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BUSINESS SEGMENT AND GEOGRAPHIC REPORTING
12 Months Ended
Dec. 30, 2018
Segment Reporting [Abstract]  
BUSINESS SEGMENT AND GEOGRAPHIC REPORTING
BUSINESS SEGMENT AND GEOGRAPHIC REPORTING
The Company operates in three reportable business segments, U.S., U.K. and Europe, and Mexico. The Company measures segment profit as operating income. Corporate expenses are allocated to Mexico based upon various apportionment methods for specific expenditures incurred related thereto with the remaining amounts allocated to the U.S.
On September 8, 2017, the Company acquired Moy Park, one of the top-ten food companies in the U.K., Northern Ireland's largest private sector business and one of Europe's leading poultry producers, from JBS S.A. in a common-control transaction. Moy Park's results from operations subsequent to the common-control date of September 30, 2015 comprise the U.K. and Europe segment.
On January 6, 2017, the Company acquired GNP, a vertically integrated poultry business with locations in Minnesota and Wisconsin. GNP's results from operations subsequent to the acquisition date are included in the U.S. segment.
Net sales to customers by customer location and long-lived assets are as follows:
 
 
December 30, 2018
 
December 31, 2017
 
December 25, 2016
 
 
(In thousands)
Net sales
 
 
 
 
 
 
U.S.
 
$
7,425,661

 
$
7,443,222

 
$
6,671,403

U.K. and Europe
 
2,148,666

 
1,996,319

 
1,947,441

Mexico
 
1,363,457

 
1,328,322

 
1,259,720

Total
 
$
10,937,784

 
$
10,767,863

 
$
9,878,564

 
 
December 30, 2018
 
December 31, 2017
 
December 25, 2016
 
 
(In thousands)
Operating income
 
 
 
 
 
 
U.S.
 
$
291,381

 
$
841,492

 
$
572,558

U.K. and Europe
 
84,524

 
77,105

 
78,572

Mexico
 
119,649

 
153,631

 
140,857

Elimination
 
132

 
94

 
95

Total operating income
 
$
495,686

 
$
1,072,322

 
$
792,082

Interest expense, net of capitalized interest
 
162,812

 
107,183

 
75,636

Interest income
 
(13,811
)
 
(7,730
)
 
(2,301
)
Foreign currency transaction gain
 
17,160

 
(2,659
)
 
4,055

Miscellaneous, net
 
(2,702
)
 
(6,538
)
 
(9,344
)
Income before income taxes
 
$
332,227

 
$
982,066

 
$
724,036

 
 
December 30, 2018
 
December 31, 2017
 
December 25, 2016
 
 
(In thousands)
Net sales to customers by customer location:
 
 
 
 
 
 
U.S.
 
$
7,173,280

 
$
7,452,758

 
$
6,460,787

Mexico
 
1,411,727

 
1,019,170

 
1,180,947

Asia
 
158,864

 
136,144

 
101,209

Canada, Caribbean and Central America
 
26,450

 
114,543

 
152,516

Africa
 
21,286

 
29,905

 
17,117

Europe
 
2,134,822

 
2,000,843

 
1,952,192

South America
 
10,704

 
13,279

 
11,955

Pacific
 
651

 
1,221

 
1,841

Total
 
$
10,937,784

 
$
10,767,863

 
$
9,878,564


 
 
December 30, 2018
 
December 31, 2017
 
December 25, 2016
 
 
(In thousands)
Depreciation and amortization:
 
 
 
 
 
 
U.S.
 
$
201,126

 
$
199,749

 
$
151,527

U.K. and Europe
 
51,108

 
51,040

 
51,193

Mexico
 
27,423

 
27,003

 
28,988

Total
 
$
279,657

 
$
277,792

 
$
231,708


 
December 30, 2018
 
December 31, 2017
 
(In thousands)
Long-lived assets(a):
 
 
 
U.S.
$
1,506,217

 
$
1,437,220

U.K. and Europe
359,621

 
368,521

Mexico
295,864

 
289,406

Total
$
2,161,702

 
$
2,095,147

(a)
For this disclosure, we exclude financial instruments, deferred tax assets and intangible assets in accordance with ASC 280-10-50-41, Segment Reporting. Long-lived assets, as used in ASC 280-10-50-41, implies hard assets that cannot be readily removed.
The following table sets forth, for the periods beginning with 2016, net sales attributable to each of our primary product lines and markets served with those products. We based the table on our internal sales reports and their classification of products.
 
2018
 
2017
 
2016
 
(In thousands)
U.S. chicken:
 
 
 
 
 
Fresh chicken
$
5,959,458

 
$
5,700,503

 
$
4,627,137

Prepared chicken
773,983

 
950,378

 
1,269,010

Export and other chicken
258,732

 
213,595

 
313,827

Total U.S. chicken
6,992,173

 
6,864,476

 
6,209,974

U.K. and Europe chicken:
 
 
 
 
 
Fresh chicken
925,124

 
846,575

 
811,127

Prepared chicken
865,864

 
792,284

 
794,880

Export and other chicken
303,921

 
318,699

 
283,276

Total U.K. and Europe chicken
2,094,909

 
1,957,558

 
1,889,283

Mexico chicken:
 
 
 
 
 
Fresh chicken
1,252,403

 
1,245,144

 
1,154,355

Prepared chicken
76,860

 
58,512

 
91,289

Total Mexico chicken
1,329,263

 
1,303,656

 
1,245,644

Total chicken
10,416,345

 
10,125,690

 
9,344,901

Other products:
 
 
 
 
 
U.S.
433,488

 
578,746

 
461,429

U.K. and Europe
53,757

 
38,761

 
58,158

Mexico
34,194

 
24,666

 
14,076

Total other products
521,439

 
642,173

 
533,663

Total net sales
$
10,937,784

 
$
10,767,863

 
$
9,878,564