Note 11 – 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 product or services, refer to Note 14 to the consolidated financial statements included in Seaboard’s annual report for the year ended December 31, 2018. Below are segment updates from year-end.

In February 2019, the Pork segment entered into an asset purchase agreement to buy an idle ethanol plant in Hugoton, Kansas for approximately $40 million. Seaboard accounted for this transaction as an asset acquisition as no workforce or substantive processes were acquired. The purchase price was allocated to property, plant and equipment based on a relative fair value basis.

The Power segment is currently constructing a new floating power barge for use in the Dominican Republic that is anticipated to begin operations in the first quarter of 2021. The total project is expected to exceed $160 million. Seaboard’s Power segment continues to explore strategic alternatives, including the possible sale or relocation of the existing power barge.

The Turkey segment, accounted for using the equity method, represents Seaboard’s investment in Butterball, LLC (“Butterball”). As of March 30, 2019 and December 31, 2018, Butterball had total assets of $1,127 million and $1,072 million, respectively. Butterball’s summarized income statement information was as follows:



	Three Months Ended
		March 30,		March 31,
(Millions of dollars)		2019		2018
Net sales	$	303	$	321
Operating income (loss)	$	(19)	$	2
Net income (loss)	$	(21)	$	2

The following tables set forth specific financial information about each segment as reviewed by Seaboard’s management. Operating income for segment reporting is prepared on the same basis as that used for consolidated operating income. Operating income, 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 expense on a segment basis.



Sales to External Customers:	Three Months Ended
	March 30,		March 31,
(Millions of dollars)	2019		2018
Pork	$	403	$	466
Commodity Trading and Milling		829		786
Marine		254		249
Sugar and Alcohol		25		51
Power		29		23
All Other		3		4
Segment/Consolidated Totals	$	1,543	$	1,579



Operating Income (Loss):	Three Months Ended
	March 30,		March 31,
(Millions of dollars)	2019		2018
Pork	$	(34)	$	92
Commodity Trading and Milling		7		11
Marine		—		(4)
Sugar and Alcohol		(4)		2
Power		4		—
All Other		1		—
Segment Totals		(26)		101
Corporate		(8)		(4)
Consolidated Totals	$	(34)	$	97



Income (Loss) from Affiliates:	Three Months Ended
	March 30,		March 31,
(Millions of dollars)	2019		2018
Pork	$	(8)	$	(7)
Commodity Trading and Milling		—		(2)
Marine		1		—
Sugar and Alcohol		—		—
Power		—		2
Turkey		(11)		1
Segment/Consolidated Totals	$	(18)	$	(6)



Total Assets:	March 30,		December 31,
(Millions of dollars)	2019		2018
Pork	$	1,576	$	1,304
Commodity Trading and Milling		1,577		1,423
Marine		548		345
Sugar and Alcohol		140		138
Power		219		203
Turkey		284		295
All Other		8		8
Segment Totals		4,352		3,716
Corporate		1,624		1,591
Consolidated Totals	$	5,976	$	5,307



Investments in and Advances to Affiliates:	March 30,		December 31,
(Millions of dollars)	2019		2018
Pork	$	183	$	192
Commodity Trading and Milling		256		255
Marine		31		28
Sugar and Alcohol		4		4
Power		31		30
Turkey		284		295
Segment/Consolidated Totals	$	789	$	804

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. Corporate assets include short-term investments, other current assets related to deferred compensation plans, fixed assets, and other miscellaneous items. Corporate operating losses 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.