Investments

6 Months Ended

Jul. 02, 2011

Investments

Investments

Note 2 — Investments

Seaboard’s short-term investments are treated as either available-for-sale securities or trading securities.  All of Seaboard’s available-for-sale and trading securities are classified as current assets as they are readily available to support Seaboard’s current operating needs.  Available-for-sale securities are recorded at their estimated fair value with unrealized gains and losses reported, net of tax, as a separate component of accumulated other comprehensive income.  Trading securities are recorded at their estimated fair value with unrealized gains and losses reflected in the statement of earnings.

As of July 2, 2011 and December 31, 2010, the available-for-sale investments primarily consisted of money market funds, fixed rate municipal notes and bonds, corporate bonds, fixed income mutual funds and U.S. Government obligations.  At July 2, 2011, money market funds included $55,229,000 denominated in Euros.  At July 2, 2011 and December 31, 2010, amortized cost and estimated fair value were not materially different for these investments.

As of July 2, 2011, the trading securities primarily consisted of high yield debt securities.  Unrealized (losses) gains related to trading securities for the three and six months ended July 2, 2011 were $(203,000) and $1,366,000, respectively, and $(490,000) and $928,000 for the three and six months ended July 3, 2010, respectively.

The following is a summary of the amortized cost and estimated fair value of short-term investments for both available-for-sale and trading securities at July 2, 2011 and December 31, 2010.

	2011				2010
	Amortized		Fair		Amortized		Fair
(Thousands of dollars)	Cost		Value		Cost		Value
Corporate bonds	$	94,286	$	95,903	$	86,182	$	87,401
Fixed income mutual funds	78,120		78,821		60,256		60,302
Money market funds	72,622		72,622		110,164		110,164
Fixed rate municipal notes and bonds	17,981		18,110		20,564		20,648
U.S. Government agency securities	16,279		16,286		17,503		17,514
U.S. Treasury securities	5,739		5,762		7,139		7,148
Variable rate demand notes	3,200		3,200		—		—
Asset backed debt securities	3,063		3,058		2,847		2,848
Other	800		801		2,360		2,355
Total available-for-sale short-term investments	292,090		294,563		307,015		308,380
High yield trading debt securities	20,206		21,261		19,447		20,783
Other trading debt securities	4,083		4,393		2,807		3,042
Total available-for-sale and trading short-term investments	$	316,379	$	320,217	$	329,269	$	332,205

The following table summarizes the estimated fair value of fixed rate securities designated as available-for-sale classified by the contractual maturity date of the security as of July 2, 2011.

(Thousands of dollars)	2011
Due within one year	$	21,600
Due after one year through three years	60,853
Due after three years	22,170
Total fixed rate securities	$	104,623

In addition to its short-term investments, Seaboard also has trading securities related to Seaboard’s deferred compensation plans classified in other current assets on the Condensed Consolidated Balance Sheets.  See Note 5 to the Condensed Consolidated Financial Statements for information on the types of trading securities held related to the deferred compensation plans.