v3.26.1
Basis of Presentation and Accounting Policies (Policies)
3 Months Ended
Apr. 04, 2026
Basis of Presentation and Accounting Policies  
Basis of Presentation

Basis of Presentation

The accompanying condensed consolidated financial statements of Seaboard Corporation and its subsidiaries (collectively, “Seaboard”) have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the rules and regulations for reporting on Form 10-Q. Accordingly, they do not include certain information and disclosures required for comprehensive financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in Seaboard’s annual report on Form 10-K for the year ended December 31, 2025 (“2025 10-K”). The unaudited financial information reflects all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented. Seaboard’s first three quarterly periods include approximately 13 weekly periods ending on the Saturday closest to the end of March, June and September. Results of operations and cash flows for the periods presented are not necessarily indicative of results to be expected for the full year.

Related-Party Transactions

Related-Party Transactions

Seaboard has investments in 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. 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 affiliate sales transactions cannot be distinguished without making numerous assumptions, primarily with respect to mark-to-market accounting for commodity derivatives. Purchases of raw materials or services from related parties included in cost of sales were $20 million and $15 million for the three months ended April 4, 2026 and March 29, 2025, respectively.

Other Income (Loss), Net

Other Income (Loss), Net

The components of other income (loss), net in the condensed consolidated statements of comprehensive income for the periods presented were as follows:

Three Months Ended

April 4,

March 29,

(Millions of dollars)

2026

2025

Interest and dividend income

$

9

$

18

Investment losses, net

(7)

(10)

Foreign currency gains (losses), net

8

(9)

Miscellaneous, net

5

Total other income (loss), net

$

15

$

(1)

Supplemental Cash Flow Information

Supplemental Cash Flow Information

Non-cash activities for the three months ended April 4, 2026 and March 29, 2025, included capital expenditures of $48 million and less than $1 million, respectively, that were in other current liabilities and accounts payable. The following table includes supplemental cash and non-cash information related to leases. Seaboard reports the amortization of right-of-use (“ROU”) assets and changes in operating lease liabilities in other liabilities, exclusive of debt in the condensed consolidated statements of cash flows.

Three Months Ended

April 4,

March 29,

(Millions of dollars)

2026

2025

Cash paid for amounts included in the measurement of lease liabilities:

Operating cash flows from operating leases

$

39

$

42

Operating cash flows from finance leases

1

1

Financing cash flows from finance leases

8

10

ROU assets obtained in exchange for new lease liabilities:

Operating leases

$

18

$

5

Finance leases

8

9

Recently Issued Accounting Standards Not Yet Adopted

Recently Issued Accounting Standards Not Yet Adopted

In November 2024, the Financial Accounting Standards Board (“FASB”) issued guidance that requires disclosure of incremental income statement expense information on an annual and interim basis, primarily through additional expense disclosures including disaggregation of specific expense categories including, but not limited to, purchases of inventory, employee compensation, depreciation, amortization and selling expenses. Prospective application is required, and retrospective application is permitted. Seaboard will adopt this guidance for the annual reporting period beginning on January 1, 2027, and interim periods within the annual year beginning on January 1, 2028. Seaboard is evaluating the impact this guidance will have on its disclosures.