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BUSINESS SEGMENT AND GEOGRAPHIC REPORTING | 12 Months Ended
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Dec. 30, 2018
Segment Reporting [Abstract] |
BUSINESS SEGMENT AND GEOGRAPHIC REPORTING | BUSINESS SEGMENT AND GEOGRAPHIC REPORTING The Company operates in three reportable business 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-ten 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. Net sales to customers by customer location and long-lived assets are as follows:
|  | December 30, 2018 |  | December 31, 2017 |  | December 25, 2016
|  | (In thousands)
Net sales |  |  |  |  |  |
U.S. |  | $ | 7,425,661 |  |  | $ | 7,443,222 |  |  | $ | 6,671,403 |
U.K. and Europe |  | 2,148,666 |  |  | 1,996,319 |  |  | 1,947,441 |
Mexico |  | 1,363,457 |  |  | 1,328,322 |  |  | 1,259,720 |
Total |  | $ | 10,937,784 |  |  | $ | 10,767,863 |  |  | $ | 9,878,564 |
|  | December 30, 2018 |  | December 31, 2017 |  | December 25, 2016
|  | (In thousands)
Operating income |  |  |  |  |  |
U.S. |  | $ | 291,381 |  |  | $ | 841,492 |  |  | $ | 572,558 |
U.K. and Europe |  | 84,524 |  |  | 77,105 |  |  | 78,572 |
Mexico |  | 119,649 |  |  | 153,631 |  |  | 140,857 |
Elimination |  | 132 |  |  | 94 |  |  | 95 |
Total operating income |  | $ | 495,686 |  |  | $ | 1,072,322 |  |  | $ | 792,082 |
Interest expense, net of capitalized interest |  | 162,812 |  |  | 107,183 |  |  | 75,636 |
Interest income |  | (13,811 | ) |  | (7,730 | ) |  | (2,301 | )
Foreign currency transaction gain |  | 17,160 |  |  | (2,659 | ) |  | 4,055 |
Miscellaneous, net |  | (2,702 | ) |  | (6,538 | ) |  | (9,344 | )
Income before income taxes |  | $ | 332,227 |  |  | $ | 982,066 |  |  | $ | 724,036 |
|  | December 30, 2018 |  | December 31, 2017 |  | December 25, 2016
|  | (In thousands)
Net sales to customers by customer location: |  |  |  |  |  |
U.S. |  | $ | 7,173,280 |  |  | $ | 7,452,758 |  |  | $ | 6,460,787 |
Mexico |  | 1,411,727 |  |  | 1,019,170 |  |  | 1,180,947 |
Asia |  | 158,864 |  |  | 136,144 |  |  | 101,209 |
Canada, Caribbean and Central America |  | 26,450 |  |  | 114,543 |  |  | 152,516 |
Africa |  | 21,286 |  |  | 29,905 |  |  | 17,117 |
Europe |  | 2,134,822 |  |  | 2,000,843 |  |  | 1,952,192 |
South America |  | 10,704 |  |  | 13,279 |  |  | 11,955 |
Pacific |  | 651 |  |  | 1,221 |  |  | 1,841 |
Total |  | $ | 10,937,784 |  |  | $ | 10,767,863 |  |  | $ | 9,878,564 |
|  | December 30, 2018 |  | December 31, 2017 |  | December 25, 2016
|  | (In thousands)
Depreciation and amortization: |  |  |  |  |  |
U.S. |  | $ | 201,126 |  |  | $ | 199,749 |  |  | $ | 151,527 |
U.K. and Europe |  | 51,108 |  |  | 51,040 |  |  | 51,193 |
Mexico |  | 27,423 |  |  | 27,003 |  |  | 28,988 |
Total |  | $ | 279,657 |  |  | $ | 277,792 |  |  | $ | 231,708 |
| December 30, 2018 |  | December 31, 2017
| (In thousands)
Long-lived assets(a): |  |  |
U.S. | $ | 1,506,217 |  |  | $ | 1,437,220 |
U.K. and Europe | 359,621 |  |  | 368,521 |
Mexico | 295,864 |  |  | 289,406 |
Total | $ | 2,161,702 |  |  | $ | 2,095,147 |
(a) | For this disclosure, we exclude financial instruments, deferred tax assets and intangible assets in accordance with ASC 280-10-50-41, Segment Reporting. Long-lived assets, as used in ASC 280-10-50-41, implies hard assets that cannot be readily removed.
The following table sets forth, for the periods beginning with 2016, net sales attributable to each of our primary product lines and markets served with those products. We based the table on our internal sales reports and their classification of products.
| 2018 |  | 2017 |  | 2016
| (In thousands)
U.S. chicken: |  |  |  |  |
Fresh chicken | $ | 5,959,458 |  |  | $ | 5,700,503 |  |  | $ | 4,627,137 |
Prepared chicken | 773,983 |  |  | 950,378 |  |  | 1,269,010 |
Export and other chicken | 258,732 |  |  | 213,595 |  |  | 313,827 |
Total U.S. chicken | 6,992,173 |  |  | 6,864,476 |  |  | 6,209,974 |
U.K. and Europe chicken: |  |  |  |  |
Fresh chicken | 925,124 |  |  | 846,575 |  |  | 811,127 |
Prepared chicken | 865,864 |  |  | 792,284 |  |  | 794,880 |
Export and other chicken | 303,921 |  |  | 318,699 |  |  | 283,276 |
Total U.K. and Europe chicken | 2,094,909 |  |  | 1,957,558 |  |  | 1,889,283 |
Mexico chicken: |  |  |  |  |
Fresh chicken | 1,252,403 |  |  | 1,245,144 |  |  | 1,154,355 |
Prepared chicken | 76,860 |  |  | 58,512 |  |  | 91,289 |
Total Mexico chicken | 1,329,263 |  |  | 1,303,656 |  |  | 1,245,644 |
Total chicken | 10,416,345 |  |  | 10,125,690 |  |  | 9,344,901 |
Other products: |  |  |  |  |
U.S. | 433,488 |  |  | 578,746 |  |  | 461,429 |
U.K. and Europe | 53,757 |  |  | 38,761 |  |  | 58,158 |
Mexico | 34,194 |  |  | 24,666 |  |  | 14,076 |
Total other products | 521,439 |  |  | 642,173 |  |  | 533,663 |
Total net sales | $ | 10,937,784 |  |  | $ | 10,767,863 |  |  | $ | 9,878,564 |

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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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