Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 28, 2014 | Feb. 11, 2015 | Jun. 29, 2014 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 28-Dec-14 | ||
Entity Registrant Name | PILGRIMS PRIDE CORP | ||
Entity Central Index Key | 802481 | ||
Current Fiscal Year End Date | -16 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 259,700,145 | ||
Entity Public Float | $905,871,034 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Cash and cash equivalents | $576,143 | $508,206 |
Investment in available-for-sale securities | 0 | 96,902 |
Trade accounts and other receivables, less allowance for doubtful accounts | 378,890 | 376,678 |
Accounts receivable from related parties | 5,250 | 2,388 |
Inventories | 790,305 | 808,832 |
Income taxes receivable | 10,288 | 64,868 |
Current deferred tax assets | 27,345 | 2,227 |
Prepaid expenses and other current assets | 95,439 | 61,848 |
Assets held for sale | 1,419 | 7,033 |
Total current assets | 1,885,079 | 1,928,982 |
Deferred tax assets | 0 | 18,921 |
Other long-lived assets | 24,406 | 40,163 |
Identified intangible assets, net | 26,783 | 32,525 |
Property, plant and equipment, net | 1,182,795 | 1,151,811 |
Total assets | 3,119,063 | 3,172,402 |
Accounts payable | 399,486 | 370,360 |
Accounts payable to related parties | 4,862 | 3,934 |
Accrued expenses | 311,879 | 283,355 |
Income taxes payable | 3,068 | 0 |
Current deferred tax liabilities | 25,301 | 15,515 |
Current maturities of long-term debt | 262 | 410,234 |
Total current liabilities | 744,858 | 1,083,398 |
Long-term debt, less current maturities | 3,980 | 501,999 |
Deferred tax liabilities | 76,216 | 13,944 |
Other long-term liabilities | 97,208 | 80,459 |
Total liabilities | 922,262 | 1,679,800 |
Commitments and contingencies | ||
Preferred stock, $.01 par value, 50,000,000 shares authorized; no shares issued | 0 | 0 |
Common stock, $.01 par value, 800,000,000 shares authorized; 259,029,033 shares issued and outstanding at year-end 2014 and 2013 | 2,590 | 2,590 |
Additional paid-in capital | 1,662,354 | 1,653,119 |
Retained earnings (accumulated deficit) | 591,492 | -120,156 |
Accumulated other comprehensive loss | -62,541 | -45,735 |
Total Pilgrim’s Pride Corporation stockholders’ equity | 2,193,895 | 1,489,818 |
Noncontrolling interest | 2,906 | 2,784 |
Total stockholders’ equity | 2,196,801 | 1,492,602 |
Total liabilities and stockholders' equity | $3,119,063 | $3,172,402 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 800,000,000 | 800,000,000 |
Common stock, shares issued | 259,029,033 | 259,029,033 |
Common stock, shares outstanding | 259,029,033 | 259,029,033 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Income Statement [Abstract] | |||
Net sales | $8,583,365 | $8,411,148 | $8,121,382 |
Cost of sales | 7,189,370 | 7,565,709 | 7,685,550 |
Gross profit | 1,393,995 | 845,439 | 435,832 |
Selling, general and administrative expense | 188,594 | 180,915 | 177,041 |
Administrative restructuring charges | 2,286 | 5,661 | 8,449 |
Operating income | 1,203,115 | 658,863 | 250,342 |
Interest expense, net of capitalized interest | 82,097 | 87,006 | 104,926 |
Interest income | -4,826 | -2,125 | -1,397 |
Foreign currency transaction losses (gains) | 27,979 | 4,415 | -4,810 |
Miscellaneous, net | -4,526 | -4,373 | -1,439 |
Income before income taxes | 1,102,391 | 573,940 | 153,062 |
Income tax expense (benefit) | 390,953 | 24,227 | -20,980 |
Net income | 711,438 | 549,713 | 174,042 |
Less: Net income (loss) attributable to noncontrolling interest | -210 | 158 | -192 |
Net income attributable to Pilgrim’s Pride Corporation | $711,648 | $549,555 | $174,234 |
Weighted average shares of common stock outstanding: | |||
Basic (in shares) | 258,974 | 258,826 | 250,101 |
Effect of dilutive common stock equivalents (in shares) | 497 | 415 | 115 |
Diluted (in shares) | 259,471 | 259,241 | 250,216 |
Net income attributable to Pilgrim's Pride Corporation per share of common stock outstanding: | |||
Basic (in dollars per share) | $2.75 | $2.12 | $0.70 |
Diluted (in dollars per share) | $2.74 | $2.12 | $0.70 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $711,438 | $549,713 | $174,042 |
Other comprehensive income (loss): | |||
Unrealized holding gains (losses) on available-for-sale securities, net of tax of $19, $0 and $0, respectively | -31 | 62 | -12 |
Gain (loss) associated with pension and other postretirement benefits, net of tax of $(10,173), $13,774 and $0, respectively | -16,775 | 22,714 | -22,429 |
Total other comprehensive income (loss) | -16,806 | 22,776 | -22,441 |
Comprehensive income | 694,632 | 572,489 | 151,601 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | -210 | 158 | -192 |
Comprehensive income attributable to Pilgrim's Pride Corporation | $694,842 | $572,331 | $151,793 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Unrealized holding gains (losses) on available-for-sale securities, tax | $19 | $0 | $0 |
Gains (losses) associated with pension and other postretirement benefits, tax | ($10,173) | $13,774 | $0 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Loss [Member] | Noncontrolling Interests [Member] |
In Thousands, except Share data, unless otherwise specified | ||||||
Balance at Dec. 25, 2011 | $558,430 | $2,143 | $1,443,484 | ($843,945) | ($46,070) | $2,818 |
Balance, shares at Dec. 25, 2011 | 214,282,000 | |||||
Comprehensive income (loss): | ||||||
Net income | 174,042 | 174,234 | -192 | |||
Other comprehensive income (loss), net of tax: | ||||||
Net unrealized holding gains (losses) on available-for-sale securities, net of tax | -12 | -12 | ||||
Gains (losses) associated with pension and other postretirement benefits, net of tax | -22,429 | -22,429 | ||||
Common stock issued | 198,281 | 444 | 197,837 | |||
Common stock issued (in shares) | 44,444,000 | |||||
Share-based compensation plans: | ||||||
Common stock issued under compensation plans | 3 | 3 | ||||
Common stock issued under compensation plans (in shares) | 273,000 | |||||
Requisite service period recognition | 682 | 0 | 682 | |||
Balance at Dec. 30, 2012 | 908,997 | 2,590 | 1,642,003 | -669,711 | -68,511 | 2,626 |
Balance, shares at Dec. 30, 2012 | 258,999,000 | |||||
Comprehensive income (loss): | ||||||
Net income | 549,713 | 549,555 | 158 | |||
Other comprehensive income (loss), net of tax: | ||||||
Net unrealized holding gains (losses) on available-for-sale securities, net of tax | 62 | 62 | ||||
Gains (losses) associated with pension and other postretirement benefits, net of tax | 22,714 | 22,714 | ||||
Share-based compensation plans: | ||||||
Common stock issued under compensation plans | 0 | 0 | ||||
Common stock issued under compensation plans (in shares) | 30,000 | |||||
Requisite service period recognition | 3,345 | 3,345 | ||||
Tax benefit related to share-based compensation | 7,771 | 7,771 | ||||
Balance at Dec. 29, 2013 | 1,492,602 | 2,590 | 1,653,119 | -120,156 | -45,735 | 2,784 |
Balance, shares at Dec. 29, 2013 | 259,029,000 | |||||
Comprehensive income (loss): | ||||||
Net income | 711,438 | 711,648 | -210 | |||
Other comprehensive income (loss), net of tax: | ||||||
Net unrealized holding gains (losses) on available-for-sale securities, net of tax | -31 | -31 | ||||
Gains (losses) associated with pension and other postretirement benefits, net of tax | -16,775 | -16,775 | ||||
Common stock issued | 332 | 332 | ||||
Equity contribution under Tax Sharing Agreement between JBS USA Holdings Inc. and Pilgrim's Pride Corporation | 3,849 | 3,849 | ||||
Share-based compensation plans: | ||||||
Requisite service period recognition | 4,928 | 4,928 | ||||
Tax benefit related to share-based compensation | 458 | 458 | ||||
Balance at Dec. 28, 2014 | $2,196,801 | $2,590 | $1,662,354 | $591,492 | ($62,541) | $2,906 |
Balance, shares at Dec. 28, 2014 | 259,029,000 |
CONSOLIDATED_STATEMENTS_OF_STO1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Statement of Stockholders' Equity [Abstract] | |||
Other comprehensive income (loss), unrealized holding gain (loss) on securities arising during period, tax | $19 | $0 | $0 |
Other comprehensive income (loss), pension and other postretirement benefit plans, tax | ($10,173) | $13,774 | $0 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Cash flows from operating activities: | |||
Net income | $711,438 | $549,713 | $174,042 |
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: | |||
Depreciation and amortization | 155,824 | 150,523 | 147,414 |
Asset impairment | 0 | 4,004 | 2,770 |
Foreign currency transaction losses (gains) | 38,129 | 3,382 | -5,261 |
Accretion of bond discount | 2,243 | 456 | 456 |
Loss (gain) on property disposals | -1,407 | 2,395 | 5,306 |
Share-based compensation | 4,928 | 3,345 | 684 |
Deferred income tax expense (benefit) | 78,943 | -4,999 | -1,098 |
Changes in operating assets and liabilities: | |||
Restricted cash and cash equivalents | 0 | 0 | 12,680 |
Trade accounts and other receivables | -9,526 | 7,235 | -14,137 |
Inventories | 10,638 | 142,675 | -65,870 |
Prepaid expenses and other current assets | -38,010 | -6,070 | -2,600 |
Accounts payable and accrued expenses | 44,833 | 49,625 | -16,520 |
Income taxes | 74,705 | -21,546 | -33,714 |
Deposits | 0 | 1,877 | 1,783 |
Long-term pension and other postretirement obligations | -5,784 | -6,837 | -2,700 |
Other | -262 | 2,755 | -3,611 |
Cash provided by operating activities | 1,066,692 | 878,533 | 199,624 |
Cash flows from investing activities: | |||
Acquisitions of property, plant and equipment | -171,443 | -116,223 | -90,327 |
Purchases of investment securities | -55,100 | -96,902 | -162 |
Proceeds from sale or maturity of investment securities | 152,050 | 0 | 688 |
Proceeds from property disposals | 11,108 | 31,337 | 29,400 |
Cash used in investing activities | -63,385 | -181,788 | -60,401 |
Cash flows from financing activities: | |||
Payments on notes payable to JBS USA | 0 | 0 | -50,000 |
Proceeds from long-term debt | 0 | 505,600 | 851,400 |
Payments on long-term debt | -910,234 | -758,578 | -1,110,711 |
Proceeds from sale of subsidiary common stock | 332 | 0 | 198,282 |
Proceeds from equity contribution under Tax Sharing Agreement between JBS USA Holdings Inc. and Pilgrim's Pride Corporation | 3,849 | 0 | 0 |
Tax benefit related to share-based compensation | 458 | 7,771 | 0 |
Payment of capitalized loan costs | 0 | -5,007 | 0 |
Cash used in financing activities | -905,595 | -250,214 | -111,029 |
Effect of exchange rate changes on cash and cash equivalents | -29,775 | -6,505 | -1,623 |
Increase (decrease) in cash and cash equivalents | 67,937 | 440,026 | 26,571 |
Cash and cash equivalents, beginning of period | 508,206 | 68,180 | 41,609 |
Cash and cash equivalents, end of period | 576,143 | 508,206 | 68,180 |
Supplemental Disclosure Information: | |||
Interest paid (net of amount capitalized) | 71,558 | 80,320 | 96,657 |
Income taxes paid | $257,152 | $30,057 | $10,931 |
BUSINESS_AND_SUMMARY_OF_SIGNIF
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 28, 2014 | |
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.”), Mexico and Puerto Rico. 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 United States and Puerto Rico and in the northern and central regions of Mexico. Additionally, the Company exports chicken products to approximately 95 countries. Pilgrim's fresh chicken products consist of refrigerated (nonfrozen) whole chickens, whole cut-up chickens and selected chicken parts that are either marinated or non-marinated. The Company's prepared chicken products include fully cooked, ready-to-cook and individually frozen chicken parts, strips, nuggets and patties, some of which are either breaded or non-breaded and either marinated or non-marinated. As a vertically integrated company, we control every phase of the production of our products. We operate feed mills, hatcheries, processing plants and distribution centers in 12 U.S. states, Puerto Rico and Mexico. Pilgrim's has approximately 35,000 employees and has the capacity to process more than 35 million birds per week for a total of more than 10 billion pounds of live chicken annually. Approximately 3,750 contract growers supply poultry for the Company's operations. As of December 28, 2014, JBS USA Holdings, Inc. (“JBS USA”), an indirect subsidiary of Brazil-based JBS S.A., beneficially owned 75.5% of the Company's outstanding common stock. | |
Consolidated Financial Statements | |
The Company operates on the basis of a 52/53-week fiscal year ending on the Sunday falling on or before December 31. The reader should assume any reference we make to a particular year (for example, 2014) in the notes to these Consolidated Financial Statements applies to our fiscal year and not the calendar year. | |
The consolidated financial statements include the accounts of Pilgrim’s Pride Corporation and its majority owned subsidiaries. We eliminate all significant affiliate accounts and transactions upon consolidation. | |
The Company measures the financial statements of its Mexico subsidiaries as if the U.S. dollar were the functional currency. Accordingly, we remeasure assets and liabilities, other than non-monetary assets, of the Mexico subsidiaries at current exchange rates. We remeasure nonmonetary assets using the historical exchange rate in effect on the date of each asset's acquisition. We remeasure income and expenses at average exchange rates in effect during the period, except for certain accounts which are remeasured at a historical rate. Currency exchange gains or losses are included in the line item Foreign currency transaction losses (gains) in the Consolidated Statements of Operations. | |
Revenue Recognition | |
We recognize revenue when all of the following circumstances are satisfied: (i) persuasive evidence of an arrangement exits, (ii) price is fixed or determinable, (iii) collectability is reasonably assured and (iv) delivery has occurred. Delivery occurs in the period in which the customer takes title and assumes the risks and rewards of ownership of the products specified in the customer's purchase order or sales agreement. Revenue is recorded net of estimated incentive offerings including special pricing agreements, promotions and other volume-based incentives. Revisions to these estimates are charged back to net sales in the period in which the facts that give rise to the revision become known. Taxes collected from customers and remitted to governmental authorities are excluded from revenues. | |
Shipping and Handling Costs | |
Costs associated with the products shipped to customers are recognized in cost of sales. | |
Advertising Costs | |
The Company expenses advertising costs as incurred. Advertising costs are included in selling, general and administrative expenses and totaled $4.4 million, $4.9 million and $6.5 million for 2014, 2013 and 2012, respectively. | |
Research and Development Costs | |
Research and development costs are expensed as incurred. Research and development costs totaled $3.8 million, $3.9 million and $3.8 million for 2014, 2013 and 2012, respectively. | |
Cash and Cash Equivalents | |
The Company considers highly liquid investments with a maturity of three months or less when acquired to be cash equivalents. The majority of the Company's disbursement bank accounts are zero balance accounts where cash needs are funded as checks are presented for payment by the holder. Checks issued pending clearance that result in overdraft balances for accounting purposes are classified as accounts payable and the change in the related balance is reflected in operating activities on the Consolidated Statements of Cash Flows. | |
Investments in Securities | |
The Company’s current investments are comprised of fixed income securities, primarily commercial paper. These investments are classified as available-for-sale. These securities are recorded at fair value, and unrealized holding gains and losses are recorded, net of tax, as a separate component of accumulated other comprehensive income. Investments in fixed income securities with remaining maturities of less than one year and those identified by management at the time of purchase for funding operations in less than one year are classified as current assets. Investments in fixed income securities with remaining maturities in excess of one year that management has not identified at the time of purchase for funding operations in less than one year are classified as long-term assets. Unrealized losses are charged against net earnings when a decline in fair value is determined to be other than temporary. Management reviews several factors to determine whether a loss is other than temporary, such as the length of time a security is in an unrealized loss position, the extent to which fair value is less than amortized cost, the impact of changing interest rates in the short and long term, and the Company’s intent and ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. The Company determines the cost of each security sold and each amount reclassified out of accumulated other comprehensive income into earnings using the specific identification method. Purchases and sales are recorded on a trade date basis. | |
Investments in entities in which the Company has an ownership interest greater than 50% and exercises control over the entity are consolidated in the Consolidated Financial Statements. Investments in entities in which the Company has an ownership interest between 20% and 50% and exercises significant influence are accounted for using the equity method. The Company invests from time to time in ventures in which its ownership interest is less than 20% and over which it does not exercise significant influence. Such investments are accounted for under the cost method. The fair values for investments not traded on a quoted exchange are estimated based upon the historical performance of the ventures, the ventures’ forecasted financial performance and management’s evaluation of the ventures’ viability and business models. To the extent the book value of an investment exceeds its assessed fair value, the Company will record an appropriate impairment charge. Thus, the carrying value of the Company’s investments approximates fair value. | |
Accounts Receivable | |
The Company records accounts receivable when revenue is recognized. We record an allowance for doubtful accounts, reducing our receivables balance to an amount we estimate is collectible from our customers. Estimates used in determining the allowance for doubtful accounts 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. | |
Inventories | |
Live chicken inventories are stated at the lower of cost or market and breeder hens at the lower of cost, less accumulated amortization, or market. The costs associated with breeder hens are accumulated up to the production stage and amortized over their productive lives using the unit-of-production method. Finished poultry products, feed, eggs and other inventories are stated at the lower of cost (average) or market. | |
We record valuation adjustments for our inventory and for estimated obsolescence at or equal to the difference between the cost of inventory and the estimated market value based upon known conditions affecting inventory, including significantly aged products, discontinued product lines, or damaged or obsolete products. We allocate meat costs between our various finished chicken products based on a by-product costing technique that reduces the cost of the whole bird by estimated yields and amounts to be recovered for certain by-product parts. This primarily includes leg quarters, wings, tenders and offal, which are carried in inventory at the estimated recovery amounts, with the remaining amount being reflected as our breast meat cost. | |
Generally, the Company performs an evaluation of whether any lower of cost or market adjustments are required at the country level based on a number of factors, including: (i) pools of related inventory, (ii) product continuation or discontinuation, (iii) estimated market selling prices and (iv) expected distribution channels. If actual market conditions or other factors are less favorable than those projected by management, additional inventory adjustments may be required. | |
Property, Plant and Equipment | |
Property, plant and equipment are stated at cost, and repair and maintenance costs are expensed as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of these assets. Estimated useful lives for building, machinery and equipment are five to 33 years and for automobiles and trucks are three to ten years. The charge to income resulting from amortization of assets recorded under capital leases is included with depreciation expense. | |
The Company records impairment charges on long-lived assets held for use when events and circumstances indicate that the assets may be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets. When the above is true, the impairment charge is determined based upon the amount the net book value of the assets exceeds their fair market value. In making these determinations, the Company utilizes certain assumptions, including, but not limited to: (i) future cash flows estimated to be generated by these assets, which are based on additional assumptions such as asset utilization, remaining length of service and estimated salvage values, (ii) estimated fair market value of the assets and (iii) determinations with respect to the lowest level of cash flows relevant to the respective impairment test, generally groupings of related operational facilities. Given the interdependency of the Company’s individual facilities during the production process, which operate as a vertically integrated network, it evaluates impairment of assets held for use at the country level (i.e., the U.S. and Mexico). Management believes this is the lowest level of identifiable cash flows for its assets that are held for use in production activities. At the present time, the Company’s forecasts indicate that it can recover the carrying value of its assets held for use based on the projected undiscounted cash flows of the operations. | |
The Company records impairment charges on long-lived assets held for sale when the carrying amount of those assets exceeds their fair value less appropriate selling costs. Fair value is based on amounts documented in sales contracts or letters of intent accepted by the Company, amounts included in counteroffers initiated by the Company, or, in the absence of current contract negotiations, amounts determined using a sales comparison approach for real property and amounts determined using a cost approach for personal property. Under the sales comparison approach, sales and asking prices of reasonably comparable properties are considered to develop a range of unit prices within which the current real estate market is operating. Under the cost approach, a current cost to replace the asset new is calculated and then the estimated replacement cost is reduced to reflect the applicable decline in value resulting from physical deterioration, functional obsolescence and economic obsolescence. Appropriate selling costs includes reasonable broker's commissions, costs to produce title documents, filing fees, legal expenses and the like. We estimate appropriate closing costs as 4% to 6% of asset fair value. This range of rates is considered reasonable for our assets held for sale based on historical experience. | |
Identified Intangible Assets | |
Our identified intangible assets consist of assets subject to amortization such as trade names, customer relationships and non-compete agreements. We calculate amortization of those assets that are subject to amortization on a straight-line basis over the estimated useful lives of the related assets. The useful lives range from three to 15 years for trade names and non-compete agreements and 13 years for customer relationships. | |
We review intangible assets subject to amortization for impairment whenever an event or change in circumstances indicates the carrying values of the assets may not be recoverable. We test intangible assets subject to amortization for impairment and estimate their fair values using the same assumptions and techniques we employ on property, plant and equipment. | |
Book Overdraft Balances | |
The majority of the Company's disbursement bank accounts are zero balance accounts where cash needs are funded as checks are presented for payment by the holder. Checks issued pending clearance that result in overdraft balances for accounting purposes are classified as accounts payable and the change in the related balance is reflected in operating activities on the Consolidated Statements of Cash Flows. | |
Litigation and Contingent Liabilities | |
The Company is subject to lawsuits, investigations and other claims related to employment, environmental, product and other matters. The Company is required to assess the likelihood of any adverse judgments or outcomes, as well as potential ranges of probable losses, to these matters. The Company estimates the amount of reserves required for these contingencies when losses are determined to be probable and after considerable analysis of each individual issue. The Company expenses legal costs related to such loss contingencies as they are incurred. The accrual for environmental remediation liabilities is measured on an undiscounted basis. These reserves may change in the future due to changes in the Company’s assumptions, the effectiveness of strategies, or other factors beyond the Company’s control. | |
Accrued Self Insurance | |
Insurance expense for casualty claims and employee-related health care benefits are estimated using historical and current experience and actuarial estimates. Stop-loss coverage is maintained with third-party insurers to limit the Company’s total exposure. Certain categories of claim liabilities are actuarially determined. The assumptions used to arrive at periodic expenses are reviewed regularly by management. However, actual expenses could differ from these estimates and could result in adjustments to be recognized. | |
Income Taxes | |
The Company follows provisions under ASC 740-10-30-27 in the Expenses-Income Taxes topic with regard to members of a group that file a consolidated tax return but issue separate financial statements. The Company files its own U.S. federal tax return, but it is included in certain state consolidated returns with JBS USA. The income tax expense of the Company is computed using the separate return method. The provision for income taxes has been determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred income taxes reflect the net tax effect of temporary differences between the book and tax bases of recorded assets and liabilities, net operating losses and tax credit carry forwards. The amount of deferred tax on these temporary differences is determined using the tax rates expected to apply to the period when the asset is realized or the liability is settled, as applicable, based on the tax rates and laws in the respective tax jurisdiction enacted as of the balance sheet date. | |
The Company reviews its deferred tax assets for recoverability and establishes a valuation allowance based on historical taxable income, potential for carry back of tax losses, projected future taxable income, applicable tax strategies, and the expected timing of the reversals of existing temporary differences. A valuation allowance is provided when it is more likely than not that some or all of the deferred tax assets will not be realized. Valuation allowances have been established primarily for net operating loss carry forwards of certain foreign subsidiaries. See “Note 11. Income Taxes” to the Consolidated Financial Statements. | |
The Company deems its earnings from Mexico as of December 28, 2014 to be permanently reinvested. As such, U.S. deferred income taxes have not been provided on these earnings. If such earnings were not considered indefinitely reinvested, certain deferred foreign and U.S. income taxes would be provided. For activity after 2008, the Company did not permanently reinvest its earnings in Puerto Rico. Therefore, net earnings generated in Puerto Rico have U.S. taxes provided as if the earnings were distributed. | |
The Company follows provisions under ASC 740-10-25 that provide a recognition threshold and measurement criteria for the financial statement recognition of a tax benefit taken or expected to be taken in a tax return. Tax benefits are recognized only when it is more likely than not, based on the technical merits, that the benefits will be sustained on examination. Tax benefits that meet the more-likely-than-not recognition threshold are measured using a probability weighting of the largest amount of tax benefit that has greater than 50% likelihood of being realized upon settlement. Whether the more-likely-than-not recognition threshold is met for a particular tax benefit is a matter of judgment based on the individual facts and circumstances evaluated in light of all available evidence as of the balance sheet date. See “Note 11. Income Taxes” to the Consolidated Financial Statements. | |
Pension and Other Postemployment Benefits | |
Our pension and other postemployment benefit costs and obligations are dependent on the various actuarial assumptions used in calculating such amounts. These assumptions relate to discount rates, long-term return on plan assets and other factors. We base the discount rate assumptions on current investment yields on high-quality corporate long-term bonds. We determine the long-term return on plan assets based on historical portfolio results and management’s expectation of the future economic environment. Actual results that differ from our assumptions are accumulated and, if in excess of the lesser of 10% of the projected benefit obligation or the fair market value of plan assets, amortized over either (i) the estimated average future service period of active plan participants if the plan is active or (ii) the estimated average future life expectancy of all plan participants if the plan is frozen. | |
Operating Leases | |
Rent expense for operating leases is recorded on a straight-line basis over the lease term unless the lease contains an escalation clause which is not fixed or determinable. The lease term begins when we have the right to control the use of the leased property, which is typically before rent payments are due under the terms of the lease. If a lease has a fixed or determinable escalation clause, the difference between rent expense and rent paid is recorded as deferred rent and is included in the Consolidated Balance Sheets. Rent for operating leases that do not have an escalation clause or where escalation is based on an inflation index is expensed over the lease term as it is payable. | |
Risk Management | |
The Company attempts to mitigate commodity purchase exposures through a program of risk management that includes the use of forward purchase contractual obligations and derivative financial instruments. The Company will also occasionally purchase derivative financial instruments in an attempt to mitigate currency exchange rate exposure related to the net assets of its Mexico operations that are denominated in Mexican pesos. The Company's Mexico subsidiaries also attempt to mitigate the foreign currency exposure on certain U.S. dollar-denominated transactions through the use of derivative financial instruments. We recognize all derivative financial instruments in the Consolidated Balance Sheets at fair value. We elected not to designate derivative financial instruments executed to mitigate commodity purchase exposures and foreign currency exposures as hedges of forecasted transactions. Therefore, we recognize changes in the fair value of these derivative financial instruments immediately in earnings. Gains or losses related to both the commodity derivative financial instruments and the foreign currency derivative financial instruments are included in the line item Cost of sales in the Consolidated Statements of Operations. | |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. We make significant estimates in regard to receivables collectability; inventory valuation; realization of deferred tax assets; valuation of long-lived assets; valuation of contingent liabilities, liabilities subject to compromise and self insurance liabilities; valuation of pension and other postretirement benefits obligations; and valuation of acquired businesses. | |
Recent Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance on revenue recognition, which provides for a single five-step model to be applied to all revenue contracts with customers. The new standard also requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. There is no option for early adoption. The provisions of the new guidance will be effective as of the beginning of our 2017 fiscal year. We are currently evaluating the impact of the new guidance on our financial statements and have not yet selected a transition approach to implement the standard. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | ||||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS | ||||||||||||||||||
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 in active markets for identical assets or liabilities; | ||||||||||||||||||
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 December 28, 2014 and December 29, 2013, the Company held certain items that were required to be measured at fair value on a recurring basis. These included derivative assets and liabilities and deferred compensation plan assets. Derivative assets and liabilities consist of long and short positions on exchange-traded commodity and foreign currency derivative instruments. The Company maintains nonqualified deferred compensation plans for executives and other highly compensated employees. Investments are maintained within a trust and include money market funds, mutual funds and life insurance policies. The cash surrender value of the life insurance policies is invested primarily in mutual funds. The following items were measured at fair value on a recurring basis: | |||||||||||||||||||
December 28, 2014 | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
(In thousands) | |||||||||||||||||||
Derivative assets - commodity futures instruments | $ | 8,416 | $ | — | $ | — | $ | 8,416 | |||||||||||
Derivative assets - foreign currency futures instruments | 2,563 | — | — | 2,563 | |||||||||||||||
Deferred compensation plan assets | 6,753 | — | — | 6,753 | |||||||||||||||
Derivative liabilities - commodity futures instruments | (8,580 | ) | — | — | (8,580 | ) | |||||||||||||
Derivative liabilities - commodity options instruments | (14,103 | ) | — | — | (14,103 | ) | |||||||||||||
Long-term debt and other borrowing arrangements: | |||||||||||||||||||
Public bonds and notes | (3,979 | ) | — | — | (3,979 | ) | |||||||||||||
Capitalized lease obligations | — | — | (587 | ) | (587 | ) | |||||||||||||
December 29, 2013 | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
(In thousands) | |||||||||||||||||||
Short-term investments in available-for-sale securities | $ | — | $ | 96,902 | $ | — | $ | 96,902 | |||||||||||
Derivative assets - commodity futures instruments | 1,494 | — | — | 1,494 | |||||||||||||||
Derivative assets - commodity options instruments | — | 1,395 | — | 1,395 | |||||||||||||||
Derivative assets - foreign currency futures instruments | 1,214 | — | — | 1,214 | |||||||||||||||
Deferred compensation plan assets | 7,208 | — | — | 7,208 | |||||||||||||||
Derivative liabilities - commodity futures instruments | (1,728 | ) | — | — | (1,728 | ) | |||||||||||||
Long-term debt and other borrowing arrangements: | |||||||||||||||||||
Public bonds and notes | (552,592 | ) | — | — | (552,592 | ) | |||||||||||||
Term notes and revolver | — | — | (424,650 | ) | (424,650 | ) | |||||||||||||
Capitalized lease obligations | — | — | (704 | ) | (704 | ) | |||||||||||||
Term Notes and Revolver | Capitalized Lease Obligations | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Change in Value of Level 3 Liabilities: | (In thousands) | ||||||||||||||||||
Balance, beginning of period | $ | (424,650 | ) | $ | (686,435 | ) | $ | (704 | ) | $ | (880 | ) | |||||||
Borrowings | — | (509,500 | ) | — | — | ||||||||||||||
Payments | 410,099 | 762,091 | 135 | 124 | |||||||||||||||
Change in fair value inputs | 14,551 | 9,194 | (18 | ) | 52 | ||||||||||||||
Balance, end of period | $ | — | $ | (424,650 | ) | $ | (587 | ) | $ | (704 | ) | ||||||||
The valuation of financial assets and liabilities classified in Level 1 is determined using a market approach, taking into account current interest rates, creditworthiness, and liquidity risks in relation to current market conditions, and is based upon unadjusted quoted prices for identical assets 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. | |||||||||||||||||||
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 financial assets and liabilities recorded in the Consolidated Balance Sheets consisted of the following: | |||||||||||||||||||
28-Dec-14 | December 29, 2013 | ||||||||||||||||||
Carrying | Fair | Carrying | Fair | Note Reference | |||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||||
(In thousands) | |||||||||||||||||||
Short-term investments in available-for-sale securities | $ | — | $ | — | $ | 96,902 | $ | 96,902 | 5 | ||||||||||
Derivative assets - commodity futures instruments | 8,416 | 8,416 | 1,494 | 1,494 | 6 | ||||||||||||||
Derivative assets - commodity options instruments | — | — | 1,395 | 1,395 | 6 | ||||||||||||||
Derivative assets - foreign currency futures instruments | 2,563 | 2,563 | 1,214 | 1,214 | 6 | ||||||||||||||
Deferred compensation plan assets | 6,753 | 6,753 | 7,208 | 7,208 | |||||||||||||||
Derivative liabilities - commodity futures instruments | (8,580 | ) | (8,580 | ) | (1,728 | ) | (1,728 | ) | 6 | ||||||||||
Derivative liabilities - commodity options instruments | (14,103 | ) | (14,103 | ) | — | — | 6 | ||||||||||||
Long-term debt and other borrowing arrangements | (4,242 | ) | (4,566 | ) | (912,233 | ) | (977,946 | ) | 10 | ||||||||||
The carrying amounts of our cash and cash equivalents, derivative trading accounts' margin cash, restricted cash and 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 Consolidated Balance Sheet. Deferred compensation plan assets were recorded at fair value based on quoted market prices and are included in the line item Other assets in the 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 Consolidated Balance Sheet. The fair values of the Company’s long-term debt and other borrowing arrangements were estimated by calculating the net present value of future payments for each debt obligation or borrowing by: (i) using a risk-free rate applicable for an instrument with a life similar to the remaining life of each debt obligation or borrowing plus the current estimated credit risk spread for the Company or (ii) using the quoted market price at December 28, 2014 or December 29, 2013, 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. At December 28, 2014, long-lived assets held for sale had a fair value of $1.4 million. These assets are classified as Level 2 assets because their fair value can be corroborated based on observable market data. |
TRADE_ACCOUNTS_AND_OTHER_RECEI
TRADE ACCOUNTS AND OTHER RECEIVABLES | 12 Months Ended | |||||||
Dec. 28, 2014 | ||||||||
Accounts Receivable, Net [Abstract] | ||||||||
TRADE ACCOUNTS AND OTHER RECEIVABLES | TRADE ACCOUNTS AND OTHER RECEIVABLES | |||||||
Trade accounts and other receivables (including accounts receivable from related parties), less allowance for doubtful accounts, consisted of the following: | ||||||||
December 28, 2014 | December 29, 2013 | |||||||
(In thousands) | ||||||||
Trade accounts receivable | $ | 371,268 | $ | 369,715 | ||||
Accounts receivable from related parties(a) | 5,250 | 2,388 | ||||||
Receivables from officers and employees | — | 14 | ||||||
Notes receivable - current | 1,088 | — | ||||||
Other receivables | 9,059 | 11,005 | ||||||
Receivables, gross | 386,665 | 383,122 | ||||||
Allowance for doubtful accounts | (2,525 | ) | (4,056 | ) | ||||
Receivables, net | $ | 384,140 | $ | 379,066 | ||||
(a) | Additional information regarding accounts receivable from related parties is included in “Note 15. Related Party Transactions.” |
INVENTORIES
INVENTORIES | 12 Months Ended | |||||||
Dec. 28, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
INVENTORIES | INVENTORIES | |||||||
Inventories consisted of the following: | ||||||||
December 28, 2014 | December 29, 2013 | |||||||
(In thousands) | ||||||||
Live chicken and hens | $ | 363,438 | $ | 368,582 | ||||
Feed, eggs and other | 198,681 | 216,045 | ||||||
Finished chicken products | 227,649 | 223,932 | ||||||
Total chicken inventories | 789,768 | 808,559 | ||||||
Commercial feed, table eggs and other | 537 | 273 | ||||||
Total inventories | $ | 790,305 | $ | 808,832 | ||||
INVESTMENTS_IN_SECURITIES
INVESTMENTS IN SECURITIES | 12 Months Ended | |||||||||||||||
Dec. 28, 2014 | ||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||
INVESTMENTS IN SECURITIES | INVESTMENTS IN SECURITIES | |||||||||||||||
We recognize investments in available-for-sale securities as cash equivalents, current investments or long-term investments depending upon each security's length to maturity. Additionally, those securities identified by management at the time of purchase for funding operations in less than one year are classified as current. | ||||||||||||||||
The following table summarizes our investments in available-for-sale securities: | ||||||||||||||||
December 28, 2014 | December 29, 2013 | |||||||||||||||
Fair | Fair | |||||||||||||||
Cost | Value | Cost | Value | |||||||||||||
(In thousands) | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Fixed income securities | $ | 204,286 | $ | 204,286 | $ | 103,121 | $ | 103,121 | ||||||||
Other | 80 | 80 | 56 | 56 | ||||||||||||
Current investments: | ||||||||||||||||
Fixed income securities | — | — | 96,902 | 96,902 | ||||||||||||
All of the fixed income securities classified as cash and cash equivalents above mature within 90 days and all of the fixed income securities classified as short-term investments above mature within one year. The specific identification method is used to determine the cost of each security sold and each amount reclassified out of accumulated other comprehensive loss to earnings. Gross realized gains recognized during 2014 and 2013 related to the Company's available-for-sale securities is $1.0 million and $25,620, respectively. Gross realized losses recognized during 2014 related to the Company's available-for-sale securities totaled $18,819. No gross realized losses were recognized during 2013. Proceeds received from the sale or maturity of available-for-sale securities during 2014 and 2013 are disclosed in the Consolidated Statements of Cash Flows. Net unrealized holding gains and losses on the Company's available-for-sale securities recognized during 2014 and 2013 that have been included in accumulated other comprehensive loss and the net amount of gains and losses reclassified out of accumulated other comprehensive loss to earnings during 2014 and 2013 are disclosed in “Note 12. Stockholders' Equity.” |
DERIVATIVE_FINANCIAL_INSTRUMEN
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended | |||||||
Dec. 28, 2014 | ||||||||
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, sorghum, 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 12 months. The Company may purchase longer-term derivative financial instruments on particular commodities if deemed appropriate. | ||||||||
The Company has operations in Mexico and, therefore, has exposure to translational foreign exchange risk when the financial results of those operations are translated to U.S. dollars. Generally, the Company purchases derivative financial instruments such as foreign currency forward contracts to manage this translational foreign exchange risk. | ||||||||
The fair value of derivative assets is included in the line item Prepaid expenses and other current assets on the 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. Our counterparties require that we post cash collateral for changes in the net fair value of the derivative contracts. | ||||||||
We have not designated the derivative financial instruments that we have purchased to mitigate commodity purchase or foreign currency transaction exposures as cash flow hedges. Therefore, we recognize changes in the fair value of these derivative financial instruments immediately in earnings. Gains or losses related to these derivative financial instruments are included in the line item Cost of sales in the Consolidated Statements of Operations. The Company recognized $16.1 million, $25.1 million and $8.3 million in net gains related to changes in the fair value of its derivative financial instruments during 2014, 2013 and 2012, respectively. | ||||||||
Information regarding the Company's outstanding derivative instruments and cash collateral posted with (owed to) brokers is included in the following table: | ||||||||
December 28, 2014 | December 29, 2013 | |||||||
(Fair values in thousands) | ||||||||
Fair values: | ||||||||
Commodity derivative assets | $ | 8,416 | $ | 2,889 | ||||
Commodity derivative liabilities | (22,683 | ) | (1,728 | ) | ||||
Foreign currency derivative assets | 2,563 | 1,214 | ||||||
Cash collateral posted with brokers | 25,205 | 4,142 | ||||||
Derivatives Coverage(a): | ||||||||
Corn | (8.2 | )% | 1.1 | % | ||||
Soybean meal | (16.1 | )% | (3.6 | )% | ||||
Period through which stated percent of needs are covered: | ||||||||
Corn | Sep-16 | Sep-15 | ||||||
Soybean meal | Jul-15 | Jul-14 | ||||||
(a) | Derivatives coverage is the percent of anticipated corn and soybean meal needs covered by outstanding derivative instruments through a specified date. |
IDENTIFIED_INTANGIBLE_ASSETS
IDENTIFIED INTANGIBLE ASSETS | 12 Months Ended | |||||||||||||
Dec. 28, 2014 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||
IDENTIFIED INTANGIBLE ASSETS | IDENTIFIED INTANGIBLE ASSETS | |||||||||||||
Identified intangible assets consisted of the following: | ||||||||||||||
Useful Life | Original Cost | Accumulated | Carrying | |||||||||||
(Years) | Amortization | Amount | ||||||||||||
(In thousands) | ||||||||||||||
December 29, 2013: | ||||||||||||||
Trade names | 3–15 | $ | 40,143 | $ | (31,081 | ) | $ | 9,062 | ||||||
Customer relationships | 13 | 51,000 | (27,537 | ) | 23,463 | |||||||||
Non-compete agreements | 3 | 300 | (300 | ) | — | |||||||||
Total intangible assets | $ | 91,443 | $ | (58,918 | ) | $ | 32,525 | |||||||
December 28, 2014: | ||||||||||||||
Trade names | 3–15 | $ | 40,143 | $ | (32,900 | ) | $ | 7,243 | ||||||
Customer relationships | 13 | 51,000 | (31,460 | ) | 19,540 | |||||||||
Non-compete agreements | 3 | 300 | (300 | ) | — | |||||||||
Total intangible assets | $ | 91,443 | $ | (64,660 | ) | $ | 26,783 | |||||||
We recognized amortization expense related to identified intangible assets of $5.7 million in 2014, $5.7 million in 2013 and $5.8 million in 2012. | ||||||||||||||
We expect to recognize amortization expense associated with identified intangible assets of $5.7 million in 2015 and 2016, $5.9 million in 2017, $5.6 million in 2018 and $4.0 million in 2019. |
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended | |||||||
Dec. 28, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT | |||||||
Property, plant and equipment (“PP&E”), net consisted of the following: | ||||||||
December 28, 2014 | December 29, 2013 | |||||||
(In thousands) | ||||||||
Land | $ | 66,798 | $ | 66,071 | ||||
Buildings | 1,086,690 | 1,077,859 | ||||||
Machinery and equipment | 1,537,241 | 1,502,968 | ||||||
Autos and trucks | 52,639 | 55,779 | ||||||
Construction-in-progress | 129,701 | 66,926 | ||||||
Property, plant and equipment, gross | 2,873,069 | 2,769,603 | ||||||
Accumulated depreciation | (1,690,274 | ) | (1,617,792 | ) | ||||
Property, plant and equipment, net | $ | 1,182,795 | $ | 1,151,811 | ||||
The Company recognized depreciation expense of $136.4 million, $135.5 million and $131.5 million during 2014, 2013 and 2012, respectively. | ||||||||
During 2014, the Company sold certain PP&E for cash of $11.1 million and recognized a gain of $1.4 million. PP&E sold in 2014 included a warehouse in Texas, vehicle maintenance centers in Texas and North Carolina, an office building in Mexico City, a processing plant in Pennsylvania, and a fertilizer building with miscellaneous fixtures and equipment in Texas. During 2013, the Company sold certain PP&E for cash of $31.3 million and recognized a loss of $2.4 million. PP&E sold in 2013 included vehicle maintenance centers in Texas, Arkansas, and Georgia, excess land in Texas, a hatchery in North Carolina, a complex in Arkansas, an office building in Georgia, and miscellaneous equipment. | ||||||||
During 2014, the Company spent $171.4 million on capital projects and transferred $110.1 million of completed projects from construction-in-progress to depreciable assets. | ||||||||
The Company has closed or idled processing facilities in Alabama, Georgia, Arkansas and Texas, feed mills in North Carolina and Arkansas, hatcheries in Alabama, Texas, and Arkansas, various broiler farms in Texas and Alabama, a vehicle maintenance center in Arkansas and other miscellaneous assets. Neither the Board of Directors nor JBS USA has 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. At December 28, 2014, the carrying amount of these idled assets was $69.3 million based on depreciable value of $181.3 million and accumulated depreciation of $112.0 million. | ||||||||
Management has committed to the sale of certain properties and related assets, including, but not limited to, a processing plant in Bossier City, Louisiana and miscellaneous assets, as such assets no longer fit into the operating plans of the Company. The Company is actively marketing these properties and related assets for immediate sale and believes a sale of each property can be consummated within the next 12 months. At December 28, 2014, the Company reported assets held for sale totaling $1.4 million in Assets held for sale on its Consolidated Balance Sheets. | ||||||||
The Company tested the recoverability of its long-lived assets held for use during the thirteen weeks ended December 28, 2014 by comparing the book value of its invested capital, exclusive of assets held for sale, with the undiscounted cash flows expected to result from the use and eventual disposition of its long-lived assets held for use. The Company determined that the carrying amount of its long-lived assets held for use is recoverable over the remaining life of the primary asset in the group, and the long-lived assets for use pass the Step 1 recoverability test of ASC 360-10-35, Impairment or Disposal of Long-Lived Assets. |
CURRENT_LIABILITIES
CURRENT LIABILITIES | 12 Months Ended | |||||||
Dec. 28, 2014 | ||||||||
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: | ||||||||
December 28, 2014 | December 29, 2013 | |||||||
(In thousands) | ||||||||
Accounts payable: | ||||||||
Trade accounts | $ | 347,107 | $ | 313,266 | ||||
Book overdrafts | 47,320 | 55,378 | ||||||
Other payables | 5,059 | 1,716 | ||||||
Total accounts payable | 399,486 | 370,360 | ||||||
Accounts payable to related parties(a) | 4,862 | 3,934 | ||||||
Accrued expenses and other current liabilities: | ||||||||
Compensation and benefits | 123,495 | 100,965 | ||||||
Interest and debt-related fees | 780 | 7,558 | ||||||
Insurance and self-insured claims | 85,240 | 99,244 | ||||||
Derivative liabilities: | ||||||||
Futures | 8,580 | 1,729 | ||||||
Options | 14,103 | — | ||||||
Other accrued expenses | 79,681 | 73,859 | ||||||
Total accrued expenses and other current liabilities | 311,879 | 283,355 | ||||||
$ | 716,227 | $ | 657,649 | |||||
(a) | Additional information regarding accounts payable to related parties is included in “Note 15. Related Party Transactions.” |
LONGTERM_DEBT_AND_OTHER_BORROW
LONG-TERM DEBT AND OTHER BORROWING ARRANGEMENTS | 12 Months Ended | |||||||||
Dec. 28, 2014 | ||||||||||
Debt Disclosure [Abstract] | ||||||||||
LONG-TERM DEBT AND OTHER BORROWING ARRANGEMENTS | LONG-TERM DEBT AND OTHER BORROWING ARRANGEMENTS | |||||||||
Long-term debt consisted of the following components: | ||||||||||
Maturity | December 28, 2014 | December 29, 2013 | ||||||||
(In thousands) | ||||||||||
Senior notes, at 7 7/8%, net of unaccreted discount | 2018 | $ | — | $ | 497,757 | |||||
2013 U.S. Credit Facility (defined below) Term B-1 note payable at | 2014 | — | 204,880 | |||||||
2.4375% | ||||||||||
2013 U.S. Credit Facility (defined below) Term B-2 note payable at | 2014 | — | 205,219 | |||||||
9.00% | ||||||||||
2013 U.S. Credit Facility (defined below) revolving note payable | 2018 | — | — | |||||||
Mexico Credit Facility (defined below) with notes payable at TIIE Rate | 2014 | — | — | |||||||
plus 1.05% | ||||||||||
Subordinated Loan Agreement (defined below) | 2015 | — | — | |||||||
Other | Various | 4,242 | 4,377 | |||||||
Long-term debt | 4,242 | 912,233 | ||||||||
Less: Current maturities of long-term debt | (262 | ) | (410,234 | ) | ||||||
Long-term debt, less current maturities | $ | 3,980 | $ | 501,999 | ||||||
Senior and Subordinated Notes | ||||||||||
On December 15, 2014, the Company redeemed all of its outstanding $500.0 million principal amount of 7.875% senior notes due 2018 (the “2018 Notes”) for a redemption price of 103.9375% of the principal amount, plus accrued and unpaid interest to the redemption date. As a result, at December 28, 2014, no 2018 Notes remained outstanding. Additionally, we have an aggregate principal balance of $3.6 million of 7 5/8% senior unsecured notes and 8 3/8% senior subordinated unsecured notes outstanding at December 28, 2014. | ||||||||||
JBS Subordinated Loan Agreement | ||||||||||
On June 23, 2011, the Company entered into a Subordinated Loan Agreement with JBS USA (the “Subordinated Loan Agreement”). Pursuant to the terms of the Subordinated Loan Agreement, the Company agreed to reimburse JBS USA up to $56.5 million for draws upon any letters of credit issued for JBS USA's account that support certain obligations of the Company or its subsidiaries. JBS USA agreed to arrange for letters of credit to be issued on its account in the amount of $56.5 million to an insurance company serving the Company in order to allow that insurance company to return cash it held as collateral against potential workers compensation, auto and general liability claims. In return for providing this letter of credit, the Company has agreed to reimburse JBS USA for the letter of credit cost the Company would otherwise incur under its U.S. Credit Facility (as defined below). The total amount paid by the Company for 2014, 2013 and 2012 costs, to reimburse JBS USA, was $1.3 million, $2.2 million and $2.2 million, respectively. As of December 28, 2014, the Company has accrued an obligation of $0.1 million to reimburse JBS USA for letter of credit costs incurred on its behalf. There remains no other commitment to make advances by JBS USA under the Subordinated Loan Agreement. | ||||||||||
2013 U.S. Credit Facility | ||||||||||
Pilgrim’s and certain of its subsidiaries entered into a credit agreement (the “2013 U.S. Credit Facility”) with CoBank, ACB, as administrative agent and collateral agent, and other lenders party thereto, which was amended and restated on August 7, 2013. The 2013 U.S. Credit Facility currently provides for a $700.0 million revolving credit facility and a delayed draw term loan commitment of up to $400.0 million (the “Delayed Draw Term Loans”). The Company can draw upon the Delayed Draw Term Loan commitment, in one or more advances, between May 1, 2014 and December 28, 2014. The 2013 U.S. Credit Facility also includes an accordion feature that allows us, at any time, to increase the aggregate revolving loan commitment by up to an additional $250.0 million and to increase the aggregate Delayed Draw Term Loan commitment by up to an additional $500.0 million, in each case subject to the satisfaction of certain conditions, including obtaining the lenders’ agreement to participate in the increase and an aggregate limit on all commitments under the 2013 U.S. Credit Facility of $1.85 billion. The 2013 U.S. Credit Facility also provides for a $100.0 million sub-limit for swingline loans and a $200.0 million sub-limit for letters of credit. The revolving loan commitment under the 2013 U.S. Credit Facility matures on August 7, 2018. Any Delayed Draw Term Loans would be payable in quarterly installments beginning in fiscal year 2015 equal to 1.875% of the principal outstanding as of December 28, 2014, with all remaining principal and interest due at maturity on August 7, 2018. | ||||||||||
On December 28, 2009, the Company paid loan costs totaling $50.0 million related to the 2013 U.S. Credit Facility that it recognized as an asset on its balance sheet. On August 7, 2013, the Company paid loan costs totaling $5.0 million related to the amendment and restatement to the 2013 U.S. Credit Facility that is recognized as an asset on its balance sheet. The Company amortizes these capitalized costs to interest expense over the life of the 2013 U.S. Credit Facility. | ||||||||||
Subsequent to the end of each fiscal year, a portion of our cash flow was required to be used to repay outstanding principal amounts under Term B loans executed under the 2013 U.S. Credit Facility. With respect to 2014, the Company paid $204.9 million of its cash flow toward the outstanding principal under the Term B-1 loans on December 30, 2013 and paid approximately $205.2 million of its cash flow toward the outstanding principal under the Term B-2 loans on April 28, 2014. Following the April 28, 2014 payment, the Company had no outstanding principal under the Term B loans. The 2013 U.S. Credit Facility also requires us to use proceeds we receive from certain asset sales and specified debt or equity issuances and upon the occurrence of other events to repay outstanding borrowings under the U.S. Credit Facility. | ||||||||||
Actual borrowings by the Company under the revolving credit commitment component of the 2013 U.S. Credit Facility are subject to a borrowing base, which is a formula based on certain eligible inventory, eligible receivables and restricted cash under the control of CoBank, ACB. As of December 28, 2014, the applicable borrowing base was $700.0 million, the amount available for borrowing under the revolving loan commitment was $679.9 million. The Company had letters of credit of $20.1 million and no outstanding borrowings under the revolving loan commitment as of December 28, 2014. | ||||||||||
The 2013 U.S. Credit Facility contains financial covenants and various other covenants that may adversely affect our ability to, among other things, incur additional indebtedness, incur liens, pay dividends or make certain restricted payments, consummate certain assets sales, enter into certain transactions with JBS USA and our other affiliates, merge, consolidate and/or sell or dispose of all or substantially all of our assets. The 2013 U.S. Credit Facility requires the Company to comply with a minimum level of tangible net worth covenant. The Company is currently in compliance with this financial covenant. All other financial covenants were eliminated in connection with the August 7, 2013 amendment and restatement to the 2013 U.S. Credit Facility. The 2013 U.S. Credit Facility also provides that the Company may not incur capital expenditures in excess of $350.0 million in any fiscal year. | ||||||||||
All obligations under the 2013 U.S. Credit Facility are unconditionally guaranteed by certain of the Company’s subsidiaries and are secured by a first priority lien on (i) the accounts receivable and inventories of the Company and its non-Mexico subsidiaries, (ii) 65% of the equity interests in the Company’s direct foreign subsidiaries and 100% of the equity interests in the Company’s other subsidiaries, (iii) substantially all of the personal property and intangibles of the borrowers and guarantors under the 2013 U.S. Credit Facility and (iv) substantially all of the real estate and fixed assets of the Company and the guarantor subsidiaries under the 2013 U.S. Credit Facility. | ||||||||||
2015 U.S. Credit Facility | ||||||||||
On February 11, 2015, the Company and its subsidiaries, To-Ricos, Ltd. and To-Ricos Distribution, Ltd. (together, the “To-Ricos Borrowers”), entered into a Second Amended and Restated Credit Agreement (the “2015 U.S. Credit Facility”) with Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., Rabobank Nederland, New York Branch (“Rabobank”), as administrative agent, and the other lenders party thereto. The 2015 U.S. Credit Facility amends and restates the 2013 U.S. Credit Facility. | ||||||||||
The 2015 U.S. Credit Facility provides for a revolving loan commitment of at least $700 million and a term loan commitment of up to $1.0 billion (the “Term Loans”). The 2015 U.S. Credit Facility also includes an accordion feature that allows us, at any time, to increase the aggregate revolving loan and term loan commitments by up to an additional $1.0 billion, subject to the satisfaction of certain conditions, including obtaining the lenders’ agreement to participate in the increase. | ||||||||||
The revolving loan commitment under the 2015 U.S. Credit Facility matures on February 10, 2020. Beginning on April 2, 2015, the Term Loans will be payable in quarterly installments equal to 1.25% of the principal outstanding as of closing, with all remaining principal and interest due at maturity on February 10 2020. Covenants in the 2015 U.S. Credit Facility also require the Company to use the proceeds it receives from certain asset sales and specified debt or equity issuances and upon the occurrence of other events to repay outstanding borrowings under the 2015 U.S. Credit Facility. | ||||||||||
The 2015 U.S. Credit Facility includes a $75 million sub-limit for swingline loans and a $125 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 equal to (i) in the case of LIBOR loans, LIBOR plus 1.50% through March 29, 2015 and, based on our net senior secured leverage ratio, between LIBOR plus 1.25% and LIBOR plus 2.75% and (ii) in the case of alternate base rate loans, the base rate plus 0.50% through March 29, 2015 and, based on our net senior secured leverage ratio, between the base rate plus 0.25% and base rate plus 1.75% thereafter. | ||||||||||
Actual borrowings by the Company under the 2015 U.S. Credit Facility are subject to a borrowing base, which is a formula based on certain eligible inventory, eligible receivables and restricted cash under the control of Rabobank, in its capacity as administrative agent. The borrowing base formula will be reduced by the sum of (i) inventory reserves, (ii) rent and collateral access reserves, and (iii) any amount more than 15 days past due that is owed by the Company or its subsidiaries to any person on account of the purchase price of agricultural products or services (including poultry and livestock) if that person is entitled to any grower's or producer's lien or other security arrangement. Revolving loan availability under the borrowing base also will be limited to an aggregate of $25 million with respect to the To-Ricos Borrowers. | ||||||||||
All obligations under the 2015 U.S. Credit Facility will continue to be unconditionally guaranteed by certain of the Company's subsidiaries and will continue to be secured by a first priority lien on (i) the domestic (including Puerto Rico) accounts and inventory of the Company and its subsidiaries, (ii) 100% of the equity interests in the To-Ricos Borrowers and the Company's domestic subsidiaries and 65% of the equity interests in the Company's direct foreign subsidiaries, (iii) substantially all of the personal property and intangibles of the Company, the To-Ricos Borrowers and the guarantor subsidiaries and (iv) substantially all of the real estate and fixed assets of the Company and the subsidiary guarantors. | ||||||||||
The Company is also subject to customary covenants under the 2015 U.S. Credit Facility, including certain reporting requirements. Proceeds of the borrowings under the 2015 U.S. Credit Facility may be used to finance the general corporate purposes of the borrowers (including capital expenditures, permitted acquisitions, refinancing indebtedness and principal and interest payments under the 2015 U.S. Credit Facility) and the payment of a special cash dividend of approximately $1.5 billion. In addition, the 2015 U.S. Credit Facility contains a number of covenants that, among other things, limit the Company's and its subsidiaries' ability to: | ||||||||||
•Incur capital expenditures in excess of $500 million in any fiscal year; | ||||||||||
•Incur additional indebtedness; | ||||||||||
•Create liens on any assets; | ||||||||||
•Pay dividends, redeem shares of capital stock or make certain restricted payments; | ||||||||||
•Consummate certain asset sales; | ||||||||||
•Enter into certain transactions with JBS USA Holdings, Inc. and the Company's other affiliates; and | ||||||||||
•Merge, consolidate and/or sell or dispose of all or substantially all of the Company's assets. | ||||||||||
Mexico Credit Facility | ||||||||||
On July 23, 2014, Avícola and certain Mexican subsidiaries entered into an unsecured credit agreement (the “Mexico Credit Facility”) with BBVA Bancomer, S.A. Institución de Banca Multiple, Grupo Financiero BBVA Bancomer, as lender. The loan commitment under the Mexico Credit Facility is $560.0 million Mexican pesos. Outstanding borrowings under the Mexico Credit Facility will accrue interest at a rate equal to the TIIE rate plus 1.05%. The Mexico Credit Facility will mature on July 23, 2017. As of September 28, 2014, the U.S. dollar-equivalent of the loan commitment under the Mexico Credit Facility was $38.1 million. There are currently no outstanding borrowings under the Mexico Credit Facility. The Mexico Credit facility replaced our amended and restated credit agreement with ING Bank (México), S.A. Institucíon de Banca Múltiple, ING Grupo Financiero, as lender and ING Capital LLC, as administrative agent, which was terminated on July 23, 2014. | ||||||||||
Other Disclosures | ||||||||||
Substantially all of our domestic inventories and domestic fixed assets are pledged as collateral to secure the obligations under the U.S. Credit Facility. The Mexico Credit Facility is secured by substantially all of the assets of the Company's Mexico subsidiaries. | ||||||||||
Annual maturities of long-term debt for the five years subsequent to December 28, 2014 are as follows (in thousands): | ||||||||||
2015 | $ | 262 | ||||||||
2016 | 87 | |||||||||
2017 | 3,611 | |||||||||
2018 | 102 | |||||||||
2019 | 92 | |||||||||
Thereafter | 88 | |||||||||
Total maturities | $ | 4,242 | ||||||||
Total interest expense was $82.0 million, $87.0 million and $104.9 million in 2014, 2013 and 2012, respectively. Interest related to new construction capitalized in 2014, 2013 and 2012 was $4.7 million, $2.2 million and $1.7 million, respectively. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||||||
Dec. 28, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
INCOME TAXES | INCOME TAXES | |||||||||||
Income before income taxes by jurisdiction is as follows: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
U.S. | $ | 953,027 | $ | 469,395 | $ | 62,332 | ||||||
Foreign | 149,364 | 104,545 | 90,730 | |||||||||
Total | $ | 1,102,391 | $ | 573,940 | $ | 153,062 | ||||||
The components of income tax expense (benefit) are set forth below: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Current: | ||||||||||||
Federal | $ | 262,403 | $ | (427 | ) | $ | (28,883 | ) | ||||
Foreign | 22,867 | 26,206 | 9,279 | |||||||||
State and other | 24,056 | 3,512 | (211 | ) | ||||||||
Total current | 309,326 | 29,291 | (19,815 | ) | ||||||||
Deferred: | ||||||||||||
Federal | 29,737 | 22,923 | (293 | ) | ||||||||
Foreign | 31,332 | (3,648 | ) | (835 | ) | |||||||
State and other | 20,558 | (24,339 | ) | (37 | ) | |||||||
Total deferred | 81,627 | (5,064 | ) | (1,165 | ) | |||||||
$ | 390,953 | $ | 24,227 | $ | (20,980 | ) | ||||||
The effective tax rate for 2014 was 35.5% compared to 4.2% for 2013. The effective tax rate for 2014 differed from 2013 as a result of decreases in the valuation allowance and reserves for unrecognized tax benefits during 2013 that did not occur during 2014. | ||||||||||||
The effective tax rate for 2012 was (13.7)%. The effective tax rate for 2013 differed from 2012 primarily as a result of decreases in the valuation allowance and reserves for unrecognized tax benefits during 2013 and increases in the valuation allowance and reserves for unrecognized tax benefits during 2012. | ||||||||||||
The following table reconciles the statutory U.S. federal income tax rate to the Company’s effective income tax rate: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal income tax rate | 35 | % | 35 | % | 35 | % | ||||||
State tax rate, net | 2.6 | 2.3 | 2.5 | |||||||||
Permanent items | 0.4 | 1.4 | 1.5 | |||||||||
Domestic production activity | (2.4 | ) | (1.2 | ) | — | |||||||
Difference in U.S. statutory tax rate and foreign | (1.0 | ) | (1.0 | ) | (3.3 | ) | ||||||
country effective tax rate | ||||||||||||
Tax credits | — | (3.0 | ) | (2.3 | ) | |||||||
Change in reserve for unrecognized tax | — | — | (10.4 | ) | ||||||||
benefits | ||||||||||||
Change in valuation allowance | — | (31.0 | ) | (34.4 | ) | |||||||
Other | 0.9 | 1.7 | (2.3 | ) | ||||||||
Total | 35.5 | % | 4.2 | % | (13.7 | ) | % | |||||
Significant components of the Company’s deferred tax liabilities and assets are as follows: | ||||||||||||
28-Dec-14 | 29-Dec-13 | |||||||||||
(In thousands) | ||||||||||||
Deferred tax liabilities: | ||||||||||||
PP&E and identified intangible assets | $ | 126,536 | $ | 125,197 | ||||||||
Inventories | 48,365 | 74,287 | ||||||||||
Insurance claims and losses | 36,953 | 33,625 | ||||||||||
All other current | 18,696 | 9,453 | ||||||||||
All other noncurrent | 8,105 | 9,031 | ||||||||||
Total deferred tax liabilities | 238,655 | 251,593 | ||||||||||
Deferred tax assets: | ||||||||||||
Net operating losses | 5,842 | 20,907 | ||||||||||
Foreign net operating losses | 7,873 | 15,437 | ||||||||||
Credit carry forwards | 2,916 | 79,555 | ||||||||||
Allowance for doubtful accounts | 4,261 | 4,510 | ||||||||||
Accrued liabilities | 52,772 | 47,384 | ||||||||||
All other current | 9,755 | 12,282 | ||||||||||
All other noncurrent | 20,857 | 10,292 | ||||||||||
Workers compensation | 43,309 | 42,951 | ||||||||||
Pension and other postretirement benefits | 26,049 | 20,364 | ||||||||||
Total deferred tax assets | 173,634 | 253,682 | ||||||||||
Valuation allowance | (9,150 | ) | (10,400 | ) | ||||||||
Net deferred tax assets | 164,484 | 243,282 | ||||||||||
Net deferred tax liabilities | $ | 74,171 | $ | 8,311 | ||||||||
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 December 28, 2014, the Company believes it has sufficient positive evidence to conclude that realization of its federal and state net deferred tax assets is more likely than not to be realized. The decrease in valuation allowance of $1.3 million during 2014 was primarily due to a decrease in state and foreign net operating losses. As of December 28, 2014, the Company's valuation allowance is $9.2 million, of which $1.3 million relates to capital loss carry forwards and state net operating losses and $7.8 million relates to its Mexico operations. | ||||||||||||
As of December 28, 2014, the Company had state net operating loss carry forwards of approximately $177.8 million that will begin to expire in 2015. The Company also had Mexico net operating loss carry forwards at December 28, 2014 of approximately $25.9 million that begin to expire in 2015. | ||||||||||||
As of December 28, 2014, the Company had approximately $2.9 million of state tax credit carry forwards that begin to expire in 2015. | ||||||||||||
On November 6, 2009, H.R. 3548 was signed into law and included a provision that allowed most business taxpayers an increased carry back period for net operating losses incurred in 2008 or 2009. As a result, during 2009 the Company utilized $547.7 million of its U.S. federal net operating losses under the expanded carry back provisions of H.R. 3548 and filed a claim for refund of $169.7 million. The Company received $122.6 million in refunds from the Internal Revenue Service (“IRS”) from the carry back claims during 2010. The Company anticipates receipt of the remainder of its claim pending resolution of its litigation with the IRS. See “Note 16. Commitments and Contingencies” for additional information. | ||||||||||||
The Company has not provided any deferred income taxes on the undistributed earnings of its Mexico subsidiaries as of December 28, 2014 based upon the determination that such earnings will be indefinitely reinvested. It is not practicable to determine the amount of incremental taxes that might arise if these earnings were to be remitted. For activity after 2008, the Company is not permanently reinvesting its earnings in Puerto Rico. Therefore, the earnings generated in Puerto Rico have U.S. taxes provided on the earnings as if the earnings were distributed. | ||||||||||||
During 2011, the Company completed its deconsolidation of its Mexico operations from a tax perspective to help minimize the impact of the Mexico tax reform that became effective January 1, 2010. As a result, all of the Mexico subsidiaries started filing separate returns in 2011. The deconsolidation reduced the accrued taxes that had been previously recognized under the consolidated filing status as it eliminated recapturing certain taxes required under the new consolidation laws. As a result of the deconsolidation, the Company recognized a benefit of $4.3 million during 2012, which reduced the additional taxes that had been previously accrued as of December 27, 2009, resulting in a total net benefit of $18.4 million. | ||||||||||||
A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: | ||||||||||||
28-Dec-14 | 29-Dec-13 | |||||||||||
(In thousands) | ||||||||||||
Unrecognized tax benefits, beginning of year | $ | 17,117 | $ | 16,643 | ||||||||
Increase as a result of tax positions taken during the current year | 999 | 978 | ||||||||||
Increase as a result of tax positions taken during prior years | — | 232 | ||||||||||
Decrease as a result of tax positions taken during prior years | (101 | ) | — | |||||||||
Decrease for lapse in statute of limitations | (619 | ) | (736 | ) | ||||||||
Unrecognized tax benefits, end of year | $ | 17,396 | $ | 17,117 | ||||||||
Included in unrecognized tax benefits of $17.4 million at December 28, 2014, was $9.8 million of tax benefits that, if recognized, would reduce the Company's effective tax rate. It is not practicable at this time to estimate the amount of unrecognized tax benefits that will change in the next twelve months. | ||||||||||||
The Company recognizes interest and penalties related to unrecognized tax benefits in its provision for income taxes. As of December 28, 2014, the Company had recorded a liability of $10.2 million for interest and penalties. During 2014, accrued interest and penalty amounts related to uncertain tax positions remained unchanged from 2013. | ||||||||||||
The Company operates in the U.S. (including multiple state jurisdictions), Puerto Rico and Mexico. With few exceptions, the Company is no longer subject to U.S. federal, state or local income tax examinations for years prior to 2009 and is no longer subject to Mexico income tax examinations by taxing authorities for years prior to 2009. | ||||||||||||
The Company is challenging the IRS' proof of claim relating to the tax year ended June 26, 2004 for Gold Kist Inc. (“Gold Kist”). See “Note 16. Commitments and Contingencies” for additional information. | ||||||||||||
On September 13, 2013, the IRS issued the final, revised Tangible Property Repair Regulations for IRC Sections 162(a) and 263(a) which modify and supersede the Temporary Regulations that were issued on December 23, 2011. In addition, the IRS also released new proposed regulations for dispositions of tangible property under IRC Section 168. These final and proposed regulations are effective for tax years beginning January 1, 2014. The Company assessed the applicability of the regulations and concluded there was no significant impact to the Company’s tax fixed assets. | ||||||||||||
The Company entered into a tax sharing agreement during 2014 with JBS USA effective for tax years starting 2010. The net tax receivable for tax years 2010 through 2014 was accrued in 2014. |
PENSION_AND_OTHER_POSTRETIREME
PENSION AND OTHER POSTRETIREMENT BENEFITS | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 28, 2014 | ||||||||||||||||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [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, nonqualified defined benefit retirement plans, a defined benefit postretirement life insurance plan, and defined contribution retirement savings plans. Under all of our retirement plans, the Company’s expenses were $5.9 million, $7.5 million and $8.7 million in 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||
The Company used a year-end measurement date of December 28, 2014 for its pension and postretirement benefits plans. Certain disclosures are listed below. Other disclosures are not material to the financial statements. | ||||||||||||||||||||||||||||||||
Qualified Defined Benefit Pension Plans | ||||||||||||||||||||||||||||||||
The Company sponsors two qualified defined benefit pension plans named the Pilgrim’s Pride Retirement Plan for Union Employees (the “Union Plan”) and the Pilgrim’s Pride Pension Plan for Legacy Gold Kist Employees (the “GK Pension Plan”). The Union Plan covers certain locations or work groups within PPC. The GK Pension Plan covers certain eligible U.S. employees who were employed at locations that the Company purchased through its acquisition of Gold Kist in 2007. Participation in the GK Pension Plan was frozen as of February 8, 2007 for all participants with the exception of terminated vested participants who are or may become permanently and totally disabled. The plan was frozen for that group as of March 31, 2007. | ||||||||||||||||||||||||||||||||
Nonqualified Defined Benefit Pension Plans | ||||||||||||||||||||||||||||||||
The Company sponsors two nonqualified defined benefit retirement plans named the Former Gold Kist Inc. Supplemental Executive Retirement Plan (the “SERP Plan”) and the Former Gold Kist Inc. Directors’ Emeriti Retirement Plan (the “Directors’ Emeriti Plan”). Pilgrim’s Pride assumed sponsorship of the SERP Plan and Directors’ Emeriti Plan through its acquisition of Gold Kist in 2007. The SERP Plan provides benefits on compensation in excess of certain IRC limitations to certain former executives with whom Gold Kist negotiated individual agreements. Benefits under the SERP Plan were frozen as of February 8, 2007. The Directors’ Emeriti Plan provides benefits to former Gold Kist directors. | ||||||||||||||||||||||||||||||||
Defined Benefit Postretirement Life Insurance Plan | ||||||||||||||||||||||||||||||||
The Company sponsors one defined benefit postretirement life insurance plan named the Gold Kist Inc. Retiree Life Insurance Plan (the “Retiree Life Plan”). Pilgrim’s Pride also assumed defined benefit postretirement medical and life insurance obligations, including the Retiree Life Plan, through its acquisition of Gold Kist in 2007. In January 2001, Gold Kist began to substantially curtail its programs for active employees. On July 1, 2003, Gold Kist terminated medical coverage for retirees age 65 or older, and only retired employees in the closed group between ages 55 and 65 could continue their coverage at rates above the average cost of the medical insurance plan for active employees. These retired employees all reached the age of 65 in 2012 and liabilities of the postretirement medical plan then ended. | ||||||||||||||||||||||||||||||||
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 Consolidated Balance Sheets for these plans were as follows: | ||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Change in projected benefit obligation: | (In thousands) | |||||||||||||||||||||||||||||||
Projected benefit obligation, beginning of year | $ | 170,030 | $ | 194,434 | $ | 1,705 | $ | 1,933 | ||||||||||||||||||||||||
Interest cost | 8,103 | 7,954 | 81 | 78 | ||||||||||||||||||||||||||||
Actuarial losses (gains) | 24,670 | (24,315 | ) | (10 | ) | (92 | ) | |||||||||||||||||||||||||
Benefits paid | (12,154 | ) | (8,043 | ) | — | — | ||||||||||||||||||||||||||
Curtailments and settlements | (248 | ) | — | (119 | ) | (214 | ) | |||||||||||||||||||||||||
Projected benefit obligation, end of year | $ | 190,401 | $ | 170,030 | $ | 1,657 | $ | 1,705 | ||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Change in plan assets: | (In thousands) | |||||||||||||||||||||||||||||||
Fair value of plan assets, beginning of year | $ | 108,496 | $ | 92,283 | $ | — | $ | — | ||||||||||||||||||||||||
Actual return on plan assets | 3,944 | 16,489 | — | — | ||||||||||||||||||||||||||||
Contributions by employer | 13,514 | 7,767 | 119 | 214 | ||||||||||||||||||||||||||||
Benefits paid | (12,154 | ) | (8,043 | ) | — | — | ||||||||||||||||||||||||||
Curtailments and settlements | (248 | ) | — | (119 | ) | (214 | ) | |||||||||||||||||||||||||
Fair value of plan assets, end of year | $ | 113,552 | $ | 108,496 | $ | — | $ | — | ||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Funded status: | (In thousands) | |||||||||||||||||||||||||||||||
Unfunded benefit obligation, end of year | $ | (76,849 | ) | $ | (61,534 | ) | $ | (1,657 | ) | $ | (1,705 | ) | ||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Amounts recognized in the Consolidated Balance Sheets at end of year: | (In thousands) | |||||||||||||||||||||||||||||||
Current liability | $ | (9,373 | ) | $ | (9,146 | ) | $ | (129 | ) | $ | (148 | ) | ||||||||||||||||||||
Long-term liability | (67,476 | ) | (52,388 | ) | (1,528 | ) | (1,557 | ) | ||||||||||||||||||||||||
Recognized liability | $ | (76,849 | ) | $ | (61,534 | ) | $ | (1,657 | ) | $ | (1,705 | ) | ||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Amounts recognized in accumulated other | (In thousands) | |||||||||||||||||||||||||||||||
comprehensive loss at end of year: | ||||||||||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 43,907 | $ | 16,957 | $ | (127 | ) | $ | (126 | ) | ||||||||||||||||||||||
The accumulated benefit obligation for our defined benefit pension plans was $190.0 million and $170.0 million at December 28, 2014 and December 29, 2013, respectively. Each of our defined benefit pension plans had accumulated benefit obligations that exceeded the fair value of plan assets at December 28, 2014 and December 29, 2013, respectively. | ||||||||||||||||||||||||||||||||
Net Periodic Benefit Cost (Income) | ||||||||||||||||||||||||||||||||
Net pension and other postretirement costs included the following components: | ||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | 51 | $ | — | $ | — | $ | — | ||||||||||||||||||||
Interest cost | 8,103 | 7,954 | 8,272 | 81 | 78 | 96 | ||||||||||||||||||||||||||
Estimated return on plan assets | (6,373 | ) | (5,393 | ) | (5,867 | ) | — | — | — | |||||||||||||||||||||||
Settlement loss (gain) | 93 | — | — | (9 | ) | (15 | ) | (7 | ) | |||||||||||||||||||||||
Amortization of net loss (gain) | 56 | 1,001 | 465 | — | — | (2 | ) | |||||||||||||||||||||||||
Net cost | $ | 1,879 | $ | 3,562 | $ | 2,921 | $ | 72 | $ | 63 | $ | 87 | ||||||||||||||||||||
Economic Assumptions | ||||||||||||||||||||||||||||||||
The weighted average assumptions used in determining pension and other postretirement plan information were as follows: | ||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Benefit obligation: | ||||||||||||||||||||||||||||||||
Discount rate | 4.22 | % | 4.95 | % | 4.22 | % | 4.22 | % | 4.95 | % | 4.22 | % | ||||||||||||||||||||
Net pension and other postretirement cost: | ||||||||||||||||||||||||||||||||
Discount rate | 4.95 | % | 4.22 | % | 5.09 | % | 4.95 | % | 4.22 | % | 5.09 | % | ||||||||||||||||||||
Rate of compensation increase | NA | NA | 3 | % | NA | NA | NA | |||||||||||||||||||||||||
Expected return on plan assets | 6 | % | 6 | % | 7.5 | % | NA | NA | NA | |||||||||||||||||||||||
The expected rate of return on plan assets was determined based on the current interest rate environment and historical market premiums relative to the fixed income rates of equities and other asset classes. We also take into consideration anticipated asset allocations, investment strategies and the views of various investment professionals when developing this rate. | ||||||||||||||||||||||||||||||||
Plan Assets | ||||||||||||||||||||||||||||||||
The following table reflects the pension plans’ actual asset allocations: | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Cash and cash equivalents | — | % | — | % | ||||||||||||||||||||||||||||
Pooled separate accounts(a): | ||||||||||||||||||||||||||||||||
Equity securities | 6 | % | 8 | % | ||||||||||||||||||||||||||||
Fixed income securities | 6 | % | 3 | % | ||||||||||||||||||||||||||||
Common collective trust funds(a): | ||||||||||||||||||||||||||||||||
Equity securities | 60 | % | 60 | % | ||||||||||||||||||||||||||||
Fixed income securities | 28 | % | 29 | % | ||||||||||||||||||||||||||||
Total assets | 100 | % | 100 | % | ||||||||||||||||||||||||||||
(a) | Pooled separate accounts (“PSAs”) and common collective trust funds (“CCTs”) are two of the most common types of alternative vehicles in which benefit plans invest. These investments are pooled funds that look like mutual funds, but they are not registered with the Securities and Exchange Commission. Often times, they will be invested in mutual funds or other marketable securities, but the unit price generally will be different from the value of the underlying securities because the fund may also hold cash for liquidity purposes, and the fees imposed by the fund are deducted from the fund value rather than charged separately to investors. Some PSAs and CCTs have no restrictions as to their investment strategy and can invest in riskier investments, such as derivatives, hedge funds, private equity funds, or similar investments. | |||||||||||||||||||||||||||||||
Absent regulatory or statutory limitations, the target asset allocation for the investment of pension assets in the pooled separate accounts is 50% in each of fixed income securities and equity securities and the target asset allocation for the investment of pension assets in the common collective trust funds is 30% in fixed income securities and 70% in equity securities. The plans only invest in fixed income and equity instruments for which there is a ready public market. We develop our expected long-term rate of return assumptions based on the historical rates of returns for equity and fixed income securities of the type in which our plans invest. | ||||||||||||||||||||||||||||||||
The fair value measurements of plan assets fell into the following levels of the fair value hierarchy as of December 28, 2014 and December 29, 2013: | ||||||||||||||||||||||||||||||||
2014 | 2013(a) | |||||||||||||||||||||||||||||||
Level 1(a) | Level 2(b) | Level 3(c) | Total | Level 1(a) | Level 2(b) | Level 3(c) | Total | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 33 | $ | — | $ | — | $ | 33 | $ | 275 | $ | — | $ | — | $ | 275 | ||||||||||||||||
Pooled separate accounts: | ||||||||||||||||||||||||||||||||
Large U.S. equity funds(d) | — | 4,147 | — | 4,147 | — | 4,828 | — | 4,828 | ||||||||||||||||||||||||
Small/Mid U.S. equity funds(e) | — | 1,062 | — | 1,062 | — | 1,192 | — | 1,192 | ||||||||||||||||||||||||
International equity funds(f) | — | 1,719 | — | 1,719 | — | 2,019 | — | 2,019 | ||||||||||||||||||||||||
Fixed income funds(g) | — | 6,609 | — | 6,609 | — | 3,442 | — | 3,442 | ||||||||||||||||||||||||
Common collective trusts funds: | ||||||||||||||||||||||||||||||||
Large U.S. equity funds(d) | — | 29,964 | — | 29,964 | — | 28,784 | — | 28,784 | ||||||||||||||||||||||||
Small U.S. equity funds(e) | — | 18,411 | — | 18,411 | — | 16,937 | — | 16,937 | ||||||||||||||||||||||||
International equity funds(f) | — | 19,730 | — | 19,730 | — | 19,420 | — | 19,420 | ||||||||||||||||||||||||
Fixed income funds(g) | — | 31,877 | — | 31,877 | — | 31,599 | — | 31,599 | ||||||||||||||||||||||||
Total assets | $ | 33 | $ | 113,519 | $ | — | $ | 113,552 | $ | 275 | $ | 108,221 | $ | — | $ | 108,496 | ||||||||||||||||
(a) | Unadjusted quoted prices in active markets for identical assets are used to determine fair value. | |||||||||||||||||||||||||||||||
(b) | Quoted prices in active markets for similar assets and inputs that are observable for the asset are used to determine fair value. | |||||||||||||||||||||||||||||||
(c) | Unobservable inputs, such as discounted cash flow models or valuations, are used to determine fair value. | |||||||||||||||||||||||||||||||
(d) | This category is comprised of investment options that invest in stocks, or shares of ownership, in large, well-established U.S. companies. These investment options typically carry more risk than fixed income options but have the potential for higher returns over longer time periods. | |||||||||||||||||||||||||||||||
(e) | This category is generally comprised of investment options that invest in stocks, or shares of ownership, in small to medium-sized U.S. companies. These investment options typically carry more risk than larger U.S. equity investment options but have the potential for higher returns. | |||||||||||||||||||||||||||||||
(f) | This category is comprised of investment options that invest in stocks, or shares of ownership, in companies with their principal place of business or office outside of the U.S. | |||||||||||||||||||||||||||||||
(g) | This category is comprised of investment options that invest in bonds, or debt of a company or government entity (including U.S. and non-U.S. entities). It may also include real estate investment options that directly own property. These investment options typically carry more risk than short-term fixed income investment options (including, for real estate investment options, liquidity risk), but less overall risk than equities. | |||||||||||||||||||||||||||||||
The valuation of plan assets 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. Level 2 securities primarily include equity and fixed income securities funds. | ||||||||||||||||||||||||||||||||
Benefit Payments | ||||||||||||||||||||||||||||||||
The following table reflects the benefits as of December 28, 2014 expected to be paid in each of the next five years and in the aggregate for the five years thereafter from our pension and other postretirement plans. Because our pension plans are primarily funded plans, the anticipated benefits with respect to these plans will come primarily from the trusts established for these plans. Because our other postretirement plans are unfunded, the anticipated benefits with respect to these plans will come from our own assets. | ||||||||||||||||||||||||||||||||
Pension Benefits | Other | |||||||||||||||||||||||||||||||
Benefits | ||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
2015 | $ | 13,458 | $ | 129 | ||||||||||||||||||||||||||||
2016 | 12,937 | 130 | ||||||||||||||||||||||||||||||
2017 | 12,502 | 130 | ||||||||||||||||||||||||||||||
2018 | 11,769 | 130 | ||||||||||||||||||||||||||||||
2019 | 11,278 | 130 | ||||||||||||||||||||||||||||||
2020-2024 | 52,157 | 627 | ||||||||||||||||||||||||||||||
Total | $ | 114,101 | $ | 1,276 | ||||||||||||||||||||||||||||
We anticipate contributing $9.4 million and $0.1 million, as required by funding regulations or laws, to our pension and other postretirement plans, respectively, during 2015. | ||||||||||||||||||||||||||||||||
Unrecognized Benefit Amounts in Accumulated Other Comprehensive Loss (Income) | ||||||||||||||||||||||||||||||||
The amounts in accumulated other comprehensive income (loss) that were not recognized as components of net periodic benefits cost and the changes in those amounts are as follows: | ||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Net actuarial loss (gain), beginning of year | $ | 16,957 | $ | 53,368 | $ | 31,108 | $ | (126 | ) | $ | (49 | ) | $ | (217 | ) | |||||||||||||||||
Amortization | (56 | ) | (1,001 | ) | (465 | ) | — | — | 2 | |||||||||||||||||||||||
Curtailment and settlement adjustments | (93 | ) | — | — | 9 | 15 | 7 | |||||||||||||||||||||||||
Actuarial loss (gain) | 24,670 | (24,315 | ) | 24,872 | (10 | ) | (92 | ) | 159 | |||||||||||||||||||||||
Asset loss (gain) | 2,429 | (11,095 | ) | (2,147 | ) | — | — | — | ||||||||||||||||||||||||
Net actuarial loss (gain), end of year | $ | 43,907 | $ | 16,957 | $ | 53,368 | $ | (127 | ) | $ | (126 | ) | $ | (49 | ) | |||||||||||||||||
The Company expects to recognize in net pension cost throughout 2015 an actuarial loss of $0.7 million that was recorded in accumulated other comprehensive income at December 28, 2014. | ||||||||||||||||||||||||||||||||
Defined Contribution Plans | ||||||||||||||||||||||||||||||||
The Company sponsors two defined contribution retirement savings plans named the Pilgrim’s Pride Retirement Savings Plan (the “RS Plan”) and the To-Ricos Employee Savings and Retirement Plan (the “To-Ricos Plan”). The RS Plan is an IRC Section 401(k) salary deferral plan maintained for certain eligible US employees. Under the RS Plan, eligible U.S. employees may voluntarily contribute a percentage of their compensation. The Company matches up to 30.0% of the first 2.14% to 6.00% of salary based on the salary deferral and compensation levels up to $245,000. The To-Ricos Plan is an IRC Section 1165(e) salary deferral plan maintained for certain eligible Puerto Rican employees. Under the To-Ricos Plan, eligible employees may voluntarily contribute a percentage of their compensation and there are various company matching provisions. The Company also maintains three postretirement plans for eligible Mexico employees as required by Mexico law that primarily cover termination benefits. | ||||||||||||||||||||||||||||||||
The Company’s expenses related to its defined contribution plans totaled $3.9 million, $3.9 million and $5.7 million in 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||
Certain retirement plans that the Company sponsors invest in a variety of financial instruments. Certain postretirement funds in which the Company participates hold significant amounts of mortgage-backed securities. However, none of the mortgages collateralizing these securities are considered subprime. |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended | |||||||||||||||||||||||
Dec. 28, 2014 | ||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY | |||||||||||||||||||||||
Rights Offering | ||||||||||||||||||||||||
In January 2012, Pilgrim's commenced the Rights Offering for stockholders of record as of January 17, 2012 (the “Record Date”). The basic subscription privilege gave stockholders the option to purchase 0.2072 shares of Pilgrim's common stock, rounded up to the next largest whole number, at a subscription price of $4.50 per share for each share of Pilgrim's common stock they owned as of the Record Date. The multiplier was determined by dividing the 44,444,444 shares being offered in the Rights Offering by the total number of shares owned by all stockholders on the Record Date. Those stockholders that exercised their basic subscription privilege in full also received an over-subscription privilege that afforded them the opportunity to purchase additional shares at the subscription price of $4.50 per share from a pool of the shares left over had all stockholders not elected to exercise their basic subscription privileges in full. JBS USA committed to participate in the Rights Offering and exercise its basic and over-subscription privileges in full. The last day a stockholder could exercise either their basic subscription rights or their over-subscription rights was February 29, 2012. On March 7, 2012, the Company issued 44,444,444 shares of common stock to stockholders that exercised their basic subscription privileges and over-subscription privileges under the Rights Offering. Gross proceeds received under the Rights Offering totaled $200.0 million. The Company incurred costs directly attributable to the Rights Offering of $1.7 million that it deferred and charged against the proceeds of the Rights Offering in Additional Paid-in Capital on the Consolidated Balance Sheet. The Company used the net proceeds of $198.3 million for additional working capital to improve its capital position and for general corporate purposes. Pilgrim's also used a portion of the net proceeds to repay the outstanding principal amount of $50.0 million, plus accrued interest, of its subordinated debt owed to JBS USA and to repay indebtedness under the U.S. Credit Facility. | ||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||
The following tables provide information regarding the changes in accumulated other comprehensive loss during 2014 and 2013: | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Losses Related to Pension and Other Postretirement Benefits | Unrealized Holding Gains on Available-for-Sale Securities | Total | Losses Related to Pension and Other Postretirement Benefits | Unrealized Holding Gains on Available-for-Sale Securities | Total | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Balance, beginning of year | $ | (45,797 | ) | $ | 62 | $ | (45,735 | ) | $ | (68,511 | ) | $ | — | $ | (68,511 | ) | ||||||||
Other comprehensive income (loss) | (16,810 | ) | 319 | (16,491 | ) | 21,713 | 62 | 21,775 | ||||||||||||||||
before reclassifications | ||||||||||||||||||||||||
Amounts reclassified from | 35 | (350 | ) | (315 | ) | 1,001 | — | 1,001 | ||||||||||||||||
accumulated other comprehensive | ||||||||||||||||||||||||
loss to net income | ||||||||||||||||||||||||
Net current year other | (16,775 | ) | (31 | ) | (16,806 | ) | 22,714 | 62 | 22,776 | |||||||||||||||
comprehensive income (loss) | ||||||||||||||||||||||||
Balance, end of year | $ | (62,572 | ) | $ | 31 | $ | (62,541 | ) | $ | (45,797 | ) | $ | 62 | $ | (45,735 | ) | ||||||||
(a) | All amounts are net of tax. Amounts in parentheses indicate debits. | |||||||||||||||||||||||
Details about Accumulated Other Comprehensive Loss Components | Amount Reclassified from Accumulated Other Comprehensive Loss(a) | Affected Line Item in the Consolidated Statements of Operations | ||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Realized gain on sale of securities | $ | 562 | $ | — | Selling, general and administrative expense | |||||||||||||||||||
Amortization of pension and other | ||||||||||||||||||||||||
postretirement plan actuarial losses: | ||||||||||||||||||||||||
Union employees pension plan(b) | — | (36 | ) | (d) | Cost of goods sold | |||||||||||||||||||
Legacy Gold Kist plans(c) | (56 | ) | (965 | ) | (d) | Selling, general and administrative expense | ||||||||||||||||||
Total before tax | 506 | (1,001 | ) | |||||||||||||||||||||
Tax benefit (expense) | (191 | ) | — | |||||||||||||||||||||
Total reclassification for the period | $ | 315 | $ | (1,001 | ) | |||||||||||||||||||
(a) | Amounts in parentheses represent debits to results of operations. | |||||||||||||||||||||||
(b) | The Company sponsors the Union Plan, a qualified defined benefit pension plan covering certain locations or work groups with collective bargaining agreements. | |||||||||||||||||||||||
(c) | The Company sponsors the GK Pension Plan, a qualified defined benefit pension plan covering certain eligible U.S. employees who were employed at locations that the Company purchased through its acquisition of Gold Kist in 2007, the SERP Plan, a nonqualified defined benefit retirement plan covering certain former Gold Kist executives, the Directors’ Emeriti Plan, a nonqualified defined benefit retirement plan covering certain former Gold Kist directors and the Retiree Life Plan, a defined benefit postretirement life insurance plan covering certain retired Gold Kist employees (collectively, the “Legacy Gold Kist Plans”). | |||||||||||||||||||||||
(d) | These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See “Note 12. Pension and Other Postretirement Benefits” to the Consolidated Financial Statements. | |||||||||||||||||||||||
Special Cash Dividend | ||||||||||||||||||||||||
On January 15, 2015, the Company announced that its Board of Directors had approved the declaration of a special cash dividend of $5.77 per share. The total amount of the special cash dividend payment will be approximately $1.5 billion based on the current number of shares outstanding. The special cash dividend is payable on February 17, 2015, to stockholders of record on January 30, 2015. The Company intends to use proceeds from the 2015 U.S. Credit Facility to fund, along with cash on hand, the special cash dividend. | ||||||||||||||||||||||||
Set forth below is the Condensed Unaudited Pro Forma Consolidated Balance Sheet as of December 28, 2014, which gives effect to the special cash dividend and the borrowings necessary to fund the special cash dividend as if they occurred on December 28, 2014. The assumptions on which the pro forma financial information is based are further described in the Notes to Condensed Unaudited Pro Forma Consolidated Balance Sheet. Management of the Company believes that the assumptions used provide a reasonable basis on which to present the Condensed Unaudited Pro Forma Consolidated Balance Sheet. The pro forma financial information does not purport to be indicative of the financial position that would actually have resulted if the special cash dividend and the related borrowings necessary to fund the special cash dividend had been completed as of such date or that may result in the future. The pro forma financial information should be read in conjunction with the accompanying notes thereto, the Consolidated Financial Statements and the Notes to Consolidated Financial Statements. | ||||||||||||||||||||||||
PILGRIM’S PRIDE CORPORATION | ||||||||||||||||||||||||
CONDENSED UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET | ||||||||||||||||||||||||
December 28, 2014 | Special Cash Dividend | December 28, 2014 | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 576,143 | $ | 1,196,000 | (a) | $ | 267,786 | |||||||||||||||||
(1,500,000 | ) | (b) | ||||||||||||||||||||||
(4,357 | ) | (c) | ||||||||||||||||||||||
Trade accounts and other receivables, less | 378,890 | — | 378,890 | |||||||||||||||||||||
allowance for doubtful accounts | ||||||||||||||||||||||||
Inventories | 790,305 | — | 790,305 | |||||||||||||||||||||
Other | 139,741 | — | 139,741 | |||||||||||||||||||||
Total current assets | 1,885,079 | (308,357 | ) | 1,576,722 | ||||||||||||||||||||
Property, plant and equipment, net | 1,182,795 | — | 1,182,795 | |||||||||||||||||||||
Other | 51,189 | 4,357 | (c) | 55,546 | ||||||||||||||||||||
Total assets | $ | 3,119,063 | $ | (304,000 | ) | $ | 2,815,063 | |||||||||||||||||
Total current liabilities | $ | 744,858 | $ | — | $ | 744,858 | ||||||||||||||||||
Long-term debt, less current maturities | 3,980 | 1,196,000 | (a) | 1,199,980 | ||||||||||||||||||||
Deferred tax liabilities | 76,216 | — | 76,216 | |||||||||||||||||||||
Other long-term liabilities | 97,208 | — | 97,208 | |||||||||||||||||||||
Total stockholders’ equity | 2,196,801 | (1,500,000 | ) | (b) | 696,801 | |||||||||||||||||||
Total liabilities and stockholders' equity | $ | 3,119,063 | $ | (304,000 | ) | $ | 2,815,063 | |||||||||||||||||
The accompanying notes are an integral part of this Condensed Unaudited Pro Forma Consolidated Balance Sheet. | ||||||||||||||||||||||||
Notes to Condensed Unaudited Pro Forma Consolidated Balance Sheet | ||||||||||||||||||||||||
1. Basis of Presentation | ||||||||||||||||||||||||
The following summary of pro forma adjustments is based on available information and various estimates and assumptions. Management of the Company believes that these assumptions provide a reasonable basis for presenting all of the significant effects of the following transactions and events and that the pro forma adjustments give appropriate effect to those assumptions and are properly applied in the Condensed Unaudited Pro Forma Consolidated Balance Sheet. | ||||||||||||||||||||||||
The Condensed Unaudited Pro Forma Consolidated Balance Sheet gives effect to the transactions described below: | ||||||||||||||||||||||||
• | Payment of a special cash dividend to stockholders of approximately $1.5 billion, which will be funded by approximately $300.0 million of cash and cash equivalents on hand and proceeds of approximately $1.2 billion from additional long-term debt. | |||||||||||||||||||||||
• | Payment and capitalization of approximately $4.4 million in financing fees related thereto. | |||||||||||||||||||||||
The Condensed Unaudited Pro Forma Balance Sheet as of December 28, 2014 gives effect to the transactions as if they occurred on December 28, 2014. | ||||||||||||||||||||||||
2. Condensed Unaudited Pro Forma Consolidated Balance Sheet | ||||||||||||||||||||||||
(a) | To reflect cash from additional borrowings of long-term debt used to pay the special cash dividend to stockholders. | |||||||||||||||||||||||
(b) | To reflect the payment of the special cash dividend to stockholders. | |||||||||||||||||||||||
(c) | To reflect the payment and capitalization of financing fees. |
INCENTIVE_COMPENSATION
INCENTIVE COMPENSATION | 12 Months Ended | ||||||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
INCENTIVE COMPENSATION | INCENTIVE COMPENSATION | ||||||||||||||||||||
The Company sponsors a short-term incentive plan that provides the grant of either cash or share-based bonus awards payable upon achievement of specified performance goals (the “STIP”). Full-time, salaried exempt employees of the Company and its affiliates who are selected by the administering committee are eligible to participate in the STIP. The Company has accrued $35.0 million in costs related to the STIP at December 28, 2014 related to cash bonus awards that could potentially be awarded during 2016. | |||||||||||||||||||||
The Company also sponsors a performance-based, omnibus long-term incentive plan that provides for the grant of a broad range of long-term equity-based and cash-based awards to the Company’s officers and other employees, members of the Board and any consultants (the “LTIP”). The equity-based awards that may be granted under the LTIP include “incentive stock options,” within the meaning of the IRC, nonqualified stock options, stock appreciation rights, restricted stock awards (“RSAs”) and restricted stock units (“RSUs”). At December 28, 2014, we have reserved approximately 6.6 million shares of common stock for future issuance under the LTIP. | |||||||||||||||||||||
The following awards existed during 2014: | |||||||||||||||||||||
Award | Benefit Plan | Award Quantity | Grant Date | Vesting Condition | Vesting Date | Estimated | Settlement Method | ||||||||||||||
Type | Forfeiture | ||||||||||||||||||||
Rate | |||||||||||||||||||||
RSA | Employment Agreement | 100,000 | January 14, 2011 | Service | January 3, 2014 | — | % | Stock | |||||||||||||
RSA | LTIP | 72,675 | August 27, 2012 | Service | April 27, 2014 | — | % | Stock | |||||||||||||
RSU | LTIP | 608,561 | February 4, 2013 | Service | December 31, 2014 | 9.66 | % | Stock | |||||||||||||
RSA | LTIP | 15,000 | February 25, 2013 | Service | February 24, 2015 | — | % | Stock | |||||||||||||
RSA | LTIP | 15,000 | February 25, 2013 | Service | February 24, 2016 | — | % | Stock | |||||||||||||
RSU | LTIP | 206,933 | February 26, 2013 | Service | December 31, 2014 | — | % | Stock | |||||||||||||
RSU | LTIP | 462,518 | February 19, 2014 | Service | December 31, 2016 | 13.49 | % | Stock | |||||||||||||
The fair value of each RSA and RSU granted represents the closing price of the Company’s common stock on the respective grant date. | |||||||||||||||||||||
Compensation costs and the income tax benefit recognized for our share-based compensation arrangements are included below: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Share-based compensation cost: | |||||||||||||||||||||
Cost of goods sold | $ | 395 | $ | 361 | $ | — | |||||||||||||||
Selling, general and administrative expenses | 4,533 | 2,984 | 684 | ||||||||||||||||||
Total | $ | 4,928 | $ | 3,345 | $ | 684 | |||||||||||||||
Income tax benefit | $ | 1,326 | $ | 471 | $ | 28 | |||||||||||||||
The Company’s RSA and RSU activity is included below: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Number | Weighted Average Grant Date Fair Value | Number | Weighted Average Grant Date Fair Value | Number | Weighted Average Grant Date Fair Value | ||||||||||||||||
(In thousands, except weighted average fair values) | |||||||||||||||||||||
RSAs: | |||||||||||||||||||||
Outstanding at beginning of year | 203 | $ | 6.59 | 273 | $ | 6.54 | 200 | $ | 7.1 | ||||||||||||
Granted | — | — | 30 | 8.72 | 73 | 5 | |||||||||||||||
Vested | (173 | ) | 6.62 | (100 | ) | 7.1 | — | — | |||||||||||||
Outstanding at end of year | 30 | $ | 8.72 | 203 | $ | 6.59 | 273 | $ | 6.54 | ||||||||||||
RSUs: | |||||||||||||||||||||
Outstanding at beginning of year | 729 | $ | 8.81 | — | $ | — | — | $ | — | ||||||||||||
Granted | 463 | 16.7 | 815 | 8.82 | — | — | |||||||||||||||
Vested | — | — | — | — | — | — | |||||||||||||||
Forfeited | (72 | ) | 10.34 | (86 | ) | 8.89 | — | — | |||||||||||||
Outstanding at end of year | 1,120 | $ | 11.97 | 729 | $ | 8.81 | — | $ | — | ||||||||||||
The total fair value of shares vested in 2014 and 2013 was $3.2 million and 0.7 million, respectively. No shares vested in 2012. | |||||||||||||||||||||
At December 28, 2014, the total unrecognized compensation cost related to all nonvested awards was $5.9 million. That cost is expected to be recognized over a weighted average period of 1.99 years. | |||||||||||||||||||||
Historically, we have issued new shares to satisfy award conversions. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | |||||||||||
Dec. 28, 2014 | ||||||||||||
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 persons and our current and former directors and executive officers. Company management has analyzed the terms of all contracts executed with related parties and believes that they are substantially similar to, and contain terms no less favorable to us than, those obtainable from unaffiliated parties. | ||||||||||||
On December 28, 2009, JBS USA became the holder of the majority of the common stock of the Company. As of December 28, 2014, JBS USA beneficially owned 75.5% of the total outstanding shares of our common stock. | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
JBS USA: | ||||||||||||
Letter of credit fees(a) | $ | 1,339 | $ | 2,156 | $ | 1,339 | ||||||
Equity contribution under tax sharing agreement(b) | 3,849 | — | — | |||||||||
JBS USA, LLC: | ||||||||||||
Purchases from JBS USA, LLC | 115,337 | 80,809 | 69,048 | |||||||||
Expenditures paid by JBS USA, LLC on behalf of Pilgrim’s(c) | 31,149 | 55,730 | 61,353 | |||||||||
Sales to JBS USA, LLC | 39,682 | 61,942 | 206,720 | |||||||||
Expenditures paid by Pilgrim’s on behalf of JBS USA, LLC(c) | 4,925 | 1,733 | 4,134 | |||||||||
JBS Aves Ltda.: | ||||||||||||
Purchases from JBS Aves Ltda. | 4,072 | — | — | |||||||||
Seara International Ltd.: | ||||||||||||
Purchases from Seara International Ltd. | 2,091 | — | — | |||||||||
JBS Chile Ltda.: | ||||||||||||
Sales to JBS Chile Ltda. | 463 | — | — | |||||||||
JBS Global (UK) Ltd.: | ||||||||||||
Sales to JBS Global (UK) Ltd. | 255 | — | — | |||||||||
(a) | Beginning on October 26, 2011, JBS USA arranged for letters of credit to be issued on its account in the amount of $56.5 million to an insurance company on our behalf in order to allow that insurance company to return cash it held as collateral against potential liability claims. We agreed to reimburse JBS USA up to $56.5 million for potential draws upon these letters of credit. We reimburse JBS USA for the letter of credit costs we would have otherwise incurred under our credit facilities. During 2014, we have paid JBS USA $1.3 million for letter of credit costs. As of December 28, 2014, the Company has accrued an obligation of $0.1 million to reimburse JBS USA for letter of credit costs incurred on its behalf. | |||||||||||
(b) | The Company entered into a tax sharing agreement during 2014 with JBS USA effective for tax years starting 2010. The net tax receivable for tax years 2010 through 2014 was accrued in 2014. | |||||||||||
(c) | On January 19, 2010, the Company entered into an agreement with JBS USA, LLC in order to allocate costs associated with JBS USA, LLC'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, LLC 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. On May 5, 2010, the Company also entered into an agreement with JBS USA, LLC in order 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, LLC on behalf of the Company will be reimbursed by the Company and expenditures paid by the Company on behalf of JBS USA, LLC will be reimbursed by JBS USA, LLC. This agreement expires on May 5, 2015. | |||||||||||
As of December 28, 2014 and December 29, 2013, the outstanding payable to JBS USA was $0.1 million and $0.1 million, respectively. As of December 28, 2014, the outstanding receivable from JBS USA was $3.8 million. | ||||||||||||
As of December 28, 2014 and December 29, 2013, the outstanding payable to JBS USA, LLC was $4.8 million and $3.9 million, respectively. As of December 28, 2014 and December 29, 2013, the outstanding receivable from JBS USA, LLC was $1.4 million and $2.4 million, respectively. As of December 28, 2014, approximately $4.2 million of goods from JBS USA, LLC were in transit and not reflected on our Consolidated Balance Sheet. | ||||||||||||
As of December 28, 2014, the outstanding receivable from JBS Global (UK) Ltd. was $0.1 million. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Dec. 28, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES | ||||
General | |||||
We are a party to many routine contracts in which we provide general indemnities in the normal course of business to third parties for various risks. Among other considerations, we have not recorded a liability for any of these indemnities as based upon the likelihood of payment, the fair value of such indemnities would not have a material impact on our financial condition, results of operations and cash flows. | |||||
Purchase Obligations | |||||
The Company will sometimes enter into noncancelable contracts to purchase capital equipment and certain commodities such as corn, soybean meal, and electricity. At December 28, 2014, the Company was party to outstanding purchase contracts totaling $53.3 million, $4.6 million and $0.8 million payable in 2015, 2016, and 2017, respectively. | |||||
Operating Leases | |||||
The Consolidated Statements of Operations include rental expense for operating leases of approximately $15.2 million, $9.6 million and $14.3 million in 2014, 2013 and 2012, respectively. The Company’s future minimum lease commitments under noncancelable operating leases are as follows (in thousands): | |||||
2015 | $ | 16,893 | |||
2016 | 14,019 | ||||
2017 | 11,213 | ||||
2018 | 8,197 | ||||
2019 | 5,875 | ||||
Thereafter | 3,114 | ||||
Total | $ | 59,311 | |||
Certain of the Company’s operating leases include rent escalations. The Company includes the rent escalation in its minimum lease payments obligations and recognizes them as a component of rental expense on a straight-line basis over the minimum lease term. | |||||
The Company also maintains operating leases for various types of equipment, some of which contain residual value guarantees for the market value of assets at the end of the term of the lease. The terms of the lease maturities range from one to ten years. The maximum potential amount of the residual value guarantees is estimated to be approximately $29.7 million; however, the actual amount would be offset by any recoverable amount based on the fair market value of the underlying leased assets. No liability has been recorded related to this contingency as the likelihood of payments under these guarantees is not considered to be probable and the fair value of such guarantees is immaterial. The Company historically has not experienced significant payments under similar residual guarantees. | |||||
Financial Instruments | |||||
Pursuant to the terms of the Subordinated Loan Agreement, we have agreed to reimburse JBS USA up to $56.5 million for draws upon any letters of credit issued for JBS USA's account that support certain obligations of the Company and its subsidiaries. | |||||
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 (i) any reserve or special deposit requirement against assets of, deposits with or credit extended by such lender related to the loan, (ii) any tax, duty or other charge with respect to the loan (except standard income tax) or (iii) 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 | |||||
We are a party to many routine contracts in which we provide general indemnities in the normal course of business to third parties for various risks. Among other considerations, we have not recorded a liability for any of these indemnities as based upon the likelihood of payment, the fair value of such indemnities would not have a material impact on our financial condition, results of operations and cash flows . | |||||
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. For a discussion of the material legal proceedings and claims, see Part II, Item 1. “Legal Proceedings.” Below is a summary of some of these material proceedings and claims. The Company believes it has substantial defenses to the claims made and intends to vigorously defend these cases. | |||||
On December 1, 2008, Pilgrim’s and six of its subsidiaries filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Northern District of Texas, Fort Worth Division (“Bankruptcy Court”). The cases were jointly administered under Case No. 08-45664. The Company emerged from Chapter 11 on December 28, 2009. The Company is the named defendant in several pre-petition lawsuits that, as of December 28, 2014, have not been resolved. Among the claims presently pending are claims brought against certain current and former directors, executive officers and employees of the Company, the Pilgrim’s Pride Administrative Committee and the Pilgrim’s Pride Pension Committee seeking unspecified damages under section 502 of the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1132. These claims were brought by individual participants in the Pilgrim’s Pride Retirement Savings Plan, individually and on behalf of a putative class, alleging that the defendants breached fiduciary duties to plan participants and beneficiaries or otherwise violated ERISA. Although the Company is not a named defendant in these claims, our bylaws require us to indemnify our current and former directors and officers from any liabilities and expenses incurred by them in connection with actions they took in good faith while serving as an officer or director. In these actions the plaintiffs assert claims in excess of $35.0 million. The likelihood of an unfavorable outcome or the amount or range of any possible loss to the Company cannot be determined at this time. | |||||
Other claims presently pending against the Company are claims seeking unspecified damages brought by current or former contract chicken growers who allege, along with other assertions, that the Company breached grower contracts and made false representations to induce the plaintiffs into building chicken farms and entering into chicken growing agreements with the Company. In the case styled Shelia Adams, et al. v. Pilgrim’s Pride Corporation, on September 30, 2011, the trial court issued its findings of fact and conclusions of law stating that the Company violated section 192(e) of the Packers and Stockyards Act of 1921 by purportedly attempting to manipulate the price of chicken by idling the El Dorado, Arkansas complex and rejecting the El Dorado growers’ contracts. The trial court awarded damages in the amount of $25.8 million. Afterward, the Company filed post-judgment motions attacking the trial court’s findings of fact and conclusions of law, which, on December 28, 2011, were granted in part and resulted in a reduction of the damages award from $25.8 million to $25.6 million. On January 19, 2012, the Company appealed the findings of fact and conclusions of law and decision concerning the post-judgment motions to the United States Fifth Circuit Court of Appeals (“Fifth Circuit”). Oral argument occurred December 3, 2012. On August 27, 2013, the Fifth Circuit reversed the judgment, and entered a judgment in favor of the Company. Plaintiffs thereafter filed a petition for rehearing en banc. Plaintiffs’ petition for rehearing was denied on October 15, 2013. On January 13, 2014, Plaintiffs filed a Petition for a Writ of Certiorari requesting the Supreme Court of the United States to accept their case for review. Plaintiff’s petition for a Writ of Certiorari was denied on February 24, 2014. The Fifth Circuit's decision and prior favorable trial court rulings regarding the El Dorado growers' claims suggest that the likelihood of any recovery by growers remaining in the case is too remote to maintain the previously-recorded loss accrual. Therefore, the Company reversed the accrual on September 1, 2013. | |||||
As for the remaining chicken grower claims, the bench trial relating to the allegations asserted by the plaintiffs from the Farmerville, Louisiana complex began on July 16, 2012. That bench trial concluded on August 2, 2012, but the Marshall Court postponed its ruling until the appeals process regarding the allegations asserted by the El Dorado growers was exhausted. The bench trial relating to the claims asserted by the plaintiffs from the Nacogdoches, Texas complex began on September 12, 2012, but was also postponed until the appeals process regarding the allegations asserted by the El Dorado growers was exhausted. The remaining bench trial for the plaintiffs from the De Queen and Batesville, Arkansas complexes was scheduled for October 29, 2012, but that trial date was canceled. Following the denial by the Supreme Court of the United States for a Writ of Certiorari related to the claims asserted by the plaintiffs from the El Dorado, Arkansas complex, the Marshall Court requested briefing on the allegations asserted by the plaintiffs from the Farmerville, Louisiana complex and scheduled trial proceedings for allegations asserted by the plaintiffs from the Nacogdoches complex on August 25, 2014 and allegations asserted by the plaintiffs from the De Queen and Batesville, Arkansas complexes on October 27, 2014. Prior to commencing the trial proceedings on the allegations asserted by the plaintiffs from the De Queen and Batesville, Arkansas complexes, the Marshall Court announced it would enter judgment in PPC’s favor on all remaining federal causes of action, and plaintiffs from the De Queen and Batesville complexes were given additional time to brief Arkansas state law claims. The court-imposed deadline passed with no briefs filed by plaintiffs. At this time, the Marshall Court has not memorialized its decision in writing. | |||||
The IRS filed an amended proof of claim in the Bankruptcy Court pursuant to which the IRS asserted claims that total $74.7 million. We entered into two Stipulations with the IRS on December 12, 2012 that accounted for approximately $29.3 million of the amended proof of claim and should result in no additional tax due. | |||||
In connection with the remaining claim for approximately $45.4 million included in the amended proof of claim, we filed a petition in Tax Court on May 26, 2010 in response to a Notice of Deficiency that was issued to the Company as the successor in interest to Gold Kist. The Notice of Deficiency and the Tax Court proceeding relate to a loss that Gold Kist claimed for its tax year ended June 26, 2004. On December 11, 2013, the Tax Court issued its opinion in the Tax Court case holding the loss that Gold Kist claimed for its tax year ended June 26, 2004 is capital in nature. On January 10, 2014, PPC filed both a Motion for Reconsideration and a Motion for Full Tax Court review of both its Motion for Reconsideration and any order issued in response to such motion. On March 10, 2014, the Tax Court denied both the Motion for Reconsideration and the Motion for Full Tax Court review. On April 14, 2014, the Company appealed the findings of fact and conclusions of law and decision concerning the post-judgment motions to the Fifth Circuit. The Company filed an opening brief with the Fifth Circuit on June 30, 2014. The IRS filed a response brief with the Fifth Circuit on August 15, 2014. The Company then filed their reply brief with the Fifth Circuit on September 2, 2014. Oral argument before the Fifth Circuit occurred during the week beginning January 5, 2015. | |||||
Upon the initial filing of the Gold Kist tax return for the year ended June 26, 2004, the Company assessed the likelihood that the position related to the proceeding would be sustained upon examination and determined that it met the recognition threshold and the full amount of benefit was recognized. We continue to believe the position is more likely than not of being sustained. If adversely determined, the outcome could have a material effect on the Company's operating results and financial position. |
MARKET_RISKS_AND_CONCENTRATION
MARKET RISKS AND CONCENTRATIONS | 12 Months Ended |
Dec. 28, 2014 | |
Risks and Uncertainties [Abstract] | |
MARKET RISKS AND CONCENTRATIONS | MARKET RISKS AND CONCENTRATIONS |
The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash equivalents, investment securities and trade accounts receivable. The Company’s cash equivalents and investment securities are high-quality debt and equity securities placed with major banks and financial institutions. The Company’s trade accounts receivable are generally unsecured. Credit evaluations are performed on all significant customers and updated as circumstances dictate. Concentrations of credit risk with respect to trade accounts receivable are limited due to the large number of customers and their dispersion across geographic areas. With the exception of one customer that accounts for approximately 10.8% of trade accounts and other receivables at December 28, 2014, and approximately 8.2% of net sales for 2014, the Company does not believe it has significant concentrations of credit risk in its trade accounts receivable. | |
At December 28, 2014, approximately 38.1% of the Company’s employees were covered under collective bargaining agreements. Substantially all employees covered under collective bargaining agreements are covered under agreements that expire in 2017 or 2018 with the exception of one live operations location where the collective bargaining agreement expired in 2014 and negotiations are ongoing. We have not experienced any labor-related work stoppage at any location in over nine years. We believe our relationship with our employees and union leadership is satisfactory. At any given time, we will likely be in some stage of contract negotiations with various collective bargaining units. The Company is currently in negotiations at one location, and there is no assurance that agreement will be reached. In the absence of an agreement, we may become subject to labor disruption at this location, which could have an adverse effect on our financial results. | |
The aggregate carrying amount of net assets belonging to our Mexico operations was $454.5 million and $359.0 million at December 28, 2014 and December 29, 2013, respectively. |
BUSINESS_SEGMENT_AND_GEOGRAPHI
BUSINESS SEGMENT AND GEOGRAPHIC REPORTING | 12 Months Ended | ||||||||||||
Dec. 28, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
BUSINESS SEGMENT AND GEOGRAPHIC REPORTING | BUSINESS SEGMENT AND GEOGRAPHIC REPORTING | ||||||||||||
We operate in one reportable business segment, as a producer and seller of chicken products we either produce or purchase for resale in the U.S., Puerto Rico and Mexico. We conduct separate operations in the U.S., Puerto Rico and Mexico; however, for geographic reporting purposes, we include Puerto Rico with our U.S. operations. Corporate expenses are allocated to Mexico based upon various apportionment methods for specific expenditures incurred related thereto with the remaining amounts allocated to the U.S. | |||||||||||||
Net sales to customers by customer location and long-lived assets are as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Net sales to customers by customer location: | |||||||||||||
United States | $ | 7,067,408 | $ | 6,816,246 | $ | 6,600,206 | |||||||
Mexico | 1,075,764 | 1,108,308 | 988,712 | ||||||||||
Asia | 246,141 | 301,545 | 262,455 | ||||||||||
North America | 80,121 | 51,275 | 111,305 | ||||||||||
Africa | 49,810 | 38,809 | 62,642 | ||||||||||
Europe | 44,377 | 73,349 | 79,101 | ||||||||||
South America | 18,102 | 19,224 | 13,775 | ||||||||||
Pacific | 1,642 | 2,392 | 3,186 | ||||||||||
Total | $ | 8,583,365 | $ | 8,411,148 | $ | 8,121,382 | |||||||
December 28, 2014 | December 29, 2013 | ||||||||||||
(In thousands) | |||||||||||||
Long-lived assets(a): | |||||||||||||
United States | $ | 1,085,856 | $ | 1,066,963 | |||||||||
Mexico | 96,939 | 84,848 | |||||||||||
Total | $ | 1,182,795 | $ | 1,151,811 | |||||||||
(a) | For this disclosure, we exclude financial instruments, deferred tax assets and intangible assets in accordance with ASC 280-10-50-41, Segment Reporting. Long-lived assets, as used in ASC 280-10-50-41, implies hard assets that cannot be readily removed. | ||||||||||||
The following table sets forth, for the periods beginning with 2012, net sales attributable to each of our primary product lines and markets served with those products. We based the table on our internal sales reports and their classification of product types. | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
U.S. chicken: | |||||||||||||
Prepared chicken | $ | 1,787,389 | $ | 2,046,747 | $ | 2,239,289 | |||||||
Fresh chicken | 4,703,993 | 4,123,087 | 3,583,854 | ||||||||||
Export and other chicken by-products | 620,082 | 715,970 | 817,723 | ||||||||||
Total U.S. chicken | 7,111,464 | 6,885,804 | 6,640,866 | ||||||||||
Mexico chicken | 900,360 | 864,454 | 758,023 | ||||||||||
Total chicken | 8,011,824 | 7,750,258 | 7,398,889 | ||||||||||
Other products: | |||||||||||||
U.S. | 535,572 | 614,409 | 608,619 | ||||||||||
Mexico | 35,969 | 46,481 | 113,874 | ||||||||||
Total other products | 571,541 | 660,890 | 722,493 | ||||||||||
Total net sales | $ | 8,583,365 | $ | 8,411,148 | $ | 8,121,382 | |||||||
QUARTERLY_RESULTS_UNAUDITED
QUARTERLY RESULTS (UNAUDITED) | 12 Months Ended | ||||||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||
QUARTERLY RESULTS (UNAUDITED-SEE ACCOMPANYING ACCOUNTANTS' REPORT) | QUARTERLY RESULTS (UNAUDITED) | ||||||||||||||||||||
2014 | First | Second | Third | Fourth | Year | ||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||
Net sales | $ | 2,018,065 | $ | 2,186,817 | $ | 2,268,048 | $ | 2,110,435 | $ | 8,583,365 | |||||||||||
Gross profit | 215,106 | 349,476 | 450,265 | 379,148 | 1,393,995 | ||||||||||||||||
Net income attributable to PPC | 98,117 | 190,360 | 255,983 | 167,188 | 711,648 | ||||||||||||||||
common stockholders | |||||||||||||||||||||
Net income per share amounts - | 0.38 | 0.74 | 0.99 | 0.65 | 2.75 | ||||||||||||||||
basic | |||||||||||||||||||||
Net income per share amounts - | 0.38 | 0.73 | 0.99 | 0.64 | 2.74 | ||||||||||||||||
diluted | |||||||||||||||||||||
Number of days in quarter | 91 | 91 | 91 | 91 | 364 | ||||||||||||||||
2013 | First | Second | Third | Fourth(a) | Year | ||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||
Net sales | $ | 2,036,929 | $ | 2,184,118 | $ | 2,142,816 | $ | 2,047,285 | $ | 8,411,148 | |||||||||||
Gross profit (loss) | 118,434 | 282,507 | 236,573 | 207,925 | 845,439 | ||||||||||||||||
Net loss attributable to PPC | 54,582 | 190,704 | 160,917 | 143,352 | 549,555 | ||||||||||||||||
common stockholders | |||||||||||||||||||||
Net loss per share amounts - | 0.21 | 0.74 | 0.62 | 0.55 | 2.12 | ||||||||||||||||
basic and diluted | |||||||||||||||||||||
Number of days in quarter | 91 | 91 | 91 | 91 | 364 | ||||||||||||||||
(a) | In the fourth quarter of 2013, the Company recognized expenses related to the shutdown of our Dallas plant of $0.5 million and asset impairment charges of $0.5 million. | ||||||||||||||||||||
2012 | First | Second | Third | Fourth(a) | Year | ||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||
Net sales | $ | 1,888,773 | $ | 1,974,469 | $ | 2,068,478 | $ | 2,189,662 | $ | 8,121,382 | |||||||||||
Gross profit | 110,065 | 144,089 | 106,135 | 75,543 | 435,832 | ||||||||||||||||
Net income (loss) attributable to PPC | 39,173 | 69,357 | 42,931 | 22,773 | 174,234 | ||||||||||||||||
common stockholders | |||||||||||||||||||||
Net income (loss) per share amounts - | 0.18 | 0.27 | 0.17 | 0.09 | 0.7 | ||||||||||||||||
basic and diluted | |||||||||||||||||||||
Number of days in quarter | 91 | 91 | 91 | 98 | 371 | ||||||||||||||||
(a) | In the fourth quarter of 2012, the Company recognized expenses related to the shutdown of our Dallas plant of $1.1 million and asset impairment charges of $1.4 million. |
SCHEDULE_II_VALUATION_AND_QUAL
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | |||||||||||||||||||||
Dec. 28, 2014 | ||||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||||||||
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II | |||||||||||||||||||||
PILGRIM’S PRIDE CORPORATION | ||||||||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||||||||
Additions | ||||||||||||||||||||||
Beginning | Charged to | Charged to | Deductions | Ending | ||||||||||||||||||
Balance | Operating Results | Other Accounts | Balance | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Trade Accounts and Other Receivables— | ||||||||||||||||||||||
Allowance for Doubtful Accounts: | ||||||||||||||||||||||
2014 | $ | 4,056 | $ | 520 | $ | — | $ | 2,051 | (a) | $ | 2,525 | |||||||||||
2013 | 3,757 | 1,668 | — | 1,369 | (a) | 4,056 | ||||||||||||||||
2012 | 5,163 | (1,629 | ) | — | (223 | ) | (a) | 3,757 | ||||||||||||||
Trade Accounts and Other Receivables— | ||||||||||||||||||||||
Allowance for Sales Adjustments: | ||||||||||||||||||||||
2014 | $ | 7,089 | $ | 220,123 | $ | — | $ | 219,787 | (b) | $ | 7,425 | |||||||||||
2013 | 10,152 | 159,417 | — | 162,480 | (b) | 7,089 | ||||||||||||||||
2012 | 8,030 | 147,126 | — | 145,004 | (b) | 10,152 | ||||||||||||||||
Deferred Tax Assets— | ||||||||||||||||||||||
Valuation Allowance: | ||||||||||||||||||||||
2014 | $ | 10,400 | $ | (1,250 | ) | $ | — | $ | — | (c) | $ | 9,150 | ||||||||||
2013 | 188,354 | (164,180 | ) | (13,774 | ) | — | (c) | 10,400 | ||||||||||||||
2012 | 230,336 | (50,455 | ) | 8,473 | — | (c) | 188,354 | |||||||||||||||
(a) Uncollectible accounts written off, net of recoveries. | ||||||||||||||||||||||
(b) Deductions either written off, rebilled or reclassified as liabilities for market development fund rebates. | ||||||||||||||||||||||
(c) Reductions in the valuation allowance. |
BUSINESS_AND_SUMMARY_OF_SIGNIF1
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy) | 12 Months Ended |
Dec. 28, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidated Financial Statements | Consolidated Financial Statements |
The Company operates on the basis of a 52/53-week fiscal year ending on the Sunday falling on or before December 31. The reader should assume any reference we make to a particular year (for example, 2014) in the notes to these Consolidated Financial Statements applies to our fiscal year and not the calendar year. | |
The consolidated financial statements include the accounts of Pilgrim’s Pride Corporation and its majority owned subsidiaries. We eliminate all significant affiliate accounts and transactions upon consolidation. | |
Foreign Currency Transactions and Translations | The Company measures the financial statements of its Mexico subsidiaries as if the U.S. dollar were the functional currency. Accordingly, we remeasure assets and liabilities, other than non-monetary assets, of the Mexico subsidiaries at current exchange rates. We remeasure nonmonetary assets using the historical exchange rate in effect on the date of each asset's acquisition. We remeasure income and expenses at average exchange rates in effect during the period, except for certain accounts which are remeasured at a historical rate. Currency exchange gains or losses are included in the line item Foreign currency transaction losses (gains) in the Consolidated Statements of Operations. |
Revenue Recognition | Revenue Recognition |
We recognize revenue when all of the following circumstances are satisfied: (i) persuasive evidence of an arrangement exits, (ii) price is fixed or determinable, (iii) collectability is reasonably assured and (iv) delivery has occurred. Delivery occurs in the period in which the customer takes title and assumes the risks and rewards of ownership of the products specified in the customer's purchase order or sales agreement. Revenue is recorded net of estimated incentive offerings including special pricing agreements, promotions and other volume-based incentives. Revisions to these estimates are charged back to net sales in the period in which the facts that give rise to the revision become known. Taxes collected from customers and remitted to governmental authorities are excluded from revenues. | |
Shipping and Handling Costs | Shipping and Handling Costs |
Costs associated with the products shipped to customers are recognized in cost of sales. | |
Advertising Costs | Advertising Costs |
The Company expenses advertising costs as incurred. Advertising costs are included in selling, general and administrative expenses | |
Research and Development Costs | Research and Development Costs |
Research and development costs are expensed as incurred. | |
Cash and Cash Equivalents | Cash and Cash Equivalents |
The Company considers highly liquid investments with a maturity of three months or less when acquired to be cash equivalents. The majority of the Company's disbursement bank accounts are zero balance accounts where cash needs are funded as checks are presented for payment by the holder. Checks issued pending clearance that result in overdraft balances for accounting purposes are classified as accounts payable and the change in the related balance is reflected in operating activities on the Consolidated Statements of Cash Flows. | |
Investments in Securities | Investments in Securities |
The Company’s current investments are comprised of fixed income securities, primarily commercial paper. These investments are classified as available-for-sale. These securities are recorded at fair value, and unrealized holding gains and losses are recorded, net of tax, as a separate component of accumulated other comprehensive income. Investments in fixed income securities with remaining maturities of less than one year and those identified by management at the time of purchase for funding operations in less than one year are classified as current assets. Investments in fixed income securities with remaining maturities in excess of one year that management has not identified at the time of purchase for funding operations in less than one year are classified as long-term assets. Unrealized losses are charged against net earnings when a decline in fair value is determined to be other than temporary. Management reviews several factors to determine whether a loss is other than temporary, such as the length of time a security is in an unrealized loss position, the extent to which fair value is less than amortized cost, the impact of changing interest rates in the short and long term, and the Company’s intent and ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. The Company determines the cost of each security sold and each amount reclassified out of accumulated other comprehensive income into earnings using the specific identification method. Purchases and sales are recorded on a trade date basis. | |
Investments in entities in which the Company has an ownership interest greater than 50% and exercises control over the entity are consolidated in the Consolidated Financial Statements. Investments in entities in which the Company has an ownership interest between 20% and 50% and exercises significant influence are accounted for using the equity method. The Company invests from time to time in ventures in which its ownership interest is less than 20% and over which it does not exercise significant influence. Such investments are accounted for under the cost method. The fair values for investments not traded on a quoted exchange are estimated based upon the historical performance of the ventures, the ventures’ forecasted financial performance and management’s evaluation of the ventures’ viability and business models. To the extent the book value of an investment exceeds its assessed fair value, the Company will record an appropriate impairment charge. Thus, the carrying value of the Company’s investments approximates fair value. | |
Accounts Receivable | Accounts Receivable |
The Company records accounts receivable when revenue is recognized. We record an allowance for doubtful accounts, reducing our receivables balance to an amount we estimate is collectible from our customers. Estimates used in determining the allowance for doubtful accounts 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. | |
Inventories | Inventories |
Live chicken inventories are stated at the lower of cost or market and breeder hens at the lower of cost, less accumulated amortization, or market. The costs associated with breeder hens are accumulated up to the production stage and amortized over their productive lives using the unit-of-production method. Finished poultry products, feed, eggs and other inventories are stated at the lower of cost (average) or market. | |
We record valuation adjustments for our inventory and for estimated obsolescence at or equal to the difference between the cost of inventory and the estimated market value based upon known conditions affecting inventory, including significantly aged products, discontinued product lines, or damaged or obsolete products. We allocate meat costs between our various finished chicken products based on a by-product costing technique that reduces the cost of the whole bird by estimated yields and amounts to be recovered for certain by-product parts. This primarily includes leg quarters, wings, tenders and offal, which are carried in inventory at the estimated recovery amounts, with the remaining amount being reflected as our breast meat cost. | |
Generally, the Company performs an evaluation of whether any lower of cost or market adjustments are required at the country level based on a number of factors, including: (i) pools of related inventory, (ii) product continuation or discontinuation, (iii) estimated market selling prices and (iv) expected distribution channels. If actual market conditions or other factors are less favorable than those projected by management, additional inventory adjustments may be required. | |
Property, Plant and Equipment | Property, Plant and Equipment |
Property, plant and equipment are stated at cost, and repair and maintenance costs are expensed as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of these assets. Estimated useful lives for building, machinery and equipment are five to 33 years and for automobiles and trucks are three to ten years. The charge to income resulting from amortization of assets recorded under capital leases is included with depreciation expense. | |
The Company records impairment charges on long-lived assets held for use when events and circumstances indicate that the assets may be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets. When the above is true, the impairment charge is determined based upon the amount the net book value of the assets exceeds their fair market value. In making these determinations, the Company utilizes certain assumptions, including, but not limited to: (i) future cash flows estimated to be generated by these assets, which are based on additional assumptions such as asset utilization, remaining length of service and estimated salvage values, (ii) estimated fair market value of the assets and (iii) determinations with respect to the lowest level of cash flows relevant to the respective impairment test, generally groupings of related operational facilities. Given the interdependency of the Company’s individual facilities during the production process, which operate as a vertically integrated network, it evaluates impairment of assets held for use at the country level (i.e., the U.S. and Mexico). Management believes this is the lowest level of identifiable cash flows for its assets that are held for use in production activities. At the present time, the Company’s forecasts indicate that it can recover the carrying value of its assets held for use based on the projected undiscounted cash flows of the operations. | |
The Company records impairment charges on long-lived assets held for sale when the carrying amount of those assets exceeds their fair value less appropriate selling costs. Fair value is based on amounts documented in sales contracts or letters of intent accepted by the Company, amounts included in counteroffers initiated by the Company, or, in the absence of current contract negotiations, amounts determined using a sales comparison approach for real property and amounts determined using a cost approach for personal property. Under the sales comparison approach, sales and asking prices of reasonably comparable properties are considered to develop a range of unit prices within which the current real estate market is operating. Under the cost approach, a current cost to replace the asset new is calculated and then the estimated replacement cost is reduced to reflect the applicable decline in value resulting from physical deterioration, functional obsolescence and economic obsolescence. Appropriate selling costs includes reasonable broker's commissions, costs to produce title documents, filing fees, legal expenses and the like. We estimate appropriate closing costs as 4% to 6% of asset fair value. This range of rates is considered reasonable for our assets held for sale based on historical experience. | |
Identified Intangible Assets | Identified Intangible Assets |
Our identified intangible assets consist of assets subject to amortization such as trade names, customer relationships and non-compete agreements. We calculate amortization of those assets that are subject to amortization on a straight-line basis over the estimated useful lives of the related assets. The useful lives range from three to 15 years for trade names and non-compete agreements and 13 years for customer relationships. | |
We review intangible assets subject to amortization for impairment whenever an event or change in circumstances indicates the carrying values of the assets may not be recoverable. We test intangible assets subject to amortization for impairment and estimate their fair values using the same assumptions and techniques we employ on property, plant and equipment. | |
Book Overdraft Balances | Book Overdraft Balances |
The majority of the Company's disbursement bank accounts are zero balance accounts where cash needs are funded as checks are presented for payment by the holder. Checks issued pending clearance that result in overdraft balances for accounting purposes are classified as accounts payable and the change in the related balance is reflected in operating activities on the Consolidated Statements of Cash Flows. | |
Litigation and Contingent Liabilities | Litigation and Contingent Liabilities |
The Company is subject to lawsuits, investigations and other claims related to employment, environmental, product and other matters. The Company is required to assess the likelihood of any adverse judgments or outcomes, as well as potential ranges of probable losses, to these matters. The Company estimates the amount of reserves required for these contingencies when losses are determined to be probable and after considerable analysis of each individual issue. The Company expenses legal costs related to such loss contingencies as they are incurred. The accrual for environmental remediation liabilities is measured on an undiscounted basis. These reserves may change in the future due to changes in the Company’s assumptions, the effectiveness of strategies, or other factors beyond the Company’s control. | |
Accrued Self Insurance | Accrued Self Insurance |
Insurance expense for casualty claims and employee-related health care benefits are estimated using historical and current experience and actuarial estimates. Stop-loss coverage is maintained with third-party insurers to limit the Company’s total exposure. Certain categories of claim liabilities are actuarially determined. The assumptions used to arrive at periodic expenses are reviewed regularly by management. However, actual expenses could differ from these estimates and could result in adjustments to be recognized. | |
Income Taxes | Income Taxes |
The Company follows provisions under ASC 740-10-30-27 in the Expenses-Income Taxes topic with regard to members of a group that file a consolidated tax return but issue separate financial statements. The Company files its own U.S. federal tax return, but it is included in certain state consolidated returns with JBS USA. The income tax expense of the Company is computed using the separate return method. The provision for income taxes has been determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred income taxes reflect the net tax effect of temporary differences between the book and tax bases of recorded assets and liabilities, net operating losses and tax credit carry forwards. The amount of deferred tax on these temporary differences is determined using the tax rates expected to apply to the period when the asset is realized or the liability is settled, as applicable, based on the tax rates and laws in the respective tax jurisdiction enacted as of the balance sheet date. | |
The Company reviews its deferred tax assets for recoverability and establishes a valuation allowance based on historical taxable income, potential for carry back of tax losses, projected future taxable income, applicable tax strategies, and the expected timing of the reversals of existing temporary differences. A valuation allowance is provided when it is more likely than not that some or all of the deferred tax assets will not be realized. Valuation allowances have been established primarily for net operating loss carry forwards of certain foreign subsidiaries. See “Note 11. Income Taxes” to the Consolidated Financial Statements. | |
The Company deems its earnings from Mexico as of December 28, 2014 to be permanently reinvested. As such, U.S. deferred income taxes have not been provided on these earnings. If such earnings were not considered indefinitely reinvested, certain deferred foreign and U.S. income taxes would be provided. For activity after 2008, the Company did not permanently reinvest its earnings in Puerto Rico. Therefore, net earnings generated in Puerto Rico have U.S. taxes provided as if the earnings were distributed. | |
The Company follows provisions under ASC 740-10-25 that provide a recognition threshold and measurement criteria for the financial statement recognition of a tax benefit taken or expected to be taken in a tax return. Tax benefits are recognized only when it is more likely than not, based on the technical merits, that the benefits will be sustained on examination. Tax benefits that meet the more-likely-than-not recognition threshold are measured using a probability weighting of the largest amount of tax benefit that has greater than 50% likelihood of being realized upon settlement. Whether the more-likely-than-not recognition threshold is met for a particular tax benefit is a matter of judgment based on the individual facts and circumstances evaluated in light of all available evidence as of the balance sheet date. See “Note 11. Income Taxes” to the Consolidated Financial Statements. | |
Pension and Other Postemployment Benefits | Pension and Other Postemployment Benefits |
Our pension and other postemployment benefit costs and obligations are dependent on the various actuarial assumptions used in calculating such amounts. These assumptions relate to discount rates, long-term return on plan assets and other factors. We base the discount rate assumptions on current investment yields on high-quality corporate long-term bonds. We determine the long-term return on plan assets based on historical portfolio results and management’s expectation of the future economic environment. Actual results that differ from our assumptions are accumulated and, if in excess of the lesser of 10% of the projected benefit obligation or the fair market value of plan assets, amortized over either (i) the estimated average future service period of active plan participants if the plan is active or (ii) the estimated average future life expectancy of all plan participants if the plan is frozen. | |
Operating Leases | Operating Leases |
Rent expense for operating leases is recorded on a straight-line basis over the lease term unless the lease contains an escalation clause which is not fixed or determinable. The lease term begins when we have the right to control the use of the leased property, which is typically before rent payments are due under the terms of the lease. If a lease has a fixed or determinable escalation clause, the difference between rent expense and rent paid is recorded as deferred rent and is included in the Consolidated Balance Sheets. Rent for operating leases that do not have an escalation clause or where escalation is based on an inflation index is expensed over the lease term as it is payable. | |
Risk Management | Risk Management |
The Company attempts to mitigate commodity purchase exposures through a program of risk management that includes the use of forward purchase contractual obligations and derivative financial instruments. The Company will also occasionally purchase derivative financial instruments in an attempt to mitigate currency exchange rate exposure related to the net assets of its Mexico operations that are denominated in Mexican pesos. The Company's Mexico subsidiaries also attempt to mitigate the foreign currency exposure on certain U.S. dollar-denominated transactions through the use of derivative financial instruments. We recognize all derivative financial instruments in the Consolidated Balance Sheets at fair value. We elected not to designate derivative financial instruments executed to mitigate commodity purchase exposures and foreign currency exposures as hedges of forecasted transactions. Therefore, we recognize changes in the fair value of these derivative financial instruments immediately in earnings. Gains or losses related to both the commodity derivative financial instruments and the foreign currency derivative financial instruments are included in the line item Cost of sales in the Consolidated Statements of Operations. | |
Use of Estimates | Use of Estimates |
The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. We make significant estimates in regard to receivables collectability; inventory valuation; realization of deferred tax assets; valuation of long-lived assets; valuation of contingent liabilities, liabilities subject to compromise and self insurance liabilities; valuation of pension and other postretirement benefits obligations; and valuation of acquired businesses. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance on revenue recognition, which provides for a single five-step model to be applied to all revenue contracts with customers. The new standard also requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. There is no option for early adoption. The provisions of the new guidance will be effective as of the beginning of our 2017 fiscal year. We are currently evaluating the impact of the new guidance on our financial statements and have not yet selected a transition approach to implement the standard. |
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||||
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: | ||||||||||||||||||
December 28, 2014 | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
(In thousands) | |||||||||||||||||||
Derivative assets - commodity futures instruments | $ | 8,416 | $ | — | $ | — | $ | 8,416 | |||||||||||
Derivative assets - foreign currency futures instruments | 2,563 | — | — | 2,563 | |||||||||||||||
Deferred compensation plan assets | 6,753 | — | — | 6,753 | |||||||||||||||
Derivative liabilities - commodity futures instruments | (8,580 | ) | — | — | (8,580 | ) | |||||||||||||
Derivative liabilities - commodity options instruments | (14,103 | ) | — | — | (14,103 | ) | |||||||||||||
Long-term debt and other borrowing arrangements: | |||||||||||||||||||
Public bonds and notes | (3,979 | ) | — | — | (3,979 | ) | |||||||||||||
Capitalized lease obligations | — | — | (587 | ) | (587 | ) | |||||||||||||
December 29, 2013 | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
(In thousands) | |||||||||||||||||||
Short-term investments in available-for-sale securities | $ | — | $ | 96,902 | $ | — | $ | 96,902 | |||||||||||
Derivative assets - commodity futures instruments | 1,494 | — | — | 1,494 | |||||||||||||||
Derivative assets - commodity options instruments | — | 1,395 | — | 1,395 | |||||||||||||||
Derivative assets - foreign currency futures instruments | 1,214 | — | — | 1,214 | |||||||||||||||
Deferred compensation plan assets | 7,208 | — | — | 7,208 | |||||||||||||||
Derivative liabilities - commodity futures instruments | (1,728 | ) | — | — | (1,728 | ) | |||||||||||||
Long-term debt and other borrowing arrangements: | |||||||||||||||||||
Public bonds and notes | (552,592 | ) | — | — | (552,592 | ) | |||||||||||||
Term notes and revolver | — | — | (424,650 | ) | (424,650 | ) | |||||||||||||
Capitalized lease obligations | — | — | (704 | ) | (704 | ) | |||||||||||||
Term Notes and Revolver | Capitalized Lease Obligations | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Change in Value of Level 3 Liabilities: | (In thousands) | ||||||||||||||||||
Balance, beginning of period | $ | (424,650 | ) | $ | (686,435 | ) | $ | (704 | ) | $ | (880 | ) | |||||||
Borrowings | — | (509,500 | ) | — | — | ||||||||||||||
Payments | 410,099 | 762,091 | 135 | 124 | |||||||||||||||
Change in fair value inputs | 14,551 | 9,194 | (18 | ) | 52 | ||||||||||||||
Balance, end of period | $ | — | $ | (424,650 | ) | $ | (587 | ) | $ | (704 | ) | ||||||||
Schedule of Carrying Amounts and Estimated Fair Values of Financial Assets and Liabilities | The carrying amounts and estimated fair values of financial assets and liabilities recorded in the Consolidated Balance Sheets consisted of the following: | ||||||||||||||||||
28-Dec-14 | December 29, 2013 | ||||||||||||||||||
Carrying | Fair | Carrying | Fair | Note Reference | |||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||||
(In thousands) | |||||||||||||||||||
Short-term investments in available-for-sale securities | $ | — | $ | — | $ | 96,902 | $ | 96,902 | 5 | ||||||||||
Derivative assets - commodity futures instruments | 8,416 | 8,416 | 1,494 | 1,494 | 6 | ||||||||||||||
Derivative assets - commodity options instruments | — | — | 1,395 | 1,395 | 6 | ||||||||||||||
Derivative assets - foreign currency futures instruments | 2,563 | 2,563 | 1,214 | 1,214 | 6 | ||||||||||||||
Deferred compensation plan assets | 6,753 | 6,753 | 7,208 | 7,208 | |||||||||||||||
Derivative liabilities - commodity futures instruments | (8,580 | ) | (8,580 | ) | (1,728 | ) | (1,728 | ) | 6 | ||||||||||
Derivative liabilities - commodity options instruments | (14,103 | ) | (14,103 | ) | — | — | 6 | ||||||||||||
Long-term debt and other borrowing arrangements | (4,242 | ) | (4,566 | ) | (912,233 | ) | (977,946 | ) | 10 |
TRADE_ACCOUNTS_AND_OTHER_RECEI1
TRADE ACCOUNTS AND OTHER RECEIVABLES (Tables) | 12 Months Ended | |||||||
Dec. 28, 2014 | ||||||||
Accounts Receivable, Net [Abstract] | ||||||||
Schedule of Trade Accounts and Other Receivables | Trade accounts and other receivables (including accounts receivable from related parties), less allowance for doubtful accounts, consisted of the following: | |||||||
December 28, 2014 | December 29, 2013 | |||||||
(In thousands) | ||||||||
Trade accounts receivable | $ | 371,268 | $ | 369,715 | ||||
Accounts receivable from related parties(a) | 5,250 | 2,388 | ||||||
Receivables from officers and employees | — | 14 | ||||||
Notes receivable - current | 1,088 | — | ||||||
Other receivables | 9,059 | 11,005 | ||||||
Receivables, gross | 386,665 | 383,122 | ||||||
Allowance for doubtful accounts | (2,525 | ) | (4,056 | ) | ||||
Receivables, net | $ | 384,140 | $ | 379,066 | ||||
(a) | Additional information regarding accounts receivable from related parties is included in “Note 15. Related Party Transactions. |
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | |||||||
Dec. 28, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule of Inventories | Inventories consisted of the following: | |||||||
December 28, 2014 | December 29, 2013 | |||||||
(In thousands) | ||||||||
Live chicken and hens | $ | 363,438 | $ | 368,582 | ||||
Feed, eggs and other | 198,681 | 216,045 | ||||||
Finished chicken products | 227,649 | 223,932 | ||||||
Total chicken inventories | 789,768 | 808,559 | ||||||
Commercial feed, table eggs and other | 537 | 273 | ||||||
Total inventories | $ | 790,305 | $ | 808,832 | ||||
INVESTMENTS_IN_SECURITIES_Tabl
INVESTMENTS IN SECURITIES (Tables) | 12 Months Ended | |||||||||||||||
Dec. 28, 2014 | ||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||
Schedule of Available-For-Sale Securities | The following table summarizes our investments in available-for-sale securities: | |||||||||||||||
December 28, 2014 | December 29, 2013 | |||||||||||||||
Fair | Fair | |||||||||||||||
Cost | Value | Cost | Value | |||||||||||||
(In thousands) | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Fixed income securities | $ | 204,286 | $ | 204,286 | $ | 103,121 | $ | 103,121 | ||||||||
Other | 80 | 80 | 56 | 56 | ||||||||||||
Current investments: | ||||||||||||||||
Fixed income securities | — | — | 96,902 | 96,902 | ||||||||||||
DERIVATIVE_FINANCIAL_INSTRUMEN1
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | |||||||
Dec. 28, 2014 | ||||||||
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 (owed to) brokers is included in the following table: | |||||||
December 28, 2014 | December 29, 2013 | |||||||
(Fair values in thousands) | ||||||||
Fair values: | ||||||||
Commodity derivative assets | $ | 8,416 | $ | 2,889 | ||||
Commodity derivative liabilities | (22,683 | ) | (1,728 | ) | ||||
Foreign currency derivative assets | 2,563 | 1,214 | ||||||
Cash collateral posted with brokers | 25,205 | 4,142 | ||||||
Derivatives Coverage(a): | ||||||||
Corn | (8.2 | )% | 1.1 | % | ||||
Soybean meal | (16.1 | )% | (3.6 | )% | ||||
Period through which stated percent of needs are covered: | ||||||||
Corn | Sep-16 | Sep-15 | ||||||
Soybean meal | Jul-15 | Jul-14 | ||||||
(a) | Derivatives coverage is the percent of anticipated corn and soybean meal needs covered by outstanding derivative instruments through a specified date. |
IDENTIFIED_INTANGIBLE_ASSETS_T
IDENTIFIED INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||||||||
Dec. 28, 2014 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||
Schedule of Intangible Assets | Identified intangible assets consisted of the following: | |||||||||||||
Useful Life | Original Cost | Accumulated | Carrying | |||||||||||
(Years) | Amortization | Amount | ||||||||||||
(In thousands) | ||||||||||||||
December 29, 2013: | ||||||||||||||
Trade names | 3–15 | $ | 40,143 | $ | (31,081 | ) | $ | 9,062 | ||||||
Customer relationships | 13 | 51,000 | (27,537 | ) | 23,463 | |||||||||
Non-compete agreements | 3 | 300 | (300 | ) | — | |||||||||
Total intangible assets | $ | 91,443 | $ | (58,918 | ) | $ | 32,525 | |||||||
December 28, 2014: | ||||||||||||||
Trade names | 3–15 | $ | 40,143 | $ | (32,900 | ) | $ | 7,243 | ||||||
Customer relationships | 13 | 51,000 | (31,460 | ) | 19,540 | |||||||||
Non-compete agreements | 3 | 300 | (300 | ) | — | |||||||||
Total intangible assets | $ | 91,443 | $ | (64,660 | ) | $ | 26,783 | |||||||
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended | |||||||
Dec. 28, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Schedule of Property, Plant and Equipment | Property, plant and equipment (“PP&E”), net consisted of the following: | |||||||
December 28, 2014 | December 29, 2013 | |||||||
(In thousands) | ||||||||
Land | $ | 66,798 | $ | 66,071 | ||||
Buildings | 1,086,690 | 1,077,859 | ||||||
Machinery and equipment | 1,537,241 | 1,502,968 | ||||||
Autos and trucks | 52,639 | 55,779 | ||||||
Construction-in-progress | 129,701 | 66,926 | ||||||
Property, plant and equipment, gross | 2,873,069 | 2,769,603 | ||||||
Accumulated depreciation | (1,690,274 | ) | (1,617,792 | ) | ||||
Property, plant and equipment, net | $ | 1,182,795 | $ | 1,151,811 | ||||
CURRENT_LIABILITIES_Tables
CURRENT LIABILITIES (Tables) | 12 Months Ended | |||||||
Dec. 28, 2014 | ||||||||
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: | |||||||
December 28, 2014 | December 29, 2013 | |||||||
(In thousands) | ||||||||
Accounts payable: | ||||||||
Trade accounts | $ | 347,107 | $ | 313,266 | ||||
Book overdrafts | 47,320 | 55,378 | ||||||
Other payables | 5,059 | 1,716 | ||||||
Total accounts payable | 399,486 | 370,360 | ||||||
Accounts payable to related parties(a) | 4,862 | 3,934 | ||||||
Accrued expenses and other current liabilities: | ||||||||
Compensation and benefits | 123,495 | 100,965 | ||||||
Interest and debt-related fees | 780 | 7,558 | ||||||
Insurance and self-insured claims | 85,240 | 99,244 | ||||||
Derivative liabilities: | ||||||||
Futures | 8,580 | 1,729 | ||||||
Options | 14,103 | — | ||||||
Other accrued expenses | 79,681 | 73,859 | ||||||
Total accrued expenses and other current liabilities | 311,879 | 283,355 | ||||||
$ | 716,227 | $ | 657,649 | |||||
(a) | Additional information regarding accounts payable to related parties is included in “Note 15. Related Party Transactions. |
LONGTERM_DEBT_AND_OTHER_BORROW1
LONG-TERM DEBT AND OTHER BORROWING ARRANGEMENTS (Tables) | 12 Months Ended | |||||||||
Dec. 28, 2014 | ||||||||||
Debt Disclosure [Abstract] | ||||||||||
Schedule of Long-term Debt | Long-term debt consisted of the following components: | |||||||||
Maturity | December 28, 2014 | December 29, 2013 | ||||||||
(In thousands) | ||||||||||
Senior notes, at 7 7/8%, net of unaccreted discount | 2018 | $ | — | $ | 497,757 | |||||
2013 U.S. Credit Facility (defined below) Term B-1 note payable at | 2014 | — | 204,880 | |||||||
2.4375% | ||||||||||
2013 U.S. Credit Facility (defined below) Term B-2 note payable at | 2014 | — | 205,219 | |||||||
9.00% | ||||||||||
2013 U.S. Credit Facility (defined below) revolving note payable | 2018 | — | — | |||||||
Mexico Credit Facility (defined below) with notes payable at TIIE Rate | 2014 | — | — | |||||||
plus 1.05% | ||||||||||
Subordinated Loan Agreement (defined below) | 2015 | — | — | |||||||
Other | Various | 4,242 | 4,377 | |||||||
Long-term debt | 4,242 | 912,233 | ||||||||
Less: Current maturities of long-term debt | (262 | ) | (410,234 | ) | ||||||
Long-term debt, less current maturities | $ | 3,980 | $ | 501,999 | ||||||
Schedule of Annual Maturities of Long-term Debt | Annual maturities of long-term debt for the five years subsequent to December 28, 2014 are as follows (in thousands): | |||||||||
2015 | $ | 262 | ||||||||
2016 | 87 | |||||||||
2017 | 3,611 | |||||||||
2018 | 102 | |||||||||
2019 | 92 | |||||||||
Thereafter | 88 | |||||||||
Total maturities | $ | 4,242 | ||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of Income (Loss) from Continuing Operations Before Income Taxes | before income taxes by jurisdiction is as follows: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
U.S. | $ | 953,027 | $ | 469,395 | $ | 62,332 | ||||||
Foreign | 149,364 | 104,545 | 90,730 | |||||||||
Total | $ | 1,102,391 | $ | 573,940 | $ | 153,062 | ||||||
Schedule of Income Tax Expense (Benefit) | The components of income tax expense (benefit) are set forth below: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Current: | ||||||||||||
Federal | $ | 262,403 | $ | (427 | ) | $ | (28,883 | ) | ||||
Foreign | 22,867 | 26,206 | 9,279 | |||||||||
State and other | 24,056 | 3,512 | (211 | ) | ||||||||
Total current | 309,326 | 29,291 | (19,815 | ) | ||||||||
Deferred: | ||||||||||||
Federal | 29,737 | 22,923 | (293 | ) | ||||||||
Foreign | 31,332 | (3,648 | ) | (835 | ) | |||||||
State and other | 20,558 | (24,339 | ) | (37 | ) | |||||||
Total deferred | 81,627 | (5,064 | ) | (1,165 | ) | |||||||
$ | 390,953 | $ | 24,227 | $ | (20,980 | ) | ||||||
Schedule of Income Tax Reconciliation | The following table reconciles the statutory U.S. federal income tax rate to the Company’s effective income tax rate: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal income tax rate | 35 | % | 35 | % | 35 | % | ||||||
State tax rate, net | 2.6 | 2.3 | 2.5 | |||||||||
Permanent items | 0.4 | 1.4 | 1.5 | |||||||||
Domestic production activity | (2.4 | ) | (1.2 | ) | — | |||||||
Difference in U.S. statutory tax rate and foreign | (1.0 | ) | (1.0 | ) | (3.3 | ) | ||||||
country effective tax rate | ||||||||||||
Tax credits | — | (3.0 | ) | (2.3 | ) | |||||||
Change in reserve for unrecognized tax | — | — | (10.4 | ) | ||||||||
benefits | ||||||||||||
Change in valuation allowance | — | (31.0 | ) | (34.4 | ) | |||||||
Other | 0.9 | 1.7 | (2.3 | ) | ||||||||
Total | 35.5 | % | 4.2 | % | (13.7 | ) | % | |||||
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax liabilities and assets are as follows: | |||||||||||
28-Dec-14 | 29-Dec-13 | |||||||||||
(In thousands) | ||||||||||||
Deferred tax liabilities: | ||||||||||||
PP&E and identified intangible assets | $ | 126,536 | $ | 125,197 | ||||||||
Inventories | 48,365 | 74,287 | ||||||||||
Insurance claims and losses | 36,953 | 33,625 | ||||||||||
All other current | 18,696 | 9,453 | ||||||||||
All other noncurrent | 8,105 | 9,031 | ||||||||||
Total deferred tax liabilities | 238,655 | 251,593 | ||||||||||
Deferred tax assets: | ||||||||||||
Net operating losses | 5,842 | 20,907 | ||||||||||
Foreign net operating losses | 7,873 | 15,437 | ||||||||||
Credit carry forwards | 2,916 | 79,555 | ||||||||||
Allowance for doubtful accounts | 4,261 | 4,510 | ||||||||||
Accrued liabilities | 52,772 | 47,384 | ||||||||||
All other current | 9,755 | 12,282 | ||||||||||
All other noncurrent | 20,857 | 10,292 | ||||||||||
Workers compensation | 43,309 | 42,951 | ||||||||||
Pension and other postretirement benefits | 26,049 | 20,364 | ||||||||||
Total deferred tax assets | 173,634 | 253,682 | ||||||||||
Valuation allowance | (9,150 | ) | (10,400 | ) | ||||||||
Net deferred tax assets | 164,484 | 243,282 | ||||||||||
Net deferred tax liabilities | $ | 74,171 | $ | 8,311 | ||||||||
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: | |||||||||||
28-Dec-14 | 29-Dec-13 | |||||||||||
(In thousands) | ||||||||||||
Unrecognized tax benefits, beginning of year | $ | 17,117 | $ | 16,643 | ||||||||
Increase as a result of tax positions taken during the current year | 999 | 978 | ||||||||||
Increase as a result of tax positions taken during prior years | — | 232 | ||||||||||
Decrease as a result of tax positions taken during prior years | (101 | ) | — | |||||||||
Decrease for lapse in statute of limitations | (619 | ) | (736 | ) | ||||||||
Unrecognized tax benefits, end of year | $ | 17,396 | $ | 17,117 | ||||||||
PENSION_AND_OTHER_POSTRETIREME1
PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 28, 2014 | ||||||||||||||||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [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 Consolidated Balance Sheets for these plans were as follows: | |||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Change in projected benefit obligation: | (In thousands) | |||||||||||||||||||||||||||||||
Projected benefit obligation, beginning of year | $ | 170,030 | $ | 194,434 | $ | 1,705 | $ | 1,933 | ||||||||||||||||||||||||
Interest cost | 8,103 | 7,954 | 81 | 78 | ||||||||||||||||||||||||||||
Actuarial losses (gains) | 24,670 | (24,315 | ) | (10 | ) | (92 | ) | |||||||||||||||||||||||||
Benefits paid | (12,154 | ) | (8,043 | ) | — | — | ||||||||||||||||||||||||||
Curtailments and settlements | (248 | ) | — | (119 | ) | (214 | ) | |||||||||||||||||||||||||
Projected benefit obligation, end of year | $ | 190,401 | $ | 170,030 | $ | 1,657 | $ | 1,705 | ||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Change in plan assets: | (In thousands) | |||||||||||||||||||||||||||||||
Fair value of plan assets, beginning of year | $ | 108,496 | $ | 92,283 | $ | — | $ | — | ||||||||||||||||||||||||
Actual return on plan assets | 3,944 | 16,489 | — | — | ||||||||||||||||||||||||||||
Contributions by employer | 13,514 | 7,767 | 119 | 214 | ||||||||||||||||||||||||||||
Benefits paid | (12,154 | ) | (8,043 | ) | — | — | ||||||||||||||||||||||||||
Curtailments and settlements | (248 | ) | — | (119 | ) | (214 | ) | |||||||||||||||||||||||||
Fair value of plan assets, end of year | $ | 113,552 | $ | 108,496 | $ | — | $ | — | ||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Funded status: | (In thousands) | |||||||||||||||||||||||||||||||
Unfunded benefit obligation, end of year | $ | (76,849 | ) | $ | (61,534 | ) | $ | (1,657 | ) | $ | (1,705 | ) | ||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Amounts recognized in the Consolidated Balance Sheets at end of year: | (In thousands) | |||||||||||||||||||||||||||||||
Current liability | $ | (9,373 | ) | $ | (9,146 | ) | $ | (129 | ) | $ | (148 | ) | ||||||||||||||||||||
Long-term liability | (67,476 | ) | (52,388 | ) | (1,528 | ) | (1,557 | ) | ||||||||||||||||||||||||
Recognized liability | $ | (76,849 | ) | $ | (61,534 | ) | $ | (1,657 | ) | $ | (1,705 | ) | ||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Amounts recognized in accumulated other | (In thousands) | |||||||||||||||||||||||||||||||
comprehensive loss at end of year: | ||||||||||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 43,907 | $ | 16,957 | $ | (127 | ) | $ | (126 | ) | ||||||||||||||||||||||
Schedule of Net Periodic Benefit Cost (Income) | Net pension and other postretirement costs included the following components: | |||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | 51 | $ | — | $ | — | $ | — | ||||||||||||||||||||
Interest cost | 8,103 | 7,954 | 8,272 | 81 | 78 | 96 | ||||||||||||||||||||||||||
Estimated return on plan assets | (6,373 | ) | (5,393 | ) | (5,867 | ) | — | — | — | |||||||||||||||||||||||
Settlement loss (gain) | 93 | — | — | (9 | ) | (15 | ) | (7 | ) | |||||||||||||||||||||||
Amortization of net loss (gain) | 56 | 1,001 | 465 | — | — | (2 | ) | |||||||||||||||||||||||||
Net cost | $ | 1,879 | $ | 3,562 | $ | 2,921 | $ | 72 | $ | 63 | $ | 87 | ||||||||||||||||||||
Schedule of Economic Assumptions | The weighted average assumptions used in determining pension and other postretirement plan information were as follows: | |||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Benefit obligation: | ||||||||||||||||||||||||||||||||
Discount rate | 4.22 | % | 4.95 | % | 4.22 | % | 4.22 | % | 4.95 | % | 4.22 | % | ||||||||||||||||||||
Net pension and other postretirement cost: | ||||||||||||||||||||||||||||||||
Discount rate | 4.95 | % | 4.22 | % | 5.09 | % | 4.95 | % | 4.22 | % | 5.09 | % | ||||||||||||||||||||
Rate of compensation increase | NA | NA | 3 | % | NA | NA | NA | |||||||||||||||||||||||||
Expected return on plan assets | 6 | % | 6 | % | 7.5 | % | NA | NA | NA | |||||||||||||||||||||||
Schedule of Plan Asset Allocations | The following table reflects the pension plans’ actual asset allocations: | |||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Cash and cash equivalents | — | % | — | % | ||||||||||||||||||||||||||||
Pooled separate accounts(a): | ||||||||||||||||||||||||||||||||
Equity securities | 6 | % | 8 | % | ||||||||||||||||||||||||||||
Fixed income securities | 6 | % | 3 | % | ||||||||||||||||||||||||||||
Common collective trust funds(a): | ||||||||||||||||||||||||||||||||
Equity securities | 60 | % | 60 | % | ||||||||||||||||||||||||||||
Fixed income securities | 28 | % | 29 | % | ||||||||||||||||||||||||||||
Total assets | 100 | % | 100 | % | ||||||||||||||||||||||||||||
(a) | Pooled separate accounts (“PSAs”) and common collective trust funds (“CCTs”) are two of the most common types of alternative vehicles in which benefit plans invest. These investments are pooled funds that look like mutual funds, but they are not registered with the Securities and Exchange Commission. Often times, they will be invested in mutual funds or other marketable securities, but the unit price generally will be different from the value of the underlying securities because the fund may also hold cash for liquidity purposes, and the fees imposed by the fund are deducted from the fund value rather than charged separately to investors. Some PSAs and CCTs have no restrictions as to their investment strategy and can invest in riskier investments, such as derivatives, hedge funds, private equity funds, or similar investments. | |||||||||||||||||||||||||||||||
Schedule of Fair Value Assumptions of Plan Assets | The fair value measurements of plan assets fell into the following levels of the fair value hierarchy as of December 28, 2014 and December 29, 2013: | |||||||||||||||||||||||||||||||
2014 | 2013(a) | |||||||||||||||||||||||||||||||
Level 1(a) | Level 2(b) | Level 3(c) | Total | Level 1(a) | Level 2(b) | Level 3(c) | Total | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 33 | $ | — | $ | — | $ | 33 | $ | 275 | $ | — | $ | — | $ | 275 | ||||||||||||||||
Pooled separate accounts: | ||||||||||||||||||||||||||||||||
Large U.S. equity funds(d) | — | 4,147 | — | 4,147 | — | 4,828 | — | 4,828 | ||||||||||||||||||||||||
Small/Mid U.S. equity funds(e) | — | 1,062 | — | 1,062 | — | 1,192 | — | 1,192 | ||||||||||||||||||||||||
International equity funds(f) | — | 1,719 | — | 1,719 | — | 2,019 | — | 2,019 | ||||||||||||||||||||||||
Fixed income funds(g) | — | 6,609 | — | 6,609 | — | 3,442 | — | 3,442 | ||||||||||||||||||||||||
Common collective trusts funds: | ||||||||||||||||||||||||||||||||
Large U.S. equity funds(d) | — | 29,964 | — | 29,964 | — | 28,784 | — | 28,784 | ||||||||||||||||||||||||
Small U.S. equity funds(e) | — | 18,411 | — | 18,411 | — | 16,937 | — | 16,937 | ||||||||||||||||||||||||
International equity funds(f) | — | 19,730 | — | 19,730 | — | 19,420 | — | 19,420 | ||||||||||||||||||||||||
Fixed income funds(g) | — | 31,877 | — | 31,877 | — | 31,599 | — | 31,599 | ||||||||||||||||||||||||
Total assets | $ | 33 | $ | 113,519 | $ | — | $ | 113,552 | $ | 275 | $ | 108,221 | $ | — | $ | 108,496 | ||||||||||||||||
(a) | Unadjusted quoted prices in active markets for identical assets are used to determine fair value. | |||||||||||||||||||||||||||||||
(b) | Quoted prices in active markets for similar assets and inputs that are observable for the asset are used to determine fair value. | |||||||||||||||||||||||||||||||
(c) | Unobservable inputs, such as discounted cash flow models or valuations, are used to determine fair value. | |||||||||||||||||||||||||||||||
(d) | This category is comprised of investment options that invest in stocks, or shares of ownership, in large, well-established U.S. companies. These investment options typically carry more risk than fixed income options but have the potential for higher returns over longer time periods. | |||||||||||||||||||||||||||||||
(e) | This category is generally comprised of investment options that invest in stocks, or shares of ownership, in small to medium-sized U.S. companies. These investment options typically carry more risk than larger U.S. equity investment options but have the potential for higher returns. | |||||||||||||||||||||||||||||||
(f) | This category is comprised of investment options that invest in stocks, or shares of ownership, in companies with their principal place of business or office outside of the U.S. | |||||||||||||||||||||||||||||||
(g) | This category is comprised of investment options that invest in bonds, or debt of a company or government entity (including U.S. and non-U.S. entities). It may also include real estate investment options that directly own property. These investment options typically carry more risk than short-term fixed income investment options (including, for real estate investment options, liquidity risk), but less overall risk than equities. | |||||||||||||||||||||||||||||||
Schedule of Benefit Payments | The following table reflects the benefits as of December 28, 2014 expected to be paid in each of the next five years and in the aggregate for the five years thereafter from our pension and other postretirement plans. Because our pension plans are primarily funded plans, the anticipated benefits with respect to these plans will come primarily from the trusts established for these plans. Because our other postretirement plans are unfunded, the anticipated benefits with respect to these plans will come from our own assets. | |||||||||||||||||||||||||||||||
Pension Benefits | Other | |||||||||||||||||||||||||||||||
Benefits | ||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
2015 | $ | 13,458 | $ | 129 | ||||||||||||||||||||||||||||
2016 | 12,937 | 130 | ||||||||||||||||||||||||||||||
2017 | 12,502 | 130 | ||||||||||||||||||||||||||||||
2018 | 11,769 | 130 | ||||||||||||||||||||||||||||||
2019 | 11,278 | 130 | ||||||||||||||||||||||||||||||
2020-2024 | 52,157 | 627 | ||||||||||||||||||||||||||||||
Total | $ | 114,101 | $ | 1,276 | ||||||||||||||||||||||||||||
Schedule of Unrecognized Benefit Amounts | The amounts in accumulated other comprehensive income (loss) that were not recognized as components of net periodic benefits cost and the changes in those amounts are as follows: | |||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Net actuarial loss (gain), beginning of year | $ | 16,957 | $ | 53,368 | $ | 31,108 | $ | (126 | ) | $ | (49 | ) | $ | (217 | ) | |||||||||||||||||
Amortization | (56 | ) | (1,001 | ) | (465 | ) | — | — | 2 | |||||||||||||||||||||||
Curtailment and settlement adjustments | (93 | ) | — | — | 9 | 15 | 7 | |||||||||||||||||||||||||
Actuarial loss (gain) | 24,670 | (24,315 | ) | 24,872 | (10 | ) | (92 | ) | 159 | |||||||||||||||||||||||
Asset loss (gain) | 2,429 | (11,095 | ) | (2,147 | ) | — | — | — | ||||||||||||||||||||||||
Net actuarial loss (gain), end of year | $ | 43,907 | $ | 16,957 | $ | 53,368 | $ | (127 | ) | $ | (126 | ) | $ | (49 | ) | |||||||||||||||||
STOCKHOLDERS_EQUITY_Tables
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 28, 2014 | ||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||
Schedule of Changes in Accumulated Other Comprehensive Loss | The following tables provide information regarding the changes in accumulated other comprehensive loss during 2014 and 2013: | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Losses Related to Pension and Other Postretirement Benefits | Unrealized Holding Gains on Available-for-Sale Securities | Total | Losses Related to Pension and Other Postretirement Benefits | Unrealized Holding Gains on Available-for-Sale Securities | Total | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Balance, beginning of year | $ | (45,797 | ) | $ | 62 | $ | (45,735 | ) | $ | (68,511 | ) | $ | — | $ | (68,511 | ) | ||||||||
Other comprehensive income (loss) | (16,810 | ) | 319 | (16,491 | ) | 21,713 | 62 | 21,775 | ||||||||||||||||
before reclassifications | ||||||||||||||||||||||||
Amounts reclassified from | 35 | (350 | ) | (315 | ) | 1,001 | — | 1,001 | ||||||||||||||||
accumulated other comprehensive | ||||||||||||||||||||||||
loss to net income | ||||||||||||||||||||||||
Net current year other | (16,775 | ) | (31 | ) | (16,806 | ) | 22,714 | 62 | 22,776 | |||||||||||||||
comprehensive income (loss) | ||||||||||||||||||||||||
Balance, end of year | $ | (62,572 | ) | $ | 31 | $ | (62,541 | ) | $ | (45,797 | ) | $ | 62 | $ | (45,735 | ) | ||||||||
(a) | All amounts are net of tax. Amounts in parentheses indicate debits. | |||||||||||||||||||||||
Schedule of Reclassification from Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||
Details about Accumulated Other Comprehensive Loss Components | Amount Reclassified from Accumulated Other Comprehensive Loss(a) | Affected Line Item in the Consolidated Statements of Operations | ||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Realized gain on sale of securities | $ | 562 | $ | — | Selling, general and administrative expense | |||||||||||||||||||
Amortization of pension and other | ||||||||||||||||||||||||
postretirement plan actuarial losses: | ||||||||||||||||||||||||
Union employees pension plan(b) | — | (36 | ) | (d) | Cost of goods sold | |||||||||||||||||||
Legacy Gold Kist plans(c) | (56 | ) | (965 | ) | (d) | Selling, general and administrative expense | ||||||||||||||||||
Total before tax | 506 | (1,001 | ) | |||||||||||||||||||||
Tax benefit (expense) | (191 | ) | — | |||||||||||||||||||||
Total reclassification for the period | $ | 315 | $ | (1,001 | ) | |||||||||||||||||||
(a) | Amounts in parentheses represent debits to results of operations. | |||||||||||||||||||||||
(b) | The Company sponsors the Union Plan, a qualified defined benefit pension plan covering certain locations or work groups with collective bargaining agreements. | |||||||||||||||||||||||
(c) | The Company sponsors the GK Pension Plan, a qualified defined benefit pension plan covering certain eligible U.S. employees who were employed at locations that the Company purchased through its acquisition of Gold Kist in 2007, the SERP Plan, a nonqualified defined benefit retirement plan covering certain former Gold Kist executives, the Directors’ Emeriti Plan, a nonqualified defined benefit retirement plan covering certain former Gold Kist directors and the Retiree Life Plan, a defined benefit postretirement life insurance plan covering certain retired Gold Kist employees (collectively, the “Legacy Gold Kist Plans”). | |||||||||||||||||||||||
(d) | These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See “Note 12. Pension and Other Postretirement Benefits” to the Consolidated Financial Statements. | |||||||||||||||||||||||
Condensed Unaudited Pro Forma Consolidated Balance Sheet | PILGRIM’S PRIDE CORPORATION | |||||||||||||||||||||||
CONDENSED UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET | ||||||||||||||||||||||||
December 28, 2014 | Special Cash Dividend | December 28, 2014 | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 576,143 | $ | 1,196,000 | (a) | $ | 267,786 | |||||||||||||||||
(1,500,000 | ) | (b) | ||||||||||||||||||||||
(4,357 | ) | (c) | ||||||||||||||||||||||
Trade accounts and other receivables, less | 378,890 | — | 378,890 | |||||||||||||||||||||
allowance for doubtful accounts | ||||||||||||||||||||||||
Inventories | 790,305 | — | 790,305 | |||||||||||||||||||||
Other | 139,741 | — | 139,741 | |||||||||||||||||||||
Total current assets | 1,885,079 | (308,357 | ) | 1,576,722 | ||||||||||||||||||||
Property, plant and equipment, net | 1,182,795 | — | 1,182,795 | |||||||||||||||||||||
Other | 51,189 | 4,357 | (c) | 55,546 | ||||||||||||||||||||
Total assets | $ | 3,119,063 | $ | (304,000 | ) | $ | 2,815,063 | |||||||||||||||||
Total current liabilities | $ | 744,858 | $ | — | $ | 744,858 | ||||||||||||||||||
Long-term debt, less current maturities | 3,980 | 1,196,000 | (a) | 1,199,980 | ||||||||||||||||||||
Deferred tax liabilities | 76,216 | — | 76,216 | |||||||||||||||||||||
Other long-term liabilities | 97,208 | — | 97,208 | |||||||||||||||||||||
Total stockholders’ equity | 2,196,801 | (1,500,000 | ) | (b) | 696,801 | |||||||||||||||||||
Total liabilities and stockholders' equity | $ | 3,119,063 | $ | (304,000 | ) | $ | 2,815,063 | |||||||||||||||||
INCENTIVE_COMPENSATION_Tables
INCENTIVE COMPENSATION (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
Schedule of Awards | The following awards existed during 2014: | ||||||||||||||||||||
Award | Benefit Plan | Award Quantity | Grant Date | Vesting Condition | Vesting Date | Estimated | Settlement Method | ||||||||||||||
Type | Forfeiture | ||||||||||||||||||||
Rate | |||||||||||||||||||||
RSA | Employment Agreement | 100,000 | January 14, 2011 | Service | January 3, 2014 | — | % | Stock | |||||||||||||
RSA | LTIP | 72,675 | August 27, 2012 | Service | April 27, 2014 | — | % | Stock | |||||||||||||
RSU | LTIP | 608,561 | February 4, 2013 | Service | December 31, 2014 | 9.66 | % | Stock | |||||||||||||
RSA | LTIP | 15,000 | February 25, 2013 | Service | February 24, 2015 | — | % | Stock | |||||||||||||
RSA | LTIP | 15,000 | February 25, 2013 | Service | February 24, 2016 | — | % | Stock | |||||||||||||
RSU | LTIP | 206,933 | February 26, 2013 | Service | December 31, 2014 | — | % | Stock | |||||||||||||
RSU | LTIP | 462,518 | February 19, 2014 | Service | December 31, 2016 | 13.49 | % | Stock | |||||||||||||
Schedule of Compensation Cost and Income Tax Benefit | Compensation costs and the income tax benefit recognized for our share-based compensation arrangements are included below: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Share-based compensation cost: | |||||||||||||||||||||
Cost of goods sold | $ | 395 | $ | 361 | $ | — | |||||||||||||||
Selling, general and administrative expenses | 4,533 | 2,984 | 684 | ||||||||||||||||||
Total | $ | 4,928 | $ | 3,345 | $ | 684 | |||||||||||||||
Income tax benefit | $ | 1,326 | $ | 471 | $ | 28 | |||||||||||||||
Schedule of Restricted Share and Restricted Stock Unit Activity | The Company’s RSA and RSU activity is included below: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Number | Weighted Average Grant Date Fair Value | Number | Weighted Average Grant Date Fair Value | Number | Weighted Average Grant Date Fair Value | ||||||||||||||||
(In thousands, except weighted average fair values) | |||||||||||||||||||||
RSAs: | |||||||||||||||||||||
Outstanding at beginning of year | 203 | $ | 6.59 | 273 | $ | 6.54 | 200 | $ | 7.1 | ||||||||||||
Granted | — | — | 30 | 8.72 | 73 | 5 | |||||||||||||||
Vested | (173 | ) | 6.62 | (100 | ) | 7.1 | — | — | |||||||||||||
Outstanding at end of year | 30 | $ | 8.72 | 203 | $ | 6.59 | 273 | $ | 6.54 | ||||||||||||
RSUs: | |||||||||||||||||||||
Outstanding at beginning of year | 729 | $ | 8.81 | — | $ | — | — | $ | — | ||||||||||||
Granted | 463 | 16.7 | 815 | 8.82 | — | — | |||||||||||||||
Vested | — | — | — | — | — | — | |||||||||||||||
Forfeited | (72 | ) | 10.34 | (86 | ) | 8.89 | — | — | |||||||||||||
Outstanding at end of year | 1,120 | $ | 11.97 | 729 | $ | 8.81 | — | $ | — | ||||||||||||
RELATED_PARTY_TRANSACTIONS_Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2014 | ||||||||||||
Related Party Transactions [Abstract] | ||||||||||||
Schedule of Related Party Transactions | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
JBS USA: | ||||||||||||
Letter of credit fees(a) | $ | 1,339 | $ | 2,156 | $ | 1,339 | ||||||
Equity contribution under tax sharing agreement(b) | 3,849 | — | — | |||||||||
JBS USA, LLC: | ||||||||||||
Purchases from JBS USA, LLC | 115,337 | 80,809 | 69,048 | |||||||||
Expenditures paid by JBS USA, LLC on behalf of Pilgrim’s(c) | 31,149 | 55,730 | 61,353 | |||||||||
Sales to JBS USA, LLC | 39,682 | 61,942 | 206,720 | |||||||||
Expenditures paid by Pilgrim’s on behalf of JBS USA, LLC(c) | 4,925 | 1,733 | 4,134 | |||||||||
JBS Aves Ltda.: | ||||||||||||
Purchases from JBS Aves Ltda. | 4,072 | — | — | |||||||||
Seara International Ltd.: | ||||||||||||
Purchases from Seara International Ltd. | 2,091 | — | — | |||||||||
JBS Chile Ltda.: | ||||||||||||
Sales to JBS Chile Ltda. | 463 | — | — | |||||||||
JBS Global (UK) Ltd.: | ||||||||||||
Sales to JBS Global (UK) Ltd. | 255 | — | — | |||||||||
(a) | Beginning on October 26, 2011, JBS USA arranged for letters of credit to be issued on its account in the amount of $56.5 million to an insurance company on our behalf in order to allow that insurance company to return cash it held as collateral against potential liability claims. We agreed to reimburse JBS USA up to $56.5 million for potential draws upon these letters of credit. We reimburse JBS USA for the letter of credit costs we would have otherwise incurred under our credit facilities. During 2014, we have paid JBS USA $1.3 million for letter of credit costs. As of December 28, 2014, the Company has accrued an obligation of $0.1 million to reimburse JBS USA for letter of credit costs incurred on its behalf. | |||||||||||
(b) | The Company entered into a tax sharing agreement during 2014 with JBS USA effective for tax years starting 2010. The net tax receivable for tax years 2010 through 2014 was accrued in 2014. | |||||||||||
(c) | On January 19, 2010, the Company entered into an agreement with JBS USA, LLC in order to allocate costs associated with JBS USA, LLC'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, LLC 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. On May 5, 2010, the Company also entered into an agreement with JBS USA, LLC in order 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, LLC on behalf of the Company will be reimbursed by the Company and expenditures paid by the Company on behalf of JBS USA, LLC will be reimbursed by JBS USA, LLC. This agreement expires on May 5, 2015. |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Dec. 28, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Schedule of Future Minimum Payments | The Company’s future minimum lease commitments under noncancelable operating leases are as follows (in thousands): | ||||
2015 | $ | 16,893 | |||
2016 | 14,019 | ||||
2017 | 11,213 | ||||
2018 | 8,197 | ||||
2019 | 5,875 | ||||
Thereafter | 3,114 | ||||
Total | $ | 59,311 | |||
BUSINESS_SEGMENT_AND_GEOGRAPHI1
BUSINESS SEGMENT AND GEOGRAPHIC REPORTING (Tables) | 12 Months Ended | ||||||||||||
Dec. 28, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Schedule of Net Sales and Long-lived Assets | Net sales to customers by customer location and long-lived assets are as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Net sales to customers by customer location: | |||||||||||||
United States | $ | 7,067,408 | $ | 6,816,246 | $ | 6,600,206 | |||||||
Mexico | 1,075,764 | 1,108,308 | 988,712 | ||||||||||
Asia | 246,141 | 301,545 | 262,455 | ||||||||||
North America | 80,121 | 51,275 | 111,305 | ||||||||||
Africa | 49,810 | 38,809 | 62,642 | ||||||||||
Europe | 44,377 | 73,349 | 79,101 | ||||||||||
South America | 18,102 | 19,224 | 13,775 | ||||||||||
Pacific | 1,642 | 2,392 | 3,186 | ||||||||||
Total | $ | 8,583,365 | $ | 8,411,148 | $ | 8,121,382 | |||||||
December 28, 2014 | December 29, 2013 | ||||||||||||
(In thousands) | |||||||||||||
Long-lived assets(a): | |||||||||||||
United States | $ | 1,085,856 | $ | 1,066,963 | |||||||||
Mexico | 96,939 | 84,848 | |||||||||||
Total | $ | 1,182,795 | $ | 1,151,811 | |||||||||
(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. | ||||||||||||
Schedule of Sales by Product Lines | The following table sets forth, for the periods beginning with 2012, net sales attributable to each of our primary product lines and markets served with those products. We based the table on our internal sales reports and their classification of product types. | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
U.S. chicken: | |||||||||||||
Prepared chicken | $ | 1,787,389 | $ | 2,046,747 | $ | 2,239,289 | |||||||
Fresh chicken | 4,703,993 | 4,123,087 | 3,583,854 | ||||||||||
Export and other chicken by-products | 620,082 | 715,970 | 817,723 | ||||||||||
Total U.S. chicken | 7,111,464 | 6,885,804 | 6,640,866 | ||||||||||
Mexico chicken | 900,360 | 864,454 | 758,023 | ||||||||||
Total chicken | 8,011,824 | 7,750,258 | 7,398,889 | ||||||||||
Other products: | |||||||||||||
U.S. | 535,572 | 614,409 | 608,619 | ||||||||||
Mexico | 35,969 | 46,481 | 113,874 | ||||||||||
Total other products | 571,541 | 660,890 | 722,493 | ||||||||||
Total net sales | $ | 8,583,365 | $ | 8,411,148 | $ | 8,121,382 | |||||||
QUARTERLY_RESULTS_UNAUDITED_Ta
QUARTERLY RESULTS (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||
Schedule of Quarterly Results | |||||||||||||||||||||
2014 | First | Second | Third | Fourth | Year | ||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||
Net sales | $ | 2,018,065 | $ | 2,186,817 | $ | 2,268,048 | $ | 2,110,435 | $ | 8,583,365 | |||||||||||
Gross profit | 215,106 | 349,476 | 450,265 | 379,148 | 1,393,995 | ||||||||||||||||
Net income attributable to PPC | 98,117 | 190,360 | 255,983 | 167,188 | 711,648 | ||||||||||||||||
common stockholders | |||||||||||||||||||||
Net income per share amounts - | 0.38 | 0.74 | 0.99 | 0.65 | 2.75 | ||||||||||||||||
basic | |||||||||||||||||||||
Net income per share amounts - | 0.38 | 0.73 | 0.99 | 0.64 | 2.74 | ||||||||||||||||
diluted | |||||||||||||||||||||
Number of days in quarter | 91 | 91 | 91 | 91 | 364 | ||||||||||||||||
2013 | First | Second | Third | Fourth(a) | Year | ||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||
Net sales | $ | 2,036,929 | $ | 2,184,118 | $ | 2,142,816 | $ | 2,047,285 | $ | 8,411,148 | |||||||||||
Gross profit (loss) | 118,434 | 282,507 | 236,573 | 207,925 | 845,439 | ||||||||||||||||
Net loss attributable to PPC | 54,582 | 190,704 | 160,917 | 143,352 | 549,555 | ||||||||||||||||
common stockholders | |||||||||||||||||||||
Net loss per share amounts - | 0.21 | 0.74 | 0.62 | 0.55 | 2.12 | ||||||||||||||||
basic and diluted | |||||||||||||||||||||
Number of days in quarter | 91 | 91 | 91 | 91 | 364 | ||||||||||||||||
(a) | In the fourth quarter of 2013, the Company recognized expenses related to the shutdown of our Dallas plant of $0.5 million and asset impairment charges of $0.5 million. | ||||||||||||||||||||
2012 | First | Second | Third | Fourth(a) | Year | ||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||
Net sales | $ | 1,888,773 | $ | 1,974,469 | $ | 2,068,478 | $ | 2,189,662 | $ | 8,121,382 | |||||||||||
Gross profit | 110,065 | 144,089 | 106,135 | 75,543 | 435,832 | ||||||||||||||||
Net income (loss) attributable to PPC | 39,173 | 69,357 | 42,931 | 22,773 | 174,234 | ||||||||||||||||
common stockholders | |||||||||||||||||||||
Net income (loss) per share amounts - | 0.18 | 0.27 | 0.17 | 0.09 | 0.7 | ||||||||||||||||
basic and diluted | |||||||||||||||||||||
Number of days in quarter | 91 | 91 | 91 | 98 | 371 | ||||||||||||||||
(a) | In the fourth quarter of 2012, the Company recognized expenses related to the shutdown of our Dallas plant of $1.1 million and asset impairment charges of $1.4 million. |
BUSINESS_AND_SUMMARY_OF_SIGNIF2
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
lb | |||
country | |||
employee | |||
state | |||
grower | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of countries to which the company exports products | 95 | ||
Number of states in which entity operates | 12 | ||
Number of employees | 35,000 | ||
Maximum processing capacity, more than (number of birds per week) | 35,000,000 | ||
Number of pounds of live chicken processed annually, more than | 10,000,000,000 | ||
Number of contract growers that supply poultry | 3,750 | ||
Ownership percentage | 75.50% | ||
Advertising expense | $4.40 | $4.90 | $6.50 |
Research and development expense | $3.80 | $3.90 | $3.80 |
Non-compete agreements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Intangible assets, estimated useful life | 3 years | 3 years | |
Customer relationships [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Intangible assets, estimated useful life | 13 years | 13 years | |
Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fiscal Period Duration | 364 days | ||
Estimated closing costs, percent of asset fair value | 4.00% | ||
Minimum [Member] | Trade names [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Intangible assets, estimated useful life | 3 years | 3 years | |
Minimum [Member] | Non-compete agreements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Intangible assets, estimated useful life | 3 years | ||
Minimum [Member] | Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, estimated useful life | 5 years | ||
Minimum [Member] | Machinery and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, estimated useful life | 5 years | ||
Minimum [Member] | Automobiles and trucks [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, estimated useful life | 3 years | ||
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fiscal Period Duration | 371 days | ||
Estimated closing costs, percent of asset fair value | 6.00% | ||
Maximum [Member] | Trade names [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Intangible assets, estimated useful life | 15 years | 15 years | |
Maximum [Member] | Non-compete agreements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Intangible assets, estimated useful life | 15 years | ||
Maximum [Member] | Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, estimated useful life | 33 years | ||
Maximum [Member] | Machinery and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, estimated useful life | 33 years | ||
Maximum [Member] | Automobiles and trucks [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, estimated useful life | 10 years |
FAIR_VALUE_MEASUREMENTS_Schedu
FAIR VALUE MEASUREMENTS (Schedule of Assets and Liabilities Measured on a Recurring Basis) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Change in Value of Level 3 Liabilities: | |||
Borrowings | $0 | ($505,600) | ($851,400) |
Payments | 910,234 | 758,578 | 1,110,711 |
Level 3 [Member] | Term Notes and Revolver [Member] | |||
Change in Value of Level 3 Liabilities: | |||
Balance, beginning of period | -424,650 | -686,435 | |
Borrowings | 0 | -509,500 | |
Payments | 410,099 | 762,091 | |
Change in fair value inputs | 14,551 | 9,194 | |
Balance, end of period | 0 | -424,650 | |
Level 3 [Member] | Capitalized Lease Obligations [Member] | |||
Change in Value of Level 3 Liabilities: | |||
Balance, beginning of period | -704 | -880 | |
Borrowings | 0 | 0 | |
Payments | 135 | 124 | |
Change in fair value inputs | -18 | 52 | |
Balance, end of period | -587 | -704 | |
Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments in available-for-sale securities | 96,902 | ||
Deferred compensation plan assets | 6,753 | 7,208 | |
Long-term debt and other borrowing arrangements: | |||
Public bonds and notes | -3,979 | -552,592 | |
Term notes and revolver | -424,650 | ||
Capitalized lease obligations | -587 | -704 | |
Fair Value, Measurements, Recurring [Member] | Commodity Futures Instruments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 8,416 | 1,494 | |
Derivative liabilities | -8,580 | -1,728 | |
Fair Value, Measurements, Recurring [Member] | Foreign Currency Futures Instruments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 2,563 | 1,214 | |
Fair Value, Measurements, Recurring [Member] | Commodity Options Instruments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 1,395 | ||
Derivative liabilities | -14,103 | ||
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments in available-for-sale securities | 0 | ||
Deferred compensation plan assets | 6,753 | 7,208 | |
Long-term debt and other borrowing arrangements: | |||
Public bonds and notes | -3,979 | -552,592 | |
Term notes and revolver | 0 | ||
Capitalized lease obligations | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Commodity Futures Instruments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 8,416 | 1,494 | |
Derivative liabilities | -8,580 | -1,728 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Foreign Currency Futures Instruments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 2,563 | 1,214 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Commodity Options Instruments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 0 | ||
Derivative liabilities | -14,103 | ||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments in available-for-sale securities | 96,902 | ||
Deferred compensation plan assets | 0 | 0 | |
Long-term debt and other borrowing arrangements: | |||
Public bonds and notes | 0 | 0 | |
Term notes and revolver | 0 | ||
Capitalized lease obligations | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Commodity Futures Instruments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 0 | 0 | |
Derivative liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Foreign Currency Futures Instruments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Commodity Options Instruments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 1,395 | ||
Derivative liabilities | 0 | ||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments in available-for-sale securities | 0 | ||
Deferred compensation plan assets | 0 | 0 | |
Long-term debt and other borrowing arrangements: | |||
Public bonds and notes | 0 | 0 | |
Term notes and revolver | -424,650 | ||
Capitalized lease obligations | -587 | -704 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Commodity Futures Instruments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 0 | 0 | |
Derivative liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Foreign Currency Futures Instruments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Commodity Options Instruments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 0 | ||
Derivative liabilities | $0 |
FAIR_VALUE_MEASUREMENTS_Schedu1
FAIR VALUE MEASUREMENTS (Schedule of Carrying Amounts and Estimated Fair Values of Financial Assets and Liabilities) (Details) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments in available-for-sale securities | $0 | $96,902 |
Deferred compensation plan assets | 6,753 | 7,208 |
Long-term debt and other borrowing arrangements | -4,242 | -912,233 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments in available-for-sale securities | 0 | 96,902 |
Deferred compensation plan assets | 6,753 | 7,208 |
Long-term debt and other borrowing arrangements | -4,566 | -977,946 |
Commodity Futures Instruments [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 8,416 | 1,494 |
Derivative liabilities | -8,580 | -1,728 |
Commodity Futures Instruments [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 8,416 | 1,494 |
Derivative liabilities | -8,580 | -1,728 |
Commodity Options Instruments [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | 1,395 |
Derivative liabilities | -14,103 | 0 |
Commodity Options Instruments [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | 1,395 |
Derivative liabilities | -14,103 | 0 |
Foreign Currency Futures Instruments [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 2,563 | 1,214 |
Foreign Currency Futures Instruments [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | $2,563 | $1,214 |
FAIR_VALUE_MEASUREMENTS_Narrat
FAIR VALUE MEASUREMENTS (Narrative) (Details) (Fair Value, Measurements, Nonrecurring [Member], Level 2 [Member], USD $) | Dec. 28, 2014 |
In Millions, unless otherwise specified | |
Fair Value, Measurements, Nonrecurring [Member] | Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets held for sale, fair value | $1.40 |
TRADE_ACCOUNTS_AND_OTHER_RECEI2
TRADE ACCOUNTS AND OTHER RECEIVABLES (Details) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Accounts Receivable, Net [Abstract] | ||
Trade accounts receivable | $371,268 | $369,715 |
Accounts receivable from related parties | 5,250 | 2,388 |
Receivables from officers and employees | 0 | 14 |
Notes receivable - current | 1,088 | 0 |
Other receivables | 9,059 | 11,005 |
Receivables, gross | 386,665 | 383,122 |
Allowance for doubtful accounts | -2,525 | -4,056 |
Receivables, net | $384,140 | $379,066 |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ||
Total inventories | $790,305 | $808,832 |
Chicken Inventories Live Chicken and Hens [Member] | ||
Inventory [Line Items] | ||
Total inventories | 363,438 | 368,582 |
Chicken Inventories Feed Eggs and Other [Member] | ||
Inventory [Line Items] | ||
Total inventories | 198,681 | 216,045 |
Chicken Inventories Finished Chicken Products [Member] | ||
Inventory [Line Items] | ||
Total inventories | 227,649 | 223,932 |
Chicken Inventories [Member] | ||
Inventory [Line Items] | ||
Total inventories | 789,768 | 808,559 |
Commercial Feed Table Eggs and Other [Member] | ||
Inventory [Line Items] | ||
Total inventories | $537 | $273 |
INVESTMENTS_IN_SECURITIES_Deta
INVESTMENTS IN SECURITIES (Details) (USD $) | 12 Months Ended | |
Dec. 28, 2014 | Dec. 29, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Gross realized gains recognized on available-for-sale securities | $1,000,000 | $25,620 |
Gross realized losses recognized on available-for-sale securities | 18,819 | 0 |
Cash equivalents, fixed income securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 204,286,000 | 103,121,000 |
Fair Value | 204,286,000 | 103,121,000 |
Cash Equivalents, Other [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 80,000 | 56,000 |
Fair Value | 80,000 | 56,000 |
Fixed income securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 0 | 96,902,000 |
Fair Value | $0 | $96,902,000 |
DERIVATIVE_FINANCIAL_INSTRUMEN2
DERIVATIVE FINANCIAL INSTRUMENTS (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Net gains (losses) on derivative financial instruments | $16.10 | $25.10 | $8.30 |
DERIVATIVE_FINANCIAL_INSTRUMEN3
DERIVATIVE FINANCIAL INSTRUMENTS (Schedule of Outstanding Derivative Instruments and Cash Collateral) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 |
Fair values: | ||
Cash collateral posted with brokers | 25,205 | 4,142 |
Corn [Member] | ||
Derivatives Coverage: | ||
Derivatives Coverage | -8.20% | 1.10% |
Soybean Meal [Member] | ||
Derivatives Coverage: | ||
Derivatives Coverage | -16.10% | -3.60% |
Commodity [Member] | ||
Fair values: | ||
Commodity derivative assets | 8,416 | 2,889 |
Commodity derivative liabilities | -22,683 | -1,728 |
Foreign currency [Member] | ||
Fair values: | ||
Commodity derivative assets | 2,563 | 1,214 |
IDENTIFIED_INTANGIBLE_ASSETS_S
IDENTIFIED INTANGIBLE ASSETS (Schedule of Intangible Assets) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 |
Finite-Lived Intangible Assets [Line Items] | ||
Original Cost | 91,443 | 91,443 |
Accumulated Amortization | -64,660 | -58,918 |
Carrying Amount | 26,783 | 32,525 |
Trade names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original Cost | 40,143 | 40,143 |
Accumulated Amortization | -32,900 | -31,081 |
Carrying Amount | 7,243 | 9,062 |
Trade names [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (Years) | 3 years | 3 years |
Trade names [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (Years) | 15 years | 15 years |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (Years) | 13 years | 13 years |
Original Cost | 51,000 | 51,000 |
Accumulated Amortization | -31,460 | -27,537 |
Carrying Amount | 19,540 | 23,463 |
Non-compete agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (Years) | 3 years | 3 years |
Original Cost | 300 | 300 |
Accumulated Amortization | -300 | -300 |
Carrying Amount | 0 | 0 |
Non-compete agreements [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (Years) | 3 years | |
Non-compete agreements [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (Years) | 15 years |
IDENTIFIED_INTANGIBLE_ASSETS_N
IDENTIFIED INTANGIBLE ASSETS (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $5.70 | $5.70 | $5.80 |
Expected amortization expense, 2015 | 5.7 | ||
Expected amortization expense, 2016 | 5.7 | ||
Expected amortization expense, 2017 | 5.9 | ||
Expected amortization expense, 2018 | 5.6 | ||
Expected amortization expense, 2019 | $4 |
PROPERTY_PLANT_AND_EQUIPMENT_N
PROPERTY, PLANT AND EQUIPMENT (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $136,400,000 | $135,500,000 | $131,500,000 |
Proceeds from property disposals | 11,108,000 | 31,337,000 | 29,400,000 |
Gain (loss) on property disposals | 1,400,000 | -2,400,000 | |
Expenditures for capital projects | 171,443,000 | 116,223,000 | 90,327,000 |
Completed projects transferred from construction-in-progress to depreciable assets | 110,100,000 | ||
Idled assets property, plant and equipment, net | 69,300,000 | ||
Idled asset property, plant and equipment gross | 181,300,000 | ||
Idled asset accumulated depreciation | 112,000,000 | ||
Assets held for sale | $1,419,000 | $7,033,000 |
PROPERTY_PLANT_AND_EQUIPMENT_S
PROPERTY, PLANT AND EQUIPMENT (Schedule of Property, Plant and Equipment) (Details) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $2,873,069 | $2,769,603 |
Accumulated depreciation | -1,690,274 | -1,617,792 |
Property, plant and equipment, net | 1,182,795 | 1,151,811 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 66,798 | 66,071 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,086,690 | 1,077,859 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,537,241 | 1,502,968 |
Autos and trucks [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 52,639 | 55,779 |
Construction-in-progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $129,701 | $66,926 |
CURRENT_LIABILITIES_Details
CURRENT LIABILITIES (Details) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Accounts payable: | ||
Trade accounts | $347,107 | $313,266 |
Book overdrafts | 47,320 | 55,378 |
Other payables | 5,059 | 1,716 |
Total accounts payable | 399,486 | 370,360 |
Accounts payable to related parties | 4,862 | 3,934 |
Accrued expenses and other current liabilities: | ||
Compensation and benefits | 123,495 | 100,965 |
Interest and debt-related fees | 780 | 7,558 |
Insurance and self-insured claims | 85,240 | 99,244 |
Derivative liabilities: | ||
Other accrued expenses | 79,681 | 73,859 |
Total accrued expenses and other current liabilities | 311,879 | 283,355 |
Total current liabilities | 716,227 | 657,649 |
Futures [Member] | ||
Derivative liabilities: | ||
Derivative liabilities | 8,580 | 1,729 |
Options [Member] | ||
Derivative liabilities: | ||
Derivative liabilities | $14,103 | $0 |
LONGTERM_DEBT_AND_OTHER_BORROW2
LONG-TERM DEBT AND OTHER BORROWING ARRANGEMENTS (Narrative) (Details) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 15, 2014 | Dec. 28, 2014 | Dec. 15, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 29, 2013 | Jun. 23, 2011 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | Jun. 23, 2011 | Aug. 07, 2013 | Dec. 28, 2009 | Aug. 07, 2013 | Aug. 07, 2013 | Aug. 07, 2013 | Dec. 28, 2014 | Dec. 29, 2013 | Aug. 07, 2013 | Aug. 07, 2013 | Dec. 28, 2014 | Aug. 07, 2013 | Aug. 07, 2013 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 28, 2014 | Jul. 23, 2014 | Dec. 29, 2013 | Dec. 28, 2014 | Feb. 11, 2015 | Feb. 11, 2015 | Feb. 11, 2015 | Feb. 11, 2015 | Feb. 11, 2015 | Feb. 11, 2015 | Feb. 11, 2015 | Feb. 11, 2015 | Feb. 11, 2015 | Feb. 11, 2015 | Feb. 11, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | |
USD ($) | USD ($) | USD ($) | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Unsecured Notes One [Member] | Senior Unsecured and Subordinated Unsecured Notes [Member] | Subordinated Loan [Member] | Subordinated Loan [Member] | Subordinated Loan [Member] | Letter Of Credit [Member] | Letter Of Credit [Member] | Letter Of Credit [Member] | Letter Of Credit [Member] | 2013 US Credit Facility [Member] | 2013 US Credit Facility [Member] | 2013 US Credit Facility [Member] | 2013 US Credit Facility [Member] | 2013 US Credit Facility [Member] | 2013 US Credit Facility Revolver [Member] | 2013 US Credit Facility Revolver [Member] | 2013 US Credit Facility Revolver [Member] | 2013 US Line Of Credit Sublimit Swingline Loans [Member] | 2013 US Credit Facility Letters Of Credit [Member] | 2013 US Credit Facility Letters Of Credit [Member] | 2013 US Credit Facility Delayed Draw [Member] | 2013 US Credit Facility Term B Loan [Member] | 2013 US Credit Facility Term B-1 Loan [Member] | 2013 US Credit Facility Term B-1 Loan [Member] | 2013 US Credit Facility Term B-2 Loan [Member] | 2013 US Credit Facility Term B-2 Loan [Member] | Loan Commitment Under Mexico Credit Facility [Member] | Loan Commitment Under Mexico Credit Facility [Member] | Loan Commitment Under Mexico Credit Facility [Member] | Loan Commitment Under Mexico Credit Facility [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |
USD ($) | USD ($) | Long-term Debt [Member] | Long-term Debt [Member] | Long-term Debt [Member] | USD ($) | USD ($) | USD ($) | JBS USA [Member] | JBS USA [Member] | JBS USA [Member] | JBS USA [Member] | JBS USA [Member] | USD ($) | USD ($) | USD ($) | US and Puerto Rico Subsidiaries [Member] | Foreign Subsidiaries [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | MXN | USD ($) | Tiie Rate Plus [Member] | 2015 US Credit Facility [Member] | 2015 US Credit Facility [Member] | 2015 US Credit Facility [Member] | 2015 US Credit Facility [Member] | 2015 US Credit Facility [Member] | 2015 US Credit Facility [Member] | 2015 US Credit Facility Revolver [Member] | 2015 US Credit Facility Revolver [Member] | 2015 US Credit Facility Term Loans [Member] | 2015 US Line of Credit Facility Sublimit Swingline Loans [Member] | 2015 US Credit Facility Sublimit Letters of Credit [Member] | Scenario, Forecast [Member] | Scenario, Forecast [Member] | Scenario, Forecast [Member] | Scenario, Forecast [Member] | ||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | US and Puerto Rico Subsidiaries [Member] | Foreign Subsidiaries [Member] | London Interbank Offered Rate (LIBOR) [Member] | Alternate Base Rate [Member] | USD ($) | To-Ricos Borrower [Member] | USD ($) | USD ($) | USD ($) | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | ||||||||||||||||||||||||||||||||
USD ($) | 2015 US Credit Facility [Member] | 2015 US Credit Facility [Member] | 2015 US Credit Facility [Member] | 2015 US Credit Facility [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Alternate Base Rate [Member] | London Interbank Offered Rate (LIBOR) [Member] | Alternate Base Rate [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption/repayments of debt | $500,000,000 | $204,900,000 | $205,200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Stated interest rate | 7.88% | 7.88% | 8.38% | 7.63% | 2.44% | 9.00% | |||||||||||||||||||||||||||||||||||||||||||||||
Redemption price, percentage of principal | 103.94% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt outstanding | 4,242,000 | 912,233,000 | 0 | 497,757,000 | 0 | 3,600,000 | 0 | 0 | 100,000 | 0 | 0 | 20,100,000 | 0 | 0 | 204,880,000 | 0 | 205,219,000 | 0 | |||||||||||||||||||||||||||||||||||
Agreed reimbursement of debt, up to | 56,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit facility availed | 56,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Reimbursement to JBS USA for letter of credit cost | 1,300,000 | 2,200,000 | 2,200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum borrowing capacity | 1,850,000,000 | 700,000,000 | 700,000,000 | 100,000,000 | 200,000,000 | 560,000,000 | 38,100,000 | 700,000,000 | 25,000,000 | 1,000,000,000 | 75,000,000 | 125,000,000 | |||||||||||||||||||||||||||||||||||||||||
Delayed draw term loan commitment, up to | 400,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Feature to increase revolving loan commitment | 250,000,000 | 1,000,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Periodic Payment, Principal, Percentage of Principal Outstanding | 1.25% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Delayed draw term loan, feature to increase commitment | 500,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturity date | 7-Aug-18 | 7-Aug-18 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Delayed draw term loan, quarterly installments of principal, percentage of principal outstanding | 1.88% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of capitalized loan costs | 5,000,000 | 50,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Current borrowing capacity | 679,900,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of equity interests securing obligations | 65.00% | 100.00% | 65.00% | 100.00% | |||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds of Borrowings, Funding of Special Cash Dividend | 1,500,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Capital Expenditures Limit | 350,000,000 | 500,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Basis spread on variable interest rate | 1.05% | 1.50% | 0.50% | 1.25% | 0.25% | 2.75% | 1.75% | ||||||||||||||||||||||||||||||||||||||||||||||
Number of Days Past Due | 15 days | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 82,000,000 | 87,000,000 | 104,900,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, new construction capitalized | $4,700,000 | $2,200,000 | $1,700,000 |
LONGTERM_DEBT_AND_OTHER_BORROW3
LONG-TERM DEBT AND OTHER BORROWING ARRANGEMENTS (Schedule of Long-term Debt and Other Borrowing Arrangements) (Details) (USD $) | 12 Months Ended | |
Dec. 28, 2014 | Dec. 29, 2013 | |
Debt Instrument [Line Items] | ||
Long-term debt | 4,242,000 | $912,233,000 |
Less: Current maturities of long-term debt | -262,000 | -410,234,000 |
Long-term debt, less current maturities | 3,980,000 | 501,999,000 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 7.88% | |
Long-term debt | 0 | 497,757,000 |
2013 US Credit Facility Term B-1 Loan [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 2.44% | |
Long-term debt | 0 | 204,880,000 |
2013 US Credit Facility Term B-2 Loan [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 9.00% | |
Long-term debt | 0 | 205,219,000 |
2013 US Credit Facility Revolver [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 0 |
Mexico Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 0 |
Subordinated Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 0 |
Other Long Term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 4,242,000 | 4,377,000 |
Loan Commitment Under Mexico Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | |
Tiie Rate Plus [Member] | Loan Commitment Under Mexico Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable interest rate | 1.05% |
LONGTERM_DEBT_AND_OTHER_BORROW4
LONG-TERM DEBT AND OTHER BORROWING ARRANGEMENTS (Schedule of Annual Maturities) (Details) (USD $) | Dec. 28, 2014 |
In Thousands, unless otherwise specified | |
For the fiscal years ending December: | |
2015 | $262 |
2016 | 87 |
2017 | 3,611 |
2018 | 102 |
2019 | 92 |
Thereafter | 88 |
Total maturities | $4,242 |
INCOME_TAXES_Schedule_of_Incom
INCOME TAXES (Schedule of Income (Loss) from Continuing Operations Before Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Income Tax Disclosure [Abstract] | |||
U.S. | $953,027 | $469,395 | $62,332 |
Foreign | 149,364 | 104,545 | 90,730 |
Income before income taxes | $1,102,391 | $573,940 | $153,062 |
INCOME_TAXES_Schedule_of_Incom1
INCOME TAXES (Schedule of Income Tax Expense (Benefit) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Current: | |||
Federal | $262,403 | ($427) | ($28,883) |
Foreign | 22,867 | 26,206 | 9,279 |
State and other | 24,056 | 3,512 | -211 |
Total current | 309,326 | 29,291 | -19,815 |
Deferred: | |||
Federal | 29,737 | 22,923 | -293 |
Foreign | 31,332 | -3,648 | -835 |
State and other | 20,558 | -24,339 | -37 |
Total deferred | 81,627 | -5,064 | -1,165 |
Income tax expense (benefit) | $390,953 | $24,227 | ($20,980) |
INCOME_TAXES_Schedule_of_Incom2
INCOME TAXES (Schedule of Income Tax Reconciliation) (Details) | 12 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax rate | 35.00% | 35.00% | 35.00% |
State tax rate, net | 2.60% | 2.30% | 2.50% |
Permanent items | 0.40% | 1.40% | 1.50% |
Domestic production activity | -2.40% | -1.20% | 0.00% |
Difference in U.S. statutory tax rate and foreign country effective tax rate | -1.00% | -1.00% | -3.30% |
Tax credits | 0.00% | -3.00% | -2.30% |
Change in reserve for unrecognized tax benefits | 0.00% | 0.00% | -10.40% |
Change in valuation allowance | 0.00% | -31.00% | -34.40% |
Other | 0.90% | 1.70% | -2.30% |
Total | 35.50% | 4.20% | -13.70% |
INCOME_TAXES_Schedule_of_Defer
INCOME TAXES (Schedule of Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax liabilities: | ||
PP&E and identified intangible assets | $126,536 | $125,197 |
Inventories | 48,365 | 74,287 |
Insurance claims and losses | 36,953 | 33,625 |
All other current | 18,696 | 9,453 |
All other noncurrent | 8,105 | 9,031 |
Total deferred tax liabilities | 238,655 | 251,593 |
Deferred tax assets: | ||
Net operating losses | 5,842 | 20,907 |
Foreign net operating losses | 7,873 | 15,437 |
Credit carry forwards | 2,916 | 79,555 |
Allowance for doubtful accounts | 4,261 | 4,510 |
Accrued liabilities | 52,772 | 47,384 |
All other current | 9,755 | 12,282 |
All other noncurrent | 20,857 | 10,292 |
Workers compensation | 43,309 | 42,951 |
Pension and other postretirement benefits | 26,049 | 20,364 |
Total deferred tax assets | 173,634 | 253,682 |
Valuation allowance | -9,150 | -10,400 |
Net deferred tax assets | 164,484 | 243,282 |
Net deferred tax liabilities | $74,171 | $8,311 |
INCOME_TAXES_Schedule_of_Unrec
INCOME TAXES (Schedule of Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized tax benefits, beginning of year | $17,117 | $16,643 |
Increase as a result of tax positions taken during the current year | 999 | 978 |
Increase as a result of tax positions taken during prior years | 0 | 232 |
Decrease as a result of tax positions taken during prior years | -101 | 0 |
Decrease for lapse in statute of limitations | -619 | -736 |
Unrecognized tax benefits, end of year | $17,396 | $17,117 |
INCOME_TAXES_Narrative_Details
INCOME TAXES (Narrative) (Details) (USD $) | 12 Months Ended | ||||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 26, 2010 | Dec. 27, 2009 | |
Operating Loss Carryforwards [Line Items] | |||||
Effective tax rate, continuing operations | 35.50% | 4.20% | -13.70% | ||
Increase (decrease) in valuation allowance | ($1,300,000) | ||||
Valuation allowance | 9,150,000 | 10,400,000 | |||
Net operating loss carry forwards | 547,700,000 | ||||
Claim for refund | 169,700,000 | ||||
Refunds received from Internal Revenue Service | 122,600,000 | ||||
Benefit recognized from deconsolidation | 4,300,000 | ||||
Total net benefit | 18,400,000 | ||||
Unrecognized tax benefits | 17,396,000 | 17,117,000 | 16,643,000 | ||
Amount of tax benefits that, if recognized, would reduce effective tax rate | 9,800,000 | ||||
Liability for interest and penalties | 10,200,000 | ||||
United States [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Valuation allowance | 1,300,000 | ||||
Foreign Tax Authority [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Valuation allowance | 7,800,000 | ||||
Net operating loss carry forwards | 25,900,000 | ||||
Net operating loss carry forwards, expiration date | 1-Jan-15 | ||||
State and Local Jurisdiction [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Net operating loss carry forwards | 177,800,000 | ||||
Net operating loss carry forwards, expiration date | 1-Jan-15 | ||||
Tax credit carry forwards | $2,900,000 | ||||
Tax credit carry forwards, expiration date | 1-Jan-15 |
PENSION_AND_OTHER_POSTRETIREME2
PENSION AND OTHER POSTRETIREMENT BENEFITS (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Retirement plan expenses | $5,900,000 | $7,500,000 | $8,700,000 |
Accumulated benefit obligation, defined benefit pension plans | 190,000,000 | 170,000,000 | |
Actuarial loss expected to be recognized in net pension cost throughout 2015 | 700,000 | ||
Maximum annual contribution per employee, amount | 30.00% | ||
Maximum annual contribution per employee, amount | 245,000 | ||
Expenses related to defined contribution plans | 3,900,000 | 3,900,000 | 5,700,000 |
Minimum [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Matching contribution, percent of employees' salary | 2.14% | ||
Maximum [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Matching contribution, percent of employees' salary | 6.00% | ||
Pension Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Expected contributions during 2015 | 9,400,000 | ||
Other Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Expected contributions during 2015 | $100,000 | ||
Fixed income securities [Member] | Pooled separate accounts [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Target plan asset allocations | 50.00% | ||
Fixed income securities [Member] | Common collective trusts funds [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Target plan asset allocations | 30.00% | ||
Equity securities [Member] | Pooled separate accounts [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Target plan asset allocations | 50.00% | ||
Equity securities [Member] | Common collective trusts funds [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Target plan asset allocations | 70.00% |
PENSION_AND_OTHER_POSTRETIREME3
PENSION AND OTHER POSTRETIREMENT BENEFITS (Schedule of Defined Benefit Plan Obligations and Assets) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 |
Change in plan assets: | ||||
Fair value of plan assets, end of year | $113,552 | $108,496 | ||
Pension Benefits [Member] | ||||
Change in projected benefit obligation: | ||||
Projected benefit obligation, beginning of year | 170,030 | 194,434 | ||
Interest cost | 8,103 | 7,954 | 8,272 | |
Actuarial losses (gains) | 24,670 | -24,315 | ||
Benefits paid | -12,154 | -8,043 | ||
Curtailments and settlements | -248 | 0 | ||
Projected benefit obligation, end of year | 190,401 | 170,030 | 194,434 | |
Change in plan assets: | ||||
Fair value of plan assets, beginning of year | 108,496 | 92,283 | ||
Actual return on plan assets | 3,944 | 16,489 | ||
Contributions by employer | 13,514 | 7,767 | ||
Benefits paid | -12,154 | -8,043 | ||
Curtailments and settlements | -248 | 0 | ||
Fair value of plan assets, end of year | 113,552 | 108,496 | 92,283 | |
Funded status: | ||||
Unfunded benefit obligation, end of year | -76,849 | -61,534 | ||
Amounts recognized in the Consolidated Balance Sheets at end of year: | ||||
Current liability | -9,373 | -9,146 | ||
Long-term liability | -67,476 | -52,388 | ||
Recognized liability | -76,849 | -61,534 | ||
Amounts recognized in accumulated other comprehensive loss at end of year: | ||||
Net actuarial loss (gain) | 43,907 | 16,957 | 53,368 | 31,108 |
Other Benefits [Member] | ||||
Change in projected benefit obligation: | ||||
Projected benefit obligation, beginning of year | 1,705 | 1,933 | ||
Interest cost | 81 | 78 | ||
Actuarial losses (gains) | -10 | -92 | ||
Benefits paid | 0 | 0 | ||
Curtailments and settlements | -119 | -214 | ||
Projected benefit obligation, end of year | 1,657 | 1,705 | ||
Change in plan assets: | ||||
Fair value of plan assets, beginning of year | 0 | 0 | ||
Actual return on plan assets | 0 | 0 | ||
Contributions by employer | 119 | 214 | ||
Benefits paid | 0 | 0 | ||
Curtailments and settlements | -119 | -214 | ||
Fair value of plan assets, end of year | 0 | 0 | ||
Funded status: | ||||
Unfunded benefit obligation, end of year | -1,657 | -1,705 | ||
Amounts recognized in the Consolidated Balance Sheets at end of year: | ||||
Current liability | -129 | -148 | ||
Long-term liability | -1,528 | -1,557 | ||
Recognized liability | -1,657 | -1,705 | ||
Amounts recognized in accumulated other comprehensive loss at end of year: | ||||
Net actuarial loss (gain) | ($127) | ($126) | ($49) | ($217) |
PENSION_AND_OTHER_POSTRETIREME4
PENSION AND OTHER POSTRETIREMENT BENEFITS (Schedule of Net Periodic Benefit Cost (Income)) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Pension Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Service cost | $0 | $0 | $51 |
Interest cost | 8,103 | 7,954 | 8,272 |
Estimated return on plan assets | -6,373 | -5,393 | -5,867 |
Settlement loss (gain) | 93 | 0 | 0 |
Amortization of net loss (gain) | 56 | 1,001 | 465 |
Net cost | 1,879 | 3,562 | 2,921 |
Other Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 81 | 78 | 96 |
Estimated return on plan assets | 0 | 0 | 0 |
Settlement loss (gain) | -9 | -15 | -7 |
Amortization of net loss (gain) | 0 | 0 | -2 |
Net cost | $72 | $63 | $87 |
PENSION_AND_OTHER_POSTRETIREME5
PENSION AND OTHER POSTRETIREMENT BENEFITS (Schedule of Economic Assumptions) (Details) | 12 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
Pension Benefits [Member] | |||
Benefit obligation: | |||
Discount rate | 4.22% | 4.95% | 4.22% |
Net pension and other postretirement cost: | |||
Discount rate | 4.95% | 4.22% | 5.09% |
Rate of compensation increase | 3.00% | ||
Expected return on plan assets | 6.00% | 6.00% | 7.50% |
Other Benefits [Member] | |||
Benefit obligation: | |||
Discount rate | 4.22% | 4.95% | 4.22% |
Net pension and other postretirement cost: | |||
Discount rate | 4.95% | 4.22% | 5.09% |
PENSION_AND_OTHER_POSTRETIREME6
PENSION AND OTHER POSTRETIREMENT BENEFITS (Schedule of Plan Asset Allocations) (Details) | Dec. 28, 2014 | Dec. 29, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets | 100.00% | 100.00% |
Cash and cash equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets | 0.00% | 0.00% |
Equity securities [Member] | Pooled separate accounts [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets | 6.00% | 8.00% |
Equity securities [Member] | Common collective trusts funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets | 60.00% | 60.00% |
Fixed income securities [Member] | Pooled separate accounts [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets | 6.00% | 3.00% |
Fixed income securities [Member] | Common collective trusts funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets | 28.00% | 29.00% |
PENSION_AND_OTHER_POSTRETIREME7
PENSION AND OTHER POSTRETIREMENT BENEFITS (Schedule of Fair Value Assumptions of Plan Assets) (Details) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | $113,552 | $108,496 |
Level 1 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 33 | 275 |
Level 2 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 113,519 | 108,221 |
Level 3 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Cash and cash equivalents [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 33 | 275 |
Cash and cash equivalents [Member] | Level 1 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 33 | 275 |
Cash and cash equivalents [Member] | Level 2 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Cash and cash equivalents [Member] | Level 3 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Large U.S. equity funds [Member] | Pooled separate accounts [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 4,147 | 4,828 |
Large U.S. equity funds [Member] | Pooled separate accounts [Member] | Level 1 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Large U.S. equity funds [Member] | Pooled separate accounts [Member] | Level 2 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 4,147 | 4,828 |
Large U.S. equity funds [Member] | Pooled separate accounts [Member] | Level 3 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Large U.S. equity funds [Member] | Common collective trusts funds [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 29,964 | 28,784 |
Large U.S. equity funds [Member] | Common collective trusts funds [Member] | Level 1 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Large U.S. equity funds [Member] | Common collective trusts funds [Member] | Level 2 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 29,964 | 28,784 |
Large U.S. equity funds [Member] | Common collective trusts funds [Member] | Level 3 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Small/Mid U.S. equity funds [Member] | Pooled separate accounts [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 1,062 | 1,192 |
Small/Mid U.S. equity funds [Member] | Pooled separate accounts [Member] | Level 1 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Small/Mid U.S. equity funds [Member] | Pooled separate accounts [Member] | Level 2 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 1,062 | 1,192 |
Small/Mid U.S. equity funds [Member] | Pooled separate accounts [Member] | Level 3 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Small/Mid U.S. equity funds [Member] | Common collective trusts funds [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 18,411 | 16,937 |
Small/Mid U.S. equity funds [Member] | Common collective trusts funds [Member] | Level 1 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Small/Mid U.S. equity funds [Member] | Common collective trusts funds [Member] | Level 2 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 18,411 | 16,937 |
Small/Mid U.S. equity funds [Member] | Common collective trusts funds [Member] | Level 3 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
International equity funds [Member] | Pooled separate accounts [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 1,719 | 2,019 |
International equity funds [Member] | Pooled separate accounts [Member] | Level 1 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
International equity funds [Member] | Pooled separate accounts [Member] | Level 2 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 1,719 | 2,019 |
International equity funds [Member] | Pooled separate accounts [Member] | Level 3 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
International equity funds [Member] | Common collective trusts funds [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 19,730 | 19,420 |
International equity funds [Member] | Common collective trusts funds [Member] | Level 1 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
International equity funds [Member] | Common collective trusts funds [Member] | Level 2 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 19,730 | 19,420 |
International equity funds [Member] | Common collective trusts funds [Member] | Level 3 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fixed income funds [Member] | Pooled separate accounts [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 6,609 | 3,442 |
Fixed income funds [Member] | Pooled separate accounts [Member] | Level 1 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fixed income funds [Member] | Pooled separate accounts [Member] | Level 2 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 6,609 | 3,442 |
Fixed income funds [Member] | Pooled separate accounts [Member] | Level 3 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fixed income funds [Member] | Common collective trusts funds [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 31,877 | 31,599 |
Fixed income funds [Member] | Common collective trusts funds [Member] | Level 1 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fixed income funds [Member] | Common collective trusts funds [Member] | Level 2 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 31,877 | 31,599 |
Fixed income funds [Member] | Common collective trusts funds [Member] | Level 3 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | $0 | $0 |
PENSION_AND_OTHER_POSTRETIREME8
PENSION AND OTHER POSTRETIREMENT BENEFITS (Schedule of Benefit Payments) (Details) (USD $) | Dec. 28, 2014 |
In Thousands, unless otherwise specified | |
Pension Benefits [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
2015 | $13,458 |
2016 | 12,937 |
2017 | 12,502 |
2018 | 11,769 |
2019 | 11,278 |
2020-2024 | 52,157 |
Total | 114,101 |
Other Benefits [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
2015 | 129 |
2016 | 130 |
2017 | 130 |
2018 | 130 |
2019 | 130 |
2020-2024 | 627 |
Total | $1,276 |
PENSION_AND_OTHER_POSTRETIREME9
PENSION AND OTHER POSTRETIREMENT BENEFITS (Schedule of Unrecognized Benefit Amounts) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Pension Benefits [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Net actuarial loss (gain), beginning of year | $16,957 | $53,368 | $31,108 |
Amortization | -56 | -1,001 | -465 |
Curtailment and settlement adjustments | -93 | 0 | 0 |
Actuarial loss (gain) | 24,670 | -24,315 | 24,872 |
Asset loss (gain) | 2,429 | -11,095 | -2,147 |
Net actuarial loss (gain), end of year | 43,907 | 16,957 | 53,368 |
Other Benefits [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Net actuarial loss (gain), beginning of year | -126 | -49 | -217 |
Amortization | 0 | 0 | 2 |
Curtailment and settlement adjustments | 9 | 15 | 7 |
Actuarial loss (gain) | -10 | -92 | 159 |
Asset loss (gain) | 0 | 0 | 0 |
Net actuarial loss (gain), end of year | ($127) | ($126) | ($49) |
STOCKHOLDERS_EQUITY_Narrative_
STOCKHOLDERS' EQUITY (Narrative) (Details) (USD $) | 0 Months Ended | 1 Months Ended | 0 Months Ended |
Mar. 07, 2012 | Jan. 31, 2012 | Jan. 15, 2015 | |
Equity [Abstract] | |||
Rights Offering, option to purchase shares of common stock, number of shares | 0.2072 | ||
Rights Offering, option to purchase shares of common stock, subscription price (in dollars per share) | $4.50 | ||
Rights Offering, number of shares offered | 44,444,444 | ||
Stock Issued During Period, Shares, New Issues | 44,444,444 | ||
Rights Offering, gross proceeds from issuance of common stock | $200,000,000 | ||
Rights Offering, issuance costs | 1,700,000 | ||
Rights Offering, net proceeds from issuance of common stock | 198,300,000 | ||
Repayment of outstanding principal amount of subordinated debt | 50,000,000 | ||
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Dividend declared (in dollars per share) | $5.77 | ||
Dividends | $1,500,000,000 |
STOCKHOLDERS_EQUITY_Schedule_o
STOCKHOLDERS' EQUITY (Schedule of Changes in Unrealized Actuarial Losses) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance, beginning of year | ($45,735) | ($68,511) |
Other comprehensive income (loss) before reclassifications | -16,491 | 21,775 |
Amounts reclassified from accumulated other comprehensive loss to net income | -315 | 1,001 |
Net current year other comprehensive income (loss) | -16,806 | 22,776 |
Balance, end of year | -62,541 | -45,735 |
Pension and Other Postretirement Plans Costs [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance, beginning of year | -45,797 | -68,511 |
Other comprehensive income (loss) before reclassifications | -16,810 | 21,713 |
Amounts reclassified from accumulated other comprehensive loss to net income | 35 | 1,001 |
Net current year other comprehensive income (loss) | -16,775 | 22,714 |
Balance, end of year | -62,572 | -45,797 |
Available-for-sale Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance, beginning of year | 62 | 0 |
Other comprehensive income (loss) before reclassifications | 319 | 62 |
Amounts reclassified from accumulated other comprehensive loss to net income | -350 | 0 |
Net current year other comprehensive income (loss) | -31 | 62 |
Balance, end of year | $31 | $62 |
STOCKHOLDERS_EQUITY_Schedule_o1
STOCKHOLDERS' EQUITY (Schedule of Reclassification from Accumulated Other Comprehensive Loss) (Details) (USD $) | 12 Months Ended | |
Dec. 28, 2014 | Dec. 29, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Realized gain on sale of securities | $1,000,000 | $25,620 |
Amortization of pension and other postretirement plan actuarial losses: | ||
Total before tax | 506,000 | -1,001,000 |
Tax benefit (expense) | -191,000 | 0 |
Total reclassification for the period | 315,000 | -1,001,000 |
Selling, general and administrative expenses [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Realized gain on sale of securities | 562,000 | 0 |
Selling, general and administrative expenses [Member] | Amount Reclassified from Accumulated Other Comprehensive Loss [Member] | Legacy Gold Kist Plans [Member] | ||
Amortization of pension and other postretirement plan actuarial losses: | ||
Total before tax | -56,000 | -965,000 |
Cost of goods sold [Member] | Amount Reclassified from Accumulated Other Comprehensive Loss [Member] | Union Plan [Member] | ||
Amortization of pension and other postretirement plan actuarial losses: | ||
Total before tax | $0 | ($36,000) |
STOCKHOLDERS_EQUITY_Condensed_
STOCKHOLDERS' EQUITY (Condensed Unaudited Pro Forma Consolidated Balance Sheet) (Details) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 |
In Thousands, unless otherwise specified | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $576,143 | $508,206 | $68,180 | $41,609 |
Trade accounts and other receivables, less allowance for doubtful accounts | 378,890 | 376,678 | ||
Inventories | 790,305 | 808,832 | ||
Other | 139,741 | |||
Total current assets | 1,885,079 | 1,928,982 | ||
Property, plant and equipment, net | 1,182,795 | 1,151,811 | ||
Other | 51,189 | |||
Total assets | 3,119,063 | 3,172,402 | ||
Total current liabilities | 744,858 | 1,083,398 | ||
Long-term debt, less current maturities | 3,980 | 501,999 | ||
Deferred tax liabilities | 76,216 | 13,944 | ||
Other long-term liabilities | 97,208 | 80,459 | ||
Total stockholders’ equity | 2,196,801 | 1,492,602 | 908,997 | 558,430 |
Total liabilities and stockholders' equity | 3,119,063 | 3,172,402 | ||
Scenario, Adjustment - Special Dividend [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Trade accounts and other receivables, less allowance for doubtful accounts | 0 | |||
Inventories | 0 | |||
Other | 0 | |||
Total current assets | -308,357 | |||
Property, plant and equipment, net | 0 | |||
Other | 4,357 | |||
Total assets | -304,000 | |||
Total current liabilities | 0 | |||
Long-term debt, less current maturities | 1,196,000 | |||
Deferred tax liabilities | 0 | |||
Other long-term liabilities | 0 | |||
Total stockholders’ equity | -1,500,000 | |||
Total liabilities and stockholders' equity | -304,000 | |||
Adjustment To Reflect Cash From Additional Borrowings of Long-term Debt Used to Pay Special Dividend [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 1,196,000 | |||
Adjustment for Payment of Special Cash Dividend [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | -1,500,000 | |||
Adjustment for Payment of Financing Fees [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | -4,357 | |||
Adjustment for Payment of Special Dividend from Cash on Hand [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 300,000 | |||
Pro Forma [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 267,786 | |||
Trade accounts and other receivables, less allowance for doubtful accounts | 378,890 | |||
Inventories | 790,305 | |||
Other | 139,741 | |||
Total current assets | 1,576,722 | |||
Property, plant and equipment, net | 1,182,795 | |||
Other | 55,546 | |||
Total assets | 2,815,063 | |||
Total current liabilities | 744,858 | |||
Long-term debt, less current maturities | 1,199,980 | |||
Deferred tax liabilities | 76,216 | |||
Other long-term liabilities | 97,208 | |||
Total stockholders’ equity | 696,801 | |||
Total liabilities and stockholders' equity | $2,815,063 |
INCENTIVE_COMPENSATION_Narrati
INCENTIVE COMPENSATION (Narrative) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Accrued in costs related to the STIP | $35 | |
Reserved shares of common stock for future issuance under the LTIP | 6.6 | |
Total fair value of the shares vested | 3.2 | 0.7 |
Total unrecognized compensation cost related to all nonvested awards | $5.90 | |
Weighted average period unrecognized compensation cost is expected to be recognized | 1 year 11 months 27 days |
INCENTIVE_COMPENSATION_Schedul
INCENTIVE COMPENSATION (Schedule of Awards) (Details) | 12 Months Ended |
Dec. 28, 2014 | |
RSA 2 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award Quantity | 100,000 |
Grant Date | 14-Jan-11 |
Vesting Date | 3-Jan-14 |
Estimated Forfeiture Rate | 0.00% |
RSA 3 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award Quantity | 72,675 |
Grant Date | 27-Aug-12 |
Vesting Date | 27-Apr-14 |
Estimated Forfeiture Rate | 0.00% |
RSU 1 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award Quantity | 608,561 |
Grant Date | 4-Feb-13 |
Vesting Date | 31-Dec-14 |
Estimated Forfeiture Rate | 9.66% |
RSA 4 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award Quantity | 15,000 |
Grant Date | 25-Feb-13 |
Vesting Date | 24-Feb-15 |
Estimated Forfeiture Rate | 0.00% |
RSA 5 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award Quantity | 15,000 |
Grant Date | 25-Feb-13 |
Vesting Date | 24-Feb-16 |
Estimated Forfeiture Rate | 0.00% |
RSU 2 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award Quantity | 206,933 |
Grant Date | 26-Feb-13 |
Vesting Date | 31-Dec-14 |
Estimated Forfeiture Rate | 0.00% |
RSU 3 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award Quantity | 462,518 |
Grant Date | 19-Feb-14 |
Vesting Date | 31-Dec-16 |
Estimated Forfeiture Rate | 13.49% |
INCENTIVE_COMPENSATION_Schedul1
INCENTIVE COMPENSATION (Schedule of Compensation Cost and Income Tax Benefit) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation cost | $4,928 | $3,345 | $684 |
Income tax benefit | 1,326 | 471 | 28 |
Cost of goods sold [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation cost | 395 | 361 | 0 |
Selling, general and administrative expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation cost | $4,533 | $2,984 | $684 |
INCENTIVE_COMPENSATION_Schedul2
INCENTIVE COMPENSATION (Schedule of Restricted Share and Restricted Stock Unit Activity) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Restricted Stock Awards (RSA) [Member] | |||
Number | |||
Outstanding at beginning of year (in shares) | 203 | 273 | 200 |
Granted (in shares) | 0 | 30 | 73 |
Vested (in shares) | -173 | -100 | 0 |
Outstanding at end of year (in shares) | 30 | 203 | 273 |
Weighted-Average Exercise Price | |||
Outstanding at beginning of period (in dollars per share) | $6.59 | $6.54 | $7.10 |
Granted (in dollars per share) | $0 | $8.72 | $5 |
Vested (in dollars per share) | $6.62 | $7.10 | $0 |
Outstanding at end of period (in dollars per share) | $8.72 | $6.59 | $6.54 |
Restricted Stock Units (RSU) [Member] | |||
Number | |||
Outstanding at beginning of year (in shares) | 729 | 0 | 0 |
Granted (in shares) | 463 | 815 | 0 |
Vested (in shares) | 0 | 0 | 0 |
Forfeited (in shares) | -72 | -86 | 0 |
Outstanding at end of year (in shares) | 1,120 | 729 | 0 |
Weighted-Average Exercise Price | |||
Outstanding at beginning of period (in dollars per share) | $8.81 | $0 | $0 |
Granted (in dollars per share) | $16.70 | $8.82 | $0 |
Vested (in dollars per share) | $0 | $0 | $0 |
Forfeited (in dollars per share) | $10.34 | $8.89 | $0 |
Outstanding at end of period (in dollars per share) | $11.97 | $8.81 | $0 |
RELATED_PARTY_TRANSACTIONS_Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
Related Party Transaction [Line Items] | ||
Percentage of total outstanding shares of common stock owned | 75.50% | |
Accounts payable to related parties | $4,862,000 | $3,934,000 |
Accounts receivable from related parties | 5,250,000 | 2,388,000 |
JBS USA [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable to related parties | 100,000 | 100,000 |
Accounts receivable from related parties | 3,800,000 | |
JBS USA, LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable to related parties | 4,800,000 | 3,900,000 |
Accounts receivable from related parties | 1,400,000 | 2,400,000 |
Goods from related parties in transit | 4,200,000 | |
JBS Global (UK) Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable from related parties | $100,000 | |
Parent [Member] | ||
Related Party Transaction [Line Items] | ||
Percentage of total outstanding shares of common stock owned | 75.50% |
RELATED_PARTY_TRANSACTIONS_Sch
RELATED PARTY TRANSACTIONS (Schedule of Related Party Transactions) (Details) (USD $) | 12 Months Ended | |||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | Oct. 26, 2011 | |
Related Party Transaction [Line Items] | ||||
Equity contribution under tax sharing agreement | $3,849,000 | $0 | $0 | |
Accounts payable to related parties | 4,862,000 | 3,934,000 | ||
JBS USA [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amount agreed to reimburse JBS USA for draws that support obligations of the Company and its subsidiaries | 56,500,000 | |||
Accounts payable to related parties | 100,000 | 100,000 | ||
JBS USA [Member] | Letter of Credit Fees, Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Letter of credit fees | 1,339,000 | 2,156,000 | 1,339,000 | |
JBS USA [Member] | Tax Sharing Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Equity contribution under tax sharing agreement | 3,849,000 | 0 | 0 | |
JBS USA [Member] | Draws on Letters of Credit [Member] | ||||
Related Party Transaction [Line Items] | ||||
Letters of credit issued | 56,500,000 | |||
Amount agreed to reimburse JBS USA for draws that support obligations of the Company and its subsidiaries | 56,500,000 | |||
JBS USA, LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchases from related parties | 115,337,000 | 80,809,000 | 69,048,000 | |
Sales to related parties | 39,682,000 | 61,942,000 | 206,720,000 | |
Accounts payable to related parties | 4,800,000 | 3,900,000 | ||
JBS USA, LLC [Member] | Expenditures Paid by Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Expenditures paid on our behalf/on behalf of related parties | 31,149,000 | 55,730,000 | 61,353,000 | |
JBS USA, LLC [Member] | Expenditures Paid on Behalf of Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Expenditures paid on our behalf/on behalf of related parties | 4,925,000 | 1,733,000 | 4,134,000 | |
JBS Aves Ltda. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchases from related parties | 4,072,000 | 0 | 0 | |
Seara International Ltd. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchases from related parties | 2,091,000 | 0 | 0 | |
JBS Chile Ltda [Member] | ||||
Related Party Transaction [Line Items] | ||||
Sales to related parties | 463,000 | 0 | 0 | |
JBS Global (UK) Ltd. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Sales to related parties | $255,000 | $0 | $0 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Schedule of Future Minimum Payments) (Details) (USD $) | Dec. 28, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2015 | $16,893 |
2016 | 14,019 |
2017 | 11,213 |
2018 | 8,197 |
2019 | 5,875 |
Thereafter | 3,114 |
Total | $59,311 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 28, 2011 | Dec. 12, 2012 | Sep. 28, 2014 |
Other Commitments [Line Items] | ||||||
Outstanding purchase contracts, payable in 2015 | $53.30 | |||||
Outstanding purchase contracts, payable in 2016 | 4.6 | |||||
Outstanding purchase contracts, payable in 2017 | 0.8 | |||||
Rental expense for operating leases | 15.2 | 9.6 | 14.3 | |||
Maximum potential amount of residual value guarantees | 29.7 | |||||
JBS USA [Member] | ||||||
Other Commitments [Line Items] | ||||||
Amount agreed to reimburse JBS USA for draws that support obligations of the Company and its subsidiaries | 56.5 | |||||
ERISA Litigation [Member] | ||||||
Other Commitments [Line Items] | ||||||
Asserted claims, in excess of | 35 | |||||
Breached Grower Contracts [Member] | Loss Contingencies Awarded Original Value [Member] | ||||||
Other Commitments [Line Items] | ||||||
Damages awarded | 25.8 | 25.8 | ||||
Breached Grower Contracts [Member] | Loss Contingencies Awarded Revised Value [Member] | ||||||
Other Commitments [Line Items] | ||||||
Damages awarded | 25.6 | |||||
Due To Internal Revenue Service [Member] | ||||||
Other Commitments [Line Items] | ||||||
Asserted claims | 74.7 | 29.3 | ||||
Due To Internal Revenue Service [Member] | Proceeding Accounts [Member] | ||||||
Other Commitments [Line Items] | ||||||
Asserted claims | $45.40 | |||||
Minimum [Member] | ||||||
Other Commitments [Line Items] | ||||||
Operating leases, terms of lease maturities | 1 year | |||||
Maximum [Member] | ||||||
Other Commitments [Line Items] | ||||||
Operating leases, terms of lease maturities | 10 years |
MARKET_RISKS_AND_CONCENTRATION1
MARKET RISKS AND CONCENTRATIONS (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 |
Concentration Risk [Line Items] | ||
Aggregate carrying amount of net assets | 454.5 | $359 |
Trade accounts and other receivables [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 10.80% | |
Net sales [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 8.20% | |
Workforce subject to collective bargaining agreements [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 38.10% |
BUSINESS_SEGMENT_AND_GEOGRAPHI2
BUSINESS SEGMENT AND GEOGRAPHIC REPORTING (Schedule of Net Sales and Long-lived Assets) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 29, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 30, 2012 | Sep. 23, 2012 | Jun. 24, 2012 | Mar. 25, 2012 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Number of reportable business segments | 1 | ||||||||||||||
Net sales to customers by customer location: | |||||||||||||||
Total | $2,110,435 | $2,268,048 | $2,186,817 | $2,018,065 | $2,047,285 | $2,142,816 | $2,184,118 | $2,036,929 | $2,189,662 | $2,068,478 | $1,974,469 | $1,888,773 | $8,583,365 | $8,411,148 | $8,121,382 |
Long-lived assets: | |||||||||||||||
Total | 1,182,795 | 1,151,811 | 1,182,795 | 1,151,811 | |||||||||||
United States [Member] | |||||||||||||||
Net sales to customers by customer location: | |||||||||||||||
Total | 7,067,408 | 6,816,246 | 6,600,206 | ||||||||||||
Long-lived assets: | |||||||||||||||
Total | 1,085,856 | 1,066,963 | 1,085,856 | 1,066,963 | |||||||||||
Mexico [Member] | |||||||||||||||
Net sales to customers by customer location: | |||||||||||||||
Total | 1,075,764 | 1,108,308 | 988,712 | ||||||||||||
Long-lived assets: | |||||||||||||||
Total | 96,939 | 84,848 | 96,939 | 84,848 | |||||||||||
Asia [Member] | |||||||||||||||
Net sales to customers by customer location: | |||||||||||||||
Total | 246,141 | 301,545 | 262,455 | ||||||||||||
North America [Member] | |||||||||||||||
Net sales to customers by customer location: | |||||||||||||||
Total | 80,121 | 51,275 | 111,305 | ||||||||||||
Africa [Member] | |||||||||||||||
Net sales to customers by customer location: | |||||||||||||||
Total | 49,810 | 38,809 | 62,642 | ||||||||||||
Europe [Member] | |||||||||||||||
Net sales to customers by customer location: | |||||||||||||||
Total | 44,377 | 73,349 | 79,101 | ||||||||||||
South America [Member] | |||||||||||||||
Net sales to customers by customer location: | |||||||||||||||
Total | 18,102 | 19,224 | 13,775 | ||||||||||||
Pacific [Member] | |||||||||||||||
Net sales to customers by customer location: | |||||||||||||||
Total | $1,642 | $2,392 | $3,186 |
BUSINESS_SEGMENT_AND_GEOGRAPHI3
BUSINESS SEGMENT AND GEOGRAPHIC REPORTING (Schedule of Sales by Product Lines) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 29, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 30, 2012 | Sep. 23, 2012 | Jun. 24, 2012 | Mar. 25, 2012 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Segment Reporting Information [Line Items] | |||||||||||||||
Total net sales | $2,110,435 | $2,268,048 | $2,186,817 | $2,018,065 | $2,047,285 | $2,142,816 | $2,184,118 | $2,036,929 | $2,189,662 | $2,068,478 | $1,974,469 | $1,888,773 | $8,583,365 | $8,411,148 | $8,121,382 |
U.S. Prepared chicken [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Total net sales | 1,787,389 | 2,046,747 | 2,239,289 | ||||||||||||
U.S. Fresh chicken [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Total net sales | 4,703,993 | 4,123,087 | 3,583,854 | ||||||||||||
U.S. Export and other chicken by-products [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Total net sales | 620,082 | 715,970 | 817,723 | ||||||||||||
Total U.S. chicken [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Total net sales | 7,111,464 | 6,885,804 | 6,640,866 | ||||||||||||
Mexico chicken [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Total net sales | 900,360 | 864,454 | 758,023 | ||||||||||||
Total chicken [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Total net sales | 8,011,824 | 7,750,258 | 7,398,889 | ||||||||||||
U.S. Other products [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Total net sales | 535,572 | 614,409 | 608,619 | ||||||||||||
Mexico Other products [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Total net sales | 35,969 | 46,481 | 113,874 | ||||||||||||
Total other products [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Total net sales | $571,541 | $660,890 | $722,493 |
QUARTERLY_RESULTS_UNAUDITED_De
QUARTERLY RESULTS (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 28, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 29, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 30, 2012 | Sep. 23, 2012 | Jun. 24, 2012 | Mar. 25, 2012 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Net sales | $2,110,435,000 | $2,268,048,000 | $2,186,817,000 | $2,018,065,000 | $2,047,285,000 | $2,142,816,000 | $2,184,118,000 | $2,036,929,000 | $2,189,662,000 | $2,068,478,000 | $1,974,469,000 | $1,888,773,000 | $8,583,365,000 | $8,411,148,000 | $8,121,382,000 |
Gross profit | 379,148,000 | 450,265,000 | 349,476,000 | 215,106,000 | 207,925,000 | 236,573,000 | 282,507,000 | 118,434,000 | 75,543,000 | 106,135,000 | 144,089,000 | 110,065,000 | 1,393,995,000 | 845,439,000 | 435,832,000 |
Net income attributable to PPC common stockholders | 167,188,000 | 255,983,000 | 190,360,000 | 98,117,000 | 143,352,000 | 160,917,000 | 190,704,000 | 54,582,000 | 22,773,000 | 42,931,000 | 69,357,000 | 39,173,000 | 711,648,000 | 549,555,000 | 174,234,000 |
Net income per share amounts - basic (in dollars per share) | $0.65 | $0.99 | $0.74 | $0.38 | $2.75 | $2.12 | $0.70 | ||||||||
Net income per share amounts - diluted (in dollars per share) | $0.64 | $0.99 | $0.73 | $0.38 | $2.74 | $2.12 | $0.70 | ||||||||
Net income per share amounts - basic and diluted (in dollars per share) | $0.55 | $0.62 | $0.74 | $0.21 | $0.09 | $0.17 | $0.27 | $0.18 | $2.12 | $0.70 | |||||
Number of days in quarter | 91 days | 91 days | 91 days | 91 days | 91 days | 91 days | 91 days | 91 days | 98 days | 91 days | 91 days | 91 days | 364 days | 364 days | 371 days |
Total exit or disposal costs | 500,000 | 1,100,000 | |||||||||||||
Asset impairment charges | $500,000 | $1,400,000 | $0 | $4,004,000 | $2,770,000 |
SCHEDULE_II_VALUATION_AND_QUAL1
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Allowance For Doubtful Accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning Balance | $4,056 | $3,757 | $5,163 |
Additions, Charged to Operating Results | 520 | 1,668 | -1,629 |
Additions, Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 2,051 | 1,369 | -223 |
Ending Balance | 2,525 | 4,056 | 3,757 |
Allowance For Sales Returns [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning Balance | 7,089 | 10,152 | 8,030 |
Additions, Charged to Operating Results | 220,123 | 159,417 | 147,126 |
Additions, Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 219,787 | 162,480 | 145,004 |
Ending Balance | 7,425 | 7,089 | 10,152 |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning Balance | 10,400 | 188,354 | 230,336 |
Additions, Charged to Operating Results | -1,250 | -164,180 | -50,455 |
Additions, Charged to Other Accounts | 0 | -13,774 | 8,473 |
Deductions | 0 | 0 | 0 |
Ending Balance | $9,150 | $10,400 | $188,354 |