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PENSION AND OTHER POSTRETIREMENT BENEFITS | 9 Months Ended
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Sep. 25, 2022
Retirement Benefits [Abstract] |
PENSION AND OTHER POSTRETIREMENT BENEFITS | PENSION AND OTHER POSTRETIREMENT BENEFITSThe Company sponsors programs that provide retirement benefits to most of its employees. These programs include qualified defined benefit pension plans such as the Pilgrim’s Pride Retirement Plan for Union Employees (the “Union Plan”) the Pilgrim’s Pride Pension Plan for Legacy Gold Kist Employees (the “GK Pension Plan”), the Tulip Limited Pension Plan (the “Tulip Plan”) and the Geo Adams Group Pension Fund (the “Geo Adams Plan”), nonqualified defined benefit retirement plans, a defined benefit postretirement life insurance plan and defined contribution retirement savings plan. Expenses recognized under all retirement plans totaled $7.1 million and $4.3 million in the three months ended September 25, 2022 and September 26, 2021, respectively, and $23.9 million and $13.6 million in the nine months ended September 25, 2022 and September 26, 2021, respectively. Defined Benefit Plans Obligations and Assets The change in benefit obligation, change in fair value of plan assets, funded status and amounts recognized in the Condensed Consolidated Balance Sheets for the defined benefit plans were as follows:
| Nine Months Ended
| September 25, 2022 |  | September 26, 2021
| Pension Benefits |  | Other Benefits |  | Pension Benefits |  | Other Benefits
| (In thousands)
Change in projected benefit obligation: |  |  |  |  |  |  |
Projected benefit obligation, beginning of period | $ | 373,062 |  |  | $ | 1,346 |  |  | $ | 404,194 |  |  | $ | 1,593 |
Interest cost | 4,885 |  |  | 15 |  |  | 4,119 |  |  | 12 |
Actuarial gain | (105,562) |  |  | (135) |  |  | (9,873) |  |  | (20) |
Benefits paid | (9,305) |  |  | (105) |  |  | (9,792) |  |  | (113) |
Curtailments and settlements | (4,436) |  |  | — |  |  | (4,393) |  |  | — |
Currency translation loss (gain) | (22,079) |  |  | — |  |  | 2,169 |  |  | — |
Projected benefit obligation, end of period | $ | 236,565 |  |  | $ | 1,121 |  |  | $ | 386,424 |  |  | $ | 1,472 |
| Nine Months Ended
| September 25, 2022 |  | September 26, 2021
| Pension Benefits |  | Other Benefits |  | Pension Benefits |  | Other Benefits
| (In thousands)
Change in plan assets: |  |  |  |  |  |  |
Fair value of plan assets, beginning of period | $ | 326,409 |  |  | $ | — |  |  | $ | 305,983 |  |  | $ | — |
Actual return on plan assets | (80,820) |  |  | — |  |  | 28,325 |  |  | — |
Contributions by employer | 7,679 |  |  | 105 |  |  | 10,569 |  |  | 113 |
Benefits paid | (9,305) |  |  | (105) |  |  | (9,792) |  |  | (113) |
Curtailments and settlements | (4,436) |  |  | — |  |  | (4,393) |  |  | — |
Expenses paid from assets | (247) |  |  | — |  |  | (279) |  |  | — |
Currency translation gain (loss) | (21,136) |  |  | — |  |  | 1,466 |  |  | — |
Fair value of plan assets, end of period | $ | 218,144 |  |  | $ | — |  |  | $ | 331,879 |  |  | $ | — |
| September 25, 2022 |  | December 26, 2021
| Pension Benefits |  | Other Benefits |  | Pension Benefits |  | Other Benefits
| (In thousands)
Funded status: |  |  |  |  |  |  |
Unfunded benefit obligation, end of period | $ | (18,421) |  |  | $ | (1,121) |  |  | $ | (46,653) |  |  | $ | (1,346) |
| September 25, 2022 |  | December 26, 2021
| Pension Benefits |  | Other Benefits |  | Pension Benefits |  | Other Benefits
| (In thousands)
Amounts recognized in the Condensed Consolidated Balance Sheets at end of period: |  |  |  |  |  |  |
Current liability | $ | (1,934) |  |  | $ | (165) |  |  | $ | (6,063) |  |  | $ | (157) |
Long-term liability | (16,487) |  |  | (956) |  |  | (40,590) |  |  | (1,189) |
Recognized liability | $ | (18,421) |  |  | $ | (1,121) |  |  | $ | (46,653) |  |  | $ | (1,346) |
| September 25, 2022 |  | December 26, 2021
| Pension Benefits |  | Other Benefits |  | Pension Benefits |  | Other Benefits
| (In thousands)
Amounts recognized in accumulated other comprehensive loss at end of period: |  |  |  |  |  |  |
Net actuarial loss (gain) | $ | 38,294 |  |  | $ | (17) |  |  | $ | 58,143 |  |  | $ | 118 |
The accumulated benefit obligation for the Company’s defined benefit pension plans was $236.6 million and $373.1 million at September 25, 2022 and December 26, 2021, respectively. Each of the Company’s defined benefit pension plans had accumulated benefit obligations that exceeded the fair value of plan assets at both September 25, 2022 and December 26, 2021. Net Periodic Benefit Costs Net defined benefit pension and other postretirement costs included the following components:
|  | Three Months Ended |  | Nine Months Ended
|  | September 25, 2022 |  | September 26, 2021 |  | September 25, 2022 |  | September 26, 2021
|  | Pension Benefits |  | Other Benefits |  | Pension Benefits |  | Other Benefits |  | Pension Benefits |  | Other Benefits |  | Pension Benefits |  | Other Benefits
|  | (In thousands)
Interest cost |  | $ | 1,661 |  |  | $ | 5 |  |  | $ | 1,682 |  |  | $ | 4 |  |  | $ | 4,885 |  |  | $ | 15 |  |  | $ | 4,119 |  |  | $ | 12 |
Estimated return on plan assets |  | (2,519) |  |  | — |  |  | (3,170) |  |  | — |  |  | (7,533) |  |  | — |  |  | (7,626) |  |  | — |
Settlement loss |  | 229 |  |  | — |  |  | 539 |  |  | — |  |  | 1,396 |  |  | — |  |  | 1,376 |  |  | — |
Expenses paid from assets |  | 59 |  |  | — |  |  | 110 |  |  | — |  |  | 247 |  |  | — |  |  | 279 |  |  | — |
Amortization of net loss |  | 342 |  |  | — |  |  | 607 |  |  | — |  |  | 910 |  |  | — |  |  | 1,553 |  |  | 1 |
Amortization of past service cost |  | 4 |  |  | — |  |  | 6 |  |  | — |  |  | 13 |  |  | — |  |  | 14 |  |  | — |
Net costs(a) |  | $ | (224) |  |  | $ | 5 |  |  | $ | (226) |  |  | $ | 4 |  |  | $ | (82) |  |  | $ | 15 |  |  | $ | (285) |  |  | $ | 13 |
(a) Net costs are included in the line item Miscellaneous, net on the Condensed Consolidated Statements of Income. Economic Assumptions The weighted average assumptions used in determining pension and other postretirement plan information were as follows:
| September 25, 2022 |  | December 26, 2021
| Pension Benefits |  | Other Benefits |  | Pension Benefits |  | Other Benefits
Assumptions used to measure benefit obligation at end of period: |  |  |  |  |  |  |
Discount rate | 4.97 | % |  | 4.53 | % |  | 2.23 | % |  | 2.38 | %
| Nine Months Ended
| September 25, 2022 |  | September 26, 2021
| Pension Benefits |  | Other Benefits |  | Pension Benefits |  | Other Benefits
Assumptions used to measure net pension and other postretirement cost: |  |  |  |  |  |  |
Discount rate | 2.40 | % |  | 2.38 | % |  | 1.87 | % |  | 1.80 | %
Expected return on plan assets | 3.31 | % |  | NA |  | 3.53 | % |  | NA
Unrecognized Benefit Amounts in Accumulated Other Comprehensive Loss The amounts in accumulated other comprehensive loss that were not recognized as components of net periodic benefits cost and the changes in those amounts are as follows:
| Nine Months Ended
| September 25, 2022 |  | September 26, 2021
| Pension Benefits |  | Other Benefits |  | Pension Benefits |  | Other Benefits
| (In thousands)
Net actuarial loss, beginning of period | $ | 58,143 |  |  | $ | 118 |  |  | $ | 95,522 |  |  | $ | 174 |
Amortization | (923) |  |  | — |  |  | (1,567) |  |  | (1) |
Settlement adjustments | (1,396) |  |  | — |  |  | (1,376) |  |  | — |
Actuarial gain | (105,562) |  |  | (135) |  |  | (9,873) |  |  | (20) |
Asset loss (gain) | 88,353 |  |  | — |  |  | (20,699) |  |  | — |
Currency translation loss (gain) | (321) |  |  | — |  |  | 508 |  |  | — |
Net actuarial loss (gain), end of period | $ | 38,294 |  |  | $ | (17) |  |  | $ | 62,515 |  |  | $ | 153 |
Remeasurement The Company remeasures both plan assets and obligations on a quarterly basis. Defined Contribution Plans The Company sponsors two defined contribution retirement savings plans in the U.S. reportable segment for eligible U.S. and Puerto Rico employees. The Company maintains three postretirement plans for eligible employees in the Mexico reportable segment, as required by Mexico law, which primarily cover termination benefits. The Company maintains seven defined contribution retirement savings plans in the U.K. and Europe reportable segment for eligible U.K. and Europe employees, as required by U.K. and Europe law. The Company’s expenses related to its defined contribution plans totaled $6.6 million in the three months ended September 25, 2022 and $21.0 million in the nine months ended September 25, 2022.

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