Revenue Recognition

12 Months Ended

Dec. 31, 2019

Revenue Recognition

Revenue Recognition

Note 13 – Revenue Recognition

Seaboard has multiple segments with diverse revenue streams. For additional information on Seaboard’s segments, see Note 15. The following tables presents Seaboard’s sales disaggregated by revenue source and segment:

		Year Ended December 31, 2019
(Millions of dollars)		Pork		CT&M		Marine		Sugar and Alcohol		Power		All Other		Consolidated Totals
Major Products/Services Lines:
Products	$	1,599	$	3,654	$	—	$	112	$	—	$	17	$	5,382
Transportation		10		—		1,061		—		—		1		1,072
Energy		210		—		—		9		117		—		336
Other		32		18		—		—		—		—		50
Segment/Consolidated Totals	$	1,851	$	3,672	$	1,061	$	121	$	117	$	18	$	6,840

		Year Ended December 31, 2018
(Millions of dollars)		Pork		CT&M		Marine		Sugar and Alcohol		Power		All Other		Consolidated Totals
Major Products/Services Lines:
Products	$	1,451	$	3,410	$	—	$	173	$	—	$	18	$	5,052
Transportation		9		—		1,057		—		—		—		1,066
Energy		282		—		—		11		122		—		415
Other		32		18		—		—		—		—		50
Segment/Consolidated Totals	$	1,774	$	3,428	$	1,057	$	184	$	122	$	18	$	6,583

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 years ended December 31, 2019. 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. Seaboard elected to use all practical expedients and therefore will not disclose the value of unsatisfied performance obligations for: (i) contracts with an original expected length of one year or less; and (ii) contracts for which revenue is recognized at the amount to which it has the right to invoice for services performed. Also, Seaboard will recognize a financing component only on obligations that extend longer than one year.

Deferred revenue represents cash payments received in advance of Seaboard’s performance or revenue billed that is unearned. The CT&M segment 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. Deferred revenue balances are reduced when revenue is recognized. The deferred revenue balance as of December 31, 2018 was recognized as revenue during the first quarter of 2019.