SEGMENT REPORTING

3 Months Ended

Mar. 29, 2020

Segment Reporting [Abstract]

SEGMENT REPORTING

REPORTABLE SEGMENTS

        The Company operates in three reportable segments: U.S., U.K. and Europe, and Mexico. The Company measures segment profit as operating income. Corporate expenses are allocated to the Mexico and U.K. and Europe reportable segments based upon various apportionment methods for specific expenditures incurred related thereto with the remaining amounts allocated to the U.S. reportable segment.

U.S. Reportable Segment

        We conduct separate operations in the continental U.S. and in Puerto Rico. For segment reporting purposes, the Puerto Rico operations are included in the U.S. reportable segment. The chicken products processed by the U.S. reportable segment are sold to foodservice, retail and frozen entrée customers. The segment’s primary distribution is through retailers, foodservice distributors and restaurants.

U.K. and Europe Reportable Segment

The U.K. and Europe reportable segment processes primarily chicken and pork products that are sold to foodservice, retail and frozen entrée customers. The segment’s primary distribution is through retailers, foodservice distributors and restaurants. On October 15, 2019, the Company completed the acquisition of Tulip, a leading integrated pork supplier operating within the U.K., from Danish Crown AmbA.

Mexico Reportable Segment

The chicken products processed by the Mexico reportable segment are sold to foodservice, retail and frozen entrée customers. The segment’s primary distribution is through retailers, foodservice distributors and restaurants.

Additional information regarding reportable segments is as follows:

	Three Months Ended
	March 29, 2020(a)		March 31, 2019(b)
	(In thousands)
Net sales:
U.S.	$	1,926,880	$	1,883,591
U.K. and Europe	822,262		514,962
Mexico	325,786		326,122
Total	$	3,074,928	$	2,724,675

(a)For the three months ended March 29, 2020, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $56.6 million. These sales consisted of fresh products, prepared products, and grain.

(b)For the three months ended March 31 2019, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $34.5 million. These sales consisted of fresh products, prepared products, and grain.

	Three Months Ended
	March 29, 2020		March 31, 2019
	(In thousands)
Reportable segment profit:
U.S.	$	85,052	$	114,840
U.K. and Europe	23,190		12,714
Mexico	(23,880)		9,464
Eliminations	24		24
Total operating income	84,386		137,042
Interest expense, net of capitalized interest	32,688		33,562
Interest income	(1,690)		(3,340)
Foreign currency transaction loss (gain)	(18,385)		2,636
Miscellaneous, net	(34,188)		(357)
Income before income taxes	105,961		104,541
Income tax expense	38,512		20,416
Net income	$	67,449	$	84,125

	March 29, 2020		December 29, 2019
	(In thousands)
Total assets:
U.S.	$	5,539,187	$	5,207,282
U.K. and Europe	2,694,024		2,824,382
Mexico	978,970		1,020,331
Eliminations	(1,960,199)		(1,949,631)
Total assets	$	7,251,982	$	7,102,364

	March 29, 2020		December 29, 2019
	(In thousands)
Long-lived assets(a):
U.S.	$	1,791,303	$	1,789,530
U.K. and Europe	760,211		801,887
Mexico	302,118		306,413
Eliminations	(4,232)		(4,256)
Total long-lived assets	$	2,849,400	$	2,893,574

(a)For this disclosure, we exclude financial instruments, deferred tax assets and intangible assets in accordance with ASC 280-10-50-41, Segment Reporting. Long-lived assets, as used in ASC 280-10-50-41, implies hard assets that cannot be readily removed.