RESTRUCTURING-RELATED ACTIVITIES

3 Months Ended

Mar. 30, 2025

Restructuring and Related Activities [Abstract]

In 2022, the Company began restructuring initiatives in its Europe reportable segment. Additional restructuring initiatives also commenced in 2023 and 2024. The purpose of our ongoing restructuring activities is to integrate central operations and reallocate processing capacities between production facilities resulting in closures of some facilities in the Europe reportable segment.

The following table provides a summary of our estimates of timelines and costs associated with these restructuring initiatives by major type of cost:


	Pilgrim’s Food Masters 2024		Pilgrim’s Europe Central		Total
	(In thousands)
Earliest implementation date	April 2024		January 2024
Expected predominant completion date	March 2025		June 2025
Costs incurred and expected to be incurred
Employee-related costs	$	19,760	$	49,202	$	68,962
Asset impairment costs	10,871		1,824		12,695
Contract termination costs	855		1,747		2,602
Other exit and disposal costs (a)	10,580		3,633		14,213
Total exit and disposal costs (b)	$	42,066	$	56,406	$	98,472
Costs incurred since earliest implementation date
Employee-related costs	$	19,760	$	40,144	$	59,904
Asset impairment costs	10,871		1,824		12,695
Contract termination costs	855		1,747		2,602
Other exit and disposal costs (a)	10,580		3,633		14,213
Total exit and disposal costs	$	42,066	$	47,348	$	89,414

(a)Comprised of other costs directly related to the restructuring initiatives including flock depletion, the write-off of prepaid maintenance costs, consulting fees, and costs to return leased assets to original configuration.

(b)All costs, except for asset impairment costs, are estimated to result in cash outlays.

During the three months ended March 30, 2025, the Company recognized the following expenses and paid the following cash related to each restructuring initiative:


	Expenses		Cash Outlays
	(In thousands)
Pilgrim’s Food Masters 2024	$	1,331	$	2,951
Pilgrim’s Europe Central	14,655		1,813
Prior programs substantially complete	626		621
Total	$	16,612	$	5,385

These expenses are reported in the line item Restructuring activities on the Condensed Consolidated Statements of Income.

The following table reconciles liabilities and reserves associated with each restructuring initiative during the three months ended March 30, 2025. Ending liability balances for employee termination benefits and other charges are reported in the line item Accrued expenses and other current liabilities in our Condensed Consolidated

Balance Sheets. The ending reserve balance for inventory adjustments is reported in the line item Inventories in our Condensed Consolidated Balance Sheets. During the three months ended March 30, 2025, there were no material movements in reserves related to substantially completed programs. These programs have been excluded from the tables below.


	Pilgrim’s Food Masters 2024
	Liability or reserve as of December 29, 2024		Restructuring charges incurred		Cash payments and disposals		Currency translation		Liability or reserve as of March 30, 2025
	(In thousands)
Employee retention benefits	$	76	$	244	$	(298)	$	2	$	24
Severance	1,620		(112)		(445)		32		1,095
Asset impairment	—		63		(63)		—		—
Inventory adjustments	—		(34)		34		—		—
Lease termination	290		6		(6)		8		298
Other charges	4,787		1,164		(2,208)		110		3,853
Total	$	6,773	$	1,331	$	(2,986)	$	152	$	5,270


	Pilgrim’s Europe Central
	Liability or reserve as of December 29, 2024		Restructuring charges incurred		Cash payments and disposals		Currency translation		Liability or reserve as of March 30, 2025
	(In thousands)
Severance	$	2,823	$	12,188	$	(1,813)	$	365	$	13,563
Inventory adjustments	91		—		—		3		94
Lease termination	—		2,042		—		56		2,098
Other charges	67		425		—		15		507
Contract termination	1,223		—		—		35		1,258
Total	$	4,204	$	14,655	$	(1,813)	$	474	$	17,520