STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 30, 2012

Stockholders' Equity Attributable To Parent [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

15.STOCKHOLDERS’ EQUITY

Rights Offering

In January 2012, Pilgrim’s commenced the Rights Offering for stockholders of record as of January 17, 2012 (the “Record Date”). The basic subscription privilege gave stockholders the option to purchase 0.2072 shares of Pilgrim’s common stock, rounded up to the next largest whole number, at a subscription price of $4.50 per share for each share of Pilgrim’s common stock they owned as of the Record Date. The multiplier was determined by dividing the 44,444,444 shares being offered in the Rights Offering by the total number of shares owned by all stockholders on the Record Date. Those stockholders that exercised their basic subscription privilege in full also received an over-subscription privilege that afforded them the opportunity to purchase additional shares at the subscription price of $4.50 per share from a pool of the shares left over had all stockholders not elected to exercise their basic subscription privileges in full. JBS USA committed to participate in the Rights Offering and exercise its basic and over-subscription privileges in full. The last day a stockholder could exercise either their basic subscription rights or their over-subscription rights was February 29, 2012. On March 7, 2012, the Company issued 44,444,444 shares of common stock to stockholders that exercised their basic subscription privileges and over-subscription privileges under the Rights Offering. Gross proceeds received under the Rights Offering totaled $200.0 million. The Company incurred costs directly attributable to the Rights Offering of $1.7 million that it deferred and charged against the proceeds of the Rights Offering in Additional Paid-in Capital on the Consolidated Balance Sheet. The Company used the net proceeds of $198.3 million for additional working capital to improve its capital position and for general corporate purposes. Pilgrim’s also used a portion of the net proceeds to repay the outstanding principal amount of $50.0 million, plus accrued interest, of its subordinated debt owed to JBS USA and to repay indebtedness under the U.S. Credit Facility. 

The Rights Offering contained a subscription price that was less than the fair value of the Company’s common stock on the last day the rights could be exercised. This price discount is considered a bonus element similar to a stock dividend. Because of this bonus element, the Company adjusted both the weighted average basic and diluted shares outstanding as reported in the Quarterly Report on Form 10-Q filed with the SEC on April 29, 2011 by multiplying those weighted average shares by an adjustment factor that represented the $6.40 fair value of a share of the Company’s common stock immediately prior to the exercise of the basic and over-subscription privileges under the Rights Offering divided by the $6.07 theoretical ex-rights fair value of a share of the Company’s common stock immediately prior to the exercise of the basic and over-subscription privileges under the Rights Offering. Weighted average basic and diluted shares outstanding and net loss per weighted average basic and diluted share for 2011 as originally reported and as adjusted for this bonus element were as follows:

	As Originally Reported			As Adjusted			Effect of Change
	(In thousands, except per share data)
2011:
Weighted average basic shares outstanding		214,282			224,996			10,714
Weighted average diluted shares outstanding		214,282			224,996			10,714
Net loss per weighted average basic share	$	(2.32	)	$	(2.21	)	$	0.11
Net loss per weighted average diluted share	$	(2.32	)	$	(2.21	)	$	0.11
2010:
Weighted average basic shares outstanding		214,282			224,996			10,714
Weighted average diluted shares outstanding		214,282			224,996			10,714
Net income per weighted average basic share	$	0.41		$	0.39		$	(0.02	)
Net income per weighted average diluted share	$	0.41		$	0.39		$	(0.02	)

Stock Compensation

The Company granted 200,000 restricted shares of its common stock to William W. Lovette effective January 3, 2011 in connection with the employment agreement with Mr. Lovette. On January 5, 2012, the Company issued the 200,000 shares to allow Mr. Lovette participation in the Rights Offering. We delivered the first tranche of 100,000 shares to Mr. Lovette on January 3, 2013. Restrictions on the second tranche of 100,000 shares will lapse on January 3, 2014, subject to Mr. Lovette’s continued employment with the Company through the applicable lapse date. See “Note 18. Incentive Compensation” to the Consolidated Financial Statements for additional information.

The Company granted 72,675 restricted shares of its common stock to Fabio Sandri, the Company’s Chief Financial Officer, effective August 27, 2012 as compensation for services to be rendered. Restrictions on these shares will lapse on April 27, 2014, subject to Mr. Sandri’s continued employment with the Company through the applicable lapse date. See “Note 18. Incentive Compensation” to the Consolidated Financial Statements for additional information.

Other than the above arrangements, the Company does not have any other outstanding stock compensation grants.

Restrictions on Retained Earnings

The U.S. Credit Facility prohibits us from paying dividends on the common stock of the Company. Further, the indenture governing the 2018 Notes restricts, but does not prohibit, the Company from declaring dividends.

Antidilutive Common Stock Equivalents

Due to the net loss incurred during 2011, the Company did not include 12,094 common stock equivalents in the calculation of the denominator used for net loss per weighted average diluted common share outstanding as these common stock equivalents would have been antidilutive.

Other Comprehensive Income

The amounts of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, are as follows:

Expense (Benefit)	2012			2011			2010
	(In thousands)
Unrealized holding gains (losses) on available-for-sale securities	$	(6	)	$	(658	)	$	(66	)
Recognition in earnings of a previously unrecognized gain on
derivative instrument designated as a cash flow hedge		—			—			(1,521	)
Gains (losses) associated with pension and other postretirement benefits		—			—			3,934
	$	(6	)	$	(658	)	$	2,347

Accumulated Other Comprehensive Loss

As of December 30, 2012 and December 25, 2011, the balance of each component of accumulated other comprehensive loss is as follows:

Component	2012			2011
	(In thousands)
Unrealized holding gains on available-for-sale securities, net of tax	$	—		$	12
Losses associated with pension and other postretirement benefits, net of tax		(68,511	)		(46,082	)
	$	(68,511	)	$	(46,070	)