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SEGMENT REPORTING | 6 Months Ended
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Jul. 01, 2018
Segment Reporting [Abstract] |
SEGMENT REPORTING | SEGMENT REPORTING The Company operates in three reportable segments: U.S., U.K. and Europe, and Mexico. The Company measures segment profit as operating income. Corporate expenses are allocated to Mexico based upon various apportionment methods for specific expenditures incurred related thereto with the remaining amounts allocated to the U.S. On September 8, 2017, the Company acquired Moy Park, one of the top food companies in the U.K., Northern Ireland's largest private sector business and one of Europe's leading poultry producers, from JBS S.A. in a common-control transaction. Moy Park's results from operations subsequent to the common-control date of September 30, 2015 comprise the U.K. and Europe segment. On January 6, 2017, the Company acquired GNP, a vertically integrated poultry business with locations in Minnesota and Wisconsin. GNP's results from operations subsequent to the acquisition date are included in the U.S. segment. Information on segments and a reconciliation to income before income taxes are as follows:
| Thirteen Weeks Ended |  | Twenty-Six Weeks Ended
| July 1, 2018 |  | June 25, 2017 |  | July 1, 2018 |  | June 25, 2017
| (In thousands)
U.S. | $ | 1,899,435 |  |  | $ | 1,882,142 |  |  | $ | 3,740,540 |  |  | $ | 3,618,547 |
U.K. and Europe | 563,102 |  |  | 500,681 |  |  | 1,107,402 |  |  | 959,530 |
Mexico | 374,176 |  |  | 369,463 |  |  | 735,449 |  |  | 653,549 |
Total net sales | $ | 2,836,713 |  |  | $ | 2,752,286 |  |  | $ | 5,583,391 |  |  | $ | 5,231,626 |
| Thirteen Weeks Ended |  | Twenty-Six Weeks Ended
| July 1, 2018 |  | June 25, 2017 |  | July 1, 2018 |  | June 25, 2017
| (In thousands)
U.S. | $ | 99,469 |  |  | $ | 277,602 |  |  | $ | 226,755 |  |  | $ | 411,159 |
U.K. and Europe | 23,662 |  |  | 18,932 |  |  | 45,075 |  |  | 33,305 |
Mexico | 61,997 |  |  | 81,778 |  |  | 114,867 |  |  | 100,549 |
Elimination | (16 | ) |  | 23 |  |  | 8 |  |  | 46 |
Total operating income | 185,112 |  |  | 378,335 |  |  | 386,705 |  |  | 545,059 |
Interest expense, net of capitalized interest | 40,267 |  |  | 22,567 |  |  | 90,567 |  |  | 41,679 |
Interest income | (4,834 | ) |  | (1,104 | ) |  | (6,424 | ) |  | (1,472 | )
Foreign currency transaction losses (gains) | 5,630 |  |  | (2,303 | ) |  | 3,909 |  |  | (1,612 | )
Miscellaneous, net | (817 | ) |  | (1,272 | ) |  | (2,434 | ) |  | (4,115 | )
Income before income taxes | $ | 144,866 |  |  | $ | 360,447 |  |  | $ | 301,087 |  |  | $ | 510,579 |
In addition to the net sales reported above, the U.S. segment also generated intersegment net sales of $45.6 million and $25.3 million in the thirteen weeks ended July 1, 2018 and June 25, 2017, respectively, from transactions with the Mexico segment and intersegment net sales of $72.1 million and $45.8 million in the twenty-six weeks ended July 1, 2018 and June 25, 2017, respectively, from transactions with the Mexico segment. These intersegment net sales were transacted at market prices. Information on segments for goodwill and total assets are as follows:
| July 1, 2018 |  | December 31, 2017
| (In thousands)
U.S. | $ | 41,936 |  |  | $ | 41,936 |
U.K. and Europe | 815,017 |  |  | 834,346 |
Mexico | 125,607 |  |  | 125,607 |
Total goodwill | $ | 982,560 |  |  | $ | 1,001,889 |
| July 1, 2018 |  | December 31, 2017
| (In thousands)
U.S. | $ | 4,850,511 |  |  | $ | 4,444,918 |
U.K. and Europe | 2,049,592 |  |  | 2,226,895 |
Mexico | 963,869 |  |  | 934,511 |
Eliminations(a) | (1,561,403 | ) |  | (1,357,672 | )
Total assets | $ | 6,302,569 |  |  | $ | 6,248,652 |
(a) | Eliminations for the period ended July 1, 2018 include the elimination of the U.S. segment's $191.7 million investment in the Mexico segment, the elimination of $111.0 million in intersegment receivables and payables between the U.S. and Mexico segments and the elimination of the U.S. segment's $1.3 billion investment in the U.K. and Europe segment. Eliminations for the period ended December 31, 2017 include the elimination of the U.S. segment's $191.7 million investment in the Mexico segment and the elimination of $111.1 million in intersegment receivables and payables between the U.S. and Mexico segments and the elimination of the U.S. segment's $1.1 billion investment in the U.K. and Europe segment.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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