10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 26, 2023

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from  _______ to _______            

Commission File number 1-9273

 

PILGRIM’S PRIDE CORPORATION

(Exact name of registrant as specified in its charter)

Delaware		75-1285071
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
1770 Promontory Circle		80634-9038
Greeley	CO
(Address of principal executive offices)		(Zip code)

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

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of Exchange on which Registered
Common Stock, Par Value $0.01	PPC	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý    No  ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ý    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	ý	Accelerated Filer	☐
Non-accelerated Filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

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. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ý

Number of shares outstanding of the issuer’s common stock, $0.01 par value per share, as of April 26, 2023, was 236,733,263.

INDEX

PILGRIM’S PRIDE CORPORATION

PART I. FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements	2
	Condensed Consolidated Balance Sheets March 26, 2023 and December 25, 2022	2
	Condensed Consolidated Statements of Income        Three Months Ended March 26, 2023 and March 27, 2022	3
	Condensed Consolidated Statements of Comprehensive Income        Three Months Ended March 26, 2023 and March 27, 2022	4
	Condensed Consolidated Statements of Stockholders’ Equity        Three Months Ended March 26, 2023 and March 27, 2022	5
	Condensed Consolidated Statements of Cash Flows        Three Months Ended March 26, 2023 and March 27, 2022	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	32
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	42
Item 4.	Controls and Procedures	46
PART II. OTHER INFORMATION		47
Item 1.	Legal Proceedings	47
Item 1A.	Risk Factors	47
Item 6.	Exhibits	48
SIGNATURES		49

1

PART I.     FINANCIAL INFORMATION

ITEM 1.     CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

PILGRIM’S PRIDE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
	(Unaudited)
	March 26, 2023		December 25, 2022
	(In thousands)
Cash and cash equivalents	$	150,687	$	400,988
Restricted cash and restricted cash equivalents	33,879		33,771
Trade accounts and other receivables, less allowance for credit losses	1,237,366		1,097,212
Accounts receivable from related parties	2,125		2,512
Inventories	2,022,110		1,990,184
Income taxes receivable	143,974		155,859
Prepaid expenses and other current assets	232,453		211,092
Total current assets	3,822,594		3,891,618
Deferred tax assets	7,955		1,969
Other long-lived assets	16,978		41,574
Operating lease assets, net	290,175		305,798
Intangible assets, net	848,895		846,020
Goodwill	1,243,613		1,227,944
Property, plant and equipment, net	2,997,295		2,940,846
Total assets	$	9,227,505	$	9,255,769
Accounts payable	$	1,517,470	$	1,587,939
Accounts payable to related parties	20,481		12,155
Revenue contract liabilities	47,766		34,486
Accrued expenses and other current liabilities	862,753		850,899
Income taxes payable	18,951		58,411
Current maturities of long-term debt	26,326		26,279
Total current liabilities	2,493,747		2,570,169
Noncurrent operating lease liabilities, less current maturities	219,350		230,701
Long-term debt, less current maturities	3,196,615		3,166,432
Deferred tax liabilities	347,166		364,184
Other long-term liabilities	64,107		71,007
Total liabilities	6,320,985		6,402,493
Common stock	2,619		2,617
Treasury stock	(544,687)		(544,687)
Additional paid-in capital	1,971,038		1,969,833
Retained earnings	1,754,686		1,749,499
Accumulated other comprehensive loss	(290,042)		(336,448)
Total Pilgrim’s Pride Corporation stockholders’ equity	2,893,614		2,840,814
Noncontrolling interest	12,906		12,462
Total stockholders’ equity	2,906,520		2,853,276
Total liabilities and stockholders’ equity	$	9,227,505	$	9,255,769

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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PILGRIM’S PRIDE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
	Three Months Ended
	March 26, 2023		March 27, 2022
	(in thousands, except per share data)
Net sales	$	4,165,628	$	4,240,395
Cost of sales	3,992,581		3,698,415
Gross profit	173,047		541,980
Selling, general and administrative expense	133,678		139,967
Restructuring activities	8,026		—
Operating income	31,343		402,013
Interest expense, net of capitalized interest	42,662		36,296
Interest income	(3,600)		(1,274)
Foreign currency transaction losses	18,143		11,536
Miscellaneous, net	(22,653)		(324)
Income (loss) before income taxes	(3,209)		355,779
Income tax expense (benefit)	(8,840)		75,219
Net income	5,631		280,560
Less: Net income attributable to noncontrolling interests	444		122
Net income attributable to Pilgrim’s Pride Corporation	$	5,187	$	280,438
Weighted average shares of Pilgrim’s Pride Corporation common stock outstanding:
Basic	236,585		243,670
Effect of dilutive common stock equivalents	579		630
Diluted	237,164		244,300
Net income attributable to Pilgrim’s Pride Corporation per share of common stock outstanding:
Basic	$	0.02	$	1.15
Diluted	$	0.02	$	1.15

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

3

PILGRIM’S PRIDE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
	Three Months Ended
	March 26, 2023		March 27, 2022
	(In thousands)
Net income	$	5,631	$	280,560
Other comprehensive income (loss):
Foreign currency translation adjustment:
Gains (losses) arising during the period	42,644		(58,202)
Derivative financial instruments designated as cash flow hedges:
Gains arising during the period	18		528
Income tax effect	—		—
Reclassification to net earnings for losses (gains) realized	(64)		157
Income tax effect	—		(42)
Available-for-sale securities:
Gains arising during the period	40		—
Income tax effect	(10)		—
Reclassification to net earnings for gains realized	(18)		—
Income tax effect	5		—
Defined benefit plans:
Gains arising during the period	4,233		8,651
Income tax effect	(581)		(2,172)
Reclassification to net earnings of losses realized	182		232
Income tax effect	(43)		(57)
Total other comprehensive income (loss), net of tax	46,406		(50,905)
Comprehensive income	52,037		229,655
Less: Comprehensive income attributable to noncontrolling interests	444		122
Comprehensive income attributable to Pilgrim’s Pride Corporation	$	51,593	$	229,533

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

4

PILGRIM’S PRIDE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
Three Months Ended March 26, 2023	Common Stock			Treasury Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Noncontrolling Interest		Total
	Shares	Amount		Shares	Amount
	(In thousands)
Balance at December 25, 2022	261,611	$	2,617	(25,142)	$	(544,687)	$	1,969,833	$	1,749,499	$	(336,448)	$	12,462	$	2,853,276
Net income	—	—		—	—		—		5,187		—		444		5,631
Other comprehensive income, net of tax	—	—		—	—		—		—		46,406		—		46,406
Stock-based compensation plans:
Common stock issued under compensation plans	264	2		—	—		(2)		—		—		—		—
Requisite service period recognition	—	—		—	—		1,207		—		—		—		1,207
Balance at March 26, 2023	261,875	$	2,619	(25,142)	$	(544,687)	$	1,971,038	$	1,754,686	$	(290,042)	$	12,906	$	2,906,520

Three Months Ended March 27, 2022	Common Stock			Treasury Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Noncontrolling Interest		Total
	Shares	Amount		Shares	Amount
	(In thousands)
Balance at December 26, 2021	261,347	$	2,614	(17,673)	$	(345,134)	$	1,964,028	$	1,003,569	$	(47,997)	$	11,854	$	2,588,934
Net income	—	—		—	—		—		280,438		—		122		280,560
Other comprehensive loss, net of tax	—	—		—	—		—		—		(50,905)		—		(50,905)
Stock-based compensation plans:
Common stock issued under compensation plans	221	2		—	—		(2)		—		—		—		—
Requisite service period recognition	—	—		—	—		2,040		—		—		—		2,040
Common stock purchased under share repurchase program	—	—		(1,158)	(27,023)		—		—		—		—		(27,023)
Balance at March 27, 2022	261,568	$	2,616	(18,831)	$	(372,157)	$	1,966,066	$	1,284,007	$	(98,902)	$	11,976	$	2,793,606

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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PILGRIM’S PRIDE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
	Three Months Ended
	March 26, 2023		March 27, 2022
	(In thousands)
Cash flows from operating activities:
Net income	$	5,631	$	280,560
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	98,257		102,142
Deferred income tax benefit	(26,309)		(21,917)
Loss (gain) on property disposals	(9,333)		1,855
Loan cost amortization	1,333		1,280
Stock-based compensation	1,200		1,963
Accretion of discount related to Senior Notes	429		429
Adjustment to previously recognized asset impairment	(130)		—
Loss (gain) on equity-method investments	(4)		8
Changes in operating assets and liabilities:
Trade accounts and other receivables	(132,791)		(66,669)
Inventories	(30,267)		(146,035)
Prepaid expenses and other current assets	(20,268)		(5,889)
Accounts payable, accrued expenses and other current liabilities	(43,662)		(2,454)
Income taxes	3,149		84,780
Long-term pension and other postretirement obligations	949		(1,101)
Other operating assets and liabilities	(9,888)		(1,956)
Cash provided by (used in) operating activities	(161,704)		226,996
Cash flows from investing activities:
Acquisitions of property, plant and equipment	(131,701)		(81,578)
Proceeds from property disposals	12,631		849
Proceeds from insurance recoveries	1,599		—
Purchase of acquired business, net of cash acquired	—		(4,847)
Cash used in investing activities	(117,471)		(85,576)
Cash flows from financing activities:
Proceeds from revolving line of credit and long-term borrowings	35,000		228,505
Payments on revolving line of credit, long-term borrowings and finance lease obligations	(6,527)		(32,093)
Payment of equity distribution under Tax Sharing Agreement between JBS USA Holdings and Pilgrim’s Pride Corporation	(1,592)		(1,961)
Purchase of common stock under share repurchase program	—		(27,023)
Payments of capitalized loan costs	—		(1,098)
Cash provided by financing activities	26,881		166,330
Effect of exchange rate changes on cash and cash equivalents	2,101		(2,073)
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents	(250,193)		305,677
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period	434,759		450,121
Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period	$	184,566	$	755,798

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

6

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1.    BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Business

Pilgrim’s Pride Corporation (referred to herein as “Pilgrim’s,” “PPC,” “the Company,” “we,” “us,” “our,” or similar terms) is one of the largest chicken producers in the world, with operations in the United States (“U.S.”), the United Kingdom (“U.K.”), Mexico, France, Puerto Rico, the Netherlands and the Republic of Ireland. Pilgrim’s products are sold to foodservice, retail and frozen entrée customers. The Company’s primary distribution is through retailers, foodservice distributors and restaurants throughout the countries listed above. Additionally, the Company exports chicken and pork products to approximately 109 countries. Our fresh products consist of refrigerated (nonfrozen) whole or cut-up chicken, selected chicken parts that are either marinated or non-marinated, primary pork cuts, added value pork and pork ribs. The Company’s prepared products include fully cooked, ready-to-cook and individually frozen chicken parts, strips, nuggets and patties, processed sausages, bacon, smoked meat, gammon joints, pre-packed meats, sandwich and deli counter meats and meat balls. The Company’s other products include plant-based protein offerings, ready-to-eat meals, multi-protein frozen foods, vegetarian foods and desserts. The Company also provides direct-to-consumer meals and hot food-to-go solutions in the U.K. and the Republic of Ireland. We operate feed mills, hatcheries, processing plants and distribution centers in 14 U.S. states, the U.K., Mexico, France, Puerto Rico, the Netherlands and the Republic of Ireland. As of March 26, 2023, Pilgrim’s had approximately 62,000 employees and had the capacity to process approximately 42.1 million birds per 5-day work week. Approximately 5,650 contract growers supply chicken for the Company’s operations. As of March 26, 2023, PPC had the capacity to process approximately 51,000 pigs per 5-day work week and approximately 230 contract growers supply pigs for the Company’s operations. As of March 26, 2023, JBS S.A., through its indirect wholly-owned subsidiaries (collectively, “JBS”), beneficially owned 82.6% of the Company’s outstanding common stock.

Condensed Consolidated Financial Statements

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal and recurring adjustments unless otherwise disclosed) considered necessary for a fair presentation have been included. Operating results for the three months ended March 26, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 25, 2022.

The Company operates on the basis of a 52/53 week fiscal year ending on the Sunday falling on or before December 31. Any reference we make to a particular year (for example, 2023) in the notes to these Condensed Consolidated Financial Statements applies to our fiscal year and not the calendar year. The three months ended March 26, 2023 represents the period from December 26, 2022 through March 26, 2023. The three months ended March 27, 2022 represents the period from December 27, 2021 through March 27, 2022.

The Condensed Consolidated Financial Statements include the accounts of the Company and its majority-owned subsidiaries. We eliminate all significant affiliate accounts and transactions upon consolidation.

The Condensed Consolidated Financial Statements have been prepared in conformity with U.S. GAAP using management’s best estimates and judgments. These estimates and judgments affect the reported amounts of assets and liabilities and disclosure of the contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ materially from these estimates and judgments. Significant estimates made by the Company include the allowance for credit losses, reserves related to inventory obsolescence or valuation, useful lives of long-lived assets, goodwill, valuation of deferred tax assets, insurance accruals, valuation of pension and other postretirement benefits obligations, income tax accruals, certain derivative positions, certain litigation reserves and valuations of acquired businesses.

The functional currency of the Company’s U.S. and Mexico operations and certain holding-company subsidiaries in Luxembourg, the U.K., Malta and the Republic of Ireland is the U.S. dollar. The functional currency of its U.K. operations is the British pound. The functional currency of the Company’s operations in France, the Netherlands and the Republic of Ireland is the euro. For foreign currency-denominated entities other than the Company’s Mexico operations, translation from local

7

currencies into U.S. dollars is performed for most assets and liabilities using the exchange rates in effect as of the balance sheet date. Income and expense accounts are remeasured using average exchange rates for the period. Adjustments resulting from translation of these financial records are reflected as a separate component of Accumulated other comprehensive loss in the Condensed Consolidated Balance Sheets. For the Company’s Mexico operations, remeasurement from the Mexican peso to U.S. dollars is performed for monetary assets and liabilities using the exchange rate in effect as of the balance sheet date. Remeasurement is performed for non-monetary assets using the historical exchange rate in effect on the date of each asset’s acquisition. Income and expense accounts are remeasured using average exchange rates for the period. Net adjustments resulting from remeasurement of these financial records, as well as foreign currency transaction gains and losses, are reflected in Foreign currency transaction losses in the Condensed Consolidated Statements of Income.

Restricted Cash and Restricted Cash Equivalents

The Company is required to maintain cash balances with a broker as collateral for exchange-traded futures contracts. These balances are classified as restricted cash as they are not available for use by the Company to fund daily operations. The balance of restricted cash and restricted cash equivalents may also include investments in U.S. Treasury Bills that qualify as restricted cash equivalents, as required by the broker, to offset the obligation to return cash collateral.

The following table reconciles cash, cash equivalents, restricted cash and restricted cash equivalents as reported in the Condensed Consolidated Balance Sheets to the total of the same amounts shown in the Condensed Consolidated Statements of Cash Flows:

	March 26, 2023		December 25, 2022
	(In thousands)
Cash and cash equivalents	$	150,687	$	400,988
Restricted cash and restricted cash equivalents	33,879		33,771
Total cash, cash equivalents, restricted cash and restricted cash equivalents shown in the Condensed Consolidated Statements of Cash Flows	$	184,566	$	434,759

Accounting Pronouncements Adopted in 2023

In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations, which requires disclosure of the existence of supplier financing programs. The guidance requires disclosure about the nature of the supplier financing agreements, including key terms and payment timing and determination of amounts, the accounting treatment for the transactions and the effect of the transactions on the financial statements, as well as any assets pledged or guarantees provided to the providers of the financing programs. The provisions of the new guidance were effective for years beginning after December 15, 2022 with the requirement to add rollforward disclosures for years beginning after December 15, 2023. The Company adopted this guidance effective December 26, 2022. The adoption of this guidance did not have a material impact on our Condensed Consolidated Financial Statements. Additional information regarding supplier finance programs is included in “Note 10. Supplier Finance Programs.”

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions to the application of current GAAP to existing contracts, hedging relationships and other transactions affected by reference rate reform. The new guidance will ease the transition to new reference rates by allowing entities to update contracts and hedging relationships without applying many of the contract modification requirements specific to those contracts. The provisions of the new guidance are effective beginning March 12, 2020, extending through December 31, 2022 with the option to apply the guidance at any point during that time period. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848), which provides further clarification on the scope of Topic 848 so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions in Topic 848. Once an entity elects an expedient or exception it must be applied to all eligible contracts or transactions. We currently have hedging transactions and debt agreements that reference LIBOR and will apply the new guidance as these contracts are modified to reference other rates. The Company adopted this guidance effective December 26, 2022. The adoption did not have a material impact on our Condensed Consolidated Financial Statements.

2.    REVENUE RECOGNITION

The vast majority of the Company’s revenue is derived from contracts which are based upon a customer ordering our products. While there may be master agreements, the contract is only established when the customer’s order is accepted by the Company. The Company accounts for a contract, which may be verbal or written, when it is approved and committed by both parties, the rights of the parties are identified along with payment terms, the contract has commercial substance and collectability is probable.

8

The Company evaluates the transaction for distinct performance obligations, which are the sale of its products to customers. Since its products are commodity market-priced, the sales price is representative of the observable, standalone selling price. Each performance obligation is recognized based upon a pattern of recognition that reflects the transfer of control to the customer at a point in time, which is upon destination (customer location or port of destination), which faithfully depicts the transfer of control and recognition of revenue. There are instances of customer pick-up at the Company’s facility, in which case control transfers to the customer at that point and the Company recognizes revenue. The Company’s performance obligations are typically fulfilled within days to weeks of the acceptance of the order.

The Company makes judgments regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from revenue and cash flows with customers. Determination of a contract requires evaluation and judgment along with the estimation of the total contract value and if any of the contract value is constrained. Due to the nature of our business, there is minimal variable consideration, as the contract is established at the acceptance of the order from the customer. When applicable, variable consideration is estimated at contract inception and updated on a regular basis until the contract is completed. Allocating the transaction price to a specific performance obligation based upon the relative standalone selling prices includes estimating the standalone selling prices including discounts and variable consideration.

Disaggregated Revenue

Revenue has been disaggregated into the categories below to show how economic factors affect the nature, amount, timing and uncertainty of revenue and cash flows:

	Three Months Ended March 26, 2023
	(In thousands)
	Fresh		Prepared		Export		Other		Total
U.S.	$	1,943,786	$	244,801	$	128,275	$	115,706	$	2,432,568
U.K. and Europe	264,663		831,729		117,621		25,251		1,239,264
Mexico	411,919		46,356		—		35,521		493,796
Total net sales	$	2,620,368	$	1,122,886	$	245,896	$	176,478	$	4,165,628

	Three Months Ended March 27, 2022
	(In thousands)
	Fresh		Prepared		Export		Other		Total
U.S.	$	2,087,621	$	255,087	$	133,797	$	104,703	$	2,581,208
U.K. and Europe	237,309		746,636		173,411		34,626		1,191,982
Mexico	410,420		36,141		—		20,644		467,205
Total net sales	$	2,735,350	$	1,037,864	$	307,208	$	159,973	$	4,240,395

Contract Costs

The Company can incur incremental costs to obtain or fulfill a contract such as broker expenses that are not expected to be recovered. The amortization period for such expenses is less than one year; therefore, the costs are expensed as incurred.

Taxes

The Company excludes all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the entity from a customer (for example, sales, use, value added and some excise taxes) from the transaction price.

Contract Balances

The Company receives payment from customers based on terms established with the customer. Payments are typically due within 14 to 30 days of delivery. Revenue contract liabilities relate to payments received in advance of satisfying the performance under the customer contract. The revenue contract liabilities relate to customer prepayments and the advanced consideration, such as cash, received from governmental agency contracts for which performance obligations to the end customer have not been satisfied.

Changes in the revenue contract liabilities balance are as follows (in thousands):

9

Balance as of December 25, 2022	$	34,486
Revenue recognized	(20,183)
Cash received, excluding amounts recognized as revenue during the period	33,463
Balance as of March 26, 2023	$	47,766

Accounts Receivable

The Company records accounts receivable when revenue is recognized. We record an allowance for credit losses, reducing our receivables balance to an amount we estimate is collectible from our customers. Estimates used in determining the allowance for credit losses are based on historical collection experience, current trends, aging of accounts receivable and periodic credit evaluations of our customers’ financial condition. We write off accounts receivable when it becomes apparent, based upon age or customer circumstances, that such amounts will not be collected. Generally, the Company does not require collateral for its accounts receivable.

3.     DERIVATIVE FINANCIAL INSTRUMENTS

The Company utilizes various raw materials in its operations, including corn, soybean meal, soybean oil, wheat, natural gas, electricity and diesel fuel, which are all considered commodities. The Company considers these raw materials generally available from a number of different sources and believes it can obtain them to meet its requirements. These commodities are subject to price fluctuations and related price risk due to factors beyond our control, such as economic and political conditions, supply and demand, weather, governmental regulation and other circumstances. Generally, the Company purchases derivative financial instruments, specifically exchange-traded futures and options, in an attempt to mitigate price risk related to its anticipated consumption of commodity inputs for approximately the next twelve months. The Company may purchase longer-term derivative financial instruments on particular commodities if deemed appropriate.

The Company has operations in Mexico, the U.K., France, the Netherlands and the Republic of Ireland. Therefore, it has exposure to translational foreign exchange risk when the financial results of those operations are remeasured in U.S. dollars. The Company has purchased foreign currency forward contracts to manage this foreign exchange risk.

The fair value of derivative assets is included in the line item Prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets while the fair value of derivative liabilities is included in the line item Accrued expenses and other current liabilities on the same statements. The Company’s counterparties require that it post collateral for changes in the net fair value of the derivative contracts. This cash collateral is reported in the line item Restricted cash and restricted cash equivalents on the Condensed Consolidated Balance Sheets.

Undesignated contracts may include contracts not designated as hedges or contracts that do not qualify for hedge accounting. The fair value of each of these derivatives is recognized in the Condensed Consolidated Balance Sheets within Prepaid expenses and other current assets or Accrued expenses and other current liabilities. Changes in fair value of each derivative are recognized immediately in the Condensed Consolidated Statements of Income within Net sales, Cost of sales, Selling, general and administrative expense, or Foreign currency transaction losses depending on the risk the derivative is intended to mitigate. While management believes these instruments help mitigate various market risks, they are not designated and accounted for as hedges as a result of the extensive record keeping requirements.

The Company does not apply hedge accounting treatment to certain derivative financial instruments that it has purchased to mitigate commodity purchase exposures in the U.S. and Mexico or foreign currency transaction exposures on our Mexico operations. Therefore, the Company recognized changes in the fair value of these derivative financial instruments immediately in earnings. Gains or losses related to the commodity derivative financial instruments are included in the line item Cost of sales in the Condensed Consolidated Statements of Income. Gains or losses related to the foreign currency derivative financial instruments are included in the line item Foreign currency transaction losses and Cost of sales in the Condensed Consolidated Statements of Income.

The Company does apply hedge accounting treatment to certain derivative financial instruments related to its U.K. and Europe reportable segment that it has purchased to mitigate foreign currency transaction exposures. Before the settlement date of the financial derivative instruments, the Company recognizes changes in the fair value of the cash flow hedge into accumulated other comprehensive income (“AOCI”). When the derivative financial instruments are settled, the amount in AOCI is then reclassified to earnings. Gains or losses related to these derivative financial instruments are included in the line item Net sales and Cost of sales in the Condensed Consolidated Statements of Income.

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Information regarding the Company’s outstanding derivative instruments and cash collateral posted with brokers is included in the following table:

	March 26, 2023			December 25, 2022
	(In thousands)
Fair values:
Commodity derivative assets	$	8,333		$	17,922
Commodity derivative liabilities	(26,437)			(9,042)
Foreign currency derivative assets	5,600			555
Foreign currency derivative liabilities	(405)			(6,170)
Sales contract derivative assets	459			—
Sales contract derivative liabilities	—			(3,705)
Cash collateral posted with brokers(a)	33,879			33,771
Derivatives coverage(b):
Corn	12.1		%	14.4		%
Soybean meal	10.0		%	10.1		%
Period through which stated percent of needs are covered:
Corn	March 2024			December 2023
Soybean meal	July 2024			December 2023

(a)Collateral posted with brokers consists primarily of cash, short-term treasury bills or other cash equivalents.

(b)Derivatives coverage is the percent of anticipated commodity needs covered by outstanding derivative instruments through a specified date.

    The following table presents the gains and losses of each derivative instrument held by the Company not designated or qualifying as hedging instruments:

	Three Months Ended
Gains (Losses) by Type of Contract (a)	March 26, 2023		March 27, 2022		Affected Line Item in the Condensed Consolidated Statements of Income
	(In thousands)
Foreign currency derivatives	$	(19,104)	$	(13,300)	Foreign currency transaction losses
Commodity derivatives	(16,534)		31,540		Cost of sales
Sales contract derivative liabilities	4,164		(8,666)		Net sales
Total	$	(31,474)	$	9,574

(a)Amounts represent income (expenses) related to results of operations.

    The following tables present the components of the gain or loss on derivatives that qualify as cash flow hedges:

	Gains Recognized in Other Comprehensive Income
	Three Months Ended
	March 26, 2023		March 27, 2022
	(In thousands)
Foreign currency derivatives	$	16	$	523

	Gains (Losses) Reclassified from AOCI into Income
	Three Months Ended March 26, 2023						Three Months Ended March 27, 2022
	Net sales(a)		Cost of sales(b)		Interest expense, net of capitalized interest(b)		Net sales(a)		Cost of sales(b)		Interest expense, net of capitalized interest(b)
	(In thousands)
Total amounts of income and expense line items presented in the Condensed Consolidated Statements of Income in which the effects of cash flow hedges are recorded	$	4,165,628	$	3,992,581	$	42,662	$	4,240,395	$	3,698,415	$	36,296
Impact from cash flow hedging instruments:
Foreign currency derivatives	120		56		—		32		91		—
Interest rates swap derivatives	—		—		—		—		—		98

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(a)    Amounts represent income (expenses) related to net sales.

(b)    Amounts represent expenses (income) related to cost of sales and interest expense.

At March 26, 2023, there were immaterial pre-tax deferred net gains on foreign currency derivatives recorded in AOCI that are expected to be reclassified to the Condensed Consolidated Statements of Income during the next twelve months. This expectation is based on the anticipated settlements on the hedged investments in foreign currencies that will occur over the next twelve months, at which time the Company will recognize the deferred gains to earnings.

4.    TRADE ACCOUNTS AND OTHER RECEIVABLES

Trade accounts and other receivables, less allowance for credit losses, consisted of the following:

	March 26, 2023		December 25, 2022
	(In thousands)
Trade accounts receivable	$	1,071,202	$	984,332
Notes receivable from third parties	13,599		33,477
Other receivables	161,737		88,962
Receivables, gross	1,246,538		1,106,771
Allowance for credit losses	(9,172)		(9,559)
Receivables, net	$	1,237,366	$	1,097,212
Accounts receivable from related parties(a)	$	2,125	$	2,512

(a)    Additional information regarding accounts receivable from related parties is included in “Note 17. Related Party Transactions.”

Activity in the allowance for credit losses was as follows:

	Three Months Ended
	March 26, 2023
	(In thousands)
Balance, beginning of period	$	(9,559)
Provision charged to operating results	(525)
Account write-offs and recoveries	1,149
Effect of exchange rate	(237)
Balance, end of period	$	(9,172)

5.     INVENTORIES

Inventories consisted of the following:

	March 26, 2023		December 25, 2022
	(In thousands)
Raw materials and work-in-process	$	1,256,009	$	1,204,092
Finished products	592,772		596,375
Operating supplies	74,347		95,367
Maintenance materials and parts	98,982		94,350
Total inventories	$	2,022,110	$	1,990,184

6.    INVESTMENTS IN SECURITIES

The Company recognizes investments in available-for-sale securities as cash equivalents, current investments or long-term investments depending upon each security’s length to maturity. The following table summarizes our investments in available-for-sale securities:

	March 26, 2023				December 25, 2022
	Cost		Fair Value		Cost		Fair Value
	(In thousands)
Cash equivalents:
Fixed income securities	$	77,131	$	77,131	$	167,366	$	167,430

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Gross realized gains during the three months ended March 26, 2023 related to the Company’s available-for-sale securities were $1.9 million and gross realized gains during the three months ended March 27, 2022 were immaterial. Proceeds received from the sale or maturity of available-for-sale securities investments are historically disclosed in the Condensed Consolidated Statements of Cash Flows. Net unrealized holding gains and losses on the Company’s available-for-sale securities recognized during the three months ended March 26, 2023 and March 27, 2022 that have been included in accumulated other comprehensive income (loss) and the net amount of gains and losses reclassified out of accumulated other comprehensive income (loss) to earnings during the three months ended March 26, 2023 and March 27, 2022 are disclosed in “Note 13. Stockholders’ Equity.”

7.     GOODWILL AND INTANGIBLE ASSETS

The activity in goodwill by segment for the three months ended March 26, 2023 was as follows:

	December 25, 2022		Currency Translation		March 26, 2023
	(In thousands)
U.S.	$	41,936	$	—	$	41,936
U.K. and Europe	1,058,204		15,669		1,073,873
Mexico	127,804		—		127,804
Total	$	1,227,944	$	15,669	$	1,243,613

Intangible assets consisted of the following:

	December 25, 2022		Amortization		Currency Translation		March 26, 2023
	(In thousands)
Cost:
Trade names not subject to amortization	$	549,024	$	—	$	8,274	$	557,298
Trade names subject to amortization	112,057		—		447		112,504
Customer relationships	427,662		—		3,882		431,544
Accumulated amortization:
Trade names	(53,708)		(943)		(37)		(54,688)
Customer relationships	(189,015)		(7,350)		(1,398)		(197,763)
Intangible assets, net	$	846,020	$	(8,293)	$	11,168	$	848,895

Intangible assets are amortized over the estimated useful lives of the assets as follows:

Customer relationships	3-18 years
Trade names subject to amortization	15-20 years

At March 26, 2023, the Company assessed if events or changes in circumstances indicated that the asset group-level carrying amounts of its intangible assets subject to amortization might not be recoverable. There were no indicators present that required the Company to test the recoverability of the asset group-level carrying amounts of its intangible assets subject to amortization at that date.

8.    PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment (“PP&E”), net consisted of the following:

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	March 26, 2023		December 25, 2022
	(In thousands)
Land	$	267,245	$	263,494
Buildings	2,090,190		2,065,042
Machinery and equipment	3,739,808		3,651,464
Autos and trucks	84,830		77,865
Finance lease assets	5,710		5,710
Construction-in-progress	373,325		358,819
PP&E, gross	6,561,108		6,422,394
Accumulated depreciation	(3,563,813)		(3,481,548)
PP&E, net	$	2,997,295	$	2,940,846

The Company recognized depreciation expense of $90.0 million and $93.4 million during the three months ended March 26, 2023 and March 27, 2022, respectively.

During the three months ended March 26, 2023, Pilgrim’s spent $131.7 million on capital projects and transferred $117.8 million of completed projects from construction-in-progress to depreciable assets. During the three months ended March 27, 2022, the Company spent $81.6 million on capital projects and transferred $73.8 million of completed projects from construction-in-progress to depreciable assets.

During the three months ended March 26, 2023, the Company sold certain PP&E for $12.6 million in cash and recognized a net gain of $9.3 million on these sales. PP&E sold during the three months ended March 26, 2023 consisted of a farm in Mexico and other miscellaneous equipment. During the three months ended March 27, 2022, the Company sold miscellaneous equipment for cash of $0.8 million and recognized a net loss on these sales of $1.9 million.

The Company has closed or idled various facilities in the U.S. and in the U.K. The Board of Directors has not determined if it would be in the best interest of the Company to divest any of these idled assets. Management is therefore not certain that it can or will divest any of these assets within one year, is not actively marketing these assets and, accordingly, has not classified them as assets held for sale. The Company continues to depreciate these assets. As of March 26, 2023, the carrying amounts of these idled assets totaled $39.4 million based on depreciable value of $213.3 million and accumulated depreciation of $173.9 million. Idled asset values include those assets that are no longer in use as a result of the recent restructuring activities of our U.K. and Europe segment.

As of March 26, 2023, the Company assessed if events or changes in circumstances indicated that the asset group-level carrying amounts of its PP&E held for use might not be recoverable. There were no indicators present that required the Company to test the recoverability of the asset group-level carrying amounts of its PP&E held for use at that date.

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9.    CURRENT LIABILITIES

Current liabilities, other than income taxes and current maturities of long-term debt, consisted of the following components:

	March 26, 2023		December 25, 2022
	(In thousands)
Accounts payable:
Trade accounts payable	$	1,424,819	$	1,476,552
Book overdrafts	74,794		93,800
Other payables	17,857		17,587
Total accounts payable	1,517,470		1,587,939
Accounts payable to related parties(a)	20,481		12,155
Revenue contract liabilities(b)	47,766		34,486
Accrued expenses and other current liabilities:
Compensation and benefits	203,526		258,098
Litigation settlements(c)	110,430		99,230
Current maturities of operating lease liabilities	75,613		79,222
Accrued sales rebates	71,880		55,002
Insurance and self-insured claims	70,447		72,453
Interest and debt-related fees	48,292		32,433
Taxes	34,685		33,550
Derivative liabilities(d)	26,842		18,917
Other accrued expenses	221,038		201,994
Total accrued expenses and other current liabilities	862,753		850,899
Total	$	2,448,470	$	2,485,479

(a)    Additional information regarding accounts payable to related parties is included in “Note 17. Related Party Transactions.”

(b)    Additional information regarding revenue contract liabilities is included in “Note 2. Revenue Recognition.”

(c)    Additional information regarding litigation settlements is included in “Note 19. Commitments and Contingencies.”

(d)    Additional information regarding derivative liabilities is included in “Note 3. Derivative Financial Instruments.”

10.    SUPPLIER FINANCE PROGRAMS

The Company maintains supplier finance programs, under which we agree to pay for confirmed invoices from participating suppliers to a financing entity. Maturity dates are generally between 65-180 days and we pay either the supplier or the financing entity depending on the supplier's election. As of March 26, 2023 and December 25, 2022, the outstanding balance of confirmed invoices was $89.2 million and $239.6 million, respectively and are included in Accounts payable in the Condensed Consolidated Balance Sheets.

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11.    INCOME TAXES

The Company recorded an income tax benefit of $8.8 million, a 275.5% effective tax rate, for the three months ended March 26, 2023 compared to income tax expense of $75.2 million, a 21.1% effective tax rate, for the three months ended March 27, 2022. The decrease in income tax expense in 2023 resulted primarily from the decrease in profit before income taxes.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carry back and carry forward periods), projected future taxable income and tax-planning strategies in making this assessment. As of March 26, 2023, the Company did not believe it had sufficient positive evidence to conclude that realization of a portion of its foreign net deferred tax assets are more likely than not to be realized.

For the three months ended March 26, 2023 and March 27, 2022, there is a tax effect of $(0.7) million and $(2.3) million, respectively, reflected in other comprehensive income.

For the three months ended March 26, 2023 and March 27, 2022, there are immaterial tax effects reflected in income tax expense due to excess tax windfalls and shortfalls related to stock-based compensation.

The Company and its subsidiaries file a variety of consolidated and standalone income tax returns in various jurisdictions. In the normal course of business, our income tax filings are subject to review by various taxing authorities. In general, tax returns filed by the Company and its subsidiaries for years prior to 2011 are no longer subject to examination by tax authorities.

As of July 27, 2020, JBS owns in excess of 80% of Pilgrim’s. JBS has a federal tax election to file a consolidated tax return with subsidiaries in which it holds an ownership of at least 80%.

12.    DEBT

Long-term debt and other borrowing arrangements, including current notes payable to banks, consisted of the following components:

	Maturity	March 26, 2023		December 25, 2022
		(In thousands)
Senior notes payable at 3.50%	2032	$	900,000	$	900,000
Senior notes payable, net of discount, at 4.25%	2031	991,942		991,692
Senior notes payable, net of discount, at 5.875%	2027	846,761		846,582
U.S. Credit Facility (defined below):
Term note payable at 6.19%	2026	473,750		480,078
Revolving note payable at 7.89%	2026	35,000		—
U.K. and Europe Revolving Facility (defined below) with notes payable at SONIA plus 1.25%	2027	—		—
Mexico Credit Facility (defined below) with notes payable at TIIE plus 1.50%	2023	—		—
Finance lease obligations	Various	3,426		3,624
Long-term debt		3,250,879		3,221,976
Less: Current maturities of long-term debt		(26,326)		(26,279)
Long-term debt, less current maturities		3,224,553		3,195,697
Less: Capitalized financing costs		(27,938)		(29,265)
Long-term debt, less current maturities, net of capitalized financing costs		$	3,196,615	$	3,166,432

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U.S. Senior Notes

U.S. Senior Notes Due 2027

On September 29, 2017, the Company completed a sale of $600.0 million aggregate principal amount of its 5.875% unsecured senior notes due 2027. On March 7, 2018, the Company completed an add-on offering of $250.0 million of these senior notes (together with the senior notes issued in September 2017, the “Senior Notes due 2027”). The issuance price of this add-on offering was 97.25%, which created gross proceeds of $243.1 million. The $6.9 million discount will be amortized over the remaining life of the Senior Notes due 2027. Each issuance of the Senior Notes due 2027 is treated as a single class for all purposes under the 2017 Indenture (defined below) and have the same terms.

The Senior Notes due 2027 are governed by, and were issued pursuant to, an indenture dated as of September 29, 2017 by and among the Company, its guarantor subsidiaries and Regions Bank, as trustee (the “2017 Indenture”). The 2017 Indenture provides, among other things, that the Senior Notes due 2027 bear interest at a rate of 5.875% per annum from the date of issuance until maturity, payable semi-annually in cash in arrears, beginning on March 30, 2018 for the Senior Notes due 2027 that were issued in September 2017 and beginning on March 15, 2018 for the Senior Notes due 2027 that were issued in March 2018.

U.S. Senior Notes Due 2031

On April 8, 2021, the Company completed a sale of $1.0 billion aggregate principal amount of its 4.25% sustainability-linked unsecured senior notes due 2031 (“Senior Notes due 2031”). The Company used the net proceeds, together with cash on hand, to redeem previously issued senior notes. The issuance price of this offering was 98.994%, which created gross proceeds of $989.9 million. The $10.1 million discount will be amortized over the remaining life of the Senior Notes due 2031. Each issuance of the Senior Notes due 2031 is treated as a single class for all purposes under the April 2021 Indenture (defined below) and have the same terms.

The Senior Notes due 2031 are governed by, and were issued pursuant to, an indenture dated as of April 8, 2021 by and among the Company, its guarantor subsidiaries and Regions Bank, as trustee (the “April 2021 Indenture”). The April 2021 Indenture provides, among other things, that the Senior Notes due 2031 bear interest at a rate of 4.25% per annum payable semi-annually on April 15 and October 15 of each year. From and including October 15, 2026, the interest rate payable on the notes shall be increased to 4.50% per annum unless the Company has notified the trustee at least 30 days prior to October 15, 2026 that in respect of the year ended December 31, 2025, (1) the Company’s greenhouse gas emissions intensity reduction target of 17.679% by December 31, 2025 from a 2019 baseline (the “Sustainability Performance Target”) has been satisfied and (2) the satisfaction of the Sustainability Performance Target has been confirmed by a qualified provider of third-party assurance or attestation services appointed by the Company to review the Company’s statement of the greenhouse gas emissions intensity in accordance with its customary procedures.

U.S. Senior Notes Due 2032

On September 2, 2021, the Company completed a sale of $900.0 million in aggregate principal amount of its 3.50% unsecured senior notes due 2032 (“Senior Notes due 2032”). The Company used the proceeds, together with borrowings under the delayed draw term loan under its U.S. Credit Facility, to finance the acquisition of the Kerry Consumer Foods’ meats and meals businesses (now Pilgrim’s Food Masters) and to pay related fees and expenses. Each issuance of the Senior Notes due 2032 is treated as a single class for all purposes under the September 2021 Indenture (defined below) and have the same terms.

The Senior Notes due 2032 are governed by, and were issued pursuant to, an indenture dated as of September 2, 2021 by and among the Company, its guarantor subsidiaries and Regions Bank, as trustee (the “September 2021 Indenture”). The September 2021 Indenture provides, among other things, that the Senior Notes due 2032 bear interest at a rate of 3.50% per annum payable semi-annually on March 1 and September 1 of each year.

On September 22, 2022, the Company announced expiration and receipt of requisite consents in its consent solicitation for certain amendments to its Senior Notes due 2031 and Senior Notes due 2032. The amendments conform certain provisions and restrictive covenants in each indenture to (1) reflect PPC investment grade status and (2) the corresponding provisions and restrictive covenants set forth in the indenture governing its Senior Notes due 2031 and Senior Notes due 2032. The amendments permanently eliminated certain covenants for the Company, including limitation on incurrence of additional debt, issuance of capital stock, restricted payments, asset sales, restrictions on distributions, affiliate transactions, guarantees of debt by restricted subsidiaries and provisions related to mergers and consolidation. In addition, provisions related to limitation on liens, sale and leaseback transactions, substitution of the company and measuring compliance were amended.

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U.S. Senior Notes Due 2033

On April 19, 2023, the Company completed a sale of $1.0 billion aggregate principal amount of its 6.25% unsecured, registered senior notes due 2033 (“Senior Notes due 2033”). The Company used the net proceeds to repay the term loans and the outstanding balance under the U.S. Credit Facility as defined below. The remaining proceeds will be used for general corporate purposes, including repaying existing debt. The issuance price of this offering to the public was 99.312%, which created gross proceeds of $993.1 million before transaction costs. The $6.9 million discount will be amortized over the remaining life of the Senior Notes due 2033. The Senior Notes due 2033 bear interest at a rate of 6.25% per annum from the date of issuance until maturity, payable semiannually on January 1 and July 1 of each year, commencing on January 1, 2024.

The Senior Notes were and are each guaranteed on a senior unsecured basis by the Company’s guarantor subsidiaries. On February 16, 2023, the Company exchanged all of its outstanding principal amounts on the Senior Notes due 2031 and the Senior Notes due 2032 for an equal principal amount of new notes in a transaction registered under the Securities Act. In addition, and of the Company’s other existing or future domestic restricted subsidiaries that incur or guarantee any other indebtedness (with limited exceptions) must also guarantee the Senior Notes. All the Senior Notes related guarantees were and are unsecured senior obligations of the Company and its guarantor subsidiaries and rank equally with all of the Company’s and its guarantor subsidiaries’ other unsubordinated indebtedness. The Senior Notes also contain customary covenants and events of default.

U.S. Credit Facilities

On August 9, 2021, the Company and certain of the Company’s subsidiaries entered into a Fifth Amended and Restated Credit Agreement (the “U.S. Credit Facility”) with CoBank, ACB, as administrative agent and collateral agent, and the other lenders party thereto. The U.S. Credit Facility provides for an $800.0 million revolving credit commitment and a term loan commitment of up to $700.0 million (the “Term Loans”). The U.S. Credit Facility includes an incremental commitment and loan feature that allows the Company, subject to certain conditions, to increase the aggregate revolving loan and term loan commitments. The aggregate amount of incremental commitments and loans shall not exceed the sum of $500.0 million plus the maximum amount that would result in a senior secured leverage ratio, on a pro-forma basis, of not more than 3.00 to 1.00.

The revolving loan commitment under the U.S. Credit Facility matures on August 9, 2026. All principal on the Term Loans is due at maturity on August 9, 2026. Installments of principal in amounts predetermined by CoBank, ACB are required to be made on a quarterly basis prior to the maturity date of the Term Loans beginning in January 2022. As of March 26, 2023, the Company had outstanding borrowings under the term loan commitment of $473.8 million. As of March 26, 2023, the Company had outstanding letters of credit and available borrowings under the revolving credit commitment of $35.0 million and $730.0 million, respectively. The outstanding borrowings were $35.0 million as of March 26, 2023.

The U.S. Credit Facility includes an $80.0 million sub-limit for swingline loans and a $125.0 million sub-limit for letters of credit. Outstanding borrowings under the revolving loan commitment and the Term Loans bear interest at a per annum rate, based on the Company’s senior secured net leverage ratio, equal to (1) in the case of LIBOR loans, between LIBOR plus 1.25% and LIBOR plus 2.75% and (2) in the case of base rate loans, between the base rate plus 0.25% and the base rate plus 1.75%.

The U.S. Credit Facility contains customary financial and other various covenants for transactions of this type, including restrictions on the Company’s ability to incur additional indebtedness, incur liens, pay dividends, make certain restricted payments, consummate certain asset sales, enter into certain transactions with the Company’s affiliates, or merge, consolidate and/or sell or dispose of all or substantially all of its assets, among other things. The U.S. Credit Facility requires the Company to comply with a minimum net leverage ratio and a minimum interest coverage ratio.

All obligations under the U.S. Credit Facility continue to be secured by first priority liens on (1) all present and future personal property of the Company and certain of the Company’s subsidiaries and the guarantors, including all material domestic and first-tier direct foreign subsidiaries, (2) all present and future shares of capital stock of the borrowers and guarantors and (3) substantially all of the present and future assets of the Company and the guarantors under the U.S. Credit Facility. The Company is currently in compliance with the covenants under the U.S. Credit Facility.

On April 19, 2023, the outstanding balances for the swingline loans and term loans under the U.S. Credit Facility were paid in full with the proceeds from the Senior Notes 2033 as outlined above.

U.K. and Europe Revolving Facility

On June 24, 2022, Moy Park Holdings (Europe) Ltd. (“MPH(E)”) and other Pilgrim’s entities located in the U.K. and Republic of Ireland entered into an unsecured multicurrency revolving facility agreement (the “U.K. and Europe Revolver

18

Facility”) with the Governor and Company of the Bank of Ireland, as agent, and the other lenders party thereto. The U.K. and Europe Revolver Facility provides for a multicurrency revolving loan commitment of up to £150.0 million. The loan commitment matures on June 24, 2027. Outstanding borrowings bear interest at the (1) current index interest rate, depending on the currency of the borrowing, plus (2) a margin, ranging from 1.25% to 2.00% based on leverage (as defined in the U.K. and Europe Revolver Facility). All obligations under this agreement are guaranteed by certain of the Company’s subsidiaries. As of March 26, 2023, both the U.S. dollar-equivalent loan commitment and borrowing availability were $183.5 million and there were no outstanding borrowings under this agreement.

The U.K. and Europe Revolver Facility contains representations and warranties, covenants, indemnities and conditions, in each case, that the Company believes are customary for transactions of this type. Pursuant to the terms of the agreement, the Company is required to meet certain financial and other restrictive covenants. Additionally, the Company is prohibited from taking certain actions without consent of the lenders, including, without limitation, incurring additional indebtedness, entering into certain mergers or other business combination transactions, permitting liens or other encumbrances on its assets and making restricted payments, including dividends, in each case, except as expressly permitted under the U.K. and Europe Revolver Facility. The Company is currently in compliance with the covenants under the U.K. and Europe Revolver Facility.

Mexico Credit Facility

On December 14, 2018, certain of the Company’s Mexican subsidiaries entered into an unsecured credit agreement (the “Mexico Credit Facility”) with Banco del Bajio, Sociedad Anónima, Institución de Banca Múltiple, as lender. The loan commitment under the Mexico Credit Facility is Mex$1.5 billion and can be borrowed on a revolving basis. Outstanding borrowings under the Mexico Credit Facility accrue interest at a rate equal to the 28-Day Interbank Equilibrium Interest Rate plus 1.5%. The Mexico Credit Facility contains covenants and defaults that the Company believes are customary for transactions of this type. The Company is currently in compliance with the covenants under the Mexico Credit Facility. The Mexico Credit Facility will be used for general corporate and working capital purposes. The Mexico Credit Facility will mature on December 14, 2023. As of March 26, 2023, the U.S. dollar-equivalent of the loan commitment and borrowing availability was $81.3 million. As of March 26, 2023, there were no outstanding borrowings under the Mexico Credit Facility.

13.    STOCKHOLDERS’ EQUITY

Accumulated Other Comprehensive Income (Loss)

The following tables provide information regarding the changes in accumulated other comprehensive income (loss):

	Three Months Ended March 26, 2023
	Gains (Losses) Related to Foreign Currency Translation		Losses on Derivative Financial Instruments Classified as Cash Flow Hedges		Losses Related to Pension and Other Postretirement Benefits		Gains (Losses) on Available-for-Sale Securities		Total
	(In thousands)
Balance, beginning of period	$	(269,825)	$	(1,162)	$	(65,447)	$	(14)	$	(336,448)
Other comprehensive income before reclassifications	42,644		16		3,652		30		46,342
Amounts reclassified from accumulated other comprehensive loss (gain) to net income	—		(64)		139		(13)		62
Currency translation	—		2		—		—		2
Net current period other comprehensive income (loss)	42,644		(46)		3,791		17		46,406
Balance, end of period	$	(227,181)	$	(1,208)	$	(61,656)	$	3	$	(290,042)

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	Three Months Ended March 27, 2022
	Gains (Losses) Related to Foreign Currency Translation		Losses on Derivative Financial Instruments Classified as Cash Flow Hedges		Losses Related to Pension and Other Postretirement Benefits		Gains (Losses) on Available-for-Sale Securities		Total
	(In thousands)
Balance, beginning of period	$	27,241	$	(2,365)	$	(72,873)	$	—	$	(47,997)
Other comprehensive income (loss) before reclassifications	(58,202)		523		6,479		—		(51,200)
Amounts reclassified from accumulated other comprehensive loss to net income	—		115		175		—		290
Currency translation	—		5		—		—		5
Net current period other comprehensive income (loss)	(58,202)		643		6,654		—		(50,905)
Balance, end of period	$	(30,961)	$	(1,722)	$	(66,219)	$	—	$	(98,902)

	Amount Reclassified from Accumulated Other Comprehensive Loss(a)
Details about Accumulated Other Comprehensive Loss Components	Three Months Ended March 26, 2023		Three Months Ended March 27, 2022		Affected Line Item in the Condensed Consolidated Statements of Income
	(In thousands)
Realized gains on settlement of foreign currency derivatives classified as cash flow hedges	$	120	$	32	Net sales
Realized losses on settlement of foreign currency derivatives classified as cash flow hedges	(56)		(91)		Cost of sales
Realized gain on sale of securities	18		—		Interest Income
Realized losses on settlement of interest rate swap derivatives classified as cash flow hedges	—		(98)		Interest expense, net of capitalized interest
Amortization of pension and other postretirement plan actuarial losses(b)	(182)		(232)		Miscellaneous, net
Total before tax	(100)		(389)
Tax expense	38		99
Total reclassification for the period	$	(62)	$	(290)

(a)    Positive amounts represent income to the results of operations while amounts in parentheses represent expenses to the results of operations.

(b)    These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See “Note 14. Pension and Other Postretirement Benefits.”

Preferred Stock

The Company has authorized 50,000,000 shares of $0.01 par value preferred stock, although no shares have been issued and no shares are outstanding.

Restrictions on Dividends

Both the U.S. Credit Facility and the indentures governing the Company’s senior notes restrict, but do not prohibit, the Company from declaring dividends. Additionally, the U.K. and Europe Revolver Facility prohibits MPH(E) and other Pilgrim's entities located in the U.K. and Republic of Ireland to, among other things, make payments and distributions to the Company.

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14.    PENSION AND OTHER POSTRETIREMENT BENEFITS

The Company sponsors programs that provide retirement benefits to most of its employees. These programs include qualified defined benefit pension plans such as the Pilgrim’s Pride Retirement Plan for Union Employees (the “Union Plan”) the Pilgrim’s Pride Pension Plan for Legacy Gold Kist Employees (the “GK Pension Plan”), the Tulip Limited Pension Plan (the “Tulip Plan”) and the Geo Adams Group Pension Fund (the “Geo Adams Plan”), nonqualified defined benefit retirement plans, a defined benefit postretirement life insurance plan and defined contribution retirement savings plan. Expenses recognized under all retirement plans totaled $7.6 million and $6.4 million in the three months ended March 26, 2023 and March 27, 2022, respectively.

Defined Benefit Plans Obligations and Assets

The change in benefit obligation, change in fair value of plan assets, funded status and amounts recognized in the Condensed Consolidated Balance Sheets for the defined benefit plans were as follows:

	Three Months Ended
	March 26, 2023				March 27, 2022
	Pension Benefits		Other Benefits		Pension Benefits		Other Benefits
	(In thousands)
Change in projected benefit obligation:
Projected benefit obligation, beginning of period	$	236,147	$	1,169	$	373,062	$	1,346
Interest cost	2,314		9		1,508		4
Actuarial gain	(3,134)		(15)		(29,146)		(56)
Benefits paid	(3,838)		(29)		(4,810)		(26)
Currency translation loss (gain)	(1,082)		—		161		—
Projected benefit obligation, end of period	$	230,407	$	1,134	$	340,775	$	1,268

	Three Months Ended
	March 26, 2023				March 27, 2022
	Pension Benefits		Other Benefits		Pension Benefits		Other Benefits
	(In thousands)
Change in plan assets:
Fair value of plan assets, beginning of period	$	210,133	$	—	$	326,409	$	—
Actual return on plan assets	3,357		—		(18,246)		—
Contributions by employer	2,109		29		3,287		26
Benefits paid	(3,838)		(29)		(4,810)		(26)
Expenses paid from assets	(94)		—		(115)		—
Currency translation gain (loss)	(1,012)		—		116		—
Fair value of plan assets, end of period	$	210,655	$	—	$	306,641	$	—

	March 26, 2023				December 25, 2022
	Pension Benefits		Other Benefits		Pension Benefits		Other Benefits
	(In thousands)
Funded status:
Unfunded benefit obligation, end of period	$	(19,752)	$	(1,134)	$	(26,014)	$	(1,169)

	March 26, 2023				December 25, 2022
	Pension Benefits		Other Benefits		Pension Benefits		Other Benefits
	(In thousands)
Amounts recognized in the Condensed Consolidated Balance Sheets at end of period:
Current liability	$	(794)	$	(148)	$	(841)	$	(177)
Long-term liability	(18,958)		(986)		(25,173)		(992)
Recognized liability	$	(19,752)	$	(1,134)	$	(26,014)	$	(1,169)

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	March 26, 2023				December 25, 2022
	Pension Benefits		Other Benefits		Pension Benefits		Other Benefits
	(In thousands)
Amounts recognized in accumulated other comprehensive loss at end of period:
Net actuarial loss (gain)	$	43,585	$	(81)	$	48,121	$	(66)

The accumulated benefit obligation for the Company’s defined benefit pension plans was $230.4 million and $236.1 million at March 26, 2023 and December 25, 2022, respectively. Each of the Company’s defined benefit pension plans had accumulated benefit obligations that exceeded the fair value of plan assets at both March 26, 2023 and December 25, 2022.

Net Periodic Benefit Costs

Net defined benefit pension and other postretirement costs included the following components:

	Three Months Ended
	March 26, 2023				March 27, 2022
	Pension Benefits		Other Benefits		Pension Benefits		Other Benefits
	(In thousands)
Interest cost	$	2,314	$	9	$	1,508	$	4
Estimated return on plan assets	(2,222)		—		(2,403)		—
Expenses paid from assets	94		—		115		—
Amortization of net loss	179		—		227		—
Amortization of past service cost	4		—		5		—
Net costs(a)	$	369	$	9	$	(548)	$	4

(a)    Net costs are included in the line item Miscellaneous, net on the Condensed Consolidated Statements of Income.

Economic Assumptions

The weighted average assumptions used in determining pension and other postretirement plan information were as follows:

	March 26, 2023				December 25, 2022
	Pension Benefits		Other Benefits		Pension Benefits		Other Benefits
Assumptions used to measure benefit obligation at end of period:
Discount rate	5.14	%	5.44	%	5.04	%	5.16	%

	Three Months Ended
	March 26, 2023				March 27, 2022
	Pension Benefits		Other Benefits		Pension Benefits		Other Benefits
Assumptions used to measure net pension and other postretirement cost:
Discount rate	5.04	%	5.16	%	2.23	%	2.38	%
Expected return on plan assets	4.97	%	NA		3.40	%	NA

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Unrecognized Benefit Amounts in Accumulated Other Comprehensive Loss

The amounts in accumulated other comprehensive loss that were not recognized as components of net periodic benefits cost and the changes in those amounts are as follows:

	Three Months Ended
	March 26, 2023				March 27, 2022
	Pension Benefits		Other Benefits		Pension Benefits		Other Benefits
	(In thousands)
Net actuarial loss (gain), beginning of period	$	48,121	$	(66)	$	58,143	$	118
Amortization	(183)		—		(232)		—
Actuarial gain	(3,134)		(15)		(29,146)		(56)
Asset loss (gain)	(1,136)		—		20,649		—
Currency translation loss (gain)	(83)		—		27		—
Net actuarial loss (gain), end of period	$	43,585	$	(81)	$	49,441	$	62

Remeasurement

The Company remeasures both plan assets and obligations on a quarterly basis.

Defined Contribution Plans

The Company sponsors two defined contribution retirement savings plans in the U.S. reportable segment for eligible U.S. and Puerto Rico employees. The Company maintains three postretirement plans for eligible employees in the Mexico reportable segment, as required by Mexico law, which primarily cover termination benefits. The Company maintains seven defined contribution retirement savings plans in the U.K. and Europe reportable segment for eligible U.K. and Europe employees, as required by U.K. and Europe law. The Company’s expenses related to its defined contribution plans totaled $6.8 million in the three months ended March 26, 2023.

15.    FAIR VALUE MEASUREMENT

Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Assets and liabilities measured at fair value must be categorized into one of three different levels depending on the assumptions (i.e., inputs) used in the valuation:

Level 1	Unadjusted quoted prices available in active markets for identical assets or liabilities at the measurement date;
Level 2	Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability; or
Level 3	Unobservable inputs, such as discounted cash flow models or valuations.

The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement in its entirety.

As of March 26, 2023 and December 25, 2022, the Company held derivative assets and liabilities that were required to be measured at fair value on a recurring basis. Derivative assets and liabilities consist of long and short positions on exchange-traded commodity futures instruments, commodity options instruments, sales contracts instruments, foreign currency instruments to manage translation and remeasurement risk and interest rate swap instruments.

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The following items were measured at fair value on a recurring basis:

	March 26, 2023						December 25, 2022
	Level 1		Level 2		Total		Level 1		Level 2		Total
	(In thousands)
Assets:
Commodity derivative assets	$	8,333	$	—	$	8,333	$	17,922	$	—	$	17,922
Foreign currency derivative assets	5,600		—		5,600		555		—		555
Sales contract derivative assets	—		459		459		—		—		—
Liabilities:
Commodity derivative liabilities	(26,437)		—		(26,437)		(9,042)		—		(9,042)
Foreign currency derivative liabilities	(405)		—		(405)		(6,170)		—		(6,170)
Sales contract derivative liabilities	—		—		—		—		(3,705)		(3,705)

See “Note 3. Derivative Financial Instruments” for additional information.

The valuation of financial assets and liabilities classified in Level 1 is based upon unadjusted quoted prices for identical assets or liabilities in active markets. The valuation of financial assets and liabilities in Level 2 is determined using a market approach based upon quoted prices for similar assets and liabilities in active markets or other inputs that are observable for substantially the full term of the financial instrument. The valuation of financial assets in Level 3 is determined using an income approach based on unobservable inputs such as discounted cash flow models or valuations. For each class of assets and liabilities not measured at fair value in the Condensed Consolidated Balance Sheets but for which fair value is disclosed, the Company is not required to provide the quantitative disclosure about significant unobservable inputs used in fair value measurements categorized within Level 3 of the fair value hierarchy.

In addition to the fair value disclosure requirements related to financial instruments carried at fair value, accounting standards require interim disclosures regarding the fair value of all of the Company’s financial instruments. The methods and significant assumptions used to estimate the fair value of financial instruments and any changes in methods or significant assumptions from prior periods are also required to be disclosed.

The carrying amounts and estimated fair values of our debt obligations recorded in the Condensed Consolidated Balance Sheets consisted of the following:

	March 26, 2023				December 25, 2022
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(In thousands)
Fixed-rate senior notes payable at 3.50%, at Level 2 inputs	$	(900,000)	$	(715,761)	$	(900,000)	$	(726,498)
Fixed-rate senior notes payable at 4.25%, at Level 2 inputs	(991,942)		(843,149)		(991,691)		(734,349)
Fixed-rate senior notes payable at 5.875%, at Level 2 inputs	(846,761)		(835,720)		(846,582)		(846,175)
Variable-rate term note payable at 5.00%, at Level 3 inputs	(473,750)		(501,774)		(480,078)		(489,857)
Variable-rate swingline note payable at 7.89%, at Level 3 inputs	(35,000)		(35,000)		—		—

See “Note 12. Debt” for additional information.

The carrying amounts of our cash and cash equivalents, restricted cash and restricted cash equivalents, accounts receivable, accounts payable and certain other liabilities approximate their fair values due to their relatively short maturities. Derivative assets were recorded at fair value based on quoted market prices and are included in the line item Prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets. Derivative liabilities were recorded at fair value based on quoted market prices and are included in the line item Accrued expenses and other current liabilities on the Condensed Consolidated Balance Sheets. The fair value of the Company’s Level 2 fixed-rate debt obligations was based on the quoted market price at March 26, 2023 or December 25, 2022, as applicable.

In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company records certain assets and liabilities at fair value on a nonrecurring basis. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges when required by U.S. GAAP. There were no significant fair value measurement losses recognized for such assets and liabilities in the periods reported.

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16. RESTRUCTURING-RELATED ACTIVITIES

In 2022, the Company initiated restructuring initiatives to phase out and reduce processing volumes at multiple production facilities throughout the U.K. and Europe reportable segment. Implementation of this initiative is expected to result in total pre-tax charges of approximately $53.0 million, and approximately $47.7 million of these charges are estimated to result in cash outlays. These activities were initiated in the fourth quarter of 2022 and are expected to be substantially completed by the end of the second quarter of 2023.

The following table provides a summary of our estimates of costs associated with these restructuring initiatives by major type of cost:

	Moy Park		Pilgrim’s Pride Ltd.		Pilgrim’s Food Masters		Total
	(In thousands)
Earliest implementation date	October 2022		November 2022		December 2022
Expected completion date	June 2023		July 2023		July 2023
Costs incurred and expected to be incurred:
Employee-related costs	$	9,948	$	7,838	$	11,300	$	29,086
Asset impairment costs	9,173		—		—		9,173
Contract termination costs	124		1,518		3,067		4,709
Other exit and disposal costs (a)	481		2,203		7,550		10,234
Total exit and disposal costs	$	19,726	$	11,559	$	21,917	$	53,202
Cost incurred since earliest implementation date:
Employee-related costs	$	9,608	$	9,318	$	5,695	$	24,621
Asset impairment costs	3,559		—		—		3,559
Contract termination costs	122		—		—		122
Other exit and disposal costs (a)	6,036		2,126		2,028		10,190
Total exit and disposal costs	$	19,325	$	11,444	$	7,723	$	38,492

(a)Comprised of other costs directly related to the restructuring initiatives including Moy Park flock depletion, the write-off of Pilgrim’s Pride Ltd. prepaid maintenance costs and Pilgrim’s Food Masters consulting fees.

During the three months ended March 26, 2023, the Company recognized the following expenses and paid the following cash related to each restructuring initiative:

	Expenses		Cash Outlays
	(In thousands)
Moy Park	$	—	$	4,419
Pilgrim’s Pride Ltd.	1,304		3,588
Pilgrim’s Food Masters	6,722		6,146
	$	8,026	$	14,153

These expenses are reported in the line item Restructuring activities on the Condensed Consolidated Statements of Income.

The following table reconciles liabilities and reserves associated with each restructuring initiative from initiative inception to March 26, 2023. Ending liability balances for employee termination benefits and other charges are reported in the line item Accrued expenses and other current liabilities in our Condensed Consolidated Balance Sheets. The ending reserve balance for inventory impairments is reported in the line item Inventories in our Condensed Consolidated Balance Sheets. The ending reserve balance for asset impairments is reported in the line item Property, plant and equipment, net in our Condensed Consolidated Balance Sheets.

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	Moy Park
	Liability or reserve as of December 25, 2022		Restructuring charges incurred		Cash payments and disposals		Currency translation		Liability or reserve as of March 26, 2023
	(In thousands)
Asset impairment	$	2,391	$	—	$	(2,837)	$	446	$	—
Inventory adjustments	1		—		(1)		—
Other charges	6,025		—		(1,539)		(356)		4,130
Contract termination	122		—		(42)		1		81
Total	$	8,539	$	—	$	(4,419)	$	91	$	4,211

	Pilgrim’s Pride Ltd.
	Liability or reserve as of December 25, 2022		Restructuring charges incurred		Cash payments and disposals		Currency translation		Liability or reserve as of March 26, 2023
	(In thousands)
Employee retention benefits	$	—	$	319	$	—	$	3	$	322
Severance	5,503		793		(3,588)		59		2,767
Inventory adjustments	615		49		—		9		673
Lease termination	800		—		—		12		812
Other charges	501		143		—		8		652
Total	$	7,419	$	1,304	$	(3,588)	$	91	$	5,226

	Pilgrim’s Food Masters
	Liability or reserve as of December 25, 2022		Restructuring charges incurred		Cash payments and disposals		Currency translation		Liability or reserve as of March 26, 2023
	(In thousands)
Severance	$	639	$	4,736	$	(5,379)	$	4	$	—
Inventory adjustments	—		542		(542)		—		—
Lease termination	—		1,219		—		26		1,245
Other charges	—		225		(225)		—		—
Total	$	639	$	6,722	$	(6,146)	$	30	$	1,245

17.    RELATED PARTY TRANSACTIONS

Pilgrim’s has been and, in some cases, continues to be a party to certain transactions with affiliated companies.

	Three Months Ended
	March 26, 2023		March 27, 2022
	(In thousands)
Sales to related parties:
JBS USA Food Company(a)	$	7,512	$	4,611
JBS Chile Ltda.	946		52
Other related parties	877		1,215
Total sales to related parties	$	9,335	$	5,878

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	Three Months Ended
	March 26, 2023		March 27, 2022
	(In thousands)
Cost of goods purchased from related parties:
JBS USA Food Company(a)	$	49,905	$	61,903
Seara Meats BV	4,999		1,468
Penasul UK LTD	4,187		3,540
JBS Asia Co Limited	911		2,124
Other related parties	897		62
Total cost of goods purchased from related parties	$	60,899	$	69,097

	Three Months Ended
	March 26, 2023		March 27, 2022
	(In thousands)
Expenditures paid by related parties:
JBS USA Food Company(b)	$	14,022	$	24,178

	Three Months Ended
	March 26, 2023		March 27, 2022
	(In thousands)
Expenditures paid on behalf of related parties:
JBS USA Food Company(b)	$	3,380	$	32,525
Other related parties	4		$	—
Total expenditures paid on behalf of related parties	$	3,384	$	32,525

	March 26, 2023		December 25, 2022
	(In thousands)
Accounts receivable from related parties:
JBS USA Food Company(a)	$	730	$	2,062
JBS Chile Ltda.	871		3
Other related parties	524		447
Total accounts receivable from related parties	$	2,125	$	2,512

	March 26, 2023		December 25, 2022
	(In thousands)
Accounts payable to related parties:
JBS USA Food Company(a)	$	9,917	$	7,434
Seara Meats BV	4,043		1,565
JBS Asia Co Limited	4,105		2,099
Penasul UK LTD	2,408		940
Other related parties	8		117
Total accounts payable to related parties	$	20,481	$	12,155

(a)    The Company routinely executes transactions to both purchase products from JBS USA Food Company (“JBS USA”) and sell products to them. As of March 26, 2023, goods purchased and in transit from JBS USA were immaterial and not reflected on our Condensed Consolidated Balance Sheet.

(b)    The Company has an agreement with JBS USA to allocate costs associated with JBS USA’s procurement of SAP licenses and maintenance services for its combined companies. Under this agreement, the fees associated with procuring SAP licenses and maintenance services are allocated between the Company and JBS USA in proportion to the percentage of licenses used by each company. The agreement expires on the date of expiration, or earlier termination, of the underlying SAP license agreement. The Company also has an agreement with JBS USA to allocate the costs of supporting the business operations by one consolidated corporate team, which have historically been supported by their respective corporate teams. Expenditures paid by JBS USA on behalf of the Company will be reimbursed by the Company and expenditures paid by the Company on behalf of JBS USA will be reimbursed by JBS USA. This agreement expires on December 31, 2023.

18.    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

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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 Ended
	March 26, 2023(a)		March 27, 2022(b)
	(In thousands)
Net sales
U.S.	$	2,432,568	$	2,581,208
U.K. and Europe	1,239,264		1,191,982
Mexico	493,796		467,205
Total	$	4,165,628	$	4,240,395

(a)For the three months ended March 26, 2023, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $31.0 million. These sales consisted of fresh products, prepared products and grain.

(b)For the three months ended March 27, 2022, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $43.4 million. These sales consisted of fresh products, prepared products and grain.

	Three Months Ended
	March 26, 2023		March 27, 2022
	(In thousands)
Reportable segment profit (loss):
U.S.	$	(28,106)	$	355,075
U.K. and Europe	25,261		(21,640)
Mexico	34,175		68,564
Eliminations	13		14
Total operating income	31,343		402,013
Interest expense, net of capitalized interest	42,662		36,296
Interest income	(3,600)		(1,274)
Foreign currency transaction losses	18,143		11,536
Miscellaneous, net	(22,653)		(324)
Income (loss) before income taxes	(3,209)		355,779
Income tax expense (benefit)	(8,840)		75,219
Net income	$	5,631	$	280,560

	March 26, 2023		December 25, 2022
	(In thousands)
Total assets by reportable segment:
U.S.	$	6,813,350	$	6,847,209
U.K. and Europe	4,124,386		4,033,990
Mexico	1,302,434		1,292,056
Eliminations	(3,012,665)		(2,917,486)
Total assets	$	9,227,505	$	9,255,769

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	March 26, 2023		December 25, 2022
	(In thousands)
Long-lived assets by reportable segment(a):
U.S.	$	1,983,051	$	1,943,967
U.K. and Europe	1,009,838		1,011,283
Mexico	298,242		295,069
Eliminations	(3,661)		(3,675)
Total long-lived assets	$	3,287,470	$	3,246,644

(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.

19.    COMMITMENTS AND CONTINGENCIES

General

The Company is a party to many routine contracts in which it provides general indemnities in the normal course of business to third parties for various risks. Among other considerations, the Company has not recorded a liability for any of these indemnities because, based upon the likelihood of payment, the fair value of such indemnities would not have a material impact on its financial condition, results of operations and cash flows.

Financial Instruments

The Company’s loan agreements generally obligate the Company to reimburse the applicable lender for incremental increased costs due to a change in law that imposes (1) any reserve or special deposit requirement against assets of, deposits with or credit extended by such lender related to the loan, (2) any tax, duty or other charge with respect to the loan (except standard income tax) or (3) capital adequacy requirements. In addition, some of the Company’s loan agreements contain a withholding tax provision that requires the Company to pay additional amounts to the applicable lender or other financing party, generally if withholding taxes are imposed on such lender or other financing party as a result of a change in the applicable tax law. These increased cost and withholding tax provisions continue for the entire term of the applicable transaction and there is no limitation on the maximum additional amounts the Company could be obligated to pay under such provisions. Any failure to pay amounts due under such provisions generally would trigger an event of default and, in a secured financing transaction, would entitle the lender to foreclose upon the collateral to realize the amount due.

Litigation

The Company is subject to various legal proceedings and claims which arise in the ordinary course of business. In the Company’s opinion, it has made appropriate and adequate accruals for claims where necessary; however, the ultimate liability for these matters is uncertain, and if significantly different than the amounts accrued, the ultimate outcome could have a material effect on the financial condition or results of operations of the Company. The Company cannot predict the outcome of the litigation matters or other actions nor when they will be resolved. The consequences of the pending litigation matters are inherently uncertain, and settlements, adverse actions, or adverse judgments in some or all of these matters, including investigations by the U.S. Department of Justice (“DOJ”) or the Attorneys General, may result in monetary damages, fines, penalties, or injunctive relief against the Company, which could be material and could adversely affect its financial condition or results of operations. Any claims or litigation, even if fully indemnified or insured, could damage the Company’s reputation and make it more difficult to compete effectively or to obtain adequate insurance in the future. In addition, the U.S. government’s recent focus on market dynamics in the meat processing industry could expose the Company to additional costs and risks.

Tax Claims and Proceedings

During 2014 and 2015, the Mexican Tax Administration Service (“SAT”) opened a review of Avícola Pilgrim’s Pride de Mexico, S.A. de C.V. (“Avícola”) with regard to tax years 2009 and 2010. In both instances, the SAT claims that controlled company status did not exist for certain subsidiaries because Avícola did not own 50% of the shares in voting rights of Incubadora Hidalgo, S. de R.L de C.V. and Comercializadora de Carnes de México S. de R.L de C.V. (both in 2009) and Pilgrim’s Pride, S. de R.L. de C.V. (in 2010). As a result, according to the SAT, Avícola should have considered dividends paid out of these subsidiaries partially taxable since a portion of the dividend amount was not paid from the net tax profit account (CUFIN). Avícola appealed the opinion, and on January 31, 2023, the appeal as to tax year 2009 was dismissed by the Mexico Supreme Court. Accordingly, the Company has paid $25.9 million for tax year 2009. The opinion for tax year 2010 is still under appeal. Avícola has recorded a tax reserve of $15.8 million in connection therewith.

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On May 12, 2022, the Mexican Tax Authorities issued tax assessments against Pilgrim’s Pride, S. de R.L. de C.V. and Provemex Holdings, LLC in connection with PPC’s acquisition of Tyson de México. Following the acquisition, PPC re-domiciled Provemex Holdings, LLC from the U.S. to Mexico. The tax authorities claim that Provemex Holdings, LLC was a Mexican entity at the time of the acquisition and, as a result, was obligated to pay taxes on the sale. The Mexican subsidiaries of PPC are currently appealing these assessments. Amounts under appeal are approximately $267.7 million for each of the two tax assessments. No loss has been recorded for these amounts at this time.

U.S. Litigation

Between September 2, 2016 and October 13, 2016, a series of federal class action lawsuits were filed with the U.S. District Court for the Northern District of Illinois (“Illinois Court”) against PPC and other defendants by and on behalf of direct and indirect purchasers of broiler chickens alleging violations of antitrust and unfair competition laws and styled as In re Broiler Chicken Antitrust Litigation, Case No. 1:16-cv-08637 (“Broiler Antitrust Litigation”). The complaints seek, among other relief, treble damages for an alleged conspiracy among defendants to reduce output and increase prices of broiler chickens from the period of January 2008 to the present. The class plaintiffs have filed three consolidated amended complaints: the direct purchasers (“Broiler DPPs”), the commercial and institutional indirect purchasers (“Broiler CIIPPs”), and the end-user consumer indirect purchasers (“Broiler EUCPs”). Between December 8, 2017 and September 1, 2021, 82 individual direct action complaints were filed with the Illinois Court by individual direct purchaser entities (“Broiler DAPs”) naming PPC as a defendant, the allegations of which largely mirror those in the class action complaints, though some added allegations of price fixing and bid rigging on certain sales. The Illinois Court issued a revised scheduling order for certain plaintiffs who limited their claims to reduction of output, which sets the first trial date on September 12, 2023. The schedule for the rest of the plaintiffs is still awaiting an order from the Illinois Court. On May 27, 2022, the Illinois Court certified each of the three classes. PPC has entered into agreements to settle all claims made by the Broiler DPPs, Broiler CIIPPs, and Broiler EUCPs, for an aggregate total of $195.5 million, each of which has received final approval from the Illinois Court. PPC continues to defend itself against the Broiler DAPs as well as parties that have opted out of the class settlements (collectively, the “Broiler Opt Outs”). PPC will seek reasonable settlements where they are available. To date, PPC has recognized an expense of $514.4 million to cover settlements with various Broiler Opt Outs. PPC recognized these settlement expenses in Selling, general and administrative expense (“SG&A expense”) in the Consolidated Statements of Income.

Between August 30, 2019 and October 16, 2019, a series of purported class action lawsuits were filed in the U.S. District Court for the District of Maryland (“Maryland Court”) against PPC and a number of other chicken producers, as well as Webber, Meng, Sahl & Company and Agri Stats. The plaintiffs are a putative class of poultry processing plant production and maintenance workers (“Poultry Workers Class”) and styled as Jien, et al. v. Perdue Farms, Inc., et al., No. 19-cv-02521 allege that the defendants conspired to fix and depress the compensation paid to Poultry Workers Class in violation of the Sherman Antitrust Act. Defendants moved to dismiss on December 18, 2020, which the Maryland Court denied on March 10, 2021. On June 14, 2021, PPC entered into an agreement to settle all claims made by the Poultry Workers Class for $29.0 million, though the agreement is still subject to final approval by the Maryland Court. On February 16, 2022, the plaintiffs filed an amended complaint, which extended the relevant period, added defendants, and included additional workers in the class. PPC recognizes these settlement expenses within SG&A expense in the Consolidated Statements of Income.

On January 27, 2017, a purported class action on behalf of broiler chicken farmers was brought against PPC and other chicken producers in the U.S. District Court for the Eastern District of Oklahoma (the “Oklahoma Court”) alleging, among other things, a conspiracy to reduce competition for grower services and depress the price paid to growers. The complaint was consolidated with several subsequently filed consolidated amended class action complaints and styled as In re Broiler Chicken Grower Litigation, Case No. CIV-17-033. The defendants (including PPC) jointly moved to dismiss the consolidated amended complaint, which the Oklahoma Court denied as to PPC and certain other defendants. PPC, therefore, continues to litigate against the putative class plaintiffs.

On October 20, 2016, Patrick Hogan, acting on behalf of himself and a putative class of certain PPC stockholders, filed a class action complaint in the U.S. District Court for the District of Colorado (“Colorado Court”) against PPC and its named executive officers styled as Hogan v. Pilgrim’s Pride Corporation, et al., No. 16-CV-02611 (“Hogan Litigation”). The complaint alleges, among other things, that PPC’s SEC filings contained statements that were rendered materially false and misleading by PPC’s failure to disclose that (1) PPC colluded with several of its industry peers to fix prices in the broiler chicken market as alleged in the Broilers Litigation, (2) its conduct constituted a violation of federal antitrust laws, and (3) PPC’s revenues during the class period were the result of illegal conduct. On July 31, 2020, defendants filed a motion to dismiss, which the Colorado Court granted on April 19, 2021. On May 17, 2021, the plaintiff filed a motion for amended judgment, which the Colorado Court denied on November 29, 2021. The plaintiff then filed a notice of appeal on December 28, 2021, and the appeal was opened in the U.S. Court of Appeals for the Tenth Circuit, which is now fully briefed, including oral argument on January 17, 2023, and is awaiting a decision.

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Between March 9, 2017 and April 17, 2017, a series of putative stockholder derivative class actions were brought against all of PPC’s directors and two executives, William Lovette and Fabio Sandri, in the Nineteenth Judicial District Court for the County of Weld in Colorado (“Weld County Court”). The complaints allege, among other things, that the named defendants breached their fiduciary duties by failing to prevent PPC and its officers from engaging in an antitrust conspiracy as alleged in the Broiler Antitrust Litigation and issuing false and misleading statements as alleged in the Hogan Litigation. The complaints were amended and consolidated, adding former PPC executives Jayson Penn, Roger Austin, and Jimmie Little as named defendants, and styled as DiSalvio and Brima v. Tomazoni, et al., 2017 CV 30207. Following a series of stays in the action, PPC filed a motion to dismiss, which the Weld County Court granted in its entirety and with prejudice on December 12, 2022. On December 27, 2022, the plaintiffs filed a motion for reconsideration, which the Weld County Court denied on March 2, 2023. On March 15, 2023, the plaintiffs filed an additional motion for reconsideration. On April 25, 2023, the Weld County Court affirmed its dismissal of the case with prejudice.

U.S. State Matters

From February 21, 2017 through May 4, 2021, the Attorneys General for multiple U.S. states have issued civil investigative demands (“CIDs”). The CIDs request, among other things, data and information related to the acquisition and processing of broiler chickens and the sale of chicken products. PPC is cooperating with the Attorneys General in these states in producing documents pursuant to the CIDs.

On September 1, 2020, February 22, 2021, and October 28, 2021, the Attorneys General in New Mexico (State of New Mexico v. Koch Foods, et al., D-101-CV-2020-01891), Alaska (State of Alaska v. Agri Stats, Inc., et al., 3AN-21-04632), and Washington (State of Washington v. Tyson Foods Inc., et al., 21-2-14174-5), respectively, filed complaints against PPC based on allegations similar to those asserted in the Broiler Antitrust Litigation. PPC has answered all of the complaints and each case is now in discovery. On March 9, 2023, PPC entered into an agreement to settle all claims made by the State of Washington for $11.0 million.

U.S. Federal Matters

On February 9, 2022, the Company learned that the DOJ opened a civil investigation into human resources antitrust matters, and on October 6, 2022, the Company learned that the DOJ opened a civil investigation into grower contracts and payment practices. The Company is cooperating with the DOJ in its investigations. The DOJ has informed the Company that it is likely to file a civil complaint pursuant to at least one of these investigations.

20.    BUSINESS INTERRUPTION INSURANCE

The Company experienced business interruptions from the COVID-19 pandemic and a tornado on December 10, 2021 in Mayfield, Kentucky that significantly damaged two hatcheries and a feed mill. The Company maintains certain insurance coverage, including business interruption insurance, intended to cover such circumstances. In the three months ended March 26, 2023, the Company received $1.2 million in proceeds from business interruption insurance. In the three months ended March 26, 2023, the Company recognized $35.9 million in income from business interruption insurance in Cost of sales on the Condensed Consolidated Statement of Income, with $25.3 million in the U.S. reportable segment and $10.6 million in the U.K. and Europe reportable segment.

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ITEM 2.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Executive Summary

Overview

We reported net income attributable to Pilgrim’s of $5.2 million, or $0.02 per diluted common share, and loss before tax totaling $3.2 million, for the three months ended March 26, 2023. These operating results included net sales of $4.2 billion, gross profit of $173.0 million and $161.7 million of cash used in operating activities. We generated a consolidated operating margin of 0.8%. For the three months ended March 26, 2023, we generated EBITDA and Adjusted EBITDA of $134.1 million and $151.9 million, respectively. A reconciliation of net income to EBITDA and Adjusted EBITDA is included below.

Global Economic Conditions

During the first quarter of 2023, we continued to experience challenges from inflation in commodity, labor and other operating costs across all our businesses. The global feed ingredient and energy markets continue to be impacted by the Russia-Ukraine war, driving up prices as supply out of the Black Sea region is disrupted and future production is at risk. Despite inflationary headwinds and softening consumer demand throughout the U.K. and E.U., we have and will continue to invest in our people, implement supply chain solutions, and conduct customer negotiations for cost recovery. Our Mexico segment is managing through challenges as Mexico remains a volatile market given inflationary pressures, implications of more bird disease, an evolving global protein industry, and overall business seasonality.

We have responded to these challenges by continuing negotiations with customers to recoup the extraordinary costs we have experienced. We also continue to focus on operational initiatives that aim to deliver labor efficiencies, better agricultural performance and improved yields.

Russia-Ukraine War Impacts

The Russia-Ukraine war began in February 2022. The impact of the ongoing war and sanctions will not be limited to businesses that operate in Russia and Ukraine and has negatively impacted and will likely continue to negatively impact other global economic markets including where we operate. The impacts have included and may continue to include, but are not limited to, higher prices for commodities, such as food products, ingredients and energy products, increasing inflation in some countries, and disrupted trade and supply chains. The conflict has disrupted shipments of grains, vegetable oils, fertilizer and energy products.

The impact on the agriculture markets falls into two main categories: (1) the effect on Ukrainian crop production, as the region is key in global grain production; and (2) the duration of the disruption in trade flows. Safety and financing concerns in the region are restricting export execution, which is in turn forcing grain and oil demand to find alternative supply. The duration of the war and related volatility makes global markets extremely sensitive to growing-season weather in other global grain producing regions and has led to a large risk premium in futures prices. The continued volatility in the global markets as a result of the war has adversely impacted our costs by driving up prices, raising inflation and increasing pressure on the supply of feed ingredients and energy products throughout the global markets. In the first quarter of 2023, Ukraine grain export volumes continued to recover, but still remain below pre-war volumes. Their supply constraints did not have a material impact on our costs during the first quarter.

In addition, the U.S. government and other governments in jurisdictions in which we operate have imposed sanctions and export controls against Russia, Belarus and interests therein and threatened additional sanctions and controls. The impact of these measures, now and in the future, could adversely affect our business, supply chain or customers.

Raw Materials and Pricing

Our U.S. and Mexico segments use corn and soybean meal as the main ingredients for feed production, while our U.K. and Europe segment uses wheat, soybean meal and barley as the main ingredients for feed production.

U.S. commodity market prices for chicken products during the first quarter of 2023 evolved seasonally, while remaining below prior year levels and slightly below the 5-year average throughout the period. Per the April 2023, U.S. Department of Agriculture (or “USDA”) report on world agriculture supply and demand estimates (or “WASDE”), estimated industry ready-to-cook production exceeded levels from the prior year by 3.4%. The increase is due to growing headcounts and increased liveweights, a trend consistent over the last year.

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During the first quarter of 2023, the U.S. chicken market showed mild volume demand growth. Retail volumes remained stable despite relatively higher consumer point-of-sale prices when compared to the prior year. Foodservice distribution volume demand increased while the export channel volume shipments increased through the first three months of the quarter. Cold storage inventories, which ended 2022 at 7% above the 5-year average, declined by 8.3% from prior year-end levels as of the end of March 2023 and are now near the 5-year average. Meanwhile, competing protein production levels have remained flat relative to the prior year as declines in beef production have been offset by growth in pork production through the first three months of 2023.

With U.S. chicken market prices entering the year at levels near the bottom of the most recent 5-year range, production growth and elevated cold storage stocks in the early part of the first quarter of 2023 provided sufficient supply to meet the needs of the mild volume demand growth. This resulted in normal seasonal movements of market prices for chicken products in the first quarter of 2023.

During the first quarter of 2023, the U.K. chicken market continued to see increased costs of ingredients and packaging. Through our current customer models and additional negotiations we have offset the majority of these cost increases. Our labor and feed ingredient costs for the first quarter 2023 were consistent with the fourth quarter of 2022. We continue to focus on managing costs, including labor and yield efficiencies, agricultural performance and increasing operational efficiency through investments in capital projects.

Commodity prices for chicken in Mexico fluctuated during the first quarter of 2023 resulting in a slight increase in the price as of the end of the quarter, but below prior year levels. The cost to produce also increased from same quarter prior year due to significant increases in corn and soy, the two main ingredients used for feed in Mexico.

Prices for the remainder of the year will depend on (1) the evolution of foodservice, retail and export meat demand and (2) factors such as government regulation, the ongoing Russia-Ukraine war, feed production input costs, further spread of avian influenza both domestically and abroad, uncertainty surrounding the general economy and overall protein supply.

U.K. market prices for pork products have continued to recover during the first quarter of 2023, with growth during the quarter continuing the upward trend from 2022, reflecting pig shortages from a 20% reduction of the English sow herd during 2022. This was supported by recovery in the E.U. market, which has seen pig prices grow faster than the U.K. market during the first quarter, with the U.K. market price now being in line with Germany. Due to increased market pricing and stabilization of feed prices in the first quarter, U.K. pig farming is now close to a break even point.

Reportable Segments

We operate in three reportable segments: U.S., U.K. and Europe, and Mexico. We measure segment profit as operating income. Certain 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. For additional information, see “Note 18. Reportable Segments” of our Condensed Consolidated Financial Statements included in this quarterly report.

Results of Operations

Three Months Ended March 26, 2023 Compared to the Three Months Ended March 27, 2022

Net sales. Net sales generated in the three months ended March 26, 2023 decreased $74.8 million, or 1.8%, from net sales generated in the three months ended March 27, 2022. The following table provides net sales information:

Sources of net sales	Three Months Ended March 26, 2023		Change from Three Months Ended March 27, 2022
			Amount		Percent
	(In thousands, except percent data)
U.S.	$	2,432,568	$	(148,640)	(5.8)	%
U.K. and Europe	1,239,264		47,282		4.0	%
Mexico	493,796		26,591		5.7	%
Total net sales	$	4,165,628	$	(74,767)	(1.8)	%

U.S. Reportable Segment. U.S. net sales generated in the three months ended March 26, 2023 decreased $148.6 million, or 5.8%, from U.S. net sales generated in the three months ended March 27, 2022 primarily due to a decrease in net sales per pound of $169.7 million, or 6.6 percentage points. The decrease in net sales per pound was partially offset by

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an increase in sales volume of $21.1 million, or 0.8 percentage points. The decrease in net sales per pound was driven primarily by decreases in market price during the three months ended March 26, 2023.

U.K. and Europe Reportable Segment. U.K. and Europe net sales generated in the three months ended March 26, 2023 increased $47.3 million, or 4.0%, from U.K. and Europe net sales generated in the three months ended March 27, 2022 primarily due to an increase in net sales per pound of $232.2 million, or 19.5 percentage points, partially offset by the impact of foreign currency translation of $132.0 million, or 11.1 percentage points, and a decrease in sales volume of $52.9 million, or 4.4 percentage points. The increase in net sales per pound was driven by price increases necessary to recover increased feed ingredients, labor, utilities and other operating costs.

Mexico Reportable Segment. Mexico net sales generated in the three months ended March 26, 2023 increased $26.6 million, or 5.7%, from Mexico net sales generated in the three months ended March 27, 2022 primarily due to an increase from the impact of foreign currency remeasurement of $42.9 million, or 9.2 percentage points, and an increase in net sales per pound of $12.7 million, or 2.7 percentage points. These increases were partially offset by a decrease in sales volume of $29.0 million, or 6.2 percentage points. The increase in net sales per pound was driven primarily by higher chicken prices that resulted from solid market fundamentals.

Gross profit and cost of sales. Gross profit decreased by $368.9 million, or 68.1%, from $542.0 million generated in the three months ended March 27, 2022 to $173.0 million generated in the three months ended March 26, 2023. The following tables provide information regarding gross profit and cost of sales information:

Components of gross profit	Three Months Ended March 26, 2023		Change from Three Months Ended March 27, 2022				Percent of Net Sales
							Three Months Ended
			Amount		Percent		March 26, 2023		March 27, 2022
	(In thousands, except percent data)
Net sales	$	4,165,628	$	(74,767)	(1.8)	%	100.0	%	100.0	%
Cost of sales	3,992,581		294,166		8.0	%	95.8	%	87.2	%
Gross profit	$	173,047	$	(368,933)	(68.1)	%	4.2	%	12.8	%

Sources of gross profit	Three Months Ended March 26, 2023		Change from Three Months Ended March 27, 2022
			Amount		Percent
	(In thousands, except percent data)
U.S.	$	38,329	$	(383,675)	(90.9)	%
U.K. and Europe	84,193		45,114		115.4	%
Mexico	50,512		(30,371)		(37.5)	%
Elimination	13		(1)		(7.1)	%
Total gross profit	$	173,047	$	(368,933)	(68.1)	%

Sources of cost of sales	Three Months Ended March 26, 2023		Change from Three Months Ended March 27, 2022
			Amount		Percent
	(In thousands, except percent data)
U.S.	$	2,394,239	$	235,035	10.9	%
U.K. and Europe	1,155,071		2,168		0.2	%
Mexico	443,284		56,962		14.7	%
Elimination	(13)		1		7.1	%
Total cost of sales	$	3,992,581	$	294,166	8.0	%

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U.S. Reportable Segment. Cost of sales incurred by our U.S. operations during the three months ended March 26, 2023 increased $235.0 million, or 10.9%, from cost of sales incurred by our U.S. segment during the three months ended March 27, 2022. The increase in cost of sales was primarily driven by an increase in cost per pound sold of $213.6 million, or 9.9 percentage points, and an increase in sales volume of $17.6 million, or 0.8 percentage points. The increase in cost per pound sold included increases in live operations costs, payroll costs, and a shift from net derivative gain in the prior year to net derivative loss in the current year on commodity derivatives. These increases were partially offset by a decrease in cost of sales related to income of $25.3 million recognized for proceeds from business interruption insurance recoveries related to the Mayfield tornado losses. The increase in live operations costs includes an increase of $107.6 million in feed costs and a $27.6 million increase in chick costs from rate increases. The increase in feed costs was driven primarily from higher corn and soy prices, our main ingredients in feed.

U.K. and Europe Reportable Segment. Cost of sales incurred by our U.K. and Europe operations during the three months ended March 26, 2023 increased $2.2 million, or 0.2%, from cost of sales incurred by our U.K. and Europe segment during the three months ended March 27, 2022. The increase in cost of sales was primarily driven by an increase in cost per pound sold of $175.5 million, or 15.1 percentage points, partially offset by the impact of foreign currency translation and decreased sales volume of $123.0 million, or 10.7 percentage points, and $50.3 million, or 4.4 percentage points, respectively. The increase in cost per pound sold was driven by inflation in feed ingredients, labor, utilities and other operating costs.

Mexico Reportable Segment. Cost of sales incurred by our Mexico operations during the three months ended March 26, 2023 increased $57.0 million, or 14.7%, from cost of sales incurred by our Mexico segment during the three months ended March 27, 2022. This increase was driven by increased cost per pound sold of $42.4 million, or 11.0 percentage points, and the impact of foreign currency remeasurement of $38.6 million, or 9.9 percentage points. The increase in cost per pound sold was driven by higher input costs, such as feed ingredients and hatchery egg costs. These increases were partially offset by a decrease in sales volume of $24.0 million, or 6.2 percentage points.

Operating income and SG&A expense. Operating income decreased by $370.7 million, or 92.2%, from income of $402.0 million generated in the three months ended March 27, 2022 to income of $31.3 million generated in the three months ended March 26, 2023. The following tables provide information regarding operating income and selling, general and administrative (“SG&A”) expense:

Components of operating income	Three Months Ended March 26, 2023		Change from Three Months Ended March 27, 2022				Percent of Net Sales
							Three Months Ended
			Amount		Percent		March 26, 2023		March 27, 2022
	(In thousands, except percent data)
Gross profit	$	173,047	$	(368,933)	(68.1)	%	4.2	%	12.8	%
SG&A expense	133,678		(6,289)		(4.5)	%	3.2	%	3.3	%
Restructuring activities	8,026		8,026		NA		0.2	%	NA
Operating income	$	31,343	$	(370,670)	(92.2)	%	0.8	%	9.5	%

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Sources of operating income (loss)	Three Months Ended March 26, 2023		Change from Three Months Ended March 27, 2022
			Amount		Percent
	(In thousands, except percent data)
U.S.	$	(28,106)	$	(383,181)	(107.9)	%
U.K. and Europe	25,261		46,901		(216.7)	%
Mexico	34,175		(34,389)		(50.2)	%
Eliminations	13		(1)		(7.1)	%
Total operating income	$	31,343	$	(370,670)	(92.2)	%
Sources of SG&A expense	Three Months Ended March 26, 2023		Change from Three Months Ended March 27, 2022
			Amount		Percent
	(In thousands, except percent data)
U.S.	$	66,435	$	(494)	(0.7)	%
U.K. and Europe	50,906		(9,813)		(16.2)	%
Mexico	16,337		4,018		32.6	%
Total SG&A expense	$	133,678	$	(6,289)	(4.5)	%

U.S. Reportable Segment. SG&A expense incurred by our U.S. reportable segment during the three months ended March 26, 2023 decreased $0.5 million, or 0.7%, from SG&A expense incurred by our U.S. reportable segment during the three months ended March 27, 2022. The decrease in SG&A expense resulted primarily from the decrease in recognition of legal defense costs, partially offset by recognition of legal settlement expense in current year. Other factors affecting U.S. SG&A expense were individually immaterial.

U.K. and Europe Reportable Segment. SG&A expense incurred by our U.K. and Europe reportable segment during the three months ended March 26, 2023 decreased $9.8 million, or 16.2%, from SG&A expense incurred by our U.K. and Europe segment during the three months ended March 27, 2022. The decrease in SG&A expense was driven by the impact of foreign currency translation and the expiration of the transition services agreement between the Company and Kerry Group plc from the acquisition of the PFM business. Other factors affecting U.K. and Europe SG&A expense were individually immaterial.

Mexico Reportable Segment. SG&A expense incurred by our Mexico reportable segment during the three months ended March 26, 2023 increased approximately $4.0 million, or 32.6%, from SG&A expense incurred by our Mexico segment during the three months ended March 27, 2022. The primary driver of the increase in SG&A expense was marketing costs. Other factors affecting Mexico SG&A expense were individually immaterial.

Net interest expense. Net interest expense increased to $39.1 million recognized in the three months ended March 26, 2023 from $35.0 million recognized in the three months ended March 27, 2022. The increase in net interest expense resulted primarily from interest expense on outstanding borrowings due to increased borrowing rates. Average borrowings decreased by $0.2 billion from $3.4 billion during the three months ended March 27, 2022 to $3.2 billion during the three months ended March 26, 2023 and the weighted average rate of interest increased by 0.7 percentage points. As a percent of net sales, interest expense in the three months ended March 26, 2023 and March 27, 2022 was 0.9% and 0.8%, respectively.

Income taxes. Income tax decreased to a benefit of $8.8 million, a 275.5% effective tax rate, for the three months ended March 26, 2023 compared to an income tax expense of $75.2 million, a 21.1% effective tax rate, for the three months ended March 27, 2022. The decrease in income tax expense resulted primarily from the decrease in profit before taxes.

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Liquidity and Capital Resources

    The following table presents our available sources of liquidity as of March 26, 2023: 

Sources of Liquidity	Facility Amount		Amount Outstanding		Amount Available
	(In millions)
Cash and cash equivalents	$	—	$	—	$	150.7
Borrowing arrangements:
U.S. Credit Facility Revolving Note Payable(a)	800.0		35.0		730.0
U.S. Credit Facility Term Loans(b)	700.0		473.8		—
Mexico Credit Facility(c)	81.3		—		81.3
U.K. and Europe Revolver Facility(d)	183.5		—		183.5

(a)Availability under the U.S. Credit Facility is also reduced by our outstanding standby letters of credit. Standby letters of credit outstanding at March 26, 2023 totaled $35.0 million.

(b)For more information on the U.S. Credit Facility Term Loans, refer to “Note 12. Debt.”

(c)The U.S. dollar-equivalent of the facility amount under the Mexico Credit Facility is $81.3 million (Mex$1.5 billion).

(d)The U.S. dollar-equivalent of the facility amount under the U.K. and Europe Revolver Facility is $183.5 million (£150.0 million).

We expect cash flows from operations, combined with availability under our credit facilities, to provide sufficient liquidity to fund current obligations, projected working capital requirements, maturities of long-term debt and capital spending for at least the next twelve months.

Historical Flow of Funds

Cash Flows from Operating Activities	Three Months Ended
	March 26, 2023		March 27, 2022
	(In millions)
Net income	$	5.6	$	280.6
Net noncash expenses	65.4		85.8
Changes in operating assets and liabilities:
Trade accounts and other receivables	(132.8)		(66.7)
Inventories	(30.3)		(146.0)
Prepaid expenses and other current assets	(20.3)		(5.9)
Accounts payable, accrued expenses and other current liabilities	(43.6)		(2.5)
Income taxes	3.2		84.8
Long-term pension and other postretirement obligations	1.0		(1.1)
Other operating assets and liabilities	(9.9)		(2.0)
Cash provided by (used in) operating activities	$	(161.7)	$	227.0

Net Noncash Expenses

Items necessary to reconcile from net income to cash flow provided by or used in operating activities included net noncash expenses of $65.4 million for the three months ended March 26, 2023. Net noncash expense items included depreciation and amortization of $98.3 million, loan cost amortization of $1.3 million, stock-based compensation of $1.2 million and accretion of discounts related to Senior Notes of $0.4 million. These expense items were partially offset by a deferred income tax benefit of $26.3 million and gains on property disposals of $9.3 million.

Items necessary to reconcile from net income to cash flow provided by operating activities included net noncash expenses of $85.8 million for the three months ended March 27, 2022. Net noncash expense items included depreciation and amortization of $102.1 million, stock-based compensation of $2.0 million, losses on property disposals of $1.9 million, loan cost amortization of $1.3 million and accretion of discounts related to Senior Notes of $0.4 million. These expense items were partially offset by deferred income tax benefit of $21.9 million.

Changes in Operating Assets and Liabilities

The change in trade accounts and other receivables represented a $132.8 million use of cash related to operating activities for the three months ended March 26, 2023. This change primarily resulted from an increase in trade accounts receivable and receivables from insurance recoveries recognized in March 2023. The change in trade accounts and other

37

receivables, including accounts receivable from related parties, represented a $66.7 million use of cash related to operating activities for the three months ended March 27, 2022. This change primarily resulted from an increase in trade accounts receivable due to increased sales.

The change in inventories represented a $30.3 million use of cash related to operating activities for the three months ended March 26, 2023. This change resulted primarily from increased raw material costs, such as feed ingredients, and increased finished goods inventories. The change in inventories represented a $146.0 million use of cash related to operating activities for the three months ended March 27, 2022. This change resulted primarily from increased raw material costs, such as feed ingredients.

The change in prepaid expenses and other current assets represented a $20.3 million use of cash related to operating activities for the three months ended March 26, 2023. This change resulted primarily from a net increase in VAT refund receivables. The change in prepaid expenses and other current assets represented a $5.9 million use of cash related to operating activities for the three months ended March 27, 2022. This change resulted primarily from a net increase in commodity derivative assets.

The change in accounts payable, revenue contract liabilities, accrued expenses and other current liabilities represented a $43.6 million use of cash related to operating activities for the three months ended March 26, 2023. This change resulted primarily from the payment of bonuses accrued in 2022. The change in accounts payable, revenue contract liabilities, accrued expenses and other current liabilities, including accounts payable to related parties, represented a $2.5 million use of cash related to operating activities for the three months ended March 27, 2022. This change resulted primarily from the timing of payments.

The change in income taxes, which includes income taxes receivable, income taxes payable, deferred tax assets, deferred tax liabilities, reserves for uncertain tax positions, and the tax components within accumulated other comprehensive loss, represented a $3.2 million and $84.8 million source of cash related to improved operating results for the three months ended March 26, 2023 and March 27, 2022, respectively.

Cash Flows from Investing Activities	Three Months Ended
	March 26, 2023		March 27, 2022
	(In millions)
Acquisitions of property, plant and equipment	$	(131.7)	$	(81.6)
Proceeds from property disposals	12.6		0.8
Proceeds from property insurance recoveries	1.6		—
Purchase of acquired businesses, net of cash acquired	—		(4.8)
Cash used in investing activities	$	(117.5)	$	(85.6)

Capital expenditures were primarily incurred to improve operational efficiencies and reduce costs for the three months ended March 26, 2023 and March 27, 2022. Capital expenditures in 2023 also included investments in the Athens, GA plant expansion, the South Georgia protein conversion plant and other automation projects. Proceeds from property disposals were primarily for the sale of a farm in Mexico. Proceeds from property insurance recoveries reflects cash received on insurance claims related to the losses incurred from the Mayfield, Kentucky tornado that occurred in December 2021.

Cash Flows from Financing Activities	Three Months Ended
	March 26, 2023		March 27, 2022
	(In millions)
Proceeds from revolving line of credit and long-term borrowings	$	35.0	$	228.5
Payments on revolving line of credit, long-term borrowings and finance lease obligations	(6.5)		(32.1)
Distribution from Tax Sharing Agreement with JBS USA Holdings	(1.6)		(2.0)
Purchase of common stock under share repurchase program	—		(27.0)
Payments of capitalized loan costs	—		(1.1)
Cash provided by financing activities	$	26.9	$	166.3

Proceeds from revolving line of credit and long-term borrowings include the borrowing on the revolver under the U.S. Credit Facility of $35.0 million. Payments on revolving line of credit, long-term borrowings and finance lease obligations include a principal payment of $6.3 million on the U.S. term loan and payments of $0.2 million on finance leases. The Distribution from Tax Sharing Agreement with JBS USA Holdings is payment of net tax incurred during the tax year 2022 under the tax sharing agreement.

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Debt

Our long-term debt and other borrowing arrangements consist of senior notes, revolving credit facilities and other term loan agreements. For a description, refer to “Note 12. Debt.”

Collateral

Substantially all of our domestic inventories and domestic fixed assets are pledged as collateral to secure the obligations under the U.S. Credit Facility.

Obligor Group Summarized Financial Information

All of the senior unsecured registered notes (collectively, the “Pilgrim’s Senior Notes”) issued by Pilgrim’s Pride Corporation are fully and unconditionally guaranteed by Pilgrim’s Pride Corporation of West Virginia Inc., JFC LLC, Gold’n Plump Farms LLC and Gold’n Plump Poultry LLC (the “Subsidiary Guarantors”). See “Note 12. Debt” of our Condensed Consolidated Financial Statements included in this quarterly report for additional descriptions of these guarantees.

The following tables present summarized financial information for Pilgrim’s Pride Corporation parent company only (as issuer of the Pilgrim’s Senior Notes) and the Subsidiary Guarantors (together, the “Obligor Group”), on a combined basis after the elimination of all intercompany balances and transactions between Pilgrim’ Pride Corporation parent company only and the Subsidiary Guarantors and investments in any non-obligated subsidiary.

Summarized Balance Sheets	March 26, 2023		December 25, 2022
	(In millions)
Current assets	$	1,915	$	1,983
Current assets due from non-obligated subsidiaries(a)	175		170
Current assets due from related parties(b)	2		2
Noncurrent assets	1,986		1,945
Current liabilities	1,333		1,402
Current liabilities due to non-obligated subsidiaries(a)	340		253
Current liabilities due to related parties(b)	10		8
Noncurrent liabilities	3,463		3,459

(a)    Represents receivables and short-term lending due from and payables and short-term lending due to non-obligated subsidiaries.

(b)    Represents receivables due from and payables due to JBS affiliates.

Summarized Income Statements	Three Months Ended March 26, 2023
	(In millions)
Net sales	$	2,509
Gross profit(a)	41
Operating income	(13)
Net income	(49)
Net income attributable to Obligor Group	(49)

(a)     For the three months ended March 26, 2023, the Obligor Group recognized $37.9 million of net sales to the non-obligated subsidiaries and no purchases from the non-obligated subsidiaries.

Recent Accounting Pronouncements

See “Note 1. Business and Summary of Significant Accounting Policies” of our Condensed Consolidated Financial Statements included in this quarterly report for additional information relating to these recent accounting pronouncements.

Critical Accounting Policies and Estimates

For a description of our critical accounting policies and estimates, refer to “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations-Critical Accounting Policies and Estimates” in our annual report on Form 10-K for the fiscal year ended December 25, 2022, filed with the Securities and Exchange Commission (the “SEC”) on February 9, 2023 (the “2022 Annual Report”).

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Reconciliation of Net Income to EBITDA and Adjusted EBITDA

“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: (1) foreign currency transaction losses, (2) costs related to litigation settlements, (3) restructuring activities losses, (4) transaction costs related to acquisitions, (5) property insurance recoveries for Mayfield, Kentucky tornado property damage losses, and (6) net income attributable to noncontrolling interests. EBITDA is presented because it is used by us 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 U.S. 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 applicable to continuing operations. We also believe that Adjusted EBITDA, in combination with our financial results calculated in accordance with U.S. GAAP, provides investors with additional perspective regarding the impact of certain significant items on EBITDA and facilitates a more direct comparison of our performance with our competitors. EBITDA and Adjusted EBITDA are not measurements of financial performance under U.S. GAAP. EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as substitutes for an analysis of our results as reported under U.S. GAAP. Some of the limitations of these measures are:

•They do not reflect our cash expenditures, future requirements for capital expenditures or contractual commitments;

•They do not reflect changes in, or cash requirements for, our working capital needs;

•They do not reflect the significant interest expense or the cash requirements necessary to service interest or principal payments on our debt;

•Although depreciation and amortization are noncash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements;

•They are not adjusted for all noncash income or expense items that are reflected in our statements of cash flows;

•EBITDA does not reflect the impact of earnings or charges attributable to noncontrolling interests;

•They do not reflect the impact of earnings or charges resulting from matters we consider to not be indicative of our ongoing operations; and

•They do not reflect limitations on or costs related to transferring earnings from our subsidiaries to us.

In addition, other companies in our industry may calculate these measures differently than we do, limiting their usefulness as a comparative measure. Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as an alternative to net income as indicators of our operating performance or any other measures of performance derived in accordance with U.S. GAAP. You should compensate for these limitations by relying primarily on our U.S. GAAP results and using EBITDA and Adjusted EBITDA only on a supplemental basis.

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	Three Months Ended
	March 26, 2023
	(In thousands)
Net income	$	5,631
Add:
Interest expense, net	39,062
Income tax benefit	(8,840)
Depreciation and amortization	98,257
EBITDA	134,110
Add:
Foreign currency transaction losses	18,143
Litigation settlements	11,200
Restructuring activities losses	8,026
Minus:
Property insurance recoveries for Mayfield tornado losses	19,086
Net income attributable to noncontrolling interest	444
Adjusted EBITDA	$	151,949

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ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market Risk-Sensitive Instruments and Positions

The risk inherent in our market risk-sensitive instruments and positions is primarily the potential loss arising from adverse changes in commodity prices, foreign currency exchange rates, interest rates and the credit quality of available-for-sale securities as discussed below. The sensitivity analyses presented do not consider the effects that such adverse changes may have on overall economic activity, nor do they consider additional actions our management may take to mitigate our exposure to such changes. Actual results may differ from those described below.

Commodity Prices

We purchase certain commodities, primarily corn, soybean meal, soybean oil, and wheat, for use as ingredients in the feed we either sell commercially or consume in our live operations. As a result, our earnings are affected by changes in the price and availability of such feed ingredients. We have from time to time attempted to minimize our exposure to the changing price and availability of such feed ingredients using various techniques, including, but not limited to, (1) executing purchase agreements with suppliers for future physical delivery of feed ingredients at established prices and (2) purchasing or selling derivative financial instruments such as futures and options.

For this sensitivity analysis, market risk is estimated as a hypothetical 10% increase in the weighted-average cost of our primary feed ingredients as of the periods presented. The impact of this fluctuation, if realized, could be mitigated by related commodity hedging activity. However, fluctuations greater than 10% could occur.

	Three Months Ended March 26, 2023
	Amount		Impact of 10% Increase in Feed Ingredient Prices
	(In thousands)
Feed ingredient purchases(a)	$	1,131,382	$	113,138
Feed ingredient inventory(b)	260,058		26,006

(a)Based on our feed consumption, a 10% increase in the price of our feed ingredient purchases would have increased cost of sales for the three months ended March 26, 2023.

(b)A 10% increase in ending feed ingredient prices would have increased inventories as of March 26, 2023.

	March 26, 2023
	Amount		Impact of 10% Increase in Commodity Prices
	(In thousands)
Net commodity derivative assets(a)	$	47,812	$	4,781

(a)We purchase commodity derivative financial instruments, specifically exchange-traded futures and options, in an attempt to mitigate price risk related to our anticipated consumption of commodity inputs for the next 12 months. A 10% increase in corn, soybean meal, soybean oil and wheat prices would have resulted in an increase in the fair value of our net commodity derivative asset position, including margin cash, as of March 26, 2023.

Interest Rates

Fixed-rate debt. Market risk for fixed-rate debt is estimated as the potential decrease in fair value resulting from a hypothetical increase in interest rates of 10%. Using a discounted cash flow analysis, a hypothetical 10% increase in interest rates would have decreased the fair value of our fixed-rate debt by $71.3 million as of March 26, 2023.

Variable-rate debt. Our variable-rate debt instruments represent approximately 15.9% of our total debt as of March 26, 2023. Holding other variables constant, including levels of indebtedness, an increase in interest rates of 100 basis points would have increased our interest expense by $4.9 million for the three months ended March 26, 2023.

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Foreign Currency

Mexico Subsidiaries

Our earnings are also affected by foreign exchange rate fluctuations related to the Mexican peso net monetary position of our Mexico subsidiaries. We manage this exposure primarily by attempting to minimize our Mexican peso net monetary position. We are also exposed to the effect of potential currency exchange rate fluctuations to the extent that amounts are repatriated from Mexico to the U.S. We currently anticipate that the future cash flows of our Mexico subsidiaries will be reinvested in our Mexico operations.

The Mexican peso exchange rate can directly and indirectly impact our financial condition and results of operations. For this sensitivity analysis, market risk is estimated as a hypothetical 10% change in the current exchange rate used to convert Mexican pesos to U.S. dollars as of March 26, 2023. However, fluctuations greater than 10% could occur. No assurance can be given as to how future movements in the Mexican peso could affect our future financial condition or results of operations.

	Three Months Ended March 26, 2023
	Impact of 10% Deterioration in Exchange Rate		Impact of 10% Appreciation in Exchange Rate
	(In thousands, except for exchange rate data)
Foreign currency remeasurement gain (loss)	$	(10,277)	$	12,561
Exchange rate of Mexican peso to the U.S. dollar:
As reported	18.44		18.44
Hypothetical 10% change	20.29		16.60

U.K. and Europe Foreign Investments

We are exposed to foreign exchange-related variability of investments and earnings from our U.K. and Europe subsidiaries. Foreign currency market risk is the possibility that our financial results or financial position could be better or worse than planned because of changes in foreign currency exchange rates. For this sensitivity analysis, market risk is estimated as a hypothetical 10% change in exchange rates used to convert U.S. dollars to British pound and to euro, and the effect of this change on our U.K. and Europe foreign investments.

Net Assets. As of March 26, 2023, our U.K. and Europe subsidiaries that are denominated in British pounds had net assets of $4.1 billion. A 10% weakening in British pound against the U.S. dollar exchange rate would cause a decrease in the net assets of our U.K. and Europe subsidiaries by $368.8 million. A 10% strengthening in the British pound against the U.S dollar exchange rate would cause an increase in the net assets of our U.K. and Europe subsidiaries of $450.7 million.

Cash flow hedging transactions. We periodically enter into foreign currency forward contracts, which are designated and qualify as cash flow hedges, to hedge foreign currency risk on a portion of sales generated and purchases made by our U.K. and Europe subsidiary. A 10% weakening or strengthening of the U.S. dollar against the British pound and U.S. dollar against the euro would result in immaterial changes in the fair values of these derivative instruments. No assurance can be given as to how future movements in currency rates could affect our future financial condition or results of operations.

Quality of Investments

Certain retirement plans that we sponsor invest in a variety of financial instruments. We have analyzed our portfolios of investments and, to the best of our knowledge, none of our investments, including money market funds units, commercial paper and municipal securities, have been downgraded, and neither we nor any fund in which we participate hold significant amounts of structured investment vehicles, auction rate securities, collateralized debt obligations, credit derivatives, hedge funds investments, fund of funds investments or perpetual preferred securities. Certain postretirement funds in which we participate hold significant amounts of mortgage-backed securities. However, none of the mortgages collateralizing these securities are considered subprime.

Impact of Inflation

The U.S., Mexico and most of Europe are currently experiencing pronounced inflation. None of the locations in which we operate are experiencing hyperinflation. We have responded to these inflationary challenges by continuing negotiations with customers to recoup the extraordinary costs we have experienced. We also continue to focus on operational initiatives that aim to deliver labor efficiencies, better agricultural performance and improved yields.

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Forward Looking Statements

Certain written and oral statements made by our Company and subsidiaries of our Company may constitute “forward-looking statements” as defined under the Private Securities Litigation Reform Act of 1995. This includes statements made herein, in our other filings with the SEC, in press releases, and in certain other oral and written presentations. Statements of our intentions, beliefs, expectations or predictions for the future, denoted by the words “anticipate,” “believe,” “estimate,” “expect,” “project,” “plan,” “imply,” “intend,” “should,” “foresee” and similar expressions, are forward-looking statements that reflect our current views about future events and are subject to risks, uncertainties and assumptions. Such risks, uncertainties and assumptions include the following:

•The impact of the COVID-19 pandemic, efforts to contain the pandemic and resulting economic downturn on our operations and financial condition;

•Matters affecting the chicken and pork industries generally, including fluctuations in the commodity prices of feed ingredients, pigs and chicken;

•Our ability to obtain and maintain commercially reasonable terms with vendors and service providers;

•Our ability to maintain contracts that are critical to our operations;

•Our ability to retain management and other key individuals;

•Outbreaks of avian influenza or other diseases, either in our own flock or elsewhere, affecting our ability to conduct our operations and/or demand for our poultry products;

•Contamination of our 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;

•Changes in laws or regulations affecting our operations or the application thereof;

•Our ability to ensure that our directors, officers, employees, agents, third-party intermediaries and the companies to which we outsource certain of our business operations will comply with anti-corruption laws or other laws governing the conduct of business with government entities;

•New immigration legislation or increased enforcement efforts in connection with existing immigration legislation that cause our costs of business to increase, cause us to change the way in which we do business or otherwise disrupt our operations;

•Competitive factors, inflation and pricing pressures, or the loss of one or more of our largest customers;

•Inability to consummate, or effectively integrate, any acquisition or to realize the associated anticipated cost savings and operating synergies;

•Currency exchange rate fluctuations, trade barriers, exchange controls, expropriation and other risks associated with foreign segments, including risks associated with Brexit;

•Restrictions imposed by, and as a result of, Pilgrim’s leverage;

•Disruptions in international markets and distribution channels for various reasons, including, but not limited to, the ongoing Russia-Ukraine war;

•The impact of cyber-attacks, natural disasters, power losses, unauthorized access, telecommunication failures, and other problems on our information systems;

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•Our ability to maintain favorable labor relations with our employees and our compliance with labor laws;

•Extreme weather or natural disasters;

•The impact of uncertainties in litigation; and

•Other risks described herein and under “Risk Factors” in our 2022 Annual Report.

Actual results could differ materially from those projected in these forward-looking statements as a result of these factors, among others, many of which are beyond our control.

The Company’s forward-looking statements speak only as of the date of this report or as of the date they are made. In making these statements, we are not undertaking, and specifically decline to undertake, any obligation to address or update each or any factor in future filings or communications regarding our business or results, and we are not undertaking to address how any of these factors may have caused changes to information contained in previous filings or communications. Although we have attempted to list comprehensively these important cautionary risk factors, we must caution investors and others that other factors may in the future prove to be important and affect our business or results of operations.

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ITEM 4.    CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Under Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 (the “Exchange Act”), “disclosure controls and procedures” means controls and other procedures that are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by our Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

As of March 26, 2023, the Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures. Based on that evaluation and subject to the foregoing, the Company’s Chief Executive Officer and Chief Financial Officer concluded that, as of March 26, 2023, the Company’s disclosure controls and procedures were effective to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and that information we are required to disclose in our reports filed with the SEC is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

The Company’s management, including the Chief Executive Officer and Chief Financial Officer, identified no change in the Company’s internal control over financial reporting that occurred during the three months ended March 26, 2023 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1.    LEGAL PROCEEDINGS

The information required with respect to this item can be found in Part I, Item 1, Notes to Consolidated Financial Statements, “Note 19. Commitments and Contingencies” in this quarterly report and is incorporated by reference into this Item 1.

ITEM 1A.    RISK FACTORS

For a discussion of our potential risks and uncertainties, please see “ Part I—Item 1A—Risk Factors” and “Part II—Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2022 Annual Report and “Part I—Item 2—Management’s Discussion and Analysis of Financial Condition and Results of Operations” herein, in each case as updated by the Company’s periodic filings with the SEC and the risk factors below.

Labor shortages and increased turnover or increases in employee and employee-related costs could have adverse effects on our profitability.

We and our third-party vendors have experienced increased labor shortages at some of our production facilities and other locations. Although we have historically experienced some level of ordinary course turnover of employees, the impact of the COVID-19 pandemic and resulting actions have exacerbated labor shortages and increased turnover. Several factors have had and may continue to have adverse effects on the labor force available to us and our third-party vendors, including government regulations, which include laws and regulations related to workers’ health and safety, wage and hour practices and work authorization. Labor shortages and increased turnover rates within the Company and our third-party vendors have led to and could in the future lead to increased costs, such as increased overtime to meet demand and increased wage rates to attract and retain employees and could negatively affect our ability to efficiently operate our production facilities or otherwise operate at full capacity and could result in downtime of our production facilities. An overall or prolonged labor shortage, lack of skilled labor, increased turnover or labor inflation for any of the foregoing reasons could have a material adverse impact on our operations, results of operations, reputation, liquidity or cash flows.

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ITEM 6.    EXHIBITS 

3.1	Amended and Restated Certificate of Incorporation of the Company. (incorporated by reference from Exhibit 3.1 of the Company's Current Form 8-K (No. 001-09273) filed on May 3, 2021).
3.2	Amended and Restated Corporate Bylaws of the Company. (incorporated by reference from Exhibit 3.2 of the Company's Current Form 8-K (No. 001-09273) filed on May 3, 2021).
4.1	Indenture dated as of April 19, 2023, among the Company, the Guarantors and Regions Bank, as Trustee (incorporated by reference from Exhibit 4.1 of the Company's Current Report on Form 8-K (No. 001-02973) filed on April 19, 2023).
4.2	First Supplemental Indenture dated as of April 19, 2023, among the Company, the Guarantors and the Trustee (incorporated by reference from Exhibit 4.2 of the Company's Current Report on Form 8-K (No. 001-02973) filed on April 19, 2023).
31.1	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
31.2	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
32.1	Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**
32.2	Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**
101.INS	Inline XBRL Instance Document
101.SCH	Inline XBRL Taxonomy Extension Schema
101.CAL	Inline XBRL Taxonomy Extension Calculation
101.DEF	Inline XBRL Taxonomy Extension Definition
101.LAB	Inline XBRL Taxonomy Extension Label
101.PRE	Inline XBRL Taxonomy Extension Presentation
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

*	Filed herewith.
**	Furnished herewith.

48

SIGNATURES

    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 thereunto duly authorized.

	PILGRIM’S PRIDE CORPORATION
Date: April 26, 2023	/s/ Matthew Galvanoni
	Matthew Galvanoni
	Chief Financial Officer and Chief Accounting Officer
	(Principal Financial Officer, Principal Accounting Officer and Authorized Signatory)

49

EX-31.1

EXHIBIT 31.1

CERTIFICATION BY PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Fabio Sandri, certify that:

1.I have reviewed this quarterly report on Form 10-Q for the fiscal quarter ended March 26, 2023, of Pilgrim's Pride Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: April 26, 2023	/s/ Fabio Sandri
	Fabio Sandri
	Principal Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION BY PRINCIPAL FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Matthew Galvanoni, certify that:

1.I have reviewed this quarterly report on Form 10-Q for the fiscal quarter ended March 26, 2023, of Pilgrim's Pride Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: April 26, 2023	/s/ Matthew Galvanoni
	Matthew Galvanoni
	Principal Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. § 1350 ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), the undersigned officer of Pilgrim's Pride Corporation (the “Company”), does hereby certify, to such officer's knowledge, that:

The quarterly report on Form 10-Q for the quarter ended March 26, 2023 (the “Form 10-Q”) of the Company fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, and information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: April 26, 2023	/s/ Fabio Sandri
	Fabio Sandri
	Principal Executive Officer

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. § 1350 ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), the undersigned officer of Pilgrim's Pride Corporation (the “Company”), does hereby certify, to such officer's knowledge, that:

The quarterly report on Form 10-Q for the quarter ended March 26, 2023 (the “Form 10-Q”) of the Company fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, and information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: April 26, 2023	/s/ Matthew Galvanoni
	Matthew Galvanoni
	Principal Financial Officer

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Cover - shares	3 Months Ended
	Mar. 26, 2023	Apr. 26, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 26, 2023
Document Transition Report	false
Entity File Number	1-9273
Entity Registrant Name	PILGRIM’S PRIDE CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	75-1285071
Entity Address, Address Line One	1770 Promontory Circle
Entity Address, City or Town	Greeley
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80634-9038
City Area Code	970
Local Phone Number	506-8000
Title of 12(b) Security	Common Stock, Par Value $0.01
Trading Symbol	PPC
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		236,733,263
Amendment Flag	false
Entity Central Index Key	0000802481
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2023

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 26, 2023	Dec. 25, 2022
Statement of Financial Position [Abstract]
Cash and cash equivalents	$ 150,687	$ 400,988
Restricted cash and restricted cash equivalents	33,879	33,771
Trade accounts and other receivables, less allowance for credit losses	1,237,366	1,097,212
Accounts receivable from related parties	2,125	2,512
Inventories	2,022,110	1,990,184
Income taxes receivable	143,974	155,859
Prepaid expenses and other current assets	232,453	211,092
Total current assets	3,822,594	3,891,618
Deferred tax assets	7,955	1,969
Other long-lived assets	16,978	41,574
Operating lease assets, net	290,175	305,798
Intangible assets, net	848,895	846,020
Goodwill	1,243,613	1,227,944
Property, plant and equipment, net	2,997,295	2,940,846
Total assets	9,227,505	9,255,769
Accounts payable	1,517,470	1,587,939
Accounts payable to related parties	20,481	12,155
Revenue contract liabilities	47,766	34,486
Accrued expenses and other current liabilities	862,753	850,899
Income taxes payable	18,951	58,411
Current maturities of long-term debt	26,326	26,279
Total current liabilities	2,493,747	2,570,169
Noncurrent operating lease liabilities, less current maturities	219,350	230,701
Long-term debt, less current maturities	3,196,615	3,166,432
Deferred tax liabilities	347,166	364,184
Other long-term liabilities	64,107	71,007
Total liabilities	6,320,985	6,402,493
Common stock	2,619	2,617
Treasury stock	(544,687)	(544,687)
Additional paid-in capital	1,971,038	1,969,833
Retained earnings	1,754,686	1,749,499
Accumulated other comprehensive loss	(290,042)	(336,448)
Total Pilgrim’s Pride Corporation stockholders’ equity	2,893,614	2,840,814
Noncontrolling interest	12,906	12,462
Total stockholders’ equity	2,906,520	2,853,276
Total liabilities and stockholders’ equity	$ 9,227,505	$ 9,255,769

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Income Statement [Abstract]
Net sales	$ 4,165,628	$ 4,240,395
Cost of sales	3,992,581	3,698,415
Gross profit	173,047	541,980
Selling, general and administrative expense	133,678	139,967
Restructuring activities	8,026	0
Operating income	31,343	402,013
Interest expense, net of capitalized interest	42,662	36,296
Interest income	(3,600)	(1,274)
Foreign currency transaction losses	18,143	11,536
Miscellaneous, net	(22,653)	(324)
Income (loss) before income taxes	(3,209)	355,779
Income tax expense (benefit)	(8,840)	75,219
Net income	5,631	280,560
Less: Net income attributable to noncontrolling interests	444	122
Net income attributable to Pilgrim’s Pride Corporation	$ 5,187	$ 280,438
Weighted average shares of Pilgrim’s Pride Corporation common stock outstanding:
Basic (in shares)	236,585	243,670
Effect of dilutive common stock equivalents (in shares)	579	630
Diluted (in shares)	237,164	244,300
Net income attributable to Pilgrim’s Pride Corporation per share of common stock outstanding:
Basic (in dollars per share)	$ 0.02	$ 1.15
Diluted (in dollars per share)	$ 0.02	$ 1.15

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 5,631	$ 280,560
Foreign currency translation adjustment:
Gains (losses) arising during the period	42,644	(58,202)
Derivative financial instruments designated as cash flow hedges:
Gains arising during the period	18	528
Income tax effect	0	0
Reclassification to net earnings for losses (gains) realized	(64)	157
Income tax effect	0	(42)
Available-for-sale securities:
Gains arising during the period	40	0
Income tax effect	(10)	0
Reclassification to net earnings for gains realized	(18)	0
Income tax effect	5	0
Defined benefit plans:
Gains arising during the period	4,233	8,651
Income tax effect	(581)	(2,172)
Reclassification to net earnings of losses realized	182	232
Income tax effect	(43)	(57)
Total other comprehensive income (loss), net of tax	46,406	(50,905)
Comprehensive income	52,037	229,655
Less: Comprehensive income attributable to noncontrolling interests	444	122
Comprehensive income attributable to Pilgrim’s Pride Corporation	$ 51,593	$ 229,533

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CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Noncontrolling Interest
Common stock, beginning balance (in shares) at Dec. 26, 2021		261,347	17,673
Balance, beginning of period at Dec. 26, 2021	$ 2,588,934	$ 2,614	$ (345,134)	$ 1,964,028	$ 1,003,569	$ (47,997)	$ 11,854
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract]
Net income	280,560				280,438		122
Other comprehensive (loss) income, net of tax	(50,905)					(50,905)
Stock-based compensation plans:
Common stock issued under compensation plans (in shares)		221
Common stock issued under compensation plans	0	$ 2		(2)
Requisite service period recognition	2,040			2,040
Common stock purchased under share repurchase program (in shares)			(1,158)
Common stock purchased under share repurchase program	(27,023)		$ (27,023)
Common stock, ending balance of period (in shares) at Mar. 27, 2022		261,568	18,831
Balance, end of period at Mar. 27, 2022	2,793,606	$ 2,616	$ (372,157)	1,966,066	1,284,007	(98,902)	11,976
Common stock, beginning balance (in shares) at Dec. 25, 2022		261,611
Balance, beginning of period at Dec. 25, 2022	2,853,276	$ 2,617	$ (544,687)	1,969,833	1,749,499	(336,448)	12,462
Treasury stock, beginning of period (in shares) at Dec. 25, 2022			(25,142)
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract]
Net income	5,631				5,187		444
Other comprehensive (loss) income, net of tax	46,406					46,406
Stock-based compensation plans:
Common stock issued under compensation plans (in shares)		264
Common stock issued under compensation plans	0	$ 2		(2)
Requisite service period recognition	1,207			1,207
Common stock, ending balance of period (in shares) at Mar. 26, 2023		261,875
Balance, end of period at Mar. 26, 2023	$ 2,906,520	$ 2,619	$ (544,687)	$ 1,971,038	$ 1,754,686	$ (290,042)	$ 12,906
Treasury stock, end of period (in shares) at Mar. 26, 2023			(25,142)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Cash flows from operating activities:
Net income	$ 5,631	$ 280,560
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	98,257	102,142
Deferred income tax benefit	(26,309)	(21,917)
Loss (gain) on property disposals	(9,333)	1,855
Loan cost amortization	1,333	1,280
Stock-based compensation	1,200	1,963
Accretion of discount related to Senior Notes	429	429
Adjustment to previously recognized asset impairment	(130)	0
Loss (gain) on equity-method investments	(4)	8
Changes in operating assets and liabilities:
Trade accounts and other receivables	(132,791)	(66,669)
Inventories	(30,267)	(146,035)
Prepaid expenses and other current assets	(20,268)	(5,889)
Accounts payable, accrued expenses and other current liabilities	(43,662)	(2,454)
Income taxes	3,149	84,780
Long-term pension and other postretirement obligations	949	(1,101)
Other operating assets and liabilities	(9,888)	(1,956)
Cash provided by (used in) operating activities	(161,704)	226,996
Cash flows from investing activities:
Acquisitions of property, plant and equipment	(131,701)	(81,578)
Proceeds from property disposals	12,631	849
Proceeds from insurance recoveries	1,599	0
Purchase of acquired business, net of cash acquired	0	(4,847)
Cash used in investing activities	(117,471)	(85,576)
Cash flows from financing activities:
Proceeds from revolving line of credit and long-term borrowings	35,000	228,505
Payments on revolving line of credit, long-term borrowings and finance lease obligations	(6,527)	(32,093)
Payment of equity distribution under Tax Sharing Agreement between JBS USA Holdings and Pilgrim’s Pride Corporation	(1,592)	(1,961)
Purchase of common stock under share repurchase program	0	(27,023)
Payments of capitalized loan costs	0	(1,098)
Cash provided by financing activities	26,881	166,330
Effect of exchange rate changes on cash and cash equivalents	2,101	(2,073)
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents	(250,193)	305,677
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period	434,759	450,121
Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period	$ 184,566	$ 755,798

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BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 26, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Business

Pilgrim’s Pride Corporation (referred to herein as “Pilgrim’s,” “PPC,” “the Company,” “we,” “us,” “our,” or similar terms) is one of the largest chicken producers in the world, with operations in the United States (“U.S.”), the United Kingdom (“U.K.”), Mexico, France, Puerto Rico, the Netherlands and the Republic of Ireland. Pilgrim’s products are sold to foodservice, retail and frozen entrée customers. The Company’s primary distribution is through retailers, foodservice distributors and restaurants throughout the countries listed above. Additionally, the Company exports chicken and pork products to approximately 109 countries. Our fresh products consist of refrigerated (nonfrozen) whole or cut-up chicken, selected chicken parts that are either marinated or non-marinated, primary pork cuts, added value pork and pork ribs. The Company’s prepared products include fully cooked, ready-to-cook and individually frozen chicken parts, strips, nuggets and patties, processed sausages, bacon, smoked meat, gammon joints, pre-packed meats, sandwich and deli counter meats and meat balls. The Company’s other products include plant-based protein offerings, ready-to-eat meals, multi-protein frozen foods, vegetarian foods and desserts. The Company also provides direct-to-consumer meals and hot food-to-go solutions in the U.K. and the Republic of Ireland. We operate feed mills, hatcheries, processing plants and distribution centers in 14 U.S. states, the U.K., Mexico, France, Puerto Rico, the Netherlands and the Republic of Ireland. As of March 26, 2023, Pilgrim’s had approximately 62,000 employees and had the capacity to process approximately 42.1 million birds per 5-day work week. Approximately 5,650 contract growers supply chicken for the Company’s operations. As of March 26, 2023, PPC had the capacity to process approximately 51,000 pigs per 5-day work week and approximately 230 contract growers supply pigs for the Company’s operations. As of March 26, 2023, JBS S.A., through its indirect wholly-owned subsidiaries (collectively, “JBS”), beneficially owned 82.6% of the Company’s outstanding common stock.

Condensed Consolidated Financial Statements

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal and recurring adjustments unless otherwise disclosed) considered necessary for a fair presentation have been included. Operating results for the three months ended March 26, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 25, 2022.

The Company operates on the basis of a 52/53 week fiscal year ending on the Sunday falling on or before December 31. Any reference we make to a particular year (for example, 2023) in the notes to these Condensed Consolidated Financial Statements applies to our fiscal year and not the calendar year. The three months ended March 26, 2023 represents the period from December 26, 2022 through March 26, 2023. The three months ended March 27, 2022 represents the period from December 27, 2021 through March 27, 2022.

The Condensed Consolidated Financial Statements include the accounts of the Company and its majority-owned subsidiaries. We eliminate all significant affiliate accounts and transactions upon consolidation.

The Condensed Consolidated Financial Statements have been prepared in conformity with U.S. GAAP using management’s best estimates and judgments. These estimates and judgments affect the reported amounts of assets and liabilities and disclosure of the contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ materially from these estimates and judgments. Significant estimates made by the Company include the allowance for credit losses, reserves related to inventory obsolescence or valuation, useful lives of long-lived assets, goodwill, valuation of deferred tax assets, insurance accruals, valuation of pension and other postretirement benefits obligations, income tax accruals, certain derivative positions, certain litigation reserves and valuations of acquired businesses.

The functional currency of the Company’s U.S. and Mexico operations and certain holding-company subsidiaries in Luxembourg, the U.K., Malta and the Republic of Ireland is the U.S. dollar. The functional currency of its U.K. operations is the British pound. The functional currency of the Company’s operations in France, the Netherlands and the Republic of Ireland is the euro. For foreign currency-denominated entities other than the Company’s Mexico operations, translation from local

currencies into U.S. dollars is performed for most assets and liabilities using the exchange rates in effect as of the balance sheet date. Income and expense accounts are remeasured using average exchange rates for the period. Adjustments resulting from translation of these financial records are reflected as a separate component of Accumulated other comprehensive loss in the Condensed Consolidated Balance Sheets. For the Company’s Mexico operations, remeasurement from the Mexican peso to U.S. dollars is performed for monetary assets and liabilities using the exchange rate in effect as of the balance sheet date. Remeasurement is performed for non-monetary assets using the historical exchange rate in effect on the date of each asset’s acquisition. Income and expense accounts are remeasured using average exchange rates for the period. Net adjustments resulting from remeasurement of these financial records, as well as foreign currency transaction gains and losses, are reflected in Foreign currency transaction losses in the Condensed Consolidated Statements of Income.

Restricted Cash and Restricted Cash Equivalents

The Company is required to maintain cash balances with a broker as collateral for exchange-traded futures contracts. These balances are classified as restricted cash as they are not available for use by the Company to fund daily operations. The balance of restricted cash and restricted cash equivalents may also include investments in U.S. Treasury Bills that qualify as restricted cash equivalents, as required by the broker, to offset the obligation to return cash collateral.

The following table reconciles cash, cash equivalents, restricted cash and restricted cash equivalents as reported in the Condensed Consolidated Balance Sheets to the total of the same amounts shown in the Condensed Consolidated Statements of Cash Flows:

	March 26, 2023		December 25, 2022
	(In thousands)
Cash and cash equivalents	$	150,687	$	400,988
Restricted cash and restricted cash equivalents	33,879		33,771
Total cash, cash equivalents, restricted cash and restricted cash equivalents shown in the Condensed Consolidated Statements of Cash Flows	$	184,566	$	434,759

Accounting Pronouncements Adopted in 2023

In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations, which requires disclosure of the existence of supplier financing programs. The guidance requires disclosure about the nature of the supplier financing agreements, including key terms and payment timing and determination of amounts, the accounting treatment for the transactions and the effect of the transactions on the financial statements, as well as any assets pledged or guarantees provided to the providers of the financing programs. The provisions of the new guidance were effective for years beginning after December 15, 2022 with the requirement to add rollforward disclosures for years beginning after December 15, 2023. The Company adopted this guidance effective December 26, 2022. The adoption of this guidance did not have a material impact on our Condensed Consolidated Financial Statements. Additional information regarding supplier finance programs is included in “Note 10. Supplier Finance Programs.”

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions to the application of current GAAP to existing contracts, hedging relationships and other transactions affected by reference rate reform. The new guidance will ease the transition to new reference rates by allowing entities to update contracts and hedging relationships without applying many of the contract modification requirements specific to those contracts. The provisions of the new guidance are effective beginning March 12, 2020, extending through December 31, 2022 with the option to apply the guidance at any point during that time period. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848), which provides further clarification on the scope of Topic 848 so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions in Topic 848. Once an entity elects an expedient or exception it must be applied to all eligible contracts or transactions. We currently have hedging transactions and debt agreements that reference LIBOR and will apply the new guidance as these contracts are modified to reference other rates. The Company adopted this guidance effective December 26, 2022. The adoption did not have a material impact on our Condensed Consolidated Financial Statements.

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REVENUE RECOGNITION

3 Months Ended

Mar. 26, 2023

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

REVENUE RECOGNITION The vast majority of the Company’s revenue is derived from contracts which are based upon a customer ordering our products. While there may be master agreements, the contract is only established when the customer’s order is accepted by the Company. The Company accounts for a contract, which may be verbal or written, when it is approved and committed by both parties, the rights of the parties are identified along with payment terms, the contract has commercial substance and collectability is probable.

The Company evaluates the transaction for distinct performance obligations, which are the sale of its products to customers. Since its products are commodity market-priced, the sales price is representative of the observable, standalone selling price. Each performance obligation is recognized based upon a pattern of recognition that reflects the transfer of control to the customer at a point in time, which is upon destination (customer location or port of destination), which faithfully depicts the transfer of control and recognition of revenue. There are instances of customer pick-up at the Company’s facility, in which case control transfers to the customer at that point and the Company recognizes revenue. The Company’s performance obligations are typically fulfilled within days to weeks of the acceptance of the order.

The Company makes judgments regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from revenue and cash flows with customers. Determination of a contract requires evaluation and judgment along with the estimation of the total contract value and if any of the contract value is constrained. Due to the nature of our business, there is minimal variable consideration, as the contract is established at the acceptance of the order from the customer. When applicable, variable consideration is estimated at contract inception and updated on a regular basis until the contract is completed. Allocating the transaction price to a specific performance obligation based upon the relative standalone selling prices includes estimating the standalone selling prices including discounts and variable consideration.

Disaggregated Revenue

Revenue has been disaggregated into the categories below to show how economic factors affect the nature, amount, timing and uncertainty of revenue and cash flows:

	Three Months Ended March 26, 2023
	(In thousands)
	Fresh		Prepared		Export		Other		Total
U.S.	$	1,943,786	$	244,801	$	128,275	$	115,706	$	2,432,568
U.K. and Europe	264,663		831,729		117,621		25,251		1,239,264
Mexico	411,919		46,356		—		35,521		493,796
Total net sales	$	2,620,368	$	1,122,886	$	245,896	$	176,478	$	4,165,628

	Three Months Ended March 27, 2022
	(In thousands)
	Fresh		Prepared		Export		Other		Total
U.S.	$	2,087,621	$	255,087	$	133,797	$	104,703	$	2,581,208
U.K. and Europe	237,309		746,636		173,411		34,626		1,191,982
Mexico	410,420		36,141		—		20,644		467,205
Total net sales	$	2,735,350	$	1,037,864	$	307,208	$	159,973	$	4,240,395

Contract Costs

The Company can incur incremental costs to obtain or fulfill a contract such as broker expenses that are not expected to be recovered. The amortization period for such expenses is less than one year; therefore, the costs are expensed as incurred.

Taxes

The Company excludes all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the entity from a customer (for example, sales, use, value added and some excise taxes) from the transaction price.

Contract Balances

The Company receives payment from customers based on terms established with the customer. Payments are typically due within 14 to 30 days of delivery. Revenue contract liabilities relate to payments received in advance of satisfying the performance under the customer contract. The revenue contract liabilities relate to customer prepayments and the advanced consideration, such as cash, received from governmental agency contracts for which performance obligations to the end customer have not been satisfied.

Changes in the revenue contract liabilities balance are as follows (in thousands):

Balance as of December 25, 2022	$	34,486
Revenue recognized	(20,183)
Cash received, excluding amounts recognized as revenue during the period	33,463
Balance as of March 26, 2023	$	47,766

Accounts Receivable

The Company records accounts receivable when revenue is recognized. We record an allowance for credit losses, reducing our receivables balance to an amount we estimate is collectible from our customers. Estimates used in determining the allowance for credit losses are based on historical collection experience, current trends, aging of accounts receivable and periodic credit evaluations of our customers’ financial condition. We write off accounts receivable when it becomes apparent, based upon age or customer circumstances, that such amounts will not be collected. Generally, the Company does not require collateral for its accounts receivable.

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DERIVATIVE FINANCIAL INSTRUMENTS

3 Months Ended

Mar. 26, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

DERIVATIVE FINANCIAL INSTRUMENTS

The Company utilizes various raw materials in its operations, including corn, soybean meal, soybean oil, wheat, natural gas, electricity and diesel fuel, which are all considered commodities. The Company considers these raw materials generally available from a number of different sources and believes it can obtain them to meet its requirements. These commodities are subject to price fluctuations and related price risk due to factors beyond our control, such as economic and political conditions, supply and demand, weather, governmental regulation and other circumstances. Generally, the Company purchases derivative financial instruments, specifically exchange-traded futures and options, in an attempt to mitigate price risk related to its anticipated consumption of commodity inputs for approximately the next twelve months. The Company may purchase longer-term derivative financial instruments on particular commodities if deemed appropriate.

The Company has operations in Mexico, the U.K., France, the Netherlands and the Republic of Ireland. Therefore, it has exposure to translational foreign exchange risk when the financial results of those operations are remeasured in U.S. dollars. The Company has purchased foreign currency forward contracts to manage this foreign exchange risk.

The fair value of derivative assets is included in the line item Prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets while the fair value of derivative liabilities is included in the line item Accrued expenses and other current liabilities on the same statements. The Company’s counterparties require that it post collateral for changes in the net fair value of the derivative contracts. This cash collateral is reported in the line item Restricted cash and restricted cash equivalents on the Condensed Consolidated Balance Sheets.

Undesignated contracts may include contracts not designated as hedges or contracts that do not qualify for hedge accounting. The fair value of each of these derivatives is recognized in the Condensed Consolidated Balance Sheets within Prepaid expenses and other current assets or Accrued expenses and other current liabilities. Changes in fair value of each derivative are recognized immediately in the Condensed Consolidated Statements of Income within Net sales, Cost of sales, Selling, general and administrative expense, or Foreign currency transaction losses depending on the risk the derivative is intended to mitigate. While management believes these instruments help mitigate various market risks, they are not designated and accounted for as hedges as a result of the extensive record keeping requirements.

The Company does not apply hedge accounting treatment to certain derivative financial instruments that it has purchased to mitigate commodity purchase exposures in the U.S. and Mexico or foreign currency transaction exposures on our Mexico operations. Therefore, the Company recognized changes in the fair value of these derivative financial instruments immediately in earnings. Gains or losses related to the commodity derivative financial instruments are included in the line item Cost of sales in the Condensed Consolidated Statements of Income. Gains or losses related to the foreign currency derivative financial instruments are included in the line item Foreign currency transaction losses and Cost of sales in the Condensed Consolidated Statements of Income.

The Company does apply hedge accounting treatment to certain derivative financial instruments related to its U.K. and Europe reportable segment that it has purchased to mitigate foreign currency transaction exposures. Before the settlement date of the financial derivative instruments, the Company recognizes changes in the fair value of the cash flow hedge into accumulated other comprehensive income (“AOCI”). When the derivative financial instruments are settled, the amount in AOCI is then reclassified to earnings. Gains or losses related to these derivative financial instruments are included in the line item Net sales and Cost of sales in the Condensed Consolidated Statements of Income.

Information regarding the Company’s outstanding derivative instruments and cash collateral posted with brokers is included in the following table:

	March 26, 2023			December 25, 2022
	(In thousands)
Fair values:
Commodity derivative assets	$	8,333		$	17,922
Commodity derivative liabilities	(26,437)			(9,042)
Foreign currency derivative assets	5,600			555
Foreign currency derivative liabilities	(405)			(6,170)
Sales contract derivative assets	459			—
Sales contract derivative liabilities	—			(3,705)
Cash collateral posted with brokers(a)	33,879			33,771
Derivatives coverage(b):
Corn	12.1		%	14.4		%
Soybean meal	10.0		%	10.1		%
Period through which stated percent of needs are covered:
Corn	March 2024			December 2023
Soybean meal	July 2024			December 2023

(a)Collateral posted with brokers consists primarily of cash, short-term treasury bills or other cash equivalents.

(b)Derivatives coverage is the percent of anticipated commodity needs covered by outstanding derivative instruments through a specified date.

    The following table presents the gains and losses of each derivative instrument held by the Company not designated or qualifying as hedging instruments:

	Three Months Ended
Gains (Losses) by Type of Contract (a)	March 26, 2023		March 27, 2022		Affected Line Item in the Condensed Consolidated Statements of Income
	(In thousands)
Foreign currency derivatives	$	(19,104)	$	(13,300)	Foreign currency transaction losses
Commodity derivatives	(16,534)		31,540		Cost of sales
Sales contract derivative liabilities	4,164		(8,666)		Net sales
Total	$	(31,474)	$	9,574

(a)Amounts represent income (expenses) related to results of operations.

    The following tables present the components of the gain or loss on derivatives that qualify as cash flow hedges:

	Gains Recognized in Other Comprehensive Income
	Three Months Ended
	March 26, 2023		March 27, 2022
	(In thousands)
Foreign currency derivatives	$	16	$	523

	Gains (Losses) Reclassified from AOCI into Income
	Three Months Ended March 26, 2023						Three Months Ended March 27, 2022
	Net sales(a)		Cost of sales(b)		Interest expense, net of capitalized interest(b)		Net sales(a)		Cost of sales(b)		Interest expense, net of capitalized interest(b)
	(In thousands)
Total amounts of income and expense line items presented in the Condensed Consolidated Statements of Income in which the effects of cash flow hedges are recorded	$	4,165,628	$	3,992,581	$	42,662	$	4,240,395	$	3,698,415	$	36,296
Impact from cash flow hedging instruments:
Foreign currency derivatives	120		56		—		32		91		—
Interest rates swap derivatives	—		—		—		—		—		98

(a)    Amounts represent income (expenses) related to net sales.

(b)    Amounts represent expenses (income) related to cost of sales and interest expense.

At March 26, 2023, there were immaterial pre-tax deferred net gains on foreign currency derivatives recorded in AOCI that are expected to be reclassified to the Condensed Consolidated Statements of Income during the next twelve months. This expectation is based on the anticipated settlements on the hedged investments in foreign currencies that will occur over the next twelve months, at which time the Company will recognize the deferred gains to earnings.

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TRADE ACCOUNTS AND OTHER RECEIVABLES

3 Months Ended

Mar. 26, 2023

Accounts Receivable, after Allowance for Credit Loss [Abstract]

TRADE ACCOUNTS AND OTHER RECEIVABLES

TRADE ACCOUNTS AND OTHER RECEIVABLES

Trade accounts and other receivables, less allowance for credit losses, consisted of the following:

	March 26, 2023		December 25, 2022
	(In thousands)
Trade accounts receivable	$	1,071,202	$	984,332
Notes receivable from third parties	13,599		33,477
Other receivables	161,737		88,962
Receivables, gross	1,246,538		1,106,771
Allowance for credit losses	(9,172)		(9,559)
Receivables, net	$	1,237,366	$	1,097,212
Accounts receivable from related parties(a)	$	2,125	$	2,512

(a)    Additional information regarding accounts receivable from related parties is included in “Note 17. Related Party Transactions.”

Activity in the allowance for credit losses was as follows:

	Three Months Ended
	March 26, 2023
	(In thousands)
Balance, beginning of period	$	(9,559)
Provision charged to operating results	(525)
Account write-offs and recoveries	1,149
Effect of exchange rate	(237)
Balance, end of period	$	(9,172)

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INVENTORIES

3 Months Ended

Mar. 26, 2023

Inventory Disclosure [Abstract]

INVENTORIES

INVENTORIES

Inventories consisted of the following:

	March 26, 2023		December 25, 2022
	(In thousands)
Raw materials and work-in-process	$	1,256,009	$	1,204,092
Finished products	592,772		596,375
Operating supplies	74,347		95,367
Maintenance materials and parts	98,982		94,350
Total inventories	$	2,022,110	$	1,990,184

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INVESTMENTS IN SECURITIES

3 Months Ended

Mar. 26, 2023

Investments, Debt and Equity Securities [Abstract]

INVESTMENTS IN SECURITIES

INVESTMENTS IN SECURITIES

The Company recognizes investments in available-for-sale securities as cash equivalents, current investments or long-term investments depending upon each security’s length to maturity. The following table summarizes our investments in available-for-sale securities:

	March 26, 2023				December 25, 2022
	Cost		Fair Value		Cost		Fair Value
	(In thousands)
Cash equivalents:
Fixed income securities	$	77,131	$	77,131	$	167,366	$	167,430

Gross realized gains during the three months ended March 26, 2023 related to the Company’s available-for-sale securities were $1.9 million and gross realized gains during the three months ended March 27, 2022 were immaterial. Proceeds received from the sale or maturity of available-for-sale securities investments are historically disclosed in the Condensed Consolidated Statements of Cash Flows. Net unrealized holding gains and losses on the Company’s available-for-sale securities recognized during the three months ended March 26, 2023 and March 27, 2022 that have been included in accumulated other comprehensive income (loss) and the net amount of gains and losses reclassified out of accumulated other comprehensive income (loss) to earnings during the three months ended March 26, 2023 and March 27, 2022 are disclosed in “Note 13. Stockholders’ Equity.”

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GOODWILL AND INTANGIBLE ASSETS

3 Months Ended

Mar. 26, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS

The activity in goodwill by segment for the three months ended March 26, 2023 was as follows:

	December 25, 2022		Currency Translation		March 26, 2023
	(In thousands)
U.S.	$	41,936	$	—	$	41,936
U.K. and Europe	1,058,204		15,669		1,073,873
Mexico	127,804		—		127,804
Total	$	1,227,944	$	15,669	$	1,243,613

Intangible assets consisted of the following:

	December 25, 2022		Amortization		Currency Translation		March 26, 2023
	(In thousands)
Cost:
Trade names not subject to amortization	$	549,024	$	—	$	8,274	$	557,298
Trade names subject to amortization	112,057		—		447		112,504
Customer relationships	427,662		—		3,882		431,544
Accumulated amortization:
Trade names	(53,708)		(943)		(37)		(54,688)
Customer relationships	(189,015)		(7,350)		(1,398)		(197,763)
Intangible assets, net	$	846,020	$	(8,293)	$	11,168	$	848,895

Intangible assets are amortized over the estimated useful lives of the assets as follows:

Customer relationships	3-18 years
Trade names subject to amortization	15-20 years

At March 26, 2023, the Company assessed if events or changes in circumstances indicated that the asset group-level carrying amounts of its intangible assets subject to amortization might not be recoverable. There were no indicators present that required the Company to test the recoverability of the asset group-level carrying amounts of its intangible assets subject to amortization at that date.

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PROPERTY, PLANT AND EQUIPMENT

3 Months Ended

Mar. 26, 2023

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENTProperty, plant and equipment (“PP&E”), net consisted of the following:

	March 26, 2023		December 25, 2022
	(In thousands)
Land	$	267,245	$	263,494
Buildings	2,090,190		2,065,042
Machinery and equipment	3,739,808		3,651,464
Autos and trucks	84,830		77,865
Finance lease assets	5,710		5,710
Construction-in-progress	373,325		358,819
PP&E, gross	6,561,108		6,422,394
Accumulated depreciation	(3,563,813)		(3,481,548)
PP&E, net	$	2,997,295	$	2,940,846

The Company recognized depreciation expense of $90.0 million and $93.4 million during the three months ended March 26, 2023 and March 27, 2022, respectively.

During the three months ended March 26, 2023, Pilgrim’s spent $131.7 million on capital projects and transferred $117.8 million of completed projects from construction-in-progress to depreciable assets. During the three months ended March 27, 2022, the Company spent $81.6 million on capital projects and transferred $73.8 million of completed projects from construction-in-progress to depreciable assets.

During the three months ended March 26, 2023, the Company sold certain PP&E for $12.6 million in cash and recognized a net gain of $9.3 million on these sales. PP&E sold during the three months ended March 26, 2023 consisted of a farm in Mexico and other miscellaneous equipment. During the three months ended March 27, 2022, the Company sold miscellaneous equipment for cash of $0.8 million and recognized a net loss on these sales of $1.9 million.

The Company has closed or idled various facilities in the U.S. and in the U.K. The Board of Directors has not determined if it would be in the best interest of the Company to divest any of these idled assets. Management is therefore not certain that it can or will divest any of these assets within one year, is not actively marketing these assets and, accordingly, has not classified them as assets held for sale. The Company continues to depreciate these assets. As of March 26, 2023, the carrying amounts of these idled assets totaled $39.4 million based on depreciable value of $213.3 million and accumulated depreciation of $173.9 million. Idled asset values include those assets that are no longer in use as a result of the recent restructuring activities of our U.K. and Europe segment.

As of March 26, 2023, the Company assessed if events or changes in circumstances indicated that the asset group-level carrying amounts of its PP&E held for use might not be recoverable. There were no indicators present that required the Company to test the recoverability of the asset group-level carrying amounts of its PP&E held for use at that date.

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CURRENT LIABILITIES

3 Months Ended

Mar. 26, 2023

Payables and Accruals [Abstract]

CURRENT LIABILITIES

CURRENT LIABILITIES

Current liabilities, other than income taxes and current maturities of long-term debt, consisted of the following components:

	March 26, 2023		December 25, 2022
	(In thousands)
Accounts payable:
Trade accounts payable	$	1,424,819	$	1,476,552
Book overdrafts	74,794		93,800
Other payables	17,857		17,587
Total accounts payable	1,517,470		1,587,939
Accounts payable to related parties(a)	20,481		12,155
Revenue contract liabilities(b)	47,766		34,486
Accrued expenses and other current liabilities:
Compensation and benefits	203,526		258,098
Litigation settlements(c)	110,430		99,230
Current maturities of operating lease liabilities	75,613		79,222
Accrued sales rebates	71,880		55,002
Insurance and self-insured claims	70,447		72,453
Interest and debt-related fees	48,292		32,433
Taxes	34,685		33,550
Derivative liabilities(d)	26,842		18,917
Other accrued expenses	221,038		201,994
Total accrued expenses and other current liabilities	862,753		850,899
Total	$	2,448,470	$	2,485,479

(a)    Additional information regarding accounts payable to related parties is included in “Note 17. Related Party Transactions.”

(b)    Additional information regarding revenue contract liabilities is included in “Note 2. Revenue Recognition.”

(c)    Additional information regarding litigation settlements is included in “Note 19. Commitments and Contingencies.”

(d)    Additional information regarding derivative liabilities is included in “Note 3. Derivative Financial Instruments.”

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SUPPLIER FINANCE PROGRAMS	3 Months Ended
	Mar. 26, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
SUPPLIER FINANCE PROGRAMS	SUPPLIER FINANCE PROGRAMSThe Company maintains supplier finance programs, under which we agree to pay for confirmed invoices from participating suppliers to a financing entity. Maturity dates are generally between 65-180 days and we pay either the supplier or the financing entity depending on the supplier's election. As of March 26, 2023 and December 25, 2022, the outstanding balance of confirmed invoices was $89.2 million and $239.6 million, respectively and are included in Accounts payable in the Condensed Consolidated Balance Sheets.

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INCOME TAXES

3 Months Ended

Mar. 26, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The Company recorded an income tax benefit of $8.8 million, a 275.5% effective tax rate, for the three months ended March 26, 2023 compared to income tax expense of $75.2 million, a 21.1% effective tax rate, for the three months ended March 27, 2022. The decrease in income tax expense in 2023 resulted primarily from the decrease in profit before income taxes.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carry back and carry forward periods), projected future taxable income and tax-planning strategies in making this assessment. As of March 26, 2023, the Company did not believe it had sufficient positive evidence to conclude that realization of a portion of its foreign net deferred tax assets are more likely than not to be realized.

For the three months ended March 26, 2023 and March 27, 2022, there is a tax effect of $(0.7) million and $(2.3) million, respectively, reflected in other comprehensive income.

For the three months ended March 26, 2023 and March 27, 2022, there are immaterial tax effects reflected in income tax expense due to excess tax windfalls and shortfalls related to stock-based compensation.

The Company and its subsidiaries file a variety of consolidated and standalone income tax returns in various jurisdictions. In the normal course of business, our income tax filings are subject to review by various taxing authorities. In general, tax returns filed by the Company and its subsidiaries for years prior to 2011 are no longer subject to examination by tax authorities.

As of July 27, 2020, JBS owns in excess of 80% of Pilgrim’s. JBS has a federal tax election to file a consolidated tax return with subsidiaries in which it holds an ownership of at least 80%.

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DEBT

3 Months Ended

Mar. 26, 2023

Debt Disclosure [Abstract]

DEBT

DEBT

Long-term debt and other borrowing arrangements, including current notes payable to banks, consisted of the following components:

	Maturity	March 26, 2023		December 25, 2022
		(In thousands)
Senior notes payable at 3.50%	2032	$	900,000	$	900,000
Senior notes payable, net of discount, at 4.25%	2031	991,942		991,692
Senior notes payable, net of discount, at 5.875%	2027	846,761		846,582
U.S. Credit Facility (defined below):
Term note payable at 6.19%	2026	473,750		480,078
Revolving note payable at 7.89%	2026	35,000		—
U.K. and Europe Revolving Facility (defined below) with notes payable at SONIA plus 1.25%	2027	—		—
Mexico Credit Facility (defined below) with notes payable at TIIE plus 1.50%	2023	—		—
Finance lease obligations	Various	3,426		3,624
Long-term debt		3,250,879		3,221,976
Less: Current maturities of long-term debt		(26,326)		(26,279)
Long-term debt, less current maturities		3,224,553		3,195,697
Less: Capitalized financing costs		(27,938)		(29,265)
Long-term debt, less current maturities, net of capitalized financing costs		$	3,196,615	$	3,166,432

U.S. Senior Notes

U.S. Senior Notes Due 2027

On September 29, 2017, the Company completed a sale of $600.0 million aggregate principal amount of its 5.875% unsecured senior notes due 2027. On March 7, 2018, the Company completed an add-on offering of $250.0 million of these senior notes (together with the senior notes issued in September 2017, the “Senior Notes due 2027”). The issuance price of this add-on offering was 97.25%, which created gross proceeds of $243.1 million. The $6.9 million discount will be amortized over the remaining life of the Senior Notes due 2027. Each issuance of the Senior Notes due 2027 is treated as a single class for all purposes under the 2017 Indenture (defined below) and have the same terms.

The Senior Notes due 2027 are governed by, and were issued pursuant to, an indenture dated as of September 29, 2017 by and among the Company, its guarantor subsidiaries and Regions Bank, as trustee (the “2017 Indenture”). The 2017 Indenture provides, among other things, that the Senior Notes due 2027 bear interest at a rate of 5.875% per annum from the date of issuance until maturity, payable semi-annually in cash in arrears, beginning on March 30, 2018 for the Senior Notes due 2027 that were issued in September 2017 and beginning on March 15, 2018 for the Senior Notes due 2027 that were issued in March 2018.

U.S. Senior Notes Due 2031

On April 8, 2021, the Company completed a sale of $1.0 billion aggregate principal amount of its 4.25% sustainability-linked unsecured senior notes due 2031 (“Senior Notes due 2031”). The Company used the net proceeds, together with cash on hand, to redeem previously issued senior notes. The issuance price of this offering was 98.994%, which created gross proceeds of $989.9 million. The $10.1 million discount will be amortized over the remaining life of the Senior Notes due 2031. Each issuance of the Senior Notes due 2031 is treated as a single class for all purposes under the April 2021 Indenture (defined below) and have the same terms.

The Senior Notes due 2031 are governed by, and were issued pursuant to, an indenture dated as of April 8, 2021 by and among the Company, its guarantor subsidiaries and Regions Bank, as trustee (the “April 2021 Indenture”). The April 2021 Indenture provides, among other things, that the Senior Notes due 2031 bear interest at a rate of 4.25% per annum payable semi-annually on April 15 and October 15 of each year. From and including October 15, 2026, the interest rate payable on the notes shall be increased to 4.50% per annum unless the Company has notified the trustee at least 30 days prior to October 15, 2026 that in respect of the year ended December 31, 2025, (1) the Company’s greenhouse gas emissions intensity reduction target of 17.679% by December 31, 2025 from a 2019 baseline (the “Sustainability Performance Target”) has been satisfied and (2) the satisfaction of the Sustainability Performance Target has been confirmed by a qualified provider of third-party assurance or attestation services appointed by the Company to review the Company’s statement of the greenhouse gas emissions intensity in accordance with its customary procedures.

U.S. Senior Notes Due 2032

On September 2, 2021, the Company completed a sale of $900.0 million in aggregate principal amount of its 3.50% unsecured senior notes due 2032 (“Senior Notes due 2032”). The Company used the proceeds, together with borrowings under the delayed draw term loan under its U.S. Credit Facility, to finance the acquisition of the Kerry Consumer Foods’ meats and meals businesses (now Pilgrim’s Food Masters) and to pay related fees and expenses. Each issuance of the Senior Notes due 2032 is treated as a single class for all purposes under the September 2021 Indenture (defined below) and have the same terms.

The Senior Notes due 2032 are governed by, and were issued pursuant to, an indenture dated as of September 2, 2021 by and among the Company, its guarantor subsidiaries and Regions Bank, as trustee (the “September 2021 Indenture”). The September 2021 Indenture provides, among other things, that the Senior Notes due 2032 bear interest at a rate of 3.50% per annum payable semi-annually on March 1 and September 1 of each year.

On September 22, 2022, the Company announced expiration and receipt of requisite consents in its consent solicitation for certain amendments to its Senior Notes due 2031 and Senior Notes due 2032. The amendments conform certain provisions and restrictive covenants in each indenture to (1) reflect PPC investment grade status and (2) the corresponding provisions and restrictive covenants set forth in the indenture governing its Senior Notes due 2031 and Senior Notes due 2032. The amendments permanently eliminated certain covenants for the Company, including limitation on incurrence of additional debt, issuance of capital stock, restricted payments, asset sales, restrictions on distributions, affiliate transactions, guarantees of debt by restricted subsidiaries and provisions related to mergers and consolidation. In addition, provisions related to limitation on liens, sale and leaseback transactions, substitution of the company and measuring compliance were amended.

U.S. Senior Notes Due 2033

On April 19, 2023, the Company completed a sale of $1.0 billion aggregate principal amount of its 6.25% unsecured, registered senior notes due 2033 (“Senior Notes due 2033”). The Company used the net proceeds to repay the term loans and the outstanding balance under the U.S. Credit Facility as defined below. The remaining proceeds will be used for general corporate purposes, including repaying existing debt. The issuance price of this offering to the public was 99.312%, which created gross proceeds of $993.1 million before transaction costs. The $6.9 million discount will be amortized over the remaining life of the Senior Notes due 2033. The Senior Notes due 2033 bear interest at a rate of 6.25% per annum from the date of issuance until maturity, payable semiannually on January 1 and July 1 of each year, commencing on January 1, 2024.

The Senior Notes were and are each guaranteed on a senior unsecured basis by the Company’s guarantor subsidiaries. On February 16, 2023, the Company exchanged all of its outstanding principal amounts on the Senior Notes due 2031 and the Senior Notes due 2032 for an equal principal amount of new notes in a transaction registered under the Securities Act. In addition, and of the Company’s other existing or future domestic restricted subsidiaries that incur or guarantee any other indebtedness (with limited exceptions) must also guarantee the Senior Notes. All the Senior Notes related guarantees were and are unsecured senior obligations of the Company and its guarantor subsidiaries and rank equally with all of the Company’s and its guarantor subsidiaries’ other unsubordinated indebtedness. The Senior Notes also contain customary covenants and events of default.

U.S. Credit Facilities

On August 9, 2021, the Company and certain of the Company’s subsidiaries entered into a Fifth Amended and Restated Credit Agreement (the “U.S. Credit Facility”) with CoBank, ACB, as administrative agent and collateral agent, and the other lenders party thereto. The U.S. Credit Facility provides for an $800.0 million revolving credit commitment and a term loan commitment of up to $700.0 million (the “Term Loans”). The U.S. Credit Facility includes an incremental commitment and loan feature that allows the Company, subject to certain conditions, to increase the aggregate revolving loan and term loan commitments. The aggregate amount of incremental commitments and loans shall not exceed the sum of $500.0 million plus the maximum amount that would result in a senior secured leverage ratio, on a pro-forma basis, of not more than 3.00 to 1.00.

The revolving loan commitment under the U.S. Credit Facility matures on August 9, 2026. All principal on the Term Loans is due at maturity on August 9, 2026. Installments of principal in amounts predetermined by CoBank, ACB are required to be made on a quarterly basis prior to the maturity date of the Term Loans beginning in January 2022. As of March 26, 2023, the Company had outstanding borrowings under the term loan commitment of $473.8 million. As of March 26, 2023, the Company had outstanding letters of credit and available borrowings under the revolving credit commitment of $35.0 million and $730.0 million, respectively. The outstanding borrowings were $35.0 million as of March 26, 2023.

The U.S. Credit Facility includes an $80.0 million sub-limit for swingline loans and a $125.0 million sub-limit for letters of credit. Outstanding borrowings under the revolving loan commitment and the Term Loans bear interest at a per annum rate, based on the Company’s senior secured net leverage ratio, equal to (1) in the case of LIBOR loans, between LIBOR plus 1.25% and LIBOR plus 2.75% and (2) in the case of base rate loans, between the base rate plus 0.25% and the base rate plus 1.75%.

The U.S. Credit Facility contains customary financial and other various covenants for transactions of this type, including restrictions on the Company’s ability to incur additional indebtedness, incur liens, pay dividends, make certain restricted payments, consummate certain asset sales, enter into certain transactions with the Company’s affiliates, or merge, consolidate and/or sell or dispose of all or substantially all of its assets, among other things. The U.S. Credit Facility requires the Company to comply with a minimum net leverage ratio and a minimum interest coverage ratio.

All obligations under the U.S. Credit Facility continue to be secured by first priority liens on (1) all present and future personal property of the Company and certain of the Company’s subsidiaries and the guarantors, including all material domestic and first-tier direct foreign subsidiaries, (2) all present and future shares of capital stock of the borrowers and guarantors and (3) substantially all of the present and future assets of the Company and the guarantors under the U.S. Credit Facility. The Company is currently in compliance with the covenants under the U.S. Credit Facility.

On April 19, 2023, the outstanding balances for the swingline loans and term loans under the U.S. Credit Facility were paid in full with the proceeds from the Senior Notes 2033 as outlined above.

U.K. and Europe Revolving Facility

On June 24, 2022, Moy Park Holdings (Europe) Ltd. (“MPH(E)”) and other Pilgrim’s entities located in the U.K. and Republic of Ireland entered into an unsecured multicurrency revolving facility agreement (the “U.K. and Europe Revolver

Facility”) with the Governor and Company of the Bank of Ireland, as agent, and the other lenders party thereto. The U.K. and Europe Revolver Facility provides for a multicurrency revolving loan commitment of up to £150.0 million. The loan commitment matures on June 24, 2027. Outstanding borrowings bear interest at the (1) current index interest rate, depending on the currency of the borrowing, plus (2) a margin, ranging from 1.25% to 2.00% based on leverage (as defined in the U.K. and Europe Revolver Facility). All obligations under this agreement are guaranteed by certain of the Company’s subsidiaries. As of March 26, 2023, both the U.S. dollar-equivalent loan commitment and borrowing availability were $183.5 million and there were no outstanding borrowings under this agreement.

The U.K. and Europe Revolver Facility contains representations and warranties, covenants, indemnities and conditions, in each case, that the Company believes are customary for transactions of this type. Pursuant to the terms of the agreement, the Company is required to meet certain financial and other restrictive covenants. Additionally, the Company is prohibited from taking certain actions without consent of the lenders, including, without limitation, incurring additional indebtedness, entering into certain mergers or other business combination transactions, permitting liens or other encumbrances on its assets and making restricted payments, including dividends, in each case, except as expressly permitted under the U.K. and Europe Revolver Facility. The Company is currently in compliance with the covenants under the U.K. and Europe Revolver Facility.

Mexico Credit Facility

On December 14, 2018, certain of the Company’s Mexican subsidiaries entered into an unsecured credit agreement (the “Mexico Credit Facility”) with Banco del Bajio, Sociedad Anónima, Institución de Banca Múltiple, as lender. The loan commitment under the Mexico Credit Facility is Mex$1.5 billion and can be borrowed on a revolving basis. Outstanding borrowings under the Mexico Credit Facility accrue interest at a rate equal to the 28-Day Interbank Equilibrium Interest Rate plus 1.5%. The Mexico Credit Facility contains covenants and defaults that the Company believes are customary for transactions of this type. The Company is currently in compliance with the covenants under the Mexico Credit Facility. The Mexico Credit Facility will be used for general corporate and working capital purposes. The Mexico Credit Facility will mature on December 14, 2023. As of March 26, 2023, the U.S. dollar-equivalent of the loan commitment and borrowing availability was $81.3 million. As of March 26, 2023, there were no outstanding borrowings under the Mexico Credit Facility.

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STOCKHOLDERS' EQUITY

3 Months Ended

Mar. 26, 2023

Equity [Abstract]

STOCKHOLDERS' EQUITY

STOCKHOLDERS’ EQUITY

Accumulated Other Comprehensive Income (Loss)

The following tables provide information regarding the changes in accumulated other comprehensive income (loss):

	Three Months Ended March 26, 2023
	Gains (Losses) Related to Foreign Currency Translation		Losses on Derivative Financial Instruments Classified as Cash Flow Hedges		Losses Related to Pension and Other Postretirement Benefits		Gains (Losses) on Available-for-Sale Securities		Total
	(In thousands)
Balance, beginning of period	$	(269,825)	$	(1,162)	$	(65,447)	$	(14)	$	(336,448)
Other comprehensive income before reclassifications	42,644		16		3,652		30		46,342
Amounts reclassified from accumulated other comprehensive loss (gain) to net income	—		(64)		139		(13)		62
Currency translation	—		2		—		—		2
Net current period other comprehensive income (loss)	42,644		(46)		3,791		17		46,406
Balance, end of period	$	(227,181)	$	(1,208)	$	(61,656)	$	3	$	(290,042)

	Three Months Ended March 27, 2022
	Gains (Losses) Related to Foreign Currency Translation		Losses on Derivative Financial Instruments Classified as Cash Flow Hedges		Losses Related to Pension and Other Postretirement Benefits		Gains (Losses) on Available-for-Sale Securities		Total
	(In thousands)
Balance, beginning of period	$	27,241	$	(2,365)	$	(72,873)	$	—	$	(47,997)
Other comprehensive income (loss) before reclassifications	(58,202)		523		6,479		—		(51,200)
Amounts reclassified from accumulated other comprehensive loss to net income	—		115		175		—		290
Currency translation	—		5		—		—		5
Net current period other comprehensive income (loss)	(58,202)		643		6,654		—		(50,905)
Balance, end of period	$	(30,961)	$	(1,722)	$	(66,219)	$	—	$	(98,902)

	Amount Reclassified from Accumulated Other Comprehensive Loss(a)
Details about Accumulated Other Comprehensive Loss Components	Three Months Ended March 26, 2023		Three Months Ended March 27, 2022		Affected Line Item in the Condensed Consolidated Statements of Income
	(In thousands)
Realized gains on settlement of foreign currency derivatives classified as cash flow hedges	$	120	$	32	Net sales
Realized losses on settlement of foreign currency derivatives classified as cash flow hedges	(56)		(91)		Cost of sales
Realized gain on sale of securities	18		—		Interest Income
Realized losses on settlement of interest rate swap derivatives classified as cash flow hedges	—		(98)		Interest expense, net of capitalized interest
Amortization of pension and other postretirement plan actuarial losses(b)	(182)		(232)		Miscellaneous, net
Total before tax	(100)		(389)
Tax expense	38		99
Total reclassification for the period	$	(62)	$	(290)

(a)    Positive amounts represent income to the results of operations while amounts in parentheses represent expenses to the results of operations.

(b)    These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See “Note 14. Pension and Other Postretirement Benefits.”

Preferred Stock

The Company has authorized 50,000,000 shares of $0.01 par value preferred stock, although no shares have been issued and no shares are outstanding.

Restrictions on Dividends

Both the U.S. Credit Facility and the indentures governing the Company’s senior notes restrict, but do not prohibit, the Company from declaring dividends. Additionally, the U.K. and Europe Revolver Facility prohibits MPH(E) and other Pilgrim's entities located in the U.K. and Republic of Ireland to, among other things, make payments and distributions to the Company.

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PENSION AND OTHER POSTRETIREMENT BENEFITS

3 Months Ended

Mar. 26, 2023

Retirement Benefits [Abstract]

PENSION AND OTHER POSTRETIREMENT BENEFITS

PENSION AND OTHER POSTRETIREMENT BENEFITS

The Company sponsors programs that provide retirement benefits to most of its employees. These programs include qualified defined benefit pension plans such as the Pilgrim’s Pride Retirement Plan for Union Employees (the “Union Plan”) the Pilgrim’s Pride Pension Plan for Legacy Gold Kist Employees (the “GK Pension Plan”), the Tulip Limited Pension Plan (the “Tulip Plan”) and the Geo Adams Group Pension Fund (the “Geo Adams Plan”), nonqualified defined benefit retirement plans, a defined benefit postretirement life insurance plan and defined contribution retirement savings plan. Expenses recognized under all retirement plans totaled $7.6 million and $6.4 million in the three months ended March 26, 2023 and March 27, 2022, respectively.

Defined Benefit Plans Obligations and Assets

The change in benefit obligation, change in fair value of plan assets, funded status and amounts recognized in the Condensed Consolidated Balance Sheets for the defined benefit plans were as follows:

	Three Months Ended
	March 26, 2023				March 27, 2022
	Pension Benefits		Other Benefits		Pension Benefits		Other Benefits
	(In thousands)
Change in projected benefit obligation:
Projected benefit obligation, beginning of period	$	236,147	$	1,169	$	373,062	$	1,346
Interest cost	2,314		9		1,508		4
Actuarial gain	(3,134)		(15)		(29,146)		(56)
Benefits paid	(3,838)		(29)		(4,810)		(26)
Currency translation loss (gain)	(1,082)		—		161		—
Projected benefit obligation, end of period	$	230,407	$	1,134	$	340,775	$	1,268

	Three Months Ended
	March 26, 2023				March 27, 2022
	Pension Benefits		Other Benefits		Pension Benefits		Other Benefits
	(In thousands)
Change in plan assets:
Fair value of plan assets, beginning of period	$	210,133	$	—	$	326,409	$	—
Actual return on plan assets	3,357		—		(18,246)		—
Contributions by employer	2,109		29		3,287		26
Benefits paid	(3,838)		(29)		(4,810)		(26)
Expenses paid from assets	(94)		—		(115)		—
Currency translation gain (loss)	(1,012)		—		116		—
Fair value of plan assets, end of period	$	210,655	$	—	$	306,641	$	—

	March 26, 2023				December 25, 2022
	Pension Benefits		Other Benefits		Pension Benefits		Other Benefits
	(In thousands)
Funded status:
Unfunded benefit obligation, end of period	$	(19,752)	$	(1,134)	$	(26,014)	$	(1,169)

	March 26, 2023				December 25, 2022
	Pension Benefits		Other Benefits		Pension Benefits		Other Benefits
	(In thousands)
Amounts recognized in the Condensed Consolidated Balance Sheets at end of period:
Current liability	$	(794)	$	(148)	$	(841)	$	(177)
Long-term liability	(18,958)		(986)		(25,173)		(992)
Recognized liability	$	(19,752)	$	(1,134)	$	(26,014)	$	(1,169)

	March 26, 2023				December 25, 2022
	Pension Benefits		Other Benefits		Pension Benefits		Other Benefits
	(In thousands)
Amounts recognized in accumulated other comprehensive loss at end of period:
Net actuarial loss (gain)	$	43,585	$	(81)	$	48,121	$	(66)

The accumulated benefit obligation for the Company’s defined benefit pension plans was $230.4 million and $236.1 million at March 26, 2023 and December 25, 2022, respectively. Each of the Company’s defined benefit pension plans had accumulated benefit obligations that exceeded the fair value of plan assets at both March 26, 2023 and December 25, 2022.

Net Periodic Benefit Costs

Net defined benefit pension and other postretirement costs included the following components:

	Three Months Ended
	March 26, 2023				March 27, 2022
	Pension Benefits		Other Benefits		Pension Benefits		Other Benefits
	(In thousands)
Interest cost	$	2,314	$	9	$	1,508	$	4
Estimated return on plan assets	(2,222)		—		(2,403)		—
Expenses paid from assets	94		—		115		—
Amortization of net loss	179		—		227		—
Amortization of past service cost	4		—		5		—
Net costs(a)	$	369	$	9	$	(548)	$	4

(a)    Net costs are included in the line item Miscellaneous, net on the Condensed Consolidated Statements of Income.

Economic Assumptions

The weighted average assumptions used in determining pension and other postretirement plan information were as follows:

	March 26, 2023				December 25, 2022
	Pension Benefits		Other Benefits		Pension Benefits		Other Benefits
Assumptions used to measure benefit obligation at end of period:
Discount rate	5.14	%	5.44	%	5.04	%	5.16	%

	Three Months Ended
	March 26, 2023				March 27, 2022
	Pension Benefits		Other Benefits		Pension Benefits		Other Benefits
Assumptions used to measure net pension and other postretirement cost:
Discount rate	5.04	%	5.16	%	2.23	%	2.38	%
Expected return on plan assets	4.97	%	NA		3.40	%	NA

Unrecognized Benefit Amounts in Accumulated Other Comprehensive Loss

The amounts in accumulated other comprehensive loss that were not recognized as components of net periodic benefits cost and the changes in those amounts are as follows:

	Three Months Ended
	March 26, 2023				March 27, 2022
	Pension Benefits		Other Benefits		Pension Benefits		Other Benefits
	(In thousands)
Net actuarial loss (gain), beginning of period	$	48,121	$	(66)	$	58,143	$	118
Amortization	(183)		—		(232)		—
Actuarial gain	(3,134)		(15)		(29,146)		(56)
Asset loss (gain)	(1,136)		—		20,649		—
Currency translation loss (gain)	(83)		—		27		—
Net actuarial loss (gain), end of period	$	43,585	$	(81)	$	49,441	$	62

Remeasurement

The Company remeasures both plan assets and obligations on a quarterly basis.

Defined Contribution Plans

The Company sponsors two defined contribution retirement savings plans in the U.S. reportable segment for eligible U.S. and Puerto Rico employees. The Company maintains three postretirement plans for eligible employees in the Mexico reportable segment, as required by Mexico law, which primarily cover termination benefits. The Company maintains seven defined contribution retirement savings plans in the U.K. and Europe reportable segment for eligible U.K. and Europe employees, as required by U.K. and Europe law. The Company’s expenses related to its defined contribution plans totaled $6.8 million in the three months ended March 26, 2023.

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FAIR VALUE MEASUREMENT

3 Months Ended

Mar. 26, 2023

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT

Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Assets and liabilities measured at fair value must be categorized into one of three different levels depending on the assumptions (i.e., inputs) used in the valuation:

Level 1	Unadjusted quoted prices available in active markets for identical assets or liabilities at the measurement date;
Level 2	Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability; or
Level 3	Unobservable inputs, such as discounted cash flow models or valuations.

The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement in its entirety.

As of March 26, 2023 and December 25, 2022, the Company held derivative assets and liabilities that were required to be measured at fair value on a recurring basis. Derivative assets and liabilities consist of long and short positions on exchange-traded commodity futures instruments, commodity options instruments, sales contracts instruments, foreign currency instruments to manage translation and remeasurement risk and interest rate swap instruments.

The following items were measured at fair value on a recurring basis:

	March 26, 2023						December 25, 2022
	Level 1		Level 2		Total		Level 1		Level 2		Total
	(In thousands)
Assets:
Commodity derivative assets	$	8,333	$	—	$	8,333	$	17,922	$	—	$	17,922
Foreign currency derivative assets	5,600		—		5,600		555		—		555
Sales contract derivative assets	—		459		459		—		—		—
Liabilities:
Commodity derivative liabilities	(26,437)		—		(26,437)		(9,042)		—		(9,042)
Foreign currency derivative liabilities	(405)		—		(405)		(6,170)		—		(6,170)
Sales contract derivative liabilities	—		—		—		—		(3,705)		(3,705)

See “Note 3. Derivative Financial Instruments” for additional information.

The valuation of financial assets and liabilities classified in Level 1 is based upon unadjusted quoted prices for identical assets or liabilities in active markets. The valuation of financial assets and liabilities in Level 2 is determined using a market approach based upon quoted prices for similar assets and liabilities in active markets or other inputs that are observable for substantially the full term of the financial instrument. The valuation of financial assets in Level 3 is determined using an income approach based on unobservable inputs such as discounted cash flow models or valuations. For each class of assets and liabilities not measured at fair value in the Condensed Consolidated Balance Sheets but for which fair value is disclosed, the Company is not required to provide the quantitative disclosure about significant unobservable inputs used in fair value measurements categorized within Level 3 of the fair value hierarchy.

In addition to the fair value disclosure requirements related to financial instruments carried at fair value, accounting standards require interim disclosures regarding the fair value of all of the Company’s financial instruments. The methods and significant assumptions used to estimate the fair value of financial instruments and any changes in methods or significant assumptions from prior periods are also required to be disclosed.

The carrying amounts and estimated fair values of our debt obligations recorded in the Condensed Consolidated Balance Sheets consisted of the following:

	March 26, 2023				December 25, 2022
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(In thousands)
Fixed-rate senior notes payable at 3.50%, at Level 2 inputs	$	(900,000)	$	(715,761)	$	(900,000)	$	(726,498)
Fixed-rate senior notes payable at 4.25%, at Level 2 inputs	(991,942)		(843,149)		(991,691)		(734,349)
Fixed-rate senior notes payable at 5.875%, at Level 2 inputs	(846,761)		(835,720)		(846,582)		(846,175)
Variable-rate term note payable at 5.00%, at Level 3 inputs	(473,750)		(501,774)		(480,078)		(489,857)
Variable-rate swingline note payable at 7.89%, at Level 3 inputs	(35,000)		(35,000)		—		—

See “Note 12. Debt” for additional information.

The carrying amounts of our cash and cash equivalents, restricted cash and restricted cash equivalents, accounts receivable, accounts payable and certain other liabilities approximate their fair values due to their relatively short maturities. Derivative assets were recorded at fair value based on quoted market prices and are included in the line item Prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets. Derivative liabilities were recorded at fair value based on quoted market prices and are included in the line item Accrued expenses and other current liabilities on the Condensed Consolidated Balance Sheets. The fair value of the Company’s Level 2 fixed-rate debt obligations was based on the quoted market price at March 26, 2023 or December 25, 2022, as applicable.

In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company records certain assets and liabilities at fair value on a nonrecurring basis. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges when required by U.S. GAAP. There were no significant fair value measurement losses recognized for such assets and liabilities in the periods reported.

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RESTRUCTURING-RELATED ACTIVITIES

3 Months Ended

Mar. 26, 2023

Restructuring and Related Activities [Abstract]

RESTRUCTURING-RELATED ACTIVITIES

RESTRUCTURING-RELATED ACTIVITIES

In 2022, the Company initiated restructuring initiatives to phase out and reduce processing volumes at multiple production facilities throughout the U.K. and Europe reportable segment. Implementation of this initiative is expected to result in total pre-tax charges of approximately $53.0 million, and approximately $47.7 million of these charges are estimated to result in cash outlays. These activities were initiated in the fourth quarter of 2022 and are expected to be substantially completed by the end of the second quarter of 2023.

The following table provides a summary of our estimates of costs associated with these restructuring initiatives by major type of cost:

	Moy Park		Pilgrim’s Pride Ltd.		Pilgrim’s Food Masters		Total
	(In thousands)
Earliest implementation date	October 2022		November 2022		December 2022
Expected completion date	June 2023		July 2023		July 2023
Costs incurred and expected to be incurred:
Employee-related costs	$	9,948	$	7,838	$	11,300	$	29,086
Asset impairment costs	9,173		—		—		9,173
Contract termination costs	124		1,518		3,067		4,709
Other exit and disposal costs (a)	481		2,203		7,550		10,234
Total exit and disposal costs	$	19,726	$	11,559	$	21,917	$	53,202
Cost incurred since earliest implementation date:
Employee-related costs	$	9,608	$	9,318	$	5,695	$	24,621
Asset impairment costs	3,559		—		—		3,559
Contract termination costs	122		—		—		122
Other exit and disposal costs (a)	6,036		2,126		2,028		10,190
Total exit and disposal costs	$	19,325	$	11,444	$	7,723	$	38,492

(a)Comprised of other costs directly related to the restructuring initiatives including Moy Park flock depletion, the write-off of Pilgrim’s Pride Ltd. prepaid maintenance costs and Pilgrim’s Food Masters consulting fees.

During the three months ended March 26, 2023, the Company recognized the following expenses and paid the following cash related to each restructuring initiative:

	Expenses		Cash Outlays
	(In thousands)
Moy Park	$	—	$	4,419
Pilgrim’s Pride Ltd.	1,304		3,588
Pilgrim’s Food Masters	6,722		6,146
	$	8,026	$	14,153

These expenses are reported in the line item Restructuring activities on the Condensed Consolidated Statements of Income.

The following table reconciles liabilities and reserves associated with each restructuring initiative from initiative inception to March 26, 2023. Ending liability balances for employee termination benefits and other charges are reported in the line item Accrued expenses and other current liabilities in our Condensed Consolidated Balance Sheets. The ending reserve balance for inventory impairments is reported in the line item Inventories in our Condensed Consolidated Balance Sheets. The ending reserve balance for asset impairments is reported in the line item Property, plant and equipment, net in our Condensed Consolidated Balance Sheets.

	Moy Park
	Liability or reserve as of December 25, 2022		Restructuring charges incurred		Cash payments and disposals		Currency translation		Liability or reserve as of March 26, 2023
	(In thousands)
Asset impairment	$	2,391	$	—	$	(2,837)	$	446	$	—
Inventory adjustments	1		—		(1)		—
Other charges	6,025		—		(1,539)		(356)		4,130
Contract termination	122		—		(42)		1		81
Total	$	8,539	$	—	$	(4,419)	$	91	$	4,211

	Pilgrim’s Pride Ltd.
	Liability or reserve as of December 25, 2022		Restructuring charges incurred		Cash payments and disposals		Currency translation		Liability or reserve as of March 26, 2023
	(In thousands)
Employee retention benefits	$	—	$	319	$	—	$	3	$	322
Severance	5,503		793		(3,588)		59		2,767
Inventory adjustments	615		49		—		9		673
Lease termination	800		—		—		12		812
Other charges	501		143		—		8		652
Total	$	7,419	$	1,304	$	(3,588)	$	91	$	5,226

	Pilgrim’s Food Masters
	Liability or reserve as of December 25, 2022		Restructuring charges incurred		Cash payments and disposals		Currency translation		Liability or reserve as of March 26, 2023
	(In thousands)
Severance	$	639	$	4,736	$	(5,379)	$	4	$	—
Inventory adjustments	—		542		(542)		—		—
Lease termination	—		1,219		—		26		1,245
Other charges	—		225		(225)		—		—
Total	$	639	$	6,722	$	(6,146)	$	30	$	1,245

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RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 26, 2023

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

Pilgrim’s has been and, in some cases, continues to be a party to certain transactions with affiliated companies.

	Three Months Ended
	March 26, 2023		March 27, 2022
	(In thousands)
Sales to related parties:
JBS USA Food Company(a)	$	7,512	$	4,611
JBS Chile Ltda.	946		52
Other related parties	877		1,215
Total sales to related parties	$	9,335	$	5,878

	Three Months Ended
	March 26, 2023		March 27, 2022
	(In thousands)
Cost of goods purchased from related parties:
JBS USA Food Company(a)	$	49,905	$	61,903
Seara Meats BV	4,999		1,468
Penasul UK LTD	4,187		3,540
JBS Asia Co Limited	911		2,124
Other related parties	897		62
Total cost of goods purchased from related parties	$	60,899	$	69,097

	Three Months Ended
	March 26, 2023		March 27, 2022
	(In thousands)
Expenditures paid by related parties:
JBS USA Food Company(b)	$	14,022	$	24,178

	Three Months Ended
	March 26, 2023		March 27, 2022
	(In thousands)
Expenditures paid on behalf of related parties:
JBS USA Food Company(b)	$	3,380	$	32,525
Other related parties	4		$	—
Total expenditures paid on behalf of related parties	$	3,384	$	32,525

	March 26, 2023		December 25, 2022
	(In thousands)
Accounts receivable from related parties:
JBS USA Food Company(a)	$	730	$	2,062
JBS Chile Ltda.	871		3
Other related parties	524		447
Total accounts receivable from related parties	$	2,125	$	2,512

	March 26, 2023		December 25, 2022
	(In thousands)
Accounts payable to related parties:
JBS USA Food Company(a)	$	9,917	$	7,434
Seara Meats BV	4,043		1,565
JBS Asia Co Limited	4,105		2,099
Penasul UK LTD	2,408		940
Other related parties	8		117
Total accounts payable to related parties	$	20,481	$	12,155

(a)    The Company routinely executes transactions to both purchase products from JBS USA Food Company (“JBS USA”) and sell products to them. As of March 26, 2023, goods purchased and in transit from JBS USA were immaterial and not reflected on our Condensed Consolidated Balance Sheet.

(b)    The Company has an agreement with JBS USA to allocate costs associated with JBS USA’s procurement of SAP licenses and maintenance services for its combined companies. Under this agreement, the fees associated with procuring SAP licenses and maintenance services are allocated between the Company and JBS USA in proportion to the percentage of licenses used by each company. The agreement expires on the date of expiration, or earlier termination, of the underlying SAP license agreement. The Company also has an agreement with JBS USA to allocate the costs of supporting the business operations by one consolidated corporate team, which have historically been supported by their respective corporate teams. Expenditures paid by JBS USA on behalf of the Company will be reimbursed by the Company and expenditures paid by the Company on behalf of JBS USA will be reimbursed by JBS USA. This agreement expires on December 31, 2023.

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REPORTABLE SEGMENTS

3 Months Ended

Mar. 26, 2023

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 Ended
	March 26, 2023(a)		March 27, 2022(b)
	(In thousands)
Net sales
U.S.	$	2,432,568	$	2,581,208
U.K. and Europe	1,239,264		1,191,982
Mexico	493,796		467,205
Total	$	4,165,628	$	4,240,395

(a)For the three months ended March 26, 2023, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $31.0 million. These sales consisted of fresh products, prepared products and grain.

(b)For the three months ended March 27, 2022, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $43.4 million. These sales consisted of fresh products, prepared products and grain.

	Three Months Ended
	March 26, 2023		March 27, 2022
	(In thousands)
Reportable segment profit (loss):
U.S.	$	(28,106)	$	355,075
U.K. and Europe	25,261		(21,640)
Mexico	34,175		68,564
Eliminations	13		14
Total operating income	31,343		402,013
Interest expense, net of capitalized interest	42,662		36,296
Interest income	(3,600)		(1,274)
Foreign currency transaction losses	18,143		11,536
Miscellaneous, net	(22,653)		(324)
Income (loss) before income taxes	(3,209)		355,779
Income tax expense (benefit)	(8,840)		75,219
Net income	$	5,631	$	280,560

	March 26, 2023		December 25, 2022
	(In thousands)
Total assets by reportable segment:
U.S.	$	6,813,350	$	6,847,209
U.K. and Europe	4,124,386		4,033,990
Mexico	1,302,434		1,292,056
Eliminations	(3,012,665)		(2,917,486)
Total assets	$	9,227,505	$	9,255,769

	March 26, 2023		December 25, 2022
	(In thousands)
Long-lived assets by reportable segment(a):
U.S.	$	1,983,051	$	1,943,967
U.K. and Europe	1,009,838		1,011,283
Mexico	298,242		295,069
Eliminations	(3,661)		(3,675)
Total long-lived assets	$	3,287,470	$	3,246,644

(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.

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COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 26, 2023

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

General

The Company is a party to many routine contracts in which it provides general indemnities in the normal course of business to third parties for various risks. Among other considerations, the Company has not recorded a liability for any of these indemnities because, based upon the likelihood of payment, the fair value of such indemnities would not have a material impact on its financial condition, results of operations and cash flows.

Financial Instruments

The Company’s loan agreements generally obligate the Company to reimburse the applicable lender for incremental increased costs due to a change in law that imposes (1) any reserve or special deposit requirement against assets of, deposits with or credit extended by such lender related to the loan, (2) any tax, duty or other charge with respect to the loan (except standard income tax) or (3) capital adequacy requirements. In addition, some of the Company’s loan agreements contain a withholding tax provision that requires the Company to pay additional amounts to the applicable lender or other financing party, generally if withholding taxes are imposed on such lender or other financing party as a result of a change in the applicable tax law. These increased cost and withholding tax provisions continue for the entire term of the applicable transaction and there is no limitation on the maximum additional amounts the Company could be obligated to pay under such provisions. Any failure to pay amounts due under such provisions generally would trigger an event of default and, in a secured financing transaction, would entitle the lender to foreclose upon the collateral to realize the amount due.

Litigation

The Company is subject to various legal proceedings and claims which arise in the ordinary course of business. In the Company’s opinion, it has made appropriate and adequate accruals for claims where necessary; however, the ultimate liability for these matters is uncertain, and if significantly different than the amounts accrued, the ultimate outcome could have a material effect on the financial condition or results of operations of the Company. The Company cannot predict the outcome of the litigation matters or other actions nor when they will be resolved. The consequences of the pending litigation matters are inherently uncertain, and settlements, adverse actions, or adverse judgments in some or all of these matters, including investigations by the U.S. Department of Justice (“DOJ”) or the Attorneys General, may result in monetary damages, fines, penalties, or injunctive relief against the Company, which could be material and could adversely affect its financial condition or results of operations. Any claims or litigation, even if fully indemnified or insured, could damage the Company’s reputation and make it more difficult to compete effectively or to obtain adequate insurance in the future. In addition, the U.S. government’s recent focus on market dynamics in the meat processing industry could expose the Company to additional costs and risks.

Tax Claims and Proceedings

During 2014 and 2015, the Mexican Tax Administration Service (“SAT”) opened a review of Avícola Pilgrim’s Pride de Mexico, S.A. de C.V. (“Avícola”) with regard to tax years 2009 and 2010. In both instances, the SAT claims that controlled company status did not exist for certain subsidiaries because Avícola did not own 50% of the shares in voting rights of Incubadora Hidalgo, S. de R.L de C.V. and Comercializadora de Carnes de México S. de R.L de C.V. (both in 2009) and Pilgrim’s Pride, S. de R.L. de C.V. (in 2010). As a result, according to the SAT, Avícola should have considered dividends paid out of these subsidiaries partially taxable since a portion of the dividend amount was not paid from the net tax profit account (CUFIN). Avícola appealed the opinion, and on January 31, 2023, the appeal as to tax year 2009 was dismissed by the Mexico Supreme Court. Accordingly, the Company has paid $25.9 million for tax year 2009. The opinion for tax year 2010 is still under appeal. Avícola has recorded a tax reserve of $15.8 million in connection therewith.

On May 12, 2022, the Mexican Tax Authorities issued tax assessments against Pilgrim’s Pride, S. de R.L. de C.V. and Provemex Holdings, LLC in connection with PPC’s acquisition of Tyson de México. Following the acquisition, PPC re-domiciled Provemex Holdings, LLC from the U.S. to Mexico. The tax authorities claim that Provemex Holdings, LLC was a Mexican entity at the time of the acquisition and, as a result, was obligated to pay taxes on the sale. The Mexican subsidiaries of PPC are currently appealing these assessments. Amounts under appeal are approximately $267.7 million for each of the two tax assessments. No loss has been recorded for these amounts at this time.

U.S. Litigation

Between September 2, 2016 and October 13, 2016, a series of federal class action lawsuits were filed with the U.S. District Court for the Northern District of Illinois (“Illinois Court”) against PPC and other defendants by and on behalf of direct and indirect purchasers of broiler chickens alleging violations of antitrust and unfair competition laws and styled as In re Broiler Chicken Antitrust Litigation, Case No. 1:16-cv-08637 (“Broiler Antitrust Litigation”). The complaints seek, among other relief, treble damages for an alleged conspiracy among defendants to reduce output and increase prices of broiler chickens from the period of January 2008 to the present. The class plaintiffs have filed three consolidated amended complaints: the direct purchasers (“Broiler DPPs”), the commercial and institutional indirect purchasers (“Broiler CIIPPs”), and the end-user consumer indirect purchasers (“Broiler EUCPs”). Between December 8, 2017 and September 1, 2021, 82 individual direct action complaints were filed with the Illinois Court by individual direct purchaser entities (“Broiler DAPs”) naming PPC as a defendant, the allegations of which largely mirror those in the class action complaints, though some added allegations of price fixing and bid rigging on certain sales. The Illinois Court issued a revised scheduling order for certain plaintiffs who limited their claims to reduction of output, which sets the first trial date on September 12, 2023. The schedule for the rest of the plaintiffs is still awaiting an order from the Illinois Court. On May 27, 2022, the Illinois Court certified each of the three classes. PPC has entered into agreements to settle all claims made by the Broiler DPPs, Broiler CIIPPs, and Broiler EUCPs, for an aggregate total of $195.5 million, each of which has received final approval from the Illinois Court. PPC continues to defend itself against the Broiler DAPs as well as parties that have opted out of the class settlements (collectively, the “Broiler Opt Outs”). PPC will seek reasonable settlements where they are available. To date, PPC has recognized an expense of $514.4 million to cover settlements with various Broiler Opt Outs. PPC recognized these settlement expenses in Selling, general and administrative expense (“SG&A expense”) in the Consolidated Statements of Income.

Between August 30, 2019 and October 16, 2019, a series of purported class action lawsuits were filed in the U.S. District Court for the District of Maryland (“Maryland Court”) against PPC and a number of other chicken producers, as well as Webber, Meng, Sahl & Company and Agri Stats. The plaintiffs are a putative class of poultry processing plant production and maintenance workers (“Poultry Workers Class”) and styled as Jien, et al. v. Perdue Farms, Inc., et al., No. 19-cv-02521 allege that the defendants conspired to fix and depress the compensation paid to Poultry Workers Class in violation of the Sherman Antitrust Act. Defendants moved to dismiss on December 18, 2020, which the Maryland Court denied on March 10, 2021. On June 14, 2021, PPC entered into an agreement to settle all claims made by the Poultry Workers Class for $29.0 million, though the agreement is still subject to final approval by the Maryland Court. On February 16, 2022, the plaintiffs filed an amended complaint, which extended the relevant period, added defendants, and included additional workers in the class. PPC recognizes these settlement expenses within SG&A expense in the Consolidated Statements of Income.

On January 27, 2017, a purported class action on behalf of broiler chicken farmers was brought against PPC and other chicken producers in the U.S. District Court for the Eastern District of Oklahoma (the “Oklahoma Court”) alleging, among other things, a conspiracy to reduce competition for grower services and depress the price paid to growers. The complaint was consolidated with several subsequently filed consolidated amended class action complaints and styled as In re Broiler Chicken Grower Litigation, Case No. CIV-17-033. The defendants (including PPC) jointly moved to dismiss the consolidated amended complaint, which the Oklahoma Court denied as to PPC and certain other defendants. PPC, therefore, continues to litigate against the putative class plaintiffs.

On October 20, 2016, Patrick Hogan, acting on behalf of himself and a putative class of certain PPC stockholders, filed a class action complaint in the U.S. District Court for the District of Colorado (“Colorado Court”) against PPC and its named executive officers styled as Hogan v. Pilgrim’s Pride Corporation, et al., No. 16-CV-02611 (“Hogan Litigation”). The complaint alleges, among other things, that PPC’s SEC filings contained statements that were rendered materially false and misleading by PPC’s failure to disclose that (1) PPC colluded with several of its industry peers to fix prices in the broiler chicken market as alleged in the Broilers Litigation, (2) its conduct constituted a violation of federal antitrust laws, and (3) PPC’s revenues during the class period were the result of illegal conduct. On July 31, 2020, defendants filed a motion to dismiss, which the Colorado Court granted on April 19, 2021. On May 17, 2021, the plaintiff filed a motion for amended judgment, which the Colorado Court denied on November 29, 2021. The plaintiff then filed a notice of appeal on December 28, 2021, and the appeal was opened in the U.S. Court of Appeals for the Tenth Circuit, which is now fully briefed, including oral argument on January 17, 2023, and is awaiting a decision.

Between March 9, 2017 and April 17, 2017, a series of putative stockholder derivative class actions were brought against all of PPC’s directors and two executives, William Lovette and Fabio Sandri, in the Nineteenth Judicial District Court for the County of Weld in Colorado (“Weld County Court”). The complaints allege, among other things, that the named defendants breached their fiduciary duties by failing to prevent PPC and its officers from engaging in an antitrust conspiracy as alleged in the Broiler Antitrust Litigation and issuing false and misleading statements as alleged in the Hogan Litigation. The complaints were amended and consolidated, adding former PPC executives Jayson Penn, Roger Austin, and Jimmie Little as named defendants, and styled as DiSalvio and Brima v. Tomazoni, et al., 2017 CV 30207. Following a series of stays in the action, PPC filed a motion to dismiss, which the Weld County Court granted in its entirety and with prejudice on December 12, 2022. On December 27, 2022, the plaintiffs filed a motion for reconsideration, which the Weld County Court denied on March 2, 2023. On March 15, 2023, the plaintiffs filed an additional motion for reconsideration. On April 25, 2023, the Weld County Court affirmed its dismissal of the case with prejudice.

U.S. State Matters

From February 21, 2017 through May 4, 2021, the Attorneys General for multiple U.S. states have issued civil investigative demands (“CIDs”). The CIDs request, among other things, data and information related to the acquisition and processing of broiler chickens and the sale of chicken products. PPC is cooperating with the Attorneys General in these states in producing documents pursuant to the CIDs.

On September 1, 2020, February 22, 2021, and October 28, 2021, the Attorneys General in New Mexico (State of New Mexico v. Koch Foods, et al., D-101-CV-2020-01891), Alaska (State of Alaska v. Agri Stats, Inc., et al., 3AN-21-04632), and Washington (State of Washington v. Tyson Foods Inc., et al., 21-2-14174-5), respectively, filed complaints against PPC based on allegations similar to those asserted in the Broiler Antitrust Litigation. PPC has answered all of the complaints and each case is now in discovery. On March 9, 2023, PPC entered into an agreement to settle all claims made by the State of Washington for $11.0 million.

U.S. Federal Matters

On February 9, 2022, the Company learned that the DOJ opened a civil investigation into human resources antitrust matters, and on October 6, 2022, the Company learned that the DOJ opened a civil investigation into grower contracts and payment practices. The Company is cooperating with the DOJ in its investigations. The DOJ has informed the Company that it is likely to file a civil complaint pursuant to at least one of these investigations.

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BUSINESS INTERRUPTION INSURANCE	3 Months Ended
	Mar. 26, 2023
Unusual or Infrequent Items, or Both [Abstract]
BUSINESS INTERRUPTION INSURANCE	BUSINESS INTERRUPTION INSURANCEThe Company experienced business interruptions from the COVID-19 pandemic and a tornado on December 10, 2021 in Mayfield, Kentucky that significantly damaged two hatcheries and a feed mill. The Company maintains certain insurance coverage, including business interruption insurance, intended to cover such circumstances. In the three months ended March 26, 2023, the Company received $1.2 million in proceeds from business interruption insurance. In the three months ended March 26, 2023, the Company recognized $35.9 million in income from business interruption insurance in Cost of sales on the Condensed Consolidated Statement of Income, with $25.3 million in the U.S. reportable segment and $10.6 million in the U.K. and Europe reportable segment.

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BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 26, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidated Financial Statements

Condensed Consolidated Financial Statements

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal and recurring adjustments unless otherwise disclosed) considered necessary for a fair presentation have been included. Operating results for the three months ended March 26, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 25, 2022.

The Company operates on the basis of a 52/53 week fiscal year ending on the Sunday falling on or before December 31. Any reference we make to a particular year (for example, 2023) in the notes to these Condensed Consolidated Financial Statements applies to our fiscal year and not the calendar year. The three months ended March 26, 2023 represents the period from December 26, 2022 through March 26, 2023. The three months ended March 27, 2022 represents the period from December 27, 2021 through March 27, 2022.

The Condensed Consolidated Financial Statements include the accounts of the Company and its majority-owned subsidiaries. We eliminate all significant affiliate accounts and transactions upon consolidation.

The Condensed Consolidated Financial Statements have been prepared in conformity with U.S. GAAP using management’s best estimates and judgments. These estimates and judgments affect the reported amounts of assets and liabilities and disclosure of the contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ materially from these estimates and judgments. Significant estimates made by the Company include the allowance for credit losses, reserves related to inventory obsolescence or valuation, useful lives of long-lived assets, goodwill, valuation of deferred tax assets, insurance accruals, valuation of pension and other postretirement benefits obligations, income tax accruals, certain derivative positions, certain litigation reserves and valuations of acquired businesses.

Foreign Currency Transactions and Translations

The functional currency of the Company’s U.S. and Mexico operations and certain holding-company subsidiaries in Luxembourg, the U.K., Malta and the Republic of Ireland is the U.S. dollar. The functional currency of its U.K. operations is the British pound. The functional currency of the Company’s operations in France, the Netherlands and the Republic of Ireland is the euro. For foreign currency-denominated entities other than the Company’s Mexico operations, translation from local currencies into U.S. dollars is performed for most assets and liabilities using the exchange rates in effect as of the balance sheet date. Income and expense accounts are remeasured using average exchange rates for the period. Adjustments resulting from translation of these financial records are reflected as a separate component of Accumulated other comprehensive loss in the Condensed Consolidated Balance Sheets. For the Company’s Mexico operations, remeasurement from the Mexican peso to U.S. dollars is performed for monetary assets and liabilities using the exchange rate in effect as of the balance sheet date. Remeasurement is performed for non-monetary assets using the historical exchange rate in effect on the date of each asset’s acquisition. Income and expense accounts are remeasured using average exchange rates for the period. Net adjustments resulting from remeasurement of these financial records, as well as foreign currency transaction gains and losses, are reflected in Foreign currency transaction losses in the Condensed Consolidated Statements of Income.

Restricted Cash

Restricted Cash and Restricted Cash Equivalents

The Company is required to maintain cash balances with a broker as collateral for exchange-traded futures contracts. These balances are classified as restricted cash as they are not available for use by the Company to fund daily operations. The balance of restricted cash and restricted cash equivalents may also include investments in U.S. Treasury Bills that qualify as restricted cash equivalents, as required by the broker, to offset the obligation to return cash collateral.

Recent Accounting Pronouncements

Accounting Pronouncements Adopted in 2023

In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations, which requires disclosure of the existence of supplier financing programs. The guidance requires disclosure about the nature of the supplier financing agreements, including key terms and payment timing and determination of amounts, the accounting treatment for the transactions and the effect of the transactions on the financial statements, as well as any assets pledged or guarantees provided to the providers of the financing programs. The provisions of the new guidance were effective for years beginning after December 15, 2022 with the requirement to add rollforward disclosures for years beginning after December 15, 2023. The Company adopted this guidance effective December 26, 2022. The adoption of this guidance did not have a material impact on our Condensed Consolidated Financial Statements. Additional information regarding supplier finance programs is included in “Note 10. Supplier Finance Programs.”

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions to the application of current GAAP to existing contracts, hedging relationships and other transactions affected by reference rate reform. The new guidance will ease the transition to new reference rates by allowing entities to update contracts and hedging relationships without applying many of the contract modification requirements specific to those contracts. The provisions of the new guidance are effective beginning March 12, 2020, extending through December 31, 2022 with the option to apply the guidance at any point during that time period. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848), which provides further clarification on the scope of Topic 848 so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions in Topic 848. Once an entity elects an expedient or exception it must be applied to all eligible contracts or transactions. We currently have hedging transactions and debt agreements that reference LIBOR and will apply the new guidance as these contracts are modified to reference other rates. The Company adopted this guidance effective December 26, 2022. The adoption did not have a material impact on our Condensed Consolidated Financial Statements.

Revenue

The vast majority of the Company’s revenue is derived from contracts which are based upon a customer ordering our products. While there may be master agreements, the contract is only established when the customer’s order is accepted by the Company. The Company accounts for a contract, which may be verbal or written, when it is approved and committed by both parties, the rights of the parties are identified along with payment terms, the contract has commercial substance and collectability is probable.

The Company evaluates the transaction for distinct performance obligations, which are the sale of its products to customers. Since its products are commodity market-priced, the sales price is representative of the observable, standalone selling price. Each performance obligation is recognized based upon a pattern of recognition that reflects the transfer of control to the customer at a point in time, which is upon destination (customer location or port of destination), which faithfully depicts the transfer of control and recognition of revenue. There are instances of customer pick-up at the Company’s facility, in which case control transfers to the customer at that point and the Company recognizes revenue. The Company’s performance obligations are typically fulfilled within days to weeks of the acceptance of the order.

The Company makes judgments regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from revenue and cash flows with customers. Determination of a contract requires evaluation and judgment along with the estimation of the total contract value and if any of the contract value is constrained. Due to the nature of our business, there is minimal variable consideration, as the contract is established at the acceptance of the order from the customer. When applicable, variable consideration is estimated at contract inception and updated on a regular basis until the contract is completed. Allocating the transaction price to a specific performance obligation based upon the relative standalone selling prices includes estimating the standalone selling prices including discounts and variable consideration.

Contract Costs

The Company can incur incremental costs to obtain or fulfill a contract such as broker expenses that are not expected to be recovered. The amortization period for such expenses is less than one year; therefore, the costs are expensed as incurred.

Taxes

The Company excludes all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the entity from a customer (for example, sales, use, value added and some excise taxes) from the transaction price.

Contract Balances

The Company receives payment from customers based on terms established with the customer. Payments are typically due within 14 to 30 days of delivery. Revenue contract liabilities relate to payments received in advance of satisfying the performance under the customer contract. The revenue contract liabilities relate to customer prepayments and the advanced consideration, such as cash, received from governmental agency contracts for which performance obligations to the end customer have not been satisfied.

Accounts Receivable

Accounts Receivable The Company records accounts receivable when revenue is recognized. We record an allowance for credit losses, reducing our receivables balance to an amount we estimate is collectible from our customers. Estimates used in determining the allowance for credit losses are based on historical collection experience, current trends, aging of accounts receivable and periodic credit evaluations of our customers’ financial condition. We write off accounts receivable when it becomes apparent, based upon age or customer circumstances, that such amounts will not be collected. Generally, the Company does not require collateral for its accounts receivable.

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BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 26, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Cash and Cash Equivalents

The following table reconciles cash, cash equivalents, restricted cash and restricted cash equivalents as reported in the Condensed Consolidated Balance Sheets to the total of the same amounts shown in the Condensed Consolidated Statements of Cash Flows:

	March 26, 2023		December 25, 2022
	(In thousands)
Cash and cash equivalents	$	150,687	$	400,988
Restricted cash and restricted cash equivalents	33,879		33,771
Total cash, cash equivalents, restricted cash and restricted cash equivalents shown in the Condensed Consolidated Statements of Cash Flows	$	184,566	$	434,759

Schedule of Restricted Cash and Cash Equivalents

The following table reconciles cash, cash equivalents, restricted cash and restricted cash equivalents as reported in the Condensed Consolidated Balance Sheets to the total of the same amounts shown in the Condensed Consolidated Statements of Cash Flows:

	March 26, 2023		December 25, 2022
	(In thousands)
Cash and cash equivalents	$	150,687	$	400,988
Restricted cash and restricted cash equivalents	33,879		33,771
Total cash, cash equivalents, restricted cash and restricted cash equivalents shown in the Condensed Consolidated Statements of Cash Flows	$	184,566	$	434,759

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REVENUE RECOGNITION (Tables)

3 Months Ended

Mar. 26, 2023

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregated Revenue

Revenue has been disaggregated into the categories below to show how economic factors affect the nature, amount, timing and uncertainty of revenue and cash flows:

	Three Months Ended March 26, 2023
	(In thousands)
	Fresh		Prepared		Export		Other		Total
U.S.	$	1,943,786	$	244,801	$	128,275	$	115,706	$	2,432,568
U.K. and Europe	264,663		831,729		117,621		25,251		1,239,264
Mexico	411,919		46,356		—		35,521		493,796
Total net sales	$	2,620,368	$	1,122,886	$	245,896	$	176,478	$	4,165,628

	Three Months Ended March 27, 2022
	(In thousands)
	Fresh		Prepared		Export		Other		Total
U.S.	$	2,087,621	$	255,087	$	133,797	$	104,703	$	2,581,208
U.K. and Europe	237,309		746,636		173,411		34,626		1,191,982
Mexico	410,420		36,141		—		20,644		467,205
Total net sales	$	2,735,350	$	1,037,864	$	307,208	$	159,973	$	4,240,395

Changes in Revenue Contract Liability

Changes in the revenue contract liabilities balance are as follows (in thousands):

Balance as of December 25, 2022	$	34,486
Revenue recognized	(20,183)
Cash received, excluding amounts recognized as revenue during the period	33,463
Balance as of March 26, 2023	$	47,766

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DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 26, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Outstanding Derivative Instruments and Cash Collateral

Information regarding the Company’s outstanding derivative instruments and cash collateral posted with brokers is included in the following table:

	March 26, 2023			December 25, 2022
	(In thousands)
Fair values:
Commodity derivative assets	$	8,333		$	17,922
Commodity derivative liabilities	(26,437)			(9,042)
Foreign currency derivative assets	5,600			555
Foreign currency derivative liabilities	(405)			(6,170)
Sales contract derivative assets	459			—
Sales contract derivative liabilities	—			(3,705)
Cash collateral posted with brokers(a)	33,879			33,771
Derivatives coverage(b):
Corn	12.1		%	14.4		%
Soybean meal	10.0		%	10.1		%
Period through which stated percent of needs are covered:
Corn	March 2024			December 2023
Soybean meal	July 2024			December 2023

(a)Collateral posted with brokers consists primarily of cash, short-term treasury bills or other cash equivalents.

(b)Derivatives coverage is the percent of anticipated commodity needs covered by outstanding derivative instruments through a specified date.

Schedule of Derivative Gain (Loss)

The following table presents the gains and losses of each derivative instrument held by the Company not designated or qualifying as hedging instruments:

	Three Months Ended
Gains (Losses) by Type of Contract (a)	March 26, 2023		March 27, 2022		Affected Line Item in the Condensed Consolidated Statements of Income
	(In thousands)
Foreign currency derivatives	$	(19,104)	$	(13,300)	Foreign currency transaction losses
Commodity derivatives	(16,534)		31,540		Cost of sales
Sales contract derivative liabilities	4,164		(8,666)		Net sales
Total	$	(31,474)	$	9,574

(a)Amounts represent income (expenses) related to results of operations.

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The following tables present the components of the gain or loss on derivatives that qualify as cash flow hedges:

	Gains Recognized in Other Comprehensive Income
	Three Months Ended
	March 26, 2023		March 27, 2022
	(In thousands)
Foreign currency derivatives	$	16	$	523

Schedule of Derivatives Line Item in Condensed Consolidated Statements of Income

	Gains (Losses) Reclassified from AOCI into Income
	Three Months Ended March 26, 2023						Three Months Ended March 27, 2022
	Net sales(a)		Cost of sales(b)		Interest expense, net of capitalized interest(b)		Net sales(a)		Cost of sales(b)		Interest expense, net of capitalized interest(b)
	(In thousands)
Total amounts of income and expense line items presented in the Condensed Consolidated Statements of Income in which the effects of cash flow hedges are recorded	$	4,165,628	$	3,992,581	$	42,662	$	4,240,395	$	3,698,415	$	36,296
Impact from cash flow hedging instruments:
Foreign currency derivatives	120		56		—		32		91		—
Interest rates swap derivatives	—		—		—		—		—		98

(a)    Amounts represent income (expenses) related to net sales.

(b)    Amounts represent expenses (income) related to cost of sales and interest expense.

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TRADE ACCOUNTS AND OTHER RECEIVABLES (Tables)

3 Months Ended

Mar. 26, 2023

Accounts Receivable, after Allowance for Credit Loss [Abstract]

Schedule of Trade Accounts and Other Receivables, and Allowance for Doubtful Accounts

Trade accounts and other receivables, less allowance for credit losses, consisted of the following:

	March 26, 2023		December 25, 2022
	(In thousands)
Trade accounts receivable	$	1,071,202	$	984,332
Notes receivable from third parties	13,599		33,477
Other receivables	161,737		88,962
Receivables, gross	1,246,538		1,106,771
Allowance for credit losses	(9,172)		(9,559)
Receivables, net	$	1,237,366	$	1,097,212
Accounts receivable from related parties(a)	$	2,125	$	2,512

(a)    Additional information regarding accounts receivable from related parties is included in “Note 17. Related Party Transactions.”

Activity in the allowance for credit losses was as follows:

	Three Months Ended
	March 26, 2023
	(In thousands)
Balance, beginning of period	$	(9,559)
Provision charged to operating results	(525)
Account write-offs and recoveries	1,149
Effect of exchange rate	(237)
Balance, end of period	$	(9,172)

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INVENTORIES (Tables)

3 Months Ended

Mar. 26, 2023

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories consisted of the following:

	March 26, 2023		December 25, 2022
	(In thousands)
Raw materials and work-in-process	$	1,256,009	$	1,204,092
Finished products	592,772		596,375
Operating supplies	74,347		95,367
Maintenance materials and parts	98,982		94,350
Total inventories	$	2,022,110	$	1,990,184

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INVESTMENTS IN SECURITIES (Tables)

3 Months Ended

Mar. 26, 2023

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-For-Sale Securities

The following table summarizes our investments in available-for-sale securities:

	March 26, 2023				December 25, 2022
	Cost		Fair Value		Cost		Fair Value
	(In thousands)
Cash equivalents:
Fixed income securities	$	77,131	$	77,131	$	167,366	$	167,430

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GOODWILL AND INTANGIBLE ASSETS (Tables)

3 Months Ended

Mar. 26, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill by Segment

The activity in goodwill by segment for the three months ended March 26, 2023 was as follows:

	December 25, 2022		Currency Translation		March 26, 2023
	(In thousands)
U.S.	$	41,936	$	—	$	41,936
U.K. and Europe	1,058,204		15,669		1,073,873
Mexico	127,804		—		127,804
Total	$	1,227,944	$	15,669	$	1,243,613

Schedule of Indefinite and Finite-Lived Intangible Assets

Intangible assets consisted of the following:

	December 25, 2022		Amortization		Currency Translation		March 26, 2023
	(In thousands)
Cost:
Trade names not subject to amortization	$	549,024	$	—	$	8,274	$	557,298
Trade names subject to amortization	112,057		—		447		112,504
Customer relationships	427,662		—		3,882		431,544
Accumulated amortization:
Trade names	(53,708)		(943)		(37)		(54,688)
Customer relationships	(189,015)		(7,350)		(1,398)		(197,763)
Intangible assets, net	$	846,020	$	(8,293)	$	11,168	$	848,895

Schedule of Intangible Assets Amortization and Estimated Useful Lives

Intangible assets are amortized over the estimated useful lives of the assets as follows:

Customer relationships	3-18 years
Trade names subject to amortization	15-20 years

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PROPERTY, PLANT AND EQUIPMENT (Tables)

3 Months Ended

Mar. 26, 2023

Property, Plant and Equipment [Abstract]

Schedule of Property, Plant and Equipment

Property, plant and equipment (“PP&E”), net consisted of the following:

	March 26, 2023		December 25, 2022
	(In thousands)
Land	$	267,245	$	263,494
Buildings	2,090,190		2,065,042
Machinery and equipment	3,739,808		3,651,464
Autos and trucks	84,830		77,865
Finance lease assets	5,710		5,710
Construction-in-progress	373,325		358,819
PP&E, gross	6,561,108		6,422,394
Accumulated depreciation	(3,563,813)		(3,481,548)
PP&E, net	$	2,997,295	$	2,940,846

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CURRENT LIABILITIES (Tables)

3 Months Ended

Mar. 26, 2023

Payables and Accruals [Abstract]

Schedule of Current Liabilities

Current liabilities, other than income taxes and current maturities of long-term debt, consisted of the following components:

	March 26, 2023		December 25, 2022
	(In thousands)
Accounts payable:
Trade accounts payable	$	1,424,819	$	1,476,552
Book overdrafts	74,794		93,800
Other payables	17,857		17,587
Total accounts payable	1,517,470		1,587,939
Accounts payable to related parties(a)	20,481		12,155
Revenue contract liabilities(b)	47,766		34,486
Accrued expenses and other current liabilities:
Compensation and benefits	203,526		258,098
Litigation settlements(c)	110,430		99,230
Current maturities of operating lease liabilities	75,613		79,222
Accrued sales rebates	71,880		55,002
Insurance and self-insured claims	70,447		72,453
Interest and debt-related fees	48,292		32,433
Taxes	34,685		33,550
Derivative liabilities(d)	26,842		18,917
Other accrued expenses	221,038		201,994
Total accrued expenses and other current liabilities	862,753		850,899
Total	$	2,448,470	$	2,485,479

(a)    Additional information regarding accounts payable to related parties is included in “Note 17. Related Party Transactions.”

(b)    Additional information regarding revenue contract liabilities is included in “Note 2. Revenue Recognition.”

(c)    Additional information regarding litigation settlements is included in “Note 19. Commitments and Contingencies.”

(d)    Additional information regarding derivative liabilities is included in “Note 3. Derivative Financial Instruments.”

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DEBT (Tables)

3 Months Ended

Mar. 26, 2023

Debt Disclosure [Abstract]

Schedule of Long-term Debt

Long-term debt and other borrowing arrangements, including current notes payable to banks, consisted of the following components:

	Maturity	March 26, 2023		December 25, 2022
		(In thousands)
Senior notes payable at 3.50%	2032	$	900,000	$	900,000
Senior notes payable, net of discount, at 4.25%	2031	991,942		991,692
Senior notes payable, net of discount, at 5.875%	2027	846,761		846,582
U.S. Credit Facility (defined below):
Term note payable at 6.19%	2026	473,750		480,078
Revolving note payable at 7.89%	2026	35,000		—
U.K. and Europe Revolving Facility (defined below) with notes payable at SONIA plus 1.25%	2027	—		—
Mexico Credit Facility (defined below) with notes payable at TIIE plus 1.50%	2023	—		—
Finance lease obligations	Various	3,426		3,624
Long-term debt		3,250,879		3,221,976
Less: Current maturities of long-term debt		(26,326)		(26,279)
Long-term debt, less current maturities		3,224,553		3,195,697
Less: Capitalized financing costs		(27,938)		(29,265)
Long-term debt, less current maturities, net of capitalized financing costs		$	3,196,615	$	3,166,432

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STOCKHOLDERS' EQUITY (Tables)

3 Months Ended

Mar. 26, 2023

Equity [Abstract]

Schedule of Changes in Accumulated Other Comprehensive Loss

The following tables provide information regarding the changes in accumulated other comprehensive income (loss):

	Three Months Ended March 26, 2023
	Gains (Losses) Related to Foreign Currency Translation		Losses on Derivative Financial Instruments Classified as Cash Flow Hedges		Losses Related to Pension and Other Postretirement Benefits		Gains (Losses) on Available-for-Sale Securities		Total
	(In thousands)
Balance, beginning of period	$	(269,825)	$	(1,162)	$	(65,447)	$	(14)	$	(336,448)
Other comprehensive income before reclassifications	42,644		16		3,652		30		46,342
Amounts reclassified from accumulated other comprehensive loss (gain) to net income	—		(64)		139		(13)		62
Currency translation	—		2		—		—		2
Net current period other comprehensive income (loss)	42,644		(46)		3,791		17		46,406
Balance, end of period	$	(227,181)	$	(1,208)	$	(61,656)	$	3	$	(290,042)

	Three Months Ended March 27, 2022
	Gains (Losses) Related to Foreign Currency Translation		Losses on Derivative Financial Instruments Classified as Cash Flow Hedges		Losses Related to Pension and Other Postretirement Benefits		Gains (Losses) on Available-for-Sale Securities		Total
	(In thousands)
Balance, beginning of period	$	27,241	$	(2,365)	$	(72,873)	$	—	$	(47,997)
Other comprehensive income (loss) before reclassifications	(58,202)		523		6,479		—		(51,200)
Amounts reclassified from accumulated other comprehensive loss to net income	—		115		175		—		290
Currency translation	—		5		—		—		5
Net current period other comprehensive income (loss)	(58,202)		643		6,654		—		(50,905)
Balance, end of period	$	(30,961)	$	(1,722)	$	(66,219)	$	—	$	(98,902)

Schedule of Reclassification from Accumulated Other Comprehensive Loss

	Amount Reclassified from Accumulated Other Comprehensive Loss(a)
Details about Accumulated Other Comprehensive Loss Components	Three Months Ended March 26, 2023		Three Months Ended March 27, 2022		Affected Line Item in the Condensed Consolidated Statements of Income
	(In thousands)
Realized gains on settlement of foreign currency derivatives classified as cash flow hedges	$	120	$	32	Net sales
Realized losses on settlement of foreign currency derivatives classified as cash flow hedges	(56)		(91)		Cost of sales
Realized gain on sale of securities	18		—		Interest Income
Realized losses on settlement of interest rate swap derivatives classified as cash flow hedges	—		(98)		Interest expense, net of capitalized interest
Amortization of pension and other postretirement plan actuarial losses(b)	(182)		(232)		Miscellaneous, net
Total before tax	(100)		(389)
Tax expense	38		99
Total reclassification for the period	$	(62)	$	(290)

(a)    Positive amounts represent income to the results of operations while amounts in parentheses represent expenses to the results of operations.

(b)    These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See “Note 14. Pension and Other Postretirement Benefits.”

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PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)

3 Months Ended

Mar. 26, 2023

Retirement Benefits [Abstract]

Schedule of Defined Benefit Plan Obligations and Assets

The change in benefit obligation, change in fair value of plan assets, funded status and amounts recognized in the Condensed Consolidated Balance Sheets for the defined benefit plans were as follows:

	Three Months Ended
	March 26, 2023				March 27, 2022
	Pension Benefits		Other Benefits		Pension Benefits		Other Benefits
	(In thousands)
Change in projected benefit obligation:
Projected benefit obligation, beginning of period	$	236,147	$	1,169	$	373,062	$	1,346
Interest cost	2,314		9		1,508		4
Actuarial gain	(3,134)		(15)		(29,146)		(56)
Benefits paid	(3,838)		(29)		(4,810)		(26)
Currency translation loss (gain)	(1,082)		—		161		—
Projected benefit obligation, end of period	$	230,407	$	1,134	$	340,775	$	1,268

	Three Months Ended
	March 26, 2023				March 27, 2022
	Pension Benefits		Other Benefits		Pension Benefits		Other Benefits
	(In thousands)
Change in plan assets:
Fair value of plan assets, beginning of period	$	210,133	$	—	$	326,409	$	—
Actual return on plan assets	3,357		—		(18,246)		—
Contributions by employer	2,109		29		3,287		26
Benefits paid	(3,838)		(29)		(4,810)		(26)
Expenses paid from assets	(94)		—		(115)		—
Currency translation gain (loss)	(1,012)		—		116		—
Fair value of plan assets, end of period	$	210,655	$	—	$	306,641	$	—

	March 26, 2023				December 25, 2022
	Pension Benefits		Other Benefits		Pension Benefits		Other Benefits
	(In thousands)
Funded status:
Unfunded benefit obligation, end of period	$	(19,752)	$	(1,134)	$	(26,014)	$	(1,169)

	March 26, 2023				December 25, 2022
	Pension Benefits		Other Benefits		Pension Benefits		Other Benefits
	(In thousands)
Amounts recognized in the Condensed Consolidated Balance Sheets at end of period:
Current liability	$	(794)	$	(148)	$	(841)	$	(177)
Long-term liability	(18,958)		(986)		(25,173)		(992)
Recognized liability	$	(19,752)	$	(1,134)	$	(26,014)	$	(1,169)

	March 26, 2023				December 25, 2022
	Pension Benefits		Other Benefits		Pension Benefits		Other Benefits
	(In thousands)
Amounts recognized in accumulated other comprehensive loss at end of period:
Net actuarial loss (gain)	$	43,585	$	(81)	$	48,121	$	(66)

Schedule of Net Defined Benefit Pension and Other Postretirement Costs

Net defined benefit pension and other postretirement costs included the following components:

	Three Months Ended
	March 26, 2023				March 27, 2022
	Pension Benefits		Other Benefits		Pension Benefits		Other Benefits
	(In thousands)
Interest cost	$	2,314	$	9	$	1,508	$	4
Estimated return on plan assets	(2,222)		—		(2,403)		—
Expenses paid from assets	94		—		115		—
Amortization of net loss	179		—		227		—
Amortization of past service cost	4		—		5		—
Net costs(a)	$	369	$	9	$	(548)	$	4

(a)    Net costs are included in the line item Miscellaneous, net on the Condensed Consolidated Statements of Income.

Schedule of Economic Assumptions, and Impact of Change in Discount Rate on Benefit Obligation

The weighted average assumptions used in determining pension and other postretirement plan information were as follows:

	March 26, 2023				December 25, 2022
	Pension Benefits		Other Benefits		Pension Benefits		Other Benefits
Assumptions used to measure benefit obligation at end of period:
Discount rate	5.14	%	5.44	%	5.04	%	5.16	%

	Three Months Ended
	March 26, 2023				March 27, 2022
	Pension Benefits		Other Benefits		Pension Benefits		Other Benefits
Assumptions used to measure net pension and other postretirement cost:
Discount rate	5.04	%	5.16	%	2.23	%	2.38	%
Expected return on plan assets	4.97	%	NA		3.40	%	NA

Schedule of Unrecognized Benefit Amounts

The amounts in accumulated other comprehensive loss that were not recognized as components of net periodic benefits cost and the changes in those amounts are as follows:

	Three Months Ended
	March 26, 2023				March 27, 2022
	Pension Benefits		Other Benefits		Pension Benefits		Other Benefits
	(In thousands)
Net actuarial loss (gain), beginning of period	$	48,121	$	(66)	$	58,143	$	118
Amortization	(183)		—		(232)		—
Actuarial gain	(3,134)		(15)		(29,146)		(56)
Asset loss (gain)	(1,136)		—		20,649		—
Currency translation loss (gain)	(83)		—		27		—
Net actuarial loss (gain), end of period	$	43,585	$	(81)	$	49,441	$	62

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FAIR VALUE MEASUREMENT (Tables)

3 Months Ended

Mar. 26, 2023

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured on a Recurring Basis

The following items were measured at fair value on a recurring basis:

	March 26, 2023						December 25, 2022
	Level 1		Level 2		Total		Level 1		Level 2		Total
	(In thousands)
Assets:
Commodity derivative assets	$	8,333	$	—	$	8,333	$	17,922	$	—	$	17,922
Foreign currency derivative assets	5,600		—		5,600		555		—		555
Sales contract derivative assets	—		459		459		—		—		—
Liabilities:
Commodity derivative liabilities	(26,437)		—		(26,437)		(9,042)		—		(9,042)
Foreign currency derivative liabilities	(405)		—		(405)		(6,170)		—		(6,170)
Sales contract derivative liabilities	—		—		—		—		(3,705)		(3,705)

Schedule of Carrying Amounts and Estimated Fair Values of Fixed-Rate Debt Obligation

The carrying amounts and estimated fair values of our debt obligations recorded in the Condensed Consolidated Balance Sheets consisted of the following:

	March 26, 2023				December 25, 2022
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(In thousands)
Fixed-rate senior notes payable at 3.50%, at Level 2 inputs	$	(900,000)	$	(715,761)	$	(900,000)	$	(726,498)
Fixed-rate senior notes payable at 4.25%, at Level 2 inputs	(991,942)		(843,149)		(991,691)		(734,349)
Fixed-rate senior notes payable at 5.875%, at Level 2 inputs	(846,761)		(835,720)		(846,582)		(846,175)
Variable-rate term note payable at 5.00%, at Level 3 inputs	(473,750)		(501,774)		(480,078)		(489,857)
Variable-rate swingline note payable at 7.89%, at Level 3 inputs	(35,000)		(35,000)		—		—

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RESTRUCTURING-RELATED ACTIVITIES (Tables)

3 Months Ended

Mar. 26, 2023

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs

The following table provides a summary of our estimates of costs associated with these restructuring initiatives by major type of cost:

	Moy Park		Pilgrim’s Pride Ltd.		Pilgrim’s Food Masters		Total
	(In thousands)
Earliest implementation date	October 2022		November 2022		December 2022
Expected completion date	June 2023		July 2023		July 2023
Costs incurred and expected to be incurred:
Employee-related costs	$	9,948	$	7,838	$	11,300	$	29,086
Asset impairment costs	9,173		—		—		9,173
Contract termination costs	124		1,518		3,067		4,709
Other exit and disposal costs (a)	481		2,203		7,550		10,234
Total exit and disposal costs	$	19,726	$	11,559	$	21,917	$	53,202
Cost incurred since earliest implementation date:
Employee-related costs	$	9,608	$	9,318	$	5,695	$	24,621
Asset impairment costs	3,559		—		—		3,559
Contract termination costs	122		—		—		122
Other exit and disposal costs (a)	6,036		2,126		2,028		10,190
Total exit and disposal costs	$	19,325	$	11,444	$	7,723	$	38,492

(a)Comprised of other costs directly related to the restructuring initiatives including Moy Park flock depletion, the write-off of Pilgrim’s Pride Ltd. prepaid maintenance costs and Pilgrim’s Food Masters consulting fees.

During the three months ended March 26, 2023, the Company recognized the following expenses and paid the following cash related to each restructuring initiative:

	Expenses		Cash Outlays
	(In thousands)
Moy Park	$	—	$	4,419
Pilgrim’s Pride Ltd.	1,304		3,588
Pilgrim’s Food Masters	6,722		6,146
	$	8,026	$	14,153

Schedule of Restructuring Reserve

The following table reconciles liabilities and reserves associated with each restructuring initiative from initiative inception to March 26, 2023. Ending liability balances for employee termination benefits and other charges are reported in the line item Accrued expenses and other current liabilities in our Condensed Consolidated Balance Sheets. The ending reserve balance for inventory impairments is reported in the line item Inventories in our Condensed Consolidated Balance Sheets. The ending reserve balance for asset impairments is reported in the line item Property, plant and equipment, net in our Condensed Consolidated Balance Sheets.

	Moy Park
	Liability or reserve as of December 25, 2022		Restructuring charges incurred		Cash payments and disposals		Currency translation		Liability or reserve as of March 26, 2023
	(In thousands)
Asset impairment	$	2,391	$	—	$	(2,837)	$	446	$	—
Inventory adjustments	1		—		(1)		—
Other charges	6,025		—		(1,539)		(356)		4,130
Contract termination	122		—		(42)		1		81
Total	$	8,539	$	—	$	(4,419)	$	91	$	4,211

	Pilgrim’s Pride Ltd.
	Liability or reserve as of December 25, 2022		Restructuring charges incurred		Cash payments and disposals		Currency translation		Liability or reserve as of March 26, 2023
	(In thousands)
Employee retention benefits	$	—	$	319	$	—	$	3	$	322
Severance	5,503		793		(3,588)		59		2,767
Inventory adjustments	615		49		—		9		673
Lease termination	800		—		—		12		812
Other charges	501		143		—		8		652
Total	$	7,419	$	1,304	$	(3,588)	$	91	$	5,226

	Pilgrim’s Food Masters
	Liability or reserve as of December 25, 2022		Restructuring charges incurred		Cash payments and disposals		Currency translation		Liability or reserve as of March 26, 2023
	(In thousands)
Severance	$	639	$	4,736	$	(5,379)	$	4	$	—
Inventory adjustments	—		542		(542)		—		—
Lease termination	—		1,219		—		26		1,245
Other charges	—		225		(225)		—		—
Total	$	639	$	6,722	$	(6,146)	$	30	$	1,245

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RELATED PARTY TRANSACTIONS (Tables)

3 Months Ended

Mar. 26, 2023

Related Party Transactions [Abstract]

Schedule of Related Party Transactions

Pilgrim’s has been and, in some cases, continues to be a party to certain transactions with affiliated companies.

	Three Months Ended
	March 26, 2023		March 27, 2022
	(In thousands)
Sales to related parties:
JBS USA Food Company(a)	$	7,512	$	4,611
JBS Chile Ltda.	946		52
Other related parties	877		1,215
Total sales to related parties	$	9,335	$	5,878

	Three Months Ended
	March 26, 2023		March 27, 2022
	(In thousands)
Cost of goods purchased from related parties:
JBS USA Food Company(a)	$	49,905	$	61,903
Seara Meats BV	4,999		1,468
Penasul UK LTD	4,187		3,540
JBS Asia Co Limited	911		2,124
Other related parties	897		62
Total cost of goods purchased from related parties	$	60,899	$	69,097

	Three Months Ended
	March 26, 2023		March 27, 2022
	(In thousands)
Expenditures paid by related parties:
JBS USA Food Company(b)	$	14,022	$	24,178

	Three Months Ended
	March 26, 2023		March 27, 2022
	(In thousands)
Expenditures paid on behalf of related parties:
JBS USA Food Company(b)	$	3,380	$	32,525
Other related parties	4		$	—
Total expenditures paid on behalf of related parties	$	3,384	$	32,525

	March 26, 2023		December 25, 2022
	(In thousands)
Accounts receivable from related parties:
JBS USA Food Company(a)	$	730	$	2,062
JBS Chile Ltda.	871		3
Other related parties	524		447
Total accounts receivable from related parties	$	2,125	$	2,512

	March 26, 2023		December 25, 2022
	(In thousands)
Accounts payable to related parties:
JBS USA Food Company(a)	$	9,917	$	7,434
Seara Meats BV	4,043		1,565
JBS Asia Co Limited	4,105		2,099
Penasul UK LTD	2,408		940
Other related parties	8		117
Total accounts payable to related parties	$	20,481	$	12,155

(a)    The Company routinely executes transactions to both purchase products from JBS USA Food Company (“JBS USA”) and sell products to them. As of March 26, 2023, goods purchased and in transit from JBS USA were immaterial and not reflected on our Condensed Consolidated Balance Sheet.

(b)    The Company has an agreement with JBS USA to allocate costs associated with JBS USA’s procurement of SAP licenses and maintenance services for its combined companies. Under this agreement, the fees associated with procuring SAP licenses and maintenance services are allocated between the Company and JBS USA in proportion to the percentage of licenses used by each company. The agreement expires on the date of expiration, or earlier termination, of the underlying SAP license agreement. The Company also has an agreement with JBS USA to allocate the costs of supporting the business operations by one consolidated corporate team, which have historically been supported by their respective corporate teams. Expenditures paid by JBS USA on behalf of the Company will be reimbursed by the Company and expenditures paid by the Company on behalf of JBS USA will be reimbursed by JBS USA. This agreement expires on December 31, 2023.

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REPORTABLE SEGMENTS (Tables)

3 Months Ended

Mar. 26, 2023

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

Additional information regarding reportable segments is as follows:

	Three Months Ended
	March 26, 2023(a)		March 27, 2022(b)
	(In thousands)
Net sales
U.S.	$	2,432,568	$	2,581,208
U.K. and Europe	1,239,264		1,191,982
Mexico	493,796		467,205
Total	$	4,165,628	$	4,240,395

(a)For the three months ended March 26, 2023, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $31.0 million. These sales consisted of fresh products, prepared products and grain.

(b)For the three months ended March 27, 2022, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $43.4 million. These sales consisted of fresh products, prepared products and grain.

	Three Months Ended
	March 26, 2023		March 27, 2022
	(In thousands)
Reportable segment profit (loss):
U.S.	$	(28,106)	$	355,075
U.K. and Europe	25,261		(21,640)
Mexico	34,175		68,564
Eliminations	13		14
Total operating income	31,343		402,013
Interest expense, net of capitalized interest	42,662		36,296
Interest income	(3,600)		(1,274)
Foreign currency transaction losses	18,143		11,536
Miscellaneous, net	(22,653)		(324)
Income (loss) before income taxes	(3,209)		355,779
Income tax expense (benefit)	(8,840)		75,219
Net income	$	5,631	$	280,560

	March 26, 2023		December 25, 2022
	(In thousands)
Total assets by reportable segment:
U.S.	$	6,813,350	$	6,847,209
U.K. and Europe	4,124,386		4,033,990
Mexico	1,302,434		1,292,056
Eliminations	(3,012,665)		(2,917,486)
Total assets	$	9,227,505	$	9,255,769

	March 26, 2023		December 25, 2022
	(In thousands)
Long-lived assets by reportable segment(a):
U.S.	$	1,983,051	$	1,943,967
U.K. and Europe	1,009,838		1,011,283
Mexico	298,242		295,069
Eliminations	(3,661)		(3,675)
Total long-lived assets	$	3,287,470	$	3,246,644

(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.

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BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) bird in Millions		3 Months Ended
	Jul. 27, 2020	Mar. 26, 2023 employee country bird grower pig state
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Number of countries in which entity exports products | country		109
Number of states in which entity operates | state		14
Number of employees (over) | employee		62,000
Pilgrims Pride Corporation | JBS SA
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Percentage of beneficial ownership by holding company	80.00%	82.60%
Chicken
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Maximum processing capacity of employees per week (in animals per week) | bird		42.1
Number of contract growers		5,650
Pork
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Maximum processing capacity of employees per week (in animals per week) | pig		51,000
Number of contract growers		230

XML

BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 26, 2023	Dec. 25, 2022	Mar. 27, 2022	Dec. 26, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and cash equivalents	$ 150,687	$ 400,988
Restricted cash and restricted cash equivalents	33,879	33,771
Total cash, cash equivalents, restricted cash and restricted cash equivalents shown in the Condensed Consolidated Statements of Cash Flows	$ 184,566	$ 434,759	$ 755,798	$ 450,121

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REVENUE RECOGNITION - Disaggregated Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Disaggregation of Revenue [Line Items]
Net sales	$ 4,165,628	$ 4,240,395
Fresh
Disaggregation of Revenue [Line Items]
Net sales	2,620,368	2,735,350
Prepared
Disaggregation of Revenue [Line Items]
Net sales	1,122,886	1,037,864
Export
Disaggregation of Revenue [Line Items]
Net sales	245,896	307,208
Other
Disaggregation of Revenue [Line Items]
Net sales	176,478	159,973
U.S.
Disaggregation of Revenue [Line Items]
Net sales	2,432,568	2,581,208
U.S. | Fresh
Disaggregation of Revenue [Line Items]
Net sales	1,943,786	2,087,621
U.S. | Prepared
Disaggregation of Revenue [Line Items]
Net sales	244,801	255,087
U.S. | Export
Disaggregation of Revenue [Line Items]
Net sales	128,275	133,797
U.S. | Other
Disaggregation of Revenue [Line Items]
Net sales	115,706	104,703
U.K. and Europe
Disaggregation of Revenue [Line Items]
Net sales	1,239,264	1,191,982
U.K. and Europe | Fresh
Disaggregation of Revenue [Line Items]
Net sales	264,663	237,309
U.K. and Europe | Prepared
Disaggregation of Revenue [Line Items]
Net sales	831,729	746,636
U.K. and Europe | Export
Disaggregation of Revenue [Line Items]
Net sales	117,621	173,411
U.K. and Europe | Other
Disaggregation of Revenue [Line Items]
Net sales	25,251	34,626
Mexico
Disaggregation of Revenue [Line Items]
Net sales	493,796	467,205
Mexico | Fresh
Disaggregation of Revenue [Line Items]
Net sales	411,919	410,420
Mexico | Prepared
Disaggregation of Revenue [Line Items]
Net sales	46,356	36,141
Mexico | Export
Disaggregation of Revenue [Line Items]
Net sales	0	0
Mexico | Other
Disaggregation of Revenue [Line Items]
Net sales	$ 35,521	$ 20,644

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REVENUE RECOGNITION - Contract Balances (Details) $ in Thousands	3 Months Ended
	Mar. 26, 2023 USD ($)
Movement in Contract with Customer, Liability [Roll Forward]
Balance as of beginning of period	$ 34,486
Revenue recognized	(20,183)
Cash received, excluding amounts recognized as revenue during the period	33,463
Balance as of end of period	$ 47,766

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DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Outstanding Derivative Instruments and Cash Collateral (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 26, 2023	Dec. 25, 2022
Fair values:
Cash collateral posted with brokers	$ 33,879	$ 33,771
Corn
Derivatives Coverage:
Derivatives coverage (as a percentage)	12.10%	14.40%
Soybean meal
Derivatives Coverage:
Derivatives coverage (as a percentage)	10.00%	10.10%
Commodity derivative
Fair values:
Derivative assets	$ 8,333	$ 17,922
Derivative liabilities	(26,437)	(9,042)
Foreign currency derivative
Fair values:
Derivative assets	5,600	555
Derivative liabilities	(405)	(6,170)
Sales contract derivative
Fair values:
Derivative assets	459	0
Derivative liabilities	$ 0	$ (3,705)

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DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Derivative Gains (Losses) and Location of Income Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Derivative [Line Items]
Gains (Losses) by type of contract	$ (31,474)	$ 9,574
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Net sales	Net sales
Foreign currency derivatives
Derivative [Line Items]
Gains (Losses) by type of contract	$ (19,104)	$ (13,300)
Commodity derivatives
Derivative [Line Items]
Gains (Losses) by type of contract	(16,534)	31,540
Sales contract derivative liabilities
Derivative [Line Items]
Gains (Losses) by type of contract	$ 4,164	$ (8,666)

XML

DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Cash Flow Hedges Included in AOCI (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Derivative [Line Items]
Gain (loss) recognized in other comprehensive income on derivative	$ 18	$ 528
Cash Flow Hedging | Designated as Hedging Instrument | Foreign currency derivatives
Derivative [Line Items]
Gain (loss) recognized in other comprehensive income on derivative	$ 16	$ 523

XML

DERIVATIVE FINANCIAL INSTRUMENTS - Income and Expense Line item in the Condensed Consolidated Statements of Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Derivative [Line Items]
Net sales	$ 4,165,628	$ 4,240,395
Cost of sales	3,992,581	3,698,415
Interest expense, net of capitalized interest	42,662	36,296
Impact from cash flow hedging relationship	64	(157)
Sales contract derivative liabilities | Net sales
Derivative [Line Items]
Net sales	4,165,628	4,240,395
Commodity derivative | Cost of sales
Derivative [Line Items]
Cost of sales	3,992,581	3,698,415
Foreign currency derivative | Interest expense, net of capitalized interest
Derivative [Line Items]
Interest expense, net of capitalized interest	42,662	36,296
Interest rate swaps | Interest expense, net of capitalized interest
Derivative [Line Items]
Impact from cash flow hedging relationship	0	98
Foreign currency derivatives | Net sales
Derivative [Line Items]
Impact from cash flow hedging relationship	120	32
Foreign currency derivatives | Cost of sales
Derivative [Line Items]
Impact from cash flow hedging relationship	$ 56	$ 91

XML

DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) $ in Thousands	3 Months Ended
	Mar. 26, 2023 USD ($)
Foreign currency derivative
Derivative [Line Items]
Cash flow hedge gain to be reclassified within twelve months	$ 0

XML

TRADE ACCOUNTS AND OTHER RECEIVABLES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Dec. 25, 2022
Accounts Receivable, after Allowance for Credit Loss [Abstract]
Trade accounts receivable	$ 1,071,202	$ 984,332
Notes receivable from third parties	13,599	33,477
Other receivables	161,737	88,962
Receivables, gross	1,246,538	1,106,771
Allowance for credit losses	(9,172)	(9,559)
Receivables, net	1,237,366	1,097,212
Account receivable from related parties	2,125	$ 2,512
Receivables, Net [Roll Forward]
Balance, beginning of period	(9,559)
Provision charged to operating results	(525)
Account write-offs and recoveries	1,149
Effect of exchange rate	(237)
Balance, end of period	$ (9,172)

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INVENTORIES (Details) - USD ($) $ in Thousands	Mar. 26, 2023	Dec. 25, 2022
Inventory Disclosure [Abstract]
Raw materials and work-in-process	$ 1,256,009	$ 1,204,092
Finished products	592,772	596,375
Operating supplies	74,347	95,367
Maintenance materials and parts	98,982	94,350
Total inventories	$ 2,022,110	$ 1,990,184

XML

INVESTMENTS IN SECURITIES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Dec. 25, 2022
Debt Securities, Available-for-sale [Line Items]
Gross realized gains recognized on available-for-sale securities	$ 1,900
Fixed income securities
Debt Securities, Available-for-sale [Line Items]
Cost	77,131	$ 167,366
Fair Value	$ 77,131	$ 167,430

XML

GOODWILL AND INTANGIBLE ASSETS - Schedule of Goodwill by Segment (Details) $ in Thousands	3 Months Ended
	Mar. 26, 2023 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 1,227,944
Currency Translation	15,669
Goodwill, ending balance	1,243,613
U.S.
Goodwill [Roll Forward]
Goodwill, beginning balance	41,936
Currency Translation	0
Goodwill, ending balance	41,936
U.K. and Europe
Goodwill [Roll Forward]
Goodwill, beginning balance	1,058,204
Currency Translation	15,669
Goodwill, ending balance	1,073,873
Mexico
Goodwill [Roll Forward]
Goodwill, beginning balance	127,804
Currency Translation	0
Goodwill, ending balance	$ 127,804

XML

GOODWILL AND INTANGIBLE ASSETS - Schedule of Intangible Assets (Details) $ in Thousands	3 Months Ended
	Mar. 26, 2023 USD ($)
Accumulated Amortization Rollforward [Roll Forward]
Amortization	$ (8,293)
Intangible Assets (Excluding Goodwill) Rollforward [Rollforward]
Beginning balance	846,020
Amortization	8,293
Currency Translation	11,168
Ending balance	848,895
Trade names
Indefinite-Lived Intangible Assets [Line Items]
Beginning balance	549,024
Currency Translation	8,274
Ending balance	557,298
Trade names
Finite-lived Intangible Assets [Rollforward]
Beginning balance	112,057
Currency Translation	447
Ending balance	112,504
Accumulated Amortization Rollforward [Roll Forward]
Beginning balance	(53,708)
Amortization	(943)
Currency Translation	(37)
Ending balance	(54,688)
Intangible Assets (Excluding Goodwill) Rollforward [Rollforward]
Amortization	943
Customer relationships
Finite-lived Intangible Assets [Rollforward]
Beginning balance	427,662
Currency Translation	3,882
Ending balance	431,544
Accumulated Amortization Rollforward [Roll Forward]
Beginning balance	(189,015)
Amortization	(7,350)
Currency Translation	(1,398)
Ending balance	(197,763)
Intangible Assets (Excluding Goodwill) Rollforward [Rollforward]
Amortization	$ 7,350

XML

GOODWILL AND INTANGIBLE ASSETS - Useful Life of Assets (Details)	3 Months Ended
	Mar. 26, 2023
Customer relationships | Minimum
Finite-Lived Intangible Assets [Line Items]
Intangible assets, estimated useful life (in years)	3 years
Customer relationships | Maximum
Finite-Lived Intangible Assets [Line Items]
Intangible assets, estimated useful life (in years)	18 years
Trade names subject to amortization | Minimum
Finite-Lived Intangible Assets [Line Items]
Intangible assets, estimated useful life (in years)	15 years
Trade names subject to amortization | Maximum
Finite-Lived Intangible Assets [Line Items]
Intangible assets, estimated useful life (in years)	20 years

XML

PROPERTY, PLANT AND EQUIPMENT - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Mar. 26, 2023	Dec. 25, 2022
Property, Plant and Equipment [Line Items]
Finance lease assets	$ 5,710	$ 5,710
PP&E, gross	6,561,108	6,422,394
Accumulated depreciation	(3,563,813)	(3,481,548)
PP&E, net	$ 2,997,295	$ 2,940,846
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property, Plant and Equipment, Net	Property, Plant and Equipment, Net
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 267,245	$ 263,494
Buildings
Property, Plant and Equipment [Line Items]
Property, plant and equipment	2,090,190	2,065,042
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment	3,739,808	3,651,464
Autos and trucks
Property, Plant and Equipment [Line Items]
Property, plant and equipment	84,830	77,865
Construction-in-progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 373,325	$ 358,819

XML

PROPERTY, PLANT AND EQUIPMENT - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 90,000	$ 93,400
Expenditures on capital projects	131,701	81,578
Completed projects transferred from construction-in-progress to depreciable assets	117,800	73,800
Proceeds from property disposals	12,631	849
Gain (loss) on property disposals	9,333	$ (1,855)
Idled assets property, plant and equipment, net	39,400
Idled asset property, plant and equipment gross	213,300
Idled assets, accumulated depreciation	$ 173,900

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CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Mar. 26, 2023	Dec. 25, 2022
Accounts payable:
Trade accounts payable	$ 1,424,819	$ 1,476,552
Book overdrafts	74,794	93,800
Other payables	17,857	17,587
Total accounts payable	1,517,470	1,587,939
Accounts payable to related parties	20,481	12,155
Revenue contract liabilities	47,766	34,486
Accrued expenses and other current liabilities:
Compensation and benefits	203,526	258,098
Current maturities of operating lease liabilities	75,613	79,222
Accrued sales rebates	71,880	55,002
Insurance and self-insured claims	70,447	72,453
Interest and debt-related fees	48,292	32,433
Taxes	34,685	33,550
Derivative liabilities	26,842	18,917
Other accrued expenses	221,038	201,994
Total accrued expenses and other current liabilities	862,753	850,899
Total	$ 2,448,470	$ 2,485,479
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued Liabilities, Current	Accrued Liabilities, Current
Other Litigation Cases
Accrued expenses and other current liabilities:
Litigation settlements	$ 110,430	$ 99,230

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SUPPLIER FINANCE PROGRAMS (Details) - USD ($) $ in Millions	Mar. 26, 2023	Dec. 25, 2022
Supplier Finance Program
Supplier Finance Program [Line Items]
Outstanding balance of confirmed invoices	$ 89.2	$ 239.6
Minimum
Supplier Finance Program [Line Items]
Supplier finance program, payment timing period	65 days
Maximum
Supplier Finance Program [Line Items]
Supplier finance program, payment timing period	180 days

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INCOME TAXES (Details) - USD ($) $ in Thousands		3 Months Ended
	Jul. 27, 2020	Mar. 26, 2023	Mar. 27, 2022
Income Tax Disclosure [Abstract]
Income tax expense		$ (8,840)	$ 75,219
Effective tax rate		275.50%	21.10%
Other comprehensive income, tax effect		$ (700)	$ (2,300)
Pilgrims Pride Corporation | JBS SA
Related Party Transaction [Line Items]
Percentage of beneficial ownership by holding company	80.00%	82.60%
Pilgrims Pride Corporation | JBS SA | Minimum
Related Party Transaction [Line Items]
Percentage of beneficial ownership by holding company	80.00%

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DEBT - Schedule of Long-term Debt and Other Borrowing Arrangements (Details) - USD ($) $ in Thousands		3 Months Ended
	Dec. 14, 2018	Mar. 26, 2023	Dec. 25, 2022	Sep. 02, 2021
Debt Instrument [Line Items]
Finance lease obligations		$ 3,426	$ 3,624
Long-term debt		3,250,879	3,221,976
Less: Current maturities of long-term debt		(26,326)	(26,279)
Long-term debt, less current maturities		3,224,553	3,195,697
Less: Capitalized financing costs		(27,938)	(29,265)
Long-term debt, less current maturities, net of capitalized financing costs		$ 3,196,615	3,166,432
Term note payable at 6.19% | Credit facility
Debt Instrument [Line Items]
Stated interest rate		6.19%
Long-term debt		$ 473,750	480,078
Revolving note payable at 7.89% | Credit facility
Debt Instrument [Line Items]
Stated interest rate		7.89%
Long-term debt		$ 35,000	0
U.K. and Europe Revolving Facility (defined below) with notes payable at SONIA plus 1.25% | Credit facility | EURIBOR Rate
Debt Instrument [Line Items]
Long-term debt		0	0
Mexico Credit Facility | Credit facility
Debt Instrument [Line Items]
Long-term debt		$ 0	0
Senior notes | Senior notes payable at 3.50%
Debt Instrument [Line Items]
Stated interest rate		3.50%		3.50%
Long-term debt		$ 900,000	900,000
Senior notes | Senior notes payable, net of discount, at 4.25%
Debt Instrument [Line Items]
Stated interest rate		4.25%
Long-term debt		$ 991,942	991,692
Senior notes | Senior notes payable, net of discount, at 5.875%
Debt Instrument [Line Items]
Stated interest rate		5.875%
Long-term debt		$ 846,761	$ 846,582
Credit facility | U.K. and Europe Revolving Facility (defined below) with notes payable at SONIA plus 1.25% | Credit facility
Debt Instrument [Line Items]
Basis spread on variable interest rate		1.25%
Credit facility | Mexico Credit Facility | Credit facility | TIIE Rate
Debt Instrument [Line Items]
Basis spread on variable interest rate	1.50%	1.50%

XML

DEBT - Narrative (Details)							3 Months Ended
	Apr. 19, 2023 USD ($)	Aug. 09, 2021 USD ($)	Apr. 08, 2021 USD ($)	Dec. 14, 2018 MXN ($)	Jun. 02, 2018	Mar. 07, 2018 USD ($)	Mar. 26, 2023 USD ($)	Dec. 25, 2022 USD ($)	Jun. 24, 2022 GBP (£)	Sep. 02, 2021 USD ($)	Sep. 29, 2017 USD ($)
Debt Instrument [Line Items]
Maximum secured leverage ratio on a pro-forma basis (not to exceed)		3.00
Mexico Credit Facility | Credit facility
Debt Instrument [Line Items]
Long-term debt							$ 0	$ 0
Senior notes | Senior notes payable, net of discount, at 5.875%
Debt Instrument [Line Items]
Principal amount						$ 250,000,000					$ 600,000,000
Stated interest rate							5.875%
Add-on issuance percentage of face value						97.25%
Gross amount						$ 243,100,000
Debt discount						$ 6,900,000
Long-term debt							$ 846,761,000	846,582,000
Senior notes | Senior notes payable, net of discount, at 4.25%
Debt Instrument [Line Items]
Principal amount			$ 1,000,000,000
Stated interest rate							4.25%
Add-on issuance percentage of face value			98.994%
Gross amount			$ 989,900,000
Debt discount			$ 10,100,000
Stated interest rate if emissions target is met			4.50%
Notification period if emissions threshold is met			30 days
Emissions threshold			17.679%
Long-term debt							$ 991,942,000	991,692,000
Senior notes | Senior Notes 3.50% Due 2032
Debt Instrument [Line Items]
Principal amount										$ 900,000,000
Stated interest rate							3.50%			3.50%
Long-term debt							$ 900,000,000	$ 900,000,000
Senior notes | Senior Notes 6.250% Due 2033 | Subsequent Event
Debt Instrument [Line Items]
Principal amount	$ 1,000,000,000
Stated interest rate	6.25%
Add-on issuance percentage of face value	99.312%
Gross amount	$ 993,100,000
Debt discount	$ 6,900,000
Credit facility
Debt Instrument [Line Items]
Outstanding borrowings							35,000,000
Credit facility | US Credit Facility | Credit facility
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 800,000,000
Feature to increase revolving loan commitment		$ 500,000,000
Letters of credit issued							35,000,000
Current borrowing capacity							730,000,000
Credit facility | US Credit Facility | Credit facility | LIBOR Rate | Minimum
Debt Instrument [Line Items]
Basis spread on variable interest rate		1.25%
Credit facility | US Credit Facility | Credit facility | LIBOR Rate | Maximum
Debt Instrument [Line Items]
Basis spread on variable interest rate		2.75%
Credit facility | US Credit Facility | Credit facility | Alternate Base Rate | Minimum
Debt Instrument [Line Items]
Basis spread on variable interest rate		0.25%
Credit facility | US Credit Facility | Credit facility | Alternate Base Rate | Maximum
Debt Instrument [Line Items]
Basis spread on variable interest rate		1.75%
Credit facility | US Credit Facility | Swingline loans
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 80,000,000
Credit facility | US Credit Facility | Letter of credit
Debt Instrument [Line Items]
Maximum borrowing capacity		125,000,000
Credit facility | US Credit Facility Term Loans | Credit facility
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 700,000,000
Aggregate principal amount							473,800,000
Credit facility | Moy Park Bank Of Ireland Revolving Facility | Credit facility
Debt Instrument [Line Items]
Maximum borrowing capacity | £									£ 150,000,000
Credit facility | Bank Of Ireland Revolving Facility, Due 2023 | Credit facility
Debt Instrument [Line Items]
Current borrowing capacity							183,500,000
Credit facility | Bank Of Ireland Revolving Facility, Due 2023 | Credit facility | LIBOR Rate
Debt Instrument [Line Items]
Basis spread on variable interest rate					1.25%
Credit facility | Bank Of Ireland Revolving Facility, Due 2023 | Credit facility | EURIBOR Rate
Debt Instrument [Line Items]
Basis spread on variable interest rate					2.00%
Credit facility | Mexico Credit Facility | Credit facility
Debt Instrument [Line Items]
Maximum borrowing capacity				$ 1,500,000,000
Current borrowing capacity							$ 81,300,000
Credit facility | Mexico Credit Facility | Credit facility | TIIE Rate
Debt Instrument [Line Items]
Basis spread on variable interest rate				1.50%			1.50%
Credit facility | U.K. and Europe Revolving Facility | Credit facility
Debt Instrument [Line Items]
Outstanding borrowings							$ 0
Credit facility | Mexico Credit Facility Due 2027 | Credit facility
Debt Instrument [Line Items]
Long-term debt							$ 0

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STOCKHOLDERS' EQUITY - Schedule of Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance, beginning of period	$ 2,853,276	$ 2,588,934
Other comprehensive income before reclassifications	46,342	(51,200)
Amounts reclassified from accumulated other comprehensive loss (gain) to net income	62	290
Currency translation	2	5
Total other comprehensive income (loss), net of tax	46,406	(50,905)
Balance, end of period	2,906,520	2,793,606
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance, beginning of period	(336,448)	(47,997)
Total other comprehensive income (loss), net of tax	46,406	(50,905)
Balance, end of period	(290,042)	(98,902)
Gains (Losses) Related to Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance, beginning of period	(269,825)	27,241
Other comprehensive income before reclassifications	42,644	(58,202)
Amounts reclassified from accumulated other comprehensive loss (gain) to net income	0	0
Currency translation	0	0
Total other comprehensive income (loss), net of tax	42,644	(58,202)
Balance, end of period	(227,181)	(30,961)
Losses on Derivative Financial Instruments Classified as Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance, beginning of period	(1,162)	(2,365)
Other comprehensive income before reclassifications	16	523
Amounts reclassified from accumulated other comprehensive loss (gain) to net income	(64)	115
Currency translation	2	5
Total other comprehensive income (loss), net of tax	(46)	643
Balance, end of period	(1,208)	(1,722)
Losses Related to Pension and Other Postretirement Benefits
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance, beginning of period	(65,447)	(72,873)
Other comprehensive income before reclassifications	3,652	6,479
Amounts reclassified from accumulated other comprehensive loss (gain) to net income	139	175
Currency translation	0	0
Total other comprehensive income (loss), net of tax	3,791	6,654
Balance, end of period	(61,656)	(66,219)
Gains (Losses) on Available-for-Sale Securities
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance, beginning of period	(14)	0
Other comprehensive income before reclassifications	30	0
Amounts reclassified from accumulated other comprehensive loss (gain) to net income	(13)	0
Currency translation	0	0
Total other comprehensive income (loss), net of tax	17	0
Balance, end of period	$ 3	$ 0

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STOCKHOLDERS' EQUITY - Schedule of Reclassification from Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Amortization of defined benefit pension and other postretirement plan actuarial losses:
Net sales	$ 4,165,628	$ 4,240,395
Cost of sales	(3,992,581)	(3,698,415)
Interest Income	3,600	1,274
Interest expense, net of capitalized interest	(42,662)	(36,296)
Miscellaneous, net	22,653	324
Tax expense	8,840	(75,219)
Net income	5,631	280,560
Amount Reclassified from Accumulated Other Comprehensive Loss
Amortization of defined benefit pension and other postretirement plan actuarial losses:
Total before tax	(100)	(389)
Tax expense	38	99
Net income	(62)	(290)
Amount Reclassified from Accumulated Other Comprehensive Loss | Realized gain (loss) on settlement of derivatives classified as cash flow hedges
Amortization of defined benefit pension and other postretirement plan actuarial losses:
Net sales	120	32
Cost of sales	(56)	(91)
Interest expense, net of capitalized interest	0	(98)
Amount Reclassified from Accumulated Other Comprehensive Loss | Amortization of defined benefit pension and other postretirement plan actuarial losses
Amortization of defined benefit pension and other postretirement plan actuarial losses:
Miscellaneous, net	(182)	(232)
Amount Reclassified from Accumulated Other Comprehensive Loss | Gains (Losses) on Available-for-Sale Securities
Amortization of defined benefit pension and other postretirement plan actuarial losses:
Interest Income	$ 18	$ 0

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STOCKHOLDERS' EQUITY - Narrative (Details)	Mar. 26, 2023 $ / shares shares
Equity [Abstract]
Preferred stock, shares authorized (in shares)	50,000,000
Preferred stock, par value (in usd per share) | $ / shares	$ 0.01
Preferred stock, shares issued (in shares)	0
Preferred stock, shares outstanding (in shares)	0

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PENSION AND OTHER POSTRETIREMENT BENEFITS - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 26, 2023 USD ($) plan	Mar. 27, 2022 USD ($)	Dec. 25, 2022 USD ($)
Change in projected benefit obligation:
Retirement plan expenses | $	$ 7.6	$ 6.4
Expenses related to defined contribution plans | $	6.8
Pension Benefits
Change in projected benefit obligation:
Accumulated benefit obligation, defined benefit pension plans | $	$ 230.4		$ 236.1
U.S.
Change in projected benefit obligation:
Number of defined contribution plans | plan	2
Mexico
Change in projected benefit obligation:
Number of defined contribution plans | plan	3
U.K. and Europe
Change in projected benefit obligation:
Number of defined contribution plans | plan	7

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PENSION AND OTHER POSTRETIREMENT BENEFITS - Schedule of Defined Benefit Plan Obligations and Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022	Dec. 25, 2022	Dec. 26, 2021
Amounts recognized in accumulated other comprehensive loss at end of period:
Net actuarial loss (gain)	$ (81)	$ 49,441		$ 58,143
Pension Benefits
Change in projected benefit obligation:
Projected, benefit obligation, beginning of period	236,147	373,062
Interest cost	2,314	1,508
Actuarial gain	(3,134)	(29,146)
Benefits paid	(3,838)	(4,810)
Currency translation loss (gain)	(1,082)	161
Projected benefit obligation, end of period	230,407	340,775
Change in plan assets:
Fair value of plan assets, beginning balance	210,133	326,409
Actual return on plan assets	3,357	(18,246)
Contributions by employer	2,109	3,287
Benefits paid	(3,838)	(4,810)
Expenses paid from assets	(94)	(115)
Currency translation gain (loss)	(1,012)	116
Fair value of plan assets, end of period	210,655	306,641
Funded status:
Unfunded benefit obligation, end of period	(19,752)		$ (26,014)
Amounts recognized in the Condensed Consolidated Balance Sheets at end of period:
Current liability	(794)		(841)
Long-term liability	(18,958)		(25,173)
Recognized liability	(19,752)		(26,014)
Amounts recognized in accumulated other comprehensive loss at end of period:
Net actuarial loss (gain)	43,585	62	48,121	$ 118
Other Benefits
Change in projected benefit obligation:
Projected, benefit obligation, beginning of period	1,169	1,346
Interest cost	9	4
Actuarial gain	(15)	(56)
Benefits paid	(29)	(26)
Currency translation loss (gain)	0	0
Projected benefit obligation, end of period	1,134	1,268
Change in plan assets:
Fair value of plan assets, beginning balance	0	0
Actual return on plan assets	0	0
Contributions by employer	29	26
Benefits paid	(29)	(26)
Expenses paid from assets	0	0
Currency translation gain (loss)	0	0
Fair value of plan assets, end of period	0	$ 0
Funded status:
Unfunded benefit obligation, end of period	(1,134)		(1,169)
Amounts recognized in the Condensed Consolidated Balance Sheets at end of period:
Current liability	(148)		(177)
Long-term liability	(986)		(992)
Recognized liability	(1,134)		(1,169)
Amounts recognized in accumulated other comprehensive loss at end of period:
Net actuarial loss (gain)	$ (81)		$ (66)

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PENSION AND OTHER POSTRETIREMENT BENEFITS - Schedule of Net Defined Benefit Pension and Other Postretirement Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Pension Benefits
Change in projected benefit obligation:
Interest cost	$ 2,314	$ 1,508
Estimated return on plan assets	(2,222)	(2,403)
Expenses paid from assets	94	115
Amortization of net loss	179	227
Amortization of past service cost	4	5
Net costs	369	(548)
Other Benefits
Change in projected benefit obligation:
Interest cost	9	4
Estimated return on plan assets	0	0
Expenses paid from assets	0	0
Amortization of net loss	0	0
Amortization of past service cost	0	0
Net costs	$ 9	$ 4

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PENSION AND OTHER POSTRETIREMENT BENEFITS - Schedule of Economic Assumptions and Impact of Change in Discount Rate on Benefit Obligation (Details)	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022	Dec. 25, 2022
Pension Benefits
Assumptions used to measure benefit obligation at end of period:
Discount rate	5.14%		5.04%
Assumptions used to measure net pension and other postretirement cost:
Discount rate	5.04%	2.23%
Expected return on plan assets	4.97%	3.40%
Other Benefits
Assumptions used to measure benefit obligation at end of period:
Discount rate	5.44%		5.16%
Assumptions used to measure net pension and other postretirement cost:
Discount rate	5.16%	2.38%

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PENSION AND OTHER POSTRETIREMENT BENEFITS - Schedule of Unrecognized Benefit Amounts (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Net actuarial loss (gain), beginning of period		$ 58,143
Amortization	$ 0	(232)
Actuarial gain		(29,146)
Asset loss (gain)	0	20,649
Currency translation loss (gain)		27
Net actuarial (gain) loss, end of period	(81)	49,441
Pension Benefits
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Net actuarial loss (gain), beginning of period	48,121	118
Amortization	(183)	0
Actuarial gain	(3,134)	(56)
Asset loss (gain)	(1,136)	0
Currency translation loss (gain)	(83)	0
Net actuarial (gain) loss, end of period	43,585	$ 62
Other Benefits
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Net actuarial loss (gain), beginning of period	(66)
Actuarial gain	(15)
Currency translation loss (gain)	0
Net actuarial (gain) loss, end of period	$ (81)

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FAIR VALUE MEASUREMENT - Schedule of Assets and Liabilities Measured on a Recurring Basis (Details) - Recurring - USD ($) $ in Thousands	Mar. 26, 2023	Dec. 25, 2022
Commodity derivative
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	$ 8,333	$ 17,922
Derivative liabilities	(26,437)	(9,042)
Commodity derivative | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	8,333	17,922
Derivative liabilities	(26,437)	(9,042)
Commodity derivative | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Derivative liabilities	0	0
Foreign currency derivative
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	5,600	555
Derivative liabilities	(405)	(6,170)
Foreign currency derivative | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	5,600	555
Derivative liabilities	(405)	(6,170)
Foreign currency derivative | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Derivative liabilities	0	0
Sales contract derivative
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	459	0
Derivative liabilities	0	(3,705)
Sales contract derivative | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Derivative liabilities	0	0
Sales contract derivative | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	459	0
Derivative liabilities	$ 0	$ (3,705)

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FAIR VALUE MEASUREMENTS - Schedule of Carrying Amounts and Estimated Fair Values of Fixed-Rate Debt Obligation (Details) - USD ($) $ in Thousands	Mar. 26, 2023	Dec. 25, 2022	Sep. 02, 2021
Senior notes | Fixed-rate senior notes payable at 3.50%, at Level 2 inputs
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Stated interest rate	3.50%		3.50%
Senior notes | Fixed-rate senior notes payable at 4.25%, at Level 2 inputs
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Stated interest rate	4.25%
Senior notes | Fixed-rate senior notes payable at 5.875%, at Level 2 inputs
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Stated interest rate	5.875%
Senior notes | Variable-rate term note payable at 5.00%, at Level 3 inputs
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Stated interest rate	5.00%
Senior notes | Variable-rate swingline note payable at 7.89%, at Level 3 inputs
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Stated interest rate	7.89%
Senior notes | Level 2 | Carrying Amount | Fixed-rate senior notes payable at 3.50%, at Level 2 inputs
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed-rate debt obligation	$ (900,000)	$ (900,000)
Senior notes | Level 2 | Carrying Amount | Fixed-rate senior notes payable at 4.25%, at Level 2 inputs
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed-rate debt obligation	(991,942)	(991,691)
Senior notes | Level 2 | Carrying Amount | Fixed-rate senior notes payable at 5.875%, at Level 2 inputs
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed-rate debt obligation	(846,761)	(846,582)
Senior notes | Level 2 | Fair Value | Fixed-rate senior notes payable at 3.50%, at Level 2 inputs
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed-rate debt obligation	(715,761)	(726,498)
Senior notes | Level 2 | Fair Value | Fixed-rate senior notes payable at 4.25%, at Level 2 inputs
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed-rate debt obligation	(843,149)	(734,349)
Senior notes | Level 2 | Fair Value | Fixed-rate senior notes payable at 5.875%, at Level 2 inputs
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed-rate debt obligation	(835,720)	(846,175)
Secured loans | Level 3 | Carrying Amount | Variable-rate term note payable at 5.00%, at Level 3 inputs
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed-rate debt obligation	(473,750)	(480,078)
Secured loans | Level 3 | Carrying Amount | Variable-rate swingline note payable at 7.89%, at Level 3 inputs
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed-rate debt obligation	(35,000)	0
Secured loans | Level 3 | Fair Value | Variable-rate term note payable at 5.00%, at Level 3 inputs
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed-rate debt obligation	(501,774)	(489,857)
Secured loans | Level 3 | Fair Value | Variable-rate swingline note payable at 7.89%, at Level 3 inputs
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed-rate debt obligation	$ (35,000)	$ 0

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RESTRUCTURING-RELATED ACTIVITIES - Narrative (Details) - GNP $ in Millions	12 Months Ended
	Dec. 29, 2019 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring and related cost, expected cost	$ 53.0
Expected future payments for restructuring	$ 47.7

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RESTRUCTURING-RELATED ACTIVITIES - Schedule of Expected Future Restructuring Costs (Details) $ in Thousands	3 Months Ended
	Mar. 26, 2023 USD ($)
Restructuring Cost and Reserve [Line Items]
Costs incurred and expected to be incurred:	$ 53,202
Cost incurred since earliest implementation date:	38,492
Employee-related costs
Restructuring Cost and Reserve [Line Items]
Costs incurred and expected to be incurred:	29,086
Cost incurred since earliest implementation date:	24,621
Asset impairment costs
Restructuring Cost and Reserve [Line Items]
Costs incurred and expected to be incurred:	9,173
Cost incurred since earliest implementation date:	3,559
Contract termination costs
Restructuring Cost and Reserve [Line Items]
Costs incurred and expected to be incurred:	4,709
Cost incurred since earliest implementation date:	122
Other exit and disposal costs
Restructuring Cost and Reserve [Line Items]
Costs incurred and expected to be incurred:	10,234
Cost incurred since earliest implementation date:	10,190
Moy Park
Restructuring Cost and Reserve [Line Items]
Costs incurred and expected to be incurred:	19,726
Cost incurred since earliest implementation date:	19,325
Moy Park | Employee-related costs
Restructuring Cost and Reserve [Line Items]
Costs incurred and expected to be incurred:	9,948
Cost incurred since earliest implementation date:	9,608
Moy Park | Asset impairment costs
Restructuring Cost and Reserve [Line Items]
Costs incurred and expected to be incurred:	9,173
Cost incurred since earliest implementation date:	3,559
Moy Park | Contract termination costs
Restructuring Cost and Reserve [Line Items]
Costs incurred and expected to be incurred:	124
Cost incurred since earliest implementation date:	122
Moy Park | Other exit and disposal costs
Restructuring Cost and Reserve [Line Items]
Costs incurred and expected to be incurred:	481
Cost incurred since earliest implementation date:	6,036
Pilgrim’s Pride Ltd.
Restructuring Cost and Reserve [Line Items]
Costs incurred and expected to be incurred:	11,559
Cost incurred since earliest implementation date:	11,444
Pilgrim’s Pride Ltd. | Employee-related costs
Restructuring Cost and Reserve [Line Items]
Costs incurred and expected to be incurred:	7,838
Cost incurred since earliest implementation date:	9,318
Pilgrim’s Pride Ltd. | Asset impairment costs
Restructuring Cost and Reserve [Line Items]
Costs incurred and expected to be incurred:	0
Cost incurred since earliest implementation date:	0
Pilgrim’s Pride Ltd. | Contract termination costs
Restructuring Cost and Reserve [Line Items]
Costs incurred and expected to be incurred:	1,518
Cost incurred since earliest implementation date:	0
Pilgrim’s Pride Ltd. | Other exit and disposal costs
Restructuring Cost and Reserve [Line Items]
Costs incurred and expected to be incurred:	2,203
Cost incurred since earliest implementation date:	2,126
Pilgrim’s Food Masters
Restructuring Cost and Reserve [Line Items]
Costs incurred and expected to be incurred:	21,917
Cost incurred since earliest implementation date:	7,723
Pilgrim’s Food Masters | Employee-related costs
Restructuring Cost and Reserve [Line Items]
Costs incurred and expected to be incurred:	11,300
Cost incurred since earliest implementation date:	5,695
Pilgrim’s Food Masters | Asset impairment costs
Restructuring Cost and Reserve [Line Items]
Costs incurred and expected to be incurred:	0
Cost incurred since earliest implementation date:	0
Pilgrim’s Food Masters | Contract termination costs
Restructuring Cost and Reserve [Line Items]
Costs incurred and expected to be incurred:	3,067
Cost incurred since earliest implementation date:	0
Pilgrim’s Food Masters | Other exit and disposal costs
Restructuring Cost and Reserve [Line Items]
Costs incurred and expected to be incurred:	7,550
Cost incurred since earliest implementation date:	$ 2,028

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RESTRUCTURING-RELATED ACTIVITIES - Restructuring and Related Costs (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 26, 2023	Mar. 27, 2022	Dec. 25, 2022
Restructuring Cost and Reserve [Line Items]
Expenses	$ 8,026	$ 0	$ 8,026
Cash Outlays			14,153
Moy Park
Restructuring Cost and Reserve [Line Items]
Expenses			0
Cash Outlays			4,419
Pilgrim’s Pride Ltd.
Restructuring Cost and Reserve [Line Items]
Expenses			1,304
Cash Outlays			3,588
Pilgrim’s Food Masters
Restructuring Cost and Reserve [Line Items]
Expenses			6,722
Cash Outlays			$ 6,146

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RESTRUCTURING-RELATED ACTIVITIES - Schedule of Restructuring Reserve (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 26, 2023	Dec. 25, 2022
Restructuring Reserve [Roll Forward]
Cash payments and disposals		$ (14,153)
Moy Park
Restructuring Reserve [Roll Forward]
Beginning liability or reserve	$ 8,539
Restructuring charges incurred	0
Cash payments and disposals	(4,419)
Currency translation	91
Ending liability or reserve	4,211	8,539
Moy Park | Asset impairment costs
Restructuring Reserve [Roll Forward]
Beginning liability or reserve	2,391
Restructuring charges incurred	0
Cash payments and disposals	(2,837)
Currency translation	446
Ending liability or reserve	0	2,391
Moy Park | Inventory adjustments
Restructuring Reserve [Roll Forward]
Beginning liability or reserve	1
Restructuring charges incurred	0
Cash payments and disposals	(1)
Currency translation	0
Ending liability or reserve		1
Moy Park | Other charges
Restructuring Reserve [Roll Forward]
Beginning liability or reserve	6,025
Restructuring charges incurred	0
Cash payments and disposals	(1,539)
Currency translation	(356)
Ending liability or reserve	4,130	6,025
Moy Park | Contract termination costs
Restructuring Reserve [Roll Forward]
Beginning liability or reserve	122
Restructuring charges incurred	0
Cash payments and disposals	(42)
Currency translation	1
Ending liability or reserve	81	122
Pilgrim’s Pride Ltd.
Restructuring Reserve [Roll Forward]
Beginning liability or reserve	7,419
Restructuring charges incurred	1,304
Cash payments and disposals	(3,588)
Currency translation	91
Ending liability or reserve	5,226	7,419
Pilgrim’s Pride Ltd. | Employee retention benefits
Restructuring Reserve [Roll Forward]
Beginning liability or reserve	0
Restructuring charges incurred	319
Cash payments and disposals	0
Currency translation	3
Ending liability or reserve	322	0
Pilgrim’s Pride Ltd. | Severance
Restructuring Reserve [Roll Forward]
Beginning liability or reserve	5,503
Restructuring charges incurred	793
Cash payments and disposals	(3,588)
Currency translation	59
Ending liability or reserve	2,767	5,503
Pilgrim’s Pride Ltd. | Inventory adjustments
Restructuring Reserve [Roll Forward]
Beginning liability or reserve	615
Restructuring charges incurred	49
Cash payments and disposals	0
Currency translation	9
Ending liability or reserve	673	615
Pilgrim’s Pride Ltd. | Lease termination
Restructuring Reserve [Roll Forward]
Beginning liability or reserve	800
Restructuring charges incurred	0
Cash payments and disposals	0
Currency translation	12
Ending liability or reserve	812	800
Pilgrim’s Pride Ltd. | Other charges
Restructuring Reserve [Roll Forward]
Beginning liability or reserve	501
Restructuring charges incurred	143
Cash payments and disposals	0
Currency translation	8
Ending liability or reserve	652	501
Pilgrim’s Food Masters
Restructuring Reserve [Roll Forward]
Beginning liability or reserve	639
Restructuring charges incurred	6,722
Cash payments and disposals	(6,146)
Currency translation	30
Ending liability or reserve	1,245	639
Pilgrim’s Food Masters | Severance
Restructuring Reserve [Roll Forward]
Beginning liability or reserve	639
Restructuring charges incurred	4,736
Cash payments and disposals	(5,379)
Currency translation	4
Ending liability or reserve	0	639
Pilgrim’s Food Masters | Inventory adjustments
Restructuring Reserve [Roll Forward]
Beginning liability or reserve	0
Restructuring charges incurred	542
Cash payments and disposals	(542)
Currency translation	0
Ending liability or reserve	0	0
Pilgrim’s Food Masters | Lease termination
Restructuring Reserve [Roll Forward]
Beginning liability or reserve	0
Restructuring charges incurred	1,219
Cash payments and disposals	0
Currency translation	26
Ending liability or reserve	1,245	0
Pilgrim’s Food Masters | Other charges
Restructuring Reserve [Roll Forward]
Beginning liability or reserve	0
Restructuring charges incurred	225
Cash payments and disposals	(225)
Currency translation	0
Ending liability or reserve	$ 0	$ 0

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RELATED PARTY TRANSACTIONS - Schedule of Related Party Transactions) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022	Dec. 25, 2022
Related Party Transaction [Line Items]
Sales to related parties:	$ 9,335	$ 5,878
Cost of goods purchased from related parties:	60,899	69,097
Expenditures paid on behalf of related parties:	3,384	32,525
Accounts receivable from related parties	2,125		$ 2,512
Accounts payable to related parties:	20,481		12,155
JBS USA Food Company
Related Party Transaction [Line Items]
Sales to related parties:	7,512	4,611
Cost of goods purchased from related parties:	49,905	61,903
Expenditures paid by related parties:	14,022	24,178
Expenditures paid on behalf of related parties:	3,380	32,525
Accounts receivable from related parties	730		2,062
Accounts payable to related parties:	9,917		7,434
JBS Chile Ltda.
Related Party Transaction [Line Items]
Sales to related parties:	946	52
Accounts receivable from related parties	871		3
Other related parties
Related Party Transaction [Line Items]
Sales to related parties:	877	1,215
Cost of goods purchased from related parties:	897	62
Expenditures paid on behalf of related parties:	4	0
Accounts receivable from related parties	524		447
Accounts payable to related parties:	8		117
Seara Meats BV
Related Party Transaction [Line Items]
Cost of goods purchased from related parties:	4,999	1,468
Accounts payable to related parties:	4,043		1,565
Penasul UK LTD
Related Party Transaction [Line Items]
Cost of goods purchased from related parties:	4,187	3,540
Accounts payable to related parties:	2,408		940
JBS Asia Co Limited
Related Party Transaction [Line Items]
Cost of goods purchased from related parties:	911	$ 2,124
Accounts payable to related parties:	$ 4,105		$ 2,099

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REPORTABLE SEGMENTS - Narrative (Details)	3 Months Ended
	Mar. 26, 2023 segment
Segment Reporting [Abstract]
Number of reportable business segments	3

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REPORTABLE SEGMENTS - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Segment Reporting Information [Line Items]
Net sales	$ 4,165,628	$ 4,240,395
Reportable segment profit (loss)	31,343	402,013
Interest expense, net of capitalized interest	42,662	36,296
Interest income	(3,600)	(1,274)
Foreign currency transaction losses	18,143	11,536
Miscellaneous, net	(22,653)	(324)
Income (loss) before income taxes	(3,209)	355,779
Income tax expense (benefit)	(8,840)	75,219
Net income	5,631	280,560
Eliminations
Segment Reporting Information [Line Items]
Net sales	31,000	43,400
Reportable segment profit (loss)	13	14
U.S.
Segment Reporting Information [Line Items]
Net sales	2,432,568	2,581,208
U.S. | Operating Segments
Segment Reporting Information [Line Items]
Reportable segment profit (loss)	(28,106)	355,075
U.K. and Europe
Segment Reporting Information [Line Items]
Net sales	1,239,264	1,191,982
U.K. and Europe | Operating Segments
Segment Reporting Information [Line Items]
Reportable segment profit (loss)	25,261	(21,640)
Mexico
Segment Reporting Information [Line Items]
Net sales	493,796	467,205
Mexico | Operating Segments
Segment Reporting Information [Line Items]
Reportable segment profit (loss)	$ 34,175	$ 68,564

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REPORTABLE SEGMENTS - Schedule of Segment Reporting, Goodwill and Assets (Details) - USD ($) $ in Thousands	Mar. 26, 2023	Dec. 25, 2022
Segment Reporting Information [Line Items]
Total assets by reportable segment	$ 9,227,505	$ 9,255,769
Long-lived assets by reportable segment	3,287,470	3,246,644
Eliminations
Segment Reporting Information [Line Items]
Total assets by reportable segment	(3,012,665)	(2,917,486)
Long-lived assets by reportable segment	(3,661)	(3,675)
U.S. | Operating Segments
Segment Reporting Information [Line Items]
Total assets by reportable segment	6,813,350	6,847,209
Long-lived assets by reportable segment	1,983,051	1,943,967
U.K. and Europe | Operating Segments
Segment Reporting Information [Line Items]
Total assets by reportable segment	4,124,386	4,033,990
Long-lived assets by reportable segment	1,009,838	1,011,283
Mexico | Operating Segments
Segment Reporting Information [Line Items]
Total assets by reportable segment	1,302,434	1,292,056
Long-lived assets by reportable segment	$ 298,242	$ 295,069

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COMMITMENTS AND CONTINGENCIES (Details)				1 Months Ended		3 Months Ended	45 Months Ended
	Mar. 09, 2023 USD ($)	May 27, 2022 USD ($)	Jun. 14, 2021 USD ($)	Apr. 17, 2017 defendant	Oct. 13, 2016 claim	Mar. 26, 2023 USD ($)	Sep. 01, 2021 claim
Loss Contingencies [Line Items]
Loss contingency, loss in period						$ 0
Broiler Chicken Antitrust Litigation
Loss Contingencies [Line Items]
Number of complaints filed | claim					3		82
Broiler Chicken Antitrust Litigation | Settled Litigation
Loss Contingencies [Line Items]
Expense from settlement		$ 195,500,000
Settlement expense						514,400,000
Jien v. Perdue Farms, Inc. and Earnest v. Perdue Farms, Inc. et al | Settled Litigation
Loss Contingencies [Line Items]
Fines to be paid			$ 29,000,000
Washington v. Tyson Foods Inc | Settled Litigation | Damages from Product Defects
Loss Contingencies [Line Items]
Settlement expense	$ 11,000,000
DiSalvio and Brima v. Tomazoni, et al., 2017 CV 30207 | Pending Litigation | Executive Officer
Loss Contingencies [Line Items]
Number of defendants | defendant				2
Mexican Tax Authority | Foreign Tax Authority
Loss Contingencies [Line Items]
Estimate of possible loss						267,700,000
Mexican Tax Authority | Foreign Tax Authority | Avícola Litigation
Loss Contingencies [Line Items]
Income tax examination, amount under appeal						15,800,000
Mexican Tax Authority | Foreign Tax Authority | Avícola Litigation | Settled Litigation
Loss Contingencies [Line Items]
Tax settlement amount						$ 25,900,000

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BUSINESS INTERRUPTION INSURANCE (Details) $ in Millions	3 Months Ended
	Mar. 26, 2023 USD ($)
Business Interruption Loss [Line Items]
Proceeds from business interruption insurance recovery	$ 1.2
Gain on business interruption insurance recovery	$ 35.9
Gain on Business Interruption Insurance Recovery, Statement of Income or Comprehensive Income [Extensible Enumeration]	Miscellaneous, net
U.S.
Business Interruption Loss [Line Items]
Gain on business interruption insurance recovery	$ 25.3
U.K. and Europe
Business Interruption Loss [Line Items]
Gain on business interruption insurance recovery	$ 10.6