REPORTABLE SEGMENTS

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

REPORTABLE SEGMENTS

REPORTABLE SEGMENTS

The Company operates in three reportable segments: U.S., Europe (formerly known as “U.K. and Europe”), and Mexico. The Company measures segment profit as operating income. Corporate expenses are allocated to the Mexico 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 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
	March 31, 2024(a)		March 26, 2023(b)
	(In thousands)
Net sales
U.S.	$	2,579,332	$	2,432,568
Europe	1,267,903		1,239,264
Mexico	514,699		493,796
Total	$	4,361,934	$	4,165,628

(a)In addition to the above third party sales, for the three months ended March 31, 2024, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $47.9 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 March 26, 2023, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $31.0 million. These sales consisted of fresh products, prepared products and grain.

	Three Months Ended
	March 31, 2024		March 26, 2023
	(In thousands)
Operating income (loss)
U.S.	$	179,417	$	(28,106)
Europe	31,116		25,261
Mexico	39,741		34,175
Eliminations	—		13
Total operating income	250,274		31,343
Interest expense, net of capitalized interest	41,243		42,662
Interest income	(10,346)		(3,600)
Foreign currency transaction losses (gains)	(4,337)		18,143
Miscellaneous, net	(3,286)		(22,653)
Income (loss) before income taxes	227,000		(3,209)
Income tax expense (benefit)	52,062		(8,840)
Net income	$	174,938	$	5,631

	March 31, 2024		December 31, 2023
	(In thousands)
Total assets
U.S.	$	6,931,645	$	7,012,211
Europe	4,277,510		4,299,985
Mexico	1,634,500		1,684,711
Eliminations	(3,075,315)		(3,186,546)
Total assets	$	9,768,340	$	9,810,361

	March 31, 2024		December 31, 2023
	(In thousands)
Long-lived assets(a)
U.S.	$	2,095,619	$	2,085,222
Europe	1,038,884		1,041,857
Mexico	300,274		301,919
Eliminations	(3,888)		(3,888)
Total long-lived assets	$	3,430,889	$	3,425,110

(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.