Transactions with JBS USA and JBS USA, LLC (a JBS USA subsidiary) recognized in the Condensed Consolidated Statements of Income are summarized below:



	Thirteen Weeks Ended		Thirty-Nine Weeks Ended
	September 28, 2014	September 29, 2013	September 28, 2014	September 29, 2013
	(In thousands)
JBS USA:
Letter of credit fees^(a)	335	513	1,005	1,697
JBS USA, LLC:
Purchases from JBS USA, LLC^(b)	31,994	19,155	85,333	59,945
Expenditures paid by JBS USA, LLC on behalf of Pilgrim’s Pride Corporation(c)	2,099	11,281	21,013	34,659
Sales to JBS USA, LLC^(b)	2,763	13,996	36,234	49,263
Expenditures paid by Pilgrim’s Pride Corporation on behalf of JBS USA, LLC(c)	891	630	2,197	1,313

(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 $1.0 million for letter of credit costs. As of September 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)

We routinely execute transactions to both purchase products from JBS USA, LLC and sell products to them. As of September 28, 2014 and December 29, 2013, the outstanding payable to JBS USA, LLC was $2.0 million and $3.9 million, respectively. As of September 28, 2014 and December 29, 2013, the outstanding receivable from JBS USA, LLC was $0.2 million and $2.4 million, respectively. As of September 28, 2014, approximately $1.0 million of goods from JBS USA, LLC were in transit and not reflected on our Condensed Consolidated Balance Sheet.

(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.