XML 27 R16.htm IDEA: XBRL DOCUMENT v3.25.3
Income Taxes
 9 Months Ended
Sep. 27, 2025
Income Taxes  
Income Taxes

Note 8 – Income Taxes

In July 2025, the U.S. signed into law the One Big Beautiful Bill Act (“OBBBA”). The OBBBA imposed various changes to U.S. federal income tax regulation, including restoring 100% bonus depreciation, removing the requirement to capitalize and amortize domestic research and development expenditures, increasing interest deductibility and reducing certain international deductions. The OBBBA also included certain modifications to the Inflation Reduction Act of 2022, including extending the clean fuel production tax credit from 2027 through 2029. The effective provisions of the OBBBA were reflected in Seaboard’s financial results for the three months ended September 27, 2025, and there was no material impact to income tax expense. International provisions will generally be effective beginning in 2026, and Seaboard continues to evaluate the potential impact of the OBBBA on those provisions to its financial statements.

Seaboard assesses the realizability of its deferred tax assets each reporting period. If it is more likely than not that deferred tax assets will not be realized, a valuation allowance is established and maintained until there is sufficient evidence to support its reversal. Realizability of deferred tax assets is based on the weight of available positive and negative evidence to estimate whether sufficient future taxable income will be generated. As of September 27, 2025, Seaboard’s U.S. operations were in a historical three-year cumulative loss position, which is significant objective negative evidence under U.S. GAAP, specifically Accounting Standards Codification (“ASC”) 740 Income Taxes. Also, ASC 740 generally precludes consideration of expected future earnings in determining whether deferred tax assets are realizable when in a cumulative loss position. Seaboard’s valuation allowance on certain domestic U.S. deferred tax assets could reverse in future periods when positive sufficient evidence is achieved, such as when U.S. operations are in a historical three-year cumulative income position. A reversal would result in a benefit to income taxes and an increase in net income during the applicable period in which the allowance is reversed.

​

​