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REPORTABLE SEGMENTS
9 Months Ended
Sep. 25, 2022
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 fresh chicken, pork products, specialty meats, ready meals and other prepared foods that are sold to foodservice, retail and direct to consumer 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:
Three Months EndedNine Months Ended
September 25, 2022(a)
September 26, 2021(b)
September 25, 2022(c)
September 26, 2021(d)
(In thousands)
Net sales
U.S.$2,836,920 $2,466,850 $8,318,007 $6,714,879 
U.K. and Europe1,203,095 930,440 3,640,129 2,721,019 
Mexico428,954 430,276 1,382,876 1,302,791 
Total$4,468,969 $3,827,566 $13,341,012 $10,738,689 
(a)For the three months ended September 25, 2022, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $31.9 million. These sales consisted of fresh products, prepared products, grain and egg sales.
(b)For the three months ended September 26, 2021, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $83.9 million. These sales consisted of fresh products, prepared products and grain.
(c)For the nine months ended September 25, 2022, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $101.6 million. These sales consisted of fresh products, prepared products, grain and egg sales.
(d)For the nine months ended September 26, 2021, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $234.7 million. These sales consisted of fresh products, prepared products and grain.
Three Months EndedNine Months Ended
September 25, 2022September 26, 2021September 25, 2022September 26, 2021
(In thousands)
Reportable segment profit:
U.S.$338,548 $70,666 $1,146,821 $(85,380)
U.K. and Europe14,198 445 406 32,771 
Mexico(13,558)49,652 106,850 208,677 
Eliminations14 14 42 42 
Total operating income339,202 120,777 1,254,119 156,110 
Interest expense, net of capitalized interest36,895 29,833 111,303 110,818 
Interest income(2,673)(1,244)(4,957)(4,452)
Foreign currency transaction losses54 2,359 14,348 9,018 
Miscellaneous, net(19,822)(1,391)(21,834)(10,005)
Income before income taxes324,748 91,220 1,155,259 50,731 
Income tax expense65,749 30,385 253,679 55,931 
Net income (loss)$258,999 $60,835 $901,580 $(5,200)
September 25, 2022December 26, 2021
(In thousands)
Total assets by reportable segment:
U.S.$7,126,485 $6,390,845 
U.K. and Europe3,610,728 4,292,558 
Mexico1,265,673 1,146,204 
Eliminations(2,923,874)(2,916,402)
Total assets$9,079,012 $8,913,205 
September 25, 2022December 26, 2021
(In thousands)
Long-lived assets by reportable segment(a):
U.S.$1,909,697 $1,862,584 
U.K. and Europe910,395 1,125,197 
Mexico289,209 284,980 
Eliminations(3,688)(3,729)
Total long-lived assets$3,105,613 $3,269,032 
(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.