Derivatives and Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 29, 2012

Derivatives and Fair Value of Financial Instruments

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

	Balance
	September 29,
(Thousands of dollars)	2012		Level 1		Level 2		Level 3
Assets:
Available-for-sale securities - short-term investments:
Corporate bonds	$	135,567	$	-	$	135,567	$	-
Money market funds	84,178		84,178		-		-
Collateralized mortgage obligations	24,816		-		24,816		-
Asset backed debt securities	22,131		-		22,131		-
U.S. Government agency securities	21,094		-		21,094		-
U.S. Treasury securities	21,036		-		21,036		-
Fixed rate municipal notes and bonds	20,631		-		20,631		-
Emerging markets debt mutual fund	18,109		18,109		-		-
Other	683		-		683		-
Trading securities - short-term investments:
High yield debt securities	22,620		-		22,620		-
Emerging markets trading debt mutual fund	3,087		3,087		-		-
Emerging markets trading debt securities	2,483		-		2,483		-
Other debt securities	772		-		772		-
Trading securities - other current assets:
Domestic equity securities	17,783		17,783		-		-
Foreign equity securities	6,453		3,902		2,551		-
Fixed income mutual funds	5,453		5,453		-		-
Money market funds	3,613		3,613		-		-
U.S. Government agency securities	2,301		-		2,301		-
U.S. Treasury securities	1,061		-		1,061		-
Corporate bonds	61		-		61		-
Other	232		186		46		-
Derivatives:
Commodities(1)	11,735		11,735		-		-
Foreign currencies	526		-		526		-
Total Assets	$	426,425	$	148,046	$	278,379	$	-
Liabilities:
Derivatives:
Commodities(1)	$	14,536	$	14,536	$	-	$	-
Interest rate swaps	10,340		-		10,340		-
Foreign currencies	1,414		-		1,414		-
Total Liabilities	$	26,290	$	14,536	$	11,754	$	-

(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 September 29, 2012, the commodity derivatives had a margin account balance of $16,432,000 resulting in a net other current asset on the Condensed Consolidated Balance Sheets of $13,631,000.

	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	$    344,550	$  348,245	$     297,916	$ 297,443
Short-term investments, trading debt securities	27,161	28,962	25,437	25,813
Long-term debt	183,868	187,930	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		Nine Months Ended
		September 29, 2012	October 1, 2011	September 29, 2012	October 1, 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	$       1,660	$   (10,162)	$     (6,454)	$    10,493
Foreign currencies	Cost of sales	4,302	14,574	4,003	25,317
Foreign currencies	Foreign currency	(327)	1,027	(3,939)	790
Interest rate	Miscellaneous, net	(1,372)	(10,394)	(5,124)	(12,996)

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	September 29,	December 31,		Sheet	September 29,	December 31,
	Location	2012	2011		Location	2012	2011
Commodities	Other current assets	$11,735(1)	$    5,144		Other current assets	$ 14,536(1)	$    5,529
Foreign currencies	Other current assets	526	2,247		Other current liabilities	1,414	3,380
Interest rate	Other current assets	-	-		Other current liabilities	10,340	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 September 29, 2012 and December 31, 2011, the commodity derivatives had a margin account balance of $16,432,000 and $8,619,000, respectively, resulting in a net other current asset on the Condensed Consolidated Balance Sheets of $13,631,000 and $8,234,000, respectively