Revenue Recognition

6 Months Ended

Jun. 29, 2019

Revenue Recognition

Revenue Recognition

Note 9 – Revenue Recognition

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

		Three Months Ended June 29, 2019
(Millions of dollars)		Pork		Commodity Trading & Milling		Marine		Sugar and Alcohol		Power		All Other		Consolidated Totals
Major Products/Services Lines:
Products	$	427	$	999	$	—	$	29	$	—	$	5	$	1,460
Transportation		3		—		259		—		—		1		263
Energy		53		—		—		1		33		—		87
Other		9		3		—		—		—		—		12
Segment/Consolidated Totals	$	492	$	1,002	$	259	$	30	$	33	$	6	$	1,822

		Three Months Ended June 30, 2018
(Millions of dollars)		Pork		Commodity Trading & Milling		Marine		Sugar and Alcohol		Power		All Other		Consolidated Totals
Major Products/Services Lines:
Products	$	365	$	885	$	—	$	60	$	—	$	4	$	1,314
Transportation		4		—		263		—		—		—		267
Energy		66		—		—		1		31		—		98
Other		7		5		—		—		—		—		12
Segment/Consolidated Totals	$	442	$	890	$	263	$	61	$	31	$	4	$	1,691

		Six Months Ended June 29, 2019
(Millions of dollars)		Pork		Commodity Trading & Milling		Marine		Sugar and Alcohol		Power		All Other		Consolidated Totals
Major Products/Services Lines:
Products	$	784	$	1,825	$	—	$	54	$	—	$	8	$	2,671
Transportation		7		—		513		—		—		1		521
Energy		87		—		—		1		62		—		150
Other		17		6		—		—		—		—		23
Segment/Consolidated Totals	$	895	$	1,831	$	513	$	55	$	62	$	9	$	3,365

		Six Months Ended June 30, 2018
(Millions of dollars)		Pork		Commodity Trading & Milling		Marine		Sugar and Alcohol		Power		All Other		Consolidated Totals
Major Products/Services Lines:
Products	$	726	$	1,666	$	—	$	110	$	—	$	8	$	2,510
Transportation		8		—		512		—		—		—		520
Energy		159		—		—		2		54		—		215
Other		15		10		—		—		—		—		25
Segment/Consolidated Totals	$	908	$	1,676	$	512	$	112	$	54	$	8	$	3,270

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 and six months ended June 29, 2019 and June 30, 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 June 29, 2019, Seaboard had $9 million of remaining performance obligations that extend beyond one year, of which 33% 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, which operates internationally with sales in Africa, South America, the Caribbean and Asia, 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 and six month periods ended June 29, 2019, was $130 million and $265 million, respectively. Deferred revenue recognized as revenue for the three and six month periods ended June 30, 2018, was $88 million and $156 million, respectively.