Stockholders' Equity and Accumulated Other Comprehensive Loss

12 Months Ended

Dec. 31, 2023

Stockholders' Equity and Accumulated Other Comprehensive Loss

Stockholders' Equity and Accumulated Other Comprehensive Loss

Note 11 − Stockholders’ Equity and Accumulated Other Comprehensive Loss

On October 10, 2023, in a privately negotiated transaction, Seaboard repurchased an aggregate of 189,724 shares of its common stock from certain affiliates at a price below the traded market price for an aggregate purchase price of $600 million. Shares repurchased were retired and retained earnings decreased $608 million for the purchase and related U.S. excise taxes. Other transaction fees were immaterial.

The components of accumulated other comprehensive loss (“AOCL”), net of related taxes, were as follows:

	Cumulative
	Foreign			Cumulative
	Currency			Unrecognized
	Translation			Pension
(Millions of dollars)	Adjustment			Cost			Total
Balance December 31, 2020	$	(376)		$	(95)		$	(471)
Other comprehensive income before reclassifications		8			18			26
Amounts reclassified from AOCL to net earnings		—			13	(a)		13
Other comprehensive income, net of tax		8			31			39
Balance December 31, 2021	$	(368)		$	(64)		$	(432)
Other comprehensive income (loss) before reclassifications		(42)			38			(4)
Amounts reclassified from AOCL to net earnings		9	(b)		5	(a)		14
Other comprehensive income (loss), net of tax		(33)			43			10
Balance December 31, 2022	$	(401)		$	(21)		$	(422)
Other comprehensive income (loss) before reclassifications		(3)			14			11
Amounts reclassified from AOCL to net earnings		—			1	(a)		1
Other comprehensive income (loss), net of tax		(3)			15			12
Balance December 31, 2023	$	(404)		$	(6)		$	(410)

^(a)This primarily represents the amortization of actuarial losses (gains) that were included in net periodic pension cost. See Note 9 for further discussion.

^(b)  This reclassification adjustment primarily reflects the recognition of a currency translation adjustment upon the disposition of a CT&M business in Brazil whose functional currency was the Brazilian real. Upon management’s commitment to a plan to dispose, substantially all of this adjustment was previously recognized as an impairment in cost of sales for the year ended December 31, 2021.

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. The Sugar and Alcohol segment’s functional currency has been the U.S. dollar due to highly inflationary accounting since 2018. The adjustments for the years presented are related to non-U.S. dollar functional currencies of consolidated subsidiaries and non-consolidated affiliates in the CT&M segment.

The cumulative unrecognized pension cost represents the unamortized net actuarial loss. Income taxes for the cumulative unrecognized pension cost component was recorded using a 25% effective tax rate, except for unrecognized pension cost of $2 million, $5 million and $24 million in 2023, 2022 and 2021, respectively, related to employees at certain subsidiaries for which no tax benefit was recorded.