SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION

On December 15, 2010, the Company sold the 2018 Notes. The 2018 Notes are unsecured obligations of the Company and are fully and unconditionally guaranteed on a senior unsecured basis by Pilgrim’s Pride Corporation of West Virginia, Inc., a wholly owned subsidiary of the Company (the “Guarantor”). In accordance with Rule 3-10 of Regulation S-X promulgated under the Securities Act of 1933, the following condensed consolidating financial statements present the financial position, results of operations and cash flows of the Company (referred to as “Parent” for the purpose of this note only) on a Parent-only basis, the Guarantor on a Guarantor-only basis, the combined non-Guarantor subsidiaries and elimination entries necessary to arrive at the information for the Parent, the Guarantor and non-Guarantor subsidiaries on a consolidated basis. Investments in subsidiaries are accounted for by the Company using the equity method for this presentation.

The tables below present the condensed consolidating balance sheets as of June 29, 2014 and December 29, 2013, as well as the condensed consolidating statements of operations and comprehensive income for the thirteen and twenty-six weeks ended June 29, 2014 and June 30, 2013, and the condensed consolidated statements of cash flows for the twenty-six weeks ended June 29, 2014 based on the guarantor structure.



CONDENSED CONSOLIDATING BALANCE SHEETS June 29, 2014
	Parent			Subsidiary Guarantor		Subsidiary Non-Guarantors		Eliminations/ Adjustments			Consolidation
	(In thousands)
Cash and cash equivalents	$	320,029		$	—	$	207,383	$	—		$	527,412
Trade accounts and other receivables, less allowance for doubtful accounts	353,579			1,670		49,617		—			404,866
Account receivable from JBS USA, LLC	4,376			—		—		—			4,376
Inventories	716,767			21,986		98,580		—			837,333
Income taxes receivable	588			—		—		(588		)	—
Current deferred tax assets	—			9,902		506		(8,181		)	2,227
Prepaid expenses and other current assets	52,195			213		29,658		—			82,066
Assets held for sale	5,415			—		—		—			5,415
Total current assets	1,452,949			33,771		385,744		(8,769		)	1,863,695
Intercompany receivable	(83,226		)	134,884		3		(51,661		)	—
Investment in subsidiaries	531,806			—		—		(531,806		)	—
Deferred tax assets	74,874			—		16,183		(3,513		)	87,544
Other long-lived assets	30,601			—		181,063		(180,000		)	31,664
Identified intangible assets, net	21,501			—		8,153		—			29,654
Property, plant and equipment, net	1,026,019			45,364		107,253		(4,768		)	1,173,868
Total assets	$	3,054,524		$	214,019	$	698,399	$	(780,517	)	$	3,186,425
Accounts payable	318,910			18,895		49,661		—			387,466
Account payable to JBS USA, LLC	4,632			—		—		—			4,632
Accrued expenses and other current liabilities	236,644			36,959		17,256		—			290,859
Income taxes payable	118,768			—		2,666		(588		)	120,846
Current deferred tax liabilities	7,189			—		15,622		(7,189		)	15,622
Current maturities of long-term debt	257			—		—		—			257
Total current liabilities	686,400			55,854		85,205		(7,777		)	819,682
Long-term debt, less current maturities	527,039			—		—		(25,000		)	502,039
Intercompany payable	—			—		51,661		(51,661		)	—
Deferred tax liabilities	—			4,204		301		(4,505		)	—
Other long-term liabilities	86,826			—		3,379		—			90,205
Total liabilities	1,300,265			60,058		140,546		(88,943		)	1,411,926
Total Pilgrim’s Pride Corporation stockholders’ equity	1,754,259			153,961		554,582		(691,574		)	1,771,228
Noncontrolling interest	—			—		3,271		—			3,271
Total stockholders’ equity	1,754,259			153,961		557,853		(691,574		)	1,774,499
Total liabilities and stockholders’ equity	$	3,054,524		$	214,019	$	698,399	$	(780,517	)	$	3,186,425



CONDENSED CONSOLIDATING BALANCE SHEETS December 29, 2013
	Parent			Subsidiary Guarantor		Subsidiary Non-Guarantors			Eliminations/ Adjustments			Consolidation
	(In thousands)
Cash and cash equivalents	$	413,092		$	—	$	95,114		$	—		$	508,206
Investment in available-for-sale securities	96,902			—		—			—			96,902
Trade accounts and other receivables, less allowance for doubtful accounts	327,367			1,380		47,931			—			376,678
Account receivable from JBS USA, LLC	2,388			—		—			—			2,388
Inventories	696,604			20,215		92,013			—			808,832
Income taxes receivable	52,662			—		12,793			(587		)	64,868
Current deferred tax assets	3,213			5,698		506			(7,190		)	2,227
Prepaid expenses and other current assets	34,881			270		26,697			—			61,848
Assets held for sale	6,798			—		235			—			7,033
Total current assets	1,633,907			27,563		275,289			(7,777		)	1,928,982
Intercompany receivable	(64,772		)	114,707		—			(49,935		)	—
Investment in subsidiaries	472,431			—		—			(472,431		)	—
Deferred tax assets	5,995			—		18,924			(5,998		)	18,921
Other long-lived assets	37,282			—		182,881			(180,000		)	40,163
Identified intangible assets, net	23,463			—		9,062			—			32,525
Property, plant and equipment, net	1,009,711			44,643		102,221			(4,764		)	1,151,811
Total assets	$	3,118,017		$	186,913	$	588,377		$	(720,905	)	$	3,172,402
Current maturities of long-term debt	$	410,234		$	—	$	—		$	—		$	410,234
Accounts payable	308,154			12,711		49,495			—			370,360
Account payable to JBS USA, LLC	3,934			—		—			—			3,934
Accrued expenses and other current liabilities	269,062			33,821		(19,528		)	—			283,355
Income taxes payable	—			—		587			(587		)	—
Current deferred tax liabilities	7,190			—		15,515			(7,190		)	15,515
Total current liabilities	998,574			46,532		46,069			(7,777		)	1,083,398
Long-term debt, less current maturities	526,999			—		—			(25,000		)	501,999
Intercompany payable	—			—		49,935			(49,935		)	—
Deferred tax liabilities	13,944			5,698		297			(5,995		)	13,944
Other long-term liabilities	77,228			—		3,231			—			80,459
Total liabilities	1,616,745			52,230		99,532			(88,707		)	1,679,800
Total Pilgrim’s Pride Corporation stockholders’ equity	1,501,272			134,683		486,061			(632,198		)	1,489,818
Noncontrolling interest	—			—		2,784			—			2,784
Total stockholders’ equity	1,501,272			134,683		488,845			(632,198		)	1,492,602
Total liabilities and stockholders' equity	$	3,118,017		$	186,913	$	588,377		$	(720,905	)	$	3,172,402



CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Thirteen Weeks Ended June 29, 2014
	Parent			Subsidiary Guarantor			Subsidiary Non-Guarantors			Eliminations/ Adjustments			Consolidation
	(In thousands)
Net sales	$	1,893,937		$	128,300		$	284,965		$	(120,386	)	$	2,186,816
Cost of sales	1,609,572			120,914			227,241			(120,386		)	1,837,341
Gross profit	284,365			7,386			57,724			—			349,475
Selling, general and administrative expense	42,509			1,141			4,957			—			48,607
Administrative restructuring charges	438			—			—			—			438
Operating income	241,418			6,245			52,767			—			300,430
Interest expense, net	14,474			(47		)	135			—			14,562
Interest income	(145		)	—			(847		)	—			(992		)
Foreign currency transaction losses	(1		)	—			(1,818		)	—			(1,819		)
Miscellaneous, net	(2,634		)	1,942			(365		)	64			(993		)
Income before income taxes	229,724			4,350			55,662			(64		)	289,672
Income tax expense	82,526			1,652			15,049			—			99,227
Income before equity in earnings of consolidated subsidiaries	147,198			2,698			40,613			(64		)	190,445
Equity in earnings of consolidated subsidiaries	43,162			—			—			(43,162		)	—
Net income	190,360			2,698			40,613			(43,226		)	190,445
Less: Net loss attributable to noncontrolling interest	—			—			85			—			85
Net income attributable to Pilgrim’s Pride Corporation	$	190,360		$	2,698		$	40,528		$	(43,226	)	$	190,360



CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Thirteen Weeks Ended June 30, 2013
	Parent			Subsidiary Guarantor		Subsidiary Non-Guarantors			Eliminations/ Adjustments			Consolidation
	(In thousands)
Net sales	$	1,879,632		$	195,758	$	296,699		$	(187,970	)	$	2,184,119
Cost of sales	1,678,181			182,082		229,318			(187,970		)	1,901,611
Gross profit	201,451			13,676		67,381			—			282,508
Selling, general and administrative expense	37,013			1,111		5,975			—			44,099
Administrative restructuring charges	480			—		—			—			480
Operating income	163,958			12,565		61,406			—			237,929
Interest expense, net	22,781			—		184			—			22,965
Interest income	(3		)	—		(704		)	—			(707		)
Foreign currency transaction losses	1			—		9,712			—			9,713
Miscellaneous, net	(2,031		)	1,088		3			223			(717		)
Income before income taxes	143,210			11,477		52,211			(223		)	206,675
Income tax expense (benefit)	(5,969		)	3,885		17,968			—			15,884
Income before equity in earnings of consolidated subsidiaries	149,179			7,592		34,243			(223		)	190,791
Equity in earnings of consolidated subsidiaries	41,526			—		—			(41,526		)	—
Net income	190,705			7,592		34,243			(41,749		)	190,791
Less: Net income attributable to noncontrolling interest	—			—		86			—			86
Net income attributable to Pilgrim’s Pride Corporation	$	190,705		$	7,592	$	34,157		$	(41,749	)	$	190,705



CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Twenty-Six Weeks Ended June 29, 2014
	Parent			Subsidiary Guarantor			Subsidiary Non-Guarantors			Eliminations/ Adjustments			Consolidation
	(In thousands)
Net sales	$	3,647,005		$	240,850		$	542,960		$	(225,934	)	$	4,204,881
Cost of sales	3,206,663			219,767			439,804			(225,934		)	3,640,300
Gross profit	440,342			21,083			103,156			—			564,581
Selling, general and administrative expense	81,084			2,379			10,345			—			93,808
Administrative restructuring charges	2,151			—			—			—			2,151
Operating income	357,107			18,704			92,811			—			468,622
Interest expense, net	33,799			(61		)	297			—			34,035
Interest income	(307		)	—			(1,496		)	—			(1,803		)
Foreign currency transaction losses	2			—			(1,484		)	—			(1,482		)
Miscellaneous, net	(5,275		)	3,587			(443		)	132			(1,999		)
Income before income taxes	328,888			15,178			95,937			(132		)	439,871
Income tax expense	115,332			7,416			28,491			—			151,239
Income before equity in earnings of consolidated subsidiaries	213,556			7,762			67,446			(132		)	288,632
Equity in earnings of consolidated subsidiaries	74,921			—			—			(74,921		)	—
Net income	288,477			7,762			67,446			(75,053		)	288,632
Less: Net income attributable to noncontrolling interest	—			—			155			—			155
Net income attributable to Pilgrim’s Pride Corporation	$	288,477		$	7,762		$	67,291		$	(75,053	)	$	288,477



CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Twenty-Six Weeks Ended June 30, 2013
	Parent			Subsidiary Guarantor		Subsidiary Non-Guarantors			Eliminations/ Adjustments			Consolidation
	(In thousands)
Net sales	$	3,649,426		$	271,418	$	555,898		$	(255,694	)	$	4,221,048
Cost of sales	3,382,979			249,016		443,805			(255,694		)	3,820,106
Gross profit	266,447			22,402		112,093			—			400,942
Selling, general and administrative expense	74,497			2,119		11,475			—			88,091
Administrative restructuring charges	964			—		—			—			964
Operating income	190,986			20,283		100,618			—			311,887
Interest expense, net	47,464			—		322			—			47,786
Interest income	(6		)	—		(917		)	—			(923		)
Foreign currency transaction losses	(9		)	—		2,098			—			2,089
Miscellaneous, net	(3,746		)	2,309		533			182			(722		)
Income before income taxes	147,283			17,974		98,582			(182		)	263,657
Income tax expense (benefit)	(11,840		)	5,854		24,624			—			18,638
Income before equity in earnings of consolidated subsidiaries	159,123			12,120		73,958			(182		)	245,019
Equity in earnings of consolidated subsidiaries	86,164			—		—			(86,164		)	—
Net income	245,287			12,120		73,958			(86,346		)	245,019
Less: Net loss attributable to noncontrolling interest	—			—		(268		)	—			(268		)
Net income attributable to Pilgrim’s Pride Corporation	$	245,287		$	12,120	$	74,226		$	(86,346	)	$	245,287



CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Thirteen Weeks Ended June 29, 2014
	Parent			Subsidiary Guarantor		Subsidiary Non-Guarantors		Eliminations/ Adjustments			Consolidation
	(In thousands)
Net income	190,360			2,698		40,613		(43,226		)	190,445
Other comprehensive loss:
Gain associated with available-for-sale securities, net of tax	7			—		—		—			7
Loss associated with pension and other postretirement benefits, net of tax	(3,629		)	—		—		—			(3,629		)
Total other comprehensive loss, net of tax	(3,622		)	—		—		—			(3,622		)
Comprehensive income	186,738			2,698		40,613		(43,226		)	186,823
Less: Comprehensive income attributable to noncontrolling interests	—			—		85		—			85
Comprehensive income attributable to Pilgrim's Pride Corporation	$	186,738		$	2,698	$	40,528	$	(43,226	)	$	186,738



CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Thirteen Weeks Ended June 30, 2013
	Parent		Subsidiary Guarantor		Subsidiary Non-Guarantors		Eliminations/ Adjustments			Consolidation
	(In thousands)
Net income	$	190,705	$	7,592	$	34,243	$	(41,749	)	$	190,791
Other comprehensive income:
Gains associated with pension and other postretirement benefits, net of tax	25,391		—		—		—			25,391
Total other comprehensive income, net of tax	25,391		—		—		—			25,391
Comprehensive income	216,096		7,592		34,243		(41,749		)	216,182
Less: Comprehensive income attributable to noncontrolling interests	—		—		86		—			86
Comprehensive income attributable to Pilgrim's Pride Corporation	$	216,096	$	7,592	$	34,157	$	(41,749	)	$	216,096



CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Twenty-Six Weeks Ended June 29, 2014
	Parent			Subsidiary Guarantor		Subsidiary Non-Guarantors		Eliminations/ Adjustments			Consolidation
	(In thousands)
Net income	288,477			7,762		67,446		(75,053		)	288,632
Other comprehensive loss:
Loss associated with available-for-sale securities, net of tax	(29		)	—		—		—			(29		)
Loss associated with pension and other postretirement benefits, net of tax	(9,415		)	—		—		—			(9,415		)
Total other comprehensive loss, net of tax	(9,444		)	—		—		—			(9,444		)
Comprehensive income	279,033			7,762		67,446		(75,053		)	279,188
Less: Comprehensive income attributable to noncontrolling interests	—			—		155		—			155
Comprehensive income attributable to Pilgrim's Pride Corporation	$	279,033		$	7,762	$	67,291	$	(75,053	)	$	279,033



CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Twenty-Six Weeks Ended June 30, 2013
	Parent		Subsidiary Guarantor		Subsidiary Non-Guarantors			Eliminations/ Adjustments			Consolidation
	(In thousands)
Net income	$	245,287	$	12,120	$	73,958		$	(86,346	)	$	245,019
Other comprehensive income:
Gains associated with pension and other postretirement benefits, net of tax	35,801		—		—			—			35,801
Total other comprehensive income, net of tax	35,801		—		—			—			35,801
Comprehensive income	281,088		12,120		73,958			(86,346		)	280,820
Less: Comprehensive loss attributable to noncontrolling interests	—		—		(268		)	—			(268		)
Comprehensive income attributable to Pilgrim's Pride Corporation	$	281,088	$	12,120	$	74,226		$	(86,346	)	$	281,088



CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Twenty-Six Weeks Ended June 29, 2014
	Parent			Subsidiary Guarantor			Subsidiary Non-Guarantors			Eliminations/ Adjustments			Consolidation
	(In thousands)
Cash provided by operating activities	$	294,534		$	3,597		$	118,192		$	(132	)	$	416,191
Cash flows from investing activities:
Acquisitions of property, plant and equipment	(75,982		)	(3,604		)	(11,228		)	—			(90,814		)
Purchases of investment securities	(37,000		)	—			—			—			(37,000		)
Proceeds from sale or maturity of investment securities	133,950			—			—			—			133,950
Proceeds from property sales and disposals	1,600			7			2,750			—			4,357
Cash provided by (used in) investing activities	22,568			(3,597		)	(8,478		)	—			10,493
Cash flows from financing activities:
Payments on long-term debt	(410,165		)	—			—			—			(410,165		)
Proceeds from sale of subsidiary common stock	—			—			332			—			332
Other financing activities	—			—			(132		)	132			—
Cash provided by (used in) financing activities	(410,165		)	—			200			132			(409,833		)
Effect of exchange rate changes on cash and cash equivalents	—			—			2,355			—			2,355
Increase (decrease) in cash and cash equivalents	(93,063		)	—			112,269			—			19,206
Cash and cash equivalents, beginning of period	413,092			—			95,114			—			508,206
Cash and cash equivalents, end of period	$	320,029		$	—		$	207,383		$	—		$	527,412



CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Twenty-Six Weeks Ended June 30, 2013
	Parent			Subsidiary Guarantor			Subsidiary Non-Guarantors			Eliminations/ Adjustments			Consolidation
	(In thousands)
Cash provided by operating activities	$	299,035		$	2,747		$	9,327		$	(182	)	$	310,927
Cash flows from investing activities:
Acquisitions of property, plant and equipment	(40,170		)	(2,640		)	(6,159		)	—			(48,969		)
Proceeds from property sales and disposals	1,995			5			883			—			2,883
Cash used in investing activities	(38,175		)	(2,635		)	(5,276		)	—			(46,086		)
Cash flows from financing activities:
Proceeds from long-term debt	505,600			—			—			—			505,600
Payments on long-term debt	(758,251		)	—			—			—			(758,251		)
Other financing activities	—			—			(182		)	182			—
Cash used in financing activities	(252,651		)	—			(182		)	182			(252,651		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(2,139		)	—			(2,139		)
Increase in cash and cash equivalents	8,209			112			1,730			—			10,051
Cash and cash equivalents, beginning of period	27,657			—			40,523			—			68,180
Cash and cash equivalents, end of period	$	35,866		$	112		$	42,253		$	—		$	78,231