The Company enters into transactions in the normal course of business with affiliates of JBS S.A. Company management has analyzed the terms of all contracts executed with related parties and believes that they are substantially similar to, and contain terms no less favorable to us than, those obtainable from unaffiliated parties. The following table presents the impact of these transactions on the Condensed Consolidated Statements of Income:



	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 28, 2015		June 29, 2014		June 28, 2015		June 29, 2014
	(In thousands)
JBS USA:
Letter of credit fees^(a)	$	317	$	335	$	634	$	670
JBS USA, LLC:
Purchases from JBS USA, LLC^(b)	26,714		28,350		54,294		53,339
Expenditures paid by JBS USA, LLC on behalf of Pilgrim’s Pride Corporation^(c)	8,389		6,456		16,968		18,914
Sales to JBS USA, LLC^(b)	5,377		18,116		12,245		33,471
Expenditures paid by Pilgrim’s Pride Corporation on behalf of JBS USA, LLC^(c)	315		773		2,029		1,306
JBS Chile Ltda.:
Sales to JBS Chile Ltda.	69		—		234		—

(a)

Beginning on October 26, 2011, JBS USA arranged for letters of credit to be issued on its account in the amount of $56.5 million to an insurance company on our behalf in order to allow that insurance company to return cash it held as collateral against potential liability claims. We agreed to reimburse JBS USA up to $56.5 million for potential draws upon these letters of credit. We reimburse JBS USA for the letter of credit costs we would have otherwise incurred under our credit facilities. During 2015, we have paid JBS USA $0.5 million for letter of credit costs. As of June 28, 2015, the Company has accrued an obligation of $0.2 million to reimburse JBS USA for letter of credit costs incurred on its behalf.

(b)

We routinely execute transactions to both purchase products from JBS USA, LLC and sell products to them. As of June 28, 2015 and December 28, 2014, the outstanding payable to JBS USA, LLC was $5.1 million and $4.8 million, respectively. As of June 28, 2015 and December 28, 2014, the outstanding receivable from JBS USA, LLC was $1.1 million and $1.4 million, respectively. As of June 28, 2015, approximately $4.6 million of goods from JBS USA, LLC were in transit and not reflected on our Condensed Consolidated Balance Sheet.

(c)

On January 19, 2010, the Company entered into an agreement with JBS USA, LLC in order to allocate costs associated with JBS USA, LLC's procurement of SAP licenses and maintenance services for its combined companies. Under this agreement, the fees associated with procuring SAP licenses and maintenance services are allocated between the Company and JBS USA, LLC 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. On January 1, 2014, the Company also entered into an agreement with JBS USA, LLC in order 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, LLC on behalf of the Company will be reimbursed by the Company and expenditures paid by the Company on behalf of JBS USA, LLC will be reimbursed by JBS USA, LLC. This agreement expires on December 31, 2016.