RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2019

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



	Thirteen Weeks Ended
	March 31, 2019		April 1, 2018
	(In thousands)
Sales to related parties:
JBS USA Food Company^(a)	$	3,658	$	1,529
JBS Five Rivers	—		7,096
JBS Global (U.K.) Ltd.	43		—
JBS Chile Ltda.	78		60
Combo, Mercado De Congelados	4		—
Total sales to related parties	$	3,783	$	8,685

Cost of goods purchased from related parties:
JBS USA Food Company^(a)	$	30,413	$	27,824
Seara Meats B.V.	4,521		4,240
JBS Aves Ltda.	—		703
JBS Toledo NV	120		165
Total cost of goods purchased from related parties	$	35,054	$	32,932

Expenditures paid by related parties:
JBS USA Food Company^(b)	$	10,006	$	10,499
JBS Chile Ltda.	5		—
Total expenditures paid by related parties	$	10,011	$	10,499

Expenditures paid on behalf of related parties:
JBS USA Food Company^(b)	$	2,203	$	2,288
Seara International Ltd.	—		20
Total expenditures paid on behalf of related parties	$	2,203	$	2,308



	March 31, 2019		December 30, 2018
	(In thousands)
Accounts receivable from related parties:
JBS USA Food Company^(a)	$	788	$	1,236
JBS Chile Ltda.	20		—
Combo, Mercado de Congelados	—		79
Seara International Ltd.	3		16
JBS Global (U.K.) Ltd.	43		—
Total accounts receivable from related parties	$	854	$	1,331

Accounts payable to related parties:
JBS USA Food Company^(a)	$	4,562	$	5,121
Seara Meats B.V.	930		2,142
JBS Chile Ltda.	—		6
JBS Toledo NV	58		—
Total accounts payable to related parties	$	5,550	$	7,269


(a)	The Company routinely executes transactions to both purchase products from JBS USA Food Company (“JBS USA”) and sell products to them. As of March 31, 2019, approximately $1.7 million of goods purchased from JBS USA were in transit and not reflected on our Condensed and 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.