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 September 29, 2013 and December 30, 2012, the condensed consolidating statements of operations and comprehensive income for the thirteen and thirty-nine weeks ended September 29, 2013 and September 23, 2012, as well as the condensed consolidating statements of cash flows for the thirty-nine weeks ended September 29, 2013 and September 23, 2012 based on the guarantor structure.

CONDENSED CONSOLIDATING BALANCE SHEETS
September 29, 2013

(In thousands)
				Subsidiary		Subsidiary			Eliminations/
	Parent			Guarantor		Non-Guarantors			Adjustments			Consolidation
Cash and cash equivalents	$	259,985		$	-	$	70,331		$	-		$	330,316
Trade accounts and other receivables, less allowance for
doubtful accounts		352,947			1,925		52,130			-			407,002
Account receivable from JBS USA, LLC		4,454			-		-			-			4,454
Inventories		793,614			23,845		94,507			(880	)		911,086
Income taxes receivable		60,948			-		6,288			(587	)		66,649
Current deferred tax assets		-			3,794		506			(4,300	)		-
Prepaid expenses and other current assets		37,356			110		35,359			-			72,825
Assets held for sale		8,618			-		16,702			-			25,320
Total current assets		1,517,922			29,674		275,823			(5,767	)		1,817,652
Intercompany receivable		(27,638	)		95,893		-			(68,255	)		-
Investment in subsidiaries		457,862			-		-			(457,862	)		-
Deferred tax assets		63,292			-		419			(4,091	)		59,620
Other long-lived assets		38,263			-		180,568			(180,000	)		38,831
Identified intangible assets, net		24,444			-		9,516			-			33,960
Property, plant and equipment, net		1,014,598			45,529		103,119			(3,888	)		1,159,358
Total assets	$	3,088,743		$	171,096	$	569,445		$	(719,863	)	$	3,109,421
Accounts payable	$	309,014		$	13,086	$	47,934		$	-		$	370,034
Accounts payable to JBS USA, LLC		5,893			-		-			-			5,893
Accrued expenses and other current liabilities		307,251			31,325		(36,481	)		-			302,095
Income taxes payable		-			-		587			(587	)		-
Current deferred tax liabilities		84,572			-		577			(4,300	)		80,849
Current maturities of long-term debt		396			-		-			-			396
Total current liabilities		707,126			44,411		12,617			(4,887	)		759,267
Long-term debt, less current maturities		937,019			-		-			(25,000	)		912,019
Intercompany payable		-			-		68,255			(68,255	)		-
Deferred tax liabilities		-			3,794		297			(4,091	)		-
Other long-term liabilities		81,406			-		3,160			-			84,566
Total liabilities		1,725,551			48,205		84,329			(102,233	)		1,755,852
Total Pilgrim's Pride Corporation stockholders'
equity		1,363,192			122,891		482,651			(617,630	)		1,351,104
Noncontrolling interest		-			-		2,465			-			2,465
Total stockholders' equity		1,363,192			122,891		485,116			(617,630	)		1,353,569
Total liabilities and stockholders' equity	$	3,088,743		$	171,096	$	569,445		$	(719,863	)	$	3,109,421

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
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 September 29, 2013

(In thousands)
				Subsidiary		Subsidiary			Eliminations/
	Parent			Guarantor		Non-Guarantors			Adjustments			Consolidation
Net sales	$	1,889,353		$	132,942	$	245,372		$	(124,852	)	$	2,142,815
Cost of sales		1,676,605			117,753		235,856			(123,972	)		1,906,242
Gross profit		212,748			15,189		9,516			(880	)		236,573
Selling, general and administrative expense		36,976			1,068		5,753			-			43,797
Administrative restructuring charges		3,126			-		532			-			3,658
Operating income		172,646			14,121		3,231			(880	)		189,118
Interest expense, net		20,246			-		167			-			20,413
Interest income		(8	)		-		(563	)		-			(571	)
Foreign currency transaction losses (gains)		(1	)		-		2,683			-			2,682
Miscellaneous, net		(1,508	)		1,260		(98	)		338			(8	)
Income before income taxes		153,917			12,861		1,042			(1,218	)		166,602
Income tax expense (benefit)		13,643			-		(8,065	)		-			5,578
Income before equity in earnings of consolidated
subsidiaries		140,274			12,861		9,107			(1,218	)		161,024
Equity in earnings of consolidated subsidiaries		20,643			-		-			(20,643	)		-
Net income		160,917			12,861		9,107			(21,861	)		161,024
Less: Net income attributable to noncontrolling interest		-			-		107			-			107
Net income attributable to Pilgrim's Pride
Corporation	$	160,917		$	12,861	$	9,000		$	(21,861	)	$	160,917

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
Thirteen Weeks Ended September 29, 2013

(In thousands)
			Subsidiary		Subsidiary		Eliminations/
	Parent		Guarantor		Non-Guarantors		Adjustments			Consolidation
Net income	$	160,917	$	12,861	$	9,107	$	(21,861	)	$	161,024
Other comprehensive income:
Gains associated with pension and other
postretirement benefits, net of tax		313		-		-		-			313
Total other comprehensive income, net of tax		313		-		-		-			313
Comprehensive income		161,230		12,861		9,107		(21,861	)		161,337
Less: Comprehensive income attributable to
noncontrolling interests		-		-		107		-			107
Comprehensive income attributable to
Pilgrim's Pride Corporation	$	161,230	$	12,861	$	9,000	$	(21,861	)	$	161,230

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
Thirteen Weeks Ended September 23, 2012

(In thousands)
				Subsidiary			Subsidiary			Eliminations/
	Parent			Guarantor			Non-Guarantors			Adjustments			Consolidation
Net sales	$	1,809,883		$	71,124		$	246,519		$	(59,048	)	$	2,068,478
Cost of sales		1,741,370			64,999			215,022			(59,048	)		1,962,343
Gross profit		68,513			6,125			31,497			-			106,135
Selling, general and administrative expense		37,172			-			4,610			-			41,782
Administrative restructuring charges		2,647			-			-			-			2,647
Operating income		28,694			6,125			26,887			-			61,706
Interest expense, net		25,464			-			(204	)		-			25,260
Interest income, net		(277	)		-			21			-			(256	)
Foreign currency transaction gains		(33	)		-			(7,668	)		-			(7,701	)
Miscellaneous, net		(348	)		(2	)		560			203			413
Income before income taxes		3,888			6,127			34,178			(203	)		43,990
Income tax expense (benefit)		(3,584	)		2,313			2,320			-			1,049
Income before equity in earnings of
consolidated subsidiaries		7,472			3,814			31,858			(203	)		42,941
Equity in earnings of consolidated subsidiaries		35,459			-			-			(35,459	)		-
Net income		42,931			3,814			31,858			(35,662	)		42,941
Less: Net income attributable to noncontrolling interest		-			-			10			-			10
Net income attributable to Pilgrim's Pride
Corporation	$	42,931		$	3,814		$	31,848		$	(35,662	)	$	42,931

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
Thirteen Weeks Ended September 23, 2012

(In thousands)
				Subsidiary		Subsidiary			Eliminations/
	Parent			Guarantor		Non-Guarantors			Adjustments			Consolidation
Net income	$	42,931		$	3,814	$	31,858		$	(35,662	)	$	42,941
Other comprehensive income:
Unrealized holding gains on available-for-sale
securities, net of tax		-			-		(12	)		-			(12	)
Gains associated with pension and other
postretirement benefits, net of tax		(5,115	)		-		-			-			(5,115	)
Total other comprehensive income, net of tax		(5,115	)		-		(12	)		-			(5,127	)
Comprehensive income		37,816			3,814		31,846			(35,662	)		37,814
Less: Comprehensive income attributable to
noncontrolling interests		-			-		10			-			10
Comprehensive income attributable to
Pilgrim's Pride Corporation	$	37,816		$	3,814	$	31,836		$	(35,662	)	$	37,804

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
Thirty-Nine Weeks Ended September 29, 2013

(In thousands)
				Subsidiary		Subsidiary			Eliminations/
	Parent			Guarantor		Non-Guarantors			Adjustments			Consolidation
Net sales	$	5,538,779		$	404,360	$	801,270		$	(380,546	)	$	6,363,863
Cost of sales		5,059,584			366,769		679,661			(379,666	)		5,726,348
Gross profit		479,195			37,591		121,609			(880	)		637,515
Selling, general and administrative expense		111,473			3,187		17,228			-			131,888
Administrative restructuring charges		4,090			-		532			-			4,622
Operating income		363,632			34,404		103,849			(880	)		501,005
Interest expense, net		67,710			-		489			-			68,199
Interest income		(14	)		-		(1,480	)		-			(1,494	)
Foreign currency transaction losses (gains)		(10	)		-		4,781			-			4,771
Miscellaneous, net		(5,254	)		3,569		435			520			(730	)
Income before income taxes		301,200			30,835		99,624			(1,400	)		430,259
Income tax expense		528			5,764		17,924			-			24,216
Income before equity in earnings of consolidated
subsidiaries		300,672			25,071		81,700			(1,400	)		406,043
Equity in earnings of consolidated subsidiaries		105,532			-		-			(105,532	)		-
Net income		406,204			25,071		81,700			(106,932	)		406,043
Less: Net loss attributable to noncontrolling interest		-			-		(161	)		-			(161	)
Net income attributable to Pilgrim's Pride
Corporation	$	406,204		$	25,071	$	81,861		$	(106,932	)	$	406,204

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
Thirty-Nine Weeks Ended September 29, 2013

(In thousands)
			Subsidiary		Subsidiary			Eliminations/
	Parent		Guarantor		Non-Guarantors			Adjustments			Consolidation
Net income	$	406,204	$	25,071	$	81,700		$	(106,932	)	$	406,043
Other comprehensive income:
Gains associated with pension and other
postretirement benefits, net of tax		36,114		-		-			-			36,114
Total other comprehensive income, net of tax		36,114		-		-			-			36,114
Comprehensive income		442,318		25,071		81,700			(106,932	)		442,157
Less: Comprehensive loss attributable to
noncontrolling interests		-		-		(161	)		-			(161	)
Comprehensive income attributable to
Pilgrim's Pride Corporation	$	442,318	$	25,071	$	81,861		$	(106,932	)	$	442,318

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
Thirty-Nine Weeks Ended September 23, 2012

(In thousands)
				Subsidiary			Subsidiary			Eliminations/
	Parent			Guarantor			Non-Guarantors			Adjustments			Consolidation
Net sales	$	5,192,507		$	219,464		$	707,363		$	(187,614	)	$	5,931,720
Cost of sales		4,934,941			198,081			626,023			(187,614	)		5,571,431
Gross profit		257,566			21,383			81,340			-			360,289
Selling, general and administrative expense		116,726			-			14,751			-			131,477
Administrative restructuring charges		5,916			-			5			-			5,921
Operating income		134,924			21,383			66,584			-			222,891
Interest expense, net		78,234			-			196			-			78,430
Interest income		(293	)		-			(593	)		-			(886	)
Foreign currency transaction losses (gains)		15			-			(5,432	)		-			(5,417	)
Miscellaneous, net		(829	)		(13	)		160			410			(272	)
Income before income taxes		57,797			21,396			72,253			(410	)		151,036
Income tax expense (benefit)		(10,671	)		8,077			1,938			-			(656	)
Income before equity in earnings of
consolidated subsidiaries		68,468			13,319			70,315			(410	)		151,692
Equity in earnings of consolidated subsidiaries		82,994			-			-			(82,994	)		-
Net income		151,462			13,319			70,315			(83,404	)		151,692
Less: Net income attributable to noncontrolling interest		-			-			230			-			230
Net income attributable to Pilgrim's Pride
Corporation	$	151,462		$	13,319		$	70,085		$	(83,404	)	$	151,462

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
Thirty-Nine Weeks Ended September 23, 2012

(In thousands)
				Subsidiary		Subsidiary			Eliminations/
	Parent			Guarantor		Non-Guarantors			Adjustments			Consolidation
Net income	$	151,462		$	13,319	$	70,315		$	(83,404	)	$	151,692
Other comprehensive income:
Unrealized holding gains on available-for-sale
securities, net of tax		-			-		(12	)		-			(12	)
Gains associated with pension and other
postretirement benefits, net of tax		(16,140	)		-		-			-			(16,140	)
Total other comprehensive income, net of tax		(16,140	)		-		(12	)		-			(16,152	)
Comprehensive income		135,322			13,319		70,303			(83,404	)		135,540
Less: Comprehensive income attributable to
noncontrolling interests		-			-		230			-			230
Comprehensive income attributable to
Pilgrim's Pride Corporation	$	135,322		$	13,319	$	70,073		$	(83,404	)	$	135,310

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
Thirty-Nine Weeks Ended September 29, 2013

(In thousands)
				Subsidiary			Subsidiary			Eliminations/
	Parent			Guarantor			Non-Guarantors			Adjustments			Consolidation
Cash flows provided by operating activities	$	551,027		$	4,235		$	41,974		$	(520	)	$	596,716
Cash flows from investing activities:
Acquisitions of property, plant and equipment		(63,298	)		(4,240	)		(8,755	)		-			(76,293	)
Purchases of investment securities		-			-			-			-			-
Proceeds from property sales and disposals		2,288			5			1,037			-			3,330
Cash used in investing activities		(61,010	)		(4,235	)		(7,718	)		-			(72,963	)
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		(758,283	)		-			-			-			(758,283	)
Proceeds from sale of common stock		-			-			-			-			-
Payment of capitalized loan costs		(5,006	)		-			-			-			(5,006	)
Other financing activities		-			-			(520	)		520			-
Cash used in financing activities		(257,689	)		-			(520	)		520			(257,689	)
Effect of exchange rate changes on cash and cash equivalents		-			-			(3,928	)		-			(3,928	)
Increase in cash and cash equivalents		232,328			-			29,808			-			262,136
Cash and cash equivalents, beginning of period		27,657			-			40,523			-			68,180
Cash and cash equivalents, end of period	$	259,985		$	-		$	70,331		$	-		$	330,316

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
Thirty-Nine Weeks Ended September 23, 2012

(In thousands)
				Subsidiary			Subsidiary			Eliminations/
	Parent			Guarantor			Non-Guarantors			Adjustments			Consolidation
Cash flows provided by operating activities	$	138,384		$	1,299		$	16,257		$	21		$	155,961
Cash flows from investing activities:
Acquisitions of property, plant and equipment		(53,577	)		(1,329	)		(7,204	)		-			(62,110	)
Purchases of investment securities		(73	)		-			(89	)		-			(162	)
Proceeds from sale or maturity of investment securities		57			-			631			-			688
Proceeds from property sales and disposals		27,360			-			1,327			-			28,687
Cash used in investing activities		(26,233	)		(1,329	)		(5,335	)		-			(32,897	)
Cash flows from financing activities:
Payments on note payable to JBS USA Holdings, Inc.		(50,000	)		-			-			-			(50,000	)
Proceeds from long-term debt		595,800			-			-			-			595,800
Payments on long-term debt		(853,008	)		-			-			-			(853,008	)
Proceeds from sale of common stock		198,282			-			-			-			198,282
Other financing activities		-			-			21			(21	)		-
Cash provided by (used in) financing activities		(108,926	)		-			21			(21	)		(108,926	)
Effect of exchange rate changes on cash and cash equivalents		-			-			(717	)		-			(717	)
Increase (decrease) in cash and cash equivalents		3,225			(30	)		10,226			-			13,421
Cash and cash equivalents, beginning of period		13,733			30			27,846			-			41,609
Cash and cash equivalents, end of period	$	16,958		$	-		$	38,072		$	-		$	55,030