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Segment Information | 6 Months Ended
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Jun. 30, 2012
Segment Information |
Segment Information |
Note 9 - Segment Information In January 2012, Seaboard made a payment of $3,660,000 to increase its ownership interest from 50% to 70% in PS International, LLC (PSI), an international specialty grain trading business headquartered in North Carolina. As a result, effective January 1, 2012, Seaboard began consolidation accounting and discontinued the equity method of accounting for this investment. The final amount of this payment will be determined during 2012 upon final verification of certain balance sheet items as of December 31, 2011. Pro forma results of operations are not presented, as the effects of consolidation are not material to Seaboard’s results of operations. In the first quarter of 2011, the Commodity Trading and Milling segment recognized $101,080,000 in net sales related to previously deferred costs and deferred revenues under contracts for which the final sale prices were not fixed and determinable until 2011. On April 8, 2011, Seaboard closed the sale of its two floating power generating facilities in the Dominican Republic. As a result, Seaboard recognized a gain on sale of assets of $51,423,000 in operating income in the second quarter of 2011. In late March 2011, the purchaser entered into discussions with Seaboard to lease one of the facilities to Seaboard for a short period of time. On April 20, 2011, Seaboard signed a short-term lease agreement that allowed Seaboard to resume operations of one of the facilities (72 megawatts) and operate it through March 31, 2012. Seaboard and the purchaser also agreed to defer the sale to the purchaser of the inventory related to the leased facility until the end of the lease term. In late March 2012, this lease was extended to August 31, 2012. After August 31, 2012, this lease will automatically extend on a month-to-month basis but is cancellable by either party while the purchaser reconsiders its long-term plans for the facility. Also, as of June 30, 2012, $1,500,000 of the original sale price for this power generating facility remained in escrow for potential dry dock costs and also serves as the lease security deposit for Seaboard’s obligation under the lease. Seaboard retained all other physical properties of this business and constructed a new 106 megawatt floating power generating facility for use in the Dominican Republic, which began commercial operations in March 2012. The total project costs capitalized were $136,000,000. The Turkey segment, accounted for using the equity method, represents Seaboard’s investment in Butterball, LLC (Butterball). Butterball had total net sales for the three and six months ended June 30, 2012 of $302,423,000 and $604,039,000, respectively, compared to total net sales for the three and six months ended July 2, 2011 of $292,814,000 and $571,271,000, respectively. Butterball had operating income for the three and six months ended June 30, 2012 of $17,767,000 and $41,132,000, respectively, compared to operating income for the three and six months ended July 2, 2011 of $9,233,000 and $14,906,000, respectively. As of June 30, 2012 and December 31, 2011, the Turkey segment had total assets of $908,269,000 and $819,618,000, respectively. In conjunction with Seaboard’s initial investment in Butterball on December 6, 2010, Seaboard has a long-term note receivable from Butterball which had a balance of $106,451,000 as of June 30, 2012. Part of the interest earned on this note is pay-in-kind interest, which accumulates and is paid at maturity. During the third quarter of 2011, Seaboard provided a term loan of $13,037,000 to Butterball to pay off capital leases for certain fixed assets which originally were financed with third parties. The effective interest rate on the term loan is approximately 12%. Although the term loan expires on January 31, 2018, Seaboard anticipates that Butterball will pay off the term loan prior to such expiration date as Butterball is expected to sell all of the related assets and is required to remit the proceeds from such sale to Seaboard to repay the loan. As of June 30, 2012, the balance of the term loan recorded in long-term notes receivable from affiliate was $9,645,000. The following tables set forth specific financial information about each segment as reviewed by Seaboard’s management. Operating income for segment reporting is prepared on the same basis as that used for consolidated operating income. Operating income, along with income or losses from affiliates for the Commodity Trading and Milling segment, is used as the measure of evaluating segment performance because management does not consider interest, other investment income and income tax expense on a segment basis. Sales to External Customers:
|  | Three Months Ended |  | Six Months Ended |
|  | June 30, |  | July 2, |  | June 30, |  | July 2, |
(Thousands of dollars) |  | 2012 |  | 2011 |  | 2012 |  | 2011 |
Pork |  | $ | 400,667 |  | $ | 441,423 |  | $ | 801,328 |  | $ | 865,392 |
Commodity Trading and Milling |  | 725,076 |  | 621,007 |  | 1,449,614 |  | 1,333,238 |
Marine |  | 236,062 |  | 236,501 |  | 469,811 |  | 466,221 |
Sugar |  | 77,633 |  | 72,594 |  | 151,252 |  | 139,597 |
Power |  | 67,248 |  | 24,670 |  | 102,784 |  | 57,015 |
All Other |  | 3,907 |  | 2,392 |  | 6,917 |  | 5,303 |
Segment/Consolidated Totals |  | $ | 1,510,593 |  | $ | 1,398,587 |  | $ | 2,981,706 |  | $ | 2,866,766 |
Operating Income (Loss):
|  | Three Months Ended |  | Six Months Ended |
|  | June 30, |  | July 2, |  | June 30, |  | July 2, |
(Thousands of dollars) |  | 2012 |  | 2011 |  | 2012 |  | 2011 |
Pork |  | $ | 20,846 |  | $ | 62,494 |  | $ | 73,719 |  | $ | 142,089 |
Commodity Trading and Milling |  | 11,467 |  | 15,230 |  | 37,160 |  | 38,302 |
Marine |  | 1,081 |  | (11,054 | ) | 1,572 |  | (4,032 | )
Sugar |  | 20,734 |  | 21,586 |  | 37,711 |  | 44,025 |
Power |  | 10,654 |  | 53,057 |  | 16,474 |  | 56,606 |
All Other |  | 163 |  | (329 | ) | 169 |  | (631 | )
Segment Totals |  | 64,945 |  | 140,984 |  | 166,805 |  | 276,359 |
Corporate Items |  | (4,222 | ) | (4,019 | ) | (12,726 | ) | (9,118 | )
Consolidated Totals |  | $ | 60,723 |  | $ | 136,965 |  | $ | 154,079 |  | $ | 267,241 |
Income (Loss) from Affiliates:
|  | Three Months Ended |  | Six Months Ended |
|  | June 30, |  | July 2, |  | June 30, |  | July 2, |
(Thousands of dollars) |  | 2012 |  | 2011 |  | 2012 |  | 2011 |
Commodity Trading and Milling |  | $ | 4,305 |  | $ | 4,579 |  | $ | 5,012 |  | $ | 10,398 |
Sugar |  | (61 | ) | $ | (99 | ) | (62 | ) | 218 |
Turkey |  | 5,572 |  | 885 |  | 14,435 |  | 911 |
Segment/Consolidated Totals |  | $ | 9,816 |  | $ | 5,365 |  | $ | 19,385 |  | $ | 11,527 |
Total Assets:
|  | June 30, |  | December 31, |
(Thousands of dollars) |  | 2012 |  | 2011 |
Pork |  | $ | 729,262 |  | $ | 738,574 |
Commodity Trading and Milling |  | 740,034 |  | 755,903 |
Marine |  | 261,322 |  | 261,781 |
Sugar |  | 252,857 |  | 269,564 |
Power |  | 247,437 |  | 165,118 |
Turkey |  | 331,907 |  | 312,164 |
All Other |  | 6,534 |  | 6,257 |
Segment Totals |  | 2,569,353 |  | 2,509,361 |
Corporate Items |  | 540,814 |  | 497,367 |
Consolidated Totals |  | $ | 3,110,167 |  | $ | 3,006,728 |
Investments in and Advances to Affiliates:
|  | June 30, |  | December 31, |
(Thousands of dollars) |  | 2012 |  | 2011 |
Commodity Trading and Milling |  | $ | 165,280 |  | $ | 160,402 |
Sugar |  | 2,980 |  | 3,177 |
Turkey |  | 215,811 |  | 201,261 |
Segment/Consolidated Totals |  | $ | 384,071 |  | $ | 364,840 |
Administrative services provided by the corporate office allocated to the individual segments represent corporate services rendered to and costs incurred for each specific segment with no allocation to individual segments of general corporate management oversight costs. Corporate assets include short-term investments, other current assets related to deferred compensation plans, fixed assets, deferred tax amounts and other miscellaneous items. Corporate operating losses represent certain operating costs not specifically allocated to individual segments and include costs related to Seaboard’s deferred compensation programs (which are offset by the effect of the mark-to-market investments recorded in Other Investment Income, Net).

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 + Details
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