Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 03, 2021 | Jul. 27, 2021 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jul. 3, 2021 | |
Entity File Number | 1-3390 | |
Entity Registrant Name | Seaboard Corporation | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 04-2260388 | |
Entity Address, Address Line One | 9000 West 67th Street | |
Entity Address, City or Town | Merriam | |
Entity Address, State or Province | KS | |
Entity Address, Postal Zip Code | 66202 | |
City Area Code | 913 | |
Local Phone Number | 676-8800 | |
Title of 12(b) Security | Common Stock $1.00 Par Value | |
Trading Symbol | SEB | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,160,779 | |
Entity Central Index Key | 0000088121 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2021 | Jun. 27, 2020 | Jul. 03, 2021 | Jun. 27, 2020 | |
Net sales: | ||||
Total net sales | $ 2,430 | $ 1,808 | $ 4,489 | $ 3,491 |
Cost of sales and operating expenses: | ||||
Total cost of sales and operating expenses | 2,177 | 1,719 | 4,058 | 3,267 |
Gross income | 253 | 89 | 431 | 224 |
Selling, general and administrative expenses | 88 | 80 | 174 | 152 |
Operating income | 165 | 9 | 257 | 72 |
Other income (expense): | ||||
Interest expense | (6) | (6) | (11) | |
Interest expense | 4 | |||
Interest income | 6 | 4 | 11 | 11 |
Income (loss) from affiliates | (5) | (17) | 1 | (21) |
Other investment income (loss), net | 46 | 128 | 117 | (97) |
Foreign currency gains (losses), net | (7) | (5) | 2 | (16) |
Miscellaneous, net | 1 | 1 | 7 | 2 |
Total other income (expense), net | 35 | 105 | 142 | (132) |
Earnings (loss) before income taxes | 200 | 114 | 399 | (60) |
Income tax expense | (24) | (141) | (44) | (70) |
Net earnings (loss) | 176 | (27) | 355 | (130) |
Less: Net loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net earnings (loss) attributable to Seaboard | $ 176 | $ (27) | $ 355 | $ (130) |
Earnings (loss) per common share | $ 151.56 | $ (23.51) | $ 305.59 | $ (112.33) |
Average number of shares outstanding (in shares) | 1,160,779 | 1,160,779 | 1,160,779 | 1,162,307 |
Other comprehensive income (loss), net of income tax expense of $1, $1, $1 and $1: | ||||
Foreign currency translation adjustment | $ (15) | $ (19) | $ (16) | |
Unrecognized pension cost | 4 | $ 5 | 2 | |
Other comprehensive income (loss), net of tax | (11) | (19) | 5 | (14) |
Comprehensive income (loss) | 165 | (46) | 360 | (144) |
Less: Comprehensive loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Seaboard | 165 | (46) | 360 | (144) |
Products | ||||
Net sales: | ||||
Total net sales | 2,089 | 1,589 | 3,820 | 2,971 |
Cost of sales and operating expenses: | ||||
Total cost of sales and operating expenses | 1,894 | 1,520 | 3,500 | 2,798 |
Services | ||||
Net sales: | ||||
Total net sales | 330 | 206 | 643 | 489 |
Cost of sales and operating expenses: | ||||
Total cost of sales and operating expenses | 269 | 185 | 530 | 441 |
Other | ||||
Net sales: | ||||
Total net sales | 11 | 13 | 26 | 31 |
Cost of sales and operating expenses: | ||||
Total cost of sales and operating expenses | $ 14 | $ 14 | $ 28 | $ 28 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2021 | Jun. 27, 2020 | Jul. 03, 2021 | Jun. 27, 2020 | |
Other comprehensive income (loss), income tax expense | $ 1 | $ 1 | $ 1 | $ 1 |
Products | ||||
Sales to affiliates | 392 | 332 | 685 | 591 |
Services | ||||
Sales to affiliates | $ 4 | $ 6 | $ 9 | $ 12 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jul. 03, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 92 | $ 76 |
Short-term investments | 1,483 | 1,465 |
Receivables, net of allowance for credit losses of $30 and $28 | 642 | 532 |
Inventories | 1,497 | 1,178 |
Other current assets | 164 | 103 |
Total current assets | 3,878 | 3,354 |
Property, plant and equipment, net | 1,744 | 1,582 |
Operating lease right of use assets, net | 416 | 390 |
Investments in and advances to affiliates | 666 | 698 |
Goodwill | 164 | 167 |
Other non-current assets | 202 | 208 |
Total assets | 7,070 | 6,399 |
Current liabilities: | ||
Lines of credit | 474 | 222 |
Current maturities of long-term debt | 9 | 55 |
Accounts payable | 390 | 276 |
Deferred revenue | 95 | 89 |
Operating lease liabilities | 137 | 111 |
Other current liabilities | 308 | 323 |
Total current liabilities | 1,413 | 1,076 |
Long-term debt, less current maturities | 711 | 707 |
Deferred income taxes | 85 | 103 |
Long-term operating lease liabilities | 315 | 318 |
Other liabilities | 363 | 367 |
Total non-current liabilities | 1,474 | 1,495 |
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 2021 and 2020 | 1 | 1 |
Accumulated other comprehensive loss | (466) | (471) |
Retained earnings | 4,637 | 4,287 |
Total Seaboard stockholders' equity | 4,172 | 3,817 |
Noncontrolling interests | 11 | 11 |
Total equity | 4,183 | 3,828 |
Total liabilities and stockholders' equity | $ 7,070 | $ 6,399 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jul. 03, 2021 | Dec. 31, 2020 |
Condensed Consolidated Balance Sheets | ||
Allowance for credit losses | $ 30 | $ 28 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized shares | 1,250,000 | 1,250,000 |
Common stock, issued shares | 1,160,779 | 1,160,779 |
Common stock, outstanding shares | 1,160,779 | 1,160,779 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Common Stock | Accumulated Other Comprehensive Loss | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Noncontrolling Interest | Cumulative Effect, Period of Adoption, Adjustment | Total |
Balances at Dec. 31, 2019 | $ 1 | $ (440) | $ (3) | $ 4,030 | $ 10 | $ (3) | $ 3,601 |
Comprehensive income (loss): | |||||||
Net earnings (loss) | (103) | (103) | |||||
Other comprehensive income, net of tax | 5 | 5 | |||||
Repurchase of common stock | (13) | (13) | |||||
Dividends on common stock ($2.25/share) | (3) | (3) | |||||
Balances at Mar. 28, 2020 | 1 | (435) | 3,908 | 10 | 3,484 | ||
Balances at Dec. 31, 2019 | 1 | (440) | (3) | 4,030 | 10 | (3) | 3,601 |
Comprehensive income (loss): | |||||||
Net earnings (loss) | (130) | ||||||
Other comprehensive income, net of tax | (14) | ||||||
Balances at Jun. 27, 2020 | 1 | (454) | 3,879 | 10 | 3,436 | ||
Balances at Dec. 31, 2019 | 1 | (440) | $ (3) | 4,030 | 10 | $ (3) | 3,601 |
Comprehensive income (loss): | |||||||
Repurchase of common stock | (13) | ||||||
Balances at Dec. 31, 2020 | 1 | (471) | 4,287 | 11 | 3,828 | ||
Balances at Mar. 28, 2020 | 1 | (435) | 3,908 | 10 | 3,484 | ||
Comprehensive income (loss): | |||||||
Net earnings (loss) | (27) | (27) | |||||
Other comprehensive income, net of tax | (19) | (19) | |||||
Dividends on common stock ($2.25/share) | (2) | (2) | |||||
Balances at Jun. 27, 2020 | 1 | (454) | 3,879 | 10 | 3,436 | ||
Balances at Dec. 31, 2020 | 1 | (471) | 4,287 | 11 | 3,828 | ||
Comprehensive income (loss): | |||||||
Net earnings (loss) | 179 | 179 | |||||
Other comprehensive income, net of tax | 16 | 16 | |||||
Dividends on common stock ($2.25/share) | (3) | (3) | |||||
Balances at Apr. 03, 2021 | 1 | (455) | 4,463 | 11 | 4,020 | ||
Balances at Dec. 31, 2020 | 1 | (471) | 4,287 | 11 | 3,828 | ||
Comprehensive income (loss): | |||||||
Net earnings (loss) | 355 | ||||||
Other comprehensive income, net of tax | 5 | ||||||
Balances at Jul. 03, 2021 | 1 | (466) | 4,637 | 11 | 4,183 | ||
Balances at Apr. 03, 2021 | 1 | (455) | 4,463 | 11 | 4,020 | ||
Comprehensive income (loss): | |||||||
Net earnings (loss) | 176 | 176 | |||||
Other comprehensive income, net of tax | (11) | (11) | |||||
Dividends on common stock ($2.25/share) | (2) | (2) | |||||
Balances at Jul. 03, 2021 | $ 1 | $ (466) | $ 4,637 | $ 11 | $ 4,183 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | |||
Jul. 03, 2021 | Apr. 03, 2021 | Jun. 27, 2020 | Mar. 28, 2020 | |
Condensed Consolidated Statements of Changes in Equity | ||||
Dividends on common stock (in dollars per share) | $ 2.25 | $ 2.25 | $ 2.25 | $ 2.25 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jul. 03, 2021 | Jun. 27, 2020 | |
Cash flows from operating activities: | ||
Net earnings (loss) | $ 355 | $ (130) |
Adjustments to reconcile net earnings (loss) to cash from operating activities: | ||
Depreciation and amortization | 87 | 72 |
Deferred income taxes | (26) | (46) |
Loss (income) from affiliates | (1) | 21 |
Dividends received from affiliates | 30 | 7 |
Other investment loss (income), net | (117) | 97 |
Other, net | 4 | 22 |
Changes in assets and liabilities: | ||
Receivables, net of allowance for credit losses | (109) | 86 |
Inventories | (319) | 22 |
Other assets | (51) | 5 |
Accounts payable | 86 | (177) |
Other liabilities, exclusive of debt | (7) | 21 |
Net cash from operating activities | (68) | |
Cash flows from investing activities: | ||
Purchase of short-term investments | (1,482) | (311) |
Proceeds from the sale of short-term investments | 1,569 | 464 |
Proceeds from the maturity of short-term investments | 19 | 20 |
Capital expenditures | (223) | (108) |
Proceeds from the sale of property, plant and equipment | 14 | 2 |
Principal payments received on notes receivable | 11 | |
Purchase of long-term investments | (14) | (38) |
Other, net | 1 | (6) |
Net cash from investing activities | (105) | 23 |
Cash flows from financing activities: | ||
Uncommitted lines of credit, net | 152 | (22) |
Draws under committed lines of credit | 402 | 205 |
Repayments of committed lines of credit | (302) | (205) |
Principal payments of long-term debt | (50) | (31) |
Repurchase of common stock | (13) | |
Dividends paid | (5) | (5) |
Other, net | (5) | 3 |
Net cash from financing activities | 192 | (68) |
Effect of exchange rate changes on cash and cash equivalents | (3) | (1) |
Net change in cash and cash equivalents | 16 | (46) |
Cash and cash equivalents at beginning of year | 76 | 125 |
Cash and cash equivalents at end of period | $ 92 | $ 79 |
Basis of Presentation and Accou
Basis of Presentation and Accounting Policies | 6 Months Ended |
Jul. 03, 2021 | |
Basis of Presentation and Accounting Policies | |
Basis of Presentation and Accounting Policies | Note 1 – Basis of Presentation and Accounting Policies The condensed consolidated financial statements include the accounts of Seaboard Corporation and its subsidiaries (“Seaboard”). These financial statements should be read in conjunction with the consolidated financial statements of Seaboard for the year ended December 31, 2020 as filed in its annual report on Form 10-K. Seaboard’s first three quarterly periods include approximately 13 weekly periods ending on the Saturday closest to the end of March, June and September. Seaboard’s year-end is December 31. Preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Results of operations for interim periods are not necessarily indicative of results to be expected for the full year. The unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments that, in the opinion of management, are necessary for a fair presentation of financial position, results of operations and cash flows. Seaboard has consistently applied all accounting policies as disclosed in its latest annual report on Form 10-K to all periods presented in these condensed consolidated financial statements. During the fourth quarter of 2020, Seaboard elected to change its method of valuing its inventories from the last-in, first-out (“LIFO”) method to the first-in, first-out (“FIFO”) method. The effects of the change in accounting principle from LIFO to FIFO were retrospectively applied and, as a result, certain financial statement line items in the condensed consolidated statements of comprehensive income, changes in equity and cash flows for the six months ended June 27, 2020 were adjusted as necessary. For further information, refer to the annual report on Form 10-K for the year ended December 31, 2020. Supplemental Cash Flow Information Non-cash investing activities for the six months ended July 3, 2021, included purchases of property, plant and equipment in accounts payable of $28 million. The following table includes supplemental cash and non-cash information related to leases. Seaboard reports the amortization of right of use (“ROU”) assets and changes in operating lease liabilities in other liabilities, exclusive of debt in the condensed consolidated statements of cash flows. Six months ended July 3, June 27, (Millions of dollars) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 75 $ 71 Operating cash flows from finance leases 2 2 Financing cash flows from finance leases 5 3 Operating ROU assets obtained in exchange for new operating lease liabilities $ 84 $ 43 Finance ROU assets obtained in exchange for new finance lease liabilities 6 27 Goodwill and Other Intangible Assets The change in the carrying amount of goodwill of $3 million as of July 3, 2021 compared to December 31, 2020 was due to foreign currency exchange differences and other adjustments within the Commodity Trading and Milling (“CT&M”) segment. As of July 3, 2021, other intangible assets, included in other non-current assets, were $50 million, net of accumulated amortization of $27 million. Income Taxes Seaboard computes its year-to-date provision for income taxes by applying the estimated annual effective tax rate to year-to-date pre-tax income or loss and adjusts the provision for discrete tax items recorded in the period. Accounting Standard 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 |
Investments
Investments | 6 Months Ended |
Jul. 03, 2021 | |
Investments | |
Investments | Note 2 – Investments The following is a summary of the estimated fair value of short-term investments classified as trading securities: July 3, December 31, (Millions of dollars) 2021 2020 Domestic debt securities $ 685 $ 496 Domestic equity securities 456 702 Foreign equity securities 193 133 Foreign debt securities 117 68 Money market funds held in trading accounts 15 47 Other trading securities 17 19 Total trading short-term investments $ 1,483 $ 1,465 The change in unrealized gains (losses) related to trading securities still held at the end of the respective reporting period was $9 million and $17 million for the three and six months ended July 3, 2021, respectively, and $113 million and $(97) million for the three and six months ended June 27, 2020, respectively. Seaboard had $45 million and $29 million of short-term investments denominated in foreign currencies, primarily euros, as of July 3, 2021 and December 31, 2020, respectively. |
Inventories
Inventories | 6 Months Ended |
Jul. 03, 2021 | |
Inventories | |
Inventories | Note 3 – Inventories The following is a summary of inventories: July 3, December 31, (Millions of dollars) 2021 2020 At lower of FIFO cost and net realizable value (NRV): Hogs and materials $ 467 $ 437 Pork products and materials 46 46 Grains, oilseeds and other commodities 576 380 Biodiesel 122 72 Sugar produced and in process 37 24 Other 43 61 Total inventories at lower of FIFO cost and NRV 1,291 1,020 Grain, flour and feed at lower of weighted average cost and NRV 206 158 Total inventories $ 1,497 $ 1,178 |
Lines of Credit, Long-Term Debt
Lines of Credit, Long-Term Debt, Commitments and Contingencies | 6 Months Ended |
Jul. 03, 2021 | |
Lines of Credit, Long-Term Debt, Commitments and Contingencies | |
Lines of Credit, Long-Term Debt, Commitments and Contingencies | Note 4 – Lines of Credit, Long-Term Debt, Commitments and Contingencies Lines of Credit The outstanding balances under uncommitted lines of credit were $374 million and $222 million as of July 3, 2021 and December 31, 2020, respectively. Of the outstanding balance at July 3, 2021, $236 million was denominated in foreign currencies with $203 million denominated in the South African rand, $24 million denominated in the Canadian dollar and the remaining in various other currencies. The weighted average interest rate for outstanding lines of credit was 2.81% and 3.89% as of July 3, 2021 and December 31, 2020, respectively. During the second quarter of 2021, Seaboard amended a committed line of credit agreement to increase the borrowing capacity from $100 million to $250 million. This credit agreement is secured by certain short-term investments and matures on September 30, 2022. A $250 million committed line of credit matured in May 2021. There was $100 million outstanding under committed lines of credit as of July 3, 2021 and no Long-term Debt The following is a summary of long-term debt: July 3, December 31, (Millions of dollars) 2021 2020 Term Loan due 2028 $ 681 $ 684 Foreign subsidiary obligations 1 49 Other long-term debt 39 30 Total debt at face value 721 763 Current maturities and unamortized discount and costs (10) (56) Long-term debt, less current maturities and unamortized discount and costs $ 711 $ 707 The interest rate on the Term Loan due 2028 was 1.73% and 1.77% as of July 3, 2021 and December 31, 2020, respectively. The weighted average interest rate on Seaboard’s foreign subsidiary obligations was 7.34% and 3.51% as of July 3, 2021 and December 31, 2020, respectively. Foreign subsidiary obligations as of December 31, 2020, included a $46 million euro-denominated note payable related to a 2018 acquisition that was repaid in January 2021. In conjunction with the purchase of certain equipment during the second quarter of 2021, $9 million of secured, long-term debt was assumed. The loan agreement incurs a fixed interest rate of 5.60% and matures in August 2037. Seaboard was in compliance with all restrictive debt covenants relating to these agreements as of July 3, 2021. 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. In 2021, several additional standalone plaintiffs filed similar actions in District Courts throughout the country. These actions have been conditionally transferred to Minnesota for pretrial proceedings pursuant to an order by the Judicial Panel on Multidistrict Litigation. Seaboard intends to defend all of 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 has threatened to bring legal action in the U.S. against Seaboard alleging on various legal theories that Seaboard is responsible for indebtedness of approximately $10 million, plus accrued interest. 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 condensed consolidated financial statements of Seaboard. Guarantees Certain of Seaboard’s non-consolidated affiliates have debt supporting their underlying operations. From time to time, Seaboard will provide guarantees of that debt in order to further Seaboard’s business objectives. As of July 3, 2021, guarantees outstanding to affiliates and third parties were not material. Seaboard has not accrued a liability for any of the affiliate or third-party guarantees as management considers the likelihood of loss to be remote . |
Employee Benefits
Employee Benefits | 6 Months Ended |
Jul. 03, 2021 | |
Employee Benefits | |
Employee Benefits | Note 5 – Employee Benefits Seaboard has qualified defined benefit pension plans for its domestic salaried and clerical employees that were hired before January 1, 2014. Effective January 1, 2021, Seaboard transferred assets and liabilities for employees of certain Seaboard subsidiaries into a successor plan. 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 any plans in advance of when the benefits are paid. The net periodic benefit cost for all plans was as follows: Three Months Ended Six Months Ended July 3, June 27, July 3, June 27, (Millions of dollars) 2021 2020 2021 2020 Components of net periodic benefit cost: Service cost $ 2 $ 2 $ 5 $ 5 Interest cost 2 3 4 6 Expected return on plan assets (3) (3) (6) (6) Amortization 3 3 5 4 Settlement loss recognized 3 — 3 2 Net periodic benefit cost $ 7 $ 5 $ 11 $ 11 |
Derivatives and Fair Value of F
Derivatives and Fair Value of Financial Instruments | 6 Months Ended |
Jul. 03, 2021 | |
Derivatives and Fair Value of Financial Instruments | |
Derivatives and Fair Value of Financial Instruments | Note 6 – Derivatives and Fair Value of Financial Instruments The following tables show assets and liabilities measured at fair value on a recurring basis as of July 3, 2021 and December 31, 2020, and also the level within the fair value hierarchy used to measure each category of assets and liabilities. The trading securities classified as other current assets below are assets held for Seaboard’s deferred compensation plans. Balance July 3, (Millions of dollars) 2021 Level 1 Level 2 Level 3 Assets: Trading securities – short-term investments: Domestic debt securities $ 685 $ 440 $ 245 $ — Domestic equity securities 456 456 — — Foreign equity securities 193 193 — — Foreign debt securities 117 — 117 — Money market funds held in trading accounts 15 15 — — Other trading securities 18 — 18 — Trading securities – other current assets: Domestic equity securities 15 15 — — Money market fund held in trading accounts 6 6 — — Foreign equity securities 4 4 — — Fixed income mutual funds 3 2 1 — Long-term investment 32 — — 32 Derivatives: Commodities 17 16 1 — Interest rate swaps 6 — 6 — Foreign currencies 9 — 9 — Total Assets $ 1,576 $ 1,147 $ 397 $ 32 Liabilities: Trading securities – short-term investments: Other trading securities $ 1 $ — $ 1 $ — Contingent consideration 15 — — 15 Derivatives: Commodities 33 33 — — Total Liabilities $ 49 $ 33 $ 1 $ 15 Balance 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 fund 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 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. Seaboard’s long-term debt is recorded on the financials at amortized cost. Since most long-term debt is variable-rate, its carrying amount approximates fair value, and would have been classified as level 2. Seaboard has a long-term investment 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” and is valued at net asset value (“NAV”), adjusted for specific liquidity factors, resulting in level 3 classification. The change in value during 2021 is related to equity market activity and is recorded in “Other investment income (loss)”. 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 change in value during 2021 was related to updated foreign currency rates, interest rates and estimated earnings before interest taxes depreciation and amortization projections at the measurement date, and is recorded in “Interest expense”. Seaboard’s operations are exposed to market risks from changes in commodity prices, foreign currency exchange rates, interest rates and equity prices. Seaboard uses various commodity derivative futures and options to manage its risk of price fluctuations for raw materials and other inventories, finished product sales and firm sales commitments. Also, Seaboard enters into foreign currency exchange agreements to manage the foreign currency exchange rate risk with respect to certain transactions denominated in foreign currencies, interest rate swap agreements to manage the interest rate risk with respect to certain variable rate long-term debt, and equity futures contracts to manage the equity price risk with respect to certain short-term investments. While management believes its derivatives are primarily economic hedges, Seaboard does not perform the extensive record-keeping required to account for these types of transactions as hedges for accounting purposes. These derivative contracts are recorded at fair value, with any changes in fair value recognized in the condensed consolidated statements of comprehensive income. As the derivative contracts are not accounted for as hedges, fluctuations in the related prices or rates could have a material impact on earnings in any given reporting period. The nature of Seaboard’s market risk exposure has not changed materially since December 31, 2020. Seaboard had the following aggregated outstanding notional amounts related to derivative financial instruments: July 3, December 31, (Millions) Metric 2021 2020 Commodities Grain Bushels 31 26 Hogs Pounds 1 2 Soybean oil Pounds 9 56 Heating oil Gallons 16 — Foreign currencies U.S. dollar 50 49 Interest rate swaps U.S. dollar 400 400 Equity futures U.S. dollar — 3 During mid-2020, Seaboard entered into interest rate swap agreements that mature in mid-2025. Seaboard pays fixed-rate interest payments at a weighted-average interest rate of 0.26% and receives variable-rate interest payments based on the one-month LIBOR from the counterparty without the exchange of the underlying notional amounts. Credit risks associated with these derivative contracts are not significant as Seaboard minimizes counterparty exposure by dealing with credit-worthy counterparties and uses margin accounts for some contracts. At July 3, 2021, the maximum amount of credit risk, had the counterparties failed to perform according to the terms of the contract, was $15 million. The following table provides the amount of gain or (loss) for each type of derivative and where it was recognized in the condensed consolidated statements of comprehensive income: Three Months Ended Six Months Ended July 3, June 27, July 3, June 27, (Millions of dollars) 2021 2020 2021 2020 Commodities Cost of sales $ (22) $ (4) $ (20) $ 17 Foreign currencies Cost of sales 2 1 3 13 Foreign currencies Foreign currency gains (losses), net 1 — 3 1 Interest rate swaps Interest expense (1) (1) 6 (1) Equity futures Other investment income (loss), net — (5) — 23 The following table provides the fair value of each type of derivative held and where each derivative is included in the condensed consolidated balance sheets: Asset Derivatives Liability Derivatives July 3, December 31, July 3, December 31, (Millions of dollars) 2021 2020 2021 2020 Commodities Other current assets $ 17 $ 28 Other current liabilities $ 33 $ 19 Foreign currencies Other current assets 9 — Other current liabilities — 9 Interest rate swaps Other current assets 6 1 Other current liabilities — — Equity futures Short-term investments — — Short-term investments — — Seaboard’s commodity derivative assets and liabilities are presented in the condensed consolidated balance sheets on a net basis, including netting the derivatives with the related margin accounts. As of July 3, 2021 and December 31, 2020, the commodity derivatives had a margin account balance of $71 million and $15 million, respectively, resulting in a net other current asset in the condensed consolidated balance sheets of $55 million and $24 million, respectively. Seaboard’s equity future 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 | 6 Months Ended |
Jul. 03, 2021 | |
Stockholders' Equity and Accumulated Other Comprehensive Loss | |
Stockholders' Equity and Accumulated Other Comprehensive Loss | Note 7 – 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. During 2020, Seaboard repurchased 4,069 shares of common stock at a total price of $13 million. Shares repurchased were retired and became authorized and unissued shares. The components of accumulated other comprehensive loss, net of related taxes, were as follows: July 3, December 31, (Millions of dollars) 2021 2020 Cumulative foreign currency translation adjustment $ (376) $ (376) Cumulative unrecognized pension cost (90) (95) Total accumulated other comprehensive loss $ (466) $ (471) |
Segment Information
Segment Information | 6 Months Ended |
Jul. 03, 2021 | |
Segment Information | |
Segment Information | Note 8 – Segment Information Seaboard has six reportable segments: Pork, CT&M, Marine, Sugar and Alcohol, Power and Turkey, each offering a specific product or service. For details on the respective products or services of each segment, see Note 15 to the consolidated financial statements included in Seaboard’s annual report on Form 10-K for the year ended December 31, 2020. The following tables present Seaboard’s sales disaggregated by revenue source and segment: Three Months Ended July 3, 2021 Sugar and All Consolidated (Millions of dollars) Pork CT&M Marine Alcohol Power Other Totals Major Products/Services Lines: Products $ 596 $ 1,374 $ — $ 26 $ — $ 4 $ 2,000 Transportation 2 — 319 — — — 321 Energy 89 — — — 11 — 100 Other 6 3 — — — — 9 Segment/Consolidated Totals $ 693 $ 1,377 $ 319 $ 26 $ 11 $ 4 $ 2,430 Three Months Ended June 27, 2020 Sugar and All Consolidated (Millions of dollars) Pork CT&M Marine Alcohol Power Other Totals Major Products/Services Lines: Products $ 409 $ 1,119 $ — $ 18 $ — $ 3 $ 1,549 Transportation 2 — 192 — — — 194 Energy 40 — — — 13 — 53 Other 8 4 — — — — 12 Segment/Consolidated Totals $ 459 $ 1,123 $ 192 $ 18 $ 13 $ 3 $ 1,808 Six Months Ended July 3, 2021 Sugar and All Consolidated (Millions of dollars) Pork CT&M Marine Alcohol Power Other Totals Major Products/Services Lines: Products $ 1,091 $ 2,520 $ — $ 50 $ — $ 7 $ 3,668 Transportation 3 — 619 — — 1 623 Energy 152 — — 2 24 — 178 Other 12 8 — — — — 20 Segment/Consolidated Totals $ 1,258 $ 2,528 $ 619 $ 52 $ 24 $ 8 $ 4,489 Six Months Ended June 27, 2020 Sugar and All Consolidated (Millions of dollars) Pork CT&M Marine Alcohol Power Other Totals Major Products/Services Lines: Products $ 814 $ 2,029 $ — $ 39 $ — $ 9 $ 2,891 Transportation 4 — 461 — — — 465 Energy 80 — — 1 30 — 111 Other 16 8 — — — — 24 Segment/Consolidated Totals $ 914 $ 2,037 $ 461 $ 40 $ 30 $ 9 $ 3,491 The following tables present Seaboard’s operating income (loss) and income (loss) from affiliates by segment. Operating income (loss) for segment reporting is prepared on the same basis as that used for consolidated operating income. Operating income (loss), along with income or loss from affiliates for the Pork, CT&M and Turkey segments, is used as the measure of evaluating segment performance because management does not consider interest, other investment income (loss) and income tax benefit (expense) on a segment basis. Administrative services provided by the corporate office are allocated to the individual segments and represent corporate services rendered to and costs incurred for each specific segment, with no allocation to individual segments of general corporate management oversight costs. Operating Income (Loss): Three Months Ended Six Months Ended July 3, June 27, July 3, June 27, (Millions of dollars) 2021 2020 2021 2020 Pork $ 129 $ 9 $ 190 $ 41 CT&M 16 24 32 54 Marine 32 (11) 53 (17) Sugar and Alcohol (1) (2) — (3) Power (5) (1) (7) 1 All Other — — 1 1 Segment Totals 171 19 269 77 Corporate (6) (10) (12) (5) Consolidated Totals $ 165 $ 9 $ 257 $ 72 Income (Loss) from Affiliates: Three Months Ended Six Months Ended July 3, June 27, July 3, June 27, (Millions of dollars) 2021 2020 2021 2020 Pork $ (6) $ (4) $ (2) $ (3) CT&M 4 — 10 1 Marine 1 1 2 2 Sugar and Alcohol — — — — Power — — — — Turkey (4) (14) (9) (21) Segment/Consolidated Totals $ (5) $ (17) $ 1 $ (21) The following tables present total assets by segment and the investments in and advances to affiliates by segment. Corporate assets primarily include cash and short-term investments, other current assets related to deferred compensation plans, long-term investments and other miscellaneous items. Corporate operating results represent certain operating costs not specifically allocated to individual segments and include costs related to Seaboard’s deferred compensation plans, which are offset by the effect of the mark-to-market adjustments on these investments recorded in other investment income (loss), net. Total Assets: July 3, December 31, (Millions of dollars) 2021 2020 Pork $ 2,137 $ 1,927 CT&M 1,948 1,585 Marine 564 508 Sugar and Alcohol 148 153 Power 329 302 Turkey 255 265 All Other 7 6 Segment Totals 5,388 4,746 Corporate 1,682 1,653 Consolidated Totals $ 7,070 $ 6,399 Investments in and Advances to Affiliates: July 3, December 31, (Millions of dollars) 2021 2020 Pork $ 147 $ 172 CT&M 228 222 Marine 30 30 Sugar and Alcohol 3 6 Power 3 3 Turkey 255 265 Segment/Consolidated Totals $ 666 $ 698 The Turkey segment, accounted for using the equity method, represents Seaboard’s investment in Butterball, LLC (“Butterball”). As of July 3, 2021 and December 31, 2020, Butterball had total assets of $1.2 billion and $993 million, respectively. Butterball’s summarized income statement information was as follows: Three Months Ended Six Months Ended July 3, June 27, July 3, June 27, (Millions of dollars) 2021 2020 2021 2020 Net sales $ 371 $ 327 $ 712 $ 645 Operating loss $ (4) $ (24) $ (20) $ (31) Net loss $ (7) $ (27) $ (18) $ (40) |
Basis of Presentation and Acc_2
Basis of Presentation and Accounting Policies (Policies) | 6 Months Ended |
Jul. 03, 2021 | |
Basis of Presentation and Accounting Policies | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Non-cash investing activities for the six months ended July 3, 2021, included purchases of property, plant and equipment in accounts payable of $28 million. The following table includes supplemental cash and non-cash information related to leases. Seaboard reports the amortization of right of use (“ROU”) assets and changes in operating lease liabilities in other liabilities, exclusive of debt in the condensed consolidated statements of cash flows. Six months ended July 3, June 27, (Millions of dollars) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 75 $ 71 Operating cash flows from finance leases 2 2 Financing cash flows from finance leases 5 3 Operating ROU assets obtained in exchange for new operating lease liabilities $ 84 $ 43 Finance ROU assets obtained in exchange for new finance lease liabilities 6 27 |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The change in the carrying amount of goodwill of $3 million as of July 3, 2021 compared to December 31, 2020 was due to foreign currency exchange differences and other adjustments within the Commodity Trading and Milling (“CT&M”) segment. As of July 3, 2021, other intangible assets, included in other non-current assets, were $50 million, net of accumulated amortization of $27 million. |
Income Taxes | Income Taxes Seaboard computes its year-to-date provision for income taxes by applying the estimated annual effective tax rate to year-to-date pre-tax income or loss and adjusts the provision for discrete tax items recorded in the period. |
Accounting Standards Recently Adopted | Accounting Standard 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 |
Basis of Presentation and Acc_3
Basis of Presentation and Accounting Policies (Tables) | 6 Months Ended |
Jul. 03, 2021 | |
Basis of Presentation and Accounting Policies | |
Summary of supplemental cash and non-cash information related to leases | Six months ended July 3, June 27, (Millions of dollars) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 75 $ 71 Operating cash flows from finance leases 2 2 Financing cash flows from finance leases 5 3 Operating ROU assets obtained in exchange for new operating lease liabilities $ 84 $ 43 Finance ROU assets obtained in exchange for new finance lease liabilities 6 27 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jul. 03, 2021 | |
Investments | |
Summary of the estimated fair value of short-term investments classified as trading securities | July 3, December 31, (Millions of dollars) 2021 2020 Domestic debt securities $ 685 $ 496 Domestic equity securities 456 702 Foreign equity securities 193 133 Foreign debt securities 117 68 Money market funds held in trading accounts 15 47 Other trading securities 17 19 Total trading short-term investments $ 1,483 $ 1,465 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jul. 03, 2021 | |
Inventories | |
Summary of inventories | July 3, December 31, (Millions of dollars) 2021 2020 At lower of FIFO cost and net realizable value (NRV): Hogs and materials $ 467 $ 437 Pork products and materials 46 46 Grains, oilseeds and other commodities 576 380 Biodiesel 122 72 Sugar produced and in process 37 24 Other 43 61 Total inventories at lower of FIFO cost and NRV 1,291 1,020 Grain, flour and feed at lower of weighted average cost and NRV 206 158 Total inventories $ 1,497 $ 1,178 |
Lines of Credit, Long-Term De_2
Lines of Credit, Long-Term Debt, Commitments and Contingencies (Tables) | 6 Months Ended |
Jul. 03, 2021 | |
Lines of Credit, Long-Term Debt, Commitments and Contingencies | |
Summary of long-term debt | July 3, December 31, (Millions of dollars) 2021 2020 Term Loan due 2028 $ 681 $ 684 Foreign subsidiary obligations 1 49 Other long-term debt 39 30 Total debt at face value 721 763 Current maturities and unamortized discount and costs (10) (56) Long-term debt, less current maturities and unamortized discount and costs $ 711 $ 707 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 6 Months Ended |
Jul. 03, 2021 | |
Employee Benefits | |
Schedule of net periodic benefit cost of plans | Three Months Ended Six Months Ended July 3, June 27, July 3, June 27, (Millions of dollars) 2021 2020 2021 2020 Components of net periodic benefit cost: Service cost $ 2 $ 2 $ 5 $ 5 Interest cost 2 3 4 6 Expected return on plan assets (3) (3) (6) (6) Amortization 3 3 5 4 Settlement loss recognized 3 — 3 2 Net periodic benefit cost $ 7 $ 5 $ 11 $ 11 |
Derivatives and Fair Value of_2
Derivatives and Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jul. 03, 2021 | |
Derivatives and Fair Value of Financial Instruments | |
Schedule of assets and liabilities measured at fair value on a recurring basis | Balance July 3, (Millions of dollars) 2021 Level 1 Level 2 Level 3 Assets: Trading securities – short-term investments: Domestic debt securities $ 685 $ 440 $ 245 $ — Domestic equity securities 456 456 — — Foreign equity securities 193 193 — — Foreign debt securities 117 — 117 — Money market funds held in trading accounts 15 15 — — Other trading securities 18 — 18 — Trading securities – other current assets: Domestic equity securities 15 15 — — Money market fund held in trading accounts 6 6 — — Foreign equity securities 4 4 — — Fixed income mutual funds 3 2 1 — Long-term investment 32 — — 32 Derivatives: Commodities 17 16 1 — Interest rate swaps 6 — 6 — Foreign currencies 9 — 9 — Total Assets $ 1,576 $ 1,147 $ 397 $ 32 Liabilities: Trading securities – short-term investments: Other trading securities $ 1 $ — $ 1 $ — Contingent consideration 15 — — 15 Derivatives: Commodities 33 33 — — Total Liabilities $ 49 $ 33 $ 1 $ 15 Balance 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 fund 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 |
Schedule of aggregated outstanding notional amounts related to derivative financial instruments | July 3, December 31, (Millions) Metric 2021 2020 Commodities Grain Bushels 31 26 Hogs Pounds 1 2 Soybean oil Pounds 9 56 Heating oil Gallons 16 — Foreign currencies U.S. dollar 50 49 Interest rate swaps U.S. dollar 400 400 Equity futures U.S. dollar — 3 |
Schedule of gain or (loss) recognized for each type of derivative and its location in the consolidated statements of comprehensive income | Three Months Ended Six Months Ended July 3, June 27, July 3, June 27, (Millions of dollars) 2021 2020 2021 2020 Commodities Cost of sales $ (22) $ (4) $ (20) $ 17 Foreign currencies Cost of sales 2 1 3 13 Foreign currencies Foreign currency gains (losses), net 1 — 3 1 Interest rate swaps Interest expense (1) (1) 6 (1) Equity futures Other investment income (loss), net — (5) — 23 |
Schedule of fair value of each type of derivative and its location in the consolidated balance sheets | Asset Derivatives Liability Derivatives July 3, December 31, July 3, December 31, (Millions of dollars) 2021 2020 2021 2020 Commodities Other current assets $ 17 $ 28 Other current liabilities $ 33 $ 19 Foreign currencies Other current assets 9 — Other current liabilities — 9 Interest rate swaps Other current assets 6 1 Other current liabilities — — Equity futures Short-term investments — — Short-term investments — — |
Stockholders' Equity and Accu_2
Stockholders' Equity and Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jul. 03, 2021 | |
Stockholders' Equity and Accumulated Other Comprehensive Loss | |
Schedule of components of accumulated other comprehensive loss, net of related taxes | July 3, December 31, (Millions of dollars) 2021 2020 Cumulative foreign currency translation adjustment $ (376) $ (376) Cumulative unrecognized pension cost (90) (95) Total accumulated other comprehensive loss $ (466) $ (471) |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jul. 03, 2021 | |
Schedule of sales disaggregated by revenue source and segment | Three Months Ended July 3, 2021 Sugar and All Consolidated (Millions of dollars) Pork CT&M Marine Alcohol Power Other Totals Major Products/Services Lines: Products $ 596 $ 1,374 $ — $ 26 $ — $ 4 $ 2,000 Transportation 2 — 319 — — — 321 Energy 89 — — — 11 — 100 Other 6 3 — — — — 9 Segment/Consolidated Totals $ 693 $ 1,377 $ 319 $ 26 $ 11 $ 4 $ 2,430 Three Months Ended June 27, 2020 Sugar and All Consolidated (Millions of dollars) Pork CT&M Marine Alcohol Power Other Totals Major Products/Services Lines: Products $ 409 $ 1,119 $ — $ 18 $ — $ 3 $ 1,549 Transportation 2 — 192 — — — 194 Energy 40 — — — 13 — 53 Other 8 4 — — — — 12 Segment/Consolidated Totals $ 459 $ 1,123 $ 192 $ 18 $ 13 $ 3 $ 1,808 Six Months Ended July 3, 2021 Sugar and All Consolidated (Millions of dollars) Pork CT&M Marine Alcohol Power Other Totals Major Products/Services Lines: Products $ 1,091 $ 2,520 $ — $ 50 $ — $ 7 $ 3,668 Transportation 3 — 619 — — 1 623 Energy 152 — — 2 24 — 178 Other 12 8 — — — — 20 Segment/Consolidated Totals $ 1,258 $ 2,528 $ 619 $ 52 $ 24 $ 8 $ 4,489 Six Months Ended June 27, 2020 Sugar and All Consolidated (Millions of dollars) Pork CT&M Marine Alcohol Power Other Totals Major Products/Services Lines: Products $ 814 $ 2,029 $ — $ 39 $ — $ 9 $ 2,891 Transportation 4 — 461 — — — 465 Energy 80 — — 1 30 — 111 Other 16 8 — — — — 24 Segment/Consolidated Totals $ 914 $ 2,037 $ 461 $ 40 $ 30 $ 9 $ 3,491 |
Summary of specific financial information related to operating income (loss) | Operating Income (Loss): Three Months Ended Six Months Ended July 3, June 27, July 3, June 27, (Millions of dollars) 2021 2020 2021 2020 Pork $ 129 $ 9 $ 190 $ 41 CT&M 16 24 32 54 Marine 32 (11) 53 (17) Sugar and Alcohol (1) (2) — (3) Power (5) (1) (7) 1 All Other — — 1 1 Segment Totals 171 19 269 77 Corporate (6) (10) (12) (5) Consolidated Totals $ 165 $ 9 $ 257 $ 72 |
Summary of specific financial information related to income (loss) from affiliates | Income (Loss) from Affiliates: Three Months Ended Six Months Ended July 3, June 27, July 3, June 27, (Millions of dollars) 2021 2020 2021 2020 Pork $ (6) $ (4) $ (2) $ (3) CT&M 4 — 10 1 Marine 1 1 2 2 Sugar and Alcohol — — — — Power — — — — Turkey (4) (14) (9) (21) Segment/Consolidated Totals $ (5) $ (17) $ 1 $ (21) |
Summary of specific financial information related to total assets | Total Assets: July 3, December 31, (Millions of dollars) 2021 2020 Pork $ 2,137 $ 1,927 CT&M 1,948 1,585 Marine 564 508 Sugar and Alcohol 148 153 Power 329 302 Turkey 255 265 All Other 7 6 Segment Totals 5,388 4,746 Corporate 1,682 1,653 Consolidated Totals $ 7,070 $ 6,399 |
Summary of specific financial information related to investments in and advances to affiliates | Investments in and Advances to Affiliates: July 3, December 31, (Millions of dollars) 2021 2020 Pork $ 147 $ 172 CT&M 228 222 Marine 30 30 Sugar and Alcohol 3 6 Power 3 3 Turkey 255 265 Segment/Consolidated Totals $ 666 $ 698 |
Butterball | |
Summary of specific financial information related to equity method | Three Months Ended Six Months Ended July 3, June 27, July 3, June 27, (Millions of dollars) 2021 2020 2021 2020 Net sales $ 371 $ 327 $ 712 $ 645 Operating loss $ (4) $ (24) $ (20) $ (31) Net loss $ (7) $ (27) $ (18) $ (40) |
Basis of Presentation and Acc_4
Basis of Presentation and Accounting Policies (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jul. 03, 2021 | Jun. 27, 2020 | Dec. 31, 2020 | Jan. 01, 2020 | |
Supplemental Cash Flow Information | ||||
Capital expenditures included in accounts payable | $ 28 | |||
Operating cash flows from operating leases | 75 | $ 71 | ||
Operating cash flows from finance leases | 2 | 2 | ||
Financing cash flows from finance leases | 5 | 3 | ||
Operating ROU assets obtained in exchange for new operating lease liabilities | 84 | 43 | ||
Finance ROU assets obtained in exchange for new finance lease liabilities | 6 | $ 27 | ||
Goodwill and Other Intangible Assets | ||||
Change in carrying amount of goodwill | 3 | |||
Other intangible assets, net | 50 | |||
Accumulated amortization | 27 | |||
Recently issued accounting standards | ||||
Retained earnings | $ 4,637 | $ 4,287 | ||
ASU 2016-13 | ||||
Recently issued accounting standards | ||||
Retained earnings | $ (3) | |||
Allowance for credit losses | $ 3 |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 03, 2021 | Jun. 27, 2020 | Jul. 03, 2021 | Jun. 27, 2020 | Dec. 31, 2020 | |
Investments | |||||
Total trading short-term investments | $ 1,483 | $ 1,483 | $ 1,465 | ||
Change in unrealized gains (losses) on trading securities | 9 | $ 113 | 17 | $ (97) | |
Denominated in foreign currencies | |||||
Investments | |||||
Total trading short-term investments | 45 | 45 | 29 | ||
Domestic debt securities | |||||
Investments | |||||
Fair Value | 685 | 685 | 496 | ||
Domestic equity securities | |||||
Investments | |||||
Fair Value | 456 | 456 | 702 | ||
Foreign equity securities | |||||
Investments | |||||
Fair Value | 193 | 193 | 133 | ||
Foreign debt securities | |||||
Investments | |||||
Fair Value | 117 | 117 | 68 | ||
Money market funds held in trading accounts | |||||
Investments | |||||
Fair Value | 15 | 15 | 47 | ||
Other trading securities | |||||
Investments | |||||
Fair Value | $ 17 | $ 17 | $ 19 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jul. 03, 2021 | Dec. 31, 2020 |
At lower of FIFO cost and net realizable value (NRV): | ||
Hogs and materials | $ 467 | $ 437 |
Pork products and materials | 46 | 46 |
Grains, oilseeds and other commodities | 576 | 380 |
Biodiesel | 122 | 72 |
Sugar produced and in process | 37 | 24 |
Other | 43 | 61 |
Total inventories at lower of FIFO cost and NRV | 1,291 | 1,020 |
Grain, flour and feed at lower of weighted average cost and NRV | 206 | 158 |
Total inventories | $ 1,497 | $ 1,178 |
Lines of Credit, Long-Term De_3
Lines of Credit, Long-Term Debt, Commitments and Contingencies (Details) $ in Millions | Jun. 28, 2018plaintiff | May 15, 2018USD ($) | Apr. 27, 2018USD ($) | Mar. 20, 2018USD ($) | Jul. 03, 2021USD ($) | Jul. 03, 2021USD ($) | Dec. 31, 2018plaintiff | May 01, 2021USD ($) | Apr. 03, 2021USD ($) | Dec. 31, 2020USD ($) |
Debt Instrument | ||||||||||
Lines of credit outstanding | $ 474 | $ 474 | $ 222 | |||||||
Other long-term debt | 39 | 39 | 30 | |||||||
Total debt at face value | 721 | 721 | 763 | |||||||
Current maturities of long-term debt and unamortized discount | (10) | (10) | (56) | |||||||
Long-term debt, less current maturities | 711 | 711 | 707 | |||||||
Current maturities of long-term debt | 9 | 9 | 55 | |||||||
Contingencies | ||||||||||
Assets | $ 7,070 | $ 7,070 | $ 6,399 | |||||||
Pork Product Purchasers | Pending Litigation | ||||||||||
Contingencies | ||||||||||
Number of plaintiffs | plaintiff | 12 | 3 | ||||||||
Cereoil | ||||||||||
Contingencies | ||||||||||
Percentage of ownership | 45.00% | 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% | 45.00% | ||||||||
Nolston | Nolston Bankruptcy Trustee | Pending Litigation | ||||||||||
Contingencies | ||||||||||
Damages sought | $ 14 | |||||||||
Total liabilities | 29 | |||||||||
Assets | $ 15 | |||||||||
Committed and uncommitted bank lines | ||||||||||
Debt Instrument | ||||||||||
Weighted average interest rate (as a percent) | 2.81% | 2.81% | 3.89% | |||||||
Committed and uncommitted bank lines | Denominated in foreign currencies | ||||||||||
Debt Instrument | ||||||||||
Lines of credit outstanding | $ 236 | $ 236 | ||||||||
Committed and uncommitted bank lines | Denominated in South African Rand | ||||||||||
Debt Instrument | ||||||||||
Lines of credit outstanding | 203 | 203 | ||||||||
Committed and uncommitted bank lines | Denominated in Canadian dollars | ||||||||||
Debt Instrument | ||||||||||
Lines of credit outstanding | 24 | 24 | ||||||||
Uncommitted bank lines | ||||||||||
Debt Instrument | ||||||||||
Lines of credit outstanding | 374 | 374 | $ 222 | |||||||
Committed lines of credit | ||||||||||
Debt Instrument | ||||||||||
Lines of credit outstanding | 0 | |||||||||
Committed credit line #1 | ||||||||||
Debt Instrument | ||||||||||
Lines of credit outstanding | 100 | 100 | ||||||||
Maximum capacity | 250 | 250 | $ 100 | |||||||
Committed credit line #2 | ||||||||||
Debt Instrument | ||||||||||
Maximum capacity | $ 250 | |||||||||
Term loan due 2028 | ||||||||||
Debt Instrument | ||||||||||
Debt at face value | $ 681 | $ 681 | $ 684 | |||||||
Effective interest rate (as a percent) | 1.73% | 1.73% | 1.77% | |||||||
Foreign subsidiary obligations | ||||||||||
Debt Instrument | ||||||||||
Debt at face value | $ 1 | $ 1 | $ 49 | |||||||
Foreign subsidiary obligations | Weighted Average | ||||||||||
Debt Instrument | ||||||||||
Effective interest rate (as a percent) | 7.34% | 7.34% | 3.51% | |||||||
Foreign subsidiary obligations | Denominated in Euros | ||||||||||
Debt Instrument | ||||||||||
Total debt at face value | $ 46 | |||||||||
Equipment loan | ||||||||||
Debt Instrument | ||||||||||
Interest rate (as a percent) | 5.60% | 5.60% | ||||||||
Long-term debt assumed | $ 9 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2021 | Jun. 27, 2020 | Jul. 03, 2021 | Jun. 27, 2020 | |
Components of net periodic benefit cost: | ||||
Service cost | $ 2 | $ 2 | $ 5 | $ 5 |
Interest cost | 2 | 3 | 4 | 6 |
Expected return on plan assets | (3) | (3) | (6) | (6) |
Amortization | 3 | 3 | 5 | 4 |
Settlement loss recognized | 3 | 3 | 2 | |
Net periodic benefit cost | $ 7 | $ 5 | $ 11 | $ 11 |
Derivatives and Fair Value of_3
Derivatives and Fair Value of Financial Instruments-Deferred Comp Securities (Details) - USD ($) $ in Millions | Jul. 03, 2021 | Dec. 31, 2020 |
Commodities | ||
Assets: | ||
Derivative assets and liabilities, net basis | $ 55 | $ 24 |
Domestic debt securities | ||
Assets: | ||
Trading securities | 685 | 496 |
Domestic equity securities | ||
Assets: | ||
Trading securities | 456 | 702 |
Foreign equity securities | ||
Assets: | ||
Trading securities | 193 | 133 |
Money market funds held in trading accounts | ||
Assets: | ||
Trading securities | 15 | 47 |
Other trading securities | ||
Assets: | ||
Trading securities | 17 | 19 |
Recurring basis | Level 1 | ||
Assets: | ||
Total assets | 1,147 | 1,134 |
Liabilities: | ||
Total liabilities | 33 | 19 |
Recurring basis | Level 1 | Commodities | ||
Assets: | ||
Derivatives | 16 | 28 |
Liabilities: | ||
Derivatives | 33 | 19 |
Recurring basis | Level 1 | Domestic debt securities | Short-term investments | ||
Assets: | ||
Trading securities | 440 | 196 |
Recurring basis | Level 1 | Domestic equity securities | Short-term investments | ||
Assets: | ||
Trading securities | 456 | 702 |
Recurring basis | Level 1 | Domestic equity securities | Other current assets | ||
Assets: | ||
Trading securities | 15 | 14 |
Recurring basis | Level 1 | Foreign equity securities | Short-term investments | ||
Assets: | ||
Trading securities | 193 | 133 |
Recurring basis | Level 1 | Foreign equity securities | Other current assets | ||
Assets: | ||
Trading securities | 4 | 3 |
Recurring basis | Level 1 | Money market funds held in trading accounts | Short-term investments | ||
Assets: | ||
Trading securities | 15 | 47 |
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 securities | Short-term investments | ||
Assets: | ||
Trading securities | 3 | |
Recurring basis | Level 1 | Fixed income mutual funds | Other current assets | ||
Assets: | ||
Trading securities | 2 | 2 |
Recurring basis | Level 2 | ||
Assets: | ||
Total assets | 397 | 387 |
Liabilities: | ||
Total liabilities | 1 | 10 |
Recurring basis | Level 2 | Commodities | ||
Assets: | ||
Derivatives | 1 | |
Recurring basis | Level 2 | Interest rate swaps | ||
Assets: | ||
Derivatives | 6 | 1 |
Recurring basis | Level 2 | Foreign currencies | ||
Assets: | ||
Derivatives | 9 | |
Liabilities: | ||
Derivatives | 9 | |
Recurring basis | Level 2 | Domestic debt securities | Short-term investments | ||
Assets: | ||
Trading securities | 245 | 300 |
Recurring basis | Level 2 | Foreign debt securities | Short-term investments | ||
Assets: | ||
Trading securities | 117 | 68 |
Recurring basis | Level 2 | Other trading securities | ||
Liabilities: | ||
Derivatives | 1 | |
Recurring basis | Level 2 | Other trading securities | Short-term investments | ||
Assets: | ||
Trading securities | 18 | 17 |
Liabilities: | ||
Derivatives | 1 | |
Recurring basis | Level 2 | Fixed income mutual funds | Other current assets | ||
Assets: | ||
Trading securities | 1 | 1 |
Recurring basis | Level 3 | ||
Assets: | ||
Total assets | 32 | 31 |
Liabilities: | ||
Contingent consideration | 15 | 16 |
Total liabilities | 15 | 16 |
Recurring basis | Level 3 | Long-term investments | ||
Assets: | ||
Long-term equity investment | 32 | 31 |
Recurring basis | Fair Value | ||
Assets: | ||
Total assets | 1,576 | 1,552 |
Liabilities: | ||
Contingent consideration | 15 | 16 |
Total liabilities | 49 | 45 |
Recurring basis | Fair Value | Commodities | ||
Assets: | ||
Derivatives | 17 | 28 |
Liabilities: | ||
Derivatives | 33 | 19 |
Recurring basis | Fair Value | Interest rate swaps | ||
Assets: | ||
Derivatives | 6 | 1 |
Recurring basis | Fair Value | Foreign currencies | ||
Assets: | ||
Derivatives | 9 | |
Liabilities: | ||
Derivatives | 9 | |
Recurring basis | Fair Value | Long-term investments | ||
Assets: | ||
Long-term equity investment | 32 | 31 |
Recurring basis | Fair Value | Domestic debt securities | Short-term investments | ||
Assets: | ||
Trading securities | 685 | 496 |
Recurring basis | Fair Value | Domestic equity securities | Short-term investments | ||
Assets: | ||
Trading securities | 456 | 702 |
Recurring basis | Fair Value | Domestic equity securities | Other current assets | ||
Assets: | ||
Trading securities | 15 | 14 |
Recurring basis | Fair Value | Foreign equity securities | Short-term investments | ||
Assets: | ||
Trading securities | 193 | 133 |
Recurring basis | Fair Value | Foreign equity securities | Other current assets | ||
Assets: | ||
Trading securities | 4 | 3 |
Recurring basis | Fair Value | Foreign debt securities | Short-term investments | ||
Assets: | ||
Trading securities | 117 | 68 |
Recurring basis | Fair Value | Money market funds held in trading accounts | Short-term investments | ||
Assets: | ||
Trading securities | 15 | 47 |
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 securities | ||
Liabilities: | ||
Derivatives | 1 | |
Recurring basis | Fair Value | Other trading securities | Short-term investments | ||
Assets: | ||
Trading securities | 18 | 20 |
Liabilities: | ||
Derivatives | 1 | |
Recurring basis | Fair Value | Fixed income mutual funds | Other current assets | ||
Assets: | ||
Trading securities | $ 3 | $ 3 |
Derivatives and Fair Value of_4
Derivatives and Fair Value of Financial Instruments-Derivatives (Details) lb in Millions, gal in Millions, bu in Millions, $ in Millions | 6 Months Ended | 12 Months Ended |
Jul. 03, 2021USD ($)lbgalbu | Dec. 31, 2020USD ($)lbbu | |
Grain | ||
Derivative commodity instruments | ||
Nonmonetary notional amount | bu | 31 | 26 |
Hogs | ||
Derivative commodity instruments | ||
Nonmonetary notional amount | lb | 1 | 2 |
Soybean oil | ||
Derivative commodity instruments | ||
Nonmonetary notional amount | lb | 9 | 56 |
Heating oil | ||
Derivative commodity instruments | ||
Nonmonetary notional amount | gal | 16 | |
Equity future contracts | ||
Derivative commodity instruments | ||
Notional amounts | $ 3 | |
Foreign currencies | ||
Derivative commodity instruments | ||
Notional amounts | $ 50 | 49 |
Interest rate swaps | ||
Derivative commodity instruments | ||
Notional amounts | $ 400 | $ 400 |
Interest rate swaps | Weighted Average | ||
Derivative commodity instruments | ||
Fixed rate interest | 0.26% |
Derivatives and Fair Value of_5
Derivatives and Fair Value of Financial Instruments-Counterparty Risk (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2021 | Jun. 27, 2020 | Jul. 03, 2021 | Jun. 27, 2020 | |
Commodities | Cost of sales | ||||
Derivatives | ||||
Gains (losses) on derivatives | $ (22) | $ (4) | $ (20) | $ 17 |
Foreign currencies | Cost of sales | ||||
Derivatives | ||||
Gains (losses) on derivatives | 2 | 1 | 3 | 13 |
Foreign currencies | Foreign currency gains (losses), net | ||||
Derivatives | ||||
Gains (losses) on derivatives | 1 | 3 | 1 | |
Interest rate swaps | ||||
Derivatives | ||||
Credit risk associated with derivative contracts | 15 | |||
Interest rate swaps | Interest expense | ||||
Derivatives | ||||
Gains (losses) on derivatives | $ (1) | (1) | $ 6 | (1) |
Equity | Other investment income (loss), net | ||||
Derivatives | ||||
Gains (losses) on derivatives | $ (5) | $ 23 |
Derivatives and Fair Value of_6
Derivatives and Fair Value of Financial Instruments-Derivatives Fair Value (Details) - USD ($) $ in Millions | Jul. 03, 2021 | Dec. 31, 2020 |
Commodities | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Margin account | $ 71 | $ 15 |
Derivative assets and liabilities, net basis | 55 | 24 |
Commodities | Other current assets | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Asset Derivatives | 17 | 28 |
Commodities | Other current liabilities | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Liability Derivatives | 33 | 19 |
Foreign currencies | Other current assets | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Asset Derivatives | 9 | |
Foreign currencies | Other current liabilities | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Liability Derivatives | 9 | |
Interest rate swaps | Other current assets | ||
Fair value of each type of derivative and its location in the Consolidated Balance Sheets | ||
Asset Derivatives | $ 6 | $ 1 |
Stockholders' Equity and Accu_3
Stockholders' Equity and Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 28, 2020 | Dec. 31, 2020 | Jul. 03, 2021 | |
Stockholders' Equity and Accumulated Other Comprehensive Loss | |||
Common shares repurchased (in shares) | 4,069 | ||
Repurchase of common stock | $ 13 | $ 13 | |
Components of accumulated other comprehensive loss, net of related taxes | |||
Accumulated other comprehensive loss | (471) | $ (466) | |
Cumulative foreign currency translation adjustment | |||
Components of accumulated other comprehensive loss, net of related taxes | |||
Accumulated other comprehensive loss | (376) | (376) | |
Cumulative unrecognized pension cost | |||
Components of accumulated other comprehensive loss, net of related taxes | |||
Accumulated other comprehensive loss | $ (95) | $ (90) |
Segment Information - Disaggreg
Segment Information - Disaggregation of sales (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2021USD ($) | Jun. 27, 2020USD ($) | Jul. 03, 2021USD ($)segment | Jun. 27, 2020USD ($) | |
Revenue Recognition | ||||
Number of reportable segments | segment | 6 | |||
Net sales | $ 2,430 | $ 1,808 | $ 4,489 | $ 3,491 |
Products | ||||
Revenue Recognition | ||||
Net sales | 2,089 | 1,589 | 3,820 | 2,971 |
Other | ||||
Revenue Recognition | ||||
Net sales | 11 | 13 | 26 | 31 |
Pork | ||||
Revenue Recognition | ||||
Net sales | 693 | 459 | 1,258 | 914 |
Pork | Products | ||||
Revenue Recognition | ||||
Net sales | 596 | 409 | 1,091 | 814 |
Pork | Transportation | ||||
Revenue Recognition | ||||
Net sales | 2 | 2 | 3 | 4 |
Pork | Energy | ||||
Revenue Recognition | ||||
Net sales | 89 | 40 | 152 | 80 |
Pork | Other | ||||
Revenue Recognition | ||||
Net sales | 6 | 8 | 12 | 16 |
CT&M | ||||
Revenue Recognition | ||||
Net sales | 1,377 | 1,123 | 2,528 | 2,037 |
CT&M | Products | ||||
Revenue Recognition | ||||
Net sales | 1,374 | 1,119 | 2,520 | 2,029 |
CT&M | Other | ||||
Revenue Recognition | ||||
Net sales | 3 | 4 | 8 | 8 |
Marine | ||||
Revenue Recognition | ||||
Net sales | 319 | 192 | 619 | 461 |
Marine | Transportation | ||||
Revenue Recognition | ||||
Net sales | 319 | 192 | 619 | 461 |
Sugar and Alcohol | ||||
Revenue Recognition | ||||
Net sales | 26 | 18 | 52 | 40 |
Sugar and Alcohol | Products | ||||
Revenue Recognition | ||||
Net sales | 26 | 18 | 50 | 39 |
Sugar and Alcohol | Energy | ||||
Revenue Recognition | ||||
Net sales | 2 | 1 | ||
Power | ||||
Revenue Recognition | ||||
Net sales | 11 | 13 | 24 | 30 |
Power | Energy | ||||
Revenue Recognition | ||||
Net sales | 11 | 13 | 24 | 30 |
All Other | ||||
Revenue Recognition | ||||
Net sales | 4 | 3 | 8 | 9 |
All Other | Products | ||||
Revenue Recognition | ||||
Net sales | 4 | 3 | 7 | 9 |
All Other | Transportation | ||||
Revenue Recognition | ||||
Net sales | 1 | |||
Segment Totals | ||||
Revenue Recognition | ||||
Net sales | 2,430 | 1,808 | 4,489 | 3,491 |
Segment Totals | Products | ||||
Revenue Recognition | ||||
Net sales | 2,000 | 1,549 | 3,668 | 2,891 |
Segment Totals | Transportation | ||||
Revenue Recognition | ||||
Net sales | 321 | 194 | 623 | 465 |
Segment Totals | Energy | ||||
Revenue Recognition | ||||
Net sales | 100 | 53 | 178 | 111 |
Segment Totals | Other | ||||
Revenue Recognition | ||||
Net sales | $ 9 | $ 12 | $ 20 | $ 24 |
Segment Information-Information
Segment Information-Information by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 03, 2021 | Jun. 27, 2020 | Jul. 03, 2021 | Jun. 27, 2020 | Dec. 31, 2020 | |
Segment Information | |||||
Operating Income (Loss) | $ 165 | $ 9 | $ 257 | $ 72 | |
Income (loss) from affiliates | (5) | (17) | 1 | (21) | |
Total assets | 7,070 | 7,070 | $ 6,399 | ||
Investment in and Advances to Affiliates | 666 | 666 | 698 | ||
Pork | |||||
Segment Information | |||||
Operating Income (Loss) | 129 | 9 | 190 | 41 | |
Income (loss) from affiliates | (6) | (4) | (2) | (3) | |
Investment in and Advances to Affiliates | 147 | 147 | 172 | ||
CT&M | |||||
Segment Information | |||||
Operating Income (Loss) | 16 | 24 | 32 | 54 | |
Income (loss) from affiliates | 4 | 10 | 1 | ||
Investment in and Advances to Affiliates | 228 | 228 | 222 | ||
Marine | |||||
Segment Information | |||||
Operating Income (Loss) | 32 | (11) | 53 | (17) | |
Income (loss) from affiliates | 1 | 1 | 2 | 2 | |
Investment in and Advances to Affiliates | 30 | 30 | 30 | ||
Sugar and Alcohol | |||||
Segment Information | |||||
Operating Income (Loss) | (1) | (2) | (3) | ||
Investment in and Advances to Affiliates | 3 | 3 | 6 | ||
Power | |||||
Segment Information | |||||
Operating Income (Loss) | (5) | (1) | (7) | 1 | |
Investment in and Advances to Affiliates | 3 | 3 | 3 | ||
Turkey | |||||
Segment Information | |||||
Income (loss) from affiliates | (4) | (14) | (9) | (21) | |
Investment in and Advances to Affiliates | 255 | 255 | 265 | ||
All Other | |||||
Segment Information | |||||
Operating Income (Loss) | 1 | 1 | |||
Segment Totals | |||||
Segment Information | |||||
Operating Income (Loss) | 171 | 19 | 269 | 77 | |
Income (loss) from affiliates | (5) | (17) | 1 | (21) | |
Total assets | 5,388 | 5,388 | 4,746 | ||
Segment Totals | Pork | |||||
Segment Information | |||||
Total assets | 2,137 | 2,137 | 1,927 | ||
Segment Totals | CT&M | |||||
Segment Information | |||||
Total assets | 1,948 | 1,948 | 1,585 | ||
Segment Totals | Marine | |||||
Segment Information | |||||
Total assets | 564 | 564 | 508 | ||
Segment Totals | Sugar and Alcohol | |||||
Segment Information | |||||
Total assets | 148 | 148 | 153 | ||
Segment Totals | Power | |||||
Segment Information | |||||
Total assets | 329 | 329 | 302 | ||
Segment Totals | Turkey | |||||
Segment Information | |||||
Total assets | 255 | 255 | 265 | ||
Segment Totals | All Other | |||||
Segment Information | |||||
Total assets | 7 | 7 | 6 | ||
Corporate | |||||
Segment Information | |||||
Operating Income (Loss) | (6) | $ (10) | (12) | $ (5) | |
Total assets | $ 1,682 | $ 1,682 | $ 1,653 |
Segment Information - Turkey (D
Segment Information - Turkey (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jul. 03, 2021 | Apr. 03, 2021 | Jun. 27, 2020 | Mar. 28, 2020 | Jul. 03, 2021 | Jun. 27, 2020 | Dec. 31, 2020 | |
Segment Information | |||||||
Total assets | $ 7,070 | $ 7,070 | $ 6,399 | ||||
Net earnings (loss) | 176 | $ 179 | $ (27) | $ (103) | 355 | $ (130) | |
Turkey | Butterball | |||||||
Segment Information | |||||||
Total assets | 1,200 | 1,200 | $ 993 | ||||
Net sales | 371 | 327 | 712 | 645 | |||
Operating loss | (4) | (24) | (20) | (31) | |||
Net earnings (loss) | $ (7) | $ (27) | $ (18) | $ (40) |