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.

On September 8, 2017, the Company 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.

Information on segments and a reconciliation to income before income taxes are as follows:



	Thirteen Weeks Ended
	April 1, 2018		March 26, 2017
	(In thousands)
U.S.	$	1,841,105	$	1,736,405
U.K. and Europe	544,300		458,848
Mexico	361,273		284,087
Total net sales	$	2,746,678	$	2,479,340



	Thirteen Weeks Ended
	April 1, 2018			March 26, 2017
	(In thousands)
U.S.	$	127,286		$	133,556
U.K. and Europe	21,413			14,372
Mexico	52,870			18,772
Elimination	24			24
Total operating income	201,593			166,724
Interest expense, net of capitalized interest	50,300			19,112
Interest income	(1,590		)	(368		)
Foreign currency transaction losses (gains)	(1,721		)	691
Miscellaneous, net	(1,617		)	(2,843		)
Income before income taxes	$	156,221		$	150,132

In addition to the net sales reported above, the U.S. segment also generated intersegment net sales of $26.5 million and $20.5 million in the thirteen weeks ended April 1, 2018 and March 26, 2017, respectively, from transactions with the Mexico segment. These intersegment net sales were transacted at market prices.

Information on segments for goodwill and total assets are as follows:



	April 1, 2018		December 31, 2017
	(In thousands)
U.S.	$	41,936	$	41,936
U.K. and Europe	865,583		834,346
Mexico	125,607		125,607
Total goodwill	$	1,033,126	$	1,001,889



	April 1, 2018			December 31, 2017
	(In thousands)
U.S.	$	4,784,793		$	4,444,918
U.K. and Europe	2,202,251			2,226,895
Mexico	969,107			934,511
Eliminations^(a)	(1,558,516		)	(1,357,672		)
Total assets	$	6,397,635		$	6,248,652

(a)

Eliminations for the period ended April 1, 2018 include the elimination of the U.S. segment's $191.7 million investment in the Mexico segment, the elimination of $111.1 million in intersegment receivables and payables between the U.S. and Mexico segments and the elimination of the U.S. segment's $1.3 billion investment in the U.K. and Europe segment. Eliminations for the period ended December 31, 2017 include the elimination of the U.S. segment's $191.7 million investment in the Mexico segment and the elimination of $111.1 million in intersegment receivables and payables between the U.S. and Mexico segments and the elimination of the U.S. segment's $1.1 billion investment in the U.K. and Europe segment.