Derivatives and Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2012

Derivatives and Fair Value of Financial Instruments

Schedule of assets and liabilities measured at fair value on a recurring basis

	Balance
	June 30,
(Thousands of dollars)	2012		Level 1		Level 2		Level 3
Assets:
Available-for-sale securities - short-term investments:
Corporate bonds	$	136,258	$	-	$	136,258	$	-
Money market funds and deposit accounts	101,011		101,011		-		-
Enhanced cash mutual fund	50,072		50,072		-		-
Collateralized mortgage obligations	24,944		-		24,944		-
Fixed rate municipal notes and bonds	23,592		-		23,592		-
U.S. Government agency securities	22,572		-		22,572		-
U.S. Treasury securities	20,526		-		20,526		-
Emerging markets debt mutual fund	17,035		17,035		-		-
Asset backed debt securities	15,514		-		15,514		-
Other	683		-		683		-
Trading securities - short-term investments:
High yield debt securities	22,084		-		22,084		-
Emerging markets trading debt mutual fund	2,919		2,919		-		-
Emerging markets trading debt securities	2,073		-		2,073		-
Other debt securities	754		-		754		-
Trading securities - other current assets:
Domestic equity securities	16,667		16,667		-		-
Foreign equity securities	6,232		3,573		2,659		-
Fixed income mutual funds	5,011		5,011		-		-
Money market funds	3,078		3,078		-		-
U.S. Government agency securities	2,402		-		2,402		-
U.S. Treasury securities	1,433		-		1,433		-
Corporate bonds	62		-		62		-
Other	276		233		43		-
Derivatives:
Commodities(1)	11,732		11,732		-		-
Foreign currencies	647		-		647		-
Total Assets	$	487,577	$	211,331	$	276,246	$	-
Liabilities:
Derivatives:
Commodities(1)	$	11,917	$	11,917	$	-	$	-
Interest rate swaps	13,566		-		13,566		-
Foreign currencies	1,133		-		1,133		-
Total Liabilities	$	26,616	$	11,917	$	14,699	$	-
(1) Seaboard’s commodities derivative assets and liabilities are presented in the Condensed Consolidated Balance Sheets on a net basis, including netting the derivatives with the related margin accounts.  As of June 30, 2012, the commodity derivatives had a margin account balance of $8,788,000 resulting in a net other current asset on the Condensed Consolidated Balance Sheets of $8,603,000.

	Balance
	December 31,
(Thousands of dollars)	2011		Level 1		Level 2		Level 3
Assets:
Available-for-sale securities - short-term investments:
Money market funds	$	139,420	$	139,420	$	-	$	-
Corporate bonds	89,146		-		89,146		-
Fixed rate municipal notes and bonds	17,788		-		17,788		-
Emerging markets debt mutual fund	16,399		16,399		-		-
Collateralized mortgage obligations	15,011		-		15,011		-
U.S. Government agency securities	9,757		-		9,757		-
U.S. Treasury securities	4,905		-		4,905		-
Asset backed debt securities	3,533		-		3,533		-
Other	1,484		-		1,484		-
Trading securities - short term investments:
High yield debt securities	20,750		-		20,750		-
Emerging markets trading debt mutual fund	2,487		2,487		-		-
Emerging markets trading debt securities	2,355		-		2,355		-
Other debt securities	221		-		221		-
Trading securities - other current assets:
Domestic equity securities	13,563		13,563		-		-
Foreign equity securities	7,490		3,991		3,499		-
Money market funds	4,521		4,521		-		-
Fixed income mutual funds	4,483		4,483		-		-
U.S. Government agency securities	2,085		-		2,085		-
U.S. Treasury securities	1,474		-		1,474		-
Corporate bonds	72		-		72		-
Other	236		159		77		-
Derivatives:
Commodities(1)	5,144		5,144		-		-
Foreign currencies	2,247		-		2,247		-
Total Assets	$	364,571	$	190,167	$	174,404	$	-
Liabilities:
Derivatives:
Commodities(1)	$	5,529	$	5,529	$	-	$	-
Interest rate swaps	11,268		-		11,268		-
Foreign currencies	3,380		-		3,380		-
Total Liabilities	$	20,177	$	5,529	$	14,648	$	-
(1)  Seaboard’s commodities derivative assets and liabilities are presented in the Condensed Consolidated Balance Sheets on a net basis, including netting the derivatives with the related margin accounts.  As of December 31, 2011, the commodity derivatives had a margin account balance of $8,619,000 resulting in a net other current asset on the Condensed Consolidated Balance Sheets of $8,234,000.

Schedule of amortized cost and estimated fair values of investments and long term debt

	2012				2011
(Thousands of dollars)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Short-term investments, available-for-sale	$	411,142	$	412,207	$	297,916	$	297,443
Short-term investments, trading debt securities	26,783		27,830		25,437		25,813
Long-term debt	183,997		188,030		157,252		161,636

Schedule of gain or (loss) recognized for each type of derivative and its location in the Condensed Consolidated Statements of Comprehensive Income

(Thousands of dollars)
		Three Months Ended						Six Months Ended
		June 30, 2012			July 2, 2011			June 30, 2012			July 2, 2011
		Amount of			Amount of			Amount of			Amount of
	Location of	Gain or			Gain or			Gain or			Gain or
	Gain or (Loss)	(Loss)			(Loss)			(Loss)			(Loss)
	Recognized	Recognized			Recognized			Recognized			Recognized
	in Income	in Income			in Income			in Income			in Income
Commodities	Cost of sales	$	(5,699	)	$	6,669		$	(8,114	)	$	20,655
Foreign currencies	Cost of sales	5,118			1,956			(299		)	10,743
Foreign currencies	Foreign currency	101			(101		)	(3,612		)	(237		)
Interest rate	Miscellaneous, net	(4,400		)	(3,121		)	(3,752		)	(2,602		)

Schedule of fair value of each type of derivative and its location in the Condensed Consolidated Balance Sheets

(Thousands of dollars)	Asset Derivatives						Liability Derivatives
	Balance	Fair Value					Balance	Fair Value
	Sheet	June 30,			December 31,		Sheet	June 30,			December 31,
	Location	2012			2011		Location	2012			2011
Commodities	Other current assets	$	11,732	(1)	$	5,144	Other current assets	$	11,917	(1)	$	5,529
Foreign currencies	Other current assets	647			2,247		Other current liabilities	1,133			3,380
Interest rate	Other current assets	-			-		Other current liabilities	13,566			11,268

(1)   Seaboard’s commodities derivative assets and liabilities are presented in the Condensed Consolidated Balance Sheets on a net basis, including netting the derivatives with the related margin accounts.  As of June 30, 2012 and December 31, 2011, the commodity derivatives had a margin account balance of $8,788,000 and $8,619,000, respectively, resulting in a net other current asset on the Condensed Consolidated Balance Sheets of $8,603,000 and $8,234,000, respectively.