Investments

3 Months Ended

Mar. 31, 2012

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.  At March 31, 2012 and December 31, 2011, amortized cost and estimated fair value were not materially different for these investments.

At March 31, 2012, money market funds included $19,419,000 denominated in Euros. As of March 31, 2012, the trading securities primarily consisted of high yield debt securities.  Unrealized (losses) gains related to trading securities were $828,000 and $330,000 for the three months ended March 31, 2012 and April 2, 2011, 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 March 31, 2012 and December 31, 2011.

	2012				2011
	Amortized		Fair		Amortized		Fair
(Thousands of dollars)	Cost		Value		Cost		Value
Corporate bonds	$	132,726	$	133,989	$	88,589	$	89,146
Money market funds	69,867		69,867		139,420		139,420
U.S. Treasury securities	36,110		36,095		4,848		4,905
Collateralized mortgage obligations	22,677		22,720		14,915		15,011
Fixed rate municipal notes and bonds	21,275		21,335		17,718		17,788
U.S. Government agency securities	18,534		18,603		9,720		9,757
Emerging markets debt mutual fund	17,693		17,687		17,693		16,399
Asset backed debt securities	10,530		10,536		3,533		3,533
Other	1,480		1,483		1,480		1,484
Total available-for-sale short-term investments	330,892		332,315		297,916		297,443
High yield trading debt securities	21,217		22,349		20,155		20,750
Emerging markets trading debt mutual funds	2,651		2,686		2,620		2,487
Emerging markets trading debt securities	2,099		2,246		2,444		2,355
Other trading debt securities	217		238		218		221
Total available-for-sale and trading short-term investments	$	357,076	$	359,834	$	323,353	$	323,256

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 March 31, 2012.

(Thousands of dollars)	2012
Due within one year	$	53,083
Due after one year through three years	90,771
Due after three years	66,844
Total fixed rate securities	$	210,698

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.