Note 9 – Revenue Recognition

Seaboard has multiple segments with diverse revenue streams. The following table presents Seaboard’s sales disaggregated by revenue source and segment:



		Three Months Ended March 30, 2019
(Millions of dollars)		Pork		Commodity Trading & Milling		Marine		Sugar and Alcohol		Power		All Other		Consolidated Totals
Major Products/Services Lines:
Products	$	357	$	826	$	—	$	25	$	—	$	3	$	1,211
Transportation		4		—		254		—		—		—		258
Energy		34		—		—		—		29		—		63
Other		8		3		—		—		—		—		11
Segment/Consolidated Totals	$	403	$	829	$	254	$	25	$	29	$	3	$	1,543



		Three Months Ended March 31, 2018
(Millions of dollars)		Pork		Commodity Trading & Milling		Marine		Sugar and Alcohol		Power		All Other		Consolidated Totals
Major Products/Services Lines:
Products	$	361	$	781	$	—	$	50	$	—	$	4	$	1,196
Transportation		4		—		249		—		—		—		253
Energy		93		—		—		1		23		—		117
Other		8		5		—		—		—		—		13
Segment/Consolidated Totals	$	466	$	786	$	249	$	51	$	23	$	4	$	1,579

Revenue from goods and services transferred to customers at a single point in time accounted for approximately 85% of Seaboard’s net sales for the three months ended March 30, 2019 and March 31, 2018. Substantially all of the sales in Seaboard’s Marine segment are recognized ratably over the transit time for each voyage as Seaboard believes this is a faithful depiction of the performance obligation to its customers. Almost all of Seaboard’s contracts with its customers are short-term, defined as less than one year. As of March 30, 2019, Seaboard had $11 million of remaining performance obligations that extend beyond one year, of which 43% is expected to be recognized as net sales in 2019 and the remaining balance in 2020.

Deferred revenue represents cash payments received in advance of Seaboard’s performance or revenue billed that is unearned. The CT&M segment requires certain customers to pay in advance or upon delivery to avoid collection risk. The Marine segment’s deferred revenue balance primarily relates to the unearned portion of billed revenue when a ship is on the water and has not arrived at the designated port. The Pork segment has a marketing agreement with Triumph Foods, LLC, of which certain fees paid at commencement are recognized over the term of the agreement. Deferred revenue balances are reduced when revenue is recognized. Deferred revenue recognized as revenue for the three months ended March 30, 2019 was $135 million.