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Derivatives and Fair Value of Financial Instruments (Tables)
 9 Months Ended
Oct. 03, 2015
Derivatives and Fair Value of Financial Instruments  
Schedule of assets and liabilities measured at fair value on a recurring basis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Balance

    

 

 

    

 

 

    

 

 

 

 

 

October 3,

 

 

 

 

 

 

 

 

 

 

(Thousands of dollars)

 

2015

 

Level 1

Level 2

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$
100,648

 

$
100,648

 

$

 -

 

$

 -

 

Trading securities – short term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

  Domestic equity securities

 

 
158,815

 

 
158,815

 

 

 -

 

 

 -

 

High yield debt securities

 

 
122,178

 

 

 -

 

 
122,178

 

 

 -

 

Domestic equity mutual funds

 

 
80,525

 

 
80,525

 

 

 -

 

 

 -

 

Domestic equity ETFs

 

 
77,443

 

 
77,443

 

 

 -

 

 

 -

 

Foreign equity securities

 

 
76,669

 

 
76,669

 

 

 -

 

 

 -

 

Money market funds held in trading accounts

 

 
40,152

 

 
40,152

 

 

 -

 

 

 -

 

Foreign equity mutual fund

 

 
19,831

 

 
19,831

 

 

 -

 

 

 -

 

Collateralized loan obligation

 

 
9,791

 

 

 -

 

 
9,791

 

 

 -

 

Other trading securities

 

 
3,391

 

 
2,187

 

 
1,204

 

 

 -

 

Trading securities – other current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic equity securities

 

 
34,044

 

 
34,044

 

 

 -

 

 

 -

 

Foreign equity securities

 

 
6,246

 

 
6,246

 

 

 -

 

 

 -

 

Fixed income mutual funds

 

 
3,366

 

 
3,366

 

 

 -

 

 

 -

 

Other

 

 
3,104

 

 
2,617

 

 
487

 

 

 -

 

Derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodities (1)

 

 
9,639

 

 
9,639

 

 

 -

 

 

 -

 

Foreign currencies

 

 
1,715

 

 

 -

 

 
1,715

 

 

 -

 

Total Assets

 

$
747,557

 

$
612,182

 

$
135,375

 

$

 -

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodities (1)

 

$
21,739

 

$
21,739

 

$

 -

 

$

 -

 

Interest rate swaps

 

 
8,714

 

 

 -

 

 
8,714

 

 

 -

 

Foreign currencies

 

 
1,417

 

 

 -

 

 
1,417

 

 

 -

 

Total Liabilities

 

$
31,870

 

$
21,739

 

$
10,131

 

$

 -

 

 

(1)

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 October 3, 2015, the commodity derivatives had a margin account balance of $34,852,000 resulting in a net other current asset in the Condensed Consolidated Balance Sheet of $22,949,000 and a net other current liability of $197,000.

 

 

The following table shows assets and liabilities measured at fair value on a recurring basis as of December 31, 2014 and also the level within the fair value hierarchy used to measure each category of assets.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Balance

    

 

 

    

 

 

    

 

 

 

 

 

December 31,

 

 

 

 

 

 

 

 

 

 

(Thousands of dollars)

 

2014

 

Level 1

Level 2

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities – short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$
142,432

 

$
142,432

 

$

 -

 

$

 -

 

Corporate bonds

 

 
11,015

 

 

 -

 

 
11,015

 

 

 -

 

U.S. Government agency securities

 

 
9,666

 

 

 -

 

 
9,666

 

 

 -

 

Other available-for-sale securities

 

 
3,983

 

 

 -

 

 
3,983

 

 

 -

 

Trading securities – short term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

High yield debt securities

 

 
181,483

 

 

 -

 

 
181,483

 

 

 -

 

Domestic equity mutual fund

 

 
82,542

 

 
82,542

 

 

 -

 

 

 -

 

Domestic equity ETF

 

 
32,651

 

 
32,651

 

 

 -

 

 

 -

 

Money market funds held in trading accounts

 

 
21,401

 

 
21,401

 

 

 -

 

 

 -

 

Other trading securities

 

 
5,393

 

 
2,614

 

 
2,779

 

 

 -

 

Trading securities – other current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic equity securities

 

 
33,857

 

 
33,857

 

 

 -

 

 

 -

 

Foreign equity securities

 

 
6,532

 

 
6,532

 

 

 -

 

 

 -

 

Fixed income mutual funds

 

 
4,570

 

 
4,570

 

 

 -

 

 

 -

 

Other

 

 
2,676

 

 
2,405

 

 
271

 

 

 -

 

Derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodities (1)

 

 
6,136

 

 
6,136

 

 

 -

 

 

 -

 

Foreign currencies

 

 
1,675

 

 

 -

 

 
1,675

 

 

 -

 

Total Assets

 

$
546,012

 

$
335,140

 

$
210,872

 

$

 -

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodities (1)

 

$
1,779

 

$
1,779

 

$

 -

 

$

 -

 

Interest rate swaps

 

 
7,715

 

 

 -

 

 
7,715

 

 

 -

 

Foreign currencies

 

 
407

 

 

 -

 

 
407

 

 

 -

 

Total Liabilities

 

$
9,901

 

$
1,779

 

$
8,122

 

$

 -

 

 

(1)

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 December 31, 2014, the commodity derivatives had a margin account balance of $4,314,000 resulting in a net other current asset in the Condensed Consolidated Balance Sheet of $9,267,000 and a net other current liability of $596,000.

 

Schedule of gain or (loss) recognized for each type of derivative and its location in the Condensed Consolidated Statements of Comprehensive Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

 

 

October 3,

 

September 27,

 

October 3,

 

September 27,

 

(Thousands of dollars)

    

 

    

2015

    

2014

    

2015

    

2014

 

Commodities

 

Cost of sales

 

$
(15,945)

 

$
(296)

 

$
(18,007)

 

$
3,082

 

Foreign currencies

 

Cost of sales

 

 
3,820

 

 
1,957

 

 
5,241

 

 
4,770

 

Foreign currencies

 

Foreign currency

 

 
352

 

 
3,145

 

 
1,954

 

 
2,725

 

Interest rate

 

Miscellaneous, net

 

 
(4,994)

 

 
91

 

 
(6,117)

 

 
(3,804)

 

 

Schedule of fair value of each type of derivative and its location in the Condensed Consolidated Balance Sheets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Derivatives

 

 

 

Liability Derivatives

 

 

 

 

 

October 3,

 

December 31,

 

 

 

October 3,

 

December 31,

 

(Thousands of dollars)

    

 

    

2015

    

2014

    

 

    

2015

    

2014

 

Commodities(1)

 

Other current assets

 

$
9,639

 

$
6,136

 

Other current liabilities

 

$
21,739

 

$
1,779

 

Foreign currencies

 

Other current assets

 

 
1,715

 

 
1,675

 

Other current liabilities

 

 
1,417

 

 
407

 

Interest rate

 

Other current assets

 

 

 -

 

 

 -

 

Other current liabilities

 

 
8,714

 

 
7,715

 

 

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 October 3, 2015 and December 31, 2014, the commodity derivatives had a margin account balance of $34,852,000 and $4,314,000, respectively, resulting in a net other current asset in the Condensed Consolidated Balance Sheets of $22,949,000 and $9,267,000, respectively and a net other current liability of  $197,000 and $596,000, respectively.