17. 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 March 30, 2014 and December 29, 2013, as well as the condensed consolidating statements of operations, comprehensive income and cash flows for the thirteen weeks ended March 30, 2014 and March 31, 2013 based on the guarantor structure.

CONDENSED CONSOLIDATING BALANCE SHEETS
March 30, 2014

				Subsidiary		Subsidiary			Eliminations/
	Parent			Guarantor		Non-Guarantors			Adjustments			Consolidation
		(In thousands)
Cash and cash equivalents	$	373,605		$	-	$	141,370		$	-		$	514,975
Investment in available-for-sale securities		37,005			-		-			-			37,005
Trade accounts and other receivables, less allowance for
doubtful accounts		328,375			1,409		43,825			-			373,609
Account receivable from JBS USA, LLC		3,220			-		-			-			3,220
Inventories		680,895			20,912		91,709			-			793,516
Income taxes receivable		13,596			-		7,626			(587	)		20,635
Current deferred tax assets		-			9,902		506			(8,181	)		2,227
Prepaid expenses and other current assets		45,413			260		27,241			-			72,914
Assets held for sale		5,849			-		-			-			5,849
Total current assets		1,487,958			32,483		312,277			(8,768	)		1,823,950
Intercompany receivable		(86,466	)		128,609		5			(42,148	)		-
Investment in subsidiaries		501,431			-		-			(501,431	)		-
Deferred tax assets		5,995			-		16,049			(5,995	)		16,049
Other long-lived assets		33,472			-		180,423			(180,000	)		33,895
Identified intangible assets, net		22,482			-		8,607			-			31,089
Property, plant and equipment, net		1,023,140			45,038		102,024			(4,768	)		1,165,434
Total assets	$	2,988,012		$	206,130	$	619,385		$	(743,110	)	$	3,070,417
Current maturities of long-term debt	$	205,357		$	-	$	-		$	-		$	205,357
Accounts payable		320,458			16,279		45,008			-			381,745
Account payable to JBS USA, LLC		6,144			-		-			-			6,144
Accrued expenses and other current liabilities		244,954			35,356		(4,580	)		-			275,730
Income taxes payable		-			-		587			(587	)		-
Current deferred tax liabilities		7,190			-		15,495			(7,190	)		15,495
Total current liabilities		784,103			51,635		56,510			(7,777	)		884,471
Long-term debt, less current maturities		527,077			-		-			(25,000	)		502,077
Intercompany payable		-			-		42,148			(42,148	)		-
Deferred tax liabilities		12,937			4,204		297			(6,986	)		10,452
Other long-term liabilities		84,135			-		3,293			-			87,428
Total liabilities		1,408,252			55,839		102,248			(81,911	)		1,484,428
Total Pilgrim's Pride Corporation stockholders'
equity		1,579,760			150,291		514,283			(661,199	)		1,583,135
Noncontrolling interest		-			-		2,854			-			2,854
Total stockholders' equity		1,579,760			150,291		517,137			(661,199	)		1,585,989
Total liabilities and stockholders' equity	$	2,988,012		$	206,130	$	619,385		$	(743,110	)	$	3,070,417

CONDENSED CONSOLIDATING BALANCE SHEETS
December 29, 2013

				Subsidiary		Subsidiary			Eliminations/
	Parent			Guarantor		Non-Guarantors			Adjustments			Consolidation
						(In thousands)
Cash and cash equivalents	$	413,092		$	-	$	95,114		$	-		$	508,206
Investment in available-for-sale securities		96,902			-		-			-			96,902
Trade accounts and other receivables, less
allowance for doubtful accounts		327,367			1,380		47,931			-			376,678
Account receivable from JBS USA, LLC		2,388			-		-			-			2,388
Inventories		696,604			20,215		92,013			-			808,832
Income taxes receivable		52,662			-		12,793			(587	)		64,868
Current deferred tax assets		3,213			5,698		506			(7,190	)		2,227
Prepaid expenses and other current assets		34,881			270		26,697			-			61,848
Assets held for sale		6,798			-		235			-			7,033
Total current assets		1,633,907			27,563		275,289			(7,777	)		1,928,982
Intercompany receivable		(64,772	)		114,707		-			(49,935	)		-
Investment in subsidiaries		472,431			-		-			(472,431	)		-
Deferred tax assets		5,995			-		18,924			(5,998	)		18,921
Other long-lived assets		37,282			-		182,881			(180,000	)		40,163
Identified intangible assets, net		23,463			-		9,062			-			32,525
Property, plant and equipment, net		1,009,711			44,643		102,221			(4,764	)		1,151,811
Total assets	$	3,118,017		$	186,913	$	588,377		$	(720,905	)	$	3,172,402
Current maturities of long-term debt	$	410,234		$	-	$	-		$	-		$	410,234
Accounts payable		308,154			12,711		49,495			-			370,360
Account payable to JBS USA, LLC		3,934			-		-			-			3,934
Accrued expenses and other current liabilities		269,062			33,821		(19,528	)		-			283,355
Income taxes payable		-			-		587			(587	)		-
Current deferred tax liabilities		7,190			-		15,515			(7,190	)		15,515
Total current liabilities		998,574			46,532		46,069			(7,777	)		1,083,398
Long-term debt, less current maturities		526,999			-		-			(25,000	)		501,999
Intercompany payable		-			-		49,935			(49,935	)		-
Deferred tax liabilities		13,944			5,698		297			(5,995	)		13,944
Other long-term liabilities		77,228			-		3,231			-			80,459
Total liabilities		1,616,745			52,230		99,532			(88,707	)		1,679,800
Total Pilgrim's Pride Corporation stockholders'
equity		1,501,272			134,683		486,061			(632,198	)		1,489,818
Noncontrolling interest		-			-		2,784			-			2,784
Total stockholders' equity		1,501,272			134,683		488,845			(632,198	)		1,492,602
Total liabilities and stockholders' equity	$	3,118,017		$	186,913	$	588,377		$	(720,905	)	$	3,172,402

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
Thirteen Weeks Ended March 30, 2014

				Subsidiary			Subsidiary			Eliminations/
	Parent			Guarantor			Non-Guarantors			Adjustments			Consolidation
	(In thousands)
Net sales	$	1,753,068		$	112,550		$	257,995		$	(105,548	)	$	2,018,065
Cost of sales		1,597,091			98,853			212,563			(105,548	)		1,802,959
Gross profit		155,977			13,697			45,432			-			215,106
Selling, general and administrative expense		38,575			1,238			5,388			-			45,201
Administrative restructuring charges		1,713			-			-			-			1,713
Operating income		115,689			12,459			40,044			-			168,192
Interest expense, net		19,325			(14	)		162			-			19,473
Interest income		(162	)		-			(649	)		-			(811	)
Foreign currency transaction losses		3			-			334			-			337
Miscellaneous, net		(2,641	)		1,645			(78	)		68			(1,006	)
Income before income taxes		99,164			10,828			40,275			(68	)		150,199
Income tax expense (benefit)		32,806			5,764			13,442			-			52,012
Income before equity in earnings of consolidated
subsidiaries		66,358			5,064			26,833			(68	)		98,187
Equity in earnings of consolidated subsidiaries		31,759			-			-			(31,759	)		-
Net income (loss)		98,117			5,064			26,833			(31,827	)		98,187
Less: Net loss attributable to noncontrolling interest		-			-			70			-			70
Net income (loss) attributable to Pilgrim's Pride
Corporation	$	98,117		$	5,064		$	26,763		$	(31,827	)	$	98,117

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
Thirteen Weeks Ended March 31, 2013

				Subsidiary		Subsidiary			Eliminations/
	Parent			Guarantor		Non-Guarantors			Adjustments			Consolidation
	(In thousands)
Net sales	$	1,769,794		$	75,660	$	259,199		$	(67,724	)	$	2,036,929
Cost of sales		1,704,798			66,934		214,487			(67,724	)		1,918,495
Gross profit		64,996			8,726		44,712			-			118,434
Selling, general and administrative expense		37,484			1,008		5,500			-			43,992
Administrative restructuring charges		484			-		-			-			484
Operating income		27,028			7,718		39,212			-			73,958
Interest expense, net		24,683			-		138			-			24,821
Interest income		(3	)		-		(213	)		-			(216	)
Foreign currency transaction losses		(10	)		-		(7,614	)		-			(7,624	)
Miscellaneous, net		(1,715	)		1,221		530			(41	)		(5	)
Income before income taxes		4,073			6,497		46,371			41			56,982
Income tax expense (benefit)		(5,871	)		1,969		6,656			-			2,754
Income before equity in earnings of consolidated
subsidiaries		9,944			4,528		39,715			41			54,228
Equity in earnings of consolidated subsidiaries		44,638			-		-			(44,638	)		-
Net income (loss)		54,582			4,528		39,715			(44,597	)		54,228
Less: Net loss attributable to noncontrolling interest		-			-		(354	)		-			(354	)
Net income (loss) attributable to Pilgrim's Pride
Corporation	$	54,582		$	4,528	$	40,069		$	(44,597	)	$	54,582

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
Thirteen Weeks Ended March 30, 2014

				Subsidiary		Subsidiary		Eliminations/
	Parent			Guarantor		Non-Guarantors		Adjustments			Consolidation
	(In thousands)
Net income (loss)		98,117			5,064		26,833		(31,827	)		98,187
Other comprehensive loss:
Loss associated with available-for-sale
securities, net of tax		(36	)		-		-		-			(36	)
Loss associated with pension and other
postretirement benefits, net of tax		(5,786	)		-		-		-			(5,786	)
Total other comprehensive loss, net of tax		(5,822	)		-		-		-			(5,822	)
Comprehensive income (loss)		92,295			5,064		26,833		(31,827	)		92,365
Less: Comprehensive loss attributable to
noncontrolling interests		-			-		70		-			70
Comprehensive income (loss) attributable to
Pilgrim's Pride Corporation	$	92,295		$	5,064	$	26,763	$	(31,827	)	$	92,295

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
Thirteen Weeks Ended March 31, 2013

			Subsidiary		Subsidiary			Eliminations/
	Parent		Guarantor		Non-Guarantors			Adjustments			Consolidation
	(In thousands)
Net income (loss)	$	54,582	$	4,528	$	39,715		$	(44,597	)	$	54,228
Other comprehensive income:
Gains associated with pension and other
postretirement benefits, net of tax		10,410		-		-			-			10,410
Total other comprehensive income, net of tax		10,410		-		-			-			10,410
Comprehensive income (loss)		64,992		4,528		39,715			(44,597	)		64,638
Less: Comprehensive loss attributable to
noncontrolling interests		-		-		(354	)		-			(354	)
Comprehensive income (loss) attributable to
Pilgrim's Pride Corporation	$	64,992	$	4,528	$	40,069		$	(44,597	)	$	64,992

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
Thirteen Weeks Ended March 30, 2014

				Subsidiary			Subsidiary			Eliminations/
	Parent			Guarantor			Non-Guarantors			Adjustments			Consolidation
	(In thousands)
Cash flows provided (used in) by operating activities	$	147,553		$	1,854		$	46,362		$	(68	)	$	195,701
Cash flows from investing activities:
Acquisitions of property, plant and equipment		(43,177	)		(1,854	)		(2,729	)		-			(47,760	)
Purchases of investment securities		(37,000	)		-			-			-			(37,000	)
Proceeds from sale or maturity of investment securities		96,950			-			-			-			96,950
Proceeds from property sales and disposals		1,100			-			411			-			1,511
Cash provided by (used in) investing activities		17,873			(1,854	)		(2,318	)		-			13,701
Cash flows from financing activities:
Payments on long-term debt		(204,913	)		-			-			-			(204,913	)
Other financing activities		-			-			(68	)		68			-
Cash provided by (used in) financing activities		(204,913	)		-			(68	)		68			(204,913	)
Effect of exchange rate changes on cash and cash equivalents		-			-			2,280			-			2,280
Increase (decrease) in cash and cash equivalents		(39,487	)		-			46,256			-			6,769
Cash and cash equivalents, beginning of period		413,092			-			95,114			-			508,206
Cash and cash equivalents, end of period	$	373,605		$	-		$	141,370		$	-		$	514,975

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
Thirteen Weeks Ended March 31, 2013

				Subsidiary			Subsidiary			Eliminations/
	Parent			Guarantor			Non-Guarantors			Adjustments			Consolidation
	(In thousands)
Cash flows provided (used in) by operating activities	$	30,076		$	1,445		$	(10,923	)	$	41		$	20,639
Cash flows from investing activities:
Acquisitions of property, plant and equipment		(21,547	)		(1,445	)		(2,786	)		-			(25,778	)
Proceeds from property sales and disposals		1,054			-			606			-			1,660
Cash used in investing activities		(20,493	)		(1,445	)		(2,180	)		-			(24,118	)
Cash flows from financing activities:
Proceeds from long-term debt		288,500			-			-			-			288,500
Payments on long-term debt		(311,005	)		-			-			-			(311,005	)
Other financing activities		-			-			41			(41	)		-
Cash provided by (used in) financing activities		(22,505	)		-			41			(41	)		(22,505	)
Effect of exchange rate changes on cash and cash equivalents		-			-			1,364			-			1,364
Increase (decrease) in cash and cash equivalents		(12,922	)		-			(11,698	)		-			(24,620	)
Cash and cash equivalents, beginning of period		27,657			-			40,523			-			68,180
Cash and cash equivalents, end of period	$	14,735		$	-		$	28,825		$	-		$	43,560