Derivatives and Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 28, 2013

Derivatives and Fair Value of Financial Instruments

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

	Balance
	September 28,
(Thousands of dollars)		2013		Level 1		Level 2		Level 3
Assets:
Available-for-sale securities - short-term investments:
Money market funds		$	78,435	$	78,435	$	-	$	-
Corporate bonds		69,038		-		69,038		-
U.S. Government agency securities		20,412		-		20,412		-
Emerging markets debt mutual fund		17,253		17,253		-		-
Collateralized mortgage obligations		15,007		-		15,007		-
Asset backed debt securities		8,967		-		8,967		-
U.S. Treasury securities		5,237		-		5,237		-
Trading securities - short-term investments:
High yield debt securities		25,195		-		25,195		-
Emerging markets trading debt mutual fund		2,900		2,900		-		-
Emerging markets trading debt securities		1,535		-		1,535		-
Other trading investments		1,016		507		509		-
Trading securities - other current assets:
Domestic equity securities		22,881		22,881		-		-
Foreign equity securities		9,380		5,614		3,766		-
Fixed income mutual funds		5,954		5,954		-		-
Money market funds		2,046		2,046		-		-
U.S. Treasury securities		1,506		-		1,506		-
U.S. Government agency securities		958		-		958		-
Corporate bonds		81		-		81		-
Other		313		271		42		-
Derivatives:
Commodities(1)		2,062		2,062		-		-
Foreign currencies		4,088		-		4,088		-
Total Assets		$	294,264	$	137,923	$	156,341	$	-
Liabilities:
Derivatives:
Commodities(1)		$	17,882	$	17,882	$	-	$	-
Interest rate swaps		5,318		-		5,318		-
Foreign currencies		92		-		92		-
Total Liabilities		$	23,292	$	17,882	$	5,410	$	-

(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 28, 2013, the commodity derivatives had a margin account balance of $30,382,000 resulting in a net other current asset on the Condensed Consolidated Balance Sheets of $14,562,000.

	Balance
	December 31,
(Thousands of dollars)	2012			Level 1		Level 2		Level 3
Assets:
Available-for-sale securities - short-term investments:
Money market funds		$	126,537	$	126,537	$	-	$	-
Corporate bonds		69,214		-		69,214		-
U.S. Government agency securities		23,775		-		23,775		-
Emerging markets debt mutual fund		18,734		18,734		-		-
U.S. Treasury securities		17,169		-		17,169		-
Collateralized mortgage obligations		15,162		-		15,162		-
Asset backed debt securities		12,238		-		12,238		-
Trading securities - short term investments:
High yield debt securities		23,406		-		23,406		-
Emerging markets trading debt mutual fund		3,237		3,237		-		-
Emerging markets trading debt securities		2,600		-		2,600		-
Other trading investments		1,307		822		485		-
Trading securities - other current assets:
Domestic equity securities		15,864		15,864		-		-
Fixed income mutual funds		7,153		7,153		-		-
Foreign equity securities		6,831		4,218		2,613		-
Money market funds		3,157		3,157		-		-
U.S. Government agency securities		2,117		-		2,117		-
U.S. Treasury securities		1,567		-		1,567		-
Corporate bonds		60		-		60		-
Other		239		187		52		-
Derivatives:
Commodities(1)		6,916		6,699		217		-
Total Assets		$	357,283	$	186,608	$	170,675	$	-
Liabilities:
Derivatives:
Commodities(1)		$	7,112	$	7,112	$	-	$	-
Interest rate swaps		9,810		-		9,810		-
Foreign currencies		4,157		-		4,157		-
Total Liabilities		$	21,079	$	7,112	$	13,967	$	-

(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, 2012, the commodity derivatives had a margin account balance of $14,063,000 resulting in a net other current asset on the Condensed Consolidated Balance Sheets of $13,867,000.

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

	2013		2012
(Thousands of dollars)	Amortized Cost	Fair Value	Amortized Cost	Fair Value
Short-term investments, available-for-sale	$     214,408	$  214,349	$    279,556	$  282,829
Short-term investments, trading debt securities	30,073	30,646	28,508	30,550
Long-term debt	116,028	118,875	145,963	149,333

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 28,				September 29,				September 28,				September 29,
		2013				2012				2013				2012
Commodities	Cost of sales		$	(8,790	)		$	1,660			$	(7,731	)		$	(6,454	)
Foreign currencies	Cost of sales		1,528				4,302				15,027				4,003
Foreign currencies	Foreign currency		(926		)		(327		)		4,961				(3,939		)
Interest rate	Miscellaneous, net		(570		)		(1,372		)		2,864				(5,124		)

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
		September 28,			December 31,			September 28,			December 31,
			2013			2012			2013			2012
Commodities	Other current assets		$   2,062	(1)		$   6,916	Other current assets		$   17,882	(1)		$   7,112
Foreign currencies	Other current assets		4,088			-	Other current liabilities		92			4,157
Interest rate	Other current assets		-			-	Other current liabilities		5,318			9,810

(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 28, 2013 and December 31, 2012, the commodity derivatives had a margin account balance of $30,382,000 and $14,063,000, respectively, resulting in a net other current asset on the Condensed Consolidated Balance Sheets of $14,562,000 and $13,867,000, respectively.