SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION

6 Months Ended

Jun. 24, 2012

Guarantees [Abstract]

Guarantees [Text Block]

16. SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION

On December 15, 2010, the Company closed on the sale of $500.0 million of 7 ⅞% Senior Notes due 2018 (the “2018 Notes”). The 2018 Notes are unsecured obligations of the Company and are fully and unconditionally guaranteed on a senior unsecured basis by Pilgrim’s Pride Corporation of West Virginia, Inc., a wholly owned subsidiary of the Company (the “Guarantor”). In accordance with Rule 3-10 of Regulation S-X promulgated under the Securities Act of 1933, the following condensed consolidating financial statements present the financial position, results of operations and cash flows of the Company (referred to as “Parent” for the purpose of this note only) on a Parent-only basis, the Guarantor on a Guarantor-only basis, the combined non-Guarantor subsidiaries and elimination entries necessary to arrive at the information for the Parent, the Guarantor and non-Guarantor subsidiaries on a consolidated basis. Investments in subsidiaries are accounted for by the Company using the equity method for this presentation.

The tables below present the condensed consolidating balance sheets as of June 24, 2012 and December 25, 2011, as well as the condensed consolidating statements of operations and cash flows for the thirteen and twenty-six weeks ended June 24, 2012 and June 26, 2011 based on the guarantor structure.

CONDENSED CONSOLIDATING BALANCE SHEETSJune 24, 2012

			Subsidiary		Subsidiary		Eliminations/
	Parent		Guarantor		Non-Guarantors		Adjustments			Consolidation
	(In thousands)
Cash and cash equivalents	$	24,988	$	—	$	24,239	$	—		$	49,227
Restricted cash and cash equivalents		—		—		4,666		—			4,666
Investment in available-for-sale securities		—		—		156		—			156
Trade accounts and other receivables, less allowance for
doubtful accounts		292,044		15,285		40,060		—			347,389
Account receivable from JBS USA, LLC		24,932		—		—		—			24,932
Inventories		869,863		22,767		95,362		—			987,992
Income taxes receivable		59,722		—		6,781		(1,008	)		65,495
Current deferred tax assets		—		4,003		1,492		(5,495	)		—
Prepaid expenses and other current assets		21,478		188		21,729		—			43,395
Assets held for sale		28,778		—		15,935		—			44,713
Total current assets		1,321,805		42,243		210,420		(6,503	)		1,567,965
Investment in available-for-sale securities		—		—		474		—			474
Intercompany receivable		33,609		32,218		—		(65,827	)		—
Investment in subsidiaries		339,489		—		—		(339,489	)		—
Deferred tax assets		75,392		—		7		(4,300	)		71,099
Other long-lived assets		48,351		—		180,492		(180,000	)		48,843
Identified intangible assets, net		29,423		—		11,807		—			41,230
Property, plant and equipment, net		1,063,036		47,112		103,536		(3,888	)		1,209,796
Total assets	$	2,911,105	$	121,573	$	506,736	$	(600,007	)	$	2,939,407
Accounts payable	$	294,107	$	12,276	$	35,718	$	—		$	342,101
Account payable to JBS USA, LLC		6,746		—		—		—			6,746
Accrued expenses and other current liabilities		221,578		19,864		39,426		3			280,871
Income taxes payable		—		—		1,008		(1,008	)		—
Current deferred tax liabilities		83,809		—		933		(5,495	)		79,247
Current maturities of long-term debt		15,617		—		—		—			15,617
Total current liabilities		621,857		32,140		77,085		(6,500	)		724,582
Long-term debt, less current maturities		1,239,619		—		—		(25,000	)		1,214,619
Intercompany payable		—		—		65,830		(65,830	)		—
Deferred tax liabilities		—		4,003		297		(4,300	)		—
Other long-term liabilities		297,264		—		3,205		(155,000	)		145,469
Total liabilities		2,158,740		36,143		146,417		(256,630	)		2,084,670
Total Pilgrim’s Pride Corporation stockholders’
equity		752,365		85,430		357,281		(343,377	)		851,699
Noncontrolling interest		—		—		3,038		—			3,038
Total stockholders’ equity		752,365		85,430		360,319		(343,377	)		854,737
Total liabilities and stockholders’ equity	$	2,911,105	$	121,573	$	506,736	$	(600,007	)	$	2,939,407

CONDENSED CONSOLIDATING BALANCE SHEETS
December 25, 2011

			Subsidiary		Subsidiary		Eliminations/
	Parent		Guarantor		Non-Guarantors		Adjustments			Consolidation
	(In thousands)
Cash and cash equivalents	$	13,733	$	30	$	27,846	$	—		$	41,609
Restricted cash and cash equivalents		—		—		7,680		—			7,680
Investment in available-for-sale securities		—		—		157		—			157
Trade accounts and other receivables, less allowance for
doubtful accounts		302,809		1,575		44,838		—			349,222
Account receivable from JBS USA, LLC		21,198		—		—		—			21,198
Inventories		766,227		21,144		91,723		—			879,094
Income taxes receivable		62,160		—		528		(3,621	)		59,067
Current deferred tax assets		—		4,003		1,478		(5,481	)		—
Prepaid expenses and other current assets		35,877		87		16,386		—			52,350
Assets held for sale		37,754		—		16,062		—			53,816
Total current assets		1,239,758		26,839		206,698		(9,102	)		1,464,193
Investment in available-for-sale securities		—		—		497		—			497
Intercompany receivable		50,064		33,978		—		(84,042	)		—
Investment in subsidiaries		304,395		—		—		(304,395	)		—
Deferred tax assets		75,392		—		7		(4,300	)		71,099
Other long-lived assets		57,460		—		180,461		(180,000	)		57,921
Identified intangible assets, net		31,384		—		12,699		—			44,083
Property, plant and equipment, net		1,090,376		49,336		105,928		(3,888	)		1,241,752
Total assets	$	2,848,829	$	110,153	$	506,290	$	(585,727	)	$	2,879,545
Accounts payable	$	270,538	$	13,033	$	45,293	$	—		$	328,864
Account payable to JBS USA, LLC		11,653		—		—		—			11,653
Accrued expenses and other current liabilities		226,016		17,193		38,588		—			281,797
Income taxes payable		—		—		3,621		(3,621	)		—
Current deferred tax liabilities		83,795		—		934		(5,481	)		79,248
Current maturities of long-term debt		15,611		—		—		—			15,611
Total current liabilities		607,613		30,226		88,436		(9,102	)		717,173
Long-term debt, less current maturities		1,433,001		—		—		(25,000	)		1,408,001
Note payable to JBS USA Holdings, Inc.		50,000		—		—		—			50,000
Intercompany payable		—		—		84,042		(84,042	)		—
Deferred tax liabilities		—		4,003		297		(4,300	)		—
Other long-term liabilities		289,697		—		11,675		(155,431	)		145,941
Total liabilities		2,380,311		34,229		184,450		(277,875	)		2,321,115
Total Pilgrim’s Pride Corporation stockholders’
equity		468,518		75,924		319,022		(307,852	)		555,612
Noncontrolling interest		—		—		2,818		—			2,818
Total stockholders’ equity		468,518		75,924		321,840		(307,852	)		558,430
Total liabilities and stockholders’ equity	$	2,848,829	$	110,153	$	506,290	$	(585,727	)	$	2,879,545

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
Thirteen Weeks Ended June 24, 2012

				Subsidiary			Subsidiary			Eliminations/
	Parent			Guarantor			Non-Guarantors			Adjustments			Consolidation
	(In thousands)
Net sales	$	1,743,061		$	71,854		$	227,555		$	(68,001	)	$	1,974,469
Cost of sales		1,626,219			65,539			206,623			(68,001	)		1,830,380
Gross profit		116,842			6,315			20,932			—			144,089
Selling, general and administrative expense		39,336			—			5,103			—			44,439
Administrative restructuring charges		389			—			—			—			389
Operating income		77,117			6,315			15,829			—			99,261
Interest expense, net		24,694			—			231			—			24,925
Interest income		(7	)		—			(349	)		—			(356	)
Foreign currency transaction losses		25			—			8,187			—			8,212
Miscellaneous, net		(363	)		(2	)		129			(79	)		(315	)
Income before income taxes		52,768			6,317			7,631			79			66,795
Income tax expense (benefit)		(2,410	)		2,385			(2,333	)		—			(2,358	)
Income before equity in earnings of consolidated
subsidiaries		55,178			3,932			9,964			79			69,153
Equity in earnings of consolidated subsidiaries		14,105			—			—			(14,105	)		—
Net income (loss)		69,283			3,932			9,964			(14,026	)		69,153
Less: Net loss attributable to noncontrolling interest		—			—			(205	)		—			(205	)
Net income (loss) attributable to Pilgrim’s Pride
Corporation	$	69,283		$	3,932		$	10,169		$	(14,026	)	$	69,358
Comprehensive income (loss)	$	57,838		$	3,932		$	9,964		$	(14,026	)	$	57,708
Comprehensive loss attributable to
noncontrolling interests		—			—			(205	)		—			(205	)
Comprehensive income (loss) attributable to
Pilgrim's Pride Corporation	$	57,838			3,932		$	10,169		$	(14,026	)	$	57,913

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
Thirteen Weeks Ended June 26, 2011

				Subsidiary		Subsidiary			Eliminations/
	Parent			Guarantor		Non-Guarantors			Adjustments			Consolidation
	(In thousands)
Net sales	$	1,547,207		$	119,650	$	321,531		$	(65,698	)	$	1,922,690
Cost of sales		1,582,084			106,940		343,635			(65,698	)		1,966,961
Operational restructuring charges		1,957			—		—			—			1,957
Gross profit (loss)		(36,834	)		12,710		(22,104	)		—			(46,228	)
Selling, general and administrative expense		43,663			—		7,965			—			51,628
Administrative restructuring charges		850			—		—			—			850
Operating income (loss)		(81,347	)		12,710		(30,069	)		—			(98,706	)
Interest expense, net		27,312			—		114			—			27,426
Interest income		(53	)		—		(225	)		—			(278	)
Foreign currency transaction losses		28			—		16			—			44
Miscellaneous, net		26,579			1,225		(29,150	)		(90	)		(1,436	)
Income (loss) before income taxes		(135,213	)		11,485		(824	)		90			(124,462	)
Income tax expense (benefit)		(1,222	)		4,336		356			—			3,470
Income (loss) before equity in earnings of
consolidated subsidiaries		(133,991	)		7,149		(1,180	)		90			(127,932	)
Equity in earnings of consolidated subsidiaries		5,764			—		—			(5,764	)		—
Net income (loss)		(128,227	)		7,149		(1,180	)		(5,674	)		(127,932	)
Less: Net income attributable to noncontrolling
interests		—			—		209			—			209
Net income (loss) attributable to Pilgrim’s Pride
Corporation	$	(128,227	)	$	7,149	$	4,998		$	(5,674	)	$	(128,141	)
Comprehensive income (loss)	$	(128,443	)	$	7,149	$	(1,180	)	$	(5,674	)	$	(128,148	)
Comprehensive income attributable to
noncontrolling interests		—			—		209			—			209
Comprehensive income (loss) attributable to
Pilgrim's Pride Corporation	$	(128,443	)	$	7,149	$	(1,389	)	$	(5,674	)	$	(128,357	)

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONSTwenty-Six Weeks Ended June 24, 2012

				Subsidiary			Subsidiary			Eliminations/
	Parent			Guarantor			Non-Guarantors			Adjustments			Consolidation
	(In thousands)
Net sales	$	3,382,624		$	148,340		$	460,844		$	(128,566	)	$	3,863,242
Cost of sales		3,193,571			133,082			411,001			(128,566	)		3,609,088
Gross profit		189,053			15,258			49,843			—			254,154
Selling, general and administrative expense		79,554			—			10,141			—			89,695
Administrative restructuring charges		3,269			—			5			—			3,274
Operating income		106,230			15,258			39,697			—			161,185
Interest expense, net		52,770			—			400			—			53,170
Interest income		(16	)		—			(614	)		—			(630	)
Foreign currency transaction losses		48			—			2,236			—			2,284
Miscellaneous, net		(481	)		(11	)		(400	)		207			(685	)
Income (loss) before income taxes		53,909			15,269			38,075			(207	)		107,046
Income tax expense (benefit)		(7,087	)		5,764			(382	)		—			(1,705	)
Income (loss) before equity in earnings of
consolidated subsidiaries		60,996			9,505			38,457			(207	)		108,751
Equity in earnings of consolidated subsidiaries		47,745			—			—			(47,745	)		—
Net income (loss)		108,741			9,505			38,457			(47,952	)		108,751
Less: Net income attributable to noncontrolling
interest		—			—			220			—			220
Net income (loss) attributable to Pilgrim’s Pride
Corporation	$	108,741		$	9,505		$	38,237		$	(47,952	)	$	108,531
Comprehensive income (loss)	$	97,716		$	9,505		$	38,457		$	(47,952	)	$	97,726
Comprehensive income attributable to
noncontrolling interests		—			—			220			—			220
Comprehensive income (loss) attributable to
Pilgrim's Pride Corporation	$	97,716			9,505		$	38,237		$	(47,952	)	$	97,726

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONSTwenty-Six Weeks Ended June 26, 2011

				Subsidiary		Subsidiary			Eliminations/
	Parent			Guarantor		Non-Guarantors			Adjustments			Consolidation
	(In thousands)
Net sales	$	3,089,877		$	229,660	$	645,154		$	(149,525	)	$	3,815,166
Cost of sales		3,170,191			209,011		681,522			(149,525	)		3,911,199
Operational restructuring charges		3,305			—		—			—			3,305
Gross profit (loss)		(83,619	)		20,649		(36,368	)		—			(99,338	)
Selling, general and administrative expense		88,824			—		16,052			—			104,876
Administrative restructuring charges		1,268			—		—			—			1,268
Operating income (loss)		(173,711	)		20,649		(52,420	)		—			(205,482	)
Interest expense, net		54,499			—		434			—			54,933
Interest income		(354	)		—		(634	)		—			(988	)
Foreign currency transaction gains		(173	)		—		(2,518	)		—			(2,691	)
Miscellaneous, net		51,757			2,352		(57,048	)		432			(2,507	)
Income (loss) before income taxes		(279,440	)		18,297		7,346			(432	)		(254,229	)
Income tax expense (benefit)		(15,972	)		6,907		2,663			—			(6,402	)
Income (loss) before equity in earnings of
consolidated subsidiaries		(263,468	)		11,390		4,683			(432	)		(247,827	)
Equity in earnings of consolidated subsidiaries		15,000			—		—			(15,000	)		—
Net income (loss)		(278,468	)		11,390		4,683			14,568			(247,827	)
Less: Net income attributable to noncontrolling
interest		—			—		1,074			—			1,074
Net income (loss) attributable to Pilgrim’s Pride
Corporation	$	(278,468	)	$	11,390	$	3,609		$	14,568		$	(248,901	)
Comprehensive income (loss)	$	(279,199	)	$	11,390	$	4,683		$	14,568		$	(248,558	)
Comprehensive income attributable to
noncontrolling interests		—			—		1,074			—			1,074
Comprehensive income (loss) attributable to
Pilgrim's Pride Corporation	$	(279,199	)		11,390	$	3,609		$	14,568		$	(249,632	)

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
Twenty-Six Weeks Ended June 24, 2012

				Subsidiary			Subsidiary			Eliminations/
	Parent			Guarantor			Non-Guarantors			Adjustments			Consolidation
	(In thousands)
Cash provided by operating activities	$	77,717		$	620		$	1,761		$	224		$	80,322
Cash flows from investing activities:
Acquisitions of property, plant and equipment		(32,535	)		(642	)		(4,384	)		—			(37,561	)
Purchases of investment securities		(73	)		—			(89	)		—			(162	)
Proceeds from sale or maturity of investment securities		58			—			—			—			58
Proceeds from property sales and disposals		11,640			—			821			—			12,461
Cash used in investing activities		(20,910	)		(642	)		(3,652	)		—			(25,204	)
Cash flows from financing activities:
Payments on note payable to JBS USA Holdings, Inc.		(50,000	)		—			—			—			(50,000	)
Proceeds from long-term debt		391,300			—			—			—			391,300
Payments on long-term debt		(584,904	)		—			—			—			(584,904	)
Proceeds from sale of common stock		198,282			—			—			—			198,282
Other financing activities		—			—			224			(224	)		—
Cash provided by (used in) financing activities		(45,322	)		—			224			(224	)		(45,322	)
Effect of exchange rate changes on cash and cash equivalents		—			—			(2,178	)		—			(2,178	)
Increase (decrease) in cash and cash equivalents		11,485			(22	)		(3,845	)		—			7,618
Cash and cash equivalents, beginning of period		13,733			30			27,846			—			41,609
Cash and cash equivalents, end of period	$	25,218		$	8		$	24,001		$	—		$	49,227

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
Twenty-Six Weeks Ended June 26, 2011

				Subsidiary			Subsidiary			Eliminations/
	Parent			Guarantor			Non-Guarantors			Adjustments			Consolidation
	(In thousands)
Cash provided by (used in) operating activities	$	(194,575	)	$	7,740		$	44,485		$	2,178		$	(140,172	)
Cash flows from investing activities:
Acquisitions of property, plant and equipment		(91,020	)		(7,746	)		(4,386	)		—			(103,152	)
Purchases of investment securities		—			—			(3,383	)		—			(3,383	)
Proceeds from sale or maturity of investment securities		—			—			2,634			—			2,634
Proceeds from property sales and disposals		3,799			6			1,072			—			4,877
Cash used in investing activities		(87,221	)		(7,740	)		(4,063	)		—			(99,024	)
Cash flows from financing activities:
Proceeds from long-term debt		580,289			—			—			—			580,289
Payments on long-term debt		(455,931	)		—			—			—			(455,931	)
Proceeds from note payable to JBS Holdings, Inc.		50,000			—			—			—			50,000
Purchase of remaining interest in subsidiary		106			—			—			(2,610	)		(2,504	)
Payment of capitalized loan costs		(4,395	)		—			—			—			(4,395	)
Other financing activities		—			—			(538	)		432			(106	)
Cash provided by (used in) financing activities		170,069			—			(538	)		(2,178	)		167,353
Effect of exchange rate changes on cash and cash equivalents		—			—			330			—			330
Increase (decrease) in cash and cash equivalents		(111,727	)		—			40,214			—			(71,513	)
Cash and cash equivalents, beginning of period		67,685			—			38,392			—			106,077
Cash and cash equivalents, end of period	$	(44,042	)	$	—		$	78,606		$	—		$	34,564