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REPORTABLE SEGMENTS
 12 Months Ended
Dec. 27, 2020
Segment Reporting [Abstract]  
REPORTABLE SEGMENTS REPORTABLE SEGMENTS
The Company operates in three reportable segments: U.S., U.K. and Europe and Mexico. The Company measures segment profit as operating income. Corporate expenses are allocated to the Mexico and U.K. and Europe reportable segments based upon various apportionment methods for specific expenditures incurred related thereto with the remaining amounts allocated to the U.S. reportable segment.
We conduct separate operations in the continental U.S. and in Puerto Rico. For segment reporting purposes, the Puerto Rico operations are included in the U.S. reportable segment. The chicken products processed by the U.S. reportable segment are sold to foodservice, retail and frozen entrée customers. The segment’s primary distribution is through retailers, foodservice distributors and restaurants.
The U.K. and Europe reportable segment processes primarily chicken and pork products that are sold to foodservice, retail and frozen entrée customers. The segment’s primary distribution is through retailers, foodservice distributors and restaurants.
The chicken products processed by the Mexico reportable segment are sold to foodservice, retail and frozen entrée customers. The segment’s primary distribution is through retailers, foodservice distributors and restaurants.
Additional information regarding reportable segments is as follows:
Year Ended
December 27, 2020(a)
December 29,2019(b)
December 30, 2018(c)
(In thousands)
Net sales
U.S.$7,496,017 $7,636,716 $7,425,661 
U.K. and Europe3,274,292 2,383,793 2,148,666 
Mexico1,321,592 1,388,710 1,363,457 
Total$12,091,901 $11,409,219 $10,937,784 
(a)For the year 2020, the United States reportable segment had intercompany sales to the Mexico reportable segment of $210.6 million. These sales consisted of fresh products, prepared products and grain.
(b)For the year 2019, the United States reportable segment had intercompany sales to the Mexico reportable segment of $188.9 million. These sales consisted of fresh products, prepared products and grain.
(c)For the year 2018, the United States reportable segment had intercompany sales to the Mexico reportable segment of $100.7 million. These sales consisted of fresh products, prepared products and grain.
Year Ended
December 27, 2020December 29, 2019December 30, 2018
(In thousands)
Operating income
U.S.$69,377 $487,275 $291,381 
U.K. and Europe102,734 79,182 84,524 
Mexico72,879 124,015 119,649 
Elimination473 96 132 
Total operating income245,463 690,568 495,686 
Interest expense, net of capitalized interest126,118 132,630 162,812 
Interest income(7,305)(14,277)(13,811)
Foreign currency transaction loss 760 6,917 17,160 
Gain on bargain purchase3,746 (56,880)— 
Miscellaneous, net(39,681)4,633 (2,702)
Income before income taxes161,825 617,545 332,227 
Income tax expense66,755 161,009 85,423 
Net income$95,070 $456,536 $246,804 
Year Ended
December 27, 2020December 29, 2019December 30, 2018
(In thousands)
Depreciation and amortization:
U.S.$218,244 $207,584 $196,079 
U.K. and Europe92,673 60,499 50,586 
Mexico26,187 19,147 27,423 
Total$337,104 $287,230 $274,088 
Year Ended
December 27, 2020December 29, 2019December 30, 2018
(In thousands)
Capital expenditures:
U.S.$264,149 $269,609 $257,913 
U.K. and Europe77,597 58,795 58,334 
Mexico13,016 19,716 32,419 
Total$354,762 $348,120 $348,666 
 December 27, 2020December 29, 2019
 (In thousands)
Total assets:
U.S.$5,189,021 $5,207,282 
U.K. and Europe3,034,219 2,824,382 
Mexico1,212,428 1,020,331 
Eliminations(1,961,171)(1,949,631)
Total$7,474,497 $7,102,364 
Year Ended
December 27, 2020December 29, 2019December 30, 2018
(In thousands)
Net sales to customers by customer location:
U.S.$7,190,809 $7,355,631 $7,173,280 
Europe3,225,717 2,363,017 2,134,822 
Mexico1,350,588 1,437,081 1,411,727 
Asia-Pacific 252,573 175,898 159,515 
Canada, Caribbean and Central America30,792 31,808 26,450 
Africa25,321 28,400 21,286 
South America16,101 17,384 10,704 
Total$12,091,901 $11,409,219 $10,937,784 
 December 27, 2020December 29, 2019
 (In thousands)
Long-lived assets(a):
U.S.$1,815,460 $1,789,530 
U.K. and Europe842,049 801,887 
Mexico292,651 306,413 
Eliminations(3,783)(4,256)
Total$2,946,377 $2,893,574 
(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 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.
Year Ended
December 27, 2020December 29, 2019December 30, 2018
(In thousands)
U.S. chicken:
Fresh $6,137,265 $6,214,954 $5,959,458 
Prepared 714,563 842,365 773,983 
Exports306,478 282,791 258,732 
Total U.S. chicken7,158,306 7,340,110 6,992,173 
U.K. and Europe chicken:
Fresh 863,670 918,852 925,124 
Prepared 751,196 817,292 865,864 
Exports227,224 262,041 303,921 
Total U.K. and Europe chicken1,842,090 1,998,185 2,094,909 
Mexico chicken:
Fresh 1,210,952 1,245,976 1,252,403 
Prepared 66,572 95,733 76,860 
Total Mexico chicken1,277,524 1,341,709 1,329,263 
Total chicken10,277,920 10,680,004 10,416,345 
U.K. and Europe pork:
Fresh 730,703 135,985 — 
Prepared 486,290 134,426 — 
Exports70,190 16,174 — 
Total U.K. and Europe pork1,287,183 286,585 — 
Other products:
U.S.337,711 296,606 433,488 
U.K. and Europe145,019 99,023 53,757 
Mexico44,068 47,001 34,194 
Total other products526,798 442,630 521,439 
Total net sales$12,091,901 $11,409,219 $10,937,784