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Segment Information | 3 Months Ended
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Mar. 29, 2014
Segment Information |
Segment Information | Note 9 - Segment Information The Tax Act signed into law in January 2013 as discussed in Note 4, renewed and extended the Federal blender’s credits that Seaboard was entitled to receive for biodiesel it blends which had previously expired on December 31, 2011 and renewed retroactively to January 1, 2012 with an expiration of December 31, 2013. As a result, in the first quarter of 2013 the Pork segment recognized a one-time credit of approximately $11,260,000 as revenues related to this Federal blender’s tax incentive for gallons produced and sold in fiscal 2012. The Federal blender’s credits have not been renewed for 2014. The Power segment has been operating a floating power generating facility (72 megawatts) in the Dominican Republic under a short-term lease agreement. On April 1, 2014, Seaboard provided notice to cancel the lease. Although the final date for operating the leased facility has yet to be finalized, it is anticipated to be during the second or third quarter of 2014. Seaboard had previously sold this facility to the current owner in 2011. As part of the original sale in 2011, Seaboard and the purchaser agreed to defer the sale of inventory to the purchaser related to the leased facility until the end of the lease term. In addition, $1,500,000 of the original sale price for this facility remained in escrow for potential dry dock costs pending final inspection and testing. Finalization of the transfer of the leased facility to the owner and related settlement of all items noted above is anticipated to occur during the third or fourth quarter of 2014. At that time, Seaboard anticipates recognizing a gain related to these items of an amount estimated to be approximately $4,500,000, depending on final dry dock costs, if any, which would reduce the amount of gain. 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 months ended March 29, 2014 and March 30, 2013 of $355,763,000 and $370,570,000, respectively. Butterball had operating income (loss) for the three months ended March 29, 2014 and March 30, 2013 of $20,748,000 and $(2,103,000), respectively. In the first quarter of 2013, Butterball incurred additional charges for impairment of fixed assets related to the planned sale of its Longmont, Colorado facility of which Seaboard’s proportionate share of these charges represented $(2,704,000) recognized in loss from affiliates. As of March 29, 2014 and December 31, 2013, the Turkey segment had total assets of $985,913,000 and $907,004,000, respectively. On December 31, 2012, Seaboard provided a loan of $81,231,000 to Butterball, which was included in Notes Receivable from Affiliates. This loan was made to fund Butterball’s purchase of assets from Gusto Packing Company, Inc., a pork and turkey further processor located in Montgomery, Illinois. In late March 2013, Butterball renegotiated its third party financing and on March 28, 2013 repaid in full this loan from Seaboard. In conjunction with Seaboard’s initial investment in Butterball in December 2010, Seaboard has a long-term note receivable from Butterball which had a balance of $129,551,000 as of March 29, 2014. Part of the interest earned on this note is pay-in-kind interest, which accumulates and is paid at maturity in December 2017. 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 |
|  | March 29, |  | March 30, |
(Thousands of dollars) |  | 2014 |  | 2013 |
Pork |  | $ | 382,090 |  | $ | 409,252 |
Commodity Trading and Milling |  | 789,390 |  | 800,754 |
Marine |  | 200,464 |  | 230,156 |
Sugar |  | 50,356 |  | 66,164 |
Power |  | 53,848 |  | 72,967 |
All Other |  | 3,488 |  | 3,003 |
Segment/Consolidated Totals |  | $ | 1,479,636 |  | $ | 1,582,296 |
Operating Income (Loss):
|  | Three Months Ended |
|  | March 29, |  | March 30, |
(Thousands of dollars) |  | 2014 |  | 2013 |
Pork |  | $ | 60,477 |  | $ | 32,264 |
Commodity Trading and Milling |  | 11,930 |  | 12,328 |
Marine |  | (7,392) |  | (3,266) |
Sugar |  | 6,761 |  | 16,541 |
Power |  | (1,684) |  | 12,939 |
All Other |  | 337 |  | 120 |
Segment Totals |  | 70,429 |  | 70,926 |
Corporate Items |  | (5,226) |  | (7,468) |
Consolidated Totals |  | $ | 65,203 |  | $ | 63,458 |
Income (Loss) from Affiliates:
|  | Three Months Ended |
|  | March 29, |  | March 30, |
(Thousands of dollars) |  | 2014 |  | 2013 |
Commodity Trading and Milling |  | $ | (35) |  | $ | 2,090 |
Sugar |  | 305 |  | 93 |
Turkey |  | 6,374 |  | (5,033) |
Segment/Consolidated Totals |  | $ | 6,644 |  | $ | (2,850) |
Total Assets:
|  | March 29, |  | December 31, |
(Thousands of dollars) |  | 2014 |  | 2013 |
Pork |  | $ | 785,617 |  | $ | 773,641 |
Commodity Trading and Milling |  | 1,013,417 |  | 1,056,930 |
Marine |  | 270,362 |  | 271,012 |
Sugar |  | 169,306 |  | 226,245 |
Power |  | 216,728 |  | 267,431 |
Turkey |  | 351,926 |  | 342,083 |
All Other |  | 7,045 |  | 6,428 |
Segment Totals |  | 2,814,401 |  | 2,943,770 |
Corporate Items |  | 525,413 |  | 474,278 |
Consolidated Totals |  | $ | 3,339,814 |  | $ | 3,418,048 |
Investments in and Advances to Affiliates:
|  | March 29, |  | December 31, |
(Thousands of dollars) |  | 2014 |  | 2013 |
Commodity Trading and Milling |  | $ | 192,697 |  | $ | 197,036 |
Sugar |  | 2,476 |  | 2,768 |
Turkey |  | 213,470 |  | 207,096 |
Segment/Consolidated Totals |  | $ | 408,643 |  | $ | 406,900 |
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 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: 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 3: 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 4: 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 5: 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 6: 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 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 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 10: 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 11: 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 Reference 12: 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 13: 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 14: 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 + Details
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