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RELATED PARTY TRANSACTIONS | 9 Months Ended
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Sep. 27, 2015
Related Party Transactions [Abstract] |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS The Company enters into transactions in the normal course of business with affiliates of JBS S.A. 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. The following table presents the impact of these transactions on the Condensed Consolidated Statements of Income:
| Thirteen Weeks Ended |  | Thirty-Nine Weeks Ended
| September 27, 2015 |  | September 28, 2014 |  | September 27, 2015 |  | September 28, 2014
| (In thousands)
JBS USA: |  |  |  |  |  |  |
Letter of credit fees(a) | $ | 317 |  |  | $ | 335 |  |  | $ | 950 |  |  | $ | 1,005 |
JBS USA, LLC: |  |  |  |  |  |  |
Purchases from JBS USA, LLC(b) | 28,765 |  |  | 31,994 |  |  | 83,059 |  |  | 85,333 |
Expenditures paid by JBS USA, LLC on behalf of Pilgrim’s Pride Corporation(c) | 11,514 |  |  | 2,099 |  |  | 28,483 |  |  | 21,013 |
Sales to JBS USA, LLC(b) | 5,197 |  |  | 2,763 |  |  | 17,442 |  |  | 36,234 |
Expenditures paid by Pilgrim’s Pride Corporation on behalf of JBS USA, LLC(c) | 519 |  |  | 891 |  |  | 2,548 |  |  | 2,197 |
JBS Chile Ltda.: |  |  |  |  |  |  |
Sales to JBS Chile Ltda. | 35 |  |  | — |  |  | 269 |  |  | — |
JBS Global (UK) Ltd.: |  |  |  |  |  |  |
Sales to JBS Global (UK) Ltd. | 18 |  |  | — |  |  | 49 |  |  | — |
(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 2015, we have paid JBS USA $0.7 million for letter of credit costs. As of September 27, 2015, 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 27, 2015 and December 28, 2014, the outstanding payable to JBS USA, LLC was $10.4 million and $4.8 million, respectively. As of September 27, 2015 and December 28, 2014, the outstanding receivable from JBS USA, LLC was $2.5 million and $1.4 million, respectively. As of September 27, 2015, approximately $1.7 million of goods from JBS USA, LLC were in transit and not reflected on our Condensed Consolidated Balance Sheet.
(c) | The Company has an agreement with JBS USA, LLC 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. The Company also has an agreement with JBS USA, LLC 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 December 31, 2016.
On June 25, 2015, the Company signed an intercompany revolving note to its indirect wholly-owned subsidiary, Pilgrim's Pride S. de R.L. de C.V., in a principal amount of $100.0 million. The note bears interest based on three-month LIBOR plus a margin of 2.5% and has a maturity date of June 24, 2020. The proceeds of the note were used to fund a portion of the purchase price of the acquisition of Tyson Mexico (as defined in “Note 2. Business Acquisition”). Interest is payable quarterly and principal is due upon maturity. The outstanding note balance eliminates upon consolidation. As of September 27, 2015, outstanding borrowings totaled $64.5 million. On December 28, 2009, JBS USA became the holder of the majority of the common stock of the Company. As of September 27, 2015, JBS USA beneficially owned 75.8% of the total outstanding shares of the Company's common stock.

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- Definition The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39603-107864 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39622-107864 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39678-107864 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39691-107864 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(k)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph b -Article 3A + Details
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