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Segment Information | 12 Months Ended
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Dec. 31, 2019
Segment Information |
Segment Information | Note 15 - Segment Information Seaboard has six reportable segments: Pork, CT&M, Marine, Sugar and Alcohol, Power and Turkey, each offering a specific product or service. Seaboard’s reporting segments are based on information used by Seaboard’s Chief Executive Officer in his capacity as chief operating decision maker to determine allocation of resources and assess performance. Each of the six segments is separately managed, and each was started or acquired independent of the other segments. The Pork segment primarily produces hogs to process and sells fresh and frozen pork products to further processors, foodservice operators, distributors and grocery stores throughout the U.S. and to foreign markets. This segment also produces biodiesel from pork fat and other animal fats and vegetable oils for sale to third parties. Substantially all of Seaboard’s Pork segment’s hourly employees at its processing plant are covered by a collective bargaining agreement that expires in 2024. The CT&M segment is an integrated agricultural commodity trading, processing and logistics operation that internationally markets wheat, corn, soybean meal and other agricultural commodities in bulk to third-party customers and to non-consolidated affiliates. This segment also operates flour, maize and feed mills and bakery operations in numerous foreign countries. The Marine segment provides cargo shipping services in the U.S., the Caribbean and Central and South America. The Sugar and Alcohol segment produces and processes sugar and alcohol in Argentina, primarily to be marketed locally. The Power segment is an independent power producer in the Dominican Republic operating a power generating barge. The Turkey segment, accounted for using the equity method, produces turkeys to process and sells branded and non-branded turkey products. Total assets for the Turkey segment represent Seaboard’s investment in Butterball. Revenues for the All Other segment are primarily derived from a jalapeño pepper processing operation. Below are significant segment events that impact financial results for the periods covered by this report. In February 2019, the Pork segment entered into an asset purchase agreement to buy an idle ethanol plant in Hugoton, Kansas for approximately $40 million. Seaboard accounted for this transaction as an asset acquisition as no workforce or substantive processes were acquired. The purchase price was allocated to property, plant and equipment based on a relative fair value basis. The Pork segment is converting the Hugoton, Kansas plant to a renewable diesel production facility, with operations expected to begin in 2022. The Pork segment’s biodiesel plants have historically received federal blender’s credits for the biodiesel they blend. As a result of the 2019 Tax Law, Seaboard recognized $60 million of net revenue related to the 2018 and 2019 federal blender’s credits. Revenue will be recognized ratably during the years 2020 through 2022 based on biodiesel production. In October 2019, the CT&M segment obtained control of a former non-consolidated affiliate that operates a grain trading business in Peru. On January 5, 2018, the CT&M segment acquired flour milling and associated businesses in Senegal, Ivory Coast and Monaco. See Note 2 for further details of these acquisitions. The Power segment is currently constructing a power barge for use in the Dominican Republic that is anticipated to begin operations in 2021. Seaboard’s Power segment continues to explore strategic alternatives for the existing barge, including selling, relocating or operating in conjunction with the new barge at the current site. During 2019, the Power segment sold its 29.9% interest in an electricity generation facility. See Note 7 for discussion of the non-consolidated affiliate. The following tables set forth specific financial information about each segment as reviewed by Seaboard’s management, except for the Turkey segment information previously disclosed in Note 7. Operating income for segment reporting is prepared on the same basis as that used for consolidated operating income. Operating income, along with income (loss) from affiliates for the Pork, CT&M and Turkey segments, are used as the measures of evaluating segment performance because management does not consider interest, other investment income (loss) and income tax expense on a segment basis. Administrative services provided by the corporate office are allocated to the individual segments and 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, 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 adjustments on these investments recorded in other investment income (loss), net. Sales to External Customers: ​
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​ | ​ |  | Years ended December 31, | ​
(Millions of dollars) |  |  | 2019 |  | 2018 |  | 2017 | ​
Pork | ​ | ​ | $ | 1,851 | ​ | $ | 1,774 | ​ | $ | 1,609 | ​
Commodity Trading and Milling | ​ | ​ |  | 3,672 | ​ |  | 3,428 | ​ |  | 2,945 | ​
Marine | ​ | ​ |  | 1,061 | ​ |  | 1,057 | ​ |  | 956 | ​
Sugar and Alcohol | ​ | ​ |  | 121 | ​ |  | 184 | ​ |  | 186 | ​
Power | ​ | ​ |  | 117 | ​ |  | 122 | ​ |  | 97 | ​
All Other | ​ | ​ |  | 18 | ​ |  | 18 | ​ |  | 16 | ​
Segment/Consolidated Totals | ​ | ​ | $ | 6,840 | ​ | $ | 6,583 | ​ | $ | 5,809 | ​
​ Operating Income (Loss): ​
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​ | ​ |  | Years ended December 31, | ​
(Millions of dollars) |  |  | 2019 |  | 2018 |  | 2017 | ​
Pork | ​ | ​ | $ | 54 | ​ | $ | 117 | ​ | $ | 193 | ​
Commodity Trading and Milling | ​ | ​ |  | 62 | ​ |  | 46 | ​ |  | 25 | ​
Marine | ​ | ​ |  | 4 | ​ |  | 25 | ​ |  | 21 | ​
Sugar and Alcohol | ​ | ​ |  | (16) | ​ |  | 9 | ​ |  | 21 | ​
Power | ​ | ​ |  | 27 | ​ |  | 21 | ​ |  | 9 | ​
All Other | ​ | ​ |  | 2 | ​ |  | 2 | ​ |  | 2 | ​
Segment Totals | ​ | ​ |  | 133 | ​ |  | 220 | ​ |  | 271 | ​
Corporate | ​ | ​ |  | (29) | ​ |  | (11) | ​ |  | (31) | ​
Consolidated Totals | ​ | ​ | $ | 104 | ​ | $ | 209 | ​ | $ | 240 | ​
​ Income (Loss) from Affiliates: ​
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​ | ​ |  | Years ended December 31, | ​
(Millions of dollars) |  |  | 2019 |  | 2018 |  | 2017 | ​
Pork | ​ | ​ | $ | (22) | ​ | $ | (30) | ​ | $ | (10) | ​
Commodity Trading and Milling | ​ | ​ | ​ | (5) | ​ | ​ | (11) | ​ | ​ | 7 | ​
Marine | ​ | ​ | ​ | 3 | ​ | ​ | 2 | ​ | ​ | (7) | ​
Sugar and Alcohol | ​ | ​ |  | 1 | ​ |  | 1 | ​ |  | 1 | ​
Power | ​ | ​ | ​ | 3 | ​ | ​ | 10 | ​ | ​ | 6 | ​
Turkey | ​ | ​ |  | (21) | ​ |  | (16) | ​ |  | (4) | ​
Segment/Consolidated Totals | ​ | ​ | $ | (41) | ​ | $ | (44) | ​ | $ | (7) | ​
​ Depreciation and Amortization: ​
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​ | ​ | Years ended December 31,
(Millions of dollars) |  | 2019 |  | 2018 |  | 2017
Pork | ​ | $ | 75 | ​ | $ | 73 | ​ | $ | 69
Commodity Trading and Milling | ​ |  | 25 | ​ |  | 22 | ​ |  | 10
Marine | ​ |  | 23 | ​ |  | 24 | ​ |  | 24
Sugar and Alcohol | ​ |  | 6 | ​ |  | 6 | ​ |  | 7
Power | ​ |  | 8 | ​ |  | 8 | ​ |  | 8
Segment Totals | ​ |  | 137 | ​ |  | 133 | ​ |  | 118
Corporate | ​ |  | 1 | ​ |  | 1 | ​ |  | —
Consolidated Totals | ​ | $ | 138 | ​ | $ | 134 | ​ | $ | 118
​ Total Assets: ​
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​ | ​ |  | December 31, | ​
(Millions of dollars) |  |  | 2019 |  | 2018 | ​
Pork | ​ | ​ | $ | 1,802 | ​ | $ | 1,304 | ​
Commodity Trading and Milling | ​ | ​ |  | 1,621 | ​ |  | 1,423 | ​
Marine | ​ | ​ |  | 554 | ​ |  | 345 | ​
Sugar and Alcohol | ​ | ​ |  | 139 | ​ |  | 138 | ​
Power | ​ | ​ |  | 283 | ​ |  | 203 | ​
Turkey | ​ | ​ |  | 275 | ​ |  | 295 | ​
All Other | ​ | ​ |  | 10 | ​ |  | 8 | ​
Segment Totals | ​ | ​ |  | 4,684 | ​ |  | 3,716 | ​
Corporate | ​ | ​ |  | 1,601 | ​ |  | 1,591 | ​
Consolidated Totals | ​ | ​ | $ | 6,285 | ​ | $ | 5,307 | ​
​ Investments in and Advances to Affiliates: ​
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​ | ​ |  | December 31, | ​
(Millions of dollars) |  |  | 2019 |  | 2018 | ​
Pork | ​ | ​ | $ | 183 | ​ | $ | 192 | ​
Commodity Trading and Milling | ​ | ​ | ​ | 237 | ​ | ​ | 255 | ​
Marine | ​ | ​ | ​ | 32 | ​ | ​ | 28 | ​
Sugar and Alcohol | ​ | ​ |  | 5 | ​ |  | 4 | ​
Power | ​ | ​ | ​ | 3 | ​ | ​ | 30 | ​
Turkey | ​ | ​ |  | 275 | ​ |  | 295 | ​
Segment/Consolidated Totals | ​ | ​ | $ | 735 | ​ | $ | 804 | ​
​ Capital Expenditures: ​
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​ | ​ | Years ended December 31,
(Millions of dollars) |  | 2019 |  | 2018 |  | 2017
Pork | ​ | $ | 164 | ​ | $ | 86 | ​ | $ | 100
Commodity Trading and Milling | ​ |  | 23 | ​ |  | 29 | ​ |  | 15
Marine | ​ |  | 26 | ​ |  | 18 | ​ |  | 37
Sugar and Alcohol | ​ |  | 15 | ​ |  | 5 | ​ |  | 20
Power | ​ |  | 121 | ​ |  | 23 | ​ |  | 1
Segment Totals | ​ |  | 349 | ​ |  | 161 | ​ |  | 173
Corporate | ​ |  | — | ​ |  | 1 | ​ |  | —
Consolidated Totals | ​ | $ | 349 | ​ | $ | 162 | ​ | $ | 173
​ Geographic Information Seaboard had sales in Colombia totaling $778 million, $757 million and $495 million for the years ended December 31, 2019, 2018 and 2017, respectively, representing approximately 11%, 11% and 9% of total sales for each respective year. Seaboard had sales in South Africa totaling $668 million, $589 million and $581 million for the years ended December 31, 2019, 2018 and 2017, respectively, representing approximately 10%, 9% and 10% of total sales for each respective year. No other individual foreign country accounted for 10% or more of sales to external customers. The following table provides a geographic summary of net sales based on the location of product delivery: ​
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​ | ​ | Years ended December 31,
(Millions of dollars) |  | 2019 |  | 2018 |  | 2017
Caribbean, Central and South America | ​ | $ | 2,792 | ​ | $ | 2,753 | ​ | $ | 2,295
Africa | ​ |  | 1,859 | ​ |  | 1,668 | ​ |  | 1,483
United States | ​ |  | 1,447 | ​ |  | 1,408 | ​ |  | 1,271
Pacific Basin and Far East | ​ |  | 370 | ​ |  | 381 | ​ |  | 393
Canada/Mexico | ​ | ​ | 308 | ​ | ​ | 255 | ​ | ​ | 238
Europe | ​ |  | 52 | ​ |  | 100 | ​ |  | 99
All other | ​ |  | 12 | ​ |  | 18 | ​ |  | 30
Totals | ​ | $ | 6,840 | ​ | $ | 6,583 | ​ | $ | 5,809
​ The following table provides a geographic summary of Seaboard’s property, plant and equipment according to their physical location and primary port for the vessels: ​
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​ | ​ | December 31, | ​
(Millions of dollars) |  | 2019 |  | 2018 | ​
United States | ​ | $ | 899 | ​ | $ | 775 | ​
Singapore | ​ | ​ | 139 | ​ | ​ | 21 | ​
Dominican Republic | ​ |  | 103 | ​ |  | 109 | ​
Argentina | ​ |  | 59 | ​ |  | 50 | ​
Senegal | ​ | ​ | 43 | ​ | ​ | 48 | ​
Zambia | ​ | ​ | 38 | ​ | ​ | 20 | ​
Ivory Coast | ​ | ​ | 33 | ​ | ​ | 36 | ​
All other | ​ |  | 117 | ​ |  | 101 | ​
Totals | ​ | $ | 1,431 | ​ | $ | 1,160 | ​
​

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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