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INCENTIVE COMPENSATION | 12 Months Ended
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Dec. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
INCENTIVE COMPENSATION | INCENTIVE COMPENSATION The Company sponsors a short-term incentive plan that provides the grant of either cash or share-based bonus awards payable upon achievement of specified performance goals (the “STIP”). Full-time, salaried exempt employees of the Company and its affiliates who are selected by the administering committee are eligible to participate in the STIP. Certain full-time, salaried employees of the Company’s Mexico operations are eligible to participate in the Pilgrim’s Mexico Incentive Plan (“PMIP”). At December 30, 2018, the Company has accrued $11.1 million in costs related to cash bonus awards that could potentially be awarded under the STIP and the PMIP during 2019. The Company assumed responsibility for the JFC LLC Long-Term Equity Incentive Plan dated January 1, 2014, as amended (the “JFC LTIP”) through its acquisition of GNP on January 6, 2017. The Company has accrued $2.2 million in costs related to the JFC LTIP at December 30, 2018. The Company assumed responsibility for the Moy Park Incentive Plan dated January 1, 2013, as amended (the “MPIP”) through its acquisition of Moy Park on September 8, 2017. The Company has accrued $6.2 million in costs related to the MPIP at December 30, 2018. The Company also sponsors a performance-based, omnibus long-term incentive plan that provides for the grant of a broad range of long-term equity-based and cash-based awards to the Company’s officers and other employees, members of the Board and any consultants (the “LTIP”). The equity-based awards that may be granted under the LTIP include “incentive stock options,” within the meaning of the IRC, nonqualified stock options, stock appreciation rights, restricted stock awards (“RSAs”) and restricted stock units (“RSUs”). At December 30, 2018, we have reserved approximately 4.1 million shares of common stock for future issuance under the LTIP. The following awards were outstanding during 2018:
Award Type |  | Benefit Plan |  | Awards Granted |  | Grant Date |  | Grant Date Fair Value per Award(a) |  | Vesting Condition |  | Vesting Date |  | Awards Forfeited to Date |  | Settlement Method
RSU |  | LTIP |  | 389,424 |  |  | 01/19/2017 |  | 18.38 |  | Performance / Service |  | (b) |  | 389,424 |  | (b) | Stock
RSU |  | LTIP |  | 410,000 |  |  | 02/14/2018 |  | 25.59 |  | Service |  | 01/01/2019 |  | — |  |  | Stock
RSU |  | LTIP |  | 163,764 |  |  | 03/01/2018 |  | 24.93 |  | Service |  | (c) |  | 12,107 |  |  | Stock
RSU |  | LTIP |  | 266,478 |  |  | 03/01/2018 |  | 24.93 |  | Performance / Service |  | (d) |  | 32,452 |  |  | Stock
RSU |  | LTIP |  | 11,144 |  |  | 05/10/2018 |  | 21.54 |  | (e) |  | (e) |  | — |  |  | Stock
RSU |  | LTIP |  | 262,500 |  |  | 12/18/2018 |  | 16.06 |  | Service |  | 07/01/2019 |  | — |  |  | Stock
(a) | The fair value of each RSU granted or vested represents the closing price of the Company’s common stock on the respective grant date or vesting date.
(b) | Performance conditions associated with these awards were not satisfied. Therefore, 100% of the awards were forfeited during 2018.
(c) | These restricted stock units vest in ratable tranches on December 31, 2018, December 31, 2019 and December 31, 2020. Expected compensation cost related to these units totals $4.1 million based on a closing stock price for the Company’s common stock of $24.93 per share on March 1, 2018. Compensation cost will be amortized to profit/loss over the remaining vesting period.
(d) | If performance conditions related to the Company's 2018 operating results are satisfied, these restricted stock units vest in ratable tranches on December 31, 2019, December 31, 2020 and December 31, 2021. Expected compensation cost related to these units before considering the impact of individual participant forfeitures totals $6.6 million based on a closing stock price for the Company's common stock of $24.93 per share on March 1, 2018. Compensation cost will be amortized to profit/loss upon satisfaction of the performance conditions over the remaining vesting period.
(e) | These restricted stock units were granted to the four non-employees who currently serve on the Company's Board of Directors. Each participating director's units will vest upon his departure from the Company's Board of Directors. Compensation cost was recognized in profit/loss upon the grant date.
Compensation costs and the income tax benefit recognized for our share-based compensation arrangements are included below:
| 2018 |  | 2017 |  | 2016
| (In thousands)
Share-based compensation cost: |  |  |  |  |
Cost of sales | $ | 389 |  |  | $ | 256 |  |  | $ | 770 |
Selling, general and administrative expenses | 12,764 |  |  | 2,763 |  |  | 5,332 |
Total | $ | 13,153 |  |  | $ | 3,019 |  |  | $ | 6,102 |
Income tax benefit | $ | 3,202 |  |  | $ | 1,006 |  |  | $ | 1,858 |
The Company’s RSU activity is included below:
| 2018 |  | 2017 |  | 2016
| Number |  | Weighted Average Grant Date Fair Value |  | Number |  | Weighted Average Grant Date Fair Value |  | Number |  | Weighted Average Grant Date Fair Value
| (In thousands, except weighted average fair values)
Outstanding at beginning of year | 389 |  |  | $ | 18.39 |  |  | 906 |  |  | $ | 20.00 |  |  | 774 |  |  | $ | 18.78 |
Granted | 1,114 |  |  | 23.05 |  |  | 461 |  |  | 18.72 |  |  | 325 |  |  | 24.35 |
Vested | — |  |  | — |  |  | (714 | ) |  | 18.09 |  |  | — |  |  | — |
Forfeited | (434 | ) |  | 19.06 |  |  | (264 | ) |  | 25.33 |  |  | (193 | ) |  | 24.51 |
Outstanding at end of year | 1,069 |  |  | $ | 22.97 |  |  | 389 |  |  | $ | 18.39 |  |  | 906 |  |  | $ | 20.00 |
The total fair value of awards vested in 2017 was $16.3 million. No awards vested in 2018 or 2016. At December 30, 2018, the total unrecognized compensation cost related to all nonvested awards was $11.4 million. That cost is expected to be recognized over a weighted average period of 1.42 years. Historically, we have issued new shares to satisfy award conversions.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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