Derivatives and Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 27, 2014

Derivatives and Fair Value of Financial Instruments

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

	Balance
	September 27,
(Thousands of dollars)	2014		Level 1		Level 2		Level 3
Assets:
Available-for-sale securities - short-term investments:
Money market funds	$	62,965	$	62,965	$	-	$	-
Corporate bonds	10,439		-		10,439		-
U.S. Government agency securities	10,355		-		10,355		-
Asset backed debt securities	2,244		-		2,244		-
Collateralized mortgage obligations	1,214		-		1,214		-
U.S. Treasury securities	521		-		521		-
Trading securities - short-term investments:
High yield debt securities	188,645		-		188,645		-
Equity mutual fund	65,050		65,050		-		-
Domestic equity ETF	15,203		15,203		-		-
Emerging markets trading debt mutual fund	2,849		2,849		-		-
Emerging markets trading debt securities	1,660		-		1,660		-
Money market funds held in trading accounts	390		390		-		-
Other trading investments	1,430		-		1,430		-
Trading securities - other current assets:
Domestic equity securities	29,632		29,632		-		-
Foreign equity securities	8,018		8,018		-		-
Fixed income mutual funds	4,362		4,362		-		-
Money market funds	2,727		2,727		-		-
Other	1,357		616		741		-
Derivatives:
Commodities(1)	20,394		20,394		-		-
Interest rate swaps	-		-		-		-
Foreign currencies	4,674		-		4,674		-
Total Assets	$	434,129	$	212,206	$	221,923	$	-
Liabilities:
Derivatives:
Commodities(1)	$	16,083	$	15,974	$	109	$	-
Interest rate swaps	5,766		-		5,766		-
Foreign currencies	218		-		218		-
Total Liabilities	$	22,067	$	15,974	$	6,093	$	-

(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 27, 2014, the commodity derivatives had a margin account balance of $13,006,000 resulting in a net other current asset on the Condensed Consolidated Balance Sheets of $17,426,000 and an other current liability of $109,000.

	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	$      87,667	$    87,738	$      224,314	$    224,076
Short-term investments, trading securities	278,236	275,227	65,728	66,573
Long-term debt	-	-	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						Nine Months Ended
		September 27,			September 28,			September 27,			September 28,
		2014			2013			2014			2013
Commodities	Cost of sales	$	(296	)	$	(8,790	)	$	3,082		$	(7,731)
Foreign currencies	Cost of sales	1,957			1,528			4,770			15,027
Foreign currencies	Foreign currency	3,145			(926		)	2,725			4,961
Interest rate	Miscellaneous, net	91			(570		)	(3,804		)	2,864

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

(Thousands of dollars)		Asset Derivatives			Liability Derivatives
		September 27,	December 31,		September 27,	December 31,
		2014	2013		2014	2013
Commodities(1)	Other current assets	$ 20,394	$   2,331	Other current liabilities	$   16,083	$   16,014
Foreign currencies	Other current assets	4,674	2,763	Other current liabilities	218	101
Interest rate	Other current assets	-	-	Other current liabilities	5,766	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 September 27, 2014 and December 31, 2013, the commodity derivatives had a margin account balance of $13,006,000 and $29,822,000, respectively, resulting in a net other current asset on the Condensed Consolidated Balance Sheets of $17,426,000 and $16,731,000, respectively and other current liabilities of $109,000 and $592,000, respectively.