Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Jan. 31, 2021 | Jun. 27, 2020 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2020 | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 1,160,779 | ||
Entity Public Float | $ 741,867,137 | ||
Entity Central Index Key | 0000088121 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net sales: | |||
Total net sales | $ 7,126 | $ 6,840 | $ 6,583 |
Cost of sales and operating expenses: | |||
Total cost of sales and operating expenses | 6,552 | 6,394 | 6,033 |
Gross income | 574 | 446 | 550 |
Selling, general and administrative expenses | 329 | 336 | 314 |
Operating income | 245 | 110 | 236 |
Other income (expense): | |||
Interest expense | (19) | (36) | (44) |
Interest income | 22 | 30 | 14 |
Income (Loss) from affiliates | (18) | (41) | (44) |
Other investment income (loss), net | 84 | 225 | (152) |
Foreign currency gains (losses), net | (31) | 4 | |
Miscellaneous, net | 3 | 2 | (3) |
Total other income (loss), net | 41 | 180 | (225) |
Earnings before income taxes | 286 | 290 | 11 |
Income tax expense | (3) | (3) | (8) |
Net earnings | 283 | 287 | 3 |
Less: Net loss attributable to noncontrolling interests | 0 | 0 | 0 |
Net earnings attributable to Seaboard | $ 283 | $ 287 | $ 3 |
Earnings per common share | $ 244.21 | $ 246.62 | $ 2.26 |
Average number of shares outstanding (in shares) | 1,161,526 | 1,165,758 | 1,170,501 |
Other comprehensive income (loss), net of income tax benefit (expense) of $3, $4 and $(2): | |||
Foreign currency translation adjustment | $ (7) | $ (20) | $ (53) |
Unrecognized pension cost | (23) | (10) | 3 |
Other comprehensive loss, net of tax | (30) | (30) | (50) |
Comprehensive income (loss) | 253 | 257 | (47) |
Less: Comprehensive loss (income) attributable to noncontrolling interests | (1) | 1 | |
Comprehensive income (loss) attributable to Seaboard | 252 | 257 | (46) |
Products | |||
Net sales: | |||
Total net sales | 5,993 | 5,610 | 5,334 |
Cost of sales and operating expenses: | |||
Total cost of sales and operating expenses | 5,580 | 5,316 | 4,963 |
Services | |||
Net sales: | |||
Total net sales | 1,058 | 1,104 | 1,116 |
Cost of sales and operating expenses: | |||
Total cost of sales and operating expenses | 915 | 989 | 971 |
Other | |||
Net sales: | |||
Total net sales | 75 | 126 | 133 |
Cost of sales and operating expenses: | |||
Total cost of sales and operating expenses | $ 57 | $ 89 | $ 99 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other comprehensive income (loss), income tax benefit (expense) | $ 3 | $ 4 | $ (2) |
Products | |||
Sales to affiliates | 1,125 | 1,346 | 1,282 |
Services | |||
Sales to affiliates | $ 21 | $ 18 | $ 12 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 76 | $ 125 |
Short-term investments | 1,465 | 1,434 |
Receivables: | ||
Trade | 381 | 370 |
Due from affiliates | 111 | 109 |
Other | 68 | 195 |
Total receivables | 560 | 674 |
Allowance for credit losses | (28) | (28) |
Net receivables | 532 | 646 |
Inventories | 1,178 | 1,086 |
Prepaid expenses | 44 | 48 |
Other current assets | 59 | 75 |
Total current assets | 3,354 | 3,414 |
Net property, plant and equipment | 1,582 | 1,431 |
Operating lease right of use assets, net | 390 | 446 |
Investments in and advances to affiliates | 698 | 735 |
Goodwill | 167 | 164 |
Other intangible assets, net | 54 | 58 |
Other non-current assets | 154 | 101 |
Total assets | 6,399 | 6,349 |
Current liabilities: | ||
Lines of credit | 222 | 246 |
Current maturities of long-term debt | 55 | 62 |
Accounts payable (includes $7 and $14 to affiliates) | 276 | 368 |
Accrued compensation and benefits | 110 | 131 |
Deferred revenue (includes $38 and $32 to affiliates) | 89 | 80 |
Operating lease liabilities | 111 | 104 |
Accrued voyage costs | 68 | 68 |
Other current liabilities | 145 | 130 |
Total current liabilities | 1,076 | 1,189 |
Long-term debt, less current maturities | 707 | 730 |
Long-term operating lease liabilities | 318 | 379 |
Accrued pension liability | 179 | 159 |
Deferred income taxes | 103 | 93 |
Long-term income tax liability | 6 | 62 |
Other liabilities | 182 | 136 |
Total non-current liabilities | 1,495 | 1,559 |
Commitments and contingent liabilities | ||
Stockholders' equity: | ||
Common stock of $1 par value. Authorized 1,250,000 shares; issued and outstanding 1,160,779 shares in 2020 and 1,164,848 shares in 2019 | 1 | 1 |
Accumulated other comprehensive loss | (471) | (440) |
Retained earnings | 4,287 | 4,030 |
Total Seaboard stockholders' equity | 3,817 | 3,591 |
Noncontrolling interests | 11 | 10 |
Total equity | 3,828 | 3,601 |
Total liabilities and stockholders' equity | $ 6,399 | $ 6,349 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Consolidated Balance Sheets | ||
Payables due to affiliates | $ 7 | $ 14 |
Deferred revenue to affiliates | $ 38 | $ 32 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized shares | 1,250,000 | 1,250,000 |
Common stock, issued shares | 1,160,779 | 1,164,848 |
Common stock, outstanding shares | 1,160,779 | 1,164,848 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Common Stock | Accumulated Other Comprehensive LossCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Retained EarningsImpact of Change to FIFO | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Noncontrolling Interest | Impact of Change to FIFO | Cumulative Effect, Period of Adoption, Adjustment | Total |
Balances at Dec. 31, 2017 | $ 1 | $ (7) | $ (354) | $ 23 | $ 7 | $ 3,750 | $ 11 | $ 23 | $ 3,408 | |
Comprehensive income (loss): | ||||||||||
Net earnings | 3 | 20 | 3 | |||||||
Other comprehensive income (loss), net of tax | (49) | (1) | (50) | |||||||
Repurchase of common stock | (5) | (5) | ||||||||
Addition to noncontrolling interests | 4 | 4 | ||||||||
Reduction to noncontrolling interests | (1) | (3) | (4) | |||||||
Dividends on common stock | (7) | (7) | ||||||||
Balances at Dec. 31, 2018 | 1 | (410) | 3,770 | 11 | 3,372 | |||||
Comprehensive income (loss): | ||||||||||
Net earnings | 287 | 4 | 287 | |||||||
Other comprehensive income (loss), net of tax | (30) | (30) | ||||||||
Repurchase of common stock | (17) | (17) | ||||||||
Reduction to noncontrolling interests | (1) | (1) | ||||||||
Dividends on common stock | (10) | (10) | ||||||||
Balances at Dec. 31, 2019 | 1 | (440) | $ (3) | 4,030 | 10 | $ (3) | 3,601 | |||
Comprehensive income (loss): | ||||||||||
Net earnings | 283 | $ 44 | 283 | |||||||
Other comprehensive income (loss), net of tax | (31) | 1 | (30) | |||||||
Repurchase of common stock | (13) | (13) | ||||||||
Dividends on common stock | (10) | (10) | ||||||||
Balances at Dec. 31, 2020 | $ 1 | $ (471) | $ 4,287 | $ 11 | $ 3,828 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated Statements of Changes in Equity | |||
Dividends on common stock (in dollars per share) | $ 9 | $ 9 | $ 6 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net earnings | $ 283 | $ 287 | $ 3 |
Adjustments to reconcile net earnings to cash from operating activities: | |||
Depreciation and amortization | 172 | 138 | 134 |
Deferred income taxes | 11 | (53) | (13) |
Mandatory deemed repatriation tax | (56) | (11) | 14 |
Loss from affiliates | 18 | 41 | 44 |
Dividends received from affiliates | 20 | 10 | 23 |
Other investment loss (income), net | (84) | (225) | 152 |
Other, net | 34 | 7 | 5 |
Changes in assets and liabilities, net of acquisitions: | |||
Receivables, net of allowance | 104 | (84) | (58) |
Inventories | (99) | (158) | (61) |
Other assets | (10) | 27 | 44 |
Accounts payable | (99) | 114 | (25) |
Other liabilities, exclusive of debt | (3) | 78 | (24) |
Net cash from operating activities | 291 | 171 | 238 |
Cash flows from investing activities: | |||
Purchase of short-term investments | (739) | (1,026) | (1,130) |
Proceeds from the sale of short-term investments | 791 | 973 | 1,191 |
Proceeds from the maturity of short-term investments | 47 | 185 | 53 |
Capital expenditures | (259) | (349) | (162) |
Proceeds from the sale of non-consolidated affiliate | 24 | ||
Acquisition of businesses | (27) | (7) | (264) |
Investments in and advances to affiliates, net | (8) | (21) | (26) |
Purchase of long-term investments | (47) | (38) | (21) |
Other, net | (20) | 6 | 10 |
Net cash from investing activities | (262) | (253) | (349) |
Cash flows from financing activities: | |||
Uncommitted lines of credit, net | (18) | 34 | |
Draws under committed lines of credit | 290 | 100 | 30 |
Repayments of committed lines of credit | (290) | (100) | (30) |
Proceeds from long-term debt | 37 | 43 | 251 |
Principal payments of long-term debt | (69) | (35) | (46) |
Repurchase of common stock | (13) | (17) | (5) |
Dividends paid | (10) | (10) | (7) |
Other, net | (9) | (4) | (3) |
Net cash from financing activities | (82) | 11 | 190 |
Effect of exchange rate changes on cash and cash equivalents | 4 | 2 | (1) |
Net change in cash and cash equivalents | (49) | (69) | 78 |
Cash and cash equivalents at beginning of year | 125 | 194 | 116 |
Cash and cash equivalents at end of year | $ 76 | $ 125 | $ 194 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 1 - Su mmary of Significant Accounting Policies Operations of Seaboard Corporation and its Subsidiaries Seaboard Corporation and its subsidiaries (collectively, “Seaboard”) together comprise a diverse group of integrated companies with a broad global presence. Seaboard is primarily engaged in hog production and pork processing in the U.S; commodity trading and grain processing in Africa and South America; cargo shipping services in the U.S., Caribbean and Central and South America; sugar and alcohol production in Argentina; and electric power generation in the Dominican Republic. Seaboard also has an equity method investment in Butterball, LLC (“Butterball”), a producer and processor of turkey products. 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. 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. Actual results could differ from those estimates. Change in Accounting Principle During the fourth quarter of 2020, Seaboard elected to change its method for valuing hogs, fresh pork and other inventories in the Pork segment from the last-in, first-out (“LIFO”) method to the first-in, first-out (“FIFO”) method. Total inventories accounted for under the LIFO method represented approximately 42% of consolidated inventories prior to this change in method. Seaboard believes that the FIFO method is preferable as this method more accurately matches cost of sales with the related revenues than the LIFO method as the FIFO method more closely resembles the physical flow of inventory. Also, the FIFO method results in the inventory at the end of a period consisting of more recently incurred costs. The effects of the change in accounting principle from LIFO to FIFO have been applied retrospectively to all periods presented and certain financial statement line items in Seaboard’s consolidated financial statements were adjusted as necessary. As of January 1, 2018, the cumulative effect of this change on periods prior to those presented resulted in an increase to beginning retained earnings of $23 million. The impact of the change on Seaboard’s consolidated statements of comprehensive income is summarized below: Year ended Year ended Year ended December 31, 2020 December 31, 2019 December 31, 2018 (Millions of dollars) As Computed Under LIFO As Reported Under FIFO Impact of Change to FIFO As Previously Reported Impact of Change to FIFO As Adjusted As Previously Reported Impact of Change to FIFO As Adjusted Cost of sales and operating expenses $ 6,612 $ 6,552 $ (60) $ 6,400 $ (6) $ 6,394 $ 6,060 $ (27) $ 6,033 Gross income $ 514 $ 574 $ 60 $ 440 $ 6 $ 446 $ 523 $ 27 $ 550 Operating income $ 185 $ 245 $ 60 $ 104 $ 6 $ 110 $ 209 $ 27 $ 236 Income tax expense (benefit) $ (13) $ 3 $ 16 $ 1 $ 2 $ 3 $ 1 $ 7 $ 8 Net earnings $ 239 $ 283 $ 44 $ 283 $ 4 $ 287 $ (17) $ 20 $ 3 Earnings (loss) per common share $ 205.88 $ 244.21 $ 38.33 $ 242.78 $ 3.84 $ 246.62 $ (14.61) $ 16.87 $ 2.26 The impact of the change on Seaboard’s consolidated balance sheet is summarized below: December 31, 2020 December 31, 2019 (Millions of dollars) As Computed Under LIFO As Reported Under FIFO Impact of Change to FIFO As Previously Reported Impact of Change to FIFO As Adjusted Inventories $ 1,118 $ 1,178 $ 60 $ 1,022 $ 64 $ 1,086 Deferred income taxes $ 87 $ 103 $ 16 $ 76 $ 17 $ 93 Retained earnings $ 4,243 $ 4,287 $ 44 $ 3,983 $ 47 $ 4,030 The impact of the change on Seaboard’s consolidated statements of cash flows is summarized below: Year ended Year ended Year ended December 31, 2020 December 31, 2019 December 31, 2018 As As Impact of As Impact of As Impact of Computed Reported Change to Previously Change to As Previously Change to As (Millions of dollars) Under LIFO Under FIFO FIFO Reported FIFO Adjusted Reported FIFO Adjusted Net earnings $ 239 $ 283 $ 44 $ 283 $ 4 $ 287 $ (17) $ 20 $ 3 Deferred income taxes $ (5) $ 11 $ 16 $ (55) $ 2 $ (53) $ (20) $ 7 $ (13) Inventories $ (39) $ (99) $ (60) $ (152) $ (6) $ (158) $ (34) $ (27) $ (61) This change did not affect Seaboard’s previously reported cash flows from operating, investing or financing activities. 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. These fluctuations result in exchange gains and losses. 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. Certain Commodity Trading and Milling (“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 mid-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, 2020, 2019 and 2018, Seaboard recognized $1 million, $(3) million and $9 million, respectively, 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 The amounts paid for interest and income taxes are as follows: Years ended December 31, (Millions of dollars) 2020 2019 2018 Interest, net of interest capitalized $ 16 $ 36 $ 43 Income taxes, net of refunds 55 31 35 The following table includes supplemental cash and non-cash information related to leases. Seaboard reports the amortization of right of use (“ROU”) assets and changes in operating lease liabilities in other liabilities, exclusive of debt in the consolidated statements of cash flows. Twelve months ended December 31, (Millions of dollars) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 142 $ 137 Operating cash flows from finance leases 4 1 Financing cash flows from finance leases 7 2 Operating ROU assets obtained in exchange for new operating lease liabilities $ 62 $ 95 Finance ROU assets obtained in exchange for new finance lease liabilities 50 46 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, and capital expenditures of $7 million included in accounts payable. 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 CT&M segment provides extended payment terms for certain customers in certain countries due to local market conditions. The allowance for credit losses is Seaboard’s best estimate of the amount of probable credit losses using the current expected credit loss model. T his model estimates the lifetime of expected credit loss based on historical experience, current conditions and reasonable supportable forecasts. The activity within the allowance for credit losses was as follows: Balance at Transition Balance at (Millions of dollars) beginning of year Adjustment (a) Provision (b) Net deductions (c) end of year Allowance for Credit Losses: Year Ended December 31, 2020 $ 28 3 — (3) $ 28 Year Ended December 31, 2019 $ 33 — 5 (10) $ 28 Year Ended December 31, 2018 $ 29 — 7 (3) $ 33 (a) (b) (c) Notes Receivable Notes receivable are included in other receivables, if current, and other non-current assets, if long-term. Seaboard monitors the credit quality of notes receivable, the majority of which are from its affiliates, using the current expected credit loss model as well. For notes receivable from affiliates, Seaboard obtains and reviews financial information monthly and Seaboard representatives serve on their Board of Directors. 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, 2020 $ 17 — — $ 17 Year Ended December 31, 2019 $ 17 — — $ 17 Year Ended December 31, 2018 $ 16 1 — $ 17 Inventories Grain, flour and feed inventories at the CT&M segment’s foreign milling operations are valued at the lower of weighted average cost and net realizable value (“NRV”). All other inventories are valued at the lower of FIFO cost and NRV. In determining NRV, management makes assumptions regarding estimated sales prices, estimated costs to complete and estimated disposal costs. Changes in future market prices or facts and circumstances could result in a material write down in the value of inventory or decreased future margins on the sale of inventory. During the fourth quarter of 2020, Seaboard elected to change its method of accounting for valuing hogs, fresh pork and other inventories in the Pork segment from the LIFO method to the FIFO method, with all prior periods adjusted to apply the new method. See the Change in Accounting Principle 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. As Seaboard’s leases do not have readily determinable implicit discount rates, Seaboard adjusts its incremental borrowing rate to determine the present value of the lease payments. Seaboard determines the incremental borrowing rate for its leases by adjusting the local risk-free interest rate on its Term Loan due 2028 with a credit risk premium corresponded to Seaboard’s unreported credit rating. 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 non-lease maintenance components as a single lease component for all classes of underlying assets. Equity Method Investments Investments in non-controlled affiliates where we have significant influence are accounted for by the equity method. For the CT&M segment, these investments are primarily in foreign countries, which are less developed than the U.S., and therefore, expose Seaboard to greater financial risks. At certain times when there are ongoing losses, local economies are depressed, commodity-based markets are less stable or foreign governments cause challenging business conditions, the fair value of the equity method investments is evaluated by management. The fair value of these investments is not readily determinable as almost all of these investments are not publicly traded. Management will use other methods to determine fair value such as estimated future cash flows, including assumptions on growth rates, for the business and consideration of other local business conditions as applicable. Goodwill and Other Intangible Assets Goodwill is assessed annually for impairment by each reporting unit at the quarter end closest to the anniversary date of the initial acquisition, or more frequently if 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, 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 qualitative assessments 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, 2018 $ 18 $ 149 $ 167 Acquisition — 1 1 Foreign currency translation — (4) (4) Balance as of December 31, 2019 18 146 164 Foreign currency translation — 4 4 Other adjustments — (1) (1) Balance as of December 31, 2020 $ 18 $ 149 $ 167 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, 2020 December 31, 2019 Customer Trade Customer Trade (Millions of dollars) relationships names Total relationships names Total Gross carrying amount $ 51 $ 28 $ 79 $ 50 $ 28 $ 78 Accumulated amortization and currency translation (16) (9) (25) (13) (7) (20) Net carrying amount $ 35 $ 19 $ 54 $ 37 $ 21 $ 58 Amortization of intangible assets was $8 million for both the years ended December 31, 2020 and 2019. Using the exchange rates in effect at year-end, estimated amortization of intangible assets as of December 31, 2020 was $8 million each for next years 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) 2020 2019 Beginning balance $ 25 $ 23 Accretion expense 2 2 Ending balance $ 27 $ 25 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 . Seaboard does not disclose the value of unsatisfied performance obligations for: (i) contracts with an original expected length of one 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, 2020, none Research and Development Seaboard conducts continuous research and development activities to develop new products and to improve existing products and processes. Seaboard incurred research and development expenses of $134 million, $143 million and $77 million for the years ended December 31, 2020, 2019 and 2018, respectively. 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. Seaboard accounts for the global intangible low-taxed income (“GILTI”) provision and the base-erosion and anti-abuse tax (“BEAT”) provision taxes in the period incurred. Earnings Per Common Share Earnings per common share are based upon the weighted average shares outstanding during the period. Basic and diluted earnings per share are the same for all periods presented. Accounting Standards Recently Adopted On January 1, 2020, Seaboard adopted guidance which requires the use of a new current expected credit loss model in order to determine the allowance for credit losses with respect to receivables, among other financial instruments. This model estimates the lifetime of expected credit loss and replaces the existing incurred loss model. As a result of this adoption, Seaboard recorded a cumulative-effect adjustment of $3 million on January 1, 2020 that decreased retained earnings and increased the allowance for credit losses. Accounts Receivable 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 leases. 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 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2020 | |
Acquisitions | |
Acquisitions | Note 2 - Acquisitions In November 2020, Seaboard’s Pork segment purchased substantially all of the operating assets of Hitch Pork Producers, Inc., a hog production company that previously supplied hogs to the Guymon plant. The purchase price of $27 million included $23 million in hog farms and related assets and $4 million in inventories. On October 28 , The following table summarizes the purchase price allocation resulting from this consolidation: (Millions of dollars) Receivables $ 33 Inventories 55 Other current assets 7 Property, plant and equipment 12 Intangible assets 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 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 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). |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
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) 2020 2019 Domestic equity securities $ 702 $ 706 Domestic debt securities 496 460 Foreign equity securities 133 189 Foreign debt securities 68 48 Money market funds held in trading accounts 47 12 Other trading securities 19 19 Total trading short-term investments $ 1,465 $ 1,434 The change in unrealized gains (losses) related to trading securities still held at the end of the respective reporting period was $74 million, $176 million and ($110) million for the years ended December 31, 2020, 2019 and 2018, respectively. Seaboard had $1 million of equity securities denominated in foreign currencies as of December 31, 2020, and $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 $28 million and $13 million of debt securities denominated in euros as of December 31, 2020 and 2019, 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 plans. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventories | |
Inventories | Note 4 - Inventories The following table is a summary of inventories: December 31, (Millions of dollars) 2020 2019 ADJUSTED At lower of FIFO cost and NRV: Hogs and materials $ 437 $ 387 Fresh pork and materials 46 50 Grains, oilseeds and other commodities 380 353 Biodiesel 72 43 Sugar produced and in process 24 17 Other 61 62 Total inventories at lower of FIFO cost and NRV 1,020 912 Grain, flour and feed at lower of weighted average cost and NRV 158 174 Total inventories $ 1,178 $ 1,086 |
Net Property, Plant and Equipme
Net Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
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 2020 2019 Land and improvements 3 - 15 years $ 268 $ 250 Buildings and improvements 30 years 712 646 Machinery and equipment 3 - 20 years 1,367 1,360 Vessels and vehicles 3 - 18 years 158 147 Office furniture and fixtures 5 years 43 42 Contract growers 5 - 15 years 93 44 Construction in progress 389 287 3,030 2,776 Accumulated depreciation and amortization (1,448) (1,345) Net property, plant and equipment $ 1,582 $ 1,431 Finance lease ROU assets 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. Finance lease ROU assets were $92 million and $50 million, net of $12 million and $3 million in accumulated amortization at December 31, 2020 and 2019, respectively. Seaboard’s capitalized interest on construction in progress was $10 million and $7 million for the years ended December 31, 2020 and 2019, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
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 non-lease 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, 2020, 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, 2020 and 2019, respectively, was as follows: (Millions of dollars) 2020 2019 Finance lease right of use assets, net Property, plant and equipment, net $ 92 $ 50 Finance lease liabilities Other current liabilities 10 5 Non-current finance lease liabilities Other liabilities 78 40 The components of lease cost were as follows: (Millions of dollars) 2020 2019 Operating lease cost $ 145 $ 138 Finance lease cost: Amortization of right of use assets 9 3 Interest on lease liabilities 4 1 Variable lease cost 8 7 Short-term lease cost 25 48 Sublease income (6) — Total lease cost $ 185 $ 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 in 2018. The Marine and CT&M segments’ vessel charter hire expenses during 2018 totaled $111 million. The Pork segment paid $48 million for contract grower agreements in 2018. Maturities of lease liabilities as of December 31, 2020 were as follows: Operating Finance (Millions of dollars) Leases Leases 2021 $ 121 $ 14 2022 92 14 2023 58 14 2024 47 13 2025 41 12 Thereafter 117 45 Total undiscounted lease payments 476 112 Less imputed interest (47) (24) Total lease liability $ 429 $ 88 Seaboard’s weighted average discount rate for operating and finances leases was 6.44% and 5.18%, respectively, as of December 31, 2020. 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. |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments | |
Equity Method Investments | 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) 2020 2019 2018 Net sales $ 1,543 $ 1,453 $ 927 Net loss $ (18) $ (43) $ (60) Total assets $ 586 $ 639 $ 623 Total liabilities $ 245 $ 277 $ 243 Total equity $ 341 $ 362 $ 380 The Pork segment has a 50% noncontrolling interest in Daily’s Premium Meats, LLC (“Daily’s”) and Seaboard Triumph Foods, LLC (“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. CT&M Segment December 31, (Millions of dollars) 2020 2019 2018 Net sales $ 2,482 $ 3,129 $ 3,238 Net loss $ (2) $ (12) $ (13) Total assets $ 1,745 $ 1,697 $ 1,914 Total liabilities $ 1,185 $ 1,075 $ 1,242 Total equity $ 560 $ 622 $ 672 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. Seaboard’s CT&M segment supplies commodities to the majority of its equity method milling affiliates. As of December 31, 2020, the location and percentage ownership of CT&M’s affiliates were as follows: Botswana (50%), Democratic Republic of Congo (50%), Gambia (50%), Kenya (46.87%-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 (30%-33.33%); and Canada (45%) and the U.S. (40%) in North America. Combined condensed financial information of these entities for each of Seaboard’s years ended is included in the table above. As of December 31, 2020, the CT&M segment’s carrying value of certain investments in affiliates was more than its share of the affiliates’ book value by $54 million. The excess is attributable primarily to the valuation of property, plant and equipment and intangible assets. Certain basis adjustments 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) 2020 2019 2018 Net sales $ 66 $ 70 $ 66 Net income $ 8 $ 12 $ 11 Total assets $ 253 $ 269 $ 272 Total liabilities $ 98 $ 107 $ 133 Total equity $ 155 $ 162 $ 139 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. These affiliates provide terminal and stevedoring services to the Marine segment. As of December 31, 2020, 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) 2020 2019 2018 Net sales $ 7 $ 10 $ 5 Net income $ 1 $ 3 $ 3 Total assets $ 14 $ 13 $ 10 Total liabilities $ 2 $ 2 $ 2 Total equity $ 12 $ 11 $ 8 The Sugar and Alcohol segment has noncontrolling interests in two sugar-related businesses in Argentina (48% 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) 2020 2019 2018 Net sales $ 1 $ 143 $ 138 Net income $ — $ 10 $ 33 Total assets $ 12 $ 11 $ 247 Total liabilities $ 6 $ 4 $ 139 Total equity $ 6 $ 7 $ 108 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) 2020 2019 2018 Net sales $ 1,675 $ 1,612 $ 1,591 Operating loss $ (6) $ (20) $ (16) Net loss $ (20) $ (40) $ (30) Total assets $ 993 $ 1,038 $ 1,072 Total liabilities $ 481 $ 507 $ 502 Total equity $ 512 $ 531 $ 570 The Turkey segment represents Seaboard’s 50% noncontrolling interest in Butterball. 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, 2020. 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 prior to December 31, 2025, when 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. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt | |
Debt | Note 8 – Debt The outstanding balances under uncommitted lines of credit was $222 million and $246 million as of December 31, 2020 and 2019, respectively. Of the $222 million outstanding as of December 31, 2020, $142 million was denominated in foreign currencies, with $106 million denominated in the South African rand, $25 million denominated in the Canadian dollar, $9 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 3.89% and 5.79% as of December 31, 2020 and 2019, respectively. The uncommitted lines of credit are unsecured and do not require compensating balances. Seaboard has two committed revolving credit agreements, which provide for a $250 million unsecured line of credit with a $100 million accordion option maturing May 20, 2021, and a $100 million line of credit secured by certain short-term investments maturing September 30, 2021. Draws bear interest based on LIBOR plus a spread. Seaboard incurs unused commitment fees of 0.15% to 0.20% per annum. There were no outstanding balances under committed lines of credit as of December 31, 2020 and 2019. 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) 2020 2019 Term Loans due 2027-2028 $ 714 $ 691 Foreign subsidiary obligations 49 102 Total debt at face value 763 793 Current maturities and unamortized discount and costs (56) (63) Long-term debt, less current maturities and unamortized discount and costs $ 707 $ 730 In December 2020, Seaboard received a $30 million term loan that incurs a 1% interest rate and matures in 2027. 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 1.77% and 3.42% as of December 31, 2020 and 2019, respectively. The Credit Agreement contains customary covenants for credit facilities of this type, including restrictions on the incurrence of indebtedness over a certain threshold, ability to make certain acquisitions, investments and asset dispositions and aggregate dividend payments. Foreign subsidiary obligations as of December 31, 2020, include a $46 million euro-denominated note payable due to the sellers related to a 2018 acquisition. This note payable was repaid in January 2021. The weighted average interest rate of all foreign subsidiary debt was 3.51% and 3.50% as of December 31, 2020 and 2019, respectively. Seaboard was in compliance with all restrictive debt covenants relating to these agreements as of December 31, 2020. The aggregate minimum principal payments required on long-term debt as of December 31, 2020 were as follows: $55 million in 2021, $8 million in 2022, $7 million in 2023, $7 million in 2024, $7 million in 2025 and $679 million thereafter. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 9 - Commitments and Contingencies Legal Proceedings On June 28, 2018, twelve indirect purchasers of pork products filed a class action complaint in the U.S. District Court for the District of Minnesota (the “District Court”) against several pork processors, including Seaboard Foods LLC, and Agri Stats, Inc., a company described in the complaint as a data sharing service. The complaint also named Seaboard Corporation as a defendant. Additional class action complaints making similar claims on behalf of putative classes of direct and indirect purchasers were later filed in the District Court, and three additional actions by standalone plaintiffs (including the Commonwealth of Puerto Rico) were filed in or transferred to the District Court. The consolidated actions are styled In re Pork Antitrust Litigation. The operative complaints allege, among other things, that beginning in January 2009, the defendants conspired and combined to fix, raise, maintain, and stabilize the price of pork products in violation of U.S. antitrust laws by coordinating 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 assert claims under various state laws, including state antitrust laws, unfair competition laws, consumer protection statutes, and common law unjust enrichment. The relief sought in the respective complaints includes treble damages, injunctive relief, pre- and post-judgment interest, costs, and attorneys’ fees. On October 16, 2020, the District Court denied defendants’ motions to dismiss the amended complaints, but the District Court later dismissed all claims against Seaboard Corporation without prejudice. 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. 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, 2020, guarantees outstanding were not material. Seaboard has not accrued a liability for any of the guarantees as management considers the likelihood of loss to be remote. Commitments As of December 31, 2020, Seaboard had various non-cancelable commitments under contractual agreements: Years ended December 31, (Millions of dollars) 2021 2022 2023 2024 2025 Thereafter Totals Hog procurement contracts (a) $ 99 $ 95 $ 94 $ 92 $ 96 $ 107 $ 583 Grain commitments (b) 153 1 — — — — 154 Grain purchase contracts for resale (c) 916 — — — — — 916 Fuel supply contracts (d) 28 45 45 46 47 235 446 Construction commitments (e) 120 — — — — — 120 Equipment and other commitments 146 5 3 3 3 25 185 Total unrecognized non-cancelable commitments $ 1,462 $ 146 $ 142 $ 141 $ 146 $ 367 $ 2,404 (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, 2020. During 2020, 2019 and 2018, the Pork segment paid $108 million, $121 million and $77 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, 2020. (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, 2020. (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, 2020. The Marine segment also has fuel purchase contracts. (e) The Pork segment’s renewable diesel production facility, expected to be operational in early 2022, has commitments of approximately $100 million. The other amounts are for completion of the barge at the Power segment and other construction projects. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2020 | |
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 2020 and 2019 and currently does not plan on making any contributions in 2021. Effective January 1, 2021, Seaboard will transfer assets and liabilities for employees of certain Seaboard subsidiaries into a successor plan. 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, 2020 and 2019, respectively, and the level within the fair value hierarchy used to measure each category of assets: December 31, (Millions of dollars) 2020 Level 1 Level 2 Level 3 Assets: Domestic equity securities $ 93 $ 93 $ — $ — Foreign equity securities 64 64 — — Domestic fixed income mutual funds 32 32 — — Foreign fixed income mutual funds 15 15 — — Money market funds 2 2 — — Total assets $ 206 $ 206 $ — $ — 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 $ — $ — 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, 2020 2019 2018 Weighted average assumptions Discount rate used to determine obligations 0.70 - 2.60 % 2.15 - 3.50 % 3.50 - 4.50 % Discount rate used to determine net periodic benefit cost 2.15 - 3.50 % 3.50 - 4.50 % 2.75 - 3.80 % Expected return on plan assets 6.25 % 6.25 % 6.25 % Long-term rate of increase in compensation levels 4.00 % 4.00 % 4.00 % Management selected the discount 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, 2020 2019 (Millions of dollars) Accumulated benefits exceed assets Accumulated benefits exceed assets Reconciliation of benefit obligation: Benefit obligation at beginning of year $ 348 $ 293 Service cost 9 8 Interest cost 11 12 Actuarial losses 58 50 Plan settlements (38) (9) Benefits paid (9) (9) Other — 3 Benefit obligation at end of year $ 379 $ 348 Reconciliation of fair value of plan assets: Fair value of plan assets at beginning of year $ 185 $ 156 Actual return on plan assets 27 35 Employer contributions 38 9 Plan settlements (38) (9) Benefits paid (6) (6) Fair value of plan assets at end of year $ 206 $ 185 Funded status $ (173) $ (163) The net funded status of the Plan was $(43) million and $(53) million as of December 31, 2020 and 2019, respectively. The benefit obligation increased primarily due to a decrease in discount rates for all plans. The accumulated benefit obligation for the Plan was $157 million and $205 million, respectively, and for all the other plans was $179 million and $104 million as of December 31, 2020 and 2019, respectively. Expected future benefit payments for all plans during each of the next five years and the next five years thereafter were as follows: $10 million, $30 million, $19 million, $22 million, $14 million and $77 million, respectively. The net periodic benefit cost of these plans was as follows: Years ended December 31, (Millions of dollars) 2020 2019 2018 Components of net periodic benefit cost: Service cost $ 9 $ 8 $ 10 Interest cost 11 12 11 Expected return on plan assets (11) (10) (11) Amortization 7 5 6 Settlement loss recognized 11 2 — Net periodic benefit cost $ 27 $ 17 $ 16 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, 2020 and 2019 were $112 million and $88 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 were primarily due to certain participants who received lump sum payments that exceeded the service cost plus interest cost for the respective plan. During 2020, Seaboard made a lump sum $32 million pension distribution, related to the passing of Mr. Steve Bresky, Seaboard’s former Chief Executive Officer. Seaboard has deferred compensation plans that allow certain employees to reduce their compensation in exchange for values in various investments, with one plan having options that are exercisable. In conjunction with these plans, Seaboard purchases investments that are classified as trading securities and included in other current assets and recognizes the amount payable to the employees in other current liabilities on the consolidated balance sheets. Investments for Seaboard’s deferred compensation plans were $26 million and $51 million as of December 31, 2020 and 2019, respectively. The payable to the employees was $23 million and $45 million as of December 31, 2020 and 2019, respectively. Seaboard paid $32 million of deferred compensation, related to Mr. Bresky, reducing the other current liabilities and other current assets. Deferred compensation plan costs recognized in selling, general and administrative expenses are offset by the effect of the marked-to-market adjustments on investments recorded in other investment income (loss). Seaboard’s income (expense) for these plans, which primarily includes amounts related to the change in fair value of the underlying investment accounts, was $(6) million, $(11) million and $2 million for the years ended December 31, 2020, 2019 and 2018, respectively. Investment income (loss) related to the deferred compensation investments totaled $6 million, $11 million and $(2) million, for the years ended December 31, 2020, 2019 and 2018, respectively. Seaboard maintains defined contribution plans covering most of its domestic employees. Contribution expense for these plans was $4 million for each of the years ended December 31, 2020, 2019 and 2018. In July 2019, after ratification of a renewed collective bargaining agreement, Seaboard ceased contributing to the United Food and Commercial Workers International Union-Industry Pension Fund (the “Fund”), a multi-employer pension fund, which subsequently terminated Seaboard’s participation. The Fund covered certain union employees under a collective bargaining agreement. Seaboard recorded a $14 million withdrawal liability in 2019, that is payable in quarterly installments over 20 years. Contribution expense for this Fund was $1 million for each of the years ended December 31, 2019 and 2018. |
Derivatives and Fair Value of F
Derivatives and Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
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 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) 2020 Level 1 Level 2 Level 3 Assets: Trading securities – short-term investments: Domestic equity securities $ 702 $ 702 $ — $ — Domestic debt securities 496 196 300 — Foreign equity securities 133 133 — — Foreign debt securities 68 — 68 — Money market funds held in trading accounts 47 47 — — Other trading securities 20 3 17 — Trading securities – other current assets: Domestic equity securities 14 14 — — Money market funds held in trading accounts 6 6 — — Foreign equity securities 3 3 — — Fixed income mutual funds 3 2 1 — Long-term investment 31 — — 31 Derivatives: Commodities 28 28 — — Interest rate swaps 1 — 1 — Total assets $ 1,552 $ 1,134 $ 387 $ 31 Liabilities: Trading securities – short-term investments: Other trading securities $ 1 $ — $ 1 $ — Contingent consideration 16 — — 16 Derivatives: Commodities 19 19 — — Foreign currencies 9 — 9 — Total liabilities $ 45 $ 19 $ 10 $ 16 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 460 127 333 — Foreign equity securities 189 189 — — Foreign debt securities 48 — 48 — Money market funds held in trading accounts 12 12 — — Other trading securities 19 4 15 — 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 Financial instruments consisting of cash and cash equivalents, net receivables, lines of credit and accounts payable are carried at cost, which approximates fair value, as a result of the short-term nature of the instruments. The fair value of short-term investments is measured using multiple levels. Domestic debt securities categorized as level 1 in the fair value hierarchy include debt securities held in mutual funds and ETFs. Domestic debt securities categorized as level 2 include corporate bonds, mortgage-backed securities, asset-backed securities, U.S. Treasuries and high-yield securities. Foreign debt securities categorized as level 2 include foreign government or government related securities, corporate bonds, asset-backed securities and high-yield securities with a country of origin concentration outside the U.S. During 2020, Seaboard invested $30 million in a financial services company that primarily lends to and invests in debt securities of privately held companies. This long-term investment is classified in “Other non-current assets” on the consolidated balance sheet and is valued at net asset value (“NAV”), adjusted for specific liquidity factors, resulting in level 3 classification. 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 with adjustments included in net earnings (loss). The increase in the liability from 2019 to 2020 was related to lower interest rates. 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, interest 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. Commodity derivatives are recorded at fair value, with any changes in fair value recognized as a component of cost of sales in the consolidated statements of comprehensive income. As of December 31, 2020, Seaboard had open net derivative contracts to purchase 26 million bushels of grain and 2 million pounds of hogs and open net derivative contracts to sell 56 million pounds of soybean oil. As of December 31, 2019, Seaboard had open net derivative contracts to purchase 17 million bushels of grain and net derivative contracts to sell 132 million pounds of soybean oil and 12 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 recognized 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 recognized as a component of foreign currency gains (losses), net in the consolidated statements of comprehensive income. As of December 31, 2020 and 2019, Seaboard had foreign currency exchange agreements with notional amounts of $49 million and $78 million, respectively, primarily related to the South African rand and euro. From time to time Seaboard is subject to counterparty credit risk related to its foreign currency exchange agreements should the counterparties fail to perform according to the terms of the contracts. As of December 31, 2020, Seaboard had a maximum aggregate amount of loss due to credit risk of less than $1 million with four counterparties related to its foreign currency exchange agreements. Seaboard does not hold any collateral related to these agreements. Interest Rate Swap Agreements Seaboard enters into interest rate swap agreements to manage the interest rate risk with respect to certain variable-rate long-term debt. Interest rate swap agreements are recorded at fair value with changes in value recognized as a component of interest expense, net in the consolidated statements of comprehensive income. During 2020, Seaboard entered into three interest rate swap agreements with an aggregate notional value of $400 million that mature in mid-2025. Seaboard pays fixed-rate interest payments at a weighted-average interest rate of 0.26% over the life of the agreements and receives variable-rate interest payments based on the one-month LIBOR from the counterparty without the exchange of the underlying notional amounts. Seaboard had a maximum aggregate amount of loss due to credit risk of less than $1 million with one counterparty related to interest rate swap 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 recognized 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 $3 million and $0 million as of December 31, 2020 and 2019, respectively. The following table provides the amount of gain (loss) recorded for each type of derivative and where it was recognized in the consolidated statements of comprehensive income: (Millions of dollars) 2020 2019 Commodities Cost of sales $ 55 $ (52) Foreign currencies Cost of sales 11 1 Foreign currencies Foreign currency gains (losses), net (5) (1) Equity Other investment income (loss), net — (4) Interest rate swaps Interest expense — — The following table provides the fair value of each type of derivative held and where each derivative is included in the consolidated balance sheets: Asset Derivatives Liability Derivatives December 31, December 31, December 31, December 31, (Millions of dollars) 2020 2019 2020 2019 Commodities Other current assets $ 28 $ 6 Other current liabilities $ 19 $ 4 Foreign currencies Other current assets — — Other current liabilities 9 3 Interest rate swaps Other current assets 1 — Other current liabilities — — Equity Short-term investments — — Short-term investments — — Seaboard’s commodity derivative assets and liabilities are presented in the consolidated balance sheets on a net basis, including netting the derivatives with the related margin accounts. As of December 31, 2020 and 2019, the commodity derivatives had a margin account balance of $15 million and $13 million, respectively, resulting in a net other current asset in the consolidated balance sheets of $24 million and $15 million, respectively. Seaboard’s equity derivatives are also presented on a net basis, including netting the derivatives within short-term investments. |
Stockholders' Equity and Accumu
Stockholders' Equity and Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity and Accumulated Other Comprehensive Loss | |
Stockholders' Equity and Accumulated Other Comprehensive Loss | Note 12 - Stockholders’ Equity and Accumulated Other Comprehensive Loss Seaboard’s share repurchase program expired on October 31, 2020. Under this share repurchase program, Seaboard was authorized to repurchase its common stock from time to time in open market or privately negotiated purchases, which may have been above or below the traded market price. Seaboard repurchased 4,069 and 4,369 shares of common stock during 2020 and 2019, respectively, at a total price of $13 million and $17 million, respectively. Shares repurchased were retired and became authorized and unissued shares. The components of accumulated other comprehensive loss, net of related taxes, were as follows: Cumulative Foreign Cumulative Currency Unrecognized Translation Pension (Millions of dollars) Adjustment Cost Total 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) Other comprehensive loss before reclassifications (7) (38) (45) Amounts reclassified from accumulated other comprehensive loss to net earnings — 14 (a) 14 Other comprehensive loss, net of tax (7) (24) (31) Balance December 31, 2020 $ (376) $ (95) $ (471) (a) 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. Income taxes for the cumulative unrecognized pension cost component of accumulated other comprehensive loss was recorded using a 25% effective tax rate for 2020 and 26%effective tax rate for 2019 and 2018, except for unrecognized pension cost of $34 million, $21 million and $23 million in 2020, 2019 and 2018, respectively, related to employees at certain subsidiaries for which no tax benefit was recorded. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 (Millions of dollars) Pork CT&M Marine Sugar and Alcohol Power All Other Consolidated Totals Major Products/Services Lines: Products $ 1,682 $ 3,981 $ — $ 95 $ — $ 16 $ 5,774 Transportation 8 — 1,005 — — — 1,013 Energy 219 — — 11 64 — 294 Other 32 13 — — — — 45 Segment/Consolidated Totals $ 1,941 $ 3,994 $ 1,005 $ 106 $ 64 $ 16 $ 7,126 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 Revenue from goods and services transferred to customers at a single point in time account for approximately 85% of Seaboard’s net sales. Substantially all of the sales in Seaboard’s Marine segment are recognized ratably over the transit time for each voyage as 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. 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, 2019 was recognized as revenue during the first quarter of 2020. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes | |
Income Taxes | Note 14 - Income Taxes Earnings before income taxes were as follows: Years ended December 31, (Millions of dollars) 2020 2019 ADJUSTED 2018 ADJUSTED United States $ 138 $ 180 $ (82) Foreign 148 110 93 Total earnings excluding noncontrolling interests 286 290 11 Net loss attributable to noncontrolling interests — — — Total earnings before income taxes $ 286 $ 290 $ 11 The components of total income taxes were as follows: Years ended December 31, (Millions of dollars) 2020 2019 ADJUSTED 2018 ADJUSTED Current: Federal $ (50) $ 12 $ (20) Foreign 35 39 32 State and local 2 (1) — Deferred: Federal 26 (39) 10 Foreign (3) (1) (5) State and local (7) (7) (9) Income tax expense 3 3 8 Unrealized changes in other comprehensive income (loss) (3) (4) 2 Total income taxes $ — $ (1) $ 10 Income taxes for the years ended December 31, 2020, 2019 and 2018 differed from the amounts computed by applying the statutory U.S. federal income tax rate of 21% to earnings (loss) before income taxes excluding noncontrolling interests for the following reasons: Years ended December 31, (Millions of dollars) 2020 2019 ADJUSTED 2018 ADJUSTED Computed “expected” tax expense (benefit) excluding noncontrolling interests $ 60 $ 61 $ 2 Adjustments to tax expense (benefit) attributable to: Foreign tax differences (4) 14 12 Tax-exempt income (17) (29) (13) State income taxes, net of federal benefit (3) (4) (6) Repatriation tax — — 14 Foreign entity tax status change — — 22 Federal tax credits (34) (47) (23) Federal rate reduction effect on capital loss carryback — — (3) Other 1 8 3 Total income tax expense $ 3 $ 3 $ 8 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. 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 $17 million, $15 million and $17 million during 2020, 2019 and 2018, respectively. Additionally, Seaboard invested $20 million during 2019 in 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 $22 million and $34 million of investment tax credits for 2020 and 2019, respectively. Certain of Seaboard’s foreign operations are subject to no income tax or a tax rate that is lower than the U.S. corporate tax rate. Fluctuation of earnings or losses incurred from certain foreign operations conducting business in these jurisdictions impact the mix of taxable earnings. In 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. In 2017, Seaboard recognized $112 million of tax expense related to mandatory deemed repatriated earnings associated with the Tax Cuts and Job Act (“2017 Tax Act”). Seaboard recorded additional tax expense of $16 million related primarily to repatriation and, to a lesser extent, executive compensation items in 2018. As of December 31, 2020 and 2019, Seaboard had income taxes receivable of $18 million and $14 million, respectively, primarily related to domestic tax jurisdictions, and had income taxes payable of $14 million and $16 million, respectively, primarily related to foreign tax jurisdictions. As of December 31, 2020, Seaboard has $6 million of long-term income tax liability related to the 2017 Tax Act mandatory deemed repatriated earnings that is due April 15, 2026. The decrease in the long-term income tax liability is related to a carryback of tax credits and reclass of overpayments. 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. Seaboard intends to continue permanently reinvesting the majority of these funds outside the U.S. as current plans do not demonstrate a need to repatriate them to fund Seaboard’s U.S. operations and therefore, Seaboard has not recorded deferred taxes for state or foreign withholding taxes that would result upon repatriation of these funds to the U.S. Determination of the tax that might be paid on unremitted earnings if eventually remitted is not practical. Components of the net deferred income tax liability were as follows: December 31, (Millions of dollars) 2020 2019 ADJUSTED Deferred income tax liabilities: Depreciation $ 100 $ 119 Domestic partnerships 59 65 Unrealized gain on investments 52 36 Inventory 10 15 Other 3 4 $ 224 $ 239 Deferred income tax assets: Reserves/accruals $ 74 $ 73 Net operating and capital loss carry-forwards 52 63 Tax credit carry-forwards 49 75 Other 5 4 180 215 Valuation allowance 55 68 Net deferred income tax liability $ 99 $ 92 During the fourth quarter of 2020, Seaboard elected to change its method for valuing the inventories of its Seaboard Foods LLC subsidiary from the LIFO method to the FIFO method. For tax purposes, prior to this change, Seaboard had a Tax LIFO reserve of approximately $51 million. This Tax LIFO reserve will be recognized as taxable income ratably over a four-year period beginning in 2020. A deferred tax liability has been established for the future reversal amount and is included in the inventory lines in the table above, with adjustments for the retrospective presentation. 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, 2020 $ 68 (13) $ 55 Year Ended December 31, 2019 $ 59 9 $ 68 Year Ended December 31, 2018 $ 59 — $ 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, 2020, Seaboard had state net operating loss carry-forwards of approximately $203 million and foreign net operating loss carry-forwards of approximately $111 million, a portion of which expire in varying amounts between 2021 and 2040, while others have indefinite expiration periods. As of December 31, 2020, 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 and 2015 IRS audit was finalized during the fourth quarter of 2020 with a settlement reached on an issue previously reserved as an uncertain tax position. The settlement resulted in the reversal of uncertain tax positions in the amount of approximately $6 million, and the recording of expense on IRS audit settlement of approximately $6 million. Seaboard’s 2016 U.S. income tax return is currently under IRS examination. U.S. federal tax years prior to 2013 are generally no longer subject to IRS tax assessment. In the U.S., typically the three most recent tax years are subject to IRS audits, unless an agreement is made to extend the statute of limitations for an audit in progress. 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, 2020 and 2019, Seaboard had $30 million and $31 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) 2020 2019 Beginning balance at January 1 $ 31 $ 25 Additions for uncertain tax positions of prior years 2 4 Decreases for uncertain tax positions of prior years (7) (3) Additions for uncertain tax positions of current year 5 6 Lapse of statute of limitations (1) (1) Ending balance as of December 31 $ 30 $ 31 Seaboard accrues interest related to unrecognized tax benefits and penalties in income tax expense and had approximately $8 million accrued for the payment of interest and penalties as of December 31, 2020 and 2019. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
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 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 currently 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 Act, Seaboard recognized $60 million of net revenue related to the 2018 and 2019 federal blender’s credits. Revenue was recognized as earned during 2020 based on biodiesel production and will be recognized in the same manner for years 2021 and 2022. 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 by the end of 2021, alongside its existing barge; however Seaboard continues to explore strategic alternatives for the existing barge, including selling or relocating. 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 and total assets in 2019 and 2018 have been adjusted in the Pork segment to reflect the change in inventory accounting method as described in Note 1. 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 primarily include cash and short-term investments, other current assets related to deferred compensation plans, long-term investments and other miscellaneous items. Corporate operating results represent certain operating costs not specifically allocated to individual segments and include costs related to Seaboard’s deferred compensation programs, which are offset by the effect of the mark-to-market adjustments on these investments recorded in other investment income (loss), net. Net Sales: Years ended December 31, (Millions of dollars) 2020 2019 2018 Pork $ 1,941 $ 1,851 $ 1,774 CT&M 3,994 3,672 3,428 Marine 1,005 1,061 1,057 Sugar and Alcohol 106 121 184 Power 64 117 122 All Other 16 18 18 Segment/Consolidated Totals $ 7,126 $ 6,840 $ 6,583 Operating Income (Loss): Years ended December 31, 2019 2018 (Millions of dollars) 2020 ADJUSTED ADJUSTED Pork $ 131 $ 60 $ 144 CT&M 118 62 46 Marine 21 4 25 Sugar and Alcohol 2 (16) 9 Power 3 27 21 All Other 1 2 2 Segment Totals 276 139 247 Corporate (31) (29) (11) Consolidated Totals $ 245 $ 110 $ 236 Income (Loss) from Affiliates: Years ended December 31, (Millions of dollars) 2020 2019 2018 Pork $ (9) $ (22) $ (30) CT&M (2) (5) (11) Marine 2 3 2 Sugar and Alcohol 1 1 1 Power — 3 10 Turkey (10) (21) (16) Segment/Consolidated Totals $ (18) $ (41) $ (44) Depreciation and Amortization: Years ended December 31, (Millions of dollars) 2020 2019 2018 Pork $ 106 $ 75 $ 73 CT&M 28 25 22 Marine 23 23 24 Sugar and Alcohol 7 6 6 Power 8 8 8 Segment Totals 172 137 133 Corporate — 1 1 Consolidated Totals $ 172 $ 138 $ 134 Total Assets: December 31, 2019 (Millions of dollars) 2020 ADJUSTED Pork $ 1,927 $ 1,866 CT&M 1,585 1,621 Marine 508 554 Sugar and Alcohol 153 139 Power 302 283 Turkey 265 275 All Other 6 10 Segment Totals 4,746 4,748 Corporate 1,653 1,601 Consolidated Totals $ 6,399 $ 6,349 Investments in and Advances to Affiliates: December 31, (Millions of dollars) 2020 2019 Pork $ 172 $ 183 CT&M 222 237 Marine 30 32 Sugar and Alcohol 6 5 Power 3 3 Turkey 265 275 Segment/Consolidated Totals $ 698 $ 735 Capital Expenditures: Years ended December 31, (Millions of dollars) 2020 2019 2018 Pork $ 207 $ 164 $ 86 CT&M 8 23 29 Marine 10 26 18 Sugar and Alcohol 5 15 5 Power 27 121 23 All Other 2 — — Segment Totals 259 349 161 Corporate — — 1 Consolidated Totals $ 259 $ 349 $ 162 Geographic Information Seaboard had sales in Colombia totaling $812 million, $778 million and $757 million for the years ended December 31, 2020, 2019 and 2018, respectively, representing approximately 11% of total sales for each year. Seaboard had sales in South Africa totaling $743 million, $668 million and $589 million for the years ended December 31, 2020, 2019 and 2018, respectively, representing approximately 10%, 10% and 9% 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) 2020 2019 2018 Caribbean, Central and South America $ 2,744 $ 2,792 $ 2,753 Africa 2,099 1,859 1,668 United States 1,536 1,447 1,408 Pacific Basin and Far East 435 370 381 Canada/Mexico 202 308 255 Europe 101 52 100 All other 9 12 18 Totals $ 7,126 $ 6,840 $ 6,583 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) 2020 2019 United States $ 1,053 $ 899 Singapore 155 139 Dominican Republic 109 103 Argentina 59 59 Senegal 42 43 Ivory Coast 34 33 Zambia 25 38 All other 105 117 Totals $ 1,582 $ 1,431 |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Data | |
Quarterly Financial Data | Note 16 – Quarterly Financial Data (unaudited) Adjusted Results for all quarters have been updated to reflect the impact of a change in accounting principle from the LIFO inventory method to the FIFO inventory method. See Note 1 for further discussion of this accounting principle change. Earnings Per Share (“EPS”) amounts are calculated based on thousands of dollars and; therefore, some quarters will show EPS adjustments without any adjustments to net earnings (loss) attributable to Seaboard due to rounding. 2020: 1st 2nd 3rd 4th (Millions of dollars except per share amounts) Quarter Quarter Quarter Quarter As Previously Reported Net sales $ 1,683 $ 1,808 $ 1,645 $ 1,990 Cost of sales $ 1,548 $ 1,717 $ 1,527 $ 1,768 Operating income $ 63 $ 11 $ 29 $ 134 Other investment income (loss) $ (225) $ 128 $ 56 $ 125 Net earnings (loss) attributable to Seaboard $ (103) $ (26) $ 147 $ 259 Earnings (loss) per common share $ (88.43) $ (22.35) $ 126.17 $ 222.52 Impact of Accounting Change Cost of sales $ — $ 2 $ (10) $ — Operating income $ — $ (2) $ 10 $ — Net earnings (loss) attributable to Seaboard $ — $ (1) $ 7 $ — Earnings (loss) per common share $ (0.30) $ (1.16) $ 6.41 $ — As Adjusted Cost of sales $ 1,548 $ 1,719 $ 1,517 $ 1,768 Operating income $ 63 $ 9 $ 39 $ 134 Net earnings (loss) attributable to Seaboard $ (103) $ (27) $ 154 $ 259 Earnings (loss) per common share $ (88.73) $ (23.51) $ 132.58 $ 222.52 2019: 1st 2nd 3rd 4th (Millions of dollars except per share amounts) Quarter Quarter Quarter Quarter As Previously Reported Net sales $ 1,543 $ 1,822 $ 1,663 $ 1,812 Cost of sales $ 1,493 $ 1,686 $ 1,589 $ 1,632 Operating income (loss) $ (34) $ 53 $ (6) $ 91 Other investment income (loss) $ 113 $ 37 $ 2 $ 73 Net earnings (loss) attributable to Seaboard $ 57 $ 58 $ (7) $ 175 Earnings (loss) per common share $ 48.79 $ 50.13 $ (6.00) $ 149.91 Impact of Accounting Change Cost of sales $ — $ (10) $ 2 $ 2 Operating income (loss) $ — $ 10 $ (2) $ (2) Net earnings (loss) attributable to Seaboard $ — $ 7 $ (1) $ (2) Earnings (loss) per common share $ 0.09 $ 6.13 $ (1.23) $ (1.16) As Adjusted Cost of sales $ 1,493 $ 1,676 $ 1,591 $ 1,634 Operating income (loss) $ (34) $ 63 $ (8) $ 89 Net earnings (loss) attributable to Seaboard $ 57 $ 65 $ (8) $ 173 Earnings (loss) per common share $ 48.88 $ 56.26 $ (7.23) $ 148.75 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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. 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. 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. These fluctuations result in exchange gains and losses. 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. Certain Commodity Trading and Milling (“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 mid-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, 2020, 2019 and 2018, Seaboard recognized $1 million, $(3) million and $9 million, respectively, 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 The amounts paid for interest and income taxes are as follows: Years ended December 31, (Millions of dollars) 2020 2019 2018 Interest, net of interest capitalized $ 16 $ 36 $ 43 Income taxes, net of refunds 55 31 35 The following table includes supplemental cash and non-cash information related to leases. Seaboard reports the amortization of right of use (“ROU”) assets and changes in operating lease liabilities in other liabilities, exclusive of debt in the consolidated statements of cash flows. Twelve months ended December 31, (Millions of dollars) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 142 $ 137 Operating cash flows from finance leases 4 1 Financing cash flows from finance leases 7 2 Operating ROU assets obtained in exchange for new operating lease liabilities $ 62 $ 95 Finance ROU assets obtained in exchange for new finance lease liabilities 50 46 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, and capital expenditures of $7 million included in accounts payable. |
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 CT&M segment provides extended payment terms for certain customers in certain countries due to local market conditions. The allowance for credit losses is Seaboard’s best estimate of the amount of probable credit losses using the current expected credit loss model. T his model estimates the lifetime of expected credit loss based on historical experience, current conditions and reasonable supportable forecasts. The activity within the allowance for credit losses was as follows: Balance at Transition Balance at (Millions of dollars) beginning of year Adjustment (a) Provision (b) Net deductions (c) end of year Allowance for Credit Losses: Year Ended December 31, 2020 $ 28 3 — (3) $ 28 Year Ended December 31, 2019 $ 33 — 5 (10) $ 28 Year Ended December 31, 2018 $ 29 — 7 (3) $ 33 (a) (b) (c) |
Notes Receivable | Notes Receivable Notes receivable are included in other receivables, if current, and other non-current assets, if long-term. Seaboard monitors the credit quality of notes receivable, the majority of which are from its affiliates, using the current expected credit loss model as well. For notes receivable from affiliates, Seaboard obtains and reviews financial information monthly and Seaboard representatives serve on their Board of Directors. 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, 2020 $ 17 — — $ 17 Year Ended December 31, 2019 $ 17 — — $ 17 Year Ended December 31, 2018 $ 16 1 — $ 17 |
Inventories | Inventories Grain, flour and feed inventories at the CT&M segment’s foreign milling operations are valued at the lower of weighted average cost and net realizable value (“NRV”). All other inventories are valued at the lower of FIFO cost and NRV. In determining NRV, management makes assumptions regarding estimated sales prices, estimated costs to complete and estimated disposal costs. Changes in future market prices or facts and circumstances could result in a material write down in the value of inventory or decreased future margins on the sale of inventory. During the fourth quarter of 2020, Seaboard elected to change its method of accounting for valuing hogs, fresh pork and other inventories in the Pork segment from the LIFO method to the FIFO method, with all prior periods adjusted to apply the new method. See the Change in Accounting Principle |
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. As Seaboard’s leases do not have readily determinable implicit discount rates, Seaboard adjusts its incremental borrowing rate to determine the present value of the lease payments. Seaboard determines the incremental borrowing rate for its leases by adjusting the local risk-free interest rate on its Term Loan due 2028 with a credit risk premium corresponded to Seaboard’s unreported credit rating. 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 non-lease maintenance components as a single lease component for all classes of underlying assets. |
Equity Method Investments | Equity Method Investments Investments in non-controlled affiliates where we have significant influence are accounted for by the equity method. For the CT&M segment, these investments are primarily in foreign countries, which are less developed than the U.S., and therefore, expose Seaboard to greater financial risks. At certain times when there are ongoing losses, local economies are depressed, commodity-based markets are less stable or foreign governments cause challenging business conditions, the fair value of the equity method investments is evaluated by management. The fair value of these investments is not readily determinable as almost all of these investments are not publicly traded. Management will use other methods to determine fair value such as estimated future cash flows, including assumptions on growth rates, for the business and consideration of other local business conditions as applicable. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill is assessed annually for impairment by each reporting unit at the quarter end closest to the anniversary date of the initial acquisition, or more frequently if 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, 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 qualitative assessments 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, 2018 $ 18 $ 149 $ 167 Acquisition — 1 1 Foreign currency translation — (4) (4) Balance as of December 31, 2019 18 146 164 Foreign currency translation — 4 4 Other adjustments — (1) (1) Balance as of December 31, 2020 $ 18 $ 149 $ 167 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, 2020 December 31, 2019 Customer Trade Customer Trade (Millions of dollars) relationships names Total relationships names Total Gross carrying amount $ 51 $ 28 $ 79 $ 50 $ 28 $ 78 Accumulated amortization and currency translation (16) (9) (25) (13) (7) (20) Net carrying amount $ 35 $ 19 $ 54 $ 37 $ 21 $ 58 Amortization of intangible assets was $8 million for both the years ended December 31, 2020 and 2019. Using the exchange rates in effect at year-end, estimated amortization of intangible assets as of December 31, 2020 was $8 million each for next years |
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) 2020 2019 Beginning balance $ 25 $ 23 Accretion expense 2 2 Ending balance $ 27 $ 25 |
Revenue Recognition | 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 . Seaboard does not disclose the value of unsatisfied performance obligations for: (i) contracts with an original expected length of one |
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, 2020, none |
Research and Development | Research and Development Seaboard conducts continuous research and development activities to develop new products and to improve existing products and processes. Seaboard incurred research and development expenses of $134 million, $143 million and $77 million for the years ended December 31, 2020, 2019 and 2018, respectively. |
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. Seaboard accounts for the global intangible low-taxed income (“GILTI”) provision and the base-erosion and anti-abuse tax (“BEAT”) provision taxes in the period incurred. |
Earnings Per Common Share | Earnings Per Common Share Earnings per common share are based upon the weighted average shares outstanding during the period. Basic and diluted earnings per share are the same for all periods presented. |
Accounting Standards Recently Adopted | Accounting Standards Recently Adopted On January 1, 2020, Seaboard adopted guidance which requires the use of a new current expected credit loss model in order to determine the allowance for credit losses with respect to receivables, among other financial instruments. This model estimates the lifetime of expected credit loss and replaces the existing incurred loss model. As a result of this adoption, Seaboard recorded a cumulative-effect adjustment of $3 million on January 1, 2020 that decreased retained earnings and increased the allowance for credit losses. Accounts Receivable 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 leases. 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 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies | |
Schedule of impact of change in accounting policy | The impact of the change on Seaboard’s consolidated statements of comprehensive income is summarized below: Year ended Year ended Year ended December 31, 2020 December 31, 2019 December 31, 2018 (Millions of dollars) As Computed Under LIFO As Reported Under FIFO Impact of Change to FIFO As Previously Reported Impact of Change to FIFO As Adjusted As Previously Reported Impact of Change to FIFO As Adjusted Cost of sales and operating expenses $ 6,612 $ 6,552 $ (60) $ 6,400 $ (6) $ 6,394 $ 6,060 $ (27) $ 6,033 Gross income $ 514 $ 574 $ 60 $ 440 $ 6 $ 446 $ 523 $ 27 $ 550 Operating income $ 185 $ 245 $ 60 $ 104 $ 6 $ 110 $ 209 $ 27 $ 236 Income tax expense (benefit) $ (13) $ 3 $ 16 $ 1 $ 2 $ 3 $ 1 $ 7 $ 8 Net earnings $ 239 $ 283 $ 44 $ 283 $ 4 $ 287 $ (17) $ 20 $ 3 Earnings (loss) per common share $ 205.88 $ 244.21 $ 38.33 $ 242.78 $ 3.84 $ 246.62 $ (14.61) $ 16.87 $ 2.26 The impact of the change on Seaboard’s consolidated balance sheet is summarized below: December 31, 2020 December 31, 2019 (Millions of dollars) As Computed Under LIFO As Reported Under FIFO Impact of Change to FIFO As Previously Reported Impact of Change to FIFO As Adjusted Inventories $ 1,118 $ 1,178 $ 60 $ 1,022 $ 64 $ 1,086 Deferred income taxes $ 87 $ 103 $ 16 $ 76 $ 17 $ 93 Retained earnings $ 4,243 $ 4,287 $ 44 $ 3,983 $ 47 $ 4,030 The impact of the change on Seaboard’s consolidated statements of cash flows is summarized below: Year ended Year ended Year ended December 31, 2020 December 31, 2019 December 31, 2018 As As Impact of As Impact of As Impact of Computed Reported Change to Previously Change to As Previously Change to As (Millions of dollars) Under LIFO Under FIFO FIFO Reported FIFO Adjusted Reported FIFO Adjusted Net earnings $ 239 $ 283 $ 44 $ 283 $ 4 $ 287 $ (17) $ 20 $ 3 Deferred income taxes $ (5) $ 11 $ 16 $ (55) $ 2 $ (53) $ (20) $ 7 $ (13) Inventories $ (39) $ (99) $ (60) $ (152) $ (6) $ (158) $ (34) $ (27) $ (61) |
Schedule of amounts paid for interest and income taxes | Years ended December 31, (Millions of dollars) 2020 2019 2018 Interest, net of interest capitalized $ 16 $ 36 $ 43 Income taxes, net of refunds 55 31 35 |
Summary of supplemental cash and non-cash information related to leases | Twelve months ended December 31, (Millions of dollars) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 142 $ 137 Operating cash flows from finance leases 4 1 Financing cash flows from finance leases 7 2 Operating ROU assets obtained in exchange for new operating lease liabilities $ 62 $ 95 Finance ROU assets obtained in exchange for new finance lease liabilities 50 46 |
Schedule of allowance for credit losses | Balance at Transition Balance at (Millions of dollars) beginning of year Adjustment (a) Provision (b) Net deductions (c) end of year Allowance for Credit Losses: Year Ended December 31, 2020 $ 28 3 — (3) $ 28 Year Ended December 31, 2019 $ 33 — 5 (10) $ 28 Year Ended December 31, 2018 $ 29 — 7 (3) $ 33 (a) (b) (c) |
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, 2020 $ 17 — — $ 17 Year Ended December 31, 2019 $ 17 — — $ 17 Year Ended December 31, 2018 $ 16 1 — $ 17 |
Schedule of changes in the carrying amount of goodwill | Pork CT&M (Millions of dollars) Segment Segment Total 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 Foreign currency translation — 4 4 Other adjustments — (1) (1) Balance as of December 31, 2020 $ 18 $ 149 $ 167 |
Schedule of gross carrying amount and accumulated amortization for finite-lived intangibles | December 31, 2020 December 31, 2019 Customer Trade Customer Trade (Millions of dollars) relationships names Total relationships names Total Gross carrying amount $ 51 $ 28 $ 79 $ 50 $ 28 $ 78 Accumulated amortization and currency translation (16) (9) (25) (13) (7) (20) Net carrying amount $ 35 $ 19 $ 54 $ 37 $ 21 $ 58 |
Schedule of changes in the asset retirement obligation | Years ended December 31, (Millions of dollars) 2020 2019 Beginning balance $ 25 $ 23 Accretion expense 2 2 Ending balance $ 27 $ 25 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
CLDP | |
Acquisitions | |
Schedule of allocation of purchase price | (Millions of dollars) Receivables $ 33 Inventories 55 Other current assets 7 Property, plant and equipment 12 Intangible assets 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 |
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 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments | |
Summary of the estimated fair value of short-term investments classified as trading securities | December 31, (Millions of dollars) 2020 2019 Domestic equity securities $ 702 $ 706 Domestic debt securities 496 460 Foreign equity securities 133 189 Foreign debt securities 68 48 Money market funds held in trading accounts 47 12 Other trading securities 19 19 Total trading short-term investments $ 1,465 $ 1,434 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventories | |
Summary of inventories | December 31, (Millions of dollars) 2020 2019 ADJUSTED At lower of FIFO cost and NRV: Hogs and materials $ 437 $ 387 Fresh pork and materials 46 50 Grains, oilseeds and other commodities 380 353 Biodiesel 72 43 Sugar produced and in process 24 17 Other 61 62 Total inventories at lower of FIFO cost and NRV 1,020 912 Grain, flour and feed at lower of weighted average cost and NRV 158 174 Total inventories $ 1,178 $ 1,086 |
Net Property, Plant and Equip_2
Net Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Net Property, Plant and Equipment | |
Summary of property, plant and equipment | Useful December 31, (Millions of dollars) Lives 2020 2019 Land and improvements 3 - 15 years $ 268 $ 250 Buildings and improvements 30 years 712 646 Machinery and equipment 3 - 20 years 1,367 1,360 Vessels and vehicles 3 - 18 years 158 147 Office furniture and fixtures 5 years 43 42 Contract growers 5 - 15 years 93 44 Construction in progress 389 287 3,030 2,776 Accumulated depreciation and amortization (1,448) (1,345) Net property, plant and equipment $ 1,582 $ 1,431 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases | |
Summary of finance leases in consolidated balance sheets | (Millions of dollars) 2020 2019 Finance lease right of use assets, net Property, plant and equipment, net $ 92 $ 50 Finance lease liabilities Other current liabilities 10 5 Non-current finance lease liabilities Other liabilities 78 40 |
Summary of components of lease costs | (Millions of dollars) 2020 2019 Operating lease cost $ 145 $ 138 Finance lease cost: Amortization of right of use assets 9 3 Interest on lease liabilities 4 1 Variable lease cost 8 7 Short-term lease cost 25 48 Sublease income (6) — Total lease cost $ 185 $ 197 |
Summary of maturities of lease liabilities | Operating Finance (Millions of dollars) Leases Leases 2021 $ 121 $ 14 2022 92 14 2023 58 14 2024 47 13 2025 41 12 Thereafter 117 45 Total undiscounted lease payments 476 112 Less imputed interest (47) (24) Total lease liability $ 429 $ 88 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Pork | |
Equity method investments | |
Schedule of combined condensed financial information of non-controlled, non-consolidated affiliates | Pork Segment December 31, (Millions of dollars) 2020 2019 2018 Net sales $ 1,543 $ 1,453 $ 927 Net loss $ (18) $ (43) $ (60) Total assets $ 586 $ 639 $ 623 Total liabilities $ 245 $ 277 $ 243 Total equity $ 341 $ 362 $ 380 |
CT&M | |
Equity method investments | |
Schedule of combined condensed financial information of non-controlled, non-consolidated affiliates | CT&M Segment December 31, (Millions of dollars) 2020 2019 2018 Net sales $ 2,482 $ 3,129 $ 3,238 Net loss $ (2) $ (12) $ (13) Total assets $ 1,745 $ 1,697 $ 1,914 Total liabilities $ 1,185 $ 1,075 $ 1,242 Total equity $ 560 $ 622 $ 672 |
Marine | |
Equity method investments | |
Schedule of combined condensed financial information of non-controlled, non-consolidated affiliates | Marine Segment December 31, (Millions of dollars) 2020 2019 2018 Net sales $ 66 $ 70 $ 66 Net income $ 8 $ 12 $ 11 Total assets $ 253 $ 269 $ 272 Total liabilities $ 98 $ 107 $ 133 Total equity $ 155 $ 162 $ 139 |
Sugar and Alcohol | |
Equity method investments | |
Schedule of combined condensed financial information of non-controlled, non-consolidated affiliates | Sugar and Alcohol Segment December 31, (Millions of dollars) 2020 2019 2018 Net sales $ 7 $ 10 $ 5 Net income $ 1 $ 3 $ 3 Total assets $ 14 $ 13 $ 10 Total liabilities $ 2 $ 2 $ 2 Total equity $ 12 $ 11 $ 8 |
Power | |
Equity method investments | |
Schedule of combined condensed financial information of non-controlled, non-consolidated affiliates | Power Segment December 31, (Millions of dollars) 2020 2019 2018 Net sales $ 1 $ 143 $ 138 Net income $ — $ 10 $ 33 Total assets $ 12 $ 11 $ 247 Total liabilities $ 6 $ 4 $ 139 Total equity $ 6 $ 7 $ 108 |
Turkey | |
Equity method investments | |
Schedule of combined condensed financial information of non-controlled, non-consolidated affiliates | Turkey Segment December 31, (Millions of dollars) 2020 2019 2018 Net sales $ 1,675 $ 1,612 $ 1,591 Operating loss $ (6) $ (20) $ (16) Net loss $ (20) $ (40) $ (30) Total assets $ 993 $ 1,038 $ 1,072 Total liabilities $ 481 $ 507 $ 502 Total equity $ 512 $ 531 $ 570 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt | |
Summary of long-term debt | December 31, (Millions of dollars) 2020 2019 Term Loans due 2027-2028 $ 714 $ 691 Foreign subsidiary obligations 49 102 Total debt at face value 763 793 Current maturities and unamortized discount and costs (56) (63) Long-term debt, less current maturities and unamortized discount and costs $ 707 $ 730 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Statement [Table] | |
Summary of non-cancelable commitments under contractual obligations | Years ended December 31, (Millions of dollars) 2021 2022 2023 2024 2025 Thereafter Totals Hog procurement contracts (a) $ 99 $ 95 $ 94 $ 92 $ 96 $ 107 $ 583 Grain commitments (b) 153 1 — — — — 154 Grain purchase contracts for resale (c) 916 — — — — — 916 Fuel supply contracts (d) 28 45 45 46 47 235 446 Construction commitments (e) 120 — — — — — 120 Equipment and other commitments 146 5 3 3 3 25 185 Total unrecognized non-cancelable commitments $ 1,462 $ 146 $ 142 $ 141 $ 146 $ 367 $ 2,404 (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, 2020. During 2020, 2019 and 2018, the Pork segment paid $108 million, $121 million and $77 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, 2020. (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, 2020. (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, 2020. The Marine segment also has fuel purchase contracts. (e) The Pork segment’s renewable diesel production facility, expected to be operational in early 2022, has commitments of approximately $100 million. The other amounts are for completion of the barge at the Power segment and other construction projects. |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Employee Benefits | |
Schedule of Plans' assets measured at estimated fair value | December 31, (Millions of dollars) 2020 Level 1 Level 2 Level 3 Assets: Domestic equity securities $ 93 $ 93 $ — $ — Foreign equity securities 64 64 — — Domestic fixed income mutual funds 32 32 — — Foreign fixed income mutual funds 15 15 — — Money market funds 2 2 — — Total assets $ 206 $ 206 $ — $ — 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 $ — $ — |
Schedule of assumptions used in determining pension information for plans | Years ended December 31, 2020 2019 2018 Weighted average assumptions Discount rate used to determine obligations 0.70 - 2.60 % 2.15 - 3.50 % 3.50 - 4.50 % Discount rate used to determine net periodic benefit cost 2.15 - 3.50 % 3.50 - 4.50 % 2.75 - 3.80 % Expected return on plan assets 6.25 % 6.25 % 6.25 % Long-term rate of increase in compensation levels 4.00 % 4.00 % 4.00 % |
Schedule of the funded status | December 31, 2020 2019 (Millions of dollars) Accumulated benefits exceed assets Accumulated benefits exceed assets Reconciliation of benefit obligation: Benefit obligation at beginning of year $ 348 $ 293 Service cost 9 8 Interest cost 11 12 Actuarial losses 58 50 Plan settlements (38) (9) Benefits paid (9) (9) Other — 3 Benefit obligation at end of year $ 379 $ 348 Reconciliation of fair value of plan assets: Fair value of plan assets at beginning of year $ 185 $ 156 Actual return on plan assets 27 35 Employer contributions 38 9 Plan settlements (38) (9) Benefits paid (6) (6) Fair value of plan assets at end of year $ 206 $ 185 Funded status $ (173) $ (163) |
Schedule of net periodic benefit cost of plans | Years ended December 31, (Millions of dollars) 2020 2019 2018 Components of net periodic benefit cost: Service cost $ 9 $ 8 $ 10 Interest cost 11 12 11 Expected return on plan assets (11) (10) (11) Amortization 7 5 6 Settlement loss recognized 11 2 — Net periodic benefit cost $ 27 $ 17 $ 16 |
Derivatives and Fair Value of_2
Derivatives and Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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) 2020 Level 1 Level 2 Level 3 Assets: Trading securities – short-term investments: Domestic equity securities $ 702 $ 702 $ — $ — Domestic debt securities 496 196 300 — Foreign equity securities 133 133 — — Foreign debt securities 68 — 68 — Money market funds held in trading accounts 47 47 — — Other trading securities 20 3 17 — Trading securities – other current assets: Domestic equity securities 14 14 — — Money market funds held in trading accounts 6 6 — — Foreign equity securities 3 3 — — Fixed income mutual funds 3 2 1 — Long-term investment 31 — — 31 Derivatives: Commodities 28 28 — — Interest rate swaps 1 — 1 — Total assets $ 1,552 $ 1,134 $ 387 $ 31 Liabilities: Trading securities – short-term investments: Other trading securities $ 1 $ — $ 1 $ — Contingent consideration 16 — — 16 Derivatives: Commodities 19 19 — — Foreign currencies 9 — 9 — Total liabilities $ 45 $ 19 $ 10 $ 16 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 460 127 333 — Foreign equity securities 189 189 — — Foreign debt securities 48 — 48 — Money market funds held in trading accounts 12 12 — — Other trading securities 19 4 15 — 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 |
Schedule of gain or (loss) recognized for each type of derivative and its location in the consolidated statements of comprehensive income | (Millions of dollars) 2020 2019 Commodities Cost of sales $ 55 $ (52) Foreign currencies Cost of sales 11 1 Foreign currencies Foreign currency gains (losses), net (5) (1) Equity Other investment income (loss), net — (4) Interest rate swaps Interest expense — — |
Schedule of fair value of each type of derivative and its location in the consolidated balance sheets | Asset Derivatives Liability Derivatives December 31, December 31, December 31, December 31, (Millions of dollars) 2020 2019 2020 2019 Commodities Other current assets $ 28 $ 6 Other current liabilities $ 19 $ 4 Foreign currencies Other current assets — — Other current liabilities 9 3 Interest rate swaps Other current assets 1 — Other current liabilities — — Equity Short-term investments — — Short-term investments — — |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity and Accumulated Other Comprehensive Loss | |
Schedule of components of accumulated other comprehensive loss, net of related taxes | Cumulative Foreign Cumulative Currency Unrecognized Translation Pension (Millions of dollars) Adjustment Cost Total Balance December 31, 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) Other comprehensive loss before reclassifications (7) (38) (45) Amounts reclassified from accumulated other comprehensive loss to net earnings — 14 (a) 14 Other comprehensive loss, net of tax (7) (24) (31) Balance December 31, 2020 $ (376) $ (95) $ (471) (a) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue Recognition | |
Schedule of sales disaggregated by revenue source and segment | Year Ended December 31, 2020 (Millions of dollars) Pork CT&M Marine Sugar and Alcohol Power All Other Consolidated Totals Major Products/Services Lines: Products $ 1,682 $ 3,981 $ — $ 95 $ — $ 16 $ 5,774 Transportation 8 — 1,005 — — — 1,013 Energy 219 — — 11 64 — 294 Other 32 13 — — — — 45 Segment/Consolidated Totals $ 1,941 $ 3,994 $ 1,005 $ 106 $ 64 $ 16 $ 7,126 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 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes | |
Schedule of earnings before income taxes | Years ended December 31, (Millions of dollars) 2020 2019 ADJUSTED 2018 ADJUSTED United States $ 138 $ 180 $ (82) Foreign 148 110 93 Total earnings excluding noncontrolling interests 286 290 11 Net loss attributable to noncontrolling interests — — — Total earnings before income taxes $ 286 $ 290 $ 11 |
Schedule of components of total income taxes | Years ended December 31, (Millions of dollars) 2020 2019 ADJUSTED 2018 ADJUSTED Current: Federal $ (50) $ 12 $ (20) Foreign 35 39 32 State and local 2 (1) — Deferred: Federal 26 (39) 10 Foreign (3) (1) (5) State and local (7) (7) (9) Income tax expense 3 3 8 Unrealized changes in other comprehensive income (loss) (3) (4) 2 Total income taxes $ — $ (1) $ 10 |
Schedule of reconciliation of computed expected tax expense excluding non-controlling interest to income tax expense | Years ended December 31, (Millions of dollars) 2020 2019 ADJUSTED 2018 ADJUSTED Computed “expected” tax expense (benefit) excluding noncontrolling interests $ 60 $ 61 $ 2 Adjustments to tax expense (benefit) attributable to: Foreign tax differences (4) 14 12 Tax-exempt income (17) (29) (13) State income taxes, net of federal benefit (3) (4) (6) Repatriation tax — — 14 Foreign entity tax status change — — 22 Federal tax credits (34) (47) (23) Federal rate reduction effect on capital loss carryback — — (3) Other 1 8 3 Total income tax expense $ 3 $ 3 $ 8 |
Schedule of components of the net deferred income tax liability | December 31, (Millions of dollars) 2020 2019 ADJUSTED Deferred income tax liabilities: Depreciation $ 100 $ 119 Domestic partnerships 59 65 Unrealized gain on investments 52 36 Inventory 10 15 Other 3 4 $ 224 $ 239 Deferred income tax assets: Reserves/accruals $ 74 $ 73 Net operating and capital loss carry-forwards 52 63 Tax credit carry-forwards 49 75 Other 5 4 180 215 Valuation allowance 55 68 Net deferred income tax liability $ 99 $ 92 |
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, 2020 $ 68 (13) $ 55 Year Ended December 31, 2019 $ 59 9 $ 68 Year Ended December 31, 2018 $ 59 — $ 59 |
Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits | (Millions of dollars) 2020 2019 Beginning balance at January 1 $ 31 $ 25 Additions for uncertain tax positions of prior years 2 4 Decreases for uncertain tax positions of prior years (7) (3) Additions for uncertain tax positions of current year 5 6 Lapse of statute of limitations (1) (1) Ending balance as of December 31 $ 30 $ 31 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Information | |
Summary of specific financial information related to net sales | Years ended December 31, (Millions of dollars) 2020 2019 2018 Pork $ 1,941 $ 1,851 $ 1,774 CT&M 3,994 3,672 3,428 Marine 1,005 1,061 1,057 Sugar and Alcohol 106 121 184 Power 64 117 122 All Other 16 18 18 Segment/Consolidated Totals $ 7,126 $ 6,840 $ 6,583 |
Summary of specific financial information related to operating income (loss) | Years ended December 31, 2019 2018 (Millions of dollars) 2020 ADJUSTED ADJUSTED Pork $ 131 $ 60 $ 144 CT&M 118 62 46 Marine 21 4 25 Sugar and Alcohol 2 (16) 9 Power 3 27 21 All Other 1 2 2 Segment Totals 276 139 247 Corporate (31) (29) (11) Consolidated Totals $ 245 $ 110 $ 236 |
Summary of specific financial information related to income (loss) from affiliates | Years ended December 31, (Millions of dollars) 2020 2019 2018 Pork $ (9) $ (22) $ (30) CT&M (2) (5) (11) Marine 2 3 2 Sugar and Alcohol 1 1 1 Power — 3 10 Turkey (10) (21) (16) Segment/Consolidated Totals $ (18) $ (41) $ (44) |
Summary of specific financial information related to depreciation and amortization | Years ended December 31, (Millions of dollars) 2020 2019 2018 Pork $ 106 $ 75 $ 73 CT&M 28 25 22 Marine 23 23 24 Sugar and Alcohol 7 6 6 Power 8 8 8 Segment Totals 172 137 133 Corporate — 1 1 Consolidated Totals $ 172 $ 138 $ 134 |
Summary of specific financial information related to total assets | December 31, 2019 (Millions of dollars) 2020 ADJUSTED Pork $ 1,927 $ 1,866 CT&M 1,585 1,621 Marine 508 554 Sugar and Alcohol 153 139 Power 302 283 Turkey 265 275 All Other 6 10 Segment Totals 4,746 4,748 Corporate 1,653 1,601 Consolidated Totals $ 6,399 $ 6,349 |
Summary of specific financial information related to investments in and advances to affiliates | December 31, (Millions of dollars) 2020 2019 Pork $ 172 $ 183 CT&M 222 237 Marine 30 32 Sugar and Alcohol 6 5 Power 3 3 Turkey 265 275 Segment/Consolidated Totals $ 698 $ 735 |
Summary of specific financial information related to capital expenditures | Years ended December 31, (Millions of dollars) 2020 2019 2018 Pork $ 207 $ 164 $ 86 CT&M 8 23 29 Marine 10 26 18 Sugar and Alcohol 5 15 5 Power 27 121 23 All Other 2 — — Segment Totals 259 349 161 Corporate — — 1 Consolidated Totals $ 259 $ 349 $ 162 |
Geographic summary of net sales based on the location of product delivery | Years ended December 31, (Millions of dollars) 2020 2019 2018 Caribbean, Central and South America $ 2,744 $ 2,792 $ 2,753 Africa 2,099 1,859 1,668 United States 1,536 1,447 1,408 Pacific Basin and Far East 435 370 381 Canada/Mexico 202 308 255 Europe 101 52 100 All other 9 12 18 Totals $ 7,126 $ 6,840 $ 6,583 |
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) 2020 2019 United States $ 1,053 $ 899 Singapore 155 139 Dominican Republic 109 103 Argentina 59 59 Senegal 42 43 Ivory Coast 34 33 Zambia 25 38 All other 105 117 Totals $ 1,582 $ 1,431 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Data | |
Summary of quarterly financial data | 1st 2nd 3rd 4th (Millions of dollars except per share amounts) Quarter Quarter Quarter Quarter As Previously Reported Net sales $ 1,683 $ 1,808 $ 1,645 $ 1,990 Cost of sales $ 1,548 $ 1,717 $ 1,527 $ 1,768 Operating income $ 63 $ 11 $ 29 $ 134 Other investment income (loss) $ (225) $ 128 $ 56 $ 125 Net earnings (loss) attributable to Seaboard $ (103) $ (26) $ 147 $ 259 Earnings (loss) per common share $ (88.43) $ (22.35) $ 126.17 $ 222.52 Impact of Accounting Change Cost of sales $ — $ 2 $ (10) $ — Operating income $ — $ (2) $ 10 $ — Net earnings (loss) attributable to Seaboard $ — $ (1) $ 7 $ — Earnings (loss) per common share $ (0.30) $ (1.16) $ 6.41 $ — As Adjusted Cost of sales $ 1,548 $ 1,719 $ 1,517 $ 1,768 Operating income $ 63 $ 9 $ 39 $ 134 Net earnings (loss) attributable to Seaboard $ (103) $ (27) $ 154 $ 259 Earnings (loss) per common share $ (88.73) $ (23.51) $ 132.58 $ 222.52 2019: 1st 2nd 3rd 4th (Millions of dollars except per share amounts) Quarter Quarter Quarter Quarter As Previously Reported Net sales $ 1,543 $ 1,822 $ 1,663 $ 1,812 Cost of sales $ 1,493 $ 1,686 $ 1,589 $ 1,632 Operating income (loss) $ (34) $ 53 $ (6) $ 91 Other investment income (loss) $ 113 $ 37 $ 2 $ 73 Net earnings (loss) attributable to Seaboard $ 57 $ 58 $ (7) $ 175 Earnings (loss) per common share $ 48.79 $ 50.13 $ (6.00) $ 149.91 Impact of Accounting Change Cost of sales $ — $ (10) $ 2 $ 2 Operating income (loss) $ — $ 10 $ (2) $ (2) Net earnings (loss) attributable to Seaboard $ — $ 7 $ (1) $ (2) Earnings (loss) per common share $ 0.09 $ 6.13 $ (1.23) $ (1.16) As Adjusted Cost of sales $ 1,493 $ 1,676 $ 1,591 $ 1,634 Operating income (loss) $ (34) $ 63 $ (8) $ 89 Net earnings (loss) attributable to Seaboard $ 57 $ 65 $ (8) $ 173 Earnings (loss) per common share $ 48.88 $ 56.26 $ (7.23) $ 148.75 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Operations of Seaboard Corporation and its Subsidiaries | |||||||||||||
Percentage of ownership interest held by Seaboard Flour LLC and SFC Preferred LLC | 77.00% | 77.00% | |||||||||||
Change in Accounting Principle | |||||||||||||
Percentage of LIFO inventory | 42.00% | 42.00% | |||||||||||
Retained earnings | $ 4,287 | $ 4,030 | $ 4,287 | $ 4,030 | |||||||||
Impact of the change in consolidated statements of comprehensive income | |||||||||||||
Total cost of sales and operating expenses | 1,768 | $ 1,517 | $ 1,719 | $ 1,548 | 1,634 | $ 1,591 | $ 1,676 | $ 1,493 | 6,552 | 6,394 | $ 6,033 | ||
Gross income | 574 | 446 | 550 | ||||||||||
Operating income (loss) | $ 134 | $ 39 | $ 9 | $ 63 | $ 89 | $ (8) | $ 63 | $ (34) | 245 | 110 | 236 | ||
Income tax expense (benefit) | 3 | 3 | 8 | ||||||||||
Net earnings | $ 283 | $ 287 | $ 3 | ||||||||||
Earnings per common share | $ 222.52 | $ 132.58 | $ (23.51) | $ (88.73) | $ 148.75 | $ (7.23) | $ 56.26 | $ 48.88 | $ 244.21 | $ 246.62 | $ 2.26 | ||
impact of the change on consolidated balance sheet | |||||||||||||
Inventories | $ 1,178 | $ 1,086 | $ 1,178 | $ 1,086 | |||||||||
Deferred income taxes | 103 | 93 | 103 | 93 | |||||||||
Retained earnings | 4,287 | 4,030 | 4,287 | 4,030 | |||||||||
impact of the change on consollidated statements of cash flows | |||||||||||||
Net earnings | 283 | 287 | $ 3 | ||||||||||
Deferred income taxes | 11 | (53) | (13) | ||||||||||
Inventories | (99) | (158) | (61) | ||||||||||
Goodwill and Other Intangible Assets | |||||||||||||
Impairment charges | 0 | ||||||||||||
Goodwill | |||||||||||||
Goodwill, beginning balance | $ 164 | $ 167 | 164 | 167 | |||||||||
Acquisition | 1 | ||||||||||||
Foreign currency translation | 4 | (4) | |||||||||||
Other adjustments | (1) | ||||||||||||
Goodwill, ending balance | 167 | 164 | 167 | 164 | 167 | ||||||||
Intangible assets | |||||||||||||
Gross carrying amount | 79 | 78 | 79 | 78 | |||||||||
Accumulated amortization and currency translation | (25) | (20) | (25) | (20) | |||||||||
Net carrying amount | 54 | 58 | 54 | 58 | |||||||||
Intangible assets | |||||||||||||
Amortization of intangible assets | 8 | 8 | |||||||||||
2021 | 8 | 8 | |||||||||||
2022 | 8 | 8 | |||||||||||
2023 | 8 | 8 | |||||||||||
2024 | 8 | 8 | |||||||||||
2025 | 8 | 8 | |||||||||||
Thereafter | 14 | 14 | |||||||||||
Changes in the asset retirement obligation | |||||||||||||
Beginning balance | 25 | 23 | 25 | 23 | |||||||||
Accretion expense | 2 | 2 | |||||||||||
Ending balance | 27 | 25 | $ 27 | 25 | 23 | ||||||||
Practical expedient, disclosure of performance obligation | true | ||||||||||||
Supplemental Non-Cash Transactions | |||||||||||||
Interest, net of interest capitalized | $ 16 | 36 | 43 | ||||||||||
Income taxes, net of refunds | 55 | 31 | 35 | ||||||||||
Operating cash flows from operating leases | 142 | 137 | |||||||||||
Operating cash flows from finance leases | 4 | 1 | |||||||||||
Financing cash flows from finance leases | 7 | 2 | |||||||||||
Operating ROU assets obtained in exchange for new operating lease liabilities | 62 | 95 | |||||||||||
Finance ROU assets obtained in exchange for new finance lease liabilities | 50 | 46 | |||||||||||
Capital expenditures included in accounts payable | 7 | ||||||||||||
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 | 1 | (3) | 9 | ||||||||||
As Computed Under LIFO | |||||||||||||
Change in Accounting Principle | |||||||||||||
Retained earnings | 4,243 | 4,243 | |||||||||||
Impact of the change in consolidated statements of comprehensive income | |||||||||||||
Total cost of sales and operating expenses | 6,612 | ||||||||||||
Gross income | 514 | ||||||||||||
Operating income (loss) | 185 | ||||||||||||
Income tax expense (benefit) | (13) | ||||||||||||
Net earnings | $ 239 | ||||||||||||
Earnings per common share | $ 205.88 | ||||||||||||
impact of the change on consolidated balance sheet | |||||||||||||
Inventories | 1,118 | $ 1,118 | |||||||||||
Deferred income taxes | 87 | 87 | |||||||||||
Retained earnings | 4,243 | 4,243 | |||||||||||
impact of the change on consollidated statements of cash flows | |||||||||||||
Net earnings | 239 | ||||||||||||
Deferred income taxes | (5) | ||||||||||||
Inventories | (39) | ||||||||||||
As Previously Reported | |||||||||||||
Change in Accounting Principle | |||||||||||||
Retained earnings | 3,983 | 3,983 | |||||||||||
Impact of the change in consolidated statements of comprehensive income | |||||||||||||
Total cost of sales and operating expenses | 1,768 | $ 1,527 | $ 1,717 | 1,548 | 1,632 | $ 1,589 | $ 1,686 | 1,493 | 6,400 | 6,060 | |||
Gross income | 440 | 523 | |||||||||||
Operating income (loss) | $ 134 | $ 29 | $ 11 | $ 63 | $ 91 | $ (6) | $ 53 | $ (34) | 104 | 209 | |||
Income tax expense (benefit) | 1 | 1 | |||||||||||
Net earnings | $ 283 | $ (17) | |||||||||||
Earnings per common share | $ 222.52 | $ 126.17 | $ (22.35) | $ (88.43) | $ 149.91 | $ (6) | $ 50.13 | $ 48.79 | $ 242.78 | $ (14.61) | |||
impact of the change on consolidated balance sheet | |||||||||||||
Inventories | $ 1,022 | $ 1,022 | |||||||||||
Deferred income taxes | 76 | 76 | |||||||||||
Retained earnings | 3,983 | 3,983 | |||||||||||
impact of the change on consollidated statements of cash flows | |||||||||||||
Net earnings | 283 | $ (17) | |||||||||||
Deferred income taxes | (55) | (20) | |||||||||||
Inventories | (152) | (34) | |||||||||||
Impact of Change to FIFO | |||||||||||||
Change in Accounting Principle | |||||||||||||
Retained earnings | $ 44 | 47 | 44 | 47 | $ 23 | ||||||||
Impact of the change in consolidated statements of comprehensive income | |||||||||||||
Total cost of sales and operating expenses | (60) | (6) | (27) | ||||||||||
Gross income | 60 | 6 | 27 | ||||||||||
Operating income (loss) | 60 | 6 | 27 | ||||||||||
Income tax expense (benefit) | 16 | 2 | 7 | ||||||||||
Net earnings | $ 44 | $ 4 | $ 20 | ||||||||||
Earnings per common share | $ 38.33 | $ 3.84 | $ 16.87 | ||||||||||
impact of the change on consolidated balance sheet | |||||||||||||
Inventories | 60 | 64 | $ 60 | $ 64 | |||||||||
Deferred income taxes | 16 | 17 | 16 | 17 | |||||||||
Retained earnings | 44 | 47 | 44 | 47 | $ 23 | ||||||||
impact of the change on consollidated statements of cash flows | |||||||||||||
Net earnings | 44 | 4 | $ 20 | ||||||||||
Deferred income taxes | 16 | 2 | 7 | ||||||||||
Inventories | $ (60) | (6) | (27) | ||||||||||
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 | |||||||||||||
Impact of the change in consolidated statements of comprehensive income | |||||||||||||
Operating income (loss) | $ 131 | 60 | 144 | ||||||||||
Goodwill | |||||||||||||
Goodwill, beginning balance | $ 18 | $ 18 | 18 | 18 | |||||||||
Goodwill, ending balance | 18 | 18 | 18 | 18 | 18 | ||||||||
CT&M | |||||||||||||
Impact of the change in consolidated statements of comprehensive income | |||||||||||||
Operating income (loss) | 118 | 62 | 46 | ||||||||||
Goodwill | |||||||||||||
Goodwill, beginning balance | 146 | 149 | 146 | 149 | |||||||||
Acquisition | 1 | ||||||||||||
Foreign currency translation | 4 | (4) | |||||||||||
Other adjustments | (1) | ||||||||||||
Goodwill, ending balance | 149 | 146 | $ 149 | 146 | 149 | ||||||||
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 | 51 | 50 | $ 51 | 50 | |||||||||
Accumulated amortization and currency translation | (16) | (13) | (16) | (13) | |||||||||
Net carrying amount | 35 | 37 | 35 | 37 | |||||||||
Trade names | |||||||||||||
Intangible assets | |||||||||||||
Gross carrying amount | 28 | 28 | 28 | 28 | |||||||||
Accumulated amortization and currency translation | (9) | (7) | (9) | (7) | |||||||||
Net carrying amount | 19 | 21 | 19 | 21 | |||||||||
Allowance for Credit Losses | |||||||||||||
Movement in valuation and qualifying accounts | |||||||||||||
Balance at beginning of year | 28 | 33 | 28 | 33 | 29 | ||||||||
Provision | 5 | 7 | |||||||||||
Net deductions | (3) | (10) | (3) | ||||||||||
Balance at end of year | 28 | 28 | 28 | 28 | 33 | ||||||||
Allowance for Notes Receivable | |||||||||||||
Movement in valuation and qualifying accounts | |||||||||||||
Balance at beginning of year | $ 17 | $ 17 | 17 | 17 | 16 | ||||||||
Provision | 1 | ||||||||||||
Balance at end of year | 17 | 17 | 17 | 17 | $ 17 | ||||||||
Cumulative Effect, Period of Adoption, Adjustment | Allowance for Credit Losses | |||||||||||||
Movement in valuation and qualifying accounts | |||||||||||||
Transition Adjustment | 3 | ||||||||||||
Accounts Receivable | Geographic concentration | Foreign Country | |||||||||||||
Accounts Receivable | |||||||||||||
Foreign receivables, excluding receivables due from affiliates | $ 410 | $ 390 | $ 410 | $ 390 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Recently Issued Accounting Standards (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2017USD ($) | |
Research and Development | |||||
Research and development expense | $ 134 | $ 143 | $ 77 | ||
Recently issued accounting standards | |||||
ROU assets | 390 | 446 | $ 460 | ||
Lease liabilities | 429 | $ 498 | |||
Total equity | 3,828 | 3,601 | 3,372 | $ 3,408 | |
Cumulative Effect, Period of Adoption, Adjustment | |||||
Recently issued accounting standards | |||||
Total equity | (3) | ||||
Accumulated Other Comprehensive Loss | |||||
Recently issued accounting standards | |||||
Total equity | (471) | (440) | (410) | (354) | |
Accumulated Other Comprehensive Loss | Cumulative Effect, Period of Adoption, Adjustment | |||||
Recently issued accounting standards | |||||
Total equity | (7) | ||||
Retained Earnings | |||||
Recently issued accounting standards | |||||
Total equity | $ 4,287 | 4,030 | $ 3,770 | 3,750 | |
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | |||||
Recently issued accounting standards | |||||
Total equity | $ (3) | $ 7 | |||
Designated as hedge | |||||
Derivative commodity instruments | |||||
Number of derivative agreements | item | 0 |
Acquisitions (Details)
Acquisitions (Details) $ in Millions | Oct. 28, 2019USD ($) | Jan. 05, 2018USD ($)facility | Nov. 21, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Oct. 27, 2019 |
Acquisitions | |||||||
Goodwill | $ 167 | $ 164 | $ 167 | ||||
Cash paid, net of cash acquired | 27 | 7 | 264 | ||||
Pork | |||||||
Acquisitions | |||||||
Goodwill | 18 | 18 | 18 | ||||
Pork | Hitch Pork Producers, Inc. | |||||||
Acquisitions | |||||||
Inventories | $ 4 | ||||||
Property, plant and equipment | 23 | ||||||
Cash paid, net of cash acquired | $ 27 | ||||||
CT&M | |||||||
Acquisitions | |||||||
Goodwill | $ 149 | $ 146 | $ 149 | ||||
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 | ||||||
Intangible assets | 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 | ||||||
CT&M | CLDP | affiliate | |||||||
Acquisitions | |||||||
Fair value of pre-existing affiliate trade receivables | $ 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 | ||||||
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments | |||
Fair Value | $ 1,465 | $ 1,434 | |
Change in unrealized gains (losses) on trading securities | 74 | 176 | $ (110) |
Domestic equity securities | |||
Investments | |||
Fair Value | 702 | 706 | |
Domestic debt securities | |||
Investments | |||
Fair Value | 496 | 460 | |
Foreign equity securities | |||
Investments | |||
Fair Value | 133 | 189 | |
Foreign equity securities | Denominated in foreign currencies | |||
Investments | |||
Fair Value | 1 | 62 | |
Foreign equity securities | Denominated in Euros | |||
Investments | |||
Fair Value | 32 | ||
Foreign equity securities | Denominated in Japanese Yen | |||
Investments | |||
Fair Value | 12 | ||
Foreign equity securities | Denominated in British pounds | |||
Investments | |||
Fair Value | 8 | ||
Foreign equity securities | Denominated in other foreign currencies | |||
Investments | |||
Fair Value | 10 | ||
Foreign debt securities | |||
Investments | |||
Fair Value | 68 | 48 | |
Foreign debt securities | Denominated in Euros | |||
Investments | |||
Fair Value | 28 | 13 | |
Money market funds held in trading accounts | |||
Investments | |||
Fair Value | 47 | 12 | |
Other trading securities | |||
Investments | |||
Fair Value | $ 19 | $ 19 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
At lower of FIFO cost and NRV: | ||
Hogs and materials | $ 437 | $ 387 |
Fresh pork and materials | 46 | 50 |
Grains, oilseeds and other commodities | 380 | 353 |
Biodiesel | 72 | 43 |
Sugar produced and in process | 24 | 17 |
Other | 61 | 62 |
Total inventories at lower of FIFO cost and NRV | 1,020 | 912 |
Grain, flour and feed at lower of weighted average cost and NRV | 158 | 174 |
Total inventories | $ 1,178 | $ 1,086 |
Net Property, Plant and Equip_3
Net Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, plant and equipment | ||
Gross property, plant and equipment | $ 3,030 | $ 2,776 |
Accumulated depreciation and amortization | (1,448) | (1,345) |
Net property, plant and equipment | 1,582 | 1,431 |
ROU assets | 92 | 50 |
Accumulated amortization | $ 1,448 | 1,345 |
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 | $ 268 | $ 250 |
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 | $ 712 | $ 646 |
Machinery and equipment | ||
Property, plant and equipment | ||
Gross property, plant and equipment | $ 1,367 | $ 1,360 |
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 | $ 158 | $ 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 | $ 43 | $ 42 |
Contract growers | ||
Property, plant and equipment | ||
Gross property, plant and equipment | $ 93 | $ 44 |
Contract growers | Minimum | ||
Property, plant and equipment | ||
Useful Lives | 5 years | 5 years |
Contract growers | Maximum | ||
Property, plant and equipment | ||
Useful Lives | 15 years | 15 years |
Construction in progress | ||
Property, plant and equipment | ||
Gross property, plant and equipment | $ 389 | $ 287 |
Capitalized interest | 10 | 7 |
Contract growers, land and buildings | ||
Property, plant and equipment | ||
Accumulated depreciation and amortization | (12) | (3) |
ROU assets | 92 | 50 |
Accumulated amortization | $ 12 | $ 3 |
Leases - ROU Assets (Details)
Leases - ROU Assets (Details) | Dec. 31, 2020 |
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) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Leases | ||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | |
Finance lease right of use assets, net | $ 92 | $ 50 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | |
Finance lease liabilities | $ 10 | 5 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | |
Non-current finance lease liabilities | $ 78 | $ 40 |
Leases - Lease costs (Details)
Leases - Lease costs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lease cost | ||
Operating lease cost | $ 145 | $ 138 |
Finance lease cost: | ||
Amortization of right of use assets | 9 | 3 |
Interest on lease liabilities | 4 | 1 |
Variable lease cost | 8 | 7 |
Short-term lease cost | 25 | 48 |
Sublease income | (6) | |
Total lease cost | $ 185 | $ 197 |
Leases - Maturities (Details)
Leases - Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Jan. 01, 2019 |
Maturities of operating lease liabilities | ||
2021 | $ 121 | |
2022 | 92 | |
2023 | 58 | |
2024 | 47 | |
2025 | 41 | |
Thereafter | 117 | |
Total undiscounted lease payments | 476 | |
Less imputed interest | (47) | |
Total operating lease liability | 429 | $ 498 |
Maturities of finance lease liabilities | ||
2021 | 14 | |
2022 | 14 | |
2023 | 14 | |
2024 | 13 | |
2025 | 12 | |
Thereafter | 45 | |
Total undiscounted lease payments | 112 | |
Less imputed interest | (24) | |
Total finance lease liability | $ 88 | |
Weighted average discount rate for operating leases | 6.44% | |
Weighted average discount rate for financing leases | 5.18% |
Leases - Additional information
Leases - Additional information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Property, plant and equipment | |
Rental expense for operating leases | $ 46 |
Pork | Contract grower agreements | |
Property, plant and equipment | |
Amount paid under the agreement | 48 |
Marine and CT&M | Vessel, time and voyage-charters | |
Property, plant and equipment | |
Amount paid under the contract | $ 111 |
Equity Method Investments (Deta
Equity Method Investments (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 28, 2019USD ($) | Dec. 31, 2020USD ($) | Sep. 26, 2020USD ($) | Jun. 27, 2020USD ($) | Mar. 28, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 28, 2019USD ($) | Jun. 29, 2019USD ($) | Mar. 30, 2019USD ($) | Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Equity method investments | |||||||||||||
Dividends received from affiliates | $ 20 | $ 10 | $ 23 | ||||||||||
Investments in and advances to affiliates | $ 698 | $ 735 | 698 | 735 | |||||||||
Income tax expense | 3 | 3 | 8 | ||||||||||
Proceeds from the sale of controlling interest in a subsidiary | 24 | ||||||||||||
Income (Loss) from affiliates | (18) | (41) | (44) | ||||||||||
Foreign currency translation adjustment | (7) | (20) | (53) | ||||||||||
Receivables due from affiliates | 111 | 109 | 111 | 109 | |||||||||
Combined condensed financial information of the non-controlled, non-consolidated affiliates | |||||||||||||
Operating income (loss) | 134 | $ 39 | $ 9 | $ 63 | 89 | $ (8) | $ 63 | $ (34) | 245 | 110 | 236 | ||
Net income (loss) | 283 | 287 | 3 | ||||||||||
Total assets | 6,399 | 6,349 | 6,399 | 6,349 | |||||||||
Total equity | 3,828 | 3,601 | 3,828 | 3,601 | 3,372 | $ 3,408 | |||||||
Pork | |||||||||||||
Equity method investments | |||||||||||||
Investments in and advances to affiliates | 172 | 183 | 172 | 183 | |||||||||
Income (Loss) from affiliates | (9) | (22) | (30) | ||||||||||
Combined condensed financial information of the non-controlled, non-consolidated affiliates | |||||||||||||
Operating income (loss) | 131 | 60 | 144 | ||||||||||
Total assets | 1,927 | 1,866 | 1,927 | 1,866 | |||||||||
CT&M | |||||||||||||
Equity method investments | |||||||||||||
Investments in and advances to affiliates | 222 | 237 | 222 | 237 | |||||||||
Income (Loss) from affiliates | (2) | (5) | (11) | ||||||||||
Carrying value of investment in affiliates over (under) entity's share of affiliates' book value | 54 | 54 | |||||||||||
Combined condensed financial information of the non-controlled, non-consolidated affiliates | |||||||||||||
Operating income (loss) | 118 | 62 | 46 | ||||||||||
Total assets | 1,585 | 1,621 | 1,585 | 1,621 | |||||||||
Marine | |||||||||||||
Equity method investments | |||||||||||||
Investments in and advances to affiliates | 30 | 32 | 30 | 32 | |||||||||
Income (Loss) from affiliates | 2 | 3 | 2 | ||||||||||
Carrying value of investment in affiliates over (under) entity's share of affiliates' book value | (29) | (29) | |||||||||||
Combined condensed financial information of the non-controlled, non-consolidated affiliates | |||||||||||||
Operating income (loss) | 21 | 4 | 25 | ||||||||||
Total assets | 508 | 554 | 508 | 554 | |||||||||
Sugar and Alcohol | |||||||||||||
Equity method investments | |||||||||||||
Investments in and advances to affiliates | 6 | 5 | 6 | 5 | |||||||||
Income (Loss) from affiliates | 1 | 1 | 1 | ||||||||||
Combined condensed financial information of the non-controlled, non-consolidated affiliates | |||||||||||||
Operating income (loss) | 2 | (16) | 9 | ||||||||||
Total assets | 153 | 139 | 153 | 139 | |||||||||
Turkey | |||||||||||||
Equity method investments | |||||||||||||
Investments in and advances to affiliates | 265 | 275 | 265 | 275 | |||||||||
Income (Loss) from affiliates | (10) | (21) | (16) | ||||||||||
Combined condensed financial information of the non-controlled, non-consolidated affiliates | |||||||||||||
Total assets | 265 | 275 | 265 | 275 | |||||||||
Power | |||||||||||||
Equity method investments | |||||||||||||
Investments in and advances to affiliates | 3 | 3 | 3 | 3 | |||||||||
Income (Loss) from affiliates | 3 | 10 | |||||||||||
Combined condensed financial information of the non-controlled, non-consolidated affiliates | |||||||||||||
Operating income (loss) | 3 | 27 | 21 | ||||||||||
Total assets | 302 | 283 | 302 | 283 | |||||||||
Equity method investment in non-consolidated affiliates | Pork | |||||||||||||
Combined condensed financial information of the non-controlled, non-consolidated affiliates | |||||||||||||
Net sales | 1,543 | 1,453 | 927 | ||||||||||
Net income (loss) | (18) | (43) | (60) | ||||||||||
Total assets | 586 | 639 | 586 | 639 | 623 | ||||||||
Total liabilities | 245 | 277 | 245 | 277 | 243 | ||||||||
Total equity | 341 | 362 | 341 | 362 | 380 | ||||||||
Equity method investment in non-consolidated affiliates | CT&M | |||||||||||||
Combined condensed financial information of the non-controlled, non-consolidated affiliates | |||||||||||||
Net sales | 2,482 | 3,129 | 3,238 | ||||||||||
Net income (loss) | (2) | (12) | (13) | ||||||||||
Total assets | 1,745 | 1,697 | 1,745 | 1,697 | 1,914 | ||||||||
Total liabilities | 1,185 | 1,075 | 1,185 | 1,075 | 1,242 | ||||||||
Total equity | 560 | 622 | 560 | 622 | 672 | ||||||||
Equity method investment in non-consolidated affiliates | Marine | |||||||||||||
Combined condensed financial information of the non-controlled, non-consolidated affiliates | |||||||||||||
Net sales | 66 | 70 | 66 | ||||||||||
Net income (loss) | 8 | 12 | 11 | ||||||||||
Total assets | 253 | 269 | 253 | 269 | 272 | ||||||||
Total liabilities | 98 | 107 | 98 | 107 | 133 | ||||||||
Total equity | 155 | 162 | 155 | 162 | 139 | ||||||||
Equity method investment in non-consolidated affiliates | Sugar and Alcohol | |||||||||||||
Combined condensed financial information of the non-controlled, non-consolidated affiliates | |||||||||||||
Net sales | 7 | 10 | 5 | ||||||||||
Net income (loss) | 1 | 3 | 3 | ||||||||||
Total assets | 14 | 13 | 14 | 13 | 10 | ||||||||
Total liabilities | 2 | 2 | 2 | 2 | 2 | ||||||||
Total equity | 12 | 11 | 12 | 11 | 8 | ||||||||
Equity method investment in non-consolidated affiliates | Turkey | |||||||||||||
Combined condensed financial information of the non-controlled, non-consolidated affiliates | |||||||||||||
Net sales | 1,675 | 1,612 | 1,591 | ||||||||||
Operating income (loss) | (6) | (20) | (16) | ||||||||||
Net income (loss) | (20) | (40) | (30) | ||||||||||
Total assets | 993 | 1,038 | 993 | 1,038 | 1,072 | ||||||||
Total liabilities | 481 | 507 | 481 | 507 | 502 | ||||||||
Total equity | 512 | 531 | 512 | 531 | 570 | ||||||||
Equity method investment in non-consolidated affiliates | Power | |||||||||||||
Combined condensed financial information of the non-controlled, non-consolidated affiliates | |||||||||||||
Net sales | 1 | 143 | 138 | ||||||||||
Net income (loss) | 10 | 33 | |||||||||||
Total assets | 12 | 11 | 12 | 11 | 247 | ||||||||
Total liabilities | 6 | 4 | 6 | 4 | 139 | ||||||||
Total equity | $ 6 | $ 7 | $ 6 | $ 7 | $ 108 | ||||||||
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 | ||||||||||||
United States | |||||||||||||
Equity method investments | |||||||||||||
Percentage of ownership | 40.00% | 40.00% | |||||||||||
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% | 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% | 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% | 50.00% | |||||||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | Kenya | Minimum | CT&M | |||||||||||||
Equity method investments | |||||||||||||
Percentage of ownership | 46.87% | 46.87% | |||||||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | Kenya | Maximum | CT&M | |||||||||||||
Equity method investments | |||||||||||||
Percentage of ownership | 49.00% | 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% | 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% | 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% | 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% | 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% | 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% | 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% | 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% | 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% | 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% | 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% | 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% | 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% | 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% | 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% | 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% | 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% | 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% | 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% | 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% | 25.00% | |||||||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | Australia | Minimum | CT&M | |||||||||||||
Equity method investments | |||||||||||||
Percentage of ownership | 30.00% | 30.00% | |||||||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | Australia | Maximum | CT&M | |||||||||||||
Equity method investments | |||||||||||||
Percentage of ownership | 33.33% | 33.33% | |||||||||||
Businesses conducting flour, maize and feed milling and poultry production and processing | Canada | CT&M | |||||||||||||
Equity method investments | |||||||||||||
Percentage of ownership | 45.00% | 45.00% | |||||||||||
Cargo terminal business | Jamaica | Marine | |||||||||||||
Equity method investments | |||||||||||||
Percentage of ownership | 21.00% | 21.00% | |||||||||||
Cargo terminal business | Haiti | Marine | |||||||||||||
Equity method investments | |||||||||||||
Percentage of ownership | 18.00% | 18.00% | |||||||||||
Sugar related business one | Argentina | Sugar and Alcohol | |||||||||||||
Equity method investments | |||||||||||||
Percentage of ownership | 48.00% | 48.00% | |||||||||||
Sugar related business two | Argentina | Sugar and Alcohol | |||||||||||||
Equity method investments | |||||||||||||
Percentage of ownership | 50.00% | 50.00% | |||||||||||
Butterball | Turkey | |||||||||||||
Equity method investments | |||||||||||||
Percentage of ownership | 50.00% | 50.00% | |||||||||||
Investee's intangible assets for trade name | $ 111 | $ 111 | |||||||||||
Investee's intangible assets for goodwill | $ 66 | $ 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 | Detachable warrants | Turkey | |||||||||||||
Equity method investments | |||||||||||||
Additional equity interest that can be acquired upon exercise of warrants (as a percent) | 5.00% | 5.00% | |||||||||||
Economic interest (as a percent) | 52.50% | 52.50% | |||||||||||
Grain trading and flour milling business | Mauritania | CT&M | |||||||||||||
Equity method investments | |||||||||||||
Ownership interest acquired | 50.00% | ||||||||||||
Total consideration | $ 16 | ||||||||||||
Daily's | Pork | |||||||||||||
Equity method investments | |||||||||||||
Percentage of ownership | 50.00% | 50.00% | |||||||||||
Energy related business one | Dominican Republic | Power | |||||||||||||
Equity method investments | |||||||||||||
Percentage of ownership | 45.00% | 45.00% | |||||||||||
Energy related business two | Dominican Republic | Power | |||||||||||||
Equity method investments | |||||||||||||
Percentage of ownership | 50.00% | 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 | $ 6 | |||||||||||
Gain (loss) on sale of affiliate | $ 0 | ||||||||||||
Percentage of ownership interest sold | 29.90% | 29.90% |
Lines of Credit and Long-Term D
Lines of Credit and Long-Term Debt - Notes payable and bank lines (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Notes Payable and Long Term Debt | ||
Lines of credit | $ 222 | $ 246 |
Committed bank lines | ||
Notes Payable and Long Term Debt | ||
Number of revolving credit agreements | 2 | |
Lines of credit | $ 0 | 0 |
Committed bank lines | Minimum | ||
Notes Payable and Long Term Debt | ||
Unused commitment fee | 0.15% | |
Committed bank lines | Maximum | ||
Notes Payable and Long Term Debt | ||
Unused commitment fee | 0.20% | |
Committed Line Of Credit Due May 20, 2021 | ||
Notes Payable and Long Term Debt | ||
Maximum capacity | $ 250 | |
Additional borrowing capacity | 100 | |
Committed Line Of Credit Due September 30, 2021 | ||
Notes Payable and Long Term Debt | ||
Lines of credit | 100 | |
Uncommitted bank lines | ||
Notes Payable and Long Term Debt | ||
Lines of credit | $ 222 | $ 246 |
Weighted average interest rate (as a percent) | 3.89% | 5.79% |
Uncommitted bank lines | Denominated in foreign currencies | ||
Notes Payable and Long Term Debt | ||
Lines of credit | $ 142 | |
Uncommitted bank lines | Foreign subsidiaries | Denominated in South African Rand | ||
Notes Payable and Long Term Debt | ||
Lines of credit | 106 | |
Uncommitted bank lines | Foreign subsidiaries | Denominated in Canadian dollars | ||
Notes Payable and Long Term Debt | ||
Lines of credit | 25 | |
Uncommitted bank lines | Foreign subsidiaries | Denominated in Zambian kwacha | ||
Notes Payable and Long Term Debt | ||
Lines of credit | $ 9 |
Lines of Credit and Long-Term_2
Lines of Credit and Long-Term Debt - Summary of long-term debt (Details) - USD ($) $ in Millions | Sep. 25, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 24, 2018 |
Notes Payable and Long Term Debt | ||||
Total long-term debt at face value | $ 763 | $ 793 | ||
Current maturities of long-term debt and unamortized discount | (56) | (63) | ||
Long-term debt, less current maturities | 707 | 730 | ||
Term Loans Due 2027-2028 | ||||
Notes Payable and Long Term Debt | ||||
Total long-term debt at face value | 714 | $ 691 | ||
Term Loan Due 2027 | ||||
Notes Payable and Long Term Debt | ||||
Face amount | $ 30 | |||
Interest rate (as a percent) | 1.00% | |||
Term loan due 2028 | ||||
Notes Payable and Long Term Debt | ||||
Face amount | $ 700 | |||
Proceeds from issuance of debt | $ 220 | |||
Effective interest rate (as a percent) | 1.77% | 3.42% | ||
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 | $ 49 | $ 102 | ||
Foreign subsidiary obligations | Denominated in Euros | ||||
Notes Payable and Long Term Debt | ||||
Total long-term debt at face value | $ 46 |
Lines of Credit and Long-Term_3
Lines of Credit and Long-Term Debt - Maturities and foreign subsidiary obligations (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Maturities of long-term debt | ||
2021 | $ 55 | |
2022 | 8 | |
2023 | 7 | |
2024 | 7 | |
2025 | 7 | |
Thereafter | $ 679 | |
Foreign subsidiary obligations | ||
Notes Payable and Long Term Debt | ||
Weighted average interest rate (as a percent) | 3.51% | 3.50% |
Commitments and Contingencies -
Commitments and Contingencies - Numbers of Items (Details) $ in Millions | Jun. 28, 2018itemplaintiff | May 15, 2018USD ($) | Apr. 27, 2018USD ($) | Mar. 20, 2018USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Contingencies | ||||||
Assets | $ 6,399 | $ 6,349 | ||||
Pork Product Purchasers | Pending Litigation | ||||||
Contingencies | ||||||
Number of plaintiffs | plaintiff | 12 | |||||
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 | |||||
Total 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 | |||||
Total liabilities | 29 | |||||
Assets | $ 15 |
Commitments and Contingencies_2
Commitments and Contingencies - Commitments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments | |||||||||||
2021 | $ 1,462 | $ 1,462 | |||||||||
2022 | 146 | 146 | |||||||||
2023 | 142 | 142 | |||||||||
2024 | 141 | 141 | |||||||||
2025 | 146 | 146 | |||||||||
Thereafter | 367 | 367 | |||||||||
Totals | 2,404 | 2,404 | |||||||||
Conditional and Unconditional Commitments | |||||||||||
Total cost of sales and operating expenses | 1,768 | $ 1,517 | $ 1,719 | $ 1,548 | $ 1,634 | $ 1,591 | $ 1,676 | $ 1,493 | 6,552 | $ 6,394 | $ 6,033 |
Hog procurement contracts | |||||||||||
Commitments | |||||||||||
2021 | 99 | 99 | |||||||||
2022 | 95 | 95 | |||||||||
2023 | 94 | 94 | |||||||||
2024 | 92 | 92 | |||||||||
2025 | 96 | 96 | |||||||||
Thereafter | 107 | 107 | |||||||||
Totals | 583 | 583 | |||||||||
Hog procurement contracts | Pork | |||||||||||
Conditional and Unconditional Commitments | |||||||||||
Amount paid under the contract | 108 | $ 121 | $ 77 | ||||||||
Grain commitments | |||||||||||
Commitments | |||||||||||
2021 | 153 | 153 | |||||||||
2022 | 1 | 1 | |||||||||
Totals | 154 | 154 | |||||||||
Grain purchase contracts for resale | |||||||||||
Commitments | |||||||||||
2021 | 916 | 916 | |||||||||
Totals | 916 | 916 | |||||||||
Fuel supply contract | |||||||||||
Commitments | |||||||||||
2021 | 28 | 28 | |||||||||
2022 | 45 | 45 | |||||||||
2023 | 45 | 45 | |||||||||
2024 | 46 | 46 | |||||||||
2025 | 47 | 47 | |||||||||
Thereafter | 235 | 235 | |||||||||
Totals | 446 | 446 | |||||||||
Construction commitments | |||||||||||
Commitments | |||||||||||
2021 | 120 | 120 | |||||||||
Totals | 120 | 120 | |||||||||
Equipment and other commitments | |||||||||||
Commitments | |||||||||||
2021 | 146 | 146 | |||||||||
2022 | 5 | 5 | |||||||||
2023 | 3 | 3 | |||||||||
2024 | 3 | 3 | |||||||||
2025 | 3 | 3 | |||||||||
Thereafter | 25 | 25 | |||||||||
Totals | 185 | 185 | |||||||||
Renewable diesel production facility | Pork | |||||||||||
Commitments | |||||||||||
Totals | $ 100 | $ 100 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Target allocation and pension plan asset allocation | ||||||
Contributions made to defined benefit pension plans | $ 38 | $ 9 | ||||
Estimated fair value of plan assets | 206 | 156 | $ 156 | $ 206 | $ 185 | $ 156 |
Reconciliation of benefit obligation: | ||||||
Benefit obligation at beginning of year | 348 | 293 | ||||
Service cost | 9 | 8 | 10 | |||
Interest cost | 11 | 12 | 11 | |||
Actuarial losses | 58 | 50 | ||||
Plan settlements | (38) | (9) | ||||
Benefits paid | (9) | (9) | ||||
Other | 3 | |||||
Benefit obligation at end of year | 379 | 348 | 293 | |||
Reconciliation of fair value of plan assets: | ||||||
Fair value of plan assets at beginning of year | 185 | 156 | ||||
Actual return on plan assets | 27 | 35 | ||||
Employer contributions | 38 | 9 | ||||
Plan settlements | (38) | (9) | ||||
Benefits paid | (6) | (6) | ||||
Fair value of plan assets at end of year | 206 | 185 | 156 | |||
Funded status | (173) | (163) | ||||
Expected future benefit payments | ||||||
2021 | 10 | |||||
2022 | 30 | |||||
2023 | 19 | |||||
2024 | 22 | |||||
2025 | 14 | |||||
Next five years after year five | 77 | |||||
Components of net periodic benefit cost: | ||||||
Service cost | 9 | 8 | 10 | |||
Interest cost | 11 | 12 | 11 | |||
Expected return on plan assets | (11) | (10) | (11) | |||
Amortization | 7 | 5 | 6 | |||
Settlement loss recognized | 11 | 2 | ||||
Net periodic benefit cost | 27 | 17 | 16 | |||
Amounts not reflected in net periodic benefit cost and included in accumulated other comprehensive loss (AOCL) before taxes | ||||||
Total accumulated other comprehensive loss | 112 | 88 | ||||
Other disclosures | ||||||
Pension distribution | 32 | |||||
Deferred compensation paid | 32 | |||||
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 | ||||
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 | $ 185 | $ 185 | 206 | 185 | ||
Weighted-average assumptions | ||||||
Expected return on plan assets (as a percent) | 6.25% | 6.25% | 6.25% | |||
Long-term rate of increase in compensation levels (as a percent) | 4.00% | 4.00% | 4.00% | |||
Reconciliation of fair value of plan assets: | ||||||
Fair value of plan assets at beginning of year | $ 185 | |||||
Fair value of plan assets at end of year | 206 | $ 185 | ||||
Funded status | (43) | (53) | ||||
Expected future benefit payments | ||||||
Accumulated benefit obligation | 157 | 205 | ||||
Defined benefit pension plan | Level 1 | ||||||
Target allocation and pension plan asset allocation | ||||||
Estimated fair value of plan assets | 185 | 185 | 206 | 185 | ||
Reconciliation of fair value of plan assets: | ||||||
Fair value of plan assets at beginning of year | 185 | |||||
Fair value of plan assets at end of year | 206 | 185 | ||||
Defined benefit pension plan | Domestic equity securities | ||||||
Target allocation and pension plan asset allocation | ||||||
Estimated fair value of plan assets | 84 | 84 | 93 | 84 | ||
Reconciliation of fair value of plan assets: | ||||||
Fair value of plan assets at beginning of year | 84 | |||||
Fair value of plan assets at end of year | 93 | 84 | ||||
Defined benefit pension plan | Domestic equity securities | Level 1 | ||||||
Target allocation and pension plan asset allocation | ||||||
Estimated fair value of plan assets | 84 | 84 | 93 | 84 | ||
Reconciliation of fair value of plan assets: | ||||||
Fair value of plan assets at beginning of year | 84 | |||||
Fair value of plan assets at end of year | 93 | 84 | ||||
Defined benefit pension plan | Foreign equity securities | ||||||
Target allocation and pension plan asset allocation | ||||||
Estimated fair value of plan assets | 57 | 57 | 64 | 57 | ||
Reconciliation of fair value of plan assets: | ||||||
Fair value of plan assets at beginning of year | 57 | |||||
Fair value of plan assets at end of year | 64 | 57 | ||||
Defined benefit pension plan | Foreign equity securities | Level 1 | ||||||
Target allocation and pension plan asset allocation | ||||||
Estimated fair value of plan assets | 57 | 57 | 64 | 57 | ||
Reconciliation of fair value of plan assets: | ||||||
Fair value of plan assets at beginning of year | 57 | |||||
Fair value of plan assets at end of year | 64 | 57 | ||||
Defined benefit pension plan | Fixed income | ||||||
Target allocation and pension plan asset allocation | ||||||
Estimated fair value of plan assets | 30 | 30 | 32 | 30 | ||
Reconciliation of fair value of plan assets: | ||||||
Fair value of plan assets at beginning of year | 30 | |||||
Fair value of plan assets at end of year | 32 | 30 | ||||
Defined benefit pension plan | Fixed income | Level 1 | ||||||
Target allocation and pension plan asset allocation | ||||||
Estimated fair value of plan assets | 30 | 30 | 32 | 30 | ||
Reconciliation of fair value of plan assets: | ||||||
Fair value of plan assets at beginning of year | 30 | |||||
Fair value of plan assets at end of year | 32 | 30 | ||||
Defined benefit pension plan | Foreign fixed income mutual funds | ||||||
Target allocation and pension plan asset allocation | ||||||
Estimated fair value of plan assets | 12 | 12 | 15 | 12 | ||
Reconciliation of fair value of plan assets: | ||||||
Fair value of plan assets at beginning of year | 12 | |||||
Fair value of plan assets at end of year | 15 | 12 | ||||
Defined benefit pension plan | Foreign fixed income mutual funds | Level 1 | ||||||
Target allocation and pension plan asset allocation | ||||||
Estimated fair value of plan assets | 12 | 12 | 15 | 12 | ||
Reconciliation of fair value of plan assets: | ||||||
Fair value of plan assets at beginning of year | 12 | |||||
Fair value of plan assets at end of year | 15 | 12 | ||||
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) | 0.70% | 2.15% | 3.50% | |||
Discount rate used to determine net periodic benefit cost (as a percent) | 2.15% | 3.50% | 2.75% | |||
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) | 2.60% | 3.50% | 4.50% | |||
Discount rate used to determine net periodic benefit cost (as a percent) | 3.50% | 4.50% | 3.80% | |||
Supplemental executive plans and retirement agreements | ||||||
Expected future benefit payments | ||||||
Accumulated benefit obligation | $ 179 | $ 104 |
Employee Benefits - Defined Con
Employee Benefits - Defined Contribution Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred compensation plan | |||
Deferred compensation plan income (expense) | $ (6) | $ (11) | $ 2 |
Deferred compensation plan liability included in other liabilities | 23 | 45 | |
Deferred compensation plan assets included in other current assets | 26 | 51 | |
Pension distribution | 32 | ||
Investment income (expense) related to the mark-to-market of investments treated as trading securities | 6 | 11 | (2) |
United States | |||
Defined contribution plans | |||
Contribution expense | $ 4 | $ 4 | $ 4 |
Derivatives and Fair Value of_3
Derivatives and Fair Value of Financial Instruments - Assets and Liabilities at Fair Value (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets: | |||
Trading securities | $ 1,465 | $ 1,434 | |
Investments | |||
Amount invested | 47 | 38 | $ 21 |
Commodities | |||
Assets: | |||
Margin account | 15 | 13 | |
Financial services company | |||
Investments | |||
Amount invested | 30 | ||
Domestic equity securities | |||
Assets: | |||
Trading securities | 702 | 706 | |
Domestic debt securities | |||
Assets: | |||
Trading securities | 496 | 460 | |
Foreign equity securities | |||
Assets: | |||
Trading securities | 133 | 189 | |
Foreign debt securities | |||
Assets: | |||
Trading securities | 68 | 48 | |
Money market funds held in trading accounts | |||
Assets: | |||
Trading securities | 47 | 12 | |
Recurring basis | Level 1 | |||
Assets: | |||
Total assets | 1,134 | 1,095 | |
Liabilities: | |||
Total liabilities | 19 | 4 | |
Recurring basis | Level 1 | Commodities | |||
Assets: | |||
Derivatives | 28 | 6 | |
Liabilities: | |||
Derivatives | 19 | 4 | |
Recurring basis | Level 1 | Domestic equity securities | Short-term investments | |||
Assets: | |||
Trading securities | 702 | 706 | |
Recurring basis | Level 1 | Domestic equity securities | Other current assets | |||
Assets: | |||
Trading securities | 14 | 40 | |
Recurring basis | Level 1 | Domestic debt securities | Short-term investments | |||
Assets: | |||
Trading securities | 196 | 127 | |
Recurring basis | Level 1 | Foreign equity securities | Short-term investments | |||
Assets: | |||
Trading securities | 133 | 189 | |
Recurring basis | Level 1 | Foreign equity securities | Other current assets | |||
Assets: | |||
Trading securities | 3 | 3 | |
Recurring basis | Level 1 | Money market funds held in trading accounts | Short-term investments | |||
Assets: | |||
Trading securities | 47 | 12 | |
Recurring basis | Level 1 | Money market funds held in trading accounts | Other current assets | |||
Assets: | |||
Trading securities | 6 | 6 | |
Recurring basis | Level 1 | Other trading investments | Short-term investments | |||
Assets: | |||
Trading securities | 3 | 4 | |
Recurring basis | Level 1 | Fixed income securities | Other current assets | |||
Assets: | |||
Trading securities | 2 | 2 | |
Recurring basis | Level 2 | |||
Assets: | |||
Total assets | 387 | 396 | |
Liabilities: | |||
Total liabilities | 10 | 3 | |
Recurring basis | Level 2 | Interest rate swaps | |||
Assets: | |||
Derivatives | 1 | ||
Recurring basis | Level 2 | Foreign currencies | |||
Liabilities: | |||
Derivatives | 9 | 3 | |
Recurring basis | Level 2 | Domestic debt securities | Short-term investments | |||
Assets: | |||
Trading securities | 300 | 333 | |
Recurring basis | Level 2 | Foreign debt securities | Short-term investments | |||
Assets: | |||
Trading securities | 68 | 48 | |
Recurring basis | Level 2 | Other trading investments | Short-term investments | |||
Assets: | |||
Trading securities | 17 | 15 | |
Liabilities: | |||
Derivatives | 1 | ||
Recurring basis | Level 2 | Fixed income securities | Other current assets | |||
Assets: | |||
Trading securities | 1 | ||
Recurring basis | Level 3 | |||
Assets: | |||
Total assets | 31 | ||
Liabilities: | |||
Contingent consideration | 16 | 13 | |
Total liabilities | 16 | 13 | |
Recurring basis | Level 3 | Long-term investments | |||
Assets: | |||
Long term investments | 31 | ||
Recurring basis | Fair Value | |||
Assets: | |||
Total assets | 1,552 | 1,491 | |
Liabilities: | |||
Contingent consideration | 16 | 13 | |
Total liabilities | 45 | 20 | |
Recurring basis | Fair Value | Commodities | |||
Assets: | |||
Derivatives | 28 | 6 | |
Liabilities: | |||
Derivatives | 19 | 4 | |
Recurring basis | Fair Value | Interest rate swaps | |||
Assets: | |||
Derivatives | 1 | ||
Recurring basis | Fair Value | Foreign currencies | |||
Liabilities: | |||
Derivatives | 9 | 3 | |
Recurring basis | Fair Value | Long-term investments | |||
Assets: | |||
Long term investments | 31 | ||
Recurring basis | Fair Value | Domestic equity securities | Short-term investments | |||
Assets: | |||
Trading securities | 702 | 706 | |
Recurring basis | Fair Value | Domestic equity securities | Other current assets | |||
Assets: | |||
Trading securities | 14 | 40 | |
Recurring basis | Fair Value | Domestic debt securities | Short-term investments | |||
Assets: | |||
Trading securities | 496 | 460 | |
Recurring basis | Fair Value | Foreign equity securities | Short-term investments | |||
Assets: | |||
Trading securities | 133 | 189 | |
Recurring basis | Fair Value | Foreign equity securities | Other current assets | |||
Assets: | |||
Trading securities | 3 | 3 | |
Recurring basis | Fair Value | Foreign debt securities | Short-term investments | |||
Assets: | |||
Trading securities | 68 | 48 | |
Recurring basis | Fair Value | Money market funds held in trading accounts | Short-term investments | |||
Assets: | |||
Trading securities | 47 | 12 | |
Recurring basis | Fair Value | Money market funds held in trading accounts | Other current assets | |||
Assets: | |||
Trading securities | 6 | 6 | |
Recurring basis | Fair Value | Other trading investments | Short-term investments | |||
Assets: | |||
Trading securities | 20 | 19 | |
Liabilities: | |||
Derivatives | 1 | ||
Recurring basis | Fair Value | Fixed income securities | Other current assets | |||
Assets: | |||
Trading securities | $ 3 | $ 2 |
Derivatives and Fair Value of_4
Derivatives and Fair Value of Financial Instruments - Instruments and Agreements (Details) lb in Millions, gal in Millions, bu in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)lbbuagreement | Dec. 31, 2019USD ($)bulbgal | |
Net commodity purchase contracts | Hogs | ||
Derivative commodity instruments | ||
Nonmonetary notional amount | lb | 2 | |
Net commodity purchase contracts | Grain | ||
Derivative commodity instruments | ||
Nonmonetary notional amount | bu | 26 | 17 |
Net commodity sale contracts | Heating oil | ||
Derivative commodity instruments | ||
Nonmonetary notional amount | gal | 12 | |
Net commodity sale contracts | Soybean oil | ||
Derivative commodity instruments | ||
Nonmonetary notional amount | lb | 56 | 132 |
Foreign currencies | ||
Derivative commodity instruments | ||
Notional amounts | $ 49 | $ 78 |
Equity futures contract | ||
Derivative commodity instruments | ||
Notional amounts | 3 | $ 0 |
Interest rate swaps | ||
Derivative commodity instruments | ||
Notional amounts | $ 400 | |
Number of derivative instruments entered into | agreement | 3 | |
Interest rate swaps | Weighted Average | ||
Derivative commodity instruments | ||
Fixed rate interest | 0.26% |
Derivatives and Fair Value of_5
Derivatives and Fair Value of Financial Instruments - Gain (Loss) on Derivatives (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
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 | $ 55 | $ (52) |
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 | 11 | 1 |
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 | $ (5) | (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) |
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, 2020USD ($)item | Dec. 31, 2019USD ($) | |
Commodities | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Margin account | $ 15 | $ 13 |
Commodities | Other current assets | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Asset Derivatives | 28 | 6 |
Derivative assets and liabilities, net basis | 24 | 15 |
Commodities | Other current liabilities | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Liability Derivatives | $ 19 | 4 |
Foreign currencies | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Number of counterparties | item | 4 | |
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 liabilities | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Liability Derivatives | $ 9 | $ 3 |
Interest rate swaps | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Number of counterparties | item | 1 | |
Interest rate swaps | Maximum | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Credit risk associated with derivative contracts | $ 1 | |
Interest rate swaps | Other current assets | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Asset Derivatives | $ 1 |
Stockholders' Equity and Accu_2
Stockholders' Equity and Accumulated Other Comprehensive Loss (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Components of and changes in accumulated other comprehensive loss, net of tax | |||
Balance at beginning of the period | $ (440) | $ (410) | |
Other comprehensive income (loss) before reclassifications | (45) | (34) | |
Amounts reclassified from accumulated other comprehensive loss to net earnings | 14 | 4 | |
Other comprehensive income (loss), net of tax | (31) | (30) | |
Balance at end of the period | $ (471) | $ (440) | $ (410) |
Common shares repurchased (in shares) | 4,069 | 4,369 | |
Repurchase of common stock | $ 13 | $ 17 | $ 5 |
Common stock dividend declared and paid (in dollars per share) | $ 9 | $ 9 | $ 6 |
Foreign currency translation adjustment | |||
Components of and changes in accumulated other comprehensive loss, net of tax | |||
Balance at beginning of the period | $ (369) | $ (349) | |
Other comprehensive income (loss) before reclassifications | (7) | (20) | |
Other comprehensive income (loss), net of tax | (7) | (20) | |
Balance at end of the period | (376) | (369) | $ (349) |
Cumulative unrecognized pension cost | |||
Components of and changes in accumulated other comprehensive loss, net of tax | |||
Balance at beginning of the period | (71) | (61) | |
Other comprehensive income (loss) before reclassifications | (38) | (14) | |
Amounts reclassified from accumulated other comprehensive loss to net earnings | 14 | 4 | |
Other comprehensive income (loss), net of tax | (24) | (10) | |
Balance at end of the period | $ (95) | $ (71) | $ (61) |
All components of AOCL except cumulative foreign currency translation adjustments | |||
Components of and changes in accumulated other comprehensive loss, net of tax | |||
Effective income tax rate (as a percent) | 25.00% | 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 | $ 34 | $ 21 | $ 23 |
Certain subsidiaries | Cumulative unrecognized pension cost | |||
Components of and changes in accumulated other comprehensive loss, net of tax | |||
Tax benefit recorded on unrecognized pension cost | $ 0 | $ 0 | $ 0 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue Recognition | |||
Net sales | $ 7,126 | $ 6,840 | $ 6,583 |
Transferred at point in time | Net sales | |||
Revenue Recognition | |||
Percentage of revenue | 85.00% | ||
Products | |||
Revenue Recognition | |||
Net sales | $ 5,993 | 5,610 | 5,334 |
Other | |||
Revenue Recognition | |||
Net sales | 75 | 126 | 133 |
Pork | |||
Revenue Recognition | |||
Net sales | 1,941 | 1,851 | 1,774 |
Pork | Products | |||
Revenue Recognition | |||
Net sales | 1,682 | 1,599 | |
Pork | Transportation | |||
Revenue Recognition | |||
Net sales | 8 | 10 | |
Pork | Energy | |||
Revenue Recognition | |||
Net sales | 219 | 210 | |
Pork | Other | |||
Revenue Recognition | |||
Net sales | 32 | 32 | |
CT&M | |||
Revenue Recognition | |||
Net sales | 3,994 | 3,672 | 3,428 |
CT&M | Products | |||
Revenue Recognition | |||
Net sales | 3,981 | 3,654 | |
CT&M | Other | |||
Revenue Recognition | |||
Net sales | 13 | 18 | |
Marine | |||
Revenue Recognition | |||
Net sales | 1,005 | 1,061 | 1,057 |
Marine | Transportation | |||
Revenue Recognition | |||
Net sales | 1,005 | 1,061 | |
Sugar and Alcohol | |||
Revenue Recognition | |||
Net sales | 106 | 121 | 184 |
Sugar and Alcohol | Products | |||
Revenue Recognition | |||
Net sales | 95 | 112 | |
Sugar and Alcohol | Energy | |||
Revenue Recognition | |||
Net sales | 11 | 9 | |
Power | |||
Revenue Recognition | |||
Net sales | 64 | 117 | 122 |
Power | Energy | |||
Revenue Recognition | |||
Net sales | 64 | 117 | |
All Other | |||
Revenue Recognition | |||
Net sales | 16 | 18 | $ 18 |
All Other | Products | |||
Revenue Recognition | |||
Net sales | 16 | 17 | |
All Other | Transportation | |||
Revenue Recognition | |||
Net sales | 1 | ||
Segment Totals | |||
Revenue Recognition | |||
Net sales | 7,126 | 6,840 | |
Segment Totals | Products | |||
Revenue Recognition | |||
Net sales | 5,774 | 5,382 | |
Segment Totals | Transportation | |||
Revenue Recognition | |||
Net sales | 1,013 | 1,072 | |
Segment Totals | Energy | |||
Revenue Recognition | |||
Net sales | 294 | 336 | |
Segment Totals | Other | |||
Revenue Recognition | |||
Net sales | $ 45 | $ 50 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2020USD ($)company | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 26, 2020USD ($) | |
Components of earnings before income taxes | ||||||||
United States | $ 138 | $ 180 | $ (82) | |||||
Foreign | 148 | 110 | 93 | |||||
Total earnings (loss) excluding non-controlling interest | 286 | 290 | 11 | |||||
Less: Net loss (income) attributable to noncontrolling interest | 0 | 0 | 0 | |||||
Earnings before income taxes | 286 | 290 | 11 | |||||
Current: | ||||||||
Federal | (50) | 12 | (20) | |||||
Foreign | 35 | 39 | 32 | |||||
State and local | 2 | (1) | ||||||
Deferred: | ||||||||
Federal | 26 | (39) | 10 | |||||
Foreign | (3) | (1) | (5) | |||||
State and local | (7) | (7) | (9) | |||||
Income tax expense | 3 | 3 | 8 | |||||
Unrealized changes in other comprehensive loss | $ (3) | (4) | 2 | |||||
Total income taxes | $ (1) | $ 10 | ||||||
Income taxes | ||||||||
Federal income tax rate (as a percent) | 21.00% | 21.00% | 21.00% | |||||
Long-term income tax liability | $ 6 | $ 62 | $ 6 | $ 62 | ||||
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 | 61 | $ 2 | |||||
Adjustments to tax expense (benefit) attributable to: | ||||||||
Foreign tax differences | (4) | 14 | 12 | |||||
Tax-exempt income | (17) | (29) | (13) | |||||
State income taxes, net of federal benefit | (3) | (4) | (6) | |||||
Repatriation tax | 14 | $ 112 | ||||||
Foreign entity tax status change | 22 | |||||||
Federal tax credits | (34) | (47) | (23) | |||||
Federal rate reduction effect on capital loss carryback | (3) | |||||||
Other | 1 | 8 | 3 | |||||
Income tax expense | 3 | 3 | 8 | |||||
Increase in provisional tax impact of the Tax Cuts and Jobs Act | 16 | |||||||
Income taxes receivable | 18 | 14 | 18 | 14 | ||||
Income taxes payable | 14 | 16 | 14 | 16 | ||||
Deferred income tax liabilities: | ||||||||
Depreciation | 100 | 119 | 100 | 119 | ||||
Domestic partnerships | 59 | 65 | 59 | 65 | ||||
Unrealized gain on investments | 52 | 36 | 52 | 36 | ||||
Inventory | 10 | 15 | 10 | 15 | ||||
Other | 3 | 4 | 3 | 4 | ||||
Aggregate deferred income tax liabilities | 224 | 239 | 224 | 239 | ||||
Deferred income tax assets: | ||||||||
Reserves/accruals | 74 | 73 | 74 | 73 | ||||
Net operating and capital loss carry-forwards | 52 | 63 | 52 | 63 | ||||
Tax credit carry-forwards | 49 | 75 | 49 | 75 | ||||
Other | 5 | 4 | 5 | 4 | ||||
Aggregate deferred income tax assets | 180 | 215 | 180 | 215 | ||||
Valuation allowance | 55 | 68 | 55 | 68 | ||||
Net deferred income tax liability | $ 99 | 92 | 99 | 92 | ||||
Time period to recognize tax LIFO reserve as taxable income | 4 years | |||||||
Accrued interest and penalties on uncertain tax positions | $ 8 | 8 | 8 | 8 | ||||
Unrecognized tax benefits, if recognized, would affect the effective tax rate | 30 | 31 | 30 | 31 | ||||
Reconciliation of the beginning and ending amount of unrecognized tax benefits | ||||||||
Balance at the beginning of the year | 31 | 25 | ||||||
Additions for uncertain tax positions of prior years | 2 | 4 | ||||||
Decreases for uncertain tax positions of prior years | (6) | (7) | (3) | |||||
Additions for uncertain tax positions of current year | 5 | 6 | ||||||
Lapse of statute of limitations | (1) | (1) | ||||||
Balance at the end of the year | 30 | 31 | 30 | 31 | 25 | |||
Undistributed earnings from foreign operations | 1,300 | 1,300 | ||||||
Additional tax expense due to change in tax status | 22 | |||||||
Expense recorded on IRS audit settlement | 6 | |||||||
One-time tax benefit on enactment of law | $ 4 | |||||||
Gross non-taxable revenue related to federal blender's credit | 136 | 61 | ||||||
Other commitments | ||||||||
Contribution to long-term investment | 47 | 38 | 21 | |||||
Investment tax credits | $ 22 | 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 | ||||||||
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 | $ 68 | 59 | 59 | ||||
Charge (credit) to expense | (13) | 9 | ||||||
Balance at end of year | 55 | $ 68 | $ 55 | 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 | $ 17 | 15 | $ 17 | |||||
Biogas fueled power project | ||||||||
Other commitments | ||||||||
Contribution to long-term investment | $ 20 | |||||||
Tax Period Third Quarter 2020 | ||||||||
Deferred income tax assets: | ||||||||
LIFO reserve | $ 51 | |||||||
Foreign | ||||||||
Reconciliation of the beginning and ending amount of unrecognized tax benefits | ||||||||
Net operating loss carry-forwards (NOLs) | 111 | 111 | ||||||
State | ||||||||
Reconciliation of the beginning and ending amount of unrecognized tax benefits | ||||||||
Net operating loss carry-forwards (NOLs) | 203 | 203 | ||||||
Tax credit carry-forwards | $ 22 | $ 22 |
Segment Information - Pork and
Segment Information - Pork and Power Segments (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Feb. 23, 2019USD ($) | Dec. 31, 2020segment | Dec. 31, 2019USD ($) | Sep. 28, 2019 | |
Segment Information | ||||
Number of reportable segments | segment | 6 | |||
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% |
Segment Information - Specific
Segment Information - Specific Financial Information About Each Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Information | |||||||||||
Sales to External Customers | $ 7,126 | $ 6,840 | $ 6,583 | ||||||||
Operating Income (Loss) | $ 134 | $ 39 | $ 9 | $ 63 | $ 89 | $ (8) | $ 63 | $ (34) | 245 | 110 | 236 |
Income (Loss) from affiliates | (18) | (41) | (44) | ||||||||
Depreciation and amortization | 172 | 138 | 134 | ||||||||
Total assets | 6,399 | 6,349 | 6,399 | 6,349 | |||||||
Investment in and Advances to Affiliates | 698 | 735 | 698 | 735 | |||||||
Capital expenditures | 259 | 349 | 162 | ||||||||
Pork | |||||||||||
Segment Information | |||||||||||
Sales to External Customers | 1,941 | 1,851 | 1,774 | ||||||||
Operating Income (Loss) | 131 | 60 | 144 | ||||||||
Income (Loss) from affiliates | (9) | (22) | (30) | ||||||||
Depreciation and amortization | 106 | 75 | 73 | ||||||||
Total assets | 1,927 | 1,866 | 1,927 | 1,866 | |||||||
Investment in and Advances to Affiliates | 172 | 183 | 172 | 183 | |||||||
Capital expenditures | 207 | 164 | 86 | ||||||||
CT&M | |||||||||||
Segment Information | |||||||||||
Sales to External Customers | 3,994 | 3,672 | 3,428 | ||||||||
Operating Income (Loss) | 118 | 62 | 46 | ||||||||
Income (Loss) from affiliates | (2) | (5) | (11) | ||||||||
Depreciation and amortization | 28 | 25 | 22 | ||||||||
Total assets | 1,585 | 1,621 | 1,585 | 1,621 | |||||||
Investment in and Advances to Affiliates | 222 | 237 | 222 | 237 | |||||||
Capital expenditures | 8 | 23 | 29 | ||||||||
Marine | |||||||||||
Segment Information | |||||||||||
Sales to External Customers | 1,005 | 1,061 | 1,057 | ||||||||
Operating Income (Loss) | 21 | 4 | 25 | ||||||||
Income (Loss) from affiliates | 2 | 3 | 2 | ||||||||
Depreciation and amortization | 23 | 23 | 24 | ||||||||
Total assets | 508 | 554 | 508 | 554 | |||||||
Investment in and Advances to Affiliates | 30 | 32 | 30 | 32 | |||||||
Capital expenditures | 10 | 26 | 18 | ||||||||
Sugar and Alcohol | |||||||||||
Segment Information | |||||||||||
Sales to External Customers | 106 | 121 | 184 | ||||||||
Operating Income (Loss) | 2 | (16) | 9 | ||||||||
Income (Loss) from affiliates | 1 | 1 | 1 | ||||||||
Depreciation and amortization | 7 | 6 | 6 | ||||||||
Total assets | 153 | 139 | 153 | 139 | |||||||
Investment in and Advances to Affiliates | 6 | 5 | 6 | 5 | |||||||
Capital expenditures | 5 | 15 | 5 | ||||||||
Power | |||||||||||
Segment Information | |||||||||||
Sales to External Customers | 64 | 117 | 122 | ||||||||
Operating Income (Loss) | 3 | 27 | 21 | ||||||||
Income (Loss) from affiliates | 3 | 10 | |||||||||
Depreciation and amortization | 8 | 8 | 8 | ||||||||
Total assets | 302 | 283 | 302 | 283 | |||||||
Investment in and Advances to Affiliates | 3 | 3 | 3 | 3 | |||||||
Capital expenditures | 27 | 121 | 23 | ||||||||
Turkey | |||||||||||
Segment Information | |||||||||||
Income (Loss) from affiliates | (10) | (21) | (16) | ||||||||
Total assets | 265 | 275 | 265 | 275 | |||||||
Investment in and Advances to Affiliates | 265 | 275 | 265 | 275 | |||||||
All Other | |||||||||||
Segment Information | |||||||||||
Sales to External Customers | 16 | 18 | 18 | ||||||||
Operating Income (Loss) | 1 | 2 | 2 | ||||||||
Total assets | 6 | 10 | 6 | 10 | |||||||
Capital expenditures | 2 | ||||||||||
Segment Totals | |||||||||||
Segment Information | |||||||||||
Sales to External Customers | 7,126 | 6,840 | |||||||||
Operating Income (Loss) | 276 | 139 | 247 | ||||||||
Depreciation and amortization | 172 | 137 | 133 | ||||||||
Total assets | 4,746 | 4,748 | 4,746 | 4,748 | |||||||
Capital expenditures | 259 | 349 | 161 | ||||||||
Corporate | |||||||||||
Segment Information | |||||||||||
Operating Income (Loss) | (31) | (29) | (11) | ||||||||
Depreciation and amortization | 1 | 1 | |||||||||
Total assets | $ 1,653 | $ 1,601 | $ 1,653 | $ 1,601 | |||||||
Capital expenditures | $ 1 |
Segment Information - Geographi
Segment Information - Geographic Concentration (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Concentration Risk | |||
Net sales | $ 7,126 | $ 6,840 | $ 6,583 |
Net sales | Geographic concentration | Colombia | |||
Concentration Risk | |||
Net sales | $ 812 | $ 778 | $ 757 |
Concentration risk (as a percent) | 11.00% | 11.00% | 11.00% |
Net sales | Geographic concentration | South Africa | |||
Concentration Risk | |||
Net sales | $ 743 | $ 668 | $ 589 |
Concentration risk (as a percent) | 10.00% | 10.00% | 9.00% |
Segment Information - Geograp_2
Segment Information - Geographic Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Geographic Information | |||
Net sales | $ 7,126 | $ 6,840 | $ 6,583 |
Property, plant and equipment | 1,582 | 1,431 | |
Caribbean, Central and South America | |||
Geographic Information | |||
Net sales | 2,744 | 2,792 | 2,753 |
Africa | |||
Geographic Information | |||
Net sales | 2,099 | 1,859 | 1,668 |
United States | |||
Geographic Information | |||
Net sales | 1,536 | 1,447 | 1,408 |
Property, plant and equipment | 1,053 | 899 | |
Singapore | |||
Geographic Information | |||
Property, plant and equipment | 155 | 139 | |
Pacific Basin and Far East | |||
Geographic Information | |||
Net sales | 435 | 370 | 381 |
Canada/Mexico | |||
Geographic Information | |||
Net sales | 202 | 308 | 255 |
Europe | |||
Geographic Information | |||
Net sales | 101 | 52 | 100 |
Dominican Republic | |||
Geographic Information | |||
Property, plant and equipment | 109 | 103 | |
Senegal | |||
Geographic Information | |||
Property, plant and equipment | 42 | 43 | |
Zambia | |||
Geographic Information | |||
Property, plant and equipment | 25 | 38 | |
Argentina | |||
Geographic Information | |||
Property, plant and equipment | 59 | 59 | |
Ivory Coast | |||
Geographic Information | |||
Property, plant and equipment | 34 | 33 | |
All Other | |||
Geographic Information | |||
Net sales | 9 | 12 | $ 18 |
Property, plant and equipment | $ 105 | $ 117 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net sales | $ 7,126 | $ 6,840 | $ 6,583 | ||||||||
Cost of sales | $ 1,768 | $ 1,517 | $ 1,719 | $ 1,548 | $ 1,634 | $ 1,591 | $ 1,676 | $ 1,493 | 6,552 | 6,394 | 6,033 |
Operating income (loss) | 134 | 39 | 9 | 63 | 89 | (8) | 63 | (34) | 245 | 110 | 236 |
Other investment income (loss) | 84 | 225 | (152) | ||||||||
Net earnings (loss) attributable to Seaboard | $ 259 | $ 154 | $ (27) | $ (103) | $ 173 | $ (8) | $ 65 | $ 57 | $ 283 | $ 287 | $ 3 |
Earnings per common share | $ 222.52 | $ 132.58 | $ (23.51) | $ (88.73) | $ 148.75 | $ (7.23) | $ 56.26 | $ 48.88 | $ 244.21 | $ 246.62 | $ 2.26 |
As Previously Reported | |||||||||||
Net sales | $ 1,990 | $ 1,645 | $ 1,808 | $ 1,683 | $ 1,812 | $ 1,663 | $ 1,822 | $ 1,543 | |||
Cost of sales | 1,768 | 1,527 | 1,717 | 1,548 | 1,632 | 1,589 | 1,686 | 1,493 | $ 6,400 | $ 6,060 | |
Operating income (loss) | 134 | 29 | 11 | 63 | 91 | (6) | 53 | (34) | $ 104 | $ 209 | |
Other investment income (loss) | 125 | 56 | 128 | (225) | 73 | 2 | 37 | 113 | |||
Net earnings (loss) attributable to Seaboard | $ 259 | $ 147 | $ (26) | $ (103) | $ 175 | $ (7) | $ 58 | $ 57 | |||
Earnings per common share | $ 222.52 | $ 126.17 | $ (22.35) | $ (88.43) | $ 149.91 | $ (6) | $ 50.13 | $ 48.79 | $ 242.78 | $ (14.61) | |
Impact of Accounting Change | |||||||||||
Cost of sales | $ (10) | $ 2 | $ 2 | $ 2 | $ (10) | ||||||
Operating income (loss) | 10 | (2) | (2) | (2) | 10 | ||||||
Net earnings (loss) attributable to Seaboard | $ 7 | $ (1) | $ (2) | $ (1) | $ 7 | ||||||
Earnings per common share | $ 6.41 | $ (1.16) | $ (0.30) | $ (1.16) | $ (1.23) | $ 6.13 | $ 0.09 |