Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2019

Summary of non-cancelable commitments under contractual obligations



	Years ended December 31,
(Millions of dollars)	2020		2021		2022		2023		2024		Thereafter		Totals
Hog procurement contracts ^(a)	$	78	$	82	$	64	$	47	$	34	$	—	$	305
Grain commitments ^(b)		93		1		—		—		—		—		94
Grain purchase contracts for resale ^(c)		611		—		—		—		—		—		611
Fuel supply contracts ^(d)		7		47		47		47		48		289		485
Construction commitments ^(e)		114		29		—		—		—		—		143
Equipment and other commitments		122		9		4		2		2		24		163
Total unrecognized non-cancelable commitments	$	1,025	$	168	$	115	$	96	$	84	$	313	$	1,801

(a)

The Pork segment has contracted with third parties for the purchase of hogs to support its operations. The amounts are based on projected market prices as of December 31, 2019. During 2019, 2018 and 2017, the Pork segment paid $121 million, $77 million and $99 million, respectively, for hogs purchased under committed contracts.

(b)

The Pork segment enters into grain purchase contracts to support its hog operations. The amounts are based on projected commodity prices as of December 31, 2019.

(c)

The CT&M segment enters into grain purchase contracts, primarily to support firm sales commitments. The amounts are based on projected commodity prices as of December 31, 2019.

(d)

The Power segment has a natural gas supply contract for a significant portion of the fuel required for the barge under construction. The commitment has both fixed and variable price components and the amount included is partially based on market prices as of December 31, 2019. The Marine segment also has fuel purchase contracts.

(e)

The Power segment’s commitments to the contractor for its new power generating barge, anticipated to begin operations in mid-2021, were approximately $26 million. Contractual costs to complete the Pork segment’s Oklahoma pork processing plant expansion in 2020 totaled approximately $21 million. The Pork segment’s renewable diesel production facility, expected to be operational in early 2022, has commitments of approximately $86 million. Expected payments may vary based on timing of milestones achieved.