BUSINESS SEGMENT AND GEOGRAPHIC REPORTING

We operate in three reportable business segments, U.S., U.K. and Europe, and Mexico. We measure 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.

On September 8, 2017, we acquired Moy Park, one of the top-ten food companies in the U.K., Northern Ireland's largest private sector business and one of Europe's leading poultry producers, from JBS S.A. in a common-control transaction. Moy Park's results from operations subsequent to the common-control date of September 30, 2015 comprise the U.K. and Europe segment.

On January 6, 2017, the Company acquired GNP, a vertically integrated poultry business with locations in Minnesota and Wisconsin. GNP's results from operations subsequent to the acquisition date are included in the U.S. segment.

Net sales to customers by customer location and long-lived assets are as follows:



	December 31, 2017		December 25, 2016		December 28, 2015
	(In thousands)
Net sales
United States	$	7,443,222	$	6,671,403	$	7,143,354
U.K. and Europe	1,996,319		1,947,441		572,568
Mexico	1,328,322		1,259,720		1,036,750
Total	$	10,767,863	$	9,878,564	$	8,752,672



	December 31, 2017			December 25, 2016			December 28, 2015
	(In thousands)
Operating income
United States	$	841,492		$	572,558		$	949,610
U.K. and Europe	77,105			78,572			16,241
Mexico	153,631			140,857			95,186
Elimination	94			95			95
Total operating income	$	1,072,322		$	792,082		$	1,061,132
Interest expense, net of capitalized interest	107,183			75,636			46,549
Interest income	(7,730		)	(2,301		)	(3,828		)
Foreign currency transaction gain	(2,659		)	4,055			26,148
Miscellaneous, net	(6,538		)	(9,344		)	(9,061		)
Income before income taxes	$	982,066		$	724,036		$	1,001,324



	December 31, 2017		December 25, 2016		December 28, 2015
	(In thousands)
Net sales to customers by customer location:
United States	$	7,452,758	$	6,460,787	$	6,722,455
Mexico	1,019,170		1,180,947		1,116,455
Asia	136,144		101,209		120,724
Canada, Caribbean and Central America	114,543		152,516		176,396
Africa	29,905		17,117		16,493
Europe	2,000,843		1,952,192		584,651
South America	13,279		11,955		12,114
Pacific	1,221		1,841		3,384
Total	$	10,767,863	$	9,878,564	$	8,752,672



	December 31, 2017		December 25, 2016
	(In thousands)
Long-lived assets^(a):
United States	$	1,437,220	$	1,220,263
U.K. and Europe	368,521		328,045
Mexico	289,406		285,677
Total	$	2,095,147	$	1,833,985


(a)	For this disclosure, we exclude financial instruments, deferred tax assets and intangible assets in accordance with 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.

The following table sets forth, for the periods beginning with 2015, net sales attributable to each of our primary product lines and markets served with those products. We based the table on our internal sales reports and their classification of product types.



	2017		2016		2015
	(In thousands)
U.S. chicken:
Fresh chicken	$	5,700,503	$	4,627,137	$	4,701,943
Prepared chicken	950,378		1,269,010		1,672,693
Export and other chicken	213,595		313,827		358,877
Total U.S. chicken	6,864,476		6,209,974		6,733,513
U.K. and Europe chicken:
Fresh chicken	846,575		811,127		240,815
Prepared chicken	792,284		794,880		241,589
Export and other chicken	318,699		283,276		67,903
Total U.K. and Europe chicken	1,957,558		1,889,283		550,307
Mexico chicken	1,303,656		1,245,644		1,016,200
Total chicken	10,125,690		9,344,901		8,300,020
Other products:
U.S.	578,746		461,429		409,841
U.K. and Europe	38,761		58,158		22,261
Mexico	24,666		14,076		20,550
Total other products	642,173		533,663		452,652
Total net sales	$	10,767,863	$	9,878,564	$	8,752,672