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 2, 2022

☐ 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) 676-8928

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 25, 2022.

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

SEABOARD CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)


	Three Months Ended
	April 2,		April 3,
(Millions of dollars except share and per share amounts)	2022		2021
Net sales:
Products (includes affiliate sales of $389 and $293)	$	2,214	$	1,731
Services (includes affiliate sales of $5 and $5)		477		313
Other		18		15
Total net sales		2,709		2,059
Cost of sales and operating expenses:
Products		2,121		1,606
Services		331		261
Other		21		14
Total cost of sales and operating expenses		2,473		1,881
Gross income		236		178
Selling, general and administrative expenses		90		86
Operating income		146		92
Other income (expense):
Interest expense		2		10
Interest income		5		5
Income from affiliates		23		6
Other investment income (loss), net		(65)		71
Foreign currency gains, net		—		9
Miscellaneous, net		8		6
Total other income (loss), net		(27)		107
Earnings before income taxes		119		199
Income tax expense		(15)		(20)
Net earnings	$	104	$	179
Less: Net income attributable to noncontrolling interests		(1)		—
Net earnings attributable to Seaboard	$	103	$	179

Earnings per common share	$	89.28	$	154.03
Average number of shares outstanding		1,160,779		1,160,779

Other comprehensive income, net of income tax expense of $0 and $1:
Foreign currency translation adjustment		(1)		15
Unrecognized pension cost		—		1
Other comprehensive income, net of tax	$	(1)	$	16
Comprehensive income		103		195
Less: Comprehensive loss (income) attributable to noncontrolling interests		(1)		—
Comprehensive income attributable to Seaboard	$	102	$	195

See accompanying notes to condensed consolidated financial statements.

SEABOARD CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited)


	April 2,		December 31,
(Millions of dollars except share and per share amounts)	2022		2021
Assets
Current assets:
Cash and cash equivalents	$	94	$	75
Short-term investments		1,295		1,416
Receivables, net of allowance for credit losses of $31 and $31		843		762
Inventories		1,698		1,663
Other current assets		139		131
Total current assets		4,069		4,047
Property, plant and equipment, net		2,047		1,892
Operating lease right of use assets, net		467		496
Investments in and advances to affiliates		679		651
Goodwill		161		163
Other non-current assets		246		254
Total assets	$	7,669	$	7,503
Liabilities and Stockholders’ Equity
Current liabilities:
Lines of credit	$	531	$	516
Accounts payable		466		404
Deferred revenue		115		108
Operating lease liabilities		166		171
Other current liabilities		354		353
Total current liabilities		1,632		1,552
Long-term debt, less current maturities		705		708
Deferred income taxes		76		99
Long-term operating lease liabilities		334		360
Other liabilities		388		350
Total non-current liabilities		1,503		1,517
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 2022 and 2021		1		1
Accumulated other comprehensive loss		(433)		(432)
Retained earnings		4,947		4,847
Total Seaboard stockholders’ equity		4,515		4,416
Noncontrolling interests		19		18
Total equity		4,534		4,434
Total liabilities and stockholders’ equity	$	7,669	$	7,503

See accompanying notes to condensed consolidated financial statements.

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, 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

Balances, December 31, 2021	$	1	$	(432)	$	4,847	$	18	$	4,434
Comprehensive income:
Net earnings		—		—		103		1		104
Other comprehensive loss, net of tax		—		(1)		—		—		(1)
Dividends on common stock ($2.25/share)		—		—		(3)		—		(3)
Balances, April 2, 2022	$	1	$	(433)	$	4,947	$	19	$	4,534

See accompanying notes to condensed consolidated financial statements.

SEABOARD CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Three Months Ended
	April 2,		April 3,
(Millions of dollars)	2022		2021
Cash flows from operating activities:
Net earnings	$	104	$	179
Adjustments to reconcile net earnings to cash from operating activities:
Depreciation and amortization		50		42
Deferred income taxes		(23)		14
Income from affiliates		(23)		(6)
Dividends received from affiliates		6		28
Other investment loss (income), net		65		(71)
Other, net		8		(4)
Changes in assets and liabilities, net of dispositions:
Receivables, net of allowance for credit losses		(99)		(138)
Inventories		(45)		(177)
Other assets		(2)		(20)
Accounts payable		67		27
Other liabilities, exclusive of debt		(2)		(24)
Net cash from operating activities		106		(150)
Cash flows from investing activities:
Purchase of short-term investments		(165)		(210)
Proceeds from the sale of short-term investments		220		356
Proceeds from the maturity of short-term investments		7		10
Capital expenditures		(161)		(96)
Purchase of long-term investments		(13)		(9)
Proceeds from the sale of subsidiaries, net of cash sold		13		—
Other, net		2		18
Net cash from investing activities		(97)		69
Cash flows from financing activities:
Uncommitted lines of credit, net		27		124
Draws under committed lines of credit		379		172
Repayments of committed lines of credit		(385)		(172)
Principal payments of long-term debt		(3)		(48)
Dividends paid		(3)		(3)
Other, net		(6)		(2)
Net cash from financing activities		9		71
Effect of exchange rate changes on cash and cash equivalents		1		(1)
Net change in cash and cash equivalents		19		(11)
Cash and cash equivalents at beginning of year		75		76
Cash and cash equivalents at end of period	$	94	$	65

See accompanying notes to condensed consolidated financial statements.

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, 2021 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 (“U.S.”) 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.

Supplemental Cash Flow Information

Non-cash investing activities for the three months ended April 2, 2022, included purchases of property, plant and equipment in accounts payable of $5 million. 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 2,		April 3,
(Millions of dollars)	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	49	$	36
Operating cash flows from finance leases		1		1
Financing cash flows from finance leases		6		2
ROU assets obtained in exchange for new lease liabilities:
Operating leases	$	13	$	13
Finance leases		59		4

Goodwill and Other Intangible Assets

The change in the carrying amount of goodwill was related to foreign currency exchange differences of $2 million within the Commodity Trading and Milling (“CT&M”) segment. As of April 2, 2022, intangible assets, included in other non-current assets, were $42 million, net of accumulated amortization of $34 million.

Income Taxes

Seaboard computes its year-to-date income tax provision 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.

Note 2 – Investments

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



	April 2,		December 31,
(Millions of dollars)	2022		2021
Domestic equity securities	$	460	$	472
Domestic debt securities		452		542
Foreign equity securities		183		193
Foreign debt securities		138		133
Money market funds held in trading accounts		48		59
Other trading securities		14		17
Total trading short-term investments	$	1,295	$	1,416

The change in unrealized gains (losses) related to trading securities still held at the end of the respective reporting period was ($42) million and $65 million for the three months ended April 2, 2022 and April 3, 2021, respectively.

Seaboard had $37 million and $46 million of short-term investments denominated in foreign currencies, primarily euros, as of April 2, 2022 and December 31, 2021, respectively.

As of April 2, 2022 and December 31, 2021, Seaboard had long-term investments of $160 million and $156 million, respectively, primarily in a business development company (“BDC”), real estate and renewable energy facilities. The BDC investment is included in the fair value hierarchy table in Note 6 and the other investments are primarily accounted for under the equity method of accounting. Long-term investments are classified in other non-current assets on the consolidated balance sheets.

Note 3 – Inventories

The following is a summary of inventories:



	April 2,		December 31,
(Millions of dollars)	2022		2021
At lower of FIFO cost and NRV:
Hogs and materials	$	514	$	489
Pork products and materials		77		64
Grains, oilseeds and other commodities		604		634
Biofuels and related credits		171		147
Sugar produced and in process		29		21
Other		58		71
Total inventories at lower of FIFO cost and NRV		1,453		1,426
Grain, flour and feed at lower of weighted average cost and NRV		245		237
Total inventories	$	1,698	$	1,663

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

Lines of Credit

As of April 2, 2022, the outstanding balances under committed and uncommitted lines of credit were $152 million and $379 million, respectively. Of the total outstanding balance as of April 2, 2022, $155 million was denominated in foreign currencies, with $132 million denominated in the South African rand and the remaining in various other currencies. As of December 31, 2021, the outstanding balances under committed and uncommitted lines of credit were $157 million and $359 million, respectively. Of the total outstanding balance as of December 31, 2021, $218 million was denominated in foreign currencies, with $177 million denominated in the South African rand and the remaining in various other currencies. The weighted average interest rate for outstanding lines of credit was 2.34% and 2.71% as of April 2, 2022 and December 31, 2021, respectively.

Long-term Debt

Long-term debt includes borrowings under term loans and other contractual obligations for payment, including notes payable. The interest rate on the Term Loan due 2028 was 2.08% and 1.73% as of April 2, 2022 and December 31, 2021, respectively.

The following is a summary of long-term debt:



	April 2,		December 31,
(Millions of dollars)	2022		2021
Term Loans due 2028	$	676	$	677
Foreign subsidiary obligations		—		1
Other long-term debt		38		39
Total debt at face value		714		717
Current maturities and unamortized discount and costs		(9)		(9)
Long-term debt, less current maturities and unamortized discount and costs	$	705	$	708

Seaboard was in compliance with all restrictive debt covenants relating to these agreements as of April 2, 2022.

Legal Proceedings

On July 21, 2021, a lawsuit was filed by an individual, Odette Blanco de Fernandez, who alleges that she owns a claim to confiscated property, related persons who purportedly inherited claims to confiscated property (“Inheritors”) and estates of deceased persons who purportedly own claims to confiscated property (“Estates”) against Seaboard Corporation in the U.S. District Court for the District of Delaware under Title III of the Cuban Liberty and Solidarity Act of 1996, also known as the Helms-Burton Act (the “Act”). The same plaintiffs filed a separate lawsuit against Seaboard Marine Ltd. (“Seaboard Marine”) on December 20, 2020, in the U.S. District Court for the Southern District of Florida. The Act provides that any person who knowingly and intentionally “traffics” in property which was confiscated by the Cuban government may be liable to any U.S. national who acquires an ownership interest to such property for money damages in an amount equal to the greater of the current fair market value of the property or the value of the property when confiscated, plus interest from the date of confiscation, reasonable attorneys’ fees and costs, and treble damages under certain circumstances. The complaint in each of the cases alleges that the plaintiffs acquired ownership interests to a 70-year concession to develop port facilities at Mariel Bay, Cuba, and to ownership of surrounding land, and that these and other property rights were confiscated by the Cuban government in 1960. The complaints further allege that Seaboard Corporation and Seaboard Marine knowingly and intentionally “trafficked” within the meaning of the Act in the confiscated property by carrying and/or directing cargo to the Port of Mariel. The Court in the Seaboard Marine case dismissed the claims of the Inheritors and the Estates because they did not acquire the ownership claims prior to March 1996, as required by the Act. The Court denied the plaintiffs’ motion for reconsideration of the dismissal of the Estates. On April 8, 2022, Seaboard Marine filed a Motion for Summary Judgement and a Motion to Exclude Opinions of Plaintiff’s Experts, including Plaintiff’s two experts’ opinions on damages. The case is set on the Court’s trial calendar for August 1, 2022. As to the suit against Seaboard Corporation, on October 21, 2021, the plaintiffs filed an amended complaint which principally adds allegations that there were additional callings made by Seaboard Marine at the Port of Mariel and that Seaboard Corporation engaged in a pattern of doing business with individuals and entities in contravention of the foreign policy of the U.S. Seaboard Corporation has filed a Motion to Dismiss, which has been briefed and is pending. The operative complaints in each lawsuit seek unspecified damages (including treble damages) and pre-filing interest as provided in the Act; pre-judgment interest; attorneys’ fees, costs and expenses; and such other relief as is just and proper. Seaboard Corporation and Seaboard Marine believe they have meritorious defenses to the claims alleged in these matters and intend to vigorously defend these matters. It is impossible at this stage either to determine the probability of a favorable or unfavorable outcome resulting from either of these suits, or to reasonably estimate the amount of potential loss or range of potential loss, if any, resulting from the suits.

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

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 believes that it has meritorious defenses to the claims alleged in this matter and intends to vigorously defend this matter. 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, asset sales and removal of duplicative claims, is estimated to be approximately $8 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. The ultimate resolution of these items is not expected to have a material adverse effect on the condensed consolidated financial statements of Seaboard.

Guarantees

Certain of Seaboard’s non-consolidated affiliates have debt supporting their underlying operations. From time to time, Seaboard will provide guarantees of that debt in order to further Seaboard’s business objectives. As of April 2, 2022, guarantees outstanding were not material. Seaboard has not accrued a liability for any of the guarantees as the likelihood of loss is 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. Seaboard also sponsors non-qualified, unfunded supplemental executive plans.

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



	Three Months Ended
	April 2,		April 3,
(Millions of dollars)	2022		2021
Components of net periodic benefit cost:
Service cost	$	2	$	3
Interest cost		2		2
Expected return on plan assets		(3)		(3)
Amortization and other		2		2
Net periodic benefit cost	$	3	$	4

Note 6 – Derivatives and Fair Value of Financial Instruments

The following tables show assets and liabilities measured at fair value on a recurring basis and 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.




	April 2,
(Millions of dollars)	2022		Level 1		Level 2		Level 3
Assets:
Trading securities – short-term investments:
Domestic equity securities	$	460	$	460	$	—	$	—
Domestic debt securities		452		163		289		—
Foreign equity securities		183		183		—		—
Foreign debt securities		138		4		134		—
Money market funds held in trading accounts		48		48		—		—
Other trading securities		14		—		14		—
Trading securities – other current assets		30		29		1		—
Long-term investment - BDC		79		—		—		79
Derivatives		14		10		4		—
Total assets	$	1,418	$	897	$	442	$	79
Liabilities:
Contingent consideration	$	17	$	—	$	—	$	17
Derivatives		47		43		4		—
Total liabilities	$	64	$	43	$	4	$	17




	December 31,
(Millions of dollars)	2021		Level 1		Level 2		Level 3
Assets:
Trading securities – short-term investments:
Domestic debt securities	$	542	$	247	$	295	$	—
Domestic equity securities		472		472		—		—
Foreign equity securities		193		193		—		—
Foreign debt securities		133		2		131		—
Money market funds held in trading accounts		59		59		—		—
Other trading securities		17		—		17		—
Trading securities – other current assets		29		28		1		—
Long-term investment - BDC		81		—		—		81
Derivatives		11		6		5		—
Total assets	$	1,537	$	1,007	$	449	$	81
Liabilities:
Contingent consideration	$	18	$	—	$	—	$	18
Derivatives		10		5		5		—
Total liabilities	$	28	$	5	$	5	$	18

Financial instruments consisting of cash and cash equivalents, net receivables, lines of credit and accounts payable are carried at cost, which approximates fair value as a result of the short-term nature of the instruments. The fair value of short-term investments is measured using multiple levels. Domestic and foreign debt securities categorized as level 1 in the fair value hierarchy include debt securities held in mutual funds and ETFs. Domestic debt securities categorized as level 2 include corporate bonds, mortgage-backed securities, asset-backed securities, U.S. Treasuries and high-yield securities. Foreign debt securities categorized as level 2 include foreign government or government related securities, corporate bonds, asset-backed securities and high-yield securities with a country of origin concentration outside the U.S.

Seaboard has a long-term investment in a BDC that primarily lends to and invests in debt securities of privately held companies. This long-term investment is valued at net asset value (“NAV”), adjusted for a liquidity discount of $1 million, resulting in level 3 classification. The change in value for the first quarter of 2022 was related to capital market activity and is recorded in other investment income (loss) in the condensed consolidated statements of comprehensive income.

The fair value of long-term debt is estimated by comparing interest rates for debt with similar terms and maturities. As Seaboard’s long-term debt is mostly variable-rate, its carrying amount approximates fair value. If Seaboard’s long-term debt was measured at fair value on its condensed consolidated balance sheets, it would have been classified as level 2 in the fair value hierarchy. See Note 4 for a discussion of Seaboard’s long-term debt.

Seaboard’s contingent consideration, classified in other non-current liabilities, is related to a 2018 acquisition. The fair value is dependent on the probability of the acquiree achieving certain financial performance targets using earnings before interest, taxes, depreciation and amortization (“EBITDA”) as a metric. The contingent consideration ranges between zero and $48 million payable between five and eight years following the closing, at the discretion of the sellers. The fair value is classified as a level 3 since the calculation is dependent upon projected company specific inputs using a Monte Carlo simulation. Seaboard remeasures the estimated fair value of the contingent consideration liability until settled, with adjustments included in net earnings (loss). The change in value during 2022 was related to updated interest rates and foreign currency rates.

Seaboard’s operations are exposed to market risks from changes in commodity prices, foreign currency exchange rates, interest rates and equity prices. Seaboard uses various commodity derivative futures and options to manage its risk of price fluctuations for raw materials and other inventories, finished product sales and firm sales commitments. Also, Seaboard enters into foreign currency exchange agreements to manage the foreign currency exchange rate risk with respect to certain transactions denominated in foreign currencies. From time to time, Seaboard enters into interest rate swap agreements to manage the interest rate risk with respect to certain variable rate long-term debt and equity futures contracts to manage the equity price risk with respect to certain short-term investments. While management believes its derivatives are primarily economic hedges, Seaboard does not perform the extensive record-keeping required to account for these types of transactions as hedges for accounting purposes. These derivative contracts are recorded at fair value, with any changes in fair value recognized in the condensed consolidated statements of comprehensive income. As the derivative contracts are not accounted for as hedges, fluctuations in the related prices or rates could have a material impact on earnings in any given reporting period. The nature of Seaboard’s market risk exposure has not changed materially since December 31, 2021.

Seaboard had the following aggregated outstanding notional amounts related to derivative financial instruments:



		April 2,	December 31,
(Millions)	Metric	2022	2021
Commodities:
Grain	Bushels	3	1
Soybean oil	Pounds	59	20
Heating oil	Gallons	14	15
Foreign currencies	U.S. dollar	201	95

Credit risks associated with these derivative contracts are not significant as Seaboard minimizes counterparty exposure by dealing with credit-worthy counterparties and uses margin accounts for some contracts. At April 2, 2022, the maximum amount of credit risk, had the counterparties failed to perform according to the terms of the contract, was $4 million.

The following table provides the fair value of each type of derivative held and where each derivative is included in the condensed consolidated balance sheets:



		Asset					Liability
		April 2,		December 31,			April 2,		December 31,
(Millions of dollars)		2022		2021			2022		2021
Commodities	Other current assets	$	10	$	6	Other current liabilities	$	43	$	5
Foreign currencies	Other current assets		4		5	Other current liabilities		4		5

Seaboard’s commodity derivative assets and liabilities are presented net in the condensed consolidated balance sheets, including netting the derivatives with the related margin accounts. As of April 2, 2022 and December 31, 2021, the