PUERTO RICO HURRICANE IMPACT

12 Months Ended

Dec. 30, 2018

Unusual or Infrequent Items, or Both [Abstract]

PUERTO RICO HURRICANE IMPACT

PUERTO RICO HURRICANE IMPACT

Hurricane Maria became the strongest storm to make landfall in Puerto Rico in 85 years when it came ashore on September 20, 2017. The Company suffered significant damage because of the storm. Pilgrim’s lost 2.1 million birds on the island, many of the Company’s contract growers lost their poultry houses, and the Company incurred damage at its processing plant, feed mill and hatchery.

Estimated damages incurred by the Company through December 30, 2018 included property and casualty losses related to its facilities totaling $5.2 million and a business interruption loss, resulting primarily from damages suffered by its contract growers and damage to the island’s roadways and power grid, totaling $15.1 million. Pilgrim’s expected to receive insurance proceeds in the amount of $11.9 million related to the business interruption loss and had recorded a receivable from its insurance provider for that amount. The Company learned in the fourth quarter of 2018 that it was not eligible for the recovery because the actual damage to its facilities was not significant. The Company eliminated the receivable and recognized the business interruption loss in Cost of sales in the Consolidated and Combined Statements of Income. This loss was recognized in the U.S. segment.