Segment Information

6 Months Ended

Jun. 27, 2020

Segment Information

Segment Information

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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 products or services, see 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 June 27, 2020 and December 31, 2019, Butterball had total assets of $1.1 billion and $1.0 billion, respectively. Butterball’s summarized income statement information was as follows:

	Three Months Ended				Six Months Ended
		June 27,		June 29,		June 27,		June 29,
(Millions of dollars)		2020		2019		2020		2019
Net sales	$	327	$	343	$	645	$	646
Operating loss	$	(24)	$	(8)	$	(31)	$	(27)
Net loss	$	(27)	$	(16)	$	(40)	$	(37)

The following tables set forth specific financial information about each segment as reviewed by Seaboard’s management. Operating income (loss) for segment reporting is prepared on the same basis as that used for consolidated operating income. Operating income (loss), 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 benefit (expense) on a segment basis.

Sales to External Customers:	Three Months Ended				Six Months Ended
	June 27,		June 29,		June 27,		June 29,
(Millions of dollars)	2020		2019		2020		2019
Pork	$	459	$	492	$	914	$	895
CT&M		1,123		1,002		2,037		1,831
Marine		192		259		461		513
Sugar and Alcohol		18		30		40		55
Power		13		33		30		62
All Other		3		6		9		9
Segment/Consolidated Totals	$	1,808	$	1,822	$	3,491	$	3,365

Operating Income (Loss):	Three Months Ended				Six Months Ended
	June 27,		June 29,		June 27,		June 29,
(Millions of dollars)	2020		2019		2020		2019
Pork	$	11	$	25	$	43	$	(9)
CT&M		24		29		54		36
Marine		(11)		4		(17)		4
Sugar and Alcohol		(2)		(4)		(3)		(8)
Power		(1)		8		1		12
All Other		—		—		1		1
Segment Totals		21		62		79		36
Corporate		(10)		(9)		(5)		(17)
Consolidated Totals	$	11	$	53	$	74	$	19

Income (Loss) from Affiliates:	Three Months Ended				Six Months Ended
	June 27,		June 29,		June 27,		June 29,
(Millions of dollars)	2020		2019		2020		2019
Pork	$	(4)	$	(6)	$	(3)	$	(14)
CT&M		—		(5)		1		(5)
Marine		1		—		2		1
Sugar and Alcohol		—		1		—		1
Power		—		2		—		2
Turkey		(14)		(8)		(21)		(19)
Segment/Consolidated Totals	$	(17)	$	(16)	$	(21)	$	(34)

Total Assets:	June 27,		December 31,
(Millions of dollars)	2020		2019
Pork	$	1,759	$	1,802
CT&M		1,570		1,621
Marine		504		554
Sugar and Alcohol		141		139
Power		282		283
Turkey		253		275
All Other		7		10
Segment Totals		4,516		4,684
Corporate		1,357		1,601
Consolidated Totals	$	5,873	$	6,285

Investments in and Advances to Affiliates:	June 27,		December 31,
(Millions of dollars)	2020		2019
Pork	$	181	$	183
CT&M		231		237
Marine		32		32
Sugar and Alcohol		6		5
Power		3		3
Turkey		253		275
Segment/Consolidated Totals	$	706	$	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 marked-to-market adjustments on these investments recorded in other investment income (loss), net.