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



	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	September 30, 2018		September 24, 2017		September 30, 2018		September 24, 2017
	(In thousands)
Sales to related parties:
JBS USA Food Company^(a)	$	4,035	$	4,221	$	10,043	$	13,618
JBS Five Rivers Cattle Feeding, LLC	—		7,271		7,096		23,787
JBS Chile Ltda	—		—		60		—
J&F Investimentos Ltd.	—		—		—		104
JBS Global (U.K.) Ltd.	—		—		—		19,217
Seara International Ltd.	—		2		—		2
Combo Mercado de Congelados	2		—		2		—
Total sales to related parties	$	4,037	$	11,494	$	17,201	$	56,728

Cost of goods purchased from related parties:
JBS USA Food Company^(a)	$	29,094	$	31,161	$	90,921	$	83,444
Seara Meats B.V.	8,341		3,343		26,018		9,719
JBS Aves Ltda	40		—		1,123		—
JBS Toledo NV	—		149		290		190
JBS Global (UK) Ltd.	—		—		21		—
Total cost of goods purchased from related parties	$	37,475	$	34,653	$	118,373	$	93,353

Expenditures paid by related parties:
JBS USA Food Company^(b)	$	10,145	$	10,856	$	49,407	$	29,127
JBS S.A.	—		—		—		3,824
JBS Chile Ltda	2		—		5		—
Total expenditures paid by related parties	$	10,147	$	10,856	$	49,412	$	32,951

Expenditures paid on behalf of related parties:
JBS USA Food Company^(b)	$	1,938	$	1,516	$	6,851	$	3,976
Seara Meats B.V.	—		—		—		4
JBS S.A.	—		—		164		5
Seara International Ltd.	—		—		31		80
Total expenditures paid on behalf of related parties	$	1,938	$	1,516	$	7,046	$	4,065



	September 30, 2018		December 31, 2017
	(In thousands)
Accounts receivable from related parties:
JBS USA Food Company^(a)	$	614	$	2,826
JBS Chile Ltda.	35		108
Seara International Ltd.	3		15
Seara Meats B.V.	—		2
Total accounts receivable from related parties	$	652	$	2,951

Accounts payable to related parties:
JBS USA Food Company^(a)	$	4,039	$	440
Seara Meats B.V.	2,726		2,410
JBS Toledo NV	30		39
Total accounts payable to related parties	$	6,795	$	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 September 30, 2018, approximately $2.2 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.