Investments

9 Months Ended

Oct. 01, 2011

Investments

Investments

Note 2– Investments

Seaboard’s short-term investments are treated as either available-for-sale securities or trading securities.  All of Seaboard’s available-for-sale and trading securities are classified as current assets as they are readily available to support Seaboard’s current operating needs.  Available-for-sale securities are recorded at their estimated fair value with unrealized gains and losses reported, net of tax, as a separate component of accumulated other comprehensive income.  Trading securities are recorded at their estimated fair value with unrealized gains and losses reflected in the statement of earnings.

As of October 1, 2011 and December 31, 2010, the available-for-sale investments primarily consisted of corporate bonds, enhanced cash mutual fund, money market funds and fixed rate municipal notes and bonds.  At October 1, 2011, money market funds included $34,553,000 denominated in Euros.  At October 1, 2011 and December 31, 2010, amortized cost and estimated fair value were not materially different for these investments.

As of October 1, 2011, the trading securities primarily consisted of high yield debt securities.  Unrealized (losses) gains related to trading securities for the three and nine months ended October 1, 2011 were $(1,800,000) and $(1,701,000), respectively, and $1,292,000 and $2,116,000 for the three and nine months ended October 2, 2010, respectively.

The following is a summary of the amortized cost and estimated fair value of short-term investments for both available-for-sale and trading securities at October 1, 2011 and December 31, 2010.

	2011				2010
	Amortized		Fair		Amortized		Fair
(Thousands of dollars)	Cost		Value		Cost		Value
Corporate bonds	$	91,311	$	92,167	$	81,214	$	82,351
Enhanced cash mutual fund	60,542		60,630		60,256		60,302
Money market funds	58,003		58,003		110,164		110,164
Emerging markets debt mutual fund	17,693		16,410		—		—
Fixed rate municipal notes and bonds	15,902		15,981		20,564		20,648
Collateralized mortgage obligations	14,487		14,590		12,329		12,380
U.S. Treasury securities	6,505		6,443		7,139		7,148
U.S. Government agency securities	6,393		6,375		10,142		10,184
Asset backed debt securities	3,825		3,823		2,847		2,848
Other	1,480		1,484		2,360		2,355
Total available-for-sale short-term investments	276,141		275,906		307,015		308,380
High yield trading debt securities	20,782		20,483		19,447		20,783
Other trading debt securities	4,019		3,814		2,807		3,042
Total available-for-sale and trading short-term investments	$	300,942	$	300,203	$	329,269	$	332,205

The following table summarizes the estimated fair value of fixed rate securities designated as available-for-sale classified by the contractual maturity date of the security as of October 1, 2011.

(Thousands of dollars)	2011
Due within one year	$	26,534
Due after one year through three years	66,873
Due after three years	20,943
Total fixed rate securities	$	114,350

In addition to its short-term investments, Seaboard also has trading securities related to Seaboard’s deferred compensation plans classified in other current assets on the Condensed Consolidated Balance Sheets.  See Note 5 to the Condensed Consolidated Financial Statements for information on the types of trading securities held related to the deferred compensation plans.