Employee Benefits

9 Months Ended

Sep. 28, 2019

Employee Benefits

Employee Benefits

Note 6 – Employee Benefits

Seaboard has a defined benefit pension plan for certain domestic salaried and clerical employees. At this time, no contributions are expected to be made to the plan in 2019. Seaboard also sponsors non-qualified, unfunded supplemental executive plans, and has individual, non-qualified, unfunded supplemental retirement agreements for certain retired employees. Management has no plans to provide funding for these supplemental plans in advance of when the benefits are paid.

The net periodic benefit cost for all of these plans was as follows:

	Three Months Ended				Nine Months Ended
	September 28,		September 29,		September 28,		September 29,
(Millions of dollars)	2019		2018		2019		2018
Components of net periodic benefit cost:
Service cost	$	2	$	2	$	6	$	7
Interest cost		3		3		9		8
Expected return on plan assets		(2)		(3)		(7)		(8)
Amortization and other		1		2		5		5
Net periodic benefit cost	$	4	$	4	$	13	$	12

Seaboard participated in a multi-employer pension fund, the United Food and Commercial Workers International Union-Industry Pension Fund (the “Fund”). Pursuant to a collective bargaining agreement, Seaboard made contributions to the Fund based on hours worked by certain union employees who are participants in the Fund. Effective July 22, 2019, after ratification of a renewed collective bargaining agreement, Seaboard ceased contributing to the Fund, which will result in the termination of participation in the Fund. Seaboard recorded an estimated $14 million withdrawal liability during the third quarter of 2019, that will be payable in quarterly installments over 20 years.