XML 36 R24.htm IDEA: XBRL DOCUMENT v3.24.2
REPORTABLE SEGMENTS
 6 Months Ended
Jun. 30, 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 EndedSix Months Ended
June 30, 2024(a)
June 25, 2023(b)
June 30, 2024(a)
June 25, 2023(b)
(In thousands)
Net sales
U.S.$2,663,965 $2,446,208 $5,243,297 $4,878,776 
Europe1,301,541 1,310,750 2,569,444 2,550,014 
Mexico593,808 551,133 1,108,507 1,044,929 
Total$4,559,314 $4,308,091 $8,921,248 $8,473,719 
(a)In addition to the above third party sales, for the three months ended June 30, 2024, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $29.0 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 June 25, 2023, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $33.8 million. These sales consisted of fresh products, prepared products and grain.
(c)In addition to the above third party sales, for the six months ended June 30, 2024, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $76.9 million. These sales consisted of fresh products, prepared products and grain.
(d)In addition to the above third party sales, for the six months ended June 25, 2023, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $64.9 million. These sales consisted of fresh products, prepared products and grain.
Three Months EndedSix Months Ended
June 30, 2024June 25, 2023June 30, 2024June 25, 2023
(In thousands)
Operating income
U.S.$307,988 $37,265 $487,405 $9,159 
Europe23,993 2,513 55,109 27,774 
Mexico108,809 60,719 148,550 94,894 
Eliminations— (226)— (213)
Total operating income440,790 100,271 691,064 131,614 
Interest expense, net of capitalized interest31,201 47,152 72,444 89,814 
Interest income(15,863)(7,628)(26,209)(11,228)
Foreign currency transaction losses (gains)(2,225)16,395 (6,562)34,538 
Miscellaneous, net504 (1,331)(2,782)(23,984)
Income before income taxes427,173 45,683 654,173 42,474 
Income tax expense (benefit)100,650 (15,225)152,712 (24,065)
Net income$326,523 $60,908 $501,461 $66,539 
June 30, 2024December 31, 2023
(In thousands)
Total assets
U.S.$7,380,365 $7,012,211 
Europe4,328,933 4,299,985 
Mexico1,174,684 1,684,711 
Eliminations(2,805,525)(3,186,546)
Total assets$10,078,457 $9,810,361 
June 30, 2024December 31, 2023
(In thousands)
Long-lived assets(a)
U.S.$2,104,626 $2,085,222 
Europe1,016,836 1,041,857 
Mexico276,326 301,919 
Eliminations(3,888)(3,888)
Total long-lived assets$3,393,900 $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.