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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 Europe1,239,264 1,191,982 
Mexico493,796 467,205 
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 $43.4 million. These sales consisted of fresh products, prepared products and grain.
Three Months Ended
March 26, 2023March 27, 2022
(In thousands)
Reportable segment profit (loss):
U.S.$(28,106)$355,075 
U.K. and Europe25,261 (21,640)
Mexico34,175 68,564 
Eliminations13 14 
Total operating income31,343 402,013 
Interest expense, net of capitalized interest42,662 36,296 
Interest income(3,600)(1,274)
Foreign currency transaction losses18,143 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, 2023December 25, 2022
(In thousands)
Total assets by reportable segment:
U.S.$6,813,350 $6,847,209 
U.K. and Europe4,124,386 4,033,990 
Mexico1,302,434 1,292,056 
Eliminations(3,012,665)(2,917,486)
Total assets$9,227,505 $9,255,769 
March 26, 2023December 25, 2022
(In thousands)
Long-lived assets by reportable segment(a):
U.S.$1,983,051 $1,943,967 
U.K. and Europe1,009,838 1,011,283 
Mexico298,242 295,069 
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.