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Investments in Affiliates | 12 Months Ended
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Dec. 31, 2022
Investments in Affiliates |
Investments in Affiliates | Note 6 – Investments in Affiliates Seaboard has investments in several non-consolidated affiliates to further its business strategies and partner with other entities that have expertise in certain industries and countries. These investments are all accounted for using the equity method of accounting. ​
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​ | ​ | Investments in and | ​ | Income (Loss) | ​
​ | ​ | Advances to Affiliates | ​ | from Affiliates | ​
​ |  | December 31, | ​ | Years ended December 31, | ​
(Millions of dollars) |  | 2022 |  | 2021 | ​ | 2022 |  | 2021 |  | 2020 | ​
Pork | ​ | $ | 152 | ​ | $ | 142 | ​ | $ | 24 | ​ | $ | 3 | ​ | $ | (9) | ​
CT&M | ​ | ​ | 210 | ​ | ​ | 224 | ​ | ​ | 21 | ​ | ​ | 18 | ​ | ​ | (2) | ​
Marine | ​ | ​ | 36 | ​ | ​ | 33 | ​ | ​ | 4 | ​ | ​ | 6 | ​ | ​ | 2 | ​
Sugar and Alcohol | ​ |  | 2 | ​ |  | 4 | ​ |  | — | ​ |  | — | ​ |  | 1 | ​
Power | ​ | ​ | 3 | ​ | ​ | 3 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​
Turkey | ​ |  | 350 | ​ |  | 245 | ​ |  | 103 | ​ |  | (20) | ​ |  | (10) | ​
Segment/Consolidated Totals | ​ | $ | 753 | ​ | $ | 651 | ​ | $ | 152 | ​ | $ | 7 | ​ | $ | (18) | ​
​ Related-party transactions with these non-consolidated affiliates were as follows: ​
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​ | ​ | December 31, | ​
(Millions of dollars) |  | 2022 |  | ​ | 2021 |  | ​ | 2020 | ​
Product sales to related parties | ​ | $ | 1,463 |  | $ | 1,396 |  | $ | 1,125 | ​
Service revenue to related parties | ​ | $ | 20 | ​ | $ | 20 | ​ | $ | 21 | ​
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Purchases from related parties included in Cost of Sales(a) | ​ | $ | 91 |  | $ | — |  | $ | — | ​
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(a) | As Seaboard conducts its agricultural commodity trading business with third parties, consolidated subsidiaries and non-consolidated affiliates on an interrelated basis, cost of sales on affiliates cannot be distinguished without making numerous assumptions, primarily with respect to mark-to-market accounting for commodity derivatives.
Seaboard had $195 million and $128 million of receivables due from affiliates primarily related to product sales as of December 31, 2022 and 2021, respectively. Also, Seaboard had $2 million and $1 million of payables due to affiliates primarily related to purchases of inventory at December 31, 2022 and 2021, respectively. Deferred revenue from affiliates of $12 million and $24 million at December 31, 2022 and 2021, respectively, represents advance payments on future shipments of commodities in the CT&M segment. There were notes receivables due from affiliates outstanding of $2 million and $1 million as of December 31, 2022 and 2021, respectively. The Pork segment has noncontrolling joint ventures in Seaboard Triumph Foods, LLC (“STF”) (50%), which operates a pork processing plant, Daily’s Premium Meats, LLC (“Daily’s”) (50%), which produces raw and pre-cooked bacon, and Seaboard de Mexico USA LLC (“Seaboard de Mexico”) (50%), which bones hams. Seaboard’s Pork segment supplies raw materials to Daily’s, STF and Seaboard de Mexico for processing and also provides marketing services to Daily’s and STF for its pork products. STF supplies feedstock for the Pork segment’s renewable diesel operations. On January 1, 2022, Seaboard sold a 50% interest in Seaboard de Mexico to Triumph Foods, LLC, a partner in the Pork segment’s other joint ventures, for cash proceeds of approximately $9 million, net of cash sold. As a result of this transaction, Seaboard de Mexico was deconsolidated and a $6 million gain on sale was recognized in Miscellaneous, net. Combined financial information for the Pork segment’s non-consolidated affiliates was as follows: ​
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Pork Segment |  | ​ | December 31,
(Millions of dollars) | ​ | ​ | 2022 | ​ | ​ | 2021 | ​ | ​ | 2020
Net sales | ​ | $ | 2,417 | ​ | $ | 2,010 | ​ | $ | 1,543
Net income (loss) | ​ | $ | 48 | ​ | $ | 5 | ​ | $ | (18)
Total assets | ​ | $ | 615 | ​ | $ | 584 | ​ | $ | 586
Total liabilities | ​ | $ | 312 | ​ | $ | 302 | ​ | $ | 245
Total equity | ​ | $ | 303 | ​ | $ | 282 | ​ | $ | 341
​ The CT&M segment has noncontrolling interests in foreign businesses conducting flour, maize and feed milling, baking operations, poultry production and processing, and agricultural commodity trading. The CT&M segment supplies commodities to the majority of its milling affiliates. As of December 31, 2022, the location and percentage ownership of CT&M’s affiliates were as follows: Botswana (50%), Democratic Republic of Congo (50%), Gambia (50%), Kenya (18.47%-49%), Lesotho (50%), Mauritania (50%), Morocco (15.13%-17.71%), Nigeria (25%-48.33%), Senegal (49%), South Africa (50%), Tanzania (11.76%-49%), Uganda (23.5%-49%) and Zambia (49%) in Africa; Colombia (40%-42%), Ecuador (25%-50%), Guyana (50%), and Peru (50%) in South America; Jamaica (50%) and Haiti (23.33%) in the Caribbean; Turkey (25%) in Europe; and Canada (45%) and the U.S. (20%) in North America. As of December 31, 2022, the CT&M segment’s carrying value of certain investments in affiliates was more than its share of the affiliates’ book value by $49 million. The excess is attributable primarily to the valuation of property, plant and equipment and intangible assets, with basis adjustments amortized to income (loss) from affiliates over the remaining life of the assets. During the second quarter of 2022, this segment sold a 20% interest in its North American protein and commodity trading company to the majority owner for cash proceeds of $12 million. Combined financial information for the CT&M segment’s non-consolidated affiliates was as follows: ​
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CT&M Segment | ​ | December 31,
(Millions of dollars) |  | 2022 |  | ​ | 2021 |  | ​ | 2020
Net sales | ​ | $ | 3,186 |  | $ | 2,766 |  | $ | 2,482
Net income (loss) | ​ | $ | 40 |  | $ | 47 |  | $ | (2)
Total assets | ​ | $ | 1,848 |  | $ | 1,798 |  | $ | 1,745
Total liabilities | ​ | $ | 1,250 |  | $ | 1,199 |  | $ | 1,185
Total equity | ​ | $ | 598 |  | $ | 599 |  | $ | 560
​ The Marine segment has noncontrolling interests in foreign businesses that primarily own cargo terminal operations in the Caribbean (16.87%- 21.02%) which provide terminal and stevedoring services to the Marine segment. As of December 31, 2022, the Marine segment’s carrying value of certain investments in affiliates was less than its share of the affiliates’ book value by $40 million. The difference is attributable primarily to the valuation of property, plant and equipment and impairments taken by Seaboard, but not the respective entity, with basis adjustments amortized to income (loss) from affiliates over the remaining life of the assets. Combined financial information for the Marine segment’s non-consolidated affiliates was as follows: ​
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Marine Segment |  | ​ | December 31,
(Millions of dollars) |  | ​ | 2022 | ​ | ​ | 2021 | ​ | ​ | 2020
Net sales | ​ | $ | 82 | ​ | $ | 74 | ​ | $ | 66
Net income | ​ | $ | 21 | ​ | $ | 27 | ​ | $ | 8
Total assets | ​ | $ | 256 | ​ | $ | 245 | ​ | $ | 253
Total liabilities | ​ | $ | 61 | ​ | $ | 88 | ​ | $ | 98
Total equity | ​ | $ | 195 | ​ | $ | 157 | ​ | $ | 155
​ The Sugar and Alcohol segment has noncontrolling interests in two sugar-related businesses in Argentina (50%). Combined financial information for the Sugar and Alcohol segment’s non-consolidated affiliates was as follows: ​
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Sugar and Alcohol Segment | ​ | December 31,
(Millions of dollars) |  | 2022 |  | ​ | 2021 |  | ​ | 2020
Net sales | ​ | $ | 8 |  | $ | 6 |  | $ | 7
Net income | ​ | $ | — |  | $ | — |  | $ | 1
Total assets | ​ | $ | 6 |  | $ | 8 |  | $ | 14
Total liabilities | ​ | $ | 2 |  | $ | 1 |  | $ | 2
Total equity | ​ | $ | 4 |  | $ | 7 |  | $ | 12
​ The Power segment has noncontrolling interests in two energy-related businesses in the Dominican Republic (45% and 50%). Combined financial information for the Power segment’s non-consolidated affiliates was as follows: ​
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Power Segment | ​ | December 31,
(Millions of dollars) |  | 2022 |  | ​ | 2021 |  | ​ | 2020
Net sales | ​ | $ | 1 |  | $ | 1 |  | $ | 1
Net income | ​ | $ | — |  | $ | 1 |  | $ | —
Total assets | ​ | $ | 9 |  | $ | 12 |  | $ | 12
Total liabilities | ​ | $ | 3 |  | $ | 5 |  | $ | 6
Total equity | ​ | $ | 6 |  | $ | 7 |  | $ | 6
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​ The Turkey segment represents Seaboard’s noncontrolling interest in Butterball. Since 2010, Seaboard has held warrants, which upon exercise for a nominal price enabled Seaboard to acquire an additional 5% equity interest in Butterball. The warrants qualified for equity treatment under GAAP and were classified as investments in and advances to affiliates in the consolidated balance sheets. The warrant agreement essentially provided Seaboard with a 52.5% economic interest and therefore Seaboard has historically recorded 52.5% of Butterball’s earnings as income (loss) from affiliates in the consolidated statements of comprehensive income. During 2022, Seaboard exercised the warrants resulting in no impact to the financial statements. All significant corporate governance matters upon exercise remained equally shared between Seaboard and its partner in Butterball and Seaboard did not acquire any new consequential rights upon exercise of the warrants. Within total assets, Butterball had trade name intangible assets of $111 million and goodwill of $61 million as of December 31, 2022. Butterball’s financial information was as follows: ​
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Turkey Segment | ​ | December 31, | ​
(Millions of dollars) |  | 2022 |  | ​ | 2021 |  | ​ | 2020 | ​
Net sales | ​ | $ | 2,050 |  | $ | 1,792 |  | $ | 1,675 | ​
Operating income (loss) | ​ | $ | 202 | ​ | $ | (34) | ​ | $ | (6) | ​
Net income (loss) | ​ | $ | 196 |  | $ | (38) |  | $ | (20) | ​
Total assets | ​ | $ | 1,081 |  | $ | 991 |  | $ | 993 | ​
Total liabilities | ​ | $ | 406 |  | $ | 517 |  | $ | 481 | ​
Total equity | ​ | $ | 675 |  | $ | 474 |  | $ | 512 | ​
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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI https://asc.fasb.org/topic&trid=2196965 + Details
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