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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 3, 2021

OR

 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________________________ to __________________________

Commission File Number:  1-3390

Seaboard Corporation

(Exact name of registrant as specified in its charter)

Delaware

04-2260388

(State or other jurisdiction of incorporation)

(I.R.S. Employer Identification No.)

9000 West 67th Street, Merriam, Kansas

66202

(Address of principal executive offices)

(Zip Code)

(913) 676-8800

Registrant’s telephone number, including area code

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock $1.00 Par Value

SEB

NYSE American

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes   No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes   No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

Accelerated Filer

Non-Accelerated Filer

Smaller Reporting Company

Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes  No  

There were 1,160,779 shares of common stock, $1.00 par value per share, outstanding on April 26, 2021.

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

SEABOARD CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)

Three Months Ended

April 3,

March 28,

(Millions of dollars except share and per share amounts)

2021

    

2020

 

Net sales:

Products (includes affiliate sales of $293 and $259)

$

1,731

$

1,382

Services (includes affiliate sales of $5 and $6)

 

313

 

283

Other

 

15

 

18

Total net sales

 

2,059

 

1,683

Cost of sales and operating expenses:

Products

 

1,606

 

1,278

Services

 

261

 

256

Other

 

14

 

14

Total cost of sales and operating expenses

 

1,881

 

1,548

Gross income

 

178

 

135

Selling, general and administrative expenses

 

86

 

72

Operating income

 

92

 

63

Other income (expense):

Interest expense

 

10

 

(5)

Interest income

 

5

 

7

Income (loss) from affiliates

 

6

 

(4)

Other investment income (loss), net

 

71

 

(225)

Foreign currency gains (losses), net

 

9

 

(11)

Miscellaneous, net

 

6

 

1

Total other income (loss), net

 

107

 

(237)

Earnings (loss) before income taxes

 

199

 

(174)

Income tax benefit (expense)

 

(20)

 

71

Net earnings (loss)

$

179

$

(103)

Less: Net loss (income) attributable to noncontrolling interests

 

 

Net earnings (loss) attributable to Seaboard

$

179

$

(103)

Earnings (loss) per common share

$

154.03

$

(88.73)

Average number of shares outstanding

 

1,160,779

 

1,163,888

Other comprehensive income, net of income tax expense of $1 and $0:

Foreign currency translation adjustment

 

15

 

3

Unrecognized pension cost

 

1

 

2

Other comprehensive income, net of tax

$

16

$

5

Comprehensive income (loss)

 

195

 

(98)

Less: Comprehensive loss (income) attributable to noncontrolling interests

 

 

Comprehensive income (loss) attributable to Seaboard

$

195

$

(98)

See accompanying notes to condensed consolidated financial statements.

2

SEABOARD CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited)

April 3,

December 31,

 

(Millions of dollars except share and per share amounts)

2021

    

2020

 

Assets

Current assets:

Cash and cash equivalents

$

65

$

76

Short-term investments

 

1,384

 

1,465

Receivables, net of allowance for credit losses of $30 and $28

 

672

 

532

Inventories

 

1,360

 

1,178

Other current assets

 

130

 

103

Total current assets

 

3,611

 

3,354

Property, plant and equipment, net

 

1,657

 

1,582

Operating lease right of use assets, net

375

390

Investments in and advances to affiliates

 

677

 

698

Goodwill

 

172

 

167

Other non-current assets

 

201

 

208

Total assets

$

6,693

$

6,399

Liabilities and Stockholders’ Equity

Current liabilities:

Lines of credit

$

346

$

222

Current maturities of long-term debt

 

9

 

55

Accounts payable

 

338

 

276

Deferred revenue (includes $30 and $38 from affiliates)

88

89

Operating lease liabilities

114

111

Other current liabilities

 

288

 

323

Total current liabilities

 

1,183

 

1,076

Long-term debt, less current maturities

 

704

 

707

Deferred income taxes

 

119

 

103

Long-term operating lease liabilities

298

318

Other liabilities

 

369

 

367

Total non-current liabilities

 

1,490

 

1,495

Commitments and contingent liabilities

Stockholders’ equity:

Common stock of $1 par value. Authorized 1,250,000 shares; issued and outstanding 1,160,779 shares in 2021 and 2020

 

1

 

1

Accumulated other comprehensive loss

 

(455)

 

(471)

Retained earnings

 

4,463

 

4,287

Total Seaboard stockholders’ equity

 

4,009

 

3,817

Noncontrolling interests

 

11

 

11

Total equity

 

4,020

 

3,828

Total liabilities and stockholders’ equity

$

6,693

$

6,399

See accompanying notes to condensed consolidated financial statements.

3

SEABOARD CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Changes in Equity

(Unaudited)

Accumulated

Other

Common

Comprehensive

Retained

Noncontrolling

(Millions of dollars)

Stock

Loss

Earnings

Interests

Total

Balances, December 31, 2019

$

1

$

(440)

$

4,030

$

10

$

3,601

Adoption of accounting guidance (see Note 1)

(3)

(3)

Comprehensive income (loss):

Net loss

(103)

(103)

Other comprehensive income, net of tax

5

5

Repurchase of common stock

(13)

(13)

Dividends on common stock ($2.25/share)

(3)

(3)

Balances, March 28, 2020

$

1

$

(435)

$

3,908

$

10

$

3,484

Balances, December 31, 2020

$

1

$

(471)

$

4,287

$

11

$

3,828

Comprehensive income:

Net earnings

179

179

Other comprehensive income, net of tax

16

16

Dividends on common stock ($2.25/share)

(3)

(3)

Balances, April 3, 2021

$

1

$

(455)

$

4,463

$

11

$

4,020

See accompanying notes to condensed consolidated financial statements.

4

SEABOARD CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited)

Three Months Ended

 

April 3,

March 28,

(Millions of dollars)

2021

    

2020

 

Cash flows from operating activities:

Net earnings (loss)

$

179

$

(103)

Adjustments to reconcile net earnings (loss) to cash from operating activities:

Depreciation and amortization

 

42

 

36

Deferred income taxes

 

14

 

(64)

Loss (income) from affiliates

 

(6)

 

4

Dividends received from affiliates

 

28

 

5

Other investment loss (income), net

 

(71)

 

225

Other, net

 

(4)

 

5

Changes in assets and liabilities:

Receivables, net of allowance for credit losses

 

(138)

 

(48)

Inventories

 

(177)

 

(102)

Other assets

 

(20)

 

(1)

Accounts payable

27

(32)

Other liabilities, exclusive of debt

 

(24)

 

(31)

Net cash from operating activities

 

(150)

 

(106)

Cash flows from investing activities:

Purchase of short-term investments

 

(210)

 

(200)

Proceeds from the sale of short-term investments

 

356

 

284

Proceeds from the maturity of short-term investments

 

10

 

17

Capital expenditures

 

(96)

 

(55)

Investments in and advances to affiliates, net

 

 

(5)

Principal payments received on notes receivable

11

Purchase of long-term investments

 

(9)

 

(35)

Other, net

 

7

 

Net cash from investing activities

 

69

 

6

Cash flows from financing activities:

Uncommitted lines of credit, net

124

96

Draws under committed lines of credit

172

70

Repayments of committed lines of credit

 

(172)

 

(70)

Principal payments of long-term debt

 

(48)

 

(6)

Repurchase of common stock

 

 

(13)

Dividends paid

 

(3)

 

(3)

Other, net

 

(2)

 

3

Net cash from financing activities

 

71

 

77

Effect of exchange rate changes on cash and cash equivalents

 

(1)

 

(1)

Net change in cash and cash equivalents

 

(11)

 

(24)

Cash and cash equivalents at beginning of year

 

76

 

125

Cash and cash equivalents at end of period

$

65

$

101

See accompanying notes to condensed consolidated financial statements.

5

SEABOARD CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 1 – Basis of Presentation and Accounting Policies

Basis of Presentation

The condensed consolidated financial statements include the accounts of Seaboard Corporation and its subsidiaries (“Seaboard”). These financial statements should be read in conjunction with the consolidated financial statements of Seaboard for the year ended December 31, 2020 as filed in its annual report on Form 10-K. Seaboard’s first three quarterly periods include approximately 13 weekly periods ending on the Saturday closest to the end of March, June and September. Seaboard’s year-end is December 31. Preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Results of operations for interim periods are not necessarily indicative of results to be expected for the full year.

The unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments that, in the opinion of management, are necessary for a fair presentation of financial position, results of operations and cash flows. Seaboard has consistently applied all accounting policies as disclosed in its latest annual report on Form 10-K to all periods presented in these condensed consolidated financial statements. During the fourth quarter of 2020, Seaboard elected to change its method of valuing its inventories from the last-in, first-out (“LIFO”) method to the first-in, first-out (“FIFO”) method. The effects of the change in accounting principle from LIFO to FIFO were retrospectively applied and, as a result, certain financial statement line items in the condensed consolidated statements of comprehensive income, changes in equity and cash flows for the three months ended March  28, 2020 were adjusted as necessary. For further information, refer to the annual report on Form 10-K for the year ended December 31, 2020.

Supplemental Cash Flow Information

Non-cash investing activities for the three months ended April 3, 2021, included purchases of property, plant and equipment in accounts payable of $24 million. The following table includes supplemental cash and non-cash information related to leases. Seaboard reports the amortization of right of use 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 3,

March 28,

(Millions of dollars)

2021

2020

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

Operating cash flows from operating leases

$

36

$

35

Operating cash flows from finance leases

1

1

Financing cash flows from finance leases

2

1

Operating right of use assets obtained in exchange for new operating lease liabilities

$

13

$

38

Finance right of use assets obtained in exchange for new finance lease liabilities

4

8

Goodwill and Other Intangible Assets

The change in the carrying amount of goodwill was related to foreign currency exchange differences of $5 million within the Commodity Trading and Milling (“CT&M”) segment. As of April 3, 2021, intangible assets, included in other non-current assets, were $54 million, net of accumulated amortization of $25 million.

Income Taxes

Seaboard computes its year-to-date provision for income taxes by applying the estimated annual effective tax rate to year-to-date pre-tax income or loss and adjusts the provision for discrete tax items recorded in the period.

Accounting Standard Recently Adopted

On January 1, 2020, Seaboard adopted guidance which requires the use of a new current expected credit loss model in order to determine the allowance for credit losses with respect to receivables, among other financial instruments. This model estimates the lifetime of expected credit loss and replaces the existing incurred loss model. As a result of this adoption, Seaboard recorded a cumulative-effect adjustment of $3 million on January 1, 2020 that decreased retained earnings and increased the allowance for credit losses.

6

Note 2 – Investments

The following is a summary of the estimated fair value of short-term investments classified as trading securities:

April 3,

December 31,

(Millions of dollars)

 

2021

2020

Domestic equity securities

$

697

$

702

Domestic debt securities

392

496

Foreign equity securities

149

133

Foreign debt securities

106

68

Money market funds held in trading accounts

 

18

 

47

Other trading securities

22

19

Total trading short-term investments

$

1,384

$

1,465

The change in unrealized gains (losses) related to trading securities still held at the end of the respective reporting period was $65 million and ($236) million for the three months ended April 3, 2021 and March 28, 2020, respectively.

Seaboard had $42 million and $29 million of short-term investments denominated in foreign currencies, primarily euros, as of April 3, 2021 and December 31, 2020, respectively.

Note 3 – Inventories

The following is a summary of inventories:

April 3,

December 31,

 

(Millions of dollars)

    

2021

    

2020

At lower of FIFO cost and net realizable value (NRV):

Hogs and materials

$

467

$

437

Pork products and materials

 

56

 

46

Grains, oilseeds and other commodities

 

472

 

380

Biodiesel

101

72

Sugar produced and in process

 

26

 

24

Other

 

50

 

61

Total inventories at lower of FIFO cost and NRV

 

1,172

1,020

Grain, flour and feed at lower of weighted average cost and NRV

 

188

 

158

Total inventories

$

1,360

$

1,178

Note 4 – Lines of Credit, Long-Term Debt, Commitments and Contingencies

Lines of Credit

The outstanding balances under uncommitted lines of credit were $346 million and $222 million as of April 3, 2021 and December 31, 2020, respectively. Of the outstanding balance at April 3, 2021, $150 million was denominated in foreign currencies with $109 million denominated in the South African rand, $24 million denominated in the Canadian dollar and the remaining in various other currencies. There were no outstanding balances under committed lines of credit as of April 3, 2021 and December 31, 2020. The weighted average interest rate for outstanding lines of credit was 2.64% and 3.89% as of April 3, 2021 and December 31, 2020, respectively.

Long-term Debt

Long-term debt includes borrowings under term loans and other contractual obligations for payment, including notes payable. The following is a summary of long-term debt:

April 3,

December 31,

(Millions of dollars)

2021

2020

Term Loans due 2027-2028

$

712

$

714

Foreign subsidiary obligations

2

49

Total debt at face value

714

763

Current maturities and unamortized discount and costs

(10)

(56)

Long-term debt, less current maturities and unamortized discount and costs

$

704

$

707

7

The interest rate on the Term Loan due 2028 was 1.73% and 1.77% as of April 3, 2021 and December 31, 2020, respectively. The weighted average interest rate on Seaboard’s foreign subsidiary obligations was 7.70% and 3.51% as of April 3, 2021 and December 31, 2020, respectively. Foreign subsidiary obligations as of December 31, 2020, included a $46 million euro-denominated note payable related to a 2018 acquisition that was repaid in January 2021.

Seaboard was in compliance with all restrictive debt covenants relating to these agreements as of April 3, 2021.

Legal Proceedings

On June 28, 2018, twelve indirect purchasers of pork products filed a class action complaint in the U.S. District Court for the District of Minnesota (the “District Court”) against several pork processors, including Seaboard Foods LLC, and Agri Stats, Inc., a company described in the complaint as a data sharing service. The complaint also named Seaboard Corporation as a defendant. Additional class action complaints making similar claims on behalf of putative classes of direct and indirect purchasers were later filed in the District Court, and three additional actions by standalone plaintiffs (including the Commonwealth of Puerto Rico) were filed in or transferred to the District Court. The consolidated actions are styled In re Pork Antitrust Litigation. The operative complaints allege, among other things, that beginning in January 2009, the defendants conspired and combined to fix, raise, maintain, and stabilize the price of pork products in violation of U.S. antitrust laws by coordinating their output and limiting production, allegedly facilitated by the exchange of non-public information about prices, capacity, sales volume and demand through Agri Stats, Inc. The complaints on behalf of the putative classes of indirect purchasers also assert claims under various state laws, including state antitrust laws, unfair competition laws, consumer protection statutes, and common law unjust enrichment. The relief sought in the respective complaints includes treble damages, injunctive relief, pre- and post-judgment interest, costs, and attorneys’ fees. On October 16, 2020, the District Court denied defendants’ motions to dismiss the amended complaints, but the District Court later dismissed all claims against Seaboard Corporation without prejudice.

In early 2021, two additional standalone plaintiffs filed similar actions in District Courts in Florida and Texas, respectively. These actions are currently stayed pending resolution of a transfer motion before the Judicial Panel on Multidistrict Litigation.

Seaboard intends to defend all of these cases vigorously. It is impossible at this stage either to determine the probability of a favorable or unfavorable outcome resulting from these suits, or to reasonably estimate the amount of potential loss or range of potential loss, if any, resulting from the suits.

On March 20, 2018, the bankruptcy trustee (the “Trustee”) for Cereoil Uruguay S.A. (“Cereoil”) filed a suit in the Bankruptcy Court of First Instance in Uruguay that was served during the second quarter of 2018 naming as parties Seaboard and Seaboard’s subsidiaries, Seaboard Overseas Limited (“SOL”) and Seaboard Uruguay Holdings Ltd. (“Seaboard Uruguay”). Seaboard has a 45% indirect ownership of Cereoil. The suit seeks an order requiring Seaboard, SOL and Seaboard Uruguay to reimburse Cereoil the amount of $22 million, contending that deliveries of soybeans to SOL pursuant to purchase agreements should be set aside as fraudulent conveyances. Seaboard intends to defend this case vigorously. It is impossible at this stage to determine the probability of a favorable or unfavorable outcome resulting from this suit. In the event of an adverse ruling, Seaboard and its two subsidiaries could be ordered to pay the amount of $22 million. Any award in this case would offset against any award in the additional case described below filed by the Trustee on April 27, 2018.

On April 27, 2018, the Trustee for Cereoil filed another suit in the Bankruptcy Court of First Instance in Uruguay that was served during the second quarter of 2018 naming as parties Seaboard, SOL, Seaboard Uruguay, all directors of Cereoil, including two individuals employed by Seaboard who served as directors at the behest of Seaboard, and the Chief Financial Officer of Cereoil, an employee of Seaboard who also served at the behest of Seaboard (collectively, the “Cereoil Defendants”). The Trustee contends that the Cereoil Defendants acted with willful misconduct to cause Cereoil’s insolvency, and thus should be ordered to pay all liabilities of Cereoil, net of assets. The bankruptcy filing lists total liabilities of $53 million and assets of $30 million. Seaboard intends to defend this case vigorously. It is impossible at this stage to determine the probability of a favorable or unfavorable outcome resulting from this suit. In the event of an adverse ruling, Seaboard and the other Cereoil Defendants could be ordered to pay the amount of the net indebtedness of Cereoil, which based on the bankruptcy schedules would total $23 million. It is possible that the net indebtedness could be higher than this amount if Cereoil’s liabilities are greater than $53 million and/or Cereoil’s assets are worth less than $30 million. In addition, in the event of an adverse ruling, the Bankruptcy Court of First Instance could order payment of the Trustee’s professional fees, interest, and other expenses. Any award in this case would offset against any award in the case described above filed on March 20, 2018.

8

A creditor of Cereoil which has a claim in the bankruptcy proceeding pending in Uruguay has threatened to bring legal action in the U.S. against Seaboard alleging on various legal theories that Seaboard is responsible for indebtedness of approximately $10 million, plus accrued interest. Seaboard will vigorously defend this action should it be brought.

On May 15, 2018, the Trustee for Nolston S.A. (“Nolston”) filed a suit in the Bankruptcy Court of First Instance in Uruguay that was served during the second quarter of 2018 naming as parties Seaboard and the other Cereoil Defendants. Seaboard has a 45% indirect ownership of Nolston. The Trustee contends that the Cereoil Defendants acted with willful misconduct to cause Nolston’s insolvency, and thus should be ordered to pay all liabilities of Nolston, net of assets. The bankruptcy filing lists total liabilities of $29 million and assets of $15 million. Seaboard intends to defend this case vigorously. It is impossible at this stage to determine the probability of a favorable or unfavorable outcome resulting from this suit. In the event of an adverse ruling, Seaboard and the other Cereoil Defendants could be ordered to pay the amount of the net indebtedness of Nolston, which based on the bankruptcy schedules would total $14 million. It is possible that the net indebtedness could be higher than this amount if Nolston’s liabilities are greater than $29 million and/or Nolston’s assets are worth less than $15 million. In addition, in the event of an adverse ruling, the Bankruptcy Court of First Instance could order payment of the Trustee’s professional fees, interest, and other expenses.

Seaboard is subject to various administrative and judicial proceedings and other legal matters related to the normal conduct of its business. In the opinion of management, the ultimate resolution of these items is not expected to have a material adverse effect on the consolidated financial statements of Seaboard.

Guarantees

Certain of the non-consolidated affiliates and third-party contractors who perform services for Seaboard have bank debt supporting their underlying operations. From time to time, Seaboard will provide guarantees of that debt in order to further Seaboard’s business objectives. Seaboard does not issue guarantees of third parties for compensation. As of April 3, 2021, guarantees outstanding to affiliates and third parties were not material. Seaboard has not accrued a liability for any of the affiliate or third-party guarantees as management considers the likelihood of loss to be remote.

Note 5 – Employee Benefits

Seaboard has qualified defined benefit pension plans for its domestic salaried and clerical employees that were hired before January 1, 2014. Effective January 1, 2021, Seaboard transferred assets and liabilities for employees of certain Seaboard subsidiaries into a successor plan. Seaboard also sponsors non-qualified, unfunded supplemental executive plans, and has certain individual, non-qualified, unfunded supplemental retirement agreements for certain retired employees. Management has no plans to provide funding for any plans in advance of when the benefits are paid.

The net periodic benefit cost for all of these plans were as follows:

Three Months Ended

April 3,

March 28,

 

(Millions of dollars)

    

2021

    

2020

 

Components of net periodic benefit cost:

Service cost

$

3

$

3

Interest cost

 

2

 

3

Expected return on plan assets

 

(3)

 

(3)

Amortization and other

 

2

 

3

Net periodic benefit cost

$

4

$

6

9

Note 6 – Derivatives and Fair Value of Financial Instruments

The following tables shows assets and liabilities measured at fair value on a recurring basis, and also the level within the fair value hierarchy used to measure each category of assets and liabilities. The trading securities classified as other current assets below are assets held for Seaboard’s deferred compensation plans.

    

Balance

    

    

    

 

April 3,

 

(Millions of dollars)

2021

Level 1

Level 2

Level 3

 

Assets:

Trading securities – short-term investments:

Domestic equity securities

$

697

$

697

$

$

Domestic debt securities

392

152

240

Foreign equity securities

 

149

 

149

 

 

Foreign debt securities

 

106

 

 

106

 

Money market funds held in trading accounts

18

18

Other trading securities

 

22

 

4

 

18

 

Trading securities – other current assets:

Domestic equity securities

 

14

 

14

 

 

Money market fund held in trading accounts

7

7

Foreign equity securities

 

4

 

4

 

 

Fixed income mutual funds

 

3

 

2

 

1

 

Long-term investment

32

32

Derivatives:

Commodities

 

17

 

16

 

1

 

Interest rate swaps

8

8

Foreign currencies

 

2

 

 

2

 

Total assets

$

1,471

$

1,063

$

376

$

32

Liabilities:

Contingent consideration

$

15

$

$

$

15

Derivatives:

Commodities

24

24

Foreign currencies

 

1

 

 

1

 

Total liabilities

$

40

$

24

$

1

$

15

10

    

Balance

    

    

    

 

December 31,

 

(Millions of dollars)

2020

Level 1

Level 2

Level 3

 

Assets:

Trading securities – short-term investments:

Domestic equity securities

$

702

$

702

$

$

Domestic debt securities

496

196

300

Foreign equity securities

133

133

Foreign debt securities

68

68

Money market funds held in trading accounts

 

47

 

47

 

 

Other trading securities

 

20

 

3

 

17

 

Trading securities – other current assets:

Domestic equity securities

 

14

 

14

 

 

Money market fund held in trading accounts

6

6

Foreign equity securities

 

3

 

3

 

 

Fixed income mutual funds

 

3

 

2

 

1

 

Long-term investment

 

31

 

 

 

31

Derivatives:

Commodities

 

28

 

28

 

 

Interest rate swaps

 

1