Segment Information

12 Months Ended

Dec. 31, 2022

Segment Information

Segment Information

Note 13 − Segment Information

Seaboard has six reportable segments: Pork, CT&M, Marine, Sugar and Alcohol, Power and Turkey, each offering a specific product or service. Seaboard’s reporting segments are based on information used by Seaboard’s Chief Executive Officer in his capacity as chief operating decision maker to determine allocation of resources and assess performance. Each of the six segments is separately managed, and each was started or acquired independent of the other segments.

The Pork segment primarily produces hogs to process and sells pork products to further processors, food service operators, distributors and grocery stores throughout the U.S. and to foreign markets. In 2022, this segment acquired hog inventory and certain hog farms in the central U.S. from The Maschhoffs, LLC for total cash consideration of $58 million. These additional farms increase the Pork segment’s sow base, resulting in less reliance on third-party hog suppliers. The purchase was recorded at fair value and the final purchase price allocation was $9 million to inventories, $45 million to property, plant and equipment and $4 million to goodwill. Goodwill represents the assembled workforce and the benefits of acquiring an existing operation. In 2020, this segment purchased a hog production company for $27 million, which primarily included hog farms and related assets. This segment also produces biodiesel and renewable diesel from pork fat

and other animal fats and vegetable oils for sale, along with the related fuel credits, to third parties. The Pork segment’s renewable diesel production facility began operations during the third quarter of 2022.

The CT&M segment is an integrated agricultural commodity trading, processing and logistics operation that internationally markets wheat, corn, soybean meal and other agricultural commodities in bulk to third-party customers and to non-consolidated affiliates. This segment operates flour, maize and feed mills and bakery operations in numerous foreign countries. In 2022, this segment sold its Brazilian flour milling operations primarily for cash proceeds of $6 million, net of cash sold. In 2021, this segment increased its ownership interest in a feed manufacturer and hog producer in Ecuador from 50% to 80%. Total consideration for the purchase price included $7 million of cash paid, net of cash acquired, Seaboard’s previously held equity interest and affiliate trade receivables. The final purchase price allocation primarily included working capital of $30 million and property, plant and equipment of $17 million.

The Marine segment provides cargo shipping services in the U.S., the Caribbean and Central and South America. The Sugar and Alcohol segment produces and processes sugar and alcohol in Argentina. The Power segment is an independent power producer in the Dominican Republic that owns two power-generating barges, with EDM III placed in service during the second quarter of 2022. The Turkey segment, accounted for using the equity method, produces and processes turkey products. Total assets for the Turkey segment represent Seaboard’s investment in Butterball. See Note 6 for more information on Butterball. The All Other segment represents primarily a jalapeño pepper processing operation.

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

Net Sales:		Year Ended December 31, 2022
(Millions of dollars)		Pork		CT&M		Marine		Sugar and Alcohol		Power		All Other		Consolidated Totals
Major Products/Services Lines:
Products	$	1,954	$	6,275	$	—	$	123	$	—	$	16	$	8,368
Transportation		11		—		2,043		—		—		2		2,056
Energy		611		—		—		6		158		—		775
Other		29		15		—		—		—		—		44
Segment/consolidated totals	$	2,605	$	6,290	$	2,043	$	129	$	158	$	18	$	11,243

Net Sales:		Year Ended December 31, 2021
(Millions of dollars)		Pork		CT&M		Marine		Sugar and Alcohol		Power		All Other		Consolidated Totals
Major Products/Services Lines:
Products	$	2,091	$	5,139	$	—	$	113	$	—	$	14	$	7,357
Transportation		8		—		1,396		—		—		1		1,405
Energy		357		—		—		10		60		—		427
Other		25		15		—		—		—		—		40
Segment/consolidated totals	$	2,481	$	5,154	$	1,396	$	123	$	60	$	15	$	9,229

Net Sales:		Year Ended December 31, 2020
(Millions of dollars)		Pork		CT&M		Marine		Sugar and Alcohol		Power		All Other		Consolidated Totals
Major Products/Services Lines:
Products	$	1,682	$	3,981	$	—	$	95	$	—	$	16	$	5,774
Transportation		8		—		1,005		—		—		—		1,013
Energy		219		—		—		11		64		—		294
Other		32		13		—		—		—		—		45
Segment/consolidated totals	$	1,941	$	3,994	$	1,005	$	106	$	64	$	16	$	7,126

The following tables present Seaboard’s operating income (loss) by segment. Operating income for segment reporting is prepared on the same basis as that used for consolidated operating income. Operating income, along with income (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. 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. 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):	Years ended December 31,
(Millions of dollars)	2022		2021		2020
Pork	$	(96)	$	227	$	131
CT&M		151		61		118
Marine		591		197		21
Sugar and Alcohol		11		2		2
Power		14		(9)		3
All other		1		1		1
Segment totals		672		479		276
Corporate		(15)		(21)		(31)
Consolidated totals	$	657	$	458	$	245

The following tables present Seaboard’s total assets and capital expenditures 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.

Total Assets:	December 31,
(Millions of dollars)	2022		2021
Pork	$	2,698	$	2,265
CT&M		1,915		2,054
Marine		882		749
Sugar and Alcohol		165		155
Power		342		359
Turkey		350		245
All other		6		7
Segment totals		6,358		5,834
Corporate		1,544		1,669
Consolidated totals	$	7,902	$	7,503

Capital Expenditures:	Years ended December 31,
(Millions of dollars)	2022		2021		2020
Pork	$	315	$	343	$	207
CT&M		14		17		8
Marine		136		44		10
Sugar and Alcohol		9		8		5
Power		—		43		27
All other		—		1		2
Segment totals		474		456		259
Corporate		—		4		—
Consolidated totals	$	474	$	460	$	259

Geographic Information

Seaboard had sales in Colombia totaling $1,578 million, $1,144 million and $812 million for the years ended December 31, 2022, 2021 and 2020, respectively, representing approximately 14%, 12% and 11% of total sales for each respective year. Seaboard had sales in South Africa totaling $992 million, $917 million and $743 million for the years ended December 31, 2022, 2021 and 2020, respectively, representing approximately 9% of total sales for 2022 and 10% for years 2021 and 2020. No other individual foreign country accounted for 10% or more of sales to external customers.

The following table provides a geographic summary of net sales based on the location of product delivery or service:

	Years ended December 31,
(Millions of dollars)	2022		2021		2020
Caribbean, Central and South America	$	5,054	$	3,566	$	2,744
Africa		3,107		2,685		2,099
United States (a)		2,181		2,031		1,536
Pacific Basin and Far East		490		545		435
Canada/Mexico		338		309		202
Europe		71		86		101
All other		2		7		9
Total sales	$	11,243	$	9,229	$	7,126

(a) For Marine segment services on product delivery to the U.S., geographic location is based on origination port.

The following table provides a geographic summary of Seaboard’s property, plant and equipment according to their physical location and primary port for the vessels:

	December 31,
(Millions of dollars)	2022		2021
United States	$	1,682	$	1,331
Dominican Republic		281		297
Argentina		59		59
China		35		—
Ivory Coast		33		39
Senegal		32		40
Zambia		31		30
All other		93		96
Total property, plant and equipment, net	$	2,246	$	1,892