Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 29, 2019 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 1-3390 | ||
Entity Registrant Name | SEABOARD CORPORATION | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 04-2260388 | ||
Entity Address, Address Line One | 9000 West 67th Street | ||
Entity Address, City or Town | Merriam | ||
Entity Address, State or Province | KS | ||
Entity Address, Postal Zip Code | 66202 | ||
City Area Code | 913 | ||
Local Phone Number | 676-8800 | ||
Title of 12(b) Security | Common Stock $1.00 Par Value | ||
Trading Symbol | SEB | ||
Security Exchange Name | NYSEAMER | ||
Entity Well-known Seasoned Issuer | No | ||
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 | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 1,164,718 | ||
Entity Public Float | $ 1,057,859,563 | ||
Entity Central Index Key | 0000088121 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net sales: | |||
Total net sales | $ 6,840 | $ 6,583 | $ 5,809 |
Cost of sales and operating expenses: | |||
Total cost of sales and operating expenses | 6,400 | 6,060 | 5,260 |
Gross income | 440 | 523 | 549 |
Selling, general and administrative expenses | 336 | 314 | 309 |
Operating income | 104 | 209 | 240 |
Other income (expense): | |||
Interest expense | (36) | (44) | (29) |
Interest income | 28 | 11 | 15 |
Interest income from affiliates | 2 | 3 | 22 |
Loss from affiliates | (41) | (44) | (7) |
Other investment income (loss), net | 225 | (152) | 177 |
Foreign currency gains, net | 4 | 14 | |
Miscellaneous, net | 2 | (3) | (5) |
Total other income (loss), net | 180 | (225) | 187 |
Earnings (loss) before income taxes | 284 | (16) | 427 |
Income tax expense | (1) | (1) | (181) |
Net earnings (loss) | 283 | (17) | 246 |
Less: Net loss attributable to noncontrolling interests | 1 | ||
Net earnings (loss) attributable to Seaboard | $ 283 | $ (17) | $ 247 |
Earnings (loss) per common share | $ 242.78 | $ (14.61) | $ 211.01 |
Average number of shares outstanding (in shares) | 1,165,758 | 1,170,501 | 1,170,550 |
Other comprehensive income (loss), net of income tax benefit (expense) of $4, $(2), and $3: | |||
Foreign currency translation adjustment | $ (20) | $ (53) | $ (6) |
Unrealized gain on investments | 5 | ||
Unrecognized pension cost | (10) | 3 | (4) |
Other comprehensive loss, net of tax | (30) | (50) | (5) |
Comprehensive income (loss) | 253 | (67) | 241 |
Less: Comprehensive loss attributable to noncontrolling interests | 1 | 1 | |
Comprehensive income (loss) attributable to Seaboard | 253 | (66) | 242 |
Products | |||
Net sales: | |||
Total net sales | 5,610 | 5,334 | 4,693 |
Cost of sales and operating expenses: | |||
Total cost of sales and operating expenses | 5,322 | 4,990 | 4,298 |
Services | |||
Net sales: | |||
Total net sales | 1,104 | 1,116 | 1,009 |
Cost of sales and operating expenses: | |||
Total cost of sales and operating expenses | 989 | 971 | 879 |
Other | |||
Net sales: | |||
Total net sales | 126 | 133 | 107 |
Cost of sales and operating expenses: | |||
Total cost of sales and operating expenses | $ 89 | $ 99 | $ 83 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other comprehensive income (loss), income tax benefit | $ 4 | $ (2) | $ 3 |
Products | |||
Sales to affiliates | 1,346 | 1,282 | 1,123 |
Services | |||
Sales to affiliates | $ 18 | $ 12 | $ 7 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 125 | $ 194 |
Short-term investments | 1,434 | 1,336 |
Receivables: | ||
Trade | 370 | 392 |
Due from affiliates | 109 | 111 |
Other | 195 | 81 |
Total receivables | 674 | 584 |
Allowance for doubtful accounts | (28) | (33) |
Net receivables | 646 | 551 |
Inventories | 1,022 | 815 |
Prepaid expenses | 48 | 55 |
Other current assets | 75 | 76 |
Total current assets | 3,350 | 3,027 |
Net property, plant and equipment | 1,431 | 1,160 |
Operating lease right of use assets, net | 446 | |
Investments in and advances to affiliates | 735 | 804 |
Goodwill | 164 | 167 |
Intangible assets, net | 58 | 69 |
Other non-current assets | 101 | 80 |
Total assets | 6,285 | 5,307 |
Current liabilities: | ||
Lines of credit | 246 | 148 |
Current maturities of long-term debt | 62 | 39 |
Accounts payable (includes $14 and $20 to affiliates) | 368 | 238 |
Accrued compensation and benefits | 131 | 123 |
Deferred revenue (includes $32 and $31 to affiliates) | 80 | 70 |
Operating lease liabilities | 104 | |
Accrued voyage costs | 68 | 58 |
Other current liabilities | 130 | 108 |
Total current liabilities | 1,189 | 784 |
Long-term debt, less current maturities | 730 | 739 |
Long-term operating lease liabilities | 379 | |
Accrued pension liability | 159 | 136 |
Deferred income taxes | 76 | 127 |
Long-term income tax liability related to the 2017 Tax Act mandatory deemed repatriated earnings | 62 | 73 |
Other liabilities | 136 | 119 |
Total non-current liabilities | 1,542 | 1,194 |
Commitments and contingent liabilities | ||
Stockholders' equity: | ||
Common stock of $1 par value. Authorized 1,250,000 shares; issued and outstanding 1,164,848 shares in 2019 and 1,169,217 shares in 2018 | 1 | 1 |
Accumulated other comprehensive loss | (440) | (410) |
Retained earnings | 3,983 | 3,727 |
Total Seaboard stockholders' equity | 3,544 | 3,318 |
Noncontrolling interests | 10 | 11 |
Total equity | 3,554 | 3,329 |
Total liabilities and stockholders' equity | $ 6,285 | $ 5,307 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Consolidated Balance Sheets | ||
Payables due to affiliates | $ 14 | $ 20 |
Deferred revenue to affiliates | $ 32 | $ 31 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized shares | 1,250,000 | 1,250,000 |
Common stock, issued shares | 1,164,848 | 1,169,217 |
Common stock, outstanding shares | 1,164,848 | 1,169,217 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net earnings (loss) | $ 283 | $ (17) | $ 246 |
Adjustments to reconcile net earnings (loss) to cash from operating activities: | |||
Depreciation and amortization | 138 | 134 | 118 |
Deferred income taxes | (55) | (20) | 39 |
Mandatory deemed repatriation tax | (11) | 14 | 112 |
Loss from affiliates | 41 | 44 | 7 |
Dividends received from affiliates | 10 | 23 | 24 |
Other investment loss (income), net | (225) | 152 | (177) |
Other, net | 7 | 5 | (9) |
Changes in assets and liabilities, net of acquisitions: | |||
Receivables, net of allowance | (84) | (58) | (12) |
Inventories | (152) | (34) | (21) |
Prepaid expenses | 5 | 31 | (51) |
Other assets | 22 | 13 | (8) |
Current liabilities, exclusive of debt | 192 | (49) | (23) |
Net cash from operating activities | 171 | 238 | 245 |
Cash flows from investing activities: | |||
Purchase of short-term investments | (1,026) | (1,130) | (767) |
Proceeds from the sale of short-term investments | 973 | 1,191 | 606 |
Proceeds from the maturity of short-term investments | 185 | 53 | 59 |
Capital expenditures | (349) | (162) | (173) |
Proceeds from the sale of non-consolidated affiliate | 24 | ||
Acquisition of businesses | (7) | (264) | (54) |
Investments in and advances to affiliates, net | (21) | (26) | (87) |
Principal payments received on notes receivable from affiliates | 8 | 4 | 167 |
Purchase of long-term investments | (38) | (21) | (12) |
Other, net | (2) | 6 | (5) |
Net cash from investing activities | (253) | (349) | (266) |
Cash flows from financing activities: | |||
Lines of credit, net | 34 | 45 | |
Proceeds from long-term debt | 43 | 251 | 38 |
Principal payments of long-term debt | (35) | (46) | (17) |
Repurchase of common stock | (17) | (5) | |
Dividends paid | (10) | (7) | (7) |
Other, net | (4) | (3) | (1) |
Net cash from financing activities | 11 | 190 | 58 |
Effect of exchange rate changes on cash and cash equivalents | 2 | (1) | 2 |
Net change in cash and cash equivalents | (69) | 78 | 39 |
Cash and cash equivalents at beginning of year | 194 | 116 | 77 |
Cash and cash equivalents at end of year | 125 | 194 | 116 |
Cash paid during the period for: | |||
Interest, net of interest capitalized | 36 | 43 | 30 |
Income taxes, net of refunds | $ 31 | $ 35 | $ 32 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Common Stock | Accumulated Other Comprehensive Loss | Retained Earnings | Noncontrolling Interest | Total |
Balances at Dec. 31, 2016 | $ 1 | $ (304) | $ 3,465 | $ 13 | $ 3,175 |
Increase (Decrease) in Stockholders' Equity | |||||
Reduction to noncontrolling interests | (1) | (1) | |||
Comprehensive income: | |||||
Net earnings (loss) | 247 | (1) | 246 | ||
Other comprehensive loss, net of tax | (5) | (5) | |||
Dividends on common stock ($6.00/share for 2017 and 2018 and $9.00/share for 2019) | (7) | (7) | |||
Balances at Dec. 31, 2017 | 1 | (354) | 3,750 | 11 | 3,408 |
Increase (Decrease) in Stockholders' Equity | |||||
Adoption of accounting guidance | (45) | 45 | |||
Addition to noncontrolling interests | 4 | 4 | |||
Reduction to noncontrolling interests | (1) | (3) | (4) | ||
Comprehensive income: | |||||
Net earnings (loss) | (17) | (17) | |||
Other comprehensive loss, net of tax | (49) | (1) | (50) | ||
Repurchase of common stock | (5) | (5) | |||
Dividends on common stock ($6.00/share for 2017 and 2018 and $9.00/share for 2019) | (7) | (7) | |||
Balances at Dec. 31, 2018 | 1 | (410) | 3,727 | 11 | 3,329 |
Increase (Decrease) in Stockholders' Equity | |||||
Adoption of accounting guidance | ASU 2016-01 | (7) | ||||
Adoption of accounting guidance | (7) | 7 | |||
Reduction to noncontrolling interests | (1) | (1) | |||
Comprehensive income: | |||||
Net earnings (loss) | 283 | 283 | |||
Other comprehensive loss, net of tax | (30) | (30) | |||
Repurchase of common stock | (17) | (17) | |||
Dividends on common stock ($6.00/share for 2017 and 2018 and $9.00/share for 2019) | (10) | (10) | |||
Balances at Dec. 31, 2019 | $ 1 | $ (440) | $ 3,983 | $ 10 | $ 3,554 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Statements of Changes in Equity | |||
Dividends on common stock (in dollars per share) | $ 9 | $ 6 | $ 6 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 1 - Summ ary of Significant Accounting Policies Operations of Seaboard Corporation and its Subsidiaries Seaboard Corporation and its subsidiaries (collectively, “Seaboard”) together comprise a diverse global agribusiness and transportation company. In the United States (“U.S.”), Seaboard is primarily engaged in hog production and pork processing and ocean transportation. Overseas, Seaboard is primarily engaged in commodity merchandising, grain processing, sugar and alcohol production and electric power generation. Seaboard also has an equity method investment in Butterball, LLC (“Butterball”), a producer and processor of branded and non-branded turkey products. Approximately 77% of the outstanding common stock of Seaboard is collectively owned by Seaboard Flour LLC and SFC Preferred, LLC. Principles of Consolidation and Investments in Affiliates 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. Investments in non-controlled affiliates where we have significant influence are accounted for by the equity method. Financial information from certain foreign subsidiaries and affiliates is reported on a one Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include those related to allowance for doubtful accounts, valuation of inventories, impairment of long-lived assets, potential write down related to investments in and advances to affiliates and notes receivable from affiliates, income taxes, lease liabilities and right of use (“ROU”) assets and accrued pension liability. Actual results could differ from those estimates. 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. Certain of the major contracts and transactions, however, are denominated in U.S. dollars. In addition, the value of the U.S. dollar fluctuates in relation to the currencies of countries where certain of Seaboard’s foreign subsidiaries and affiliates primarily conduct business. These fluctuations result in exchange gains and losses. The activities of these foreign subsidiaries and affiliates are primarily conducted with U.S. subsidiaries or operate in hyper-inflationary environments. As a result, the financial statements of certain foreign subsidiaries and affiliates are re-measured using the U.S. dollar as the functional currency. Certain CT&M segment consolidated subsidiaries located in Brazil, Canada, Guyana, Ivory Coast, Senegal, South Africa and Zambia use local currency as their functional currency. Also, certain non-controlled, non-consolidated affiliates of the CT&M and Sugar and Alcohol segments 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). For the consolidated subsidiaries and non-consolidated affiliates, U.S. dollar denominated net asset or liability conversions to the local currency are recorded through income. GAAP requires the use of highly inflationary accounting for countries whose cumulative three-year inflation exceeds 100%. In the second quarter of 2018, the Argentine peso rapidly devalued relative to the U.S. dollar, which along with increased inflation, indicated that the three-year cumulative inflation in that country exceeded 100%. As a result, Seaboard adopted highly inflationary accounting as of July 1, 2018 for Seaboard’s Sugar and Alcohol segment. Under highly inflationary accounting, the Sugar and Alcohol segment’s functional currency became the U.S. dollar, and its income statement and balance sheet are measured in U.S. dollars using both current and historical rates of exchange. The effect of changes in exchange rates on peso-denominated monetary assets and liabilities are reflected in foreign currency gains (losses), net. For the years ended December 31, 2019 and 2018, Seaboard recognized $(3) million and $9 million in foreign currency gains (losses) related to the adoption of highly inflationary accounting as a result of its net monetary liability position. Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, management considers all demand deposits, overnight investments and other investments with original maturities less than three months as cash equivalents. Supplemental Cash Flow Information For the year ended December 31, 2019, cash paid for amounts included in the measurement of operating lease liabilities was $137 million, all included in net cash from operating activities. Cash paid for amounts included in the measurement of finance lease liabilities was $3 million, with principal payments of $2 million included in financing activities and interest of $1 million included in operating activities. Seaboard reports the amortization of ROU assets and the change in operating lease liabilities in other liabilities, exclusive of debt in the consolidated statement of cash flows. Right of use assets obtained in exchange for new and modified operating and finance lease liabilities were $95 million and $46 million, respectively, for the year ended December 31, 2019. Other non-cash activities were related to the non-cash consideration paid in the acquisitions discussed further in Note 2, including incurrence of debt and contingent consideration. Short-Term Investments Short-term investments are categorized as trading securities and reported at their estimated fair value with any unrealized gains and losses included in other investment income (loss), net in the consolidated statements of comprehensive income. Purchases and sales are recorded on a settlement date basis, and gains and losses on investment sales are generally based on the specific identification method. Short-term investments are retained for future use in the business. Accounts Receivable Accounts receivable are recorded at the invoiced amount and generally do not bear interest. The Power segment, however, collects interest on certain past due accounts, and the Commodity Trading and Milling (“CT&M”) segment provides extended payment terms for certain customers in certain countries due to local market conditions. The allowance for doubtful accounts is Seaboard’s best estimate of the amount of probable credit losses. For most operating segments, Seaboard uses a specific identification approach to determine, in management’s judgment, the collection value of certain past due accounts based on contractual terms. For the Marine segment, the allowance for doubtful accounts is based on an aging percentage methodology primarily based on historical write-off experience. Seaboard reviews its allowance for doubtful accounts monthly. Management believes its allowance for doubtful accounts is adequate and reduces receivables recorded to their expected net realizable value. As of December 31, 2019 and 2018, Seaboard had gross non-affiliate foreign receivables of approximately $309 million and $327 million, respectively, which generally represent more of a collection risk than the domestic receivables, although as of December 31, 2019 no individual material amounts were deemed to have a heightened risk of collectability. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The activity within the allowance for doubtful accounts was as follows: Balance at Balance at (Millions of dollars) beginning of year Provision (a) Net deductions (b) end of year Allowance for Doubtful Accounts: Year Ended December 31, 2019 $ 33 5 (10) $ 28 Year Ended December 31, 2018 $ 29 7 (3) $ 33 Year Ended December 31, 2017 $ 14 16 (1) $ 29 (a) (b) Notes Receivable Seaboard monitors the credit quality of notes receivable, the majority of which are from its affiliates. For notes receivable from affiliates, Seaboard obtains and reviews financial information on a monthly basis and Seaboard representatives serve on their Board of Directors. If it is indicated based on current information and events it is probable that Seaboard will be unable to collect all amounts due according to the contractual terms of the notes receivable and an amount can be reasonably estimated, Seaboard reduces the notes receivable to estimated realizable value. The activity within the allowance for 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, 2019 $ 17 — — $ 17 Year Ended December 31, 2018 $ 16 1 — $ 17 Year Ended December 31, 2017 $ 16 — — $ 16 Inventories Seaboard uses the lower of last-in, first-out (“LIFO”) cost or market for determining inventory cost of hogs, fresh pork products and related materials. Grain, flour and feed inventories at foreign milling operations are valued at the lower of weighted average cost and net realizable value. All other inventories are valued at the lower of first-in, first-out (“FIFO”) cost and net realizable value. Property, Plant and Equipment Property, plant and equipment are carried at cost and are being depreciated on the straight-line method over useful lives, 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 a comparison of the carrying amount of the asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are determined to be impaired, the impairment to be recognized is measured by the amount by which 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 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. Seaboard has elected not to recognize ROU assets and lease liabilities for short-term leases for all classes of underlying assets. Short-term leases are leases with terms greater than 1 month, but less than 12 months. Also, Seaboard elected to account for lease and nonlease maintenance components as a single lease component for all classes of underlying 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 acquisition, or more frequently if circumstances indicate that impairment is likely. Any one event or a combination of events such as change in the business climate, a negative change in relationships with significant customers and changes to strategic decisions, including decisions to expand made in response to economic or competitive conditions, could require an interim assessment prior to the next required annual assessment. If qualitative factors indicate more likely than not an impairment is possible, Seaboard performs its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and would recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. Based on the annual assessment conducted by these reporting units, there were 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, 2017 $ 18 $ 4 $ 22 Acquisition — 148 148 Foreign currency translation — (3) (3) Balance as of December 31, 2018 18 149 167 Acquisition — 1 1 Foreign currency translation — (4) (4) Balance as of December 31, 2019 $ 18 $ 146 $ 164 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, 2019 December 31, 2018 Customer Trade Customer Trade (Millions of dollars) relationships names Total relationships names Total Gross carrying amount $ 50 $ 28 $ 78 $ 50 $ 28 $ 78 Accumulated amortization and currency translation (13) (7) (20) (6) (3) (9) Net carrying amount $ 37 $ 21 $ 58 $ 44 $ 25 $ 69 Amortization of intangible assets was $8 million and $6 million for the years ended December 31, 2019 and 2018, respectively. Using the exchange rates in effect at year-end, estimated amortization of intangible assets as of December 31, 2019 was as follows: $8 million in 2020, $8 million in 2021, $8 million in 2022, $8 million in 2023, $8 million in 2024 and $18 million thereafter. Accrued Self-Insurance Seaboard is self-insured for certain levels of workers’ compensation, health care coverage, property damage, vehicle, product recall and general liability. The cost of these self-insurance programs is accrued based upon estimated settlements for known and anticipated claims. Changes in estimates to previously recorded reserves are reflected in current operating results. Asset Retirement Obligation Seaboard has recorded long-lived assets and a related liability for the asset retirement obligation costs associated with the closure of the hog lagoons it is legally obligated to close in the future should Seaboard cease operations or plan to close such lagoons voluntarily in accordance with a changed operating plan. 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 non-current other liabilities in the consolidated balance sheets with the retirement asset 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) 2019 2018 Beginning balance $ 23 $ 22 Accretion expense 2 1 Ending balance $ 25 $ 23 Revenue Recognition 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. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer . Derivative Instruments and Hedging Activities Seaboard recognizes all derivatives as either assets or liabilities at their fair values. Accounting for changes in the fair value of a derivative depends on its designation and effectiveness. Derivatives qualify for treatment as hedges for accounting purposes when there is a high correlation between the change in fair value of the instrument and the related change in value of the underlying commitment. Additionally, in order to designate a derivative financial instrument as a hedge for accounting purposes, extensive record keeping is required. For derivatives that qualify as hedges for accounting purposes, the change in fair value has no net impact on earnings, to the extent the derivative is considered effective, until the hedged transaction affects earnings. For derivatives that are not designated as hedging instruments for accounting purposes, or for the ineffective portion of a hedging instrument, the change in fair value affects current period net earnings. Seaboard uses derivative instruments to manage various types of market risks, including primarily commodity futures and option contracts, foreign currency exchange agreements, interest rate exchange agreements and equity future contracts. While management believes each of these instruments are primarily entered into in order to effectively manage various market risks, as of December 31, 2019, none Income Taxes 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. 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. Recently Issued Accounting Standards Adopted On January 1, 2019, Seaboard adopted guidance which requires the recognition of ROU assets and lease liabilities for most leases. As a result of this adoption, Seaboard recorded operating lease ROU assets of $460 million, adjusted for the deferred rent liability balance as of December 31, 2018, and lease liabilities of $498 million. The adoption of the new guidance did not have a material impact on the consolidated statement of comprehensive income and the consolidated statement of cash flows. The accounting for finance leases, formerly called capital leases, remained substantially unchanged. Seaboard adopted the new guidance using the effective date method and, therefore, prior period financials were not revised. Seaboard elected the package of practical expedients available upon transition, which permitted Seaboard to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs. See Note 6 for additional details on the impact of adopting this new accounting standard. On January 1, 2018, Seaboard adopted guidance that eliminated cost method accounting and requires measuring equity investments, other than those accounted for using the equity method of accounting, at fair value and recognizing fair value changes in net income if a readily determinable fair value exists. On January 1, 2018 Seaboard early adopted guidance that permitted companies to reclassify stranded tax effects resulting from the Tax Cuts and Job Act from accumulated other comprehensive income (“AOCI”) to retained earnings . Seaboard reclassified $45 million of tax effects from AOCI to retained earnings for the year ended December 31, 2017 . Recently Issued Accounting Standards Not Yet Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued guidance on the measurement of financial instrument credit losses that requires, among other things, the use of a new current expected credit loss ("CECL") model in order to determine the allowance for doubtful accounts with respect to accounts receivable and notes receivable. The CECL model requires estimation of lifetime expected credit loss based on historical experience, current conditions and reasonable supportable forecasts. The new guidance replaces the existing incurred loss model and will be effective for Seaboard on January 1, 2020. Seaboard expects the cumulative-effect adjustment to retained earnings will be less than $5 million. In December 2019, the FASB issued guidance which simplifies the accounting for income taxes by removing certain exceptions to the general principles and improves consistent application of GAAP for other areas by clarifying and amending existing guidance. This guidance is effective for Seaboard on January 1, 2021. Seaboard is evaluating the effect of adopting this new accounting guidance but does not expect adoption will have a material impact on its disclosures. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Acquisitions | |
Acquisitions | Note 2 - Acquisitions On October 28 , Seaboard is currently completing the fair value assessment of the acquired assets and liabilities and any adjustments identified in the measurement period, which will not exceed one year from the acquisition date, will be accounted for prospectively. The following table summarizes the preliminary purchase price allocation resulting from this consolidation: (Millions of dollars) Receivables $ 33 Inventories 55 Other current assets 7 Property, plant and equipment 12 Goodwill 1 Total fair value of assets acquired 108 Lines of credit (65) Current maturities of long-term debt (2) Other current liabilities (6) Long-term debt, less current maturities (6) Total fair value of liabilities assumed (79) Net fair value of assets acquired $ 29 Goodwill represents CLDP’s market presence and its experienced workforce. For the year ended December 31, 2019, net sales of $87 million and net loss of $2 million were recognized in Seaboard’s consolidated financial statements from the date of acquisition. Pro forma results of operations are not presented as the effects are not material to Seaboard’s results of operations. Seaboard incurred no On January 5, 2018, Seaboard’s CT&M segment acquired substantially all of the outstanding common shares of Borisniak Corp., Les Grands Moulins d’Abidjan, Les Grands Moulins de Dakar, Eurafrique, and Societe Mediterraneenne de Transport, collectively operating as Groupe Mimran (“Mimran”). Mimran operates three flour mills and an associated grain trading business located in Senegal, Ivory Coast and Monaco. This acquisition increased Seaboard’s flour and feed milling capacity and annual grain trading volume. The total purchase price for this acquisition based on the acquisition date fair values and using the exchange rate in effect at the time of acquisition, was $324 million consisting of: (Millions of dollars) Cash payment, net of $64 million of cash acquired $ 264 Euro-denominated note payable due 2021, 3.25% interest 46 Contingent consideration 14 Total fair value of consideration at acquisition date $ 324 See Note 8 for further description of the note payable. The fair value of the contingent consideration, classified in other non-current liabilities in the consolidated balance sheet, is dependent on the probability of Mimran achieving certain financial performance targets using earnings before interest, taxes, depreciation and amortization (“EBITDA”) as a metric. The contingent consideration ranges between zero five The following table summarizes the purchase price allocation resulting from this acquisition: (Millions of dollars) Current assets $ 83 Property, plant and equipment 91 Intangible assets 78 Goodwill 148 Other long-term assets 4 Total fair value of assets acquired 404 Current liabilities (38) Other long-term liabilities (38) Total fair value of liabilities assumed (76) Less: Noncontrolling interest (4) Net fair value of assets acquired $ 324 The intangible assets include $28 million allocated to trade names, amortizable over 9 years, and $50 million allocated to customer relationships, amortizable over 9 years. Goodwill represents Mimran’s market presence and its experienced workforce. The intangible assets and goodwill are not deductible for income tax purposes. Certain Mimran entities acquired are accounted for on a three-month lag and use local currency as their functional currency. Translation gains and losses are recorded as components of other comprehensive income (loss). For the year ended December 31, 2018, net sales of $247 million and net earnings of $17 million were recognized in Seaboard’s consolidated financial statements from the date of acquisition. Acquisition costs incurred primarily in 2017, of $2 million were expensed in selling, general and administrative expenses. The following unaudited pro forma information presents the combined consolidated financial results for Seaboard as if the acquisition had been completed at January 1, 2017: Year ended (Unaudited) December 31, (Millions of dollars except per share amounts) 2018 2017 Net sales $ 6,643 $ 6,095 Net earnings (loss) $ (13) $ 272 Earnings (loss) per common share $ (10.90) $ 233.45 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2019 | |
Investments | |
Investments | Note 3 - Investments The following is a summary of the estimated fair value of short-term investments classified as trading securities: December 31, (Millions of dollars) 2019 2018 Domestic equity securities $ 706 $ 632 Domestic debt securities 409 268 Foreign equity securities 189 218 High yield securities 56 19 Foreign debt securities 43 16 Collateralized loan obligations 15 28 Money market funds held in trading accounts 12 146 Other trading securities 4 9 Total trading short-term investments $ 1,434 $ 1,336 The change in unrealized gains (losses) related to trading securities still held at the end of the respective reporting period was $176 million, $(110) million and $146 million for the years ended December 31, 2019, 2018 and 2017, respectively. Seaboard had $62 million of equity securities denominated in foreign currencies as of December 31, 2019, with $32 million in euros, $12 million in Japanese yen, $8 million in the British pound and the remaining $10 million in various other currencies. Seaboard had $66 million of equity securities denominated in foreign currencies as of December 31, 2018, with $25 million in euros, $20 million in Japanese yen, $9 million in the British pound and the remaining $12 million in various other currencies. Seaboard had $13 million of debt securities denominated in euros as of December 31, 2019. Also, money market funds included less than $1 million and $10 million denominated in various foreign currencies as of December 31, 2019 and 2018, respectively. In addition to its short-term investments, Seaboard also has trading securities related to Seaboard’s deferred compensation plans classified in other current assets in the consolidated balance sheets. See Note 11 for information on the types of trading securities held related to the deferred compensation plans. See Note 10 for a discussion of assets held in conjunction with investments related to Seaboard’s defined benefit pension plan. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventories | |
Inventories | Note 4 - Inventories The following table is a summary of inventories: December 31, (Millions of dollars) 2019 2018 At lower of LIFO cost or market: Hogs and materials $ 387 $ 361 Fresh pork and materials 46 36 LIFO adjustment (64) (58) Total inventories at lower of LIFO cost or market 369 339 At lower of FIFO cost and net realizable value: Grains, oilseeds and other commodities 353 229 Sugar produced and in process 17 17 Other 109 81 Total inventories at lower of FIFO cost and net realizable value 479 327 Grain, flour and feed at lower of weighted average cost and net realizable value 174 149 Total inventories $ 1,022 $ 815 The use of the LIFO method for certain inventories of the Pork segment decreased net earnings $5 million ($4.10 per common share), $20 million ($16.87 per common share) and $6 million ($5.40 per common share) for the years ended December 31, 2019, 2018 and 2017, respectively, after taxes were considered. If the FIFO method had been used for all inventories of the Pork segment, inventories would have been higher by $64 million and $58 million as of December 31, 2019 and 2018, respectively. The LIFO valuation reserve activity for 2019, 2018 and 2017 was as follows: Balance at Increase Balance at (Millions of dollars) beginning of year (decrease) end of year Reserve for LIFO Valuation: Year Ended December 31, 2019 $ 58 6 $ 64 Year Ended December 31, 2018 $ 31 27 $ 58 Year Ended December 31, 2017 $ 21 10 $ 31 |
Net Property, Plant and Equipme
Net Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Net Property, Plant and Equipment | |
Net Property, Plant and Equipment | Note 5 - Net Property, Plant and Equipment The following table is a summary of property, plant and equipment: Useful December 31, (Millions of dollars) Lives 2019 2018 Land and improvements 3 - 15 years $ 250 $ 238 Buildings and improvements 30 years 646 591 Machinery and equipment 3 - 20 years 1,360 1,298 Vessels and vehicles 3 - 18 years 147 147 Office furniture and fixtures 5 years 42 36 Contract growers 5 - 15 years 44 — Construction in progress 287 96 2,776 2,406 Accumulated depreciation and amortization (1,345) (1,246) Net property, plant and equipment $ 1,431 $ 1,160 Finance lease ROU assets of $50 million, net of $3 million in accumulated amortization, are included in property, plant and equipment and comprise all of the contract growers asset category, with the remaining balance in buildings, machinery and equipment and land. Seaboard’s capitalized interest on construction in progress was $7 million and less than $1 million for the years ended December 31, 2019 and 2018, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases | |
Leases | Note 6 – Leases Seaboard’s operating leases are primarily for ports, vessels, contract grower assets, and to a lesser extent, land, buildings and machinery and equipment. Seaboard’s finance leases are primarily for contract grower assets. Seaboard’s Marine segment leases its PortMiami terminal, among other ports. The Marine and CT&M segments lease vessels for use in operations. The Pork segment has contract grower agreements in place with farmers to raise a portion of Seaboard’s hogs using the farmer’s buildings, land and equipment. Seaboard’s nonlease components are primarily for services related to labor associated with caring for hogs in its contract grower agreements and crew services on vessel charter arrangements. As of December 31, 2019, the weighted average remaining lease term for Seaboard’s operating and finance leases was approximately six years and nine years, respectively. Seaboard’s lease terms vary depending upon the class of asset and some leases include options to extend or terminate. Since Seaboard is not reasonably certain to exercise these renewal or termination options, the options are not considered in determining the lease term and associated potential option payments or penalties are excluded from lease payments. Seaboard’s operating lease assets and liabilities are reported separately in the consolidated balance sheet. The classification of Seaboard’s finance leases in the consolidated balance sheet as of December 31, 2019 was as follows: (Millions of dollars) Finance lease right of use assets, net Property, plant and equipment, net $ 50 Finance lease liabilities Other current liabilities 5 Non-current finance lease liabilities Other liabilities 40 The components of lease cost for 2019 were as follows: (Millions of dollars) Operating lease cost $ 138 Finance lease cost: Amortization of right of use assets 3 Interest on lease liabilities 1 Variable lease cost 7 Short-term lease cost 48 Total lease cost $ 197 Operating lease cost and short-term lease cost are recognized on a straight-line basis over the lease term. Finance lease cost is recognized based on the effective interest method for the lease liability and straight-line amortization of the ROU asset. Variable lease payments are recognized when the circumstance in the lease agreement on which those payments are assessed occurs. Variable lease payments are primarily for payments in excess of minimums with regards to throughput of shipping containers. Short-term leases are primarily for containers and vessels at Seaboard’s Marine segment. Lease cost is included in various line items in the consolidated statements of comprehensive income or capitalized to inventory. Rental expense for leases with terms of a month or less are excluded from the total lease cost above. Rental expense for facility and equipment operating leases for all segments was $46 million and $44 million in 2018 and 2017, respectively. The Marine and CT&M segments’ vessel charter hire expenses during 2018 and 2017 totaled $111 million and $96 million, respectively. The Pork segment paid $48 million and $37 million for contract grower agreements in 2018 and 2017, respectively. Maturities of lease liabilities as of December 31, 2019 were as follows: Operating Finance (Millions of dollars) Leases Leases 2020 $ 130 $ 7 2021 113 7 2022 84 7 2023 58 7 2024 48 7 Thereafter 164 26 Total undiscounted lease payments 597 61 Less imputed interest (114) (16) Total lease liability $ 483 $ 45 Seaboard’s weighted average discount rate for operating and finances leases was 6.58% and 6.31%, respectively, as of December 31, 2019. There were estimates and judgments made in determining Seaboard’s multiple discount rates based on term, country and currency, including developing a secured credit rating and spreading market yield data across maturities and country risk-free rates. Below is Seaboard’s commitments table as of December 31, 2018 that disclosed operating lease payments for the next five years and thereafter. Seaboard had no material capital leases as of December 31, 2018. Years ended December 31, (Millions of dollars) 2019 2020 2021 2022 2023 Thereafter Ports $ 18 $ 18 $ 19 $ 19 $ 20 $ 109 Vessel, time and voyage-charters 58 27 26 13 8 25 Contract grower agreements 47 41 37 27 18 61 Other operating lease payments 18 13 9 8 6 15 Total unrecognized non-cancelable commitments $ 141 $ 99 $ 91 $ 67 $ 52 $ 210 |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments | |
Investments in and Advances to Affiliates and Notes Receivable from Affiliates | Note 7 – Equity Method Investments Seaboard has several investments in and advances to non-controlled, non-consolidated affiliates that are all accounted for using the equity method of accounting. See Note 15 for detail of the investments in and advances to affiliates by segment. Financial information from certain foreign affiliates is reported on a one Pork Segment December 31, (Millions of dollars) 2019 2018 2017 Net sales $ 1,453 $ 927 $ 441 Net income (loss) $ (43) $ (60) $ (21) Total assets $ 639 $ 623 $ 596 Total liabilities $ 277 $ 243 $ 138 Total equity $ 362 $ 380 $ 458 The Pork segment has a 50% noncontrolling interest in Daily’s Premium Meats, LLC (“Daily’s”) and STF. Daily’s produces and markets raw and pre-cooked bacon. STF operates a pork processing plant, which began operations in September 2017. Seaboard’s Pork segment supplies raw materials to both of these facilities for processing and provides marketing services to STF for its pork products. Combined condensed financial information of these entities for each of Seaboard’s years ended is included in the table above. Seaboard and Triumph Foods, LLC (“Triumph”) formed STF in May 2015 with equal ownership of 50%. In connection with the development and operation of the plant, Seaboard contributed $73 million during 2017. Also, Seaboard agreed to provide a portion of the hogs to be processed at the plant. The Pork segment currently has a business relationship with Triumph under which Seaboard markets substantially all of the pork products produced at Triumph’s plant in Missouri and STF’s plant in Iowa. Commodity Trading and Milling Segment December 31, (Millions of dollars) 2019 2018 2017 Net sales $ 3,129 $ 3,238 $ 2,907 Net income (loss) $ (12) $ (13) $ 23 Total assets $ 1,697 $ 1,914 $ 1,793 Total liabilities $ 1,075 $ 1,242 $ 1,150 Total equity $ 622 $ 672 $ 643 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. Combined condensed financial information of these entities for each of Seaboard’s years ended is included in the table above. As of December 31, 2019, the location and percentage ownership of CT&M’s affiliates were as follows: Botswana (50%), Democratic Republic of Congo (50%), Gambia (50%), Kenya (46.64%-49%), Lesotho (50%), Mauritania (50%), Morocco (11.44%-17.08%), Nigeria (25%-48.33%), Senegal (49%), South Africa (30%-50%), Tanzania (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; Australia (22.5%-25%); and Canada (45%) and the U.S. (40%) in North America. As of December 31, 2019, the CT&M segment’s carrying value of certain investments in affiliates was more than its share of the affiliates’ book value by $56 million. The excess is attributable primarily to the valuation of property, plant and equipment and intangible assets. The amortizable assets are being amortized to income (loss) from affiliates over the remaining life of the assets. During 2018, Seaboard’s CT&M segment acquired a 50% noncontrolling interest in a grain trading and flour milling business in Mauritania for total consideration of $16 million. Marine Segment December 31, (Millions of dollars) 2019 2018 2017 Net sales $ 70 $ 66 $ 58 Net income $ 12 $ 11 $ 5 Total assets $ 269 $ 272 $ 229 Total liabilities $ 107 $ 133 $ 114 Total equity $ 162 $ 139 $ 115 The Marine segment has a 21% noncontrolling interest in a cargo terminal business in Jamaica and a 18% noncontrolling interest in a holding company that owns a Caribbean terminal operation. Combined condensed financial information of these entities for each of Seaboard’s years ended is included in the table above. As of December 31, 2018, the Marine segment’s carrying value of certain investments in affiliates was less than its share of the affiliates’ book value by $29 million. The difference is attributable primarily to the valuation of property, plant and equipment and impairments taken by Seaboard, but not the respective entity. Certain basis adjustments are being amortized to income (loss) from affiliates over the remaining life of the assets. Sugar and Alcohol Segment December 31, (Millions of dollars) 2019 2018 2017 Net sales $ 10 $ 5 $ 10 Net income $ 3 $ 3 $ 2 Total assets $ 13 $ 10 $ 10 Total liabilities $ 2 $ 2 $ 2 Total equity $ 11 $ 8 $ 8 The Sugar and Alcohol segment has noncontrolling interests in two sugar-related businesses in Argentina (46% and 50%). Combined condensed financial information of these entities for each of Seaboard’s years ended is included in the table above. Power Segment December 31, (Millions of dollars) 2019 2018 2017 Net sales $ 143 $ 138 $ 105 Net income $ 10 $ 33 $ 23 Total assets $ 11 $ 247 $ 265 Total liabilities $ 4 $ 139 $ 145 Total equity $ 7 $ 108 $ 120 The Power segment has noncontrolling interests in two energy-related businesses in the Dominican Republic (45% and 50%). In September 2019, Seaboard’s Power segment sold its 29.9% noncontrolling interest in a Dominican Republic electricity generation facility for $23 million cash, net of $1 million in selling expenses and taxes and recorded a $6 million note receivable in other non-current assets in the consolidated balance sheet. There was no gain or loss recognized in the consolidated statements of comprehensive income upon the sale. Combined condensed financial information of these entities for each of Seaboard’s years ended is included in the table above. Turkey Segment December 31, (Millions of dollars) 2019 2018 2017 Net sales $ 1,612 $ 1,591 $ 1,670 Operating income (loss) $ (20) $ (16) $ 15 Net loss $ (40) $ (30) $ (8) Total assets $ 1,038 $ 1,072 $ 999 Total liabilities $ 507 $ 502 $ 400 Total equity $ 531 $ 570 $ 599 The Turkey segment represents Seaboard’s 50% noncontrolling interest in Butterball, LLC (“Butterball”), a vertically integrated producer and processor of branded and non-branded turkey products. Butterball’s condensed financial information for each of Seaboard’s years ended is included in the table above. Within total assets, Butterball had trade name intangible assets of $111 million and goodwill of $66 million as of December 31, 2019. In connection with its initial investment in Butterball in December 2010, Seaboard provided Butterball with a $100 million unsecured subordinated loan that had a cash and compounded pay-in-kind interest component. In December 2017, Butterball fully repaid the loan that accumulated to $164 million and accrued interest of $6 million. Seaboard holds warrants, which upon exercise for a nominal price, would enable Seaboard to acquire an additional 5% equity interest in Butterball. The warrants qualify for equity treatment under accounting standards and are classified as investments in and advances to affiliates in the consolidated balance sheets. Seaboard can exercise these warrants at any time after December 31, 2018 or prior to December 31, 2025 after which time the warrants expire. Butterball has the right to repurchase the warrants for fair market value. The warrant agreement essentially provides Seaboard with a 52.5% economic interest, as these warrants are in substance an additional equity interest. Therefore, Seaboard records 52.5% of Butterball’s earnings as income (loss) from affiliates in the consolidated statements of comprehensive income. However, all significant corporate governance matters would continue to be shared equally between Seaboard and its partner in Butterball even if the warrants were exercised, unless Seaboard already owned a majority of the voting rights at the time of exercise. |
Lines of Credit and Long-Term D
Lines of Credit and Long-Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Lines of Credit and Long-Term Debt | |
Lines of Credit and Long-Term Debt | Note 8 – Lines of Credit and Long-Term Debt The outstanding balance under uncommitted lines of credit was $246 million and $148 million as of December 31, 2019 and 2018, respectively. Of the $246 million outstanding as of December 31, 2019, $189 million was denominated in foreign currencies, with $91 million denominated in the South African rand, $53 million in the Peruvian sol, $24 million denominated in the Canadian dollar, $19 million denominated in the Zambian kwacha and the remaining in various other currencies. The weighted average interest rate for outstanding uncommitted lines of credit was 5.79% and 7.76% as of December 31, 2019 and 2018, respectively. The uncommitted lines of credit are unsecured and do not require compensating balances. Facility fees on these agreements are not material. Seaboard has a $100 million committed line of credit with Wells Fargo Bank, National Association that had no Long-term Debt Long-term debt includes borrowings under term loans and other contractual obligations for payment, including notes payable. The following table is a summary of long-term debt: December 31, (Millions of dollars) 2019 2018 Term Loan due 2028 $ 691 $ 698 Foreign subsidiary obligations 102 81 Total long-term debt at face value 793 779 Current maturities of long-term debt and unamortized discount and costs (63) (40) Long-term debt, less current maturities and unamortized discount and costs $ 730 $ 739 On September 25, 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. This Credit Agreement replaced Seaboard Foods LLC’s $500 million unsecured term loan with a $700 million unsecured term loan (“Term Loan”) and extended the maturity from December 4, 2022 to September 25, 2028. Seaboard Foods LLC received proceeds of $220 million, net of certain costs. The Term Loan provides for quarterly payments of the principal balance pursuant to the revised amortization schedule set forth in the Credit Agreement, with the balance due on the maturity date. 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 3.42% and 4.15% as of December 31, 2019 and 2018, respectively. The Term Loan requires, among other terms, the maintenance of certain ratios involving a maximum debt to capitalization ratio, which shall not exceed 50% at the end of any fiscal quarter, and minimum tangible net worth, as defined, of not less than $2.5 billion plus 25% of cumulative consolidated net income. The Term Loan also includes restrictions of certain subsidiaries to grant liens on assets, incur indebtedness over 15% of consolidated tangible net worth, make certain acquisitions, investments and asset dispositions in excess of specified amounts, and limits aggregate dividend payments to $100 million per year under certain circumstances. Seaboard Corporation has guaranteed all obligations of Seaboard Foods LLC under the Term Loan. Foreign subsidiary long-term debt is primarily denominated in euros and U.S. dollars. In conjunction with the acquisition discussed in Note 2, Seaboard incurred a euro-denominated note payable due to the sellers with a balance of $44 million as of December 31, 2019. The change in value from the date of acquisition to the current reporting period reflects foreign currency fluctuations and the accretion of the discount to the note payable face value over the term that is recorded as additional interest expense. This foreign subsidiary obligation bears interest at an annual rate of 3.25%, with interest due annually on the anniversary date, until maturity on January 5, 2021. Seaboard’s Sugar and Alcohol segment, which is on a one-month lag, has notes payable outstanding of $54 million and $29 million as of December 31, 2019 and 2018, respectively with maturity dates that range from December 9, 2019 to December 30, 2019. The interest rate on the Sugar and Alcohol segment’s notes payable was 3.20% and 3.10% as of December 31, 2019 and 2018, respectively. The weighted average interest rate of all foreign subsidiary debt was 3.50% and 3.80% as of December 31, 2019 and 2018, respectively. All of the foreign subsidiary debt is guaranteed by Seaboard, except $1 million is secured by property, plant and equipment. Seaboard was in compliance with all restrictive debt covenants relating to these agreements as of December 31, 2019. The aggregate minimum principal payments required on long-term debt as of December 31, 2019 were as follows: $62 million in 2020, $53 million in 2021, $8 million in 2022, $7 million in 2023, $7 million in 2024 and $656 million thereafter. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 9 - Commitments and Contingencies Legal Proceedings On June 28, 2018, Wanda Duryea and eleven other indirect purchasers of pork products, acting on behalf of themselves and a putative class of indirect purchasers of pork products, filed a class action complaint in the U.S. District Court for the District of Minnesota (the “District Court”) against several pork processors, including Seaboard Foods LLC and Agri Stats, Inc., a company described in the complaint as a data sharing service. Subsequent to the filing of this initial complaint, additional class action complaints making similar claims on behalf of putative classes of direct and indirect purchasers were filed in the District Court. The complaints were amended and consolidated for pre-trial purposes, into three consolidated putative class actions brought on behalf of (a) direct purchasers, (b) consumer indirect purchasers and (c) commercial and institutional indirect purchasers. The amended complaints named Seaboard Corporation as an additional defendant. The consolidated actions are styled In re Pork Antitrust Litigation . Subsequent to the original filings, two additional actions making similar claims, including one by the Commonwealth of Puerto Rico, were brought in or transferred to the District Court. The complaints alleged, 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 their 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 included causes of action under various state laws, including state antitrust laws, unfair competition laws, consumer protection statutes and state common law claims for unjust enrichment. The complaints also alleged that the defendants concealed this conduct from the plaintiffs and the members of the putative classes. The relief sought in the respective complaints includes treble damages, injunctive relief, pre- and post-judgment interest, costs and attorneys’ fees on behalf of the putative classes. On August 8, 2019, the District Court granted defendants’ motion to dismiss the class action cases while giving the plaintiffs leave to amend. The classes and the other two plaintiffs filed amended complaints in November and December 2019. In addition to amending the original claims, the consumer indirect purchasers have asserted a new claim alleging that the exchange of information by defendants through Agri Stats Inc. unreasonably restrained trade. On January 15, 2020, the defendants, including Seaboard, moved to dismiss the amended complaints. Seaboard intends to defend these cases vigorously. 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. On March 20, 2018, the bankruptcy trustee (the “Trustee”) for Cereoil Uruguay S.A. (“Cereoil”) filed a suit in the Bankruptcy Court of First Instance in Uruguay that was served during the second quarter of 2018 naming as parties Seaboard and Seaboard’s subsidiaries, Seaboard Overseas Limited (“SOL”) and Seaboard Uruguay Holdings Ltd. (“Seaboard Uruguay”). Seaboard has a 45% indirect ownership of Cereoil. The suit seeks an order requiring Seaboard, SOL and Seaboard Uruguay to reimburse Cereoil the amount of $22 million, contending that deliveries of soybeans to SOL pursuant to purchase agreements should be set aside as fraudulent conveyances. Seaboard intends to defend this case vigorously. It is impossible at this stage to determine the probability of a favorable or unfavorable outcome resulting from this suit. In the event of an adverse ruling, Seaboard and its two subsidiaries could be ordered to pay the amount of $22 million. Any award in this case would offset against any award in the additional case described below filed by the Trustee on April 27, 2018. On April 27, 2018, the Trustee for Cereoil filed another suit in the Bankruptcy Court of First Instance in Uruguay that was served during the second quarter of 2018 naming as parties Seaboard, SOL, Seaboard Uruguay, all directors of Cereoil, including two individuals employed by Seaboard who served as directors at the behest of Seaboard, and the Chief Financial Officer of Cereoil, an employee of Seaboard who also served at the behest of Seaboard (collectively, the “Cereoil Defendants”). The Trustee contends that the Cereoil Defendants acted with willful misconduct to cause Cereoil’s insolvency, and thus should be ordered to pay all liabilities of Cereoil, net of assets. The bankruptcy filing lists total liabilities of $53 million and assets of $30 million. Seaboard intends to defend this case vigorously. It is impossible at this stage to determine the probability of a favorable or unfavorable outcome resulting from this suit. In the event of an adverse ruling, Seaboard and the other Cereoil Defendants could be ordered to pay the amount of the net indebtedness of Cereoil, which based on the bankruptcy schedules would total $23 million. It is possible that the net indebtedness could be higher than this amount if Cereoil’s liabilities are greater than $53 million and/or Cereoil’s assets are worth less than $30 million. In addition, in the event of an adverse ruling, the Bankruptcy Court of First Instance could order payment of the Trustee’s professional fees, interest, and other expenses. Any award in this case would offset against any award in the case described above filed on March 20, 2018. A creditor of Cereoil which has a claim in the bankruptcy proceeding pending in Uruguay of approximately $10 million, plus accrued interest, has threatened to bring legal action in the U.S. against Seaboard alleging on various legal theories that Seaboard is responsible for this same indebtedness. Seaboard will vigorously defend this action should it be brought. On May 15, 2018, the Trustee for Nolston S.A. (“Nolston”) filed a suit in the Bankruptcy Court of First Instance in Uruguay that was served during the second quarter of 2018 naming as parties Seaboard and the other Cereoil Defendants. Seaboard has a 45% indirect ownership of Nolston. The Trustee contends that the Cereoil Defendants acted with willful misconduct to cause Nolston’s insolvency, and thus should be ordered to pay all liabilities of Nolston, net of assets. The bankruptcy filing lists total liabilities of $29 million and assets of $15 million. Seaboard intends to defend this case vigorously. It is impossible at this stage to determine the probability of a favorable or unfavorable outcome resulting from this suit. In the event of an adverse ruling, Seaboard and the other Cereoil Defendants could be ordered to pay the amount of the net indebtedness of Nolston, which based on the bankruptcy schedules would total $14 million. It is possible that the net indebtedness could be higher than this amount if Nolston’s liabilities are greater than $29 million and/or Nolston’s assets are worth less than $15 million. In addition, in the event of an adverse ruling, the Bankruptcy Court of First Instance could order payment of the Trustee’s professional fees, interest, and other expenses. On September 18, 2014, and subsequently in 2015 and 2016, Seaboard received a number of grand jury subpoenas and informal requests for information from the Department of Justice, Asset Forfeiture and Money Laundering Section (“AFMLS”), seeking records related to specified foreign companies and individuals. The companies and individuals as to which the requested records relate were not affiliated with Seaboard, although Seaboard has also received subpoenas and requests for additional information relating to an affiliate of Seaboard. During 2017, Seaboard received grand jury subpoenas requesting documents and information related to money transfers and bank accounts in the Democratic Republic of Congo and other African countries and requests to interview certain Seaboard employees and to obtain testimony before a grand jury. Seaboard retained outside counsel and cooperated with the government’s investigation. There has been no further communication from AFMLS for more than 18 months and to the knowledge of Seaboard, there has been no further action taken by AFMLS. As such, unless further communication is received from AFMLS or action is taken by AFMLS, disclosure of the matter described in this paragraph will not appear in Seaboard’s future SEC periodic reports. Seaboard is subject to various administrative and judicial proceedings and other legal matters related to the normal conduct of its business. In the opinion of management, the ultimate resolution of these items is not expected to have a material adverse effect on the consolidated financial statements of Seaboard. Guarantees Certain of the non-consolidated affiliates and third-party contractors who perform services for Seaboard have bank debt supporting their underlying operations. From time to time, Seaboard will provide guarantees of that debt in order to further Seaboard’s business objectives. Seaboard does not issue guarantees for compensation. As of December 31, 2019, 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. See discussion of bank letters of credit in Note 8. Commitments As of December 31, 2019, Seaboard had various non-cancelable commitments under contractual agreements: Years ended December 31, (Millions of dollars) 2020 2021 2022 2023 2024 Thereafter Totals Hog procurement contracts (a) $ 78 $ 82 $ 64 $ 47 $ 34 $ — $ 305 Grain commitments (b) 93 1 — — — — 94 Grain purchase contracts for resale (c) 611 — — — — — 611 Fuel supply contracts (d) 7 47 47 47 48 289 485 Construction commitments (e) 114 29 — — — — 143 Equipment and other commitments 122 9 4 2 2 24 163 Total unrecognized non-cancelable commitments $ 1,025 $ 168 $ 115 $ 96 $ 84 $ 313 $ 1,801 (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, 2019. During 2019, 2018 and 2017, the Pork segment paid $121 million, $77 million and $99 million, respectively, for hogs purchased under committed contracts. (b) The Pork segment enters into grain purchase contracts to support its hog operations. The amounts are based on projected commodity prices as of December 31, 2019. (c) The CT&M segment enters into grain purchase contracts, primarily to support firm sales commitments. The amounts are based on projected commodity prices as of December 31, 2019. (d) The Power segment has a natural gas supply contract for a significant portion of the fuel required for the barge under construction. The commitment has both fixed and variable price components and the amount included is partially based on market prices as of December 31, 2019. The Marine segment also has fuel purchase contracts. (e) The Power segment’s commitments to the contractor for its new power generating barge, anticipated to begin operations in mid-2021, were approximately $26 million . Contractual costs to complete the Pork segment’s Oklahoma pork processing plant expansion in 2020 totaled approximately $21 million. The Pork segment’s renewable diesel production facility, expected to be operational in early 2022, has commitments of approximately $86 million. Expected payments may vary based on timing of milestones achieved. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefits | |
Employee Benefits | Note 10 - Employee Benefits Seaboard has a qualified defined benefit pension plan (the “Plan”) 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 has historically based pension contributions on minimum funding standards to avoid the Pension Benefit Guaranty Corporation (“PBGC”) variable rate premiums established by the Employee Retirement Income Security Act (“ERISA”) of 1974. Seaboard did not make any contributions in 2019 and 2018 and currently does not plan on making any contributions in 2020. Pursuant to Seaboard’s investment policy, assets are invested in the Plan to achieve a diversified target allocation of approximately 50% in domestic equities, 25% in international equities, 20% in fixed income securities and 5% in alternative investments. The investment strategy is periodically reviewed by management for adherence to policy and performance. The following tables show the Plan’s assets measured at estimated fair value as of December 31, 2019 and 2018, respectively, and the level within the fair value hierarchy used to measure each category of assets: December 31, (Millions of dollars) 2019 Level 1 Level 2 Level 3 Assets: Domestic equity securities $ 84 $ 84 $ — $ — Foreign equity securities 57 57 — — Domestic fixed income mutual funds 30 30 — — Foreign fixed income mutual funds 12 12 — — Money market funds 2 2 — — Total assets $ 185 $ 185 $ — $ — December 31, (Millions of dollars) 2018 Level 1 Level 2 Level 3 Assets: Domestic equity securities $ 69 $ 69 $ — $ — Foreign equity securities 47 47 — — Domestic fixed income mutual funds 27 27 — — Foreign fixed income mutual funds 11 11 — — Money market funds 2 2 — — Total assets $ 156 $ 156 $ — $ — Seaboard also sponsors non-qualified, unfunded supplemental executive plans, and has certain individual, non-qualified, unfunded supplemental retirement agreements for certain retired employees. Management has no plans to provide funding for these supplemental executive plans in advance of when the benefits are paid. Assumptions used in determining pension information for all of the above plans were: Years ended December 31, 2019 2018 2017 Weighted average assumptions Discount rate used to determine obligations 2.15 - 3.50 % 3.50 - 4.50 % 2.75 - 3.80 % Discount rate used to determine net periodic benefit cost 3.50 - 4.50 % 2.75 - 3.80 % 2.90 - 4.60 % Expected return on plan assets 6.25 % 6.25 % 6.50 % Long-term rate of increase in compensation levels 4.00 % 4.00 % 4.00 % Management selected the discount rate based on a model-based result where the timing and amount of cash flows approximates the estimated payouts. The expected returns on the Plan’s assets assumption are based on the weighted average of asset class expected returns that are consistent with historical returns. The assumed rate of return selected was based on model-based results that reflect the Plan’s asset allocation and related long-term projected returns. The measurement date for all plans is December 31. The aggregate changes in the benefit obligation and fair value of assets for the Plan, supplemental executive plans and retirement agreements and the funded status were as follows: December 31, (Millions of dollars) 2019 2018 Reconciliation of benefit obligation: Benefit obligation at beginning of year $ 293 $ 300 Service cost 8 10 Interest cost 12 11 Actuarial losses (gains) 50 (22) Plan settlements (9) — Benefits paid (9) (6) Other 3 — Benefit obligation at end of year $ 348 $ 293 Reconciliation of fair value of plan assets: Fair value of plan assets at beginning of year $ 156 $ 171 Actual return on plan assets 35 (11) Employer contributions 9 2 Plan settlements (9) — Benefits paid (6) (6) Fair value of plan assets at end of year $ 185 $ 156 Funded status $ (163) $ (137) The net funded status of the Plan was $(53) million and $(35) million as of December 31, 2019 and 2018, respectively. The benefit obligation increased primarily due to a decrease in discount rates for all plans. The accumulated benefit obligation for the Plan was $205 million and $165 million and for all the other plans was $104 million and $95 million as of December 31, 2019 and 2018, respectively. Expected future net benefit payments for all plans during each of the next five years and thereafter were as follows: $19 million, $11 million, $29 million, $23 million, $16 million and $82 million, respectively. The net periodic benefit cost of these plans was as follows: Years ended December 31, (Millions of dollars) 2019 2018 2017 Components of net periodic benefit cost: Service cost $ 8 $ 10 $ 9 Interest cost 12 11 11 Expected return on plan assets (10) (11) (10) Amortization 5 6 5 Settlement loss recognized 2 — 2 Net periodic benefit cost $ 17 $ 16 $ 17 The service cost component is recorded in either cost of sales or selling, general and administrative expenses depending upon the employee, and the other components of net periodic benefit cost are recorded in miscellaneous, net in the consolidated statements of comprehensive income. The amounts not reflected in net periodic benefit cost and included in accumulated other comprehensive loss before taxes as of December 31, 2019 and 2018 were $88 million and $72 million, respectively. Such amounts primarily represent the unrecognized net actuarial losses that are generally amortized over the average remaining working lifetime of the active participants for all of these plans. The settlements recognized during 2019 and 2017 were primarily due to certain participants who received lump sum payments that exceeded the service cost plus interest cost for the respective plan. Seaboard participated in a multi-employer pension fund, the United Food and Commercial Workers International Union-Industry Pension Fund (the “Fund”), which covered certain union employees under a collective bargaining agreement. Contribution expense for this Fund was $1 million for each of the years ended December 31, 2019, 2018 and 2017. Effective July 22, 2019, after ratification of a renewed collective bargaining agreement, Seaboard ceased contributing to the Fund, which subsequently terminated Seaboard’s participation in the Fund. Seaboard recorded a $14 million withdrawal liability in 2019, that is payable in quarterly installments over 20 years. Seaboard maintains a defined contribution plan covering most of its domestic salaried and clerical employees. In 2019, 2018 and 2017, Seaboard contributed to this plan an amount equal to 50% of the first 6% of each employee’s contributions to the plan. Employee vesting is based upon years of service, with 20% vested after one year of service and an additional 20% vesting with each additional complete year of service. Contribution expense for this plan was $3 million for each of the years ended December 31, 2019 and 2018 and 2017. In addition, Seaboard maintains a defined contribution plan covering most of its hourly, non-union employees. Contribution expense for this plan was less than $1 million for December 31, 2019 and $1 million for the years ended December 31, 2018 and 2017. Seaboard has a deferred compensation plan that allows certain employees to reduce their compensation in exchange for values in various investments. Seaboard contributes 3% of the employees’ reduced compensation. Seaboard also has an Investment Option Plan that allowed certain employees to reduce their compensation in exchange for an option to acquire interests measured by reference to three investments. Contributions are no longer permitted under the Investment Option Plan. The exercise price for each investment option was established based upon the fair market value of the underlying investment on the date of grant. Seaboard’s income (expense) for these two plans, which primarily includes amounts related to the change in fair value of the underlying investment accounts, was $(11) million, $2 million and $(10) million for the years ended December 31, 2019, 2018 and 2017, respectively. Included in other liabilities as of December 31, 2019 and 2018 were $45 million and $38 million, respectively, representing the market value of the payable to the employees upon distribution or exercise for each plan. In conjunction with these plans, Seaboard purchased the specified number of units of the employee-designated investment, plus the applicable option price for the Investment Option Plan. These investments are treated as trading securities and are stated at their fair market values. Accordingly, as of December 31, 2019 and 2018, $51 million and $45 million, respectively, were included in other current assets in the consolidated balance sheets. Investment income (loss) related to the mark-to-market of these investments for 2019, 2018 and 2017 totaled $11 million, $(2) million and $9 million, respectively. |
Derivatives and Fair Value of F
Derivatives and Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Derivatives and Fair Value of Financial Instruments | |
Derivatives and Fair Value of Financial Instruments | Note 11 - Derivatives and Fair Value of Financial Instruments The fair value hierarchy prioritizes inputs to valuation techniques used to measure fair value into three broad levels: 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 own assumptions. The following tables show assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 and 2018, respectively, and the level within the fair value hierarchy used to measure each category of assets and liabilities. The trading securities classified as other current assets below are assets held for Seaboard’s deferred compensation plans. December 31, (Millions of dollars) 2019 Level 1 Level 2 Level 3 Assets: Trading securities – short-term investments: Domestic equity securities $ 706 $ 706 $ — $ — Domestic debt securities 409 117 292 — Foreign equity securities 189 189 — — High yield securities 56 10 46 — Foreign debt securities 43 — 43 — Collateralized loan obligations 15 — 15 — Money market funds held in trading accounts 12 12 — — Other trading securities 4 4 — — Trading securities – other current assets: Domestic equity securities 40 40 — — Money market funds held in trading accounts 6 6 — — Foreign equity securities 3 3 — — Fixed income securities 2 2 — — Derivatives: Commodities 6 6 — — Total assets $ 1,491 $ 1,095 $ 396 $ — Liabilities: Contingent consideration $ 13 $ — $ — $ 13 Derivatives: Commodities 4 4 — — Foreign currencies 3 — 3 — Total liabilities $ 20 $ 4 $ 3 $ 13 December 31, (Millions of dollars) 2018 Level 1 Level 2 Level 3 Assets: Trading securities – short-term investments: Domestic equity securities $ 632 $ 632 $ — $ — Domestic debt securities 268 215 53 — Foreign equity securities 218 218 — — Money market funds held in trading accounts 146 146 — — Collateralized loan obligations 28 — 28 — High yield securities 19 7 12 — Foreign debt securities 16 2 14 — Other trading securities 14 14 — — Trading securities – other current assets: Domestic equity securities 32 32 — — Money market funds held in trading accounts 5 5 — — Foreign equity securities 3 3 — — Fixed income securities 3 3 — — Other 1 1 — — Derivatives: Commodities 6 4 2 — Foreign currencies 2 — 2 — Total assets $ 1,393 $ 1,282 $ 111 $ — Liabilities: Trading securities – short-term investments: Other trading securities $ 5 $ — $ 5 $ — Contingent consideration 13 — — 13 Derivatives: Commodities 4 4 — — Total liabilities $ 22 $ 4 $ 5 $ 13 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. Domestic debt securities categorized as level 1 in the fair value hierarchy include debt securities held in mutual funds and ETFs. Domestic debt securities categorized as level 2 include corporate bonds, mortgage-backed securities, asset-backed securities and U.S. Treasuries. Foreign debt securities categorized as level 1 in the fair value hierarchy included debt securities held in mutual funds and ETFs with a country of origin concentration outside the U.S. Foreign debt securities categorized as level 2 include foreign government or government related securities, corporate bonds and asset-backed securities with a country of origin concentration outside the U.S. High yield securities categorized as level 1 in the fair value hierarchy include high yield securities held in mutual funds and ETFs, and level 2 includes primarily corporate bonds and bank loans. The fair value of long-term debt is estimated by comparing interest rates for debt with similar terms and maturities. As Seaboard’s long-term debt is mostly variable-rate, 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 8 for a discussion of Seaboard’s long-term debt. The fair value of Seaboard’s contingent consideration related to a 2018 acquisition was classified as a level 3 in the fair value hierarchy since the calculation is dependent upon projected company specific inputs using a Monte Carlo simulation. Seaboard remeasures the estimated fair value of the contingent consideration liability until settled. 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 the derivatives discussed below are not accounted for as hedges, fluctuations in the related commodity prices, foreign currency exchange rates and equity prices could have a material impact on earnings in any given reporting period. 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. Occasionally, Seaboard also enters into speculative derivative transactions not directly related to its raw material requirements. Commodity derivatives are recorded at fair value, with any changes in fair value being marked-to-market as a component of cost of sales in the consolidated statements of comprehensive income. As of December 31, 2019, Seaboard had open net derivative contracts to purchase 17 million bushels of grain and open net derivative contracts to sell 132 million pounds of soybean oil and 12 million gallons of heating oil. As of December 31, 2018, Seaboard had open net derivative contracts to purchase 33 million bushels of grain and 8 million pounds of soybean oil and open net derivative contracts to sell 26 million pounds of hogs and 7 million gallons of heating oil. Foreign Currency Exchange Agreements Seaboard enters into foreign currency exchange agreements to manage the foreign currency exchange rate risk with respect to certain transactions denominated in foreign currencies. Foreign currency exchange agreements that primarily relate to an underlying commodity transaction are recorded at fair value with changes in value marked-to-market as a component of cost of sales in the consolidated statements of comprehensive income. Foreign currency exchange agreements that are not related to an underlying commodity transaction are recorded at fair value with changes in value marked-to-market as a component of foreign currency gains (losses), net in the consolidated statements of comprehensive income. As of December 31, 2019 and 2018, Seaboard had foreign currency exchange agreements with notional amounts of $78 million and $82 million, respectively, primarily related to the South African rand, euro and the Canadian dollar. From time to time Seaboard is subject to counterparty credit risk related to its foreign currency exchange agreements should the counterparties fail to perform according to the terms of the contracts. As of December 31, 2019, Seaboard had a maximum aggregate amount of loss due to credit risk of less than $1 million of credit risk with three counterparties related to its foreign currency exchange agreements. Seaboard does not hold any collateral related to these agreements. Equity Futures Contracts Seaboard enters into equity futures contracts to manage the equity price risk with respect to certain short-term investments. Equity futures contracts are recorded at fair value with changes in value marked-to-market as a component of other investment income (loss), net in the consolidated statements of comprehensive income. The notional amounts of these equity futures contracts were $0 million and $97 million as of December 31, 2019 and 2018, respectively. The following table provides the amount of gain (loss) recognized for each type of derivative and where it was recognized in the consolidated statements of comprehensive income for the years ended December 31, 2019 and 2018: (Millions of dollars) 2019 2018 Commodities Cost of sales $ (52) $ (12) Foreign currencies Cost of sales 1 2 Foreign currencies Foreign currency gains (losses), net (1) 1 Equity Other investment income (loss), net (4) (6) The following table provides the fair value of each type of derivative held as of December 31, 2019 and 2018 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) 2019 2018 2019 2018 Commodities (a) Other current assets $ 6 $ 6 Other current liabilities $ 4 $ 4 Foreign currencies Other current assets — 2 Other current liabilities 3 — Equity (a) Short-term investments — — Short-term investments — 5 (a) |
Stockholders' Equity and Accumu
Stockholders' Equity and Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity and Accumulated Other Comprehensive Loss | |
Stockholders' Equity and Accumulated Other Comprehensive Loss | Note 12 - Stockholders’ Equity and Accumulated Other Comprehensive Loss In October 2019, the Board of Directors extended through October 31, 2020 Seaboard’s share repurchase program. Under this share repurchase program, Seaboard is authorized to repurchase its common stock from time to time in open market or privately negotiated purchases, which may be above or below the traded market price. During the period that the share repurchase program remains in effect, from time to time, Seaboard may enter into a 10b5-1 plan authorizing a third party to make such purchases on behalf of Seaboard. All stock repurchased will be made in compliance with applicable legal requirements and funded by cash on hand. The timing of the repurchases and the number of shares repurchased at any given time will depend upon market conditions, compliance with SEC regulations, and other factors. The Board of Directors’ stock repurchase authorization does not obligate Seaboard to acquire a specific amount of common stock, and the stock repurchase program may be suspended at any time at Seaboard’s discretion. As of December 31, 2019, $78 million remained available for repurchases under this program. Seaboard repurchased 4,369 and 1,333 shares of common stock during 2019 and 2018 at a total price of $17 million and $5 million, respectively. Shares repurchased were retired and became authorized and unissued shares. Seaboard did not repurchase any shares of common stock during 2017. In each of the four quarters of 2019, Seaboard declared and paid a quarterly dividend of $2.25 per share on the common stock. In each of the four quarters of 2018 and 2017, Seaboard declared and paid a quarterly dividend of $1.50 per share on the common stock. The components of accumulated other comprehensive loss, net of related taxes, were as follows: Cumulative Foreign Unrealized Currency Gain Unrecognized Translation on Pension (Millions of dollars) Adjustment Investments Cost Total Balance December 31, 2017 $ (297) $ 7 $ (64) $ (354) Other comprehensive loss before reclassifications (52) — (1) (53) Amounts reclassified from accumulated other comprehensive loss to net loss — — 4 (a) 4 Other comprehensive income (loss), net of tax (52) — 3 (49) Amounts reclassified from accumulated other comprehensive loss to retained earnings — (7) (b) — (7) Balance December 31, 2018 $ (349) $ — $ (61) $ (410) Other comprehensive loss before reclassifications (20) — (14) (34) Amounts reclassified from accumulated other comprehensive loss to net earnings — — 4 (a) 4 Other comprehensive loss, net of tax (20) — (10) (30) Balance December 31, 2019 $ (369) $ — $ (71) $ (440) (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. Effective in the third quarter of 2018, the Sugar and Alcohol segment’s functional currency changed from the Argentine peso to the U.S. dollar due to highly inflationary accounting. See Note 1 for discussion of the functional currency change. During 2019, the foreign currency translation adjustment primarily related to CT&M entities with a functional currency of the West African franc. Income taxes for the unrecognized pension cost component of accumulated other comprehensive loss was recorded using a 26%effective tax rate in the fourth quarter of 2017 and all of 2018 and 2019 and a 39% effective tax rate for other periods of 2017, except for unrecognized pension cost of $21 million, $23 million and $22 million in 2019, 2018 and 2017, respectively, related to employees at certain subsidiaries for which no tax benefit was recorded. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition | |
Revenue Recognition | Note 13 – Revenue Recognition Seaboard has multiple segments with diverse revenue streams. For additional information on Seaboard’s segments, see Note 15. The following tables presents Seaboard’s sales disaggregated by revenue source and segment: Year Ended December 31, 2019 (Millions of dollars) Pork CT&M Marine Sugar and Alcohol Power All Other Consolidated Totals Major Products/Services Lines: Products $ 1,599 $ 3,654 $ — $ 112 $ — $ 17 $ 5,382 Transportation 10 — 1,061 — — 1 1,072 Energy 210 — — 9 117 — 336 Other 32 18 — — — — 50 Segment/Consolidated Totals $ 1,851 $ 3,672 $ 1,061 $ 121 $ 117 $ 18 $ 6,840 Year Ended December 31, 2018 (Millions of dollars) Pork CT&M Marine Sugar and Alcohol Power All Other Consolidated Totals Major Products/Services Lines: Products $ 1,451 $ 3,410 $ — $ 173 $ — $ 18 $ 5,052 Transportation 9 — 1,057 — — — 1,066 Energy 282 — — 11 122 — 415 Other 32 18 — — — — 50 Segment/Consolidated Totals $ 1,774 $ 3,428 $ 1,057 $ 184 $ 122 $ 18 $ 6,583 Revenue from goods and services transferred to customers at a single point in time accounted for approximately 85% of Seaboard’s net sales for the years ended December 31, 2019. Substantially all of the sales in Seaboard’s Marine segment are recognized ratably over the transit time for each voyage as Seaboard believes this is a faithful depiction of the performance obligation to its customers. Almost all of Seaboard’s contracts with its customers are short-term, defined as less than one year. Seaboard elected to use all practical expedients and therefore will not disclose the value of unsatisfied performance obligations for: (i) contracts with an original expected length of one 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 deferred revenue balance as of December 31, 2018 was recognized as revenue during the first quarter of 2019. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Income Taxes | Note 14 - Income Taxes Earnings before income taxes were as follows: Years ended December 31, (Millions of dollars) 2019 2018 2017 United States $ 174 $ (109) $ 273 Foreign 110 93 155 Total earnings (loss) excluding noncontrolling interests 284 (16) 428 Net loss attributable to noncontrolling interests — — 1 Total earnings (loss) before income taxes $ 284 $ (16) $ 427 The components of total income taxes were as follows: Years ended December 31, (Millions of dollars) 2019 2018 2017 Current: Federal $ 12 $ (20) $ 118 Foreign 39 32 19 State and local (1) — 2 Deferred: Federal (41) 5 20 Foreign (1) (5) 10 State and local (7) (11) 12 Income tax expense 1 1 181 Unrealized changes in other comprehensive income (loss) (4) 2 (3) Total income taxes $ (3) $ 3 $ 178 Income taxes for the years ended December 31, 2019, 2018 and 2017 differed from the amounts computed by applying the statutory U.S. federal income tax rate of 21% for 2019 and 2018 and 35% for 2017 to earnings (loss) before income taxes excluding noncontrolling interests for the following reasons: Years ended December 31, (Millions of dollars) 2019 2018 2017 Computed “expected” tax expense (benefit) excluding noncontrolling interests $ 60 $ (3) $ 150 Adjustments to tax expense (benefit) attributable to: Foreign tax differences 14 12 (22) Tax-exempt income (29) (13) — State income taxes, net of federal benefit (4) (8) 9 Repatriation tax — 14 112 Effect on deferreds of federal rate reduction — — (47) Foreign entity tax status change — 22 — Federal tax credits (47) (23) (18) Federal rate reduction effect on capital loss carryback — (3) — Domestic manufacturing deduction — — (2) Other 7 3 (1) Total income tax expense $ 1 $ 1 $ 181 In December 2019, the President of the U.S. signed into law the Further Consolidated Appropriations Act (the “2019 Tax Act”) that extended the federal blender’s credits through 2022, with retroactive recognition for 2018 and 2019. As a result, in the fourth quarter of 2019, Seaboard recognized non-taxable revenue of $136 million related to the 2018 and 2019 federal blender’s credits on the biodiesel the Pork segment blends. In February 2018, Congress retroactively extended the federal blender’s credits for 2017 and Seaboard recognized a one-time tax benefit of $4 million and non-taxable revenue of $61 million in the first quarter of 2018. There was no federal blender credit revenue recognized in 2017. In accordance with GAAP, the effects of changes in tax laws, including retroactive changes, are recognized in the financial statements in the period that the changes are enacted. Seaboard has certain investments in various entities that are expected to enable Seaboard to obtain certain investment tax credits. Seaboard has invested in three limited liability companies that operate refined coal processing plants that generate federal income tax credits based on production levels. Seaboard’s total contributions to these long-term investments were $15 million, $17 million and $10 million during 2019, 2018 and 2017, respectively. Additionally, Seaboard invested $20 million during 2019 in two limited liability companies involved in a biogas fueled power project that will generate federal income tax credits. These alternative long-term investments, accounted for using the equity method of accounting, generated in aggregate $34 million of investment tax credits for 2019. During 2018, Seaboard elected to change the tax status of a wholly owned subsidiary from a partnership to a corporation. This change in tax status resulted in an estimated $22 million of additional tax expense and deferred tax liabilities. On December 22, 2017, the President of the U.S. signed into law the Tax Cuts and Job Act (“2017 Tax Act”). Among other things, the 2017 Tax Act lowered corporate income tax rates from a maximum of 35% to a flat 21% rate effective January 1, 2018, imposed a tax on mandatory deemed repatriated earnings of foreign subsidiaries and implemented a territorial tax system. Seaboard recognized $112 million of tax expense related to mandatory deemed repatriated earnings and a $47 million benefit from the revaluation of deferred tax assets and liabilities in its consolidated financial statements for the year ended December 31, 2017. Seaboard recorded additional tax expense of $16 million related primarily to repatriation and, to a lesser extent, executive compensation items for the year ended December 31, 2018. The 2017 Tax Act also imposed two new U.S. tax base erosion provisions, the global intangible low-taxed income (“GILTI”) provision and the base-erosion and anti-abuse tax (“BEAT”) provision effective January 1, 2018. Seaboard accounts for the GILTI and BEAT taxes in the period incurred. As of December 31, 2019 and 2018, Seaboard had income taxes receivable of $14 million and $39 million, respectively, primarily related to domestic tax jurisdictions, and had income taxes payable of $16 million and $14 million, respectively, primarily related to foreign tax jurisdictions. As of December 31, 2019, Seaboard has $62 million of long-term income tax liability related to the 2017 Tax Act mandatory deemed repatriated earnings. Expected future payments on this liability were as follows: $2 million in 2021, $6 million in 2022, $6 million in 2023, $12 million in 2024 and $36 million thereafter. The 2017 Tax Act permitted the tax on mandatory deemed repatriated earnings to be paid over eight years. Seaboard provided for U.S. federal income tax on $1.3 billion of undistributed earnings from foreign operations in conjunction with the 2017 Tax Act. 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. and therefore, has not recorded deferred taxes for state or foreign withholding taxes that would result upon repatriation to the U.S. Determination of the tax that might be paid on unremitted earnings if eventually remitted is not practical. If Seaboard decided to repatriate these permanently reinvested earnings to the U.S., Seaboard would be required to provide for the net tax effects on these amounts. Components of the net deferred income tax liability were as follows: December 31, (Millions of dollars) 2019 2018 Deferred income tax liabilities: Depreciation $ 119 $ 140 Domestic partnerships 65 78 Unrealized gain on investments 36 — Other 4 8 $ 224 $ 226 Deferred income tax assets: Reserves/accruals $ 73 $ 70 Net operating and capital loss carry-forwards 63 56 LIFO 2 7 Tax credit carry-forwards 75 21 Other 4 4 217 158 Valuation allowance 68 59 Net deferred income tax liability $ 75 $ 127 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, 2019 $ 59 9 $ 68 Year Ended December 31, 2018 $ 59 — $ 59 Year Ended December 31, 2017 $ 58 1 $ 59 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 and 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, 2019, Seaboard had state net operating loss carry-forwards of approximately $179 million and foreign net operating loss carry-forwards of approximately $171 million, a portion of which expire in varying amounts between 2020 and 2039, while others have indefinite expiration periods. As of December 31, 2019, Seaboard had state tax credit carry-forwards of approximately $22 million, net of valuation allowance, all of which carry-forward indefinitely. Seaboard’s tax returns are regularly audited by federal, state and foreign tax authorities, which may result in material adjustments. Seaboard’s 2013, 2014, 2015 and 2016 U.S. income tax returns are currently under Internal Revenue Service examination. Tax years prior to 2013 are generally no longer subject to U.S. tax assessment. 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, 2019 and 2018, Seaboard had $31 million and $25 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) 2019 2018 Beginning balance at January 1 $ 25 $ 18 Additions for uncertain tax positions of prior years 4 2 Decreases for uncertain tax positions of prior years (3) — Additions for uncertain tax positions of current year 6 6 Lapse of statute of limitations (1) (1) Ending balance as of December 31 $ 31 $ 25 Seaboard accrues interest related to unrecognized tax benefits and penalties in income tax expense and had approximately $8 million and $6 million accrued for the payment of interest and penalties as of December 31, 2019 and 2018, respectively. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Information | |
Segment Information | Note 15 - 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 fresh and frozen pork products to further processors, foodservice operators, distributors and grocery stores throughout the U.S. and to foreign markets. This segment also produces biodiesel from pork fat and other animal fats and vegetable oils for sale to third parties. Substantially all of Seaboard’s Pork segment’s hourly employees at its processing plant are covered by a collective bargaining agreement that expires in 2024. 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 also operates flour, maize and feed mills and bakery operations in numerous foreign countries. 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, primarily to be marketed locally. The Power segment is an independent power producer in the Dominican Republic operating a power generating barge. The Turkey segment, accounted for using the equity method, produces turkeys to process and sells branded and non-branded turkey products. Total assets for the Turkey segment represent Seaboard’s investment in Butterball. Revenues for the All Other segment are primarily derived from a jalapeño pepper processing operation. Below are significant segment events that impact financial results for the periods covered by this report. In February 2019, the Pork segment entered into an asset purchase agreement to buy an idle ethanol plant in Hugoton, Kansas for approximately $40 million. Seaboard accounted for this transaction as an asset acquisition as no workforce or substantive processes were acquired. The purchase price was allocated to property, plant and equipment based on a relative fair value basis. The Pork segment is converting the Hugoton, Kansas plant to a renewable diesel production facility, with operations expected to begin in 2022. The Pork segment’s biodiesel plants have historically received federal blender’s credits for the biodiesel they blend. As a result of the 2019 Tax Law, Seaboard recognized $60 million of net revenue related to the 2018 and 2019 federal blender’s credits. Revenue will be recognized ratably during the years 2020 through 2022 based on biodiesel production. In October 2019, the CT&M segment obtained control of a former non-consolidated affiliate that operates a grain trading business in Peru. On January 5, 2018, the CT&M segment acquired flour milling and associated businesses in Senegal, Ivory Coast and Monaco. See Note 2 for further details of these acquisitions. The Power segment is currently constructing a power barge for use in the Dominican Republic that is anticipated to begin operations in 2021. Seaboard’s Power segment continues to explore strategic alternatives for the existing barge, including selling, relocating or operating in conjunction with the new barge at the current site. During 2019, the Power segment sold its 29.9% interest in an electricity generation facility. See Note 7 for discussion of the non-consolidated affiliate. The following tables set forth specific financial information about each segment as reviewed by Seaboard’s management, except for the Turkey segment information previously disclosed in Note 7. 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, are used as the measures of evaluating segment performance because management does not consider interest, other investment income (loss) and income tax expense on a segment basis. Administrative services provided by the corporate office are allocated to the individual segments and represent corporate services rendered to and costs incurred for each specific segment, with no allocation to individual segments of general corporate management oversight costs. Corporate assets include short-term investments, other current assets related to deferred compensation plans, fixed assets, and other miscellaneous items. Corporate operating losses represent certain operating costs not specifically allocated to individual segments and include costs related to Seaboard’s deferred compensation programs, which are offset by the effect of the mark-to-market adjustments on these investments recorded in other investment income (loss), net. Sales to External Customers: Years ended December 31, (Millions of dollars) 2019 2018 2017 Pork $ 1,851 $ 1,774 $ 1,609 Commodity Trading and Milling 3,672 3,428 2,945 Marine 1,061 1,057 956 Sugar and Alcohol 121 184 186 Power 117 122 97 All Other 18 18 16 Segment/Consolidated Totals $ 6,840 $ 6,583 $ 5,809 Operating Income (Loss): Years ended December 31, (Millions of dollars) 2019 2018 2017 Pork $ 54 $ 117 $ 193 Commodity Trading and Milling 62 46 25 Marine 4 25 21 Sugar and Alcohol (16) 9 21 Power 27 21 9 All Other 2 2 2 Segment Totals 133 220 271 Corporate (29) (11) (31) Consolidated Totals $ 104 $ 209 $ 240 Income (Loss) from Affiliates: Years ended December 31, (Millions of dollars) 2019 2018 2017 Pork $ (22) $ (30) $ (10) Commodity Trading and Milling (5) (11) 7 Marine 3 2 (7) Sugar and Alcohol 1 1 1 Power 3 10 6 Turkey (21) (16) (4) Segment/Consolidated Totals $ (41) $ (44) $ (7) Depreciation and Amortization: Years ended December 31, (Millions of dollars) 2019 2018 2017 Pork $ 75 $ 73 $ 69 Commodity Trading and Milling 25 22 10 Marine 23 24 24 Sugar and Alcohol 6 6 7 Power 8 8 8 Segment Totals 137 133 118 Corporate 1 1 — Consolidated Totals $ 138 $ 134 $ 118 Total Assets: December 31, (Millions of dollars) 2019 2018 Pork $ 1,802 $ 1,304 Commodity Trading and Milling 1,621 1,423 Marine 554 345 Sugar and Alcohol 139 138 Power 283 203 Turkey 275 295 All Other 10 8 Segment Totals 4,684 3,716 Corporate 1,601 1,591 Consolidated Totals $ 6,285 $ 5,307 Investments in and Advances to Affiliates: December 31, (Millions of dollars) 2019 2018 Pork $ 183 $ 192 Commodity Trading and Milling 237 255 Marine 32 28 Sugar and Alcohol 5 4 Power 3 30 Turkey 275 295 Segment/Consolidated Totals $ 735 $ 804 Capital Expenditures: Years ended December 31, (Millions of dollars) 2019 2018 2017 Pork $ 164 $ 86 $ 100 Commodity Trading and Milling 23 29 15 Marine 26 18 37 Sugar and Alcohol 15 5 20 Power 121 23 1 Segment Totals 349 161 173 Corporate — 1 — Consolidated Totals $ 349 $ 162 $ 173 Geographic Information Seaboard had sales in Colombia totaling $778 million, $757 million and $495 million for the years ended December 31, 2019, 2018 and 2017, respectively, representing approximately 11%, 11% and 9% of total sales for each respective year. Seaboard had sales in South Africa totaling $668 million, $589 million and $581 million for the years ended December 31, 2019, 2018 and 2017, respectively, representing approximately 10%, 9% and 10% of total sales for each respective year. 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: Years ended December 31, (Millions of dollars) 2019 2018 2017 Caribbean, Central and South America $ 2,792 $ 2,753 $ 2,295 Africa 1,859 1,668 1,483 United States 1,447 1,408 1,271 Pacific Basin and Far East 370 381 393 Canada/Mexico 308 255 238 Europe 52 100 99 All other 12 18 30 Totals $ 6,840 $ 6,583 $ 5,809 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) 2019 2018 United States $ 899 $ 775 Singapore 139 21 Dominican Republic 103 109 Argentina 59 50 Senegal 43 48 Zambia 38 20 Ivory Coast 33 36 All other 117 101 Totals $ 1,431 $ 1,160 |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data | |
Quarterly Financial Data | Note 16 - Quarterly Financial Data (unaudited) 1st 2nd 3rd 4th Total for (Millions of dollars except per share amounts) Quarter Quarter Quarter Quarter the Year 2019 Net sales $ 1,543 $ 1,822 $ 1,663 $ 1,812 (a) $ 6,840 Operating income (loss) $ (34) $ 53 $ (6) $ 91 (a) $ 104 Net earnings (loss) attributable to Seaboard $ 57 $ 58 $ (7) $ 175 (a) $ 283 Earnings (loss) per common share $ 48.79 $ 50.13 $ (6.00) $ 149.91 (a) $ 242.78 2018 Net sales $ 1,579 $ 1,691 $ 1,651 $ 1,662 $ 6,583 Operating income $ 97 $ 32 $ 37 $ 43 $ 209 Net earnings (loss) attributable to Seaboard $ 32 $ 7 $ 35 $ (91) (b) $ (17) Earnings (loss) per common share $ 26.75 $ 6.28 $ 29.93 $ (77.58) (b) $ (14.61) (a) During the fourth quarter of 2019, Seaboard recognized $60 million of net sales and operating income, or $51.14 per common share, as a result of the federal blender’s credits being extended retroactively for 2019 and 2018. See Note 14 for discussion on the federal blender’s credits. (b) During the fourth quarter of 2018, Seaboard recorded other investment losses of $167 million primarily related to mark-to-market losses on short-term investments. As a comparison, other investment income of $73 million was recorded in the fourth quarter of 2019. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation and Investments in Affiliates | Principles of Consolidation and Investments in Affiliates 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. Investments in non-controlled affiliates where we have significant influence are accounted for by the equity method. Financial information from certain foreign subsidiaries and affiliates is reported on a one |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include those related to allowance for doubtful accounts, valuation of inventories, impairment of long-lived assets, potential write down related to investments in and advances to affiliates and notes receivable from affiliates, income taxes, lease liabilities and right of use (“ROU”) assets and accrued pension liability. Actual results could differ from those estimates. |
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. Certain of the major contracts and transactions, however, are denominated in U.S. dollars. In addition, the value of the U.S. dollar fluctuates in relation to the currencies of countries where certain of Seaboard’s foreign subsidiaries and affiliates primarily conduct business. These fluctuations result in exchange gains and losses. The activities of these foreign subsidiaries and affiliates are primarily conducted with U.S. subsidiaries or operate in hyper-inflationary environments. As a result, the financial statements of certain foreign subsidiaries and affiliates are re-measured using the U.S. dollar as the functional currency. Certain CT&M segment consolidated subsidiaries located in Brazil, Canada, Guyana, Ivory Coast, Senegal, South Africa and Zambia use local currency as their functional currency. Also, certain non-controlled, non-consolidated affiliates of the CT&M and Sugar and Alcohol segments 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). For the consolidated subsidiaries and non-consolidated affiliates, U.S. dollar denominated net asset or liability conversions to the local currency are recorded through income. GAAP requires the use of highly inflationary accounting for countries whose cumulative three-year inflation exceeds 100%. In the second quarter of 2018, the Argentine peso rapidly devalued relative to the U.S. dollar, which along with increased inflation, indicated that the three-year cumulative inflation in that country exceeded 100%. As a result, Seaboard adopted highly inflationary accounting as of July 1, 2018 for Seaboard’s Sugar and Alcohol segment. Under highly inflationary accounting, the Sugar and Alcohol segment’s functional currency became the U.S. dollar, and its income statement and balance sheet are measured in U.S. dollars using both current and historical rates of exchange. The effect of changes in exchange rates on peso-denominated monetary assets and liabilities are reflected in foreign currency gains (losses), net. For the years ended December 31, 2019 and 2018, Seaboard recognized $(3) million and $9 million in foreign currency gains (losses) related to the adoption of highly inflationary accounting as a result of its net monetary liability position. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, management considers all demand deposits, overnight investments and other investments with original maturities less than three months as cash equivalents. |
Supplemental Cash Flow Information | Supplemental Cash Flow Information For the year ended December 31, 2019, cash paid for amounts included in the measurement of operating lease liabilities was $137 million, all included in net cash from operating activities. Cash paid for amounts included in the measurement of finance lease liabilities was $3 million, with principal payments of $2 million included in financing activities and interest of $1 million included in operating activities. Seaboard reports the amortization of ROU assets and the change in operating lease liabilities in other liabilities, exclusive of debt in the consolidated statement of cash flows. Right of use assets obtained in exchange for new and modified operating and finance lease liabilities were $95 million and $46 million, respectively, for the year ended December 31, 2019. Other non-cash activities were related to the non-cash consideration paid in the acquisitions discussed further in Note 2, including incurrence of debt and contingent consideration. |
Short-Term Investments | Short-Term Investments Short-term investments are categorized as trading securities and reported at their estimated fair value with any unrealized gains and losses included in other investment income (loss), net in the consolidated statements of comprehensive income. Purchases and sales are recorded on a settlement date basis, and gains and losses on investment sales are generally based on the specific identification method. Short-term investments are retained for future use in the business. |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded at the invoiced amount and generally do not bear interest. The Power segment, however, collects interest on certain past due accounts, and the Commodity Trading and Milling (“CT&M”) segment provides extended payment terms for certain customers in certain countries due to local market conditions. The allowance for doubtful accounts is Seaboard’s best estimate of the amount of probable credit losses. For most operating segments, Seaboard uses a specific identification approach to determine, in management’s judgment, the collection value of certain past due accounts based on contractual terms. For the Marine segment, the allowance for doubtful accounts is based on an aging percentage methodology primarily based on historical write-off experience. Seaboard reviews its allowance for doubtful accounts monthly. Management believes its allowance for doubtful accounts is adequate and reduces receivables recorded to their expected net realizable value. As of December 31, 2019 and 2018, Seaboard had gross non-affiliate foreign receivables of approximately $309 million and $327 million, respectively, which generally represent more of a collection risk than the domestic receivables, although as of December 31, 2019 no individual material amounts were deemed to have a heightened risk of collectability. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The activity within the allowance for doubtful accounts was as follows: Balance at Balance at (Millions of dollars) beginning of year Provision (a) Net deductions (b) end of year Allowance for Doubtful Accounts: Year Ended December 31, 2019 $ 33 5 (10) $ 28 Year Ended December 31, 2018 $ 29 7 (3) $ 33 Year Ended December 31, 2017 $ 14 16 (1) $ 29 (a) (b) |
Notes Receivable | Notes Receivable Seaboard monitors the credit quality of notes receivable, the majority of which are from its affiliates. For notes receivable from affiliates, Seaboard obtains and reviews financial information on a monthly basis and Seaboard representatives serve on their Board of Directors. If it is indicated based on current information and events it is probable that Seaboard will be unable to collect all amounts due according to the contractual terms of the notes receivable and an amount can be reasonably estimated, Seaboard reduces the notes receivable to estimated realizable value. The activity within the allowance for 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, 2019 $ 17 — — $ 17 Year Ended December 31, 2018 $ 16 1 — $ 17 Year Ended December 31, 2017 $ 16 — — $ 16 |
Inventories | Inventories Seaboard uses the lower of last-in, first-out (“LIFO”) cost or market for determining inventory cost of hogs, fresh pork products and related materials. Grain, flour and feed inventories at foreign milling operations are valued at the lower of weighted average cost and net realizable value. All other inventories are valued at the lower of first-in, first-out (“FIFO”) cost and net realizable value. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are carried at cost and are being depreciated on the straight-line method over useful lives, 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 a comparison of the carrying amount of the asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are determined to be impaired, the impairment to be recognized is measured by the amount by which 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 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. Seaboard has elected not to recognize ROU assets and lease liabilities for short-term leases for all classes of underlying assets. Short-term leases are leases with terms greater than 1 month, but less than 12 months. Also, Seaboard elected to account for lease and nonlease maintenance components as a single lease component for all classes of underlying assets. |
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 acquisition, or more frequently if circumstances indicate that impairment is likely. Any one event or a combination of events such as change in the business climate, a negative change in relationships with significant customers and changes to strategic decisions, including decisions to expand made in response to economic or competitive conditions, could require an interim assessment prior to the next required annual assessment. If qualitative factors indicate more likely than not an impairment is possible, Seaboard performs its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and would recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. Based on the annual assessment conducted by these reporting units, there were 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, 2017 $ 18 $ 4 $ 22 Acquisition — 148 148 Foreign currency translation — (3) (3) Balance as of December 31, 2018 18 149 167 Acquisition — 1 1 Foreign currency translation — (4) (4) Balance as of December 31, 2019 $ 18 $ 146 $ 164 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, 2019 December 31, 2018 Customer Trade Customer Trade (Millions of dollars) relationships names Total relationships names Total Gross carrying amount $ 50 $ 28 $ 78 $ 50 $ 28 $ 78 Accumulated amortization and currency translation (13) (7) (20) (6) (3) (9) Net carrying amount $ 37 $ 21 $ 58 $ 44 $ 25 $ 69 Amortization of intangible assets was $8 million and $6 million for the years ended December 31, 2019 and 2018, respectively. Using the exchange rates in effect at year-end, estimated amortization of intangible assets as of December 31, 2019 was as follows: $8 million in 2020, $8 million in 2021, $8 million in 2022, $8 million in 2023, $8 million in 2024 and $18 million thereafter. |
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. The cost of these self-insurance programs is accrued based upon estimated settlements for known and anticipated claims. Changes in estimates to previously recorded reserves are reflected in current operating results. |
Asset Retirement Obligation | Asset Retirement Obligation Seaboard has recorded long-lived assets and a related liability for the asset retirement obligation costs associated with the closure of the hog lagoons it is legally obligated to close in the future should Seaboard cease operations or plan to close such lagoons voluntarily in accordance with a changed operating plan. 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 non-current other liabilities in the consolidated balance sheets with the retirement asset 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) 2019 2018 Beginning balance $ 23 $ 22 Accretion expense 2 1 Ending balance $ 25 $ 23 Revenue Recognition 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. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer . |
Revenue Recognition | Years ended December 31, (Millions of dollars) 2019 2018 Beginning balance $ 23 $ 22 Accretion expense 2 1 Ending balance $ 25 $ 23 |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Seaboard recognizes all derivatives as either assets or liabilities at their fair values. Accounting for changes in the fair value of a derivative depends on its designation and effectiveness. Derivatives qualify for treatment as hedges for accounting purposes when there is a high correlation between the change in fair value of the instrument and the related change in value of the underlying commitment. Additionally, in order to designate a derivative financial instrument as a hedge for accounting purposes, extensive record keeping is required. For derivatives that qualify as hedges for accounting purposes, the change in fair value has no net impact on earnings, to the extent the derivative is considered effective, until the hedged transaction affects earnings. For derivatives that are not designated as hedging instruments for accounting purposes, or for the ineffective portion of a hedging instrument, the change in fair value affects current period net earnings. Seaboard uses derivative instruments to manage various types of market risks, including primarily commodity futures and option contracts, foreign currency exchange agreements, interest rate exchange agreements and equity future contracts. While management believes each of these instruments are primarily entered into in order to effectively manage various market risks, as of December 31, 2019, none |
Income Taxes | Income Taxes 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. |
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. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Adopted On January 1, 2019, Seaboard adopted guidance which requires the recognition of ROU assets and lease liabilities for most leases. As a result of this adoption, Seaboard recorded operating lease ROU assets of $460 million, adjusted for the deferred rent liability balance as of December 31, 2018, and lease liabilities of $498 million. The adoption of the new guidance did not have a material impact on the consolidated statement of comprehensive income and the consolidated statement of cash flows. The accounting for finance leases, formerly called capital leases, remained substantially unchanged. Seaboard adopted the new guidance using the effective date method and, therefore, prior period financials were not revised. Seaboard elected the package of practical expedients available upon transition, which permitted Seaboard to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs. See Note 6 for additional details on the impact of adopting this new accounting standard. On January 1, 2018, Seaboard adopted guidance that eliminated cost method accounting and requires measuring equity investments, other than those accounted for using the equity method of accounting, at fair value and recognizing fair value changes in net income if a readily determinable fair value exists. On January 1, 2018 Seaboard early adopted guidance that permitted companies to reclassify stranded tax effects resulting from the Tax Cuts and Job Act from accumulated other comprehensive income (“AOCI”) to retained earnings . Seaboard reclassified $45 million of tax effects from AOCI to retained earnings for the year ended December 31, 2017 . Recently Issued Accounting Standards Not Yet Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued guidance on the measurement of financial instrument credit losses that requires, among other things, the use of a new current expected credit loss ("CECL") model in order to determine the allowance for doubtful accounts with respect to accounts receivable and notes receivable. The CECL model requires estimation of lifetime expected credit loss based on historical experience, current conditions and reasonable supportable forecasts. The new guidance replaces the existing incurred loss model and will be effective for Seaboard on January 1, 2020. Seaboard expects the cumulative-effect adjustment to retained earnings will be less than $5 million. In December 2019, the FASB issued guidance which simplifies the accounting for income taxes by removing certain exceptions to the general principles and improves consistent application of GAAP for other areas by clarifying and amending existing guidance. This guidance is effective for Seaboard on January 1, 2021. Seaboard is evaluating the effect of adopting this new accounting guidance but does not expect adoption will have a material impact on its disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |
Schedule of allowance for doubtful accounts | Balance at Balance at (Millions of dollars) beginning of year Provision (a) Net deductions (b) end of year Allowance for Doubtful Accounts: Year Ended December 31, 2019 $ 33 5 (10) $ 28 Year Ended December 31, 2018 $ 29 7 (3) $ 33 Year Ended December 31, 2017 $ 14 16 (1) $ 29 (a) (b) |
Schedule of allowance for 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, 2019 $ 17 — — $ 17 Year Ended December 31, 2018 $ 16 1 — $ 17 Year Ended December 31, 2017 $ 16 — — $ 16 |
Schedule of changes in the carrying amount of goodwill | Pork CT&M (Millions of dollars) Segment Segment Total Balance as of December 31, 2017 $ 18 $ 4 $ 22 Acquisition — 148 148 Foreign currency translation — (3) (3) Balance as of December 31, 2018 18 149 167 Acquisition — 1 1 Foreign currency translation — (4) (4) Balance as of December 31, 2019 $ 18 $ 146 $ 164 |
Schedule of gross carrying amount and accumulated amortization for finite-lived intangibles | December 31, 2019 December 31, 2018 Customer Trade Customer Trade (Millions of dollars) relationships names Total relationships names Total Gross carrying amount $ 50 $ 28 $ 78 $ 50 $ 28 $ 78 Accumulated amortization and currency translation (13) (7) (20) (6) (3) (9) Net carrying amount $ 37 $ 21 $ 58 $ 44 $ 25 $ 69 |
Schedule of changes in the asset retirement obligation | Years ended December 31, (Millions of dollars) 2019 2018 Beginning balance $ 23 $ 22 Accretion expense 2 1 Ending balance $ 25 $ 23 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Mimran | |
Acquisitions | |
Summary of purchase price based on acquisition date fair values and using the exchange rate in effect at time of acquisition | (Millions of dollars) Cash payment, net of $64 million of cash acquired $ 264 Euro-denominated note payable due 2021, 3.25% interest 46 Contingent consideration 14 Total fair value of consideration at acquisition date $ 324 |
Schedule of allocation of purchase price | (Millions of dollars) Current assets $ 83 Property, plant and equipment 91 Intangible assets 78 Goodwill 148 Other long-term assets 4 Total fair value of assets acquired 404 Current liabilities (38) Other long-term liabilities (38) Total fair value of liabilities assumed (76) Less: Noncontrolling interest (4) Net fair value of assets acquired $ 324 |
Schedule of proforma information related to acquisitions | Year ended (Unaudited) December 31, (Millions of dollars except per share amounts) 2018 2017 Net sales $ 6,643 $ 6,095 Net earnings (loss) $ (13) $ 272 Earnings (loss) per common share $ (10.90) $ 233.45 |
CLDP | |
Acquisitions | |
Summary of purchase price based on acquisition date fair values and using the exchange rate in effect at time of acquisition | (Millions of dollars) Receivables $ 33 Inventories 55 Other current assets 7 Property, plant and equipment 12 Goodwill 1 Total fair value of assets acquired 108 Lines of credit (65) Current maturities of long-term debt (2) Other current liabilities (6) Long-term debt, less current maturities (6) Total fair value of liabilities assumed (79) Net fair value of assets acquired $ 29 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments | |
Summary of the estimated fair value of short-term investments classified as trading securities | December 31, (Millions of dollars) 2019 2018 Domestic equity securities $ 706 $ 632 Domestic debt securities 409 268 Foreign equity securities 189 218 High yield securities 56 19 Foreign debt securities 43 16 Collateralized loan obligations 15 28 Money market funds held in trading accounts 12 146 Other trading securities 4 9 Total trading short-term investments $ 1,434 $ 1,336 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventories | |
Summary of inventories | December 31, (Millions of dollars) 2019 2018 At lower of LIFO cost or market: Hogs and materials $ 387 $ 361 Fresh pork and materials 46 36 LIFO adjustment (64) (58) Total inventories at lower of LIFO cost or market 369 339 At lower of FIFO cost and net realizable value: Grains, oilseeds and other commodities 353 229 Sugar produced and in process 17 17 Other 109 81 Total inventories at lower of FIFO cost and net realizable value 479 327 Grain, flour and feed at lower of weighted average cost and net realizable value 174 149 Total inventories $ 1,022 $ 815 |
Schedule of reserve for LIFO valuation | Balance at Increase Balance at (Millions of dollars) beginning of year (decrease) end of year Reserve for LIFO Valuation: Year Ended December 31, 2019 $ 58 6 $ 64 Year Ended December 31, 2018 $ 31 27 $ 58 Year Ended December 31, 2017 $ 21 10 $ 31 |
Net Property, Plant and Equip_2
Net Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Net Property, Plant and Equipment | |
Summary of property, plant and equipment | Useful December 31, (Millions of dollars) Lives 2019 2018 Land and improvements 3 - 15 years $ 250 $ 238 Buildings and improvements 30 years 646 591 Machinery and equipment 3 - 20 years 1,360 1,298 Vessels and vehicles 3 - 18 years 147 147 Office furniture and fixtures 5 years 42 36 Contract growers 5 - 15 years 44 — Construction in progress 287 96 2,776 2,406 Accumulated depreciation and amortization (1,345) (1,246) Net property, plant and equipment $ 1,431 $ 1,160 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases | |
Summary of finance leases in condensed consolidated balance sheet | (Millions of dollars) Finance lease right of use assets, net Property, plant and equipment, net $ 50 Finance lease liabilities Other current liabilities 5 Non-current finance lease liabilities Other liabilities 40 |
Summary of components of lease costs | (Millions of dollars) Operating lease cost $ 138 Finance lease cost: Amortization of right of use assets 3 Interest on lease liabilities 1 Variable lease cost 7 Short-term lease cost 48 Total lease cost $ 197 |
Summary of maturities of lease liabilities | Operating Finance (Millions of dollars) Leases Leases 2020 $ 130 $ 7 2021 113 7 2022 84 7 2023 58 7 2024 48 7 Thereafter 164 26 Total undiscounted lease payments 597 61 Less imputed interest (114) (16) Total lease liability $ 483 $ 45 |
Schedule of commitments as of December 31, 2018 | Below is Seaboard’s commitments table as of December 31, 2018 that disclosed operating lease payments for the next five years and thereafter. Seaboard had no material capital leases as of December 31, 2018. Years ended December 31, (Millions of dollars) 2019 2020 2021 2022 2023 Thereafter Ports $ 18 $ 18 $ 19 $ 19 $ 20 $ 109 Vessel, time and voyage-charters 58 27 26 13 8 25 Contract grower agreements 47 41 37 27 18 61 Other operating lease payments 18 13 9 8 6 15 Total unrecognized non-cancelable commitments $ 141 $ 99 $ 91 $ 67 $ 52 $ 210 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Pork | |
Investments in and Advances to Affiliates and Notes Receivable from Affiliates | |
Schedule of combined condensed financial information of non-controlled, non-consolidated affiliates | Pork Segment December 31, (Millions of dollars) 2019 2018 2017 Net sales $ 1,453 $ 927 $ 441 Net income (loss) $ (43) $ (60) $ (21) Total assets $ 639 $ 623 $ 596 Total liabilities $ 277 $ 243 $ 138 Total equity $ 362 $ 380 $ 458 |
CT&M | |
Investments in and Advances to Affiliates and Notes Receivable from Affiliates | |
Schedule of combined condensed financial information of non-controlled, non-consolidated affiliates | Commodity Trading and Milling Segment December 31, (Millions of dollars) 2019 2018 2017 Net sales $ 3,129 $ 3,238 $ 2,907 Net income (loss) $ (12) $ (13) $ 23 Total assets $ 1,697 $ 1,914 $ 1,793 Total liabilities $ 1,075 $ 1,242 $ 1,150 Total equity $ 622 $ 672 $ 643 |
Marine | |
Investments in and Advances to Affiliates and Notes Receivable from Affiliates | |
Schedule of combined condensed financial information of non-controlled, non-consolidated affiliates | Marine Segment December 31, (Millions of dollars) 2019 2018 2017 Net sales $ 70 $ 66 $ 58 Net income $ 12 $ 11 $ 5 Total assets $ 269 $ 272 $ 229 Total liabilities $ 107 $ 133 $ 114 Total equity $ 162 $ 139 $ 115 |
Sugar and Alcohol | |
Investments in and Advances to Affiliates and Notes Receivable from Affiliates | |
Schedule of combined condensed financial information of non-controlled, non-consolidated affiliates | Sugar and Alcohol Segment December 31, (Millions of dollars) 2019 2018 2017 Net sales $ 10 $ 5 $ 10 Net income $ 3 $ 3 $ 2 Total assets $ 13 $ 10 $ 10 Total liabilities $ 2 $ 2 $ 2 Total equity $ 11 $ 8 $ 8 |
Power | |
Investments in and Advances to Affiliates and Notes Receivable from Affiliates | |
Schedule of combined condensed financial information of non-controlled, non-consolidated affiliates | Power Segment December 31, (Millions of dollars) 2019 2018 2017 Net sales $ 143 $ 138 $ 105 Net income $ 10 $ 33 $ 23 Total assets $ 11 $ 247 $ 265 Total liabilities $ 4 $ 139 $ 145 Total equity $ 7 $ 108 $ 120 |
Turkey | |
Investments in and Advances to Affiliates and Notes Receivable from Affiliates | |
Schedule of combined condensed financial information of non-controlled, non-consolidated affiliates | Turkey Segment December 31, (Millions of dollars) 2019 2018 2017 Net sales $ 1,612 $ 1,591 $ 1,670 Operating income (loss) $ (20) $ (16) $ 15 Net loss $ (40) $ (30) $ (8) Total assets $ 1,038 $ 1,072 $ 999 Total liabilities $ 507 $ 502 $ 400 Total equity $ 531 $ 570 $ 599 |
Lines of Credit and Long-Term_2
Lines of Credit and Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Lines of Credit and Long-Term Debt | |
Summary of long-term debt | December 31, (Millions of dollars) 2019 2018 Term Loan due 2028 $ 691 $ 698 Foreign subsidiary obligations 102 81 Total long-term debt at face value 793 779 Current maturities of long-term debt and unamortized discount and costs (63) (40) Long-term debt, less current maturities and unamortized discount and costs $ 730 $ 739 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Statement [Table] | |
Summary of non-cancelable commitments under contractual obligations | Years ended December 31, (Millions of dollars) 2020 2021 2022 2023 2024 Thereafter Totals Hog procurement contracts (a) $ 78 $ 82 $ 64 $ 47 $ 34 $ — $ 305 Grain commitments (b) 93 1 — — — — 94 Grain purchase contracts for resale (c) 611 — — — — — 611 Fuel supply contracts (d) 7 47 47 47 48 289 485 Construction commitments (e) 114 29 — — — — 143 Equipment and other commitments 122 9 4 2 2 24 163 Total unrecognized non-cancelable commitments $ 1,025 $ 168 $ 115 $ 96 $ 84 $ 313 $ 1,801 (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, 2019. During 2019, 2018 and 2017, the Pork segment paid $121 million, $77 million and $99 million, respectively, for hogs purchased under committed contracts. (b) The Pork segment enters into grain purchase contracts to support its hog operations. The amounts are based on projected commodity prices as of December 31, 2019. (c) The CT&M segment enters into grain purchase contracts, primarily to support firm sales commitments. The amounts are based on projected commodity prices as of December 31, 2019. (d) The Power segment has a natural gas supply contract for a significant portion of the fuel required for the barge under construction. The commitment has both fixed and variable price components and the amount included is partially based on market prices as of December 31, 2019. The Marine segment also has fuel purchase contracts. (e) The Power segment’s commitments to the contractor for its new power generating barge, anticipated to begin operations in mid-2021, were approximately $26 million . Contractual costs to complete the Pork segment’s Oklahoma pork processing plant expansion in 2020 totaled approximately $21 million. The Pork segment’s renewable diesel production facility, expected to be operational in early 2022, has commitments of approximately $86 million. Expected payments may vary based on timing of milestones achieved. |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefits | |
Schedule of Plans' assets measured at estimated fair value | December 31, (Millions of dollars) 2019 Level 1 Level 2 Level 3 Assets: Domestic equity securities $ 84 $ 84 $ — $ — Foreign equity securities 57 57 — — Domestic fixed income mutual funds 30 30 — — Foreign fixed income mutual funds 12 12 — — Money market funds 2 2 — — Total assets $ 185 $ 185 $ — $ — December 31, (Millions of dollars) 2018 Level 1 Level 2 Level 3 Assets: Domestic equity securities $ 69 $ 69 $ — $ — Foreign equity securities 47 47 — — Domestic fixed income mutual funds 27 27 — — Foreign fixed income mutual funds 11 11 — — Money market funds 2 2 — — Total assets $ 156 $ 156 $ — $ — |
Schedule of assumptions used in determining pension information for plans | Years ended December 31, 2019 2018 2017 Weighted average assumptions Discount rate used to determine obligations 2.15 - 3.50 % 3.50 - 4.50 % 2.75 - 3.80 % Discount rate used to determine net periodic benefit cost 3.50 - 4.50 % 2.75 - 3.80 % 2.90 - 4.60 % Expected return on plan assets 6.25 % 6.25 % 6.50 % Long-term rate of increase in compensation levels 4.00 % 4.00 % 4.00 % |
Schedule of the funded status | December 31, (Millions of dollars) 2019 2018 Reconciliation of benefit obligation: Benefit obligation at beginning of year $ 293 $ 300 Service cost 8 10 Interest cost 12 11 Actuarial losses (gains) 50 (22) Plan settlements (9) — Benefits paid (9) (6) Other 3 — Benefit obligation at end of year $ 348 $ 293 Reconciliation of fair value of plan assets: Fair value of plan assets at beginning of year $ 156 $ 171 Actual return on plan assets 35 (11) Employer contributions 9 2 Plan settlements (9) — Benefits paid (6) (6) Fair value of plan assets at end of year $ 185 $ 156 Funded status $ (163) $ (137) |
Schedule of net periodic benefit cost of plans | Years ended December 31, (Millions of dollars) 2019 2018 2017 Components of net periodic benefit cost: Service cost $ 8 $ 10 $ 9 Interest cost 12 11 11 Expected return on plan assets (10) (11) (10) Amortization 5 6 5 Settlement loss recognized 2 — 2 Net periodic benefit cost $ 17 $ 16 $ 17 |
Derivatives and Fair Value of_2
Derivatives and Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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) 2019 Level 1 Level 2 Level 3 Assets: Trading securities – short-term investments: Domestic equity securities $ 706 $ 706 $ — $ — Domestic debt securities 409 117 292 — Foreign equity securities 189 189 — — High yield securities 56 10 46 — Foreign debt securities 43 — 43 — Collateralized loan obligations 15 — 15 — Money market funds held in trading accounts 12 12 — — Other trading securities 4 4 — — Trading securities – other current assets: Domestic equity securities 40 40 — — Money market funds held in trading accounts 6 6 — — Foreign equity securities 3 3 — — Fixed income securities 2 2 — — Derivatives: Commodities 6 6 — — Total assets $ 1,491 $ 1,095 $ 396 $ — Liabilities: Contingent consideration $ 13 $ — $ — $ 13 Derivatives: Commodities 4 4 — — Foreign currencies 3 — 3 — Total liabilities $ 20 $ 4 $ 3 $ 13 December 31, (Millions of dollars) 2018 Level 1 Level 2 Level 3 Assets: Trading securities – short-term investments: Domestic equity securities $ 632 $ 632 $ — $ — Domestic debt securities 268 215 53 — Foreign equity securities 218 218 — — Money market funds held in trading accounts 146 146 — — Collateralized loan obligations 28 — 28 — High yield securities 19 7 12 — Foreign debt securities 16 2 14 — Other trading securities 14 14 — — Trading securities – other current assets: Domestic equity securities 32 32 — — Money market funds held in trading accounts 5 5 — — Foreign equity securities 3 3 — — Fixed income securities 3 3 — — Other 1 1 — — Derivatives: Commodities 6 4 2 — Foreign currencies 2 — 2 — Total assets $ 1,393 $ 1,282 $ 111 $ — Liabilities: Trading securities – short-term investments: Other trading securities $ 5 $ — $ 5 $ — Contingent consideration 13 — — 13 Derivatives: Commodities 4 4 — — Total liabilities $ 22 $ 4 $ 5 $ 13 |
Schedule of gain or (loss) recognized for each type of derivative and its location in the condensed consolidated statements of comprehensive income | (Millions of dollars) 2019 2018 Commodities Cost of sales $ (52) $ (12) Foreign currencies Cost of sales 1 2 Foreign currencies Foreign currency gains (losses), net (1) 1 Equity Other investment income (loss), net (4) (6) |
Schedule of fair value of each type of derivative and its location in the condensed consolidated balance sheets | Asset Derivatives Liability Derivatives December 31, December 31, December 31, December 31, (Millions of dollars) 2019 2018 2019 2018 Commodities (a) Other current assets $ 6 $ 6 Other current liabilities $ 4 $ 4 Foreign currencies Other current assets — 2 Other current liabilities 3 — Equity (a) Short-term investments — — Short-term investments — 5 (a) |
Stockholders' Equity and Accu_2
Stockholders' Equity and Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity and Accumulated Other Comprehensive Loss | |
Schedule of components of accumulated other comprehensive loss, net of related taxes | Cumulative Foreign Unrealized Currency Gain Unrecognized Translation on Pension (Millions of dollars) Adjustment Investments Cost Total Balance December 31, 2017 $ (297) $ 7 $ (64) $ (354) Other comprehensive loss before reclassifications (52) — (1) (53) Amounts reclassified from accumulated other comprehensive loss to net loss — — 4 (a) 4 Other comprehensive income (loss), net of tax (52) — 3 (49) Amounts reclassified from accumulated other comprehensive loss to retained earnings — (7) (b) — (7) Balance December 31, 2018 $ (349) $ — $ (61) $ (410) Other comprehensive loss before reclassifications (20) — (14) (34) Amounts reclassified from accumulated other comprehensive loss to net earnings — — 4 (a) 4 Other comprehensive loss, net of tax (20) — (10) (30) Balance December 31, 2019 $ (369) $ — $ (71) $ (440) (a) (b) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition | |
Schedule of sales disaggregated by revenue source and segment | Year Ended December 31, 2019 (Millions of dollars) Pork CT&M Marine Sugar and Alcohol Power All Other Consolidated Totals Major Products/Services Lines: Products $ 1,599 $ 3,654 $ — $ 112 $ — $ 17 $ 5,382 Transportation 10 — 1,061 — — 1 1,072 Energy 210 — — 9 117 — 336 Other 32 18 — — — — 50 Segment/Consolidated Totals $ 1,851 $ 3,672 $ 1,061 $ 121 $ 117 $ 18 $ 6,840 Year Ended December 31, 2018 (Millions of dollars) Pork CT&M Marine Sugar and Alcohol Power All Other Consolidated Totals Major Products/Services Lines: Products $ 1,451 $ 3,410 $ — $ 173 $ — $ 18 $ 5,052 Transportation 9 — 1,057 — — — 1,066 Energy 282 — — 11 122 — 415 Other 32 18 — — — — 50 Segment/Consolidated Totals $ 1,774 $ 3,428 $ 1,057 $ 184 $ 122 $ 18 $ 6,583 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Schedule of components of earnings before income taxes | Years ended December 31, (Millions of dollars) 2019 2018 2017 United States $ 174 $ (109) $ 273 Foreign 110 93 155 Total earnings (loss) excluding noncontrolling interests 284 (16) 428 Net loss attributable to noncontrolling interests — — 1 Total earnings (loss) before income taxes $ 284 $ (16) $ 427 |
Schedule of components of total income taxes | Years ended December 31, (Millions of dollars) 2019 2018 2017 Current: Federal $ 12 $ (20) $ 118 Foreign 39 32 19 State and local (1) — 2 Deferred: Federal (41) 5 20 Foreign (1) (5) 10 State and local (7) (11) 12 Income tax expense 1 1 181 Unrealized changes in other comprehensive income (loss) (4) 2 (3) Total income taxes $ (3) $ 3 $ 178 |
Schedule of reconciliation of computed expected tax expense excluding non-controlling interest to income tax expense (benefit) attributable to continuing operations | Years ended December 31, (Millions of dollars) 2019 2018 2017 Computed “expected” tax expense (benefit) excluding noncontrolling interests $ 60 $ (3) $ 150 Adjustments to tax expense (benefit) attributable to: Foreign tax differences 14 12 (22) Tax-exempt income (29) (13) — State income taxes, net of federal benefit (4) (8) 9 Repatriation tax — 14 112 Effect on deferreds of federal rate reduction — — (47) Foreign entity tax status change — 22 — Federal tax credits (47) (23) (18) Federal rate reduction effect on capital loss carryback — (3) — Domestic manufacturing deduction — — (2) Other 7 3 (1) Total income tax expense $ 1 $ 1 $ 181 |
Schedule of components of the net deferred income tax liability | December 31, (Millions of dollars) 2019 2018 Deferred income tax liabilities: Depreciation $ 119 $ 140 Domestic partnerships 65 78 Unrealized gain on investments 36 — Other 4 8 $ 224 $ 226 Deferred income tax assets: Reserves/accruals $ 73 $ 70 Net operating and capital loss carry-forwards 63 56 LIFO 2 7 Tax credit carry-forwards 75 21 Other 4 4 217 158 Valuation allowance 68 59 Net deferred income tax liability $ 75 $ 127 |
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, 2019 $ 59 9 $ 68 Year Ended December 31, 2018 $ 59 — $ 59 Year Ended December 31, 2017 $ 58 1 $ 59 |
Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits | (Millions of dollars) 2019 2018 Beginning balance at January 1 $ 25 $ 18 Additions for uncertain tax positions of prior years 4 2 Decreases for uncertain tax positions of prior years (3) — Additions for uncertain tax positions of current year 6 6 Lapse of statute of limitations (1) (1) Ending balance as of December 31 $ 31 $ 25 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Information | |
Summary of specific financial information related to sales to external customers | Years ended December 31, (Millions of dollars) 2019 2018 2017 Pork $ 1,851 $ 1,774 $ 1,609 Commodity Trading and Milling 3,672 3,428 2,945 Marine 1,061 1,057 956 Sugar and Alcohol 121 184 186 Power 117 122 97 All Other 18 18 16 Segment/Consolidated Totals $ 6,840 $ 6,583 $ 5,809 |
Summary of specific financial information related to operating income (loss) | Years ended December 31, (Millions of dollars) 2019 2018 2017 Pork $ 54 $ 117 $ 193 Commodity Trading and Milling 62 46 25 Marine 4 25 21 Sugar and Alcohol (16) 9 21 Power 27 21 9 All Other 2 2 2 Segment Totals 133 220 271 Corporate (29) (11) (31) Consolidated Totals $ 104 $ 209 $ 240 |
Summary of specific financial information related to income (loss) from affiliates | Years ended December 31, (Millions of dollars) 2019 2018 2017 Pork $ (22) $ (30) $ (10) Commodity Trading and Milling (5) (11) 7 Marine 3 2 (7) Sugar and Alcohol 1 1 1 Power 3 10 6 Turkey (21) (16) (4) Segment/Consolidated Totals $ (41) $ (44) $ (7) |
Summary of specific financial information related to depreciation and amortization | Years ended December 31, (Millions of dollars) 2019 2018 2017 Pork $ 75 $ 73 $ 69 Commodity Trading and Milling 25 22 10 Marine 23 24 24 Sugar and Alcohol 6 6 7 Power 8 8 8 Segment Totals 137 133 118 Corporate 1 1 — Consolidated Totals $ 138 $ 134 $ 118 |
Summary of specific financial information related to total assets | December 31, (Millions of dollars) 2019 2018 Pork $ 1,802 $ 1,304 Commodity Trading and Milling 1,621 1,423 Marine 554 345 Sugar and Alcohol 139 138 Power 283 203 Turkey 275 295 All Other 10 8 Segment Totals 4,684 3,716 Corporate 1,601 1,591 Consolidated Totals $ 6,285 $ 5,307 |
Summary of specific financial information related to investments in and advances to affiliates | December 31, (Millions of dollars) 2019 2018 Pork $ 183 $ 192 Commodity Trading and Milling 237 255 Marine 32 28 Sugar and Alcohol 5 4 Power 3 30 Turkey 275 295 Segment/Consolidated Totals $ 735 $ 804 |
Summary of specific financial information related to capital expenditures | Years ended December 31, (Millions of dollars) 2019 2018 2017 Pork $ 164 $ 86 $ 100 Commodity Trading and Milling 23 29 15 Marine 26 18 37 Sugar and Alcohol 15 5 20 Power 121 23 1 Segment Totals 349 161 173 Corporate — 1 — Consolidated Totals $ 349 $ 162 $ 173 |
Geographic summary of net sales based on the location of product delivery | Years ended December 31, (Millions of dollars) 2019 2018 2017 Caribbean, Central and South America $ 2,792 $ 2,753 $ 2,295 Africa 1,859 1,668 1,483 United States 1,447 1,408 1,271 Pacific Basin and Far East 370 381 393 Canada/Mexico 308 255 238 Europe 52 100 99 All other 12 18 30 Totals $ 6,840 $ 6,583 $ 5,809 |
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) 2019 2018 United States $ 899 $ 775 Singapore 139 21 Dominican Republic 103 109 Argentina 59 50 Senegal 43 48 Zambia 38 20 Ivory Coast 33 36 All other 117 101 Totals $ 1,431 $ 1,160 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operations of Seaboard Corporation and its Subsidiaries | ||||
Percentage of ownership interest held by Seaboard Flour LLC and SFC Preferred LLC | 77.00% | |||
Goodwill and Other Intangible Assets | ||||
Impairment charges | $ 0 | |||
Goodwill | ||||
Goodwill, beginning balance | 167 | $ 22 | ||
Acquisition | 1 | 148 | ||
Foreign currency translation | (4) | (3) | ||
Goodwill, ending balance | 164 | 167 | $ 22 | |
Intangible assets | ||||
Gross carrying amount | 78 | 78 | ||
Accumulated amortization and currency translation | (20) | (9) | ||
Net carrying amount | 58 | 69 | ||
Accumulated amortization | 20 | 9 | ||
Intangible assets | ||||
Amortization of intangible assets | 8 | 6 | ||
2020 | 8 | |||
2021 | 8 | |||
2022 | 8 | |||
2023 | 8 | |||
2024 | 8 | |||
Thereafter | 18 | |||
Changes in the asset retirement obligation | ||||
Beginning balance | 23 | 22 | ||
Accretion expense | 2 | 1 | ||
Ending balance | 25 | 23 | 22 | |
Supplemental Non-Cash Transactions | ||||
Cash paid for amounts included in the measurement of operating lease liabilities | 137 | |||
Cash paid for amounts included in the measurement of finance lease liabilities | 3 | |||
Cash paid for principal payment of finance lease included in financing activity | 2 | |||
Cash paid for finance lease interest included in operating activity | 1 | |||
Operating lease assets obtained in exchange for new operating lease liabilities | 95 | |||
Finance lease assets obtained in exchange for new finance lease liabilities | 46 | |||
Foreign Currency Transactions and Translation | ||||
Period of measurement to determine highly inflationary accounting | 3 years | |||
Three-year cumulative inflation rate | 100.00% | |||
Foreign currency gains related to the adoption of highly inflationary accounting | $ (3) | 9 | ||
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 | ||
Goodwill, ending balance | 18 | 18 | 18 | |
CT&M | ||||
Goodwill | ||||
Goodwill, beginning balance | 149 | 4 | ||
Acquisition | 1 | 148 | ||
Foreign currency translation | (4) | (3) | ||
Goodwill, ending balance | 146 | $ 149 | 4 | |
CT&M | Mimran | ||||
Principles of Consolidation and Investments in Affiliates | ||||
Time lag for reporting financial information | 3 months | |||
Customer relationships | ||||
Intangible assets | ||||
Gross carrying amount | 50 | $ 50 | ||
Accumulated amortization and currency translation | (13) | (6) | ||
Net carrying amount | 37 | 44 | ||
Accumulated amortization | 13 | 6 | ||
Trade names | ||||
Intangible assets | ||||
Gross carrying amount | 28 | 28 | ||
Accumulated amortization and currency translation | (7) | (3) | ||
Net carrying amount | 21 | 25 | ||
Accumulated amortization | 7 | 3 | ||
Allowance for Doubtful Accounts | ||||
Movement in valuation and qualifying accounts | ||||
Balance at beginning of year | 33 | 29 | 14 | |
Provision | 5 | 7 | 16 | |
Net deductions | (10) | (3) | (1) | |
Balance at end of year | 28 | 33 | 29 | |
Allowance for Doubtful Accounts | Selling, general and administrative expenses | ||||
Movement in valuation and qualifying accounts | ||||
Provision | 5 | 7 | 12 | |
Allowance for Doubtful Accounts | Income from affiliates | ||||
Movement in valuation and qualifying accounts | ||||
Provision | 2 | |||
Allowance for Doubtful Accounts | Cost of sales | ||||
Movement in valuation and qualifying accounts | ||||
Provision | 2 | |||
Allowance for Notes Receivable | ||||
Movement in valuation and qualifying accounts | ||||
Balance at beginning of year | 17 | 16 | 16 | |
Provision | 1 | |||
Balance at end of year | 17 | 17 | $ 16 | |
Accounts Receivable | Geographic concentration | Foreign Country | ||||
Accounts Receivable | ||||
Foreign receivables, excluding receivables due from affiliates | $ 309 | $ 327 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Recently Issued Accounting Standards (Details) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2020USD ($) | Jan. 01, 2019USD ($) | Jan. 01, 2018USD ($) | |
Recently issued accounting standards | ||||||
Retained earnings | $ 3,983 | $ 3,727 | ||||
Selling, general and administrative expenses | 336 | 314 | $ 309 | |||
Miscellaneous, net | 2 | (3) | (5) | |||
Accumulated other comprehensive loss | (440) | $ (410) | (354) | |||
ROU assets | 446 | $ 460 | ||||
Total operating lease liability | $ 483 | $ 498 | ||||
ASU 2016-01 | ||||||
Recently issued accounting standards | ||||||
Retained earnings | $ 7 | |||||
Accumulated other comprehensive loss | $ (7) | |||||
ASU 2018-02 | ||||||
Recently issued accounting standards | ||||||
Retained earnings | 45 | |||||
Accumulated other comprehensive loss | $ (45) | |||||
ASU 2016-13 | Forecast | Maximum | ||||||
Recently issued accounting standards | ||||||
Retained earnings | $ 5 | |||||
Designated as hedge | ||||||
Derivative commodity instruments | ||||||
Number of derivative agreements | item | 0 |
Acquisitions (Details)
Acquisitions (Details) $ / shares in Units, $ in Millions | Oct. 28, 2019USD ($) | Jan. 05, 2018USD ($)facility | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares | Oct. 27, 2019 |
Acquisitions | ||||||||
Goodwill | $ 164 | $ 164 | $ 167 | $ 167 | $ 22 | |||
Cash paid, net of cash acquired | 7 | 264 | 54 | |||||
Unaudited pro forma information: | ||||||||
Net sales | 6,643 | 6,095 | ||||||
Net earnings (loss) | $ (13) | $ 272 | ||||||
Earnings (loss) per common share | $ / shares | $ (10.90) | $ 233.45 | ||||||
CT&M | ||||||||
Acquisitions | ||||||||
Goodwill | 146 | 146 | 149 | $ 149 | $ 4 | |||
CT&M | CLDP | ||||||||
Acquisitions | ||||||||
Percentage of ownership | 100.00% | 50.00% | ||||||
Cash acquired | $ 2 | |||||||
Fair value of pre-existing interest | 9 | |||||||
Receivables | 33 | |||||||
Inventories | 55 | |||||||
Other current assets | 7 | |||||||
Property, plant and equipment | 12 | |||||||
Goodwill | 1 | |||||||
Total fair value of assets acquired | 108 | |||||||
Lines of credit | (65) | |||||||
Current maturities of long-term debt | (2) | |||||||
Other current liabilities | (6) | |||||||
Long-term debt, less current maturities | (6) | |||||||
Total fair value of liabilities assumed | (79) | |||||||
Net fair value of assets acquired | 29 | |||||||
Cash paid, net of cash acquired | 7 | |||||||
Net sales from the date of acquisition | 87 | |||||||
Net earnings from the date of acquisition | (2) | |||||||
Acquisition costs | $ 0 | $ 0 | ||||||
CT&M | CLDP | affiliate | ||||||||
Acquisitions | ||||||||
Acquisition related debt | $ 13 | |||||||
CT&M | Mimran | ||||||||
Acquisitions | ||||||||
Cash acquired | $ 64 | |||||||
Current assets | 83 | |||||||
Property, plant and equipment | 91 | |||||||
Intangible assets | 78 | |||||||
Goodwill | 148 | |||||||
Other long-term assets | 4 | |||||||
Total fair value of assets acquired | 404 | |||||||
Current liabilities | (38) | |||||||
Other long-term liabilities | (38) | |||||||
Total fair value of liabilities assumed | (76) | |||||||
Less: Noncontrolling interest | (4) | |||||||
Net fair value of assets acquired | 324 | |||||||
Cash paid, net of cash acquired | 264 | |||||||
Acquisition related debt | 46 | |||||||
Contingent consideration | 14 | |||||||
Total fair value of consideration at acquisition date | $ 324 | |||||||
Interest rate of note payable | 3.25% | |||||||
Number of flour mills operated | facility | 3 | |||||||
Time lag for reporting financial information | 3 months | |||||||
Earn-out, low end of range | $ 0 | |||||||
Earn-out, high end of range | $ 48 | |||||||
Earn-out time period following closing, low end of range | 5 years | |||||||
Earn-out time period following closing, high end of range | 8 years | |||||||
Net sales from the date of acquisition | 247 | |||||||
Net earnings from the date of acquisition | $ 17 | |||||||
Acquisition costs | $ 2 | |||||||
CT&M | Mimran | Trade names | ||||||||
Acquisitions | ||||||||
Intangible assets | $ 28 | |||||||
Estimated useful life | 9 years | |||||||
CT&M | Mimran | Customer relationships | ||||||||
Acquisitions | ||||||||
Intangible assets | $ 50 | |||||||
Estimated useful life | 9 years |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments | |||
Fair Value | $ 1,434 | $ 1,336 | |
Change in unrealized gains (losses) on trading securities | 176 | (110) | $ 146 |
Domestic equity securities | |||
Investments | |||
Fair Value | 706 | 632 | |
Domestic debt securities | |||
Investments | |||
Fair Value | 409 | 268 | |
Foreign equity securities | |||
Investments | |||
Fair Value | 189 | 218 | |
Foreign equity securities | Denominated in foreign currencies | |||
Investments | |||
Fair Value | 62 | 66 | |
Foreign equity securities | Denominated in Euros | |||
Investments | |||
Fair Value | 32 | 25 | |
Foreign equity securities | Denominated in Japanese Yen | |||
Investments | |||
Fair Value | 12 | 20 | |
Foreign equity securities | Denominated in British pounds | |||
Investments | |||
Fair Value | 8 | 9 | |
Foreign equity securities | Denominated in other foreign currencies | |||
Investments | |||
Fair Value | 10 | 12 | |
High yield securities | |||
Investments | |||
Fair Value | 56 | 19 | |
Foreign debt securities | |||
Investments | |||
Fair Value | 43 | 16 | |
Foreign debt securities | Denominated in Euros | |||
Investments | |||
Fair Value | 13 | ||
Collateralized loan obligation | |||
Investments | |||
Fair Value | 15 | 28 | |
Money market funds held in trading accounts | |||
Investments | |||
Fair Value | 12 | 146 | |
Other trading securities | |||
Investments | |||
Fair Value | 4 | 9 | |
Money market funds | Denominated in other foreign currencies | |||
Investments | |||
Fair Value | $ 10 | ||
Money market funds | Denominated in other foreign currencies | Maximum | |||
Investments | |||
Fair Value | $ 1 |
Inventories (Details)
Inventories (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
At lower of LIFO cost or market: | |||
Hogs and materials | $ 387 | $ 361 | |
Fresh pork and materials | 46 | 36 | |
LIFO adjustment | (64) | (58) | |
Total inventories at lower of LIFO cost or market | 369 | 339 | |
At lower of FIFO cost and net realizable value: | |||
Grains, oilseeds and other commodities | 353 | 229 | |
Sugar produced and in process | 17 | 17 | |
Other | 109 | 81 | |
Total inventories at lower of FIFO cost and net realizable value | 479 | 327 | |
Grain, flour and feed at lower of weighted average cost and net realizable value | 174 | 149 | |
Total inventories | 1,022 | 815 | |
LIFO method increase (decrease) in earnings | $ (5) | $ (20) | $ (6) |
LIFO method increase (decrease) in earnings per share (in dollars per share) | $ (4.10) | $ (16.87) | $ (5.40) |
Amount that inventories would have been higher by if the FIFO method had been used | $ 64 | $ 58 | |
Reserve for LIFO Valuation | |||
Reserve for LIFO Valuation | |||
Balance at beginning of year | 58 | 31 | $ 21 |
Increase (decrease) | 6 | 27 | 10 |
Balance at end of year | $ 64 | $ 58 | $ 31 |
Net Property, Plant and Equip_3
Net Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, plant and equipment | ||
Gross property, plant and equipment | $ 2,776 | $ 2,406 |
Accumulated depreciation and amortization | (1,345) | (1,246) |
Net property, plant and equipment | 1,431 | 1,160 |
ROU assets | 50 | |
Accumulated amortization | $ 1,345 | 1,246 |
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 | $ 250 | $ 238 |
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 | $ 646 | $ 591 |
Machinery and equipment | ||
Property, plant and equipment | ||
Gross property, plant and equipment | $ 1,360 | $ 1,298 |
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 | $ 147 | $ 147 |
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 | $ 42 | $ 36 |
Contract growers | ||
Property, plant and equipment | ||
Gross property, plant and equipment | $ 44 | |
Contract growers | Minimum | ||
Property, plant and equipment | ||
Useful Lives | 5 years | |
Contract growers | Maximum | ||
Property, plant and equipment | ||
Useful Lives | 15 years | |
Construction in progress | ||
Property, plant and equipment | ||
Gross property, plant and equipment | $ 287 | 96 |
Capitalized interest | 7 | $ 1 |
Contract growers, land and buildings | ||
Property, plant and equipment | ||
Accumulated depreciation and amortization | (3) | |
ROU assets | 50 | |
Accumulated amortization | $ 3 |
Leases - ROU Assets (Details)
Leases - ROU Assets (Details) | Dec. 31, 2019 |
Leases | |
Operating Lease, Weighted Average Remaining Lease Term | 6 years |
Finance Lease, Weighted Average Remaining Lease Term | 9 years |
Leases - Finance Lease Asset an
Leases - Finance Lease Asset and Liabilities (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | s-gaap:PropertyPlantAndEquipmentNet |
Finance lease right of use assets, net | $ 50 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent |
Finance lease liabilities | $ 5 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent |
Non-current finance lease liabilities | $ 40 |
Leases - Lease costs (Details)
Leases - Lease costs (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lease cost | |
Operating lease cost | $ 138 |
Finance lease cost: | |
Amortization of right of use assets | 3 |
Interest on lease liabilities | 1 |
Variable lease cost | 7 |
Short-term lease cost | 48 |
Total lease cost | $ 197 |
Leases - Maturities (Details)
Leases - Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Maturities of operating lease liabilities | |||
2020 | $ 130 | $ 141 | |
2021 | 113 | 99 | |
2022 | 84 | 91 | |
2023 | 58 | 67 | |
2024 | 48 | 52 | |
Thereafter | 164 | $ 210 | |
Total undiscounted lease payments | 597 | ||
Less imputed interest | (114) | ||
Total operating lease liability | 483 | $ 498 | |
Maturities of finance lease liabilities | |||
2020 | 7 | ||
2021 | 7 | ||
2022 | 7 | ||
2023 | 7 | ||
2024 | 7 | ||
Thereafter | 26 | ||
Total undiscounted lease payments | 61 | ||
Less imputed interest | (16) | ||
Total finance lease liability | $ 45 | ||
Weighted average discount rate for operating leases | 6.58% | ||
Weighted average discount rate for financing leases | 6.31% |
Leases - Commitments (Details)
Leases - Commitments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Maturities of operating lease liabilities | ||
2020 | $ 130 | $ 141 |
2021 | 113 | 99 |
2022 | 84 | 91 |
2023 | 58 | 67 |
2024 | 48 | 52 |
Thereafter | $ 164 | 210 |
Ports | ||
Maturities of operating lease liabilities | ||
2020 | 18 | |
2021 | 18 | |
2022 | 19 | |
2023 | 19 | |
2024 | 20 | |
Thereafter | 109 | |
Vessel, time and voyage-charters | ||
Maturities of operating lease liabilities | ||
2020 | 58 | |
2021 | 27 | |
2022 | 26 | |
2023 | 13 | |
2024 | 8 | |
Thereafter | 25 | |
Contract grower agreements | ||
Maturities of operating lease liabilities | ||
2020 | 47 | |
2021 | 41 | |
2022 | 37 | |
2023 | 27 | |
2024 | 18 | |
Thereafter | 61 | |
Other operating lease payments | ||
Maturities of operating lease liabilities | ||
2020 | 18 | |
2021 | 13 | |
2022 | 9 | |
2023 | 8 | |
2024 | 6 | |
Thereafter | $ 15 |
Leases - Additional information
Leases - Additional information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Rental expense for operating leases | $ 46 | $ 44 | |
Supplemental disclosures of cash flow information: | |||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 137 | ||
Cash paid for principal payment of finance lease included in financing activity | 2 | ||
Cash paid for finance lease interest included in operating activity | 1 | ||
Operating lease assets obtained in exchange for new operating lease liabilities | 95 | ||
Finance lease assets obtained in exchange for new finance lease liabilities | $ 46 | ||
Pork | Contract grower agreements | |||
Property, Plant and Equipment [Line Items] | |||
Amount paid under the agreement | 48 | 37 | |
Marine and CT&M | Vessel, time and voyage-charters | |||
Property, Plant and Equipment [Line Items] | |||
Amount paid under the contract | $ 111 | $ 96 |
Equity Method Investments (Deta
Equity Method Investments (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Sep. 30, 2019USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | May 30, 2015 | |
Equity method investments | |||||||
Dividends received from affiliates | $ 10 | $ 23 | $ 24 | ||||
Investments in and advances to affiliates | 735 | 804 | |||||
Income tax expense | 1 | 1 | 181 | ||||
Proceeds from the sale of controlling interest in a subsidiary | 24 | ||||||
Loss from affiliates | (41) | (44) | (7) | ||||
Foreign currency translation adjustment | (20) | (53) | (6) | ||||
Receivables due from affiliates | 109 | 111 | |||||
Pork | |||||||
Equity method investments | |||||||
Investments in and advances to affiliates | 183 | 192 | |||||
Loss from affiliates | (22) | (30) | (10) | ||||
Combined condensed financial information of the non-controlled, non-consolidated affiliates | |||||||
Net sales | 1,453 | 927 | 441 | ||||
Net income (loss) | (43) | (60) | (21) | ||||
Total assets | $ 596 | 639 | 623 | 596 | |||
Total liabilities | 138 | 277 | 243 | 138 | |||
Total equity | 458 | 362 | 380 | 458 | |||
CT&M | |||||||
Equity method investments | |||||||
Investments in and advances to affiliates | 237 | 255 | |||||
Loss from affiliates | (5) | (11) | 7 | ||||
Carrying value of investment in affiliates over (under) entity's share of affiliates' book value | 56 | ||||||
Combined condensed financial information of the non-controlled, non-consolidated affiliates | |||||||
Net sales | 3,129 | 3,238 | 2,907 | ||||
Net income (loss) | (12) | (13) | 23 | ||||
Total assets | 1,793 | 1,697 | 1,914 | 1,793 | |||
Total liabilities | 1,150 | 1,075 | 1,242 | 1,150 | |||
Total equity | 643 | 622 | 672 | 643 | |||
Marine | |||||||
Equity method investments | |||||||
Investments in and advances to affiliates | 32 | 28 | |||||
Loss from affiliates | 3 | 2 | (7) | ||||
Carrying value of investment in affiliates over (under) entity's share of affiliates' book value | (29) | ||||||
Combined condensed financial information of the non-controlled, non-consolidated affiliates | |||||||
Net sales | 70 | 66 | 58 | ||||
Net income (loss) | 12 | 11 | 5 | ||||
Total assets | 229 | 269 | 272 | 229 | |||
Total liabilities | 114 | 107 | 133 | 114 | |||
Total equity | 115 | 162 | 139 | 115 | |||
Sugar and Alcohol | |||||||
Equity method investments | |||||||
Investments in and advances to affiliates | 5 | 4 | |||||
Loss from affiliates | 1 | 1 | 1 | ||||
Combined condensed financial information of the non-controlled, non-consolidated affiliates | |||||||
Net sales | 10 | 5 | 10 | ||||
Net income (loss) | 3 | 3 | 2 | ||||
Total assets | 10 | 13 | 10 | 10 | |||
Total liabilities | 2 | 2 | 2 | 2 | |||
Total equity | 8 | $ 11 | 8 | 8 | |||
Time lag for reporting financial information | 1 month | ||||||
Turkey | |||||||
Equity method investments | |||||||
Investments in and advances to affiliates | $ 275 | 295 | |||||
Loss from affiliates | (21) | (16) | (4) | ||||
Combined condensed financial information of the non-controlled, non-consolidated affiliates | |||||||
Net sales | 1,612 | 1,591 | 1,670 | ||||
Operating income (loss) | (20) | (16) | 15 | ||||
Net income (loss) | (40) | (30) | (8) | ||||
Total assets | 999 | 1,038 | 1,072 | 999 | |||
Total liabilities | 400 | 507 | 502 | 400 | |||
Total equity | 599 | 531 | 570 | 599 | |||
Power | |||||||
Equity method investments | |||||||
Investments in and advances to affiliates | 3 | 30 | |||||
Loss from affiliates | 3 | 10 | 6 | ||||
Combined condensed financial information of the non-controlled, non-consolidated affiliates | |||||||
Net sales | 143 | 138 | 105 | ||||
Net income (loss) | 10 | 33 | 23 | ||||
Total assets | 265 | 11 | 247 | 265 | |||
Total liabilities | 145 | 4 | 139 | 145 | |||
Total equity | 120 | $ 7 | $ 108 | 120 | |||
Minimum | |||||||
Combined condensed financial information of the non-controlled, non-consolidated affiliates | |||||||
Time lag for reporting financial information | 1 month | ||||||
Maximum | |||||||
Combined condensed financial information of the non-controlled, non-consolidated affiliates | |||||||
Time lag for reporting financial information | 3 months | ||||||
Argentina | Sugar and Alcohol | |||||||
Equity method investments | |||||||
Number of businesses | item | 2 | ||||||
Dominican Republic | Power | |||||||
Equity method investments | |||||||
Number of businesses | item | 2 | ||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | Botswana | CT&M | |||||||
Equity method investments | |||||||
Percentage of ownership | 50.00% | ||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | Democratic Republic of Congo | CT&M | |||||||
Equity method investments | |||||||
Percentage of ownership | 50.00% | ||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | Gambia | CT&M | |||||||
Equity method investments | |||||||
Percentage of ownership | 50.00% | ||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | Kenya | Minimum | CT&M | |||||||
Equity method investments | |||||||
Percentage of ownership | 46.64% | ||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | Kenya | Maximum | CT&M | |||||||
Equity method investments | |||||||
Percentage of ownership | 49.00% | ||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | Lesotho | CT&M | |||||||
Equity method investments | |||||||
Percentage of ownership | 50.00% | ||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | Mauritania | CT&M | |||||||
Equity method investments | |||||||
Percentage of ownership | 50.00% | ||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | Morocco | Minimum | CT&M | |||||||
Equity method investments | |||||||
Percentage of ownership | 11.44% | ||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | Morocco | Maximum | CT&M | |||||||
Equity method investments | |||||||
Percentage of ownership | 17.08% | ||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | Nigeria | Minimum | CT&M | |||||||
Equity method investments | |||||||
Percentage of ownership | 25.00% | ||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | Nigeria | Maximum | CT&M | |||||||
Equity method investments | |||||||
Percentage of ownership | 48.33% | ||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | Senegal | CT&M | |||||||
Equity method investments | |||||||
Percentage of ownership | 49.00% | ||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | South Africa | Minimum | CT&M | |||||||
Equity method investments | |||||||
Percentage of ownership | 30.00% | ||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | South Africa | Maximum | CT&M | |||||||
Equity method investments | |||||||
Percentage of ownership | 50.00% | ||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | Tanzania | CT&M | |||||||
Equity method investments | |||||||
Percentage of ownership | 49.00% | ||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | Zambia | CT&M | |||||||
Equity method investments | |||||||
Percentage of ownership | 49.00% | ||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | Colombia | Minimum | CT&M | |||||||
Equity method investments | |||||||
Percentage of ownership | 40.00% | ||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | Colombia | Maximum | CT&M | |||||||
Equity method investments | |||||||
Percentage of ownership | 42.00% | ||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | Ecuador | Minimum | CT&M | |||||||
Equity method investments | |||||||
Percentage of ownership | 25.00% | ||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | Ecuador | Maximum | CT&M | |||||||
Equity method investments | |||||||
Percentage of ownership | 50.00% | ||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | Guyana | CT&M | |||||||
Equity method investments | |||||||
Percentage of ownership | 50.00% | ||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | Peru | CT&M | |||||||
Equity method investments | |||||||
Percentage of ownership | 50.00% | ||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | Jamaica | CT&M | |||||||
Equity method investments | |||||||
Percentage of ownership | 50.00% | ||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | Haiti | CT&M | |||||||
Equity method investments | |||||||
Percentage of ownership | 23.33% | ||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | Turkey | CT&M | |||||||
Equity method investments | |||||||
Percentage of ownership | 25.00% | ||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | Australia | Minimum | CT&M | |||||||
Equity method investments | |||||||
Percentage of ownership | 22.50% | ||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | Australia | Maximum | CT&M | |||||||
Equity method investments | |||||||
Percentage of ownership | 25.00% | ||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | Canada | CT&M | |||||||
Equity method investments | |||||||
Percentage of ownership | 45.00% | ||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | United States | CT&M | |||||||
Equity method investments | |||||||
Percentage of ownership | (40.00%) | ||||||
Cargo terminal business | Jamaica | Marine | |||||||
Equity method investments | |||||||
Percentage of ownership | 21.00% | ||||||
Cargo terminal business | Haiti | Marine | |||||||
Equity method investments | |||||||
Percentage of ownership | 18.00% | ||||||
Sugar related business one | Argentina | Sugar and Alcohol | |||||||
Equity method investments | |||||||
Percentage of ownership | 46.00% | ||||||
Sugar related business two | Argentina | Sugar and Alcohol | |||||||
Equity method investments | |||||||
Percentage of ownership | 50.00% | ||||||
Butterball, LLC | |||||||
Equity method investments | |||||||
Percentage of ownership | 50.00% | ||||||
Investee's intangible assets for trade name | $ 111 | ||||||
Investee's intangible assets for goodwill | $ 66 | ||||||
Percentage of the Butterball's earnings recorded as income from affiliates in the Consolidated Statements of Comprehensive Income (as a percent) | 52.50% | ||||||
Butterball, LLC | Subordinated loan | |||||||
Equity method investments | |||||||
Loan provided to affiliate | $ 100 | ||||||
Repayment of notes receivable | 164 | ||||||
Butterball, LLC | Subordinated loan | Notes receivable | |||||||
Equity method investments | |||||||
Paid-in-kind interest | $ 6 | ||||||
Butterball, LLC | Detachable warrants | |||||||
Equity method investments | |||||||
Additional equity interest that can be acquired upon exercise of warrants (as a percent) | 5.00% | ||||||
Economic interest (as a percent) | 52.50% | ||||||
Grain trading and flour milling business | Mauritania | CT&M | |||||||
Equity method investments | |||||||
Ownership interest acquired | 50.00% | ||||||
Total consideration | $ 16 | ||||||
Seaboard Triumph Foods | Pork | |||||||
Equity method investments | |||||||
Percentage of ownership | 50.00% | ||||||
Amount invested under equity method | $ 73 | ||||||
Daily's | Pork | |||||||
Equity method investments | |||||||
Percentage of ownership | 50.00% | ||||||
Energy related business one | Dominican Republic | Power | |||||||
Equity method investments | |||||||
Percentage of ownership | 45.00% | ||||||
Energy related business two | Dominican Republic | Power | |||||||
Equity method investments | |||||||
Percentage of ownership | 50.00% | ||||||
Disposed of by sale | Power | |||||||
Equity method investments | |||||||
Proceeds from sale of affiliate | $ 23 | ||||||
Selling expenses and taxes | 1 | ||||||
Long term notes receivable | 6 | ||||||
Gain (loss) on sale of affiliate | $ 0 | ||||||
Percentage of ownership interest sold | 29.90% | 29.90% |
Lines of Credit and Long-Term_3
Lines of Credit and Long-Term Debt - Notes payable and bank lines (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Notes Payable and Long Term Debt | ||
Lines of credit | $ 246 | $ 148 |
Denominated in Euros | ||
Notes Payable and Long Term Debt | ||
Acquisition related debt | $ 44 | |
Interest rate (as a percent) | 3.25% | |
Notes payable to bank | ||
Notes Payable and Long Term Debt | ||
Lines of credit | $ 246 | |
Uncommitted and committed bank lines | ||
Notes Payable and Long Term Debt | ||
Letters of credit outstanding | 18 | |
Committed bank line | Wells Fargo | ||
Notes Payable and Long Term Debt | ||
Maximum capacity | $ 100 | |
Unused commitment fee | 0.09% | |
Outstanding balance | $ 0 | 0 |
Committed bank line | Wells Fargo | LIBOR | ||
Notes Payable and Long Term Debt | ||
Basis spread on variable rate (as a percent) | 0.50% | |
Uncommitted bank lines | ||
Notes Payable and Long Term Debt | ||
Lines of credit | $ 246 | $ 148 |
Weighted average interest rate (as a percent) | 5.79% | 7.76% |
Uncommitted bank lines | Denominated in foreign currencies | ||
Notes Payable and Long Term Debt | ||
Lines of credit | $ 189 | |
Uncommitted bank lines | Foreign subsidiaries | Denominated in South African Rand | ||
Notes Payable and Long Term Debt | ||
Lines of credit | 91 | |
Uncommitted bank lines | Foreign subsidiaries | Denominated in Peruvian Sol | ||
Notes Payable and Long Term Debt | ||
Lines of credit | 53 | |
Uncommitted bank lines | Foreign subsidiaries | Denominated in Canadian dollars | ||
Notes Payable and Long Term Debt | ||
Lines of credit | 24 | |
Uncommitted bank lines | Foreign subsidiaries | Denominated in Zambian kwacha | ||
Notes Payable and Long Term Debt | ||
Lines of credit | $ 19 |
Lines of Credit and Long-Term_4
Lines of Credit and Long-Term Debt - Summary of long-term debt (Details) - USD ($) $ in Millions | Sep. 25, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Notes Payable and Long Term Debt | |||
Total long-term debt at face value | $ 793 | $ 779 | |
Current maturities of long-term debt and unamortized discount | (63) | (40) | |
Long-term debt, less current maturities | 730 | 739 | |
Term loan due 2028 | |||
Notes Payable and Long Term Debt | |||
Total long-term debt at face value | $ 691 | $ 698 | |
Face amount | $ 700 | ||
Proceeds from issuance of debt | $ 220 | ||
Effective interest rate (as a percent) | 3.42% | 4.15% | |
Adjusted leverage ratio, maximum | 50.00% | ||
Minimum net worth base requirement | $ 2,500 | ||
Percentage of consolidated net income added to net worth base amount | 25.00% | ||
Maximum dividends per year | $ 100 | ||
Sum of subsidiary indebtedness and priority indebtedness as a percentage of consolidated tangible net worth, maximum | 15.00% | ||
Term loan due 2022 | |||
Notes Payable and Long Term Debt | |||
Face amount | $ 500 | ||
Foreign subsidiary obligations | |||
Notes Payable and Long Term Debt | |||
Total long-term debt at face value | $ 102 | $ 81 |
Lines of Credit and Long-Term_5
Lines of Credit and Long-Term Debt - Maturities and foreign subsidiary obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Notes Payable and Long Term Debt | ||
Short-term loan | $ 62 | $ 39 |
Maturities of long-term debt | ||
2020 | 62 | |
2021 | 53 | |
2022 | 8 | |
2023 | 7 | |
2024 | 7 | |
Thereafter | $ 656 | |
Minimum | ||
Notes Payable and Long Term Debt | ||
Time lag for reporting financial information | 1 month | |
Maximum | ||
Notes Payable and Long Term Debt | ||
Time lag for reporting financial information | 3 months | |
Sugar and Alcohol | ||
Notes Payable and Long Term Debt | ||
Short-term loan | $ 54 | $ 29 |
Interest rate (as a percent) | 3.20% | 3.10% |
Time lag for reporting financial information | 1 month | |
Foreign subsidiary obligations | ||
Notes Payable and Long Term Debt | ||
Weighted average interest rate (as a percent) | 3.50% | 3.80% |
Foreign subsidiary obligations | Property, Plant and Equipment | ||
Notes Payable and Long Term Debt | ||
Collateral amount | $ 1 |
Commitments and Contingencies -
Commitments and Contingencies - Numbers of Items (Details) $ in Millions | Jun. 28, 2018item | May 15, 2018USD ($) | Apr. 27, 2018USD ($) | Mar. 20, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Contingencies | ||||||
Assets | $ 6,285 | $ 5,307 | ||||
Pork Product Purchasers | Pending Litigation | ||||||
Contingencies | ||||||
Number of plaintiffs | item | 11 | |||||
Number of consolidated putative class actions | item | 3 | |||||
Cereoil | ||||||
Contingencies | ||||||
Percentage of ownership | 45.00% | |||||
Cereoil | Cereoil Bankruptcy Trustee - Case One | Pending Litigation | ||||||
Contingencies | ||||||
Damages sought | $ 22 | |||||
Cereoil | Cereoil Bankruptcy Trustee - Case Two | Pending Litigation | ||||||
Contingencies | ||||||
Damages sought | $ 23 | |||||
Liabilities | 53 | |||||
Assets | $ 30 | |||||
Pending claim in bankruptcy proceeding, included the net indebtedness of Cereoil | $ 10 | |||||
Nolston | ||||||
Contingencies | ||||||
Percentage of ownership | 45.00% | |||||
Nolston | Nolston Bankruptcy Trustee | Pending Litigation | ||||||
Contingencies | ||||||
Damages sought | $ 14 | |||||
Liabilities | 29 | |||||
Assets | $ 15 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments | |||
2020 | $ 1,025 | ||
2021 | 168 | ||
2022 | 115 | ||
2023 | 96 | ||
2024 | 84 | ||
Thereafter | 313 | ||
Totals | 1,801 | ||
Conditional and Unconditional Commitments | |||
Total cost of sales and operating expenses | 6,400 | $ 6,060 | $ 5,260 |
Hog procurement contracts | |||
Commitments | |||
2020 | 78 | ||
2021 | 82 | ||
2022 | 64 | ||
2023 | 47 | ||
2024 | 34 | ||
Totals | 305 | ||
Hog procurement contracts | Pork | |||
Conditional and Unconditional Commitments | |||
Amount paid under the contract | 121 | $ 77 | $ 99 |
Grain commitments | |||
Commitments | |||
2020 | 93 | ||
2021 | 1 | ||
Totals | 94 | ||
Grain purchase contracts for resale | |||
Commitments | |||
2020 | 611 | ||
Totals | 611 | ||
Fuel supply contract | |||
Commitments | |||
2020 | 7 | ||
2021 | 47 | ||
2022 | 47 | ||
2023 | 47 | ||
2024 | 48 | ||
Thereafter | 289 | ||
Totals | 485 | ||
Construction commitments | |||
Commitments | |||
2020 | 114 | ||
2021 | 29 | ||
Totals | 143 | ||
Equipment and other purchase commitments | |||
Commitments | |||
2020 | 122 | ||
2021 | 9 | ||
2022 | 4 | ||
2023 | 2 | ||
2024 | 2 | ||
Thereafter | 24 | ||
Totals | 163 | ||
Power barge | Power | |||
Commitments | |||
Totals | 26 | ||
Pork plant expansion | Pork | |||
Commitments | |||
Totals | 21 | ||
Renewable diesel production facility | Pork | |||
Commitments | |||
Totals | $ 86 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Target allocation and pension plan asset allocation | ||||||
Contributions made to defined benefit pension plans | $ 9 | $ 2 | ||||
Estimated fair value of plan assets | 185 | 171 | $ 171 | $ 185 | $ 156 | $ 171 |
Reconciliation of benefit obligation: | ||||||
Benefit obligation at beginning of year | 293 | 300 | ||||
Service cost | 8 | 10 | 9 | |||
Interest cost | 12 | 11 | 11 | |||
Actuarial losses | 50 | (22) | ||||
Plan settlements | (9) | |||||
Benefits paid | (9) | (6) | ||||
Other | 3 | |||||
Benefit obligation at end of year | 348 | 293 | 300 | |||
Reconciliation of fair value of plan assets: | ||||||
Fair value of plan assets at beginning of year | 156 | 171 | ||||
Actual return on plan assets | 35 | (11) | ||||
Employer contributions | 9 | 2 | ||||
Plan settlements | (9) | |||||
Benefits paid | (6) | (6) | ||||
Fair value of plan assets at end of year | 185 | 156 | 171 | |||
Funded status | (163) | (137) | ||||
Expected future net benefit payments | ||||||
2020 | 19 | |||||
2021 | 11 | |||||
2022 | 29 | |||||
2023 | 23 | |||||
2024 | 16 | |||||
Thereafter | 82 | |||||
Components of net periodic benefit cost: | ||||||
Service cost | 8 | 10 | 9 | |||
Interest cost | 12 | 11 | 11 | |||
Expected return on plan assets | (10) | (11) | (10) | |||
Amortization and other | 5 | 6 | 5 | |||
Settlement loss recognized | 2 | 2 | ||||
Net periodic benefit cost | 17 | 16 | 17 | |||
Amounts not reflected in net periodic benefit cost and included in accumulated other comprehensive loss (AOCL) before taxes | ||||||
Total accumulated other comprehensive loss | 88 | 72 | ||||
Other disclosures | ||||||
Contribution expense for multi-employer pension fund, the United Food and Commercial Workers International Union-Industry Pension Fund, which covers certain union employees under a collective bargaining agreement | $ 1 | 1 | $ 1 | |||
Estimated withdrawal liability | 14 | |||||
Time period over which quarterly installment payments will be made | 20 years | |||||
Defined benefit pension plan | ||||||
Target allocation and pension plan asset allocation | ||||||
Estimated fair value of plan assets | $ 156 | $ 156 | 185 | 156 | ||
Weighted-average assumptions | ||||||
Expected return on plan assets (as a percent) | 6.25% | 6.25% | 6.50% | |||
Long-term rate of increase in compensation levels (as a percent) | 4.00% | 4.00% | 4.00% | |||
Reconciliation of fair value of plan assets: | ||||||
Fair value of plan assets at beginning of year | $ 156 | |||||
Fair value of plan assets at end of year | 185 | $ 156 | ||||
Funded status | (53) | (35) | ||||
Expected future net benefit payments | ||||||
Accumulated benefit obligation | 205 | 165 | ||||
Defined benefit pension plan | Level 1 | ||||||
Target allocation and pension plan asset allocation | ||||||
Estimated fair value of plan assets | 156 | 156 | 185 | 156 | ||
Reconciliation of fair value of plan assets: | ||||||
Fair value of plan assets at beginning of year | 156 | |||||
Fair value of plan assets at end of year | 185 | 156 | ||||
Defined benefit pension plan | Domestic equity securities | ||||||
Target allocation and pension plan asset allocation | ||||||
Estimated fair value of plan assets | 69 | 69 | 84 | 69 | ||
Reconciliation of fair value of plan assets: | ||||||
Fair value of plan assets at beginning of year | 69 | |||||
Fair value of plan assets at end of year | 84 | 69 | ||||
Defined benefit pension plan | Domestic equity securities | Level 1 | ||||||
Target allocation and pension plan asset allocation | ||||||
Estimated fair value of plan assets | 69 | 69 | 84 | 69 | ||
Reconciliation of fair value of plan assets: | ||||||
Fair value of plan assets at beginning of year | 69 | |||||
Fair value of plan assets at end of year | 84 | 69 | ||||
Defined benefit pension plan | Foreign equity securities | ||||||
Target allocation and pension plan asset allocation | ||||||
Estimated fair value of plan assets | 47 | 47 | 57 | 47 | ||
Reconciliation of fair value of plan assets: | ||||||
Fair value of plan assets at beginning of year | 47 | |||||
Fair value of plan assets at end of year | 57 | 47 | ||||
Defined benefit pension plan | Foreign equity securities | Level 1 | ||||||
Target allocation and pension plan asset allocation | ||||||
Estimated fair value of plan assets | 47 | 47 | 57 | 47 | ||
Reconciliation of fair value of plan assets: | ||||||
Fair value of plan assets at beginning of year | 47 | |||||
Fair value of plan assets at end of year | 57 | 47 | ||||
Defined benefit pension plan | Fixed income | ||||||
Target allocation and pension plan asset allocation | ||||||
Estimated fair value of plan assets | 27 | 27 | 30 | 27 | ||
Reconciliation of fair value of plan assets: | ||||||
Fair value of plan assets at beginning of year | 27 | |||||
Fair value of plan assets at end of year | 30 | 27 | ||||
Defined benefit pension plan | Fixed income | Level 1 | ||||||
Target allocation and pension plan asset allocation | ||||||
Estimated fair value of plan assets | 27 | 27 | 30 | 27 | ||
Reconciliation of fair value of plan assets: | ||||||
Fair value of plan assets at beginning of year | 27 | |||||
Fair value of plan assets at end of year | 30 | 27 | ||||
Defined benefit pension plan | Foreign fixed income mutual funds | ||||||
Target allocation and pension plan asset allocation | ||||||
Estimated fair value of plan assets | 11 | 11 | 12 | 11 | ||
Reconciliation of fair value of plan assets: | ||||||
Fair value of plan assets at beginning of year | 11 | |||||
Fair value of plan assets at end of year | 12 | 11 | ||||
Defined benefit pension plan | Foreign fixed income mutual funds | Level 1 | ||||||
Target allocation and pension plan asset allocation | ||||||
Estimated fair value of plan assets | 11 | 11 | 12 | 11 | ||
Reconciliation of fair value of plan assets: | ||||||
Fair value of plan assets at beginning of year | 11 | |||||
Fair value of plan assets at end of year | 12 | 11 | ||||
Defined benefit pension plan | Money market funds | ||||||
Target allocation and pension plan asset allocation | ||||||
Estimated fair value of plan assets | 2 | 2 | 2 | 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 | 2 | 2 | ||||
Defined benefit pension plan | Money market funds | Level 1 | ||||||
Target allocation and pension plan asset allocation | ||||||
Estimated fair value of plan assets | 2 | 2 | $ 2 | $ 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 | $ 2 | $ 2 | ||||
Defined benefit pension plan | Minimum | ||||||
Weighted-average assumptions | ||||||
Discount rate used to determine obligations (as a percent) | 2.15% | 3.50% | 2.75% | |||
Discount rate used to determine net periodic benefit cost (as a percent) | 3.50% | 2.75% | 2.90% | |||
Defined benefit pension plan | Minimum | Domestic equity securities | ||||||
Target allocation and pension plan asset allocation | ||||||
Target Allocations (as a percent) | 50.00% | |||||
Defined benefit pension plan | Minimum | Foreign equity securities | ||||||
Target allocation and pension plan asset allocation | ||||||
Target Allocations (as a percent) | 25.00% | |||||
Defined benefit pension plan | Minimum | Fixed income | ||||||
Target allocation and pension plan asset allocation | ||||||
Target Allocations (as a percent) | 20.00% | |||||
Defined benefit pension plan | Minimum | Alternative investments | ||||||
Target allocation and pension plan asset allocation | ||||||
Target Allocations (as a percent) | 5.00% | |||||
Defined benefit pension plan | Maximum | ||||||
Weighted-average assumptions | ||||||
Discount rate used to determine obligations (as a percent) | 3.50% | 4.50% | 3.80% | |||
Discount rate used to determine net periodic benefit cost (as a percent) | 4.50% | 3.80% | 4.60% | |||
Supplemental executive plans and retirement agreements | ||||||
Expected future net benefit payments | ||||||
Accumulated benefit obligation | $ 104 | $ 95 |
Employee Benefits - Defined Con
Employee Benefits - Defined Contribution Plan (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Deferred compensation plan | |||
Number of investments, which are taken as reference to measure the interest that may be acquired | item | 3 | ||
Employer contribution as percentage of the employees' reduced compensation | 3.00% | ||
Number of deferred compensation plans | item | 2 | ||
Deferred compensation plan expense | $ (11) | $ 2 | $ (10) |
Deferred compensation plan liability included in other liabilities | 45 | 38 | |
Deferred compensation plan assets included in other current assets | 51 | 45 | |
Investment income related to the mark-to-market of investments treated as trading securities | $ 11 | $ (2) | $ 9 |
United States | |||
Defined contribution plans | |||
Employer contribution (as a percent of employee contributions) | 50.00% | 50.00% | 50.00% |
Employer contribution limit per calendar year (as a percent of compensation) | 6.00% | 6.00% | 6.00% |
Vesting percentage after one year of service | 20.00% | 20.00% | 20.00% |
Additional vesting percentage with each additional complete year of service | 20.00% | 20.00% | 20.00% |
Contribution expense | $ 3 | $ 3 | $ 3 |
Defined contribution plan covering hourly, non-union employees | |||
Defined contribution plans | |||
Contribution expense | $ 1 | $ 1 | |
Defined contribution plan covering hourly, non-union employees | Maximum | |||
Defined contribution plans | |||
Contribution expense | $ 1 |
Derivatives and Fair Value of_3
Derivatives and Fair Value of Financial Instruments - Assets and Liabilities at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Trading securities | $ 1,434 | $ 1,336 |
Commodities | ||
Assets: | ||
Margin account | 13 | 15 |
Domestic equity securities | ||
Assets: | ||
Trading securities | 706 | 632 |
Domestic debt securities | ||
Assets: | ||
Trading securities | 409 | 268 |
Foreign equity securities | ||
Assets: | ||
Trading securities | 189 | 218 |
High yield securities | ||
Assets: | ||
Trading securities | 56 | 19 |
Foreign debt securities | ||
Assets: | ||
Trading securities | 43 | 16 |
Money market funds held in trading accounts | ||
Assets: | ||
Trading securities | 12 | 146 |
Recurring basis | Level 1 | ||
Assets: | ||
Total assets | 1,095 | 1,282 |
Liabilities: | ||
Total liabilities | 4 | 4 |
Recurring basis | Level 1 | Commodities | ||
Assets: | ||
Derivatives | 6 | 4 |
Liabilities: | ||
Derivatives | 4 | 4 |
Recurring basis | Level 1 | Domestic equity securities | Short term investments | ||
Assets: | ||
Trading securities | 706 | 632 |
Recurring basis | Level 1 | Domestic equity securities | Other current assets | ||
Assets: | ||
Trading securities | 40 | 32 |
Recurring basis | Level 1 | Domestic debt securities | Short term investments | ||
Assets: | ||
Trading securities | 117 | 215 |
Recurring basis | Level 1 | Foreign equity securities | Short term investments | ||
Assets: | ||
Trading securities | 189 | 218 |
Recurring basis | Level 1 | Foreign equity securities | Other current assets | ||
Assets: | ||
Trading securities | 3 | 3 |
Recurring basis | Level 1 | High yield securities | Short term investments | ||
Assets: | ||
Trading securities | 10 | 7 |
Recurring basis | Level 1 | Foreign debt securities | Short term investments | ||
Assets: | ||
Trading securities | 2 | |
Recurring basis | Level 1 | Money market funds held in trading accounts | Short term investments | ||
Assets: | ||
Trading securities | 12 | 146 |
Recurring basis | Level 1 | Money market funds held in trading accounts | Other current assets | ||
Assets: | ||
Trading securities | 6 | 5 |
Recurring basis | Level 1 | Other trading investments | Short term investments | ||
Assets: | ||
Trading securities | 4 | 14 |
Recurring basis | Level 1 | Fixed income securities | Other current assets | ||
Assets: | ||
Trading securities | 2 | 3 |
Recurring basis | Level 1 | Other | Other current assets | ||
Assets: | ||
Trading securities | 1 | |
Recurring basis | Level 2 | ||
Assets: | ||
Total assets | 396 | 111 |
Liabilities: | ||
Total liabilities | 3 | 5 |
Recurring basis | Level 2 | Commodities | ||
Assets: | ||
Derivatives | 2 | |
Recurring basis | Level 2 | Foreign currencies | ||
Assets: | ||
Derivatives | 2 | |
Liabilities: | ||
Derivatives | 3 | |
Recurring basis | Level 2 | Domestic debt securities | Short term investments | ||
Assets: | ||
Trading securities | 292 | 53 |
Recurring basis | Level 2 | High yield securities | Short term investments | ||
Assets: | ||
Trading securities | 46 | 12 |
Recurring basis | Level 2 | Foreign debt securities | Short term investments | ||
Assets: | ||
Trading securities | 43 | 14 |
Recurring basis | Level 2 | Collateralized loan obligations | Short term investments | ||
Assets: | ||
Trading securities | 15 | 28 |
Recurring basis | Level 2 | Other trading investments | Short term investments | ||
Liabilities: | ||
Derivatives | 5 | |
Recurring basis | Level 3 | ||
Liabilities: | ||
Contingent consideration | 13 | 13 |
Total liabilities | 13 | 13 |
Recurring basis | Fair Value | ||
Assets: | ||
Total assets | 1,491 | 1,393 |
Liabilities: | ||
Contingent consideration | 13 | 13 |
Total liabilities | 20 | 22 |
Recurring basis | Fair Value | Commodities | ||
Assets: | ||
Derivatives | 6 | 6 |
Liabilities: | ||
Derivatives | 4 | 4 |
Recurring basis | Fair Value | Foreign currencies | ||
Assets: | ||
Derivatives | 2 | |
Liabilities: | ||
Derivatives | 3 | |
Recurring basis | Fair Value | Domestic equity securities | Short term investments | ||
Assets: | ||
Trading securities | 706 | 632 |
Recurring basis | Fair Value | Domestic equity securities | Other current assets | ||
Assets: | ||
Trading securities | 40 | 32 |
Recurring basis | Fair Value | Domestic debt securities | Short term investments | ||
Assets: | ||
Trading securities | 409 | 268 |
Recurring basis | Fair Value | Foreign equity securities | Short term investments | ||
Assets: | ||
Trading securities | 189 | 218 |
Recurring basis | Fair Value | Foreign equity securities | Other current assets | ||
Assets: | ||
Trading securities | 3 | 3 |
Recurring basis | Fair Value | High yield securities | Short term investments | ||
Assets: | ||
Trading securities | 56 | 19 |
Recurring basis | Fair Value | Foreign debt securities | Short term investments | ||
Assets: | ||
Trading securities | 43 | 16 |
Recurring basis | Fair Value | Collateralized loan obligations | Short term investments | ||
Assets: | ||
Trading securities | 15 | 28 |
Recurring basis | Fair Value | Money market funds held in trading accounts | Short term investments | ||
Assets: | ||
Trading securities | 12 | 146 |
Recurring basis | Fair Value | Money market funds held in trading accounts | Other current assets | ||
Assets: | ||
Trading securities | 6 | 5 |
Recurring basis | Fair Value | Other trading investments | Short term investments | ||
Assets: | ||
Trading securities | 4 | 14 |
Liabilities: | ||
Derivatives | 5 | |
Recurring basis | Fair Value | Fixed income securities | Other current assets | ||
Assets: | ||
Trading securities | $ 2 | 3 |
Recurring basis | Fair Value | Other | Other current assets | ||
Assets: | ||
Trading securities | $ 1 |
Derivatives and Fair Value of_4
Derivatives and Fair Value of Financial Instruments - Instruments and Agreements (Details) lb in Millions, gal in Millions, bu in Millions, $ in Millions | Dec. 31, 2019USD ($)gallbbu | Dec. 31, 2018USD ($)gallbbu |
Net commodity purchase contracts | Grain | ||
Derivative commodity instruments | ||
Nonmonetary notional amount | bu | 17 | 33 |
Net commodity purchase contracts | Soybean oil | ||
Derivative commodity instruments | ||
Nonmonetary notional amount | 8 | |
Net commodity sale contracts | Hogs | ||
Derivative commodity instruments | ||
Nonmonetary notional amount | 26 | |
Net commodity sale contracts | Heating oil | ||
Derivative commodity instruments | ||
Nonmonetary notional amount | gal | 12 | 7 |
Net commodity sale contracts | Soybean oil | ||
Derivative commodity instruments | ||
Nonmonetary notional amount | 132 | |
Foreign currencies | ||
Derivative commodity instruments | ||
Notional amounts | $ | $ 78 | $ 82 |
Equity futures contract | ||
Derivative commodity instruments | ||
Notional amounts | $ | $ 0 | $ 97 |
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, 2019 | Dec. 31, 2018 | |
Commodities | Cost of sales | ||
Amount of gain or (loss) recognized for each type of derivative and its location in the Consolidated Statements of Comprehensive Income | ||
Gains (losses) on derivatives | $ (52) | $ (12) |
Foreign currencies | Cost of sales | ||
Amount of gain or (loss) recognized for each type of derivative and its location in the Consolidated Statements of Comprehensive Income | ||
Gains (losses) on derivatives | 1 | 2 |
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 | (1) | 1 |
Equity futures contract | Other investment income (loss), net | ||
Amount of gain or (loss) recognized for each type of derivative and its location in the Consolidated Statements of Comprehensive Income | ||
Gains (losses) on derivatives | $ (4) | $ (6) |
Derivatives and Fair Value of_6
Derivatives and Fair Value of Financial Instruments - Fair Value of Derivatives (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($) | |
Commodities | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Margin account | $ 13 | $ 15 |
Commodities | Other current assets | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Asset Derivatives | 6 | 6 |
Derivative assets and liabilities, net basis | 15 | 17 |
Commodities | Other current liabilities | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Liability Derivatives | $ 4 | 4 |
Foreign currencies | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Number of counterparties | item | 3 | |
Foreign currencies | Maximum | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Credit risk associated with derivative contracts | $ 1 | |
Foreign currencies | Other current assets | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Asset Derivatives | 2 | |
Foreign currencies | Other current liabilities | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Liability Derivatives | $ 3 | |
Equity futures contract | Short term investments | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Liability Derivatives | $ 5 |
Stockholders' Equity and Accu_3
Stockholders' Equity and Accumulated Other Comprehensive Loss (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Sep. 29, 2018 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Aug. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Sep. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Components of and changes in accumulated other comprehensive loss, net of tax | ||||||||||||||||||||||||
Balance at beginning of the period | $ (410) | $ (354) | $ (410) | $ (354) | ||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (34) | (53) | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to net earnings | 4 | 4 | ||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (30) | (49) | ||||||||||||||||||||||
Balance at end of the period | $ (440) | $ (410) | $ (354) | $ (440) | $ (410) | $ (354) | ||||||||||||||||||
Common shares repurchased (in shares) | 4,369 | 1,333 | ||||||||||||||||||||||
Repurchase of common stock | $ 17 | $ 5 | ||||||||||||||||||||||
Remaining authorized repurchase amount | $ 78 | $ 78 | ||||||||||||||||||||||
Common stock dividend declared and paid (in dollars per share) | $ 9 | $ 6 | $ 6 | |||||||||||||||||||||
Common stock dividend declared (in dollars per share) | $ 2.25 | $ 2.25 | $ 2.25 | $ 1.50 | $ 2.25 | $ 2.25 | $ 2.25 | $ 1.50 | $ 2.25 | $ 2.25 | $ 2.25 | $ 1.50 | $ 2.25 | $ 1.50 | $ 1.50 | $ 1.50 | $ 1.50 | $ 1.50 | $ 1.50 | $ 1.50 | ||||
ASU 2018-02 | ||||||||||||||||||||||||
Components of and changes in accumulated other comprehensive loss, net of tax | ||||||||||||||||||||||||
Balance at beginning of the period | $ (45) | $ (45) | ||||||||||||||||||||||
Balance at end of the period | $ (45) | $ (45) | ||||||||||||||||||||||
Foreign currency translation adjustment | ||||||||||||||||||||||||
Components of and changes in accumulated other comprehensive loss, net of tax | ||||||||||||||||||||||||
Balance at beginning of the period | $ (349) | (297) | $ (349) | (297) | ||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (20) | (52) | ||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (20) | (52) | ||||||||||||||||||||||
Balance at end of the period | $ (369) | $ (349) | (297) | (369) | (349) | (297) | ||||||||||||||||||
Unrealized gain on investments | ||||||||||||||||||||||||
Components of and changes in accumulated other comprehensive loss, net of tax | ||||||||||||||||||||||||
Balance at beginning of the period | 7 | 7 | ||||||||||||||||||||||
Balance at end of the period | 7 | 7 | ||||||||||||||||||||||
Unrealized gain on investments | ASU 2016-01 | ||||||||||||||||||||||||
Components of and changes in accumulated other comprehensive loss, net of tax | ||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to retained earnings | (7) | (7) | ||||||||||||||||||||||
Unrecognized pension cost | ||||||||||||||||||||||||
Components of and changes in accumulated other comprehensive loss, net of tax | ||||||||||||||||||||||||
Balance at beginning of the period | $ (61) | $ (64) | (61) | (64) | ||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (14) | (1) | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to net earnings | 4 | 4 | ||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (10) | 3 | ||||||||||||||||||||||
Balance at end of the period | (71) | (61) | (64) | (71) | (61) | (64) | ||||||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||
Components of and changes in accumulated other comprehensive loss, net of tax | ||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to retained earnings | (7) | (45) | (7) | (45) | ||||||||||||||||||||
Accumulated Other Comprehensive Loss | ASU 2016-01 | ||||||||||||||||||||||||
Components of and changes in accumulated other comprehensive loss, net of tax | ||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to retained earnings | (7) | (7) | ||||||||||||||||||||||
Retained Earnings | ||||||||||||||||||||||||
Components of and changes in accumulated other comprehensive loss, net of tax | ||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to retained earnings | 7 | $ 45 | 7 | 45 | ||||||||||||||||||||
Repurchase of common stock | $ 17 | $ 5 | ||||||||||||||||||||||
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) | 26.00% | 39.00% | 26.00% | 26.00% | ||||||||||||||||||||
Certain subsidiaries | ||||||||||||||||||||||||
Components of and changes in accumulated other comprehensive loss, net of tax | ||||||||||||||||||||||||
Unrecognized pension cost related to employees at certain subsidiaries | $ 21 | $ 23 | $ 22 | $ 21 | $ 23 | 22 | ||||||||||||||||||
Certain subsidiaries | 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 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue Recognition | |||||||||||
Net sales | $ 1,812 | $ 1,663 | $ 1,822 | $ 1,543 | $ 1,662 | $ 1,651 | $ 1,691 | $ 1,579 | $ 6,840 | $ 6,583 | $ 5,809 |
Transferred at point in time | Net sales | |||||||||||
Revenue Recognition | |||||||||||
Concentration risk percentage | 85.00% | ||||||||||
Products | |||||||||||
Revenue Recognition | |||||||||||
Net sales | $ 5,610 | 5,334 | 4,693 | ||||||||
Other | |||||||||||
Revenue Recognition | |||||||||||
Net sales | 126 | 133 | 107 | ||||||||
Pork | |||||||||||
Revenue Recognition | |||||||||||
Net sales | 1,851 | 1,774 | 1,609 | ||||||||
Pork | Products | |||||||||||
Revenue Recognition | |||||||||||
Net sales | 1,599 | 1,451 | |||||||||
Pork | Transportation | |||||||||||
Revenue Recognition | |||||||||||
Net sales | 10 | 9 | |||||||||
Pork | Energy | |||||||||||
Revenue Recognition | |||||||||||
Net sales | 210 | 282 | |||||||||
Pork | Other | |||||||||||
Revenue Recognition | |||||||||||
Net sales | 32 | 32 | |||||||||
CT&M | |||||||||||
Revenue Recognition | |||||||||||
Net sales | 3,672 | 3,428 | 2,945 | ||||||||
CT&M | Products | |||||||||||
Revenue Recognition | |||||||||||
Net sales | 3,654 | 3,410 | |||||||||
CT&M | Other | |||||||||||
Revenue Recognition | |||||||||||
Net sales | 18 | 18 | |||||||||
Marine | |||||||||||
Revenue Recognition | |||||||||||
Net sales | 1,061 | 1,057 | 956 | ||||||||
Marine | Transportation | |||||||||||
Revenue Recognition | |||||||||||
Net sales | 1,061 | 1,057 | |||||||||
Sugar and Alcohol | |||||||||||
Revenue Recognition | |||||||||||
Net sales | 121 | 184 | 186 | ||||||||
Sugar and Alcohol | Products | |||||||||||
Revenue Recognition | |||||||||||
Net sales | 112 | 173 | |||||||||
Sugar and Alcohol | Energy | |||||||||||
Revenue Recognition | |||||||||||
Net sales | 9 | 11 | |||||||||
Power | |||||||||||
Revenue Recognition | |||||||||||
Net sales | 117 | 122 | 97 | ||||||||
Power | Energy | |||||||||||
Revenue Recognition | |||||||||||
Net sales | 117 | 122 | |||||||||
All Other | |||||||||||
Revenue Recognition | |||||||||||
Net sales | 18 | 18 | $ 16 | ||||||||
All Other | Products | |||||||||||
Revenue Recognition | |||||||||||
Net sales | 17 | 18 | |||||||||
All Other | Transportation | |||||||||||
Revenue Recognition | |||||||||||
Net sales | 1 | ||||||||||
Segment Totals | |||||||||||
Revenue Recognition | |||||||||||
Net sales | 6,840 | 6,583 | |||||||||
Segment Totals | Products | |||||||||||
Revenue Recognition | |||||||||||
Net sales | 5,382 | 5,052 | |||||||||
Segment Totals | Transportation | |||||||||||
Revenue Recognition | |||||||||||
Net sales | 1,072 | 1,066 | |||||||||
Segment Totals | Energy | |||||||||||
Revenue Recognition | |||||||||||
Net sales | 336 | 415 | |||||||||
Segment Totals | Other | |||||||||||
Revenue Recognition | |||||||||||
Net sales | $ 50 | $ 50 |
Revenue Recognition - Practical
Revenue Recognition - Practical Expedient (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition | |
Practical expedient, disclosure of performance obligation | true |
Income Taxes (Details)
Income Taxes (Details) $ / shares in Units, $ in Millions | Jan. 01, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($)$ / shares | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)company | Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($) |
2017 Tax Act | |||||||
Federal income tax rate (as a percent) | 21.00% | 21.00% | 21.00% | 35.00% | |||
Number of new U.S. tax base erosion provisions in the 2017 Tax Act | item | 2 | ||||||
Long-term income tax liability related to the 2017 Tax Act mandatory deemed repatriated earnings | $ 62 | $ 62 | $ 62 | $ 73 | |||
Expected payments on long-term income tax liability in 2021 | 2 | 2 | 2 | ||||
Expected payments on long-term income tax liability in 2022 | 6 | 6 | 6 | ||||
Expected payments on long-term income tax liability in 2023 | 6 | 6 | 6 | ||||
Expected payments on long-term income tax liability in 2024 | 12 | 12 | 12 | ||||
Expected payments on long-term income tax liability thereafter | 36 | 36 | 36 | ||||
Term to repay long-term income tax liability | 8 years | ||||||
Reconciliation of computed expected tax expense excluding non-controlling interest to income tax expense (benefit) attributable to continuing operations | |||||||
Computed "expected" tax expense (benefit) excluding non-controlling interest | 60 | (3) | $ 150 | ||||
Adjustments to tax expense (benefit) attributable to: | |||||||
Foreign tax differences | 14 | 12 | (22) | ||||
Tax-exempt income | (29) | (13) | |||||
State income taxes, net of federal benefit | (4) | (8) | 9 | ||||
Repatriation tax | 14 | 112 | |||||
Effect on deferreds of federal rate reduction | (47) | ||||||
Foreign entity tax status change | 22 | ||||||
Federal tax credits | (47) | (23) | (18) | ||||
Federal rate reduction effect on capital loss carryback | (3) | ||||||
Domestic manufacturing deduction | (2) | ||||||
Other | 7 | 3 | (1) | ||||
Income tax expense | 1 | 1 | 181 | ||||
Increase in provisional tax impact of the Tax Cuts and Jobs Act | 16 | ||||||
Components of earnings before income taxes | |||||||
United States | 174 | (109) | 273 | ||||
Foreign | 110 | 93 | 155 | ||||
Total earnings (loss) excluding non-controlling interest | 284 | (16) | 428 | ||||
Less: Net loss (income) attributable to noncontrolling interest | 1 | ||||||
Earnings (loss) before income taxes | 284 | (16) | 427 | ||||
Current: | |||||||
Federal | 12 | (20) | 118 | ||||
Foreign | 39 | 32 | 19 | ||||
State and local | (1) | 2 | |||||
Deferred: | |||||||
Federal | (41) | 5 | 20 | ||||
Foreign | (1) | (5) | 10 | ||||
State and local | (7) | (11) | 12 | ||||
Income tax expense | 1 | 1 | 181 | ||||
Unrealized changes in other comprehensive loss | (4) | 2 | (3) | ||||
Total income taxes | (3) | 3 | 178 | ||||
Income taxes receivable | 14 | 14 | 14 | 39 | |||
Income taxes payable | 16 | 16 | 16 | 14 | |||
Deferred income tax liabilities: | |||||||
Depreciation | 119 | 119 | 119 | 140 | |||
Domestic partnerships | 65 | 65 | 65 | 78 | |||
Unrealized gain on investments | 36 | 36 | 36 | ||||
Other | 4 | 4 | 4 | 8 | |||
Aggregate deferred income tax liabilities | 224 | 224 | 224 | 226 | |||
Deferred income tax assets: | |||||||
Reserves/accruals | 73 | 73 | 73 | 70 | |||
Net operating and capital loss carry-forwards | 63 | 63 | 63 | 56 | |||
LIFO | 2 | 2 | 2 | 7 | |||
Tax credit carry-forwards | 75 | 75 | 75 | 21 | |||
Other | 4 | 4 | 4 | 4 | |||
Aggregate deferred income tax assets | 217 | 217 | 217 | 158 | |||
Valuation allowance | 68 | 68 | 68 | 59 | |||
Net deferred income tax liability | 75 | 75 | 75 | 127 | |||
Accrued interest and penalties on uncertain tax positions | 8 | 8 | 8 | 6 | |||
Unrecognized tax benefits, if recognized, would affect the effective tax rate | 31 | 31 | 31 | 25 | |||
Reconciliation of the beginning and ending amount of unrecognized tax benefits | |||||||
Balance at the beginning of the year | $ 18 | $ 18 | 25 | 18 | |||
Additions for uncertain tax positions of prior years | 4 | 2 | |||||
Decreases for uncertain tax positions of prior years | (3) | ||||||
Additions for uncertain tax positions of current year | 6 | 6 | |||||
Lapse of statute of limitations | (1) | (1) | |||||
Balance at the end of the year | 31 | 31 | 31 | 25 | 18 | ||
Undistributed earnings from foreign operations | 1,300 | $ 1,300 | 1,300 | ||||
Additional tax expense due to change in tax status | 22 | ||||||
One-time tax benefit on enactment of law | 4 | 0 | |||||
Gross non-taxable revenue related to federal blender's credit | 136 | 61 | |||||
Federal blender's credits recognized as revenue per common share | $ / shares | $ 51.14 | ||||||
Other commitments | |||||||
Contribution to long-term investment | 38 | 21 | $ 12 | ||||
Investment tax credits | $ 34 | ||||||
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 | |||||||
2017 Tax Act | |||||||
Federal income tax rate (as a percent) | 35.00% | ||||||
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 | $ 59 | $ 59 | $ 59 | 59 | $ 58 | ||
Charge (credit) to expense | 9 | 1 | |||||
Balance at end of year | 68 | $ 68 | $ 68 | 59 | 59 | ||
Refined coal processing plant | |||||||
Reconciliation of the beginning and ending amount of unrecognized tax benefits | |||||||
Number of limited liability companies invested in | company | 3 | ||||||
Other commitments | |||||||
Contribution to long-term investment | $ 15 | $ 17 | $ 10 | ||||
Biogas fueled power project | |||||||
Reconciliation of the beginning and ending amount of unrecognized tax benefits | |||||||
Number of limited liability companies invested in | company | 2 | ||||||
Other commitments | |||||||
Contribution to long-term investment | $ 20 | ||||||
Foreign | |||||||
Reconciliation of the beginning and ending amount of unrecognized tax benefits | |||||||
Net operating loss carry-forwards (NOLs) | 171 | 171 | 171 | ||||
State | |||||||
Reconciliation of the beginning and ending amount of unrecognized tax benefits | |||||||
Net operating loss carry-forwards (NOLs) | 179 | 179 | 179 | ||||
Tax credit carry-forwards | $ 22 | $ 22 | $ 22 |
Segment Information - Pork and
Segment Information - Pork and Power Segments (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Feb. 23, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($)segment | Sep. 30, 2019 | |
Segment Information | |||||
Number of reportable segments | segment | 6 | ||||
Project cost | $ 1,801 | $ 1,801 | $ 1,801 | ||
Federal blender's credits recognized as revenue | $ 60 | ||||
Pork | |||||
Segment Information | |||||
Federal blender's credits recognized as revenue | $ 60 | ||||
Pork | Ethanol plant | |||||
Segment Information | |||||
Asset purchase | $ 40 | ||||
Power | Disposed of by sale | |||||
Segment Information | |||||
Percentage of ownership interest sold | 29.90% | 29.90% | 29.90% | 29.90% |
Segment Information - Specific
Segment Information - Specific Financial Information About Each Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Information | |||||||||||
Sales to External Customers | $ 1,812 | $ 1,663 | $ 1,822 | $ 1,543 | $ 1,662 | $ 1,651 | $ 1,691 | $ 1,579 | $ 6,840 | $ 6,583 | $ 5,809 |
Operating Income (Loss) | 91 | $ (6) | $ 53 | $ (34) | 43 | $ 37 | $ 32 | $ 97 | 104 | 209 | 240 |
Loss from affiliates | (41) | (44) | (7) | ||||||||
Depreciation and amortization | 138 | 134 | 118 | ||||||||
Total Assets | 6,285 | 5,307 | 6,285 | 5,307 | |||||||
Investment in and Advances to Affiliates | 735 | 804 | 735 | 804 | |||||||
Capital expenditures | 349 | 162 | 173 | ||||||||
Pork | |||||||||||
Segment Information | |||||||||||
Sales to External Customers | 1,851 | 1,774 | 1,609 | ||||||||
Operating Income (Loss) | 54 | 117 | 193 | ||||||||
Loss from affiliates | (22) | (30) | (10) | ||||||||
Depreciation and amortization | 75 | 73 | 69 | ||||||||
Total Assets | 1,802 | 1,304 | 1,802 | 1,304 | |||||||
Investment in and Advances to Affiliates | 183 | 192 | 183 | 192 | |||||||
Capital expenditures | 164 | 86 | 100 | ||||||||
CT&M | |||||||||||
Segment Information | |||||||||||
Sales to External Customers | 3,672 | 3,428 | 2,945 | ||||||||
Operating Income (Loss) | 62 | 46 | 25 | ||||||||
Loss from affiliates | (5) | (11) | 7 | ||||||||
Depreciation and amortization | 25 | 22 | 10 | ||||||||
Total Assets | 1,621 | 1,423 | 1,621 | 1,423 | |||||||
Investment in and Advances to Affiliates | 237 | 255 | 237 | 255 | |||||||
Capital expenditures | 23 | 29 | 15 | ||||||||
Marine | |||||||||||
Segment Information | |||||||||||
Sales to External Customers | 1,061 | 1,057 | 956 | ||||||||
Operating Income (Loss) | 4 | 25 | 21 | ||||||||
Loss from affiliates | 3 | 2 | (7) | ||||||||
Depreciation and amortization | 23 | 24 | 24 | ||||||||
Total Assets | 554 | 345 | 554 | 345 | |||||||
Investment in and Advances to Affiliates | 32 | 28 | 32 | 28 | |||||||
Capital expenditures | 26 | 18 | 37 | ||||||||
Sugar and Alcohol | |||||||||||
Segment Information | |||||||||||
Sales to External Customers | 121 | 184 | 186 | ||||||||
Operating Income (Loss) | (16) | 9 | 21 | ||||||||
Loss from affiliates | 1 | 1 | 1 | ||||||||
Depreciation and amortization | 6 | 6 | 7 | ||||||||
Total Assets | 139 | 138 | 139 | 138 | |||||||
Investment in and Advances to Affiliates | 5 | 4 | 5 | 4 | |||||||
Capital expenditures | 15 | 5 | 20 | ||||||||
Power | |||||||||||
Segment Information | |||||||||||
Sales to External Customers | 117 | 122 | 97 | ||||||||
Operating Income (Loss) | 27 | 21 | 9 | ||||||||
Loss from affiliates | 3 | 10 | 6 | ||||||||
Depreciation and amortization | 8 | 8 | 8 | ||||||||
Total Assets | 283 | 203 | 283 | 203 | |||||||
Investment in and Advances to Affiliates | 3 | 30 | 3 | 30 | |||||||
Capital expenditures | 121 | 23 | 1 | ||||||||
Turkey | |||||||||||
Segment Information | |||||||||||
Loss from affiliates | (21) | (16) | (4) | ||||||||
Total Assets | 275 | 295 | 275 | 295 | |||||||
Investment in and Advances to Affiliates | 275 | 295 | 275 | 295 | |||||||
All Other | |||||||||||
Segment Information | |||||||||||
Sales to External Customers | 18 | 18 | 16 | ||||||||
Operating Income (Loss) | 2 | 2 | 2 | ||||||||
Total Assets | 10 | 8 | 10 | 8 | |||||||
Segment Totals | |||||||||||
Segment Information | |||||||||||
Sales to External Customers | 6,840 | 6,583 | |||||||||
Operating Income (Loss) | 133 | 220 | 271 | ||||||||
Depreciation and amortization | 137 | 133 | 118 | ||||||||
Total Assets | 4,684 | 3,716 | 4,684 | 3,716 | |||||||
Capital expenditures | 349 | 161 | 173 | ||||||||
Corporate Items | |||||||||||
Segment Information | |||||||||||
Operating Income (Loss) | (29) | (11) | $ (31) | ||||||||
Depreciation and amortization | 1 | 1 | |||||||||
Total Assets | $ 1,601 | $ 1,591 | $ 1,601 | 1,591 | |||||||
Capital expenditures | $ 1 |
Segment Information - Geographi
Segment Information - Geographic Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Geographic Information | |||||||||||
Net sales | $ 1,812 | $ 1,663 | $ 1,822 | $ 1,543 | $ 1,662 | $ 1,651 | $ 1,691 | $ 1,579 | $ 6,840 | $ 6,583 | $ 5,809 |
Property, plant and equipment | 1,431 | 1,160 | 1,431 | 1,160 | |||||||
Caribbean, Central and South America | |||||||||||
Geographic Information | |||||||||||
Net sales | 2,792 | 2,753 | 2,295 | ||||||||
Africa | |||||||||||
Geographic Information | |||||||||||
Net sales | 1,859 | 1,668 | 1,483 | ||||||||
United States | |||||||||||
Geographic Information | |||||||||||
Net sales | 1,447 | 1,408 | 1,271 | ||||||||
Property, plant and equipment | 899 | 775 | 899 | 775 | |||||||
Singapore | |||||||||||
Geographic Information | |||||||||||
Property, plant and equipment | 139 | 21 | 139 | 21 | |||||||
Pacific Basin and Far East | |||||||||||
Geographic Information | |||||||||||
Net sales | 370 | 381 | 393 | ||||||||
Canada/Mexico | |||||||||||
Geographic Information | |||||||||||
Net sales | 308 | 255 | 238 | ||||||||
Europe | |||||||||||
Geographic Information | |||||||||||
Net sales | 52 | 100 | 99 | ||||||||
Dominican Republic | |||||||||||
Geographic Information | |||||||||||
Property, plant and equipment | 103 | 109 | 103 | 109 | |||||||
Senegal | |||||||||||
Geographic Information | |||||||||||
Property, plant and equipment | 43 | 48 | 43 | 48 | |||||||
Zambia | |||||||||||
Geographic Information | |||||||||||
Property, plant and equipment | 38 | 20 | 38 | 20 | |||||||
Argentina | |||||||||||
Geographic Information | |||||||||||
Property, plant and equipment | 59 | 50 | 59 | 50 | |||||||
Ivory Coast | |||||||||||
Geographic Information | |||||||||||
Property, plant and equipment | 33 | 36 | 33 | 36 | |||||||
All Other | |||||||||||
Geographic Information | |||||||||||
Net sales | 12 | 18 | $ 30 | ||||||||
Property, plant and equipment | $ 117 | $ 101 | $ 117 | $ 101 |
Segment Information - Geograp_2
Segment Information - Geographic Concentration (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Concentration Risk | |||||||||||
Net sales | $ 1,812 | $ 1,663 | $ 1,822 | $ 1,543 | $ 1,662 | $ 1,651 | $ 1,691 | $ 1,579 | $ 6,840 | $ 6,583 | $ 5,809 |
Geographic concentration | South Africa | |||||||||||
Concentration Risk | |||||||||||
Net sales | 668 | 589 | 581 | ||||||||
Geographic concentration | Colombia | |||||||||||
Concentration Risk | |||||||||||
Net sales | $ 778 | $ 757 | $ 495 | ||||||||
Net sales | Geographic concentration | South Africa | |||||||||||
Concentration Risk | |||||||||||
Concentration risk (as a percent) | 10.00% | 9.00% | 10.00% | ||||||||
Net sales | Geographic concentration | Colombia | |||||||||||
Concentration Risk | |||||||||||
Concentration risk (as a percent) | 11.00% | 11.00% | 9.00% |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Data | |||||||||||
Net sales | $ 1,812 | $ 1,663 | $ 1,822 | $ 1,543 | $ 1,662 | $ 1,651 | $ 1,691 | $ 1,579 | $ 6,840 | $ 6,583 | $ 5,809 |
Operating income (loss) | 91 | (6) | 53 | (34) | 43 | 37 | 32 | 97 | 104 | 209 | 240 |
Net earnings (loss) attributable to Seaboard | $ 175 | $ (7) | $ 58 | $ 57 | $ (91) | $ 35 | $ 7 | $ 32 | $ 283 | $ (17) | $ 247 |
Earnings (loss) per common share | $ 149.91 | $ (6) | $ 50.13 | $ 48.79 | $ (77.58) | $ 29.93 | $ 6.28 | $ 26.75 | $ 242.78 | $ (14.61) | $ 211.01 |
Federal blender's credits recognized as revenue | $ 60 | ||||||||||
Federal blender's credits recognized as revenue per common share | $ 51.14 | ||||||||||
Other investment income (loss), net | $ 73 | $ (167) | $ 225 | $ (152) | $ 177 |