Investments

6 Months Ended

Jun. 30, 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 loss.  Trading securities are recorded at their estimated fair value with unrealized gains and losses reflected in other investment income (loss), net.  At June 30, 2012 and December 31, 2011, amortized cost and estimated fair value were not materially different for these investments.

At June 30, 2012, money market deposit accounts included $6,106,000 denominated in Canadian dollars and money market funds included $5,214,000 denominated in Euros.  As of June 30, 2012, the trading securities primarily consisted of high yield debt securities.  Unrealized (losses) gains related to trading securities for the three and six months ended June 30, 2012 were $(135,000) and $656,000, respectively, and $(203,000) and $1,366,000 for the three and six months ended July 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 June 30, 2012 and December 31, 2011.

	2012				2011
	Amortized		Fair		Amortized		Fair
(Thousands of dollars)	Cost		Value		Cost		Value
Corporate bonds	$	134,965	$	136,258	$	88,589	$	89,146
Money market funds and deposit accounts	101,011		101,011		139,420		139,420
Enhanced cash mutual fund	50,000		50,072		-		-
Collateralized mortgage obligations	24,859		24,944		14,915		15,011
Fixed rate municipal notes and bonds	23,553		23,592		17,718		17,788
U.S. Government agency securities	22,424		22,572		9,720		9,757
U.S. Treasury securities	20,458		20,526		4,848		4,905
Emerging markets debt mutual fund	17,693		17,035		17,693		16,399
Asset backed debt securities	15,499		15,514		3,533		3,533
Other	680		683		1,480		1,484
Total available-for-sale short-term investments	411,142		412,207		297,916		297,443
High yield trading debt securities	21,129		22,084		20,155		20,750
Emerging markets trading debt mutual fund	2,966		2,919		2,620		2,487
Emerging markets trading debt securities	2,004		2,073		2,444		2,355
Other trading debt securities	684		754		218		221
Total available-for-sale and trading short-term investments	$	437,925	$	440,037	$	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 June 30, 2012.

(Thousands of dollars)	2012
Due within one year	$	44,983
Due after one year through three years	88,072
Due after three years	67,516
Total fixed rate securities	$	200,571

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.