Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 01, 2022 | Oct. 26, 2022 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Oct. 01, 2022 | |
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 | 676-8928 | |
Title of 12(b) Security | Common Stock $1.00 Par Value | |
Trading Symbol | SEB | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,160,779 | |
Entity Central Index Key | 0000088121 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Net sales: | ||||
Total net sales | $ 2,895 | $ 2,276 | $ 8,577 | $ 6,765 |
Cost of sales and operating expenses: | ||||
Total cost of sales and operating expenses | 2,648 | 2,076 | 7,813 | 6,134 |
Gross income | 247 | 200 | 764 | 631 |
Selling, general and administrative expenses | 92 | 88 | 271 | 262 |
Operating income | 155 | 112 | 493 | 369 |
Other income (expense): | ||||
Interest expense | (13) | (11) | (23) | (7) |
Interest income | 9 | 5 | 21 | 16 |
Income (loss) from affiliates | 48 | (1) | 94 | |
Other investment income (loss), net | (64) | (9) | (291) | 108 |
Foreign currency gains, net | 9 | 5 | 21 | 7 |
Miscellaneous, net | 1 | 3 | 11 | 10 |
Total other income (expense), net | (10) | (8) | (167) | 134 |
Earnings before income taxes | 145 | 104 | 326 | 503 |
Income tax benefit (expense) | 1 | (10) | 32 | (54) |
Net earnings | 146 | 94 | 358 | 449 |
Less: Net earnings attributable to noncontrolling interests | 0 | 0 | (1) | 0 |
Net earnings attributable to Seaboard | $ 146 | $ 94 | $ 357 | $ 449 |
Earnings per common share (in dollars per share) | $ 125.78 | $ 81.50 | $ 307.55 | $ 387.09 |
Average number of shares outstanding (in shares) | 1,160,779 | 1,160,779 | 1,160,779 | 1,160,779 |
Other comprehensive income (loss), net of income tax expense of $1, $1, $1 and $2: | ||||
Foreign currency translation adjustment | $ (15) | $ 8 | $ (18) | $ 8 |
Unrecognized pension cost | 3 | 1 | 4 | 6 |
Other comprehensive income (loss), net of tax | (12) | 9 | (14) | 14 |
Comprehensive income | 134 | 103 | 344 | 463 |
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 | (1) | 0 |
Comprehensive income attributable to Seaboard | 134 | 103 | 343 | 463 |
Products | ||||
Net sales: | ||||
Total net sales | 2,299 | 1,908 | 6,901 | 5,728 |
Cost of sales and operating expenses: | ||||
Total cost of sales and operating expenses | 2,254 | 1,782 | 6,677 | 5,282 |
Services | ||||
Net sales: | ||||
Total net sales | 541 | 355 | 1,556 | 998 |
Cost of sales and operating expenses: | ||||
Total cost of sales and operating expenses | 351 | 282 | 1,032 | 812 |
Other | ||||
Net sales: | ||||
Total net sales | 55 | 13 | 120 | 39 |
Cost of sales and operating expenses: | ||||
Total cost of sales and operating expenses | $ 43 | $ 12 | $ 104 | $ 40 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Other comprehensive income (loss), income tax expense | $ 1 | $ 1 | $ 1 | $ 2 |
Products | ||||
Sales to affiliates | 332 | 382 | 1,132 | 1,067 |
Services | ||||
Sales to affiliates | $ 5 | $ 6 | $ 15 | $ 15 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Oct. 01, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 70 | $ 75 |
Short-term investments | 1,023 | 1,416 |
Receivables, net of allowance for credit losses of $32 and $31 | 884 | 762 |
Inventories | 1,816 | 1,663 |
Other current assets | 162 | 131 |
Total current assets | 3,955 | 4,047 |
Property, plant and equipment, net | 2,227 | 1,892 |
Operating lease right of use assets, net | 403 | 496 |
Investments in and advances to affiliates | 717 | 651 |
Goodwill | 159 | 163 |
Other non-current assets | 283 | 254 |
Total assets | 7,744 | 7,503 |
Current liabilities: | ||
Lines of credit | 490 | 516 |
Accounts payable | 421 | 404 |
Deferred revenue | 124 | 108 |
Operating lease liabilities | 155 | 171 |
Other current liabilities | 408 | 353 |
Total current liabilities | 1,598 | 1,552 |
Long-term debt, less current maturities | 703 | 708 |
Deferred income taxes | 99 | |
Long-term operating lease liabilities | 279 | 360 |
Other non-current liabilities | 393 | 350 |
Total non-current liabilities | 1,375 | 1,517 |
Commitments and contingent liabilities | ||
Stockholders' equity: | ||
Common stock of $1 par value. Authorized 1,250,000 shares; issued and outstanding 1,160,779 shares in 2022 and in 2021 | 1 | 1 |
Accumulated other comprehensive loss | (446) | (432) |
Retained earnings | 5,197 | 4,847 |
Total Seaboard stockholders' equity | 4,752 | 4,416 |
Noncontrolling interests | 19 | 18 |
Total equity | 4,771 | 4,434 |
Total liabilities and stockholders' equity | $ 7,744 | $ 7,503 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Oct. 01, 2022 | Dec. 31, 2021 |
Condensed Consolidated Balance Sheets | ||
Allowance for credit losses | $ 32 | $ 31 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized shares | 1,250,000 | 1,250,000 |
Common stock, issued shares | 1,160,779 | 1,160,779 |
Common stock, outstanding shares | 1,160,779 | 1,160,779 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Common Stock | Accumulated Other Comprehensive Loss | Retained Earnings | Noncontrolling Interest | Total |
Balances at Dec. 31, 2020 | $ 1 | $ (471) | $ 4,287 | $ 11 | $ 3,828 |
Comprehensive income (loss): | |||||
Net earnings | 179 | 179 | |||
Other comprehensive income (loss), net of tax | 16 | 16 | |||
Dividends on common stock ($2.25/share) | (3) | (3) | |||
Balances at Apr. 03, 2021 | 1 | (455) | 4,463 | 11 | 4,020 |
Balances at Dec. 31, 2020 | 1 | (471) | 4,287 | 11 | 3,828 |
Comprehensive income (loss): | |||||
Net earnings | 449 | ||||
Other comprehensive income (loss), net of tax | 14 | ||||
Balances at Oct. 02, 2021 | 1 | (457) | 4,729 | 17 | 4,290 |
Balances at Apr. 03, 2021 | 1 | (455) | 4,463 | 11 | 4,020 |
Comprehensive income (loss): | |||||
Net earnings | 176 | 176 | |||
Other comprehensive income (loss), net of tax | (11) | (11) | |||
Dividends on common stock ($2.25/share) | (2) | (2) | |||
Balances at Jul. 03, 2021 | 1 | (466) | 4,637 | 11 | 4,183 |
Comprehensive income (loss): | |||||
Net earnings | 94 | 94 | |||
Other comprehensive income (loss), net of tax | 9 | 9 | |||
Acquisition of noncontrolling interests | 6 | 6 | |||
Dividends on common stock ($2.25/share) | (2) | (2) | |||
Balances at Oct. 02, 2021 | 1 | (457) | 4,729 | 17 | 4,290 |
Balances at Dec. 31, 2021 | 1 | (432) | 4,847 | 18 | 4,434 |
Comprehensive income (loss): | |||||
Net earnings | 103 | 1 | 104 | ||
Other comprehensive income (loss), net of tax | (1) | (1) | |||
Dividends on common stock ($2.25/share) | (3) | (3) | |||
Balances at Apr. 02, 2022 | 1 | (433) | 4,947 | 19 | 4,534 |
Balances at Dec. 31, 2021 | 1 | (432) | 4,847 | 18 | 4,434 |
Comprehensive income (loss): | |||||
Net earnings | 358 | ||||
Other comprehensive income (loss), net of tax | (14) | ||||
Balances at Oct. 01, 2022 | 1 | (446) | 5,197 | 19 | 4,771 |
Balances at Apr. 02, 2022 | 1 | (433) | 4,947 | 19 | 4,534 |
Comprehensive income (loss): | |||||
Net earnings | 108 | 108 | |||
Other comprehensive income (loss), net of tax | (1) | (1) | |||
Dividends on common stock ($2.25/share) | (2) | (2) | |||
Balances at Jul. 02, 2022 | 1 | (434) | 5,053 | 19 | 4,639 |
Comprehensive income (loss): | |||||
Net earnings | 146 | 146 | |||
Other comprehensive income (loss), net of tax | (12) | (12) | |||
Dividends on common stock ($2.25/share) | (2) | (2) | |||
Balances at Oct. 01, 2022 | $ 1 | $ (446) | $ 5,197 | $ 19 | $ 4,771 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | |||||
Oct. 01, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | Oct. 02, 2021 | Jul. 03, 2021 | Apr. 03, 2021 | |
Condensed Consolidated Statements of Changes in Equity | ||||||
Dividends on common stock (in dollars per share) | $ 2.25 | $ 2.25 | $ 2.25 | $ 2.25 | $ 2.25 | $ 2.25 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Oct. 01, 2022 | Oct. 02, 2021 | |
Cash flows from operating activities: | ||
Net earnings | $ 358 | $ 449 |
Adjustments to reconcile net earnings to cash from operating activities: | ||
Depreciation and amortization | 163 | 131 |
Deferred income taxes | (103) | (30) |
Income from affiliates | (94) | |
Dividends received from affiliates | 23 | 30 |
Other investment loss (income), net | 291 | (108) |
Other, net | 26 | 17 |
Changes in assets and liabilities, net of dispositions: | ||
Receivables, net of allowance for credit losses | (144) | (123) |
Inventories | (160) | (343) |
Other assets | (30) | (17) |
Accounts payable | 13 | 96 |
Other liabilities, exclusive of debt | 34 | (6) |
Net cash from operating activities | 377 | 96 |
Cash flows from investing activities: | ||
Purchase of short-term investments | (447) | (1,777) |
Proceeds from the sale of short-term investments | 604 | 1,818 |
Proceeds from the maturity of short-term investments | 15 | 25 |
Capital expenditures | (367) | (324) |
Proceeds from the sale of property, plant and equipment | 22 | 30 |
Acquisition of business | (58) | (7) |
Principal payments received on notes receivable | 4 | 21 |
Purchase of long-term investments | (113) | (77) |
Proceeds from the sale of subsidiaries, net of cash sold | 15 | |
Proceeds from the sale of non-consolidated affiliates | 13 | |
Other, net | (13) | 10 |
Net cash from investing activities | (325) | (281) |
Cash flows from financing activities: | ||
Uncommitted lines of credit, net | (5) | 142 |
Draws under committed lines of credit | 1,076 | 443 |
Repayments of committed lines of credit | (1,090) | (342) |
Principal payments of long-term debt | (7) | (53) |
Payments on finance leases | (28) | (9) |
Dividends paid | (7) | (7) |
Other, net | 1 | (1) |
Net cash from financing activities | (60) | 173 |
Effect of exchange rate changes on cash and cash equivalents | 3 | (2) |
Net change in cash and cash equivalents | (5) | (14) |
Cash and cash equivalents at beginning of year | 75 | 76 |
Cash and cash equivalents at end of period | $ 70 | $ 62 |
Basis of Presentation and Accou
Basis of Presentation and Accounting Policies | 9 Months Ended |
Oct. 01, 2022 | |
Basis of Presentation and Accounting Policies | |
Basis of Presentation and Accounting Policies | Note 1 – Basis of Presentation and Accounting Policies The condensed consolidated financial statements are unaudited and include the accounts of Seaboard Corporation and its subsidiaries (“Seaboard”). Certain information, accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S”) have been condensed or omitted pursuant to such rules and regulations of the U.S. Securities and Exchange Commission. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes of Seaboard included in our annual report on Form 10-K for the year ended December 31, 2021. Seaboard’s first three quarterly periods include approximately 13 weekly periods ending on the Saturday closest to the end of March, June and September. Preparation of condensed consolidated financial statements requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and 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. Actual results could differ from those estimates. The accompanying condensed consolidated financial statements include all adjustments, which are of a normal recurring nature, necessary for a fair presentation of financial position as of October 1, 2022 and the results of operations and cash flows for the three and nine months then ended. Results of operations and cash flows for the periods presented are not necessarily indicative of results to be expected for the full year. Supplemental Cash Flow Information Non-cash investing activities for the nine months ended October 1, 2022, included purchases of property, plant and equipment in accounts payable of $17 million. The following table includes supplemental cash and non-cash information related to leases. Seaboard reports the amortization of right-of-use (“ROU”) assets and changes in operating lease liabilities in other liabilities, exclusive of debt in the condensed consolidated statements of cash flows. Nine Months Ended October 1, October 2, (Millions of dollars) 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 145 $ 117 Operating cash flows from finance leases 5 3 Financing cash flows from finance leases 28 9 ROU assets obtained in exchange for new lease liabilities: Operating leases $ 34 $ 153 Finance leases 113 49 Goodwill and Other Intangible Assets The change in the carrying amount of goodwill was related to an acquisition in the Pork segment of $4 million and foreign currency exchange losses of $8 million within the Commodity Trading and Milling (“CT&M”) segment. See Note 8 for further discussion of the acquisition. As of October 1, 2022, other intangible assets, included in other non-current assets, were $35 million, net of accumulated amortization of $38 million. Income Taxes For quarters, Seaboard computes its year-to-date provision for income taxes by applying the estimated annual effective tax rate to year-to-date pre-tax income or loss and adjusts the provision for discrete tax items recorded in the period. |
Investments
Investments | 9 Months Ended |
Oct. 01, 2022 | |
Investments | |
Investments | Note 2 – Investments The following is a summary of the estimated fair value of short-term investments classified as trading securities: October 1, December 31, (Millions of dollars) 2022 2021 Domestic equity securities $ 413 $ 472 Domestic debt securities 352 542 Foreign equity securities 134 193 Foreign debt securities 91 133 Money market funds held in trading accounts 20 59 Other trading securities 13 17 Total trading short-term investments $ 1,023 $ 1,416 The change in unrealized gains (losses) related to trading securities still held at the end of the respective reporting period was ($65) million and ($220) million for the three and nine months ended October 1, 2022, respectively, and ($9) million and $7 million for the three and nine months ended October 2, 2021, respectively. Seaboard had $16 million and $46 million of short-term investments denominated in foreign currencies, primarily euros, as of October 1, 2022 and December 31, 2021, respectively. Seaboard had long-term investments of $187 million and $156 million as of October 1, 2022 and December 31, 2021, respectively, classified in other non-current assets on the consolidated balance sheets. These investments are primarily in a business development company (“BDC”), real estate and renewable energy facilities. The BDC investment is included in the fair value hierarchy table in Note 6 and the other investments are primarily accounted for under the equity method of accounting with any gains/losses recorded in other investment income (loss). During the second quarter of 2022, Seaboard committed to invest $52 million in a solar renewable energy project in Guam and received $46 million of federal investment tax credits upon commercial operation of the project that impacted Seaboard’s effective tax rate as a discrete item. Seaboard accounts for this solar investment using the flow-through method and recognized the impact of the investment tax credits in the period earned on a gross basis, with the charge related to the reduction of the investment recorded in other investment income (loss) offset by the benefit of the credits recorded in income tax benefit (expense). Seaboard funded $10 million of this commitment during the second quarter of 2022 and funded the remaining commitment of $42 million in the third quarter of 2022. |
Inventories
Inventories | 9 Months Ended |
Oct. 01, 2022 | |
Inventories | |
Inventories | Note 3 – Inventories The following is a summary of inventories: October 1, December 31, (Millions of dollars) 2022 2021 At lower of FIFO cost and net realizable value (“NRV”): Hogs and materials $ 515 $ 489 Pork products and materials 72 64 Grains, oilseeds and other commodities 714 634 Biofuels and related credits 167 147 Other 95 92 Total inventories at lower of FIFO cost and NRV 1,563 1,426 Grain, flour and feed at lower of weighted average cost and NRV 253 237 Total inventories $ 1,816 $ 1,663 |
Lines of Credit, Long-Term Debt
Lines of Credit, Long-Term Debt, Commitments and Contingencies | 9 Months Ended |
Oct. 01, 2022 | |
Lines of Credit, Long-Term Debt, Commitments and Contingencies | |
Lines of Credit, Long-Term Debt, Commitments and Contingencies | Note 4 – Lines of Credit, Long-Term Debt, Commitments and Contingencies Lines of Credit As of October 1, 2022, the outstanding balances under committed and uncommitted lines of credit were $143 million and $347 million, respectively. Of the total outstanding balance as of October 1, 2022, $205 million was denominated in foreign currencies with $178 million denominated in the South African rand and the remaining in various other currencies. As of December 31, 2021, the outstanding balances under committed and uncommitted lines of credit were $157 million and $359 million, respectively. Of the total outstanding balance as of December 31, 2021, $218 million was denominated in foreign currencies, with $177 million denominated in the South African rand and the remaining in various other currencies. The weighted average interest rate for outstanding lines of credit was 6.19% and 2.71% as of October 1, 2022 and December 31, 2021, respectively. As of both October 1, 2022 and December 31, 2021, Seaboard had a committed line of credit with borrowing capacity of $250 million. During the third quarter of 2022, Seaboard amended this committed line of credit agreement to extend the maturity date to December 31, 2022, and change the interest rate index from LIBOR to SOFR (Secured Overnight Financing Rate), as LIBOR will cease to exist after June 30, 2023. Long-term Debt Long-term debt includes borrowings under term loans and other contractual obligations, including notes payable. The interest rate on the Term Loan due 2028 was 4.74% and 1.73% as of October 1, 2022 and December 31, 2021, respectively. The following is a summary of long-term debt: October 1, December 31, (Millions of dollars) 2022 2021 Term Loan due 2028 $ 672 $ 677 Foreign subsidiary obligations 1 1 Other long-term debt 38 39 Total debt at face value 711 717 Current maturities and unamortized discount and costs (8) (9) Long-term debt, less current maturities and unamortized discount and costs $ 703 $ 708 Seaboard was in compliance with all restrictive debt covenants relating to these agreements as of October 1, 2022. Legal Proceedings Helms-Burton Act Litigation On July 21, 2021, a lawsuit was filed by an individual, Odette Blanco de Fernandez (“Ms. de Fernandez”), and the heirs (“Inheritors”) and estates (“Estates”) of four of her siblings (Ms. de Fernandez, together with the Inheritors and the Estates being referred to as the “Plaintiffs”) against Seaboard Corporation in the U.S. District Court for the District of Delaware (the “Delaware District Court”), making claims under Title III of the Cuban Liberty and Solidarity Act of 1996, also known as the Helms-Burton Act (the “Act”). The same Plaintiffs filed a separate lawsuit against Seaboard Marine Ltd. (“Seaboard Marine”) on December 20, 2020, in the U.S. District Court for the Southern District of Florida (the “Florida District Court”). The Act provides that any person who knowingly and intentionally “traffics” in property which was confiscated by the Cuban government may be liable to any U.S. national who acquires an ownership interest in such property for money damages in an amount equal to the greater of the current fair market value of the property or the value of the property when confiscated, plus interest from the date of confiscation, reasonable attorneys’ fees and costs, and treble damages under certain circumstances. The complaint in each of the cases alleges that the Plaintiffs acquired ownership interests to a 70-year concession to develop port facilities at Mariel Bay, Cuba, and ownership of surrounding land, and that these and other property rights were confiscated by the Cuban government in 1960. The complaints further allege that Seaboard Corporation and Seaboard Marine knowingly and intentionally “trafficked” in the confiscated property within the meaning of the Act by carrying and/or directing cargo to the Port of Mariel. The Florida District Court in the Seaboard Marine case dismissed the claims of the Inheritors and the Estates because they did not acquire the ownership claims prior to March 1996, as required by the Act. The remaining plaintiff, Ms. de Fernandez, contends she owns 20% of the companies that were granted the concession and owned land in or around Mariel Bay, Cuba. On August 19, 2022, the Florida District Court granted Seaboard Marine’s Motion for Summary Judgement and entered a Final Judgment in favor of Seaboard Marine. On September 1, 2022, the Plaintiffs appealed the Final Judgment to the United States Court of Appeals for the Eleventh Circuit. The Plaintiffs’ appeal is pending. As to the suit against Seaboard Corporation, on October 21, 2021, the Plaintiffs filed an amended complaint which principally added allegations that there were other callings made by Seaboard Marine at the Port of Mariel and that Seaboard Corporation engaged in a pattern of doing business with individuals and entities in contravention of U.S. foreign policy. Seaboard Corporation filed a Motion to Dismiss which is pending. On September 28, 2022, the Delaware District Court stayed this lawsuit against Seaboard Corporation until 30 days after the outcome of the appeal in the Seaboard Marine case. The operative complaints in each lawsuit seek unspecified damages (including treble damages) and pre-filing interest as provided in the Act; pre-judgment interest; attorneys’ fees, costs and expenses; and such other relief as is just and proper. Seaboard Corporation and Seaboard Marine have meritorious defenses to the claims alleged in these matters and intend to vigorously defend these matters. It is impossible at this stage either to determine the probability of a favorable or unfavorable outcome resulting from either of these suits, or to reasonably estimate the amount of potential loss or range of potential loss, if any, resulting from the suits. However, the outcome of litigation is inherently unpredictable and subject to significant uncertainties, and if unfavorable, could result in a material liability. Pork Antitrust Litigation On June 28, 2018, twelve indirect purchasers of pork products filed a class action complaint in the U.S. District Court for the District of Minnesota (the “District Court”) against several pork processors, including Seaboard Foods LLC and Agri Stats, Inc., a company described in the complaint as a data sharing service. The complaint also named Seaboard Corporation as a defendant. Additional class action complaints with similar claims on behalf of putative classes of direct and indirect purchasers were later filed in the District Court, and three additional actions by standalone plaintiffs (including the Commonwealth of Puerto Rico) were filed in or transferred to the District Court. The consolidated actions are styled In re Pork Antitrust Litigation. The operative complaints allege, among other things, that beginning in January 2009, the defendants conspired and combined to fix, raise, maintain, and stabilize the price of pork products in violation of U.S. antitrust laws by coordinating output and limiting production, allegedly facilitated by the exchange of non-public information about prices, capacity, sales volume and demand through Agri Stats, Inc. The complaints on behalf of the putative classes of indirect purchasers also assert claims under various state laws, including state antitrust laws, unfair competition laws, consumer protection statutes, and common law unjust enrichment. The relief sought in the respective complaints includes treble damages, injunctive relief, pre- and post-judgment interest, costs and attorneys’ fees. On October 16, 2020, the District Court denied defendants’ motions to dismiss the amended complaints, but the District Court later dismissed all claims against Seaboard Corporation without prejudice. In 2021 and 2022, additional standalone plaintiffs filed similar actions in other federal courts throughout the country, several of which name Seaboard Corporation as a defendant. These actions have been or are expected to be conditionally transferred to Minnesota for pretrial proceedings pursuant to an order by the Judicial Panel on Multidistrict Litigation. Also in 2021, the states of New Mexico and Alaska filed civil cases in state court against substantially the same defendants, including Seaboard Foods LLC and Seaboard Corporation, based on substantially similar allegations. Seaboard believes that it has meritorious defenses to the claims alleged in these matters and intends to vigorously defend these matters. It is impossible at this stage either to determine the probability of a favorable or unfavorable outcome resulting from these suits, or to reasonably estimate the amount of potential loss or range of potential loss, if any, resulting from the suits. Cereoil and Nolston 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 Corporation and its subsidiaries, Seaboard Overseas Limited (“SOL”) and Seaboard Uruguay Holdings Ltd. (“Seaboard Uruguay”). Seaboard Corporation has a 45% indirect ownership of Cereoil. The suit seeks an order requiring Seaboard Corporation, 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 believes that it has meritorious defenses to the claims alleged in this matter and intends to vigorously defend this matter. 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 plus interest. 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 an additional suit in the Bankruptcy Court of First Instance in Uruguay that was served during the second quarter of 2018, naming as parties Seaboard Corporation, 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 believes that it has meritorious defenses to the claims alleged in this matter and intends to vigorously defend this matter. 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 Corporation 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. On September 30, 2021, HSBC Bank (Uruguay) SA (“HSBC”), a creditor in the Cereoil bankruptcy proceeding pending in Uruguay, filed a suit in the U.S. District Court for the District of Kansas (the “Kansas District Court”) against Seaboard Corporation alleging claims for breach of contract, promissory estoppel, breach of the duty of good faith and fair dealing, unjust enrichment, fraud, negligent misrepresentation and fraud by concealment based upon a comfort letter, alleged statements by Cereoil personnel (including the Chief Financial Officer serving at the behest of Seaboard), and the same grain transactions that the Trustee challenges as fraudulent conveyances in the Cereoil bankruptcy in Uruguay discussed above. HSBC seeks $10 million plus interest and other relief in excess of $3.2 million. In March 2022, Seaboard filed a motion to dismiss HSBC’s claims on various grounds. On September 23, 2022, the Kansas District Court dismissed six of HSBC’s seven claims. Three of those claims, for fraud, negligent misrepresentation and fraud by concealment, can be re-filed by HSBC in Uruguay. The other three claims, for breach of contract, breach of the duty of good faith and fair dealing and unjust enrichment, were dismissed with prejudice and cannot be re-filed unless HSBC successfully appeals the District Court order. The one claim not dismissed in this matter is for promissory estoppel. Seaboard believes that it has meritorious defenses to this claim and intends to vigorously defend it. Due to the early stage of the proceeding, it is impossible to determine the probability of a favorable or unfavorable outcome resulting from this remaining 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 believes that it has meritorious defenses to the claims alleged in this matter and intends to vigorously defend this matter. 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, asset sales and removal of duplicative claims, is estimated to be approximately $8 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. General Seaboard is subject to various administrative and judicial proceedings and other legal matters related to the normal conduct of its business. 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 Seaboard’s non-consolidated affiliates have debt supporting their underlying operations. From time to time, Seaboard will provide guarantees of that debt in order to further Seaboard’s business objectives. As of October 1, 2022, guarantees outstanding were not material. Seaboard has not accrued a liability for any of the guarantees as the likelihood of loss is remote . |
Employee Benefits
Employee Benefits | 9 Months Ended |
Oct. 01, 2022 | |
Employee Benefits | |
Employee Benefits | Note 5 – Employee Benefits Seaboard has qualified defined benefit pension plans for its domestic salaried and clerical employees that were hired before January 1, 2014. Seaboard also sponsors non-qualified, unfunded supplemental executive plans. The net periodic benefit cost for all plans was as follows: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, (Millions of dollars) 2022 2021 2022 2021 Components of net periodic benefit cost: Service cost $ 3 $ 3 $ 7 $ 8 Interest cost 2 3 7 7 Expected return on plan assets (3) (3) (10) (9) Amortization 1 2 4 7 Settlement loss recognized — — — 3 Net periodic benefit cost $ 3 $ 5 $ 8 $ 16 |
Derivatives and Fair Value of F
Derivatives and Fair Value of Financial Instruments | 9 Months Ended |
Oct. 01, 2022 | |
Derivatives and Fair Value of Financial Instruments | |
Derivatives and Fair Value of Financial Instruments | Note 6 – Derivatives and Fair Value of Financial Instruments The following tables show assets and liabilities measured at fair value on a recurring basis and 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 October 1, (Millions of dollars) 2022 Level 1 Level 2 Level 3 Assets: Trading securities – short-term investments: Domestic equity securities $ 413 $ 413 $ — $ — Domestic debt securities 352 149 203 — Foreign equity securities 134 134 — — Foreign debt securities 91 — 91 — Money market funds held in trading accounts 20 20 — — Other trading securities 13 — 13 — Trading securities – other current assets 25 24 1 — Long-term investment - BDC 70 — 70 — Derivatives 29 24 5 — Total assets $ 1,147 $ 764 $ 383 $ — Liabilities: Contingent consideration $ 19 $ — $ — $ 19 Derivatives 30 20 10 — Total liabilities $ 49 $ 20 $ 10 $ 19 Balance December 31, (Millions of dollars) 2021 Level 1 Level 2 Level 3 Assets: Trading securities – short-term investments: Domestic debt securities $ 542 $ 247 $ 295 $ — Domestic equity securities 472 472 — — Foreign equity securities 193 193 — — Foreign debt securities 133 2 131 — Money market funds held in trading accounts 59 59 — — Other trading securities 17 — 17 — Trading securities – other current assets 29 28 1 — Long-term investment - BDC 81 — — 81 Derivatives 11 6 5 — Total assets $ 1,537 $ 1,007 $ 449 $ 81 Liabilities: Contingent consideration $ 18 $ — $ — $ 18 Derivatives 10 5 5 — Total liabilities $ 28 $ 5 $ 5 $ 18 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 and foreign 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, U.S. Treasuries and high-yield securities. Foreign debt securities categorized as level 2 include foreign government or government related securities, corporate bonds, asset-backed securities and high-yield securities with a country of origin concentration outside the U.S. Seaboard has a long-term investment in a BDC that primarily lends to and invests in debt securities of privately held companies. This long-term investment is valued at net asset value (“NAV”), but is subject to contractual sale restrictions pursuant to shareholder arrangements. During the third quarter of 2022, Seaboard early adopted recent guidance from the Financial Accounting Standards Board that clarifies these restrictions are not security specific and should not impact the fair value. As a result of this adoption, the BDC investment’s liquidity discount of $1 million was removed and accordingly, the instrument is now classified as level 2 rather than level 3. 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, its carrying amount approximates fair value. If Seaboard’s long-term debt was measured at fair value on its condensed consolidated balance sheets, it would have been classified as level 2 in the fair value hierarchy. See Note 4 for a discussion of Seaboard’s long-term debt. Seaboard’s contingent consideration, classified in other non-current liabilities, is related to a 2018 acquisition. The fair value is dependent on the probability of the acquiree achieving certain financial performance targets using earnings before interest, taxes, depreciation and amortization (“EBITDA”) as a metric. The contingent consideration ranges between zero and $48 million payable between five Seaboard’s operations are exposed to market risks from changes in commodity prices, foreign currency exchange rates, interest rates and equity prices. Seaboard uses various commodity derivative futures and options to manage its risk of price fluctuations for raw materials and other inventories, finished product sales and firm sales commitments. Also, Seaboard enters into foreign currency exchange agreements to manage the foreign currency exchange rate risk with respect to certain transactions denominated in foreign currencies. From time to time, Seaboard enters into interest rate swap agreements to manage the interest rate risk with respect to certain variable rate long-term debt and enters into equity futures contracts to manage the equity price risk with respect to certain short-term investments. While management believes its derivatives are primarily economic hedges, Seaboard does not perform the extensive record-keeping required to account for these types of transactions as hedges for accounting purposes. These derivative contracts are recorded at fair value, with any changes in fair value recognized in the condensed consolidated statements of comprehensive income. As the derivative contracts are not accounted for as hedges, fluctuations in the related prices or rates could have a material impact on earnings in any given reporting period. The nature of Seaboard’s market risk exposure has not materially changed since December 31, 2021. Seaboard had the following aggregated outstanding notional amounts related to derivative financial instruments: October 1, December 31, (Millions) Metric 2022 2021 Commodities: Grain Bushels 21 1 Soybean oil Pounds 53 20 Heating oil Gallons — 15 Foreign currencies U.S. dollar 54 95 Credit risks associated with these derivative contracts are not significant as Seaboard minimizes counterparty exposure by dealing with credit-worthy counterparties and uses margin accounts for some contracts. As of October 1, 2022, the maximum amount of credit risk, had the counterparties failed to perform according to the terms of the contract, was $5 million. 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 October 1, December 31, October 1, December 31, (Millions of dollars) 2022 2021 2022 2021 Commodities Other current assets $ 24 $ 6 Other current liabilities $ 20 $ 5 Foreign currencies Other current assets 5 5 Other current liabilities 10 5 Seaboard’s commodity derivative assets and liabilities are presented in the condensed consolidated balance sheets on a net basis, including netting the derivatives with the related margin accounts. As of October 1, 2022 and December 31, 2021, the commodity derivatives had a margin account balance of $34 million and $28 million, respectively, resulting in a net other current asset in the condensed consolidated balance sheets of $38 million and $29 million, respectively. The following table provides the amount of gain or (loss) for each type of derivative and where it was recognized in the condensed consolidated statements of comprehensive income: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, (Millions of dollars) 2022 2021 2022 2021 Commodities Cost of sales $ 13 $ (12) $ (45) $ (32) Foreign currencies Cost of sales (19) 6 (25) 9 Foreign currencies Foreign currency gains (losses), net 9 1 18 4 Interest rate swaps Interest expense — (1) — 5 Equity futures Other investment income (loss), net — (1) — (1) During the third quarter of 2021, all of Seaboard’s interest rate swap agreements were terminated. Seaboard paid fixed-rate interest payments at a weighted-average interest rate of 0.26% and received variable-rate interest payments based on the one-month LIBOR from the counterparty without the exchange of the underlying notional amounts of $400 million. |
Stockholders' Equity and Accumu
Stockholders' Equity and Accumulated Other Comprehensive Loss | 9 Months Ended |
Oct. 01, 2022 | |
Stockholders' Equity and Accumulated Other Comprehensive Loss | |
Stockholders' Equity and Accumulated Other Comprehensive Loss | Note 7 – Stockholders’ Equity and Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss (“AOCL”), net of related taxes, were as follows: Cumulative Foreign Cumulative Currency Translation Unrecognized (Millions of dollars) Adjustment Pension Cost Total Balance December 31, 2021 $ (368) $ (64) $ (432) Other comprehensive loss before reclassifications (10) (1) (11) Amounts reclassified from AOCL to net earnings 9 (b) 1 (a) 10 Other comprehensive loss, net of tax (1) — (1) Balance April 2, 2022 $ (369) $ (64) $ (433) Other comprehensive loss before reclassifications (2) — (2) Amounts reclassified from AOCL to net earnings — 1 (a) 1 Other comprehensive income (loss), net of tax (2) 1 (1) Balance July 2, 2022 $ (371) $ (63) $ (434) Other comprehensive loss before reclassifications (15) — (15) Amounts reclassified from AOCL to net earnings — 3 (a) 3 Other comprehensive income (loss), net of tax (15) 3 (12) Balance October 1, 2022 $ (386) $ (60) $ (446) Cumulative Foreign Cumulative Currency Translation Unrecognized (Millions of dollars) Adjustment Pension Cost Total Balance December 31, 2020 $ (376) $ (95) $ (471) Other comprehensive income (loss) before reclassifications 15 (1) 14 Amounts reclassified from AOCL to net earnings — 2 (a) 2 Other comprehensive income (loss), net of tax 15 1 16 Balance April 3, 2021 $ (361) $ (94) $ (455) Other comprehensive loss before reclassifications (15) (1) (16) Amounts reclassified from AOCL to net earnings — 5 (a) 5 Other comprehensive income (loss), net of tax (15) 4 (11) Balance July 3, 2021 $ (376) $ (90) $ (466) Other comprehensive income before reclassifications 8 — 8 Amounts reclassified from AOCL to net earnings — 1 (a) 1 Other comprehensive income, net of tax 8 1 9 Balance October 2, 2021 $ (368) $ (89) $ (457) (a) This reclassification adjustment primarily represents the amortization of actuarial losses (gains) that were included in net periodic pension cost. (b) This reclassification adjustment primarily reflects the recognition of a currency translation adjustment upon the disposition of a CT&M business in Brazil whose functional currency was the Brazilian real. Upon management’s commitment to a plan to dispose, substantially all of this adjustment was previously recognized as an impairment in cost of sales for the year ended December 31, 2021. During the first quarter of 2022, cash proceeds of $4 million, net of cash sold, were received, and accounts receivable of $3 million were recognized for working capital adjustments and other pending matters . |
Segment Information
Segment Information | 9 Months Ended |
Oct. 01, 2022 | |
Segment Information | |
Segment Information | Note 8 – Segment Information Seaboard has six reportable segments: Pork, CT&M, Marine, Sugar and Alcohol, Power and Turkey, each offering a specific product or service. For details on the respective products or services of each segment, see Note 13 to the consolidated financial statements included in Seaboard’s annual report for the year ended December 31, 2021. On January 1, 2022, Seaboard’s Pork segment sold a 50% interest in Seaboard de Mexico USA LLC, its ham-boning operations in Mexico, to Triumph Foods, LLC, a partner in the Pork segment’s other joint ventures, for cash proceeds of approximately $9 million, net of cash sold. As a result of this transaction, the subsidiary was deconsolidated and Seaboard’s Pork segment recognized a $6 million gain on sale of a controlling interest in a subsidiary, classified in Miscellaneous, net. Seaboard’s Pork segment retained a 50% non-controlling interest in Seaboard de Mexico USA LLC, valued at $12 million, that is accounted for using the equity method of accounting. On September 2, 2022, Seaboard’s Pork segment acquired hog inventory and certain hog farms in the central U.S. from The Maschhoffs, LLC for total cash consideration of $58 million. These additional farms increase the Pork segment’s sow base, resulting in less reliance on third-party hog suppliers. The purchase was recorded at fair value and the preliminary purchase price allocation was $9 million to inventories, $45 million to property, plant and equipment and $4 million to goodwill. Goodwill represents the assembled workforce and the benefits of acquiring an existing operation. During the second quarter of 2022, Seaboard’s CT&M segment sold a 20% interest in a protein and commodity trading company to the majority owner for cash proceeds of $12 million. After this transaction, Seaboard retains a 20% interest. The following tables present Seaboard’s sales disaggregated by revenue source and segment: Net Sales: Three Months Ended October 1, 2022 Sugar and All Consolidated (Millions of dollars) Pork CT&M Marine Alcohol Power Other Totals Major Products/Services Lines: Products $ 500 $ 1,598 $ — $ 30 $ — $ 4 $ 2,132 Transportation 3 — 525 — — — 528 Energy 167 — — 3 52 — 222 Other 8 5 — — — — 13 Segment/Consolidated Totals $ 678 $ 1,603 $ 525 $ 33 $ 52 $ 4 $ 2,895 Net Sales: Three Months Ended October 2, 2021 Sugar and All Consolidated (Millions of dollars) Pork CT&M Marine Alcohol Power Other Totals Major Products/Services Lines: Products $ 527 $ 1,264 $ — $ 29 $ — $ 4 $ 1,824 Transportation 3 — 343 — — — 346 Energy 84 — — 3 10 — 97 Other 6 3 — — — — 9 Segment/Consolidated Totals $ 620 $ 1,267 $ 343 $ 32 $ 10 $ 4 $ 2,276 Net Sales: Nine Months Ended October 1, 2022 Sugar and All Consolidated (Millions of dollars) Pork CT&M Marine Alcohol Power Other Totals Major Products/Services Lines: Products $ 1,504 $ 4,872 $ — $ 85 $ — $ 12 $ 6,473 Transportation 8 — 1,514 — — 1 1,523 Energy 428 — — 3 117 — 548 Other 21 12 — — — — 33 Segment/Consolidated Totals $ 1,961 $ 4,884 $ 1,514 $ 88 $ 117 $ 13 $ 8,577 Net Sales: Nine Months Ended October 2, 2021 Sugar and All Consolidated (Millions of dollars) Pork CT&M Marine Alcohol Power Other Totals Major Products/Services Lines: Products $ 1,618 $ 3,784 $ — $ 79 $ — $ 11 $ 5,492 Transportation 6 — 962 — — 1 969 Energy 236 — — 5 34 — 275 Other 18 11 — — — — 29 Segment/Consolidated Totals $ 1,878 $ 3,795 $ 962 $ 84 $ 34 $ 12 $ 6,765 The following tables present Seaboard’s operating income (loss) and income (loss) from affiliates by segment. 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 to evaluate segment performance because management does not consider interest, other investment income (loss) and income tax benefit (expense) on a segment basis. 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. Operating Income (Loss): Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, (Millions of dollars) 2022 2021 2022 2021 Pork $ (51) $ 52 $ (23) $ 242 CT&M 49 25 91 57 Marine 155 42 423 95 Sugar and Alcohol 1 — 3 — Power 7 (3) 8 (10) All Other — — 1 1 Segment Totals 161 116 503 385 Corporate (6) (4) (10) (16) Consolidated Totals $ 155 $ 112 $ 493 $ 369 Income (Loss) from Affiliates: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, (Millions of dollars) 2022 2021 2022 2021 Pork $ 5 $ — $ 12 $ (2) CT&M 10 7 19 17 Marine — 2 3 4 Sugar and Alcohol — — — — Power — — — — Turkey 33 (10) 60 (19) Segment/Consolidated Totals $ 48 $ (1) $ 94 $ — The following tables present total assets by segment and the investments in and advances to affiliates by segment. Corporate assets primarily include cash and short-term investments, other current assets related to deferred compensation plans, long-term investments and other miscellaneous items. Corporate operating results 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. Total Assets: October 1, December 31, (Millions of dollars) 2022 2021 Pork $ 2,582 $ 2,265 CT&M 2,164 2,054 Marine 854 749 Sugar and Alcohol 158 155 Power 349 359 Turkey 307 245 All Other 7 7 Segment Totals 6,421 5,834 Corporate 1,323 1,669 Consolidated Totals $ 7,744 $ 7,503 Investments in and Advances to Affiliates: October 1, December 31, (Millions of dollars) 2022 2021 Pork $ 155 $ 142 CT&M 215 224 Marine 35 33 Sugar and Alcohol 2 4 Power 3 3 Turkey 307 245 Segment/Consolidated Totals $ 717 $ 651 The Turkey segment, accounted for using the equity method, represents Seaboard’s investment in Butterball, LLC (“Butterball”). As of October 1, 2022 and December 31, 2021, Butterball had total assets of $1.2 billion and $1.0 billion, respectively. Butterball’s summarized income statement information was as follows: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, (Millions of dollars) 2022 2021 2022 2021 Net sales $ 552 $ 464 $ 1,368 $ 1,176 Operating income (loss) $ 65 $ (15) $ 105 $ (35) Net earnings (loss) $ 63 $ (18) $ 114 $ (36) Since 2010, Seaboard held warrants, which upon exercise for a nominal price, enabled Seaboard to acquire an additional 5% equity interest in Butterball. The warrants qualified for equity treatment under accounting standards and were classified as investments in and advances to affiliates in the consolidated balance sheets. Seaboard could exercise these warrants at any time prior to December 31, 2025, when the warrants would have expired. Butterball had the right to repurchase the warrants for fair market value. The warrant agreement essentially provided Seaboard with a 52.5% economic interest, as these warrants were in substance an additional equity interest. Therefore, Seaboard has historically recorded 52.5% of Butterball’s earnings as income (loss) from affiliates in the consolidated statements of comprehensive income. On April 19, 2022, Seaboard exercised these warrants for nominal consideration to acquire the additional 5% of the issued and outstanding stock units in Butterball, resulting in no impact to the financial statements. All significant corporate governance matters upon exercise are still to be shared equally between Seaboard and its partner in Butterball. Seaboard did not acquire any new consequential rights upon exercise of the warrants. |
Basis of Presentation and Acc_2
Basis of Presentation and Accounting Policies (Policies) | 9 Months Ended |
Oct. 01, 2022 | |
Basis of Presentation and Accounting Policies | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Non-cash investing activities for the nine months ended October 1, 2022, included purchases of property, plant and equipment in accounts payable of $17 million. The following table includes supplemental cash and non-cash information related to leases. Seaboard reports the amortization of right-of-use (“ROU”) assets and changes in operating lease liabilities in other liabilities, exclusive of debt in the condensed consolidated statements of cash flows. Nine Months Ended October 1, October 2, (Millions of dollars) 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 145 $ 117 Operating cash flows from finance leases 5 3 Financing cash flows from finance leases 28 9 ROU assets obtained in exchange for new lease liabilities: Operating leases $ 34 $ 153 Finance leases 113 49 |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The change in the carrying amount of goodwill was related to an acquisition in the Pork segment of $4 million and foreign currency exchange losses of $8 million within the Commodity Trading and Milling (“CT&M”) segment. See Note 8 for further discussion of the acquisition. As of October 1, 2022, other intangible assets, included in other non-current assets, were $35 million, net of accumulated amortization of $38 million. |
Income Taxes | Income Taxes For quarters, Seaboard computes its year-to-date provision for income taxes by applying the estimated annual effective tax rate to year-to-date pre-tax income or loss and adjusts the provision for discrete tax items recorded in the period. |
Basis of Presentation and Acc_3
Basis of Presentation and Accounting Policies (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Basis of Presentation and Accounting Policies | |
Summary of supplemental cash and non-cash information related to leases | Nine Months Ended October 1, October 2, (Millions of dollars) 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 145 $ 117 Operating cash flows from finance leases 5 3 Financing cash flows from finance leases 28 9 ROU assets obtained in exchange for new lease liabilities: Operating leases $ 34 $ 153 Finance leases 113 49 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Investments | |
Summary of the estimated fair value of short-term investments classified as trading securities | October 1, December 31, (Millions of dollars) 2022 2021 Domestic equity securities $ 413 $ 472 Domestic debt securities 352 542 Foreign equity securities 134 193 Foreign debt securities 91 133 Money market funds held in trading accounts 20 59 Other trading securities 13 17 Total trading short-term investments $ 1,023 $ 1,416 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Inventories | |
Summary of inventories | October 1, December 31, (Millions of dollars) 2022 2021 At lower of FIFO cost and net realizable value (“NRV”): Hogs and materials $ 515 $ 489 Pork products and materials 72 64 Grains, oilseeds and other commodities 714 634 Biofuels and related credits 167 147 Other 95 92 Total inventories at lower of FIFO cost and NRV 1,563 1,426 Grain, flour and feed at lower of weighted average cost and NRV 253 237 Total inventories $ 1,816 $ 1,663 |
Lines of Credit, Long-Term De_2
Lines of Credit, Long-Term Debt, Commitments and Contingencies (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Lines of Credit, Long-Term Debt, Commitments and Contingencies | |
Summary of long-term debt | October 1, December 31, (Millions of dollars) 2022 2021 Term Loan due 2028 $ 672 $ 677 Foreign subsidiary obligations 1 1 Other long-term debt 38 39 Total debt at face value 711 717 Current maturities and unamortized discount and costs (8) (9) Long-term debt, less current maturities and unamortized discount and costs $ 703 $ 708 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Employee Benefits | |
Schedule of net periodic benefit cost for all plans | Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, (Millions of dollars) 2022 2021 2022 2021 Components of net periodic benefit cost: Service cost $ 3 $ 3 $ 7 $ 8 Interest cost 2 3 7 7 Expected return on plan assets (3) (3) (10) (9) Amortization 1 2 4 7 Settlement loss recognized — — — 3 Net periodic benefit cost $ 3 $ 5 $ 8 $ 16 |
Derivatives and Fair Value of_2
Derivatives and Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Derivatives and Fair Value of Financial Instruments | |
Schedule of assets and liabilities measured at fair value on a recurring basis | Balance October 1, (Millions of dollars) 2022 Level 1 Level 2 Level 3 Assets: Trading securities – short-term investments: Domestic equity securities $ 413 $ 413 $ — $ — Domestic debt securities 352 149 203 — Foreign equity securities 134 134 — — Foreign debt securities 91 — 91 — Money market funds held in trading accounts 20 20 — — Other trading securities 13 — 13 — Trading securities – other current assets 25 24 1 — Long-term investment - BDC 70 — 70 — Derivatives 29 24 5 — Total assets $ 1,147 $ 764 $ 383 $ — Liabilities: Contingent consideration $ 19 $ — $ — $ 19 Derivatives 30 20 10 — Total liabilities $ 49 $ 20 $ 10 $ 19 Balance December 31, (Millions of dollars) 2021 Level 1 Level 2 Level 3 Assets: Trading securities – short-term investments: Domestic debt securities $ 542 $ 247 $ 295 $ — Domestic equity securities 472 472 — — Foreign equity securities 193 193 — — Foreign debt securities 133 2 131 — Money market funds held in trading accounts 59 59 — — Other trading securities 17 — 17 — Trading securities – other current assets 29 28 1 — Long-term investment - BDC 81 — — 81 Derivatives 11 6 5 — Total assets $ 1,537 $ 1,007 $ 449 $ 81 Liabilities: Contingent consideration $ 18 $ — $ — $ 18 Derivatives 10 5 5 — Total liabilities $ 28 $ 5 $ 5 $ 18 |
Schedule of aggregated outstanding notional amounts related to derivative financial instruments | October 1, December 31, (Millions) Metric 2022 2021 Commodities: Grain Bushels 21 1 Soybean oil Pounds 53 20 Heating oil Gallons — 15 Foreign currencies U.S. dollar 54 95 |
Schedule of fair value of each type of derivative derivative held and where each derivative is included in the condensed consolidated balance sheets | Asset Derivatives Liability Derivatives October 1, December 31, October 1, December 31, (Millions of dollars) 2022 2021 2022 2021 Commodities Other current assets $ 24 $ 6 Other current liabilities $ 20 $ 5 Foreign currencies Other current assets 5 5 Other current liabilities 10 5 |
Schedule of gain or (loss) for each type of derivative and where it was recognized in the condensed consolidated statements of comprehensive income | Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, (Millions of dollars) 2022 2021 2022 2021 Commodities Cost of sales $ 13 $ (12) $ (45) $ (32) Foreign currencies Cost of sales (19) 6 (25) 9 Foreign currencies Foreign currency gains (losses), net 9 1 18 4 Interest rate swaps Interest expense — (1) — 5 Equity futures Other investment income (loss), net — (1) — (1) |
Stockholders Equity and Accumul
Stockholders Equity and Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Stockholders' Equity and Accumulated Other Comprehensive Loss | |
Schedule of components of accumulated other comprehensive loss, net of related taxes | Cumulative Foreign Cumulative Currency Translation Unrecognized (Millions of dollars) Adjustment Pension Cost Total Balance December 31, 2021 $ (368) $ (64) $ (432) Other comprehensive loss before reclassifications (10) (1) (11) Amounts reclassified from AOCL to net earnings 9 (b) 1 (a) 10 Other comprehensive loss, net of tax (1) — (1) Balance April 2, 2022 $ (369) $ (64) $ (433) Other comprehensive loss before reclassifications (2) — (2) Amounts reclassified from AOCL to net earnings — 1 (a) 1 Other comprehensive income (loss), net of tax (2) 1 (1) Balance July 2, 2022 $ (371) $ (63) $ (434) Other comprehensive loss before reclassifications (15) — (15) Amounts reclassified from AOCL to net earnings — 3 (a) 3 Other comprehensive income (loss), net of tax (15) 3 (12) Balance October 1, 2022 $ (386) $ (60) $ (446) Cumulative Foreign Cumulative Currency Translation Unrecognized (Millions of dollars) Adjustment Pension Cost Total Balance December 31, 2020 $ (376) $ (95) $ (471) Other comprehensive income (loss) before reclassifications 15 (1) 14 Amounts reclassified from AOCL to net earnings — 2 (a) 2 Other comprehensive income (loss), net of tax 15 1 16 Balance April 3, 2021 $ (361) $ (94) $ (455) Other comprehensive loss before reclassifications (15) (1) (16) Amounts reclassified from AOCL to net earnings — 5 (a) 5 Other comprehensive income (loss), net of tax (15) 4 (11) Balance July 3, 2021 $ (376) $ (90) $ (466) Other comprehensive income before reclassifications 8 — 8 Amounts reclassified from AOCL to net earnings — 1 (a) 1 Other comprehensive income, net of tax 8 1 9 Balance October 2, 2021 $ (368) $ (89) $ (457) (a) This reclassification adjustment primarily represents the amortization of actuarial losses (gains) that were included in net periodic pension cost. (b) This reclassification adjustment primarily reflects the recognition of a currency translation adjustment upon the disposition of a CT&M business in Brazil whose functional currency was the Brazilian real. Upon management’s commitment to a plan to dispose, substantially all of this adjustment was previously recognized as an impairment in cost of sales for the year ended December 31, 2021. During the first quarter of 2022, cash proceeds of $4 million, net of cash sold, were received, and accounts receivable of $3 million were recognized for working capital adjustments and other pending matters . |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Segment Information | |
Schedule of sales disaggregated by revenue source and segment | Net Sales: Three Months Ended October 1, 2022 Sugar and All Consolidated (Millions of dollars) Pork CT&M Marine Alcohol Power Other Totals Major Products/Services Lines: Products $ 500 $ 1,598 $ — $ 30 $ — $ 4 $ 2,132 Transportation 3 — 525 — — — 528 Energy 167 — — 3 52 — 222 Other 8 5 — — — — 13 Segment/Consolidated Totals $ 678 $ 1,603 $ 525 $ 33 $ 52 $ 4 $ 2,895 Net Sales: Three Months Ended October 2, 2021 Sugar and All Consolidated (Millions of dollars) Pork CT&M Marine Alcohol Power Other Totals Major Products/Services Lines: Products $ 527 $ 1,264 $ — $ 29 $ — $ 4 $ 1,824 Transportation 3 — 343 — — — 346 Energy 84 — — 3 10 — 97 Other 6 3 — — — — 9 Segment/Consolidated Totals $ 620 $ 1,267 $ 343 $ 32 $ 10 $ 4 $ 2,276 Net Sales: Nine Months Ended October 1, 2022 Sugar and All Consolidated (Millions of dollars) Pork CT&M Marine Alcohol Power Other Totals Major Products/Services Lines: Products $ 1,504 $ 4,872 $ — $ 85 $ — $ 12 $ 6,473 Transportation 8 — 1,514 — — 1 1,523 Energy 428 — — 3 117 — 548 Other 21 12 — — — — 33 Segment/Consolidated Totals $ 1,961 $ 4,884 $ 1,514 $ 88 $ 117 $ 13 $ 8,577 Net Sales: Nine Months Ended October 2, 2021 Sugar and All Consolidated (Millions of dollars) Pork CT&M Marine Alcohol Power Other Totals Major Products/Services Lines: Products $ 1,618 $ 3,784 $ — $ 79 $ — $ 11 $ 5,492 Transportation 6 — 962 — — 1 969 Energy 236 — — 5 34 — 275 Other 18 11 — — — — 29 Segment/Consolidated Totals $ 1,878 $ 3,795 $ 962 $ 84 $ 34 $ 12 $ 6,765 |
Summary of specific financial information related to operating income (loss) | Operating Income (Loss): Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, (Millions of dollars) 2022 2021 2022 2021 Pork $ (51) $ 52 $ (23) $ 242 CT&M 49 25 91 57 Marine 155 42 423 95 Sugar and Alcohol 1 — 3 — Power 7 (3) 8 (10) All Other — — 1 1 Segment Totals 161 116 503 385 Corporate (6) (4) (10) (16) Consolidated Totals $ 155 $ 112 $ 493 $ 369 |
Summary of specific financial information related to income (loss) from affiliates | Income (Loss) from Affiliates: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, (Millions of dollars) 2022 2021 2022 2021 Pork $ 5 $ — $ 12 $ (2) CT&M 10 7 19 17 Marine — 2 3 4 Sugar and Alcohol — — — — Power — — — — Turkey 33 (10) 60 (19) Segment/Consolidated Totals $ 48 $ (1) $ 94 $ — |
Summary of specific financial information related to total assets | Total Assets: October 1, December 31, (Millions of dollars) 2022 2021 Pork $ 2,582 $ 2,265 CT&M 2,164 2,054 Marine 854 749 Sugar and Alcohol 158 155 Power 349 359 Turkey 307 245 All Other 7 7 Segment Totals 6,421 5,834 Corporate 1,323 1,669 Consolidated Totals $ 7,744 $ 7,503 |
Summary of specific financial information related to investments in and advances to affiliates | Investments in and Advances to Affiliates: October 1, December 31, (Millions of dollars) 2022 2021 Pork $ 155 $ 142 CT&M 215 224 Marine 35 33 Sugar and Alcohol 2 4 Power 3 3 Turkey 307 245 Segment/Consolidated Totals $ 717 $ 651 |
Butterball, LLC | |
Segment Information | |
Summary of specific financial information related to equity method | Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, (Millions of dollars) 2022 2021 2022 2021 Net sales $ 552 $ 464 $ 1,368 $ 1,176 Operating income (loss) $ 65 $ (15) $ 105 $ (35) Net earnings (loss) $ 63 $ (18) $ 114 $ (36) |
Basis of Presentation and Acc_4
Basis of Presentation and Accounting Policies (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 01, 2022 | Oct. 02, 2021 | |
Supplemental Cash Flow Information | ||
Capital expenditures included in accounts payable | $ 17 | |
Operating cash flows from operating leases | 145 | $ 117 |
Operating cash flows from finance leases | 5 | 3 |
Financing cash flows from finance leases | 28 | 9 |
ROU assets obtained in exchange for new operating lease liabilities | 34 | 153 |
ROU assets obtained in exchange for new finance lease liabilities | 113 | $ 49 |
Goodwill and Other Intangible Assets | ||
Other intangible assets, net | 35 | |
Accumulated amortization | 38 | |
Pork | ||
Goodwill and Other Intangible Assets | ||
Acquisition | 4 | |
Commodity Trading and Milling | ||
Goodwill and Other Intangible Assets | ||
Foreign currency exchange losses | $ 8 |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Oct. 01, 2022 | Jul. 02, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | Dec. 31, 2021 | |
Investments | ||||||
Total trading short-term investments | $ 1,023 | $ 1,023 | $ 1,416 | |||
Change in unrealized gains (losses) on trading securities | (65) | $ (9) | (220) | $ 7 | ||
Long term investments | 187 | 187 | 156 | |||
Funding of long-term investment | 113 | $ 77 | ||||
Denominated in foreign currencies | ||||||
Investments | ||||||
Total trading short-term investments | 16 | 16 | 46 | |||
Solar Renewable Energy Project | ||||||
Investments | ||||||
Investment commitment | $ 52 | |||||
Investment tax credits | 46 | |||||
Funding of long-term investment | 42 | $ 10 | ||||
Domestic equity securities | ||||||
Investments | ||||||
Fair Value | 413 | 413 | 472 | |||
Domestic debt securities | ||||||
Investments | ||||||
Fair Value | 352 | 352 | 542 | |||
Foreign equity securities | ||||||
Investments | ||||||
Fair Value | 134 | 134 | 193 | |||
Foreign debt securities | ||||||
Investments | ||||||
Fair Value | 91 | 91 | 133 | |||
Money market funds held in trading accounts | ||||||
Investments | ||||||
Fair Value | 20 | 20 | 59 | |||
Other trading securities | ||||||
Investments | ||||||
Fair Value | $ 13 | $ 13 | $ 17 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Oct. 01, 2022 | Dec. 31, 2021 |
At lower of FIFO cost and net realizable value ("NRV"): | ||
Hogs and materials | $ 515 | $ 489 |
Pork products and materials | 72 | 64 |
Grains, oilseeds and other commodities | 714 | 634 |
Biofuels and related credits | 167 | 147 |
Other | 95 | 92 |
Total inventories at lower of FIFO cost and NRV | 1,563 | 1,426 |
Grain, flour and feed at lower of weighted average cost and NRV | 253 | 237 |
Total inventories | $ 1,816 | $ 1,663 |
Lines of Credit, Long-Term De_3
Lines of Credit, Long-Term Debt, Commitments and Contingencies (Details) $ in Millions | 6 Months Ended | ||||||||||
Sep. 23, 2022 claim | Sep. 30, 2021 USD ($) | Jul. 21, 2021 item | Jun. 28, 2018 plaintiff | May 15, 2018 USD ($) | Apr. 27, 2018 USD ($) employee | Mar. 20, 2018 USD ($) subsidiary | Dec. 31, 2018 plaintiff | Oct. 01, 2022 USD ($) | Sep. 22, 2022 claim | Dec. 31, 2021 USD ($) | |
Lines of Credit, Long-Term Debt, Commitments and Contingencies | |||||||||||
Other long-term debt | $ 38 | $ 39 | |||||||||
Total debt at face value | 711 | 717 | |||||||||
Current maturities of long-term debt and unamortized discount | (8) | (9) | |||||||||
Long-term debt, less current maturities | 703 | 708 | |||||||||
Contingencies | |||||||||||
Assets | $ 7,744 | $ 7,503 | |||||||||
Pork Product Purchasers | Pending Litigation | |||||||||||
Contingencies | |||||||||||
Number of plaintiffs | plaintiff | 12 | 3 | |||||||||
Odette Blanco De Fernandez | Pending Litigation | |||||||||||
Contingencies | |||||||||||
Number of siblings added as plaintiffs | item | 4 | ||||||||||
Term of concession to develop port facilities | 70 years | ||||||||||
Claimed ownership percentage of companies that owned concession and land | 20% | ||||||||||
HSBC | Pending Litigation | |||||||||||
Contingencies | |||||||||||
Number of claims | claim | 1 | 7 | |||||||||
Number of claims that were dismissed by a court | claim | 6 | ||||||||||
Number of claims dismissed that can be refiled | claim | 3 | ||||||||||
Number of claims dismissed that cannot be refiled unless successfully appealed | claim | 3 | ||||||||||
Damages sought | $ 10 | ||||||||||
Interest and other relief sought | $ 3.2 | ||||||||||
Cereoil | Cereoil Bankruptcy Trustee - Case One | Pending Litigation | |||||||||||
Contingencies | |||||||||||
Damages sought | $ 22 | ||||||||||
Number of subsidiaries | subsidiary | 2 | ||||||||||
Cereoil | Cereoil Bankruptcy Trustee - Case Two | Pending Litigation | |||||||||||
Contingencies | |||||||||||
Damages sought | $ 23 | ||||||||||
Number of individuals employed by Seaboard serving as directors | employee | 2 | ||||||||||
Total liabilities | $ 53 | ||||||||||
Assets | $ 30 | ||||||||||
Nolston | Nolston Bankruptcy Trustee | Pending Litigation | |||||||||||
Contingencies | |||||||||||
Damages sought | $ 8 | ||||||||||
Total liabilities | 29 | ||||||||||
Assets | $ 15 | ||||||||||
Cereoil | |||||||||||
Contingencies | |||||||||||
Percentage of ownership | 45% | ||||||||||
Nolston | |||||||||||
Contingencies | |||||||||||
Percentage of ownership | 45% | ||||||||||
Committed and uncommitted bank lines | |||||||||||
Lines of Credit, Long-Term Debt, Commitments and Contingencies | |||||||||||
Weighted average interest rate (as a percent) | 6.19% | 2.71% | |||||||||
Committed and uncommitted bank lines | Denominated in foreign currencies | |||||||||||
Lines of Credit, Long-Term Debt, Commitments and Contingencies | |||||||||||
Lines of credit outstanding | $ 205 | $ 218 | |||||||||
Committed and uncommitted bank lines | South African Rand | |||||||||||
Lines of Credit, Long-Term Debt, Commitments and Contingencies | |||||||||||
Lines of credit outstanding | 178 | 177 | |||||||||
Committed bank line | |||||||||||
Lines of Credit, Long-Term Debt, Commitments and Contingencies | |||||||||||
Lines of credit outstanding | 143 | 157 | |||||||||
Maximum capacity | 250 | 250 | |||||||||
Uncommitted bank lines | |||||||||||
Lines of Credit, Long-Term Debt, Commitments and Contingencies | |||||||||||
Lines of credit outstanding | 347 | 359 | |||||||||
Term loan due 2028 | |||||||||||
Lines of Credit, Long-Term Debt, Commitments and Contingencies | |||||||||||
Total debt at face value | $ 672 | $ 677 | |||||||||
Effective interest rate (as a percent) | 4.74% | 1.73% | |||||||||
Foreign subsidiary obligations | |||||||||||
Lines of Credit, Long-Term Debt, Commitments and Contingencies | |||||||||||
Total debt at face value | $ 1 | $ 1 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Components of net periodic benefit cost: | ||||
Service cost | $ 3 | $ 3 | $ 7 | $ 8 |
Interest cost | $ 2 | $ 3 | $ 7 | $ 7 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible List] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Expected return on plan assets | $ (3) | $ (3) | $ (10) | $ (9) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible List] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Amortization | $ 1 | $ 2 | $ 4 | $ 7 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Settlement loss recognized | $ 3 | |||
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Settlement Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, General and Administrative Expense | Selling, General and Administrative Expense | Selling, General and Administrative Expense | Selling, General and Administrative Expense |
Net periodic benefit cost | $ 3 | $ 5 | $ 8 | $ 16 |
Derivatives and Fair Value of_3
Derivatives and Fair Value of Financial Instruments-Deferred Comp Securities (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Oct. 01, 2022 | Jul. 02, 2022 | Dec. 31, 2021 | |
Assets: | ||||
Long-term investment | $ 187 | $ 156 | ||
Mimran | ||||
Investments | ||||
Contingent consideration, low end of range | $ 0 | |||
Contingent consideration, high end of range | $ 48 | |||
Minimum contingent consideration payout period | 5 years | |||
Maximum contingent consideration payout period | 8 years | |||
Commodities | ||||
Assets: | ||||
Derivatives | 24 | 6 | ||
Liabilities: | ||||
Derivatives | 20 | 5 | ||
Foreign currencies | ||||
Assets: | ||||
Derivatives | 5 | 5 | ||
Liabilities: | ||||
Derivatives | 10 | 5 | ||
Business Development Company | ||||
Investments | ||||
Liquidity discount | $ 1 | |||
Domestic debt securities | ||||
Assets: | ||||
Trading securities | 352 | 542 | ||
Domestic equity securities | ||||
Assets: | ||||
Trading securities | 413 | 472 | ||
Foreign equity securities | ||||
Assets: | ||||
Trading securities | 134 | 193 | ||
Foreign debt securities | ||||
Assets: | ||||
Trading securities | 91 | 133 | ||
Money market funds held in trading accounts | ||||
Assets: | ||||
Trading securities | 20 | 59 | ||
Other trading securities | ||||
Assets: | ||||
Trading securities | 13 | 17 | ||
Recurring basis | Level 1 | ||||
Assets: | ||||
Derivatives | 24 | 6 | ||
Total assets | 764 | 1,007 | ||
Liabilities: | ||||
Derivatives | 20 | 5 | ||
Total liabilities | 20 | 5 | ||
Recurring basis | Level 1 | Other current assets | ||||
Assets: | ||||
Trading securities | 24 | 28 | ||
Recurring basis | Level 1 | Domestic debt securities | Short-term investments. | ||||
Assets: | ||||
Trading securities | 149 | 247 | ||
Recurring basis | Level 1 | Domestic equity securities | Short-term investments. | ||||
Assets: | ||||
Trading securities | 413 | 472 | ||
Recurring basis | Level 1 | Foreign equity securities | Short-term investments. | ||||
Assets: | ||||
Trading securities | 134 | 193 | ||
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 | 20 | 59 | ||
Recurring basis | Level 2 | ||||
Assets: | ||||
Derivatives | 5 | 5 | ||
Total assets | 383 | 449 | ||
Liabilities: | ||||
Derivatives | 10 | 5 | ||
Total liabilities | 10 | 5 | ||
Recurring basis | Level 2 | Other current assets | ||||
Assets: | ||||
Trading securities | 1 | 1 | ||
Recurring basis | Level 2 | Business Development Company | ||||
Assets: | ||||
Long-term investment | 70 | |||
Recurring basis | Level 2 | Domestic debt securities | Short-term investments. | ||||
Assets: | ||||
Trading securities | 203 | 295 | ||
Recurring basis | Level 2 | Foreign debt securities | Short-term investments. | ||||
Assets: | ||||
Trading securities | 91 | 131 | ||
Recurring basis | Level 2 | Other trading securities | Short-term investments. | ||||
Assets: | ||||
Trading securities | 13 | 17 | ||
Recurring basis | Level 3 | ||||
Assets: | ||||
Total assets | 81 | |||
Liabilities: | ||||
Contingent consideration | 19 | 18 | ||
Total liabilities | 19 | 18 | ||
Recurring basis | Level 3 | Business Development Company | ||||
Assets: | ||||
Long-term investment | 81 | |||
Recurring basis | Fair Value | ||||
Assets: | ||||
Derivatives | 29 | 11 | ||
Total assets | 1,147 | 1,537 | ||
Liabilities: | ||||
Contingent consideration | 19 | 18 | ||
Derivatives | 30 | 10 | ||
Total liabilities | 49 | 28 | ||
Recurring basis | Fair Value | Other current assets | ||||
Assets: | ||||
Trading securities | 25 | 29 | ||
Recurring basis | Fair Value | Business Development Company | ||||
Assets: | ||||
Long-term investment | 70 | 81 | ||
Recurring basis | Fair Value | Domestic debt securities | Short-term investments. | ||||
Assets: | ||||
Trading securities | 352 | 542 | ||
Recurring basis | Fair Value | Domestic equity securities | Short-term investments. | ||||
Assets: | ||||
Trading securities | 413 | 472 | ||
Recurring basis | Fair Value | Foreign equity securities | Short-term investments. | ||||
Assets: | ||||
Trading securities | 134 | 193 | ||
Recurring basis | Fair Value | Foreign debt securities | Short-term investments. | ||||
Assets: | ||||
Trading securities | 91 | 133 | ||
Recurring basis | Fair Value | Money market funds held in trading accounts | Short-term investments. | ||||
Assets: | ||||
Trading securities | 20 | 59 | ||
Recurring basis | Fair Value | Other trading securities | Short-term investments. | ||||
Assets: | ||||
Trading securities | $ 13 | $ 17 |
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 | |
Oct. 01, 2022 USD ($) lb bu | Dec. 31, 2021 USD ($) lb gal bu | Oct. 02, 2021 USD ($) | |
Grain | |||
Derivative commodity instruments | |||
Nonmonetary notional amount | bu | 21 | 1 | |
Soybean oil | |||
Derivative commodity instruments | |||
Nonmonetary notional amount | lb | 53 | 20 | |
Heating oil | |||
Derivative commodity instruments | |||
Nonmonetary notional amount | gal | 15 | ||
Foreign currencies | |||
Derivative commodity instruments | |||
Notional amounts | $ 54 | $ 95 | |
Interest rate swaps | |||
Derivative commodity instruments | |||
Notional amounts | $ 400 | ||
Interest rate swaps | Weighted Average | |||
Derivative commodity instruments | |||
Fixed rate interest | 0.26% |
Derivatives and Fair Value of_5
Derivatives and Fair Value of Financial Instruments-Counterparty Risk (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Derivatives | ||||
Credit risk associated with derivative contracts | $ 5 | |||
Commodities | ||||
Derivatives | ||||
Gains (losses) on derivatives | $ 13 | $ (12) | $ (45) | $ (32) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of Goods and Services Sold | Cost of Goods and Services Sold | Cost of Goods and Services Sold | Cost of Goods and Services Sold |
Foreign currencies | Cost of sales | ||||
Derivatives | ||||
Gains (losses) on derivatives | $ (19) | $ 6 | $ (25) | $ 9 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of Goods and Services Sold | Cost of Goods and Services Sold | Cost of Goods and Services Sold | Cost of Goods and Services Sold |
Foreign currencies | Foreign currency gains (losses), net | ||||
Derivatives | ||||
Gains (losses) on derivatives | $ 9 | $ 1 | $ 18 | $ 4 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Foreign Currency Transaction Gain (Loss), before Tax | Foreign Currency Transaction Gain (Loss), before Tax | Foreign Currency Transaction Gain (Loss), before Tax | Foreign Currency Transaction Gain (Loss), before Tax |
Interest rate swaps | ||||
Derivatives | ||||
Gains (losses) on derivatives | $ (1) | $ 5 | ||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Expense | Interest Expense | Interest Expense | Interest Expense |
Equity futures | ||||
Derivatives | ||||
Gains (losses) on derivatives | $ (1) | $ (1) | ||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Investment Income (Expense), Net | Other Investment Income (Expense), Net | Other Investment Income (Expense), Net | Other Investment Income (Expense), Net |
Derivatives and Fair Value of_6
Derivatives and Fair Value of Financial Instruments-Derivatives Fair Value (Details) - USD ($) $ in Millions | Oct. 01, 2022 | Dec. 31, 2021 |
Commodities | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Asset Derivatives | $ 24 | $ 6 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Current | Other Assets, Current |
Liability Derivatives | $ 20 | $ 5 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Current | Other Liabilities, Current |
Margin account | $ 34 | $ 28 |
Commodities | Other current assets | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Derivative assets and liabilities, net basis | 38 | 29 |
Foreign currencies | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Asset Derivatives | $ 5 | $ 5 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Current | Other Assets, Current |
Liability Derivatives | $ 10 | $ 5 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Current | Other Liabilities, Current |
Stockholders' Equity and Accu_2
Stockholders' Equity and Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Oct. 01, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | Oct. 02, 2021 | Jul. 03, 2021 | Apr. 03, 2021 | Oct. 01, 2022 | Dec. 31, 2021 | |
Components of and changes in accumulated other comprehensive loss, net of tax | ||||||||
Balance at beginning of the period | $ (434) | $ (433) | $ (432) | $ (466) | $ (455) | $ (471) | $ (432) | |
Other comprehensive income (loss) before reclassifications | (15) | (2) | (11) | 8 | (16) | 14 | ||
Amounts reclassified from AOCL to net earnings | 3 | 1 | 10 | 1 | 5 | 2 | ||
Other comprehensive income (loss), net of tax | (12) | (1) | (1) | 9 | (11) | 16 | ||
Balance at end of the period | (446) | (434) | (433) | (457) | (466) | (455) | (446) | |
Proceeds from the sale of subsidiaries, net of cash sold | 15 | |||||||
Accounts receivable | 884 | 884 | $ 762 | |||||
Commodity Trading and Milling | Brazil | Belarina | Disposed of by sale | ||||||||
Components of and changes in accumulated other comprehensive loss, net of tax | ||||||||
Proceeds from the sale of subsidiaries, net of cash sold | 4 | |||||||
Accounts receivable | 3 | |||||||
Cumulative Foreign Currency Translation Adjustment | ||||||||
Components of and changes in accumulated other comprehensive loss, net of tax | ||||||||
Balance at beginning of the period | (371) | (369) | (368) | (376) | (361) | (376) | (368) | |
Other comprehensive income (loss) before reclassifications | (15) | (2) | (10) | 8 | (15) | 15 | ||
Amounts reclassified from AOCL to net earnings | 9 | |||||||
Other comprehensive income (loss), net of tax | (15) | (2) | (1) | 8 | (15) | 15 | ||
Balance at end of the period | (386) | (371) | (369) | (368) | (376) | (361) | (386) | |
Cumulative Unrecognized Pension Cost | ||||||||
Components of and changes in accumulated other comprehensive loss, net of tax | ||||||||
Balance at beginning of the period | (63) | (64) | (64) | (90) | (94) | (95) | (64) | |
Other comprehensive income (loss) before reclassifications | (1) | (1) | (1) | |||||
Amounts reclassified from AOCL to net earnings | 3 | 1 | 1 | 1 | 5 | 2 | ||
Other comprehensive income (loss), net of tax | 3 | 1 | 1 | 4 | 1 | |||
Balance at end of the period | $ (60) | $ (63) | $ (64) | $ (89) | $ (90) | $ (94) | $ (60) |
Segment Information - Acquisiti
Segment Information - Acquisition and Disposal (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 02, 2022 USD ($) | Jan. 01, 2022 USD ($) | Jul. 02, 2022 USD ($) | Oct. 01, 2022 USD ($) segment | Oct. 02, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Segment Information | ||||||
Number of reportable segments | segment | 6 | |||||
Acquisition | ||||||
Total cash consideration | $ 58 | $ 7 | ||||
Purchase price allocation | ||||||
Goodwill | 159 | $ 163 | ||||
Disposal | ||||||
Investments in and advances to affiliates | 717 | 651 | ||||
The Maschhoffs Hog Inventory And Hog Farms | ||||||
Acquisition | ||||||
Total cash consideration | $ 58 | |||||
Purchase price allocation | ||||||
Inventories | 9 | |||||
Property, plant and equipment | 45 | |||||
Goodwill | $ 4 | |||||
Pork | ||||||
Disposal | ||||||
Investments in and advances to affiliates | 155 | 142 | ||||
Pork | Mexico | Seaboard De Mexico USA LLC | ||||||
Disposal | ||||||
Percentage of ownership | 50% | |||||
Pork | Mexico | Triumph | Seaboard De Mexico USA LLC | Disposed of by sale | ||||||
Disposal | ||||||
Percentage of ownership interest sold | 50% | |||||
Pork | Mexico | Seaboard De Mexico USA LLC | ||||||
Disposal | ||||||
Investments in and advances to affiliates | $ 12 | |||||
Pork | Mexico | Seaboard De Mexico USA LLC | Triumph | Disposed of by sale | ||||||
Disposal | ||||||
Proceeds from sale of subsidiary | 9 | |||||
Gain on sale of controlling interest in subsidiary | $ 6 | |||||
Commodity Trading and Milling | ||||||
Disposal | ||||||
Investments in and advances to affiliates | $ 215 | $ 224 | ||||
Commodity Trading and Milling | Protein and commodity trading company | ||||||
Disposal | ||||||
Percentage of ownership | 20% | |||||
Commodity Trading and Milling | Protein and commodity trading company | Disposed of by sale | ||||||
Disposal | ||||||
Percentage of ownership interest sold | 20% | |||||
Proceeds from sale of subsidiary | $ 12 |
Segment Information - Disaggreg
Segment Information - Disaggregation of sales (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Revenue Recognition | ||||
Net sales | $ 2,895 | $ 2,276 | $ 8,577 | $ 6,765 |
Products | ||||
Revenue Recognition | ||||
Net sales | 2,299 | 1,908 | 6,901 | 5,728 |
Other | ||||
Revenue Recognition | ||||
Net sales | 55 | 13 | 120 | 39 |
Pork | ||||
Revenue Recognition | ||||
Net sales | 678 | 620 | 1,961 | 1,878 |
Pork | Products | ||||
Revenue Recognition | ||||
Net sales | 500 | 527 | 1,504 | 1,618 |
Pork | Transportation | ||||
Revenue Recognition | ||||
Net sales | 3 | 3 | 8 | 6 |
Pork | Energy | ||||
Revenue Recognition | ||||
Net sales | 167 | 84 | 428 | 236 |
Pork | Other | ||||
Revenue Recognition | ||||
Net sales | 8 | 6 | 21 | 18 |
Commodity Trading and Milling | ||||
Revenue Recognition | ||||
Net sales | 1,603 | 1,267 | 4,884 | 3,795 |
Commodity Trading and Milling | Products | ||||
Revenue Recognition | ||||
Net sales | 1,598 | 1,264 | 4,872 | 3,784 |
Commodity Trading and Milling | Other | ||||
Revenue Recognition | ||||
Net sales | 5 | 3 | 12 | 11 |
Marine | ||||
Revenue Recognition | ||||
Net sales | 525 | 343 | 1,514 | 962 |
Marine | Transportation | ||||
Revenue Recognition | ||||
Net sales | 525 | 343 | 1,514 | 962 |
Sugar and Alcohol | ||||
Revenue Recognition | ||||
Net sales | 33 | 32 | 88 | 84 |
Sugar and Alcohol | Products | ||||
Revenue Recognition | ||||
Net sales | 30 | 29 | 85 | 79 |
Sugar and Alcohol | Energy | ||||
Revenue Recognition | ||||
Net sales | 3 | 3 | 3 | 5 |
Power | ||||
Revenue Recognition | ||||
Net sales | 52 | 10 | 117 | 34 |
Power | Energy | ||||
Revenue Recognition | ||||
Net sales | 52 | 10 | 117 | 34 |
All Other | ||||
Revenue Recognition | ||||
Net sales | 4 | 4 | 13 | 12 |
All Other | Products | ||||
Revenue Recognition | ||||
Net sales | 4 | 4 | 12 | 11 |
All Other | Transportation | ||||
Revenue Recognition | ||||
Net sales | 1 | 1 | ||
Segment Totals | ||||
Revenue Recognition | ||||
Net sales | 2,895 | 2,276 | 8,577 | 6,765 |
Segment Totals | Products | ||||
Revenue Recognition | ||||
Net sales | 2,132 | 1,824 | 6,473 | 5,492 |
Segment Totals | Transportation | ||||
Revenue Recognition | ||||
Net sales | 528 | 346 | 1,523 | 969 |
Segment Totals | Energy | ||||
Revenue Recognition | ||||
Net sales | 222 | 97 | 548 | 275 |
Segment Totals | Other | ||||
Revenue Recognition | ||||
Net sales | $ 13 | $ 9 | $ 33 | $ 29 |
Segment Information - Informati
Segment Information - Information by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | Dec. 31, 2021 | |
Segment Information | |||||
Operating Income (Loss) | $ 155 | $ 112 | $ 493 | $ 369 | |
Income from affiliates | 48 | (1) | 94 | ||
Total assets | 7,744 | 7,744 | $ 7,503 | ||
Investment in and Advances to Affiliates | 717 | 717 | 651 | ||
Pork | |||||
Segment Information | |||||
Income from affiliates | 5 | 12 | (2) | ||
Investment in and Advances to Affiliates | 155 | 155 | 142 | ||
Commodity Trading and Milling | |||||
Segment Information | |||||
Income from affiliates | 10 | 7 | 19 | 17 | |
Investment in and Advances to Affiliates | 215 | 215 | 224 | ||
Marine | |||||
Segment Information | |||||
Income from affiliates | 2 | 3 | 4 | ||
Investment in and Advances to Affiliates | 35 | 35 | 33 | ||
Sugar and Alcohol | |||||
Segment Information | |||||
Investment in and Advances to Affiliates | 2 | 2 | 4 | ||
Power | |||||
Segment Information | |||||
Investment in and Advances to Affiliates | 3 | 3 | 3 | ||
Turkey. | |||||
Segment Information | |||||
Income from affiliates | 33 | (10) | 60 | (19) | |
Investment in and Advances to Affiliates | 307 | 307 | 245 | ||
Segment Totals | |||||
Segment Information | |||||
Operating Income (Loss) | 161 | 116 | 503 | 385 | |
Income from affiliates | 48 | (1) | 94 | ||
Total assets | 6,421 | 6,421 | 5,834 | ||
Segment Totals | Pork | |||||
Segment Information | |||||
Operating Income (Loss) | (51) | 52 | (23) | 242 | |
Total assets | 2,582 | 2,582 | 2,265 | ||
Segment Totals | Commodity Trading and Milling | |||||
Segment Information | |||||
Operating Income (Loss) | 49 | 25 | 91 | 57 | |
Total assets | 2,164 | 2,164 | 2,054 | ||
Segment Totals | Marine | |||||
Segment Information | |||||
Operating Income (Loss) | 155 | 42 | 423 | 95 | |
Total assets | 854 | 854 | 749 | ||
Segment Totals | Sugar and Alcohol | |||||
Segment Information | |||||
Operating Income (Loss) | 1 | 3 | |||
Total assets | 158 | 158 | 155 | ||
Segment Totals | Power | |||||
Segment Information | |||||
Operating Income (Loss) | 7 | (3) | 8 | (10) | |
Total assets | 349 | 349 | 359 | ||
Segment Totals | Turkey. | |||||
Segment Information | |||||
Total assets | 307 | 307 | 245 | ||
Segment Totals | All Other | |||||
Segment Information | |||||
Operating Income (Loss) | 1 | 1 | |||
Total assets | 7 | 7 | 7 | ||
Corporate Items | |||||
Segment Information | |||||
Operating Income (Loss) | (6) | $ (4) | (10) | $ (16) | |
Total assets | $ 1,323 | $ 1,323 | $ 1,669 |
Segment Information - Turkey (D
Segment Information - Turkey (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||
Apr. 19, 2022 | Oct. 01, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | Oct. 02, 2021 | Jul. 03, 2021 | Apr. 03, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | Dec. 31, 2021 | |
Segment Information | ||||||||||
Total assets | $ 7,744 | $ 7,744 | $ 7,503 | |||||||
Net earnings (loss) | 146 | $ 108 | $ 104 | $ 94 | $ 176 | $ 179 | 358 | $ 449 | ||
Investments in and advances to affiliates | 717 | 717 | 651 | |||||||
Turkey. | ||||||||||
Segment Information | ||||||||||
Investments in and advances to affiliates | 307 | 307 | 245 | |||||||
Turkey. | Butterball, LLC | ||||||||||
Segment Information | ||||||||||
Total assets | 1,200 | 1,200 | $ 1,000 | |||||||
Net sales | 552 | 464 | 1,368 | 1,176 | ||||||
Operating loss | 65 | (15) | 105 | (35) | ||||||
Net earnings (loss) | $ 63 | $ (18) | $ 114 | $ (36) | ||||||
Percentage of issued and outstanding stock units acquired | 5% | |||||||||
Detachable warrants | Turkey. | Butterball, LLC | ||||||||||
Segment Information | ||||||||||
Additional equity interest that can be acquired upon exercise of warrants (as a percent) | 5% | 5% | ||||||||
Economic interest (as a percent) | 52.50% | 52.50% |