REPORTABLE SEGMENTS

9 Months Ended

Sep. 24, 2023

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				Nine Months Ended
	September 24, 2023(a)		September 25, 2022(b)		September 24, 2023(c)		September 25, 2022(d)
	(In thousands)
Net sales
U.S.	$	2,488,317	$	2,836,920	$	7,367,093	$	8,318,007
U.K. and Europe	1,312,205		1,203,095		3,862,219		3,640,129
Mexico	559,674		428,954		1,604,603		1,382,876
Total	$	4,360,196	$	4,468,969	$	12,833,915	$	13,341,012

(a)In addition to the above third party sales, for the three months ended September 24, 2023, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $105.9 million. These sales consisted of fresh products, prepared products and grain.

(b)In addition to the above third party sales, for the three months ended September 25, 2022, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $31.9 million. These sales consisted of fresh products, prepared products and egg sales.

(c)In addition to the above third party sales, for the nine months ended September 24, 2023, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $201.8 million. These sales consisted of fresh products, prepared products and grain.

(d)In addition to the above third party sales, for the nine months ended September 25, 2022, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $101.6 million. These sales consisted of fresh products, prepared products and egg sales.

	Three Months Ended				Nine Months Ended
	September 24, 2023		September 25, 2022		September 24, 2023		September 25, 2022
	(In thousands)
Reportable segment profit:
U.S.	$	101,382	$	338,548	$	110,541	$	1,146,821
U.K. and Europe	42,809		14,198		70,583		406
Mexico	62,182		(13,558)		157,076		106,850
Eliminations	—		14		(213)		42
Total operating income	206,373		339,202		337,987		1,254,119
Interest expense, net of capitalized interest	45,645		36,895		135,459		111,303
Interest income	(12,115)		(2,673)		(23,343)		(4,957)
Foreign currency transaction losses	8,924		54		43,462		14,348
Miscellaneous, net	(2,201)		(19,822)		(26,185)		(21,834)
Income before income taxes	166,120		324,748		208,594		1,155,259
Income tax expense	44,553		65,749		20,488		253,679
Net income	$	121,567	$	258,999	$	188,106	$	901,580

	September 24, 2023		December 25, 2022
	(In thousands)
Total assets by reportable segment:
U.S.	$	7,264,545	$	6,847,209
U.K. and Europe	4,146,472		4,033,990
Mexico	1,541,064		1,292,056
Eliminations	(3,024,265)		(2,917,486)
Total assets	$	9,927,816	$	9,255,769

	September 24, 2023		December 25, 2022
	(In thousands)
Long-lived assets by reportable segment(a):
U.S.	$	2,062,519	$	1,943,967
U.K. and Europe	1,008,616		1,011,283
Mexico	301,753		295,069
Eliminations	(3,888)		(3,675)
Total long-lived assets	$	3,369,000	$	3,246,644

(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.