Stockholders' Equity and Accumulated Other Comprehensive Loss

12 Months Ended

Dec. 31, 2020

Stockholders' Equity and Accumulated Other Comprehensive Loss

Stockholders' Equity and Accumulated Other Comprehensive Loss

Note 12 - Stockholders’ Equity and Accumulated Other Comprehensive Loss

Seaboard’s share repurchase program expired on October 31, 2020. Under this share repurchase program, Seaboard was authorized to repurchase its common stock from time to time in open market or privately negotiated purchases, which may have been above or below the traded market price. Seaboard repurchased 4,069 and 4,369 shares of common stock during 2020 and 2019, respectively, at a total price of $13 million and $17 million, respectively. Shares repurchased were retired and became authorized and unissued shares.

The components of accumulated other comprehensive loss, net of related taxes, were as follows:

	Cumulative
	Foreign		Cumulative
	Currency		Unrecognized
	Translation		Pension
(Millions of dollars)	Adjustment		Cost			Total
Balance December 31, 2018	$	(349)	$	(61)		$	(410)
Other comprehensive loss before reclassifications		(20)		(14)			(34)
Amounts reclassified from accumulated other comprehensive loss to net earnings		—		4	(a)		4
Other comprehensive loss, net of tax		(20)		(10)			(30)
Balance December 31, 2019	$	(369)	$	(71)		$	(440)
Other comprehensive loss before reclassifications		(7)		(38)			(45)
Amounts reclassified from accumulated other comprehensive loss to net earnings		—		14	(a)		14
Other comprehensive loss, net of tax		(7)		(24)			(31)
Balance December 31, 2020	$	(376)	$	(95)		$	(471)

^(a)This primarily represents the amortization of actuarial losses (gains) and other adjustments that were included in net periodic pension cost. See Note 10 for further discussion.

The cumulative foreign currency translation adjustment primarily represents the effect of the Argentine peso currency exchange fluctuation on the net assets of the Sugar and Alcohol segment. Effective in the third quarter of 2018, the Sugar and Alcohol segment’s functional currency changed from the Argentine peso to the U.S. dollar due to highly inflationary accounting. See Note 1 for discussion of the functional currency change.

Income taxes for the cumulative unrecognized pension cost component of accumulated other comprehensive loss was recorded using a 25% effective tax rate for 2020 and 26%effective tax rate for 2019 and 2018, except for unrecognized pension cost of $34 million, $21 million and $23 million in 2020, 2019 and 2018, respectively, related to employees at certain subsidiaries for which no tax benefit was recorded.