Segment Information

3 Months Ended

Mar. 28, 2020

Segment Information

Segment Information

Note 10 – Segment Information

Seaboard has six reportable segments: Pork, CT&M, Marine, Sugar and Alcohol, Power and Turkey, each offering a specific product or service. For details on the respective product or services, refer to Note 15 to the consolidated financial statements included in Seaboard’s annual report for the year ended December 31, 2019. Below are segment updates from year-end.

During the first quarter of 2020, the CT&M segment finalized the purchase price allocation related to the October 2019 acquisition of ContiLatin del Peru S.A. resulting in the recording of $1 million of intangible assets and no goodwill.

The Turkey segment, accounted for using the equity method, represents Seaboard’s investment in Butterball, LLC (“Butterball”). As of March 28, 2020 and December 31, 2019, Butterball had total assets of $1,119 million and $1,038 million, respectively. Butterball’s summarized income statement information was as follows:

	Three Months Ended
		March 28,		March 30,
(Millions of dollars)		2020		2019
Net sales	$	318	$	303
Operating loss	$	(7)	$	(19)
Net loss	$	(13)	$	(21)

The following tables set forth specific financial information about each segment as reviewed by Seaboard’s management. Operating income for segment reporting is prepared on the same basis as that used for consolidated operating income. Operating income, along with income or loss from affiliates for the Pork, CT&M and Turkey segments, is used as the measure of evaluating segment performance because management does not consider interest, other investment income (loss) and income tax expense on a segment basis.

Sales to External Customers:	Three Months Ended
	March 28,		March 30,
(Millions of dollars)	2020		2019
Pork	$	455	$	403
Commodity Trading and Milling		914		829
Marine		269		254
Sugar and Alcohol		22		25
Power		17		29
All Other		6		3
Segment/Consolidated Totals	$	1,683	$	1,543

Operating Income (Loss):	Three Months Ended
	March 28,		March 30,
(Millions of dollars)	2020		2019
Pork	$	32	$	(34)
Commodity Trading and Milling		30		7
Marine		(6)		—
Sugar and Alcohol		(1)		(4)
Power		2		4
All Other		1		1
Segment Totals		58		(26)
Corporate		5		(8)
Consolidated Totals	$	63	$	(34)

Income (Loss) from Affiliates:	Three Months Ended
	March 28,		March 30,
(Millions of dollars)	2020		2019
Pork	$	1	$	(8)
Commodity Trading and Milling		1		—
Marine		1		1
Sugar and Alcohol		—		—
Power		—		—
Turkey		(7)		(11)
Segment/Consolidated Totals	$	(4)	$	(18)

Total Assets:	March 28,		December 31,
(Millions of dollars)	2020		2019
Pork	$	1,870	$	1,802
Commodity Trading and Milling		1,687		1,621
Marine		562		554
Sugar and Alcohol		138		139
Power		279		283
Turkey		268		275
All Other		9		10
Segment Totals		4,813		4,684
Corporate		1,342		1,601
Consolidated Totals	$	6,155	$	6,285

Investments in and Advances to Affiliates:	March 28,		December 31,
(Millions of dollars)	2020		2019
Pork	$	185	$	183
Commodity Trading and Milling		239		237
Marine		31		32
Sugar and Alcohol		5		5
Power		3		3
Turkey		268		275
Segment/Consolidated Totals	$	731	$	735

Administrative services provided by the corporate office are allocated to the individual segments and represent corporate services rendered to and costs incurred for each specific segment, with no allocation to individual segments of general corporate management oversight costs. Corporate assets include cash and short-term investments, other current assets related to deferred compensation plans, long-term investments and other miscellaneous items. Corporate operating results represent certain operating costs not specifically allocated to individual segments and include costs related to Seaboard’s deferred compensation plans, which are offset by the effect of the mark-to-market adjustments on these investments recorded in other investment income (loss), net.