Segment Information

9 Months Ended

Oct. 02, 2021

Segment Information

Segment Information

Note 8 – 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 of each segment, see Note 15 to the consolidated financial statements included in Seaboard’s annual report on Form 10-K for the year ended December 31, 2020.

In the third quarter of 2021, Seaboard’s CT&M segment increased its ownership interest in a feed manufacturer and hog producer in Ecuador from 50% to 80% to obtain control of the entity. Total consideration for the purchase price of this additional ownership interest included approximately $7 million of cash paid, net of cash acquired and Seaboard’s previously held equity interest and pre-existing affiliate trade receivables remeasured at their acquisition date fair values. The preliminary purchase price allocation primarily included working capital and property, plant and equipment.

The following tables present Seaboard’s sales disaggregated by revenue source and segment:

Net Sales:		Three Months Ended October 2, 2021
								Sugar
								and				All		Consolidated
(Millions of dollars)		Pork		CT&M		Marine		Alcohol		Power		Other		Totals
Major Products/Services Lines:
Products	$	527	$	1,264	$	—	$	29	$	—	$	4	$	1,824
Transportation		3		—		343		—		—		—		346
Energy		84		—		—		3		10		—		97
Other		6		3		—		—		—		—		9
Segment/Consolidated Totals	$	620	$	1,267	$	343	$	32	$	10	$	4	$	2,276

Net Sales:		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

Net Sales:		Nine Months Ended October 2, 2021
								Sugar
								and				All		Consolidated
(Millions of dollars)		Pork		CT&M		Marine		Alcohol		Power		Other		Totals
Major Products/Services Lines:
Products	$	1,618	$	3,784	$	—	$	79	$	—	$	11	$	5,492
Transportation		6		—		962		—		—		1		969
Energy		236		—		—		5		34		—		275
Other		18		11		—		—		—		—		29
Segment/Consolidated Totals	$	1,878	$	3,795	$	962	$	84	$	34	$	12	$	6,765

Net Sales:		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

The following tables present Seaboard’s operating income (loss) and income (loss) from affiliates by segment. 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. 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.

Operating Income (Loss):	Three Months Ended				Nine Months Ended
	October 2,		September 26,		October 2,		September 26,
(Millions of dollars)	2021		2020		2021		2020
Pork	$	52	$	14	$	242		55
CT&M		25		28		57		82
Marine		42		14		95		(3)
Sugar and Alcohol		—		(1)		—		(4)
Power		(3)		3		(10)		4
All Other		—		—		1		1
Segment Totals		116		58		385		135
Corporate		(4)		(19)		(16)		(24)
Consolidated Totals	$	112	$	39	$	369	$	111

Income (Loss) from Affiliates:	Three Months Ended				Nine Months Ended
	October 2,		September 26,		October 2,		September 26,
(Millions of dollars)	2021		2020		2021		2020
Pork	$	—	$	—	$	(2)	$	(3)
CT&M		7		(3)		17		(2)
Marine		2		1		4		3
Sugar and Alcohol		—		—		—		—
Power		—		—		—		—
Turkey		(10)		(4)		(19)		(25)
Segment/Consolidated Totals	$	(1)	$	(6)	$	—	$	(27)

The following tables present total assets by segment and the investments in and advances to affiliates by segment. Corporate assets primarily 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.

Total Assets:	October 2,		December 31,
(Millions of dollars)	2021		2020
Pork	$	2,226	$	1,927
CT&M		1,918		1,585
Marine		629		508
Sugar and Alcohol		153		153
Power		332		302
Turkey		245		265
All Other		8		6
Segment Totals		5,511		4,746
Corporate		1,746		1,653
Consolidated Totals	$	7,257	$	6,399

Investments in and Advances to Affiliates:	October 2,		December 31,
(Millions of dollars)	2021		2020
Pork	$	147	$	172
CT&M		227		222
Marine		31		30
Sugar and Alcohol		3		6
Power		3		3
Turkey		245		265
Segment/Consolidated Totals	$	656	$	698

The Turkey segment, accounted for using the equity method, represents Seaboard’s investment in Butterball, LLC (“Butterball”). As of October 2, 2021 and December 31, 2020, Butterball had total assets of $1.2 billion and $993 million, respectively. Butterball’s summarized income statement information was as follows:

	Three Months Ended				Nine Months Ended
	October 2,		September 26,		October 2,		September 26,
(Millions of dollars)	2021		2020		2021		2020
Net sales	$	464	$	407	$	1,176	$	1,052
Operating loss	$	(15)	$	(3)	$	(35)	$	(34)
Net loss	$	(18)	$	(7)	$	(36)	$	(47)