RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 28, 2021

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


	Three Months Ended
	March 28, 2021		March 29, 2020
	(In thousands)
Sales to related parties
JBS USA Food Company(a)	$	3,065	$	3,453
JBS Australia Pty. Ltd.	883		786
Combo, Mercado de Congelados	451		73
JBS Chile Ltda.	88		—

Total sales to related parties	$	4,487	$	4,312


	Three Months Ended
	March 28, 2021		March 29, 2020
	(In thousands)
Cost of goods purchased from related parties
JBS USA Food Company(a)	$	56,249	$	36,897
Penasul UK LTD	2,318		—
Seara Meats B.V.	1,701		2,643
JBS Global (U.K.) Ltd.	369		226
JBS Asia	5		—


JBS Toledo NV	—		63
Total cost of goods purchased from related parties	$	60,642	$	39,829


	Three Months Ended
	March 28, 2021		March 29, 2020
	(In thousands)
Expenditures paid by related parties
JBS USA Food Company(b)	$	23,745	$	8,081
Seara Food Europe Holdings	10		—





Total expenditures paid by related parties	$	23,755	$	8,081


	Three Months Ended
	March 28, 2021		March 29, 2020
	(In thousands)
Expenditures paid on behalf of related parties
JBS USA Food Company(b)	$	16,374	$	2,420


	March 28, 2021		December 27, 2020
	(In thousands)
Accounts receivable from related parties
JBS USA Food Company(a)	$	478	$	714
JBS Australia Pty. Ltd.	437		370
Combo, Mercado de Congelados	296		—
JBS Chile Ltda.	16		—


Total accounts receivable from related parties	$	1,227	$	1,084


	March 28, 2021		December 27, 2020
	(In thousands)
Accounts payable to related parties
JBS USA Food Company(a)	$	7,368	$	8,562
Penasul UK LTD	1,396		—
Seara Meats B.V.	524		1,075
JBS Global (U.K.) Ltd.	246		5
Seara Food Europe Holdings	10		—
JBS Chile Ltda.	8		8
JBS Asia	4		—
Total accounts payable to related parties	$	9,556	$	9,650

(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 28, 2021, approximately $1.4 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 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, 2021.