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Commitments and Contingencies (Tables) | 12 Months Ended
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Dec. 31, 2018
Commitments and Contingencies |
Schedule of non-cancelable purchase commitments and commitments under other agreements |
|  | Years ended December 31, |  |  |  |  |  |  |
(Millions of dollars) |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | 2023 |  | Thereafter |  | Totals |
Hog procurement contracts (a) |  | $ | 69 |  | $ | 71 |  | $ | 78 |  | $ | 64 |  | $ | 46 |  | $ | 34 |  | $ | 362 |
Grain and feed ingredients (a) |  |  | 116 |  |  | 2 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 118 |
Grain purchase contracts for resale (b) |  |  | 564 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 564 |
Fuel supply contracts (c) |  |  | 31 |  |  | — |  |  | 49 |  |  | 49 |  |  | 49 |  |  | 352 |  |  | 530 |
Equipment and other purchase commitments |  |  | 73 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 73 |
Total firm purchase commitments |  | $ | 853 |  | $ | 73 |  | $ | 127 |  | $ | 113 |  | $ | 95 |  | $ | 386 |  | $ | 1,647 |
Ports (d) |  |  | 18 |  |  | 18 |  |  | 19 |  |  | 19 |  |  | 20 |  |  | 109 |  |  | 203 |
Vessel, time and voyage-charters (e) |  |  | 58 |  |  | 27 |  |  | 26 |  |  | 13 |  |  | 8 |  |  | 25 |  |  | 157 |
Contract grower agreements (f) |  |  | 47 |  |  | 41 |  |  | 37 |  |  | 27 |  |  | 18 |  |  | 61 |  |  | 231 |
Other operating lease payments |  |  | 18 |  |  | 13 |  |  | 9 |  |  | 8 |  |  | 6 |  |  | 15 |  |  | 69 |
Total operating lease payments |  | $ | 141 |  | $ | 99 |  | $ | 91 |  | $ | 67 |  | $ | 52 |  | $ | 210 |  | $ | 660 |
Power barge and pork plant expansion (g) |  |  | 138 |  |  | 71 |  |  | 9 |  |  | — |  |  | — |  |  | — |  |  | 218 |
Investment in affiliates (h) |  |  | 14 |  |  | 9 |  |  | 9 |  |  | — |  |  | — |  |  | — |  |  | 32 |
Total unrecognized non-cancelable commitments |  | $ | 1,146 |  | $ | 252 |  | $ | 236 |  | $ | 180 |  | $ | 147 |  | $ | 596 |  | $ | 2,557 |
| (a) |  | Seaboard has contracted with third parties for the purchase of hogs and has entered into grain and feed purchase contracts to support its hog operations. The amounts included in the table are based on projected market prices as of December 31, 2018. During 2018, 2017 and 2016, the Pork segment paid $77 million, $99 million and $133 million, respectively, for hogs purchased under committed contracts.
| (b) |  | The CT&M segment enters into grain purchase contracts, primarily to support firm sales commitments. These contracts are valued based on projected commodity prices as of December 31, 2018.
| (c) |  | The Power segment has a natural gas supply contract for a significant portion of the fuel required for the operation of its existing facility and barge under construction. The commitments have both fixed and variable price components, and the amount included in the table above is partially based on market prices as of December 31, 2018. The Marine segment also has fuel purchase contracts.
| (d) |  | Seaboard also leases various facilities and equipment under non-cancelable operating lease agreements including a terminal operations agreement at PortMiami, which runs through 2028. Rental expense for operating leases for all segments amounted to $46 million, $44 million and $43 million in 2018, 2017 and 2016, respectively.
| (e) |  | The Marine and CT&M segments enter into contracts to charter vessels for use in their operations, which include short-term time charters for a few months and long-term commitments ranging from less than one year to over three years. These segments’ charter hire expenses during 2018, 2017 and 2016 totaled $111 million, $96 million and $95 million, respectively.
| (f) |  | To support the operations of the Pork segment, Seaboard has contract grower agreements in place with farmers to raise a portion of Seaboard’s hogs according to Seaboard’s specifications under long-term service agreements. During the years ended 2018, 2017 and 2016, Seaboard paid $48 million, $37 million and $26 million, respectively, under contract grower agreements.
| (g) |  | In November 2018, Seaboard’s Power segment entered into a contract to build a floating power barge with operations anticipated to begin in the first quarter of 2021. The total cost of the project is estimated to exceed $160 million. In the third quarter of 2018, Seaboard’s Pork segment entered into an approximate $103 million construction contract to expand its Oklahoma, pork processing plant during 2019 and 2020. These assets are under construction, so expected payments may vary based on timing of milestones achieved.
Investment in affiliates represents obligations made to equity method investments, primarily for expected funding commitments to three limited liability companies that operate refined coal processing plants.

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- Definition Tabular disclosure of unconditional purchase obligations that are not recognized as a liability on the balance sheet, including the nature and significant terms of an unconditional purchase obligation; the amount of the fixed and determinable portion of the obligation as of the date of the latest balance sheet presented in the aggregate and, if determinable, for each of the five succeeding fiscal years; the nature of any variable components of the obligation; the amount purchased under the obligation (for example, the take-or-pay or throughput contract) for the reporting period; and may include the amount of imputed interest necessary to reduce the obligation to present value. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=77896938&loc=d3e25336-109308 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=77896938&loc=d3e25287-109308 + Details
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