Revenue Recognition

9 Months Ended

Sep. 28, 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 September 28, 2019
(Millions of dollars)		Pork		CT&M		Marine		Sugar & Alcohol		Power		All Other		Consolidated Totals
Major Products/Services Lines:
Products	$	381	$	906	$	—	$	32	$	—	$	5	$	1,324
Transportation		—		—		256		—		—		—		256
Energy		35		—		—		4		30		—		69
Other		7		7		—		—		—		—		14
Segment/Consolidated Totals	$	423	$	913	$	256	$	36	$	30	$	5	$	1,663

		Three Months Ended September 29, 2018
(Millions of dollars)		Pork		CT&M		Marine		Sugar & Alcohol		Power		All Other		Consolidated Totals
Major Products/Services Lines:
Products	$	334	$	894	$	—	$	39	$	—	$	5	$	1,272
Transportation		4		—		259		—		—		—		263
Energy		66		—		—		4		34		—		104
Other		8		4		—		—		—		—		12
Segment/Consolidated Totals	$	412	$	898	$	259	$	43	$	34	$	5	$	1,651

		Nine Months Ended September 28, 2019
(Millions of dollars)		Pork		CT&M		Marine		Sugar & Alcohol		Power		All Other		Consolidated Totals
Major Products/Services Lines:
Products	$	1,165	$	2,731	$	—	$	86	$	—	$	13	$	3,995
Transportation		7		—		769		—		—		1		777
Energy		122		—		—		5		92		—		219
Other		24		13		—		—		—		—		37
Segment/Consolidated Totals	$	1,318	$	2,744	$	769	$	91	$	92	$	14	$	5,028

		Nine Months Ended September 29, 2018
(Millions of dollars)		Pork		CT&M		Marine		Sugar & Alcohol		Power		All Other		Consolidated Totals
Major Products/Services Lines:
Products	$	1,060	$	2,560	$	—	$	149	$	—	$	13	$	3,782
Transportation		12		—		771		—		—		—		783
Energy		225		—		—		6		88		—		319
Other		23		14		—		—		—		—		37
Segment/Consolidated Totals	$	1,320	$	2,574	$	771	$	155	$	88	$	13	$	4,921

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 nine months ended September 28, 2019 and September 29, 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 September 28, 2019, Seaboard had $8 million of remaining performance obligations that extend beyond one year, of which 20% 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. Except for the long-term performance obligation discussed above, the deferred revenue balance as of December 31, 2018 was fully recognized as revenue during the three months ended March 30, 2019.