TRADE ACCOUNTS AND OTHER RECEIVABLES

9 Months Ended

Sep. 24, 2023

Accounts Receivable, after Allowance for Credit Loss [Abstract]

Trade accounts and other receivables, less allowance for credit losses, consisted of the following:


	September 24, 2023		December 25, 2022
	(In thousands)
Trade accounts receivable	$	1,084,388	$	984,332

Notes receivable from third parties	14,576		33,477
Other receivables	60,505		88,962
Receivables, gross	1,159,469		1,106,771
Allowance for credit losses	(8,027)		(9,559)
Receivables, net	$	1,151,442	$	1,097,212

Accounts receivable from related parties(a)	$	1,676	$	2,512

(a) Additional information regarding accounts receivable from related parties is included in “Note 17. Related Party Transactions.”

Activity in the allowance for credit losses was as follows:


	Nine Months Ended
	September 24, 2023
	(In thousands)
Balance, beginning of period	$	(9,559)
Provision charged to operating results	(316)
Account write-offs and recoveries	2,431
Effect of exchange rate	(583)
Balance, end of period	$	(8,027)

In June 2023, the Company and JBS USA Food Company (“JBS USA”) jointly entered into a receivables purchase agreement with a bank for an uncommitted facility with a maximum capacity of $265.0 million and no recourse to the Company or JBS USA. Under the facility, the Company may sell eligible trade receivables in exchange for cash. Transfers under the agreement are recorded as a sale under ASC 860, Broad Transactions – Transfers and Servicing. At the transfer date, the Company received cash equal to the face value of the receivables sold less a fee based on the current Secured Overnight Financing Rate (“SOFR”) plus an applicable margin applied over the customer payment term. The fees are immaterial.