STOCKHOLDERS' EQUITY

6 Months Ended

Jun. 30, 2013

STOCKHOLDERS' EQUITY [Abstract]

STOCKHOLDERS' EQUITY

11. STOCKHOLDERS' EQUITY

Accumulated Other Comprehensive Loss

At both June 30, 2013 and December 30, 2012, accumulated other comprehensive loss consisted solely of unrealized actuarial losses related to the Company's defined benefit pension and other postretirement plans. The following tables provide information regarding the changes in these unrealized actuarial losses during the twenty-six weeks ended June 30, 2013:

	Changes in Unrealized
	Actuarial Losses(a)
	(In thousands)
Balance, beginning of period	$	(68,511	)
Other comprehensive income before reclassifications		35,300
Amounts reclassified from accumulated other comprehensive loss to net income		501
Net current period other comprehensive income		35,801
Balance, end of period	$	(32,710	)

(a) All amounts are net of tax. Amounts in parentheses indicate debits.

	Amount Reclassified
	from Accumulated
Details about Accumulated Other Comprehensive Loss	Other Comprehensive				Affected Line Item in the Condensed Consolidated
Components	Loss(a)				Statement of Income
	(In thousands)
Amortization of defined benefit pension and other
postretirement plan actuarial losses:
Union Plan(b)	$	(18	)	(d)	Cost of goods sold
Legacy Gold Kist Plans(c)		(483	)	(d)	Selling, general and administrative expense
Total before tax		(501	)
Tax benefit (expense)		-
Total reclassification for the period	$	(501	)		Net of tax

(a)	Amounts in parentheses represent debits to results of operations.
(b)	The Company sponsors the Pilgrim's Pride Retirement Plan for Union Employees (the "Union Plan"), a qualified defined benefit pension plan covering certain locations or work groups with collective bargaining agreements.
(c)	The Company sponsors the Pilgrim's Pride Plan for Legacy Gold Kist Employees, a qualified defined benefit pension plan covering certain eligible U.S. employees who were employed at locations that the Company purchased through its acquisition of Gold Kist in 2007, the Former Gold Kist Inc. Supplemental Executive Retirement Plan, a nonqualified defined benefit retirement plan covering certain former Gold Kist executives, the Former Gold Kist Inc. Directors' Emeriti Plan, a nonqualified defined benefit retirement plan covering certain former Gold Kist directors , and the Gold Kist Inc. Retiree Life Insurance Plan, a defined benefit postretirement life insurance plan covering certain retired Gold Kist employees (collectively, the "Legacy Gold Kist Plans").
(d)	These accumulated other comprehensive income components are included in the computation of net periodic pension cost. See "Note 10. Pension and Other Postretirement Benefits" to the Condensed Consolidated Financial Statements.

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 Condensed 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.

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.