Segment Information

9 Months Ended

Sep. 26, 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 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 September 26, 2020 and December 31, 2019, Butterball had total assets of $1.2 billion and $1.0 billion, respectively. Butterball’s summarized income statement information was as follows:

	Three Months Ended				Nine Months Ended
	September 26,		September 28,		September 26,		September 28,
(Millions of dollars)	2020		2019		2020		2019
Net sales	$	407	$	416	$	1,052	$	1,062
Operating loss	$	(3)	$	(15)	$	(34)	$	(42)
Net loss	$	(7)	$	(22)	$	(47)	$	(59)

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.

Net Sales:	Three Months Ended				Nine Months Ended
	September 26,		September 28,		September 26,		September 28,
(Millions of dollars)	2020		2019		2020		2019
Pork	$	466	$	423	$	1,380	$	1,318
CT&M		880		913		2,917		2,744
Marine		244		256		705		769
Sugar and Alcohol		31		36		71		91
Power		21		30		51		92
All Other		3		5		12		14
Segment/Consolidated Totals	$	1,645	$	1,663	$	5,136	$	5,028

Operating Income (Loss):	Three Months Ended				Nine Months Ended
	September 26,		September 28,		September 26,		September 28,
(Millions of dollars)	2020		2019		2020		2019
Pork	$	4	$	(22)	$	47	$	(31)
CT&M		28		14		82		50
Marine		14		(2)		(3)		2
Sugar and Alcohol		(1)		(1)		(4)		(9)
Power		3		9		4		21
All Other		—		1		1		2
Segment Totals		48		(1)		127		35
Corporate		(19)		(5)		(24)		(22)
Consolidated Totals	$	29	$	(6)	$	103	$	13

Income (Loss) from Affiliates:	Three Months Ended				Nine Months Ended
	September 26,		September 28,		September 26,		September 28,
(Millions of dollars)	2020		2019		2020		2019
Pork	$	—	$	(5)	$	(3)	$	(19)
CT&M		(3)		(1)		(2)		(6)
Marine		1		1		3		2
Sugar and Alcohol		—		—		—		1
Power		—		1		—		3
Turkey		(4)		(11)		(25)		(30)
Segment/Consolidated Totals	$	(6)	$	(15)	$	(27)	$	(49)

Total Assets:	September 26,		December 31,
(Millions of dollars)	2020		2019
Pork	$	1,765	$	1,802
CT&M		1,607		1,621
Marine		504		554
Sugar and Alcohol		147		139
Power		296		283
Turkey		250		275
All Other		5		10
Segment Totals		4,574		4,684
Corporate		1,402		1,601
Consolidated Totals	$	5,976	$	6,285

Investments in and Advances to Affiliates:	September 26,		December 31,
(Millions of dollars)	2020		2019
Pork	$	178	$	183
CT&M		230		237
Marine		32		32
Sugar and Alcohol		5		5
Power		3		3
Turkey		250		275
Segment/Consolidated Totals	$	698	$	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.