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Derivatives and Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 28, 2019

Derivatives and Fair Value of Financial Instruments

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



		Balance
		September 28,
(Millions of dollars)		2019			Level 1			Level 2			Level 3
Assets:
Trading securities – short-term investments:
Domestic equity securities		$	669		$	669		$	—		$	—
Domestic debt securities			413			115			298			—
Foreign equity securities			191			191			—			—
High yield securities			57			10			47			—
Foreign debt securities			39			—			39			—
Collateralized loan obligations			27			—			27			—
Money market funds held in trading accounts			13			13			—			—
Term deposits			4			4			—			—
Other trading securities			5			5			—			—
Trading securities – other current assets:
Domestic equity securities			37			37			—			—
Money market fund held in trading accounts			5			5			—			—
Foreign equity securities			2			2			—			—
Fixed income securities			2			2			—			—
Other			1			—			1			—
Derivatives:
Commodities ⁽¹⁾			6			6			—			—
Foreign currencies			1			—			1			—
Total Assets		$	1,472		$	1,059		$	413		$	—
Liabilities:
Contingent consideration		$	12		$	—		$	—		$	12
Derivatives:
Commodities ⁽¹⁾			6			6			—			—
Foreign currencies			1			—			1			—
Total Liabilities		$	19		$	6		$	1		$	12

(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 September 28, 2019, the commodity derivatives had a margin account balance of $19 million resulting in a net other current asset in the condensed consolidated balance sheet of $19 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						Nine Months Ended
				September 28,			September 29,			September 28,			September 29,
(Millions of dollars)				2019			2018			2019			2018
Commodities		Cost of sales		$	(17)		$	—		$	(48)		$	(16)
Foreign currencies		Cost of sales			1			2			5			(2)
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
				September 28,			December 31,					September 28,			December 31,
(Millions of dollars)				2019			2018					2019			2018
Commodities⁽¹⁾		Other current assets		$	6		$	6		Other current liabilities		$	6		$	4
Foreign currencies		Other current assets			1			2		Other current liabilities			1			—
Equity ⁽¹⁾		Short-term investments			—			—		Short-term investments			—			5

(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. Seaboard’s equity derivatives are also presented on a net basis, including netting the derivatives within short-term investments.