Derivatives and Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 29, 2014

Derivatives and Fair Value of Financial Instruments

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

	Balance
	March 29,
(Thousands of dollars)	2014		Level 1		Level 2		Level 3
Assets:
Available-for-sale securities - short-term investments:
Money market funds	$	216,623	$	216,623	$	-	$			-
Corporate bonds	49,482		-		49,482		-
U.S. Government agency securities	47,554		-		47,554		-
Asset backed debt securities	11,938		-		11,938		-
Collateralized mortgage obligations	6,451		-		6,451		-
U.S. Treasury securities	2,770		-		2,770		-
Trading securities - short-term investments:
High yield debt securities	51,923		-		51,923		-
Emerging markets trading debt mutual fund	2,856		2,856		-		-
Money market funds held in trading accounts	1,287		1,287		-		-
Emerging markets trading debt securities	729		-		729		-
Other trading investments	609		-		609		-
Trading securities - other current assets:
Domestic equity securities	28,210		28,210		-		-
Foreign equity securities	7,943		5,676		2,267		-
Fixed income mutual funds	4,909		4,909		-		-
Money market funds	2,102		2,102		-		-
Other	3,641		1,702		1,939		-
Derivatives:
Commodities(1)	19,402		19,402		-		-
Interest rate swaps	388		-		388		-
Foreign currencies	59		-		59		-
Total Assets	$	458,876	$	282,767	$	176,109	$	-
Liabilities:
Derivatives:
Commodities(1)	$	43,271	$	42,386	$	885	$		-
Interest rate swaps	4,551		-		4,551		-
Foreign currencies	2,043		-		2,043		-
Total Liabilities	$	49,865	$	42,386	$	7,479	$	-

(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 March 29, 2014, the commodity derivatives had a margin account balance of $42,622,000 resulting in a net other current asset on the Condensed Consolidated Balance Sheets of $19,638,000 and an other current liability of $885,000.

	Balance
	December 31,
(Thousands of dollars)	2013		Level 1		Level 2			Level 3
Assets:
Available-for-sale securities - short-term   investments:
Money market funds	$	88,430	$	88,430	$	-	$		-
Corporate bonds	70,258		-		70,258		-
U.S. Government agency securities	27,147		-		27,147		-
Emerging markets debt mutual fund	16,941		16,941		-		-
Asset backed debt securities	8,477		-		8,477		-
Collateralized mortgage obligations	7,600		-		7,600		-
U.S. Treasury securities	5,223		-		5,223		-
Trading securities - short-term investments:
High yield debt securities	50,428		-		50,428		-
Money market funds held in trading accounts	11,033		11,033		-		-
Emerging markets trading debt mutual fund	2,858		2,858		-		-
Emerging markets trading debt securities	1,336		-		1,336		-
Other trading investments	918		-		918		-
Trading securities - other current assets:
Domestic equity securities	26,672		26,672		-		-
Foreign equity securities	9,570		7,317		2,253		-
Fixed income mutual funds	3,974		3,974		-		-
Money market funds	1,931		1,931		-		-
Other	3,203		1,628		1,575		-
Derivatives:
Commodities(1)	2,331		2,331		-		-
Foreign currencies	2,763		-		2,763		-
Total Assets	$	341,093	$	163,115	$	177,978	$		-
Liabilities:
Derivatives:
Commodities(1)	$	16,014	$	15,422	$	592	$		-
Interest rate swaps	4,103		-		4,103		-
Foreign currencies	101		-		101		-
Total Liabilities	$	20,218	$	15,422	$	4,796	$		-

(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, 2013, the commodity derivatives had a margin account balance of $29,822,000 resulting in a net other current asset on the Condensed Consolidated Balance Sheets of $16,731,000 and an other current liability of $592,000.

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

	2014		2013
(Thousands of dollars)	Amortized Cost	Fair Value	Amortized Cost	Fair Value
Short-term investments, available-for-sale	$      334,485	$    334,818	$      224,314	$    224,076
Short-term investments, trading debt securities	56,488	57,404	65,728	66,573
Long-term debt	91,910	94,341	92,177	94,578

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

(Thousands of dollars)
		Three Months Ended
		March 29,		March 30,
		2014		2013
Commodities	Cost of sales	$ (6,584	)	$  (4,808	)
Foreign currencies	Cost of sales	485		11,506
Foreign currencies	Foreign currency	765		4,067
Interest rate	Miscellaneous, net	(602	)	472

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

(Thousands of dollars)		Asset Derivatives				Liability Derivatives
		March 29,		December 31,		March 29,		December 31,
		2014		2013		2014		2013
Commodities	Other current assets	$ 19,402	(1)	$   2,331	Other current liabilities	$ 43,271	(1)	$  16,014
Foreign currencies	Other current assets	59		2,763	Other current liabilities	2,043		101
Interest rate	Other current assets	388		-	Other current liabilities	4,551		4,103

(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 March 29, 2014 and December 31, 2013, the commodity derivatives had a margin account balance of $42,622,000 and $29,822,000, respectively, resulting in a net other current asset on the Condensed Consolidated Balance Sheets of $19,638,000 and $16,731,000, respectively and other current liabilities of $885,000 and $592,000, respectively.