REPORTABLE SEGMENTS

6 Months Ended

Jun. 26, 2022

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 fresh chicken, pork products, specialty meats, ready meals and other prepared foods that are sold to foodservice, retail and direct to consumer customers. The segment’s primary distribution is through retailers, foodservice distributors and restaurants.

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				Six Months Ended
	June 26, 2022(a)		June 27, 2021(b)		June 26, 2022(c)		June 27, 2021(d)
	(In thousands)
Net sales
U.S.	$	2,899,879	$	2,248,470	$	5,481,087	$	4,248,029
U.K. and Europe	1,245,052		935,845		2,437,034		1,790,579
Mexico	486,717		453,383		953,922		872,515
Total	$	4,631,648	$	3,637,698	$	8,872,043	$	6,911,123

(a)For the three months ended June 26, 2022, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $26.3 million. These sales consisted of fresh products, prepared products, grain and egg sales.

(b)For the three months ended June 27, 2021, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $82.8 million. These sales consisted of fresh products, prepared products and grain.

(c)For the six months ended June 26, 2022, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $69.7 million. These sales consisted of fresh products, prepared products, grain and egg sales.

(d)For the six months ended June 27, 2021, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $150.8 million. These sales consisted of fresh products, prepared products and grain.

	Three Months Ended				Six Months Ended
	June 26, 2022		June 27, 2021		June 26, 2022		June 27, 2021
	(In thousands)
Reportable segment profit (loss):
U.S.	$	453,198	$	(224,171)	$	808,273	$	(156,046)
U.K. and Europe	7,848		21,831		(13,792)		32,326
Mexico	51,844		79,195		120,408		159,025
Eliminations	14		14		28		28
Total operating income (loss)	512,904		(123,131)		914,917		35,333
Interest expense, net of capitalized interest	38,112		50,651		74,408		80,985
Interest income	(1,010)		(842)		(2,284)		(3,208)
Foreign currency transaction losses	2,758		4,145		14,294		6,659
Miscellaneous, net	(1,688)		(770)		(2,012)		(8,614)
Income (loss) before income taxes	474,732		(176,315)		830,511		(40,489)
Income tax expense (benefit)	112,711		(9,812)		187,930		25,546
Net income (loss)	$	362,021	$	(166,503)	$	642,581	$	(66,035)

	June 26, 2022		December 26, 2021
	(In thousands)
Total assets by reportable segment:
U.S.	$	6,989,372	$	6,390,845
U.K. and Europe	4,044,272		4,292,558
Mexico	1,207,388		1,146,204
Eliminations	(2,918,100)		(2,916,402)
Total assets	$	9,322,932	$	8,913,205

	June 26, 2022		December 26, 2021
	(In thousands)
Long-lived assets by reportable segment(a):
U.S.	$	1,864,868	$	1,862,584
U.K. and Europe	1,022,478		1,125,197
Mexico	285,256		284,980
Eliminations	(3,702)		(3,729)
Total long-lived assets	$	3,168,900	$	3,269,032

(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.