follows: Balance Description Balance Sheet Classification (Millions of dollars) Finance lease right of use assets, net Property, plant and equipment, net $ 39 Finance lease liabilities Other current liabilities 4 Non-current finance lease liabilities Other liabilities 30 |
Summary of maturities of operating lease liabilities | Operating Finance (Millions of dollars) Leases Leases Remainder of 2019 $ 41 $ 1 2020 117 6 2021 103 6 2022 77 6 2023 56 5 Thereafter 205 23 Total undiscounted lease payments 599 47 Less imputed interest (120) (13) Total lease liability $ 479 $ 34 |
Summary of maturities of financing lease liabilities | Operating Finance (Millions of dollars) Leases Leases Remainder of 2019 $ 41 $ 1 2020 117 6 2021 103 6 2022 77 6 2023 56 5 Thereafter 205 23 Total undiscounted lease payments 599 47 Less imputed interest (120) (13) Total lease liability $ 479 $ 34 |
Schedule of commitments as of December 31, 2018 | Below is Seaboard’s commitments table as of December 31, 2018 that disclosed operating lease payments for the next five years and thereafter. Seaboard had no material capital leases as of December 31, 2018. Years ended December 31, (Millions of dollars) 2019 2020 2021 2022 2023 Thereafter Ports $ 18 $ 18 $ 19 $ 19 $ 20 $ 109 Vessel, time and voyage-charters 58 27 26 13 8 25 Contract grower agreements 47 41 37 27 18 61 Other operating lease payments 18 13 9 8 6 15 Total unrecognized non-cancelable commitments $ 141 $ 99 $ 91 $ 67 $ 52 $ 210 |
Lines of Credit, Long-term De_2
Lines of Credit, Long-term Debt, Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Lines of Credit, Long-term Debt, Commitments and Contingencies | |
Summary of long-term debt | September 28, December 31, (Millions of dollars) 2019 2018 Term Loan due 2028 $ 695 $ 698 Foreign subsidiary obligations due 2019 through 2023 97 81 Total long-term debt at face value 792 779 Current maturities of long-term debt and unamortized discount and costs (59) (40) Long-term debt, less current maturities and unamortized discount and costs $ 733 $ 739 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Employee Benefits | |
Schedule of net periodic benefit cost of plans | Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, (Millions of dollars) 2019 2018 2019 2018 Components of net periodic benefit cost: Service cost $ 2 $ 2 $ 6 $ 7 Interest cost 3 3 9 8 Expected return on plan assets (2) (3) (7) (8) Amortization and other 1 2 5 5 Net periodic benefit cost $ 4 $ 4 $ 13 $ 12 |
Derivatives and Fair Value of_2
Derivatives and Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Derivatives and Fair Value of Financial Instruments | |
Schedule of assets and liabilities measured at fair value on a recurring basis | Balance September 28, (Millions of dollars) 2019 Level 1 Level 2 Level 3 Assets: Trading securities – short-term investments: Domestic equity securities $ 669 $ 669 $ — $ — Domestic debt securities 413 115 298 — Foreign equity securities 191 191 — — High yield securities 57 10 47 — Foreign debt securities 39 — 39 — Collateralized loan obligations 27 — 27 — Money market funds held in trading accounts 13 13 — — Term deposits 4 4 — — Other trading securities 5 5 — — Trading securities – other current assets: Domestic equity securities 37 37 — — Money market fund held in trading accounts 5 5 — — Foreign equity securities 2 2 — — Fixed income securities 2 2 — — Other 1 — 1 — Derivatives: Commodities (1) 6 6 — — Foreign currencies 1 — 1 — Total Assets $ 1,472 $ 1,059 $ 413 $ — Liabilities: Contingent consideration $ 12 $ — $ — $ 12 Derivatives: Commodities (1) 6 6 — — Foreign currencies 1 — 1 — Total Liabilities $ 19 $ 6 $ 1 $ 12 (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 September 28, 2019, the commodity derivatives had a margin account balance of $19 million resulting in a net other current asset in the condensed consolidated balance sheet of $19 million. Balance December 31, (Millions of dollars) 2018 Level 1 Level 2 Level 3 Assets: Trading securities – short-term investments: Domestic equity securities $ 632 $ 632 $ — $ — Domestic debt securities 268 215 53 — Foreign equity securities 218 218 — — Money market funds held in trading accounts 146 146 — — Collateralized loan obligations 28 — 28 — High yield securities 19 7 12 — Foreign debt securities 16 2 14 — Term deposits 9 9 — — Other trading securities 5 5 — — Trading securities – other current assets: Domestic equity securities 32 32 — — Money market fund held in trading accounts 5 5 — — Foreign equity securities 3 3 — — Fixed income securities 3 3 — — Other 1 1 — — Derivatives: Commodities (1) 6 4 2 — Foreign currencies 2 — 2 — Total Assets $ 1,393 $ 1,282 $ 111 $ — Liabilities: Trading securities – short-term investments: Other trading securities $ 5 $ — $ 5 $ — Contingent consideration 13 — — 13 Derivatives: Commodities (1) 4 $ 4 $ — $ — Total Liabilities $ 22 $ 4 $ 5 $ 13 (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, 2018, the commodity derivatives had a margin account balance of $15 million resulting in a net other current asset in the condensed consolidated balance sheet of $17 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 September 28, September 29, September 28, September 29, (Millions of dollars) 2019 2018 2019 2018 Commodities Cost of sales $ (17) $ — $ (48) $ (16) Foreign currencies Cost of sales 1 2 5 (2) Equity Other investment income (loss), net — — (3) (10) |
Schedule of fair value of each type of derivative and its location in the condensed consolidated balance sheets | Asset Derivatives Liability Derivatives September 28, December 31, September 28, December 31, (Millions of dollars) 2019 2018 2019 2018 Commodities (1) Other current assets $ 6 $ 6 Other current liabilities $ 6 $ 4 Foreign currencies Other current assets 1 2 Other current liabilities 1 — Equity (1) Short-term investments — — Short-term investments — 5 (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. Seaboard’s equity derivatives are also presented on a net basis, including netting the derivatives within short-term investments. |
Stockholders' Equity and Accu_2
Stockholders' Equity and Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Stockholders' Equity and Accumulated Other Comprehensive Loss | |
Schedule of changes in the components of other comprehensive loss, net of related taxes | Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, (Millions of dollars) 2019 2018 2019 2018 Foreign currency translation adjustment $ 2 $ (25) $ (9) $ (52) Unrecognized pension cost (1) 1 1 7 (1) Other comprehensive income (loss), net of tax $ 3 $ (24) $ (2) $ (53) (1) This primarily represents the amortization of actuarial losses that were included in net periodic benefit cost. Amounts for the nine months ended September 29, 2018 included other actuarial adjustments. |
Schedule of components of accumulated other comprehensive loss, net of related taxes | September 28, December 31, (Millions of dollars) 2019 2018 Cumulative foreign currency translation adjustment $ (358) $ (349) Unrecognized pension cost (54) (61) Total accumulated other comprehensive loss $ (412) $ (410) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Revenue Recognition | |
Schedule of sales disaggregated by revenue source and segment | Three Months Ended September 28, 2019 (Millions of dollars) Pork CT&M Marine Sugar & Alcohol Power All Other Consolidated Totals Major Products/Services Lines: Products $ 381 $ 906 $ — $ 32 $ — $ 5 $ 1,324 Transportation — — 256 — — — 256 Energy 35 — — 4 30 — 69 Other 7 7 — — — — 14 Segment/Consolidated Totals $ 423 $ 913 $ 256 $ 36 $ 30 $ 5 $ 1,663 Three Months Ended September 29, 2018 (Millions of dollars) Pork CT&M Marine Sugar & Alcohol Power All Other Consolidated Totals Major Products/Services Lines: Products $ 334 $ 894 $ — $ 39 $ — $ 5 $ 1,272 Transportation 4 — 259 — — — 263 Energy 66 — — 4 34 — 104 Other 8 4 — — — — 12 Segment/Consolidated Totals $ 412 $ 898 $ 259 $ 43 $ 34 $ 5 $ 1,651 Nine Months Ended September 28, 2019 (Millions of dollars) Pork CT&M Marine Sugar & Alcohol Power All Other Consolidated Totals Major Products/Services Lines: Products $ 1,165 $ 2,731 $ — $ 86 $ — $ 13 $ 3,995 Transportation 7 — 769 — — 1 777 Energy 122 — — 5 92 — 219 Other 24 13 — — — — 37 Segment/Consolidated Totals $ 1,318 $ 2,744 $ 769 $ 91 $ 92 $ 14 $ 5,028 Nine Months Ended September 29, 2018 (Millions of dollars) Pork CT&M Marine Sugar & Alcohol Power All Other Consolidated Totals Major Products/Services Lines: Products $ 1,060 $ 2,560 $ — $ 149 $ — $ 13 $ 3,782 Transportation 12 — 771 — — — 783 Energy 225 — — 6 88 — 319 Other 23 14 — — — — 37 Segment/Consolidated Totals $ 1,320 $ 2,574 $ 771 $ 155 $ 88 $ 13 $ 4,921 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Summary of specific financial information related to sales to external customers | Sales to External Customers: Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, (Millions of dollars) 2019 2018 2019 2018 Pork $ 423 $ 412 $ 1,318 $ 1,320 CT&M 913 898 2,744 2,574 Marine 256 259 769 771 Sugar & Alcohol 36 43 91 155 Power 30 34 92 88 All Other 5 5 14 13 Segment/Consolidated Totals $ 1,663 $ 1,651 $ 5,028 $ 4,921 |
Summary of specific financial information related to operating income (loss) | Operating Income (Loss): Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, (Millions of dollars) 2019 2018 2019 2018 Pork $ (22) $ 2 $ (31) $ 111 CT&M 14 21 50 30 Marine (2) 9 2 9 Sugar & Alcohol (1) 5 (9) 17 Power 9 7 21 13 All Other 1 1 2 2 Segment Totals (1) 45 35 182 Corporate (5) (8) (22) (16) Consolidated Totals $ (6) $ 37 $ 13 $ 166 |
Summary of specific financial information related to income (loss) from affiliates | Income (Loss) from Affiliates: Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, (Millions of dollars) 2019 2018 2019 2018 Pork $ (5) $ (8) $ (19) $ (21) CT&M (1) (4) (6) (10) Marine 1 — 2 1 Sugar & Alcohol — 1 1 1 Power 1 4 3 7 Turkey (11) (11) (30) (18) Segment/Consolidated Totals $ (15) $ (18) $ (49) $ (40) |
Summary of specific financial information related to total assets | Total Assets: September 28, December 31, (Millions of dollars) 2019 2018 Pork $ 1,577 $ 1,304 CT&M 1,527 1,423 Marine 535 345 Sugar & Alcohol 143 138 Power 250 203 Turkey 272 295 All Other 11 8 Segment Totals 4,315 3,716 Corporate 1,631 1,591 Consolidated Totals $ 5,946 $ 5,307 |
Summary of specific financial information related to investments in and advances to affiliates | Investments in and Advances to Affiliates: September 28, December 31, (Millions of dollars) 2019 2018 Pork $ 180 $ 192 CT&M 250 255 Marine 32 28 Sugar & Alcohol 5 4 Power 3 30 Turkey 264 295 Segment/Consolidated Totals $ 734 $ 804 |
Butterball, LLC | |
Summary of specific financial information related to equity method | Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, (Millions of dollars) 2019 2018 2019 2018 Net sales $ 416 $ 399 $ 1,062 $ 1,046 Operating loss $ (15) $ (19) $ (42) $ (29) Net loss $ (22) $ (23) $ (59) $ (36) |
Accounting Policies and Basis_2
Accounting Policies and Basis of Presentations (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 28, 2019 | Jan. 01, 2019 | |
Supplemental Cash Flow Information | ||
Operating lease ROU assets obtained in exchange for new operating lease liabilities | $ 62 | |
Finance lease ROU assets obtained in exchange for new finance lease liabilities | 31 | |
Cash paid for amounts included in the measurement of operating lease liabilities | 101 | |
Cash paid for amounts included in the measurement of finance lease liabilities | 2 | |
Goodwill and Other Intangible Assets | ||
Intangible assets, net | 62 | |
Accumulated amortization | 13 | |
Recently issued accounting standards | ||
ROU assets | 443 | |
Lease liabilities | 479 | |
ASU 2016-02 | ||
Recently issued accounting standards | ||
ROU assets | $ 460 | |
Lease liabilities | $ 498 | |
CT&M | ||
Goodwill and Other Intangible Assets | ||
Change in carrying amount of goodwill | $ 2 |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Dec. 31, 2018 | |
Investments | |||||
Fair Value | $ 1,418 | $ 1,418 | $ 1,336 | ||
Total trading short-term investments | 1,418 | 1,418 | 1,336 | ||
Change in unrealized gains (losses) on trading securities | 2 | $ 37 | 124 | $ 15 | |
Domestic equity securities | |||||
Investments | |||||
Fair Value Equity | 669 | 669 | 632 | ||
Domestic debt securities | |||||
Investments | |||||
Fair Value | 413 | 413 | 268 | ||
Foreign equity securities | |||||
Investments | |||||
Fair Value Equity | 191 | 191 | 218 | ||
Foreign equity securities | Denominated in foreign currencies | |||||
Investments | |||||
Fair Value Equity | 57 | 57 | 66 | ||
Foreign equity securities | Denominated in Euros | |||||
Investments | |||||
Fair Value Equity | 29 | 29 | 25 | ||
Foreign equity securities | Denominated in Japanese Yen | |||||
Investments | |||||
Fair Value Equity | 11 | 11 | 20 | ||
Foreign equity securities | Denominated in British pounds | |||||
Investments | |||||
Fair Value Equity | 8 | 8 | 9 | ||
Foreign equity securities | Denominated in Swiss Franc | |||||
Investments | |||||
Fair Value Equity | 3 | 3 | 3 | ||
Foreign equity securities | Denominated in other foreign currencies | |||||
Investments | |||||
Fair Value Equity | 6 | 6 | 9 | ||
High yield securities | |||||
Investments | |||||
Fair Value | 57 | 57 | 19 | ||
Foreign debt securities | |||||
Investments | |||||
Fair Value | 39 | 39 | 16 | ||
Collateralized loan obligation | |||||
Investments | |||||
Fair Value | 27 | 27 | 28 | ||
Money market funds held in trading accounts | |||||
Investments | |||||
Fair Value | 13 | 13 | 146 | ||
Money market funds held in trading accounts | Denominated in foreign currencies | |||||
Investments | |||||
Fair Value | 2 | 2 | 10 | ||
Term deposits | |||||
Investments | |||||
Fair Value | 4 | 4 | $ 9 | ||
Other trading securities | |||||
Investments | |||||
Fair Value | $ 5 | $ 5 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 28, 2019 | Dec. 31, 2018 |
At lower of LIFO cost or market: | ||
Hogs and materials | $ 376 | $ 361 |
Fresh pork and materials | 35 | 36 |
LIFO adjustment | (66) | (58) |
Total inventories at lower of LIFO cost or market | 345 | 339 |
At lower of FIFO cost and net realizable value: | ||
Grains, oilseeds and other commodities | 306 | 229 |
Sugar produced and in process | 25 | 17 |
Other | 78 | 81 |
Total inventories at lower of FIFO cost and net realizable value | 409 | 327 |
Grain, flour and feed at lower of weighted average cost and net realizable value | 162 | 149 |
Total inventories | $ 916 | $ 815 |
Leases - ROU Assets (Details)
Leases - ROU Assets (Details) | Sep. 28, 2019 |
Leases | |
Operating lease weighted average remaining lease term | 7 years |
Finance lease weighted average remaining lease term | 9 years |
Leases - Lease costs (Details)
Leases - Lease costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 28, 2019 | Sep. 28, 2019 | |
Lease cost | ||
Operating lease cost | $ 33 | $ 100 |
Finance lease cost: | ||
Amortization of right of use assets | 1 | 2 |
Interest on lease liabilities | 1 | 1 |
Variable lease cost | 3 | 7 |
Short-term lease cost | 12 | 35 |
Total lease cost | $ 50 | $ 145 |
Leases - Finance Lease Asset an
Leases - Finance Lease Asset and Liabilities (Details) $ in Millions | Sep. 28, 2019USD ($) |
Leases | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet |
Finance lease right of use assets, net | $ 39 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent |
Finance lease liabilities | $ 4 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent |
Non-current finance lease liabilities | $ 30 |
Leases - Maturities (Details)
Leases - Maturities (Details) $ in Millions | Sep. 28, 2019USD ($) |
Maturities of operating lease liabilities | |
Remainder of 2019 | $ 41 |
2020 | 117 |
2021 | 103 |
2022 | 77 |
2023 | 56 |
Thereafter | 205 |
Total undiscounted lease payments | 599 |
Less imputed interest | (120) |
Total operating lease liability | 479 |
Maturities of finance lease liabilities | |
Remainder of 2019 | 1 |
2020 | 6 |
2021 | 6 |
2022 | 6 |
2023 | 5 |
Thereafter | 23 |
Total undiscounted lease payments | 47 |
Less imputed interest | (13) |
Total finance lease liability | $ 34 |
Leases - Commitments (Details)
Leases - Commitments (Details) - USD ($) $ in Millions | Sep. 28, 2019 | Dec. 31, 2018 |
Commitments | ||
2019 | $ 141 | |
2020 | 99 | |
2021 | 91 | |
2022 | 67 | |
2023 | 52 | |
Thereafter | 210 | |
Operating Leases | ||
Weighted average discount rate for operating leases | 6.63% | |
Weighted average discount rate for financing leases | 6.96% | |
Ports | ||
Commitments | ||
2019 | 18 | |
2020 | 18 | |
2021 | 19 | |
2022 | 19 | |
2023 | 20 | |
Thereafter | 109 | |
Vessel, time and voyage-charters | ||
Commitments | ||
2019 | 58 | |
2020 | 27 | |
2021 | 26 | |
2022 | 13 | |
2023 | 8 | |
Thereafter | 25 | |
Contract grower agreements | ||
Commitments | ||
2019 | 47 | |
2020 | 41 | |
2021 | 37 | |
2022 | 27 | |
2023 | 18 | |
Thereafter | 61 | |
Other operating lease payments | ||
Operating Leases | ||
2019 | 18 | |
2020 | 13 | |
2021 | 9 | |
2022 | 8 | |
2023 | 6 | |
Thereafter | $ 15 |
Lines of Credit, Long-Term De_3
Lines of Credit, Long-Term Debt, Commitments and Contingencies (Details) $ in Millions | Jun. 28, 2018item | May 15, 2018USD ($) | Apr. 27, 2018USD ($) | Mar. 20, 2018USD ($) | Sep. 28, 2019USD ($) | Sep. 29, 2018USD ($) | Dec. 31, 2018USD ($) |
Debt Instrument | |||||||
Notes payable outstanding | $ 210 | $ 148 | |||||
Total long-term debt at face value | 792 | 779 | |||||
Current maturities of long-term debt and unamortized discount | (59) | (40) | |||||
Long-term debt, less current maturities | 733 | 739 | |||||
Proceeds from long-term debt | 36 | $ 222 | |||||
Short-term loan | 58 | 39 | |||||
Contingencies | |||||||
Assets | 5,946 | $ 5,307 | |||||
Pork Product Purchasers | Pending Litigation | |||||||
Contingencies | |||||||
Number of plaintiffs | item | 11 | ||||||
Number of consolidated putative class actions | item | 3 | ||||||
Cereoil Bankruptcy Trustee - Case One | Pending Litigation | |||||||
Contingencies | |||||||
Damages sought | $ 22 | ||||||
Cereoil | |||||||
Contingencies | |||||||
Percentage of ownership | 45.00% | ||||||
Cereoil | Cereoil Bankruptcy Trustee - Case Two | Pending Litigation | |||||||
Contingencies | |||||||
Damages sought | $ 23 | ||||||
Liabilities | 53 | ||||||
Assets | $ 30 | ||||||
Pending claim in bankruptcy proceeding, included the net indebtedness of Cereoil | 10 | ||||||
Nolston | |||||||
Contingencies | |||||||
Percentage of ownership | 45.00% | ||||||
Nolston | Nolston Bankruptcy Trustee | Pending Litigation | |||||||
Contingencies | |||||||
Damages sought | $ 14 | ||||||
Liabilities | 29 | ||||||
Assets | $ 15 | ||||||
Uncommitted bank lines | |||||||
Debt Instrument | |||||||
Notes payable outstanding | $ 210 | ||||||
Weighted average interest rate (as a percent) | 7.30% | 7.76% | |||||
Letters of credit outstanding | $ 18 | ||||||
Committed bank line | |||||||
Debt Instrument | |||||||
Maximum capacity | 100 | ||||||
Outstanding balance | 0 | ||||||
Term loan due 2028 | |||||||
Debt Instrument | |||||||
Total long-term debt at face value | $ 695 | $ 698 | |||||
Effective interest rate (as a percent) | 3.74% | 4.15% | |||||
Foreign subsidiary obligations due 2019 through 2023 | |||||||
Debt Instrument | |||||||
Total long-term debt at face value | $ 97 | $ 81 | |||||
Effective interest rate (as a percent) | 3.76% | 3.80% | |||||
Foreign subsidiaries | Uncommitted bank lines | Denominated in South African Rand | |||||||
Debt Instrument | |||||||
Notes payable outstanding | $ 127 | ||||||
Foreign subsidiaries | Uncommitted bank lines | Denominated in Canadian dollars | |||||||
Debt Instrument | |||||||
Notes payable outstanding | 22 | ||||||
Foreign subsidiaries | Uncommitted bank lines | Denominated in Zambian kwacha | |||||||
Debt Instrument | |||||||
Notes payable outstanding | 18 | ||||||
Foreign subsidiaries | Uncommitted bank lines | Denominated in Brazilian real | |||||||
Debt Instrument | |||||||
Notes payable outstanding | $ 3 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Components of net periodic benefit cost: | ||||
Service cost | $ 2 | $ 2 | $ 6 | $ 7 |
Interest cost | 3 | 3 | 9 | 8 |
Expected return on plan assets | (2) | (3) | (7) | (8) |
Amortization and other | 1 | 2 | 5 | 5 |
Net periodic benefit cost | 4 | $ 4 | 13 | $ 12 |
Estimated withdrawal liability | $ 14 | 14 | ||
Time period over which quarterly installment payments will be made | 20 years | |||
Defined benefit pension plan | ||||
Target allocation and pension plan asset allocation | ||||
Contributions expected to be made to defined benefit pension plans | $ 0 | $ 0 |
Derivatives and Fair Value of_3
Derivatives and Fair Value of Financial Instruments-Deferred Comp Securities (Details) - USD ($) $ in Millions | Sep. 28, 2019 | Dec. 31, 2018 |
Assets: | ||
Trading securities | $ 1,418 | $ 1,336 |
Domestic equity securities | ||
Assets: | ||
Fair Value Equity | 669 | 632 |
Domestic debt securities | ||
Assets: | ||
Trading securities | 413 | 268 |
Foreign equity securities | ||
Assets: | ||
Fair Value Equity | 191 | 218 |
High yield securities | ||
Assets: | ||
Trading securities | 57 | 19 |
Foreign debt securities | ||
Assets: | ||
Trading securities | 39 | 16 |
Collateralized loan obligation | ||
Assets: | ||
Trading securities | 27 | 28 |
Money market funds held in trading accounts | ||
Assets: | ||
Trading securities | 13 | 146 |
Term deposits | ||
Assets: | ||
Trading securities | 4 | 9 |
Other trading securities | ||
Assets: | ||
Trading securities | 5 | |
Recurring basis | Level 1 | ||
Assets: | ||
Total assets | 1,059 | 1,282 |
Liabilities: | ||
Total liabilities | 6 | 4 |
Recurring basis | Level 1 | Commodities | ||
Assets: | ||
Derivatives | 6 | 4 |
Liabilities: | ||
Derivatives | 6 | 4 |
Recurring basis | Level 1 | Domestic equity securities | Short term investments | ||
Assets: | ||
Trading securities | 669 | 632 |
Recurring basis | Level 1 | Domestic equity securities | Other current assets | ||
Assets: | ||
Trading securities | 37 | 32 |
Recurring basis | Level 1 | Domestic debt securities | Short term investments | ||
Assets: | ||
Trading securities | 115 | 215 |
Recurring basis | Level 1 | Foreign equity securities | Short term investments | ||
Assets: | ||
Trading securities | 191 | 218 |
Recurring basis | Level 1 | Foreign equity securities | Other current assets | ||
Assets: | ||
Trading securities | 2 | 3 |
Recurring basis | Level 1 | High yield securities | Short term investments | ||
Assets: | ||
Trading securities | 10 | 7 |
Recurring basis | Level 1 | Foreign debt securities | Short term investments | ||
Assets: | ||
Trading securities | 2 | |
Recurring basis | Level 1 | Money market funds held in trading accounts | Short term investments | ||
Assets: | ||
Trading securities | 13 | 146 |
Recurring basis | Level 1 | Money market funds held in trading accounts | Other current assets | ||
Assets: | ||
Trading securities | 5 | 5 |
Recurring basis | Level 1 | Term deposits | Short term investments | ||
Assets: | ||
Trading securities | 4 | 9 |
Recurring basis | Level 1 | Other trading securities | Short term investments | ||
Assets: | ||
Trading securities | 5 | 5 |
Recurring basis | Level 1 | Fixed income securities | Other current assets | ||
Assets: | ||
Trading securities | 2 | 3 |
Recurring basis | Level 1 | Other | Short term investments | ||
Assets: | ||
Trading securities | 1 | |
Recurring basis | Level 2 | ||
Assets: | ||
Total assets | 413 | 111 |
Liabilities: | ||
Total liabilities | 1 | 5 |
Recurring basis | Level 2 | Commodities | ||
Assets: | ||
Derivatives | 2 | |
Recurring basis | Level 2 | Foreign currencies | ||
Assets: | ||
Derivatives | 1 | 2 |
Liabilities: | ||
Derivatives | 1 | |
Recurring basis | Level 2 | Domestic debt securities | Short term investments | ||
Assets: | ||
Trading securities | 298 | 53 |
Recurring basis | Level 2 | High yield securities | Short term investments | ||
Assets: | ||
Trading securities | 47 | 12 |
Recurring basis | Level 2 | Foreign debt securities | Short term investments | ||
Assets: | ||
Trading securities | 39 | 14 |
Recurring basis | Level 2 | Collateralized loan obligation | Short term investments | ||
Assets: | ||
Trading securities | 27 | 28 |
Recurring basis | Level 2 | Other trading securities | Short term investments | ||
Liabilities: | ||
Derivatives | 5 | |
Recurring basis | Level 2 | Other | Other current assets | ||
Assets: | ||
Trading securities | 1 | |
Recurring basis | Level 3 | ||
Liabilities: | ||
Contingent consideration | 12 | 13 |
Total liabilities | 12 | 13 |
Recurring basis | Fair Value | ||
Assets: | ||
Total assets | 1,472 | 1,393 |
Liabilities: | ||
Contingent consideration | 12 | 13 |
Total liabilities | 19 | 22 |
Recurring basis | Fair Value | Commodities | ||
Assets: | ||
Derivatives | 6 | 6 |
Margin account | 19 | 15 |
Liabilities: | ||
Derivatives | 6 | 4 |
Recurring basis | Fair Value | Foreign currencies | ||
Assets: | ||
Derivatives | 1 | 2 |
Liabilities: | ||
Derivatives | 1 | |
Recurring basis | Fair Value | Other current assets | Commodities | ||
Assets: | ||
Derivative assets and liabilities, net basis | 19 | 17 |
Recurring basis | Fair Value | Domestic equity securities | Short term investments | ||
Assets: | ||
Trading securities | 669 | 632 |
Recurring basis | Fair Value | Domestic equity securities | Other current assets | ||
Assets: | ||
Trading securities | 37 | 32 |
Recurring basis | Fair Value | Domestic debt securities | Short term investments | ||
Assets: | ||
Trading securities | 413 | 268 |
Recurring basis | Fair Value | Foreign equity securities | Short term investments | ||
Assets: | ||
Trading securities | 191 | 218 |
Recurring basis | Fair Value | Foreign equity securities | Other current assets | ||
Assets: | ||
Trading securities | 2 | 3 |
Recurring basis | Fair Value | High yield securities | Short term investments | ||
Assets: | ||
Trading securities | 57 | 19 |
Recurring basis | Fair Value | Foreign debt securities | Short term investments | ||
Assets: | ||
Trading securities | 39 | 16 |
Recurring basis | Fair Value | Collateralized loan obligation | Short term investments | ||
Assets: | ||
Trading securities | 27 | 28 |
Recurring basis | Fair Value | Money market funds held in trading accounts | Short term investments | ||
Assets: | ||
Trading securities | 13 | 146 |
Recurring basis | Fair Value | Money market funds held in trading accounts | Other current assets | ||
Assets: | ||
Trading securities | 5 | 5 |
Recurring basis | Fair Value | Term deposits | Short term investments | ||
Assets: | ||
Trading securities | 4 | 9 |
Recurring basis | Fair Value | Other trading securities | Short term investments | ||
Assets: | ||
Trading securities | 5 | 5 |
Liabilities: | ||
Derivatives | 5 | |
Recurring basis | Fair Value | Fixed income securities | Other current assets | ||
Assets: | ||
Trading securities | 2 | 3 |
Recurring basis | Fair Value | Other | Short term investments | ||
Assets: | ||
Trading securities | $ 1 | |
Recurring basis | Fair Value | Other | Other current assets | ||
Assets: | ||
Trading securities | $ 1 |
Derivatives and Fair Value of_4
Derivatives and Fair Value of Financial Instruments-Derivatives (Details) lb in Millions, gal in Millions, bu in Millions, $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 28, 2019USD ($)lbgalbu | Dec. 31, 2018USD ($)lbgalbu | |
Equity future contracts | ||
Derivative commodity instruments | ||
Notional amounts | $ | $ 2 | $ 97 |
Net commodity purchase contracts | Grain | ||
Derivative commodity instruments | ||
Nonmonetary notional amount | bu | 32 | 33 |
Net commodity purchase contracts | Hogs | ||
Derivative commodity instruments | ||
Nonmonetary notional amount | 34 | |
Net commodity purchase contracts | Soybean oil | ||
Derivative commodity instruments | ||
Nonmonetary notional amount | 8 | |
Net commodity sale contracts | Hogs | ||
Derivative commodity instruments | ||
Nonmonetary notional amount | 26 | |
Net commodity sale contracts | Soybean oil | ||
Derivative commodity instruments | ||
Nonmonetary notional amount | 84 | |
Net commodity sale contracts | Heating oil | ||
Derivative commodity instruments | ||
Nonmonetary notional amount | gal | 4 | 7 |
Foreign currencies | ||
Derivative commodity instruments | ||
Notional amounts | $ | $ 34 | $ 82 |
Derivatives and Fair Value of_5
Derivatives and Fair Value of Financial Instruments-Counterparty Risk (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019USD ($)item | Sep. 29, 2018USD ($) | Sep. 28, 2019USD ($)item | Sep. 29, 2018USD ($) | |
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 | ||||
Gains (losses) on derivatives | $ (17) | $ (48) | $ (16) | |
Foreign currencies | ||||
Amount of gain or (loss) recognized for each type of derivative and its location in the Consolidated Statements of Comprehensive Income | ||||
Number of counterparties | item | 3 | 3 | ||
Foreign currencies | Maximum | ||||
Amount of gain or (loss) recognized for each type of derivative and its location in the Consolidated Statements of Comprehensive Income | ||||
Credit risk associated with derivative contracts | $ 1 | |||
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 | ||||
Gains (losses) on derivatives | $ 1 | $ 2 | 5 | (2) |
Equity | Other investment income (loss), net | ||||
Amount of gain or (loss) recognized for each type of derivative and its location in the Consolidated Statements of Comprehensive Income | ||||
Gains (losses) on derivatives | $ (3) | $ (10) |
Derivatives and Fair Value of_6
Derivatives and Fair Value of Financial Instruments-Derivatives Fair Value (Details) - USD ($) $ in Millions | Sep. 28, 2019 | Dec. 31, 2018 |
Commodities | Other current assets | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Asset Derivatives | $ 6 | $ 6 |
Commodities | Other current liabilities | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Liability Derivatives | 6 | 4 |
Foreign currencies | Other current assets | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Asset Derivatives | 1 | 2 |
Foreign currencies | Other current liabilities | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Liability Derivatives | $ 1 | |
Equity | Short term investments | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Liability Derivatives | $ 5 |
Stockholders' Equity and Accu_3
Stockholders' Equity and Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 21 Months Ended | |||||||
Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Dec. 31, 2018 | |
Stockholders' Equity and Accumulated Other Comprehensive Loss | ||||||||||
Stock repurchase programs, authorized amount | $ 78 | $ 78 | $ 78 | |||||||
Common shares repurchased (in shares) | 4,369 | |||||||||
Repurchase of common stock | 3 | $ 1 | $ 13 | $ 17 | ||||||
Changes in the components of other comprehensive loss (OCL), net of related taxes | ||||||||||
Foreign currency translation adjustment | 2 | $ (25) | (9) | $ (52) | ||||||
Unrecognized pension cost | 1 | 1 | 7 | (1) | ||||||
Other comprehensive income (loss), net of tax | 3 | $ (6) | $ 1 | (24) | $ (20) | $ (9) | (2) | (53) | ||
Components of accumulated other comprehensive loss, net of related taxes | ||||||||||
Accumulated other comprehensive loss | (412) | (412) | (412) | $ (410) | ||||||
Certain subsidiaries | ||||||||||
Components of accumulated other comprehensive loss, net of related taxes | ||||||||||
Unrecognized pension cost related to employees at certain subsidiaries | 20 | $ 23 | 20 | $ 23 | 20 | |||||
Tax benefit recorded on unrecognized pension cost | 0 | |||||||||
Foreign currency translation adjustment | ||||||||||
Components of accumulated other comprehensive loss, net of related taxes | ||||||||||
Accumulated other comprehensive loss | (358) | (358) | (358) | (349) | ||||||
Unrecognized pension cost | ||||||||||
Components of accumulated other comprehensive loss, net of related taxes | ||||||||||
Accumulated other comprehensive loss | $ (54) | $ (54) | $ (54) | $ (61) | ||||||
Effective income tax rate (as a percent) | 26.00% |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Revenue Recognition | ||||
Net sales | $ 1,663 | $ 1,651 | $ 5,028 | $ 4,921 |
Transferred at point in time | Net sales | ||||
Revenue Recognition | ||||
Concentration risk percentage | 85.00% | 85.00% | 85.00% | 85.00% |
Products | ||||
Revenue Recognition | ||||
Net sales | $ 1,359 | $ 1,338 | $ 4,117 | $ 4,011 |
Other | ||||
Revenue Recognition | ||||
Net sales | 34 | 40 | 97 | 95 |
Pork | ||||
Revenue Recognition | ||||
Net sales | 423 | 412 | 1,318 | 1,320 |
Pork | Products | ||||
Revenue Recognition | ||||
Net sales | 381 | 334 | 1,165 | 1,060 |
Pork | Transportation | ||||
Revenue Recognition | ||||
Net sales | 4 | 7 | 12 | |
Pork | Energy | ||||
Revenue Recognition | ||||
Net sales | 35 | 66 | 122 | 225 |
Pork | Other | ||||
Revenue Recognition | ||||
Net sales | 7 | 8 | 24 | 23 |
CT&M | ||||
Revenue Recognition | ||||
Net sales | 913 | 898 | 2,744 | 2,574 |
CT&M | Products | ||||
Revenue Recognition | ||||
Net sales | 906 | 894 | 2,731 | 2,560 |
CT&M | Other | ||||
Revenue Recognition | ||||
Net sales | 7 | 4 | 13 | 14 |
Marine | ||||
Revenue Recognition | ||||
Net sales | 256 | 259 | 769 | 771 |
Marine | Transportation | ||||
Revenue Recognition | ||||
Net sales | 256 | 259 | 769 | 771 |
Sugar and Alcohol | ||||
Revenue Recognition | ||||
Net sales | 36 | 43 | 91 | 155 |
Sugar and Alcohol | Products | ||||
Revenue Recognition | ||||
Net sales | 32 | 39 | 86 | 149 |
Sugar and Alcohol | Energy | ||||
Revenue Recognition | ||||
Net sales | 4 | 4 | 5 | 6 |
Power | ||||
Revenue Recognition | ||||
Net sales | 30 | 34 | 92 | 88 |
Power | Energy | ||||
Revenue Recognition | ||||
Net sales | 30 | 34 | 92 | 88 |
All Other | ||||
Revenue Recognition | ||||
Net sales | 5 | 5 | 14 | 13 |
All Other | Products | ||||
Revenue Recognition | ||||
Net sales | 5 | 5 | 13 | 13 |
All Other | Transportation | ||||
Revenue Recognition | ||||
Net sales | 1 | |||
Segment Totals | ||||
Revenue Recognition | ||||
Net sales | 1,663 | 1,651 | 5,028 | 4,921 |
Segment Totals | Products | ||||
Revenue Recognition | ||||
Net sales | 1,324 | 1,272 | 3,995 | 3,782 |
Segment Totals | Transportation | ||||
Revenue Recognition | ||||
Net sales | 256 | 263 | 777 | 783 |
Segment Totals | Energy | ||||
Revenue Recognition | ||||
Net sales | 69 | 104 | 219 | 319 |
Segment Totals | Other | ||||
Revenue Recognition | ||||
Net sales | $ 14 | 12 | $ 37 | $ 37 |
Segment Totals | Pork | ||||
Revenue Recognition | ||||
Net sales | 412 | |||
Segment Totals | CT&M | ||||
Revenue Recognition | ||||
Net sales | 898 | |||
Segment Totals | Marine | ||||
Revenue Recognition | ||||
Net sales | 259 | |||
Segment Totals | Sugar and Alcohol | ||||
Revenue Recognition | ||||
Net sales | 43 | |||
Segment Totals | Power | ||||
Revenue Recognition | ||||
Net sales | 34 | |||
Segment Totals | All Other | ||||
Revenue Recognition | ||||
Net sales | $ 5 |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligations (Details) $ in Millions | Sep. 28, 2019USD ($) |
Revenue Recognition | |
Performance Obligation | $ 8 |
Revenue Recognition - Perform_2
Revenue Recognition - Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-06-30 | Sep. 28, 2019 |
Revenue Recognition | |
Performance obligation (as a percent) | 20.00% |
Expected timing of satisfaction period | 3 months |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | 9 Months Ended |
Sep. 28, 2019USD ($) | |
Income Taxes | |
Anticipated tax expense associated with the global intangible low-taxed income ("GILTI") provision of the 2017 Tax Act | $ 3 |
Anticipated tax expense associated with the base-erosion and anti-abuse tax ("BEAT") provision of the 2017 Tax Act | $ 0 |
Segment Information-Acquisition
Segment Information-Acquisitions and Dispositions (Details) $ in Millions | 1 Months Ended | 9 Months Ended | |
Sep. 28, 2019USD ($) | Feb. 23, 2019USD ($) | Sep. 28, 2019USD ($)segment | |
Segment Information | |||
Number of reportable segments | segment | 6 | ||
Power barge | Minimum | |||
Segment Information | |||
Project cost | $ 160 | $ 160 | |
Ethanol plant | Pork | |||
Acquisition | |||
Asset purchase | $ 40 | ||
Disposed of by sale | Power | |||
Segment Information | |||
Percentage of ownership | 29.90% | 29.90% | |
Disposal | |||
Percentage of ownership | 29.90% | 29.90% | |
Proceeds from sale of affiliate | $ 23 | ||
Selling expenses and taxes on sale of affiliate | 1 | ||
Long term notes receivable | 6 | $ 6 | |
Gain (loss) on sale of affiliate | $ 0 |
Segment Information - Turkey (D
Segment Information - Turkey (Details) - Butterball, LLC - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Aug. 24, 2019 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Dec. 31, 2018 | |
Segment Information | ||||||
Notes receivable from affiliates | $ 8 | |||||
Prime Rate [Member] | ||||||
Segment Information | ||||||
Basis spread on variable rate (as a percent) | 2.00% | |||||
Turkey | ||||||
Segment Information | ||||||
Total assets | $ 1,193 | $ 1,193 | $ 1,072 | |||
Net sales | 416 | $ 399 | 1,062 | $ 1,046 | ||
Operating income (loss) | (15) | (19) | (42) | (29) | ||
Net income (loss) | $ (22) | $ (23) | $ (59) | $ (36) |
Segment Information-Information
Segment Information-Information by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Dec. 31, 2018 | |
Segment Information | |||||
Sales to External Customers | $ 1,663 | $ 1,651 | $ 5,028 | $ 4,921 | |
Operating Income (Loss) | (6) | 37 | 13 | 166 | |
Income (loss) from affiliates | (15) | (18) | (49) | (40) | |
Total Assets | 5,946 | 5,946 | $ 5,307 | ||
Investment in and Advances to Affiliates | 734 | 734 | 804 | ||
Pork | |||||
Segment Information | |||||
Sales to External Customers | 423 | 412 | 1,318 | 1,320 | |
Operating Income (Loss) | (22) | 2 | (31) | 111 | |
Income (loss) from affiliates | (5) | (8) | (19) | (21) | |
Investment in and Advances to Affiliates | 180 | 180 | 192 | ||
CT&M | |||||
Segment Information | |||||
Sales to External Customers | 913 | 898 | 2,744 | 2,574 | |
Operating Income (Loss) | 14 | 21 | 50 | 30 | |
Income (loss) from affiliates | (1) | (4) | (6) | (10) | |
Investment in and Advances to Affiliates | 250 | 250 | 255 | ||
Marine | |||||
Segment Information | |||||
Sales to External Customers | 256 | 259 | 769 | 771 | |
Operating Income (Loss) | (2) | 9 | 2 | 9 | |
Income (loss) from affiliates | 1 | 2 | 1 | ||
Investment in and Advances to Affiliates | 32 | 32 | 28 | ||
Sugar and Alcohol | |||||
Segment Information | |||||
Sales to External Customers | 36 | 43 | 91 | 155 | |
Operating Income (Loss) | (1) | 5 | (9) | 17 | |
Income (loss) from affiliates | 1 | 1 | 1 | ||
Investment in and Advances to Affiliates | 5 | 5 | 4 | ||
Power | |||||
Segment Information | |||||
Sales to External Customers | 30 | 34 | 92 | 88 | |
Operating Income (Loss) | 9 | 7 | 21 | 13 | |
Income (loss) from affiliates | 1 | 4 | 3 | 7 | |
Investment in and Advances to Affiliates | 3 | 3 | 30 | ||
Turkey | |||||
Segment Information | |||||
Income (loss) from affiliates | (11) | (11) | (30) | (18) | |
Investment in and Advances to Affiliates | 264 | 264 | 295 | ||
All Other | |||||
Segment Information | |||||
Sales to External Customers | 5 | 5 | 14 | 13 | |
Operating Income (Loss) | 1 | 1 | 2 | 2 | |
Segment Totals | |||||
Segment Information | |||||
Sales to External Customers | 1,663 | 1,651 | 5,028 | 4,921 | |
Operating Income (Loss) | (1) | 45 | 35 | 182 | |
Income (loss) from affiliates | (15) | (18) | (49) | (40) | |
Total Assets | 4,315 | 4,315 | 3,716 | ||
Segment Totals | Pork | |||||
Segment Information | |||||
Sales to External Customers | 412 | ||||
Total Assets | 1,577 | 1,577 | 1,304 | ||
Segment Totals | CT&M | |||||
Segment Information | |||||
Sales to External Customers | 898 | ||||
Total Assets | 1,527 | 1,527 | 1,423 | ||
Segment Totals | Marine | |||||
Segment Information | |||||
Sales to External Customers | 259 | ||||
Total Assets | 535 | 535 | 345 | ||
Segment Totals | Sugar and Alcohol | |||||
Segment Information | |||||
Sales to External Customers | 43 | ||||
Total Assets | 143 | 143 | 138 | ||
Segment Totals | Power | |||||
Segment Information | |||||
Sales to External Customers | 34 | ||||
Total Assets | 250 | 250 | 203 | ||
Segment Totals | Turkey | |||||
Segment Information | |||||
Total Assets | 272 | 272 | 295 | ||
Segment Totals | All Other | |||||
Segment Information | |||||
Sales to External Customers | 5 | ||||
Total Assets | 11 | 11 | 8 | ||
Corporate Items | |||||
Segment Information | |||||
Operating Income (Loss) | (5) | $ (8) | (22) | $ (16) | |
Total Assets | $ 1,631 | $ 1,631 | $ 1,591 |