Revenue Recognition

9 Months Ended

Sep. 26, 2020

Revenue Recognition

Revenue Recognition

Note 8 – Revenue Recognition

Seaboard has multiple segments with diverse revenue streams. The following tables present Seaboard’s sales disaggregated by revenue source and segment:

		Three Months Ended September 26, 2020
								Sugar
								and				All		Consolidated
(Millions of dollars)		Pork		CT&M		Marine		Alcohol		Power		Other		Totals
Major Products/Services Lines:
Products	$	391	$	877	$	—	$	26	$	—	$	3	$	1,297
Transportation		2		—		244		—		—		—		246
Energy		65		—		—		5		21		—		91
Other		8		3		—		—		—		—		11
Segment/Consolidated Totals	$	466	$	880	$	244	$	31	$	21	$	3	$	1,645

		Three Months Ended September 28, 2019
								Sugar
								and				All		Consolidated
(Millions of dollars)		Pork		CT&M		Marine		Alcohol		Power		Other		Totals
Major Products/Services Lines:
Products	$	381	$	906	$	—	$	32	$	—	$	5	$	1,324
Transportation		—		—		256		—		—		—		256
Energy		35		—		—		4		30		—		69
Other		7		7		—		—		—		—		14
Segment/Consolidated Totals	$	423	$	913	$	256	$	36	$	30	$	5	$	1,663

		Nine Months Ended September 26, 2020
								Sugar
								and				All		Consolidated
(Millions of dollars)		Pork		CT&M		Marine		Alcohol		Power		Other		Totals
Major Products/Services Lines:
Products	$	1,205	$	2,906	$	—	$	65	$	—	$	12	$	4,188
Transportation		6		—		705		—		—		—		711
Energy		145		—		—		6		51		—		202
Other		24		11		—		—		—		—		35
Segment/Consolidated Totals	$	1,380	$	2,917	$	705	$	71	$	51	$	12	$	5,136

		Nine Months Ended September 28, 2019
								Sugar
								and				All		Consolidated
(Millions of dollars)		Pork		CT&M		Marine		Alcohol		Power		Other		Totals
Major Products/Services Lines:
Products	$	1,165	$	2,731	$	—	$	86	$	—	$	13	$	3,995
Transportation		7		—		769		—		—		1		777
Energy		122		—		—		5		92		—		219
Other		24		13		—		—		—		—		37
Segment/Consolidated Totals	$	1,318	$	2,744	$	769	$	91	$	92	$	14	$	5,028

Revenue from goods and services transferred to customers at a single point in time account for approximately 85% of Seaboard’s net sales. 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. Seaboard’s contracts with its customers are short-term, defined as less 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, 2019 was fully recognized as revenue during the first quarter of 2020.