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RELATED PARTY TRANSACTIONS (Tables)

12 Months Ended

Dec. 30, 2012

Transactions with JBS USA, JBS USA, LLC (a JBS USA subsidiary) and the former Founder Director recognized in the Consolidated Statements of Operations are summarized below:

	2012		2011		2010
	(In thousands)
JBS USA, LLC:
Purchases from JBS USA, LLC	$	69,048	$	173,081	$	93,898
Expenditures paid by JBS USA, LLC on behalf of Pilgrim’s^(a)		61,353		26,331		26,818
Sales to JBS USA, LLC		206,720		117,909		5,422
Expenditures paid by Pilgrim’s on behalf of JBS USA, LLC^(a)		4,134		1,312		482
Sale of PFS Distribution business assets to JBS USA, LLC^(f)		—		24,479		—
Sale of pork business assets to JBS USA, LLC^(g)		—		13,000		—
Founder Director:
Sale of airplane hangars and undeveloped land to Founder Director^(e)		—		—		1,450
Purchase of commercial egg property from Founder Director^(b)		—		—		12,000
Loan guaranty fees paid to Founder Director^(c)		—		—		8,928
Contract grower pay paid to Founder Director		297		1,132		1,249
Consulting fee paid to Founder Director^(d)		374		1,497		1,497
Board fees paid to Founder Director^(d)		45		154		105
Lease payments on commercial egg property paid to Founder Director		—		—		125
Sales to Founder Director		1		22		28

(a)		On January 19, 2010, the Company entered into an agreement with JBS USA, LLC in order to allocate costs associated with JBS USA, LLC's procurement of SAP licenses and maintenance services for its combined companies. Under this agreement, the fees associated with procuring SAP licenses and maintenance services are allocated between the Company and JBS USA, LLC in proportion to the percentage of licenses used by each company. The agreement expires on the date of expiration, or earlier termination, of the underlying SAP license agreement. On May 5, 2010, the Company also entered into an agreement with JBS USA, LLC in order to allocate the costs of supporting the business operations by one consolidated corporate team, which have historically been supported by their respective corporate teams. Expenditures paid by JBS USA, LLC on behalf of the Company will be reimbursed by the Company and expenditures paid by the Company on behalf of JBS USA, LLC will be reimbursed by JBS USA, LLC. This agreement expires on May 5, 2015.
(b)		On February 23, 2010, the Company purchased a commercial egg property from the Founder Director for $12.0 million. Prior to the purchase, the Company leased the commercial egg property including all of the ongoing costs of the operation from the Founder Director.
(c)		Prior to December 28, 2009, Pilgrim Interests, Ltd., an entity related to the Founder Director, guaranteed a portion of the Company's debt obligations. In consideration of such guarantees, the Company would pay Pilgrim Interests, Ltd. a quarterly fee equal to 0.25% of one-half of the average aggregate outstanding balance of such guaranteed debt. Pursuant to the terms of the financing in place during the term of the Company's Chapter 11 case, the Company could not pay any loan guarantee fees without the consent of the lenders party thereto. At December 27, 2009, the Company had accrued loan guaranty fees totaling $8.9 million. The Company paid these fees after emerging from bankruptcy on December 28, 2009.
(d)		In connection with the Company's plan of reorganization, the Company and the Founder Director entered into a consulting agreement, which became effective on December 28, 2009. The terms of the consulting agreement included, among other things, that the Founder Director (i) provide services to the Company that are comparable in the aggregate with the services provided by him to the Company prior to December 28, 2009, (ii) be appointed to the Board of Directors of the Company and during the term of the consulting agreement will be nominated for subsequent terms on the board, (iii) be compensated for services rendered to the Company at a rate of $1.5 million per year for a term of five years, (iv) be subject to customary non-solicitation and non-competition provisions and (v) be, along with his spouse, provided with medical benefits (or will be compensated for medical coverage) that are comparable in the aggregate to the medical benefits afforded to employees of the Company.
(e)		On June 9, 2010, the Company sold two airplane hangars and undeveloped land to the Founder Director for $1.45 million.
(f)		On October 7, 2011, the Company and certain of its wholly owned subsidiaries entered into an agreement with JBS USA, LLC and JBS Trading International, Inc. to sell certain real property, tractor trailers, inventory, equipment, accounts receivable and other assets related to our distribution and transportation businesses. See below for additional information regarding this sale.
(g)		On October 26, 2011, the Company entered into an agreement with Swift Pork Company, a wholly owned subsidiary of JBS USA, LLC, to sell certain real property, tractor trailers, inventory, livestock, equipment, accounts receivable and other assets related to our pork business. See paragraph below for additional information regarding this sale.