TRADE ACCOUNTS AND OTHER RECEIVABLES

9 Months Ended

Sep. 29, 2024

Accounts Receivable, after Allowance for Credit Loss [Abstract]

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


	September 29, 2024		December 31, 2023
	(In thousands)
Trade accounts receivable	$	1,034,901	$	1,027,916

Notes receivable from third parties	9,231		51,168
Other receivables	31,275		59,435
Receivables, gross	1,075,407		1,138,519
Allowance for credit losses	(7,757)		(9,341)
Receivables, net	$	1,067,650	$	1,129,178

Accounts receivable from related parties(a)	$	1,964	$	1,778

(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 29, 2024
	(In thousands)
Balance, beginning of period	$	(9,341)
Provision released to operating results	1,010
Account write-offs and recoveries	46
Effect of exchange rate	528
Balance, end of period	$	(7,757)

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 $415.0 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 receives 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.