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 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				Thirty-Nine Weeks Ended
	September 30, 2018		September 24, 2017		September 30, 2018		September 24, 2017
	(In thousands)
U.S.	$	1,864,169	$	1,938,542	$	5,604,709	$	5,557,089
U.K. and Europe	526,722		514,325		1,634,125		1,473,854
Mexico	306,713		341,018		1,042,161		994,568
Total net sales	$	2,697,604	$	2,793,885	$	8,280,995	$	8,025,511



	Thirteen Weeks Ended						Thirty-Nine Weeks Ended
	September 30, 2018			September 24, 2017			September 30, 2018			September 24, 2017
	(In thousands)
U.S.	$	74,206		$	307,962		$	300,960		$	719,121
U.K. and Europe	23,470			18,569			68,545			51,874
Mexico	(12,355		)	45,692			102,512			146,241
Elimination	25			23			34			69
Total operating income	85,346			372,246			472,051			917,305
Interest expense, net of capitalized interest	35,334			24,636			125,901			66,315
Interest income	(4,241		)	(2,128		)	(10,665		)	(3,600		)
Foreign currency transaction gains	(6,711		)	(888		)	(2,802		)	(2,500		)
Miscellaneous, net	653			(1,083		)	(1,781		)	(5,198		)
Income before income taxes	$	60,311		$	351,709		$	361,398		$	862,288

In addition to the net sales reported above, the U.S. segment also generated intersegment net sales of $23.6 million and $21.0 million in the thirteen weeks ended September 30, 2018 and September 24, 2017, respectively, from transactions with the Mexico segment and intersegment net sales of $95.7 million and $66.7 million in the thirty-nine weeks ended September 30, 2018 and September 24, 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:



	September 30, 2018		December 31, 2017
	(In thousands)
U.S.	$	41,936	$	41,936
U.K. and Europe	804,068		834,346
Mexico	125,607		125,607
Total goodwill	$	971,611	$	1,001,889



	September 30, 2018			December 31, 2017
	(In thousands)
U.S.	$	4,573,467		$	4,444,918
U.K. and Europe	2,023,760			2,226,895
Mexico	982,809			934,511
Eliminations^(a)	(1,603,598		)	(1,357,672		)
Total assets	$	5,976,438		$	6,248,652

(a)

Eliminations for the period ended September 30, 2018 include the U.S. segment's eliminations of $302.7 million in intersegment receivables, payables and investment with the Mexico segment and the elimination of the U.S. segment's $1.3 billion in intersegment receivables and investment with the U.K. and Europe segment. Eliminations for the period ended December 31, 2017 include the U.S. segments elimination of $302.8 million in intersegment receivables, payables and investment with the Mexico segment and the elimination of the U.S. segment's $1.1 billion investment in the U.K. and Europe segment.