Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 29, 2019 | Oct. 30, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 29, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-9273 | |
Entity Registrant Name | PILGRIMS PRIDE CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 75-1285071 | |
Entity Address, Address Line One | 1770 Promontory Circle | |
Entity Address, Postal Zip Code | 80634-9038 | |
Entity Address, City or Town | Greeley | |
Entity Address, State or Province | CO | |
City Area Code | 970 | |
Local Phone Number | 506-8000 | |
Title of 12(b) Security | Common Stock, Par Value $0.01 | |
Trading Symbol | PPC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 249,570,421 | |
Amendment Flag | false | |
Entity Central Index Key | 0000802481 | |
Current Fiscal Year End Date | --12-29 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Cash and cash equivalents | $ 598,054 | $ 338,386 |
Restricted cash and cash equivalents | 26,950 | 23,192 |
Trade accounts and other receivables, less allowance for doubtful accounts | 602,038 | 561,549 |
Accounts receivable from related parties | 1,573 | 1,331 |
Inventories | 1,261,362 | 1,159,519 |
Income taxes receivable | 16,143 | 38,479 |
Prepaid expenses and other current assets | 107,398 | 112,201 |
Total current assets | 2,613,518 | 2,234,657 |
Deferred tax assets | 4,286 | 4,248 |
Other long-lived assets | 15,211 | 16,717 |
Identified intangible assets, net | 533,733 | 564,128 |
Goodwill | 924,766 | 949,750 |
Operating lease assets, net | 300,495 | |
Property, plant and equipment, net | 2,211,124 | 2,161,702 |
Total assets | 6,603,133 | 5,931,202 |
Accounts payable | 846,200 | 830,059 |
Accounts payable to related parties | 5,157 | 7,269 |
Revenue contract liability | 39,743 | 33,328 |
Accrued expenses and other current liabilities | 494,247 | 386,941 |
Income taxes payable | 25,762 | 8,221 |
Current maturities of long-term debt | 26,636 | 30,405 |
Total current liabilities | 1,437,745 | 1,296,223 |
Noncurrent operating lease liability, less current maturities | 231,018 | |
Long-term debt, less current maturities | 2,279,871 | 2,295,190 |
Noncurrent income taxes payable | 7,731 | 7,731 |
Deferred tax liabilities | 235,357 | 237,422 |
Other long-term liabilities | 81,307 | 75,051 |
Total liabilities | 4,273,029 | 3,911,617 |
Common stock | 2,611 | 2,604 |
Treasury stock | (234,892) | (231,994) |
Additional paid-in capital | 1,952,451 | 1,945,136 |
Retained earnings | 785,732 | 421,888 |
Accumulated other comprehensive loss | (186,040) | (127,834) |
Total Pilgrim’s Pride Corporation stockholders’ equity | 2,319,862 | 2,009,800 |
Noncontrolling interest | 10,242 | 9,785 |
Total stockholders’ equity | 2,330,104 | 2,019,585 |
Total liabilities and stockholders’ equity | $ 6,603,133 | $ 5,931,202 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 2,777,970 | $ 2,697,604 | $ 8,345,730 | $ 8,280,995 |
Cost of sales | 2,495,773 | 2,527,863 | 7,476,731 | 7,549,367 |
Gross profit | 282,197 | 169,741 | 868,999 | 731,628 |
Selling, general and administrative expense | 94,032 | 84,138 | 264,313 | 257,396 |
Administrative restructuring activities | (20) | 257 | (90) | 2,181 |
Operating income | 188,185 | 85,346 | 604,776 | 472,051 |
Interest expense, net of capitalized interest | 32,028 | 35,334 | 99,184 | 125,901 |
Interest income | (4,698) | (4,241) | (11,481) | (10,665) |
Foreign currency transaction loss (gain) | 3,027 | (6,711) | 7,923 | (2,802) |
Miscellaneous, net | 1,367 | 653 | 2,521 | (1,781) |
Income before income taxes | 156,461 | 60,311 | 506,629 | 361,398 |
Income tax expense | 46,365 | 30,848 | 142,328 | 106,367 |
Net income | 110,096 | 29,463 | 364,301 | 255,031 |
Less: Net income (loss) attributable to noncontrolling interests | 331 | 153 | 457 | (238) |
Net income attributable to Pilgrim’s Pride Corporation | $ 109,765 | $ 29,310 | $ 363,844 | $ 255,269 |
Weighted average shares of Pilgrim's Pride Corporation common stock outstanding: | ||||
Basic (in shares) | 249,467 | 248,981 | 249,344 | 248,933 |
Effect of dilutive common stock equivalents (in shares) | 262 | 198 | 308 | 143 |
Diluted (in shares) | 249,729 | 249,179 | 249,652 | 249,076 |
Net income attributable to Pilgrim’s Pride Corporation per share of common stock outstanding: | ||||
Basic (in dollars per share) | $ 0.44 | $ 0.12 | $ 1.46 | $ 1.03 |
Diluted (in dollars per share) | $ 0.44 | $ 0.12 | $ 1.46 | $ 1.03 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 110,096 | $ 29,463 | $ 364,301 | $ 255,031 |
Foreign currency translation adjustment | ||||
Losses arising during the period | (50,213) | (20,385) | (50,824) | (60,516) |
Income tax effect | 0 | 0 | 0 | 1,624 |
Derivative financial instruments designated as cash flow hedges | ||||
Gains (losses) arising during the period | (1,669) | 131 | (1,269) | 28 |
Reclassification to net earnings of losses (gains) realized | 247 | (144) | 74 | 329 |
Available-for-sale securities | ||||
Gains arising during the period | 312 | 70 | 506 | 1,302 |
Income tax effect | (76) | (17) | (123) | (317) |
Reclassification to net earnings of gains realized | (159) | (364) | (466) | (1,263) |
Income tax effect | 37 | 89 | 113 | 307 |
Defined benefit plans | ||||
Gains (losses) arising during the period | (5,231) | 566 | (9,202) | 7,158 |
Income tax effect | 1,142 | (138) | 2,240 | (1,743) |
Reclassification to net earnings of losses realized | 328 | 301 | 984 | 902 |
Income tax effect | (79) | (73) | (239) | (219) |
Total other comprehensive loss, net of tax | (55,361) | (19,964) | (58,206) | (52,408) |
Comprehensive income | 54,735 | 9,499 | 306,095 | 202,623 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 331 | 153 | 457 | (238) |
Comprehensive income attributable to Pilgrim's Pride Corporation | $ 54,404 | $ 9,346 | $ 305,638 | $ 202,861 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interest |
Balance (in shares) at Dec. 31, 2017 | 260,168 | 11,416 | |||||
Balance, beginning of period at Dec. 31, 2017 | $ 1,855,661 | $ 2,602 | $ (231,758) | $ 1,932,509 | $ 173,943 | $ (31,140) | $ 9,505 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 255,031 | 255,269 | (238) | ||||
Other comprehensive loss, net of tax | (52,408) | (52,408) | |||||
Share-based compensation plans: | |||||||
Common stock issued under compensation plans (in shares) | 228 | ||||||
Common stock issued under compensation plans | 0 | $ 2 | (2) | ||||
Requisite service period recognition | 9,259 | 9,259 | |||||
Balance (in shares) at Sep. 30, 2018 | 260,396 | 11,416 | |||||
Balance, end of period at Sep. 30, 2018 | 2,067,543 | $ 2,604 | $ (231,758) | 1,941,766 | 429,212 | (83,548) | 9,267 |
Balance (in shares) at Jul. 01, 2018 | 260,396 | 11,416 | |||||
Balance, beginning of period at Jul. 01, 2018 | 2,054,418 | $ 2,604 | $ (231,758) | 1,938,140 | 399,902 | (63,584) | 9,114 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 29,463 | 29,310 | 153 | ||||
Other comprehensive loss, net of tax | (19,964) | (19,964) | |||||
Share-based compensation plans: | |||||||
Common stock issued under compensation plans (in shares) | 0 | ||||||
Common stock issued under compensation plans | 0 | $ 0 | 0 | ||||
Requisite service period recognition | 3,626 | 3,626 | |||||
Balance (in shares) at Sep. 30, 2018 | 260,396 | 11,416 | |||||
Balance, end of period at Sep. 30, 2018 | 2,067,543 | $ 2,604 | $ (231,758) | 1,941,766 | 429,212 | (83,548) | 9,267 |
Balance (in shares) at Dec. 30, 2018 | 260,396 | 11,431 | |||||
Balance, beginning of period at Dec. 30, 2018 | 2,019,585 | $ 2,604 | $ (231,994) | 1,945,136 | 421,888 | (127,834) | 9,785 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 364,301 | 363,844 | 457 | ||||
Other comprehensive loss, net of tax | (58,206) | (58,206) | |||||
Share-based compensation plans: | |||||||
Common stock issued under compensation plans (in shares) | 722 | ||||||
Common stock issued under compensation plans | 0 | $ 7 | (7) | ||||
Requisite service period recognition | 7,322 | 7,322 | |||||
Common stock purchased under share repurchase program (in shares) | (116) | ||||||
Common stock purchased under share repurchase program | (2,898) | $ (2,898) | |||||
Balance (in shares) at Sep. 29, 2019 | 261,118 | 11,547 | |||||
Balance, end of period at Sep. 29, 2019 | 2,330,104 | $ 2,611 | $ (234,892) | 1,952,451 | 785,732 | (186,040) | 10,242 |
Balance (in shares) at Jun. 30, 2019 | 260,855 | 11,547 | |||||
Balance, beginning of period at Jun. 30, 2019 | 2,273,264 | $ 2,609 | $ (234,892) | 1,950,348 | 675,967 | (130,679) | 9,911 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 110,096 | 109,765 | 331 | ||||
Other comprehensive loss, net of tax | (55,361) | (55,361) | |||||
Share-based compensation plans: | |||||||
Common stock issued under compensation plans (in shares) | 263 | ||||||
Common stock issued under compensation plans | 0 | $ 2 | (2) | ||||
Requisite service period recognition | 2,105 | 2,105 | |||||
Common stock purchased under share repurchase program (in shares) | 0 | ||||||
Common stock purchased under share repurchase program | 0 | $ 0 | |||||
Balance (in shares) at Sep. 29, 2019 | 261,118 | 11,547 | |||||
Balance, end of period at Sep. 29, 2019 | $ 2,330,104 | $ 2,611 | $ (234,892) | $ 1,952,451 | $ 785,732 | $ (186,040) | $ 10,242 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 364,301 | $ 255,031 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 210,381 | 207,113 |
Share-based compensation | 7,322 | 9,259 |
Deferred income tax expense (benefit) | 2,396 | (2,147) |
Loan cost amortization | 3,609 | 4,337 |
Accretion of discount related to Senior Notes | 737 | 567 |
Amortization of premium related to Senior Notes | (501) | (501) |
Gain on property disposals | (9,546) | (452) |
Foreign currency transaction loss related to borrowing arrangements | 1,259 | 4,221 |
Gain on equity-method investments | (48) | (48) |
Noncash loss on early extinguishment of debt | 0 | 6,037 |
Asset impairment | 0 | 884 |
Changes in operating assets and liabilities: | ||
Trade accounts and other receivables | (46,648) | (3,437) |
Inventories | (108,117) | 64,787 |
Prepaid expenses and other current assets | 3,536 | (15,428) |
Accounts payable, accrued expenses and other current liabilities | 67,308 | 78,107 |
Income taxes | 40,549 | (175,569) |
Long-term pension and other postretirement obligations | (1,578) | (9,087) |
Other operating assets and liabilities | 544 | 1,606 |
Cash provided by operating activities | 535,504 | 425,280 |
Cash flows from investing activities: | ||
Acquisitions of property, plant and equipment | (258,725) | (231,875) |
Proceeds from property disposals | 15,168 | 2,707 |
Cash used in investing activities | (243,557) | (229,168) |
Cash flows from financing activities: | ||
Payments on revolving line of credit, long-term borrowings and finance lease obligations | (123,276) | (1,071,441) |
Proceeds from revolving line of credit and long-term borrowings | 99,638 | 703,090 |
Purchase of common stock under share repurchase program | (2,898) | 0 |
Payment of capitalized loan costs | (652) | (11,081) |
Proceeds (payment) from equity contribution (distribution) under Tax Sharing Agreement between JBS USA Food Company Holdings and Pilgrim's Pride Corporation | (525) | 5,558 |
Cash used in financing activities | (27,713) | (373,874) |
Effect of exchange rate changes on cash and cash equivalents | (808) | 4,071 |
Increase (decrease) in cash, cash equivalents and restricted cash | 263,426 | (173,691) |
Cash, cash equivalents and restricted cash, beginning of period | 361,578 | 589,531 |
Cash, cash equivalents and restricted cash, end of period | $ 625,004 | $ 415,840 |
DESCRIPTION OF BUSINESS AND BAS
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Business Pilgrim’s Pride Corporation (referred to herein as “Pilgrim’s,” “PPC,” “the Company,” “we,” “us,” “our,” or similar terms) is one of the largest chicken producers in the world, with operations in the United States (“U.S.”), the United Kingdom (“U.K.”), Mexico, France, Puerto Rico and the Netherlands. Pilgrim’s products are sold to foodservice, retail and frozen entrée customers. The Company’s primary distribution is through retailers, foodservice distributors and restaurants throughout the countries listed above. Additionally, the Company exports chicken products to approximately 100 countries. Pilgrim’s fresh chicken products consist of refrigerated (nonfrozen) whole chickens, whole cut-up chickens and selected chicken parts that are either marinated or non-marinated. The Company’s prepared chicken products include fully cooked, ready-to-cook and individually frozen chicken parts, strips, nuggets and patties, some of which are either breaded or non-breaded and either marinated or non-marinated. The Company’s other products include ready-to-eat meals, multi-protein frozen foods, vegetarian foods and desserts. As a vertically integrated company, we control every phase of the production of our products. We operate feed mills, hatcheries, processing plants and distribution centers in 14 U.S. states, the U.K., Mexico, France, Puerto Rico and the Netherlands. As of September 29, 2019 , Pilgrim’s had approximately 52,700 employees and the capacity to process approximately 45.1 million birds per work week for a total of more than 12.9 billion pounds of live chicken annually. Approximately 4,900 contract growers supply poultry for the Company’s operations. As of September 29, 2019 , JBS S.A., through its indirect wholly-owned subsidiaries (together, “JBS”), beneficially owned 78.3% of the Company’s outstanding common stock. Condensed Consolidated Financial Statements The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal and recurring adjustments unless otherwise disclosed) considered necessary for a fair presentation have been included. Operating results for the thirteen and thirty-nine weeks ended September 29, 2019 are not necessarily indicative of the results that may be expected for the year ending December 29, 2019 . For further information, refer to the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 30, 2018 . The Company operates on a 52/53-week fiscal year that ends on the Sunday falling on or before December 31. The reader should assume any reference we make to a particular year (for example, 2019 ) in the notes to these Condensed Consolidated Financial Statements applies to our fiscal year and not the calendar year. The Condensed Consolidated Financial Statements include the accounts of the Company and its majority-owned subsidiaries. We eliminate all significant affiliate accounts and transactions upon consolidation. The Condensed Consolidated Financial Statements have been prepared in conformity with U.S. GAAP using management’s best estimates and judgments. These estimates and judgments affect the reported amounts of assets and liabilities and disclosure of the contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ materially from these estimates and judgments. Significant estimates made by the Company include the allowance for doubtful accounts, reserves related to inventory obsolescence or valuation, useful lives of long-lived assets, goodwill, valuation of deferred tax assets, insurance accruals, valuation of pension and other postretirement benefits obligations, income tax accruals, certain derivative positions and valuations of acquired businesses. The functional currency of the Company's U.S. and Mexico operations and certain holding-company subsidiaries in Luxembourg, the U.K. and Ireland is the U.S. dollar. The functional currency of its U.K. operations is the British pound. The functional currency of the Company's operations in France and the Netherlands is the euro. For foreign currency-denominated entities other than the Company's Mexico operations, translation from local currencies into U.S. dollars is performed for most assets and liabilities using the exchange rates in effect as of the balance sheet date. Income and expense accounts are remeasured using average exchange rates for the period. Adjustments resulting from translation of these financial records are reflected as a separate component of Accumulated other comprehensive loss in the Condensed Consolidated Balance Sheets. For the Company's Mexico operations, remeasurement from the Mexican peso to U.S. dollars is performed for monetary assets and liabilities using the exchange rate in effect as of the balance sheet date. Remeasurement is performed for non-monetary assets using the historical exchange rate in effect on the date of each asset’s acquisition. Income and expense accounts are remeasured using average exchange rates for the period. Net adjustments resulting from remeasurement of these financial records are reflected in Foreign currency transaction losses (gains) in the Condensed Consolidated Statements of Income. Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in Operating lease assets, net, Accrued expenses and other current liabilities, and Noncurrent operating lease liability, less current maturities, in our Condensed Consolidated Balance Sheet. Finance leases are included in Property, plant and equipment, net, Current maturities of long-term debt, and Long-term debt, less current maturities, in our Condensed Consolidated Balance Sheet. Beginning with the adoption of Accounting Standards Update (“ASU”) 2016-02 on December 31, 2018, operating lease assets and operating lease liabilities are initially recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit interest rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease asset also includes any lease payments made, including upfront costs and prepayments, and excludes lease incentives and initial direct costs incurred. Our lease terms may include options to extend or terminate a lease when it is reasonably certain that we will exercise that option. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term with a corresponding reduction to the operating lease asset. The Company has lease agreements with lease and non-lease components. Beginning in 2019, lease and non-lease components are generally accounted for separately. For certain equipment leases, such as vehicles, we account for the lease and non-lease components as a single lease component. The Company's finance lease agreements are immaterial. Restricted Cash The Company is required to maintain cash balances with a broker as collateral for exchange traded futures contracts. These balances are classified as restricted cash as they are not available for use by the Company to fund daily operations. The balance of restricted cash may also include investments in U.S. Treasury Bills that qualify as cash equivalents, as required by the broker, to offset the obligation to return cash collateral. The following table reconciles cash, cash equivalents and restricted cash as reported in the Condensed Consolidated Balance Sheets to the total of the same amounts shown in the Condensed Consolidated Statements of Cash Flows: September 29, 2019 December 30, 2018 (In thousands) Cash and cash equivalents $ 598,054 $ 338,386 Restricted cash 26,950 23,192 Total cash, cash equivalents and restricted cash shown in the $ 625,004 $ 361,578 Recent Accounting Pronouncements Adopted as of September 29, 2019 In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases (Topic 842) , along with several updates, which, in an effort to increase transparency and comparability among organizations utilizing leasing, requires an entity that is a lessee to recognize the assets and liabilities arising from operating leases on the balance sheet. This guidance also requires disclosures about the amount, timing and uncertainty of cash flows arising from leases. In transition, the entity may elect to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach or the beginning of the period of adoption using a cumulative-effect adjustment approach. We adopted the new standard on December 31, 2018 and recognized and measured leases at the beginning of the period of adoption. We elected the package of practical expedients available under the transition guidance which, among other things, allows the carry-forward of historical lease classification. The Company also elected the practical expedient allowing use of hindsight in assessing the lease term. We made an accounting policy election to not apply the new guidance to leases with a term of 12 months or less and will recognize those payments in the Condensed Consolidated Statement of Income on a straight-line basis over the lease term. We implemented a system solution for administering our leases and facilitating compliance with the new guidance. Adoption of the standard had a material impact on our Condensed Consolidated Balance Sheet as a result of the increase in assets and liabilities from recognition of operating lease assets and operating lease liabilities. However, the standard did not have a material impact on our Condensed Consolidated Statement of Income. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , an accounting standard update that simplifies the application of hedge accounting guidance in current GAAP and improves the reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. Among the simplification updates, the standard eliminates the requirement in current GAAP to separately recognize periodic hedge ineffectiveness. Mismatches between the changes in value of the hedged item and hedging instrument may still occur but they will no longer be separately reported. The standard requires the presentation of the earnings effect of the hedging instrument in the same income statement line item in which the earnings effect of the hedged item is reported. The standard is effective for annual and interim reporting periods beginning after December 15, 2018, but early adoption is permitted. We have adopted this standard as of December 31, 2018. The adoption of this guidance did not have a material impact on our financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , an accounting standard update that allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act. The Company will not reclassify the stranded tax effects associated with the U.S. Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. We adopted this standard as of December 31, 2018. The adoption of this guidance did not have a material impact on our financial statements. In July 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting , an accounting standard update to improve non-employee share-based payment accounting. The accounting standard update more closely aligns the accounting for employee and non-employee share based payments. The accounting standards update is effective as of the beginning of our 2019 calendar year with early adoption permitted. We adopted this standard as of December 31, 2018. The adoption of this guidance did not have a material impact on our financial statements. Recent Accounting Pronouncements Not Yet Adopted as of September 29, 2019 In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which, in an effort to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments, replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables and any other financial assets not excluded from the scope that have the contractual right to receive cash. We will adopt the provisions of the new guidance effective December 30, 2019, the beginning of our 2020 fiscal year. We are currently evaluating the impact of the new guidance on our financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement , new accounting guidance to improve the effectiveness of disclosures related to fair value measurements. The new guidance removes certain disclosure requirements related to transfers between Level 1 and Level 2 of the fair value hierarchy along with the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements. Additions to the disclosure requirements include more quantitative information related to significant unobservable inputs used in Level 3 fair value measurements and gains and losses included in other comprehensive income. We will adopt the provisions of the new guidance effective December 30, 2019, the beginning of our 2020 fiscal year. We are currently evaluating the impact of the new guidance on our financial statements. In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans , new accounting guidance to improve the effectiveness of disclosures related to defined benefit plans by eliminating certain required disclosures, clarifying existing disclosures, and adding new disclosures. Changes include removing disclosures related to the amounts in accumulated other comprehensive income expected to be recognized in the next fiscal year, adding narrative disclosure of the reasons for significant gains and losses related to changes in the defined benefit obligation, and clarifying the disclosures required for plans with projected and accumulated benefit obligations in excess of plan assets. We will adopt the provisions of the new guidance effective December 30, 2019, the beginning of our 2020 fiscal year. We are currently evaluating the impact of the new guidance on our financial statements. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 29, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Assets and liabilities measured at fair value must be categorized into one of three different levels depending on the assumptions (i.e., inputs) used in the valuation: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability; or Level 3 Unobservable inputs, such as discounted cash flow models or valuations. The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement in its entirety. As of September 29, 2019 and December 30, 2018 , the Company held derivative assets and liabilities that were required to be measured at fair value on a recurring basis. Derivative assets and liabilities consist of long and short positions on exchange-traded commodity futures instruments, commodity options instruments and foreign currency instruments to manage translation and remeasurement risk. The following items were measured at fair value on a recurring basis: September 29, 2019 Level 1 Total (In thousands) Fair value assets: Commodity futures instruments $ 6,250 $ 6,250 Commodity options instruments 615 615 Foreign currency instruments 913 913 Fair value liabilities: Commodity futures instruments (6,800 ) (6,800 ) Commodity options instruments (7,002 ) (7,002 ) Foreign currency instruments (548 ) (548 ) December 30, 2018 Level 1 Total (In thousands) Fair value assets: Commodity futures instruments $ 2,244 $ 2,244 Foreign currency instruments 1,311 1,311 Fair value liabilities: Commodity futures instruments (1,479 ) (1,479 ) Commodity option instruments (3,312 ) (3,312 ) Foreign currency instruments (6,649 ) (6,649 ) See “Note 6. Derivative Financial Instruments” for additional information. The valuation of financial assets and liabilities classified in Level 1 is determined using a market approach, taking into account current interest rates, creditworthiness, and liquidity risks in relation to current market conditions, and is based upon unadjusted quoted prices for identical assets in active markets. The valuation of financial assets and liabilities in Level 2 is determined using a market approach based upon quoted prices for similar assets and liabilities in active markets or other inputs that are observable for substantially the full term of the financial instrument. The valuation of financial assets in Level 3 is determined using an income approach based on unobservable inputs such as discounted cash flow models or valuations. For each class of assets and liabilities not measured at fair value in the Condensed Consolidated Balance Sheet but for which fair value is disclosed, the Company is not required to provide the quantitative disclosure about significant unobservable inputs used in fair value measurements categorized within Level 3 of the fair value hierarchy. In addition to the fair value disclosure requirements related to financial instruments carried at fair value, accounting standards require interim disclosures regarding the fair value of all of the Company’s financial instruments. The methods and significant assumptions used to estimate the fair value of financial instruments and any changes in methods or significant assumptions from prior periods are also required to be disclosed. The carrying amounts and estimated fair values of our fixed-rate debt obligation recorded in the Condensed Consolidated Balance Sheets consisted of the following: September 29, 2019 December 30, 2018 Carrying Fair Carrying Fair (In thousands) Fixed-rate senior notes payable at 5.75%, at Level 1 inputs $ (1,002,195 ) $ (1,020,000 ) $ (1,002,497 ) $ (937,300 ) Fixed-rate senior notes payable at 5.875%, at Level 1 inputs (844,254 ) (905,250 ) (843,717 ) (768,188 ) Secured loans, at Level 3 inputs (1,334 ) (1,316 ) (319 ) (319 ) See “Note 11. Long-Term Debt and Other Borrowing Arrangements” for additional information. The carrying amounts of our cash and cash equivalents, derivative trading accounts' margin cash, restricted cash and cash equivalents, accounts receivable, accounts payable and certain other liabilities approximate their fair values due to their relatively short maturities. Derivative assets were recorded at fair value based on quoted market prices and are included in the line item Prepaid expenses and other current assets on the Condensed Consolidated Balance Sheet. Derivative liabilities were recorded at fair value based on quoted market prices and are included in the line item Accrued expenses and other current liabilities on the Condensed Consolidated Balance Sheet. The fair value of the Company’s Level 1 fixed-rate debt obligations was based on the quoted market price at September 29, 2019 or December 30, 2018 , as applicable. The fair value of the Company’s Level 3 fixed-rate debt obligation was based on discounted cash flows at September 29, 2019 or December 30, 2018 , as applicable. In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company records certain assets and liabilities at fair value on a nonrecurring basis. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges when required by U.S. GAAP. There were no significant fair value measurement gains or losses recognized for such assets and liabilities in the period reported. |
TRADE ACCOUNTS AND OTHER RECEIV
TRADE ACCOUNTS AND OTHER RECEIVABLES | 9 Months Ended |
Sep. 29, 2019 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
TRADE ACCOUNTS AND OTHER RECEIVABLES | TRADE ACCOUNTS AND OTHER RECEIVABLES Trade accounts and other receivables, less allowance for doubtful accounts, consisted of the following: September 29, 2019 December 30, 2018 (In thousands) Trade accounts receivable $ 549,913 $ 533,645 Notes receivable - current 4,205 4,630 Other receivables 54,839 31,331 Receivables, gross 608,957 569,606 Allowance for doubtful accounts (6,919 ) (8,057 ) Receivables, net $ 602,038 $ 561,549 Account receivable from related parties (a) $ 1,573 $ 1,331 (a) Additional information regarding accounts receivable from related parties is included in “Note 19. Related Party Transactions.” Activity in the allowance for doubtful accounts for the thirty-nine weeks ended September 29, 2019 was as follows (in thousands): Balance, beginning of period $ (8,057 ) Provision charged to operating results (941 ) Account write-offs and recoveries 1,838 Effect of exchange rate 241 Balance, end of period $ (6,919 ) |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 29, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consisted of the following: September 29, 2019 December 30, 2018 (In thousands) Raw materials and work-in-process $ 741,975 $ 747,801 Finished products 420,096 317,410 Operating supplies 39,302 43,825 Maintenance materials and parts 59,989 50,483 Total inventories $ 1,261,362 $ 1,159,519 |
INVESTMENTS IN SECURITIES
INVESTMENTS IN SECURITIES | 9 Months Ended |
Sep. 29, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS IN SECURITIES | INVESTMENTS IN SECURITIES We recognize investments in available-for-sale securities as cash equivalents, current investments or long-term investments depending upon each security's length to maturity. Additionally, those securities identified by management at the time of purchase for funding operations in less than one year are classified as current. The following table summarizes our investments in available-for-sale securities: September 29, 2019 December 30, 2018 Amortized Cost Fair Amortized Cost Fair (In thousands) Cash equivalents: Fixed income securities $ 276,203 $ 276,203 $ 135,286 $ 135,286 Other 89,049 89,049 67,474 67,474 Securities classified as cash and cash equivalents mature within 90 days. Securities classified as short-term investments mature between 91 and 365 days. Securities classified as long-term investments mature after 365 days. The specific identification method is used to determine the cost of each security sold and each amount reclassified out of accumulated other comprehensive loss to earnings. Gross realized gains during the thirteen and thirty-nine weeks ended September 29, 2019 related to the Company’s available-for-sale securities totaled $4.1 million and $9.3 million while gross realized losses were immaterial. Gross realized gains during the thirteen and thirty-nine weeks ended September 30, 2018 related to the Company’s available-for-sale securities totaled $2.5 million and $5.4 million while gross realized losses were immaterial. Proceeds received from the sale or maturity of available-for-sale securities recognized as either short or long-term investments are historically disclosed in the Condensed Consolidated Statements of Cash Flows. No proceeds were received from the sale or maturity of available-for-sale securities recognized as either short or long-term investments during the thirteen and thirty-nine weeks ended September 29, 2019 and September 30, 2018 , respectively. Net unrealized holding gains and losses on the Company’s available-for-sale securities recognized during the thirty-nine weeks ended weeks ended September 29, 2019 and September 30, 2018 that have been included in accumulated other comprehensive loss and the net amount of gains and losses reclassified out of accumulated other comprehensive loss to earnings during the thirty-nine weeks ended weeks ended September 29, 2019 and September 30, 2018 are disclosed in “Note 15. Stockholders’ Equity”. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 29, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS The Company utilizes various raw materials in its operations, including corn, soybean meal, soybean oil, wheat and energy, such as natural gas, electricity and diesel fuel, which are all considered commodities. The Company considers these raw materials generally available from a number of different sources and believes it can obtain them to meet its requirements. These commodities are subject to price fluctuations and related price risk due to factors beyond our control, such as economic and political conditions, supply and demand, weather, governmental regulation and other circumstances. The Company purchases derivative financial instruments, specifically exchange-traded futures and options, in an attempt to mitigate price risk related to its anticipated consumption of commodity inputs for approximately the next 12 months. The Company may purchase longer-term derivative financial instruments on particular commodities if deemed appropriate. The Company has operations in Mexico and Europe (including the U.K.) and, therefore, has exposure to foreign exchange risk when the financial results of those operations are remeasured in U.S. dollars. The Company has purchased foreign currency forward contracts to manage this foreign exchange risk. The fair value of derivative assets is included in the line item Prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets while the fair value of derivative liabilities is included in the line item Accrued expenses and other current liabilities on the same statements. Our counterparties require that we post collateral for changes in the net fair value of the derivative contracts. This cash collateral is reported in the line item Restricted cash and cash equivalents on the Condensed Consolidated Balance Sheets. We have not designated certain derivative financial instruments that we have purchased to mitigate commodity purchase exposures in the U.S. and Mexico or foreign currency transaction exposures on our Mexico operations as cash flow hedges. Therefore, we recognized changes in the fair value of these derivative financial instruments immediately in earnings. Gains or losses related to the commodity derivative financial instruments are included in the line item Cost of sales in the Condensed Consolidated Statements of Income. Gains or losses related to the foreign currency derivative financial instruments are included in the line item Foreign currency transaction loss and Cost of sales in the Condensed Consolidated Statements of Income. We have designated certain derivative financial instruments related to our U.K. and Europe segment that we have purchased to mitigate foreign currency transaction exposures as cash flow hedges. Before the settlement date of the financial derivative instruments, we recognize changes in the fair value of the effective portion of the cash flow hedge into accumulated other comprehensive income (“AOCI”) while we recognize changes in the fair value of the ineffective portion immediately in earnings. When the derivative financial instruments associated with the effective portion are settled, the amount in AOCI is then reclassified to earnings. Gains or losses related to these derivative financial instruments are included in the line item Cost of sales in the Condensed Consolidated Statements of Income. The Company recognized net losses of $10.0 million and $7.4 million related to changes in the fair value of its derivative financial instruments during the thirteen weeks ended September 29, 2019 and September 30, 2018 , respectively. The Company recognized net losses of $18.5 million and $25.0 million related to changes in the fair value of its derivative financial instruments during the thirty-nine weeks ended September 29, 2019 and September 30, 2018 , respectively. Information regarding the Company’s outstanding derivative instruments and collateral posted with brokers is included in the following table: September 29, 2019 December 30, 2018 (Fair values in thousands) Fair values: Commodity derivative assets $ 6,865 $ 2,263 Commodity derivative liabilities (13,802 ) (4,791 ) Foreign currency derivative assets 913 1,311 Foreign currency derivative liabilities (548 ) (6,649 ) Collateral posted with brokers (a) 26,950 23,192 Derivatives coverage (b) : Corn 9.0 % 6.0 % Soybean meal 32.0 % 6.0 % Period through which stated percent of needs are covered: Corn December 2020 March 2020 Soybean meal May 2020 December 2019 (a) Collateral posted with brokers consists primarily of cash, short term treasury bills, or other cash equivalents. (b) Derivatives coverage is the percent of anticipated commodity needs covered by outstanding derivative instruments through a specified date. The following tables present the components of the gain or loss on derivatives that qualify as cash flow hedges: Gain (Loss) Recognized in Other Comprehensive Loss on Derivative Thirteen Weeks Ended Thirty-Nine Weeks Ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 (In thousands) Foreign currency derivatives $ (1,644 ) $ 130 $ (1,257 ) $ 33 Total $ (1,644 ) $ 130 $ (1,257 ) $ 33 Loss (Gain) Reclassified from AOCI into Income Thirteen Weeks Ended Thirty-Nine Weeks Ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 (In thousands) Foreign currency derivatives $ 247 $ (143 ) $ 74 $ 329 Total $ 247 $ (143 ) $ 74 $ 329 At September 29, 2019 , the pre-tax deferred net gains on derivatives recorded in AOCI that are expected to be reclassified to the Condensed Consolidated Statements of Income during the next twelve months are $0.5 million . This expectation is based on the anticipated settlements on the hedged investments in foreign currencies that will occur over the next twelve months, at which time the Company will recognize the deferred gains (losses) to earnings. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Sep. 29, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS The activity in goodwill by segment for the thirty-nine weeks ended September 29, 2019 was as follows: December 30, 2018 Currency Translation September 29, 2019 (In thousands) U.S. $ 41,936 $ — $ 41,936 U.K. and Europe 782,207 (24,984 ) 757,223 Mexico 125,607 — 125,607 Total $ 949,750 $ (24,984 ) $ 924,766 Identified intangible assets consisted of the following: December 30, 2018 Amortization Currency Translation September 29, 2019 (In thousands) Carrying amount: Trade names $ 78,343 $ — $ — $ 78,343 Customer relationships 247,706 — (2,782 ) 244,924 Non-compete agreements 320 — — 320 Trade names not subject to amortization 380,067 — (11,830 ) 368,237 Accumulated amortization: Trade names (43,552 ) (1,474 ) — (45,026 ) Customer relationships (98,441 ) (15,447 ) 1,144 (112,744 ) Non-compete agreements (315 ) (6 ) — (321 ) Total identified intangible assets $ 564,128 $ (16,927 ) $ (13,468 ) $ 533,733 Intangible assets are amortized over the estimated useful lives of the assets as follows: Customer relationships 5-16 years Trade names 3-20 years Non-compete agreements 3 years At September 29, 2019 , the Company assessed if events or changes in circumstances indicated that the aggregate carrying amount of its identified intangible assets subject to amortization might not be recoverable. There were no indicators present that required the Company to test the recoverability of the aggregate carrying amount of its identified intangible assets subject to amortization at that date. |
LEASES
LEASES | 9 Months Ended |
Sep. 29, 2019 | |
Leases [Abstract] | |
LEASES | LEASES The Company is party to operating lease agreements for warehouses, office space, vehicle maintenance facilities and livestock growing farms in the U.S., distribution centers, hatcheries and office space in Mexico and farms, processing facilities and office space in the U.K. and Europe. Additionally, the Company leases equipment, over-the-road transportation vehicles and other assets in all three geographic business segments. The Company is also party to a limited number of finance lease agreements in the U.S. Our leases have remaining lease terms of one year to 16 years, some of which may include options to extend the lease for up to one year and some of which may include options to terminate the lease within one year . The exercise of options to extend lease terms is at our sole discretion. Certain leases also include options to purchase the leased property. Certain lease agreements include rental payment increases over the lease term that can be either fixed or variable. Fixed payment increases and variable payment increases based on an index or rate are included in the initial lease liability using the index or rate at commencement date. Variable payment increases not based on an index are recognized as incurred. Certain lease agreements contain residual value guarantees, primarily vehicle and transportation equipment leases. The following table presents components of lease expense. Operating lease cost, finance lease amortization and finance lease interest are respectively included in Cost of sales, Selling, general and administrative expense and Interest expense, net of capitalized interest in the Condensed Consolidated Statements of Income. Thirteen Weeks Ended Thirty-Nine Weeks Ended September 29, 2019 September 29, 2019 (In thousands) Operating lease cost (a) $ 25,885 $ 77,352 Amortization of finance lease assets 64 111 Interest on finance leases 15 22 Short-term and variable lease cost 13,826 39,936 Net lease cost $ 39,790 $ 117,421 (a) Sublease income is immaterial and not included in operating lease costs. The weighted-average remaining lease term and discount rate for lease liabilities included in our Condensed Consolidated Balance Sheet are as follows: September 29, 2019 Weighted-average remaining lease term (years): Operating leases 5.82 Finance leases 4.54 Weighted-average discount rate: Operating leases 4.86 % Finance leases 5.31 % Supplemental cash flow information related to leases is as follows (in thousands): Thirty-Nine Weeks Ended September 29, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 74,988 Operating cash flow from finance leases 22 Financing cash flows from finance leases 111 Operating lease assets obtained in exchange for operating lease liabilities $ 24,290 Finance lease assets obtained in exchange for finance lease liabilities 1,435 Future minimum lease payments under noncancellable leases at September 29, 2019 are as follows (in thousands): Operating Leases Finance Leases For the fiscal years ending December: Year 1 $ 82,269 $ 423 Year 2 64,688 343 Year 3 55,830 326 Year 4 46,138 325 Year 5 35,043 271 Thereafter 62,278 — Total future minimum lease payments 346,246 1,688 Less: imputed interest (45,115 ) (187 ) Present value of lease liabilities $ 301,131 $ 1,501 Future minimum lease payments under capital and noncancellable operating leases with terms exceeding one year at December 30, 2018 were as follows (in thousands): Capital Lease Obligations Noncancellable Operating Lease Obligations For the fiscal years ending December: Year 1 $ 2,971 $ 84,220 Year 2 1,033 63,196 Year 3 36 53,908 Year 4 3 45,557 Year 5 — 36,136 Thereafter — 66,637 Net minimum lease payments 4,043 $ 349,654 Amount representing interest (337 ) Present value of net minimum lease payments $ 3,706 Lease liabilities as of September 29, 2019 are included in our Condensed Consolidated Balance Sheet as follows (in thousands): Operating Leases Finance Leases Accrued expenses and other current liabilities $ 70,113 $ — Current maturities of long-term debt — 352 Noncurrent operating lease liability, less current maturities 231,018 — Long-term debt, less current maturities — 1,149 Total lease liabilities $ 301,131 $ 1,501 As of September 29, 2019 , the Company did not have any operating and finance leases that have not commenced. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 9 Months Ended |
Sep. 29, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment (“PP&E”), net consisted of the following: September 29, 2019 December 30, 2018 (In thousands) Land $ 195,746 $ 196,769 Buildings 1,714,404 1,697,703 Machinery and equipment 2,660,556 2,618,213 Autos and trucks 62,596 59,195 Finance leases 1,435 — Construction-in-progress 324,434 269,166 PP&E, gross 4,959,171 4,841,046 Accumulated depreciation and amortization (2,748,047 ) (2,679,344 ) PP&E, net $ 2,211,124 $ 2,161,702 The Company recognized tangible asset depreciation expense of $66.2 million and $64.4 million during the thirteen weeks ended September 29, 2019 and September 30, 2018 , respectively. The Company recognized tangible asset depreciation expense of $193.4 million and $187.0 million during the thirty-nine weeks ended September 29, 2019 and September 30, 2018 , respectively. During the thirty-nine weeks ended September 29, 2019 , Pilgrim's spent $258.7 million on capital projects and transferred $ 189.9 million of completed projects from construction-in-progress to depreciable assets. Capital expenditures were primarily incurred during the thirty-nine weeks ended September 29, 2019 to improve efficiencies and reduce costs. During the thirty-nine weeks ended September 30, 2018 , the Company spent $231.9 million on capital projects and transferred $ 149.5 million of completed projects from construction-in-progress to depreciable assets. During the thirteen and thirty-nine weeks ended September 29, 2019 , the Company sold certain PP&E for $13.4 million and $15.2 million, respectively, and recognized net gains on these sales of $9.8 million and $9.5 million, respectively. PP&E sold in the thirty-nine weeks ended September 29, 2019 included broiler farms in Mexico, a breeder farm in Texas, vacant land in Minnesota and miscellaneous equipment. During the thirteen and thirty-nine weeks ended September 30, 2018 , the Company sold certain PP&E for $1.5 million and $2.7 million , respectively, and recognized net gains on these sales of $0.7 million and $0.5 million , respectively. PP&E sold in the thirty-nine weeks ended September 30, 2018 included a processing plant in Alabama and miscellaneous equipment. The Company has closed or idled various facilities in the U.S. and in the U.K. The Board of Directors has not determined if it would be in the best interest of the Company to divest any of these idled assets. Management is therefore not certain that it can or will divest any of these assets within one year, is not actively marketing these assets and, accordingly, has not classified them as assets held for sale. The Company continues to depreciate these assets. At September 29, 2019 , the carrying amounts of these idled assets totaled $40.5 million based on depreciable value of $137.7 million and accumulated depreciation of $97.2 million . At September 29, 2019 , the Company assessed if events or changes in circumstances indicated that the aggregate carrying amount of its property, plant and equipment held for use might not be recoverable. There were no indicators present that required the Company to test the recoverability of the aggregate carrying amount of its property, plant and equipment held for use at that date. |
CURRENT LIABILITIES
CURRENT LIABILITIES | 9 Months Ended |
Sep. 29, 2019 | |
Payables and Accruals [Abstract] | |
CURRENT LIABILITIES | CURRENT LIABILITIES Current liabilities, other than current notes payable to banks, income taxes and current maturities of long-term debt, consisted of the following components: September 29, 2019 December 30, 2018 (In thousands) Accounts payable: Trade accounts $ 753,573 $ 744,105 Book overdrafts 74,966 69,475 Other payables 17,661 16,479 Total accounts payable 846,200 830,059 Accounts payable to related parties (a) 5,157 7,269 Revenue contract liability (b) 39,743 33,328 Accrued expenses and other current liabilities: Compensation and benefits 164,261 149,507 Interest and debt-related fees 29,079 33,596 Insurance and self-insured claims 77,680 80,990 Current maturities of operating lease liabilities 70,113 — Derivative liabilities: Commodity futures 6,800 1,479 Commodity options 7,002 3,312 Foreign currency derivatives 548 6,649 Other accrued expenses 138,764 111,408 Total accrued expenses and other current liabilities 494,247 386,941 $ 1,385,347 $ 1,257,597 (a) Additional information regarding accounts payable to related parties is included in “Note 19. Related Party Transactions.” (b) Additional information regarding revenue contract liabilities is included in “Note 13. Revenue Recognition.” |
LONG-TERM DEBT AND OTHER BORROW
LONG-TERM DEBT AND OTHER BORROWING ARRANGEMENTS | 9 Months Ended |
Sep. 29, 2019 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT AND OTHER BORROWING ARRANGEMENTS | LONG-TERM DEBT AND OTHER BORROWING ARRANGEMENTS Long-term debt and other borrowing arrangements, including current notes payable to banks, consisted of the following components: Maturity September 29, 2019 December 30, 2018 (In thousands) Long-term debt and other long-term borrowing arrangements: Senior notes payable, net of premium and discount at 5.75% 2025 $ 1,002,195 $ 1,002,497 Senior notes payable, net of discount at 5.875% 2027 844,254 843,717 U.S. Credit Facility (defined below): Term note payable at 3.35% 2023 481,250 500,000 Revolving note payable at 5.25% 2023 — — Moy Park France Invoice Discounting Revolver with payables at 2019 — 2,277 Moy Park Credit Agricole Bank Overdraft with notes payable at On Demand — 88 Moy Park Bank of Ireland Revolving Facility with notes payable at 2023 — — Mexico Credit Facility (defined below) with notes payable at 2023 — — Secured loans with payables at weighted average of 3.34% Various 1,334 319 Finance lease obligations Various 1,501 3,707 Long-term debt 2,330,534 2,352,605 Less: Current maturities of long-term debt (26,636 ) (30,405 ) Long-term debt, less current maturities 2,303,898 2,322,200 Less: Capitalized financing costs (24,027 ) (27,010 ) Long-term debt, less current maturities, net of capitalized financing costs: $ 2,279,871 $ 2,295,190 U.S. Senior Notes On March 11, 2015, the Company completed a sale of $500.0 million aggregate principal amount of its 5.75% senior notes due 2025. On September 29, 2017, the Company completed an add-on offering of $250.0 million of these senior notes. The issuance price of this add-on offering was 102.0% , which created gross proceeds of $255.0 million . The additional $5.0 million will be amortized over the remaining life of the senior notes. On March 7, 2018, the Company completed another add-on offering of $250.0 million of these senior notes (together with the senior notes issued in March 2015 and September 2017, the “Senior Notes due 2025”). The issuance price of this add-on offering was 99.25% , which created gross proceeds of $248.1 million. The $ 1.9 million discount will be amortized over the remaining life of the senior notes. Each issuance of the Senior Notes due 2025 is treated as a single class for all purposes under the 2015 Indenture (defined below) and have the same terms. The Senior Notes due 2025 are governed by, and were issued pursuant to, an indenture dated as of March 11, 2015 by and among the Company, its guarantor subsidiary and Wells Fargo Bank, National Association, as trustee (the “2015 Indenture”). The 2015 Indenture provides, among other things, that the Senior Notes due 2025 bear interest at a rate of 5.75% per annum from the date of issuance until maturity, payable semi-annually in cash in arrears, beginning on September 15, 2015 for the Senior Notes due 2025 that were issued in March 2015 and beginning on March 15, 2018 for the Senior Notes due 2025 that were issued in September 2017 and March 2018. On September 29, 2017, the Company completed a sale of $600.0 million aggregate principal amount of its 5.875% senior notes due 2027. On March 7, 2018, the Company completed an add-on offering of $250.0 million of these senior notes (together with the senior notes issued in September 2017, the “Senior Notes due 2027”). The issuance price of this add-on offering was 97.25% , which created gross proceeds of $243.1 million. The $6.9 million discount will be amortized over the remaining life of the Senior Notes due 2027. Each issuance of the Senior Notes due 2027 is treated as a single class for all purposes under the 2017 Indenture (defined below) and have the same terms. The Senior Notes due 2027 are governed by, and were issued pursuant to, an indenture dated as of September 29, 2017 by and among the Company, its guarantor subsidiary and U.S. Bank National Association, as trustee (the “2017 Indenture”). The 2017 Indenture provides, among other things, that the Senior Notes due 2027 bear interest at a rate of 5.875% per annum from the date of issuance until maturity, payable semi-annually in cash in arrears, beginning on March 30, 2018 for the Senior Notes due 2027 that were issued in September 2017 and beginning on March 15, 2018 for the Senior Notes due 2027 that were issued in March 2018. The Senior Notes due 2025 and the Senior Notes due 2027 are each guaranteed on a senior unsecured basis by the Company’s guarantor subsidiary. In addition, any of the Company’s other existing or future domestic restricted subsidiaries that incur or guarantee any other indebtedness (with limited exceptions) must also guarantee the Senior Notes due 2025 and the Senior Notes due 2027. The Senior Notes due 2025 and the Senior Notes due 2027 and related guarantees are unsecured senior obligations of the Company and its guarantor subsidiary and rank equally with all of the Company’s and its guarantor subsidiary’s other unsubordinated indebtedness. The Senior Notes due 2025, the 2015 Indenture, the Senior Notes due 2027 and the 2017 Indenture also contain customary covenants and events of default, including failure to pay principal or interest on the Senior Notes due 2025 and the Senior Notes due 2027 when due, among others. U.S. Credit Facility On July 20, 2018, the Company, and certain of the Company’s subsidiaries entered into a Fourth Amended and Restated Credit Agreement (the “U.S. Credit Facility”) with CoBank, ACB, as administrative agent and collateral agent, and the other lenders party thereto. The U.S. Credit Facility provides for a $750.0 million revolving credit commitment and a term loan commitment of up to $500.0 million (the “Term Loans”). The Company used the proceeds from the term loan commitment under the U.S. Credit Facility, together with cash on hand, to repay the outstanding loans under the Company’s previous credit agreement with Coöperatieve Rabobank U.A., New York Branch, as administrative agent, and the other lenders and financial institutions party thereto. The U.S. Credit Facility includes an accordion feature that allows the Company, at any time, to increase the aggregate revolving loan and term loan commitments by up to an additional $1.25 billion , subject to the satisfaction of certain conditions, including obtaining the lenders’ agreement to participate in the increase. The revolving loan commitment under the U.S. Credit Facility matures on July 20, 2023. All principal on the Term Loans is due at maturity on July 20, 2023 . Installments of principal are required to be made, in an amount equal to 1.25% of the original principal amount of the Term Loans, on a quarterly basis prior to the maturity date of the Term Loans. Covenants in the U.S. Credit Facility also require the Company to use the proceeds it receives from certain asset sales and specified debt or equity issuances and upon the occurrence of other events to repay outstanding borrowings under the U.S. Credit Facility. As of September 29, 2019 , the Company had Term Loans outstanding totaling $481.3 million and the amount available for borrowing under the revolving loan commitment was $708.4 million . The Company had letters of credit of $41.6 million and no borrowings outstanding under the revolving loan commitment as of September 29, 2019 . The U.S. Credit Facility includes a $75.0 million sub-limit for swingline loans and a $125.0 million sub-limit for letters of credit. Outstanding borrowings under the revolving loan commitment and the Term Loans bear interest at a per annum rate equal to (i) in the case of LIBOR loans, LIBOR plus 1.25% through August 2, 2018 and, thereafter, based on the Company’s net senior secured leverage ratio, between LIBOR plus 1.25% and LIBOR plus 2.75% and (ii) in the case of alternate base rate loans, the base rate plus 0.25% through August 2, 2018 and, based on the Company’s net senior secured leverage ratio, between the base rate plus 0.25% and base rate plus 1.75% thereafter. The U.S. Credit Facility contains customary financial and other various covenants for transactions of this type, including restrictions on the Company's ability to incur additional indebtedness, incur liens, pay dividends, make certain restricted payments, consummate certain asset sales, enter into certain transactions with the Company’s affiliates, or merge, consolidate and/or sell or dispose of all or substantially all of its assets, among other things. The U.S. Credit Facility requires the Company to comply with a minimum level of tangible net worth covenant. The U.S. Credit Facility also provides that the Company may not incur capital expenditures in excess of $500.0 million in any fiscal year. All obligations under the U.S. Credit Facility continue to be unconditionally guaranteed by certain of the Company’s subsidiaries and continue to be secured by a first priority lien on (i) the accounts receivable and inventory of the Company and its non-Mexico subsidiaries, (ii) 100% of the equity interests in the Company's domestic subsidiaries, To-Ricos, Ltd. and To-Ricos Distribution, Ltd., and 65% of the equity interests in its direct foreign subsidiaries and (iii) substantially all of the assets of the Company and the guarantors under the U.S. Credit Facility. The Company is currently in compliance with the covenants under the U.S. Credit Facility. U.K. and Europe Credit Facilities Moy Park France Invoice Discounting Facility In June 2009, Moy Park France Sàrl entered into a €20.0 million invoice discounting facility with GE De Facto (the “Invoice Discounting Facility”). The facility limit was decreased by 50 percent in June 2018. The Invoice Discounting Facility is payable on demand and the term is extended on an annual basis. The agreement can be terminated by either party with three months’ notice. Outstanding borrowings under the Invoice Discounting Facility bear interest at a per annum rate equal to EURIBOR plus a margin of 0.80% . As of September 29, 2019 , the U.S. dollar-equivalent loan commitment and borrowing availability under the Invoice Discounting Facility were $10.9 million . As of September 29, 2019 , there were no outstanding borrowings under the Invoice Discounting Facility. The Invoice Discounting Facility contains financial covenants and various other covenants that may adversely affect Moy Park's ability to, among other things, incur additional indebtedness, consummate certain asset sales, enter into certain transactions with JBS and the Company's other affiliates, merge, consolidate and/or sell or dispose of all or substantially all of Moy Park's assets. Moy Park Credit Agricole Bank Overdraft On December 3, 2018, Moy Park entered into an unsecured €0.5 million bank overdraft agreement (the “Overdraft Agreement”) with Credit Agricole. The Overdraft Agreement is payable on demand and can be cancelled anytime by the Company or Credit Agricole. Outstanding borrowings under the Overdraft Agreement bear interest at a per annum rate equal to EURIBOR plus 1.50% . As of September 29, 2019 , there were no outstanding borrowings under the Overdraft Agreement. Moy Park Bank of Ireland Revolving Facility Agreement On June 2, 2018, Moy Park Holdings (Europe) Ltd. and its subsidiaries entered into an unsecured multicurrency revolving facility agreement (the “Bank of Ireland Facility Agreement”) with the Governor and Company of the Bank of Ireland, as agent, and the other lenders party thereto. The Bank of Ireland Facility Agreement provides for a multicurrency revolving loan commitment of up to £100.0 million . The multicurrency revolving loan commitments under the Bank of Ireland Facility Agreement mature on June 2, 2023. Outstanding borrowings under the Bank of Ireland Facility Agreement bear interest at a rate per annum equal to the sum of (i) LIBOR or, in relation to any loan in euros, EURIBOR, plus (ii) a margin, ranging from 1.25% to 2.00% based on Leverage (as defined in the Bank of Ireland Facility Agreement). All obligations under the Bank of Ireland Facility Agreement are guaranteed by certain of Moy Park's subsidiaries. As of September 29, 2019 , both the U.S. dollar-equivalent loan commitment and borrowing availability under the Bank of Ireland Facility Agreement were $122.9 million . As of September 29, 2019 , there were no outstanding borrowings under the Bank of Ireland Facility Agreement. The Bank of Ireland Facility Agreement contains representations and warranties, covenants, indemnities and conditions that the Company believes are customary for transactions of this type. Pursuant to the terms of the Bank of Ireland Facility Agreement, Moy Park is required to meet certain financial and other restrictive covenants. Additionally, Moy Park is prohibited from taking certain actions without consent of the lenders, including, without limitation, incurring additional indebtedness, entering into certain mergers or other business combination transactions, permitting liens or other encumbrances on its assets and making restricted payments, including dividends, in each case except as expressly permitted under the Bank of Ireland Facility Agreement. The Bank of Ireland Facility Agreement contains events of default that the Company believes are customary for transactions of this type. If a default occurs, any outstanding obligations under the Bank of Ireland Facility Agreement may be accelerated. Mexico Credit Facility On December 14, 2018, certain of the Company's Mexican subsidiaries entered into an unsecured credit agreement (the “Mexico Credit Facility”) with Banco del Bajio, Sociedad Anónima, Institución de Banca Múltiple, as lender. The loan commitment under the Mexico Credit Facility is $1.5 billion Mexican pesos and can be borrowed on a revolving basis. The U.S. dollar-equivalent of the loan commitment under the Mexico Credit Facility is $74.8 million . Outstanding borrowings under the Mexico Credit Facility accrue interest at a rate equal to the 28-Day Interbank Equilibrium Interest Rate plus 1.50% . The Mexico Credit Facility contains covenants and defaults that the Company believes are customary for transactions of this type. The Mexico Credit Facility will be used for general corporate and working capital purposes. The Mexico Credit Facility will mature on December 14, 2023. As of September 29, 2019 , there were no |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company recorded income tax expense of $142.3 million , a 28.1% effective tax rate, for the thirty-nine weeks ended September 29, 2019 compared to income tax expense of $106.4 million , a 29.4% effective tax rate, for the thirty-nine weeks ended September 30, 2018 . The increase in income tax expense in 2019 resulted primarily from an increase in pre-tax income and an increase in unrecognized tax benefits in Mexico, partially offset by the recognition of the one-time transition tax for the thirty-nine weeks ended September 30, 2018. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carry back and carry forward periods), projected future taxable income and tax-planning strategies in making this assessment. As of September 29, 2019, the Company did not believe it had sufficient positive evidence to conclude that realization of a portion of its foreign net deferred tax assets are more likely than not to be realized. For the thirty-nine weeks ended September 29, 2019 and September 30, 2018 , there are tax effects of $2.0 million and ($0.3) million, respectively, reflected in other comprehensive income. For the thirty-nine weeks ended September 29, 2019 and September 30, 2018 , there are immaterial tax effects reflected in income tax expense due to excess tax benefits and shortfalls related to share-based compensation. The Company and its subsidiaries file a variety of consolidated and standalone income tax returns in various jurisdictions. In the normal course of business, our income tax filings are subject to review by various taxing authorities. In general, tax returns filed by the Company and our subsidiaries for years prior to 2011 are no longer subject to examination by tax authorities. The Mexican tax authorities have assessed a Mexico subsidiary of the Company $16.6 million related to a specific transaction undertaken during tax year 2011. A loss for this amount has been recorded and paid during the thirty-nine weeks ended ended September 29, 2019 |
REVENUE RECOGNITION
REVENUE RECOGNITION | 9 Months Ended |
Sep. 29, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION The vast majority of the Company's revenue is derived from contracts which are based upon a customer ordering our products. While there may be master agreements, the contract is only established when the customer’s order is accepted by the Company. The Company accounts for a contract, which may be verbal or written, when it is approved and committed by both parties, the rights of the parties are identified along with payment terms, the contract has commercial substance and collectability is probable. The Company evaluates the transaction for distinct performance obligations, which are the sale of its products to customers. Since its products are commodity market-priced, the sales price is representative of the observable, standalone selling price. Each performance obligation is recognized based upon a pattern of recognition that reflects the transfer of control to the customer at a point in time, which is upon destination (customer location or port of destination), which faithfully depicts the transfer of control and recognition of revenue. There are instances of customer pick-up at the Company's facility, in which case control transfers to the customer at that point and the Company recognizes revenue. The Company's performance obligations are typically fulfilled within days to weeks of the acceptance of the order. The Company makes judgments regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from revenue and cash flows with customers. Determination of a contract requires evaluation and judgment along with the estimation of the total contract value and if any of the contract value is constrained. Due to the nature of our business, there is minimal variable consideration, as the contract is established at the acceptance of the order from the customer. When applicable, variable consideration is estimated at contract inception and updated on a regular basis until the contract is completed. Allocating the transaction price to a specific performance obligation based upon the relative standalone selling prices includes estimating the standalone selling prices including discounts and variable consideration. Disaggregated Revenue Revenue has been disaggregated into the categories below to show how economic factors affect the nature, amount, timing and uncertainty of revenue and cash flows. Thirteen Weeks Ended September 29, 2019 Thirty-Nine Weeks Ended September 29, 2019 Domestic Export Net Sales Domestic Export Net Sales (In thousands) U.S. $ 1,857,859 $ 73,797 $ 1,931,656 $ 5,523,497 $ 208,704 $ 5,732,201 U.K. and Europe 451,347 66,185 517,532 1,372,028 196,368 1,568,396 Mexico 328,782 — 328,782 1,045,133 — 1,045,133 Net Sales $ 2,637,988 $ 139,982 $ 2,777,970 $ 7,940,658 $ 405,072 $ 8,345,730 Thirteen Weeks Ended September 30, 2018 Thirty-Nine Weeks Ended September 30, 2018 Domestic Export Net Sales Domestic Export Net Sales (In thousands) U.S. $ 1,800,789 $ 63,380 $ 1,864,169 $ 5,411,391 $ 193,318 $ 5,604,709 U.K. and Europe 456,187 70,535 526,722 1,398,494 235,631 1,634,125 Mexico 306,713 — 306,713 1,042,161 — 1,042,161 Net Sales $ 2,563,689 $ 133,915 $ 2,697,604 $ 7,852,046 $ 428,949 $ 8,280,995 Shipping and Handling Costs In the rare case when shipping and handling activities are performed after a customer obtains control of the good, the Company has elected to account for shipping and handling as activities to fulfill the promise to transfer the good. When revenue is recognized for the related good before the shipping and handling activities occur, the related costs of those shipping and handling activities are accrued. Shipping and handling costs are recorded within cost of sales. Contract Costs The Company can incur incremental costs to obtain or fulfill a contract such as broker expenses that are not expected to be recovered. The amortization period for such expenses is less than one year; therefore, the costs are expensed as incurred. Taxes There is no change in accounting for taxes due to the adoption of the new revenue standard, as there is no material change to the timing of revenue recognition. We exclude all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the entity from a customer (for example, sales, use, value added, and some excise taxes) from the transaction price. Contract Balances The Company receives payment from customers based on terms established with the customer. Payments are typically due within two weeks of delivery. There are rarely contract assets related to costs incurred to perform in advance of scheduled billings. Revenue contract liabilities relate to payments received in advance of satisfying the performance under the customer contract. The revenue contract liability relates to customer prepayments and the advanced consideration received from governmental agency contracts for which performance obligations to the end customer have not been satisfied. Changes in the revenue contract liability balances during the thirty-nine weeks ended September 29, 2019 are as follows (in thousands): Balance, beginning of period $ 33,328 Revenue recognized (34,339 ) Cash received, excluding amounts recognized as revenue during the period 40,754 Balance, end of period $ 39,743 Accounts Receivable The Company records accounts receivable when revenue is recognized. The Company records an allowance for doubtful accounts to reduce the receivables balance to an amount it estimates is collectible from customers. Estimates used in determining the allowance for doubtful accounts are based on historical collection experience, current trends, aging of accounts receivable and periodic credit evaluations of customers’ financial condition. The Company writes off accounts receivable when it becomes apparent, based upon age or customer circumstances, that such amounts will not be collected. Generally, the Company does not require collateral for its accounts receivable. |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT BENEFITS | 9 Months Ended |
Sep. 29, 2019 | |
Defined Benefit Plan [Abstract] | |
PENSION AND OTHER POSTRETIREMENT BENEFITS | PENSION AND OTHER POSTRETIREMENT BENEFITS The Company sponsors programs that provide retirement benefits to most of its employees. These programs include qualified defined benefit pension plans such as the Pilgrim's Pride Retirement Plan for Union Employees (the “Union Plan”) and the Pilgrim's Pride Pension Plan for Legacy Gold Kist Employees (the “GK Pension Plan”), nonqualified defined benefit retirement plans, a defined benefit postretirement life insurance plan and defined contribution retirement savings plan. Expenses recognized under all retirement plans totaled $5.0 million and $3.0 million in the thirteen weeks ended September 29, 2019 and September 30, 2018 , respectively, and $14.6 million and $9.1 million in the thirty-nine weeks ended September 29, 2019 and September 30, 2018 , respectively. Defined Benefit Plans Obligations and Assets The change in benefit obligation, change in fair value of plan assets, funded status and amounts recognized in the Condensed Consolidated Balance Sheets for the defined benefit plans were as follows: Thirty-Nine Weeks Ended Thirty-Nine Weeks Ended Pension Benefits Other Benefits Pension Benefits Other Benefits Change in projected benefit obligation: (In thousands) Projected benefit obligation, beginning of period $ 157,619 $ 1,462 $ 178,247 $ 1,603 Interest cost 4,402 39 4,097 35 Actuarial losses (gains) 20,726 130 (9,787 ) (67 ) Benefits paid (4,564 ) (111 ) (6,857 ) (111 ) Curtailments and settlements (8,783 ) — — — Projected benefit obligation, end of period $ 169,400 $ 1,520 $ 165,700 $ 1,460 Thirty-Nine Weeks Ended Thirty-Nine Weeks Ended Pension Benefits Other Benefits Pension Benefits Other Benefits Change in plan assets: (In thousands) Fair value of plan assets, beginning of period $ 102,414 $ — $ 112,570 $ — Actual return on plan assets 12,637 — 1,853 — Contributions by employer 6,096 111 9,474 111 Benefits paid (4,564 ) (111 ) (6,857 ) (111 ) Curtailments and settlements (8,783 ) — — — Fair value of plan assets, end of period $ 107,800 $ — $ 117,040 $ — September 29, 2019 December 30, 2018 Pension Benefits Other Benefits Pension Benefits Other Benefits Funded status: (In thousands) Unfunded benefit obligation, end of period $ (61,600 ) $ (1,520 ) $ (55,205 ) $ (1,462 ) September 29, 2019 December 30, 2018 Pension Benefits Other Benefits Pension Benefits Other Benefits Amounts recognized in the Condensed Consolidated Balance Sheets at end of period: (In thousands) Current liability $ (8,117 ) $ (111 ) $ (8,267 ) $ (149 ) Long-term liability (53,483 ) (1,409 ) (46,938 ) (1,313 ) Recognized liability $ (61,600 ) $ (1,520 ) $ (55,205 ) $ (1,462 ) September 29, 2019 December 30, 2018 Pension Benefits Other Benefits Pension Benefits Other Benefits Amounts recognized in accumulated other comprehensive loss at end of period: (In thousands) Net actuarial loss (gain) $ 62,431 $ 95 $ 54,343 $ (34 ) The accumulated benefit obligation for the Company's defined benefit pension plans was $169.4 million and $157.6 million at September 29, 2019 and December 30, 2018 , respectively. Each of the Company's defined benefit pension plans had accumulated benefit obligations that exceeded the fair value of plan assets at September 29, 2019 and December 30, 2018 . As of September 29, 2019 , the weighted average duration of the Company's defined benefit pension obligation is 29.71 years. Net Periodic Benefit Costs Net defined benefit pension and other postretirement costs included the following components: Thirteen Weeks Ended September 29, 2019 Thirteen Weeks Ended September 30, 2018 Thirty-Nine Weeks Ended September 29, 2019 Thirty-Nine Weeks Ended September 30, 2018 Pension Benefits Other Benefits Pension Benefits Other Benefits Pension Benefits Other Benefits Pension Benefits Other Benefits (In thousands) Interest cost $ 1,468 $ 13 $ 1,366 $ 12 $ 4,402 $ 39 $ 4,097 $ 35 Estimated return on plan assets (1,349 ) — (1,516 ) — (4,047 ) — (4,549 ) — Settlement loss 1,134 — — — 3,064 — — — Amortization of net loss 328 — 300 — 984 — 902 — Net costs $ 1,581 $ 13 $ 150 $ 12 $ 4,403 $ 39 $ 450 $ 35 Economic Assumptions The weighted average assumptions used in determining pension and other postretirement plan information were as follows: September 29, 2019 December 30, 2018 Pension Benefits Other Benefits Pension Benefits Other Benefits Assumptions used to measure benefit obligation at end of period: Discount rate 3.23 % 2.81 % 4.40 % 4.07 % Thirty-Nine Weeks Ended Thirty-Nine Weeks Ended Pension Benefits Other Benefits Pension Benefits Other Benefits Assumptions used to measure net pension and other postretirement cost: Discount rate 4.40 % 4.07 % 3.69 % 3.39 % Expected return on plan assets 5.50 % N/A 5.50 % N/A The discount rate represents the interest rate used to determine the present value of future cash flows currently expected to be required to settle the Company's pension and other benefit obligations. The weighted average discount rate for each plan was established by comparing the projection of expected benefit payments to the AA Above Median yield curve. The expected benefit payments were discounted by each corresponding discount rate on the yield curve. For payments beyond 30 years, the Company extended the curve assuming the discount rate derived in year 30 is extended to the end of the plan's payment expectations. Once the present value of the string of benefit payments was established, the Company determined the single rate on the yield curve, that when applied to all obligations of the plan, would exactly match the previously determined present value. As part of the evaluation of pension and other postretirement assumptions, the Company applied assumptions for mortality that incorporate generational white and blue collar mortality trends. In determining its benefit obligations, the Company used generational tables that take into consideration increases in plan participant longevity. As of September 29, 2019 and December 30, 2018 , all pension and other postretirement benefit plans used variations of the RP2014 mortality table and the MP2015 mortality improvement scale. The sensitivity of the projected benefit obligation for pension benefits to changes in the discount rate is set out below. The impact of a change in the discount rate of 0.25% on the projected benefit obligation for other benefits is less than $1,000 . This sensitivity analysis is based on changing one assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to variations in significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as for calculating the liability recognized in the Condensed Consolidated Balance Sheets. Increase in Discount Rate of 0.25% Decrease in Discount Rate of 0.25% (In thousands) Impact on projected benefit obligation for pension benefits $ (4,218 ) $ 4,430 The expected rate of return on plan assets was primarily based on the determination of an expected return and behaviors for each plan's current asset portfolio that the Company believes are likely to prevail over long periods. This determination was made using assumptions for return and volatility of the portfolio. Asset class assumptions were set using a combination of empirical and forward-looking analysis. To the extent historical results were affected by unsustainable trends or events, the effects of those trends or events were quantified and removed. The Company also considered anticipated asset allocations, investment strategies and the views of various investment professionals when developing this rate. Plan Assets The following table reflects the pension plans’ actual asset allocations: September 29, 2019 December 30, 2018 Cash and cash equivalents 1 % — % Pooled separate accounts for the Union Plan (a) : Equity securities 4 % 4 % Fixed income securities 5 % 5 % Pooled separate accounts for the GK Pension Plan (a) : Equity securities 50 % 45 % Fixed income securities 35 % 41 % Real estate 5 % 5 % Total assets 100 % 100 % (a) Pooled separate accounts (“PSAs”) are one of the most common types of alternative vehicles in which benefit plans invest. These investments are pooled funds that look like mutual funds, but they are not registered with the SEC. Often times, they will be invested in mutual funds, real estate trusts or other marketable securities, but the unit price generally will be different from the value of the underlying securities because the fund may also hold cash for liquidity purposes, and the fees imposed by the fund are deducted from the fund value rather than charged separately to investors. Some PSAs have no restrictions as to their investment strategy and can invest in riskier investments, such as derivatives, hedge funds, private equity funds, or similar investments. Absent regulatory or statutory limitations, the target asset allocation for the investment of pension assets in the pooled separate accounts for the Union Plan is 50% in each of fixed income securities and equity securities and the target asset allocation for the investment of pension assets in the pooled separate accounts for the GK Pension Plan is 30% in fixed income securities and 70% in equity securities. The plans only invest in fixed income and equity instruments for which there is a readily available public market. The Company develops its expected long-term rate of return assumptions based on the historical rates of returns for equity and fixed income securities of the type in which its plans invest. The fair value measurements of plan assets fell into the following levels of the fair value hierarchy as of September 29, 2019 and December 30, 2018 : September 29, 2019 December 30, 2018 Level 1 (a) Level 2 (b) Level 3 (c) Total Level 1 (a) Level 2 (b) Level 3 (c) Total (In thousands) Cash and cash equivalents $ 1,117 $ — $ — $ 1,117 $ 110 $ — $ — $ 110 PSAs for the Union Plan: Large U.S. equity funds (d) — 2,797 — 2,797 — 2,491 — 2,491 Small/Mid U.S. equity funds (e) — 345 — 345 — 292 — 292 International equity funds (f) — 1,705 — 1,705 — 1,489 — 1,489 Fixed income funds (g) — 4,917 — 4,917 — 4,763 — 4,763 PSAs for the GK Pension Plan: Large U.S. equity funds (d) — 18,912 — 18,912 — 17,351 — 17,351 Small U.S. equity funds (e) — 11,607 — 11,607 — 5,880 — 5,880 International equity funds (f) — 23,653 — 23,653 — 22,516 — 22,516 Fixed income funds (g) — 37,208 — 37,208 — 42,217 — 42,217 Real estate (h) — 5,539 — 5,539 — 5,305 — 5,305 Total assets $ 1,117 $ 106,683 $ — $ 107,800 $ 110 $ 102,304 $ — $ 102,414 (a) Unadjusted quoted prices in active markets for identical assets are used to determine fair value. (b) Quoted prices in active markets for similar assets and inputs that are observable for the asset are used to determine fair value. (c) Unobservable inputs, such as discounted cash flow models or valuations, are used to determine fair value. (d) This category is comprised of investment options that invest in stocks, or shares of ownership, in large, well-established U.S. companies. These investment options typically carry more risk than fixed income options but have the potential for higher returns over longer time periods. (e) This category is generally comprised of investment options that invest in stocks, or shares of ownership, in small to medium-sized U.S. companies. These investment options typically carry more risk than larger U.S. equity investment options but have the potential for higher returns. (f) This category is comprised of investment options that invest in stocks, or shares of ownership, in companies with their principal place of business or office outside of the U.S. (g) This category is comprised of investment options that invest in bonds, or debt of a company or government entity (including U.S. and non-U.S. entities). These investment options typically carry more risk than short-term fixed income investment options, but less overall risk than equities. (h) This category is comprised of investment options that invest in real estate investment trusts or private equity pools that own real estate. These long-term investments are primarily in office buildings, industrial parks, apartments or retail complexes. These investment options typically carry more risk, including liquidity risk, than fixed income investment options. The valuation of plan assets in Level 2 is determined using a market approach based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for substantially the full term of the financial instrument. Level 2 securities primarily include equity and fixed income securities funds. Benefit Payments The following table reflects the benefits as of September 29, 2019 expected to be paid through 2028 from the Company's pension and other postretirement plans. Because its pension plans are primarily funded plans, the anticipated benefits with respect to these plans will come primarily from the trusts established for these plans. Because the Company's other postretirement plans are unfunded, the anticipated benefits with respect to these plans will come from its own assets. Pension Benefits Other Benefits (In thousands) 2019 (remaining) $ 4,493 $ 37 2020 11,526 147 2021 11,200 145 2022 10,891 141 2023 10,627 137 2024-2028 48,429 589 Total $ 97,166 $ 1,196 The Company anticipates contributing $2.1 million and less than $0.1 million , as required by funding regulations or laws, to its pension plans and other postretirement plans, respectively, during the remainder of 2019 . Unrecognized Benefit Amounts in Accumulated Other Comprehensive Loss The amounts in accumulated other comprehensive loss that were not recognized as components of net periodic benefits cost and the changes in those amounts are as follows: Thirty-Nine Weeks Ended Thirty-Nine Weeks Ended Pension Benefits Other Benefits Pension Benefits Other Benefits (In thousands) Net actuarial loss (gain), beginning of period $ 54,343 $ (34 ) $ 54,235 $ 35 Amortization (984 ) — (902 ) — Curtailment and settlement adjustments (3,064 ) — — — Actuarial loss (gain) 20,726 129 (9,787 ) (67 ) Asset loss (gain) (8,590 ) — 2,695 — Net actuarial loss (gain), end of period $ 62,431 $ 95 $ 46,241 $ (32 ) The Company expects to recognize in net pension cost throughout the remainder of 2019 an actuarial loss of $0.4 million that was recorded in accumulated other comprehensive loss at September 29, 2019 . Risk Management Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below: Asset volatility. The plan liabilities are calculated using a discount rate set with reference to corporate bond yields; if plan assets under perform this yield, this will create a deficit. The pension plans hold a significant proportion of equities, which are expected to outperform corporate bonds in the long-term while contributing volatility and risk in the short-term. The Company monitors the level of investment risk but has no current plan to significantly modify the mixture of investments. The investment position is discussed more below. Changes in bond yields. A decrease in corporate bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of the plans’ bond holdings. The investment position is managed and monitored by a committee of individuals from various departments. This group actively monitors how the duration and the expected yield of the investments are matching the expected cash outflows arising from the pension obligations. The group has not changed the processes used to manage its risks from previous periods. The group does not use derivatives to manage its risk. Investments are well diversified, such that the failure of any single investment would not have a material impact on the overall level of assets. The majority of equities are in U.S. large and small cap companies with some global diversification into international entities. The plans are not exposed to significant foreign currency risk. Remeasurement The Company remeasures both plan assets and obligations on a quarterly basis. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 29, 2019 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY Accumulated Other Comprehensive Loss The following tables provide information regarding the changes in accumulated other comprehensive loss: Thirty-Nine Weeks Ended September 29, 2019 (a) Losses Related to Foreign Currency Translation Unrealized Losses on Derivative Financial Instruments Classified as Cash Flow Hedges Losses Related to Pension and Other Postretirement Benefits Unrealized Holding Gains on Available-for-Sale Securities Total (In thousands) Balance, beginning of period $ (55,770 ) $ (683 ) $ (71,463 ) $ 82 $ (127,834 ) Other comprehensive income (loss) before (50,824 ) (1,257 ) (6,962 ) 383 (58,660 ) Amounts reclassified from accumulated other — 74 745 (353 ) 466 Currency translation — (12 ) — — (12 ) Net current period other comprehensive income (loss) (50,824 ) (1,195 ) (6,217 ) 30 (58,206 ) Balance, end of period $ (106,594 ) $ (1,878 ) $ (77,680 ) $ 112 $ (186,040 ) Thirty-Nine Weeks Ended September 30, 2018 (a) Losses Related to Foreign Currency Translation Unrealized Losses on Derivative Financial Instruments Classified as Cash Flow Hedges Losses Related to Pension and Other Postretirement Benefits Unrealized Holding Gains on Available-for-Sale Securities Total (In thousands) Balance, beginning of period $ 42,081 $ (1,848 ) $ (71,434 ) $ 61 $ (31,140 ) Other comprehensive income (loss) before (58,892 ) 33 5,415 985 (52,459 ) Amounts reclassified from accumulated other — 329 683 (956 ) 56 Currency translation — (5 ) — — (5 ) Net current period other comprehensive income (loss) (58,892 ) 357 6,098 29 (52,408 ) Balance, end of period $ (16,811 ) $ (1,491 ) $ (65,336 ) $ 90 $ (83,548 ) (a) All amounts are net of tax. Amounts in parentheses indicate debits to accumulated other comprehensive income (loss). Amounts Reclassified from Accumulated Other Comprehensive Loss (a) Details about Accumulated Other Comprehensive Loss Components Thirty-Nine Weeks Ended Thirty-Nine Weeks Ended Affected Line Item in the Condensed Consolidated Statements of Income (In thousands) Realized loss on derivative financial $ (74 ) $ (329 ) Cost of sales Realized gain on sale of securities 466 1,263 Interest income Amortization of defined benefit pension and other Union employees pension plan (b)(d) (54 ) (36 ) Miscellaneous, net Legacy GK plans-production employees (c)(d) (290 ) (270 ) Miscellaneous, net Legacy GK plans-administrative employees (c)(d) (640 ) (596 ) Miscellaneous, net Total before tax (592 ) 32 Tax benefit (expense) 126 (88 ) Total reclassification for the period $ (466 ) $ (56 ) (a) Amounts in parentheses represent debits to results of operations. (b) The Company sponsors the Union Plan, a qualified defined benefit pension plan covering certain locations or work groups with collective bargaining agreements. (c) The Company sponsors the GK Pension Plan, a qualified defined benefit pension plan covering certain eligible U.S. employees who were employed at locations that the Company purchased through its acquisition of Gold Kist in 2007, the SERP Plan, a nonqualified defined benefit retirement plan covering certain former Gold Kist executives, the Directors’ Emeriti Plan, a nonqualified defined benefit retirement plan covering certain former Gold Kist directors and the Retiree Life Plan, a defined benefit postretirement life insurance plan covering certain retired Gold Kist employees (collectively, the “Legacy GK Plans”). (d) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See “Note 14. Pension and Other Postretirement Benefits” to the Condensed Consolidated Financial Statements. Share Repurchase Program and Treasury Stock On October 31, 2018, the Company’s Board of Directors approved a $200.0 million share repurchase authorization. The Company plans to repurchase shares through various means, which may include but are not limited to open market purchases, privately negotiated transactions, the use of derivative instruments and/or accelerated share repurchase programs. The extent to which the Company repurchases its shares, if at all, and the timing of any such repurchases will vary and depend upon market conditions and other corporate considerations, as determined by the Company’s management team. The Company reserves the right to limit or terminate the repurchase program at any time without notice. The Company will account for any shares repurchased using the cost method. The Company currently plans to maintain any repurchased shares as treasury stock. As of September 29, 2019 , the Company had repurchased approximately 132,000 shares under this program with a market value at the time of purchase of approximately $3.1 million . Restrictions on Dividends |
INCENTIVE COMPENSATION
INCENTIVE COMPENSATION | 9 Months Ended |
Sep. 29, 2019 | |
INCENTIVE COMPENSATION [Abstract] | |
INCENTIVE COMPENSATION | INCENTIVE COMPENSATION The Company sponsors short-term incentive plans that provides the grant of either cash or share-based bonus awards payable upon achievement of specified performance goals. Full-time, salaried exempt employees of the Company's U.S. operations who are selected by the administering committee are eligible to participate in the Pilgrim's Short Term Incentive Plan (“STIP”). Certain full-time, salaried employees of the Company’s Mexico operations are eligible to participate in the Pilgrim’s Mexico Incentive Plan (“PMIP”). The Company assumed responsibility for the JFC LLC Long-Term Equity Incentive Plan dated January 1, 2014, as amended (the “JFC LTIP”) through its acquisition of JFC LLC and its subsidiaries (together, “GNP”) on January 6, 2017. The Company assumed responsibility for the Moy Park Incentive Plan dated January 1, 2013, as amended (the “MPIP”) through its acquisition of Moy Park on September 8, 2017. At September 29, 2019 , the Company has accrued $23.6 million , $1.3 million , $2.9 million and $1.6 million related to cash bonus awards that could potentially be awarded under the STIP, JFC LTIP, MPIP and PMIP, respectively. The Company also sponsors a performance-based, omnibus long-term incentive plan that provides for the grant of a broad range of long-term equity-based and liability-based awards to the Company’s officers and other employees, members of the Board of Directors and any consultants (the “LTIP”). Awards that may be granted under the LTIP include “incentive stock options,” within the meaning of the IRC, nonqualified stock options, stock appreciation rights, restricted stock awards and restricted stock units (“RSUs”). Equity-based awards are converted into shares of the Company's common stock shortly after award vesting. Compensation cost to be recognized for an equity-based awards grant is determined by multiplying the number of awards granted by the closing price of a share of the Company's common stock on the award grant date. Liability-based awards granted under the LTIP are converted into cash shortly after award vesting. Compensation cost to be recognized for a liability-based awards grant is first determined by multiplying the number of awards granted by the closing price of a share of the Company's common stock on the award grant date. However, the compensation cost to be recognized is adjusted at each subsequent milestone date (i.e., forfeiture date, vesting date or financial reporting date) by multiplying the number of awards granted by the closing price of a share of the Company's common stock on the milestone date. At September 29, 2019 , we have in reserve approximately 3.8 million shares of common stock for future issuance under the LTIP. The LTIP will expire pursuant to its terms on December 28, 2019 and no awards will be granted under the LTIP after that date. On May 1, 2019, the Company's stockholders approved the Pilgrim’s Pride Corporation 2019 Long Term Incentive Plan (the “2019 LTIP”) and reserved 2.0 million shares of common stock for awards under the plan. The 2019 LTIP is intended to replace the expiring plan. The 2019 LTIP will be effective as of December 28, 2019. The following LTIP awards were outstanding during the thirty-nine weeks ended September 29, 2019 : Award Type Awards Granted Grant Date Intended Settlement Method Grant Date Fair Value Milestone Date Fair Value per Award Vesting Condition Vesting Date Awards Forfeited to Date RSU 410,000 2/14/2018 Stock $ 25.59 NA Service 1/1/2019 — RSU 163,764 3/1/2018 Stock 24.93 NA Service (a) 45,755 RSU 250,351 3/1/2018 Stock 24.93 NA Performance / Service (b) 151,229 RSU 33,174 3/1/2018 Cash 24.93 $ 31.31 Performance / Service (c) — RSU 8,358 5/10/2018 Stock 21.54 NA Service (d) — RSU 2,786 5/10/2018 Cash 21.54 26.86 Service 5/1/2019 — RSU 262,500 12/18/2018 Stock 16.06 NA Service 7/1/2019 — RSU 396,763 1/7/2019 Stock 16.47 NA Performance / Service (e) 92,075 RSU 109,654 1/7/2019 Cash 16.47 31.31 Performance / Service (f) — RSU 200,000 4/30/2019 Stock 26.91 NA Service 7/1/2020 — RSU 11,170 5/24/2019 Stock 27.86 NA Service (d) — (a) The restricted stock units vest in ratable tranches on December 31, 2018, December 31, 2019 and December 31, 2020. Expected compensation cost related to these units totals $2.9 million based on a closing stock price for the Company’s common stock of $24.93 per share on March 1, 2018 . Compensation cost will be amortized to profit/loss over the remaining vesting period. (b) The restricted stock units vest in ratable tranches on December 31, 2019, December 31, 2020 and December 31, 2021. Expected compensation cost related to these units totals $2.5 million based on a closing stock price for the Company’s common stock of $24.93 per share on March 1, 2018 . Compensation cost will be amortized to profit/loss over the remaining vesting period. (c) The restricted stock units vest in ratable tranches on December 31, 2019, December 31, 2020 and December 31, 2021. Expected compensation cost related to these units totals $1.0 million based on a closing stock price for the Company's common stock of $31.31 per share on September 29, 2019 . Compensation cost will be amortized to profit/loss over the remaining vesting period. (d) These restricted stock units were granted to the non-employees who currently serve on the Company's Board of Directors. Each participating director's units will vest upon his departure from the Company's Board of Directors. Compensation cost was recognized in profit/loss upon the grant date. (e) If performance conditions related to the Company's 2019 operating results are satisfied, the restricted stock units vest in ratable tranches on December 31, 2020, December 31, 2021 and December 31, 2022. Expected compensation cost related to these units totals $5.1 million based on a closing stock price for the Company's common stock of $16.47 per share on January 7, 2019 . Compensation cost will be amortized to profit/loss upon satisfaction of the performance conditions over the remaining vesting period. (f) If performance conditions related to the Company's 2019 operating results are satisfied, the restricted stock units vest in ratable tranches on December 31, 2020, December 31, 2021 and December 31, 2022. Expected compensation cost related to these units totals $3.4 million based on a closing stock price for the Company's common stock of $31.31 per share on September 29, 2019 . Compensation cost will be amortized to profit/loss upon satisfaction of the performance conditions over the remaining vesting period. Compensation costs and the income tax benefit recognized for our share-based compensation arrangements are included below: Thirteen Weeks Ended Thirty-Nine Weeks Ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 (In thousands) Equity-based awards compensation cost: Cost of sales $ 149 $ 124 $ 311 $ 293 Selling, general and administrative expense 1,956 3,502 7,011 8,966 Total cost 2,105 3,626 7,322 9,259 Income tax benefit 512 883 1,782 2,254 Net cost $ 1,593 $ 2,743 $ 5,540 $ 7,005 Liability-based awards compensation cost: Selling, general and administrative expense $ 224 $ — $ 452 $ — Income tax benefit 55 — 110 — Net cost $ 169 $ — $ 342 $ — The Company’s RSU activity is included below: Thirty-Nine Weeks Ended September 29, 2019 Thirty-Nine Weeks Ended September 30, 2018 Number Weighted Average Grant Date Fair Value Number Weighted Average Grant Date Fair Value (In thousands, except weighted average fair values) Equity-based RSUs: Outstanding at beginning of period 1,033 $ 22.91 389 $ 18.39 Granted 608 20.11 849 25.20 Vested (721 ) 22.08 — — Forfeited (227 ) 21.51 (427 ) 18.97 Outstanding at end of period 693 21.79 811 25.22 Thirty-Nine Weeks Ended September 29, 2019 Thirty-Nine Weeks Ended September 30, 2018 Number Weighted Average Milestone Date Fair Value(a) Number Weighted Average Milestone Date Fair Value(a) (In thousands, except weighted average fair values) Liability-based RSUs: Outstanding at beginning of period — $ — — $ — Granted 146 16.25 — — Vested (3 ) 26.86 — — Outstanding at end of period 143 31.31 — — (a) The milestone date fair value is the closing price of a share of the Company's common stock on the respective milestone date (i.e., grant date, vesting date, forfeiture date or financial reporting date). The total fair values of equity-based awards and liability-based awards vested during the thirty-nine weeks ended September 29, 2019 were $14.0 million and $0.1 million , respectively. No awards vested during the thirty-nine weeks ended September 30, 2018 . At September 29, 2019 , the total unrecognized compensation cost related to all nonvested equity-based awards was $10.0 million . This cost is expected to be recognized over a weighted average period of 1.62 years. At September 29, 2019 , the total unrecognized compensation cost related to all nonvested liability-based awards was $3.2 million . This cost is expected to be recognized over a weighted average period of 2.18 years. Historically, we have issued new shares to satisfy equity-based award conversions. |
RESTRUCTURING ACTIVITIES
RESTRUCTURING ACTIVITIES | 9 Months Ended |
Sep. 29, 2019 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING ACTIVITIES | RESTRUCTURING ACTIVITIES In 2018, the Company elected to close its 40 North Foods product incubator operation located in Boulder, Colorado. Implementation of this restructuring initiative is expected to result in total pre-tax charges of approximately $0.6 million , and approximately $0.5 million of these charges are estimated to result in cash outlays. These activities were initiated in the second quarter of 2018 and were substantially completed in the third quarter in 2019. In 2017, the Company initiated a restructuring initiative to capitalize on cost-saving opportunities within its GNP operations located in Luverne, Minnesota and St. Cloud, Minnesota. Implementation of the initiative is expected to result in total pre-tax charges of approximately $6.2 million , and approximately $4.3 million of these charges are estimated to result in cash outlays. These activities were initiated in the first quarter of 2017 and are expected to be substantially completed by the second quarter of 2020. The following table provides a summary of our estimates of net costs associated with these restructuring initiatives by major type of cost: Type of Cost 40 North Foods GNP Total Estimated Amount Expected to be Incurred (In thousands) Employee termination benefits $ 449 $ 4,224 $ 4,673 Inventory adjustments — 472 472 Asset impairments 103 781 884 Other, net (a) 18 736 754 Total estimated costs, net $ 570 $ 6,213 $ 6,783 (a) Comprised of other costs directly related to the restructuring initiatives, including prepaid software impairment, St. Cloud, Minnesota office lease costs, Luverne, Minnesota plant closure costs, and Boulder, Colorado office lease costs and sublease income. During the thirteen and thirty-nine weeks ended September 29, 2019 , the Company recognized the following expenses (income) and paid (received) the following cash related to each restructuring initiative: Thirteen Weeks Ended September 29, 2019 Thirty-Nine Weeks Ended September 29, 2019 Expenses (Income) Cash Outlays (Receipts) Expenses (Income) Cash Outlays (Receipts) (In thousands) 40 North Foods - Other, net $ (20 ) $ 8 $ (90 ) $ (6 ) GNP - Employee termination benefits — 15 — 68 $ (20 ) $ 23 $ (90 ) $ 62 The expenses (income) are reported in the line item Administrative restructuring activities on the Condensed Consolidated Statements of Income and are recognized in the U.S. segment. The following table reconciles liabilities and reserves associated with each restructuring initiative from initiative inception to September 29, 2019 . Ending liability balances for employee termination benefits and other charges are reported in the line item Accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets. The ending reserve balance for inventory impairments is reported in the line item Inventories in our Condensed Consolidated Balance Sheets. 40 North Foods GNP Employee Termination Benefits Other, Total Employee Termination Benefits Inventory Other, Total (In thousands) Restructuring charges incurred $ — $ — $ — $ 3,381 $ 699 $ 752 $ 4,832 Cash payments and disposals — — — (2,581 ) — — (2,581 ) Liability or reserve at December 31, 2017 — — — 800 699 752 2,251 Restructuring charges incurred 449 150 599 936 (227 ) (17 ) 692 Restructuring income recognized — (35 ) (35 ) — — — — Cash payments and disposals (449 ) (65 ) (514 ) (1,500 ) (472 ) (735 ) (2,707 ) Cash received — 36 36 — — — — Liability or reserve at December 30, 2018 — 86 86 236 — — 236 Restructuring income recognized — (90 ) (90 ) — — — — Cash payments and disposals — (83 ) (83 ) (69 ) — — (69 ) Cash received — 90 90 — — — — Liability or reserve at September 29, 2019 $ — $ 3 $ 3 $ 167 $ — $ — $ 167 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 29, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES General The Company is a party to many routine contracts in which it provides general indemnities in the normal course of business to third parties for various risks. Among other considerations, the Company has not recorded a liability for any of these indemnities because, based upon the likelihood of payment, the fair value of such indemnities would not have a material impact on its financial condition, results of operations and cash flows. Financial Instruments The Company’s loan agreements generally obligate the Company to reimburse the applicable lender for incremental increased costs due to a change in law that imposes (i) any reserve or special deposit requirement against assets of, deposits with or credit extended by such lender related to the loan, (ii) any tax, duty or other charge with respect to the loan (except standard income tax) or (iii) capital adequacy requirements. In addition, some of the Company’s loan agreements contain a withholding tax provision that requires the Company to pay additional amounts to the applicable lender or other financing party, generally if withholding taxes are imposed on such lender or other financing party as a result of a change in the applicable tax law. These increased costs and withholding tax provisions continue for the entire term of the applicable transaction, and there is no limitation on the maximum additional amounts the Company could be obligated to pay under such provisions. Any failure to pay amounts due under such provisions generally would trigger an event of default, and, in a secured financing transaction, would entitle the lender to foreclose upon the collateral to realize the amount due. Litigation The Company is a party to many routine contracts in which it provides general indemnities in the normal course of business to third parties for various risks. Among other considerations, the Company has not recorded a liability for any of these indemnities because, based upon the likelihood of payment, the fair value of such indemnities would not have a material impact on its financial condition, results of operations and cash flows. The Company is subject to various legal proceedings and claims which arise in the ordinary course of business. In the Company’s opinion, it has made appropriate and adequate accruals for claims where necessary; however, the ultimate liability for these matters is uncertain, and if significantly different than the amounts accrued, the ultimate outcome could have a material effect on the financial condition or results of operations of the Company. For a discussion of the material legal proceedings and claims, see Part II, Item 1. “Legal Proceedings.” Below is a summary of some of these material proceedings and claims. The Company believes it has substantial defenses to the claims made and intends to vigorously defend these cases. Tax Claims and Proceedings A Mexico subsidiary of the Company is currently appealing an unfavorable tax adjustment proposed by Mexican tax authorities due to an examination of a specific transaction undertaken by the Mexico subsidiary during tax years 2009 and 2010. Amounts under appeal are $24.3 million and $16.1 million for tax years 2009 and 2010, respectively. No loss has been recorded for these amounts at this time. Other Claims and Proceedings Between September 2, 2016 and October 13, 2016, a series of purported federal class action lawsuits styled as In re Broiler Chicken Antitrust Litigation , Case No. 1:16-cv-08637 were filed with the U.S. District Court for the Northern District of Illinois against PPC and 13 other producers by and on behalf of direct and indirect purchasers of broiler chickens alleging violations of federal and state antitrust and unfair competition laws. The complaints seek, among other relief, treble damages for an alleged conspiracy among defendants to reduce output and increase prices of broiler chickens from the period of January 2008 to the present. The class plaintiffs have filed three consolidated amended complaints: one on behalf of direct purchasers and two on behalf of distinct groups of indirect purchasers. Between December 8, 2017 and June 21, 2019, 31 individual direct action complaints ( Affiliated Foods, Inc., et al. v. Claxton Poultry Farms, Inc. , et al., Case No. 1:17-cv-08850; Sysco Corp. v. Tyson Foods Inc., et al ., Case No. 1:18-cv-00700; U.S. Foods Inc. v. Tyson Foods Inc. , et al ., Case No. 1:18-cv-00702; Action Meat Distributors, Inc., et al . v. Claxton Poultry Farms, Inc., et al ., Case No. 1:18-cv-03471; Jetro Holdings, LLC, v. Tyson Foods, Inc. et al. , Case No. 1:18-cv-04000; Associated Grocers of the South, Inc., et al . v. Tyson Foods, Inc. , et al. , Case No. 1:18-cv-4616; The Kroger Co., et al. v. Tyson Foods, Inc., et al. , Case No. 1:18-cv-04534; Ahold Delhaize USA, Inc. v. Koch Foods, Inc., et al ., Case No. 1:18-cv-05351; Samuels as Trustee In Bankruptcy for Central Grocers, Inc. et al. v. Norman W. Fries, Inc., d/b/a Claxton Poultry Farms, Inc. et al. , Case No. 1:18-cv-05341; W. Lee Flowers & Company, Inc. v. Norman W. Fries, Inc., d/b/a Claxton Poultry Farms, Inc. et al. , Case No. 1:18-cv-05345; BJ’s Wholesale Club, Inc. v. Tyson Foods, Inc., et al. , Case No. 1:18-cv-05877; United Supermarkets LLC, et al. v. Tyson Foods Inc., et al. , Case No. 1:18-cv-06693; Associated Wholesale Grocers, Inc. v. Koch Foods, Inc., et al. , Case No. 1:18-cv-06316 (transferred from the U.S. District Court for the District of Kansas on September 17, 2018, following Defendants’ successful motion to transfer); Shamrock Foods Company et al. v. Tyson Foods, Inc., et al. , Case No. 1:18-cv-7284; Winn-Dixie Stores, Inc., et al. v. Koch Foods, Inc., et al. , Case No. 1:18-cv-00245; Quirch Foods, LLC, f/k/a Quirch Foods Co. v. Koch Foods, Inc., et al. , Case No. 1:18-cv-08511; Sherwood Food Distributors, L.L.C., et al. v. Tyson Foods, Inc., et al. , Case No. 1:19-cv-00354, Hooters of America, LLC v. Tyson Foods, Inc., et al. , Case No. 1:19-cv-00390; Darden Restaurants, Inc. v. Tyson Foods, Inc., et al. , Case No. 1:19-cv-00530; Associated Grocers, Inc., et al. v. Norman W. Fries, Inc., d/b/a Claxton Poultry Farms, et al. , Case No. 1:19-cv-00638; Checkers Drive-In Restaurants, Inc. v. Tyson Foods, Inc. et al. , Case No. 1:19- cv-01283; Conagra Brands, Inc. et al. v. Tyson Foods, Inc. et al. , Case No. 1:19-cv-02190; Giant Eagle, Inc. v. Norman W. Fries, Inc., d/b/a Claxton Poultry Farms et al. , Case No. 1:19-cv-02758; Save Mart Supermarkets v. Tyson Foods, Inc., et al. , Case No. 1:19-cv-02805; Walmart Inc., et al. v. Pilgrim’s Pride Corporation, et al. , Case No. 1:19-cv-03915 (transferred from the U.S. District Court for the Western District of Arkansas on June 11, 2019, following Plaintiffs’ unopposed motion to transfer); Services Group of America, Inc. v. Tyson Food, Inc., et al. , Case No. 1:19-cv-04194; Restaurants of America, Inc. et al. v. Tyson Foods, Inc. et al. , Case No. 19-cv-04824; Anaheim Wings, d/b/a Hooters of Anaheim et al. v. Tyson Foods, Inc. et al. , Case No. 19-cv-05229; Amigos Meat Distributors, LP et al. v. Tyson Foods, Inc. et al. , Case No. 19-cv-05424; PJ Food Service, Inc. v. Tyson Foods, Inc. et al. , Case No. 19-cv-6141; and The Golub Corporation et al. v. Norman W. Fries, Inc. et al. , Case No. 19-cv-06955) were filed with the U.S. District Court for the Northern District of Illinois by individual direct purchaser entities naming PPC as a defendant, the allegations of which largely mirror those in the class action complaints. On June 20, 2019, an additional direct action complaint ( Commonwealth of Puerto Rico v. Koch Foods, Inc., et al. , Case No. 3:19-cv-01605) was filed with U.S. District Court for the District of Puerto Rico by the Commonwealth of Puerto Rico, the allegations of which also largely mirror those in the class action complaints. Substantial completion of document discovery for most defendants, including PPC, occurred on July 18, 2018. The Court has ordered the parties to coordinate scheduling of the direct action complaints with the class complaints with any necessary modifications to reflect time of filing. Discovery will be consolidated. On June 21, 2019, the United States Department of Justice filed a motion to intervene and stay discovery in the In re Broiler Chicken Antitrust Litigation for a period of six months. Following a hearing on June 27, 2019, on June 28, 2019, the Court granted the government’s motion to intervene, and ordered a limited three month stay of discovery until September 27, 2019. On July 1, 2019, the Department of Justice issued a subpoena to PPC in connection with its investigation. On September 20, 2019, the Department of Justice moved to extend the partial discovery stay for an additional six months. On October 16, 2019, the Court ordered that the limited stay of discovery be extended through June 27, 2020. Prior to the Court issuing that order, the scheduling order had required class certification briefing and expert reports proceeding from April 13, 2020 to December 14, 2020, and summary judgment to proceed 60 days after the Court rules on motions for class certification. Some or all of these dates may change given the Court’s order extending the discovery stay. On October 10, 2016, Patrick Hogan, acting on behalf of himself and a putative class of persons who purchased shares of PPC’s stock between February 21, 2014 and October 6, 2016, filed a class action complaint in the U.S. District Court for the District of Colorado against PPC and its named executive officers. The complaint alleges, among other things, that PPC’s SEC filings contained statements that were rendered materially false and misleading by PPC’s failure to disclose that (i) PPC colluded with several of its industry peers to fix prices in the broiler-chicken market as alleged in the In re Broiler Chicken Antitrust Litigation , (ii) its conduct constituted a violation of federal antitrust laws, (iii) PPC’s revenues during the class period were the result of illegal conduct and (iv) that PPC lacked effective internal control over financial reporting. The complaint also states that PPC’s industry was anticompetitive. On April 4, 2017, the Court appointed another stockholder, George James Fuller, as lead plaintiff. On May 11, 2017, the plaintiff filed an amended complaint, which extended the end date of the putative class period to November 17, 2017. PPC and the other defendants moved to dismiss on June 12, 2017, and the plaintiff filed its opposition on July 12, 2017. PPC and the other defendants filed their reply on August 1, 2017. On March 14, 2018, the Court dismissed the plaintiff’s complaint without prejudice and issued final judgment in favor of PPC and the other defendants. On April 11, 2018, the plaintiff moved for reconsideration of the Court’s decision and for permission to file a Second Amended Complaint. PPC and the other defendants filed a response to the plaintiff’s motion on April 25, 2018. On November 19, 2018, the Court denied the plaintiff’s motion for reconsideration and granted plaintiff leave to file a Second Amended Complaint. As of the date of this quarterly report, the plaintiff has not yet filed a Second Amended Complaint. On January 27, 2017, a purported class action on behalf of broiler chicken farmers was brought against PPC and four other producers in the Eastern District of Oklahoma, alleging, among other things, a conspiracy to reduce competition for grower services and depress the price paid to growers. Plaintiffs allege violations of the Sherman Act and the Packers and Stockyards Act and seek, among other relief, treble damages. The complaint was consolidated with a subsequently filed consolidated amended class action complaint styled as In re Broiler Chicken Grower Litigation , Case No. CIV-17-033-RJS, or the Grower Litigation . The defendants (including PPC) jointly moved to dismiss the consolidated amended complaint on September 9, 2017. The Court initially held oral argument on January 19, 2018, during which it considered and granted only certain other defendants’ motions challenging jurisdiction. Oral argument on the remaining pending motions in the Oklahoma court occurred on April 20, 2018. Rulings on the motion are pending. In addition, on March 12, 2018, the Northern District of Texas, Fort Worth Division, or the Bankruptcy Court, enjoined plaintiffs from litigating the Grower Litigation complaint as pled against PPC because allegations in the consolidated complaint violate the confirmation order relating to PPC’s bankruptcy proceedings in 2008 and 2009. Specifically, the 2009 bankruptcy confirmation order bars any claims against PPC based on conduct occurring before December 28, 2009. On March 13, 2018, PPC notified the trial court of the Bankruptcy Court’s injunction. To date, plaintiffs have not amended the consolidated complaint to comply with the Bankruptcy Court’s injunction order or the confirmation order. On March 9, 2017, a stockholder derivative action styled as DiSalvio v. Lovette, et al. , No. 2017 cv. 30207, was brought against all of PPC’s directors and its Chief Financial Officer, Fabio Sandri, in the District Court for the County of Weld in Colorado. The complaint alleges, among other things, that the named defendants breached their fiduciary duties by failing to prevent PPC and its officers from engaging in an antitrust conspiracy as alleged in the In re Broiler Chicken Antitrust Litigation , and issuing false and misleading statements as alleged in the Hogan class action litigation. On April 17, 2017, a related stockholder derivative action styled Brima v. Lovette, et al. , No. 2017 cv. 30308, was brought against all of PPC’s directors and its Chief Financial Officer in the District Court for the County of Weld in Colorado. The Brima complaint contains largely the same allegations as the DiSalvio complaint. On May 4, 2017, the plaintiffs in both the DiSalvio and Brima actions moved to (i) consolidate the two stockholder derivative cases, (ii) stay the consolidated action until the resolution of the motion to dismiss in the Hogan putative securities class action, and (iii) appoint co-lead counsel. The Court granted the motion on May 8, 2017, staying the proceedings pending resolution of the motion to dismiss in the Hogan action. In January 2018, a stockholder derivative action entitled Raul v. Nogueira de Souza, et al. , was filed in the U.S. District Court for the District of Colorado against PPC, as nominal defendant, as well as PPC’s directors, its Chief Financial Officer, and majority shareholder, JBS S.A. The complaint alleges, among other things, that (i) defendants permitted PPC to omit material information from its proxy statements filed in 2014 through 2017 related to the conduct of Wesley Mendonça Batista and Joesley Mendonça Batista, (ii) the individual defendants and JBS S.A. breached their fiduciary duties by failing to prevent PPC and its officers from engaging in an antitrust conspiracy as alleged in the Broiler Litigation and (iii) issuing false and misleading statements as alleged in the Hogan class action litigation. On May 17, 2018, the plaintiffs filed an unopposed motion to stay proceedings pending a final resolution of the Hogan class action litigation. The court-ordered deadline for the defendants to file an answer or otherwise respond to the complaint was originally set for July 30, 2018. This deadline was extended to August 31, 2018, at which time the plaintiffs filed an unopposed motion to voluntarily dismiss the complaint without prejudice. The Court granted the plaintiffs’ motion on September 4, 2018. On January 24, 2018 a stockholder derivative action styled as Sciabacucchi v. JBS S.A. et al. was brought against all of PPC’s directors, JBS S.A., JBS USA Holding and several members of the Batista family, in the Court of Chancery of the State of Delaware (the “Chancery Court”). The complaint alleges, among other things, that the named defendants breached their fiduciary duties arising out of PPC’s acquisition of Moy Park. On May 24, 2018, Employees Retirement System of the City of St. Louis filed a derivative complaint, which was virtually identical to the Sciabacucchi complaint. On July 2, 2018, the Chancery Court granted a stipulation consolidating the cases and making the first complaint (Sciabacucchi) the operative complaint. Also by stipulation, various defendants have been voluntarily dismissed from the case without prejudice. The remaining defendants are JBS S.A., JBS USA Holding, and directors Lovette, Nogueira de Souza, Tomazoni, and Molina. PPC also remains in the case as a nominal defendant. On March 15, 2019, the Chancery Court denied the non-PPC defendants’ motion to dismiss. As a result, the case proceeded to discovery, and trial was scheduled to commence in November 2020. On October 3, 2019, the parties entered into a stipulation agreeing to settle the dispute for (i) a cash payment to PPC by the non-PPC defendants of $42.5 million less any fees and expenses awarded to the plaintiffs’ counsel, as well as any applicable taxes, and (ii) corporate governance changes to be implemented by PPC. No portion of the settlement amount will be paid by PPC to the non-PPC defendants. The settlement is subject to approval by the Court of Chancery, with a hearing on the fairness of the settlement scheduled for January 28, 2020. Between August 30, 2019 and October 16, 2019, four purported class action lawsuits were filed in the U.S. District Court for the District of Maryland against PPC and a number of other poultry producers, as well as WMS (Webber, Meng, Sahl and Company) and Agri Stats, in the District of Maryland. Plaintiffs seek to represent a nationwide class of processing plant level non-supervisory production and maintenance workers (“Plant Workers”). Plaintiffs allege that the defendants conspired to fix and depress the compensation paid to Plant Workers in violation of the Sherman Act. Plaintiffs seek damages from January 1, 2009 to the present. The four cases are Jien v. Perdue Farms, Inc. , Case No. 19-cv-2521; Earnest v. Perdue Farms, Inc. et al , Case No. 19-cv-02680; Robinson v. Tyson Foods, Inc. et al , Case No. 19-cv-02960; and Avila v. Perdue Farms, Inc., et al , Case No. 19-cv-03018 (together, the “Wages Litigation”). The Earnest complaint was consolidated with the Jien complaint by a Court order on October 8, 2019. The deadline to respond to the Jien complaint is set for November 15, 2019. The Company believes it has strong defenses in each of the above litigations and intends to contest them vigorously. The Company cannot predict the outcome of these actions nor when they will be resolved. If the plaintiffs were to prevail in any of these litigations, the Company could be liable for damages, which could be material and could adversely affect its financial condition or results of operations. J&F Investigation On May 3, 2017, certain officers of J&F Investimentos S.A. (“J&F,” and together with the companies controlled by J&F, the “J&F Group”), a company organized in Brazil and an indirect controlling stockholder of the Company, including a former senior executive and former board members of the Company, entered into plea bargain agreements (collectively, the “Plea Bargain Agreements”) with the Brazilian Federal Prosecutor’s Office (Ministério Público Federal) (the “MPF”) in connection with certain misconduct by J&F and such individuals acting in their capacity as J&F executives. The details of such misconduct are set forth in separate annexes to the Plea Bargain Agreements, and include admissions of payments to politicians and political parties in Brazil during a ten-year period in exchange for receiving, or attempting to receive, favorable treatment for certain J&F Group companies in Brazil. On June 5, 2017, J&F, for itself and as the controlling shareholder of the J&F Group companies, entered into a leniency agreement (the “Leniency Agreement”) with the MPF, whereby J&F assumed responsibility for the conduct that was described in the annexes to the Plea Bargain Agreements. In connection with the Leniency Agreement, J&F has agreed to pay a fine of 10.3 billion Brazilian reais, adjusted for inflation, over a 25 -year period. Various proceedings by Brazilian governmental authorities remain pending against J&F and certain of its former or current officers to potentially invalidate the Plea Bargain Agreements and impose more severe penalties for additional alleged misconduct that were not disclosed in the annexes to the Plea Bargain Agreements. J&F is conducting an internal investigation in accordance with the terms of the Leniency Agreement, and has engaged outside advisors to assist in conducting this investigation, which is ongoing, and with which we are fully cooperating. JBS S.A. and the Company have engaged outside U.S. legal counsel to: (i) conduct an independent investigation in connection with matters disclosed in the Leniency Agreement and the Plea Bargain Agreements; and (ii) communicate with relevant U.S. authorities, including the Department of Justice regarding the factual findings of that investigation. Additionally, JBS S.A. and the Company have taken, and are continuing to take, measures to enhance their compliance programs, including to prevent and detect bribery and corruption. We cannot predict when the J&F and JBS S.A. investigations will be completed or the results of such investigations, including whether any litigation will be brought against us or the outcome or impact of any resulting litigation. We will monitor the results of the investigations. Any proceedings that require us to make substantial payments, affect our reputation or otherwise interfere with our business operations could have a material adverse effect on our business, financial condition and operating results. Any further developments in these, or other, matters involving the controlling shareholders, directors, or officers of J&F, or other parties affiliated with us, could subject JBS S.A. and its subsidiaries (including the Company) to potential fines or penalties, may materially adversely affect the public perception or reputation of JBS S.A. and its subsidiaries (including the Company) and could have a material adverse effect on JBS S.A. and its subsidiaries (including the Company). |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 29, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Pilgrim’s has been and, in some cases, continues to be a party to certain transactions with affiliated companies. Thirteen Weeks Ended Thirty-Nine Weeks Ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 (In thousands) Sales to related parties: JBS USA Food Company (a) $ 3,799 $ 4,035 $ 10,968 $ 10,043 JBS Five Rivers — — — 7,096 JBS Global (UK) Ltd. 32 — 118 — JBS Chile Ltda. — — 132 60 Combo, Mercado De Congelados 118 2 146 2 Total sales to related parties $ 3,949 $ 4,037 $ 11,364 $ 17,201 Cost of goods purchased from related parties: JBS USA Food Company (a) $ 31,270 $ 29,094 $ 94,511 $ 90,921 Seara Meats B.V. 7,297 8,341 16,187 26,018 JBS Aves Ltda. — 40 — 1,123 JBS Toledo NV 64 — 272 290 JBS Global (UK) Ltd. — — — 21 Total cost of goods purchased from related parties $ 38,631 $ 37,475 $ 110,970 $ 118,373 Expenditures paid by related parties: JBS USA Food Company (b) $ 7,919 $ 10,145 $ 26,028 $ 49,407 Seara Alimentos — — 7 — JBS Chile Ltda. — 2 6 5 Total expenditures paid by related parties $ 7,919 $ 10,147 $ 26,041 $ 49,412 Expenditures paid on behalf of related parties: JBS USA Food Company (b) $ 1,675 $ 1,938 $ 5,654 $ 6,851 JBS S.A. — — — 164 Seara International Ltd. — — — 31 Total expenditures paid on behalf of related parties $ 1,675 $ 1,938 $ 5,654 $ 7,046 September 29, 2019 December 30, 2018 (In thousands) Accounts receivable from related parties: JBS USA Food Company (a) $ 1,491 $ 1,236 Combo, Mercado de Congelados 82 79 Seara International Ltd. — 16 Total accounts receivable from related parties $ 1,573 $ 1,331 Accounts payable to related parties: JBS USA Food Company (a) $ 4,175 $ 5,121 Seara Meats B.V. 927 2,142 JBS Toledo NV 55 — JBS Chile Ltda. — 6 Total accounts payable to related parties $ 5,157 $ 7,269 (a) The Company routinely executes transactions to both purchase products from JBS USA Food Company (“JBS USA”) and sell products to them. As of September 29, 2019 , approximately $ 2.9 million of goods purchased from JBS USA were in transit and not reflected on our Condensed Consolidated Balance Sheet. (b) The Company has an agreement with JBS USA to allocate costs associated with JBS USA’s procurement of SAP licenses and maintenance services for its companies. Under this agreement, the fees associated with procuring SAP licenses and maintenance services are allocated between the Company and JBS USA in proportion to the percentage of licenses used by each company. The agreement expires on the date of expiration, or earlier termination, of the underlying SAP license agreement. The Company also has an agreement with JBS USA to allocate the costs of supporting the business operations by one consolidated corporate team, which have historically been supported by their respective corporate teams. Expenditures paid by JBS USA on behalf of the Company will be reimbursed by the Company and expenditures paid by the Company on behalf of JBS USA will be reimbursed by JBS USA. This agreement expires on December 31, 2019. |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Sep. 29, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING The Company operates in three reportable segments: U.S., U.K. and Europe, and Mexico. The Company measures segment profit as operating income. Corporate expenses are allocated to Mexico based upon various apportionment methods for specific expenditures incurred related thereto with the remaining amounts allocated to the U.S. Information on segments and a reconciliation to income before income taxes are as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 Net Sales (In thousands) U.S. $ 1,931,657 $ 1,864,169 $ 5,732,201 $ 5,604,709 U.K. and Europe 517,531 526,722 1,568,396 1,634,125 Mexico 328,782 306,713 1,045,133 1,042,161 Total net sales $ 2,777,970 $ 2,697,604 $ 8,345,730 $ 8,280,995 Thirteen Weeks Ended Thirty-Nine Weeks Ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 Operating Income (In thousands) U.S. $ 125,169 $ 74,206 $ 426,968 $ 300,960 U.K. and Europe 25,325 23,470 62,233 68,545 Mexico 37,667 (12,355 ) 115,503 102,512 Elimination 24 25 72 34 Total operating income 188,185 85,346 604,776 472,051 Interest expense, net of capitalized interest 32,028 35,334 99,184 125,901 Interest income (4,698 ) (4,241 ) (11,481 ) (10,665 ) Foreign currency transaction losses (gains) 3,027 (6,711 ) 7,923 (2,802 ) Miscellaneous, net 1,367 653 2,521 (1,781 ) Income before income taxes $ 156,461 $ 60,311 $ 506,629 $ 361,398 In addition to the net sales reported above, the U.S. segment also generated intersegment net sales of $57.2 million and $23.6 million in the thirteen weeks ended September 29, 2019 and September 30, 2018 , respectively, from transactions with the Mexico segment and intersegment net sales of $125.9 million and $95.7 million in the thirty-nine weeks ended September 29, 2019 and September 30, 2018 , respectively, from transactions with the Mexico segment. These intersegment net sales were transacted at market prices. September 29, 2019 December 30, 2018 Long-Lived Assets (a) (In thousands) U.S. $ 1,582,318 $ 1,506,217 U.K. and Europe 345,412 359,621 Mexico 283,394 295,864 Total assets $ 2,211,124 $ 2,161,702 (a) For this disclosure, we exclude financial instruments, deferred tax assets, operating lease assets and intangible assets in accordance with Accounting Standards Codification (“ASC”) 280-10-50-41, Segment Reporting. Long-lived assets, as used in ASC 280-10-50-41, implies hard assets that cannot be readily removed. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 9 Months Ended |
Sep. 29, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT On October 15, 2019, the Company acquired 100% of the equity of Tulip Limited and its subsidiaries (together, “Tulip”) from Danish Crown AmbA for £290 million , subject to customary working capital adjustments. The acquisition was funded through cash on hand. Tulip Limited, a leading, integrated prepared pork supplier, is headquartered in Warwick, U.K., operates twelve fresh and value-added facilities in that country and employs approximately 6,100 people. The acquisition solidifies Pilgrim's as a leading European food company, creating one of the largest integrated prepared foods businesses in the U.K. |
DESCRIPTION OF BUSINESS AND B_2
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidated Financial Statements | Condensed Consolidated Financial Statements The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal and recurring adjustments unless otherwise disclosed) considered necessary for a fair presentation have been included. Operating results for the thirteen and thirty-nine weeks ended September 29, 2019 are not necessarily indicative of the results that may be expected for the year ending December 29, 2019 . For further information, refer to the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 30, 2018 . The Company operates on a 52/53-week fiscal year that ends on the Sunday falling on or before December 31. The reader should assume any reference we make to a particular year (for example, 2019 ) in the notes to these Condensed Consolidated Financial Statements applies to our fiscal year and not the calendar year. The Condensed Consolidated Financial Statements include the accounts of the Company and its majority-owned subsidiaries. We eliminate all significant affiliate accounts and transactions upon consolidation. The Condensed Consolidated Financial Statements have been prepared in conformity with U.S. GAAP using management’s best estimates and judgments. These estimates and judgments affect the reported amounts of assets and liabilities and disclosure of the contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ materially from these estimates and judgments. Significant estimates made by the Company include the allowance for doubtful accounts, reserves related to inventory obsolescence or valuation, useful lives of long-lived assets, goodwill, valuation of deferred tax assets, insurance accruals, valuation of pension and other postretirement benefits obligations, income tax accruals, certain derivative positions and valuations of acquired businesses. |
Foreign Currency Transactions and Translations | The functional currency of the Company's U.S. and Mexico operations and certain holding-company subsidiaries in Luxembourg, the U.K. and Ireland is the U.S. dollar. The functional currency of its U.K. operations is the British pound. The functional currency of the Company's operations in France and the Netherlands is the euro. For foreign currency-denominated entities other than the Company's Mexico operations, translation from local currencies into U.S. dollars is performed for most assets and liabilities using the exchange rates in effect as of the balance sheet date. Income and expense accounts are remeasured using average exchange rates for the period. Adjustments resulting from translation of these financial records are reflected as a separate component of Accumulated other comprehensive loss in the Condensed Consolidated Balance Sheets. For the Company's Mexico operations, remeasurement from the Mexican peso to U.S. dollars is performed for monetary assets and liabilities using the exchange rate in effect as of the balance sheet date. Remeasurement is performed for non-monetary assets using the historical exchange rate in effect on the date of each asset’s acquisition. Income and expense accounts are remeasured using average exchange rates for the period. Net adjustments resulting from remeasurement of these financial records are reflected in Foreign currency transaction losses (gains) in the Condensed Consolidated Statements of Income. |
Leases | Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in Operating lease assets, net, Accrued expenses and other current liabilities, and Noncurrent operating lease liability, less current maturities, in our Condensed Consolidated Balance Sheet. Finance leases are included in Property, plant and equipment, net, Current maturities of long-term debt, and Long-term debt, less current maturities, in our Condensed Consolidated Balance Sheet. Beginning with the adoption of Accounting Standards Update (“ASU”) 2016-02 on December 31, 2018, operating lease assets and operating lease liabilities are initially recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit interest rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease asset also includes any lease payments made, including upfront costs and prepayments, and excludes lease incentives and initial direct costs incurred. Our lease terms may include options to extend or terminate a lease when it is reasonably certain that we will exercise that option. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term with a corresponding reduction to the operating lease asset. |
Restricted Cash | Restricted Cash The Company is required to maintain cash balances with a broker as collateral for exchange traded futures contracts. These balances are classified as restricted cash as they are not available for use by the Company to fund daily operations. The balance of restricted cash may also include investments in U.S. Treasury Bills that qualify as cash equivalents, as required by the broker, to offset the obligation to return cash collateral. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted as of September 29, 2019 In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases (Topic 842) , along with several updates, which, in an effort to increase transparency and comparability among organizations utilizing leasing, requires an entity that is a lessee to recognize the assets and liabilities arising from operating leases on the balance sheet. This guidance also requires disclosures about the amount, timing and uncertainty of cash flows arising from leases. In transition, the entity may elect to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach or the beginning of the period of adoption using a cumulative-effect adjustment approach. We adopted the new standard on December 31, 2018 and recognized and measured leases at the beginning of the period of adoption. We elected the package of practical expedients available under the transition guidance which, among other things, allows the carry-forward of historical lease classification. The Company also elected the practical expedient allowing use of hindsight in assessing the lease term. We made an accounting policy election to not apply the new guidance to leases with a term of 12 months or less and will recognize those payments in the Condensed Consolidated Statement of Income on a straight-line basis over the lease term. We implemented a system solution for administering our leases and facilitating compliance with the new guidance. Adoption of the standard had a material impact on our Condensed Consolidated Balance Sheet as a result of the increase in assets and liabilities from recognition of operating lease assets and operating lease liabilities. However, the standard did not have a material impact on our Condensed Consolidated Statement of Income. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , an accounting standard update that simplifies the application of hedge accounting guidance in current GAAP and improves the reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. Among the simplification updates, the standard eliminates the requirement in current GAAP to separately recognize periodic hedge ineffectiveness. Mismatches between the changes in value of the hedged item and hedging instrument may still occur but they will no longer be separately reported. The standard requires the presentation of the earnings effect of the hedging instrument in the same income statement line item in which the earnings effect of the hedged item is reported. The standard is effective for annual and interim reporting periods beginning after December 15, 2018, but early adoption is permitted. We have adopted this standard as of December 31, 2018. The adoption of this guidance did not have a material impact on our financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , an accounting standard update that allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act. The Company will not reclassify the stranded tax effects associated with the U.S. Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. We adopted this standard as of December 31, 2018. The adoption of this guidance did not have a material impact on our financial statements. In July 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting , an accounting standard update to improve non-employee share-based payment accounting. The accounting standard update more closely aligns the accounting for employee and non-employee share based payments. The accounting standards update is effective as of the beginning of our 2019 calendar year with early adoption permitted. We adopted this standard as of December 31, 2018. The adoption of this guidance did not have a material impact on our financial statements. Recent Accounting Pronouncements Not Yet Adopted as of September 29, 2019 In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which, in an effort to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments, replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables and any other financial assets not excluded from the scope that have the contractual right to receive cash. We will adopt the provisions of the new guidance effective December 30, 2019, the beginning of our 2020 fiscal year. We are currently evaluating the impact of the new guidance on our financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement , new accounting guidance to improve the effectiveness of disclosures related to fair value measurements. The new guidance removes certain disclosure requirements related to transfers between Level 1 and Level 2 of the fair value hierarchy along with the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements. Additions to the disclosure requirements include more quantitative information related to significant unobservable inputs used in Level 3 fair value measurements and gains and losses included in other comprehensive income. We will adopt the provisions of the new guidance effective December 30, 2019, the beginning of our 2020 fiscal year. We are currently evaluating the impact of the new guidance on our financial statements. In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans , new accounting guidance to improve the effectiveness of disclosures related to defined benefit plans by eliminating certain required disclosures, clarifying existing disclosures, and adding new disclosures. Changes include removing disclosures related to the amounts in accumulated other comprehensive income expected to be recognized in the next fiscal year, adding narrative disclosure of the reasons for significant gains and losses related to changes in the defined benefit obligation, and clarifying the disclosures required for plans with projected and accumulated benefit obligations in excess of plan assets. We will adopt the provisions of the new guidance effective December 30, 2019, the beginning of our 2020 fiscal year. We are currently evaluating the impact of the new guidance on our financial statements. |
DESCRIPTION OF BUSINESS AND B_3
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table reconciles cash, cash equivalents and restricted cash as reported in the Condensed Consolidated Balance Sheets to the total of the same amounts shown in the Condensed Consolidated Statements of Cash Flows: September 29, 2019 December 30, 2018 (In thousands) Cash and cash equivalents $ 598,054 $ 338,386 Restricted cash 26,950 23,192 Total cash, cash equivalents and restricted cash shown in the $ 625,004 $ 361,578 |
Schedule of Restricted Cash and Cash Equivalents | The following table reconciles cash, cash equivalents and restricted cash as reported in the Condensed Consolidated Balance Sheets to the total of the same amounts shown in the Condensed Consolidated Statements of Cash Flows: September 29, 2019 December 30, 2018 (In thousands) Cash and cash equivalents $ 598,054 $ 338,386 Restricted cash 26,950 23,192 Total cash, cash equivalents and restricted cash shown in the $ 625,004 $ 361,578 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured on a Recurring Basis | The following items were measured at fair value on a recurring basis: September 29, 2019 Level 1 Total (In thousands) Fair value assets: Commodity futures instruments $ 6,250 $ 6,250 Commodity options instruments 615 615 Foreign currency instruments 913 913 Fair value liabilities: Commodity futures instruments (6,800 ) (6,800 ) Commodity options instruments (7,002 ) (7,002 ) Foreign currency instruments (548 ) (548 ) December 30, 2018 Level 1 Total (In thousands) Fair value assets: Commodity futures instruments $ 2,244 $ 2,244 Foreign currency instruments 1,311 1,311 Fair value liabilities: Commodity futures instruments (1,479 ) (1,479 ) Commodity option instruments (3,312 ) (3,312 ) Foreign currency instruments (6,649 ) (6,649 ) |
Schedule of Fair Value and Carrying Value of Debt Obligations | The carrying amounts and estimated fair values of our fixed-rate debt obligation recorded in the Condensed Consolidated Balance Sheets consisted of the following: September 29, 2019 December 30, 2018 Carrying Fair Carrying Fair (In thousands) Fixed-rate senior notes payable at 5.75%, at Level 1 inputs $ (1,002,195 ) $ (1,020,000 ) $ (1,002,497 ) $ (937,300 ) Fixed-rate senior notes payable at 5.875%, at Level 1 inputs (844,254 ) (905,250 ) (843,717 ) (768,188 ) Secured loans, at Level 3 inputs (1,334 ) (1,316 ) (319 ) (319 ) |
TRADE ACCOUNTS AND OTHER RECE_2
TRADE ACCOUNTS AND OTHER RECEIVABLES (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Schedule of Trade Accounts and Other Receivables, and Allowance for Doubtful Accounts | Trade accounts and other receivables, less allowance for doubtful accounts, consisted of the following: September 29, 2019 December 30, 2018 (In thousands) Trade accounts receivable $ 549,913 $ 533,645 Notes receivable - current 4,205 4,630 Other receivables 54,839 31,331 Receivables, gross 608,957 569,606 Allowance for doubtful accounts (6,919 ) (8,057 ) Receivables, net $ 602,038 $ 561,549 Account receivable from related parties (a) $ 1,573 $ 1,331 (a) Additional information regarding accounts receivable from related parties is included in “Note 19. Related Party Transactions.” Activity in the allowance for doubtful accounts for the thirty-nine weeks ended September 29, 2019 was as follows (in thousands): Balance, beginning of period $ (8,057 ) Provision charged to operating results (941 ) Account write-offs and recoveries 1,838 Effect of exchange rate 241 Balance, end of period $ (6,919 ) |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following: September 29, 2019 December 30, 2018 (In thousands) Raw materials and work-in-process $ 741,975 $ 747,801 Finished products 420,096 317,410 Operating supplies 39,302 43,825 Maintenance materials and parts 59,989 50,483 Total inventories $ 1,261,362 $ 1,159,519 |
INVESTMENTS IN SECURITIES (Tabl
INVESTMENTS IN SECURITIES (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-For-Sale Securities | The following table summarizes our investments in available-for-sale securities: September 29, 2019 December 30, 2018 Amortized Cost Fair Amortized Cost Fair (In thousands) Cash equivalents: Fixed income securities $ 276,203 $ 276,203 $ 135,286 $ 135,286 Other 89,049 89,049 67,474 67,474 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Outstanding Derivative Instruments and Cash Collateral | Information regarding the Company’s outstanding derivative instruments and collateral posted with brokers is included in the following table: September 29, 2019 December 30, 2018 (Fair values in thousands) Fair values: Commodity derivative assets $ 6,865 $ 2,263 Commodity derivative liabilities (13,802 ) (4,791 ) Foreign currency derivative assets 913 1,311 Foreign currency derivative liabilities (548 ) (6,649 ) Collateral posted with brokers (a) 26,950 23,192 Derivatives coverage (b) : Corn 9.0 % 6.0 % Soybean meal 32.0 % 6.0 % Period through which stated percent of needs are covered: Corn December 2020 March 2020 Soybean meal May 2020 December 2019 (a) Collateral posted with brokers consists primarily of cash, short term treasury bills, or other cash equivalents. (b) Derivatives coverage is the percent of anticipated commodity needs covered by outstanding derivative instruments through a specified date. |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following tables present the components of the gain or loss on derivatives that qualify as cash flow hedges: Gain (Loss) Recognized in Other Comprehensive Loss on Derivative Thirteen Weeks Ended Thirty-Nine Weeks Ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 (In thousands) Foreign currency derivatives $ (1,644 ) $ 130 $ (1,257 ) $ 33 Total $ (1,644 ) $ 130 $ (1,257 ) $ 33 Loss (Gain) Reclassified from AOCI into Income Thirteen Weeks Ended Thirty-Nine Weeks Ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 (In thousands) Foreign currency derivatives $ 247 $ (143 ) $ 74 $ 329 Total $ 247 $ (143 ) $ 74 $ 329 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The activity in goodwill by segment for the thirty-nine weeks ended September 29, 2019 was as follows: December 30, 2018 Currency Translation September 29, 2019 (In thousands) U.S. $ 41,936 $ — $ 41,936 U.K. and Europe 782,207 (24,984 ) 757,223 Mexico 125,607 — 125,607 Total $ 949,750 $ (24,984 ) $ 924,766 |
Finite-Lived Intangible Assets | Identified intangible assets consisted of the following: December 30, 2018 Amortization Currency Translation September 29, 2019 (In thousands) Carrying amount: Trade names $ 78,343 $ — $ — $ 78,343 Customer relationships 247,706 — (2,782 ) 244,924 Non-compete agreements 320 — — 320 Trade names not subject to amortization 380,067 — (11,830 ) 368,237 Accumulated amortization: Trade names (43,552 ) (1,474 ) — (45,026 ) Customer relationships (98,441 ) (15,447 ) 1,144 (112,744 ) Non-compete agreements (315 ) (6 ) — (321 ) Total identified intangible assets $ 564,128 $ (16,927 ) $ (13,468 ) $ 533,733 Intangible assets are amortized over the estimated useful lives of the assets as follows: Customer relationships 5-16 years Trade names 3-20 years Non-compete agreements 3 years |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The following table presents components of lease expense. Operating lease cost, finance lease amortization and finance lease interest are respectively included in Cost of sales, Selling, general and administrative expense and Interest expense, net of capitalized interest in the Condensed Consolidated Statements of Income. Thirteen Weeks Ended Thirty-Nine Weeks Ended September 29, 2019 September 29, 2019 (In thousands) Operating lease cost (a) $ 25,885 $ 77,352 Amortization of finance lease assets 64 111 Interest on finance leases 15 22 Short-term and variable lease cost 13,826 39,936 Net lease cost $ 39,790 $ 117,421 (a) Sublease income is immaterial and not included in operating lease costs. Supplemental cash flow information related to leases is as follows (in thousands): Thirty-Nine Weeks Ended September 29, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 74,988 Operating cash flow from finance leases 22 Financing cash flows from finance leases 111 Operating lease assets obtained in exchange for operating lease liabilities $ 24,290 Finance lease assets obtained in exchange for finance lease liabilities 1,435 |
Balance Sheet Information Related to Leases | The weighted-average remaining lease term and discount rate for lease liabilities included in our Condensed Consolidated Balance Sheet are as follows: September 29, 2019 Weighted-average remaining lease term (years): Operating leases 5.82 Finance leases 4.54 Weighted-average discount rate: Operating leases 4.86 % Finance leases 5.31 % Lease liabilities as of September 29, 2019 are included in our Condensed Consolidated Balance Sheet as follows (in thousands): Operating Leases Finance Leases Accrued expenses and other current liabilities $ 70,113 $ — Current maturities of long-term debt — 352 Noncurrent operating lease liability, less current maturities 231,018 — Long-term debt, less current maturities — 1,149 Total lease liabilities $ 301,131 $ 1,501 |
Maturities of Finance Lease Liability | Future minimum lease payments under noncancellable leases at September 29, 2019 are as follows (in thousands): Operating Leases Finance Leases For the fiscal years ending December: Year 1 $ 82,269 $ 423 Year 2 64,688 343 Year 3 55,830 326 Year 4 46,138 325 Year 5 35,043 271 Thereafter 62,278 — Total future minimum lease payments 346,246 1,688 Less: imputed interest (45,115 ) (187 ) Present value of lease liabilities $ 301,131 $ 1,501 |
Maturities of Operating Lease Liability | Future minimum lease payments under noncancellable leases at September 29, 2019 are as follows (in thousands): Operating Leases Finance Leases For the fiscal years ending December: Year 1 $ 82,269 $ 423 Year 2 64,688 343 Year 3 55,830 326 Year 4 46,138 325 Year 5 35,043 271 Thereafter 62,278 — Total future minimum lease payments 346,246 1,688 Less: imputed interest (45,115 ) (187 ) Present value of lease liabilities $ 301,131 $ 1,501 |
Maturities of Capital Lease Liability | Future minimum lease payments under capital and noncancellable operating leases with terms exceeding one year at December 30, 2018 were as follows (in thousands): Capital Lease Obligations Noncancellable Operating Lease Obligations For the fiscal years ending December: Year 1 $ 2,971 $ 84,220 Year 2 1,033 63,196 Year 3 36 53,908 Year 4 3 45,557 Year 5 — 36,136 Thereafter — 66,637 Net minimum lease payments 4,043 $ 349,654 Amount representing interest (337 ) Present value of net minimum lease payments $ 3,706 |
Noncancellable Operating Lease Obligations | Future minimum lease payments under capital and noncancellable operating leases with terms exceeding one year at December 30, 2018 were as follows (in thousands): Capital Lease Obligations Noncancellable Operating Lease Obligations For the fiscal years ending December: Year 1 $ 2,971 $ 84,220 Year 2 1,033 63,196 Year 3 36 53,908 Year 4 3 45,557 Year 5 — 36,136 Thereafter — 66,637 Net minimum lease payments 4,043 $ 349,654 Amount representing interest (337 ) Present value of net minimum lease payments $ 3,706 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment (“PP&E”), net consisted of the following: September 29, 2019 December 30, 2018 (In thousands) Land $ 195,746 $ 196,769 Buildings 1,714,404 1,697,703 Machinery and equipment 2,660,556 2,618,213 Autos and trucks 62,596 59,195 Finance leases 1,435 — Construction-in-progress 324,434 269,166 PP&E, gross 4,959,171 4,841,046 Accumulated depreciation and amortization (2,748,047 ) (2,679,344 ) PP&E, net $ 2,211,124 $ 2,161,702 |
CURRENT LIABILITIES (Tables)
CURRENT LIABILITIES (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Current Liabilities | Current liabilities, other than current notes payable to banks, income taxes and current maturities of long-term debt, consisted of the following components: September 29, 2019 December 30, 2018 (In thousands) Accounts payable: Trade accounts $ 753,573 $ 744,105 Book overdrafts 74,966 69,475 Other payables 17,661 16,479 Total accounts payable 846,200 830,059 Accounts payable to related parties (a) 5,157 7,269 Revenue contract liability (b) 39,743 33,328 Accrued expenses and other current liabilities: Compensation and benefits 164,261 149,507 Interest and debt-related fees 29,079 33,596 Insurance and self-insured claims 77,680 80,990 Current maturities of operating lease liabilities 70,113 — Derivative liabilities: Commodity futures 6,800 1,479 Commodity options 7,002 3,312 Foreign currency derivatives 548 6,649 Other accrued expenses 138,764 111,408 Total accrued expenses and other current liabilities 494,247 386,941 $ 1,385,347 $ 1,257,597 (a) Additional information regarding accounts payable to related parties is included in “Note 19. Related Party Transactions.” (b) Additional information regarding revenue contract liabilities is included in “Note 13. Revenue Recognition.” |
LONG-TERM DEBT AND OTHER BORR_2
LONG-TERM DEBT AND OTHER BORROWING ARRANGEMENTS (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt and Other Borrowing Arrangements | Long-term debt and other borrowing arrangements, including current notes payable to banks, consisted of the following components: Maturity September 29, 2019 December 30, 2018 (In thousands) Long-term debt and other long-term borrowing arrangements: Senior notes payable, net of premium and discount at 5.75% 2025 $ 1,002,195 $ 1,002,497 Senior notes payable, net of discount at 5.875% 2027 844,254 843,717 U.S. Credit Facility (defined below): Term note payable at 3.35% 2023 481,250 500,000 Revolving note payable at 5.25% 2023 — — Moy Park France Invoice Discounting Revolver with payables at 2019 — 2,277 Moy Park Credit Agricole Bank Overdraft with notes payable at On Demand — 88 Moy Park Bank of Ireland Revolving Facility with notes payable at 2023 — — Mexico Credit Facility (defined below) with notes payable at 2023 — — Secured loans with payables at weighted average of 3.34% Various 1,334 319 Finance lease obligations Various 1,501 3,707 Long-term debt 2,330,534 2,352,605 Less: Current maturities of long-term debt (26,636 ) (30,405 ) Long-term debt, less current maturities 2,303,898 2,322,200 Less: Capitalized financing costs (24,027 ) (27,010 ) Long-term debt, less current maturities, net of capitalized financing costs: $ 2,279,871 $ 2,295,190 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregated Revenue | Revenue has been disaggregated into the categories below to show how economic factors affect the nature, amount, timing and uncertainty of revenue and cash flows. Thirteen Weeks Ended September 29, 2019 Thirty-Nine Weeks Ended September 29, 2019 Domestic Export Net Sales Domestic Export Net Sales (In thousands) U.S. $ 1,857,859 $ 73,797 $ 1,931,656 $ 5,523,497 $ 208,704 $ 5,732,201 U.K. and Europe 451,347 66,185 517,532 1,372,028 196,368 1,568,396 Mexico 328,782 — 328,782 1,045,133 — 1,045,133 Net Sales $ 2,637,988 $ 139,982 $ 2,777,970 $ 7,940,658 $ 405,072 $ 8,345,730 Thirteen Weeks Ended September 30, 2018 Thirty-Nine Weeks Ended September 30, 2018 Domestic Export Net Sales Domestic Export Net Sales (In thousands) U.S. $ 1,800,789 $ 63,380 $ 1,864,169 $ 5,411,391 $ 193,318 $ 5,604,709 U.K. and Europe 456,187 70,535 526,722 1,398,494 235,631 1,634,125 Mexico 306,713 — 306,713 1,042,161 — 1,042,161 Net Sales $ 2,563,689 $ 133,915 $ 2,697,604 $ 7,852,046 $ 428,949 $ 8,280,995 |
Contract Balances | Changes in the revenue contract liability balances during the thirty-nine weeks ended September 29, 2019 are as follows (in thousands): Balance, beginning of period $ 33,328 Revenue recognized (34,339 ) Cash received, excluding amounts recognized as revenue during the period 40,754 Balance, end of period $ 39,743 |
PENSION AND OTHER POSTRETIREM_2
PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Defined Benefit Plan [Abstract] | |
Schedule of Defined Benefit Plan Obligations and Assets | The change in benefit obligation, change in fair value of plan assets, funded status and amounts recognized in the Condensed Consolidated Balance Sheets for the defined benefit plans were as follows: Thirty-Nine Weeks Ended Thirty-Nine Weeks Ended Pension Benefits Other Benefits Pension Benefits Other Benefits Change in projected benefit obligation: (In thousands) Projected benefit obligation, beginning of period $ 157,619 $ 1,462 $ 178,247 $ 1,603 Interest cost 4,402 39 4,097 35 Actuarial losses (gains) 20,726 130 (9,787 ) (67 ) Benefits paid (4,564 ) (111 ) (6,857 ) (111 ) Curtailments and settlements (8,783 ) — — — Projected benefit obligation, end of period $ 169,400 $ 1,520 $ 165,700 $ 1,460 Thirty-Nine Weeks Ended Thirty-Nine Weeks Ended Pension Benefits Other Benefits Pension Benefits Other Benefits Change in plan assets: (In thousands) Fair value of plan assets, beginning of period $ 102,414 $ — $ 112,570 $ — Actual return on plan assets 12,637 — 1,853 — Contributions by employer 6,096 111 9,474 111 Benefits paid (4,564 ) (111 ) (6,857 ) (111 ) Curtailments and settlements (8,783 ) — — — Fair value of plan assets, end of period $ 107,800 $ — $ 117,040 $ — September 29, 2019 December 30, 2018 Pension Benefits Other Benefits Pension Benefits Other Benefits Funded status: (In thousands) Unfunded benefit obligation, end of period $ (61,600 ) $ (1,520 ) $ (55,205 ) $ (1,462 ) September 29, 2019 December 30, 2018 Pension Benefits Other Benefits Pension Benefits Other Benefits Amounts recognized in the Condensed Consolidated Balance Sheets at end of period: (In thousands) Current liability $ (8,117 ) $ (111 ) $ (8,267 ) $ (149 ) Long-term liability (53,483 ) (1,409 ) (46,938 ) (1,313 ) Recognized liability $ (61,600 ) $ (1,520 ) $ (55,205 ) $ (1,462 ) September 29, 2019 December 30, 2018 Pension Benefits Other Benefits Pension Benefits Other Benefits Amounts recognized in accumulated other comprehensive loss at end of period: (In thousands) Net actuarial loss (gain) $ 62,431 $ 95 $ 54,343 $ (34 ) |
Schedule of Net Defined Benefit Pension and Other Postretirement Costs | Net defined benefit pension and other postretirement costs included the following components: Thirteen Weeks Ended September 29, 2019 Thirteen Weeks Ended September 30, 2018 Thirty-Nine Weeks Ended September 29, 2019 Thirty-Nine Weeks Ended September 30, 2018 Pension Benefits Other Benefits Pension Benefits Other Benefits Pension Benefits Other Benefits Pension Benefits Other Benefits (In thousands) Interest cost $ 1,468 $ 13 $ 1,366 $ 12 $ 4,402 $ 39 $ 4,097 $ 35 Estimated return on plan assets (1,349 ) — (1,516 ) — (4,047 ) — (4,549 ) — Settlement loss 1,134 — — — 3,064 — — — Amortization of net loss 328 — 300 — 984 — 902 — Net costs $ 1,581 $ 13 $ 150 $ 12 $ 4,403 $ 39 $ 450 $ 35 |
Schedule of Economic Assumptions, and Impact of Change in Discount Rate on Benefit Obligation | The sensitivity of the projected benefit obligation for pension benefits to changes in the discount rate is set out below. The impact of a change in the discount rate of 0.25% on the projected benefit obligation for other benefits is less than $1,000 . This sensitivity analysis is based on changing one assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to variations in significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as for calculating the liability recognized in the Condensed Consolidated Balance Sheets. Increase in Discount Rate of 0.25% Decrease in Discount Rate of 0.25% (In thousands) Impact on projected benefit obligation for pension benefits $ (4,218 ) $ 4,430 The weighted average assumptions used in determining pension and other postretirement plan information were as follows: September 29, 2019 December 30, 2018 Pension Benefits Other Benefits Pension Benefits Other Benefits Assumptions used to measure benefit obligation at end of period: Discount rate 3.23 % 2.81 % 4.40 % 4.07 % Thirty-Nine Weeks Ended Thirty-Nine Weeks Ended Pension Benefits Other Benefits Pension Benefits Other Benefits Assumptions used to measure net pension and other postretirement cost: Discount rate 4.40 % 4.07 % 3.69 % 3.39 % Expected return on plan assets 5.50 % N/A 5.50 % N/A |
Schedule of Plan Asset Allocations | The following table reflects the pension plans’ actual asset allocations: September 29, 2019 December 30, 2018 Cash and cash equivalents 1 % — % Pooled separate accounts for the Union Plan (a) : Equity securities 4 % 4 % Fixed income securities 5 % 5 % Pooled separate accounts for the GK Pension Plan (a) : Equity securities 50 % 45 % Fixed income securities 35 % 41 % Real estate 5 % 5 % Total assets 100 % 100 % (a) Pooled separate accounts (“PSAs”) are one of the most common types of alternative vehicles in which benefit plans invest. These investments are pooled funds that look like mutual funds, but they are not registered with the SEC. Often times, they will be invested in mutual funds, real estate trusts or other marketable securities, but the unit price generally will be different from the value of the underlying securities because the fund may also hold cash for liquidity purposes, and the fees imposed by the fund are deducted from the fund value rather than charged separately to investors. Some PSAs have no restrictions as to their investment strategy and can invest in riskier investments, such as derivatives, hedge funds, private equity funds, or similar investments. |
Schedule of Fair Value Measurements of Plan Assets | The fair value measurements of plan assets fell into the following levels of the fair value hierarchy as of September 29, 2019 and December 30, 2018 : September 29, 2019 December 30, 2018 Level 1 (a) Level 2 (b) Level 3 (c) Total Level 1 (a) Level 2 (b) Level 3 (c) Total (In thousands) Cash and cash equivalents $ 1,117 $ — $ — $ 1,117 $ 110 $ — $ — $ 110 PSAs for the Union Plan: Large U.S. equity funds (d) — 2,797 — 2,797 — 2,491 — 2,491 Small/Mid U.S. equity funds (e) — 345 — 345 — 292 — 292 International equity funds (f) — 1,705 — 1,705 — 1,489 — 1,489 Fixed income funds (g) — 4,917 — 4,917 — 4,763 — 4,763 PSAs for the GK Pension Plan: Large U.S. equity funds (d) — 18,912 — 18,912 — 17,351 — 17,351 Small U.S. equity funds (e) — 11,607 — 11,607 — 5,880 — 5,880 International equity funds (f) — 23,653 — 23,653 — 22,516 — 22,516 Fixed income funds (g) — 37,208 — 37,208 — 42,217 — 42,217 Real estate (h) — 5,539 — 5,539 — 5,305 — 5,305 Total assets $ 1,117 $ 106,683 $ — $ 107,800 $ 110 $ 102,304 $ — $ 102,414 (a) Unadjusted quoted prices in active markets for identical assets are used to determine fair value. (b) Quoted prices in active markets for similar assets and inputs that are observable for the asset are used to determine fair value. (c) Unobservable inputs, such as discounted cash flow models or valuations, are used to determine fair value. (d) This category is comprised of investment options that invest in stocks, or shares of ownership, in large, well-established U.S. companies. These investment options typically carry more risk than fixed income options but have the potential for higher returns over longer time periods. (e) This category is generally comprised of investment options that invest in stocks, or shares of ownership, in small to medium-sized U.S. companies. These investment options typically carry more risk than larger U.S. equity investment options but have the potential for higher returns. (f) This category is comprised of investment options that invest in stocks, or shares of ownership, in companies with their principal place of business or office outside of the U.S. (g) This category is comprised of investment options that invest in bonds, or debt of a company or government entity (including U.S. and non-U.S. entities). These investment options typically carry more risk than short-term fixed income investment options, but less overall risk than equities. (h) This category is comprised of investment options that invest in real estate investment trusts or private equity pools that own real estate. These long-term investments are primarily in office buildings, industrial parks, apartments or retail complexes. These investment options typically carry more risk, including liquidity risk, than fixed income investment options. |
Schedule of Benefit Payments | The following table reflects the benefits as of September 29, 2019 expected to be paid through 2028 from the Company's pension and other postretirement plans. Because its pension plans are primarily funded plans, the anticipated benefits with respect to these plans will come primarily from the trusts established for these plans. Because the Company's other postretirement plans are unfunded, the anticipated benefits with respect to these plans will come from its own assets. Pension Benefits Other Benefits (In thousands) 2019 (remaining) $ 4,493 $ 37 2020 11,526 147 2021 11,200 145 2022 10,891 141 2023 10,627 137 2024-2028 48,429 589 Total $ 97,166 $ 1,196 |
Schedule of Unrecognized Benefit Amounts | The amounts in accumulated other comprehensive loss that were not recognized as components of net periodic benefits cost and the changes in those amounts are as follows: Thirty-Nine Weeks Ended Thirty-Nine Weeks Ended Pension Benefits Other Benefits Pension Benefits Other Benefits (In thousands) Net actuarial loss (gain), beginning of period $ 54,343 $ (34 ) $ 54,235 $ 35 Amortization (984 ) — (902 ) — Curtailment and settlement adjustments (3,064 ) — — — Actuarial loss (gain) 20,726 129 (9,787 ) (67 ) Asset loss (gain) (8,590 ) — 2,695 — Net actuarial loss (gain), end of period $ 62,431 $ 95 $ 46,241 $ (32 ) |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Loss | The following tables provide information regarding the changes in accumulated other comprehensive loss: Thirty-Nine Weeks Ended September 29, 2019 (a) Losses Related to Foreign Currency Translation Unrealized Losses on Derivative Financial Instruments Classified as Cash Flow Hedges Losses Related to Pension and Other Postretirement Benefits Unrealized Holding Gains on Available-for-Sale Securities Total (In thousands) Balance, beginning of period $ (55,770 ) $ (683 ) $ (71,463 ) $ 82 $ (127,834 ) Other comprehensive income (loss) before (50,824 ) (1,257 ) (6,962 ) 383 (58,660 ) Amounts reclassified from accumulated other — 74 745 (353 ) 466 Currency translation — (12 ) — — (12 ) Net current period other comprehensive income (loss) (50,824 ) (1,195 ) (6,217 ) 30 (58,206 ) Balance, end of period $ (106,594 ) $ (1,878 ) $ (77,680 ) $ 112 $ (186,040 ) Thirty-Nine Weeks Ended September 30, 2018 (a) Losses Related to Foreign Currency Translation Unrealized Losses on Derivative Financial Instruments Classified as Cash Flow Hedges Losses Related to Pension and Other Postretirement Benefits Unrealized Holding Gains on Available-for-Sale Securities Total (In thousands) Balance, beginning of period $ 42,081 $ (1,848 ) $ (71,434 ) $ 61 $ (31,140 ) Other comprehensive income (loss) before (58,892 ) 33 5,415 985 (52,459 ) Amounts reclassified from accumulated other — 329 683 (956 ) 56 Currency translation — (5 ) — — (5 ) Net current period other comprehensive income (loss) (58,892 ) 357 6,098 29 (52,408 ) Balance, end of period $ (16,811 ) $ (1,491 ) $ (65,336 ) $ 90 $ (83,548 ) (a) All amounts are net of tax. Amounts in parentheses indicate debits to accumulated other comprehensive income (loss). |
Schedule of Reclassification from Accumulated Other Comprehensive Loss | Amounts Reclassified from Accumulated Other Comprehensive Loss (a) Details about Accumulated Other Comprehensive Loss Components Thirty-Nine Weeks Ended Thirty-Nine Weeks Ended Affected Line Item in the Condensed Consolidated Statements of Income (In thousands) Realized loss on derivative financial $ (74 ) $ (329 ) Cost of sales Realized gain on sale of securities 466 1,263 Interest income Amortization of defined benefit pension and other Union employees pension plan (b)(d) (54 ) (36 ) Miscellaneous, net Legacy GK plans-production employees (c)(d) (290 ) (270 ) Miscellaneous, net Legacy GK plans-administrative employees (c)(d) (640 ) (596 ) Miscellaneous, net Total before tax (592 ) 32 Tax benefit (expense) 126 (88 ) Total reclassification for the period $ (466 ) $ (56 ) (a) Amounts in parentheses represent debits to results of operations. (b) The Company sponsors the Union Plan, a qualified defined benefit pension plan covering certain locations or work groups with collective bargaining agreements. (c) The Company sponsors the GK Pension Plan, a qualified defined benefit pension plan covering certain eligible U.S. employees who were employed at locations that the Company purchased through its acquisition of Gold Kist in 2007, the SERP Plan, a nonqualified defined benefit retirement plan covering certain former Gold Kist executives, the Directors’ Emeriti Plan, a nonqualified defined benefit retirement plan covering certain former Gold Kist directors and the Retiree Life Plan, a defined benefit postretirement life insurance plan covering certain retired Gold Kist employees (collectively, the “Legacy GK Plans”). (d) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See “Note 14. Pension and Other Postretirement Benefits” to the Condensed Consolidated Financial Statements. |
INCENTIVE COMPENSATION (Tables)
INCENTIVE COMPENSATION (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
INCENTIVE COMPENSATION [Abstract] | |
Schedule of Awards | The following LTIP awards were outstanding during the thirty-nine weeks ended September 29, 2019 : Award Type Awards Granted Grant Date Intended Settlement Method Grant Date Fair Value Milestone Date Fair Value per Award Vesting Condition Vesting Date Awards Forfeited to Date RSU 410,000 2/14/2018 Stock $ 25.59 NA Service 1/1/2019 — RSU 163,764 3/1/2018 Stock 24.93 NA Service (a) 45,755 RSU 250,351 3/1/2018 Stock 24.93 NA Performance / Service (b) 151,229 RSU 33,174 3/1/2018 Cash 24.93 $ 31.31 Performance / Service (c) — RSU 8,358 5/10/2018 Stock 21.54 NA Service (d) — RSU 2,786 5/10/2018 Cash 21.54 26.86 Service 5/1/2019 — RSU 262,500 12/18/2018 Stock 16.06 NA Service 7/1/2019 — RSU 396,763 1/7/2019 Stock 16.47 NA Performance / Service (e) 92,075 RSU 109,654 1/7/2019 Cash 16.47 31.31 Performance / Service (f) — RSU 200,000 4/30/2019 Stock 26.91 NA Service 7/1/2020 — RSU 11,170 5/24/2019 Stock 27.86 NA Service (d) — (a) The restricted stock units vest in ratable tranches on December 31, 2018, December 31, 2019 and December 31, 2020. Expected compensation cost related to these units totals $2.9 million based on a closing stock price for the Company’s common stock of $24.93 per share on March 1, 2018 . Compensation cost will be amortized to profit/loss over the remaining vesting period. (b) The restricted stock units vest in ratable tranches on December 31, 2019, December 31, 2020 and December 31, 2021. Expected compensation cost related to these units totals $2.5 million based on a closing stock price for the Company’s common stock of $24.93 per share on March 1, 2018 . Compensation cost will be amortized to profit/loss over the remaining vesting period. (c) The restricted stock units vest in ratable tranches on December 31, 2019, December 31, 2020 and December 31, 2021. Expected compensation cost related to these units totals $1.0 million based on a closing stock price for the Company's common stock of $31.31 per share on September 29, 2019 . Compensation cost will be amortized to profit/loss over the remaining vesting period. (d) These restricted stock units were granted to the non-employees who currently serve on the Company's Board of Directors. Each participating director's units will vest upon his departure from the Company's Board of Directors. Compensation cost was recognized in profit/loss upon the grant date. (e) If performance conditions related to the Company's 2019 operating results are satisfied, the restricted stock units vest in ratable tranches on December 31, 2020, December 31, 2021 and December 31, 2022. Expected compensation cost related to these units totals $5.1 million based on a closing stock price for the Company's common stock of $16.47 per share on January 7, 2019 . Compensation cost will be amortized to profit/loss upon satisfaction of the performance conditions over the remaining vesting period. (f) If performance conditions related to the Company's 2019 operating results are satisfied, the restricted stock units vest in ratable tranches on December 31, 2020, December 31, 2021 and December 31, 2022. Expected compensation cost related to these units totals $3.4 million based on a closing stock price for the Company's common stock of $31.31 per share on September 29, 2019 . Compensation cost will be amortized to profit/loss upon satisfaction of the performance conditions over the remaining vesting period. |
Schedule of Compensation Cost and Income Tax Benefit | Compensation costs and the income tax benefit recognized for our share-based compensation arrangements are included below: Thirteen Weeks Ended Thirty-Nine Weeks Ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 (In thousands) Equity-based awards compensation cost: Cost of sales $ 149 $ 124 $ 311 $ 293 Selling, general and administrative expense 1,956 3,502 7,011 8,966 Total cost 2,105 3,626 7,322 9,259 Income tax benefit 512 883 1,782 2,254 Net cost $ 1,593 $ 2,743 $ 5,540 $ 7,005 Liability-based awards compensation cost: Selling, general and administrative expense $ 224 $ — $ 452 $ — Income tax benefit 55 — 110 — Net cost $ 169 $ — $ 342 $ — |
Schedule of Restricted Share and Restricted Stock Unit Activity | The Company’s RSU activity is included below: Thirty-Nine Weeks Ended September 29, 2019 Thirty-Nine Weeks Ended September 30, 2018 Number Weighted Average Grant Date Fair Value Number Weighted Average Grant Date Fair Value (In thousands, except weighted average fair values) Equity-based RSUs: Outstanding at beginning of period 1,033 $ 22.91 389 $ 18.39 Granted 608 20.11 849 25.20 Vested (721 ) 22.08 — — Forfeited (227 ) 21.51 (427 ) 18.97 Outstanding at end of period 693 21.79 811 25.22 Thirty-Nine Weeks Ended September 29, 2019 Thirty-Nine Weeks Ended September 30, 2018 Number Weighted Average Milestone Date Fair Value(a) Number Weighted Average Milestone Date Fair Value(a) (In thousands, except weighted average fair values) Liability-based RSUs: Outstanding at beginning of period — $ — — $ — Granted 146 16.25 — — Vested (3 ) 26.86 — — Outstanding at end of period 143 31.31 — — (a) The milestone date fair value is the closing price of a share of the Company's common stock on the respective milestone date (i.e., grant date, vesting date, forfeiture date or financial reporting date). |
RESTRUCTURING ACTIVITIES (Table
RESTRUCTURING ACTIVITIES (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table provides a summary of our estimates of net costs associated with these restructuring initiatives by major type of cost: Type of Cost 40 North Foods GNP Total Estimated Amount Expected to be Incurred (In thousands) Employee termination benefits $ 449 $ 4,224 $ 4,673 Inventory adjustments — 472 472 Asset impairments 103 781 884 Other, net (a) 18 736 754 Total estimated costs, net $ 570 $ 6,213 $ 6,783 (a) Comprised of other costs directly related to the restructuring initiatives, including prepaid software impairment, St. Cloud, Minnesota office lease costs, Luverne, Minnesota plant closure costs, and Boulder, Colorado office lease costs and sublease income. During the thirteen and thirty-nine weeks ended September 29, 2019 , the Company recognized the following expenses (income) and paid (received) the following cash related to each restructuring initiative: Thirteen Weeks Ended September 29, 2019 Thirty-Nine Weeks Ended September 29, 2019 Expenses (Income) Cash Outlays (Receipts) Expenses (Income) Cash Outlays (Receipts) (In thousands) 40 North Foods - Other, net $ (20 ) $ 8 $ (90 ) $ (6 ) GNP - Employee termination benefits — 15 — 68 $ (20 ) $ 23 $ (90 ) $ 62 |
Schedule of Restructuring Reserve | September 29, 2019 . Ending liability balances for employee termination benefits and other charges are reported in the line item Accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets. The ending reserve balance for inventory impairments is reported in the line item Inventories in our Condensed Consolidated Balance Sheets. 40 North Foods GNP Employee Termination Benefits Other, Total Employee Termination Benefits Inventory Other, Total (In thousands) Restructuring charges incurred $ — $ — $ — $ 3,381 $ 699 $ 752 $ 4,832 Cash payments and disposals — — — (2,581 ) — — (2,581 ) Liability or reserve at December 31, 2017 — — — 800 699 752 2,251 Restructuring charges incurred 449 150 599 936 (227 ) (17 ) 692 Restructuring income recognized — (35 ) (35 ) — — — — Cash payments and disposals (449 ) (65 ) (514 ) (1,500 ) (472 ) (735 ) (2,707 ) Cash received — 36 36 — — — — Liability or reserve at December 30, 2018 — 86 86 236 — — 236 Restructuring income recognized — (90 ) (90 ) — — — — Cash payments and disposals — (83 ) (83 ) (69 ) — — (69 ) Cash received — 90 90 — — — — Liability or reserve at September 29, 2019 $ — $ 3 $ 3 $ 167 $ — $ — $ 167 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Pilgrim’s has been and, in some cases, continues to be a party to certain transactions with affiliated companies. Thirteen Weeks Ended Thirty-Nine Weeks Ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 (In thousands) Sales to related parties: JBS USA Food Company (a) $ 3,799 $ 4,035 $ 10,968 $ 10,043 JBS Five Rivers — — — 7,096 JBS Global (UK) Ltd. 32 — 118 — JBS Chile Ltda. — — 132 60 Combo, Mercado De Congelados 118 2 146 2 Total sales to related parties $ 3,949 $ 4,037 $ 11,364 $ 17,201 Cost of goods purchased from related parties: JBS USA Food Company (a) $ 31,270 $ 29,094 $ 94,511 $ 90,921 Seara Meats B.V. 7,297 8,341 16,187 26,018 JBS Aves Ltda. — 40 — 1,123 JBS Toledo NV 64 — 272 290 JBS Global (UK) Ltd. — — — 21 Total cost of goods purchased from related parties $ 38,631 $ 37,475 $ 110,970 $ 118,373 Expenditures paid by related parties: JBS USA Food Company (b) $ 7,919 $ 10,145 $ 26,028 $ 49,407 Seara Alimentos — — 7 — JBS Chile Ltda. — 2 6 5 Total expenditures paid by related parties $ 7,919 $ 10,147 $ 26,041 $ 49,412 Expenditures paid on behalf of related parties: JBS USA Food Company (b) $ 1,675 $ 1,938 $ 5,654 $ 6,851 JBS S.A. — — — 164 Seara International Ltd. — — — 31 Total expenditures paid on behalf of related parties $ 1,675 $ 1,938 $ 5,654 $ 7,046 September 29, 2019 December 30, 2018 (In thousands) Accounts receivable from related parties: JBS USA Food Company (a) $ 1,491 $ 1,236 Combo, Mercado de Congelados 82 79 Seara International Ltd. — 16 Total accounts receivable from related parties $ 1,573 $ 1,331 Accounts payable to related parties: JBS USA Food Company (a) $ 4,175 $ 5,121 Seara Meats B.V. 927 2,142 JBS Toledo NV 55 — JBS Chile Ltda. — 6 Total accounts payable to related parties $ 5,157 $ 7,269 (a) The Company routinely executes transactions to both purchase products from JBS USA Food Company (“JBS USA”) and sell products to them. As of September 29, 2019 , approximately $ 2.9 million of goods purchased from JBS USA were in transit and not reflected on our Condensed Consolidated Balance Sheet. (b) The Company has an agreement with JBS USA to allocate costs associated with JBS USA’s procurement of SAP licenses and maintenance services for its companies. Under this agreement, the fees associated with procuring SAP licenses and maintenance services are allocated between the Company and JBS USA in proportion to the percentage of licenses used by each company. The agreement expires on the date of expiration, or earlier termination, of the underlying SAP license agreement. The Company also has an agreement with JBS USA to allocate the costs of supporting the business operations by one consolidated corporate team, which have historically been supported by their respective corporate teams. Expenditures paid by JBS USA on behalf of the Company will be reimbursed by the Company and expenditures paid by the Company on behalf of JBS USA will be reimbursed by JBS USA. This agreement expires on December 31, 2019. |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | September 29, 2019 December 30, 2018 Long-Lived Assets (a) (In thousands) U.S. $ 1,582,318 $ 1,506,217 U.K. and Europe 345,412 359,621 Mexico 283,394 295,864 Total assets $ 2,211,124 $ 2,161,702 (a) For this disclosure, we exclude financial instruments, deferred tax assets, operating lease assets and intangible assets in accordance with Accounting Standards Codification (“ASC”) 280-10-50-41, Segment Reporting. Long-lived assets, as used in ASC 280-10-50-41, implies hard assets that cannot be readily removed. Information on segments and a reconciliation to income before income taxes are as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 Net Sales (In thousands) U.S. $ 1,931,657 $ 1,864,169 $ 5,732,201 $ 5,604,709 U.K. and Europe 517,531 526,722 1,568,396 1,634,125 Mexico 328,782 306,713 1,045,133 1,042,161 Total net sales $ 2,777,970 $ 2,697,604 $ 8,345,730 $ 8,280,995 Thirteen Weeks Ended Thirty-Nine Weeks Ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 Operating Income (In thousands) U.S. $ 125,169 $ 74,206 $ 426,968 $ 300,960 U.K. and Europe 25,325 23,470 62,233 68,545 Mexico 37,667 (12,355 ) 115,503 102,512 Elimination 24 25 72 34 Total operating income 188,185 85,346 604,776 472,051 Interest expense, net of capitalized interest 32,028 35,334 99,184 125,901 Interest income (4,698 ) (4,241 ) (11,481 ) (10,665 ) Foreign currency transaction losses (gains) 3,027 (6,711 ) 7,923 (2,802 ) Miscellaneous, net 1,367 653 2,521 (1,781 ) Income before income taxes $ 156,461 $ 60,311 $ 506,629 $ 361,398 |
DESCRIPTION OF BUSINESS AND B_4
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION - Additional Information (Details) bird / WK in Millions, lb in Billions | 9 Months Ended |
Sep. 29, 2019employeebird / WKstategrowercountrylb | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of countries in which entity exports products | country | 100 |
Number of states in which entity operates | state | 14 |
Number of employees | employee | 52,700 |
Maximum processing capacity of employees per week (in birds per week) | bird / WK | 45.1 |
Maximum annual processing capacity of employees (in pounds) (more than) | lb | 12.9 |
Number of contract growers | grower | 4,900 |
Percentage of beneficial ownership by holding company | 78.30% |
DESCRIPTION OF BUSINESS AND B_5
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 598,054 | $ 338,386 | ||
Restricted cash | 26,950 | 23,192 | ||
Total cash, cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows | $ 625,004 | $ 361,578 | $ 415,840 | $ 589,531 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Assets and Liabilities Measured on a Recurring Basis (Details) - Recurring - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 30, 2018 |
Commodity futures instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 6,250 | $ 2,244 |
Derivative liabilities | (6,800) | (1,479) |
Commodity futures instruments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 6,250 | 2,244 |
Derivative liabilities | (6,800) | (1,479) |
Commodity options instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 615 | |
Derivative liabilities | (7,002) | (3,312) |
Commodity options instruments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 615 | |
Derivative liabilities | (7,002) | (3,312) |
Foreign currency instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 913 | 1,311 |
Derivative liabilities | (548) | (6,649) |
Foreign currency instruments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 913 | 1,311 |
Derivative liabilities | $ (548) | $ (6,649) |
FAIR VALUE MEASUREMENTS - Sch_2
FAIR VALUE MEASUREMENTS - Schedule of Fair Value and Carrying Amount of Debt Obligations (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 30, 2018 | Sep. 29, 2017 | Mar. 11, 2015 |
Senior notes | Fixed-rate senior notes payable at 5.75%, at Level 1 inputs | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Stated interest rate | 5.75% | 5.75% | ||
Senior notes | Fixed-rate senior notes payable at 5.875%, at Level 1 inputs | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Stated interest rate | 5.875% | 5.875% | ||
Senior notes | Level 1 | Carrying Amount | Fixed-rate senior notes payable at 5.75%, at Level 1 inputs | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fixed-rate senior notes payable | $ (1,002,195) | $ (1,002,497) | ||
Senior notes | Level 1 | Carrying Amount | Fixed-rate senior notes payable at 5.875%, at Level 1 inputs | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fixed-rate senior notes payable | (844,254) | (843,717) | ||
Senior notes | Level 1 | Fair Value | Fixed-rate senior notes payable at 5.75%, at Level 1 inputs | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fixed-rate senior notes payable | (1,020,000) | (937,300) | ||
Senior notes | Level 1 | Fair Value | Fixed-rate senior notes payable at 5.875%, at Level 1 inputs | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fixed-rate senior notes payable | (905,250) | (768,188) | ||
Secured loans | Level 3 | Carrying Amount | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fixed-rate senior notes payable | (1,334) | (319) | ||
Secured loans | Level 3 | Fair Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fixed-rate senior notes payable | $ (1,316) | $ (319) |
TRADE ACCOUNTS AND OTHER RECE_3
TRADE ACCOUNTS AND OTHER RECEIVABLES (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 29, 2019 | Dec. 30, 2018 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |||
Trade accounts receivable | $ 549,913 | $ 533,645 | |
Notes receivable - current | 4,205 | 4,630 | |
Other receivables | 54,839 | 31,331 | |
Receivables, gross | 608,957 | 569,606 | |
Allowance for doubtful accounts | $ (6,919) | (6,919) | (8,057) |
Receivables, net | 602,038 | 561,549 | |
Account receivable from related parties | $ 1,573 | $ 1,331 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance, beginning of period | (8,057) | ||
Provision charged to operating results | (941) | ||
Account write-offs and recoveries | 1,838 | ||
Effect of exchange rate | 241 | ||
Balance, end of period | $ (6,919) |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 30, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials and work-in-process | $ 741,975 | $ 747,801 |
Finished products | 420,096 | 317,410 |
Operating supplies | 39,302 | 43,825 |
Maintenance materials and parts | 59,989 | 50,483 |
Total inventories | $ 1,261,362 | $ 1,159,519 |
INVESTMENTS IN SECURITIES (Deta
INVESTMENTS IN SECURITIES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | Dec. 30, 2018 | |
Debt Securities, Available-for-sale [Line Items] | |||||
Gross realized gains | $ 4,100,000 | $ 2,500,000 | $ 9,300,000 | $ 5,400,000 | |
Proceeds from sale or maturity of available-for-sale securities | 0 | $ 0 | 0 | $ 0 | |
Fixed income securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 276,203,000 | 276,203,000 | $ 135,286,000 | ||
Fair Value | 276,203,000 | 276,203,000 | 135,286,000 | ||
Other | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 89,049,000 | 89,049,000 | 67,474,000 | ||
Fair Value | $ 89,049,000 | $ 89,049,000 | $ 67,474,000 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Net gains (losses) on derivative financial instruments | $ (10) | $ (7.4) | $ (18.5) | $ (25) |
Cash flow hedge gain (loss) to be reclassified within twelve months | $ 0.5 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Outstanding Derivative Instruments and Cash Collateral (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 29, 2019 | Dec. 30, 2018 | |
Fair values: | ||
Collateral posted with brokers | $ 26,950 | $ 23,192 |
Corn | ||
Derivatives Coverage: | ||
Derivatives coverage (as a percentage) | 9.00% | 6.00% |
Soybean meal | ||
Derivatives Coverage: | ||
Derivatives coverage (as a percentage) | 32.00% | 6.00% |
Commodity | ||
Fair values: | ||
Derivative assets, gross | $ 6,865 | $ 2,263 |
Derivative liabilities, gross | (13,802) | (4,791) |
Foreign currency | ||
Fair values: | ||
Derivative assets, gross | 913 | 1,311 |
Derivative liabilities, gross | $ (548) | $ (6,649) |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Cash Flow Hedges Included in AOCI (Details) - Cash Flow Hedging - Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Derivative [Line Items] | ||||
Gain (Loss) Recognized in Other Comprehensive Loss on Derivative | $ (1,644) | $ 130 | $ (1,257) | $ 33 |
Loss (Gain) Reclassified from AOCI into Income | 247 | (143) | 74 | 329 |
Foreign currency derivatives | ||||
Derivative [Line Items] | ||||
Gain (Loss) Recognized in Other Comprehensive Loss on Derivative | (1,644) | 130 | (1,257) | 33 |
Loss (Gain) Reclassified from AOCI into Income | $ 247 | $ (143) | $ 74 | $ 329 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Schedule of Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 29, 2019USD ($) | |
Goodwill [Roll Forward] | |
Balance, beginning of period | $ 949,750 |
Currency Translation | (24,984) |
Balance, end of period | 924,766 |
U.S. | |
Goodwill [Roll Forward] | |
Balance, beginning of period | 41,936 |
Currency Translation | 0 |
Balance, end of period | 41,936 |
U.K. and Europe | |
Goodwill [Roll Forward] | |
Balance, beginning of period | 782,207 |
Currency Translation | (24,984) |
Balance, end of period | 757,223 |
Mexico | |
Goodwill [Roll Forward] | |
Balance, beginning of period | 125,607 |
Currency Translation | 0 |
Balance, end of period | $ 125,607 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Schedule of Intangible Assets (Details) $ in Thousands | 9 Months Ended |
Sep. 29, 2019USD ($) | |
Accumulated Amortization Rollforward [Roll Forward] | |
Amortization | $ (16,927) |
Intangible Assets (Excluding Goodwill) Rollforward [Rollforward] | |
December 30, 2018 | 564,128 |
Currency Translation | (13,468) |
September 29, 2019 | 533,733 |
Trade names | |
Indefinite-lived Intangible Assets [Rollforward] | |
December 30, 2018 | 380,067 |
Currency Translation | (11,830) |
September 29, 2019 | 368,237 |
Trade names | |
Finite-lived Intangible Assets [Rollforward] | |
December 30, 2018 | 78,343 |
Currency Translation | 0 |
September 29, 2019 | 78,343 |
Accumulated Amortization Rollforward [Roll Forward] | |
December 30, 2018 | (43,552) |
Amortization | (1,474) |
Currency Translation | 0 |
September 29, 2019 | (45,026) |
Customer relationships | |
Finite-lived Intangible Assets [Rollforward] | |
December 30, 2018 | 247,706 |
Currency Translation | (2,782) |
September 29, 2019 | 244,924 |
Accumulated Amortization Rollforward [Roll Forward] | |
December 30, 2018 | (98,441) |
Amortization | (15,447) |
Currency Translation | 1,144 |
September 29, 2019 | (112,744) |
Non-compete agreements | |
Finite-lived Intangible Assets [Rollforward] | |
December 30, 2018 | 320 |
Currency Translation | 0 |
September 29, 2019 | 320 |
Accumulated Amortization Rollforward [Roll Forward] | |
December 30, 2018 | (315) |
Amortization | (6) |
Currency Translation | 0 |
September 29, 2019 | $ (321) |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Estimated Useful Lives of Finite-Lived Intangible Assets (Details) | 9 Months Ended |
Sep. 29, 2019 | |
Customer relationships | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, estimated useful life | 5 years |
Customer relationships | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, estimated useful life | 16 years |
Trade names | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, estimated useful life | 3 years |
Trade names | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, estimated useful life | 20 years |
Non-compete agreements | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, estimated useful life | 3 years |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | 9 Months Ended |
Sep. 29, 2019 | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 1 year |
Termination term | 1 year |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 16 years |
LEASES - Components of Lease Ex
LEASES - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 29, 2019 | Sep. 29, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 25,885 | $ 77,352 |
Amortization of finance lease assets | 64 | 111 |
Interest on finance leases | 15 | 22 |
Short-term and variable lease cost | 13,826 | 39,936 |
Net lease cost | $ 39,790 | $ 117,421 |
LEASES - Weighted Average Lease
LEASES - Weighted Average Lease Term and Discount Rate (Details) | Sep. 29, 2019 |
Weighted-average remaining lease term (years): | |
Operating leases | 5 years 9 months 25 days |
Finance leases | 4 years 6 months 14 days |
Weighted-average discount rate: | |
Operating leases | 4.86% |
Finance leases | 5.31% |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) $ in Thousands | 9 Months Ended |
Sep. 29, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 74,988 |
Operating cash flow from finance leases | 22 |
Financing cash flows from finance leases | 111 |
Operating lease assets obtained in exchange for operating lease liabilities | 24,290 |
Finance lease assets obtained in exchange for finance lease liabilities | $ 1,435 |
LEASES - Future Minimum Lease P
LEASES - Future Minimum Lease Payments on Non-cancellable Leases (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 30, 2018 |
Operating Leases | ||
Year 1 | $ 82,269 | |
Year 2 | 64,688 | |
Year 3 | 55,830 | |
Year 4 | 46,138 | |
Year 5 | 35,043 | |
Thereafter | 62,278 | |
Total future minimum lease payments | 346,246 | |
Less: imputed interest | (45,115) | |
Present value of lease liabilities | 301,131 | |
Finance Leases | ||
Year 1 | 423 | |
Year 2 | 343 | |
Year 3 | 326 | |
Year 4 | 325 | |
Year 5 | 271 | |
Thereafter | 0 | |
Total future minimum lease payments | 1,688 | |
Less: imputed interest | (187) | |
Present value of lease liabilities | $ 1,501 | |
Capital Lease Obligations | ||
Year 1 | $ 2,971 | |
Year 2 | 1,033 | |
Year 3 | 36 | |
Year 4 | 3 | |
Year 5 | 0 | |
Thereafter | 0 | |
Net minimum lease payments | 4,043 | |
Amount representing interest | (337) | |
Present value of net minimum lease payments | 3,706 | |
Noncancellable Operating Lease Obligations | ||
Year 1 | 84,220 | |
Year 2 | 63,196 | |
Year 3 | 53,908 | |
Year 4 | 45,557 | |
Year 5 | 36,136 | |
Thereafter | 66,637 | |
Net minimum lease payments | $ 349,654 |
LEASES - Lease Liabilities (Det
LEASES - Lease Liabilities (Details) $ in Thousands | Sep. 29, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |
Operating Leases | $ 301,131 |
Finance Leases | 1,501 |
Accrued expenses and other current liabilities | |
Lessee, Lease, Description [Line Items] | |
Operating Leases | 70,113 |
Finance Leases | 0 |
Current maturities of long-term debt | |
Lessee, Lease, Description [Line Items] | |
Operating Leases | 0 |
Finance Leases | 352 |
Noncurrent operating lease liability, less current maturities | |
Lessee, Lease, Description [Line Items] | |
Operating Leases | 231,018 |
Finance Leases | 0 |
Long-term debt, less current maturities | |
Lessee, Lease, Description [Line Items] | |
Operating Leases | 0 |
Finance Leases | $ 1,149 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 30, 2018 |
Property, Plant and Equipment [Line Items] | ||
PP&E, gross | $ 4,959,171 | $ 4,841,046 |
Accumulated depreciation and amortization | (2,748,047) | (2,679,344) |
PP&E, net | 2,211,124 | 2,161,702 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
PP&E, gross | 195,746 | 196,769 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
PP&E, gross | 1,714,404 | 1,697,703 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
PP&E, gross | 2,660,556 | 2,618,213 |
Autos and trucks | ||
Property, Plant and Equipment [Line Items] | ||
PP&E, gross | 62,596 | 59,195 |
Finance leases | ||
Property, Plant and Equipment [Line Items] | ||
PP&E, gross | 1,435 | 0 |
Construction-in-progress | ||
Property, Plant and Equipment [Line Items] | ||
PP&E, gross | $ 324,434 | $ 269,166 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 66,200 | $ 64,400 | $ 193,400 | $ 187,000 |
Payments for capital projects | 258,725 | 231,875 | ||
Transfer of property, plant and equipment | 189,900 | 149,500 | ||
Proceeds from property disposals | 13,400 | 1,500 | 15,168 | 2,707 |
Gain on property disposals | 9,800 | $ 700 | 9,546 | $ 452 |
Idled assets, carrying amount | 40,500 | 40,500 | ||
Idled assets, depreciable value | 137,700 | 137,700 | ||
Idled assets, accumulated depreciation | $ 97,200 | $ 97,200 |
CURRENT LIABILITIES (Details)
CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 30, 2018 |
Accounts payable: | ||
Trade accounts | $ 753,573 | $ 744,105 |
Book overdrafts | 74,966 | 69,475 |
Other payables | 17,661 | 16,479 |
Total accounts payable | 846,200 | 830,059 |
Accounts payable to related parties | 5,157 | 7,269 |
Revenue contract liability | 39,743 | 33,328 |
Accrued expenses and other current liabilities: | ||
Compensation and benefits | 164,261 | 149,507 |
Interest and debt-related fees | 29,079 | 33,596 |
Insurance and self-insured claims | 77,680 | 80,990 |
Current maturities of operating lease liabilities | 70,113 | 0 |
Derivative liabilities: | ||
Other accrued expenses | 138,764 | 111,408 |
Total accrued expenses and other current liabilities | 494,247 | 386,941 |
Total accounts payable, accrued expenses and other current liabilities | 1,385,347 | 1,257,597 |
Commodity futures | ||
Derivative liabilities: | ||
Derivative liabilities | 6,800 | 1,479 |
Commodity options | ||
Derivative liabilities: | ||
Derivative liabilities | 7,002 | 3,312 |
Foreign currency derivatives | ||
Derivative liabilities: | ||
Derivative liabilities | $ 548 | $ 6,649 |
LONG-TERM DEBT AND OTHER BORR_3
LONG-TERM DEBT AND OTHER BORROWING ARRANGEMENTS - Schedule of Long-term Debt and Other Borrowing Arrangements (Details) - USD ($) $ in Thousands | Dec. 14, 2018 | Jun. 02, 2018 | Sep. 29, 2019 | Dec. 30, 2018 | Sep. 29, 2017 | Mar. 11, 2015 |
Debt Instrument [Line Items] | ||||||
Finance lease obligations | $ 1,501 | |||||
Finance lease obligations | $ 3,707 | |||||
Long-term debt | 2,330,534 | 2,352,605 | ||||
Less: Current maturities of long-term debt | (26,636) | (30,405) | ||||
Long-term debt, less current maturities | 2,303,898 | 2,322,200 | ||||
Less: Capitalized financing costs | (24,027) | (27,010) | ||||
Long-term debt, less current maturities, net of capitalized financing costs: | $ 2,279,871 | 2,295,190 | ||||
Credit facility | Term note payable at 3.35% | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 3.35% | |||||
Long-term debt | $ 481,250 | 500,000 | ||||
Credit facility | Revolving note payable at 5.25% | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 5.25% | |||||
Long-term debt | $ 0 | 0 | ||||
Credit facility | Moy Park France Invoice Discounting Revolver with payables at EURIBOR plus 0.8% | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 0 | 2,277 | ||||
Credit facility | Moy Park France Invoice Discounting Revolver with payables at EURIBOR plus 0.8% | EURIBOR Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.80% | |||||
Credit facility | Moy Park Credit Agricole Bank Overdraft with notes payable at EURIBOR plus 1.50% | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 0 | 88 | ||||
Credit facility | Moy Park Credit Agricole Bank Overdraft with notes payable at EURIBOR plus 1.50% | EURIBOR Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.50% | |||||
Credit facility | Moy Park Bank of Ireland Revolving Facility with notes payable at LIBOR or EURIBOR plus 1.25% to 2.00% | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 0 | 0 | ||||
Credit facility | Moy Park Bank of Ireland Revolving Facility with notes payable at LIBOR or EURIBOR plus 1.25% to 2.00% | EURIBOR Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.00% | 2.00% | ||||
Credit facility | Moy Park Bank of Ireland Revolving Facility with notes payable at LIBOR or EURIBOR plus 1.25% to 2.00% | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.25% | 1.25% | ||||
Credit facility | Mexico Credit Facility (defined below) with notes payable at TIIE Rate plus 1.50% | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 0 | 0 | ||||
Credit facility | Mexico Credit Facility (defined below) with notes payable at TIIE Rate plus 1.50% | TIIE Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.50% | 1.50% | ||||
Senior notes | Senior notes payable, net of premium and discount at 5.75% | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 5.75% | 5.75% | ||||
Long-term debt | $ 1,002,195 | 1,002,497 | ||||
Senior notes | Senior notes payable, net of discount at 5.875% | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 5.875% | 5.875% | ||||
Long-term debt | $ 844,254 | 843,717 | ||||
Secured loans with payables at weighted average of 3.34% | ||||||
Debt Instrument [Line Items] | ||||||
Weighted average interest rate | 3.34% | |||||
Long-term debt | $ 1,334 | $ 319 |
LONG-TERM DEBT AND OTHER BORR_4
LONG-TERM DEBT AND OTHER BORROWING ARRANGEMENTS - Narrative (Details) $ in Billions | Dec. 14, 2018USD ($) | Dec. 03, 2018EUR (€) | Jul. 20, 2018USD ($) | Jun. 02, 2018GBP (£) | Mar. 07, 2018USD ($) | Sep. 29, 2017USD ($) | Jun. 30, 2018 | Jun. 30, 2009EUR (€) | Sep. 29, 2019USD ($) | Dec. 30, 2018USD ($) | Dec. 14, 2018MXN ($) | Mar. 11, 2015USD ($) |
Senior notes payable, net of premium and discount at 5.75% | Senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 250,000,000 | $ 250,000,000 | $ 500,000,000 | |||||||||
Stated interest rate | 5.75% | 5.75% | ||||||||||
Add on offering, percent of face value | 99.25% | 102.00% | ||||||||||
Proceeds from issuance of debt | $ 248,100,000 | $ 255,000,000 | ||||||||||
Unamortized premium | 5,000,000 | |||||||||||
Unamortized discount | 1,900,000 | |||||||||||
Long-term debt | $ 1,002,195,000 | $ 1,002,497,000 | ||||||||||
Senior notes payable, net of discount at 5.875% | Senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 250,000,000 | $ 600,000,000 | ||||||||||
Stated interest rate | 5.875% | 5.875% | ||||||||||
Add on offering, percent of face value | 97.25% | |||||||||||
Proceeds from issuance of debt | $ 243,100,000 | |||||||||||
Unamortized discount | $ 6,900,000 | |||||||||||
Long-term debt | $ 844,254,000 | 843,717,000 | ||||||||||
Revolving note payable at 5.25% | Credit facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Stated interest rate | 5.25% | |||||||||||
Long-term debt | $ 0 | 0 | ||||||||||
Revolving note payable at 5.25% | CoBank, ACB | Credit facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity | $ 750,000,000 | |||||||||||
Current borrowing capacity | 708,400,000 | |||||||||||
Letters of credit outstanding | 41,600,000 | |||||||||||
Outstanding borrowings | $ 0 | |||||||||||
Term note payable at 3.35% | Credit facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Stated interest rate | 3.35% | |||||||||||
Long-term debt | $ 481,250,000 | 500,000,000 | ||||||||||
Term note payable at 3.35% | CoBank, ACB | Credit facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity | 500,000,000 | |||||||||||
Long-term debt | 481,300,000 | |||||||||||
US Credit Facility | CoBank, ACB | Credit facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Available increase to aggregate revolving loan commitment | $ 1,250,000,000 | |||||||||||
Quarterly principal payment required, percent of original principal amount | 1.25% | |||||||||||
Credit facility, capital expenditures limit | $ 500,000,000 | |||||||||||
US Credit Facility | CoBank, ACB | Credit facility | U.S. and Puerto Rico Subsidiaries | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Percentage of equity interest guaranteed for debt | 100.00% | |||||||||||
US Credit Facility | CoBank, ACB | Credit facility | Foreign Subsidiaries | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Percentage of equity interest guaranteed for debt | 65.00% | |||||||||||
US Credit Facility | Credit facility | CoBank, ACB | London Interbank Offered Rate (LIBOR) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 1.25% | |||||||||||
US Credit Facility | Credit facility | CoBank, ACB | London Interbank Offered Rate (LIBOR) | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 1.25% | |||||||||||
US Credit Facility | Credit facility | CoBank, ACB | London Interbank Offered Rate (LIBOR) | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 2.75% | |||||||||||
US Credit Facility | Credit facility | CoBank, ACB | Base Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 0.25% | |||||||||||
US Credit Facility | Credit facility | CoBank, ACB | Base Rate | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 0.25% | |||||||||||
US Credit Facility | Credit facility | CoBank, ACB | Base Rate | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 1.75% | |||||||||||
US Credit Facility | Credit facility | CoBank, ACB | Swingline Loans | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity | $ 75,000,000 | |||||||||||
US Credit Facility | Credit facility | CoBank, ACB | Letter of Credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity | $ 125,000,000 | |||||||||||
Moy Park France Invoice Discounting Revolver with payables at EURIBOR plus 0.8% | Credit facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt | 0 | 2,277,000 | ||||||||||
Current borrowing capacity | 10,900,000 | |||||||||||
Outstanding borrowings | $ 0 | |||||||||||
Moy Park France Invoice Discounting Revolver with payables at EURIBOR plus 0.8% | Credit facility | EURIBOR Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 0.80% | |||||||||||
Moy Park France Invoice Discounting Revolver with payables at EURIBOR plus 0.8% | Credit facility | Credit facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity | € | € 20,000,000 | |||||||||||
Line of credit facility increase (decrease) percent | (0.50) | |||||||||||
Moy Park France Invoice Discounting Revolver with payables at EURIBOR plus 0.8% | Credit facility | Credit facility | EURIBOR Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 0.80% | |||||||||||
Moy Park Credit Agricole Bank Overdraft with notes payable at EURIBOR plus 1.50% | Credit facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt | $ 0 | 88,000 | ||||||||||
Outstanding borrowings | $ 0 | |||||||||||
Moy Park Credit Agricole Bank Overdraft with notes payable at EURIBOR plus 1.50% | Credit facility | EURIBOR Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 1.50% | |||||||||||
Moy Park Credit Agricole Bank Overdraft with notes payable at EURIBOR plus 1.50% | Credit facility | Credit facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity | € | € 500,000 | |||||||||||
Moy Park Credit Agricole Bank Overdraft with notes payable at EURIBOR plus 1.50% | Credit facility | Credit facility | EURIBOR Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 1.50% | |||||||||||
Moy Park Bank of Ireland Revolving Facility with notes payable at LIBOR or EURIBOR plus 1.25% to 2.00% | Credit facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt | $ 0 | 0 | ||||||||||
Moy Park Bank of Ireland Revolving Facility with notes payable at LIBOR or EURIBOR plus 1.25% to 2.00% | Credit facility | London Interbank Offered Rate (LIBOR) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 1.25% | 1.25% | ||||||||||
Moy Park Bank of Ireland Revolving Facility with notes payable at LIBOR or EURIBOR plus 1.25% to 2.00% | Credit facility | EURIBOR Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 2.00% | 2.00% | ||||||||||
Moy Park Bank of Ireland Revolving Facility with notes payable at LIBOR or EURIBOR plus 1.25% to 2.00% | Governor and the Company of the Bank of Ireland | Credit facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity | £ | £ 100,000,000 | |||||||||||
Current borrowing capacity | $ 122,900,000 | |||||||||||
Outstanding borrowings | 0 | |||||||||||
Mexico Credit Facility (defined below) with notes payable at TIIE Rate plus 1.50% | Credit facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity | $ 74,800,000 | $ 1.5 | ||||||||||
Long-term debt | 0 | $ 0 | ||||||||||
Outstanding borrowings | $ 0 | |||||||||||
Mexico Credit Facility (defined below) with notes payable at TIIE Rate plus 1.50% | Credit facility | TIIE Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 1.50% | 1.50% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 46,365 | $ 30,848 | $ 142,328 | $ 106,367 |
Effective income tax rate | 28.10% | 29.40% | ||
Other comprehensive income (loss), tax expense (benefit) | $ 2,000 | $ (300) | ||
Foreign Tax Authority | Mexican Tax Authority | Tax Year 2011 | ||||
Income Tax Contingency [Line Items] | ||||
Loss in period | $ 16,600 |
REVENUE RECOGNITION - Disaggreg
REVENUE RECOGNITION - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 2,777,970 | $ 2,697,604 | $ 8,345,730 | $ 8,280,995 |
U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 1,931,656 | 1,864,169 | 5,732,201 | 5,604,709 |
U.K. and Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 517,532 | 526,722 | 1,568,396 | 1,634,125 |
Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 328,782 | 306,713 | 1,045,133 | 1,042,161 |
Domestic | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 2,637,988 | 2,563,689 | 7,940,658 | 7,852,046 |
Domestic | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 1,857,859 | 1,800,789 | 5,523,497 | 5,411,391 |
Domestic | U.K. and Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 451,347 | 456,187 | 1,372,028 | 1,398,494 |
Domestic | Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 328,782 | 306,713 | 1,045,133 | 1,042,161 |
Export | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 139,982 | 133,915 | 405,072 | 428,949 |
Export | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 73,797 | 63,380 | 208,704 | 193,318 |
Export | U.K. and Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 66,185 | 70,535 | 196,368 | 235,631 |
Export | Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 0 | $ 0 | $ 0 | $ 0 |
REVENUE RECOGNITION - Contract
REVENUE RECOGNITION - Contract Balances (Details) $ in Thousands | 9 Months Ended |
Sep. 29, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Balance, beginning of period | $ 33,328 |
Revenue recognized | (34,339) |
Cash received, excluding amounts recognized as revenue during the period | 40,754 |
Balance, end of period | $ 39,743 |
PENSION AND OTHER POSTRETIREM_3
PENSION AND OTHER POSTRETIREMENT BENEFITS - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | Dec. 30, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||||
Retirement plan expenses | $ 5,000,000 | $ 3,000,000 | $ 14,600,000 | $ 9,100,000 | |
Accumulated benefit obligation, defined benefit pension plans | 169,400,000 | $ 169,400,000 | $ 157,600,000 | ||
Weighted average duration of defined benefit obligation | 29 years 8 months 15 days | ||||
Expected contributions, remainder of 2019 (less than for other postretirement plans) | 2,100,000 | $ 2,100,000 | |||
Actuarial loss expected to be recognized in net pension cost, remainder of 2018 | $ 400,000 | $ 400,000 | |||
Fixed income securities | Pooled separate accounts | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||||
Target plan asset allocations | 50.00% | 50.00% | |||
Fixed income securities | Common collective trusts funds | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||||
Target plan asset allocations | 30.00% | 30.00% | |||
Equity securities | Pooled separate accounts | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||||
Target plan asset allocations | 50.00% | 50.00% | |||
Equity securities | Common collective trusts funds | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||||
Target plan asset allocations | 70.00% | 70.00% | |||
Maximum | Other Benefits | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||||
Impact of 0.25% change in discount rate on projected benefit obligation | $ 1,000 | ||||
Expected contributions, remainder of 2019 (less than for other postretirement plans) | $ 100,000 | $ 100,000 |
PENSION AND OTHER POSTRETIREM_4
PENSION AND OTHER POSTRETIREMENT BENEFITS - Schedule of Defined Benefit Plan Obligations and Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | Dec. 30, 2018 | Dec. 31, 2017 | |
Change in plan assets: | ||||||
Fair value of plan assets, beginning of period | $ 102,414 | |||||
Fair value of plan assets, end of period | $ 107,800 | 107,800 | ||||
Pension Benefits | ||||||
Change in projected benefit obligation: | ||||||
Projected benefit obligation, beginning of period | 157,619 | $ 178,247 | ||||
Interest cost | 1,468 | $ 1,366 | 4,402 | 4,097 | ||
Actuarial losses (gains) | 20,726 | (9,787) | ||||
Benefits paid | (4,564) | (6,857) | ||||
Curtailments and settlements | (8,783) | 0 | ||||
Projected benefit obligation, end of period | 169,400 | 165,700 | 169,400 | 165,700 | ||
Change in plan assets: | ||||||
Fair value of plan assets, beginning of period | 102,414 | 112,570 | ||||
Actual return on plan assets | 12,637 | 1,853 | ||||
Contributions by employer | 6,096 | 9,474 | ||||
Benefits paid | (4,564) | (6,857) | ||||
Curtailments and settlements | (8,783) | 0 | ||||
Fair value of plan assets, end of period | 107,800 | 117,040 | 107,800 | 117,040 | ||
Funded status: | ||||||
Unfunded benefit obligation, end of period | (61,600) | (61,600) | $ (55,205) | |||
Amounts recognized in the Condensed Consolidated Balance Sheets at end of period: | ||||||
Current liability | (8,117) | (8,117) | (8,267) | |||
Long-term liability | (53,483) | (53,483) | (46,938) | |||
Recognized liability | (61,600) | (61,600) | (55,205) | |||
Amounts recognized in accumulated other comprehensive loss at end of period: | ||||||
Net actuarial loss (gain) | 62,431 | 46,241 | 62,431 | 46,241 | 54,343 | $ 54,235 |
Other Benefits | ||||||
Change in projected benefit obligation: | ||||||
Projected benefit obligation, beginning of period | 1,462 | 1,603 | ||||
Interest cost | 13 | 12 | 39 | 35 | ||
Actuarial losses (gains) | 130 | (67) | ||||
Benefits paid | (111) | (111) | ||||
Curtailments and settlements | 0 | 0 | ||||
Projected benefit obligation, end of period | 1,520 | 1,460 | 1,520 | 1,460 | ||
Change in plan assets: | ||||||
Fair value of plan assets, beginning of period | 0 | 0 | ||||
Actual return on plan assets | 0 | 0 | ||||
Contributions by employer | 111 | 111 | ||||
Benefits paid | (111) | (111) | ||||
Curtailments and settlements | 0 | 0 | ||||
Fair value of plan assets, end of period | 0 | 0 | 0 | 0 | ||
Funded status: | ||||||
Unfunded benefit obligation, end of period | (1,520) | (1,520) | (1,462) | |||
Amounts recognized in the Condensed Consolidated Balance Sheets at end of period: | ||||||
Current liability | (111) | (111) | (149) | |||
Long-term liability | (1,409) | (1,409) | (1,313) | |||
Recognized liability | (1,520) | (1,520) | (1,462) | |||
Amounts recognized in accumulated other comprehensive loss at end of period: | ||||||
Net actuarial loss (gain) | $ 95 | $ (32) | $ 95 | $ (32) | $ (34) | $ 35 |
PENSION AND OTHER POSTRETIREM_5
PENSION AND OTHER POSTRETIREMENT BENEFITS - Schedule of Net Defined Benefit Pension and Other Postretirement Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Pension Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||
Interest cost | $ 1,468 | $ 1,366 | $ 4,402 | $ 4,097 |
Estimated return on plan assets | (1,349) | (1,516) | (4,047) | (4,549) |
Settlement loss | 1,134 | 0 | 3,064 | 0 |
Amortization of net loss | 328 | 300 | 984 | 902 |
Net costs | 1,581 | 150 | 4,403 | 450 |
Other Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||
Interest cost | 13 | 12 | 39 | 35 |
Estimated return on plan assets | 0 | 0 | 0 | 0 |
Settlement loss | 0 | 0 | 0 | 0 |
Amortization of net loss | 0 | 0 | 0 | 0 |
Net costs | $ 13 | $ 12 | $ 39 | $ 35 |
PENSION AND OTHER POSTRETIREM_6
PENSION AND OTHER POSTRETIREMENT BENEFITS - Schedule of Economic Assumptions and Impact of Change in Discount Rate on Benefit Obligation (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Dec. 30, 2018 | |
Assumptions used to measure net pension and other postretirement cost: | |||
Increase in Discount Rate of 0.25% - Impact on defined benefit obligation for pension benefits | $ (4,218) | ||
Decrease in Discount Rate of 0.25% - Impact on defined benefit obligation for pension benefits | $ 4,430 | ||
Pension Benefits | |||
Assumptions used to measure benefit obligation at end of period: | |||
Discount rate | 3.23% | 4.40% | |
Assumptions used to measure net pension and other postretirement cost: | |||
Discount rate | 4.40% | 3.69% | |
Expected return on plan assets | 5.50% | 5.50% | |
Other Benefits | |||
Assumptions used to measure benefit obligation at end of period: | |||
Discount rate | 2.81% | 4.07% | |
Assumptions used to measure net pension and other postretirement cost: | |||
Discount rate | 4.07% | 3.39% |
PENSION AND OTHER POSTRETIREM_7
PENSION AND OTHER POSTRETIREMENT BENEFITS - Schedule of Plan Asset Allocations (Details) | Sep. 29, 2019 | Dec. 30, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets | 100.00% | 100.00% |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets | 1.00% | 0.00% |
Equity securities | Pooled separate accounts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets | 4.00% | 4.00% |
Equity securities | Common collective trusts funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets | 50.00% | 45.00% |
Fixed income securities | Pooled separate accounts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets | 5.00% | 5.00% |
Fixed income securities | Common collective trusts funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets | 35.00% | 41.00% |
Real estate | Common collective trusts funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets | 5.00% | 5.00% |
PENSION AND OTHER POSTRETIREM_8
PENSION AND OTHER POSTRETIREMENT BENEFITS - Schedule of Fair Value Assumptions of Plan Assets (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 30, 2018 |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | $ 107,800 | $ 102,414 |
Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 1,117 | 110 |
Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 106,683 | 102,304 |
Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Cash and cash equivalents | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 1,117 | 110 |
Cash and cash equivalents | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 1,117 | 110 |
Cash and cash equivalents | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Cash and cash equivalents | Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Large U.S. equity funds | Pooled separate accounts | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 2,797 | 2,491 |
Large U.S. equity funds | Pooled separate accounts | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Large U.S. equity funds | Pooled separate accounts | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 2,797 | 2,491 |
Large U.S. equity funds | Pooled separate accounts | Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Large U.S. equity funds | Common collective trusts funds | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 18,912 | 17,351 |
Large U.S. equity funds | Common collective trusts funds | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Large U.S. equity funds | Common collective trusts funds | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 18,912 | 17,351 |
Large U.S. equity funds | Common collective trusts funds | Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Small/Mid U.S. equity funds | Pooled separate accounts | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 345 | 292 |
Small/Mid U.S. equity funds | Pooled separate accounts | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Small/Mid U.S. equity funds | Pooled separate accounts | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 345 | 292 |
Small/Mid U.S. equity funds | Pooled separate accounts | Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Small/Mid U.S. equity funds | Common collective trusts funds | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 11,607 | 5,880 |
Small/Mid U.S. equity funds | Common collective trusts funds | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Small/Mid U.S. equity funds | Common collective trusts funds | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 11,607 | 5,880 |
Small/Mid U.S. equity funds | Common collective trusts funds | Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
International equity funds | Pooled separate accounts | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 1,705 | 1,489 |
International equity funds | Pooled separate accounts | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
International equity funds | Pooled separate accounts | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 1,705 | 1,489 |
International equity funds | Pooled separate accounts | Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
International equity funds | Common collective trusts funds | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 23,653 | 22,516 |
International equity funds | Common collective trusts funds | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
International equity funds | Common collective trusts funds | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 23,653 | 22,516 |
International equity funds | Common collective trusts funds | Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fixed income funds | Pooled separate accounts | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 4,917 | 4,763 |
Fixed income funds | Pooled separate accounts | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fixed income funds | Pooled separate accounts | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 4,917 | 4,763 |
Fixed income funds | Pooled separate accounts | Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fixed income funds | Common collective trusts funds | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 37,208 | 42,217 |
Fixed income funds | Common collective trusts funds | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fixed income funds | Common collective trusts funds | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 37,208 | 42,217 |
Fixed income funds | Common collective trusts funds | Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Real estate | Common collective trusts funds | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 5,539 | 5,305 |
Real estate | Common collective trusts funds | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Real estate | Common collective trusts funds | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 5,539 | 5,305 |
Real estate | Common collective trusts funds | Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | $ 0 | $ 0 |
PENSION AND OTHER POSTRETIREM_9
PENSION AND OTHER POSTRETIREMENT BENEFITS - Schedule of Benefit Payments (Details) $ in Thousands | Sep. 29, 2019USD ($) |
Pension Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
2019 (remaining) | $ 4,493 |
2020 | 11,526 |
2021 | 11,200 |
2022 | 10,891 |
2023 | 10,627 |
2024-2028 | 48,429 |
Total | 97,166 |
Other Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
2019 (remaining) | 37 |
2020 | 147 |
2021 | 145 |
2022 | 141 |
2023 | 137 |
2024-2028 | 589 |
Total | $ 1,196 |
PENSION AND OTHER POSTRETIRE_10
PENSION AND OTHER POSTRETIREMENT BENEFITS - Schedule of Unrecognized Benefit Amounts (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
Pension Benefits | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Net actuarial loss (gain), beginning of period | $ 54,343 | $ 54,235 |
Amortization | (984) | (902) |
Curtailment and settlement adjustments | (3,064) | 0 |
Actuarial loss (gain) | 20,726 | (9,787) |
Asset loss (gain) | (8,590) | 2,695 |
Net actuarial loss (gain), end of period | 62,431 | 46,241 |
Other Benefits | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Net actuarial loss (gain), beginning of period | (34) | 35 |
Amortization | 0 | 0 |
Curtailment and settlement adjustments | 0 | 0 |
Actuarial loss (gain) | 129 | (67) |
Asset loss (gain) | 0 | 0 |
Net actuarial loss (gain), end of period | $ 95 | $ (32) |
STOCKHOLDERS' EQUITY - Schedule
STOCKHOLDERS' EQUITY - Schedule of Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance, beginning of period | $ 2,273,264 | $ 2,054,418 | $ 2,019,585 | $ 1,855,661 |
Other comprehensive income (loss) before reclassifications | (58,660) | (52,459) | ||
Amounts reclassified from accumulated other comprehensive income (loss) to net income | 466 | 56 | ||
Currency translation | (12) | (5) | ||
Total other comprehensive loss, net of tax | (55,361) | (19,964) | (58,206) | (52,408) |
Balance, end of period | 2,330,104 | 2,067,543 | 2,330,104 | 2,067,543 |
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance, beginning of period | (130,679) | (63,584) | (127,834) | (31,140) |
Total other comprehensive loss, net of tax | (55,361) | (19,964) | (58,206) | (52,408) |
Balance, end of period | (186,040) | (83,548) | (186,040) | (83,548) |
Losses Related to Foreign Currency Translation | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance, beginning of period | (55,770) | 42,081 | ||
Other comprehensive income (loss) before reclassifications | (50,824) | (58,892) | ||
Amounts reclassified from accumulated other comprehensive income (loss) to net income | 0 | 0 | ||
Currency translation | 0 | 0 | ||
Total other comprehensive loss, net of tax | (50,824) | (58,892) | ||
Balance, end of period | (106,594) | (16,811) | (106,594) | (16,811) |
Unrealized Losses on Derivative Financial Instruments Classified as Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance, beginning of period | (683) | (1,848) | ||
Other comprehensive income (loss) before reclassifications | (1,257) | 33 | ||
Amounts reclassified from accumulated other comprehensive income (loss) to net income | 74 | 329 | ||
Currency translation | (12) | (5) | ||
Total other comprehensive loss, net of tax | (1,195) | 357 | ||
Balance, end of period | (1,878) | (1,491) | (1,878) | (1,491) |
Losses Related to Pension and Other Postretirement Benefits | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance, beginning of period | (71,463) | (71,434) | ||
Other comprehensive income (loss) before reclassifications | (6,962) | 5,415 | ||
Amounts reclassified from accumulated other comprehensive income (loss) to net income | 745 | 683 | ||
Currency translation | 0 | 0 | ||
Total other comprehensive loss, net of tax | (6,217) | 6,098 | ||
Balance, end of period | (77,680) | (65,336) | (77,680) | (65,336) |
Unrealized Holding Gains on Available-for-Sale Securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance, beginning of period | 82 | 61 | ||
Other comprehensive income (loss) before reclassifications | 383 | 985 | ||
Amounts reclassified from accumulated other comprehensive income (loss) to net income | (353) | (956) | ||
Currency translation | 0 | 0 | ||
Total other comprehensive loss, net of tax | 30 | 29 | ||
Balance, end of period | $ 112 | $ 90 | $ 112 | $ 90 |
STOCKHOLDERS' EQUITY - Schedu_2
STOCKHOLDERS' EQUITY - Schedule of Reclassification from Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Amortization of defined benefit pension and other postretirement plan actuarial losses: | ||||
Cost of sales | $ 2,495,773 | $ 2,527,863 | $ 7,476,731 | $ 7,549,367 |
Interest income | (4,698) | (4,241) | (11,481) | (10,665) |
Miscellaneous, net | $ (1,367) | $ (653) | (2,521) | 1,781 |
Total before tax | (592) | 32 | ||
Tax benefit (expense) | 126 | (88) | ||
Net income | (466) | (56) | ||
Amount Reclassified from Accumulated Other Comprehensive Loss | ||||
Amortization of defined benefit pension and other postretirement plan actuarial losses: | ||||
Cost of sales | (74) | (329) | ||
Interest income | 466 | 1,263 | ||
Amount Reclassified from Accumulated Other Comprehensive Loss | Union Plan | ||||
Amortization of defined benefit pension and other postretirement plan actuarial losses: | ||||
Miscellaneous, net | (54) | (36) | ||
Amount Reclassified from Accumulated Other Comprehensive Loss | Legacy GK plans-production employees | ||||
Amortization of defined benefit pension and other postretirement plan actuarial losses: | ||||
Miscellaneous, net | (290) | (270) | ||
Amount Reclassified from Accumulated Other Comprehensive Loss | Legacy GK plans-administrative employees | ||||
Amortization of defined benefit pension and other postretirement plan actuarial losses: | ||||
Miscellaneous, net | $ (640) | $ (596) |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) shares in Thousands | 3 Months Ended | 9 Months Ended | 11 Months Ended | |
Sep. 29, 2019 | Sep. 29, 2019 | Sep. 29, 2019 | Oct. 31, 2018 | |
Equity [Abstract] | ||||
Share repurchase, authorized amount | $ 200,000,000 | |||
Common stock purchased under share repurchase program (in shares) | 132 | |||
Common stock purchased under share repurchase program | $ 0 | $ 2,898,000 | $ 3,100,000 |
INCENTIVE COMPENSATION - Narrat
INCENTIVE COMPENSATION - Narrative (Details) - USD ($) shares in Millions | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | May 01, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Reserved shares of common stock for future issuance under the LTIP (in shares) | 2 | ||
Fair value of awards vested | $ 0 | ||
STIP | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Accrued costs under incentive plan | $ 23,600,000 | ||
JFC LLC LTIP | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Accrued costs under incentive plan | 1,300,000 | ||
MPIP | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Accrued costs under incentive plan | 2,900,000 | ||
PMIP | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Accrued costs under incentive plan | $ 1,600,000 | ||
LTIP | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Reserved shares of common stock for future issuance under the LTIP (in shares) | 3.8 | ||
Equity-Based RSU | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Fair value of awards vested | $ 14,000,000 | ||
Total unrecognized compensation cost related to all nonvested awards | $ 10,000,000 | ||
Weighted average period unrecognized compensation cost is expected to be recognized | 1 year 7 months 13 days | ||
Liability-Based RSU | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Fair value of awards vested | $ 100,000 | ||
Total unrecognized compensation cost related to all nonvested awards | $ 3,200,000 | ||
Weighted average period unrecognized compensation cost is expected to be recognized | 2 years 2 months 4 days |
INCENTIVE COMPENSATION - Schedu
INCENTIVE COMPENSATION - Schedule of Awards (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | ||
Sep. 29, 2019 | Jan. 07, 2019 | Mar. 01, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share price (in dollars per share) | $ 31.31 | $ 16.47 | $ 24.93 |
Awards Granted February 14, 2018 | Restricted Stock Units (RSU) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards Granted (in shares) | 410,000 | ||
Grant Date Fair Value per Award (in dollars per share) | $ 25.59 | ||
Awards Forfeited to Date (in shares) | 0 | ||
Awards Granted March 1, 2018 | Restricted Stock Units (RSU) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards Granted (in shares) | 163,764 | ||
Grant Date Fair Value per Award (in dollars per share) | $ 24.93 | ||
Awards Forfeited to Date (in shares) | 45,755 | ||
Expected compensation cost | $ 2.9 | ||
Awards Granted March 1, 2018 | Restricted Stock Units (RSU) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards Granted (in shares) | 250,351 | ||
Grant Date Fair Value per Award (in dollars per share) | $ 24.93 | ||
Awards Forfeited to Date (in shares) | 151,229 | ||
Expected compensation cost | $ 2.5 | ||
Awards Granted March 1, 2018 | Restricted Stock Units (RSU) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards Granted (in shares) | 33,174 | ||
Grant Date Fair Value per Award (in dollars per share) | $ 24.93 | ||
Milestone Date Fair Value per Award (in dollars per share) | $ 31.31 | ||
Awards Forfeited to Date (in shares) | 0 | ||
Expected compensation cost | $ 1 | ||
Awards Granted May 10, 2018 | Restricted Stock Units (RSU) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards Granted (in shares) | 8,358 | ||
Grant Date Fair Value per Award (in dollars per share) | $ 21.54 | ||
Awards Forfeited to Date (in shares) | 0 | ||
Awards Granted May 10, 2018 | Restricted Stock Units (RSU) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards Granted (in shares) | 2,786 | ||
Grant Date Fair Value per Award (in dollars per share) | $ 21.54 | ||
Milestone Date Fair Value per Award (in dollars per share) | $ 26.86 | ||
Awards Forfeited to Date (in shares) | 0 | ||
Awards Granted, December 18, 2018 | Restricted Stock Units (RSU) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards Granted (in shares) | 262,500 | ||
Grant Date Fair Value per Award (in dollars per share) | $ 16.06 | ||
Awards Forfeited to Date (in shares) | 0 | ||
Awards Granted, January 7, 2019 | Restricted Stock Units (RSU) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards Granted (in shares) | 396,763 | ||
Grant Date Fair Value per Award (in dollars per share) | $ 16.47 | ||
Awards Forfeited to Date (in shares) | 92,075 | ||
Expected compensation cost | $ 5.1 | ||
Awards Granted, January 7, 2019 | Restricted Stock Units (RSU) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards Granted (in shares) | 109,654 | ||
Grant Date Fair Value per Award (in dollars per share) | $ 16.47 | ||
Milestone Date Fair Value per Award (in dollars per share) | $ 31.31 | ||
Awards Forfeited to Date (in shares) | 0 | ||
Expected compensation cost | $ 3.4 | ||
Share price (in dollars per share) | $ 31.31 | ||
Awards Granted April 30, 2019 | Restricted Stock Units (RSU) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards Granted (in shares) | 200,000 | ||
Grant Date Fair Value per Award (in dollars per share) | $ 26.91 | ||
Awards Forfeited to Date (in shares) | 0 | ||
Awards Granted May 24, 2019 | Restricted Stock Units (RSU) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards Granted (in shares) | 11,170 | ||
Grant Date Fair Value per Award (in dollars per share) | $ 27.86 | ||
Awards Forfeited to Date (in shares) | 0 |
INCENTIVE COMPENSATION - Sche_2
INCENTIVE COMPENSATION - Schedule of Compensation Cost and Income Tax Benefit (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Equity-Based RSU | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total cost | $ 2,105 | $ 3,626 | $ 7,322 | $ 9,259 |
Income tax benefit | 512 | 883 | 1,782 | 2,254 |
Net cost | 1,593 | 2,743 | 5,540 | 7,005 |
Equity-Based RSU | Cost of sales | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total cost | 149 | 124 | 311 | 293 |
Equity-Based RSU | Selling, general and administrative expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total cost | 1,956 | 3,502 | 7,011 | 8,966 |
Liability-Based RSU | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Income tax benefit | 55 | 0 | 110 | 0 |
Net cost | 169 | 0 | 342 | 0 |
Liability-Based RSU | Selling, general and administrative expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total cost | $ 224 | $ 0 | $ 452 | $ 0 |
INCENTIVE COMPENSATION - Sche_3
INCENTIVE COMPENSATION - Schedule of Restricted Share and Restricted Stock Unit Activity (Details) - $ / shares shares in Thousands | 9 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
Equity-Based RSU | ||
Number | ||
Outstanding at beginning of period (in shares) | 1,033 | 389 |
Granted (in shares) | 608 | 849 |
Vested (in shares) | (721) | 0 |
Forfeited (in shares) | (227) | (427) |
Outstanding at end of period (in shares) | 693 | 811 |
Weighted Average Grant Date Fair Value | ||
Outstanding at beginning of period (in dollars per share) | $ 22.91 | $ 18.39 |
Granted (in dollars per share) | 20.11 | 25.20 |
Vested (in dollars per share) | 22.08 | 0 |
Forfeited (in dollars per share) | 21.51 | 18.97 |
Outstanding at end of period (in dollars per share) | $ 21.79 | $ 25.22 |
Liability-Based RSU | ||
Number | ||
Outstanding at beginning of period (in shares) | 0 | 0 |
Granted (in shares) | 146 | 0 |
Vested (in shares) | (3) | 0 |
Outstanding at end of period (in shares) | 143 | 0 |
Weighted Average Grant Date Fair Value | ||
Outstanding at beginning of period (in dollars per share) | $ 0 | $ 0 |
Granted (in dollars per share) | 16.25 | 0 |
Vested (in dollars per share) | 26.86 | 0 |
Outstanding at end of period (in dollars per share) | $ 31.31 | $ 0 |
RESTRUCTURING ACTIVITIES - Narr
RESTRUCTURING ACTIVITIES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Sep. 29, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||
Expected restructuring charges | $ 6,783 | ||
40 North Foods | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected restructuring charges | $ 600 | 570 | |
Expected future payments for restructuring | $ 500 | ||
GNP | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected restructuring charges | $ 6,200 | $ 6,213 | |
Expected future payments for restructuring | $ 4,300 |
RESTRUCTURING ACTIVITIES - Esti
RESTRUCTURING ACTIVITIES - Estimated Cost (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 |
Restructuring Cost and Reserve [Line Items] | |||
Total Estimated Amount Expected to be Incurred | $ 6,783 | ||
Employee termination benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Estimated Amount Expected to be Incurred | 4,673 | ||
Inventory adjustments | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Estimated Amount Expected to be Incurred | 472 | ||
Asset impairments | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Estimated Amount Expected to be Incurred | 884 | ||
Other, net | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Estimated Amount Expected to be Incurred | 754 | ||
40 North Foods | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Estimated Amount Expected to be Incurred | 570 | $ 600 | |
40 North Foods | Employee termination benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Estimated Amount Expected to be Incurred | 449 | ||
40 North Foods | Inventory adjustments | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Estimated Amount Expected to be Incurred | 0 | ||
40 North Foods | Asset impairments | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Estimated Amount Expected to be Incurred | 103 | ||
40 North Foods | Other, net | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Estimated Amount Expected to be Incurred | 18 | ||
GNP | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Estimated Amount Expected to be Incurred | 6,213 | $ 6,200 | |
GNP | Employee termination benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Estimated Amount Expected to be Incurred | 4,224 | ||
GNP | Inventory adjustments | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Estimated Amount Expected to be Incurred | 472 | ||
GNP | Asset impairments | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Estimated Amount Expected to be Incurred | 781 | ||
GNP | Other, net | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Estimated Amount Expected to be Incurred | $ 736 |
RESTRUCTURING ACTIVITIES - Cost
RESTRUCTURING ACTIVITIES - Costs Incurred and Cash Outlays (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Expenses (Income) | $ (20) | $ 257 | $ (90) | $ 2,181 |
Cash Outlays (Receipts) | 23 | 62 | ||
Employee termination benefits | GNP | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expenses (Income) | 0 | 0 | ||
Cash Outlays (Receipts) | 15 | 68 | ||
Other, net | 40 North Foods | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expenses (Income) | (20) | (90) | ||
Cash Outlays (Receipts) | $ 8 | $ (6) |
RESTRUCTURING ACTIVITIES - Rest
RESTRUCTURING ACTIVITIES - Restructuring Reserve (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
40 North Foods | |||
Restructuring Reserve [Roll Forward] | |||
Beginning liability or reserve | $ 86 | $ 0 | |
Restructuring charges incurred | 599 | $ 0 | |
Restructuring income recognized | (90) | (35) | |
Cash payments and disposals | (83) | (514) | 0 |
Cash received | 90 | 36 | |
Ending liability or reserve | 3 | 86 | 0 |
40 North Foods | Employee termination benefits | |||
Restructuring Reserve [Roll Forward] | |||
Beginning liability or reserve | 0 | 0 | |
Restructuring charges incurred | 449 | 0 | |
Restructuring income recognized | 0 | 0 | |
Cash payments and disposals | 0 | (449) | 0 |
Cash received | 0 | 0 | |
Ending liability or reserve | 0 | 0 | 0 |
40 North Foods | Other, net | |||
Restructuring Reserve [Roll Forward] | |||
Beginning liability or reserve | 86 | 0 | |
Restructuring charges incurred | 150 | 0 | |
Restructuring income recognized | (90) | (35) | |
Cash payments and disposals | (83) | (65) | 0 |
Cash received | 90 | 36 | |
Ending liability or reserve | 3 | 86 | 0 |
GNP | |||
Restructuring Reserve [Roll Forward] | |||
Beginning liability or reserve | 236 | 2,251 | |
Restructuring charges incurred | 692 | 4,832 | |
Restructuring income recognized | 0 | 0 | |
Cash payments and disposals | (69) | (2,707) | (2,581) |
Cash received | 0 | 0 | |
Ending liability or reserve | 167 | 236 | 2,251 |
GNP | Employee termination benefits | |||
Restructuring Reserve [Roll Forward] | |||
Beginning liability or reserve | 236 | 800 | |
Restructuring charges incurred | 936 | 3,381 | |
Restructuring income recognized | 0 | 0 | |
Cash payments and disposals | (69) | (1,500) | (2,581) |
Cash received | 0 | 0 | |
Ending liability or reserve | 167 | 236 | 800 |
GNP | Inventory adjustments | |||
Restructuring Reserve [Roll Forward] | |||
Beginning liability or reserve | 0 | 699 | |
Restructuring charges incurred | (227) | 699 | |
Restructuring income recognized | 0 | 0 | |
Cash payments and disposals | 0 | (472) | 0 |
Cash received | 0 | 0 | |
Ending liability or reserve | 0 | 0 | 699 |
GNP | Other, net | |||
Restructuring Reserve [Roll Forward] | |||
Beginning liability or reserve | 0 | 752 | |
Restructuring charges incurred | (17) | 752 | |
Restructuring income recognized | 0 | 0 | |
Cash payments and disposals | 0 | (735) | 0 |
Cash received | 0 | 0 | |
Ending liability or reserve | $ 0 | $ 0 | $ 752 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions, R$ in Billions | Oct. 03, 2019USD ($) | Jun. 05, 2017BRL (R$) | Jan. 27, 2017producer | Oct. 13, 2016producerclaim | Oct. 16, 2019claim | Jun. 21, 2019claim | Sep. 29, 2019USD ($) |
In Re Broiler Chicken Antitrust Limitation | |||||||
Loss Contingencies [Line Items] | |||||||
Number of other producers named in lawsuits | producer | 4 | 13 | |||||
Claims filed | claim | 3 | 31 | |||||
Leniency Agreement | |||||||
Loss Contingencies [Line Items] | |||||||
Fines to be paid | R$ | R$ 10.3 | ||||||
Litigation settlement payment period | 25 years | ||||||
Mexican Tax Authority | Tax Year 2009 | Foreign Tax Authority | |||||||
Loss Contingencies [Line Items] | |||||||
Estimate of possible loss | $ 24.3 | ||||||
Mexican Tax Authority | Tax Year 2010 | Foreign Tax Authority | |||||||
Loss Contingencies [Line Items] | |||||||
Estimate of possible loss | $ 16.1 | ||||||
Subsequent Event | Sciabacucchi v. JBS S.A. et al. | |||||||
Loss Contingencies [Line Items] | |||||||
Cash payment from settlement | $ 42.5 | ||||||
Subsequent Event | Jien v. Perdue Farms, Inc. and Earnest v. Perdue Farms, Inc. et al | |||||||
Loss Contingencies [Line Items] | |||||||
Claims filed | claim | 4 |
RELATED PARTY TRANSACTIONS - Sc
RELATED PARTY TRANSACTIONS - Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | Dec. 30, 2018 | |
Related Party Transaction [Line Items] | |||||
Sales to related party | $ 3,949 | $ 4,037 | $ 11,364 | $ 17,201 | |
Cost of goods purchased from related parties | 38,631 | 37,475 | 110,970 | 118,373 | |
Expenditures paid by related party on behalf of Pilgrim's Pride Corporation | 7,919 | 10,147 | 26,041 | 49,412 | |
Expenditures paid on behalf of related parties | 1,675 | 1,938 | 5,654 | 7,046 | |
Accounts receivable from related parties | 1,573 | 1,573 | $ 1,331 | ||
Accounts payable to related parties | 5,157 | 5,157 | 7,269 | ||
JBS USA Food Company | |||||
Related Party Transaction [Line Items] | |||||
Sales to related party | 3,799 | 4,035 | 10,968 | 10,043 | |
Cost of goods purchased from related parties | 31,270 | 29,094 | 94,511 | 90,921 | |
Expenditures paid by related party on behalf of Pilgrim's Pride Corporation | 7,919 | 10,145 | 26,028 | 49,407 | |
Expenditures paid on behalf of related parties | 1,675 | 1,938 | 5,654 | 6,851 | |
Accounts receivable from related parties | 1,491 | 1,491 | 1,236 | ||
Accounts payable to related parties | 4,175 | 4,175 | 5,121 | ||
Inventory in transit | 2,900 | 2,900 | |||
JBS Five Rivers | |||||
Related Party Transaction [Line Items] | |||||
Sales to related party | 0 | 0 | 0 | 7,096 | |
JBS Global (UK) Ltd. | |||||
Related Party Transaction [Line Items] | |||||
Sales to related party | 32 | 0 | 118 | 0 | |
Cost of goods purchased from related parties | 0 | 0 | 0 | 21 | |
JBS Chile Ltda. | |||||
Related Party Transaction [Line Items] | |||||
Sales to related party | 0 | 0 | 132 | 60 | |
Expenditures paid by related party on behalf of Pilgrim's Pride Corporation | 0 | 2 | 6 | 5 | |
Accounts payable to related parties | 0 | 0 | 6 | ||
Combo, Mercado De Congelados | |||||
Related Party Transaction [Line Items] | |||||
Sales to related party | 118 | 2 | 146 | 2 | |
Accounts receivable from related parties | 82 | 82 | 79 | ||
Seara Meats B.V. | |||||
Related Party Transaction [Line Items] | |||||
Cost of goods purchased from related parties | 7,297 | 8,341 | 16,187 | 26,018 | |
Accounts payable to related parties | 927 | 927 | 2,142 | ||
JBS Aves Ltda. | |||||
Related Party Transaction [Line Items] | |||||
Cost of goods purchased from related parties | 0 | 40 | 0 | 1,123 | |
JBS Toledo NV | |||||
Related Party Transaction [Line Items] | |||||
Cost of goods purchased from related parties | 64 | 0 | 272 | 290 | |
Accounts payable to related parties | 55 | 55 | 0 | ||
Seara Alimentos | |||||
Related Party Transaction [Line Items] | |||||
Expenditures paid by related party on behalf of Pilgrim's Pride Corporation | 0 | 0 | 7 | 0 | |
JBS S.A. | |||||
Related Party Transaction [Line Items] | |||||
Expenditures paid on behalf of related parties | 0 | 0 | 0 | 164 | |
Seara International Ltd. | |||||
Related Party Transaction [Line Items] | |||||
Expenditures paid on behalf of related parties | 0 | $ 0 | 0 | $ 31 | |
Accounts receivable from related parties | $ 0 | $ 0 | $ 16 |
SEGMENT REPORTING - Narrative (
SEGMENT REPORTING - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 29, 2019USD ($)segment | Sep. 30, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 3 | |||
Net sales | $ 2,777,970 | $ 2,697,604 | $ 8,345,730 | $ 8,280,995 |
Intersegment Net Sales Transactions Between U.S. And Mexico | Elimination | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 57,200 | $ 23,600 | $ 125,900 | $ 95,700 |
SEGMENT REPORTING - Schedule of
SEGMENT REPORTING - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 2,777,970 | $ 2,697,604 | $ 8,345,730 | $ 8,280,995 |
Operating income | 188,185 | 85,346 | 604,776 | 472,051 |
Interest expense, net of capitalized interest | 32,028 | 35,334 | 99,184 | 125,901 |
Interest income | (4,698) | (4,241) | (11,481) | (10,665) |
Foreign currency transaction losses (gains) | 3,027 | (6,711) | 7,923 | (2,802) |
Miscellaneous, net | 1,367 | 653 | 2,521 | (1,781) |
Income before income taxes | 156,461 | 60,311 | 506,629 | 361,398 |
U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,931,657 | 1,864,169 | 5,732,201 | 5,604,709 |
U.K. and Europe | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 517,531 | 526,722 | 1,568,396 | 1,634,125 |
Mexico | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 328,782 | 306,713 | 1,045,133 | 1,042,161 |
Segments | U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 125,169 | 74,206 | 426,968 | 300,960 |
Segments | U.K. and Europe | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 25,325 | 23,470 | 62,233 | 68,545 |
Segments | Mexico | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 37,667 | (12,355) | 115,503 | 102,512 |
Elimination | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | $ 24 | $ 25 | $ 72 | $ 34 |
SEGMENT REPORTING - Schedule _2
SEGMENT REPORTING - Schedule of Segment Reporting, Goodwill and Assets (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 30, 2018 |
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 2,211,124 | $ 2,161,702 |
U.S. | Segments | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 1,582,318 | 1,506,217 |
U.K. and Europe | Segments | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 345,412 | 359,621 |
Mexico | Segments | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 283,394 | $ 295,864 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - Tulip Limited - Subsequent Event £ in Millions | Oct. 15, 2019GBP (£)employeefacility |
Subsequent Event [Line Items] | |
Percentage of equity acquired | 100.00% |
Consideration | £ | £ 290 |
Number of facilities acquired | facility | 12 |
Number of employees at facilities acquired | employee | 6,100 |