Pilgrim’s has been and, in some cases, continues to be a party to certain transactions with affiliated companies.



	Thirteen Weeks Ended
	April 1, 2018		March 26, 2017
	(In thousands)
Sales to related parties:
JBS USA Food Company^(a)	$	1,529	$	4,563
JBS Five Rivers	7,096		7,122
JBS Global (U.K.) Ltd.	—		19
JBS Chile Ltda	60		—
J&F Investimentos Ltd.	—		104
Total sales to related parties	$	8,685	$	11,789

Cost of goods purchased from related parties:
JBS USA Food Company^(a)	$	27,824	$	27,289
Seara Meats B.V.	4,240		3,361
JBS Aves Ltda	703		—
JBS Toledo	165		—
Total cost of goods purchased from related parties	$	32,932	$	30,650

Expenditures paid by related parties:
JBS USA Food Company^(b)	$	10,499	$	10,949
JBS S.A.	—		1,859
Total expenditures paid by related parties	$	10,499	$	12,808

Expenditures paid on behalf of related parties:
JBS USA Food Company^(b)	$	2,288	$	865
Seara International Ltd.	20		—
Total expenditures paid on behalf of related parties	$	2,308	$	865



	April 1, 2018		December 31, 2017
	(In thousands)
Accounts receivable from related parties:
JBS USA Food Company^(a)	$	1,418	$	2,826
JBS Chile Ltda.	29		108
Seara International Ltd.	23		15
Seara Meats B.V.	1		2
Total accounts receivable from related parties	$	1,471	$	2,951

Accounts payable to related parties:
JBS USA Food Company^(a)	$	3,558	$	440
Seara Meats B.V.	1,844		2,410
JBS Toledo	73		39
Total accounts payable to related parties	$	5,475	$	2,889


(a)	The Company routinely executes transactions to both purchase products from JBS USA Food Company (“JBS USA”) and sell products to them. As of April 1, 2018, approximately $0.8 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 combined 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.