v3.25.4
RESTRUCTURING-RELATED ACTIVITIES
 12 Months Ended
Dec. 28, 2025
Restructuring and Related Activities [Abstract]  
RESTRUCTURING-RELATED ACTIVITIES RESTRUCTURING-RELATED ACTIVITIES
In 2022, the Company began restructuring initiatives in its Europe reportable segment. Additional restructuring initiatives also commenced in 2023 and 2024. The purpose of our ongoing restructuring activities is to integrate central operations and reallocate processing capacities between production facilities resulting in closures of some facilities in the Europe reportable segment.
The following table provides a summary of our estimates of timelines and costs associated with these restructuring initiatives by major type of cost:
Pilgrim’s Food Masters 2024
Pilgrim’s Europe Central
Total
(In thousands)
Earliest implementation dateApril 2024January 2024
Predominant completion dateMarch 2025June 2025
Costs incurred and expected to be incurred
Employee-related costs$19,413 $53,350 $72,763 
Asset impairment costs10,865 1,855 12,720 
Contract termination costs845 1,745 2,590 
Other exit and disposal costs(a)
7,938 5,584 13,522 
Total exit and disposal costs(b)
$39,061 $62,534 $101,595 
Costs incurred since earliest implementation date
Employee-related costs$19,413 $53,350 $72,763 
Asset impairment costs10,865 1,855 12,720 
Contract termination costs845 1,745 2,590 
Other exit and disposal costs(a)
7,938 5,584 13,522 
Total exit and disposal costs(b)
$39,061 $62,534 $101,595 
(a)Comprised of other costs directly related to the restructuring initiatives including flock depletion, the write-off of prepaid maintenance costs, consulting fees, and costs to return leased assets to original configuration.
(b)All costs, except for asset impairment costs, are estimated to result in cash outlays.
During 2025, the Company recognized the following expenses and paid the following cash related to each restructuring initiative:
ExpensesCash Outlays
(In thousands)
Pilgrim’s Food Masters 2024$(1,672)$4,676 
Pilgrim’s Europe Central29,839 24,591 
Prior programs substantially complete3,187 2,480 
Total$31,354 $31,747 
These expenses are reported in the line item Restructuring activities on the Consolidated Statements of Income.
The following tables reconcile liabilities and reserves associated with each restructuring initiative during 2025. Ending liability balances for employee termination benefits and other charges are reported in the line item Accrued expenses and other current liabilities in our Consolidated Balance Sheets. The ending reserve balance for inventory adjustments is reported in the line item Inventories in our Consolidated Balance Sheets. During 2025, there were no material movements in reserves related to substantially completed programs. These programs have been excluded from the tables below.
Pilgrim’s Food Masters 2024
Liability or reserve as of December 29, 2024Restructuring charges incurredCash payments and disposalsCurrency translationLiability or reserve as of December 28, 2025
(In thousands)
Employee retention benefits$76 $139 $(218)$3 $— 
Severance1,620 (354)(1,332)66 — 
Asset impairment— 58 (58)— — 
Inventory adjustments— (34)34 — — 
Lease termination290 (302)(6)18 — 
Other charges4,787 (1,179)(3,126)245 727 
Total$6,773 $(1,672)$(4,706)$332 $727 
Pilgrim’s Europe Central
Liability or reserve as of December 29, 2024Restructuring charges incurredCash payments and disposalsCurrency translationLiability or reserve as of December 28, 2025
(In thousands)
Employee retention benefits$— $(173)$173 $— $— 
Severance2,823 25,566 (23,685)886 5,590 
Asset impairment— 31 (31)— — 
Inventory adjustments91 — (96)5 — 
Lease termination— 2,172 (2,293)121 — 
Other charges67 2,246 (6)28 2,335 
Contract termination1,223 (3)(1,073)80 227 
Total$4,204 $29,839 $(27,011)$1,120 $8,152