16. SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION

On December 15, 2010, the Company sold 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 30, 2013 and December 30, 2012, the condensed consolidating statements of operations and comprehensive income for the thirteen and twenty-six weeks ended June 30, 2013 and June 24, 2012, as well as the condensed consolidating statements of cash flows for the twenty-six weeks ended June 30, 2013 and June 24, 2012 based on the guarantor structure.

CONDENSED CONSOLIDATING BALANCE SHEETS
June 30, 2013

(In thousands)
				Subsidiary		Subsidiary			Eliminations/
	Parent			Guarantor		Non-Guarantors			Adjustments			Consolidation
Cash and cash equivalents	$	35,866		$	112	$	42,253		$	-		$	78,231
Restricted cash and cash equivalents		-			-		-			-			-
Investment in available-for-sale securities		-			-		-			-			-
Trade accounts and other receivables, less allowance for
doubtful accounts		329,338			2,053		59,070			-			390,461
Account receivable from JBS USA, LLC		3,892			-		-			-			3,892
Inventories		803,524			26,351		122,316			-			952,191
Income taxes receivable		60,975			-		-			(587	)		60,388
Current deferred tax assets		-			3,794		506			(4,300	)		-
Prepaid expenses and other current assets		35,920			107		35,139			-			71,166
Assets held for sale		11,587			-		17,243			-			28,830
Total current assets		1,281,102			32,417		276,527			(4,887	)		1,585,159
Intercompany receivable		(18,037	)		78,873		-			(60,836	)		-
Investment in subsidiaries		440,081			-		-			(440,081	)		-
Deferred tax assets		101,099			-		426			(4,091	)		97,434
Other long-lived assets		38,364			-		180,577			(180,000	)		38,941
Identified intangible assets, net		25,424			-		9,971			-			35,395
Property, plant and equipment, net		1,021,907			45,452		103,514			(3,888	)		1,166,985
Total assets	$	2,889,940		$	156,742	$	571,015		$	(693,783	)	$	2,923,914
Accounts payable	$	267,059		$	12,871	$	47,255		$	-		$	327,185
Accounts payable to JBS USA, LLC		5,793			-		-			-			5,793
Accrued expenses and other current liabilities		284,682			28,999		(28,606	)		-			285,075
Income taxes payable		-			-		11,179			(587	)		10,592
Current deferred tax liabilities		108,200			-		586			(4,300	)		104,486
Current maturities of long-term debt		393			-		-			-			393
Total current liabilities		666,127			41,870		30,414			(4,887	)		733,524
Long-term debt, less current maturities		936,939			-		-			(25,000	)		911,939
Intercompany payable		-			-		60,836			(60,836	)		-
Deferred tax liabilities		-			3,794		297			(4,091	)		-
Other long-term liabilities		83,891			-		3,140			-			87,031
Total liabilities		1,686,957			45,664		94,687			(94,814	)		1,732,494
Total Pilgrim's Pride Corporation stockholders'
equity		1,202,983			111,078		473,970			(598,969	)		1,189,062
Noncontrolling interest		-			-		2,358			-			2,358
Total stockholders' equity		1,202,983			111,078		476,328			(598,969	)		1,191,420
Total liabilities and stockholders' equity	$	2,889,940		$	156,742	$	571,015		$	(693,783	)	$	2,923,914

CONDENSED CONSOLIDATING BALANCE SHEETS
December 30, 2012

(In thousands)
			Subsidiary		Subsidiary		Eliminations/
	Parent		Guarantor		Non-Guarantors		Adjustments			Consolidation
Cash and cash equivalents	$	27,657	$	-	$	40,523	$	-		$	68,180
Restricted cash and cash equivalents		-		-		-		-			-
Investment in available-for-sale securities		-		-		-		-			-
Trade accounts and other receivables, less
allowance for doubtful accounts		326,031		1,843		57,056		-			384,930
Account receivable from JBS USA, LLC		1,514		-		-		-			1,514
Inventories		802,282		22,813		125,201		-			950,296
Income taxes receivable		55,306		-		-		(587	)		54,719
Current deferred tax assets		-		3,794		506		(4,300	)		-
Prepaid expenses and other current assets		29,603		-		26,444		-			56,047
Assets held for sale		9,808		-		17,234		-			27,042
Total current assets		1,252,201		28,450		266,964		(4,887	)		1,542,728
Investment in available-for-sale securities		-		-		-		-			-
Intercompany receivable		19,860		53,706		-		(73,566	)		-
Investment in subsidiaries		376,226		-		-		(376,226	)		-
Deferred tax assets		101,100		-		422		(4,091	)		97,431
Other long-lived assets		44,936		-		180,587		(180,000	)		45,523
Identified intangible assets, net		27,386		-		10,880		-			38,266
Property, plant and equipment, net		1,043,696		45,746		104,368		(3,889	)		1,189,921
Total assets	$	2,865,405	$	127,902	$	563,221	$	(642,659	)	$	2,913,869
Accounts payable	$	255,517	$	4,270	$	52,578	$	-		$	312,365
Accounts payable to JBS USA, LLC		13,436		-		-		-			13,436
Accrued expenses and other current liabilities		230,278		24,265		28,997		-			283,540
Income taxes payable		-		-		1,055		(587	)		468
Current deferred tax liabilities		108,201		-		581		(4,300	)		104,482
Current maturities of long-term debt		15,886		-		-		-			15,886
Total current liabilities		623,318		28,535		83,211		(4,887	)		730,177
Long-term debt, less current maturities		1,173,870		-		-		(25,000	)		1,148,870
Intercompany payable		-		-		73,566		(73,566	)		-
Deferred tax liabilities		-		3,794		297		(4,091	)		-
Other long-term liabilities		122,580		-		3,245		-			125,825
Total liabilities		1,919,768		32,329		160,319		(107,544	)		2,004,872
Total Pilgrim's Pride Corporation
stockholders' equity		945,637		95,573		400,276		(535,115	)		906,371
Noncontrolling interest		-		-		2,626		-			2,626
Total stockholders' equity		945,637		95,573		402,902		(535,115	)		908,997
Total liabilities and stockholders' equity	$	2,865,405	$	127,902	$	563,221	$	(642,659	)	$	2,913,869

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
Thirteen Weeks Ended June 30, 2013

(In thousands)
				Subsidiary		Subsidiary			Eliminations/
	Parent			Guarantor		Non-Guarantors			Adjustments			Consolidation
Net sales	$	1,879,632		$	195,758	$	296,699		$	(187,970	)	$	2,184,119
Cost of sales		1,678,181			182,082		229,318			(187,970	)		1,901,611
Gross profit		201,451			13,676		67,381			-			282,508
Selling, general and administrative expense		37,013			1,111		5,975			-			44,099
Administrative restructuring charges		480			-		-			-			480
Operating income		163,958			12,565		61,406			-			237,929
Interest expense, net		22,781			-		184			-			22,965
Interest income		(3	)		-		(704	)		-			(707	)
Foreign currency transaction losses		1			-		9,712			-			9,713
Miscellaneous, net		(2,031	)		1,088		3			223			(717	)
Income before income taxes		143,210			11,477		52,211			(223	)		206,675
Income tax expense (benefit)		(5,969	)		3,885		17,968			-			15,884
Income before equity in earnings of
consolidated subsidiaries		149,179			7,592		34,243			(223	)		190,791
Equity in earnings of consolidated subsidiaries		41,526			-		-			(41,526	)		-
Net income (loss)		190,705			7,592		34,243			(41,749	)		190,791
Less: Net income attributable to noncontrolling
interest		-			-		86			-			86
Net income (loss) attributable to Pilgrim's Pride
Corporation	$	190,705		$	7,592	$	34,157		$	(41,749	)	$	190,705

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
Thirteen Weeks Ended June 30, 2013

(In thousands)
			Subsidiary		Subsidiary		Eliminations/
	Parent		Guarantor		Non-Guarantors		Adjustments			Consolidation
Net income (loss)	$	190,705	$	7,592	$	34,243	$	(41,749	)	$	190,791
Other comprehensive income:
Unrealized holding gains on available-for-sale
securities, net of tax		-		-		-		-			-
Gains associated with pension and other
postretirement benefits, net of tax		25,391		-		-		-			25,391
Total other comprehensive income, net of tax		25,391		-		-		-			25,391
Comprehensive income (loss)		216,096		7,592		34,243		(41,749	)		216,182
Less: Comprehensive income attributable to
noncontrolling interests		-		-		86		-			86
Comprehensive income (loss) attributable to
Pilgrim's Pride Corporation	$	216,096	$	7,592	$	34,157	$	(41,749	)	$	216,096

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

(In thousands)
				Subsidiary			Subsidiary			Eliminations/
	Parent			Guarantor			Non-Guarantors			Adjustments			Consolidation
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 (gains)		25			-			8,187			-			8,212
Miscellaneous, net		(363	)		(2	)		129			(79	)		(315	)
Income (loss) 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 (loss) before equity in earnings of
consolidated subsidiaries		55,178			3,932			9,964			79			69,153
Equity in earnings of consolidated subsidiaries		14,180			-			-			(14,180	)		-
Net income (loss)		69,358			3,932			9,964			(14,101	)		69,153
Less: Net loss attributable to noncontrolling interest		-			-			(205	)		-			(205	)
Net income (loss) attributable to Pilgrim's Pride
Corporation	$	69,358		$	3,932		$	10,169		$	(14,101	)	$	69,358

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
Thirteen Weeks Ended June 24, 2012

(In thousands)
				Subsidiary		Subsidiary			Eliminations/
	Parent			Guarantor		Non-Guarantors			Adjustments			Consolidation
Net income (loss)	$	69,358		$	3,932	$	9,964		$	(14,101	)	$	69,153
Other comprehensive income:
Unrealized holding gains on available-for-sale
securities, net of tax		-			-		(5	)		-			(5	)
Gains associated with pension and other
postretirement benefits, net of tax		(11,440	)		-		-			-			(11,440	)
Total other comprehensive income, net of tax		(11,440	)		-		(5	)		-			(11,445	)
Comprehensive income (loss)		57,918			3,932		9,959			(14,101	)		57,708
Less: Comprehensive loss attributable to
noncontrolling interests		-			-		(205	)		-			(205	)
Comprehensive income (loss) attributable to
Pilgrim's Pride Corporation	$	57,918		$	3,932	$	10,164		$	(14,101	)	$	57,913

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
Twenty-Six Weeks Ended June 30, 2013

(In thousands)
				Subsidiary		Subsidiary			Eliminations/
	Parent			Guarantor		Non-Guarantors			Adjustments			Consolidation
Net sales	$	3,649,426		$	271,418	$	555,898		$	(255,694	)	$	4,221,048
Cost of sales		3,382,979			249,016		443,805			(255,694	)		3,820,106
Gross profit		266,447			22,402		112,093			-			400,942
Selling, general and administrative expense		74,497			2,119		11,475			-			88,091
Administrative restructuring charges		964			-		-			-			964
Operating income		190,986			20,283		100,618			-			311,887
Interest expense, net		47,464			-		322			-			47,786
Interest income		(6	)		-		(917	)		-			(923	)
Foreign currency transaction losses		(9	)		-		2,098			-			2,089
Miscellaneous, net		(3,746	)		2,309		533			182			(722	)
Income before income taxes		147,283			17,974		98,582			(182	)		263,657
Income tax expense (benefit)		(11,840	)		5,854		24,624			-			18,638
Income before equity in earnings of
consolidated subsidiaries		159,123			12,120		73,958			(182	)		245,019
Equity in earnings of consolidated subsidiaries		86,164			-		-			(86,164	)		-
Net income (loss)		245,287			12,120		73,958			(86,346	)		245,019
Less: Net loss attributable to noncontrolling interest		-			-		(268	)		-			(268	)
Net income (loss) attributable to Pilgrim's Pride
Corporation	$	245,287		$	12,120	$	74,226		$	(86,346	)	$	245,287

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
Twenty-Six Weeks Ended June 30, 2013

(In thousands)
			Subsidiary		Subsidiary			Eliminations/
	Parent		Guarantor		Non-Guarantors			Adjustments			Consolidation
Net income (loss)	$	245,287	$	12,120	$	73,958		$	(86,346	)	$	245,019
Other comprehensive income:
Unrealized holding gains on available-for-sale
securities, net of tax		-		-		-			-			-
Gains associated with pension and other
postretirement benefits, net of tax		35,801		-		-			-			35,801
Total other comprehensive income, net of tax		35,801		-		-			-			35,801
Comprehensive income (loss)		281,088		12,120		73,958			(86,346	)		280,820
Less: Comprehensive loss attributable to
noncontrolling interests		-		-		(268	)		-			(268	)
Comprehensive income (loss) attributable to
Pilgrim's Pride Corporation	$	281,088	$	12,120	$	74,226		$	(86,346	)	$	281,088

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

(In thousands)
				Subsidiary			Subsidiary			Eliminations/
	Parent			Guarantor			Non-Guarantors			Adjustments			Consolidation
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 (gains)		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		47,535			-			-			(47,535	)		-
Net income (loss)		108,531			9,505			38,457			(47,742	)		108,751
Less: Net income attributable to noncontrolling
interest		-			-			220			-			220
Net income (loss) attributable to Pilgrim's Pride
Corporation	$	108,531		$	9,505		$	38,237		$	(47,742	)	$	108,531

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
Twenty-Six Weeks Ended June 24, 2012

(In thousands)
				Subsidiary		Subsidiary		Eliminations/
	Parent			Guarantor		Non-Guarantors		Adjustments			Consolidation
Net income (loss)	$	108,531		$	9,505	$	38,457	$	(47,742	)	$	108,751
Other comprehensive income:
Unrealized holding gains on available-for-sale
securities, net of tax		-			-		-		-			-
Gains associated with pension and other
postretirement benefits, net of tax		(11,025	)		-		-		-			(11,025	)
Total other comprehensive income, net of tax		(11,025	)		-		-		-			(11,025	)
Comprehensive income (loss)		97,506			9,505		38,457		(47,742	)		97,726
Less: Comprehensive income attributable to
noncontrolling interests		-			-		220		-			220
Comprehensive income (loss) attributable to
Pilgrim's Pride Corporation	$	97,506		$	9,505	$	38,237	$	(47,742	)	$	97,506

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
Twenty-Six Weeks Ended June 30, 2013

(In thousands)
				Subsidiary			Subsidiary			Eliminations/
	Parent			Guarantor			Non-Guarantors			Adjustments			Consolidation
Cash flows provided (used in) by operating activities	$	299,035		$	2,747		$	9,327		$	(182	)	$	310,927
Cash flows from investing activities:
Acquisitions of property, plant and equipment		(40,170	)		(2,640	)		(6,159	)		-			(48,969	)
Purchases of investment securities		-			-			-			-			-
Proceeds from property sales and disposals		1,995			5			883			-			2,883
Cash used in investing activities		(38,175	)		(2,635	)		(5,276	)		-			(46,086	)
Cash flows from financing activities:
Payments on note payable to JBS USA Holdings, Inc.		-			-			-			-			-
Proceeds from long-term debt		505,600			-			-			-			505,600
Payments on long-term debt		(758,251	)		-			-			-			(758,251	)
Proceeds from sale of common stock		-			-			-			-			-
Other financing activities		-			-			(182	)		182			-
Cash provided by (used in) financing activities		(252,651	)		-			(182	)		182			(252,651	)
Effect of exchange rate changes on cash and cash equivalents		-			-			(2,139	)		-			(2,139	)
Increase (decrease) in cash and cash equivalents		8,209			112			1,730			-			10,051
Cash and cash equivalents, beginning of period		27,657			-			40,523			-			68,180
Cash and cash equivalents, end of period	$	35,866		$	112		$	42,253		$	-		$	78,231

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

(In thousands)
				Subsidiary			Subsidiary			Eliminations/
	Parent			Guarantor			Non-Guarantors			Adjustments			Consolidation
Cash flows provided (used in) 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