Segment Information

12 Months Ended

Dec. 31, 2023

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. 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. This segment also produces biodiesel and renewable diesel from pork fat and other animal fats and vegetable oils for sale to third parties, along with the related fuel credits. 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% for total consideration of $7 million of cash paid, net of cash acquired, Seaboard’s previously held equity interest and affiliate trade receivables.

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 one barge placed in service during the second quarter of 2022. The Turkey segment, accounted for using the equity method, produces and processes turkey products. 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, 2023
(Millions of dollars)		Pork		CT&M		Marine		Sugar and Alcohol		Power		All Other		Consolidated Totals
Major Products/Services Lines:
Products	$	1,761	$	5,125	$	—	$	154	$	—	$	9	$	7,049
Transportation		13		—		1,499		—		—		3		1,515
Energy		705		—		—		5		237		—		947
Other		37		14		—		—		—		—		51
Segment/consolidated totals	$	2,516	$	5,139	$	1,499	$	159	$	237	$	12	$	9,562

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

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)	2023		2022		2021
Pork	$	(528)	$	(96)	$	227
CT&M		145		151		61
Marine		228		591		197
Sugar and Alcohol		18		11		2
Power		71		14		(9)
All other		—		1		1
Segment totals		(66)		672		479
Corporate		(21)		(15)		(21)
Consolidated totals	$	(87)	$	657	$	458

The following tables present Seaboard’s total assets and capital expenditures by segment. Total assets for the Turkey segment represent Seaboard’s investment in Butterball. Corporate assets primarily include cash and short-term investments, long-term investments and other miscellaneous items.

Total Assets:	December 31,
(Millions of dollars)	2023		2022
Pork	$	2,721	$	2,698
CT&M		1,590		1,915
Marine		847		882
Sugar and Alcohol		179		165
Power		337		342
Turkey		360		350
All other		4		6
Segment totals		6,038		6,358
Corporate		1,528		1,544
Consolidated totals	$	7,566	$	7,902

Capital Expenditures:	Years ended December 31,
(Millions of dollars)	2023		2022		2021
Pork	$	361	$	315	$	343
CT&M		7		14		17
Marine		121		136		44
Sugar and Alcohol		10		9		8
Power		3		—		43
All other		1		—		1
Segment totals		503		474		456
Corporate		3		—		4
Consolidated totals	$	506	$	474	$	460

Geographic Information

Seaboard had sales in Colombia totaling $1,260 million, $1,578 million and $1,144 million for the years ended December 31, 2023, 2022 and 2021, respectively, representing 13%, 14% and 12% of total sales for each respective year. Seaboard had sales in South Africa totaling $824 million, $992 million and $917 million for the years ended December 31, 2023, 2022 and 2021, respectively, representing 9%, 9% and 10% of total sales for each respective year. 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)	2023		2022		2021
Caribbean, Central and South America	$	4,197	$	5,054	$	3,566
Africa		2,586		3,107		2,685
United States (a)		2,102		2,181		2,031
Pacific Basin and Far East		325		490		545
Canada/Mexico		289		338		309
Europe		59		71		86
All other		4		2		7
Total sales	$	9,562	$	11,243	$	9,229

^(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)	2023		2022
United States	$	1,795	$	1,682
Dominican Republic		261		281
Argentina		60		59
China (a)		117		35
Ivory Coast		34		33
Senegal		32		32
Zambia		23		31
All other		88		93
Total property, plant and equipment, net	$	2,410	$	2,246

^(a)  Represents vessels under construction for the Marine segment.