8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): February 14, 2018

PILGRIM'S PRIDE CORPORATION

(Exact Name of registrant as specified in its charter)
 

Delaware	1-9273		75-1285071
(State or other jurisdiction of incorporation)	(Commission File Number)		(IRS Employer Identification No.)
1770 Promontory Circle Greeley, CO		80634-9038
(Address of principal executive offices)		(Zip Code)

Registrant's telephone number, including area code: (970) 506-8000

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Item 2.02.Results of Operations and Financial Condition.

On February 14, 2018, Pilgrim’s Pride Corporation (the “Company”) issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

Effective February 14, 2018, Tarek Farahat notified the Company that he has resigned as a director of the Company. Mr. Farahat had been nominated to serve as director by the JBS Nominating Committee. In connection with his leaving the Board of Directors, Mr. Farahat did not advise the Company of any disagreement with the Company on any matter relating to its operations, policies or practices. The JBS Nominating Committee will convene to begin a search to fill the vacancy on the Board of Directors created by Mr. Farahat's resignation as soon a practicable.

On February 14, 2018, the Board of Directors approved the grant of restricted stock units (“RSUs”) of 157,928 shares and 47,378 shares for William W. Lovette and Fabio Sandri, respectively. The shares covered by the RSUs will vest on January 1, 2019.

Item 9.01Financial Statements and Exhibits.

Exhibit 99.1Press release dated February 14, 2018

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		PILGRIM’S PRIDE CORPORATION
Date:	February 14, 2018	/s/ Fabio Sandri
		Fabio Sandri
		Chief Financial Officer

EX-99.1

Pilgrim’s Pride Ends Fiscal Year 2017 with Net Sales of $10.77 Billion, Operating Income of 10% and Record GAAP EPS of $2.79

GREELEY, Colo., February 14, 2018 (GLOBE NEWSWIRE) - Pilgrim’s Pride Corporation (NASDAQ: PPC) reports fourth quarter and year-end 2017 financial results.

2017 Highlights

• Adjusted Operating Income margins of 11.8% in U.S., 10.6% in Mexico and 3.9% in Europe operations, respectively.

• Adjusted EBITDA of $1.39 billion (or a 12.9% margin and +54.3% versus last year, excluding Moy Park).

• Acquisition of Moy Park positions us as the global leader in chicken and chicken-based Prepared Foods, and aligns with our strategic priorities while providing a strong platform for future growth.

• GNP integration is progressing well; operations and profitability significantly improved with synergies captured ahead of plan, and are already on par with legacy operations.

• Completion of $141MM in strategic capital investments, including the Sanford, NC organic tray-pack facility and Prepared Foods Line, further increasing product portfolio differentiation, strengthening key customer relationships, and improving margin profile.

Fourth Quarter Results

• Consolidated numbers reflect Moy Park for the entire quarter and year, including historical data in accordance to U.S. GAAP.

• Net Sales of $2.74 billion (+43.5% versus same quarter last year of $1.91 billion, excluding Moy Park).

• Net Income of $134.3 million and GAAP EPS of $0.54.

• Adjusted Operating Income margins of 7.3% in U.S., 4.0% in Mexico and 5.0% in Europe operations, respectively, adjusted for non-recurring items related to weather events, Moy Park acquisition and Exchange Rate fluctuations.

• Adjusted EBITDA of $241.0 million (or an 8.8% margin).

1

Unaudited (2), In Millions, Except Per Share and Percentages
	Fourteen Weeks Ended	Thirteen Weeks Ended			Fifty-Three Weeks Ended	Fifty-Two Weeks Ended
	Dec 31, 2017		Dec 25, 2016	Y/Y Change	Dec 31, 2017		Dec 25, 2016	Y/Y Change
Net Sales	$2,742.4		$2,370.9	+15.7%	$10,767.9		$9,878.6	+9.0%
GAAP EPS	$0.54		$0.28	+92.9%	$2.79		$1.73	+61.3%
Operating Income	$155.0		$147.0	+5.4%	$1,072.3		$792.1	+35.4%
Adjusted EBITDA (1)	$241.0		$205.4	+17.3%	$1,388.0		$1,029.7	+34.8%
Adjusted EBITDA Margin (1)	8.8%		8.7%	+0.1pts	12.9%		10.4%	+2.5pts

(1) Reconciliations for non-GAAP measures are provided in subsequent sections within this release.

(2) Figures have been adjusted to include full-quarter and year of Moy Park, in accordance to U.S. GAAP.

“We generated strong, well-balanced consolidated performance in 2017. Our U.S. and Mexico operations were solid despite logistical challenges in Q4 due to the after-effects from natural events in Puerto Rico, Mexico and the U.S., while our newly acquired U.K. and continental Europe operations were consistent. The performance once again demonstrated the strength and diversity of our portfolio of bird sizes, and is what fundamentally differentiates us from the competition, giving us the potential to reduce volatility and generate higher margins over time. While small-bird and tray-pack have remained strong during Q4, conditions in the commodity markets declined in-line with seasonality but are already recovering well in the new year, indicating the continuation of chicken demand as the protein of choice in domestic and international markets. Facing significant challenges, we are very proud of our team members who had worked tirelessly to continue the operations of our facilities while assisting with rebuilding the local communities,” stated Bill Lovette, Chief Executive Officer of Pilgrim's.

“We completed the announced strategic capital investment improvements, including Sanford, NC and Moorefield, WV, which will diversify our portfolio by improving mix, reduce the impact of commodity markets, and further raise our margin profile. The Sanford conversion from commodity to organic tray-pack and the acquisition of GNP bring us leadership in premium-branded and NAE chickens while fulfilling our strategy of creating a portfolio of differentiated products to key customers.”

“We are continuing to improve the performance of the GNP operations. Margins have substantially increased since the acquisition just over a year ago and have reached parity with our legacy business during Q4. The integration is going well and we have extracted significant operating and product synergies, and are also preparing to expand the distribution of our premium Just Bare Brand. Combined with the success in improving the profitability of our acquired Mexican operations, we believe we have the methodology and the experienced personnel required to grow the operating and financial performance of our U.K. and continental Europe business.”

Conference Call Information

A conference call to discuss Pilgrim’s quarterly results will be held tomorrow, February 15, at 7:00 a.m. MT (9 a.m. ET). Participants are encouraged to pre-register for the conference call using the link below. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time.

To pre-register, go to: https://services.choruscall.com/links/ppc180215.html

You may also reach the pre-registration link by logging in through the investor section of our website at www.pilgrims.com and clicking on the link under “Upcoming Events.”

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For those who would like to join the call but have not pre-registered, access is available by dialing +1 (844) 883-3889 within the US, or +1 (412) 317-9245 internationally, and requesting the “Pilgrim’s Pride Conference.” Please note that to submit a question to management during the call, you must be logged in via telephone.

Replays of the conference call will be available on Pilgrim’s website approximately two hours after the call concludes and can be accessed through the “Investor” section of www.pilgrims.com. The webcast will be available for replay through May 15, 2018.

About Pilgrim’s Pride

Pilgrim’s employs approximately 51,300 people and operates chicken processing plants and prepared-foods facilities in 14 states, Puerto Rico, Mexico, the U.K, Ireland and continental Europe. The Company’s primary distribution is through retailers and foodservice distributors. For more information, please visit www.pilgrims.com.

Forward-Looking Statements

Statements contained in this press release that state the intentions, plans, hopes, beliefs, anticipations, expectations or predictions of the future of Pilgrim’s Pride Corporation and its management are considered forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ materially from those projected in such forward-looking statements include: matters affecting the poultry industry generally; the ability to execute the Company’s business plan to achieve desired cost savings and profitability; future pricing for feed ingredients and the Company’s products; outbreaks of avian influenza or other diseases, either in Pilgrim’s Pride’s flocks or elsewhere, affecting its ability to conduct its operations and/or demand for its poultry products; contamination of Pilgrim’s Pride’s products, which has previously and can in the future lead to product liability claims and product recalls; exposure to risks related to product liability, product recalls, property damage and injuries to persons, for which insurance coverage is expensive, limited and potentially inadequate; management of cash resources; restrictions imposed by, and as a result of, Pilgrim’s Pride’s leverage; changes in laws or regulations affecting Pilgrim’s Pride’s operations or the application thereof; new immigration legislation or increased enforcement efforts in connection with existing immigration legislation that cause the costs of doing business to increase, cause Pilgrim’s Pride to change the way in which it does business, or otherwise disrupt its operations; competitive factors and pricing pressures or the loss of one or more of Pilgrim’s Pride’s largest customers; currency exchange rate fluctuations, trade barriers, exchange controls, expropriation and other risks associated with foreign operations; disruptions in international markets and distribution channel, including anti-dumping proceedings and countervailing duty proceedings; and the impact of uncertainties of litigation as well as other risks described under “Risk Factors” in the Company’s Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission. Pilgrim’s Pride Corporation undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:	Dunham Winoto
	Director, Investor Relations
	IRPPC@pilgrims.com
	(970) 506-8192
	www.pilgrims.com

3

PILGRIM’S PRIDE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
	December 31, 2017			December 25, 2016
	(Unaudited)
	(In thousands, except share and par value data)
Cash and cash equivalents	$	581,510		$	292,544
Restricted cash and cash equivalents	8,021			4,979
Trade accounts and other receivables, less allowance for doubtful accounts	565,478			445,553
Account receivable from related parties	2,951			4,010
Inventories	1,255,070			975,608
Prepaid expenses and other current assets	102,550			81,932
Assets held for sale	708			5,259
Total current assets	2,516,288			1,809,885
Other long-lived assets	18,165			19,260
Identified intangible assets, net	617,163			471,591
Goodwill	1,001,889			887,221
Property, plant and equipment, net	2,095,147			1,833,985
Total assets	$	6,248,652		$	5,021,942
Accounts payable	$	762,444		$	790,378
Accounts payable to related parties	2,889			4,468
Accrued expenses	417,342			347,021
Income taxes payable	222,073			27,578
Current maturities of long-term debt	47,775			15,712
Total current liabilities	1,452,523			1,185,157
Long-term debt, less current maturities	2,635,617			1,396,124
Deferred tax liabilities	208,492			251,807
Other long-term liabilities	96,359			102,722
Total liabilities	4,392,991			2,935,810
Commitments and contingencies
Preferred stock, $.01 par value, 50,000,000 shares authorized; no shares issued	—			—
Common stock, $.01 par value, 800,000,000 shares authorized; 260,167,881 and 259,682,000 shares issued at year-end 2017 and year-end 2016, respectively; 248,752,508 and 249,046,139 shares outstanding at year-end 2017 and year-end 2016, respectively	2,602			307,288
Treasury stock, at cost, 11,415,373 shares and 10,635,861 shares at year-end 2017 and year-end 2016, respectively	(231,758		)	(217,117		)
Additional paid-in capital	1,932,509			3,100,332
Retained earnings (accumulated deficit)	173,943			(782,785		)
Accumulated other comprehensive loss	(31,140		)	(329,858		)
Total Pilgrim’s Pride Corporation stockholders’ equity	1,846,156			2,077,860
Noncontrolling interest	9,505			8,272
Total stockholders’ equity	1,855,661			2,086,132
Total liabilities and stockholders' equity	$	6,248,652		$	5,021,942

4

PILGRIM’S PRIDE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
	Fourteen Weeks Ended			Thirteen Weeks Ended			Fifty-Three Weeks Ended			Fifty-Two Weeks Ended
	December 31, 2017			December 25, 2016			December 31, 2017			December 25, 2016
	(In thousands, except per share data)
Net sales	$	2,742,352		$	2,370,883		$	10,767,863		$	9,878,564
Cost of sales	2,480,548			2,142,013			9,296,249			8,774,581
Gross profit	261,804			228,870			1,471,614			1,103,983
Selling, general and administrative expense	105,508			81,046			389,517			310,832
Administrative restructuring charges	1,279			790			9,775			1,069
Operating income	155,017			147,034			1,072,322			792,082
Interest expense, net of capitalized interest	40,868			17,156			107,183			75,636
Interest income	(4,130		)	(301		)	(7,730		)	(2,301		)
Foreign currency transaction loss (gain)	(159		)	5,824			(2,659		)	4,055
Miscellaneous, net	(1,340		)	(2,017		)	(6,538		)	(9,344		)
Income before income taxes	119,778			126,372			982,066			724,036
Income tax expense	(14,147		)	40,940			263,899			243,919
Net income	133,925			85,432			718,167			480,117
Less: Net income (loss) from Granite holdings Sarl prior to acquisition by PPC	—			15,283			23,486			40,388
Less: Net income (loss) attributable to noncontrolling interests	(412		)	(469		)	102			(803		)
Net income attributable to Pilgrim’s Pride Corporation	$	134,337		$	70,618		$	694,579		$	440,532
Weighted average shares of common stock outstanding:
Basic	248,753			250,853			248,738			253,669
Effect of dilutive common stock equivalents	241			542			233			457
Diluted	248,994			251,395			248,971			254,126
Net income attributable to Pilgrim's Pride Corporation per share of common stock outstanding:
Basic	$	0.54		$	0.28		$	2.79		$	1.74
Diluted	$	0.54		$	0.28		$	2.79		$	1.73

5

PILGRIM’S PRIDE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
	Fifty-Three Weeks Ended			Fifty-Two Weeks Ended
	December 31, 2017			December 25, 2016
	(In thousands)
Cash flows from operating activities:
Net income	$	718,167		$	480,117
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	277,792			231,708
Asset impairment	5,156			790
Foreign currency transaction gain related to borrowing arrangements	(1,387		)	—
Amortization of bond premium	(180		)	—
Gain on property disposals	(506		)	(8,914		)
Loss (gain) on equity method investments	(59		)	452
Share-based compensation	3,020			6,102
Deferred income tax expense (benefit)	(49,963		)	(5,034		)
Changes in operating assets and liabilities:
Trade accounts and other receivables	(82,169		)	(32,428		)
Inventories	(207,399		)	(33,083		)
Prepaid expenses and other current assets	(14,827		)	19,270
Accounts payable and accrued expenses	(22,827		)	75,893
Income taxes	188,120			75,238
Long-term pension and other postretirement obligations	(10,864		)	(10,165		)
Other	(753		)	(4,584		)
Cash provided by operating activities	801,321			795,362
Cash flows from investing activities:
Acquisitions of property, plant and equipment	(339,872		)	(340,960		)
Business acquisition	(658,520		)	—
Proceeds from property disposals	4,475			13,375
Proceeds from settlement of life insurance contract	1,845			—
Cash used in investing activities	(992,072		)	(327,585		)
Cash flows from financing activities:
Proceeds from notes payable to banks	—			36,838
Payments on note payable to bank	—			(65,564		)
Proceeds from long-term debt	1,871,818			593,015
Payments on long-term debt	(628,677		)	(570,015		)
Proceeds from equity contribution under Tax Sharing Agreement between JBS USA Food Company Holdings and Pilgrim's Pride Corporation	5,038			3,690
Tax benefit related to share-based compensation	—			—
Contributions from noncontrolling interests	—			7,252
Payment of capitalized loan costs	(13,631		)	(693		)
Purchase of common stock under share repurchase program	(14,641		)	(117,884		)
Purchase of common stock from retirement plan participants	—			(73		)
Payment of cash dividends	—			(714,785		)
Cash provided by financing activities	1,219,907			(828,219		)
Effect of exchange rate changes on cash and cash equivalents	16,364			(38,587		)
Increase in cash and cash equivalents	1,045,520			(399,029		)

6

Cash and cash equivalents, beginning of period	297,523		696,552
Cash and cash equivalents, end of period	$	1,343,043	$	297,523
Supplemental Disclosure Information:
Interest paid (net of amount capitalized)	$	81,260	$	69,857
Income taxes paid	122,956		161,026

7

PILGRIM’S PRIDE CORPORATION

Selected Financial Information

(Unaudited)

“EBITDA” is defined as the sum of net income (loss) plus interest, taxes, depreciation and amortization. “Adjusted EBITDA” is calculated by adding to EBITDA certain items of expense and deducting from EBITDA certain items of income that we believe are not indicative of our ongoing operating performance consisting of: (i) income (loss) attributable to non-controlling interests, (ii) restructuring charges, (iii) reorganization items, (iv) losses on early extinguishment of debt and (v) foreign currency transaction losses (gains). EBITDA is presented because it is used by management and we believe it is frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of results prepared in conformity with accounting principles generally accepted in the US (“GAAP”), to compare the performance of companies. We believe investors would be interested in our Adjusted EBITDA because this is how our management analyzes EBITDA. The Company also believes that Adjusted EBITDA, in combination with the Company’s financial results calculated in accordance with GAAP, provides investors with additional perspective regarding the impact of certain significant items on EBITDA and facilitates a more direct comparison of its performance with its competitors. EBITDA and Adjusted EBITDA are not measurements of financial performance under GAAP. They should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net income as indicators of our operating performance or any other measures of performance derived in accordance with GAAP.

PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted EBITDA
(Unaudited)	Fourteen Weeks Ended			Thirteen Weeks Ended			Fifty-Three Weeks Ended			Fifty-Two Weeks Ended
	December 31, 2017			December 25, 2016			December 31, 2017			December 25, 2016
	(In thousands)
Net income	$	133,925		$	85,432		$	718,167		$	480,117
Add:
Interest expense, net	36,738			16,855			99,453			73,335
Income tax expense (benefit)	(14,147		)	40,940			263,899			243,919
Depreciation and amortization	73,167			57,580			277,792			231,708
Minus:
Amortization of capitalized financing costs	2,839			2,465			5,968			5,324
EBITDA	226,844			198,342			1,353,343			1,023,755
Add:
Foreign currency transaction losses (gains)	(159		)	5,824			(2,659		)	4,055
Acquisition charges	4,567			—			19,606			—
Restructuring charges	1,279			790			9,775			1,069
Puerto Rico hurricane impact	8,066			—			8,066			—
Minus:
Net income (loss) attributable to noncontrolling interest	(412		)	(469		)	102			(803		)
Adjusted EBITDA	$	241,009		$	205,425		$	1,388,029		$	1,029,682

8

PILGRIM'S PRIDE CORPORATION
Reconciliation of EBITDA Margin
(Unaudited)		Fourteen Weeks Ended			Thirteen Weeks Ended			Fifty-Three Weeks Ended			Fifty-Two Weeks Ended			Fourteen Weeks Ended			Thirteen Weeks Ended			Fifty-Three Weeks Ended			Fifty-Two Weeks Ended
		December 31, 2017			December 25, 2016			December 31, 2017			December 25, 2016			December 31, 2017			December 25, 2016			December 31, 2017			December 25, 2016
	(In thousands)
Net income		$	133,925		$	85,432		$	718,167		$	480,117		4.88		%	3.60		%	6.67		%	4.86		%
Add:
Interest expense, net		36,738			16,855			99,453			73,335			1.34		%	0.71		%	0.92		%	0.74		%
Income tax expense (benefit)		(14,147		)	40,940			263,899			243,919			(0.52		)%	1.73		%	2.45		%	2.47		%
Depreciation and amortization		73,167			57,580			277,792			231,708			2.67		%	2.43		%	2.58		%	2.35		%
Minus:
Amortization of capitalized financing costs		2,839			2,465			5,968			5,324			0.10		%	0.10		%	0.06		%	0.05		%
EBITDA		226,844			198,342			1,353,343			1,023,755			8.27		%	8.37		%	12.57		%	10.36		%
Add:
Foreign currency transaction losses (gains)		(159		)	5,824			(2,659		)	4,055			(0.01		)%	0.25		%	(0.02		)%	0.04		%
Acquisition charges		4,567			—			19,606			—			0.17		%	—		%	0.18		%	—		%
Restructuring charges		1,279			790			9,775			1,069			0.05		%	0.03		%	0.09		%	0.01		%
Puerto Rico hurricane impact		8,066			—			8,066			—			0.29		%	—		%	0.07		%	—		%
Minus:
Net income (loss) attributable to noncontrolling interest		(412		)	(469		)	102			(803		)	(0.02		)%	(0.02		)%	—		%	(0.01		)%
Adjusted EBITDA		$	241,009		$	205,425		$	1,388,029		$	1,029,682		8.79		%	8.66		%	12.89		%	10.42		%
Net Revenue:		$	2,742,352		$	2,370,883		$	10,767,863		$	9,878,564		$	2,742,352		$	2,370,883		$	10,767,863		$	9,878,564

9

A reconciliation of GAAP operating income to adjusted operating income is as follows:

PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted Operating Income
(Unaudited)
	Fourteen Weeks Ended			Thirteen Weeks Ended			Fifty-Three Weeks Ended			Fifty-Two Weeks Ended
	December 31, 2017			December 25, 2016			December 31, 2017			December 25, 2016
	(In thousands)
GAAP operating income (US operations)	$	122,370		$	92,279		$	841,491		$	572,559
Administrative restructuring charges	529			790			9,025			1,069
Acquisition charges	4,567			—			19,606			—
Puerto Rico hurricane impact	8,066			—			8,066			—
Adjusted operating income (US operations)	$	135,532		$	93,069		$	878,188		$	573,628
Adjusted operating income margin (US operations)	7.19		%	5.82		%	11.80		%	8.60		%
GAAP operating income (Mexico operations)	$	7,390		$	32,000		$	153,631		$	140,856
Foreign exchange	6,100			—			(13,000		)	—
Adjusted operating income (Mexico operations)	$	13,490		$	32,000		$	140,631		$	140,856
Adjusted operating income margin (Mexico operations)	4.04		%	10.35		%	10.59		%	11.18		%
GAAP operating income (Europe operations)	$	25,231		$	22,731		$	77,105		$	78,572
Administrative restructuring charges	750			—			750			—
Adjusted operating income (Europe operations)	$	25,981		$	22,731		$	77,855		$	78,572
Adjusted operating income margin (Europe operations)	4.97		%	4.91		%	3.90		%	4.03		%

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PILGRIM'S PRIDE CORPORATION
Supplementary Selected Segment and Geographic Data
(Unaudited)
	Fourteen Weeks Ended			Thirteen Weeks Ended			Fifty-Three Weeks Ended			Fifty-Two Weeks Ended
	December 31, 2017			December 25, 2016			December 31, 2017			December 25, 2016
	(In thousands)
Sources of net sales by country of origin:
US:	$	1,886,133		$	1,599,052		$	7,443,222		$	6,671,403
Europe:	522,465			462,733			1,996,319			1,947,441
Mexico	333,754			309,098			1,328,322			1,259,720
Total net sales:	$	2,742,352		$	2,370,883		$	10,767,863		$	9,878,564
Sources of cost of sales by country of origin:
US:	$	1,691,586		$	1,458,670		$	6,348,411		$	5,929,318
Europe:	472,016			414,576			1,808,139			1,757,818
Mexico	316,972			268,791			1,139,794			1,087,540
Elimination:	(26		)	(24		)	(95		)	(95		)
Total cost of sales:	$	2,480,548		$	2,142,013		$	9,296,249		$	8,774,581
Sources of gross profit by country of origin:
US:	$	194,549		$	140,382		$	1,094,811		$	742,085
Europe:	50,446			48,157			188,180			189,623
Mexico	16,783			40,306			188,528			172,180
Elimination:	26			25			95			95
Total gross profit:	$	261,804		$	228,870		$	1,471,614		$	1,103,983
Sources of operating income by country of origin:
US:	$	122,370		$	92,279		$	841,491		$	572,559
Europe:	25,231			22,731			77,105			78,572
Mexico	7,390			32,000			153,631			140,856
Elimination:	26			24			95			95
Total operating income:	$	155,017		$	147,034		$	1,072,322		$	792,082

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