REVENUE RECOGNITION

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

REVENUE RECOGNITION

The vast majority of the Company’s revenue is derived from contracts which are based upon a customer ordering our products. While there may be master agreements, the contract is only established when the customer’s order is accepted by the Company. The Company accounts for a contract, which may be verbal or written, when it is approved and committed by both parties, the rights of the parties are identified along with payment terms, the contract has commercial substance and collectability is probable.

The Company evaluates the transaction for distinct performance obligations, which are the sale of its products to customers. Since its products are commodity market-priced, the sales price is representative of the observable, standalone selling price. Each performance obligation is recognized based upon a pattern of recognition that reflects the transfer of control to the customer at a point in time, which is upon destination (customer location or port of destination), which faithfully depicts the transfer of control and recognition of revenue. There are instances of customer pick-up at the Company’s facility, in which case control transfers to the customer at that point and the Company recognizes revenue. The Company’s performance obligations are typically fulfilled within days to weeks of the acceptance of the order.

The Company makes judgments regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from revenue and cash flows with customers. Determination of a contract requires evaluation and judgment along with the estimation of the total contract value and if any of the contract value is constrained. Due to the nature of our business, there is minimal variable consideration, as the contract is established at the acceptance of the order from the customer. When applicable, variable consideration is estimated at contract inception and updated on a regular basis until the contract is completed. Allocating the transaction price to a specific performance obligation based upon the relative standalone selling prices includes estimating the standalone selling prices including discounts and variable consideration.

Disaggregated Revenue

Revenue has been disaggregated into the categories below to show how economic factors affect the nature, amount, timing and uncertainty of revenue and cash flows:

	Three Months Ended June 30, 2024
	(In thousands)
	Fresh		Prepared		Export		Other		Total
U.S.	$	2,201,918	$	254,325	$	119,964	$	87,758	$	2,663,965
Europe	286,656		877,312		109,304		28,269		1,301,541
Mexico	508,721		56,075		—		29,012		593,808
Total net sales	$	2,997,295	$	1,187,712	$	229,268	$	145,039	$	4,559,314

	Three Months Ended June 25, 2023
	(In thousands)
	Fresh		Prepared		Export		Other		Total
U.S.	$	1,992,208	$	221,655	$	139,498	$	92,847	$	2,446,208
Europe	280,707		878,720		117,103		34,220		1,310,750
Mexico	473,742		49,848		—		27,543		551,133
Total net sales	$	2,746,657	$	1,150,223	$	256,601	$	154,610	$	4,308,091

	Six Months Ended June 30, 2024
	(In thousands)
	Fresh		Prepared		Export		Other		Total
U.S.	$	4,315,541	$	523,315	$	228,762	$	175,679	$	5,243,297
Europe	557,804		1,722,308		227,755		61,577		2,569,444
Mexico	938,873		111,595		—		58,039		1,108,507
Total net sales	$	5,812,218	$	2,357,218	$	456,517	$	295,295	$	8,921,248

	Six Months Ended June 25, 2023
	(In thousands)
	Fresh		Prepared		Export		Other		Total
U.S.	$	3,935,994	$	466,456	$	267,773	$	208,553	$	4,878,776
Europe	545,370		1,710,449		234,724		59,471		2,550,014
Mexico	885,661		96,204		—		63,064		1,044,929
Total net sales	$	5,367,025	$	2,273,109	$	502,497	$	331,088	$	8,473,719

Additional disaggregation of revenue by sales channel is provided below:

	Three Months Ended June 30, 2024
	(In thousands)
	Retail		Foodservice		Export		Other		Total
U.S.	$	1,395,222	$	1,038,749	$	119,964	$	110,030	$	2,663,965
Europe	821,785		229,800		109,304		140,652		1,301,541
Mexico(a)	137,241		277,533		—		179,034		593,808
Total net sales	$	2,354,248	$	1,546,082	$	229,268	$	429,716	$	4,559,314

	Three Months Ended June 25, 2023
	(In thousands)
	Retail		Foodservice		Export		Other		Total
U.S.	$	1,214,658	$	959,141	$	139,498	$	132,911	$	2,446,208
Europe	820,452		234,680		117,103		138,515		1,310,750
Mexico(a)	123,718		271,570		—		155,845		551,133
Total net sales	$	2,158,828	$	1,465,391	$	256,601	$	427,271	$	4,308,091

	Six Months Ended June 30, 2024
	(In thousands)
	Retail		Foodservice		Export		Other		Total
U.S.	$	2,788,799	$	1,998,888	$	228,762	$	226,848	$	5,243,297
Europe	1,634,043		431,627		227,755		276,019		2,569,444
Mexico(a)	272,372		517,262		—		318,873		1,108,507
Total net sales	$	4,695,214	$	2,947,777	$	456,517	$	821,740	$	8,921,248

	Six Months Ended June 25, 2023
	(In thousands)
	Retail		Foodservice		Export		Other		Total
U.S.	$	2,473,528	$	1,853,474	$	267,773	$	284,001	$	4,878,776
Europe	1,585,676		454,007		234,724		275,607		2,550,014
Mexico(a)	224,419		512,487		—		308,023		1,044,929
Total net sales	$	4,283,623	$	2,819,968	$	502,497	$	867,631	$	8,473,719

(a)Included in Mexico foodservice channel are sales to wholesale public meat markets that typically sell product on to foodservice customers. Included in Mexico other channel are sales to live chicken markets.

Contract Costs

The Company can incur incremental costs to obtain or fulfill a contract such as broker expenses that are not expected to be recovered. The amortization period for such expenses is less than one year; therefore, the costs are expensed as incurred.

Taxes

The Company excludes all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the entity from a customer (for example, sales, use, value added and some excise taxes) from the transaction price.

Contract Balances

The Company receives payment from customers based on terms established with the customer. Payments are typically due within 14 to 30 days of delivery. Revenue contract liabilities relate to payments received in advance of satisfying the

performance under the customer contract. The revenue contract liabilities relate to customer prepayments and the advanced consideration, such as cash, received from governmental agency contracts for which performance obligations to the end customer have not been satisfied.

Changes in the revenue contract liabilities balance are as follows (in thousands):

Balance as of December 31, 2023	$	84,958
Revenue recognized	(79,999)
Cash received, excluding amounts recognized as revenue during the period	62,217
Balance as of June 30, 2024	$	67,176

Accounts Receivable

The Company records accounts receivable when revenue is recognized. We record an allowance for credit losses, reducing our receivables balance to an amount we estimate is collectible from our customers. Estimates used in determining the allowance for credit losses are based on historical collection experience, current trends, aging of accounts receivable and periodic credit evaluations of our customers’ financial condition. We write off accounts receivable when it becomes apparent, based upon age or customer circumstances, that such amounts will not be collected. Generally, the Company does not require collateral for its accounts receivable.