RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 29, 2019

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 29, 2019		September 30, 2018		September 29, 2019		September 30, 2018
	(In thousands)
Sales to related parties:
JBS USA Food Company^(a)	$	3,799	$	4,035	$	10,968	$	10,043
JBS Five Rivers	—		—		—		7,096
JBS Global (UK) Ltd.	32		—		118		—
JBS Chile Ltda.	—		—		132		60
Combo, Mercado De Congelados	118		2		146		2
Total sales to related parties	$	3,949	$	4,037	$	11,364	$	17,201

Cost of goods purchased from related parties:
JBS USA Food Company^(a)	$	31,270	$	29,094	$	94,511	$	90,921
Seara Meats B.V.	7,297		8,341		16,187		26,018
JBS Aves Ltda.	—		40		—		1,123
JBS Toledo NV	64		—		272		290
JBS Global (UK) Ltd.	—		—		—		21
Total cost of goods purchased from related parties	$	38,631	$	37,475	$	110,970	$	118,373

Expenditures paid by related parties:
JBS USA Food Company^(b)	$	7,919	$	10,145	$	26,028	$	49,407
Seara Alimentos	—		—		7		—
JBS Chile Ltda.	—		2		6		5
Total expenditures paid by related parties	$	7,919	$	10,147	$	26,041	$	49,412

Expenditures paid on behalf of related parties:
JBS USA Food Company^(b)	$	1,675	$	1,938	$	5,654	$	6,851
JBS S.A.	—		—		—		164
Seara International Ltd.	—		—		—		31
Total expenditures paid on behalf of related parties	$	1,675	$	1,938	$	5,654	$	7,046



	September 29, 2019		December 30, 2018
	(In thousands)
Accounts receivable from related parties:
JBS USA Food Company^(a)	$	1,491	$	1,236
Combo, Mercado de Congelados	82		79
Seara International Ltd.	—		16
Total accounts receivable from related parties	$	1,573	$	1,331

Accounts payable to related parties:
JBS USA Food Company^(a)	$	4,175	$	5,121
Seara Meats B.V.	927		2,142
JBS Toledo NV	55		—
JBS Chile Ltda.	—		6
Total accounts payable to related parties	$	5,157	$	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 September 29, 2019, approximately $2.9 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 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.