Segment Information

3 Months Ended

Mar. 30, 2024

Segment Information

Segment Information

Note 7 – 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 13 to the consolidated financial statements included in Seaboard’s annual report for the year ended December 31, 2023.

During the first quarter of 2024, Seaboard’s chief executive officer and chief operating decision maker (“CODM”) made changes to his organizational structure effective April 1, 2024, Seaboard’s second quarter. Beginning April 1, 2024, Seaboard’s CODM will have direct oversight of the liquid fuels business, previously reported in the Pork segment, and, therefore, this business will be its own reportable segment. The liquid fuels business includes renewable diesel and biodiesel operations and related environmental credits. Additionally, the Sugar and Alcohol reportable segment will be moved to All Other as the ongoing economic conditions of Argentina have lessened this segment’s impact on the condensed consolidated financial statements. These changes will not impact the consolidated financial statements and because these changes did not occur until the second quarter of 2024, the periods presented in this 10-Q are reported under the historical segments.

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

		Three Months Ended March 30, 2024
(Millions of dollars)		Pork		Commodity Trading & Milling		Marine		Sugar and Alcohol		Power		All Other		Consolidated Totals
Major Products/Services Lines:
Products	$	481	$	1,185	$	—	$	32	$	—	$	1	$	1,699
Transportation		3		—		332		—		—		1		336
Energy		93		—		—		1		48		—		142
Other		9		5		—		—		—		—		14
Segment/Consolidated Totals	$	586	$	1,190	$	332	$	33	$	48	$	2	$	2,191

		Three Months Ended April 1, 2023
(Millions of dollars)		Pork		Commodity Trading & Milling		Marine		Sugar and Alcohol		Power		All Other		Consolidated Totals
Major Products/Services Lines:
Products	$	428	$	1,341	$	—	$	38	$	—	$	3	$	1,810
Transportation		3		—		448		—		—		—		451
Energy		174		—		—		—		52		—		226
Other		9		3		—		—		—		—		12
Segment/Consolidated Totals	$	614	$	1,344	$	448	$	38	$	52	$	3	$	2,499

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 (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
	March 30,		April 1,
(Millions of dollars)	2024		2023
Pork	$	(48)	$	(212)
CT&M		18		43
Marine		15		96
Sugar and Alcohol		(5)		6
Power		7		10
Segment Totals		(13)		(57)
Corporate		(7)		(6)
Consolidated Totals	$	(20)	$	(63)

Income (Loss) from Affiliates:	Three Months Ended
	March 30,		April 1,
(Millions of dollars)	2024		2023
Pork	$	9	$	10
CT&M		2		(8)
Marine		1		(1)
Turkey		7		25
Segment/Consolidated Totals	$	19	$	26

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, net.

Total Assets:	March 30,		December 31,
(Millions of dollars)	2024		2023
Pork	$	2,749	$	2,721
CT&M		1,521		1,590
Marine		848		847
Sugar and Alcohol		170		179
Power		330		337
Turkey		377		360
All Other		4		4
Segment Totals		5,999		6,038
Corporate		1,578		1,528
Consolidated Totals	$	7,577	$	7,566

Investments in and Advances to Affiliates:	March 30,		December 31,
(Millions of dollars)	2024		2023
Pork	$	163	$	154
CT&M		161		164
Marine		38		38
Sugar and Alcohol		2		2
Power		3		3
Turkey		377		370
Segment/Consolidated Totals	$	744	$	731

The Turkey segment represents Seaboard’s investment in Butterball, LLC (“Butterball”), which is accounted for using the equity method. As of March 30, 2024 and December 31, 2023, Butterball had total assets of $1.2 billion and $1.1 billion, respectively. Butterball’s summarized income statement information was as follows:

		Three Months Ended
		March 30,		April 1,
(Millions of dollars)		2024		2023
Net sales	$	370	$	408
Operating income	$	16	$	50
Net income	$	15	$	48