RELATED PARTY TRANSACTIONS (Tables)

12 Months Ended

Dec. 29, 2019

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



	2019		2018		2017
	(In thousands)
Sales to related parties:
JBS USA Food Company^(a)	$	14,108	$	13,843	$	15,289
JBS Five Rivers	—		7,096		31,004
JBS Global (UK) Ltd.	141		—		44
JBS Chile Ltda.	482		60		178
J&F Investimentos Ltd.	—		—		104
Combo, Mercado de Congelados	207		159		—
Seara International Ltd.	—		—		104
Total sales to related parties	$	14,938	$	21,158	$	46,723



	2019		2018			2017
	(In thousands)
Cost of goods purchased from related parties:
JBS USA Food Company^(a)	$	134,790	$	117,596		$	101,685
Seara Meats B.V.	22,797		36,223			13,949
JBS Aves Ltda.	—		1,123			—
Seara Internatonal Ltd.	—		—			11,236
JBS Toledo NV	307		445			231
JBS Global (UK) Ltd.	170		21			—
Total cost of goods purchased from related parties	$	158,064	$	155,408		$	127,101

Expenditures paid by related parties:
JBS USA Food Company^(b)	$	32,161	$	62,189		$	40,313
JBS S.A.	—		—			3,777
JBS Chile Ltda.	6		33			—
Seara Food Europe Holdings	77		—			—
Seara Alimentos	—		—			64
Total expenditures paid by related parties	$	32,244	$	62,222		$	44,154

Expenditures paid on behalf of related parties:
JBS USA Food Company^(b)	$	9,103	$	9,192		$	5,376
JBS S.A.	—		170			5
Seara International Ltd.	—		45			—
Seara Meats B.V.	—		—			12
Rigamonti Salumificio S.P.A.	—		—			—
Total expenditures paid on behalf of related parties	$	9,103	$	9,407		$	5,393

Other related party transactions:
Capital contribution (distribution) under tax sharing agreement^(c)	$	—	$	(525	)	$	5,558
Total other related party transactions	$	—	$	(525	)	$	5,558



	December 29, 2019		December 30, 2018
	(In thousands)
Accounts receivable from related parties:
JBS USA Food Company^(a)	$	643	$	1,236
JBS Chile Ltda.	301		—
Combo, Mercado de Congelados	—		79
Seara International Ltda.	—		16
Total accounts receivable from related parties	$	944	$	1,331

Accounts payable to related parties:
JBS USA Food Company^(a)	$	2,826	$	5,121
JBS Global UK Ltd	5		—
Seara Meats B.V.	988		2,142
JBS Chile Ltda.	—		6
Total accounts payable to related parties	$	3,819	$	7,269

(a)

The Company routinely execute transactions to both purchase products from JBS USA Food Company (“JBS USA”) and sell products to them. As of December 29, 2019 and December 30, 2018, the outstanding payable to JBS USA was $2.8 million and $5.1 million, respectively. As of December 29, 2019 and December 30, 2018, the outstanding receivable from JBS USA was $0.6 million and $1.2 million, respectively. As of December 29, 2019, approximately $0.9 million of goods from JBS USA were in transit and not reflected on our Consolidated Balance Sheets.

(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 both 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, 2020.

(c)

The Company entered into a tax sharing agreement during 2014 with JBS USA Holdings effective for tax years starting in 2010. The net tax payable for tax year 2018 was accrued in 2018 and was paid in 2019. The net tax receivable for tax year 2017 was accrued in 2017 and was paid in 2018. The net tax receivable for tax year 2016 was accrued in 2016 and paid in January 2017.