Note 13 – Revenue Recognition

Seaboard has multiple segments with diverse revenue streams. For additional information on Seaboard’s segments, see Note 15. The following tables presents Seaboard’s sales disaggregated by revenue source and segment:

Year Ended December 31, 2020

(Millions of dollars)

Pork

CT&M

Marine

Sugar and Alcohol

Power

All Other

Consolidated Totals

Major Products/Services Lines:

Products

$

1,682

$

3,981

$

$

95

$

$

16

$

5,774

Transportation

8

1,005

1,013

Energy

219

11

64

294

Other

32

13

45

Segment/Consolidated Totals

$

1,941

$

3,994

$

1,005

$

106

$

64

$

16

$

7,126

Year Ended December 31, 2019

(Millions of dollars)

Pork

CT&M

Marine

Sugar and Alcohol

Power

All Other

Consolidated Totals

Major Products/Services Lines:

Products

$

1,599

$

3,654

$

$

112

$

$

17

$

5,382

Transportation

10

1,061

1

1,072

Energy

210

9

117

336

Other

32

18

50

Segment/Consolidated Totals

$

1,851

$

3,672

$

1,061

$

121

$

117

$

18

$

6,840

Revenue from goods and services transferred to customers at a single point in time account for approximately 85% of Seaboard’s net sales. Substantially all of the sales in Seaboard’s Marine segment are recognized ratably over the transit time for each voyage as Seaboard believes this is a faithful depiction of the performance obligation to its customers. Almost all of Seaboard’s contracts with its customers are short-term, defined as less than one year.

Deferred revenue represents cash payments received in advance of Seaboard’s performance or revenue billed that is unearned. The CT&M segment requires certain customers to pay in advance or upon delivery to avoid collection risk. The Marine segment’s deferred revenue balance primarily relates to the unearned portion of billed revenue when a ship is on the water and has not arrived at the designated port. Deferred revenue balances are reduced when revenue is recognized. The deferred revenue balance as of December 31, 2019 was recognized as revenue during the first quarter of 2020.

Free Sentinel

Want the next SEABOARD CORP /DE/ revenue disclosure the moment it drops?

Set a Sentinel and we'll alert you the moment SEABOARD CORP /DE/'s next filing hits EDGAR. No credit card, your email never gets sold.

Track for free

Historical Timeline

Fiscal YearFiled
2020Feb 17, 2021Showing above
2019Feb 19, 2020
2018Feb 20, 2019

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.