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REPORTABLE SEGMENTS
 9 Months Ended
Sep. 26, 2021
Segment Reporting [Abstract]  
REPORTABLE SEGMENTS 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.
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.
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 September 24, 2021, the Company completed the Kerry Meats and Meals Acquisition, which will operate as a business unit within the U.K. and Europe 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 EndedNine Months Ended
September 26, 2021(a)
September 27, 2020(b)
September 26, 2021(c)
September 27, 2020(d)
(In thousands)
Net sales
U.S.$2,466,850 $1,894,222 $6,714,879 $5,619,791 
U.K. and Europe930,440 845,677 2,721,019 2,425,140 
Mexico430,276 335,222 1,302,791 929,141 
Total$3,827,566 $3,075,121 $10,738,689 $8,974,072 
(a)For the three months ended September 26, 2021, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $83.9 million. These sales consisted of fresh products, prepared products and grain.
(b)For the three months ended September 27, 2020, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $46.2 million. These sales consisted of fresh products, prepared products and grain.
(c)For the nine months ended September 26, 2021, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $234.7 million. These sales consisted of fresh products, prepared products and grain.
(d)For the nine months ended September 27, 2020, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $159.9 million. These sales consisted of fresh products, prepared products and grain.
Three Months EndedNine Months Ended
September 26, 2021September 27, 2020September 26, 2021September 27, 2020
(In thousands)
Reportable segment profit (loss)
U.S.$70,666 $2,451 $(85,380)$126,951 
U.K. and Europe445 29,949 32,771 76,324 
Mexico49,652 61,653 208,677 2,229 
Eliminations14 235 42 459 
Total operating income120,777 94,288 156,110 205,963 
Interest expense, net of capitalized interest29,833 30,564 110,818 95,575 
Interest income(1,244)(1,763)(4,452)(4,611)
Foreign currency transaction loss (gain)2,359 9,092 9,018 (3,768)
Miscellaneous, net(1,391)360 (10,005)(33,873)
Income before income taxes91,220 56,035 50,731 152,640 
Income tax expense30,385 22,344 55,931 57,900 
Net income (loss)$60,835 $33,691 $(5,200)$94,740 
September 26, 2021December 27, 2020
(In thousands)
Total assets by reportable segment
U.S.$6,472,756 $5,189,021 
U.K. and Europe4,146,047 3,034,219 
Mexico1,132,193 1,212,428 
Eliminations(2,918,153)(1,961,171)
Total assets$8,832,843 $7,474,497 
September 26, 2021December 27, 2020
(In thousands)
Long-lived assets by reportable segment(a)
U.S.$1,850,525 $1,815,460 
U.K. and Europe1,022,966 842,049 
Mexico279,197 292,651 
Eliminations(3,743)(3,783)
Total long-lived assets$3,148,945 $2,946,377 
(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.