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RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended
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Dec. 31, 2017
Related Party Transactions [Abstract] |
Schedule of Related Party Transactions | Pilgrim's has been and, in some cases, continues to be a party to certain transactions with affiliated companies.
| 2017 |  | 2016 |  | 2015
| (In thousands)
Sales to related parties: |  |  |  |  |
JBS USA Food Company(c) | $ | 15,289 |  |  | $ | 16,534 |  |  | $ | 21,743 |
JBS Five Rivers | 31,004 |  |  | 14,126 |  |  | — |
JBS Global (UK) Ltd. | 44 |  |  | 122 |  |  | 305 |
JBS Chile Ltda. | 178 |  |  | 615 |  |  | 100 |
J&F Investimentos Ltd. | 104 |  |  | 69 |  |  | — |
JBS S.A. | — |  |  | — |  |  | — |
Seara International Ltd. | 104 |  |  | 4 |  |  | — |
JBS Toledo | — |  |  | 143 |  |  | — |
Rigamonti Salumificio S.P.A. | — |  |  | 3 |  |  | — |
Total sales to related parties | $ | 46,723 |  |  | $ | 31,616 |  |  | $ | 22,148 |
Cost of goods purchased from related parties: |  |  |  |  |
JBS USA Food Company(c) | $ | 101,685 |  |  | $ | 139,476 |  |  | $ | 103,542 |
Seara Meats B.V. | 13,949 |  |  | 21,038 |  |  | 3,381 |
JBS S.A. | — |  |  | — |  |  | — |
Seara International Ltd. | 11,236 |  |  | 2,746 |  |  | 2,784 |
JBS Toledo | 231 |  |  | 123 |  |  | — |
Macedo Agroindustrial Ltda. | — |  |  | — |  |  | 60 |
Rigamonti Salumificio S.P.A. | — |  |  | 15 |  |  | — |
Total cost of goods purchased from related parties | $ | 127,101 |  |  | $ | 163,398 |  |  | $ | 109,767 |
Expenditures paid by related parties: |  |  |  |  |
JBS USA Food Company(d) | $ | 40,313 |  |  | $ | 40,519 |  |  | $ | 40,611 |
JBS S.A. | 3,777 |  |  | 8,125 |  |  | — |
Seara Alimentos | 64 |  |  | — |  |  | — |
Total expenditures paid by related parties | $ | 44,154 |  |  | $ | 48,644 |  |  | $ | 40,611 |
Expenditures paid on behalf of related parties: |  |  |  |  |
JBS USA Food Company(d) | $ | 5,376 |  |  | $ | 10,586 |  |  | $ | 3,998 |
JBS Toledo | — |  |  | — |  |  | — |
JBS S.A. | 5 |  |  | 86 |  |  | 29 |
Seara International Ltd. | — |  |  | 72 |  |  | 29 |
Seara Meats B.V. | 12 |  |  | — |  |  | — |
Rigamonti Salumificio S.P.A. | — |  |  | 3 |  |  | — |
Total expenditures paid on behalf of related parties | $ | 5,393 |  |  | $ | 10,747 |  |  | $ | 4,056 |
Other related party transactions: |  |  |  |  |
Letter of credit fees(a) | $ | — |  |  | $ | 202 |  |  | $ | 1,268 |
Capital contribution under tax sharing agreement(b) | 5,558 |  |  | 5,038 |  |  | 3,690 |
Total other related party transactions | $ | 5,558 |  |  | $ | 5,240 |  |  | $ | 4,958 |
| 2017 |  | 2016
| (In thousands)
Accounts receivable from related parties: |  |  |
JBS USA Food Company(c) | $ | 2,826 |  |  | $ | 3,754 |
JBS Chile Ltda. | 108 |  |  | 159 |
JBS S.A. | — |  |  | 46 |
Seara International Ltd. | 15 |  |  | 51 |
Seara Meats B.V. | 2 |  |  | — |
Total accounts receivable from related parties | $ | 2,951 |  |  | $ | 4,010 |
Accounts payable to related parties: |  |  |
JBS USA Food Company(c) | $ | 440 |  |  | $ | 1,421 |
Seara Meats B.V. | 2,410 |  |  | 3,026 |
JBS Toledo | 39 |  |  | 21 |
Total accounts payable to related parties | $ | 2,889 |  |  | $ | 4,468 |
(a) | JBS USA Food Company Holdings (“JBS USA Holdings”) arranged for letters of credit to be issued on its account in the aggregate 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 workers’ compensation, auto liability and general liability claims. In return for providing this letter of credit, the Company has agreed to reimburse JBS USA Holdings for the letter of credit fees the Company would otherwise incur under its U.S. Credit Facility. The letter of credit arrangements for $40.0 million and $16.5 million were terminated on March 7, 2016 and April 1, 2016, respectively. During 2016, the Company paid JBS USA Holdings $0.2 million for letter of credit fees.
(b) | The Company entered into a tax sharing agreement during 2014 with JBS USA Holdings effective for tax years starting 2010. The net tax receivable for tax year 2017 was accrued in 2017 and will be paid in 2018. The net tax receivable for tax year 2016 was accrued in 2016 and paid in January 2017. The net tax receivable for tax year 2015 was accrued in 2015 and paid in January 2016. The net tax receivable for tax years 2010 through 2014 was accrued in 2014 and paid in January 2015.
(c) | We routinely execute transactions to both purchase products from JBS USA Food Company (“JBS USA”) and sell products to them. As of December 31, 2017 and December 25, 2016, the outstanding payable to JBS USA was $0.4 million and $1.4 million, respectively. As of December 31, 2017 and December 25, 2016, the outstanding receivable from JBS USA was $2.8 million and $3.8 million, respectively. As of December 31, 2017, approximately $1.7 million of goods from JBS USA were in transit and not reflected on our Consolidated and Combined Balance Sheet.
(d) | The Company has an agreement with JBS USA to allocate costs associated with JBS USA’s procurement of SAP licenses and maintenance services for both companies. Under this agreement, the fees associated with procuring SAP licenses and maintenance services are allocated between the Company and JBS USA in proportion to the percentage of licenses used by each company. The agreement expires on the date of expiration, or earlier termination, of the underlying SAP license agreement. The Company also has an agreement with JBS USA to allocate the costs of supporting the business operations by one consolidated corporate team, which have historically been supported by their respective corporate teams. Expenditures paid by JBS USA on behalf of the Company will be reimbursed by the Company and expenditures paid by the Company on behalf of JBS USA will be reimbursed by JBS USA. This agreement expires on December 31, 2019.

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- Definition Tabular disclosure of related party transactions. Examples of related party transactions include, but are not limited to, 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 No definition available. + Details
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