Note 9 – Stockholders’ Equity and Accumulated Other Comprehensive Loss

Seaboard has a share repurchase program in place that was approved by its Board of Directors and is in effect through October 31, 2019. As of June 30, 2018, the authorized amount of repurchases under the share repurchase program remained at $100 million. Seaboard did not repurchase any shares of common stock during the three and six months ended June 30, 2018. Under this share repurchase program, Seaboard is authorized to repurchase its common stock from time to time in open market or privately negotiated purchases, which may be above or below the traded market price. During the period that the share repurchase program remains in effect, from time to time, Seaboard may enter into a 10b5‑1 plan authorizing a third party to make such purchases on behalf of Seaboard. All stock repurchased will be made in compliance with applicable legal requirements and funded by cash on hand. The timing of the repurchases and the number of shares repurchased at any given time will depend upon market conditions, compliance with SEC regulations, and other factors. The Board of Directors’ stock repurchase authorization does not obligate Seaboard to acquire a specific amount of common stock, and the stock repurchase program may be suspended at any time at Seaboard’s discretion.

The changes in the components of other comprehensive income (loss), net of related taxes, are as follows:



	Three Months Ended				Six Months Ended
	June 30,		July 1,		June 30,		July 1,
(Millions of dollars)	2018		2017		2018		2017
Foreign currency translation adjustment	$	(17)	$	1	$	(27)	$	(1)
Unrealized gain on investments (1)		—		2		—		3
Unrecognized pension cost (2)		(3)		1		(2)		2
Other comprehensive income (loss), net of tax	$	(20)	$	4	$	(29)	$	4

⁽¹⁾

Effective January 1, 2018, upon adoption of new guidance, all unrealized gains (losses) on investments are included in the condensed consolidated statement of comprehensive income. The accumulated other comprehensive income balance as of December 31, 2017, was reclassified to retained earnings on January 1, 2018.

⁽²⁾

This primarily represents the amortization of actuarial losses that were included in net periodic benefit cost and recorded in operating income and other actuarial adjustments. See Note 7 to the condensed consolidated financial statements for further discussion.

The components of accumulated other comprehensive loss, net of related taxes, are as follows:



	June 30,		December 31,
(Millions of dollars)	2018		2017
Cumulative foreign currency translation adjustment	$	(324)	$	(297)
Unrealized gain on investments		—		7
Unrecognized pension cost		(66)		(64)
Total accumulated other comprehensive loss	$	(390)	$	(354)

The foreign currency translation adjustment primarily represents the effect of the Argentine peso currency exchange fluctuation on the net assets of the Sugar segment. During the three and six month periods of 2018, Seaboard recognized $18 million and $29 million, respectively, of other comprehensive loss related to the devaluation of the Argentine peso. Management cannot predict the volatility in the currency exchange rate. Argentina was determined by management to be a highly inflationary economy in the second quarter of 2018, and as a result, the Sugar segment’s functional currency will be U.S. dollars effective in the third quarter of 2018 until the economic environment stabilizes. See Note 1 to the condensed consolidated financial statements for further discussion of this determination and its impact.

For the six month period ended June 30, 2018, less than $1 million of income taxes for the cumulative foreign currency translation adjustment was recorded because substantially all of the adjustment related to foreign subsidiaries for which no tax benefit was recorded. See Note 5 for discussion of the election to change the tax status of a wholly-owned subsidiary from a partnership to a corporation. At July 1, 2017, income taxes for the cumulative foreign currency translation adjustment was recorded using a 35% effective tax rate except for $89 million related to certain subsidiaries for which no tax benefit was recorded. At June 30, 2018 and July 1, 2017, income taxes for the cumulative unrecognized pension cost were recorded using an effective tax rate of 26% and 39%, respectively, except for unrecognized pension cost of $22 million and $19 million, respectively, related to employees at certain subsidiaries for which no tax benefit was recorded.