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What Changed
Risk factors · Feb 13, 2025 → Feb 12, 2026
362 added · 188 removed between the two most recent 10-Ks. The risks a company starts — or stops — disclosing are often the story.
Newly disclosed
Recently Issued Accounting Standards Adopted For the year ended December 31, 2025, Seaboard adopted Financial Accounting Standards Board (“FASB”) guidance that requires additional detailed income tax disclosures related to standardization and disaggregation of information in the rate reconciliation and income taxes paid by jurisdiction.
In November 2024, the FASB issued guidance which 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.
Seaboard is assessing the impact this guidance will have on its disclosures. Note 2 − Investments The following is a summary of the fair value of short-term investments classified as trading securities: December 31, (Millions of dollars) 2025 2024 Domestic equity securities (a) $ 713 $ 205 Foreign equity securities 145 98 Domestic fixed-income mutual funds 136 — Foreign fixed-income mutual funds 26 — Domestic debt securities - other 25 635 Foreign debt securities - other — 102 Money market funds held in trading accounts 7 28 Other trading securities — 7 Total short-term investments $ 1,052 $ 1,075 (a) Includes $ 382 million of equity interests in private funds that hold debt securities as of December 31, 2025.
Due to sustained operating losses, management performed asset impairment tests in 2025 and 2024 of the Liquid Fuels segment’s property, plant and equipment and concluded assets were not impaired.
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.
Recently Issued Accounting Standards Not Yet Adopted In December 2025, the FASB issued guidance on the recognition, measurement and presentation of government grants.
During 2025, continued operating losses in Seaboard’s Liquid Fuels’ segment were identified as a triggering event requiring an impairment analysis.
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. 25 Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
At certain times when there are ongoing losses, local economies are depressed, commodity-based markets are less stable or foreign governments cause challenging business conditions, management evaluates the fair value of the equity method investments for impairment.
GAAP guidance not yet adopted for such governmental credits, Seaboard elects to recognize these production tax credits in inventories as it intends to sell to third parties, with an offset to cost of sales, when the economic benefit of the credit is deemed probable.
If qualitative factors indicate more likely than not that an impairment is possible, Seaboard performs a quantitative impairment test using discounted cash flow analysis by comparing the fair value of a reporting unit with its carrying amount.
The following table presents a summary of Seaboard’s available borrowing capacity under lines of credit. Total amount (Millions of dollars) available Short-term uncommitted and committed lines $ 1,417 Amounts drawn against lines (458) Available borrowing capacity as of December 31, 2025 $ 959 Available borrowing capacity fluctuates based on changes to the terms of line of credit agreements and draws needed to fund operations.
No longer disclosed
Regulatory guidance to implement the new credit was issued in early 2025, and the value varies based on the greenhouse gas emissions factor of fuel produced and sold .
For example, many jurisdictions have enacted legislation and adopted policies resulting from the Organization for Economic Cooperation and Development’s (“OECD”) Anti-Base Erosion and Profit Shifting Pillar Two Model Rules (“Pillar Two”).
Trends in litigation may include class actions involving employees, consumers, competitors, suppliers, shareholders or injured persons, as well as claims relating to product liability, contract disputes, antitrust regulations, intellectual property, advertising, labeling, wage and hour laws, employment practices or environmental matters.
Adverse changes in government policies, regulations, mandates and incentives to use biofuels could adversely affect this segment’s results of operations and could result in the potential impairment of the recorded value of the property, plant and equipment related to these facilities.
Disruption of operations at suppliers including due to natural disasters or catastrophic events such as cyber-attacks, terrorism or other similar occurrences, including labor unrest, may impact Seaboard’s products or raw material supplies.
Neither litigation trends nor the outcomes of litigation can be predicted with certainty, and adverse litigation trends and outcomes could negatively affect Seaboard’s financial results and result in losses in excess of accrued amounts.
The inability to acquire and retain the services of such personnel, or increased costs associated with the acquisition and retention of such personnel, could have a material adverse effect on Seaboard’s operations.
This segment provided approximately one-third of STF’s hogs for processing during 2024 and also markets substantially all pork products produced. ● In the Marine segment, port operations can be subject to disruption due to hurricanes or other adverse weather conditions, and any associated damage could take significant time to repair while cargos would move to other ports of entry.
In addition, revisions to these rules or new rules or guidance could further increase Seaboard’s income tax expense in future periods or increase such expense beyond amounts currently anticipated.
Adverse operating results or economic conditions could cause Butterball to default on such loan facilities, which could result in a significant adverse impact on Butterball’s financial position.
This clean fuel production credit will be less than the federal blender’s credit, but Seaboard is still evaluating the new guidance and the impact it will have on its financial statements.
Seaboard may be adversely impacted if it is unable to protect its information technology systems against, or effectively respond to, cyber-attacks or cybersecurity breaches.