Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 31, 2023 | Jul. 02, 2022 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 1,160,779 | ||
Entity Public Float | $ 975,629,464 | ||
Auditor Name | KPMG LLP | ||
Auditor Location | Kansas City, MO | ||
Auditor Firm ID | 185 | ||
Entity Central Index Key | 0000088121 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net sales: | |||
Total net sales | $ 11,243 | $ 9,229 | $ 7,126 |
Cost of sales and operating expenses: | |||
Total cost of sales and operating expenses | 10,213 | 8,411 | 6,552 |
Gross income | 1,030 | 818 | 574 |
Selling, general and administrative expenses | 373 | 360 | 329 |
Operating income | 657 | 458 | 245 |
Other income (expense): | |||
Interest expense | (40) | (13) | (19) |
Interest income | 32 | 22 | 22 |
Income (loss) from affiliates | 152 | 7 | (18) |
Other investment income (loss), net | (239) | 133 | 84 |
Foreign currency gains (losses), net | 5 | 16 | (31) |
Miscellaneous, net | 12 | 13 | 3 |
Total other income, net | (78) | 178 | 41 |
Earnings before income taxes | 579 | 636 | 286 |
Income tax benefit (expense) | 3 | (65) | (3) |
Net earnings | 582 | 571 | 283 |
Less: Net earnings attributable to noncontrolling interests | (2) | (1) | 0 |
Net earnings attributable to Seaboard | $ 580 | $ 570 | $ 283 |
Earnings per common share (in dollars per share) | $ 499.66 | $ 490.36 | $ 244.21 |
Average number of shares outstanding (in shares) | 1,160,779 | 1,160,779 | 1,161,526 |
Other comprehensive income (loss), net of income tax benefit (expense) of $(8), $(8) and $3: | |||
Foreign currency translation adjustment | $ (33) | $ 8 | $ (7) |
Unrecognized pension cost | 43 | 31 | (23) |
Other comprehensive income (loss), net of tax | 10 | 39 | (30) |
Comprehensive income | 592 | 610 | 253 |
Less: Comprehensive income attributable to noncontrolling interests | (2) | (1) | (1) |
Comprehensive income attributable to Seaboard | 590 | 609 | 252 |
Products | |||
Net sales: | |||
Total net sales | 8,979 | 7,714 | 5,993 |
Cost of sales and operating expenses: | |||
Total cost of sales and operating expenses | 8,707 | 7,223 | 5,580 |
Services | |||
Net sales: | |||
Total net sales | 2,100 | 1,445 | 1,058 |
Cost of sales and operating expenses: | |||
Total cost of sales and operating expenses | 1,369 | 1,124 | 915 |
Other | |||
Net sales: | |||
Total net sales | 164 | 70 | 75 |
Cost of sales and operating expenses: | |||
Total cost of sales and operating expenses | $ 137 | $ 64 | $ 57 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other comprehensive income (loss), income tax (expense) benefit | $ (8) | $ (8) | $ 3 |
Products | |||
Sales to related parties | 1,463 | 1,396 | 1,125 |
Services | |||
Sales to related parties | $ 20 | $ 20 | $ 21 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 199 | $ 75 |
Short-term investments | 1,086 | 1,416 |
Receivables: | ||
Receivables, net | 923 | 762 |
Inventories | 1,670 | 1,663 |
Other current assets | 139 | 131 |
Total current assets | 4,017 | 4,047 |
Property, plant and equipment, net | 2,246 | 1,892 |
Operating lease right of use assets, net | 445 | 496 |
Investments in and advances to affiliates | 753 | 651 |
Goodwill | 154 | 163 |
Other intangible assets, net | 31 | 45 |
Other non-current assets | 256 | 209 |
Total assets | 7,902 | 7,503 |
Current liabilities: | ||
Lines of credit | 457 | 516 |
Accounts payable | 429 | 404 |
Accrued compensation and benefits | 158 | 143 |
Deferred revenue | 70 | 108 |
Operating lease liabilities | 156 | 171 |
Accrued voyage costs | 61 | 60 |
Other current liabilities | 198 | 150 |
Total current liabilities | 1,529 | 1,552 |
Long-term debt, less current maturities | 702 | 708 |
Long-term operating lease liabilities | 318 | 360 |
Accrued pension liability | 71 | 131 |
Deferred income taxes | 99 | |
Other non-current liabilities | 268 | 219 |
Total liabilities | 2,888 | 3,069 |
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 | (422) | (432) |
Retained earnings | 5,417 | 4,847 |
Total Seaboard stockholders' equity | 4,996 | 4,416 |
Noncontrolling interests | 18 | 18 |
Total equity | 5,014 | 4,434 |
Total liabilities and equity | $ 7,902 | $ 7,503 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Consolidated Balance Sheets | ||
Accounts payable to affiliates | $ 2 | $ 1 |
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 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Common Stock | Accumulated Other Comprehensive Loss | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Noncontrolling Interest | Cumulative Effect, Period of Adoption, Adjustment | Total |
Balances at Dec. 31, 2019 | $ 1 | $ (440) | $ (3) | $ 4,030 | $ 10 | $ (3) | $ 3,601 |
Comprehensive income: | |||||||
Net earnings | 283 | 283 | |||||
Other comprehensive income (loss), net of tax | (31) | 1 | (30) | ||||
Repurchase of common stock | (13) | (13) | |||||
Dividends on common stock ($9.00/share) | (10) | (10) | |||||
Balances at Dec. 31, 2020 | 1 | (471) | 4,287 | 11 | 3,828 | ||
Comprehensive income: | |||||||
Net earnings | 570 | 1 | 571 | ||||
Other comprehensive income (loss), net of tax | 39 | 39 | |||||
Acquisition of noncontrolling interests | 6 | 6 | |||||
Dividends on common stock ($9.00/share) | (10) | (10) | |||||
Balances at Dec. 31, 2021 | 1 | (432) | 4,847 | 18 | 4,434 | ||
Comprehensive income: | |||||||
Net earnings | 580 | 2 | 582 | ||||
Other comprehensive income (loss), net of tax | 10 | 10 | |||||
Distributions to noncontrolling interests | (2) | (2) | |||||
Dividends on common stock ($9.00/share) | (10) | (10) | |||||
Balances at Dec. 31, 2022 | $ 1 | $ (422) | $ 5,417 | $ 18 | $ 5,014 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated Statements of Changes in Equity | |||
Dividends on common stock (in dollars per share) | $ 9 | $ 9 | $ 9 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net earnings | $ 582 | $ 571 | $ 283 |
Adjustments to reconcile net earnings to cash from operating activities: | |||
Depreciation and amortization | 235 | 178 | 172 |
Deferred income taxes | (112) | (12) | 11 |
Loss (income) from affiliates | (152) | (7) | 18 |
Dividends received from affiliates | 40 | 44 | 20 |
Other investment loss (income), net | 239 | (133) | (84) |
Other, net | 39 | 43 | (22) |
Changes in assets and liabilities, net of acquisitions and dispositions: | |||
Receivables, net of allowance | (188) | (228) | 104 |
Inventories | (20) | (462) | (99) |
Other assets | (7) | (20) | (10) |
Accounts payable | 26 | 117 | (99) |
Other liabilities, exclusive of debt | (6) | 1 | (3) |
Net cash from operating activities | 676 | 92 | 291 |
Cash flows from investing activities: | |||
Purchase of short-term investments | (567) | (2,031) | (739) |
Proceeds from sale of short-term investments | 717 | 2,202 | 791 |
Proceeds from maturity of short-term investments | 15 | 26 | 47 |
Capital expenditures | (474) | (460) | (259) |
Proceeds from sale of property, plant and equipment | 29 | 39 | 4 |
Purchase of long-term investments | (117) | (98) | (47) |
Proceeds from sale of non-consolidated affiliates | 13 | ||
Acquisition of businesses | (58) | (7) | (27) |
Proceeds from the sale of subsidiaries, net of cash sold | 17 | ||
Notes receivable issued to affiliates | (13) | ||
Principal payments received on third party notes receivable | 5 | 21 | |
Other, net | (4) | 6 | (32) |
Net cash from investing activities | (437) | (302) | (262) |
Cash flows from financing activities: | |||
Uncommitted lines of credit, net | (27) | 135 | (18) |
Draws under committed lines of credit | 1,215 | 672 | 290 |
Repayments of committed lines of credit | (1,241) | (515) | (290) |
Proceeds from long-term debt | 1 | 37 | |
Principal payments of long-term debt | (8) | (55) | (69) |
Finance lease payments | (44) | (14) | (7) |
Repurchase of common stock | (13) | ||
Dividends paid | (10) | (10) | (10) |
Other, net | (2) | (2) | |
Net cash from financing activities | (116) | 213 | (82) |
Effect of exchange rate changes on cash and cash equivalents | 1 | (4) | 4 |
Net change in cash and cash equivalents | 124 | (1) | (49) |
Cash and cash equivalents at beginning of year | 75 | 76 | 125 |
Cash and cash equivalents at end of year | $ 199 | $ 75 | $ 76 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 1 − Su mmary of Significant Accounting Policies Operations of Seaboard Corporation and its Subsidiaries Seaboard Corporation and its subsidiaries (collectively, “Seaboard”) together comprise a diversified group of companies that operate worldwide in agricultural and ocean transport businesses. Seaboard is primarily engaged in hog production and pork processing in the United States (“U.S.”); commodity trading and grain processing in Africa and South America; cargo shipping services in the U.S., Caribbean and Central and South America; sugar and alcohol production in Argentina; and electric power generation in the Dominican Republic. Seaboard also has an equity method investment in Butterball, LLC (“Butterball”), a producer and processor of turkey products. Seaboard’s outstanding common stock is closely held, with approximately 77% collectively owned by Seaboard Flour LLC and SFC Preferred, LLC. Principles of Consolidation The consolidated financial statements include the accounts of Seaboard Corporation and its domestic and foreign subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Financial information from certain foreign subsidiaries is reported on a one Investments in Affiliates Investments in non-consolidated affiliates, where Seaboard has significant influence but does not have a controlling interest, are accounted for by the equity method. Under the equity method of accounting, the initial investment is recorded at cost and the investment is subsequently adjusted for its proportionate share of earnings or losses and dividends, including consideration of basis differences resulting from the difference between the initial carrying amount of the investment and the underlying equity in net assets. Seaboard reviews its investments in affiliates for impairment whenever events or changes in business circumstances indicate that the carrying amount of the investments may not be fully recoverable. For the Commodity Trading and Milling (“CT&M”) segment, investments in affiliates are primarily in foreign countries, which are less developed than the U.S., and therefore, expose Seaboard to greater financial risks. At certain times when there are ongoing losses, local economies are depressed, commodity-based markets are less stable or foreign governments cause challenging business conditions, the fair value of the equity method investments is evaluated by management. As the fair value of these investments is not readily determinable, management uses other methods to determine fair value such as estimated future cash flows, including assumptions on growth rates and consideration of other local business conditions as applicable. Use of Estimates These financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Foreign Currency Transactions and Translation Seaboard has operations in several foreign countries, and the currencies of the countries fluctuate in relation to the U.S. dollar, resulting in foreign currency gains and losses. Certain CT&M segment subsidiaries located in Guyana, Ivory Coast, Senegal, South Africa and Zambia use local currency as their functional currency. Assets and liabilities of these subsidiaries are translated to U.S. dollars at year-end exchange rates, and income and expenses are translated at average rates. Translation gains and losses are recorded as components of other comprehensive income (loss). Also, certain non-consolidated affiliates, primarily in the CT&M segment use local currency as their functional currency. Seaboard applies highly inflationary accounting for countries whose cumulative inflation rate for a three-year period meets or exceeds 100%. Under highly inflationary accounting, the financial statements of a subsidiary are remeasured into Seaboard’s reporting currency (U.S. dollars) and exchange gains and losses from the remeasurement of monetary assets and liabilities are reflected in net income, rather than accumulated other comprehensive income (loss) on the balance sheet, until the economy is no longer considered highly inflationary. Certain non-monetary assets and liabilities are recorded at the applicable historical exchange rates. Seaboard applies highly inflationary accounting for the Sugar and Alcohol segment, which operates in Argentina. Cash and Cash Equivalents Cash equivalents include all demand deposits, overnight investments and other highly liquid investments with original maturities of three months or less. Supplemental Cash Flow Information The amounts paid for interest and income taxes are as follows: Years ended December 31, (Millions of dollars) 2022 2021 2020 Interest, net of interest capitalized $ 35 $ 10 $ 16 Income taxes, net of refunds 101 104 55 Non-cash activities related to capital expenditures of $15 million, $5 million and $7 million that were included in accounts payable as of December 31, 2022, 2021 and 2020, respectively. Short-term Investments Short-term investments are categorized as trading securities and carried at fair value. Changes in the fair value of short-term investments are recorded as unrealized gains and losses included in other investment income (loss), net in the consolidated statements of comprehensive income, with any purchases and sales recorded on a settlement date basis. Accounts Receivable The following table presents the components of Seaboard’s receivables as of December 31, 2022 and 2021: December 31, (Millions of dollars) 2022 2021 Receivables: Trade $ 588 $ 553 Due from affiliates 195 128 Other 171 112 Total receivables 954 793 Allowance for credit losses (31) (31) Net receivables $ 923 $ 762 Accounts receivable are recorded at the invoiced amount and generally do not bear interest. The allowance for credit losses is Seaboard’s best estimate of the amount of probable credit losses using the current expected credit loss model. T his model estimates the lifetime of expected credit loss based on historical experience, current conditions and reasonable supportable forecasts. The activity within the allowance for credit losses was as follows: Balance at Transition Balance at (Millions of dollars) beginning of year Adjustment (a) Provision (b) Net deductions (c) end of year Allowance for Credit Losses: Year Ended December 31, 2022 $ 31 — 7 (7) $ 31 Year Ended December 31, 2021 $ 28 — 5 (2) $ 31 Year Ended December 31, 2020 $ 28 3 — (3) $ 28 (a) (b) (c) Notes Receivable Notes receivable are included in other receivables, if current, and other non-current assets, if long-term. Seaboard’s non-current notes receivable balances, net of reserves, were $40 million and $30 million as of December 31, 2022 and 2021, respectively. Seaboard monitors the credit quality of notes receivable, using the current expected credit loss model. The activity within the allowance for non-current notes receivable was as follows: Balance at Balance at (Millions of dollars) beginning of year Provision Net deductions end of year Allowance for Notes Receivable: Year Ended December 31, 2022 $ 18 — (1) $ 17 Year Ended December 31, 2021 $ 17 1 — $ 18 Year Ended December 31, 2020 $ 17 — — $ 17 Inventories Grain, flour and feed inventories at the CT&M segment’s foreign milling operations are valued at the lower of weighted average cost and net realizable value (“NRV”). All other inventories are valued at the lower of first-in, first-out (“FIFO”) cost and NRV. In determining NRV, management makes assumptions regarding estimated sales prices, estimated costs to complete and estimated disposal costs. Changes in future market prices or facts and circumstances could result in a material write down in the value of inventory or decreased future margins on the sale of inventory. Property, Plant and Equipment Property, plant and equipment are carried at cost and, except for land, depreciated using the straight-line method over an estimated useful life, ranging from 3 to 30 years. Property, plant and equipment under finance leases are stated at the present value of minimum lease payments and subsequently amortized using the straight-line method over the earlier of the end of its useful life or the end of the lease term. Routine and planned major maintenance, repairs and minor renewals are expensed as incurred, while major renewals and improvements are capitalized. Property, plant and equipment and other long-lived assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of the asset to future undiscounted net cash flows expected to be generated by the asset. Impairment is recognized if the carrying amount of the assets exceeds the estimated fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. Right of Use Assets and Lease Liabilities Right of Use (“ROU”) assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The present value of lease payments is determined primarily using the incremental borrowing rate based on the information available at the lease commencement date. For leases that do not have readily determinable implicit discount rates, Seaboard adjusts its incremental borrowing rate by the local risk-free interest rate on its Term Loan due 2028 with a credit risk premium corresponding to Seaboard’s unreported credit rating. Then Seaboard determines discount rates based on term, country and currency where the leased asset is located. Seaboard accounts for lease and non-lease maintenance components as a single lease component for all classes of underlying assets. Seaboard does not recognize ROU assets and lease liabilities for short-term leases with terms greater than 1 month, but less than 12 months. Goodwill and Other Intangible Assets Goodwill is assessed annually for impairment by each reporting unit at the quarter-end closest to the anniversary date of the initial acquisition, or more frequently if events or changes in circumstances indicate that impairment is likely. Seaboard first assesses qualitative factors to determine whether it is more likely than not the fair value of any reporting unit is less than its carrying amount. If qualitative factors indicate more likely than not that an impairment is possible, Seaboard performs a quantitative impairment test using discounted cash flow analysis by comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. No The changes in the carrying amount of goodwill were as follows: Pork CT&M (Millions of dollars) Segment Segment Total Balance as of December 31, 2020 $ 18 $ 149 $ 167 Impairment — (4) (4) Balance as of December 31, 2021 18 145 163 Foreign currency translation — (13) (13) Acquisition 4 — 4 Balance as of December 31, 2022 $ 22 $ 132 $ 154 Separable intangible assets with finite lives are amortized over their estimated useful lives and evaluated for impairment similar to property, plant and equipment discussed above. The gross carrying amount and accumulated amortization for finite-lived intangible were as follows: December 31, 2022 December 31, 2021 Customer Trade Customer Trade (Millions of dollars) relationships names Total relationships names Total Gross carrying amount $ 51 $ 28 $ 79 $ 51 $ 28 $ 79 Accumulated amortization and currency translation (31) (17) (48) (22) (12) (34) Net carrying amount $ 20 $ 11 $ 31 $ 29 $ 16 $ 45 Amortization of intangible assets was $8 million, $9 million and $8 million for the years ended December 31, 2022, 2021 and 2020, respectively. Using the exchange rates in effect at year-end, estimated amortization of intangible assets as of December 31, 2022 is $8 million each for Accrued Self-Insurance Seaboard is self-insured for certain levels of workers’ compensation, health care coverage, property damage, vehicle, product recall and general liability. Liabilities associated with some of these risks is estimated based on actuarially-determined amounts and accrued in part by considering historical claims experience, demographic factors, severity factors and other actuarial assumptions. Changes in estimates to previously recorded reserves are reflected in current operating results. Asset Retirement Obligation Seaboard records a long-lived asset and a related liability for the asset retirement obligation costs associated with the closure of all hog lagoons. Based on detailed assessments and appraisals obtained to estimate the future asset retirement obligation costs, Seaboard recorded the present value of the projected costs in other non-current liabilities in the consolidated balance sheets. The retirement asset is depreciated over the economic life of the related asset. The following table shows the changes in the asset retirement obligation: Years ended December 31, (Millions of dollars) 2022 2021 Beginning balance $ 29 $ 27 Accretion expense 2 1 Liability for additional lagoons 1 1 Ending balance $ 32 $ 29 Pension Plans Seaboard records annual income and expense amounts relating to its pension plans based on calculations which include various actuarial assumptions, including discount rates, mortality, assumed rates of return, compensation increases, and turnover rates. Seaboard reviews its actuarial assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is deemed appropriate to do so. The effect of modifications on the value of plan obligations and assets is recognized immediately within other comprehensive income (loss) and amortized into operating earnings over future periods. Revenue Recognition Almost all of Seaboard’s contracts with its customers are less than one year. Seaboard recognizes revenue when control of the promised goods or services is transferred to its customers, in an amount that reflects the consideration it expects to receive in exchange for those goods or services. The majority of Seaboard’s revenue arrangements consist of a single performance obligation as the promise to transfer the individual product or service is not separately identifiable from other promises in the contracts, including shipping and handling and customary storage, and, therefore, not distinct. Revenue from goods and services transferred to customers at a single point in time account for approximately 85% of Seaboard’s net sales. Substantially all of the sales in Seaboard’s Marine segment are recognized ratably over the transit time for each voyage, as the performance obligation to its customers is satisfied. Seaboard’s transaction prices are mostly fixed, but occasionally include minimal variable consideration for early payment, volume and other similar discounts, which are highly probable based on the history with the respective customers. Taxes assessed by a governmental authority that are collected by Seaboard from a customer are excluded from sales. Seaboard recognizes a financing component only on obligations that extend longer than one year. Deferred revenue represents cash payments received in advance of Seaboard’s performance or revenue billed that is unearned. The CT&M segment requires certain customers to pay in advance or upon delivery to avoid collection risk. The Marine segment’s deferred revenue balance primarily relates to the unearned portion of billed revenue when a ship is on the water and has not arrived at the designated port. Deferred revenue balances are reduced when revenue is recognized. The majority of the deferred revenue balance as of year-end is recognized as revenue during the following quarter. Research and Development Seaboard conducts research and development activities to develop new products and to improve existing products and processes. Seaboard incurred research and development expenses of $210 million, $191 million and $134 million for the years ended December 31, 2022, 2021 and 2020, respectively. Income Taxes Effects of changes in tax laws, including retroactive changes, are recognized in the financial statements in the period that the changes are enacted. Deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. Seaboard accounts for the global intangible low-taxed income (“GILTI”) provision and the base-erosion and anti-abuse tax (“BEAT”) provision taxes in the period incurred. 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. Earnings Per Common Share Earnings per common share are based upon the weighted-average shares outstanding during the period. Basic and diluted earnings per share are the same for all periods presented. Accounting Standards Recently Adopted On January 1, 2020, Seaboard adopted guidance requiring the use of a new current expected credit loss model to determine the allowance for credit losses for receivables, among other financial instruments. This model estimates the lifetime of expected credit loss and replaces the existing incurred loss model. As a result of this adoption, Seaboard recorded a cumulative-effect adjustment of $3 million on January 1, 2020 that decreased retained earnings and increased the allowance for credit losses. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2022 | |
Investments | |
Investments | Note 2 − Investments The following is a summary of the estimated fair value of short-term investments classified as trading securities: December 31, (Millions of dollars) 2022 2021 Domestic equity securities $ 433 $ 472 Domestic debt securities 399 542 Foreign equity securities 169 193 Foreign debt securities 66 133 Money market funds held in trading accounts 12 59 Other trading securities 7 17 Total trading short-term investments $ 1,086 $ 1,416 The unrealized gains (losses) related to trading securities still held at the end of the respective reporting period was ($129) million, $12 million and $74 million for the years ended December 31, 2022, 2021 and 2020, respectively. Seaboard had $16 million and $46 million of short-term investments denominated in foreign currencies as of December 31, 2022 and 2021, respectively. Seaboard had long-term investments of $185 million and $156 million as of December 31, 2022 and 2021, respectively, classified in other non-current assets on the consolidated balance sheets. These investments are 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 10 and the other investments are primarily accounted for under the equity method of accounting with any gains (losses) recorded in other investment income (loss). |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventories | |
Inventories | Note 3 − Inventories The following table is a summary of inventories: December 31, (Millions of dollars) 2022 2021 At lower of FIFO cost and NRV: Hogs and materials $ 538 $ 489 Pork products and materials 75 64 Grains, oilseeds and other commodities 475 634 Biofuels and related credits 221 147 Other 104 92 Total inventories at lower of FIFO cost and NRV 1,413 1,426 Grain, flour and feed at lower of weighted average cost and NRV 257 237 Total inventories $ 1,670 $ 1,663 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment | |
Property, Plant and Equipment | Note 4 − Property, Plant and Equipment The following table is a summary of property, plant and equipment: Useful December 31, (Millions of dollars) Lives 2022 2021 Land and improvements 3 - 15 years $ 331 $ 285 Buildings and improvements 30 years 779 739 Machinery and equipment 3 - 20 years 2,027 1,445 Vessels and vehicles 3 - 18 years 373 214 Office furniture and fixtures 5 years 43 45 Contract growers 5 - 15 years 151 118 Construction in progress 286 613 Total property, plant and equipment 3,990 3,459 Accumulated depreciation and amortization (1,744) (1,567) Net property, plant and equipment $ 2,246 $ 1,892 Seaboard’s capitalized interest on construction in progress was $4 million and $7 million for the years ended December 31, 2022 and 2021, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Leases | Note 5 − Leases Seaboard leases ports, vessels, contract grower assets, and to a lesser extent, land, buildings and machinery and equipment. Seaboard’s non-lease components are primarily for services related to labor associated with crew services on vessel charter arrangements and caring for hogs in its contract grower agreements. Seaboard’s operating lease assets and liabilities are reported separately in the consolidated balance sheets. The classifications of Seaboard’s finance leases in the consolidated balance sheets were as follows: (Millions of dollars) 2022 2021 Finance lease right of use assets, net Property, plant and equipment, net $ 198 $ 128 Finance lease liabilities Other current liabilities 56 23 Non-current finance lease liabilities Other liabilities 143 104 Lease cost is included in various line items in the consolidated statements of comprehensive income or capitalized to inventory. Operating lease cost and short-term lease cost are recognized on a straight-line basis over the lease term. Finance lease cost is recognized based on the effective interest method for the lease liability and straight-line amortization of the ROU asset. Variable lease payments are recognized when the circumstance on which those payments are assessed occurs. The components of lease cost were as follows for the years ended December 31: (Millions of dollars) 2022 2021 2020 Operating lease cost $ 184 $ 162 $ 145 Finance lease cost: Amortization of right of use assets 46 17 9 Interest on lease liabilities 6 5 4 Variable lease cost (a) 18 20 8 Short-term lease cost (b) 13 27 25 Sublease income (6) (8) (6) Total lease cost $ 261 $ 223 $ 185 (a) Includes throughput of cargo containers in excess of minimums and changes in indexed charter-hire rates. (b) Short-term term leases are primarily for cargo containers and vessels. Weighted-average lease terms and discount rates were as follows as of December 31, 2022 and 2021: Operating Leases Finance Leases 2022 2021 2022 2021 Weighted-average remaining term (in years) 5 4 5 7 Weighted-average discount rate 6.13% 5.37% 3.44% 4.16% Maturities of lease liabilities as of December 31, 2022 were as follows: Operating Finance (Millions of dollars) Leases Leases 2023 $ 175 $ 61 2024 101 55 2025 69 32 2026 62 18 2027 48 12 Thereafter 108 45 Total undiscounted lease payments 563 223 Less imputed interest (89) (24) Total lease liability $ 474 $ 199 The following table includes supplemental cash and non-cash information related to leases. Seaboard reports the amortization of ROU assets and changes in operating lease liabilities in other liabilities, exclusive of debt in the consolidated statements of cash flows. December 31, (Millions of dollars) 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 194 $ 166 $ 142 Operating cash flows from finance leases 6 5 4 Financing cash flows from finance leases 44 14 7 ROU assets obtained in exchange for new lease liabilities: Operating leases $ 118 $ 244 $ 62 Finance leases 116 54 50 |
Investments in Affiliates
Investments in Affiliates | 12 Months Ended |
Dec. 31, 2022 | |
Investments in Affiliates | |
Investments in Affiliates | Note 6 – Investments in Affiliates Seaboard has investments in several non-consolidated affiliates to further its business strategies and partner with other entities that have expertise in certain industries and countries. These investments are all accounted for using the equity method of accounting. Investments in and Income (Loss) Advances to Affiliates from Affiliates December 31, Years ended December 31, (Millions of dollars) 2022 2021 2022 2021 2020 Pork $ 152 $ 142 $ 24 $ 3 $ (9) CT&M 210 224 21 18 (2) Marine 36 33 4 6 2 Sugar and Alcohol 2 4 — — 1 Power 3 3 — — — Turkey 350 245 103 (20) (10) Segment/Consolidated Totals $ 753 $ 651 $ 152 $ 7 $ (18) Related-party transactions with these non-consolidated affiliates were as follows: December 31, (Millions of dollars) 2022 2021 2020 Product sales to related parties $ 1,463 $ 1,396 $ 1,125 Service revenue to related parties $ 20 $ 20 $ 21 Purchases from related parties included in Cost of Sales (a) $ 91 $ — $ — (a) As Seaboard conducts its agricultural commodity trading business with third parties, consolidated subsidiaries and non-consolidated affiliates on an interrelated basis, cost of sales on affiliates cannot be distinguished without making numerous assumptions, primarily with respect to mark-to-market accounting for commodity derivatives. Seaboard had $195 million and $128 million of receivables due from affiliates primarily related to product sales as of December 31, 2022 and 2021, respectively. Also, Seaboard had $2 million and $1 million of payables due to affiliates primarily related to purchases of inventory at December 31, 2022 and 2021, respectively. Deferred revenue from affiliates of $12 million and $24 million at December 31, 2022 and 2021, respectively, represents advance payments on future shipments of commodities in the CT&M segment. There were notes receivables due from affiliates outstanding of $2 million and $1 million as of December 31, 2022 and 2021, respectively. The Pork segment has noncontrolling joint ventures in Seaboard Triumph Foods, LLC (“STF”) (50%), which operates a pork processing plant, Daily’s Premium Meats, LLC (“Daily’s”) (50%), which produces raw and pre-cooked bacon, and Seaboard de Mexico USA LLC (“Seaboard de Mexico”) (50%), which bones hams. Seaboard’s Pork segment supplies raw materials to Daily’s, STF and Seaboard de Mexico for processing and also provides marketing services to Daily’s and STF for its pork products. STF supplies feedstock for the Pork segment’s renewable diesel operations. On January 1, 2022, Seaboard sold a 50% interest in Seaboard de 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, Seaboard de Mexico was deconsolidated and a $6 million gain on sale was recognized in Miscellaneous, net. Combined financial information for the Pork segment’s non-consolidated affiliates was as follows: Pork Segment December 31, (Millions of dollars) 2022 2021 2020 Net sales $ 2,417 $ 2,010 $ 1,543 Net income (loss) $ 48 $ 5 $ (18) Total assets $ 615 $ 584 $ 586 Total liabilities $ 312 $ 302 $ 245 Total equity $ 303 $ 282 $ 341 The CT&M segment has noncontrolling interests in foreign businesses conducting flour, maize and feed milling, baking operations, poultry production and processing, and agricultural commodity trading. The CT&M segment supplies commodities to the majority of its milling affiliates. As of December 31, 2022, the location and percentage ownership of CT&M’s affiliates were as follows: Botswana (50%), Democratic Republic of Congo (50%), Gambia (50%), Kenya (18.47%-49%), Lesotho (50%), Mauritania (50%), Morocco (15.13%-17.71%), Nigeria (25%-48.33%), Senegal (49%), South Africa (50%), Tanzania (11.76%-49%), Uganda (23.5%-49%) and Zambia (49%) in Africa; Colombia (40%-42%), Ecuador (25%-50%), Guyana (50%), and Peru (50%) in South America; Jamaica (50%) and Haiti (23.33%) in the Caribbean; Turkey (25%) in Europe; and Canada (45%) and the U.S. (20%) in North America. As of December 31, 2022, the CT&M segment’s carrying value of certain investments in affiliates was more than its share of the affiliates’ book value by $49 million. The excess is attributable primarily to the valuation of property, plant and equipment and intangible assets, with basis adjustments amortized to income (loss) from affiliates over the remaining life of the assets. During the second quarter of 2022, this segment sold a 20% interest in its North American protein and commodity trading company to the majority owner for cash proceeds of $12 million. Combined financial information for the CT&M segment’s non-consolidated affiliates was as follows: CT&M Segment December 31, (Millions of dollars) 2022 2021 2020 Net sales $ 3,186 $ 2,766 $ 2,482 Net income (loss) $ 40 $ 47 $ (2) Total assets $ 1,848 $ 1,798 $ 1,745 Total liabilities $ 1,250 $ 1,199 $ 1,185 Total equity $ 598 $ 599 $ 560 The Marine segment has noncontrolling interests in foreign businesses that primarily own cargo terminal operations in the Caribbean (16.87%- 21.02%) which provide terminal and stevedoring services to the Marine segment. As of December 31, 2022, the Marine segment’s carrying value of certain investments in affiliates was less than its share of the affiliates’ book value by $40 million. The difference is attributable primarily to the valuation of property, plant and equipment and impairments taken by Seaboard, but not the respective entity, with basis adjustments amortized to income (loss) from affiliates over the remaining life of the assets. Combined financial information for the Marine segment’s non-consolidated affiliates was as follows: Marine Segment December 31, (Millions of dollars) 2022 2021 2020 Net sales $ 82 $ 74 $ 66 Net income $ 21 $ 27 $ 8 Total assets $ 256 $ 245 $ 253 Total liabilities $ 61 $ 88 $ 98 Total equity $ 195 $ 157 $ 155 The Sugar and Alcohol segment has noncontrolling interests in two sugar-related businesses in Argentina (50%). Combined financial information for the Sugar and Alcohol segment’s non-consolidated affiliates was as follows: Sugar and Alcohol Segment December 31, (Millions of dollars) 2022 2021 2020 Net sales $ 8 $ 6 $ 7 Net income $ — $ — $ 1 Total assets $ 6 $ 8 $ 14 Total liabilities $ 2 $ 1 $ 2 Total equity $ 4 $ 7 $ 12 The Power segment has noncontrolling interests in two energy-related businesses in the Dominican Republic (45% and 50%). Combined financial information for the Power segment’s non-consolidated affiliates was as follows: Power Segment December 31, (Millions of dollars) 2022 2021 2020 Net sales $ 1 $ 1 $ 1 Net income $ — $ 1 $ — Total assets $ 9 $ 12 $ 12 Total liabilities $ 3 $ 5 $ 6 Total equity $ 6 $ 7 $ 6 The Turkey segment represents Seaboard’s noncontrolling interest in Butterball. Since 2010, Seaboard has 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 GAAP and were classified as investments in and advances to affiliates in the consolidated balance sheets. The warrant agreement essentially provided Seaboard with a 52.5% economic interest and therefore Seaboard has historically recorded 52.5% of Butterball’s earnings as income (loss) from affiliates in the consolidated statements of comprehensive income. During 2022, Seaboard exercised the warrants resulting in no impact to the financial statements. All significant corporate governance matters upon exercise remained equally shared between Seaboard and its partner in Butterball and Seaboard did not acquire any new consequential rights upon exercise of the warrants. Turkey Segment December 31, (Millions of dollars) 2022 2021 2020 Net sales $ 2,050 $ 1,792 $ 1,675 Operating income (loss) $ 202 $ (34) $ (6) Net income (loss) $ 196 $ (38) $ (20) Total assets $ 1,081 $ 991 $ 993 Total liabilities $ 406 $ 517 $ 481 Total equity $ 675 $ 474 $ 512 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt | |
Debt | Note 7 − Debt Lines of Credit The outstanding balances under uncommitted lines of credit were $326 million and $359 million as of December 31, 2022 and 2021, respectively. Of the outstanding balance as of December 31, 2022, $194 million was denominated in foreign currencies, with $174 million denominated in the South African rand. Of the outstanding balance as of December 31, 2021, $218 million was denominated in foreign currencies, with $177 million denominated in the South African rand. The uncommitted lines of credit are unsecured and do not require compensating balances with the exception of $3 million as of December 31, 2022. As of December 31, 2022, Seaboard had a committed $250 million line of credit secured by certain short-term investments maturing March 31, 2023. In 2022, Seaboard amended this committed line of credit agreement to extend the maturity date and change the interest reference rate from LIBOR to SOFR (Secured Overnight Financing Rate). Draws bear interest based on SOFR plus a spread. There was $131 million and $157 million outstanding under this committed line of credit as of December 31, 2022 and December 31, 2021, respectively. The weighted average interest rate for outstanding lines of credit was 7.03% and 2.71% as of December 31, 2022 and 2021, respectively. Long-term Debt The following table is a summary of long-term debt: December 31, (Millions of dollars) 2022 2021 Term Loan due 2028 $ 670 $ 677 Foreign subsidiary obligations 2 1 Other long-term debt 38 39 Total debt at face value 710 717 Current maturities and unamortized discount and costs (8) (9) Long-term debt, less current maturities and unamortized discount and costs $ 702 $ 708 In 2018, Seaboard Foods LLC entered into an Amended and Restated Term Loan Credit Agreement (“Credit Agreement”) with CoBank, ACB, Farm Credit Services of America, PCA, and the lenders party thereto for a $700 million unsecured term loan (“Term Loan”). The Term Loan provides for quarterly payments of the principal balance to the revised amortization schedule set forth in the Credit Agreement, with the balance due on the maturity date of September 25, 2028. The Term Loan bears interest at fluctuating rates based on various margins over a Base Rate, LIBOR or a Quoted Rate, at the option of the borrower. The interest rate was 6.01% and 1.73% as of December 31, 2022 and 2021, respectively. The Credit Agreement contains customary covenants for credit facilities of this type, including restrictions on the incurrence of indebtedness over a certain threshold, ability to make certain acquisitions, investments and asset dispositions and aggregate dividend payments. In conjunction with the purchase of certain equipment during 2021, $9 million of secured, other long-term debt was assumed. The loan agreement incurs a fixed interest rate of 5.60% and matures in August 2037. In December 2020, Seaboard received a $30 million note that incurs a fixed interest rate of 1.28% and matures in 2027. Seaboard was in compliance with all restrictive debt covenants relating to these agreements as of December 31, 2022. The aggregate minimum principal payments required on long-term debt as of December 31, 2022 were as follows: $7 million in 2023, $8 million in 2024, $8 million in 2025, $8 million in 2026, $38 million in 2027 and $641 million thereafter. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 8 − Commitments and Contingencies 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 Price-Fixing 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 “Minnesota 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 Minnesota District Court, and three additional actions by standalone plaintiffs (including the Commonwealth of Puerto Rico) were filed in or transferred to the Minnesota 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 Minnesota District Court denied defendants’ motions to dismiss the amended complaints, but the Minnesota 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. Pork Compensation Antitrust Litigation On November 11, 2022, three employees of pork or beef processing plants filed a class action complaint in the U.S. District Court for the District of Colorado, individually and on behalf of all other employees at such plants (the “Class”), against several pork and beef processors and their subsidiaries and related companies, including Seaboard Foods LLC (“Defendants”). The complaint alleges, among other things, that beginning in January 2014, the Defendants conspired in violation of anti-trust laws to fix and depress the compensation paid to the Class by, among other things, participating in third-party compensation surveys and exchanging wage-related information through a third-party benchmarking service. The relief sought includes treble damages, injunctive relief, pre- and post-judgment interest, costs and attorneys’ fees. Seaboard believes that it has meritorious defenses to the claims and intends to vigorously defend them. It is impossible at this stage either to determine the probability of a favorable or unfavorable outcome resulting from the suit, or to reasonably estimate the amount of potential loss or range of potential loss, if any, resulting from the suit. 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 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 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 Kansas 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 consolidated financial statements of Seaboard. Costs for litigating claims are expensed as incurred. Guarantees Certain of Seaboard’s non-consolidated affiliates have debt supporting their underlying operations. From time to time, Seaboard will provide guarantees of such debt in order to further Seaboard’s business objectives. As of December 31, 2022, guarantees outstanding were not material. Seaboard has not accrued a liability for any of the guarantees as management considers the likelihood of loss to be remote. Commitments As of December 31, 2022, Seaboard had various non-cancelable commitments under contractual agreements: Years ended December 31, (Millions of dollars) 2023 2024 2025 2026 2027 Thereafter Totals Hog procurement contracts (a) $ 86 $ 57 $ 57 $ 42 $ — $ — $ 242 Grain and feedstock commitments (b) 581 152 4 3 — — 740 Grain purchase contracts for resale (c) 842 1 — — — — 843 Fuel supply contracts (d) 113 87 98 98 98 369 863 Capital expenditures (e) 127 152 98 — — — 377 Other commitments 130 1 1 1 1 9 143 Total unrecognized non-cancelable commitments $ 1,879 $ 450 $ 258 $ 144 $ 99 $ 378 $ 3,208 (a) The Pork segment has contracted with third parties for the purchase of hogs to support its operations. The amounts are based on projected market prices as of December 31, 2022. (b) The Pork segment enters into grain purchase and feedstock contracts to support its operations. For variable costs, the amounts are based on projected commodity prices as of December 31, 2022. (c) The CT&M segment enters into grain purchase contracts, primarily to support firm sales commitments. The amounts are fixed or based on projected commodity prices as of December 31, 2022. (d) The Power segment has a natural gas supply contract for a significant portion of the fuel required for EDM III. Also, the Marine segment has a fuel supply agreement to purchase natural gas for the initial three vessels under construction. The variable price components are based on market prices as of December 31, 2022. (e) The capital expenditures are primarily for the Marine segment’s construction of six vessels with expected delivery of three in 2024 and three in 2025 and the Pork segment’s biogas recovery projects and other investments that are expected to be completed in 2023. The amounts are based on milestones per respective contracts. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2022 | |
Employee Benefits | |
Employee Benefits | Note 9 − Employee Benefits Seaboard has qualified defined benefit pension plans for its domestic salaried and clerical employees that were hired before January 1, 2014. Benefits are generally based upon the number of years of service and a percentage of final average pay. Seaboard did not make any contributions in 2022, 2021 and 2020 and currently does not plan on making any contributions in 2023 to qualified plans. Seaboard also sponsors non-qualified, unfunded supplemental executive plans. Management has no plans to provide funding for these supplemental executive plans in advance of when the benefits are paid. Pursuant to Seaboard’s investment policies for qualified pension plans, assets are invested to achieve a diversified target allocation of approximately 80% in equities and 20% in fixed-income securities. The investment strategy is periodically reviewed by management for adherence to policy and performance. The following tables show the qualified plans’ assets measured at estimated fair value as of December 31, 2022 and 2021, respectively, and the level within the fair value hierarchy used to measure each category of assets: December 31, (Millions of dollars) 2022 Level 1 Level 2 Level 3 Assets: Domestic equity securities $ 84 $ 84 $ — $ — Foreign equity securities 60 60 — — Domestic fixed income mutual funds 26 26 — — Foreign fixed income mutual funds 11 11 — — Money market funds 1 1 — — Total assets $ 182 $ 182 $ — $ — December 31, (Millions of dollars) 2021 Level 1 Level 2 Level 3 Assets: Domestic equity securities $ 113 $ 113 $ — $ — Foreign equity securities 71 71 — — Domestic fixed income mutual funds 29 29 — — Foreign fixed income mutual funds 12 12 — — Money market funds 2 2 — — Total assets $ 227 $ 227 $ — $ — Assumptions used in determining pension information for the qualified and nonqualified plans were: Years ended December 31, 2022 2021 2020 Weighted average assumptions: Discount rate used to determine obligations 5.30 - 5.40 % 1.20 - 2.90 % 0.70 - 2.60 % Discount rate used to determine net periodic benefit cost 1.20 - 2.90 % 0.70 - 2.60 % 2.15 - 3.50 % Expected return on plan assets 6.25 % 6.25 % 6.25 % Long-term rate of increase in compensation levels 4.00 % 4.00 % 4.00 % Management selected the discount rates based on a model-based result where the timing and amount of cash flows approximates the estimated payouts. The expected return on the qualified plans’ assets assumption is based on the weighted average of asset class expected returns that are consistent with the qualified plans’ asset allocation and related long-term projected returns. The aggregate changes in the benefit obligation and fair value of assets for the qualified and nonqualified plans and the funded status were as follows: December 31, 2022 2021 (Millions of dollars) Accumulated benefits exceed assets Accumulated benefits exceed assets Reconciliation of benefit obligation: Benefit obligation at beginning of year $ 362 $ 379 Service cost 9 10 Interest cost 10 9 Actuarial gains (97) (10) Plan settlements — (19) Benefits paid (8) (7) Benefit obligation at end of year $ 276 $ 362 Reconciliation of fair value of plan assets: Fair value of plan assets at beginning of year $ 227 $ 206 Actual return on plan assets (38) 27 Employer contributions 1 20 Plan settlements — (19) Benefits paid (8) (7) Fair value of plan assets at end of year $ 182 $ 227 Funded status $ (94) $ (135) The benefit obligation decreased primarily due to higher discount rates. The accumulated benefit obligation for the qualified and nonqualified plans was $247 million and $319 million as of December 31, 2022 and 2021, respectively. Expected future benefit payments for the qualified and nonqualified plans during each of the next five years and the next five years thereafter were as follows: $44 million, $17 million, $11 million, $15 million, $14 million and $78 million, respectively. The net periodic benefit cost of these plans was as follows: Years ended December 31, (Millions of dollars) 2022 2021 2020 Components of net periodic benefit cost: Service cost $ 9 $ 10 $ 9 Interest cost 10 9 11 Expected return on plan assets (14) (12) (11) Amortization 6 9 7 Settlement loss recognized — 6 11 Net periodic benefit cost $ 11 $ 22 $ 27 The amounts not reflected in net periodic benefit cost and included in accumulated other comprehensive loss before taxes as of December 31, 2022 and 2021 were $21 million and $71 million, respectively. Such amounts primarily represent the cumulative unrecognized net actuarial gains and losses that are generally amortized over the average remaining working lifetime of the active participants for all of these plans. Seaboard has defined contribution retirement programs for various groups of employees. Contribution expense for these programs was $9 million, $4 million and $4 million for the years ended December 31, 2022, 2021 and 2020, respectively. The increase in costs in 2022 was primarily due to match changes for a production plan and an increase in the rate of matching contributions for another plan. Seaboard has deferred compensation plans that allow certain employees to reduce their compensation in exchange for values in various investments. One plan requires certain individuals to defer compensation over a specific threshold and another plan, which no longer allows contributions, has options that are exercisable. In conjunction with these plans, Seaboard purchases investments that are classified as trading securities and included in other current assets, and recognizes the amount payable to employees in other current liabilities on the consolidated balance sheets. Investments for Seaboard’s deferred compensation plans were $26 million and $29 million as of December 31, 2022 and 2021, respectively. The amount payable to employees was $23 million and $26 million as of December 31, 2022 and 2021, respectively. Deferred compensation plan costs recognized in selling, general and administrative expenses are offset by the effect of the marked-to-market adjustments on investments recorded in other investment income (loss). |
Derivatives and Fair Value of F
Derivatives and Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivatives and Fair Value of Financial Instruments | |
Derivatives and Fair Value of Financial Instruments | Note 10 − Derivatives and Fair Value of Financial Instruments Seaboard’s assets and liabilities recognized at fair value on a recurring basis have been categorized based on a fair value hierarchy determined as follows: Level 1 — Observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 — Inputs other than quoted prices in active markets that are observable either directly or indirectly, including quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data. Level 3 — Unobservable inputs that are supported by little or no market data and require the reporting entity to develop its assumptions. December 31, (Millions of dollars) 2022 Level 1 Level 2 Level 3 Assets: Trading securities – short-term investments: Domestic equity securities $ 433 $ 433 $ — $ — Domestic debt securities 399 162 237 — Foreign equity securities 169 169 — — Foreign debt securities 66 — 66 — Money market funds held in trading accounts 12 12 — — Other trading securities 7 — 7 — Trading securities – other current assets 26 25 1 — Long-term investment - BDC 63 — 63 — Derivatives 26 26 — — Total assets $ 1,201 $ 827 $ 374 $ — Liabilities: Contingent consideration $ 19 $ — $ — $ 19 Derivatives 12 2 10 — Total liabilities $ 31 $ 2 $ 10 $ 19 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. 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. The trading securities classified as other current assets above are assets held for Seaboard’s deferred compensation plans. 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 adopted recently issued GAAP that clarifies these contractual restrictions should not be considered when estimating fair value. As a result, the BDC investment’s liquidity discount of $1 million was removed and prospectively, the instrument was reclassified 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 consolidated balance sheets, it would have been classified as level 2 in the fair value hierarchy. See Note 7 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 Derivatives Seaboard’s operations are exposed to market risks from changes in commodity prices, foreign currency exchange rates, interest rates and equity prices. Seaboard uses derivatives to manage commodity and foreign currency fluctuations. From time to time, Seaboard enters into interest rate swap agreements to manage the interest rate risk of certain variable rate long-term debt and enters into equity futures contracts to manage the equity price risk of 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. As a result, fluctuations in prices and rates could have a material impact on earnings in any given reporting period. Credit risks associated with derivative contracts are not significant as Seaboard minimizes counterparty exposure by dealing with credit-worthy counterparties and uses margin accounts for some accounts. As of December 31, 2022, the maximum amount of credit risk, had the counterparties failed to perform according to the terms of the contract, was less than $1 million. Commodity Instruments Seaboard uses various derivative futures and options to manage its risk to price fluctuations for raw materials and other inventories, finished product sales and firm sales commitments. Commodity derivatives are recorded at fair value, with any changes in fair value recognized as a component of cost of sales in the consolidated statements of comprehensive income. Seaboard had the following aggregated outstanding notional amounts: December 31, (Millions) Metric 2022 2021 Commodities: Grain Bushels 8 1 Hogs Pounds 16 — Soybean oil Pounds 26 20 Heating oil Gallons — 15 Foreign Currency Exchange Agreements Seaboard enters into foreign currency exchange agreements to manage the foreign currency exchange rate risk of certain transactions denominated in foreign currencies. Foreign currency exchange agreements that primarily relate to an underlying commodity transaction are recorded at fair value with changes in value recognized as a component of cost of sales. Other foreign currency exchange agreements are recognized as a component of foreign currency gains (losses), net. As of December 31, 2022 and 2021, Seaboard had foreign currency exchange agreements with notional amounts of $190 million and $95 million, respectively, primarily related to the South African rand and euro. The following table provides the amount of gain (loss) recorded for each type of derivative and where it was recognized in the consolidated statements of comprehensive income: (Millions of dollars) 2022 2021 Commodities Cost of sales $ (45) $ (20) Foreign currencies Cost of sales (17) (2) Foreign currencies Foreign currency gains (losses), net 6 4 Interest rate swaps Interest expense — 5 The following table provides the fair value of each type of derivative held and where each derivative is included in the consolidated balance sheets: Asset Derivatives Liability Derivatives December 31, December 31, December 31, December 31, (Millions of dollars) 2022 2021 2022 2021 Commodities Other current assets $ 26 $ 6 Other current liabilities $ 2 $ 5 Foreign currencies Other current assets — 5 Other current liabilities 10 5 Seaboard’s commodity derivative assets and liabilities are presented in the consolidated balance sheets on a net basis, including netting the derivatives with the related margin accounts. As of December 31, 2022 and 2021, the commodity derivatives had a margin account balance of $3 million and $28 million, respectively, resulting in a net other current asset in the consolidated balance sheets of $27 million and $29 million, respectively. |
Stockholders' Equity and Accumu
Stockholders' Equity and Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity and Accumulated Other Comprehensive Loss | |
Stockholders' Equity and Accumulated Other Comprehensive Loss | Note 11 − Stockholders’ Equity and Accumulated Other Comprehensive Loss Seaboard’s share repurchase program expired on October 31, 2020. Under this share repurchase program, Seaboard was authorized to repurchase its common stock from time to time. Seaboard repurchased 4,069 shares of common stock during 2020 at a total price of $13 million. Shares repurchased were retired and became authorized and unissued shares. The components of accumulated other comprehensive loss (“AOCL”), net of related taxes, were as follows: Cumulative Foreign Cumulative Currency Unrecognized Translation Pension (Millions of dollars) Adjustment Cost Total Balance December 31, 2019 $ (369) $ (71) $ (440) Other comprehensive loss before reclassifications (7) (38) (45) Amounts reclassified from AOCL to net earnings — 14 (a) 14 Other comprehensive loss, net of tax (7) (24) (31) Balance December 31, 2020 $ (376) $ (95) $ (471) Other comprehensive income before reclassifications 8 18 26 Amounts reclassified from AOCL to net earnings — 13 (a) 13 Other comprehensive income, net of tax 8 31 39 Balance December 31, 2021 $ (368) $ (64) $ (432) Other comprehensive income (loss) before reclassifications (42) 38 (4) Amounts reclassified from AOCL to net earnings 9 (b) 5 (a) 14 Other comprehensive income (loss), net of tax (33) 43 10 Balance December 31, 2022 $ (401) $ (21) $ (422) (a) (b) The cumulative foreign currency translation adjustment primarily represents the effect of the Argentine peso currency exchange fluctuation on the net assets of the Sugar and Alcohol segment. The Sugar and Alcohol segment’s functional currency has been the U.S. dollar due to highly inflationary accounting since 2018. The adjustments for the years presented are related to non-U.S. dollar functional currencies of consolidated subsidiaries and non-consolidated affiliates in the CT&M segment. The cumulative unrecognized pension cost represents the unamortized net actuarial loss. Income taxes for the cumulative unrecognized pension cost component was recorded using a 25% effective tax rate, except for unrecognized pension cost of $5 million, $24 million and $34 million in 2022, 2021 and 2020, respectively, related to employees at certain subsidiaries for which no tax benefit was recorded. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes | |
Income Taxes | Note 12 − Income Taxes Earnings before income taxes were as follows: Years ended December 31, (Millions of dollars) 2022 2021 2020 United States $ (205) $ 337 $ 138 Foreign 782 298 148 Total earnings before income taxes excluding noncontrolling interests 577 635 286 Net earnings attributable to noncontrolling interests 2 1 — Total earnings before income taxes $ 579 $ 636 $ 286 The components of total income taxes were as follows: Years ended December 31, (Millions of dollars) 2022 2021 2020 Current: Federal $ 54 $ 35 $ (50) Foreign 42 33 35 State and local 12 10 2 Deferred: Federal (94) 3 26 Foreign 5 (7) (3) State and local (22) (9) (7) Income tax expense (benefit) (3) 65 3 Unrealized changes in other comprehensive income (loss) 8 8 (3) Total income taxes $ 5 $ 73 $ — Income taxes for the years ended December 31, 2022, 2021 and 2020 differed from the amounts computed by applying the statutory U.S. federal income tax rate of 21% to earnings before income taxes excluding noncontrolling interests for the following reasons: Years ended December 31, (Millions of dollars) 2022 2021 2020 Computed “expected” tax expense excluding noncontrolling interests $ 121 $ 133 $ 60 Adjustments to tax expense attributable to: Foreign tax differences (60) (35) 10 Tax-exempt income (17) (15) (17) Foreign entity repatriation 10 — — Federal tax credits (57) (39) (34) Unrecognized tax benefits 7 14 — Valuation allowance (7) 6 (14) Other — 1 (2) Total income tax expense (benefit) $ (3) $ 65 $ 3 Certain of Seaboard’s foreign operations are subject to no income tax or a tax rate that is lower than the U.S. corporate tax rate. Fluctuation of earnings or losses incurred from certain foreign operations conducting business in these jurisdictions impact the mix of taxable earnings. Tax-exempt income is primarily related to federal blender’s credits on the biodiesel that the Pork segment blends. As a result of these credits, Seaboard recognized non-taxable revenue of $79 million, $69 million and $79 million in net sales for the years ended December 31, 2022, 2021 and 2020, respectively. The receivable from the U.S. government was $53 million and $20 million as of December 31, 2022 and 2021, respectively, included in other receivables. The federal blender’s credits are available through 2024. Seaboard has certain investments in various entities that are expected to enable Seaboard to obtain certain federal investment tax credits. During 2022, Seaboard invested $52 million in a solar renewable energy project in Guam and received $46 million of federal investment tax credits. 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). Also, Seaboard invested $11 million and $17 million during 2021 and 2020, respectively, in limited liability companies that operated refined coal processing plants that generated federal income tax credits based on production levels. These alternative long-term investments, accounted for using the equity method of accounting, generated in aggregate $46 million, $24 million and $22 million of investment tax credits for 2022, 2021 and 2020, respectively. As of December 31, 2022 and 2021, Seaboard had income taxes receivable of $54 million and $46 million, respectively, primarily related to domestic tax jurisdictions, and had income taxes payable of $18 million and $13 million, respectively, primarily related to foreign tax jurisdictions. Components of the net deferred income tax liability were as follows: December 31, (Millions of dollars) 2022 2021 Deferred income tax liabilities: Depreciation $ 106 $ 121 Domestic partnerships 59 62 Unrealized gain on investments — 13 Inventory 14 7 Foreign basis difference 13 — Other 2 4 Gross deferred income tax liabilities $ 194 $ 207 Deferred income tax assets: Reserves/accruals $ 68 $ 66 Sec. 174 capitalization 75 — Unrealized loss on investments 40 — Deferred earnings of foreign subsidiaries 3 — Net operating and capital loss carry-forwards 28 67 Tax credit carry-forwards 22 32 Other 8 5 Gross deferred income tax assets before valuation allowance 244 170 Less: Valuation allowance 33 60 Net deferred income tax liability (asset) $ (17) $ 97 The activity within the valuation allowance account was as follows: Balance at Charge (credit) Balance at (Millions of dollars) beginning of year to expense end of year Allowance for Deferred Tax Assets: Year Ended December 31, 2022 $ 60 (27) $ 33 Year Ended December 31, 2021 $ 55 5 $ 60 Year Ended December 31, 2020 $ 68 (13) $ 55 Management believes Seaboard’s future taxable income will be sufficient for full realization of the net deferred tax assets. The valuation allowance relates to the tax benefits from state net operating losses, foreign net operating losses and tax credits. Management does not believe these benefits are more likely than not to be realized due to limitations imposed on the utilization of these losses and credits. As of December 31, 2022, Seaboard had state net operating loss carry-forwards of approximately $181 million and foreign net operating loss carry-forwards of approximately $57 million, a portion of which expire in varying amounts between 2023 and 2042, while others have indefinite expiration periods. As of December 31, 2022, Seaboard had state tax credit carry-forwards of approximately $27 million, all of which carry-forward indefinitely. Historically, Seaboard has considered substantially all foreign profits as being permanently invested in its foreign operations, including all cash and short-term investments held by foreign subsidiaries. During the fourth quarter of 2022, Seaboard reversed its indefinite reinvestment assertion in connection with certain previously-taxed undistributed earnings of its Seaboard Marine subsidiary due to the tax effectiveness of repatriating. As a result, Seaboard recorded a deferred tax liability of $13 million for federal and state incremental tax costs associated with the future potential repatriation of Seaboard Marine’s previously-taxed foreign undistributed earnings. For all other foreign subsidiaries, Seaboard intends to continue permanently reinvesting their funds outside the U.S. as they continue to demonstrate no need to repatriate them to fund Seaboard’s U.S. operations for the foreseeable future. Seaboard has not recorded deferred taxes for state or foreign withholding taxes that would result upon repatriation of these funds to the U.S. Determination of the tax that might be paid on unremitted earnings if eventually remitted is not practical due to the complexity of the multi-jurisdictional tax environment in which Seaboard operates. Seaboard’s tax returns are regularly audited by federal, state and foreign tax authorities, which may result in material adjustments. Seaboard’s 2018 and 2019 U.S. income tax returns are currently under IRS examination. U.S. federal tax years prior to 2017 are no longer subject to IRS tax assessment as certain provisions under the Tax Cuts and Jobs Act have a statute of six years. In the U.S., typically the three most recent tax years are subject to IRS audits, unless an agreement is made to extend the statute of limitations for an audit in progress or the statute is specifically extended by law for certain specialized items. In Seaboard’s major non-U.S. jurisdictions, including Argentina, the Dominican Republic, Ivory Coast and Senegal, tax years are typically subject to examination for three As of December 31, 2022 and 2021, Seaboard had $51 million and $41 million, respectively, in total unrecognized tax benefits, all of which if recognized would affect the effective tax rate. Seaboard does not have any material uncertain tax positions in which it is reasonably possible that the total amounts of the unrecognized tax benefits will significantly increase or decrease within 12 months of the reporting date. The following table is a reconciliation of the beginning and ending amount of unrecognized tax benefits: (Millions of dollars) 2022 2021 Beginning balance at January 1 $ 41 $ 30 Additions for uncertain tax positions of prior years 1 7 Decreases for uncertain tax positions of prior years (4) (1) Additions for uncertain tax positions of current year 23 6 Lapse of statute of limitations (10) (1) Ending balance as of December 31 $ 51 $ 41 Seaboard accrues interest and penalties related to unrecognized tax benefits in income tax expense and had approximately $9 million and $10 million accrued as of December 31, 2022 and 2021, respectively. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Information | |
Segment Information | Note 13 − Segment Information Seaboard has six reportable segments: Pork, CT&M, Marine, Sugar and Alcohol, Power and Turkey, each offering a specific product or service. Seaboard’s reporting segments are based on information used by Seaboard’s Chief Executive Officer in his capacity as chief operating decision maker to determine allocation of resources and assess performance. Each of the six segments is separately managed, and each was started or acquired independent of the other segments. The Pork segment primarily produces hogs to process and sells pork products to further processors, food service operators, distributors and grocery stores throughout the U.S. and to foreign markets. In 2022, this 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 final 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. In 2020, this segment purchased a hog production company for $27 million, which primarily included hog farms and related assets. This segment also produces biodiesel and renewable diesel from pork fat and other animal fats and vegetable oils for sale, along with the related fuel credits, to third parties. The Pork segment’s renewable diesel production facility began operations during the third quarter of 2022. The CT&M segment is an integrated agricultural commodity trading, processing and logistics operation that internationally markets wheat, corn, soybean meal and other agricultural commodities in bulk to third-party customers and to non-consolidated affiliates. This segment operates flour, maize and feed mills and bakery operations in numerous foreign countries. In 2022, this segment sold its Brazilian flour milling operations primarily for cash proceeds of $6 million, net of cash sold . The Marine segment provides cargo shipping services in the U.S., the Caribbean and Central and South America. The Sugar and Alcohol segment produces and processes sugar and alcohol in Argentina. The Power segment is an independent power producer in the Dominican Republic that owns two power-generating barges, with EDM III placed in service during the second quarter of 2022. The Turkey segment, accounted for using the equity method, produces and processes turkey products. Total assets for the Turkey segment represent Seaboard’s investment in Butterball. See Note 6 for more information on Butterball. The All Other segment represents primarily a jalapeño pepper processing operation. The following tables present Seaboard’s sales disaggregated by revenue source and segment: Net Sales: Year Ended December 31, 2022 (Millions of dollars) Pork CT&M Marine Sugar and Alcohol Power All Other Consolidated Totals Major Products/Services Lines: Products $ 1,954 $ 6,275 $ — $ 123 $ — $ 16 $ 8,368 Transportation 11 — 2,043 — — 2 2,056 Energy 611 — — 6 158 — 775 Other 29 15 — — — — 44 Segment/consolidated totals $ 2,605 $ 6,290 $ 2,043 $ 129 $ 158 $ 18 $ 11,243 Net Sales: Year Ended December 31, 2021 (Millions of dollars) Pork CT&M Marine Sugar and Alcohol Power All Other Consolidated Totals Major Products/Services Lines: Products $ 2,091 $ 5,139 $ — $ 113 $ — $ 14 $ 7,357 Transportation 8 — 1,396 — — 1 1,405 Energy 357 — — 10 60 — 427 Other 25 15 — — — — 40 Segment/consolidated totals $ 2,481 $ 5,154 $ 1,396 $ 123 $ 60 $ 15 $ 9,229 Net Sales: Year Ended December 31, 2020 (Millions of dollars) Pork CT&M Marine Sugar and Alcohol Power All Other Consolidated Totals Major Products/Services Lines: Products $ 1,682 $ 3,981 $ — $ 95 $ — $ 16 $ 5,774 Transportation 8 — 1,005 — — — 1,013 Energy 219 — — 11 64 — 294 Other 32 13 — — — — 45 Segment/consolidated totals $ 1,941 $ 3,994 $ 1,005 $ 106 $ 64 $ 16 $ 7,126 The following tables present Seaboard’s operating income (loss) by segment. Operating income for segment reporting is prepared on the same basis as that used for consolidated operating income. Operating income, along with income (loss) from affiliates for the Pork, CT&M and Turkey segments, is used as the measure of evaluating segment performance because management does not consider interest, other investment income (loss) and income tax benefit (expense) on a segment basis. 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. 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): Years ended December 31, (Millions of dollars) 2022 2021 2020 Pork $ (96) $ 227 $ 131 CT&M 151 61 118 Marine 591 197 21 Sugar and Alcohol 11 2 2 Power 14 (9) 3 All other 1 1 1 Segment totals 672 479 276 Corporate (15) (21) (31) Consolidated totals $ 657 $ 458 $ 245 The following tables present Seaboard’s total assets and capital expenditures 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. Total Assets: December 31, (Millions of dollars) 2022 2021 Pork $ 2,698 $ 2,265 CT&M 1,915 2,054 Marine 882 749 Sugar and Alcohol 165 155 Power 342 359 Turkey 350 245 All other 6 7 Segment totals 6,358 5,834 Corporate 1,544 1,669 Consolidated totals $ 7,902 $ 7,503 Capital Expenditures: Years ended December 31, (Millions of dollars) 2022 2021 2020 Pork $ 315 $ 343 $ 207 CT&M 14 17 8 Marine 136 44 10 Sugar and Alcohol 9 8 5 Power — 43 27 All other — 1 2 Segment totals 474 456 259 Corporate — 4 — Consolidated totals $ 474 $ 460 $ 259 Geographic Information Seaboard had sales in Colombia totaling $1,578 million, $1,144 million and $812 million for the years ended December 31, 2022, 2021 and 2020, respectively, representing approximately 14%, 12% and 11% of total sales for each respective year. Seaboard had sales in South Africa totaling $992 million, $917 million and $743 million for the years ended December 31, 2022, 2021 and 2020, respectively, representing approximately 9% of total sales for 2022 and 10% for years 2021 and 2020. No other individual foreign country accounted for 10% or more of sales to external customers. The following table provides a geographic summary of net sales based on the location of product delivery or service: Years ended December 31, (Millions of dollars) 2022 2021 2020 Caribbean, Central and South America $ 5,054 $ 3,566 $ 2,744 Africa 3,107 2,685 2,099 United States (a) 2,181 2,031 1,536 Pacific Basin and Far East 490 545 435 Canada/Mexico 338 309 202 Europe 71 86 101 All other 2 7 9 Total sales $ 11,243 $ 9,229 $ 7,126 (a) For Marine segment services on product delivery to the U.S., geographic location is based on origination port. The following table provides a geographic summary of Seaboard’s property, plant and equipment according to their physical location and primary port for the vessels: December 31, (Millions of dollars) 2022 2021 United States $ 1,682 $ 1,331 Dominican Republic 281 297 Argentina 59 59 China 35 — Ivory Coast 33 39 Senegal 32 40 Zambia 31 30 All other 93 96 Total property, plant and equipment, net $ 2,246 $ 1,892 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Seaboard Corporation and its domestic and foreign subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Financial information from certain foreign subsidiaries is reported on a one |
Investments in Affiliates | Investments in Affiliates Investments in non-consolidated affiliates, where Seaboard has significant influence but does not have a controlling interest, are accounted for by the equity method. Under the equity method of accounting, the initial investment is recorded at cost and the investment is subsequently adjusted for its proportionate share of earnings or losses and dividends, including consideration of basis differences resulting from the difference between the initial carrying amount of the investment and the underlying equity in net assets. Seaboard reviews its investments in affiliates for impairment whenever events or changes in business circumstances indicate that the carrying amount of the investments may not be fully recoverable. For the Commodity Trading and Milling (“CT&M”) segment, investments in affiliates are primarily in foreign countries, which are less developed than the U.S., and therefore, expose Seaboard to greater financial risks. At certain times when there are ongoing losses, local economies are depressed, commodity-based markets are less stable or foreign governments cause challenging business conditions, the fair value of the equity method investments is evaluated by management. As the fair value of these investments is not readily determinable, management uses other methods to determine fair value such as estimated future cash flows, including assumptions on growth rates and consideration of other local business conditions as applicable. |
Use of Estimates | Use of Estimates These financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Foreign Currency Transactions and Translation | Foreign Currency Transactions and Translation Seaboard has operations in several foreign countries, and the currencies of the countries fluctuate in relation to the U.S. dollar, resulting in foreign currency gains and losses. Certain CT&M segment subsidiaries located in Guyana, Ivory Coast, Senegal, South Africa and Zambia use local currency as their functional currency. Assets and liabilities of these subsidiaries are translated to U.S. dollars at year-end exchange rates, and income and expenses are translated at average rates. Translation gains and losses are recorded as components of other comprehensive income (loss). Also, certain non-consolidated affiliates, primarily in the CT&M segment use local currency as their functional currency. Seaboard applies highly inflationary accounting for countries whose cumulative inflation rate for a three-year period meets or exceeds 100%. Under highly inflationary accounting, the financial statements of a subsidiary are remeasured into Seaboard’s reporting currency (U.S. dollars) and exchange gains and losses from the remeasurement of monetary assets and liabilities are reflected in net income, rather than accumulated other comprehensive income (loss) on the balance sheet, until the economy is no longer considered highly inflationary. Certain non-monetary assets and liabilities are recorded at the applicable historical exchange rates. Seaboard applies highly inflationary accounting for the Sugar and Alcohol segment, which operates in Argentina. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents include all demand deposits, overnight investments and other highly liquid investments with original maturities of three months or less. |
Supplemental Cash Flow Information | Supplemental Cash Flow Information The amounts paid for interest and income taxes are as follows: Years ended December 31, (Millions of dollars) 2022 2021 2020 Interest, net of interest capitalized $ 35 $ 10 $ 16 Income taxes, net of refunds 101 104 55 Non-cash activities related to capital expenditures of $15 million, $5 million and $7 million that were included in accounts payable as of December 31, 2022, 2021 and 2020, respectively. |
Short-Term Investments | Short-term Investments Short-term investments are categorized as trading securities and carried at fair value. Changes in the fair value of short-term investments are recorded as unrealized gains and losses included in other investment income (loss), net in the consolidated statements of comprehensive income, with any purchases and sales recorded on a settlement date basis. |
Accounts Receivable | Accounts Receivable The following table presents the components of Seaboard’s receivables as of December 31, 2022 and 2021: December 31, (Millions of dollars) 2022 2021 Receivables: Trade $ 588 $ 553 Due from affiliates 195 128 Other 171 112 Total receivables 954 793 Allowance for credit losses (31) (31) Net receivables $ 923 $ 762 Accounts receivable are recorded at the invoiced amount and generally do not bear interest. The allowance for credit losses is Seaboard’s best estimate of the amount of probable credit losses using the current expected credit loss model. T his model estimates the lifetime of expected credit loss based on historical experience, current conditions and reasonable supportable forecasts. The activity within the allowance for credit losses was as follows: Balance at Transition Balance at (Millions of dollars) beginning of year Adjustment (a) Provision (b) Net deductions (c) end of year Allowance for Credit Losses: Year Ended December 31, 2022 $ 31 — 7 (7) $ 31 Year Ended December 31, 2021 $ 28 — 5 (2) $ 31 Year Ended December 31, 2020 $ 28 3 — (3) $ 28 (a) (b) (c) |
Notes Receivable | Notes Receivable Notes receivable are included in other receivables, if current, and other non-current assets, if long-term. Seaboard’s non-current notes receivable balances, net of reserves, were $40 million and $30 million as of December 31, 2022 and 2021, respectively. Seaboard monitors the credit quality of notes receivable, using the current expected credit loss model. The activity within the allowance for non-current notes receivable was as follows: Balance at Balance at (Millions of dollars) beginning of year Provision Net deductions end of year Allowance for Notes Receivable: Year Ended December 31, 2022 $ 18 — (1) $ 17 Year Ended December 31, 2021 $ 17 1 — $ 18 Year Ended December 31, 2020 $ 17 — — $ 17 |
Inventories | Inventories Grain, flour and feed inventories at the CT&M segment’s foreign milling operations are valued at the lower of weighted average cost and net realizable value (“NRV”). All other inventories are valued at the lower of first-in, first-out (“FIFO”) cost and NRV. In determining NRV, management makes assumptions regarding estimated sales prices, estimated costs to complete and estimated disposal costs. Changes in future market prices or facts and circumstances could result in a material write down in the value of inventory or decreased future margins on the sale of inventory. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are carried at cost and, except for land, depreciated using the straight-line method over an estimated useful life, ranging from 3 to 30 years. Property, plant and equipment under finance leases are stated at the present value of minimum lease payments and subsequently amortized using the straight-line method over the earlier of the end of its useful life or the end of the lease term. Routine and planned major maintenance, repairs and minor renewals are expensed as incurred, while major renewals and improvements are capitalized. Property, plant and equipment and other long-lived assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of the asset to future undiscounted net cash flows expected to be generated by the asset. Impairment is recognized if the carrying amount of the assets exceeds the estimated fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. |
Right of Use Assets and Lease Liabilities | Right of Use Assets and Lease Liabilities Right of Use (“ROU”) assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The present value of lease payments is determined primarily using the incremental borrowing rate based on the information available at the lease commencement date. For leases that do not have readily determinable implicit discount rates, Seaboard adjusts its incremental borrowing rate by the local risk-free interest rate on its Term Loan due 2028 with a credit risk premium corresponding to Seaboard’s unreported credit rating. Then Seaboard determines discount rates based on term, country and currency where the leased asset is located. Seaboard accounts for lease and non-lease maintenance components as a single lease component for all classes of underlying assets. Seaboard does not recognize ROU assets and lease liabilities for short-term leases with terms greater than 1 month, but less than 12 months. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill is assessed annually for impairment by each reporting unit at the quarter-end closest to the anniversary date of the initial acquisition, or more frequently if events or changes in circumstances indicate that impairment is likely. Seaboard first assesses qualitative factors to determine whether it is more likely than not the fair value of any reporting unit is less than its carrying amount. If qualitative factors indicate more likely than not that an impairment is possible, Seaboard performs a quantitative impairment test using discounted cash flow analysis by comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. No The changes in the carrying amount of goodwill were as follows: Pork CT&M (Millions of dollars) Segment Segment Total Balance as of December 31, 2020 $ 18 $ 149 $ 167 Impairment — (4) (4) Balance as of December 31, 2021 18 145 163 Foreign currency translation — (13) (13) Acquisition 4 — 4 Balance as of December 31, 2022 $ 22 $ 132 $ 154 Separable intangible assets with finite lives are amortized over their estimated useful lives and evaluated for impairment similar to property, plant and equipment discussed above. The gross carrying amount and accumulated amortization for finite-lived intangible were as follows: December 31, 2022 December 31, 2021 Customer Trade Customer Trade (Millions of dollars) relationships names Total relationships names Total Gross carrying amount $ 51 $ 28 $ 79 $ 51 $ 28 $ 79 Accumulated amortization and currency translation (31) (17) (48) (22) (12) (34) Net carrying amount $ 20 $ 11 $ 31 $ 29 $ 16 $ 45 Amortization of intangible assets was $8 million, $9 million and $8 million for the years ended December 31, 2022, 2021 and 2020, respectively. Using the exchange rates in effect at year-end, estimated amortization of intangible assets as of December 31, 2022 is $8 million each for |
Accrued Self-Insurance | Accrued Self-Insurance Seaboard is self-insured for certain levels of workers’ compensation, health care coverage, property damage, vehicle, product recall and general liability. Liabilities associated with some of these risks is estimated based on actuarially-determined amounts and accrued in part by considering historical claims experience, demographic factors, severity factors and other actuarial assumptions. Changes in estimates to previously recorded reserves are reflected in current operating results. |
Asset Retirement Obligation | Asset Retirement Obligation Seaboard records a long-lived asset and a related liability for the asset retirement obligation costs associated with the closure of all hog lagoons. Based on detailed assessments and appraisals obtained to estimate the future asset retirement obligation costs, Seaboard recorded the present value of the projected costs in other non-current liabilities in the consolidated balance sheets. The retirement asset is depreciated over the economic life of the related asset. The following table shows the changes in the asset retirement obligation: Years ended December 31, (Millions of dollars) 2022 2021 Beginning balance $ 29 $ 27 Accretion expense 2 1 Liability for additional lagoons 1 1 Ending balance $ 32 $ 29 |
Pension Plans | Pension Plans Seaboard records annual income and expense amounts relating to its pension plans based on calculations which include various actuarial assumptions, including discount rates, mortality, assumed rates of return, compensation increases, and turnover rates. Seaboard reviews its actuarial assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is deemed appropriate to do so. The effect of modifications on the value of plan obligations and assets is recognized immediately within other comprehensive income (loss) and amortized into operating earnings over future periods. |
Revenue Recognition | Revenue Recognition Almost all of Seaboard’s contracts with its customers are less than one year. Seaboard recognizes revenue when control of the promised goods or services is transferred to its customers, in an amount that reflects the consideration it expects to receive in exchange for those goods or services. The majority of Seaboard’s revenue arrangements consist of a single performance obligation as the promise to transfer the individual product or service is not separately identifiable from other promises in the contracts, including shipping and handling and customary storage, and, therefore, not distinct. Revenue from goods and services transferred to customers at a single point in time account for approximately 85% of Seaboard’s net sales. Substantially all of the sales in Seaboard’s Marine segment are recognized ratably over the transit time for each voyage, as the performance obligation to its customers is satisfied. Seaboard’s transaction prices are mostly fixed, but occasionally include minimal variable consideration for early payment, volume and other similar discounts, which are highly probable based on the history with the respective customers. Taxes assessed by a governmental authority that are collected by Seaboard from a customer are excluded from sales. Seaboard recognizes a financing component only on obligations that extend longer than one year. Deferred revenue represents cash payments received in advance of Seaboard’s performance or revenue billed that is unearned. The CT&M segment requires certain customers to pay in advance or upon delivery to avoid collection risk. The Marine segment’s deferred revenue balance primarily relates to the unearned portion of billed revenue when a ship is on the water and has not arrived at the designated port. Deferred revenue balances are reduced when revenue is recognized. The majority of the deferred revenue balance as of year-end is recognized as revenue during the following quarter. |
Research and Development | Research and Development Seaboard conducts research and development activities to develop new products and to improve existing products and processes. Seaboard incurred research and development expenses of $210 million, $191 million and $134 million for the years ended December 31, 2022, 2021 and 2020, respectively. |
Income Taxes | Income Taxes Effects of changes in tax laws, including retroactive changes, are recognized in the financial statements in the period that the changes are enacted. Deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. Seaboard accounts for the global intangible low-taxed income (“GILTI”) provision and the base-erosion and anti-abuse tax (“BEAT”) provision taxes in the period incurred. 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. |
Earnings Per Common Share | Earnings Per Common Share Earnings per common share are based upon the weighted-average shares outstanding during the period. Basic and diluted earnings per share are the same for all periods presented. |
Accounting Standards Recently Adopted | Accounting Standards Recently Adopted On January 1, 2020, Seaboard adopted guidance requiring the use of a new current expected credit loss model to determine the allowance for credit losses for receivables, among other financial instruments. This model estimates the lifetime of expected credit loss and replaces the existing incurred loss model. As a result of this adoption, Seaboard recorded a cumulative-effect adjustment of $3 million on January 1, 2020 that decreased retained earnings and increased the allowance for credit losses. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies | |
Schedule of amounts paid for interest and income taxes | Years ended December 31, (Millions of dollars) 2022 2021 2020 Interest, net of interest capitalized $ 35 $ 10 $ 16 Income taxes, net of refunds 101 104 55 |
Schedule of components of receivables | December 31, (Millions of dollars) 2022 2021 Receivables: Trade $ 588 $ 553 Due from affiliates 195 128 Other 171 112 Total receivables 954 793 Allowance for credit losses (31) (31) Net receivables $ 923 $ 762 |
Schedule of activity within the allowance for credit losses | Balance at Transition Balance at (Millions of dollars) beginning of year Adjustment (a) Provision (b) Net deductions (c) end of year Allowance for Credit Losses: Year Ended December 31, 2022 $ 31 — 7 (7) $ 31 Year Ended December 31, 2021 $ 28 — 5 (2) $ 31 Year Ended December 31, 2020 $ 28 3 — (3) $ 28 (a) (b) (c) |
Schedule of activity within the allowance for long-term notes receivable | Balance at Balance at (Millions of dollars) beginning of year Provision Net deductions end of year Allowance for Notes Receivable: Year Ended December 31, 2022 $ 18 — (1) $ 17 Year Ended December 31, 2021 $ 17 1 — $ 18 Year Ended December 31, 2020 $ 17 — — $ 17 |
Schedule of changes in the carrying amount of goodwill | Pork CT&M (Millions of dollars) Segment Segment Total Balance as of December 31, 2020 $ 18 $ 149 $ 167 Impairment — (4) (4) Balance as of December 31, 2021 18 145 163 Foreign currency translation — (13) (13) Acquisition 4 — 4 Balance as of December 31, 2022 $ 22 $ 132 $ 154 |
Schedule of gross carrying amount and accumulated amortization for finite-lived intangibles | December 31, 2022 December 31, 2021 Customer Trade Customer Trade (Millions of dollars) relationships names Total relationships names Total Gross carrying amount $ 51 $ 28 $ 79 $ 51 $ 28 $ 79 Accumulated amortization and currency translation (31) (17) (48) (22) (12) (34) Net carrying amount $ 20 $ 11 $ 31 $ 29 $ 16 $ 45 |
Schedule of changes in the asset retirement obligation | Years ended December 31, (Millions of dollars) 2022 2021 Beginning balance $ 29 $ 27 Accretion expense 2 1 Liability for additional lagoons 1 1 Ending balance $ 32 $ 29 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments | |
Summary of the estimated fair value of short-term investments classified as trading securities | December 31, (Millions of dollars) 2022 2021 Domestic equity securities $ 433 $ 472 Domestic debt securities 399 542 Foreign equity securities 169 193 Foreign debt securities 66 133 Money market funds held in trading accounts 12 59 Other trading securities 7 17 Total trading short-term investments $ 1,086 $ 1,416 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventories | |
Summary of inventories | December 31, (Millions of dollars) 2022 2021 At lower of FIFO cost and NRV: Hogs and materials $ 538 $ 489 Pork products and materials 75 64 Grains, oilseeds and other commodities 475 634 Biofuels and related credits 221 147 Other 104 92 Total inventories at lower of FIFO cost and NRV 1,413 1,426 Grain, flour and feed at lower of weighted average cost and NRV 257 237 Total inventories $ 1,670 $ 1,663 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment | |
Summary of property, plant and equipment | Useful December 31, (Millions of dollars) Lives 2022 2021 Land and improvements 3 - 15 years $ 331 $ 285 Buildings and improvements 30 years 779 739 Machinery and equipment 3 - 20 years 2,027 1,445 Vessels and vehicles 3 - 18 years 373 214 Office furniture and fixtures 5 years 43 45 Contract growers 5 - 15 years 151 118 Construction in progress 286 613 Total property, plant and equipment 3,990 3,459 Accumulated depreciation and amortization (1,744) (1,567) Net property, plant and equipment $ 2,246 $ 1,892 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Summary of classification of finance leases in consolidated balance sheets | (Millions of dollars) 2022 2021 Finance lease right of use assets, net Property, plant and equipment, net $ 198 $ 128 Finance lease liabilities Other current liabilities 56 23 Non-current finance lease liabilities Other liabilities 143 104 |
Summary of components of lease cost | The components of lease cost were as follows for the years ended December 31: (Millions of dollars) 2022 2021 2020 Operating lease cost $ 184 $ 162 $ 145 Finance lease cost: Amortization of right of use assets 46 17 9 Interest on lease liabilities 6 5 4 Variable lease cost (a) 18 20 8 Short-term lease cost (b) 13 27 25 Sublease income (6) (8) (6) Total lease cost $ 261 $ 223 $ 185 (a) Includes throughput of cargo containers in excess of minimums and changes in indexed charter-hire rates. (b) Short-term term leases are primarily for cargo containers and vessels. |
Summary of weighted-average lease terms and discount rates | Operating Leases Finance Leases 2022 2021 2022 2021 Weighted-average remaining term (in years) 5 4 5 7 Weighted-average discount rate 6.13% 5.37% 3.44% 4.16% |
Summary of maturities of lease liabilities | Operating Finance (Millions of dollars) Leases Leases 2023 $ 175 $ 61 2024 101 55 2025 69 32 2026 62 18 2027 48 12 Thereafter 108 45 Total undiscounted lease payments 563 223 Less imputed interest (89) (24) Total lease liability $ 474 $ 199 |
Summary of supplemental cash and non-cash information related to leases | December 31, (Millions of dollars) 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 194 $ 166 $ 142 Operating cash flows from finance leases 6 5 4 Financing cash flows from finance leases 44 14 7 ROU assets obtained in exchange for new lease liabilities: Operating leases $ 118 $ 244 $ 62 Finance leases 116 54 50 |
Investments in Affiliates (Tabl
Investments in Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments in Affiliates | |
Schedule of non-consolidated affiliates | Investments in and Income (Loss) Advances to Affiliates from Affiliates December 31, Years ended December 31, (Millions of dollars) 2022 2021 2022 2021 2020 Pork $ 152 $ 142 $ 24 $ 3 $ (9) CT&M 210 224 21 18 (2) Marine 36 33 4 6 2 Sugar and Alcohol 2 4 — — 1 Power 3 3 — — — Turkey 350 245 103 (20) (10) Segment/Consolidated Totals $ 753 $ 651 $ 152 $ 7 $ (18) |
Schedule of related-party transactions with non-consolidated affiliates | December 31, (Millions of dollars) 2022 2021 2020 Product sales to related parties $ 1,463 $ 1,396 $ 1,125 Service revenue to related parties $ 20 $ 20 $ 21 Purchases from related parties included in Cost of Sales (a) $ 91 $ — $ — |
Pork | |
Investments in Affiliates | |
Schedule of non-consolidated affiliates | Pork Segment December 31, (Millions of dollars) 2022 2021 2020 Net sales $ 2,417 $ 2,010 $ 1,543 Net income (loss) $ 48 $ 5 $ (18) Total assets $ 615 $ 584 $ 586 Total liabilities $ 312 $ 302 $ 245 Total equity $ 303 $ 282 $ 341 |
Commodity Trading and Milling | |
Investments in Affiliates | |
Schedule of non-consolidated affiliates | CT&M Segment December 31, (Millions of dollars) 2022 2021 2020 Net sales $ 3,186 $ 2,766 $ 2,482 Net income (loss) $ 40 $ 47 $ (2) Total assets $ 1,848 $ 1,798 $ 1,745 Total liabilities $ 1,250 $ 1,199 $ 1,185 Total equity $ 598 $ 599 $ 560 |
Marine | |
Investments in Affiliates | |
Schedule of non-consolidated affiliates | Marine Segment December 31, (Millions of dollars) 2022 2021 2020 Net sales $ 82 $ 74 $ 66 Net income $ 21 $ 27 $ 8 Total assets $ 256 $ 245 $ 253 Total liabilities $ 61 $ 88 $ 98 Total equity $ 195 $ 157 $ 155 |
Sugar and Alcohol | |
Investments in Affiliates | |
Schedule of non-consolidated affiliates | Sugar and Alcohol Segment December 31, (Millions of dollars) 2022 2021 2020 Net sales $ 8 $ 6 $ 7 Net income $ — $ — $ 1 Total assets $ 6 $ 8 $ 14 Total liabilities $ 2 $ 1 $ 2 Total equity $ 4 $ 7 $ 12 |
Power | |
Investments in Affiliates | |
Schedule of non-consolidated affiliates | Power Segment December 31, (Millions of dollars) 2022 2021 2020 Net sales $ 1 $ 1 $ 1 Net income $ — $ 1 $ — Total assets $ 9 $ 12 $ 12 Total liabilities $ 3 $ 5 $ 6 Total equity $ 6 $ 7 $ 6 |
Turkey | |
Investments in Affiliates | |
Schedule of non-consolidated affiliates | Turkey Segment December 31, (Millions of dollars) 2022 2021 2020 Net sales $ 2,050 $ 1,792 $ 1,675 Operating income (loss) $ 202 $ (34) $ (6) Net income (loss) $ 196 $ (38) $ (20) Total assets $ 1,081 $ 991 $ 993 Total liabilities $ 406 $ 517 $ 481 Total equity $ 675 $ 474 $ 512 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt | |
Summary of long-term debt | December 31, (Millions of dollars) 2022 2021 Term Loan due 2028 $ 670 $ 677 Foreign subsidiary obligations 2 1 Other long-term debt 38 39 Total debt at face value 710 717 Current maturities and unamortized discount and costs (8) (9) Long-term debt, less current maturities and unamortized discount and costs $ 702 $ 708 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Loss Contingencies [Table] | |
Summary of non-cancelable commitments under contractual obligations | Years ended December 31, (Millions of dollars) 2023 2024 2025 2026 2027 Thereafter Totals Hog procurement contracts (a) $ 86 $ 57 $ 57 $ 42 $ — $ — $ 242 Grain and feedstock commitments (b) 581 152 4 3 — — 740 Grain purchase contracts for resale (c) 842 1 — — — — 843 Fuel supply contracts (d) 113 87 98 98 98 369 863 Capital expenditures (e) 127 152 98 — — — 377 Other commitments 130 1 1 1 1 9 143 Total unrecognized non-cancelable commitments $ 1,879 $ 450 $ 258 $ 144 $ 99 $ 378 $ 3,208 (a) The Pork segment has contracted with third parties for the purchase of hogs to support its operations. The amounts are based on projected market prices as of December 31, 2022. (b) The Pork segment enters into grain purchase and feedstock contracts to support its operations. For variable costs, the amounts are based on projected commodity prices as of December 31, 2022. (c) The CT&M segment enters into grain purchase contracts, primarily to support firm sales commitments. The amounts are fixed or based on projected commodity prices as of December 31, 2022. (d) The Power segment has a natural gas supply contract for a significant portion of the fuel required for EDM III. Also, the Marine segment has a fuel supply agreement to purchase natural gas for the initial three vessels under construction. The variable price components are based on market prices as of December 31, 2022. (e) The capital expenditures are primarily for the Marine segment’s construction of six vessels with expected delivery of three in 2024 and three in 2025 and the Pork segment’s biogas recovery projects and other investments that are expected to be completed in 2023. The amounts are based on milestones per respective contracts. |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Employee Benefits | |
Schedule of Plans' assets measured at estimated fair value | December 31, (Millions of dollars) 2022 Level 1 Level 2 Level 3 Assets: Domestic equity securities $ 84 $ 84 $ — $ — Foreign equity securities 60 60 — — Domestic fixed income mutual funds 26 26 — — Foreign fixed income mutual funds 11 11 — — Money market funds 1 1 — — Total assets $ 182 $ 182 $ — $ — December 31, (Millions of dollars) 2021 Level 1 Level 2 Level 3 Assets: Domestic equity securities $ 113 $ 113 $ — $ — Foreign equity securities 71 71 — — Domestic fixed income mutual funds 29 29 — — Foreign fixed income mutual funds 12 12 — — Money market funds 2 2 — — Total assets $ 227 $ 227 $ — $ — |
Schedule of assumptions used in determining pension information for qualified and nonqualified plans | Years ended December 31, 2022 2021 2020 Weighted average assumptions: Discount rate used to determine obligations 5.30 - 5.40 % 1.20 - 2.90 % 0.70 - 2.60 % Discount rate used to determine net periodic benefit cost 1.20 - 2.90 % 0.70 - 2.60 % 2.15 - 3.50 % Expected return on plan assets 6.25 % 6.25 % 6.25 % Long-term rate of increase in compensation levels 4.00 % 4.00 % 4.00 % |
Schedule of aggregate changes in the benefit obligation and fair value of assets for the qualified and nonqualified plans and the funded status | December 31, 2022 2021 (Millions of dollars) Accumulated benefits exceed assets Accumulated benefits exceed assets Reconciliation of benefit obligation: Benefit obligation at beginning of year $ 362 $ 379 Service cost 9 10 Interest cost 10 9 Actuarial gains (97) (10) Plan settlements — (19) Benefits paid (8) (7) Benefit obligation at end of year $ 276 $ 362 Reconciliation of fair value of plan assets: Fair value of plan assets at beginning of year $ 227 $ 206 Actual return on plan assets (38) 27 Employer contributions 1 20 Plan settlements — (19) Benefits paid (8) (7) Fair value of plan assets at end of year $ 182 $ 227 Funded status $ (94) $ (135) |
Schedule of net periodic benefit cost for all plans | Years ended December 31, (Millions of dollars) 2022 2021 2020 Components of net periodic benefit cost: Service cost $ 9 $ 10 $ 9 Interest cost 10 9 11 Expected return on plan assets (14) (12) (11) Amortization 6 9 7 Settlement loss recognized — 6 11 Net periodic benefit cost $ 11 $ 22 $ 27 |
Derivatives and Fair Value of_2
Derivatives and Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivatives and Fair Value of Financial Instruments | |
Schedule of assets and liabilities measured at fair value on a recurring basis | December 31, (Millions of dollars) 2022 Level 1 Level 2 Level 3 Assets: Trading securities – short-term investments: Domestic equity securities $ 433 $ 433 $ — $ — Domestic debt securities 399 162 237 — Foreign equity securities 169 169 — — Foreign debt securities 66 — 66 — Money market funds held in trading accounts 12 12 — — Other trading securities 7 — 7 — Trading securities – other current assets 26 25 1 — Long-term investment - BDC 63 — 63 — Derivatives 26 26 — — Total assets $ 1,201 $ 827 $ 374 $ — Liabilities: Contingent consideration $ 19 $ — $ — $ 19 Derivatives 12 2 10 — Total liabilities $ 31 $ 2 $ 10 $ 19 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 | December 31, (Millions) Metric 2022 2021 Commodities: Grain Bushels 8 1 Hogs Pounds 16 — Soybean oil Pounds 26 20 Heating oil Gallons — 15 |
Schedule of gain or (loss) for each type of derivative and where it was recognized in the condensed consolidated statements of comprehensive income | (Millions of dollars) 2022 2021 Commodities Cost of sales $ (45) $ (20) Foreign currencies Cost of sales (17) (2) Foreign currencies Foreign currency gains (losses), net 6 4 Interest rate swaps Interest expense — 5 |
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 December 31, December 31, December 31, December 31, (Millions of dollars) 2022 2021 2022 2021 Commodities Other current assets $ 26 $ 6 Other current liabilities $ 2 $ 5 Foreign currencies Other current assets — 5 Other current liabilities 10 5 |
Stockholders Equity and Accumul
Stockholders Equity and Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity and Accumulated Other Comprehensive Loss | |
Schedule of components of accumulated other comprehensive loss, net of related taxes | Cumulative Foreign Cumulative Currency Unrecognized Translation Pension (Millions of dollars) Adjustment Cost Total Balance December 31, 2019 $ (369) $ (71) $ (440) Other comprehensive loss before reclassifications (7) (38) (45) Amounts reclassified from AOCL to net earnings — 14 (a) 14 Other comprehensive loss, net of tax (7) (24) (31) Balance December 31, 2020 $ (376) $ (95) $ (471) Other comprehensive income before reclassifications 8 18 26 Amounts reclassified from AOCL to net earnings — 13 (a) 13 Other comprehensive income, net of tax 8 31 39 Balance December 31, 2021 $ (368) $ (64) $ (432) Other comprehensive income (loss) before reclassifications (42) 38 (4) Amounts reclassified from AOCL to net earnings 9 (b) 5 (a) 14 Other comprehensive income (loss), net of tax (33) 43 10 Balance December 31, 2022 $ (401) $ (21) $ (422) (a) (b) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes | |
Schedule of earnings before income taxes | Years ended December 31, (Millions of dollars) 2022 2021 2020 United States $ (205) $ 337 $ 138 Foreign 782 298 148 Total earnings before income taxes excluding noncontrolling interests 577 635 286 Net earnings attributable to noncontrolling interests 2 1 — Total earnings before income taxes $ 579 $ 636 $ 286 |
Schedule of components of total income taxes | Years ended December 31, (Millions of dollars) 2022 2021 2020 Current: Federal $ 54 $ 35 $ (50) Foreign 42 33 35 State and local 12 10 2 Deferred: Federal (94) 3 26 Foreign 5 (7) (3) State and local (22) (9) (7) Income tax expense (benefit) (3) 65 3 Unrealized changes in other comprehensive income (loss) 8 8 (3) Total income taxes $ 5 $ 73 $ — |
Schedule of reconciliation of computed expected tax expense excluding non-controlling interest to income tax expense (benefit) | Years ended December 31, (Millions of dollars) 2022 2021 2020 Computed “expected” tax expense excluding noncontrolling interests $ 121 $ 133 $ 60 Adjustments to tax expense attributable to: Foreign tax differences (60) (35) 10 Tax-exempt income (17) (15) (17) Foreign entity repatriation 10 — — Federal tax credits (57) (39) (34) Unrecognized tax benefits 7 14 — Valuation allowance (7) 6 (14) Other — 1 (2) Total income tax expense (benefit) $ (3) $ 65 $ 3 |
Schedule of components of the net deferred income tax liability | December 31, (Millions of dollars) 2022 2021 Deferred income tax liabilities: Depreciation $ 106 $ 121 Domestic partnerships 59 62 Unrealized gain on investments — 13 Inventory 14 7 Foreign basis difference 13 — Other 2 4 Gross deferred income tax liabilities $ 194 $ 207 Deferred income tax assets: Reserves/accruals $ 68 $ 66 Sec. 174 capitalization 75 — Unrealized loss on investments 40 — Deferred earnings of foreign subsidiaries 3 — Net operating and capital loss carry-forwards 28 67 Tax credit carry-forwards 22 32 Other 8 5 Gross deferred income tax assets before valuation allowance 244 170 Less: Valuation allowance 33 60 Net deferred income tax liability (asset) $ (17) $ 97 |
Schedule of activity within the valuation allowance account | Balance at Charge (credit) Balance at (Millions of dollars) beginning of year to expense end of year Allowance for Deferred Tax Assets: Year Ended December 31, 2022 $ 60 (27) $ 33 Year Ended December 31, 2021 $ 55 5 $ 60 Year Ended December 31, 2020 $ 68 (13) $ 55 |
Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits | (Millions of dollars) 2022 2021 Beginning balance at January 1 $ 41 $ 30 Additions for uncertain tax positions of prior years 1 7 Decreases for uncertain tax positions of prior years (4) (1) Additions for uncertain tax positions of current year 23 6 Lapse of statute of limitations (10) (1) Ending balance as of December 31 $ 51 $ 41 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Information | |
Summary of sales disaggregated by revenue source and segment | Net Sales: Year Ended December 31, 2022 (Millions of dollars) Pork CT&M Marine Sugar and Alcohol Power All Other Consolidated Totals Major Products/Services Lines: Products $ 1,954 $ 6,275 $ — $ 123 $ — $ 16 $ 8,368 Transportation 11 — 2,043 — — 2 2,056 Energy 611 — — 6 158 — 775 Other 29 15 — — — — 44 Segment/consolidated totals $ 2,605 $ 6,290 $ 2,043 $ 129 $ 158 $ 18 $ 11,243 Net Sales: Year Ended December 31, 2021 (Millions of dollars) Pork CT&M Marine Sugar and Alcohol Power All Other Consolidated Totals Major Products/Services Lines: Products $ 2,091 $ 5,139 $ — $ 113 $ — $ 14 $ 7,357 Transportation 8 — 1,396 — — 1 1,405 Energy 357 — — 10 60 — 427 Other 25 15 — — — — 40 Segment/consolidated totals $ 2,481 $ 5,154 $ 1,396 $ 123 $ 60 $ 15 $ 9,229 Net Sales: Year Ended December 31, 2020 (Millions of dollars) Pork CT&M Marine Sugar and Alcohol Power All Other Consolidated Totals Major Products/Services Lines: Products $ 1,682 $ 3,981 $ — $ 95 $ — $ 16 $ 5,774 Transportation 8 — 1,005 — — — 1,013 Energy 219 — — 11 64 — 294 Other 32 13 — — — — 45 Segment/consolidated totals $ 1,941 $ 3,994 $ 1,005 $ 106 $ 64 $ 16 $ 7,126 |
Summary of specific financial information related to operating income (loss) | Operating Income (Loss): Years ended December 31, (Millions of dollars) 2022 2021 2020 Pork $ (96) $ 227 $ 131 CT&M 151 61 118 Marine 591 197 21 Sugar and Alcohol 11 2 2 Power 14 (9) 3 All other 1 1 1 Segment totals 672 479 276 Corporate (15) (21) (31) Consolidated totals $ 657 $ 458 $ 245 |
Summary of specific financial information related to total assets | Total Assets: December 31, (Millions of dollars) 2022 2021 Pork $ 2,698 $ 2,265 CT&M 1,915 2,054 Marine 882 749 Sugar and Alcohol 165 155 Power 342 359 Turkey 350 245 All other 6 7 Segment totals 6,358 5,834 Corporate 1,544 1,669 Consolidated totals $ 7,902 $ 7,503 |
Summary of specific financial information related to capital expenditures | Capital Expenditures: Years ended December 31, (Millions of dollars) 2022 2021 2020 Pork $ 315 $ 343 $ 207 CT&M 14 17 8 Marine 136 44 10 Sugar and Alcohol 9 8 5 Power — 43 27 All other — 1 2 Segment totals 474 456 259 Corporate — 4 — Consolidated totals $ 474 $ 460 $ 259 |
Geographic summary of net sales based on the location of product delivery | Years ended December 31, (Millions of dollars) 2022 2021 2020 Caribbean, Central and South America $ 5,054 $ 3,566 $ 2,744 Africa 3,107 2,685 2,099 United States (a) 2,181 2,031 1,536 Pacific Basin and Far East 490 545 435 Canada/Mexico 338 309 202 Europe 71 86 101 All other 2 7 9 Total sales $ 11,243 $ 9,229 $ 7,126 (a) For Marine segment services on product delivery to the U.S., geographic location is based on origination port. |
Geographic summary of the entity's property, plant and equipment according to their physical location and primary port for the vessels | December 31, (Millions of dollars) 2022 2021 United States $ 1,682 $ 1,331 Dominican Republic 281 297 Argentina 59 59 China 35 — Ivory Coast 33 39 Senegal 32 40 Zambia 31 30 All other 93 96 Total property, plant and equipment, net $ 2,246 $ 1,892 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operations of Seaboard Corporation and its Subsidiaries | ||||
Percentage of ownership interest held by Seaboard Flour LLC and SFC Preferred LLC | 77% | |||
Goodwill | ||||
Goodwill impairment charges | $ 0 | $ 4 | ||
Goodwill, beginning balance | 163 | 167 | ||
Foreign currency translation | (13) | |||
Acquisition | 4 | |||
Impairment | 0 | (4) | ||
Goodwill, ending balance | 154 | 163 | $ 167 | |
Intangible assets | ||||
Gross carrying amount | 79 | 79 | ||
Accumulated amortization and currency translation | (48) | (34) | ||
Net carrying amount | 31 | 45 | ||
Intangible assets | ||||
Amortization of intangible assets | 8 | 9 | 8 | |
2023 | 8 | |||
2024 | 8 | |||
2025 | 8 | |||
2026 | 7 | |||
Changes in the asset retirement obligation | ||||
Beginning balance | 29 | 27 | ||
Accretion expense | 2 | 1 | ||
Liability for additional lagoons placed in service | 1 | 1 | ||
Ending balance | 32 | 29 | 27 | |
Supplemental Non-Cash Transactions | ||||
Interest, net of interest capitalized | 35 | 10 | 16 | |
Income taxes, net of refunds | 101 | 104 | 55 | |
Capital expenditures included in accounts payable | 15 | 5 | 7 | |
Accounts Receivable | ||||
Trade | 588 | 553 | ||
Due from affiliates | 195 | 128 | ||
Other | 171 | 112 | ||
Total receivables | 954 | 793 | ||
Allowance for credit losses | (31) | (31) | ||
Net receivables | 923 | 762 | ||
Notes Receivable | ||||
Notes receivable, net | $ 40 | 30 | ||
Foreign Currency Transactions and Translation | ||||
Period of measurement to determine highly inflationary accounting | 3 years | |||
Three-year cumulative inflation rate | 100% | |||
Minimum | ||||
Principles of Consolidation and Investments in Affiliates | ||||
Time lag for reporting financial information | 1 month | |||
Property, Plant and Equipment | ||||
Useful Lives | 3 years | |||
Maximum | ||||
Principles of Consolidation and Investments in Affiliates | ||||
Time lag for reporting financial information | 3 months | |||
Property, Plant and Equipment | ||||
Useful Lives | 30 years | |||
Pork | ||||
Goodwill | ||||
Goodwill, beginning balance | $ 18 | 18 | ||
Acquisition | 4 | |||
Goodwill, ending balance | 22 | 18 | 18 | |
Commodity Trading and Milling | ||||
Goodwill | ||||
Goodwill impairment charges | 4 | |||
Goodwill, beginning balance | 145 | 149 | ||
Foreign currency translation | (13) | |||
Impairment | (4) | |||
Goodwill, ending balance | 132 | 145 | 149 | |
Customer relationships | ||||
Intangible assets | ||||
Gross carrying amount | 51 | 51 | ||
Accumulated amortization and currency translation | (31) | (22) | ||
Net carrying amount | 20 | 29 | ||
Trade names | ||||
Intangible assets | ||||
Gross carrying amount | 28 | 28 | ||
Accumulated amortization and currency translation | (17) | (12) | ||
Net carrying amount | 11 | 16 | ||
Allowance for Credit Losses | ||||
Movement in valuation and qualifying accounts | ||||
Balance at beginning of year | 31 | 28 | 28 | |
Transition Adjustment | $ 3 | |||
Provision | 7 | 5 | ||
Net deductions | (7) | (2) | (3) | |
Balance at end of year | 31 | 31 | 28 | 28 |
Allowance for Long-Term Notes Receivable | ||||
Movement in valuation and qualifying accounts | ||||
Balance at beginning of year | 18 | 17 | 17 | |
Provision | 1 | |||
Net deductions | (1) | |||
Balance at end of year | 17 | 18 | $ 17 | $ 17 |
Accounts Receivable | Geographic concentration | Foreign Country | ||||
Accounts Receivable | ||||
Foreign receivables, excluding receivables due from affiliates | $ 659 | $ 578 | ||
Net sales | Transferred at point in time | ||||
Revenue Recognition | ||||
Percentage of revenue | 85% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - R&D and Recently Adopted Accounting Standards (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Research and Development | ||||
Research and development expense | $ 210 | $ 191 | $ 134 | |
Recently issued accounting standards | ||||
Total equity | 5,014 | 4,434 | 3,828 | $ 3,601 |
Cumulative Effect, Period of Adoption, Adjustment | ||||
Recently issued accounting standards | ||||
Total equity | (3) | |||
Cumulative Effect, Period of Adoption, Adjustment | Allowance for Credit Losses | ||||
Recently issued accounting standards | ||||
Total equity | 3 | |||
Retained Earnings | ||||
Recently issued accounting standards | ||||
Total equity | $ 5,417 | $ 4,847 | $ 4,287 | 4,030 |
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | ||||
Recently issued accounting standards | ||||
Total equity | $ (3) |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments | |||
Fair Value | $ 1,086 | $ 1,416 | |
Long term investments | 185 | 156 | |
Change in unrealized gains (losses) on trading securities | (129) | 12 | $ 74 |
Denominated in foreign currencies | |||
Investments | |||
Fair Value | 16 | 46 | |
Domestic equity securities | |||
Investments | |||
Fair Value | 433 | 472 | |
Domestic debt securities | |||
Investments | |||
Fair Value | 399 | 542 | |
Foreign equity securities | |||
Investments | |||
Fair Value | 169 | 193 | |
Foreign debt securities | |||
Investments | |||
Fair Value | 66 | 133 | |
Money market funds held in trading accounts | |||
Investments | |||
Fair Value | 12 | 59 | |
Other trading investments | |||
Investments | |||
Fair Value | $ 7 | $ 17 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
At lower of FIFO cost and NRV: | ||
Hogs and materials | $ 538 | $ 489 |
Pork products and materials | 75 | 64 |
Grains, oilseeds and other commodities | 475 | 634 |
Biofuels and related credits | 221 | 147 |
Other | 104 | 92 |
Total inventories at lower of FIFO cost and NRV | 1,413 | 1,426 |
Grain, flour and feed at lower of weighted average cost and NRV | 257 | 237 |
Total inventories | $ 1,670 | $ 1,663 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, plant and equipment | ||
Gross property, plant and equipment | $ 3,990 | $ 3,459 |
Accumulated depreciation and amortization | (1,744) | (1,567) |
Net property, plant and equipment | 2,246 | 1,892 |
ROU assets | 198 | 128 |
Accumulated amortization | $ 1,744 | 1,567 |
Minimum | ||
Property, plant and equipment | ||
Useful Lives | 3 years | |
Maximum | ||
Property, plant and equipment | ||
Useful Lives | 30 years | |
Land and improvements | ||
Property, plant and equipment | ||
Gross property, plant and equipment | $ 331 | $ 285 |
Land and improvements | Minimum | ||
Property, plant and equipment | ||
Useful Lives | 3 years | 3 years |
Land and improvements | Maximum | ||
Property, plant and equipment | ||
Useful Lives | 15 years | 15 years |
Buildings and improvements | ||
Property, plant and equipment | ||
Useful Lives | 30 years | 30 years |
Gross property, plant and equipment | $ 779 | $ 739 |
Machinery and equipment | ||
Property, plant and equipment | ||
Gross property, plant and equipment | $ 2,027 | $ 1,445 |
Machinery and equipment | Minimum | ||
Property, plant and equipment | ||
Useful Lives | 3 years | 3 years |
Machinery and equipment | Maximum | ||
Property, plant and equipment | ||
Useful Lives | 20 years | 20 years |
Vessels and vehicles | ||
Property, plant and equipment | ||
Gross property, plant and equipment | $ 373 | $ 214 |
Vessels and vehicles | Minimum | ||
Property, plant and equipment | ||
Useful Lives | 3 years | 3 years |
Vessels and vehicles | Maximum | ||
Property, plant and equipment | ||
Useful Lives | 18 years | 18 years |
Office furniture and fixtures | ||
Property, plant and equipment | ||
Useful Lives | 5 years | 5 years |
Gross property, plant and equipment | $ 43 | $ 45 |
Contract growers | ||
Property, plant and equipment | ||
Gross property, plant and equipment | $ 151 | $ 118 |
Contract growers | Minimum | ||
Property, plant and equipment | ||
Useful Lives | 5 years | 5 years |
Contract growers | Maximum | ||
Property, plant and equipment | ||
Useful Lives | 15 years | 15 years |
Construction in progress | ||
Property, plant and equipment | ||
Gross property, plant and equipment | $ 286 | $ 613 |
Capitalized interest | $ 4 | $ 7 |
Leases - Finance Lease Asset an
Leases - Finance Lease Asset and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Leases | ||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, plant and equipment, net | Property, plant and equipment, net |
Finance lease right of use assets, net | $ 198 | $ 128 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Finance lease liabilities | $ 56 | $ 23 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other non-current liabilities | Other non-current liabilities |
Non-current finance lease liabilities | $ 143 | $ 104 |
Leases - Lease costs (Details)
Leases - Lease costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lease cost | |||
Operating lease cost | $ 184 | $ 162 | $ 145 |
Finance lease cost: | |||
Amortization of right of use assets | 46 | 17 | 9 |
Interest on lease liabilities | 6 | 5 | 4 |
Variable lease cost | 18 | 20 | 8 |
Short-term lease cost | 13 | 27 | 25 |
Sublease income | (6) | (8) | (6) |
Total lease cost | $ 261 | $ 223 | $ 185 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Leases | ||
Operating lease weighted average remaining lease term | 5 years | 4 years |
Weighted average discount rate for operating leases | 6.13% | 5.37% |
Finance lease weighted average remaining lease term | 5 years | 7 years |
Weighted average discount rate for financing leases | 3.44% | 4.16% |
Leases - Maturities and Supplem
Leases - Maturities and Supplemental information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Maturities of operating lease liabilities | |||
2023 | $ 175 | ||
2024 | 101 | ||
2025 | 69 | ||
2026 | 62 | ||
2027 | 48 | ||
Thereafter | 108 | ||
Total undiscounted lease payments | 563 | ||
Less imputed interest | (89) | ||
Total operating lease liability | 474 | ||
Maturities of finance lease liabilities | |||
2023 | 61 | ||
2024 | 55 | ||
2025 | 32 | ||
2026 | 18 | ||
2027 | 12 | ||
Thereafter | 45 | ||
Total undiscounted lease payments | 223 | ||
Less imputed interest | (24) | ||
Total finance lease liability | 199 | ||
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | 194 | $ 166 | $ 142 |
Operating cash flows from finance leases | 6 | 5 | 4 |
Financing cash flows from finance leases | 44 | 14 | 7 |
ROU assets obtained in exchange for new lease liabilities: | |||
Operating leases | 118 | 244 | 62 |
Finance leases | $ 116 | $ 54 | $ 50 |
Investments in Affiliates (Deta
Investments in Affiliates (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Jan. 01, 2022 USD ($) | Jul. 02, 2022 USD ($) | Dec. 31, 2022 USD ($) item | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Investments in Affiliates | ||||||
Investments in and advances to affiliates | $ 753 | $ 651 | ||||
Income (loss) from affiliates | 152 | 7 | $ (18) | |||
Purchases from related parties included in Cost of Sales | 91 | |||||
Proceeds from sale of non-consolidated affiliates | 13 | |||||
Dividends received from affiliates | 40 | 44 | 20 | |||
Notes receivable from affiliates | 2 | 1 | ||||
Foreign currency translation adjustment | (33) | 8 | (7) | |||
Due from affiliates | 195 | 128 | ||||
Accounts payable to affiliates | 2 | 1 | ||||
Principal payments received on third party notes receivable | 5 | 21 | ||||
Financial information | ||||||
Operating income (loss) | 657 | 458 | 245 | |||
Net earnings (loss) | 582 | 571 | 283 | |||
Total assets | 7,902 | 7,503 | ||||
Total liabilities | 2,888 | 3,069 | ||||
Total equity | 5,014 | 4,434 | 3,828 | $ 3,601 | ||
Affiliates | ||||||
Investments in Affiliates | ||||||
Deferred revenue | $ 12 | 24 | ||||
Minimum | ||||||
Financial information | ||||||
Time lag for reporting financial information | 1 month | |||||
Maximum | ||||||
Financial information | ||||||
Time lag for reporting financial information | 3 months | |||||
Seaboard de Mexico | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 50% | |||||
Products. | ||||||
Investments in Affiliates | ||||||
Sales to related parties | $ 1,463 | 1,396 | 1,125 | |||
Services. | ||||||
Investments in Affiliates | ||||||
Sales to related parties | 20 | 20 | 21 | |||
Pork | ||||||
Investments in Affiliates | ||||||
Investments in and advances to affiliates | 152 | 142 | ||||
Income (loss) from affiliates | 24 | 3 | (9) | |||
Financial information | ||||||
Total assets | 2,698 | 2,265 | ||||
Pork | Equity method investment in non-consolidated affiliates | ||||||
Financial information | ||||||
Net sales | 2,417 | 2,010 | 1,543 | |||
Net earnings (loss) | 48 | 5 | (18) | |||
Total assets | 615 | 584 | 586 | |||
Total liabilities | 312 | 302 | 245 | |||
Total equity | $ 303 | 282 | 341 | |||
Pork | Mexico | ||||||
Investments in Affiliates | ||||||
Proceeds from sale of non-consolidated affiliates | $ 9 | |||||
Gain (loss) on sale of affiliate | $ 6 | |||||
Percentage of ownership interest sold | 50% | |||||
Pork | Daily's | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 50% | |||||
Pork | STF | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 50% | |||||
Commodity Trading and Milling | ||||||
Investments in Affiliates | ||||||
Investments in and advances to affiliates | $ 210 | 224 | ||||
Income (loss) from affiliates | 21 | 18 | (2) | |||
Carrying value of investment in affiliates over (under) entity's share of affiliates' book value | 49 | |||||
Financial information | ||||||
Total assets | 1,915 | 2,054 | ||||
Commodity Trading and Milling | Equity method investment in non-consolidated affiliates | ||||||
Financial information | ||||||
Net sales | 3,186 | 2,766 | 2,482 | |||
Net earnings (loss) | 40 | 47 | (2) | |||
Total assets | 1,848 | 1,798 | 1,745 | |||
Total liabilities | 1,250 | 1,199 | 1,185 | |||
Total equity | $ 598 | 599 | 560 | |||
Commodity Trading and Milling | Businesses conducting flour, maize and feed milling and poultry production and processing | Botswana | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 50% | |||||
Commodity Trading and Milling | Businesses conducting flour, maize and feed milling and poultry production and processing | Democratic Republic of Congo | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 50% | |||||
Commodity Trading and Milling | Businesses conducting flour, maize and feed milling and poultry production and processing | Gambia | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 50% | |||||
Commodity Trading and Milling | Businesses conducting flour, maize and feed milling and poultry production and processing | Kenya | Minimum | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 18.47% | |||||
Commodity Trading and Milling | Businesses conducting flour, maize and feed milling and poultry production and processing | Kenya | Maximum | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 49% | |||||
Commodity Trading and Milling | Businesses conducting flour, maize and feed milling and poultry production and processing | Lesotho | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 50% | |||||
Commodity Trading and Milling | Businesses conducting flour, maize and feed milling and poultry production and processing | Mauritania | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 50% | |||||
Commodity Trading and Milling | Businesses conducting flour, maize and feed milling and poultry production and processing | Morocco | Minimum | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 15.13% | |||||
Commodity Trading and Milling | Businesses conducting flour, maize and feed milling and poultry production and processing | Morocco | Maximum | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 17.71% | |||||
Commodity Trading and Milling | Businesses conducting flour, maize and feed milling and poultry production and processing | Nigeria | Minimum | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 25% | |||||
Commodity Trading and Milling | Businesses conducting flour, maize and feed milling and poultry production and processing | Nigeria | Maximum | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 48.33% | |||||
Commodity Trading and Milling | Businesses conducting flour, maize and feed milling and poultry production and processing | Senegal | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 49% | |||||
Commodity Trading and Milling | Businesses conducting flour, maize and feed milling and poultry production and processing | South Africa | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 50% | |||||
Commodity Trading and Milling | Businesses conducting flour, maize and feed milling and poultry production and processing | Tanzania | Minimum | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 11.76% | |||||
Commodity Trading and Milling | Businesses conducting flour, maize and feed milling and poultry production and processing | Tanzania | Maximum | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 49% | |||||
Commodity Trading and Milling | Businesses conducting flour, maize and feed milling and poultry production and processing | Uganda | Minimum | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 23.50% | |||||
Commodity Trading and Milling | Businesses conducting flour, maize and feed milling and poultry production and processing | Uganda | Maximum | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 49% | |||||
Commodity Trading and Milling | Businesses conducting flour, maize and feed milling and poultry production and processing | Zambia | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 49% | |||||
Commodity Trading and Milling | Businesses conducting flour, maize and feed milling and poultry production and processing | Colombia | Minimum | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 40% | |||||
Commodity Trading and Milling | Businesses conducting flour, maize and feed milling and poultry production and processing | Colombia | Maximum | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 42% | |||||
Commodity Trading and Milling | Businesses conducting flour, maize and feed milling and poultry production and processing | Ecuador | Minimum | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 25% | |||||
Commodity Trading and Milling | Businesses conducting flour, maize and feed milling and poultry production and processing | Ecuador | Maximum | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 50% | |||||
Commodity Trading and Milling | Businesses conducting flour, maize and feed milling and poultry production and processing | Guyana | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 50% | |||||
Commodity Trading and Milling | Businesses conducting flour, maize and feed milling and poultry production and processing | Peru | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 50% | |||||
Commodity Trading and Milling | Businesses conducting flour, maize and feed milling and poultry production and processing | Jamaica | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 50% | |||||
Commodity Trading and Milling | Businesses conducting flour, maize and feed milling and poultry production and processing | Haiti | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 23.33% | |||||
Commodity Trading and Milling | Businesses conducting flour, maize and feed milling and poultry production and processing | Turkey | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 25% | |||||
Commodity Trading and Milling | Businesses conducting flour, maize and feed milling and poultry production and processing | Canada | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 45% | |||||
Commodity Trading and Milling | Businesses conducting flour, maize and feed milling and poultry production and processing | United States | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 20% | |||||
Marine | ||||||
Investments in Affiliates | ||||||
Investments in and advances to affiliates | $ 36 | 33 | ||||
Income (loss) from affiliates | 4 | 6 | 2 | |||
Carrying value of investment in affiliates over (under) entity's share of affiliates' book value | (40) | |||||
Financial information | ||||||
Total assets | 882 | 749 | ||||
Marine | Equity method investment in non-consolidated affiliates | ||||||
Financial information | ||||||
Net sales | 82 | 74 | 66 | |||
Net earnings (loss) | 21 | 27 | 8 | |||
Total assets | 256 | 245 | 253 | |||
Total liabilities | 61 | 88 | 98 | |||
Total equity | $ 195 | 157 | 155 | |||
Marine | Cargo terminal business | Minimum | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 16.87% | |||||
Marine | Cargo terminal business | Maximum | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 21.02% | |||||
Sugar and Alcohol | ||||||
Investments in Affiliates | ||||||
Investments in and advances to affiliates | $ 2 | 4 | ||||
Income (loss) from affiliates | 1 | |||||
Financial information | ||||||
Total assets | 165 | 155 | ||||
Sugar and Alcohol | Equity method investment in non-consolidated affiliates | ||||||
Financial information | ||||||
Net sales | 8 | 6 | 7 | |||
Net earnings (loss) | 1 | |||||
Total assets | 6 | 8 | 14 | |||
Total liabilities | 2 | 1 | 2 | |||
Total equity | $ 4 | 7 | 12 | |||
Sugar and Alcohol | Sugar related businesses | Argentina | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 50% | |||||
Number of businesses | item | 2 | |||||
Power | ||||||
Investments in Affiliates | ||||||
Investments in and advances to affiliates | $ 3 | 3 | ||||
Financial information | ||||||
Total assets | 342 | 359 | ||||
Power | Equity method investment in non-consolidated affiliates | ||||||
Financial information | ||||||
Net sales | 1 | 1 | 1 | |||
Net earnings (loss) | 1 | |||||
Total assets | 9 | 12 | 12 | |||
Total liabilities | 3 | 5 | 6 | |||
Total equity | $ 6 | 7 | 6 | |||
Power | Energy related businesses | Dominican Republic | ||||||
Investments in Affiliates | ||||||
Number of businesses | item | 2 | |||||
Power | Energy related business one | Dominican Republic | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 45% | |||||
Power | Energy related business two | Dominican Republic | ||||||
Investments in Affiliates | ||||||
Percentage of ownership | 50% | |||||
Turkey | ||||||
Investments in Affiliates | ||||||
Investments in and advances to affiliates | $ 350 | 245 | ||||
Income (loss) from affiliates | 103 | (20) | (10) | |||
Financial information | ||||||
Total assets | 350 | 245 | ||||
Turkey | Equity method investment in non-consolidated affiliates | ||||||
Financial information | ||||||
Net sales | 2,050 | 1,792 | 1,675 | |||
Operating income (loss) | 202 | (34) | (6) | |||
Net earnings (loss) | 196 | (38) | (20) | |||
Total assets | 1,081 | 991 | 993 | |||
Total liabilities | 406 | 517 | 481 | |||
Total equity | 675 | $ 474 | $ 512 | |||
Turkey | Butterball, LLC | ||||||
Investments in Affiliates | ||||||
Investee's intangible assets for trade name | 111 | |||||
Investee's intangible assets for goodwill | $ 61 | |||||
Turkey | Butterball, LLC | Detachable warrants | ||||||
Investments in Affiliates | ||||||
Additional equity interest that can be acquired upon exercise of warrants (as a percent) | 5% | |||||
Economic interest (as a percent) | 52.50% | |||||
Percentage of the Butterball's earnings recorded as income from affiliates in the Consolidated Statements of Comprehensive Income (as a percent) | 52.50% | |||||
Disposed of by sale | Commodity Trading and Milling | Protein and commodity trading company | ||||||
Investments in Affiliates | ||||||
Percentage of ownership interest sold | 20% | |||||
Proceeds from the sale of non-consolidated affiliates | $ 12 |
Debt - Notes payable and bank l
Debt - Notes payable and bank lines (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Uncommitted and committed bank lines | ||
Debt | ||
Weighted average interest rate (as a percent) | 7.03% | 2.71% |
Uncommitted bank lines | ||
Debt | ||
Lines of credit | $ 326 | $ 359 |
Compensating balance | 3 | |
Uncommitted bank lines | Denominated in foreign currencies | ||
Debt | ||
Lines of credit | 194 | 218 |
Uncommitted bank lines | South African Rand | ||
Debt | ||
Lines of credit | 174 | 177 |
Committed bank line | ||
Debt | ||
Lines of credit | 131 | $ 157 |
Maximum capacity | $ 250 |
Debt - Summary of long-term deb
Debt - Summary of long-term debt (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | Dec. 31, 2018 | |
Debt | ||||
Other long-term debt | $ 39 | $ 38 | ||
Total debt at face value | 717 | 710 | ||
Current maturities of long-term debt and unamortized discount | (9) | (8) | ||
Long-term debt, less current maturities | 708 | 702 | ||
Term loan due 2028 | ||||
Debt | ||||
Debt at face value | $ 677 | $ 670 | $ 700 | |
Effective interest rate (as a percent) | 1.73% | 6.01% | ||
Foreign subsidiary obligations | ||||
Debt | ||||
Debt at face value | $ 1 | $ 2 | ||
Equipment loan | ||||
Debt | ||||
Long-term debt assumed | $ 9 | |||
Interest rate (as a percent) | 5.60% | |||
Note due 2027 | ||||
Debt | ||||
Debt at face value | $ 30 | |||
Interest rate (as a percent) | 1.28% |
Debt - Maturities and foreign s
Debt - Maturities and foreign subsidiary obligations (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Maturities of long-term debt | |
2023 | $ 7 |
2024 | 8 |
2025 | 8 |
2026 | 8 |
2027 | 38 |
Thereafter | $ 641 |
Commitments and Contingencies -
Commitments and Contingencies - Numbers of Items (Details) $ in Millions | 6 Months Ended | |||||||||||
Nov. 11, 2022 employee | Sep. 23, 2022 claim | Sep. 30, 2021 USD ($) | Jul. 01, 2021 plaintiff | Jun. 28, 2018 plaintiff | May 15, 2018 USD ($) | Apr. 27, 2018 USD ($) employee | Mar. 20, 2018 USD ($) subsidiary | Dec. 31, 2018 plaintiff | Dec. 31, 2022 USD ($) | Sep. 22, 2022 claim | Dec. 31, 2021 USD ($) | |
Commitments and Contingencies | ||||||||||||
Total liabilities | $ 2,888 | $ 3,069 | ||||||||||
Assets | $ 7,902 | $ 7,503 | ||||||||||
Pork Product Purchasers | Pending Litigation | ||||||||||||
Commitments and Contingencies | ||||||||||||
Number of plaintiffs | plaintiff | 12 | 3 | ||||||||||
Pork Compensation Antitrust | Pending Litigation | ||||||||||||
Commitments and Contingencies | ||||||||||||
Number of plaintiffs | employee | 3 | |||||||||||
Odette Blanco De Fernandez | Pending Litigation | ||||||||||||
Commitments and Contingencies | ||||||||||||
Number of siblings added as plaintiffs | plaintiff | 4 | |||||||||||
Term of concession to develop port facilities | 70 years | |||||||||||
Claimed ownership percentage of companies that owned concession and land | 20% | |||||||||||
HSBC | Pending Litigation | ||||||||||||
Commitments and Contingencies | ||||||||||||
Damages sought | $ 10 | |||||||||||
Interest and other relief sought | $ 3 | |||||||||||
Number of claims that were dismissed by a court | claim | 6 | |||||||||||
Number of claims | claim | 1 | 7 | ||||||||||
Number of claims dismissed that can be refiled | claim | 3 | |||||||||||
Number of claims dismissed that cannot be refiled unless successfully appealed | claim | 3 | |||||||||||
Cereoil | Cereoil Bankruptcy Trustee - Case Two | Pending Litigation | ||||||||||||
Commitments and 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 | ||||||||||||
Commitments and Contingencies | ||||||||||||
Damages sought | $ 8 | |||||||||||
Total liabilities | 29 | |||||||||||
Assets | $ 15 | |||||||||||
Cereoil | ||||||||||||
Commitments and Contingencies | ||||||||||||
Percentage of ownership | 45% | |||||||||||
Cereoil | Cereoil Bankruptcy Trustee - Case One | Pending Litigation | ||||||||||||
Commitments and Contingencies | ||||||||||||
Damages sought | $ 22 | |||||||||||
Number of subsidiaries | subsidiary | 2 | |||||||||||
Nolston | ||||||||||||
Commitments and Contingencies | ||||||||||||
Percentage of ownership | 45% |
Commitments and Contingencies_2
Commitments and Contingencies - Commitments (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) item | |
Commitments | |
2023 | $ 1,879 |
2024 | 450 |
2025 | 258 |
2026 | 144 |
2027 | 99 |
Thereafter | 378 |
Totals | $ 3,208 |
Marine | |
Commitments | |
Number of vessels under construction | item | 6 |
Number of vessels expected to be delivered in 2024 | item | 3 |
Number of vessels expected to be delivered in 2025 | item | 3 |
Hog procurement contracts | |
Commitments | |
2023 | $ 86 |
2024 | 57 |
2025 | 57 |
2026 | 42 |
Totals | 242 |
Grain and feedstock commitments | |
Commitments | |
2023 | 581 |
2024 | 152 |
2025 | 4 |
2026 | 3 |
Totals | 740 |
Grain purchase contracts for resale | |
Commitments | |
2023 | 842 |
2024 | 1 |
Totals | 843 |
Fuel supply contract | |
Commitments | |
2023 | 113 |
2024 | 87 |
2025 | 98 |
2026 | 98 |
2027 | 98 |
Thereafter | 369 |
Totals | 863 |
Capital expenditures | |
Commitments | |
2023 | 127 |
2024 | 152 |
2025 | 98 |
Totals | 377 |
Other commitments | |
Commitments | |
2023 | 130 |
2024 | 1 |
2025 | 1 |
2026 | 1 |
2027 | 1 |
Thereafter | 9 |
Totals | $ 143 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Target allocation and pension plan asset allocation | |||
Contributions made to defined benefit pension plans | $ 1 | $ 20 | |
Estimated fair value of plan assets | 182 | 227 | $ 206 |
Reconciliation of benefit obligation: | |||
Benefit obligation at beginning of year | 362 | 379 | |
Service cost | 9 | 10 | 9 |
Interest cost | 10 | 9 | 11 |
Actuarial gains | (97) | (10) | |
Plan settlements | (19) | ||
Benefits paid | (8) | (7) | |
Benefit obligation at end of year | 276 | 362 | 379 |
Reconciliation of fair value of plan assets: | |||
Fair value of plan assets at beginning of year | 227 | 206 | |
Actual return on plan assets | (38) | 27 | |
Employer contributions | 1 | 20 | |
Plan settlements | (19) | ||
Benefits paid | (8) | (7) | |
Fair value of plan assets at end of year | 182 | 227 | 206 |
Funded status | (94) | (135) | |
Components of net periodic benefit cost: | |||
Service cost | 9 | 10 | 9 |
Interest cost | 10 | 9 | 11 |
Expected return on plan assets | (14) | (12) | (11) |
Amortization and other | 6 | 9 | 7 |
Settlement loss recognized | 6 | 11 | |
Net periodic benefit cost | 11 | 22 | $ 27 |
Amounts not reflected in net periodic benefit cost and included in accumulated other comprehensive loss (AOCL) before taxes | |||
Total accumulated other comprehensive loss | 21 | 71 | |
Defined benefit pension plan | |||
Target allocation and pension plan asset allocation | |||
Estimated fair value of plan assets | $ 182 | $ 227 | |
Weighted-average assumptions | |||
Expected return on plan assets (as a percent) | 6.25% | 6.25% | 6.25% |
Long-term rate of increase in compensation levels (as a percent) | 4% | 4% | 4% |
Reconciliation of fair value of plan assets: | |||
Fair value of plan assets at beginning of year | $ 227 | ||
Fair value of plan assets at end of year | 182 | $ 227 | |
Expected future benefit payments | |||
2023 | 44 | ||
2024 | 17 | ||
2025 | 11 | ||
2026 | 15 | ||
2027 | 14 | ||
Next five years after year five | 78 | ||
Accumulated benefit obligation | 247 | 319 | |
Defined benefit pension plan | Level 1 | |||
Target allocation and pension plan asset allocation | |||
Estimated fair value of plan assets | 182 | 227 | |
Reconciliation of fair value of plan assets: | |||
Fair value of plan assets at beginning of year | 227 | ||
Fair value of plan assets at end of year | $ 182 | 227 | |
Defined benefit pension plan | Equity Securities | |||
Target allocation and pension plan asset allocation | |||
Target Allocations (as a percent) | 80% | ||
Defined benefit pension plan | Domestic equity securities | |||
Target allocation and pension plan asset allocation | |||
Estimated fair value of plan assets | $ 84 | 113 | |
Reconciliation of fair value of plan assets: | |||
Fair value of plan assets at beginning of year | 113 | ||
Fair value of plan assets at end of year | 84 | 113 | |
Defined benefit pension plan | Domestic equity securities | Level 1 | |||
Target allocation and pension plan asset allocation | |||
Estimated fair value of plan assets | 84 | 113 | |
Reconciliation of fair value of plan assets: | |||
Fair value of plan assets at beginning of year | 113 | ||
Fair value of plan assets at end of year | 84 | 113 | |
Defined benefit pension plan | Foreign equity securities | |||
Target allocation and pension plan asset allocation | |||
Estimated fair value of plan assets | 60 | 71 | |
Reconciliation of fair value of plan assets: | |||
Fair value of plan assets at beginning of year | 71 | ||
Fair value of plan assets at end of year | 60 | 71 | |
Defined benefit pension plan | Foreign equity securities | Level 1 | |||
Target allocation and pension plan asset allocation | |||
Estimated fair value of plan assets | 60 | 71 | |
Reconciliation of fair value of plan assets: | |||
Fair value of plan assets at beginning of year | 71 | ||
Fair value of plan assets at end of year | $ 60 | 71 | |
Defined benefit pension plan | Fixed income | |||
Target allocation and pension plan asset allocation | |||
Target Allocations (as a percent) | 20% | ||
Estimated fair value of plan assets | $ 26 | 29 | |
Reconciliation of fair value of plan assets: | |||
Fair value of plan assets at beginning of year | 29 | ||
Fair value of plan assets at end of year | 26 | 29 | |
Defined benefit pension plan | Fixed income | Level 1 | |||
Target allocation and pension plan asset allocation | |||
Estimated fair value of plan assets | 26 | 29 | |
Reconciliation of fair value of plan assets: | |||
Fair value of plan assets at beginning of year | 29 | ||
Fair value of plan assets at end of year | 26 | 29 | |
Defined benefit pension plan | International fixed income mutual funds | |||
Target allocation and pension plan asset allocation | |||
Estimated fair value of plan assets | 11 | 12 | |
Reconciliation of fair value of plan assets: | |||
Fair value of plan assets at beginning of year | 12 | ||
Fair value of plan assets at end of year | 11 | 12 | |
Defined benefit pension plan | International fixed income mutual funds | Level 1 | |||
Target allocation and pension plan asset allocation | |||
Estimated fair value of plan assets | 11 | 12 | |
Reconciliation of fair value of plan assets: | |||
Fair value of plan assets at beginning of year | 12 | ||
Fair value of plan assets at end of year | 11 | 12 | |
Defined benefit pension plan | Money market funds | |||
Target allocation and pension plan asset allocation | |||
Estimated fair value of plan assets | 1 | 2 | |
Reconciliation of fair value of plan assets: | |||
Fair value of plan assets at beginning of year | 2 | ||
Fair value of plan assets at end of year | 1 | 2 | |
Defined benefit pension plan | Money market funds | Level 1 | |||
Target allocation and pension plan asset allocation | |||
Estimated fair value of plan assets | 1 | 2 | |
Reconciliation of fair value of plan assets: | |||
Fair value of plan assets at beginning of year | 2 | ||
Fair value of plan assets at end of year | $ 1 | $ 2 | |
Defined benefit pension plan | Minimum | |||
Weighted-average assumptions | |||
Discount rate used to determine obligations (as a percent) | 5.30% | 1.20% | 0.70% |
Discount rate used to determine net periodic benefit cost (as a percent) | 1.20% | 0.70% | 2.15% |
Defined benefit pension plan | Maximum | |||
Weighted-average assumptions | |||
Discount rate used to determine obligations (as a percent) | 5.40% | 2.90% | 2.60% |
Discount rate used to determine net periodic benefit cost (as a percent) | 2.90% | 2.60% | 3.50% |
Employee Benefits - Defined Con
Employee Benefits - Defined Contribution Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Benefits | |||
Contribution expense | $ 9 | $ 4 | $ 4 |
Deferred compensation plan | |||
Deferred compensation plan assets included in other current assets | 26 | 29 | |
Deferred compensation plan liability included in other liabilities | $ 23 | $ 26 |
Derivatives and Fair Value of_3
Derivatives and Fair Value of Financial Instruments - Assets and Liabilities at Fair Value (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jul. 02, 2022 | |
Assets: | ||||
Trading securities | $ 1,086 | $ 1,416 | ||
Long term investments | 185 | 156 | ||
Investments | ||||
Amount invested | 117 | 98 | $ 47 | |
Mimran | ||||
Contingent consideration | ||||
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 | $ 26 | $ 6 | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Current | Other Assets, Current | ||
Margin account | $ 3 | $ 28 | ||
Liabilities: | ||||
Derivatives | $ 2 | $ 5 | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Current | Other Liabilities, Current | ||
Foreign currencies | ||||
Assets: | ||||
Derivatives | $ 5 | |||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Current | Other Assets, Current | ||
Liabilities: | ||||
Derivatives | $ 10 | $ 5 | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Current | Other Liabilities, Current | ||
BDC | ||||
Investments | ||||
Liquidity discount | $ 1 | |||
Domestic debt securities | ||||
Assets: | ||||
Trading securities | $ 399 | $ 542 | ||
Domestic equity securities | ||||
Assets: | ||||
Trading securities | 433 | 472 | ||
Foreign equity securities | ||||
Assets: | ||||
Trading securities | 169 | 193 | ||
Foreign debt securities. | ||||
Assets: | ||||
Trading securities | 66 | 133 | ||
Money market funds held in trading accounts | ||||
Assets: | ||||
Trading securities | 12 | 59 | ||
Recurring basis | Level 1 | ||||
Assets: | ||||
Derivatives | $ 26 | $ 6 | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Current | Other Assets, Current | ||
Total assets | $ 827 | $ 1,007 | ||
Liabilities: | ||||
Derivatives | $ 2 | $ 5 | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Current | Other Liabilities, Current | ||
Total liabilities | $ 2 | $ 5 | ||
Recurring basis | Level 2 | ||||
Assets: | ||||
Derivatives | $ 5 | |||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Current | |||
Total assets | 374 | $ 449 | ||
Liabilities: | ||||
Derivatives | $ 10 | $ 5 | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Current | Other Liabilities, Current | ||
Total liabilities | $ 10 | $ 5 | ||
Recurring basis | Level 3 | ||||
Assets: | ||||
Total assets | 81 | |||
Liabilities: | ||||
Contingent consideration | 19 | 18 | ||
Total liabilities | 19 | 18 | ||
Recurring basis | Other current assets | Level 1 | ||||
Assets: | ||||
Trading securities | 25 | 28 | ||
Recurring basis | Other current assets | Level 2 | ||||
Assets: | ||||
Trading securities | 1 | 1 | ||
Recurring basis | BDC | Level 2 | ||||
Assets: | ||||
Long term investments | 63 | |||
Recurring basis | BDC | Level 3 | ||||
Assets: | ||||
Long term investments | 81 | |||
Recurring basis | Domestic debt securities | Short-term investments. | Level 1 | ||||
Assets: | ||||
Trading securities | 162 | 247 | ||
Recurring basis | Domestic debt securities | Short-term investments. | Level 2 | ||||
Assets: | ||||
Trading securities | 237 | 295 | ||
Recurring basis | Domestic equity securities | Short-term investments. | Level 1 | ||||
Assets: | ||||
Trading securities | 433 | 472 | ||
Recurring basis | Foreign equity securities | Short-term investments. | Level 1 | ||||
Assets: | ||||
Trading securities | 169 | 193 | ||
Recurring basis | Foreign debt securities. | Short-term investments. | Level 1 | ||||
Assets: | ||||
Trading securities | 2 | |||
Recurring basis | Foreign debt securities. | Short-term investments. | Level 2 | ||||
Assets: | ||||
Trading securities | 66 | 131 | ||
Recurring basis | Money market funds held in trading accounts | Short-term investments. | Level 1 | ||||
Assets: | ||||
Trading securities | 12 | 59 | ||
Recurring basis | Other trading securities | Short-term investments. | Level 2 | ||||
Assets: | ||||
Trading securities | 7 | 17 | ||
Recurring basis | Fair Value | ||||
Assets: | ||||
Derivatives | $ 26 | $ 11 | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Current | Other Assets, Current | ||
Total assets | $ 1,201 | $ 1,537 | ||
Liabilities: | ||||
Contingent consideration | 19 | 18 | ||
Derivatives | $ 12 | $ 10 | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Current | Other Liabilities, Current | ||
Total liabilities | $ 31 | $ 28 | ||
Recurring basis | Fair Value | Other current assets | ||||
Assets: | ||||
Trading securities | 26 | 29 | ||
Recurring basis | Fair Value | BDC | ||||
Assets: | ||||
Long term investments | 63 | 81 | ||
Recurring basis | Fair Value | Domestic debt securities | Short-term investments. | ||||
Assets: | ||||
Trading securities | 399 | 542 | ||
Recurring basis | Fair Value | Domestic equity securities | Short-term investments. | ||||
Assets: | ||||
Trading securities | 433 | 472 | ||
Recurring basis | Fair Value | Foreign equity securities | Short-term investments. | ||||
Assets: | ||||
Trading securities | 169 | 193 | ||
Recurring basis | Fair Value | Foreign debt securities. | Short-term investments. | ||||
Assets: | ||||
Trading securities | 66 | 133 | ||
Recurring basis | Fair Value | Money market funds held in trading accounts | Short-term investments. | ||||
Assets: | ||||
Trading securities | 12 | 59 | ||
Recurring basis | Fair Value | Other trading securities | Short-term investments. | ||||
Assets: | ||||
Trading securities | $ 7 | $ 17 |
Derivatives and Fair Value of_4
Derivatives and Fair Value of Financial Instruments - Instruments and Agreements (Details) lb in Millions, gal in Millions, bu in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) lb bu | Dec. 31, 2021 USD ($) lb gal bu | |
Grain | ||
Derivative commodity instruments | ||
Nonmonetary notional amount | bu | 8 | 1 |
Hogs | ||
Derivative commodity instruments | ||
Nonmonetary notional amount | lb | 16 | |
Soybean oil | ||
Derivative commodity instruments | ||
Nonmonetary notional amount | lb | 26 | 20 |
Heating oil | ||
Derivative commodity instruments | ||
Nonmonetary notional amount | gal | 15 | |
Commodities | ||
Derivative commodity instruments | ||
Gains (losses) on derivatives | $ (45) | $ (20) |
Foreign currencies | ||
Derivative commodity instruments | ||
Notional amounts | $ 190 | 95 |
Interest rate swaps | ||
Derivative commodity instruments | ||
Gains (losses) on derivatives | $ 5 |
Derivatives and Fair Value of_5
Derivatives and Fair Value of Financial Instruments - Gain (Loss) on Derivatives (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Commodities | ||
Amount of gain or (loss) recognized for each type of derivative and its location in the Consolidated Statements of Comprehensive Income | ||
Gains (losses) on derivatives | $ (45) | $ (20) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of Goods and Services Sold | Cost of Goods and Services Sold |
Foreign currencies | Cost of sales | ||
Amount of gain or (loss) recognized for each type of derivative and its location in the Consolidated Statements of Comprehensive Income | ||
Gains (losses) on derivatives | $ (17) | $ (2) |
Foreign currencies | Foreign currency gains (losses), net | ||
Amount of gain or (loss) recognized for each type of derivative and its location in the Consolidated Statements of Comprehensive Income | ||
Gains (losses) on derivatives | $ 6 | 4 |
Interest rate swaps | ||
Amount of gain or (loss) recognized for each type of derivative and its location in the Consolidated Statements of Comprehensive Income | ||
Gains (losses) on derivatives | $ 5 | |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Expense | Interest Expense |
Derivatives and Fair Value of_6
Derivatives and Fair Value of Financial Instruments - Fair Value of Derivatives (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Commodities | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Asset Derivatives | $ 26 | $ 6 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Current | Other Assets, Current |
Liability Derivatives | $ 2 | $ 5 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Current | Other Liabilities, Current |
Margin account | $ 3 | $ 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 | $ 27 | 29 |
Foreign currencies | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Asset Derivatives | $ 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 |
Interest rate swaps | Maximum | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Credit risk associated with derivative contracts | $ 1 |
Stockholders' Equity and Accu_2
Stockholders' Equity and Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Components of and changes in accumulated other comprehensive loss, net of tax | |||
Balance at beginning of the period | $ (432) | $ (471) | $ (440) |
Other comprehensive income (loss) before reclassifications | (4) | 26 | (45) |
Amounts reclassified from AOCL to net earnings | 14 | 13 | 14 |
Other comprehensive income (loss), net of tax | 10 | 39 | (31) |
Balance at end of the period | (422) | (432) | $ (471) |
Accounts receivable | 923 | 762 | |
Common shares repurchased (in shares) | 4,069 | ||
Repurchase of common stock | $ 13 | ||
Cumulative Foreign Currency Translation Adjustment | |||
Components of and changes in accumulated other comprehensive loss, net of tax | |||
Balance at beginning of the period | (368) | (376) | (369) |
Other comprehensive income (loss) before reclassifications | (42) | 8 | (7) |
Amounts reclassified from AOCL to net earnings | 9 | ||
Other comprehensive income (loss), net of tax | (33) | 8 | (7) |
Balance at end of the period | (401) | (368) | (376) |
Cumulative Unrecognized Pension Cost | |||
Components of and changes in accumulated other comprehensive loss, net of tax | |||
Balance at beginning of the period | (64) | (95) | (71) |
Other comprehensive income (loss) before reclassifications | 38 | 18 | (38) |
Amounts reclassified from AOCL to net earnings | 5 | 13 | 14 |
Other comprehensive income (loss), net of tax | 43 | 31 | (24) |
Balance at end of the period | $ (21) | $ (64) | $ (95) |
All components of AOCL except cumulative foreign currency translation adjustments | |||
Components of and changes in accumulated other comprehensive loss, net of tax | |||
Effective income tax rate (as a percent) | 25% | 25% | 25% |
Certain subsidiaries | |||
Components of and changes in accumulated other comprehensive loss, net of tax | |||
Unrecognized pension cost related to employees at certain subsidiaries | $ 5 | $ 24 | $ 34 |
Certain subsidiaries | Cumulative Unrecognized Pension Cost | |||
Components of and changes in accumulated other comprehensive loss, net of tax | |||
Tax benefit recorded on unrecognized pension cost | $ 0 | $ 0 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Components of earnings before income taxes | |||
United States | $ (205) | $ 337 | $ 138 |
Foreign | 782 | 298 | 148 |
Total earnings before income taxes excluding non-controlling interests | 577 | 635 | 286 |
Net income attributable to noncontrolling interests | 2 | 1 | 0 |
Earnings before income taxes | 579 | 636 | 286 |
Current: | |||
Federal | 54 | 35 | (50) |
Foreign | 42 | 33 | 35 |
State and local | 12 | 10 | 2 |
Deferred: | |||
Federal | (94) | 3 | 26 |
Foreign | 5 | (7) | (3) |
State and local | (22) | (9) | (7) |
Income tax expense (benefit) | (3) | 65 | 3 |
Unrealized changes in other comprehensive income (loss) | 8 | 8 | $ (3) |
Total income taxes | $ 5 | $ 73 | |
Income taxes | |||
Federal income tax rate (as a percent) | 21% | 21% | 21% |
Reconciliation of computed expected tax expense excluding non-controlling interest to income tax expense attributable to continuing operations | |||
Computed "expected" tax expense (benefit) excluding non-controlling interest | $ 121 | $ 133 | $ 60 |
Adjustments to tax expense attributable to: | |||
Foreign tax differences | (60) | (35) | 10 |
Tax-exempt income | (17) | (15) | (17) |
Foreign entity repatriation | 10 | ||
Federal tax credits | (57) | (39) | (34) |
Unrecognized tax benefits | 7 | 14 | |
Valuation allowance | (7) | 6 | (14) |
Other | 1 | (2) | |
Income tax expense (benefit) | (3) | 65 | 3 |
Income taxes receivable | 54 | 46 | |
Income taxes payable | 18 | 13 | |
Deferred income tax liabilities: | |||
Depreciation | 106 | 121 | |
Domestic partnerships | 59 | 62 | |
Unrealized gain on investments | 13 | ||
Inventory | 14 | 7 | |
Deferred tax liability for incremental tax costs associated with future potential repatriation of previously-taxed foreign undistributed earnings | 13 | ||
Other | 2 | 4 | |
Gross deferred income tax liabilities | 194 | 207 | |
Deferred income tax assets: | |||
Reserves/accruals | 68 | 66 | |
Sec. 174 Capitalization | 75 | ||
Unrealized loss on investments | 40 | ||
Deferred earnings of foreign subsidiaries | 3 | ||
Net operating and capital loss carry-forwards | 28 | 67 | |
Tax credit carry-forwards | 22 | 32 | |
Other | 8 | 5 | |
Gross deferred income tax assets | 244 | 170 | |
Less: Valuation allowance | 33 | 60 | |
Net deferred income tax asset | (17) | ||
Net deferred income tax liability | 97 | ||
Accrued interest and penalties on uncertain tax positions | 9 | 10 | |
Unrecognized tax benefits, if recognized, would affect the effective tax rate | 51 | 41 | |
Reconciliation of the beginning and ending amount of unrecognized tax benefits | |||
Balance at the beginning of the year | 41 | 30 | |
Additions for uncertain tax positions of prior years | 1 | 7 | |
Decreases for uncertain tax positions of prior years | (4) | (1) | |
Additions for uncertain tax positions of current year | 23 | 6 | |
Lapse of statute of limitations | (10) | (1) | |
Balance at the end of the year | 51 | 41 | 30 |
Other commitments | |||
Funding of long-term investment | 117 | 98 | 47 |
Investment tax credits | $ 46 | 24 | 22 |
Minimum | |||
Reconciliation of the beginning and ending amount of unrecognized tax benefits | |||
Number of tax years typically subject to examination for major non-US jurisdictions | 3 years | ||
Maximum | |||
Reconciliation of the beginning and ending amount of unrecognized tax benefits | |||
Number of tax years typically subject to examination for major non-US jurisdictions | 6 years | ||
Allowance for Deferred Tax Assets: | |||
Movement in valuation and qualifying accounts | |||
Balance at beginning of year | $ 60 | 55 | 68 |
Charge (credit) to expense | (27) | 5 | (13) |
Balance at end of year | 33 | 60 | 55 |
Refined coal processing plant | |||
Other commitments | |||
Funding of long-term investment | 11 | 17 | |
Solar Renewable Energy Project | |||
Other commitments | |||
Funding of long-term investment | 52 | ||
Investment tax credits | 46 | ||
Marine | |||
Deferred income tax liabilities: | |||
Deferred tax liability for incremental tax costs associated with future potential repatriation of previously-taxed foreign undistributed earnings | 13 | ||
Pork | |||
Reconciliation of the beginning and ending amount of unrecognized tax benefits | |||
Gross non-taxable revenue related to federal blender's credit | 79 | 69 | $ 79 |
Receivable from the U.S. government related to federal blender's credits included in other receivables | 53 | $ 20 | |
Foreign | |||
Reconciliation of the beginning and ending amount of unrecognized tax benefits | |||
Net operating loss carry-forwards (NOLs) | 57 | ||
State | |||
Reconciliation of the beginning and ending amount of unrecognized tax benefits | |||
Net operating loss carry-forwards (NOLs) | 181 | ||
Tax credit carry-forwards | $ 27 |
Segment Information - Pork and
Segment Information - Pork and Power Segments (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 USD ($) segment item | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jul. 02, 2022 | |
Segment Information | ||||
Number of reportable segments | segment | 6 | |||
Total cash consideration | $ 58 | $ 7 | $ 27 | |
Goodwill | 154 | 163 | 167 | |
Pork | ||||
Segment Information | ||||
Goodwill | 22 | 18 | 18 | |
Pork | The Maschhoffs Hog Inventory And Hog Farms | ||||
Segment Information | ||||
Total cash consideration | 58 | |||
Inventories | 9 | |||
Property, plant and equipment | 45 | |||
Goodwill | $ 4 | |||
Pork | Hitch Pork Producers, Inc. | ||||
Segment Information | ||||
Total cash consideration | 27 | |||
Power | ||||
Segment Information | ||||
Number of power of generating barges | item | 2 | |||
Commodity Trading and Milling | ||||
Segment Information | ||||
Goodwill | $ 132 | $ 145 | $ 149 | |
Commodity Trading and Milling | Feed manufacturer and hog producer In Ecuador | ||||
Segment Information | ||||
Percentage of ownership | 80% | 50% | ||
Commodity Trading and Milling | Feed manufacturer and hog producer In Ecuador | ||||
Segment Information | ||||
Total cash consideration | $ 7 | |||
Working capital | 30 | |||
Property, plant and equipment | $ 17 | |||
Commodity Trading and Milling | Disposed of by sale | Brazil | ||||
Segment Information | ||||
Proceeds from sale, net of cash sold | $ 6 | |||
Commodity Trading and Milling | Disposed of by sale | Protein and commodity trading company | ||||
Segment Information | ||||
Percentage of ownership interest sold | 20% |
Segment Information - Specific
Segment Information - Specific Financial Information About Each Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Information | |||
Sales to External Customers | $ 11,243 | $ 9,229 | $ 7,126 |
Operating Income (Loss) | 657 | 458 | 245 |
Total assets | 7,902 | 7,503 | |
Capital expenditures | 474 | 460 | 259 |
Pork | |||
Segment Information | |||
Sales to External Customers | 2,605 | 2,481 | 1,941 |
Total assets | 2,698 | 2,265 | |
Capital expenditures | 315 | 343 | 207 |
Commodity Trading and Milling | |||
Segment Information | |||
Sales to External Customers | 6,290 | 5,154 | 3,994 |
Total assets | 1,915 | 2,054 | |
Capital expenditures | 14 | 17 | 8 |
Marine | |||
Segment Information | |||
Sales to External Customers | 2,043 | 1,396 | 1,005 |
Total assets | 882 | 749 | |
Capital expenditures | 136 | 44 | 10 |
Sugar and Alcohol | |||
Segment Information | |||
Sales to External Customers | 129 | 123 | 106 |
Total assets | 165 | 155 | |
Capital expenditures | 9 | 8 | 5 |
Power | |||
Segment Information | |||
Sales to External Customers | 158 | 60 | 64 |
Total assets | 342 | 359 | |
Capital expenditures | 43 | 27 | |
Turkey. | |||
Segment Information | |||
Total assets | 350 | 245 | |
All Other | |||
Segment Information | |||
Sales to External Customers | 18 | 15 | 16 |
Total assets | 6 | 7 | |
Capital expenditures | 1 | 2 | |
Products | |||
Segment Information | |||
Sales to External Customers | 8,979 | 7,714 | 5,993 |
Products | Pork | |||
Segment Information | |||
Sales to External Customers | 1,954 | 2,091 | 1,682 |
Products | Commodity Trading and Milling | |||
Segment Information | |||
Sales to External Customers | 6,275 | 5,139 | 3,981 |
Products | Sugar and Alcohol | |||
Segment Information | |||
Sales to External Customers | 123 | 113 | 95 |
Products | All Other | |||
Segment Information | |||
Sales to External Customers | 16 | 14 | 16 |
Transportation | Pork | |||
Segment Information | |||
Sales to External Customers | 11 | 8 | 8 |
Transportation | Marine | |||
Segment Information | |||
Sales to External Customers | 2,043 | 1,396 | 1,005 |
Transportation | All Other | |||
Segment Information | |||
Sales to External Customers | 2 | 1 | |
Energy | Pork | |||
Segment Information | |||
Sales to External Customers | 611 | 357 | 219 |
Energy | Sugar and Alcohol | |||
Segment Information | |||
Sales to External Customers | 6 | 10 | 11 |
Energy | Power | |||
Segment Information | |||
Sales to External Customers | 158 | 60 | 64 |
Other | |||
Segment Information | |||
Sales to External Customers | 164 | 70 | 75 |
Other | Pork | |||
Segment Information | |||
Sales to External Customers | 29 | 25 | 32 |
Other | Commodity Trading and Milling | |||
Segment Information | |||
Sales to External Customers | 15 | 15 | 13 |
Segment Totals | |||
Segment Information | |||
Sales to External Customers | 11,243 | 9,229 | 7,126 |
Operating Income (Loss) | 672 | 479 | 276 |
Total assets | 6,358 | 5,834 | |
Capital expenditures | 474 | 456 | 259 |
Segment Totals | Pork | |||
Segment Information | |||
Operating Income (Loss) | (96) | 227 | 131 |
Segment Totals | Commodity Trading and Milling | |||
Segment Information | |||
Operating Income (Loss) | 151 | 61 | 118 |
Segment Totals | Marine | |||
Segment Information | |||
Operating Income (Loss) | 591 | 197 | 21 |
Segment Totals | Sugar and Alcohol | |||
Segment Information | |||
Operating Income (Loss) | 11 | 2 | 2 |
Segment Totals | Power | |||
Segment Information | |||
Operating Income (Loss) | 14 | (9) | 3 |
Segment Totals | All Other | |||
Segment Information | |||
Operating Income (Loss) | 1 | 1 | 1 |
Segment Totals | Products | |||
Segment Information | |||
Sales to External Customers | 8,368 | 7,357 | 5,774 |
Segment Totals | Transportation | |||
Segment Information | |||
Sales to External Customers | 2,056 | 1,405 | 1,013 |
Segment Totals | Energy | |||
Segment Information | |||
Sales to External Customers | 775 | 427 | 294 |
Segment Totals | Other | |||
Segment Information | |||
Sales to External Customers | 44 | 40 | 45 |
Corporate Items | |||
Segment Information | |||
Operating Income (Loss) | (15) | (21) | $ (31) |
Total assets | $ 1,544 | 1,669 | |
Capital expenditures | $ 4 |
Segment Information - Geographi
Segment Information - Geographic Concentration (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Concentration Risk | |||
Net sales | $ 11,243 | $ 9,229 | $ 7,126 |
Net sales | Geographic concentration | Colombia | |||
Concentration Risk | |||
Net sales | $ 1,578 | $ 1,144 | $ 812 |
Concentration risk (as a percent) | 14% | 12% | 11% |
Net sales | Geographic concentration | South Africa | |||
Concentration Risk | |||
Net sales | $ 992 | $ 917 | $ 743 |
Concentration risk (as a percent) | 9% | 10% | 10% |
Segment Information - Geograp_2
Segment Information - Geographic Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Geographic Information | |||
Net sales | $ 11,243 | $ 9,229 | $ 7,126 |
Property, plant and equipment | 2,246 | 1,892 | |
United States | |||
Geographic Information | |||
Property, plant and equipment | 1,682 | 1,331 | |
Dominican Republic | |||
Geographic Information | |||
Property, plant and equipment | 281 | 297 | |
Argentina | |||
Geographic Information | |||
Property, plant and equipment | 59 | 59 | |
China | |||
Geographic Information | |||
Property, plant and equipment | 35 | ||
Senegal | |||
Geographic Information | |||
Property, plant and equipment | 32 | 40 | |
Ivory Coast | |||
Geographic Information | |||
Property, plant and equipment | 33 | 39 | |
Zambia | |||
Geographic Information | |||
Property, plant and equipment | 31 | 30 | |
All Other. | |||
Geographic Information | |||
Property, plant and equipment | $ 93 | $ 96 |