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.