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PENSION AND OTHER POSTRETIREMENT BENEFITS
 6 Months Ended
Jun. 28, 2020
Retirement Benefits [Abstract]  
PENSION AND OTHER POSTRETIREMENT BENEFITS PENSION AND OTHER POSTRETIREMENT BENEFITS
        The Company sponsors programs that provide retirement benefits to most of its employees. These programs include qualified defined benefit pension plans such as the Pilgrim's Pride Retirement Plan for Union Employees (the “Union Plan”) the Pilgrim's Pride Pension Plan for Legacy Gold Kist Employees (the “GK Pension Plan”), the Tulip Limited Pension Plan and the Geo Adams Group Pension Fund (together, the “U.K. Plans”), nonqualified defined benefit retirement plans, a defined benefit postretirement life insurance plan and defined contribution retirement savings plan. Expenses recognized under all retirement plans totaled $3.5 million and $5.7 million in the three months ended June 28, 2020 and June 30, 2019, respectively, and $7.1 million and $9.6 million in the six months ended June 28, 2020 and June 30, 2019, respectively.
Defined Benefit Plans Obligations and Assets
        The change in benefit obligation, change in fair value of plan assets, funded status and amounts recognized in the Condensed Consolidated Balance Sheets for the defined benefit plans were as follows:
 Six Months Ended June 28, 2020Six Months Ended June 30, 2019
Pension BenefitsOther BenefitsPension BenefitsOther Benefits
Change in projected benefit obligation:(In thousands)
Projected benefit obligation, beginning of period$369,066  $1,527  $157,619  $1,462  
Interest cost4,050  18  2,934  26  
Actuarial losses28,806  64  13,734  96  
Benefits paid(9,965) (80) (3,020) (74) 
Curtailments and settlements—  —  (5,718) —  
Other11  —  —  —  
Currency translation gain(11,001) —  —  —  
Projected benefit obligation, end of period$380,967  $1,529  $165,549  $1,510  
 Six Months Ended June 28, 2020Six Months Ended June 30, 2019
 Pension BenefitsOther BenefitsPension BenefitsOther Benefits
Change in plan assets:(In thousands)
Fair value of plan assets, beginning of period$294,589  $—  $102,414  $—  
Actual return on plan assets(9,948) —  12,504  —  
Contributions by employer5,173  80  3,924  74  
Benefits paid(9,965) (80) (3,020) (74) 
Curtailments and settlements—  —  (5,718) —  
Other(526) —  —  —  
Currency translation loss(9,849) —  —  —  
Fair value of plan assets, end of period$269,474  $—  $110,104  $—  

 June 28, 2020December 29, 2019
 Pension BenefitsOther BenefitsPension BenefitsOther Benefits
Funded status:(In thousands)
Unfunded benefit obligation, end of period$(111,493) $(1,529) $(74,477) $(1,527) 

 June 28, 2020December 29, 2019
 Pension BenefitsOther BenefitsPension BenefitsOther Benefits
Amounts recognized in the Condensed Consolidated Balance Sheets at end of period:(In thousands)
Current liability$(9,356) $(157) $(14,967) $(158) 
Long-term liability(102,137) (1,372) (59,510) (1,369) 
Recognized liability$(111,493) $(1,529) $(74,477) $(1,527) 

June 28, 2020December 29, 2019
Pension BenefitsOther BenefitsPension BenefitsOther Benefits
Amounts recognized in accumulated other
comprehensive loss at end of period:		(In thousands)
Net actuarial loss$102,530  $155  $58,239  $91  
        The accumulated benefit obligation for the Company's defined benefit pension plans was $381.0 million and $369.1 million at June 28, 2020 and December 29, 2019, respectively. Each of the Company's defined benefit pension plans had accumulated benefit obligations that exceeded the fair value of plan assets at both June 28, 2020 and December 29, 2019. As of June 28, 2020, the weighted average duration of the Company's defined benefit pension obligation is 27.81 years.
Net Periodic Benefit Costs
        Net defined benefit pension and other postretirement costs included the following components:
Three Months Ended June 28, 2020Three Months Ended June 30, 2019Six Months Ended June 28, 2020Six Months Ended June 30, 2019
Pension BenefitsOther BenefitsPension BenefitsOther BenefitsPension BenefitsOther BenefitsPension BenefitsOther Benefits
(In thousands)
Interest cost$2,011  $9  $1,467  $13  $4,050  $18  $2,934  $26  
Estimated return on plan assets(3,215) —  (1,349) —  (6,498) —  (2,698) —  
Settlement loss—  —  1,930  —  —  —  1,930  —  
Other93  —  —  —  537  —  —  —  
Amortization of net loss375  —  328  —  751  —  656  —  
Net costs$(736) $9  $2,376  $13  $(1,160) $18  $2,822  $26  

Economic Assumptions
        The weighted average assumptions used in determining pension and other postretirement plan information were as follows:
 June 28, 2020December 29, 2019
 Pension BenefitsOther BenefitsPension BenefitsOther Benefits
Assumptions used to measure benefit obligation at end
of period:
Discount rate2.02 %2.19 %2.56 %2.77 %

Six Months Ended June 28, 2020Six Months Ended June 30, 2019
Pension BenefitsOther BenefitsPension BenefitsOther Benefits
Assumptions used to measure net pension and other
postretirement cost:
Discount rate2.57 %2.77 %4.40 %4.07 %
Expected return on plan assets4.67 %NA5.50 %NA
         The discount rate represents the interest rate used to determine the present value of future cash flows currently expected to be required to settle the Company's pension and other benefit obligations. The weighted average discount rate for each plan was established by comparing the projection of expected benefit payments to the AA Above Median yield curve. The expected benefit payments were discounted by each corresponding discount rate on the yield curve. For payments beyond 30 years, the Company extended the curve assuming the discount rate derived in year 30 is extended to the end of the plan's payment expectations. Once the present value of the string of benefit payments was established, the Company determined the single rate on the yield curve, that when applied to all obligations of the plan, would exactly match the previously determined present value. As part of the evaluation of pension and other postretirement assumptions, the Company applied assumptions for mortality that incorporate generational white and blue collar mortality trends. In determining its benefit obligations, the Company used generational tables that take into consideration increases in plan participant longevity. As of June 28, 2020 and December 29, 2019, all pension and other postretirement benefit plans used variations of the RP2014 mortality table and the MP2015 mortality improvement scale. As of June 28, 2020 and December 29, 2019, the U.K. Plans used variations of the AxC00 mortality table in combination with the CMI_2018 Sk=7.5 mortality improvement scale for pre-retirement employees and the S3PxA mortality table in combination with the CMI_2018 Sk=7.5 mortality improvement scale for postretirement employees.
        The sensitivity of the projected benefit obligation for pension benefits to changes in the discount rate is set out below. The impact of a change in the discount rate of 0.25% on the projected benefit obligation for other benefits is less than $1,000. This sensitivity analysis is based on changing one assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to variations in significant actuarial assumptions, the same method (present value of the defined benefit
obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as for calculating the liability recognized in the Condensed Consolidated Balance Sheets.
Increase in Discount Rate of 0.25%Decrease in Discount Rate of 0.25%
(In thousands)
Impact on projected benefit obligation for pension benefits$(10,198) $10,736  
        The expected rate of return on plan assets was primarily based on the determination of an expected return and behaviors for each plan's current asset portfolio that the Company believes are likely to prevail over long periods. This determination was made using assumptions for return and volatility of the portfolio. Asset class assumptions were set using a combination of empirical and forward-looking analysis. To the extent historical results were affected by unsustainable trends or events, the effects of those trends or events were quantified and removed. The Company also considered anticipated asset allocations, investment strategies and the views of various investment professionals when developing this rate.
Plan Assets
        The following table reflects the pension plans’ actual asset allocations:
June 28, 2020December 29, 2019
Cash and cash equivalents1 %4 %
Pooled separate accounts for the Union Plan(a):
Equity securities2 %2 %
Fixed income securities2 %2 %
Pooled separate accounts and common collective trust funds for the GK Pension Plan(a):
Equity securities19 %20 %
Fixed income securities13 %12 %
Real estate2 %2 %
Pooled separate accounts for the UK Plans(a):
Equity securities33 %40 %
Fixed income securities21 %18 %
Real estate7 %— %
Total assets100 %100 %
(a) Pooled separate accounts (“PSAs”) and common collective trust funds (“CCTs”) are two of the most common types of alternative vehicles in which benefit plans invest. These investments are pooled funds that look like mutual funds, but they are not registered with the SEC. Often times, they will be invested in mutual funds or other marketable securities, but the unit price generally will be different from the value of the underlying securities because the fund may also hold cash for liquidity purposes, and the fees imposed by the fund are deducted from the fund value rather than charged separately to investors. Some PSAs and CCTs have no restrictions as to their investment strategy and can invest in riskier investments, such as derivatives, hedge funds, private equity funds, or similar investments.
        Absent regulatory or statutory limitations, the target asset allocation for the investment of pension assets in the PSAs for the Union Plan is 50% in each of fixed income securities and equity securities, the target asset allocation for the investment of pension assets in the PSAs and/or CCTs for the GK Pension Plan is 35% in fixed income securities, 60% in equity securities and 5% in real estate and investment of pension assets in the PSAs for the U.K. Plans is 28% in fixed income securities, 62% in equity securities and 10% in real estate. The plans only invest in fixed income and equity instruments for which there is a readily available public market. The Company develops its expected long-term rate of return assumptions based on the historical rates of returns for equity and fixed income securities of the type in which its plans invest.
        The fair value measurements of plan assets fell into the following levels of the fair value hierarchy as of June 28, 2020 and December 29, 2019:
June 28, 2020December 29, 2019
Level 1(a)
Level 2(b)
Level 3(c)
Total
Level 1(a)
Level 2(b)
Level 3(c)
Total
 (In thousands)
Cash and cash equivalents$3,958  $—  $—  $3,958  $11,582  $—  $—  $11,582  
PSAs for the Union Plan:
Large U.S. equity funds(d)
—  2,914  —  2,914  —  3,071  —  3,071  
Small/Mid U.S. equity funds(e)
—  311  —  311  —  372  —  372  
International equity funds(f)
—  1,646  —  1,646  —  1,878  —  1,878  
Fixed income funds(g)
—  4,385  —  4,385  —  4,452  —  4,452  
PSAs and CCTs for the GK Pension Plan:
Large U.S. equity funds(d)
—  25,181  —  25,181  —  20,378  —  20,378  
Small/Mid U.S. equity funds(e)
—  13,139  —  13,139  —  12,495  —  12,495  
International equity funds(f)
—  13,459  —  13,459  —  25,149  —  25,149  
Fixed income funds(g)
—  35,799  —  35,799  —  35,627  —  35,627  
Real estate(h)
—  5,749  —  5,749  —  5,613  —  5,613  
PSAs for the UK Plans:
Large U.S. equity funds(d)
—  13,213  —  13,213  —  17,756  —  17,756  
International equity funds(f)
—  78,512  —  78,512  —  102,494  —  102,494  
Fixed income funds(g)
—  55,827  —  55,827  —  53,722  —  53,722  
Real estate(h)
—  15,381  —  15,381  —  —  —  —  
Total assets$3,958  $265,516  $—  $269,474  $11,582  $283,007  $—  $294,589  
(a) Unadjusted quoted prices in active markets for identical assets are used to determine fair value.
(b) Quoted prices in active markets for similar assets and inputs that are observable for the asset are used to determine fair value.
(c) Unobservable inputs, such as discounted cash flow models or valuations, are used to determine fair value.
(d) This category is comprised of investment options that invest in stocks, or shares of ownership, in large, well-established U.S. companies. These investment options typically carry more risk than fixed income options but have the potential for higher returns over longer time periods.
(e) This category is generally comprised of investment options that invest in stocks, or shares of ownership, in small to medium-sized U.S. companies. These investment options typically carry more risk than larger U.S. equity investment options but have the potential for higher returns.
(f) This category is comprised of investment options that invest in stocks, or shares of ownership, in companies with their principal place of business or office outside of the U.S.
(g) This category is comprised of investment options that invest in bonds, or debt of a company or government entity (including U.S. and non-U.S. entities). These investment options typically carry more risk than short-term fixed income investment options, but less overall risk than equities.
(h) This category is comprised of investment options that invest in real estate investment trusts or private equity pools that own real estate. These long-term investments are primarily in office buildings, industrial parks, apartments or retail complexes. These investment options typically carry more risk, including liquidity risk, than fixed income investment options.
Benefit Payments
        The following table reflects the benefits as of June 28, 2020 expected to be paid through 2029 from the Company's pension and other postretirement plans. The Company’s pension plans are primarily funded plans. Therefore, anticipated benefits with respect to these plans will come primarily from the trusts established for these plans. The Company's other postretirement plans are unfunded. Therefore, anticipated benefits with respect to these plans will come from the Company’s own assets.
Pension BenefitsOther Benefits
 (In thousands)
2020$15,383  $79  
202116,761  155  
202216,681  150  
202316,718  144  
202416,650  137  
2025-202981,518  565  
Total$163,711  $1,230  
        As required by funding regulations or laws, the Company anticipates contributing $9.6 million and $0.2 million to its pension plans and other postretirement plans, respectively, during the remainder of 2020.
Unrecognized Benefit Amounts in Accumulated Other Comprehensive Loss
        The amounts in accumulated other comprehensive loss that were not recognized as components of net periodic benefits cost and the changes in those amounts are as follows:
 Six Months Ended June 28, 2020Six Months Ended June 30, 2019
 Pension BenefitsOther BenefitsPension BenefitsOther Benefits
 (In thousands)
Net actuarial loss (gain), beginning of period$58,239  $91  $54,343  $(34) 
Amortization(751) —  (656) —  
Curtailment and settlement adjustments—  —  (1,930) —  
Actuarial loss28,806  64  13,734  96  
Asset loss (gain)16,438  —  (9,806) —  
Other(202) —  —  —  
Net actuarial loss, end of period$102,530  $155  $55,685  $62  
Risk Management
        Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below:
Asset volatility. The plan liabilities are calculated using a discount rate set with reference to corporate bond yields; if plan assets under perform this yield, this will create a deficit. The pension plans hold a significant proportion of equities, which are expected to outperform corporate bonds in the long-term while contributing volatility and risk in the short-term. The Company monitors the level of investment risk but has no current plan to significantly modify the mixture of investments. The investment position is discussed more below.
Changes in bond yields. A decrease in corporate bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of the plans’ bond holdings.
        The investment position is managed and monitored by a committee of individuals from various departments. This group actively monitors how the duration and the expected yield of the investments are matching the expected cash outflows arising from the pension obligations. The group has not changed the processes used to manage its risks from previous periods. The group does not use derivatives to manage its risk. Investments are well diversified, such that the failure of any single investment would not have a material impact on the overall level of assets. The majority of equities are in U.S. large and small cap companies with some global diversification into international entities.
Remeasurement
        The Company remeasures both plan assets and obligations on a quarterly basis.
Defined Contribution Plans
        The Company sponsors two defined contribution retirement savings plans in the U.S. reportable segment for eligible U.S. and Puerto Rico employees. The Company maintains three postretirement plans for eligible employees in the Mexico reportable segment, as required by Mexico law, which primarily cover termination benefits. The Company maintains two defined contribution retirement savings plans in the U.K. and Europe reportable segment for eligible U.K. and Europe employees, as required by U.K. and Europe law. The Company’s expenses related to its defined contribution plans totaled $3.6 million in the three months ended June 28, 2020 and $7.2 million and in the six months ended June 28, 2020.