Derivatives and Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 28, 2014

Derivatives and Fair Value of Financial Instruments

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

	Balance
	June 28,
(Thousands of dollars)	2014		Level 1		Level 2		Level 3
Assets:
Available-for-sale securities - short-term investments:
Money market funds	$	66,993	$	66,993	$	-	$	-
Corporate bonds	49,921		-		49,921		-
U.S. Government agency securities	43,629		-		43,629		-
Asset backed debt securities	10,791		-		10,791		-
Collateralized mortgage obligations	5,584		-		5,584		-
U.S. Treasury securities	5,035		-		5,035		-
Trading securities - short-term investments:
High yield debt securities	103,163		-		103,163		-
Equity mutual fund	25,017		25,017		-		-
Money market funds held in trading accounts	5,728		5,728		-		-
Domestic equity ETF	5,107		5,107		-		-
Emerging markets trading debt mutual fund	2,988		2,988		-		-
Emerging markets trading debt securities	621		-		621		-
Other trading investments	557		-		557		-
Trading securities - other current assets:
Domestic equity securities	30,869		30,869		-		-
Foreign equity securities	8,450		7,049		1,401		-
Fixed income mutual funds	4,945		4,945		-		-
Money market funds	2,273		2,273		-		-
Other	2,083		177		1,906		-
Derivatives:
Commodities(1)	9,560		9,560		-		-
Interest rate swaps	-		-		-		-
Foreign currencies	2,101		-		2,101		-
Total Assets	$	385,415	$	160,706	$	224,709	$	-
Liabilities:
Derivatives:
Commodities(1)	$	38,166	$	38,014	$	152	$	-
Interest rate swaps	6,901		-		6,901		-
Foreign currencies	378		-		378		-
Total Liabilities	$	45,445	$	38,014	$	7,431	$	-

(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 28, 2014, the commodity derivatives had a margin account balance of $44,039,000 resulting in a net other current asset on the Condensed Consolidated Balance Sheets of $15,585,000 and an other current liability of $152,000.

	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

The amortized cost and estimated fair values of investments and long-term debt at June 28, 2014 and December 31, 2013 are presented below.

	2014				2013
(Thousands of dollars)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Short-term investments, available-for-sale	$	181,319	$	181,953	$	224,314	$	224,076
Short-term investments, trading debt securities	141,862		143,181		65,728		66,573
Long-term debt	86,128		88,220		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					Six Months Ended
		June 28,			June 29,		June 28,			June 29,
		2014			2013		2014			2013
Commodities	Cost of sales	$	9,962		$	5,867	$	3,378		$	1,059
Foreign currencies	Cost of sales	2,328			1,993		2,813			13,499
Foreign currencies	Foreign currency	(1,185		)	1,820		(420		)	5,887
Interest rate	Miscellaneous, net	(3,293		)	2,962		(3,895		)	3,434

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

(Thousands of dollars)		Asset Derivatives					Liability Derivatives
		June 28,		December 31,			June 28,		December 31,
		2014		2013			2014		2013
Commodities	Other current assets	$	9,560 (1)	$	2,331	Other current liabilities	$	38,166 (1)	$	16,014
Foreign currencies	Other current assets	2,101		2,763		Other current liabilities	378		101
Interest rate	Other current assets	-		-		Other current liabilities	6,901		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 June 28, 2014 and December 31, 2013, the commodity derivatives had a margin account balance of $44,039,000 and $29,822,000, respectively, resulting in a net other current asset on the Condensed Consolidated Balance Sheets of $15,585,000 and $16,731,000, respectively and other current liabilities of $152,000 and $592,000, respectively.