Derivatives and Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 30, 2019

Derivatives and Fair Value of Financial Instruments

Schedule of assets and liabilities measured at fair value on a recurring basis

	Balance
	March 30,
(Millions of dollars)	2019		Level 1		Level 2		Level 3
Assets:
Trading securities – short-term investments:
Domestic equity securities	$	714	$	714	$	—	$	—
Domestic debt securities		396		116		280		—
Foreign equity securities		222		222		—		—
High yield securities		65		10		55		—
Foreign debt securities		40		2		38		—
Collateralized loan obligations		27		—		27		—
Money market funds held in trading accounts		10		10		—		—
Term deposits		9		9		—		—
Other trading securities		5		5		—		—
Trading securities – other current assets:
Domestic equity securities		35		35		—		—
Money market fund held in trading accounts		2		2		—		—
Foreign equity securities		2		2		—		—
Fixed income securities		2		2		—		—
Other		1		1		—		—
Derivatives:
Commodities (1)		1		1		—		—
Foreign currencies		4		—		4		—
Total assets	$	1,535	$	1,131	$	404	$	—
Liabilities:
Contingent consideration	$	13	$	—	$	—	$	13
Derivatives:
Commodities (1)		29		29		—		—
Total liabilities	$	42	$	29	$	—	$	13

⁽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 March 30, 2019, the commodity derivatives had a margin account balance of $67 million resulting in a net other current asset in the condensed consolidated balance sheet of $39 million.

	Balance
	December 31,
(Millions of dollars)	2018		Level 1		Level 2		Level 3
Assets:
Trading securities – short-term investments:
Domestic equity securities	$	632	$	632	$	—	$	—
Domestic debt securities		268		215		53		—
Foreign equity securities		218		218		—		—
Money market funds held in trading accounts		146		146		—		—
Collateralized loan obligations		28		—		28		—
High yield securities		19		7		12		—
Foreign debt securities		16		2		14		—
Term deposits		9		9		—		—
Other trading securities		5		5		—		—
Trading securities – other current assets:
Domestic equity securities		32		32		—		—
Money market fund held in trading accounts		5		5		—		—
Foreign equity securities		3		3		—		—
Fixed income securities		3		3		—		—
Other		1		1		—		—
Derivatives:
Commodities (1)		6		4		2		—
Foreign currencies		2		—		2		—
Total assets	$	1,393	$	1,282	$	111	$	—
Liabilities:
Trading securities – short-term investments:
Other trading securities	$	5	$	—	$	5	$	—
Contingent consideration		13		—		—		13
Derivatives:
Commodities (1)		4		4		—		—
Total liabilities	$	22	$	4	$	5	$	13

⁽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, 2018, the commodity derivatives had a margin account balance of $15 million resulting in a net other current asset in the condensed consolidated balance sheet of $17 million.

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
		March 30,		March 31,
(Millions of dollars)		2019		2018
Commodities	Cost of sales	$	(32)	$	9
Foreign currencies	Cost of sales		3		(6)
Equity	Other investment income (loss), net		(3)		(10)

Schedule of fair value of each type of derivative and its location in the condensed consolidated balance sheets

		Asset Derivatives					Liability Derivatives
		March 30,		December 31,			March 30,		December 31,
(Millions of dollars)		2019		2018			2019		2018
Commodities (1)	Other current assets	$	1	$	6	Other current liabilities	$	29	$	4
Foreign currencies	Other current assets		4		2	Other current liabilities		—		—
Equity (1)	Short-term investments		—		—	Short-term investments		—		5

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 March 30, 2019 and December 31, 2018, the commodity derivatives had a margin account balance of $67 million and $15 million, respectively, resulting in a net other current asset in the condensed consolidated balance sheets of $39 million and $17 million, respectively.