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PENSION AND OTHER POSTRETIREMENT BENEFITS
 12 Months Ended
Dec. 29, 2024
Retirement Benefits [Abstract]  
PENSION AND OTHER POSTRETIREMENT BENEFITS PENSION AND OTHER POSTRETIREMENT BENEFITS
The Company sponsors programs that provide retirement benefits to most of its employees. These programs include qualified defined benefit pension plans such as the Pilgrim’s Pride Retirement Plan for Union Employees (the “Union Plan”) the Pilgrim’s Pride Pension Plan for Legacy Gold Kist Employees (the “GK Pension Plan”), the Tulip Limited Pension Plan and the Geo Adams Group Pension Fund, nonqualified defined benefit retirement plans, a defined benefit postretirement life insurance plan and defined contribution retirement savings plan. Expenses recognized under all retirement plans totaled $56.9 million, $32.0 million and $30.9 million in 2024, 2023 and 2022, respectively. The expenses recognized in 2024 include $21.7 million of loss recognized on the settlement of the terminated GK and Union pension plans, defined below.
The Company used a year-end measurement date of December 29, 2024 for its pension and postretirement benefits plans. Certain disclosures are listed below. Other disclosures are not material to the financial statements.
Qualified Defined Benefit Pension Plans
The Company sponsored four qualified defined benefit pension plans named the Pilgrim’s Pride Retirement Plan for Union Employees (the “Union Plan”), the Pilgrim’s Pride Pension Plan for Legacy Gold Kist Employees (the “GK Pension Plan”), the Tulip Limited Pension Plan (the “Tulip Plan”) and the Geo Adams Group Pension Fund (the “Geo Adams Plan” and, together with the Tulip Plan, the “Europe Plans”). The Union Plan covers certain locations or work groups within PPC. The GK Pension Plan covers certain eligible U.S. employees who were employed at locations that the Company purchased through its acquisition of Gold Kist in 2007. Participation in the GK Pension Plan was frozen as of February 8, 2007 for all participants with the exception of terminated vested participants who are or may become permanently and totally disabled. The plan was frozen for that group as of March 31, 2007. The Europe Plans cover certain eligible active and former Europe employees who were employed at locations that the Company purchased through its acquisition of Tulip in 2019. Participation in the Tulip Plan was frozen as of October 31, 2007 and participation in the Geo Adams Plan was frozen as of September 5, 2008.
During 2024, the Company executed a termination of its Union and GK Pension Plans. Under the plan terminations, participants were offered a lump-sum buyout or an annuity placement buyout. As a result, the Company settled $99.6 million of outstanding benefit obligations and recognized a $21.7 million loss on settlement during the year ended December 29, 2024. The loss was recognized in Miscellaneous, net on the Consolidated Statement of Income. Assets of the pension plans were liquidated and funds from liquidation were used to settle the obligations.
Nonqualified Defined Benefit Pension Plans
The Company sponsors two nonqualified defined benefit retirement plans named the Former Gold Kist Inc. Supplemental Executive Retirement Plan (the “SERP Plan”) and the Former Gold Kist Inc. Directors’ Emeriti Retirement Plan (the “Directors’ Emeriti Plan”). Pilgrim’s Pride assumed sponsorship of the SERP Plan and Directors’ Emeriti Plan through its acquisition of Gold Kist in 2007. The SERP Plan provides benefits on compensation in excess of certain U.S. Internal Revenue Code limitations to certain former executives with whom Gold Kist negotiated individual agreements. Benefits under the SERP Plan were frozen as of February 8, 2007. The Directors’ Emeriti Plan provides benefits to former Gold Kist directors.
Defined Benefit Postretirement Life Insurance Plan
The Company sponsors one defined benefit postretirement life insurance plan named the Gold Kist Inc. Retiree Life Insurance Plan (the “Retiree Life Plan” and together with the Union Plan, the GK Pension Plan, the SERP Plan and the Directors’ Emeriti Plan, the “U.S. Plans”). Pilgrim’s Pride assumed defined benefit postretirement medical and life insurance obligations, including the Retiree Life Plan, through its acquisition of Gold Kist in 2007. In January 2001, Gold Kist began to substantially curtail its programs for active employees. On July 1, 2003, Gold Kist terminated medical coverage for retirees age 65 or older, and only retired employees in the closed group between ages 55 and 65 could continue their coverage at rates above the average cost of the medical insurance plan for active employees. These retired employees all reached the age of 65 in 2012 and liabilities of the postretirement medical plan then ended.
Defined Benefit Plans Obligations and Assets
The change in benefit obligation, change in fair value of plan assets, funded status and amounts recognized in the Consolidated Balance Sheets for these plans were as follows:
 Pension BenefitsOther Benefits
 2024202320242023
Change in projected benefit obligation(In thousands)
Projected benefit obligation, beginning of year$237,508 $236,147 $1,160 $1,169 
Interest cost10,764 11,322 53 54 
Actuarial (gains) losses(20,783)238 (39)(21)
Benefits paid(12,671)(17,072)(30)(42)
Curtailments and settlements(99,635)— — — 
Currency translation (gain) loss(1,453)6,873 — — 
Projected benefit obligation, end of year$113,730 $237,508 $1,144 $1,160 
 Pension BenefitsOther Benefits
 2024202320242023
Change in plan assets(In thousands)
Fair value of plan assets, beginning of year$225,451 $210,133 $— $— 
Actual return on plan assets5,842 17,709 — — 
Contributions by employer6,831 8,570 30 42 
Benefits paid(12,671)(17,072)(30)(42)
Curtailments and settlements(99,635)— — — 
Expenses paid from assets (320)(327)— — 
Currency translation gain (loss)(1,572)6,438 — — 
Fair value of plan assets, end of year$123,926 $225,451 $— $— 

 Pension BenefitsOther Benefits
 2024202320242023
Funded status(In thousands)
Overfunded (unfunded) benefit obligation, end of year$10,196 $(12,057)$(1,144)$(1,160)
 Pension BenefitsOther Benefits
2024202320242023
Amounts recognized in the Consolidated Balance Sheets as of end of year(In thousands)
Long-term assets
$11,829 $— $— $— 
Total assets$11,829 $— $— $— 
Current liabilities$(205)$(7,717)$(201)$(187)
Long-term liabilities(1,428)(4,340)(943)(973)
Total liabilities$(1,633)$(12,057)$(1,144)$(1,160)
Pension BenefitsOther Benefits
2024202320242023
Amounts recognized in accumulated other comprehensive loss at end of year(In thousands)
Net actuarial loss (gain)$2,063 $40,487 $(126)$(87)
The accumulated benefit obligation for the Company’s defined benefit pension plans was $113.7 million and $237.5 million as of December 29, 2024 and December 31, 2023, respectively. As of December 29, 2024, the weighted average duration of our defined benefit obligation is 17.5 years.
Net Periodic Benefit Costs
Net benefit costs include the following components:
 Pension BenefitsOther Benefits
 202420232022202420232022
 (In thousands)
Interest cost$10,764 $11,322 $6,777 $53 $54 $23 
Estimated return on plan assets(11,106)(10,393)(10,298)— — — 
Settlement loss21,714 — 1,591 — — — 
Expenses paid from assets320 327 337 — — — 
Amortization of net loss 798 1,048 1,364 — — — 
Amortization of past service cost18 17 17 — — — 
Net cost (income)$22,508 $2,321 $(212)$53 $54 $23 
Economic Assumptions
The weighted average assumptions used in determining pension and other postretirement plan information were as follows:
 Pension BenefitsOther Benefits
 202420232022202420232022
Benefit obligation
Discount rate4.68 %4.81 %5.04 %5.30 %5.06 %5.16 %
Net pension and other postretirement cost
Discount rate4.56 %4.93 %3.67 %5.06 %5.16 %2.38 %
Expected return on plan assets6.17 %4.95 %4.68 %NANANA
The discount rate represents the interest rate used to determine the present value of future cash flows currently expected to be required to settle the Company’s pension and other benefit obligations. The discount rate assumptions used to determine future pension obligations at December 29, 2024 and December 31, 2023 were based on the Empower Above Mean Curve, which was designed by Empower to provide a means for plan sponsors to value the liabilities of their postretirement benefit plans. The Empower Above Mean Curve represents a series of annual discount rates from bonds with an AA minimum average credit quality rating as rated by Moody’s Investor Service, Standard & Poor’s and Fitch Ratings. The expected benefit payments were discounted by each corresponding discount rate on the yield curve. For payments beyond 30 years, the Company extended the curve assuming the discount rate derived in year 30 is extended to the end of the plan’s payment expectations. Once the present value of the string of benefit payments was established, the Company determined the single rate on the yield curve, that when applied to all obligations of the plan, would exactly match the previously determined present value. The discount rate assumptions used to determine future pension obligations for the Europe pension plans at December 29, 2024 and December 31, 2023 were based on corporate bond spot yield curves provided by Merrill Lynch. Merrill Lynch bases this calculation entirely on AA1-AA3 rated bonds. As part of the evaluation of pension and other postretirement assumptions, the Company applied assumptions for mortality that incorporate generational white and blue collar mortality trends. In determining its benefit obligations, the Company used generational tables that take into consideration increases in plan participant longevity. As of December 29, 2024 and December 31, 2023, the U.S. pension and other postretirement benefit plans used variations of the Pri-2012 mortality table. The MP-2021 mortality improvement scale was used for 2024 and 2023. As of December 29, 2024 and December 31, 2023, the Europe pension plans used variations of the AxC00 mortality table in combination with the CMI_2023 Sk=7.0 and CMI_2022 Sk=7.0 mortality improvement scales for 2024 and 2023, respectively, for pre-retirement employees and the S3PMA and S3PFA_M mortality tables in combination with the CMI_2023 Sk=7.0 and CMI_2022 Sk=7.0 mortality improvement scales for 2024 and 2023, respectively, for postretirement employees.
The sensitivity of the projected benefit obligation for pension benefits to changes in the discount rate is set out below. The impact of a change in the discount rate of 0.25% on the projected benefit obligation for other benefits is immaterial. This sensitivity analysis is based on changing one assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to variations in significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as that for calculating the liability recognized in the Consolidated Balance Sheets.
Increase in Discount Rate of 0.25%Decrease in Discount Rate of 0.25%
(In thousands)
Impact on projected benefit obligation for pension benefits$(3,044)$3,205 
The expected rate of return on plan assets was primarily based on the determination of an expected return and behaviors for each plan’s current asset portfolio that the Company believes are likely to prevail over long periods. This determination was made using assumptions for return and volatility of the portfolio. Asset class assumptions were set using a combination of empirical and forward-looking analysis. To the extent historical results were affected by unsustainable trends or events, the effects of those trends or events were quantified and removed. The Company also considered anticipated asset allocations, investment strategies and the views of various investment professionals when developing this rate.
Plan Assets
The following table reflects the pension plans’ actual asset allocations:
20242023
Cash and cash equivalents21 %2 %
Pooled separate accounts for the Union Plan(a):
Equity securities— %2 %
Fixed income securities— %2 %
Pooled separate accounts and common collective trust funds for the GK Pension Plan(a):
Equity securities— %25 %
Fixed income securities3 %15 %
Real estate— %2 %
Pooled separate accounts for the U.K. Plans(a):
Equity securities30 %29 %
Fixed income funds24 %1 %
Liability driven investments10 %15 %
Real estate12 %7 %
Total assets100 %100 %
(a)Pooled separate accounts (“PSAs”) and common collective trust funds (“CCTs”) are two of the most common types of alternative vehicles in which benefit plans invest. These investments are pooled funds that look like mutual funds, but they are not registered with the SEC. Often times, they will be invested in mutual funds or other marketable securities, but the unit price generally will be different from the value of the underlying securities because the fund may also hold cash for liquidity purposes, and the fees imposed by the fund are deducted from the fund value rather than charged separately to investors. Some PSAs and CCTs have no restrictions as to their investment strategy and can invest in riskier investments, such as derivatives, hedge funds, private equity funds, or similar investments.
Absent regulatory or statutory limitations, the target asset allocation for the investment of pension assets in the PSAs for the Europe Plans is 21% overseas equity, 21% diversified alternatives, 15% real estate, 24% equity-linked liability driven investments, 11% other liability driven investments and 8% cash for the Tulip Pension Plan; and 23% global equities, 11% equity-linked liability driven investments, 15% liability driven investments, 16% corporate bonds and 35% cash for the Geo Adams Group Pension Fund. The plans only invest in fixed income and equity instruments for which there is a readily available public market. The Company develops its expected long-term rate of return assumptions based on the historical rates of returns for equity and fixed income securities of the type in which its plans invest.
The fair value measurements of plan assets fell into the following levels of the fair value hierarchy as of December 29, 2024 and December 31, 2023:
20242023
Level 1(a)
Level 2(b)
Level 3(c)
Total
Level 1(a)
Level 2(b)
Level 3(c)
Total
 (In thousands)
Cash and cash equivalents$26,479 $— $— $26,479 $5,394 $— $— $5,394 
PSAs for the Union Plan:
Large U.S. equity funds(d)
— — — — — 2,123 — 2,123 
Small/Mid U.S. equity funds(e)
— — — — — 1,133 — 1,133 
International equity funds(f)
— — — — — 1,654 — 1,654 
Fixed income funds(g)
— 70 — 70 — 3,640 — 3,640 
Real estate(h)
— — — — — 437 — 437 
PSAs and CCTs for the GK Pension Plan:
Large U.S. equity funds(d)
— — — — — 27,516 — 27,516 
Small/Mid U.S. equity funds(e)
— — — — — 13,991 — 13,991 
International equity funds(f)
— — — — — 13,751 — 13,751 
Fixed income funds(g)
— 3,152 — 3,152 — 34,111 — 34,111 
Real estate(h)
— — — — — 5,174 — 5,174 
PSAs for the Europe Plans:
Large U.S. equity funds(d)
— 11,761 — 11,761 — 29,648 — 29,648 
International equity funds(f)
— 25,575 — 25,575 — 36,507 — 36,507 
Fixed income funds(g)
— 29,715 — 29,715 — 3,376 — 3,376 
Real estate(h)
— 15,442 — 15,442 — 14,985 — 14,985 
Liability driven investments(i)
— 11,732 — 11,732 — 32,011 — 32,011 
Total assets$26,479 $97,447 $— $123,926 $5,394 $220,057 $— $225,451 
(a)Unadjusted quoted prices in active markets for identical assets are used to determine fair value.
(b)Quoted prices in active markets for similar assets and inputs that are observable for the asset are used to determine fair value.
(c)Unobservable inputs, such as discounted cash flow models or valuations, are used to determine fair value.
(d)This category is comprised of investment options that invest in stocks, or shares of ownership, in large, well-established U.S. companies. These investment options typically carry more risk than fixed income options but have the potential for higher returns over longer time periods.
(e)This category is generally comprised of investment options that invest in stocks, or shares of ownership, in small to medium-sized U.S. companies. These investment options typically carry more risk than larger U.S. equity investment options but have the potential for higher returns.
(f)This category is comprised of investment options that invest in stocks, or shares of ownership, in companies with their principal place of business or office outside of the U.S.
(g)This category is comprised of investment options that invest in bonds, or debt of a company or government entity (including U.S. and non-U.S. entities). These investment options typically carry more risk than short-term fixed income investment options, but less overall risk than equities.
(h)This category is comprised of investment options that invest in real estate investment trusts or private equity pools that own real estate. These long-term investments are primarily in office buildings, industrial parks, apartments or retail complexes. These investment options typically carry more risk, including liquidity risk, than fixed income investment options.
(i)This category is comprised of investments that seek to ensure availability of funds to cover current and future liabilities. These investments are typically focused on both the assets and liabilities of the plan.
Benefit Payments
The following table reflects the benefits as of December 29, 2024 expected to be paid through 2034 from the Company’s pension and other postretirement plans. The Company’s pension plans are primarily funded plans. Therefore, anticipated benefits with respect to these plans will come primarily from the trusts established for these plans. The Company’s other postretirement plans are unfunded. Therefore, anticipated benefits with respect to these plans will come from the Company’s own assets.
Pension BenefitsOther
Benefits
 (In thousands)
2025$7,332 $201 
20267,477 182 
20277,634 164 
20287,866 147 
20297,964 130 
2030-203440,531 430 
Total$78,804 $1,254 
As required by funding regulations or laws, the Company anticipates contributing $0.2 million and less than $0.2 million to its pension and other postretirement plans, respectively, during 2025.
Unrecognized Benefit Amounts in Accumulated Other Comprehensive Loss
The amounts in accumulated other comprehensive loss that were not recognized as components of net periodic benefits cost and the changes in those amounts are as follows:
 Pension BenefitsOther Benefits
 202420232022202420232022
 (In thousands)
Net actuarial loss, beginning of year$40,487 $48,121 $58,143 $(87)$(66)$118 
Amortization(816)(1,065)(1,381)— — — 
Realized loss on settlement(21,714)— (1,591)— — — 
Actuarial loss (gain)(20,782)238 (106,909)(39)(21)(184)
Asset loss (gain)5,264 (7,317)99,777 — — — 
Currency translation (gain) loss(376)510 82 — — — 
Net actuarial loss (gain), end of year$2,063 $40,487 $48,121 $(126)$(87)$(66)
Risk Management
Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below:
Asset volatility. The plan liabilities are calculated using a discount rate set with reference to corporate bond yields; if plan assets under perform this yield, this will create a deficit. The pension plans hold a significant proportion of equities, which are expected to outperform corporate bonds in the long-term while contributing volatility and risk in the short-term. The Company monitors the level of investment risk but has no current plan to significantly modify the mixture of investments. The investment position is discussed more below.
Changes in bond yields. A decrease in corporate bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of the plans’ bond holdings.
The investment position is managed and monitored by a committee of individuals from various departments. This group actively monitors how the duration and the expected yield of the investments are matching the expected cash outflows arising from the pension obligations. The group has not changed the processes used to manage its risks from previous periods. The group does not use derivatives to manage its risk. Investments are well diversified, such that the failure of any single investment would not have a material impact on the overall level of assets. The majority of equities are in U.S. large and small cap companies with some global diversification into international entities.
Remeasurement
The Company remeasures both plan assets and obligations on a quarterly basis.
Defined Contribution Plans
The Company sponsors two defined contribution retirement savings plans in the U.S. reportable segment for eligible U.S. and Puerto Rico employees. The Company maintains three postretirement plans for eligible employees in the Mexico reportable segment, as required by Mexico law, which primarily cover termination benefits. The Company maintains two defined contribution retirement savings plans in the Europe reportable segment for eligible Europe employees, as required by Europe law. The Company’s expenses related to its defined contribution plans totaled $32.5 million, $28.5 million and $27.0 million in 2024, 2023 and 2022, respectively.