Derivatives and Fair Value of Financial Instruments (Tables)

3 Months Ended

Apr. 04, 2015

Derivatives and Fair Value of Financial Instruments

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

	Balance
	April 4,
(Thousands of dollars)	2015		Level 1		Level 2		Level 3
Assets:
Available-for-sale securities - short-term investments:
Money market funds	$	236,974	$	236,974	$	-	$	-
Corporate bonds	11,757		-		11,757		-
U.S. Government agency securities	9,354		-		9,354		-
Asset backed debt securities	2,554		-		2,554		-
U.S. Treasury securities	1,996		-		1,996		-
Collateralized mortgage obligations	816		-		816		-
Trading securities - short-term investments:
High yield debt securities	175,390		-		175,390		-
Equity mutual fund	86,268		86,268		-		-
Domestic equity ETF	61,806		61,806		-		-
Money market funds held in trading accounts	6,362		6,362		-		-
Emerging markets trading debt mutual fund	2,550		2,550		-		-
Other trading investments	1,792		-		1,792		-
Trading securities - other current assets:
Domestic equity securities	35,600		35,600		-		-
Foreign equity securities	6,780		6,780		-		-
Fixed income mutual funds	4,415		4,415		-		-
Other	2,959		2,511		448		-
Derivatives:
Commodities(1)	4,147		4,147		-		-
Foreign currencies	1,039		-		1,039		-
Total Assets	$	652,559	$	447,413	$	205,146	$	-
Liabilities:
Derivatives:
Commodities(1)	$	9,722	$	9,722	$	-	$	-
Interest rate swaps	9,256		-		9,256		-
Foreign currencies	424		-		424		-
Total Liabilities	$	19,402	$	9,722	$	9,680	$	-

(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 April 4, 2015, the commodity derivatives had a margin account balance of $21,752,000 resulting in a net other current asset on the Condensed Consolidated Balance Sheets of $16,612,000 and other current liabilities of $435,000.

	Balance
	December 31,
(Thousands of dollars)	2014		Level 1		Level 2		Level 3
Assets:
Available-for-sale securities - short-term investments:
Money market funds	$	142,432	$	142,432	$	-	$	-
Corporate bonds	11,015		-		11,015		-
U.S. Government agency securities	9,666		-		9,666		-
Asset backed debt securities	2,291		-		2,291		-
Collateralized mortgage obligations	1,170		-		1,170		-
U.S. Treasury securities	522		-		522		-
Trading securities - short term investments:
High yield debt securities	181,483		-		181,483		-
Equity mutual fund	82,542		82,542		-		-
Domestic equity ETF	32,651		32,651		-		-
Money market funds held in trading accounts	21,401		21,401		-		-
Emerging markets trading debt mutual fund	2,614		2,614		-		-
Other trading investments	2,779		-		2,779		-
Trading securities - other current assets:
Domestic equity securities	33,857		33,857		-		-
Foreign equity securities	6,532		6,532		-		-
Fixed income mutual funds	4,570		4,570		-		-
Other	2,676		2,405		271		-
Derivatives:
Commodities(1)	6,136		6,136		-		-
Foreign currencies	1,675		-		1,675		-
Total Assets	$	546,012	$	335,140	$	210,872	$	-
Liabilities:
Derivatives:
Commodities(1)	$	1,779	$	1,779	$	-	$	-
Interest rate swaps	7,715		-		7,715		-
Foreign currencies	407		-		407		-
Total Liabilities	$	9,901	$	1,779	$	8,122	$	-

(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, 2014, the commodity derivatives had a margin account balance of $4,314,000 resulting in a net other current asset on the Condensed Consolidated Balance Sheets of $9,267,000 and other current liabilities of $596,000.

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
		April 4,		March 29,
		2015		2014
Commodities	Cost of sales	$	(5,948)	$	(6,584)
Foreign currencies	Cost of sales	(494)		485
Foreign currencies	Foreign currency	1,533		765
Interest rate	Miscellaneous, net	(4,691)		(602)

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
		April 4,		December 31,			April 4,		December 31,
		2015		2014			2015		2014
Commodities(1)	Other current assets	$	4,147	$	6,136	Other current liabilities	$	9,722	$	1,779
Foreign currencies	Other current assets	1,039		1,675		Other current liabilities	424		407
Interest rate	Other current assets	-		-		Other current liabilities	9,256		7,715

(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 April 4, 2015 and December 31, 2014, the commodity derivatives had a margin account balance of $21,752,000 and $4,314,000, respectively, resulting in a net other current asset on the Condensed Consolidated Balance Sheets of $16,612,000 and $9,267,000, respectively and other current liabilities of $435,000 and $596,000, respectively.