What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2025-02-13 compared with 2024-02-27 · 510 added, 492 removed, 1550 unchanged (39% of the section changed)

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Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting

We have audited the accompanying consolidated balance sheets of Pilgrim's Pride Corporation and subsidiaries (the Company) as of December 31, 2023 and December 25, 2022, the related consolidated statements of income, comprehensive income, stockholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2023, and the related notes (collectively, the consolidated financial statements).

We have audited the accompanying consolidated balance sheets of Pilgrim's Pride Corporation and subsidiaries (the Company) as of December 29, 2024 and December 31, 2023, the related consolidated statements of income, comprehensive income, stockholders’ equity, and cash flows for each of the fiscal years in the three-year period ended December 29, 2024, and the related notes (collectively, the consolidated financial statements).

We also have audited the Company’s internal control over financial reporting as of December 29, 2024, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and December 25, 2022, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2023, in conformity with U.S.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 29, 2024 and December 31, 2023, and the results of its operations and its cash flows for each of the fiscal years in the three-year period ended December 29, 2024, in conformity with U.S.

generally accepted accounting principles.

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A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company;

only in accordance with authorizations of management and directors of the company;

and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

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Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that:

(1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that:

(1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Evaluation of quantitative goodwill impairment assessment

As discussed in Notes 1 and 8 to the consolidated financial statements, the goodwill balance as of December 31, 2023 was $1.3 billion, of which $1.1 billion related to reporting units within the Company’s U.K.

and Europe reportable segment.

For 2023, management elected to bypass the qualitative assessments for certain reporting units and performed quantitative goodwill impairment tests.

The Company determined that no impairment existed as of December 31, 2023.

We identified the evaluation of the quantitative goodwill impairment assessments related to certain reporting units within the Company’s U.K.

and Europe reportable segment as a critical audit matter.

Subjective auditor judgment and specialized skills and knowledge were required to evaluate certain key assumptions used in measuring fair value of the reporting units.

As discussed in Notes 1 and 8 to the consolidated financial statements, the goodwill balance as of December 29, 2024 was $1.2.

billion, of which $1.1 billion related to reporting units within the Company’s Europe reportable segment.

On July 1, 2024, the Company completed a reorganization within its Europe reportable segment.

As a result of the reorganization, the Company reassigned assets and liabilities to the reporting units and allocated goodwill.

The Company then performed pre- and post-reorganization quantitative impairment tests to determine whether the fair value of each of the reporting units was less than their carrying amounts.

We identified the evaluation of the post-reorganization quantitative goodwill impairment assessment on July 1, 2024 related to certain reporting units within the Company’s Europe reportable segment as a critical audit matter.

Subjective auditor judgment and specialized skills and knowledge were required to evaluate certain key assumptions used in measuring the fair value of the reporting units.

These key assumptions included forecasted revenue growth, forecasted margins, discount rates, and terminal growth rates.

Changes in these assumptions could have an impact on the fair value of the reporting units.

Changes in these assumptions could have had an impact on the fair value of the reporting units.

The following are the primary procedures we performed to address this critical audit matter.

We evaluated the design and tested the operating effectiveness of certain internal controls related to the Company’s quantitative goodwill impairment assessments for certain reporting units within the Company’s U.K.

and Europe reportable segment.

This included controls over the development of the key assumptions listed above.

We evaluated the design and tested the operating effectiveness of certain internal controls related to the Company’s quantitative goodwill impairment assessments as of July 1, 2024 for certain reporting units within the Company’s Europe reportable segment, including controls over the key assumptions listed above.

We evaluated the Company’s assessments by:

◦ assessing the Company’s forecasted revenue growth and forecasted margins against underlying business strategies and growth plans

◦ comparing historical results to forecasts to assess the Company’s ability to forecast.

• assessing the Company’s forecasted revenue growth and forecasted margins against underlying business strategies, growth plans, and comparable companies

• comparing historical revenue growth and margins to forecasts to assess the Company’s ability to forecast.

In addition, we involved valuation professionals with specialized skills and knowledge, who assisted in:

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We have served as the Company’s auditor since 2012.

Denver, Colorado

Kansas City, Missouri

February 13, 2025

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Restricted cash and cash equivalents 2,324 33,475

Investment in available-for-sale securities 10,220 —

Trade accounts and other receivables, less allowance for credit losses 1,004,334 1,129,178

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Prepaid expenses and other current assets 200,879 195,831

Assets held for sale 3,062 —

Total current assets 5,120,163 4,204,471

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Gains (losses) arising during the period 1,756 ( 2,565 ) ( 2,915 )

Income tax effect — — 22

Reclassification to net earnings for losses (gains) realized ( 1,849 ) 1,813 4,142

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Available-for-sale securities

Losses arising during the period ( 166 ) ( 3 ) —

Gains (losses) arising during the period 72 ( 166 ) ( 3 )

Income tax effect ( 27 ) 42 2

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Net income — — — — — 745,930 — 608 746,538

Other comprehensive loss, net of tax expense of $ 8,197

Other comprehensive loss, net of tax benefit of $ 2,478

— — — — — — ( 288,451 ) — ( 288,451 )

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Requisite service period recognition — — — — 7,400 — — — 7,400

Common stock purchased under share repurchase program — — ( 7,469 ) ( 199,553 ) — — — — ( 199,553 )

Balance at December 25, 2022 261,611 $ 2,617 ( 25,142 ) $ ( 544,687 ) $ 1,969,833 $ 1,749,499 $ ( 336,448 ) $ 12,462 $ 2,853,276

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Net income — — — — — 321,574 — 743 322,317

Other comprehensive loss, net of tax expense of $ 2,478

Other comprehensive income, net of tax expense of $ 2,083

— — — — — — 159,965 — 159,965

Capital distribution under TSA — — — — ( 1,592 ) — — — ( 1,592 )

Capital contribution under TSA — — — — 1,425 — — — 1,425

Stock-based compensation plans:

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Requisite service period recognition — — — — 7,594 — — — 7,594

Common stock purchased under share repurchase program — — ( 7,469 ) ( 199,553 ) — — — — ( 199,553 )

Balance at December 31, 2023 261,931 $ 2,620 ( 25,142 ) $ ( 544,687 ) $ 1,978,849 $ 2,071,073 $ ( 176,483 ) $ 13,205 $ 3,344,577

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Net income — — — — — 1,086,438 — 785 1,087,223

Other comprehensive income, net of tax expense of $ 2,083

Other comprehensive loss, net of tax benefit of $ 9,386

— — — — — — ( 193,817 ) — ( 193,817 )

Capital contribution under TSA — — — — 1,425 — — — 1,425

Stock-based compensation plans:

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Depreciation and amortization 433,622 419,900 403,110

Loss on early extinguishment of debt recognized as a component of interest expense 20,694 — 24,654

Loan cost amortization 7,366 4,753 5,095

Stock-based compensation activity 7,226 6,985 11,655

Deferred income tax expense (benefit) 6,675 21,295 ( 86,391 )

Gain on property disposals ( 6,052 ) ( 18,908 ) ( 1,476 )

Asset impairment 28,575 4,010 3,559

Stock-based compensation 14,873 7,226 6,985

Loss (gain) on early extinguishment of debt recognized as a component of interest expense ( 11,211 ) 20,694 —

Loan cost amortization 5,033 7,366 4,753

Deferred income tax expense 4,830 6,675 21,295

Accretion of bond discount 2,506 2,278 1,717

Loss (gain) on property disposals 1,779 ( 6,052 ) ( 18,908 )

Loss (gain) on equity method investments ( 7 ) 328 ( 2 )

Amortization of bond premium — — ( 167 )

Changes in operating assets and liabilities

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Prepaid expenses and other current assets ( 33,303 ) 17,776 18,264

Accounts payable and accrued expenses ( 68,677 ) 263,288 359,589

Accounts payable, accrued expenses and other current liabilities 126,672 ( 68,677 ) 263,288

Income taxes 109,369 ( 8,878 ) ( 142,455 )

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Acquisitions of property, plant and equipment ( 476,153 ) ( 543,816 ) ( 487,110 )

Proceeds from property insurance recoveries 20,681 16,034 —

Proceeds from property disposals 15,356 19,784 35,516

Proceeds from property insurance recoveries — 20,681 16,034

Purchase of acquired businesses, net of cash acquired — — ( 9,692 )

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Cash flows from financing activities

Proceeds from revolving line of credit and long-term borrowings 1,768,236 362,540 2,951,707

Payments on revolving line of credit, long-term borrowings and finance lease obligations ( 152,120 ) ( 1,616,321 ) ( 388,299 )

Payment of capitalized loan costs ( 19,816 ) ( 4,741 ) ( 22,293 )

Proceeds from revolving line of credit and long-term borrowings — 1,768,236 362,540

Proceeds from contribution (payment of distribution) of capital under Tax Sharing Agreement between JBS USA Holdings and Pilgrim’s Pride Corporation 1,425 ( 1,592 ) ( 1,961 )

Payment on early extinguishment of debt ( 200 ) ( 13,780 ) —

Distribution of capital under the TSA ( 1,592 ) ( 1,961 ) ( 650 )

Payment of capitalized loan costs ( 16 ) ( 19,816 ) ( 4,741 )

Purchase of common stock under share repurchase program — — ( 199,553 )

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BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Pilgrim’s Pride Corporation (referred to herein as “Pilgrim’s,” “PPC,” “the Company,” “we,” “us,” “our,” or similar terms) is one of the largest chicken producers in the world, with operations in the United States (“U.S.”), the United Kingdom (“U.K.”), Mexico, France, Puerto Rico, the Netherlands and the Republic of Ireland.

Pilgrim’s Pride Corporation (referred to herein as “Pilgrim’s,” “PPC,” “the Company,” “we,” “us,” “our,” or similar terms) is one of the largest food companies in the world, with operations in the United States (“U.S.”), the United Kingdom (“U.K.”), Mexico, France, Puerto Rico, the Netherlands and the Republic of Ireland.

Pilgrim’s is primarily a chicken producer, with pork and lamb operations in the U.K.

Pilgrim’s products are sold to foodservice, retail and frozen entrée customers.

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operations) to over 120 countries.

Our fresh products consist of refrigerated whole or cut-up chicken, selected chicken parts that are either marinated or non-marinated, primary pork cuts, added value pork, and pork ribs.

Our fresh products consist of refrigerated whole or cut-up chicken, selected chicken parts that are either marinated or non-marinated, primary pork cuts, added value pork, pork ribs and lamb products.

The Company’s prepared products include fully cooked, ready-to-cook and individually frozen chicken parts, strips, nuggets and patties, processed sausages, bacon, smoked meat, gammon joints, pre-packed meats, sandwich and deli counter meats and meat balls.

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Any reference we make to a particular year in the notes to these Consolidated Financial Statements applies to our fiscal year and not the calendar year.

Fiscal year 2024 was a 52-week fiscal year and fiscal year 2023 was a 53-week fiscal year.

The Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the U.S.

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The functional currency of the Company’s U.S.

and Mexico operations and certain holding-company subsidiaries in Luxembourg, the U.K., Malta and the Republic of Ireland is the U.S.

The functional currency of the Company’s U.K.

operations and certain holding-company subsidiaries in Luxembourg, the U.K., Malta and the Republic of Ireland is the U.S.

The functional currency of its U.K.

operations is the British pound.

The functional currency of the Company’s operations in France, the Netherlands and the Republic of Ireland is the euro.

For foreign currency-denominated entities other than the Company’s Mexico operations, translation from local currencies into U.S.

dollars is performed for most assets and liabilities using the exchange rates in effect as of the balance sheet date.

The Company has determined that there was a significant change in economic factors that necessitated a reassessment of the appropriate functional currency of the Mexico reportable segment.

The primary economic factors driving the change include 1) the recent sustained, historical strengthening of the Mexican peso against the U.S.

dollar and against other global currencies without a correlated impact on the average product sales prices of our Mexico operations and 2) a shift in the proportional volume of spend we have that is denominated in Mexican peso in relation to spend that is denominated in U.S.

As a result of this reassessment, on April 1, 2024, the Company changed the functional currency of its Mexico operations from U.S.

dollar to the Mexican peso.

The change in the functional currency was accounted for on April 1, 2024, and did not have a material impact on our consolidated financial statements.

For foreign currency-denominated entities, including the Company’s Mexico operations after April 1, 2024, translation from local currencies into U.S.

dollars is performed for assets and liabilities using the exchange rates in effect as of the balance sheet date.

Income and expense accounts are remeasured using average exchange rates for the period.

Adjustments resulting from translation of these financial records are reflected as a separate component of Accumulated other comprehensive loss in the Consolidated Balance Sheets.

For the Company’s Mexico operations, remeasurement from the Mexican peso to the U.S.

dollar is performed for monetary assets and liabilities using the exchange rate in effect as of the balance sheet date.

Remeasurement is performed for non-monetary assets using the historical exchange rate in effect on the date of each asset’s acquisition.

Income and expense accounts are remeasured using average exchange rates for the period.

Net adjustments resulting from remeasurement of these financial records are reflected in Foreign currency transaction losses (gains) in the Consolidated Statements of Income.

For the Company’s Mexico operations prior to April 1, 2024, remeasurement from the Mexican peso to U.S.

dollars was performed for monetary assets and liabilities using the exchange rate in effect as of the balance sheet date.

Remeasurement was performed for non-monetary assets using the historical exchange rate in effect on the date of each asset’s acquisition.

Income and expense accounts were remeasured using average exchange rates for the period.

Net adjustments that resulted from remeasurement of the financial records, as well as foreign currency transaction gains and losses, are reflected in Foreign currency transaction losses (gains) in the Consolidated Statements of Income.

The Company or its subsidiaries may use derivatives for the purpose of mitigating exposure to changes in foreign currency exchange rates.

Foreign currency transaction gains or losses are reported in the Consolidated Statements of Income.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Revenue Recognition

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While there may be master agreements, the contract is only established when the customer’s order is accepted by the Company.

The Company accounts for a contract, which may be verbal or written, when it is approved and committed by both

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

parties, the rights of the parties are identified along with payment terms, the contract has commercial substance and collectability is probable.

The Company accounts for a contract, which may be verbal or written, when it is approved and committed by both parties, the rights of the parties are identified along with payment terms, the contract has commercial substance and collectability is probable.

The Company evaluates the transaction for distinct performance obligations, which are the sale of its products to customers.

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The following table reconciles cash, cash equivalents, restricted cash and restricted cash equivalents as reported in the Consolidated Balance Sheets to the total of the same amounts shown in the Consolidated Statements of Cash Flows:

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 29, 2024 December 31, 2023

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Total cash, cash equivalents, restricted cash and restricted cash equivalents shown in the Consolidated Statements of Cash Flows $ 2,043,158 $ 731,223

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company’s current investments are all highly liquid investments with an original maturity of three months or less when acquired and are, therefore, considered cash equivalents.

The Company’s current investments are all highly liquid investments classified as either cash equivalents or short-term investments with an original maturity of less than one year at time of acquisition.

The Company’s current investments are comprised of fixed income securities, such as commercial paper.

These investments are classified as available-for-sale.

These securities are recorded at fair value, and unrealized holding gains and losses are recorded, net of tax, as a separate component of accumulated other comprehensive loss.

These investments are c lassified as available-for-sale.

These securities are recorded at fair value, and unrealized holding gains and losses are recorded, net of tax, as a component of accumulated other comprehensive loss.

Investments in fixed income securities with remaining maturities of less than one year and those identified by management at the time of purchase for funding operations in less than one year are classified as current assets.

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This primarily includes leg quarters, wings, tenders and offal, which are carried in inventory at the estimated recovery amounts, with the remaining amount being reflected as its breast meat cost.

The Company allocates meat costs between its various finished pork products based on a by-product costing technique that allocates the cost of the whole pig into the primal cuts by estimated yields and amounts to be recovered for certain by-product parts.

The Company allocates meat costs between its various

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

finished pork products based on a by-product costing technique that allocates the cost of the whole pig into the primal cuts by estimated yields and amounts to be recovered for certain by-product parts.

This primarily includes legs, shoulders, bellies, offal and fifth quarter parts, which are carried in inventory at the estimated recoverable amounts, with the remaining amount being reflected as our loin meat cost.

The Company values its other prepared foods products, raw materials and packaging materials at the lower of weighted average cost and net realizable value.

Work in progress is valued at the latest production cost (raw materials, packaging), finished goods are valued at the lower of the latest actual monthly production cost (raw materials, packaging and

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

direct labor) and attributable overheads and net realizable value, and engineering spares and consumables are valued at cost with an appropriate provision for obsolete engineering spares consistent with historical practice.

Work in progress is valued at the latest production cost (raw materials, packaging), finished goods are valued at the lower of the latest actual monthly production cost (raw materials, packaging and direct labor) and attributable overheads and net realizable value, and engineering spares and consumables are valued at cost with an appropriate provision for obsolete engineering spares consistent with historical practice.

Generally, the Company performs an evaluation of whether any lower of cost or net realizable value adjustments are required at the country level based on a number of factors, including:

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The Company determines if an arrangement is a lease at inception.

Operating leases are included in Operating lease assets, net, Accrued expenses and other current liabilities, and Noncurrent operating lease liability, less current maturities, in our Consolidated Balance Sheets.

Operating leases are included in Operating lease assets, net, Accrued expenses and other current liabilities, and Noncurrent operating lease liabilities, less current maturities, in our Consolidated Balance Sheets.

Finance leases are included in Property, plant and equipment, net, Current maturities of long-term debt and Long-term debt, less current maturities in our Consolidated Balance Sheets.

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Estimated useful lives for building, machinery and equipment are five to 33 years and for automobiles and trucks are three to ten years .

The charge to income resulting from amortization of assets recorded under capital leases is included with depreciation expense.

The charge to income resulting from amortization of assets recorded under capital leases is included within depreciation expense.

The Company records impairment charges on long-lived assets held for use when events and circumstances indicate that the assets may be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets.

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At the present time, the Company’s forecasts indicate that it can recover the carrying value of its assets held for use based on the projected undiscounted cash flows of the operations.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company records impairment charges on long-lived assets held for sale when the carrying amount of those assets exceeds their fair value less appropriate selling costs.

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Under the cost approach, a current cost to replace the asset new is calculated and then the estimated replacement cost is reduced to reflect the applicable decline in value resulting from physical deterioration, functional obsolescence and economic obsolescence.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Appropriate selling costs includes reasonable broker’s commissions, costs to produce title documents, filing fees, legal expenses and the like.

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Management first reviews relevant qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent), that the fair value of a reporting unit is less than the unit’s carrying amount (including goodwill).

If management determines it is more likely than not that the carrying amount of a reporting unit goodwill might be impaired, a quantitative impairment test is performed.

Management has the option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the quantitative impairment test.

Management would be able to resume performing the qualitative assessment in any subsequent period.

In 2023, the Company experienced (1) an increase in long-term treasury rates that management determined could negatively affect discount rates and (2) continued inflationary pressures impacting primarily our Moy Park and Pilgrim’s Food Masters reporting units that management determined could negatively affect our margins.

Due to these factors in 2023, management elected to bypass the qualitative assessment for all reporting units and performed a quantitative impairment test for each reporting unit with a material amount of goodwill reported as of December 31, 2023 and the results of the quantitative tests are reported below.

As of December 31, 2023, our Moy Park, Pilgrim’s Food Masters, Pilgrim’s Mexico, and Pilgrim’s U.S.

reporting units had reported goodwill of $ 784.8 million, $ 329.4 million, $ 127.8 million, and $ 41.9 million, respectively.

Our Pilgrim’s U.K.

reporting unit had reported goodwill of $ 2.3 million as of December 31, 2023, which was considered immaterial to warrant quantitative goodwill impairment testing.

To perform the quantitative assessments, Management estimated the fair value of our reporting units with material goodwill carrying amounts using an income approach (discounted cash flow method).

The method to estimate the fair value of each reporting unit involves the use of assumptions about revenue growth, margins, industry data, discount rates, and terminal growth values.

These assumptions use data from internally-developed economic projections and external industry data obtained from government authorities, such as the U.S.

Department of Agriculture, and other sources.

The margin assumptions are based on operating performance expectations, historically realized margins within each reporting units’ industries, and general macroeconomic trends.

We use the weighted average cost of capital as a proxy for the discount rates.

We consider reporting units that have a 20 % or less excess fair value over carrying amount to have a heightened risk of future goodwill impairment.

Based on the outcomes of the reporting units’ quantitative assessments, Management determined that no goodwill impairment existed in any of the reporting units’ with material carrying amounts of goodwill.

Our Moy Park reporting unit was determined to have a heightened risk of future goodwill impairment as the excess fair value over the reporting unit’s carrying amount was less than 20 %.

Some of the assumptions used in determining the fair values of the reporting units are outside the control of management and while we believe we have made reasonable estimates and assumptions to calculate these fair values, it is possible a material change could occur.

If actual results of the reporting units are not consistent with the estimates and assumptions used to calculate the fair values, it could result in material impairments of our reported goodwill.

If management determines it is more likely than not that the carrying amount of a reporting unit goodwill might be impaired, a quantitative analysis is performed.

Management performed a qualitative analysis noting that is was not more likely than not that there was goodwill impairment in any of its reporting units as of December 29, 2024.

For indefinite-lived intangible assets, an impairment loss is recognized if the carrying amount of an indefinite-lived intangible asset exceeds the estimated fair value of that intangible asset.

Management first reviews relevant qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50%) that an intangible asset is impaired.

If management determines there is an indication that the carrying amount of the intangible asset might be impaired, a quantitative impairment test is performed.

Management has the option to bypass the qualitative assessment for any indefinite-lived intangible asset in any period and proceed directly to performing the quantitative impairment test.

For 2023, management elected to bypass qualitative assessments for all indefinite-lived intangible assets and performed quantitative impairment tests and determined that no impairment existed as of December 31, 2023.

The fair value of our indefinite-life intangible assets is calculated principally using a relief-from-royalty valuation approach, which uses significant unobservable inputs as defined by the fair value hierarchy, and is believed to reflect market participant views which would exist in an exit transaction.

Under this valuation approach, we make estimates and assumptions about brand sales growth, royalty rates and discount rates based on specific brand sales projections, general economic projections, anticipated future cash flows and marketplace data.

We consider indefinite-life intangible assets that have 20% or

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

less excess fair value over carrying amount to have a heightened risk of future impairment.

Our 2022 and 2021 indefinite-life intangible assets impairment analyses did not result in an impairment charge.

In 2023, we experienced an increase in long-term treasury rates that management determined could negatively affect discount rates, which are used in estimating the fair value of the reporting units.

Therefore, management elected to bypass qualitative assessments for all indefinite-life intangible assets and performed quantitative impairment tests and determined that no material impairment existed as of December 31, 2023 .

The estimated fair values of two of our indefinite-life intangibles did not exceed their carrying values by more than 20 % at December 31, 2023.

This includes one brand within our U.K.

and Europe reportable segment and one brand in our Mexico reportable segment with carrying amounts $ 36.1 million and $ 0.8 million, respectively, as of December 31, 2023.

We generally assumed brand revenue growth rates in future years would normalize over time as we believe this is consistent with market participant views in an exit transaction.The current year results are not indicative of future market participant expectations in an exit transaction primarily due to the expected temporary impacts of continued inflationary pressures and volatile market conditions.

We do not currently consider any of our other indefinite-life intangible assets, which had aggregate carrying value of $ 543.5 million at December 31, 2023 to be at heightened risk of future impairment.

If management determines there is an indication that the carrying amount of the intangible asset might be impaired, and quantitative analysis is performed.

Management performed a qualitative analysis noting that it was not more likely than not that there was impairment for any of its indefinite-lived intangible assets as of December 29, 2024.

Identifiable intangible assets with definite lives, such as customer relationships and trade names that the Company expects to use for a limited amount of time, are amortized over their estimated useful lives on a straight-line basis.

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However, actual expenses could differ from these estimates and could result in adjustments to be recognized.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Asset Retirement Obligations

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The income tax expense of the Company is computed using the separate return method.

The provision for

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

income taxes has been determined using the asset and liability approach of accounting for income taxes.

The provision for income taxes has been determined using the asset and liability approach of accounting for income taxes.

For the unitary states, we have an obligation to make tax payments to JBS USA Holdings for our share of the unitary taxable income, which is included in taxes payable in our Consolidated Balance Sheets.

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Income Taxes” to the Consolidated Financial Statements.

On December 30, 2024 the Company entered into a tax sharing agreement (the “Tax Sharing Agreement”) with JBS USA governing the allocation, and certain payment and reimbursement obligations of U.S.

income tax liabilities and assets among the Company and its relevant U.S.

corporate subsidiaries, on the one hand, and JBS USA and its relevant U.S.

subsidiaries, on the other hand.

The Tax Sharing Agreement is effective for each tax year beginning on or after December 30, 2024 or such other date in which PPC becomes a member of the Parent Consolidated Group (as defined in the Tax Sharing Agreement).

The Tax Sharing Agreement is attached as Exhibit 10.15 to this Annual Report.

Pension and Other Postemployment Benefits

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We determine the long-term return on plan assets based on historical portfolio results and management’s expectation of the future economic environment.

Actual results that differ from our assumptions are accumulated and, if in excess of the lesser of 10% of the projected benefit obligation or the fair market value of plan assets, amortized over either (1) the estimated average future service period of active plan participants if the plan is active or (2) the estimated average future life expectancy of all plan participants if the plan is frozen.

Actual results that differ from our assumptions are accumulated and, if in excess of the lesser of

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10% of the projected benefit obligation or the fair market value of plan assets, amortized over either (1) the estimated average future service period of active plan participants if the plan is active or (2) the estimated average future life expectancy of all plan participants if the plan is frozen.

Derivative Financial Instruments

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• Foreign Currency Risk - The Company has foreign operations and, therefore, has exposure to foreign exchange risk when the financial results of those operations are translated to U.S.

The Company will occasionally purchase derivative financial instruments such as foreign currency forward contracts in an attempt to mitigate currency exchange rate exposure related to the net assets of its Mexico reportable segment that are denominated in Mexican pesos.

The Company’s U.K.

and Europe reportable segment also attempts to mitigate foreign currency exposure on certain transactions denominated in foreign currencies through the use of derivative financial instruments.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Co mpany’s Europe rep ortable segment also attempts to mitigate foreign currency exposure on certain transactions denominated in foreign currencies through the use of derivative financial instruments.

• Interest Rate Risk - The Company has exposure to variability in cash flows from interest payments due to the use of variable interest rates on certain long-term debt arrangements.

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The Company typically engages third-party valuation specialists to assist in the fair value determination of tangible long-lived assets and intangible assets other than goodwill.

The fair value of acquired inventories is determined by extending physical counts of the inventories taken at or near the acquisition date to market pricing in effect for such inventories at or near the acquisition date.

The fair value of acquired inventories is determined by extending physical counts of the inventories taken at or near the acquisition date to market pricing in effect for such inventories

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

at or near the acquisition date.

The carrying values of acquired receivables and accounts payable have historically approximated their fair values as of the business combination date.

13 unchanged sentences

and valuation of acquired businesses.

Industrial Revenue Bond Transaction

On August 22, 2024, the Company closed an industrial revenue bond transaction with the Douglas-Coffee County Industrial Authority d/b/a Douglas-Coffee County Development Authority (the “County”) in order to receive a five-year real property tax abatement on the Company’s newly constructed Douglas, Georgia protein conversion facility.

Pursuant to this transaction, the County issued an industrial revenue bond for $ 130.0 million principal amount to the Company and then used the proceeds of the bond issuance to purchase the land and facility from the Company.

The County then leased the facility back to the Company under a finance lease, the terms of which provide for the payment of rent in an amount equal to that of bond service costs.

The related land and building are recorded as assets in Property, plant, and equipment, net on the Company’s Condensed Consolidated Balance Sheet.

The Company has the legal right to set-off and intends to set-off the corresponding lease and bond service payments, therefore the Company has netted the finance lease obligation with the bond asset.

As such, no amount for our obligation under the finance lease or the corresponding industrial revenue bond asset are reflected in our Consolidated Balance Sheet.

Recent Accounting Pronouncements Adopted in 2024

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures , which requires additional disclosures for reportable segments.

The guidance requires disclosures about significant segment expenses that are regularly provided to the chief operating decision maker along with additional measures of segment profit that are regularly used by the chief operating decision maker in assessing segment performance and deciding how to allocate resources.

The provisions of the new guidance will be effective for years beginning after December 15, 2023 and interim periods in fiscal years beginning after December 15, 2024.

The Company adopted this guidance effective December 29, 2024.

The adoption of this guidance did not have a material impact on our Consolidated Financial Statements.

Additional information regarding segments is included in “Note 20.

Reportable Segments.”

Recent Accounting Pronouncements Adopted in 2023

In September 2022, the FASB issued Accounting Standards Update (“ASU”) 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50):

6 unchanged sentences

Supplier Finance Programs.”

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848):

6 unchanged sentences

The adoption did not have a material impact on our Consolidated Financial Statements.

Recent Accounting Pronouncements Adopted in 2022

In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832):

Disclosures by Business Entities about Government Assistance , which requires annual disclosures for transactions with a government authority that are accounted for by a grant or contribution model.

The guidance requires disclosure about the nature of certain government assistance received, the accounting treatment for the transactions and the effect of the transactions on the financial statements.

The guidance is effective for annual periods beginning after December 15, 2021, with early adoption permitted.

The adoption of this guidance did not have a material impact on our Consolidated Financial Statements.

Recent Accounting Pronouncements Not Yet Adopted as of December 29, 2024

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures , which requires additional disclosures for reportable segments.

The provisions of the new guidance will be effective for years beginning after December 15, 2023 and interim periods in fiscal years beginning after December 15, 2024.

The Company plans to adopt this guidance in the next fiscal year and are still assessing the impacts on our Consolidated Financial Statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

3 unchanged sentences

The Company plans to adopt this guidance as it becomes effective and is assessing the impacts on our Consolidated Financial Statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40) , which requires additional disclosures for certain costs and expenses to help investors better understand major components of an entity’s income statement.

The guidance requires additional disclosures for costs and expenses such as purchases of inventory, employee compensation, depreciation, and intangible asset amortization.

The provisions of the new guidance will be effective for annual reporting years beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027.

The Company plans to adopt this guidance as it becomes effective and is assessing the impacts on our Consolidated Financial Statements.

REVENUE RECOGNITION

The vast majority of the Company’s revenue is derived from contracts which are based upon a customer ordering our products.

While there may be master agreements, the contract is only established when the customer’s order is accepted by the Company.

The Company evaluates the transaction for distinct performance obligations, which are the sale of its products to customers.

Since its products are commodity market-priced, the sales price is representative of the observable, standalone selling price.

Each performance obligation is recognized based upon a pattern of recognition that reflects the transfer of control

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

to the customer at a point in time, which is upon destination (customer location or port of destination), which faithfully depicts the transfer of control and recognition of revenue.

There are instances of customer pick-up at the Company’s facility, in which case control transfers to the customer at that point and the Company recognizes revenue.

The Company’s performance obligations are typically fulfilled within days to weeks of the acceptance of the order.

The Company makes judgments regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from revenue and cash flows with customers.

Determination of a contract requires evaluation and judgment along with the estimation of the total contract value and if any of the contract value is constrained.

Due to the nature of our business, there is minimal variable consideration, as the contract is established at the acceptance of the order from the customer.

When applicable, variable consideration is estimated at contract inception and updated on a regular basis until the contract is completed.

Allocating the transaction price to a specific performance obligation based upon the relative standalone selling prices includes estimating the standalone selling prices including discounts and variable consideration.

Disaggregated Revenue

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Year Ended December 29, 2024

Fresh Prepared Export Other Total

Fresh Prepared Export Other (a)

(In thousands)

$ 8,731,904 $ 1,094,818 $ 468,553 $ 334,654 $ 10,629,929

and Europe 1,074,900 3,525,359 472,657 130,406 5,203,322

Europe 1,178,459 3,381,178 477,486 99,624 5,136,747

Mexico 1,777,815 220,270 — 113,530 2,111,615

Total net sales $ 11,688,178 $ 4,696,266 $ 946,039 $ 547,808 $ 17,878,291

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Year Ended December 31, 2023

Fresh Prepared Export Other Total

Fresh Prepared Export Other (a)

(In thousands)

$ 8,105,268 $ 978,423 $ 533,205 $ 410,846 $ 10,027,742

and Europe 908,882 3,104,347 712,685 148,824 4,874,738

Europe 1,074,900 3,525,359 472,657 130,406 5,203,322

Mexico 1,796,670 212,651 — 121,832 2,131,153

1 unchanged sentence

Year Ended December 25, 2022

Fresh Prepared Export Other Total

Fresh Prepared Export Other (a)

(In thousands)

$ 8,624,421 $ 1,107,734 $ 552,823 $ 463,372 $ 10,748,350

and Europe 1,151,330 2,214,180 458,588 109,964 3,934,062

Europe 908,882 3,104,347 712,685 148,824 4,874,738

Mexico 1,587,809 167,589 — 89,891 1,845,289

Total net sales $ 11,121,112 $ 4,379,670 $ 1,265,508 $ 702,087 $ 17,468,377

(a) Included in Other sales shown above are sales of commodity grains and protein byproducts.

Additional disaggregation of revenue by sales channel is provided below:

Year Ended December 29, 2024

Retail Foodservice Export Other Total

(In thousands)

$ 5,708,826 $ 4,029,197 $ 468,553 $ 423,353 $ 10,629,929

Europe 3,257,803 846,284 477,486 555,174 5,136,747

531,724 982,429 — 597,462 2,111,615

Total net sales $ 9,498,353 $ 5,857,910 $ 946,039 $ 1,575,989 $ 17,878,291

Year Ended December 31, 2023

Retail Foodservice Export Other Total

(In thousands)

$ 5,111,023 $ 3,829,397 $ 533,205 $ 554,117 $ 10,027,742

Europe 3,220,272 917,304 472,657 593,089 5,203,322

502,408 986,567 — 642,178 2,131,153

Total net sales $ 8,833,703 $ 5,733,268 $ 1,005,862 $ 1,789,384 $ 17,362,217

Year Ended December 25, 2022

Retail Foodservice Export Other Total

(In thousands)

$ 4,952,560 $ 4,608,606 $ 552,823 $ 634,361 $ 10,748,350

Europe 2,842,502 778,304 712,685 541,247 4,874,738

416,342 880,368 — 548,579 1,845,289

Total net sales $ 8,211,404 $ 6,267,278 $ 1,265,508 $ 1,724,187 $ 17,468,377

(a) Included in Mexico foodservice channel are sales to wholesale public meat markets that typically sell product on to foodservice customers.

Included in Mexico other channel are sales to live chicken markets.

Contract Costs

3 unchanged sentences

The Company excludes all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the entity from a customer (for example, sales, use, value added and some excise taxes) from the transaction price.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Contract Balances

2 unchanged sentences

Revenue contract liabilities relate to payments received in advance of satisfying the performance under the customer contract.

The revenue contract liabilities relate to customer prepayments and the advanced

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

consideration, such as cash, received from governmental agency contracts for which performance obligations to the end customer have not been satisfied.

The revenue contract liabilities relate to customer prepayments and the advanced consideration, such as cash, received from governmental agency contracts for which performance obligations to the end customer have not been satisfied.

Changes in the revenue contract liability balances for the years ended December 29, 2024 and December 31, 2023 were as follows:

5 unchanged sentences

Balance, end of year $ 48,898 $ 84,958

The Company is party to operating lease agreements for warehouses, office space, vehicle maintenance facilities and livestock growing farms in the U.S., distribution centers, hatcheries and office space in Mexico and farms, processing facilities and office space in the U.K.

Additionally, the Company leases equipment, over-the-road transportation vehicles and other assets in all three reportable segments.

9 unchanged sentences

Operating lease cost, finance lease amortization and finance lease interest are respectively included in Cost of sales, SG&A expense and Interest expense, net of capitalized interest in the Consolidated Statements of Income.

For the Year Ended

December 29, 2024 December 31, 2023

8 unchanged sentences

The weighted-average remaining lease term and discount rate for lease liabilities included in our Consolidated Balance Sheets are as follows:

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 29, 2024 December 31, 2023

6 unchanged sentences

Supplemental cash flow information related to leases is as follows (in thousands):

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 29, 2024 December 31, 2023

32 unchanged sentences

Therefore, it has exposure to translational foreign exchange risk when the financial results of those operations are remeasured in U.S.

The Company has purchased foreign currency forward contracts to partially manage this translational foreign exchange risk.

The Company has historically purchased foreign currency forward contracts to manage a portion of this foreign exchange risk.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The fair value of derivative assets is included in the line item Prepaid expenses and other current assets on the Consolidated Balance Sheets while the fair value of derivative liabilities is included in the line item Accrued expenses and other current liabilities on the same statements.

The Company’s counterparties require that it post collateral for changes in the net fair value of the derivative contracts.

This cash collateral is reported in the line item Restricted cash and cash equivalents on the Consolidated Balance Sheets.

This cash collateral is reported in the line item Restricted cash and restricted cash equivalents on the Consolidated Balance Sheets.

Undesignated contracts may include contracts not designated as hedges or contracts that do not qualify for hedge accounting.

The fair value of each of these derivatives is recognized in the Consolidated Balance Sheets within Prepaid expenses and other current assets or Accrued expenses and other current liabilities .

Changes in fair value of each derivative are

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

recognized immediately in the Consolidated Statements of Income within Net sales, Cost of sales, Selling, general and administrative expense , or Foreign currency transaction (gains) losses depending on the risk the derivative is intended to mitigate.

Changes in fair value of each derivative are recognized immediately in the Consolidated Statements of Income within Net sales , Cost of sales , or Foreign currency transaction losses (gains) depending on the risk the derivative is intended to mitigate.

While management believes these instruments help mitigate various market risks, they are not designated and accounted for as hedges as a result of the extensive record keeping requirements.

The Company does not apply hedge accounting treatment to certain derivative financial instruments that it has purchased to mitigate commodity purchase exposures in the U.S.

The Company does not apply hedge accounting treatment to certain derivative financial instruments it has purchased to mitigate commodity purchase exposures in the U.S.

and Mexico or foreign currency transaction exposures on our Mexico operations.

3 unchanged sentences

Unrealized gains and losses related to cash flows are disclosed in the Consolidated Statements of Cash Flows in the line item Other operating assets and liabilities.

Gains or losses related to the foreign currency derivative financial instruments are included in the line item Foreign currency transaction losses (gains) and Cost of sales in the Consolidated Statements of Income.

The Company does apply hedge accounting to certain derivative financial instruments related to its U.K.

and Europe reportable segment that it has purchased to mitigate foreign currency transaction exposures.

Before the settlement date of the financial derivative instruments, the Company recognizes changes in the fair value of the cash flow hedge into accumulated other comprehensive loss (“AOCL”).

When the derivative financial instruments are settled, the amount in AOCL is then reclassified to earnings.

Gains or losses related to these derivative financial instruments are included in the line items Net sales and Cost of sales in the Consolidated Statements of Income.

Gains or losses related to the foreign currency derivative financial instruments are included in the line item Foreign currency transaction losses (gains) in the Consolidated Statements of Income.

The Company does apply hedge accounting treatment to certain derivative financial instruments related to its Europe reportable segment that it has purchased to mitigate foreign currency transaction exposures.

Before the settlement date of the financial derivative instruments, the Company recognizes changes in the fair value of the cash flow hedge into accumulated other comprehensive income (“AOCI”).

When the derivative financial instruments are settled, the amount in AOCI is then reclassified to earnings.

Gains or losses related to these derivative financial instruments are included in the line item Net sales and Cost of sales in the Consolidated Statements of Income.

We have generally applied the normal purchase and normal sale scope exception (“NPNS”) to our forward physical grain purchase contracts delivered by truck and to our forward physical natural gas and solar-generated power purchase contracts.

11 unchanged sentences

Cash collateral posted with brokers (a)

33,475 33,771

Derivatives coverage (b) :

2 unchanged sentences

Period through which stated percent of needs are covered:

Corn July 2024 December 2023

Soybean meal March 2024 December 2023

Corn December 2025 July 2024

Soybean meal March 2026 March 2024

(a) Collateral posted with brokers consists primarily of cash, short term treasury bills, or other cash equivalents.

(b) Derivatives coverage is the percent of anticipated commodity needs covered by outstanding derivative instruments through a specified date.

The following table presents the gains and losses of each derivative instrument held by the Company not designated or qualifying as hedging instruments:

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table presents the gains and losses of each derivative instrument held by the Company not designated or qualifying as hedging instruments:

Type of Contract (a)

December 29, 2024 December 31, 2023 December 25, 2022 Affected Line Item in the Consolidated Statements of Income

Foreign currency derivatives gain (loss) $ ( 34,229 ) $ ( 35,586 ) $ 12,806 Foreign currency transaction losses (gains)

Commodity derivative gain (loss) ( 5,318 ) 53,899 50,404 Cost of sales

Sales contract derivative gain (loss) 4,665 8,985 ( 12,691 ) Net sales

Foreign currency derivatives $ — $ ( 34,229 ) $ ( 35,586 ) Foreign currency transaction losses (gains)

Commodity derivatives ( 11,008 ) ( 5,318 ) 53,899 Cost of sales

Sales contract derivatives ( 1,738 ) 4,665 8,985 Net sales

Total $ ( 12,746 ) $ ( 34,882 ) $ 27,298

(a) Amounts in parentheses represent income (expenses) related to results of operations.

(a) Amounts represent income (expenses) related to results of operations.

The following tables present the components of the gain or loss on derivatives that qualify as cash flow hedges:

Gain (Loss) Recognized in Other Comprehensive Loss

Gains (Losses) Recognized in Other Comprehensive Income (Loss)

December 29, 2024 December 31, 2023 December 25, 2022

3 unchanged sentences

Total $ 1,767 $ ( 2,579 ) $ 1,817

Gain (Loss) Reclassified from AOCI into Income

Gains (Losses) Reclassified from AOCI into Income

December 29, 2024 December 31, 2023

1 unchanged sentence

Cost of sales (b)

Interest expense, net of capitalized interest (b)

Net sales (a)

Cost of sales (b)

Interest expense, net of capitalized interest (b)

(In thousands)

1 unchanged sentence

Impact from cash flow hedging instruments:

Interest rates swap derivatives — — — — — 98

Foreign currency derivatives 1,367 ( 482 ) ( 1,816 ) ( 3 )

1 unchanged sentence

(b) Amounts represent expenses (income) related to cost of sales and interest expense.

As of December 31, 2023, there were immaterial pre-tax deferred net losses on foreign currency derivatives recorded in AOCL that are expected to be reclassified to the Consolidated Statements of Income during the next twelve months.

As of December 29, 2024, there were $ 2 million of pre-tax deferred net losses on foreign currency derivatives recorded in AOCI expected to be reclassified to the Consolidated Statements of Income during the next twelve months.

This expectation is based on the anticipated settlements on the hedged investments in foreign currencies that will occur over the next twelve months, at which time the Company will recognize the deferred losses to earnings.

1 unchanged sentence

Trade accounts and other receivables (including accounts receivable from related parties), less allowance for credit losses, consisted of the following:

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 29, 2024 December 31, 2023

10 unchanged sentences

Related Party Transactions.”

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Activity in the allowance for credit losses was as follows:

3 unchanged sentences

Balance, beginning of period $ ( 9,341 ) $ ( 9,559 )

Provision charged to operating results ( 1,439 ) ( 675 )

Provision released (charged) to operating results 102 ( 1,439 )

Account write-offs and recoveries 46 2,436

6 unchanged sentences

The fees are immaterial.

December 31, 2023 December 25, 2022

Allowance for Sales Adjustments (a) :

(In thousands)

Balance, beginning of period $ 6,905 $ 11,472

Charged to operating results 337,546 238,135

Deductions ( 335,253 ) ( 242,702 )

Balance, end of period $ 9,198 $ 6,905

(a) Deductions either written off, rebilled or reclassified as liabilities.

Inventories consisted of the following:

10 unchanged sentences

December 29, 2024 December 31, 2023

Amortized Cost Fair

Value Amortized Cost Fair

(In thousands)

Cash equivalents:

Fixed income securities $ 1,702,493 $ 1,702,697 $ 324,808 $ 324,947

Gross realized gains during 2023 and 2022 related to the Company’s available-for-sale securities totaled $ 21.5 million and $ 7.1 million, respectively, while gross realized losses were immaterial .

Short-term investment:

Fixed income securities 10,000 10,220 — —

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Interest income and gross realized gains during 2024 and 2023 related to the Company’s available-for-sale securities totaled $ 70.8 million and $ 21.5 million, respectively, while gross realized losses were immaterial .

Proceeds received from the sale or maturity of available-for-sale securities investments are historically disclosed in the Consolidated Statements of Cash Flows.

Net unrealized holding gains and losses on the Company’s available-for-sale securities recognized during 2024 and 2023 that have been included in accumulated other comprehensive income (loss) and the net amount of gains and losses reclassified out of accumulated other comprehensive income (loss) to earnings during 2024 and 2023 are disclosed in “Note 14.

Stockholders’ Equity.”

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

GOODWILL AND INTANGIBLE ASSETS

The activity in goodwill by reportable segment for the years ended December 29, 2024 and December 31, 2023 were as follows:

December 25, 2022 Additions Currency Translation December 31, 2023

December 31, 2023 Currency Translation December 29, 2024

(In thousands)

$ 41,936 $ — $ 41,936

and Europe 1,058,204 — 58,317 1,116,521

Europe 1,116,521 ( 18,878 ) 1,097,643

Mexico 127,804 ( 28,310 ) 99,494

Total $ 1,286,261 $ ( 47,188 ) $ 1,239,073

December 26, 2021 Additions Currency Translation December 25, 2022

December 25, 2022 Currency Translation December 31, 2023

(In thousands)

$ 41,936 $ — $ 41,936

and Europe 1,167,512 5,401 ( 114,709 ) 1,058,204

Europe 1,058,204 58,317 1,116,521

Mexico 127,804 — 127,804

1 unchanged sentence

Intangible assets consisted of the following:

December 25, 2022 Amortization Disposals Currency Translation December 31, 2023

December 31, 2023 Amortization Currency Translation December 29, 2024

(In thousands)

7 unchanged sentences

Total $ 853,983 $ ( 32,396 ) $ ( 15,353 ) $ 806,234

December 26, 2021 Amortization Disposals Currency Translation December 25, 2022

December 25, 2022 Amortization Currency Translation December 31, 2023

(In thousands)

3 unchanged sentences

Customer relationships 427,662 — 14,057 441,719

Non-compete agreements 320 — ( 320 ) — —

Accumulated amortization:

Trade names ( 53,708 ) ( 3,886 ) ( 168 ) ( 57,762 )

Customer relationships ( 189,015 ) ( 29,210 ) ( 4,903 ) ( 223,128 )

Non-compete agreements ( 320 ) — 320 — —

Total $ 846,020 $ ( 33,096 ) $ 41,059 $ 853,983

3 unchanged sentences

Customer relationships 3 - 18 years

Non-compete agreements 3 years

The Company expects to recognize amortization expense associated with intangible assets of $ 30.3 million in 2024, $ 30.3 million in 2025, $ 28.3 million in 2026, $ 24.4 million in 2027 and $ 24.4 million in 2028.

The Company elected to bypass a qualitative assessment to determine whether it was more likely than not that reporting unit fair value was less than reporting unit carrying amount (including goodwill) for each of its reporting units with a material amount of goodwill reported as of December 31, 2023.

Instead, the Company performed a quantitative impairment test for each reporting unit with a material amount of goodwill reported as of December 31, 2023.

Based on the results of the quantitative impairment tests, there was no goodwill impairment in any of the Company’s reporting units as of December 31, 2023.

The Company elected to bypass a qualitative assessment to determine whether it was more likely than not that indefinite-lived intangible asset fair value was less than indefinite-lived intangible asset carrying amount for each of its intangible assets not subject to amortization as of December 31, 2023.

Instead, the Company performed a quantitative impairment test for each intangible asset not subject to amortization as of December 31, 2023.

Based on the results of the quantitative impairment tests, there was no impairment of any of the Company’s intangible assets not subject to amortization as of December 31, 2023.

The Company expects to recognize amortization expense associated with intangible assets of $ 32.4 million in 2025, $ 29.9 million in 2026, $ 24.9 million in 2027, 2028 and 2029.

On July 1, 2024, the Company effectively completed a reorganization within its Europe reportable segment.

The previous reporting units were Moy Park, Pilgrim's UK, and Pilgrim's Food Masters.

The new reporting units are Fresh Pork/Lamb, Fresh Poultry, Food Service, Meals, and Brands & Snacking.

As a result of this reorganization, the Company reassigned assets and liabilities to the applicable reporting units and allocated goodwill using the relative net assets approach.

The Company then performed an interim impairment test on the reporting units on both a pre- and post-reorganization basis.

There was no impairment recognized as a result of these tests.

The Company additionally assessed if the Pilgrim’s Europe reorganization indicated that any carrying amounts of its non-goodwill intangible assets might not be recoverable.

The reorganization did not result in any change in business use for any of the intangible assets and therefore, the Company determined no indicators were present that required us to test the recoverability of the asset group-level carrying amounts of its Europe intangible assets at that date.

As of December 29, 2024, the Company assessed qualitative factors to determine if it was necessary to perform quantitative impairment tests related to the carrying amounts of its goodwill or its intangible assets not subject to amortization.

Based on these assessments, the Company determined that it was not necessary to perform quantitative impairment tests related to the carrying amount of its goodwill nor its intangible assets not subject to amortization at that date.

As of December 29, 2024, the Company assessed if events or changes in circumstances indicated that the aggregate carrying amount of its intangible assets subject to amortization might not be recoverable.

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During 2024, the Company incurred $ 458.5 million on capital projects and transferred $ 633.0 million of completed projects from construction-in-progress to depreciable assets.

Capital expenditures during 2023 were primarily incurred for growth projects, such as the Athens, GA expansion and the South Georgia protein conversion plant, and to improve operational efficiencies, system enhancement projects, and to reduce costs.

Capital expenditures during 2024 were primarily incurred for growth projects, such as the Moorefield, WV expansion and the South Georgia protein conversion plant, and to improve operational efficiencies, information technology system enhancement projects, and to reduce costs.

During 2023, the Company spent $ 557.8 million on capital projects and transferred $ 461.0 million of completed projects from construction-in-progress to depreciable assets.

Capital expenditures in accounts payable and accrued expenses for the years ended December 29, 2024 and December 31, 2023 were $ 29.2 million and $ 85.9 million, respectively.

During 2023, the Company sold certain PP&E for $ 19.8 million and recognized a gain of $ 6.1 million.

PP&E sold in 2023 consisted of a farm in Mexico and other miscellaneous equipment.

During 2022, the Company sold certain PP&E for $ 35.5 million and recognized a gain of $ 18.9 million.

PP&E sold in 2022 consisted of a farm in Mexico and other miscellaneous equipment.

During 2024, the Company sold certain PP&E for $ 15.4 million and recognized a loss of $ 1.8 million.

PP&E sold in 2024 consisted of a feed mill in the U.S., breeder farm equipment in Mexico, and other miscellaneous equipment.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

the Company sold certain PP&E for $ 19.8 million and recognized a gain of $ 6.1 million.

PP&E sold in 2023 consisted of a farm in Mexico and other miscellaneous equipment.

The Company has closed or idled various facilities in the U.S.

3 unchanged sentences

As of December 29, 2024, the carrying amount of these idled assets was $ 45.1 million based on depreciable value of $ 185.8 million and accumulated depreciation of $ 140.7 million.

During 2023, the Company recognized an impairment loss on PP&E of $ 4.0 million incurred as a result of planned restructuring activities in the U.K.

and Europe reportable segment.

During 2024, the Company recognized an impairment loss on PP&E of $ 28.6 million incurred as a result of planned restructuring activities in the Europe reportable segment.

Additional information regarding restructuring activities is included in “Note 18.

18 unchanged sentences

Accrued sales rebates 116,439 104,390

Insurance and self-insured claims 76,287 72,453

Litigation settlements 111,769 73,330

Insurance and self-insured claims 76,025 76,287

Interest and debt-related fees 65,192 71,508

3 unchanged sentences

Derivative liabilities (d)

17,841 18,917

Other accrued expenses 195,790 228,822

8 unchanged sentences

Derivative Financial Instruments.”

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SUPPLIER FINANCE PROGRAMS

The Company maintains supplier finance programs , under which we agree to pay for confirmed invoices from participating suppliers to a financing entity.

The Company maintains supplier finance programs , under which we agree to pay for invoices that are confirmed as valid under the program from participating suppliers to a financing entity.

Maturity dates are generally between 65 - 120 days and we pay either the supplier or the financing entity depending on the supplier’s election.

We do not have an economic interest in a supplier’s participation in the program or a direct financial relationship with the financial institution funding the program.

As of December 31, 2023 and December 25, 2022, the outstanding balance of confirmed invoices was $ 192.7 million and $ 239.6 million respectively and are included in Accounts payable in the Consolidated Balance Sheets.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The outstanding balances are included in Accounts payable in the Consolidated Balance Sheets.

December 29, 2024

(In thousands)

Confirmed obligations outstanding, beginning of year $ 192,666

Invoices confirmed during the year 870,540

Confirmed invoices paid during the year ( 910,426 )

Confirmed obligations outstanding, end of year $ 152,780

Income (loss) before income taxes by jurisdiction is as follows:

22 unchanged sentences

State tax rate, net 2.4 0.6 3.2

Global intangible low-taxed income 0.1 — —

Mexico tax audit — — 3.8

11 unchanged sentences

Total 23.0 % 11.7 % 27.2 %

Included in the return to provision is a decrease of ( 4.2 )% in the effective tax rate related to a return to provision amount from the 2020 federal income tax return due to deconsolidation.

The amount was recorded during the year ended December 31, 2023.

Included in the Mexico tax audit is an increase of 3.8 % in the effective tax rate related to the Mexican tax authority’s claim that Avícola Pilgrim’s Pride de Mexico, S.A.

Included in the Mexico tax audit item in above table is an increase of 3.8 % in the effective tax rate related to the Mexican Tax Authority’s claim that Avícola Pilgrim’s Pride de Mexico, S.A.

(“Avícola”) should have considered dividends paid out of its subsidiaries as partially taxable in tax years 2009 and 2010.

The amount was recorded during the year ended December 25, 2022.

Included in the change in reserve for unrecognized tax benefits is an increase of 7.0 % in the effective tax rate related

to interest deductions in the U.K.

for tax years 2017 through 2021.

The amount was recorded during the year ended December 25, 2021.

Significant components of the Company’s deferred tax liabilities and assets are as follows:

15 unchanged sentences

Workers’ compensation 7,172 5,361

Pension and other postretirement benefits — 3,351

Incentive compensation 1,161 —

Operating lease liabilities 63,717 80,823

10 unchanged sentences

As of December 29, 2024, the Company believes it has sufficient positive evidence to conclude that realization of its federal, state and foreign net deferred tax assets are more likely than not to be realized.

As of December 31, 2023, the Company’s valuation allowance is $ 88.5 million, of which $ 11.0 million relates to our U.K.

and Europe operations, $ 0.1 million relates to our Mexico operations, $ 53.0 million relates to Onix Investments UK Limited, Sandstone Holdings Sàrl and Arkose Investments ULC, indirect subsidiaries of Pilgrim’s, $ 11.8 million relates to our Puerto Rico operations, $ 11.8 million relates to U.S.

As of December 29, 2024, the Company’s valuation allowance is $ 86.3 million, of which $ 10.6 million relates to our Europe operations, $ 0.3 million relates to our Mexico operations, $ 50.9 million relates to Onix Investments UK Limited, Sandstone Holdings Sàrl and Arkose Investments ULC, indirect subsidiaries of Pilgrim’s, $ 11.9 million relates to our Puerto Rico operations, $ 11.8 million relates to U.S.

foreign tax credits and $ 0.8 million relates to state net operating losses.

5 unchanged sentences

2022 24,261 43,188 ( 3,088 ) 64,361

As of December 31, 2023, the Company had state net operating loss carry forwards of approximately $ 104.8 million that begin to expire in 2024.

As of December 29, 2024, the Company had federal and state net operating loss carry forwards of approximately $ 48.4 million that begin to expire in 2025.

The Company also had Mexico net operating loss carry forwards as of December 29, 2024 of approximately $ 0.8 million that begin to expire in 2028.

13 unchanged sentences

Unrecognized tax benefits, end of year $ 28,969 $ 37,565

Included in unrecognized tax benefits of $ 37.6 million as of December 31, 2023, was $ 18.0 million of tax benefits that, if reco gnized, would reduce the Company’s effective tax rate.

Included in unrecognized tax benefits of $ 29.0 million as of December 29, 2024, was $ 15.1 million of tax benefits that, if recognized, would reduce the Company’s effective tax rate.

It is not practicable at this time to estimate the amount of unrecognized tax benefits that will change in the next twelve months.

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The Company operates in the U.S.

(including multiple state jurisdictions), Puerto Rico and several foreign locations including Mexico, the U.K., the Republic of Ireland, and continental Europe.

(including multiple state jurisdictions), Puerto Rico and several foreign locations including Mexico, the U.K., the Republic of Ireland.

With few exceptions, the Company is no longer subject to examinations by taxing authorities for years prior to 2020 in U.S.

1 unchanged sentence

The Company has a tax sharing agreement with JBS USA Holdings effective for tax years beginning 2010.

$ 1.4 million net tax receivable was accrued in 2023 as a capital contribution and an account receivable from a related party in our Consolidated Balance Sheet.

The 2023 tax sharing accrual is related to true-ups of prior year tax sharing accruals.

No tax sharing receivable or payable is accrued for the 2023 tax year.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

There was no tax sharing receivable or payable accrued for the 2024 tax year.

Long-term debt and other borrowing arrangements, including current notes payable to banks, consisted of the following components:

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2031 850,342 992,711

Senior notes payable, net of discount at 5.875 %

2027 — 846,582

Revolving Credit Facility at 6.66 % - 8.75 %

Credit Facility (defined below)

Term note payable at 6.40 % - 8.50 %

2026 — 480,078

Revolving note payable at 4.33 %

and Europe Revolver Facility (defined below) with notes payable at SONIA plus 1.25 %

Mexico BBVA Credit Facility (defined below) with notes payable at TIIE plus 1.35 %

Credit Facility (defined below) at SOFR plus 1.35 %

Europe Credit Facility (defined below) with notes payable at SONIA plus 1.25 %

Mexico Credit Facility (defined below) with notes payable at TIIE plus 1.35 %

Live Oak CHP Project PACE Loan 5.15 %

2053 20,599 —

Finance lease obligations Various 1,792 2,486

4 unchanged sentences

Long-term debt, less current maturities, net of capitalized financing costs $ 3,206,113 $ 3,340,841

There are no future minimum principal payments due in each of the next five fiscal years subsequent to the year ended December 31, 2023.

The future minimum principal payments due in each of the next five fiscal years subsequent to the year ended December 29, 2024, related to the Live Oak CHP Project PACE Loan discussed below, are $ 0.1 million.

Leases” for future minimum payments of finance lease obligations.

Senior Notes Due 2027

On September 29, 2017, the Company completed a sale of $ 600.0 million aggregate principal amount of its 5.875 % unsecured senior notes due 2027.

On March 7, 2018, the Company completed an add-on offering of $ 250.0 million of these senior notes (together with the senior notes issued in September 2017, the “Senior Notes due 2027”).

The issuance price of this add-on offering was 97.25 %, which created gross proceeds of $ 243.1 million.

The $ 6.9 million discount was amortized over the life of the Senior Notes due 2027 up to the point of redemption on October 12, 2023.

Each issuance of the Senior Notes due 2027 is treated as a single class for all purposes under the 2017 Indenture (defined below) and have the same terms.

The Senior Notes due 2027 are governed by, and were issued pursuant to, an indenture dated as of September 29, 2017 by and among the Company, its guarantor subsidiaries and Regions Bank, as trustee (the “2017 Indenture”).

The 2017 Indenture provides, among other things, that the Senior Notes due 2027 bear interest at a rate of 5.875 % per annum from the date of issuance until maturity, payable semiannually in cash in arrears, beginning on March 30, 2018 for the Senior Notes due 2027 that were issued in September 2017 and beginning on March 15, 2018 for the Senior Notes due 2027 that were issued in March 2018.

On October 12, 2023, the outstanding balance for the Senior Notes due 2027 was paid in full with the proceeds from the Senior Notes due 2034, along with cash on hand as outlined below.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Bond Repurchase Program

On May 1, 2024, the Board approved a bond repurchase program which authorizes the Company to buyback $ 200.0 million of the Company’s outstanding senior notes.

Under the program, the Company has repurchased $ 144.3 million of outstanding principal of the Senior Notes due 2031 and $ 20.0 million of outstanding principal of the Senior Notes due 2033, resulting in gross realized gains of $ 13.8 million in the year ended December 29, 2024.

The gross realized gains on early extinguishment of debt are recognized as a reduction in interest expense.

The original discount and capitalized financing costs of $ 1.1 million and $ 1.2 million associated with the amounts repurchased, respectively, are partially offsetting the gross gains on early extinguishment of debt, along with a nominal amount of transaction fees.

Senior Notes Due 2031

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The $ 10.1 million discount will be amortized over the remaining life of the Senior Notes due 2031.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Each issuance of the Senior Notes due 2031 is treated as a single class for all purposes under the April 2021 Indenture (defined below) and have the same terms.

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The April 2021 Indenture provides, among other things, that the Senior Notes due 2031 bear interest at a rate of 4.25 % per annum payable semi-annually on April 15 and October 15 of each year.

From and including October 15, 2026, the interest rate payable on the notes shall be increased to 4.50 % per annum unless the Company has notified the trustee at least 30 days prior to October 15, 2026 that in respect of the year ended December 31, 2025, (1) the Company’s greenhouse gas emissions intensity reduction target of 17.679 % by December 31, 2025 from a 2019 baseline (the “Sustainability Performance Target”) has been satisfied and (2) the satisfaction of the Sustainability Performance Target has been confirmed by a qualified provider of third-party assurance or attestation services appointed by the Company to review the Company’s statement of the greenhouse gas emissions intensity in accordance with its customary procedures.

From and including October 15, 2026, the interest rate payable on the notes shall be increased to 4.50 % per annum unless the Company has notified the trustee at least 30 days prior to October 15, 2026 that in respect of the year ending December 31, 2025, (1) the Company’s greenhouse gas emissions intensity reduction target of 17.679 % by December 31, 2025 from a 2019 baseline (the “Sustainability Performance Target”) has been satisfied and (2) the satisfaction of the Sustainability Performance Target has been confirmed by a qualified provider of third-party assurance or attestation services appointed by the Company to review the Company’s statement of the greenhouse gas emissions intensity in accordance with its customary procedures.

Senior Notes Due 2032

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Credit Facility as defined below.

The remaining proceeds will be used for general corporate purposes, including repaying existing debt.

The remaining proceeds were used for general corporate purposes, including repaying existing debt.

The issuance price of this offering to the public was 99.312 %, which created gross proceeds of $ 993.1 million before transaction costs.

The $ 6.9 million discount will be amortized over the remaining life of the Senior Notes due 2033.

The $ 6.9 million discount will be amortized over the

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

remaining life of the Senior Notes due 2033.

The Senior Notes due 2033 bear interest at a rate of 6.25 % per annum from the date of issuance until maturity, payable semiannually on January 1 and July 1 of each year, commencing on January 1, 2024.

7 unchanged sentences

On October 12, 2023, the Company completed a sale of $ 500.0 million aggregate principal amount of its 6.875 % unsecured, registered senior notes due 2034 (“Senior Notes due 2034”).

The Company used the net proceeds from the offering

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

of the Senior Notes due 2034, together with cash on hand, to repurchase pursuant to a tender offer and redeem all of its outstanding 5.875 % Senior Notes due 2027.

The Company used the net proceeds from the offering of the Senior Notes due 2034, together with cash on hand, to repurchase pursuant to a tender offer and redeem all of its outstanding 5.875 % Senior Notes due 2027.

The issuance price of this offering to the public was 98.041 %, which created gross proceeds of $ 490.2 million before transaction costs.

4 unchanged sentences

The Senior Notes due 2034 are not guaranteed by the Company’s subsidiaries will be structurally subordinated to all existing and future liabilities (including trade payables) of the Company’s subsidiaries.

Credit Facilities

Credit Facility

On August 9, 2021, the Company and certain of the Company’s subsidiaries entered into a Fifth Amended and Restated Credit Agreement (the “2021 U.S.

Credit Facility”) with CoBank, ACB, as administrative agent and collateral agent, and the other lenders party thereto.

The 2021 U.S.

Credit Facility provides for an $ 800.0 million revolving credit commitment and a term loan commitment of up to $ 700.0 million (the “Term Loans”).

On April 19, 2023, the outstanding balances for the swingline loans and term loans under the 2021 U.S.

Credit Facility were paid in full with the proceeds from the Senior Notes 2033 as outlined above.

On June 21, 2023, PPC, CoBank and the other lenders entered into a first amendment to the 2021 U.S.

Credit Facility in connection with a benchmark transition event with respect to LIBOR.

With the first amendment the parties agreed to replace LIBOR with Adjusted Term Secured Overnight Financing rate (“SOFR”), corresponding to Term SOFR plus a SOFR adjustment percentage per annum equal to 0.10 %.

The 2021 U.S.

Credit Facility was replaced by the Revolving Syndicated Facility Agreement (“RCF”) on October 4, 2023 as outlined in the details below.

Revolving Syndicated Credit Facility

On October 4, 2023 (the “Effective Date”), the Company and certain of the Company’s subsidiaries entered into an unsecured Revolving Credit Facility (the “RCF”) with CoBank, ACB as administrative agent, and the other lenders party thereto.

The RCF replaced the 2021 U.S.

Credit Facility detailed above.

The RCF increased the Company’s availability under the revolving loan commitment from $ 800.0 million to $ 850.0 million, amended certain covenants, and extended the maturity date of the Company’s revolving loan commitments from August 9, 2026 to October 4, 2028.

As of December 31, 2023, the Company had outstanding letters of credit and available borrowings under the revolving credit commitment of $ 25.1 million and $ 824.9 million, respectively.

There were no outstanding borrowings as of December 31, 2023.

Outstanding borrowings under the RCF bear interest at a per annum rate equal to SOFR or the prime rate plus applicable margins based on the Company’s credit ratings.

The RCF also requires compliance with a minimum interest coverage ratio of 3.50:1.00 (the “Financial Maintenance Covenant”).

The Borrowers may give collateral cure notice to the administrative agent, electing to provide full unconditional guarantee perfected by first priority security interest in substantially all U.S.

From and after the collateral cure date the financial maintenance covenant shall no longer be in effect, availability under the RCF shall be limited to collateral coverage, may be subject to a minimum fixed charge coverage ratio if utilization is above 80% and there shall be limitation on 1) liens, 2) indebtedness, 3) sales and other dispositions of assets, 4) dividends, distributions, and other payments in respect of equity interest, 5) investments, acquisitions, loans and advances, and 6) voluntary prepayments, redemptions or repurchases of unsecured subordinated material indebtedness.

In each case, clauses 1 to 6 are subject to certain exceptions which can be material.

The Company is currently in compliance with the covenants under the RCF.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

and Europe Revolver Facility

On October 4, 2023, the Company and certain of the Company’s subsidiaries entered into a Revolving Syndicated Facility Agreement (the “U.S.

Credit Facility”) with CoBank, ACB as administrative agent and the other lenders party thereto.

Credit Facility provides for a revolving loan commitment of up to $ 850 million.

The loan commitment matures on October 4, 2028.

Credit Facility is unsecured and will be used for general corporate purposes.

Outstanding borrowings under the U.S.

Credit Facility bear interest at a per annum rate equal to either the Secured Overnight Financing Rate (“SOFR”) or the prime rate plus applicable margins based on the Company’s credit ratings.

As of December 29, 2024, the Company had outstanding letters of credit and available borrowings under the revolving credit commitment of $ 24.2 million and $ 825.8 million , respectively, and there were no outstanding borrowings under this agreement.

Credit Facility requires customary financial and other covenants for transactions of this type, including limitations on 1) liens, 2) indebtedness, 3) sales and other dispositions of assets, 4) dividends, distributions, and other payments in respect of equity interest, 5) investments, and 6) voluntary prepayments, redemptions or repurchases of junior debt.

In each case, clauses 1 to 6 are subject to certain exceptions which can be material and certain of such clauses only apply to the Company upon the occurrence of certain triggering events.

The Company is currently in compliance with the covenants under the U.S.

Credit Facility.

Europe Credit Facility

On June 24, 2022, Moy Park Holdings (Europe) Ltd.

(“MPH(E)”) and other Pilgrim’s entities located in the U.K.

and Republic of Ireland entered into an unsecured multicurrency revolving facility agreement (the “U.K.

and Europe Revolver Facility”) with the Governor and Company of the Bank of Ireland, as agent, and the other lenders party thereto.

and Europe Revolver Facility provides for a multicurrency revolving loan commitment of up to £ 150.0 million.

and Republic of Ireland entered into an unsecured multicurrency revolving facility agreement (the “Europe Credit Facility”) with the Governor and Company of the Bank of Ireland, as agent, and the other lenders party thereto.

The Europe Credit Facility provides for a multicurrency revolving loan commitment of up to £ 150.0 million.

The loan commitment matures on June 24, 2027.

Outstanding borrowings bear interest at the current Sterling Overnight Index Average (SONIA) interest rate plus 1.25 % (as defined in the U.K.

and Europe Revolver Facility).

Outstanding borrowings bear interest at the current Sterling Overnight Index Average (“SONIA”) interest rate plus 1.25 %.

All obligations under this agreement are guaranteed by certain of the Company’s subsidiaries.

1 unchanged sentence

dollar-equivalent loan commitment and borrowing availability were $ 188.6 million and there were no outstanding borrowings under this agreement.

and Europe Revolver Facility contains representations and warranties, covenants, indemnities and conditions, in each case, that the Company believes are customary for transactions of this type.

Pursuant to the terms of the agreement, the Company is required to meet certain financial and other restrictive covenants.

Additionally, the Company is prohibited from taking certain actions without consent of the lenders, including, without limitation, incurring additional indebtedness, entering into certain mergers or other business combination transactions, permitting liens or other encumbrances on its assets and making restricted payments, including dividends, in each case, except as expressly permitted under the U.K.

and Europe Revolver Facility.

The Company is currently in compliance with the covenants under the U.K.

and Europe Revolver Facility.

Mexico Credit Facilities

The Europe Credit Facility contains representations and warranties, covenants, indemnities and conditions, in each case, that the Company believes are customary for transactions of this type.

Pursuant to the terms of the agreement, the

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Company is required to meet certain financial and other restrictive covenants.

The Company is currently in compliance with the covenants under the Europe Credit Facility.

Mexico Credit Facility

On December 14, 2018, certain of the Company’s Mexican subsidiaries entered into an unsecured credit agreement (the “Mexico Credit Facility”) with Banco del Bajio, Sociedad Anónima, Institución de Banca Múltiple, as lender.

On August 15, 2023, certain of the Company’s Mexican subsidiaries entered into an unsecured credit agreement (the “Mexico Credit Facility”) with BBVA México as lender.

The loan commitment under the Mexico Credit Facility is Mex$ 1.1 billion and can be borrowed on a revolving basis.

Outstanding borrowings under the Mexico Credit Facility accrue interest at a rate equal to the 28-Day Interbank Equilibrium Interest Rate (TIIE) plus 1.7 %.

Outstanding borrowings under the Mexico Credit Facility accrue interest at a rate equal to The Interbank Equilibrium Interest (“TIIE”) rate plus 1.35 %.

The Mexico Credit Facility contains covenants and defaults that the Company believes are customary for transactions of this type.

The Mexico Credit Facility matured on December 14, 2023 and was not renewed.

Mexico BBVA Credit Facility

On August 15, 2023, certain of the Company’s Mexican subsidiaries entered into an unsecured credit agreement (the “Mexico BBVA Credit Facility”) with BBVA México as lender.

The loan commitment under the Mexico BBVA Credit Facility is Mex$ 1.1 billion and can be borrowed on a revolving basis.

Outstanding borrowings under the Mexico BBVA Credit Facility accrue interest at a rate equal to TIIE plus 1.35 %.

The Mexico BBVA Credit Facility contains covenants and defaults that the Company believes are customary for transactions of this type.

The Company is currently in compliance with the covenants under the Mexico BBVA Credit Facility.

The Mexico BBVA Credit Facility will be used for general corporate and working capital purposes.

The Mexico BBVA Credit Facility will mature on August 15, 2026.

The Mexico Credit Facility will be used for general corporate and working capital purposes.

The Mexico Credit Facility will mature on August 15, 2026.

As of December 29, 2024, the U.S.

dollar-equivalent of the loan commitment and borrowing availability was $ 54.6 million.

As of December 31, 2023, there were no outstanding borrowings under the Mexico BBVA Credit Facility.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of December 29, 2024, there were no outstanding borrowings under the Mexico Credit Facility.

The Company is currently in compliance with the covenants under the Mexico Credit Facility.

Live Oak CHP Project PACE Loan

On October 10, 2022, the Company entered into a property assessed clean energy (“PACE”) financing program, required by Section 15 of the Property Assessed Clean Energy Act to fund various energy projects, with the city of Live Oak, Florida.

The loan bears interest at 5.15 %, and is secured by a special assessment on the property.

The repayment of the loan is assessed and amortized over a 30 -year term, payable in equal annual installments including principal, interest, and assessment administrative fees at the same time and in the same installments as the general taxes on the property.

As of December 29, 2024, there were $ 20.6 million of outstanding principal under the Live Oak CHP Project PACE Loan.

STOCKHOLDERS’ EQUITY

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss (“AOCL”)

The following tables provide information regarding the changes in AOCL during 2024 and 2023:

7 unchanged sentences

Balance, end of year $ ( 337,243 ) $ ( 2,007 ) $ ( 31,028 ) $ ( 22 ) $ ( 370,300 )

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Gains (Losses) Related to Foreign Currency Translation Unrealized Losses on Derivative Financial Instruments Classified as Cash Flow Hedges Losses Related to Pension and Other Postretirement Benefits Gains (Losses) on Available-for-Sale Securities Total

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(In thousands)

Realized loss on settlement of foreign currency derivatives classified as cash flow hedges $ ( 1,816 ) $ ( 3,193 ) Net sales

Realized gain (loss) on settlement of foreign currency derivatives classified as cash flow hedges $ 1,367 $ ( 1,816 ) Net sales

Realized gain (loss) on settlement of foreign currency derivatives classified as cash flow hedge 482 3 Cost of sales

Realized loss on settlement of interest rate swap derivatives classified as cash flow hedges — ( 98 ) Interest expense, net of capitalized interest

Realized gain (loss) on sale of securities 82 ( 175 ) Interest income

Realized loss on settlement of pension obligation from plan termination (b)

( 21,714 ) — Miscellaneous, net

Amortization of pension and other postretirement plan actuarial losses (b)

4 unchanged sentences

(a) Positive amounts represent income to the results of operations while amounts in parentheses represent expenses to the results of operations.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(b) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost.

4 unchanged sentences

Restrictions on Dividends

The 2021 U.S.

Credit Facility, the RCF and the indentures governing the Company’s senior notes restrict, but do not prohibit, the Company from declaring dividends.

Additionally, the U.K.

and Europe Revolver Facility prohibits MPH(E) and other Pilgrim’s entities located in the U.K.

Credit Facility and the indentures governing the Company’s senior notes have currently no restrictions on dividends.

Under certain triggering events, the U.S.

Credit Facility may limit the Company’s ability to declare and pay dividends.

Additionally, the Europe Credit Facility, under certain triggering events, may restrict MPH(E) and other Pilgrim’s entities located in the U.K.

and Republic of Ireland to, among other things, make payments and distributions to the Company.

1 unchanged sentence

The 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 and the Geo Adams Group Pension Fund (together, the “U.K.

Plans”), 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 $ 56.9 million, $ 32.0 million and $ 30.9 million in 2024, 2023 and 2022, respectively.

The expenses recognized in 2024 include $ 21.7 million of loss recognized on the settlement of the terminated GK and Union pension plans, defined below.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company used a year-end measurement date of December 29, 2024 for its pension and postretirement benefits plans.

2 unchanged sentences

Qualified Defined Benefit Pension Plans

The Company sponsors four qualified defined benefit pension plans named 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” and, together with the Tulip Plan, the “U.K.

The Company sponsored four qualified defined benefit pension plans named 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” and, together with the Tulip Plan, the “Europe Plans”).

The Union Plan covers certain locations or work groups within PPC.

3 unchanged sentences

The plan was frozen for that group as of March 31, 2007.

Plans cover certain eligible active and former U.K.

employees who were employed at locations that the Company purchased through its acquisition of Tulip in 2019.

The Europe Plans cover certain eligible active and former Europe employees who were employed at locations that the Company purchased through its acquisition of Tulip in 2019.

Participation in the Tulip Plan was frozen as of October 31, 2007 and participation in the Geo Adams Plan was frozen as of September 5, 2008.

During 2024, the Company executed a termination of its Union and GK Pension Plans.

Under the plan terminations, participants were offered a lump-sum buyout or an annuity placement buyout.

As a result, the Company settled $ 99.6 million of outstanding benefit obligations and recognized a $ 21.7 million loss on settlement during the year ended December 29, 2024.

The loss was recognized in Miscellaneous, net on the Consolidated Statement of Income.

Assets of the pension plans were liquidated and funds from liquidation were used to settle the obligations.

Nonqualified Defined Benefit Pension Plans

3 unchanged sentences

Pilgrim’s Pride assumed sponsorship of the SERP Plan and Directors’ Emeriti Plan through its acquisition of Gold Kist in 2007.

The SERP Plan provides benefits on compensation in excess of certain IRC limitations to certain former executives with whom Gold Kist negotiated individual agreements.

The SERP Plan provides benefits on compensation in excess of certain U.S.

Internal Revenue Code limitations to certain former executives with whom Gold Kist negotiated individual agreements.

Benefits under the SERP Plan were frozen as of February 8, 2007.

7 unchanged sentences

These retired employees all reached the age of 65 in 2012 and liabilities of the postretirement medical plan then ended.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Defined Benefit Plans Obligations and Assets

10 unchanged sentences

Projected benefit obligation, end of year $ 113,730 $ 237,508 $ 1,144 $ 1,160

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Pension Benefits Other Benefits

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Funded status (In thousands)

Unfunded benefit obligation, end of year $ ( 12,057 ) $ ( 26,014 ) $ ( 1,160 ) $ ( 1,169 )

Overfunded (unfunded) benefit obligation, end of year $ 10,196 $ ( 12,057 ) $ ( 1,144 ) $ ( 1,160 )

Pension Benefits Other Benefits

1 unchanged sentence

Amounts recognized in the Consolidated Balance Sheets as of end of year (In thousands)

Long-term assets

$ 11,829 $ — $ — $ —

Total assets $ 11,829 $ — $ — $ —

Current liabilities $ ( 205 ) $ ( 7,717 ) $ ( 201 ) $ ( 187 )

Long-term liabilities ( 1,428 ) ( 4,340 ) ( 943 ) ( 973 )

Recognized liabilities $ ( 12,057 ) $ ( 26,014 ) $ ( 1,160 ) $ ( 1,169 )

Total liabilities $ ( 1,633 ) $ ( 12,057 ) $ ( 1,144 ) $ ( 1,160 )

Pension Benefits Other Benefits

3 unchanged sentences

The accumulated benefit obligation for the Company’s defined benefit pension plans was $ 113.7 million and $ 237.5 million as of December 29, 2024 and December 31, 2023, respectively.

Each of the Company’s defined benefit pension plans had accumulated benefit obligations that exceeded the fair value of plan assets as of December 31, 2023 and December 25, 2022.

As of December 29, 2024, the weighted average duration of our defined benefit obligation is 17.5 years.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Net Periodic Benefit Costs

10 unchanged sentences

Net cost (income) $ 22,508 $ 2,321 $ ( 212 ) $ 53 $ 54 $ 23

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Economic Assumptions

13 unchanged sentences

Once the present value of the string of benefit payments was established, the Company determined the single rate on the yield curve, that when applied to all obligations of the plan, would exactly match the previously determined present value.

The discount rate assumptions used to determine future pension obligations for the U.K.

pension plans at December 31, 2023 and December 25, 2022 were based on corporate bond spot yield curves provided by Merrill Lynch.

The discount rate assumptions used to determine future pension obligations for the Europe pension plans at December 29, 2024 and December 31, 2023 were based on corporate bond spot yield curves provided by Merrill Lynch.

Merrill Lynch bases this calculation entirely on AA1-AA3 rated bonds.

3 unchanged sentences

pension and other postretirement benefit plans used variations of the Pri-2012 mortality table.

The MP-2022 and MP-2021 mortality improvement scales were used for 2023 and 2022, respectively.

As of December 31, 2023 and December 25, 2022, the U.K.

pension plans used variations of the AxC00 mortality table in combination with the CMI_2022 Sk=7.5 and CMI_2021 Sk=7.5 mortality improvement scales for 2023 and 2022, respectively, for pre-retirement employees and the S3PMA mortality table in combination with the CMI_2022 Sk=7.5 and CMI_2021 Sk=7.5 mortality improvement scales for 2023 and 2022, respectively, for postretirement employees.

The MP-2021 mortality improvement scale was used for 2024 and 2023.

As of December 29, 2024 and December 31, 2023, the Europe pension plans used variations of the AxC00 mortality table in combination with the CMI_2023 Sk=7.0 and CMI_2022 Sk=7.0 mortality improvement scales for 2024 and 2023, respectively, for pre-retirement employees and the S3PMA and S3PFA_M mortality tables in combination with the CMI_2023 Sk=7.0 and CMI_2022 Sk=7.0 mortality improvement scales for 2024 and 2023, respectively, for postretirement employees.

The sensitivity of the projected benefit obligation for pension benefits to changes in the discount rate is set out below.

3 unchanged sentences

When calculating the sensitivity of the defined benefit obligation to variations in significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as that for calculating the liability recognized in the Consolidated Balance Sheets.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Increase in Discount Rate of 0.25% Decrease in Discount Rate of 0.25%

7 unchanged sentences

The following table reflects the pension plans’ actual asset allocations:

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Cash and cash equivalents 21 % 2 %

16 unchanged sentences

Some PSAs and CCTs have no restrictions as to their investment strategy and can invest in riskier investments, such as derivatives, hedge funds, private equity funds, or similar investments.

Absent regulatory or statutory limitations, the target asset allocation for the investment of pension assets in the PSAs for the Union Plan is 50 % in each of fixed income securities and equity securities, the target asset allocation for the investment of pension assets in the PSAs and/or CCTs for the GK Pension Plan is 35 % in fixed income securities, 60 % in equity securities and 5 % in real estate and investment of pension assets in the PSAs for the U.K.

Plans is 21 % overseas equity, 15 % diversified alternatives, 10 % real estate, 28 % equity-linked liability driven investments, 11 % other liability driven investments and 15 % cash for the Tulip Pension Plan;

Absent regulatory or statutory limitations, the target asset allocation for the investment of pension assets in the PSAs for the Europe Plans is 21 % overseas equity, 21 % diversified alternatives, 15 % real estate, 24 % equity-linked liability driven investments, 11 % other liability driven investments and 8 % cash for the Tulip Pension Plan;

and 23 % global equities, 11 % equity-linked liability driven investments, 15 % liability driven investments, 16 % corporate bonds and 35 % cash for the Geo Adams Group Pension Fund.

30 unchanged sentences

— — — — — 5,174 — 5,174

PSAs for the U.K.

PSAs for the Europe Plans:

equity funds (d)

49 unchanged sentences

Amortization ( 816 ) ( 1,065 ) ( 1,381 ) — — —

Settlement adjustments — ( 1,591 ) ( 2,313 ) — — ( 21 )

Realized loss on settlement ( 21,714 ) — ( 1,591 ) — — —

Actuarial loss (gain) ( 20,782 ) 238 ( 106,909 ) ( 39 ) ( 21 ) ( 184 )

Asset loss (gain) 5,264 ( 7,317 ) 99,777 — — —

Net prior service cost — — — — — —

Currency translation loss 510 82 308 — — —

Currency translation (gain) loss ( 376 ) 510 82 — — —

Net actuarial loss (gain), end of year $ 2,063 $ 40,487 $ 48,121 $ ( 126 ) $ ( 87 ) $ ( 66 )

24 unchanged sentences

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 two 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 maintains two defined contribution retirement savings plans in the Europe reportable segment for eligible Europe employees, as required by Europe law.

The Company’s expenses related to its defined contribution plans totaled $ 32.5 million, $ 28.5 million and $ 27.0 million in 2024, 2023 and 2022, respectively.

1 unchanged sentence

The Company sponsors short-term incentive plans that provide the grant of either cash or stock-based bonus awards payable upon achievement of specified performance goals.

As of December 31, 2023, the Company has accrued $ 26.6 million, $ 27.5 million and $ 8.1 million related to cash bonus awards that are recognized in the U.S., U.K & Europe, and Mexico reportable segments, respectively.

As of December 29, 2024, the Company has accrued $ 87.9 million, $ 36.7 million and $ 7.8 million related to cash bonus awards that are recognized in the U.S., Europe, and Mexico reportable segments, respectively.

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 liability-based awards to the Company’s officers and other employees, members of the Board of Directors and any consultants (the “LTIP”).

7 unchanged sentences

The 2019 LTIP became effective as of December 28, 2019.

As of December 31, 2023, we have in reserve approximately 0.5 million shares of common stock for future issuance under the 2019 LTIP.

As of December 29, 2024, we have in reserve less than 0.1 million shares of common stock for future issuance under the 2019 LTIP.

Compensation costs and the income tax benefit recognized for our stock-based compensation arrangements are included below:

8 unchanged sentences

Liability-based awards compensation cost

Selling, general and administrative expense $ 2,491 $ 1,773 $ 7,715

Income tax benefit 603 432 1,878

Net cost $ 1,888 $ 1,341 $ 5,837

Selling, general and administrative expense (a)

$ ( 1,953 ) $ 2,491 $ 1,773

Income tax benefit (expense) ( 473 ) 603 432

$ ( 1,480 ) $ 1,888 $ 1,341

(a) During 2024, the liability-based awards in our Europe and Mexico segments for the 2023 performance year were determined to have not met the performance threshold for payout therefore the Company reversed the prior and current year recognized compensation costs related to these awards.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

7 unchanged sentences

Outstanding at beginning of year 911 $ 22.40 993 $ 22.00 554 $ 20.40

Transferred to liability-based awards — — — — ( 8 ) 23.53

Granted 979 26.80 324 23.67 405 23.88

9 unchanged sentences

Outstanding at beginning of year 242 $ 27.66 377 $ 23.80 574 $ 27.55

Transferred from equity-based awards — — — — 8 23.53

Granted — — 158 24.21 269 22.09

3 unchanged sentences

(a) The milestone date fair value is either the closing price of the Company’s common stock on the grant date for equity-based awards or the closing price of a share of the Company’s common stock on the respective milestone date for cash-based liability-based awards (i.e., grant date, vesting date, forfeiture date or financial reporting date).

The total fair values of equity-based awards and liability-based awards vested during 2023 were $ 9.3 million and $ 5.0 million, respectively.

The total fair value of equity-based awards vested during 2024 was $ 7.1 million.

No liability-based awards vested during 2024.

The total fair values of equity-based awards and liability-based awards vested during 2023 were $ 9.3 million and $ 5.0 million, respectively.

1 unchanged sentence

This cost is expected to be recognized over a weighted average period of 1.91 years.

As of December 31, 2023, the total unrecognized compensation cost related to all nonvested liability-based awards was $ 4.1 million.

As of December 29, 2024, the total unrecognized compensation cost related to all nonvested liability-based awards was immaterial .

This cost is expected to be recognized over a weighted average period of 0.01 years.

Historically, we have issued new shares, as oppo sed to treasury shares, to satisfy equity-based award conversions.

Historically, we have issued new shares, as op po sed to treasury shares, to satisfy equity-based award conversions.

FAIR VALUE MEASUREMENTS

4 unchanged sentences

Level 3 Unobservable inputs, such as discounted cash flow models or valuations.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement in its entirety.

As of December 31, 2023 and December 25, 2022, the Company held assets and liabilities that were required to be measured at fair value on a recurring basis.

The Company’s assets and liabilities consist of fixed income securities, long and short positions on exchange-traded commodity futures instruments, commodity options instruments, sales contracts instruments, and foreign currency instruments to manage translation and remeasurement risk.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of December 29, 2024 and December 31, 2023, the Company held fixed income securities, derivative assets and derivative liabilities that were required to be measured at fair value on a recurring basis.

Fixed income securities consist of investments, such as money market funds and commercial paper.

Derivative assets and liabilities consist of long and short positions on exchange-traded commodity futures instruments, commodity options instruments, sales contracts instruments, foreign currency instruments to manage translation and remeasurement risk.

The following items were measured at fair value on a recurring basis:

1 unchanged sentence

Level 1 Level 2 Total Level 1 Level 2 Total

(In thousands) (In thousands)

(In thousands)

Fixed income securities $ 1,712,917 $ — $ 1,712,917 $ 324,947 $ — $ 324,947

7 unchanged sentences

Investments in Securities” for additional information.

The valuation of financial assets and liabilities classified in Level 1 is determined using a market approach, taking into account current interest rates, creditworthiness, and liquidity risks in relation to current market conditions, and is based upon unadjusted quoted prices for identical assets in active markets.

The valuation of financial assets and liabilities classified in Level 1 is based upon unadjusted quoted prices for identical assets or liabilities in active markets.

The valuation of financial assets and liabilities in Level 2 is determined using a market approach based upon quoted prices for similar assets and liabilities in active markets or other inputs that are observable for substantially the full term of the financial instrument.

2 unchanged sentences

In addition to the fair value disclosure requirements related to financial instruments carried at fair value, accounting standards require interim disclosures regarding the fair value of all of the Company’s financial instruments.

The methods and significant assumptions used to estimate the fair value of financial instruments and any changes in methods or significant assumptions from prior periods are also required to be disclosed.

The carrying amounts and estimated fair values of our debt obligations recorded in the Consolidated Balance Sheets consisted of the following:

10 unchanged sentences

( 491,329 ) ( 533,650 ) ( 490,408 ) ( 540,230 )

Fixed-rate senior notes payable at 6.875 %, at Level 2 inputs

( 490,408 ) ( 540,230 ) — —

Variable-rate term note payable at 8.50 %, at Level 3 inputs

Live Oak CHP Project Pace Loan 5.15 %, at level 3 inputs

( 20,599 ) ( 18,569 ) — —

1 unchanged sentence

Debt” for additional information.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The carrying amounts of our cash and cash equivalents, derivative trading accounts’ margin cash, restricted cash and cash equivalents, accounts receivable, accounts payable and certain other liabilities approximate their fair values due to their relatively short maturities.

The carrying amounts of our cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, accounts payable and certain other liabilities approximate their fair values due to their relatively short maturities.

Derivative assets were recorded at fair value based on quoted market prices and are included in the line item Prepaid expenses and other current assets on the Consolidated Balance Sheets.

Derivative liabilities were recorded at fair value based on quoted market prices and are included in the line item Accrued expenses and other current liabilities on the Consolidated Balance Sheets.

Derivative liabilities were recorded at fair value based on quoted market

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

prices and are included in the line item Accrued expenses and other current liabilities on the Consolidated Balance Sheets.

The fair values of the Company’s Level 2 fixed-rate debt obligations were based on the quoted market price at December 29, 2024 or December 31, 2023, as applicable.

The Company had no Level 3 debt obligations outstanding as of December 31, 2023.

In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company records certain assets and liabilities at fair value on a nonrecurring basis.

1 unchanged sentence

There were no significant fair value measurement losses recognized for such assets and liabilities in the periods reported.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

RESTRUCTURING-RELATED ACTIVITIE S

In 2022, the Company began restructuring initiatives to phase out and reduce processing volumes at multiple production facilities throughout the U.K.

and Europe reportable segment.

Implementation of these initiatives is expected to result in total pre-tax charges of approxim ately $ 75.1 million, and approximately $ 49.6 million of these charges are estimated to result in cash outlays.

These activities were initiated in the fourth quarter of 2022 and were substantially completed by the end of 2023.

In 2023, the Company began a restructuring initiative to phase out and reduce processing volumes at a production facility in the U.K.

and Europe reportable segment.

Implementation of this initiative is expected to result in total pre-tax charges of approxim ately $ 3.1 million, and all of these charges are estimated to result in cash outlays.

This activity was initiated in the fourth quarter of 2023 and is expected to be substantially completed by the end of the first quarter of 2024.

The following table provides a summary of our estimates of costs associated with these restructuring initiatives by major type of cost:

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:

Moy Park Pilgrim’s Pride Ltd.

Pilgrim’s Food Masters 2022 Pilgrim’s Food Masters 2023 Total

2022 Pilgrim’s Pride Ltd.

2024 Pilgrim’s Food Masters 2022 Pilgrim’s Food Masters 2023 Pilgrim’s Food Masters 2024 Pilgrim’s Europe Central

(In thousands)

Earliest implementation date October 2022 November 2022 December 2022 October 2023

Expected predominant completion date June 2023 July 2023 July 2023 March 2024

Earliest implementation date October 2022 November 2022 September 2024 December 2022 October 2023 April 2024 January 2024

Expected predominant completion date June 2023 July 2023 December 2024 July 2023 March 2024 March 2025 June 2025

Costs incurred and expected to be incurred:

4 unchanged sentences

6,135 7,735 185 6,330 — 9,935 3,807 34,127

Total exit and disposal costs $ 22,305 $ 26,736 $ 26,068 $ 3,113 $ 78,222

Total exit and disposal costs (b)

$ 20,967 $ 44,100 $ 1,716 $ 24,961 $ 3,027 $ 41,217 $ 50,614 $ 186,602

Costs incurred since earliest implementation date:

7 unchanged sentences

prepaid maintenance costs and Pilgrim’s Food Masters consulting fees.

(b) All costs, except for asset impairment costs, are estimated to result in cash outlays.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

5 unchanged sentences

2022 18,349 3,166

Pilgrim’s Pride Ltd.

2024 1,717 1,512

Pilgrim’s Food Masters 2022 — 1,598

Pilgrim’s Food Masters 2023 — 2,139

$ 44,345 $ 51,362

Pilgrim’s Food Masters 2024 40,735 22,172

Pilgrim’s Europe Central 32,692 26,490

Total $ 93,388 $ 57,946

These expenses are reported in the line item Restructuring activities on the Consolidated Statements of Income.

The following table reconciles liabilities and reserves associated with each restructuring initiative from its respective inception to December 31, 2023.

The following table reconciles liabilities and reserves associated with each restructuring initiative from December 31, 2023 to December 29, 2024 .

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.

The ending reserve balance for asset impairments is reporting in the line item Property, plant and equipment, net in our Consolidated Balance Sheets.

Liability or reserve as of December 31, 2023 Restructuring charges incurred Cash payments and disposals Currency translation Liability or reserve as of December 29, 2024

1 unchanged sentence

Asset impairment $ — $ 5 $ ( 5 ) $ — $ —

Inventory adjustments 1 47 ( 48 ) — —

Other charges 2,644 ( 110 ) ( 722 ) ( 28 ) 1,784

Other employee costs — 1,495 ( 1,495 ) — —

Contract termination 144 — ( 147 ) 3 —

5 unchanged sentences

Severance 734 220 ( 616 ) — 338

Asset impairment — 15,938 ( 15,938 ) — —

Inventory adjustments 294 141 ( 432 ) ( 3 ) —

2 unchanged sentences

Total $ 1,979 $ 18,349 $ ( 19,751 ) $ ( 6 ) $ 571

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Pilgrim’s Pride Ltd.

Liability or reserve as of December 31, 2023 Restructuring charges incurred Cash payments and disposals Currency translation Liability or reserve as of December 29, 2024

(In thousands)

Severance $ — $ 1,532 $ ( 1,512 ) $ ( 20 ) $ —

Inventory adjustments — 185 ( 185 ) — —

Total $ — $ 1,717 $ ( 1,697 ) $ ( 20 ) $ —

Pilgrim’s Food Masters 2022

2 unchanged sentences

Severance $ 1,281 $ — $ ( 1,276 ) $ ( 5 ) $ —

Inventory adjustments 65 — ( 65 ) — —

Lease termination 1,289 — ( 1,284 ) ( 5 ) —

Other charges 685 — ( 322 ) ( 6 ) 357

Total $ 3,320 $ — $ ( 2,947 ) $ ( 16 ) $ 357

Pilgrim’s Food Masters 2023

Liability or reserve as of December 31, 2023 Restructuring charges incurred Cash payments and disposals Currency translation Liability or reserve as of December 29, 2024

(In thousands)

Employee retention benefits $ 522 $ — $ ( 517 ) $ ( 5 ) $ —

Severance 1,636 — ( 1,622 ) ( 14 ) —

Total $ 2,158 $ — $ ( 2,139 ) $ ( 19 ) $ —

Pilgrim’s Food Masters 2024

Liability or reserve as of December 31, 2023 Restructuring charges incurred Cash payments and disposals Currency translation Liability or reserve as of December 29, 2024

(In thousands)

Employee retention benefits $ — $ 2,850 $ ( 2,768 ) $ ( 6 ) $ 76

Severance — 16,778 ( 15,237 ) 79 1,620

Asset impairment — 10,808 ( 10,808 ) — —

4 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Pilgrim’s Food Masters 2023

Pilgrim’s Europe Central

Liability or reserve as of December 31, 2023 Restructuring charges incurred Cash payments and disposals Currency translation Liability or reserve as of December 29, 2024

2 unchanged sentences

Severance — 27,944 ( 25,004 ) ( 117 ) 2,823

Asset impairment — 1,824 ( 1,824 ) — —

Inventory adjustments — 93 — ( 2 ) 91

Lease termination — 8 ( 8 ) — —

Other charges — 1,064 ( 992 ) ( 5 ) 67

Contract termination — 1,747 ( 482 ) ( 42 ) 1,223

Total $ — $ 32,692 $ ( 28,322 ) $ ( 166 ) $ 4,204

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

RELATED PARTY TRANSACTIONS

5 unchanged sentences

$ 28,230 $ 27,687 $ 24,224

JBS Australia Pty.

JBS Chile Ltd.

3,143 1,733 595

29 unchanged sentences

Other related party transactions

Capital distribution (contribution) under tax sharing agreement (c)

$ ( 1,425 ) $ 1,592 $ 1,961

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Capital distribution (contribution) under tax sharing agreement $ — $ ( 1,425 ) $ 1,592

December 29, 2024 December 31, 2023

3 unchanged sentences

$ 1,727 $ 967

Seara Meats B.V.

JBS Chile Ltd.

Other related parties 156 226

Total accounts receivable from related parties $ 2,608 $ 1,778

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 29, 2024 December 31, 2023

3 unchanged sentences

$ 5,424 $ 34,038

JBS Asia Co Limited 2,254 2,099

Seara Meats B.V.

JBS Asia Co Limited 4,023 2,254

Penasul UK LTD 714 2,187

1 unchanged sentence

Total accounts payable to related parties $ 15,257 $ 41,254

(a) The Company routinely execute transactions to both purchase products from JBS USA Food Company and sell products to them.

As of December 31, 2023, approximately $ 0.2 million of goods from JBS USA were in transit and not reflected on our Consolidated Balance Sheets.

(a) The Company routinely executes transactions to both purchase products from JBS USA Food Company (“JBS USA”) and sell products to them.

As of December 29, 2024, goods purchased and in transit from JBS USA were $ 1.6 million and not reflected on our Consolidated Balance Sheets.

(b) The Company has an agreement with JBS USA to allocate costs associated with JBS USA’s procurement of SAP licenses and maintenance services for both companies.

4 unchanged sentences

This agreement expires on December 31, 2025.

The net tax receivable for tax year 2023 was recorded in 2023 and will be paid in 2024.

The net tax payable for tax year 2022 was accrued in 2022 and was paid in 2023.

The net tax payable for tax year 2021 was accrued in 2021 and was paid in 2022.

REPORTABLE SEGMENTS

The Company operates in three reportable segments:

and Europe and Mexico.

The Company measures segment profit as operating income.

Corporate expenses are allocated to the Mexico and U.K.

and Europe reportable segments based upon various apportionment methods for specific expenditures incurred related thereto with the remaining amounts allocated to the U.S.

reportable segment.

U.S., Europe and Mexico.

The Company’s reportable segments are identified by a combination of factors, including geographic area, regulatory environment, economic environment and product portfolios.

Each reportable segment is managed separately through a local management team.

The results of each operating, or reportable, segment are provided to the chief operating decision maker (“CODM”) on a regular basis.

The Company’s CODM is the President and Chief Executive Officer.

The information provided to the CODM at the operating segment level is then used to assess performance and make decisions regarding allocation of key resources.

The CODM primarily measures segment profit and evaluates performance based on operating income.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies.

We conduct separate operations in the continental U.S.

5 unchanged sentences

The segment’s primary distribution is through retailers, foodservice distributors and restaurants.

and Europe reportable segment processes primarily fresh chicken, pork products, specialty meats, ready meals and other prepared foods that are sold to foodservice, retail and direct to consumer customers.

The Europe reportable segment processes primarily fresh chicken, pork products, lamb products, specialty meats, ready meals and other prepared foods that are sold to foodservice, retail and direct to consumer customers.

The segment’s primary distribution is through retailers, foodservice distributors and restaurants.

1 unchanged sentence

The segment’s primary distribution is through retailers, foodservice distributors and restaurants.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Additional information regarding reportable segments is as follows:

4 unchanged sentences

$ 10,629,929 $ 10,027,742 $ 10,748,350

and Europe 5,203,322 4,874,738 3,934,062

Europe 5,136,747 5,203,322 4,874,738

Mexico 2,111,615 2,131,153 1,845,289

Total $ 17,362,217 $ 17,468,377 $ 14,777,458

Total net sales $ 17,878,291 $ 17,362,217 $ 17,468,377

(a) For the year 2024, the U.S.

4 unchanged sentences

These sales consisted of fresh products, prepared products, eggs and grain and are eliminated in our consolidation..

For the year 2022, the U.K.

and Europe reportable segment had intercompany sales of eggs to the U.S.

reportable segment of $ 5.3 million, which were eliminated in our consolidation.

1 unchanged sentence

These sales consisted of fresh products, prepared products and grain and are eliminated in our consolidation.

For the year 2022, the Europe reportable segment had intercompany sales of eggs to the U.S.

reportable segment of $ 5.3 million, which were eliminated in our consolidation.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 29, 2024 December 31, 2023 December 25, 2022

(In thousands)

Cost of sales

$ 9,065,837 $ 9,505,258 $ 9,312,445

Europe 4,675,080 4,828,623 4,634,066

Mexico 1,824,607 1,909,721 1,710,117

Eliminations — 214 ( 54 )

Total cost of sales $ 15,565,524 $ 16,243,816 $ 15,656,574

December 29, 2024 December 31, 2023 December 25, 2022

(In thousands)

$ 1,564,092 $ 522,484 $ 1,435,905

Europe 461,667 374,699 240,672

Mexico 287,008 221,432 135,172

Eliminations — ( 214 ) 54

Total gross profit $ 2,312,767 $ 1,118,401 $ 1,811,803

December 29, 2024 December 31, 2023 December 25, 2022

(In thousands)

Selling, general administrative expenses

$ 451,091 $ 283,590 $ 341,880

Europe 198,586 202,203 211,140

Mexico 63,633 65,977 51,722

Total SG&A expenses $ 713,310 $ 551,770 $ 604,742

December 29, 2024 December 31, 2023 December 25, 2022

(In thousands)

Restructuring activities charges

Europe $ 93,388 $ 44,345 $ 30,466

December 29, 2024 December 31, 2023 December 25, 2022

(In thousands)

Operating income

$ 1,113,001 $ 238,894 $ 1,094,025

and Europe 128,151 ( 934 ) ( 627 )

Europe 169,693 128,151 ( 934 )

Mexico 223,375 155,455 83,450

1 unchanged sentence

Total operating income $ 1,506,069 $ 522,286 $ 1,176,595

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 29, 2024 December 31, 2023 December 25, 2022

(In thousands)

Reconciliation of profit or loss (segment operating income)

Total segment operating income $ 1,506,069 $ 522,286 $ 1,176,595

Interest expense, net of capitalized interest 161,175 202,272 152,672

7 unchanged sentences

(In thousands)

Interest expense

$ 166,002 $ 208,000 $ 148,720

Europe 2,237 1,728 2,422

Mexico 1,191 558 1,530

Eliminations ( 8,255 ) ( 8,014 ) —

Total interest expense $ 161,175 $ 202,272 $ 152,672

December 29, 2024 December 31, 2023 December 25, 2022

(In thousands)

Interest income

$ 32,218 $ 13,987 $ 4,779

Europe 16,233 4,656 296

Mexico 32,470 25,022 3,953

Eliminations ( 8,255 ) ( 8,014 ) —

Total interest income $ 72,666 $ 35,651 $ 9,028

December 29, 2024 December 31, 2023 December 25, 2022

(In thousands)

Income tax expense (benefit)

$ 237,550 $ ( 5,848 ) $ 220,245

Europe 10,750 23,378 8,290

Mexico 76,746 25,375 50,400

Total income tax expense (benefit) $ 325,046 $ 42,905 $ 278,935

December 29, 2024 December 31, 2023 December 25, 2022

(In thousands)

Depreciation and amortization

$ 270,618 $ 255,052 $ 244,617

and Europe 142,190 134,374 113,256

Europe 140,993 142,190 134,374

Mexico 22,011 22,658 24,119

Total $ 433,622 $ 419,900 $ 403,110

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 29, 2024 December 31, 2023 December 25, 2022

2 unchanged sentences

$ 336,973 $ 417,919 $ 343,825

and Europe 109,590 114,330 87,004

Europe 91,177 109,590 114,330

Mexico 30,306 30,244 28,955

1 unchanged sentence

(a) Capital expenditures incurred include those that were paid out in cash and those that are still outstanding in accounts payable as of December 29, 2024.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 29, 2024 December 31, 2023

1 unchanged sentence

$ 7,848,510 $ 7,012,211

and Europe 4,299,985 4,033,990

Europe 4,051,150 4,299,985

Mexico 1,172,728 1,684,711

1 unchanged sentence

Total $ 10,650,576 $ 9,810,361

December 29, 2024 December 31, 2023

(In thousands)

Long-lived assets (a)

$ 2,156,858 $ 2,085,222

Europe 979,116 1,041,857

Mexico 261,518 301,919

Eliminations ( 3,888 ) ( 3,888 )

Total $ 3,393,604 $ 3,425,110

(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.

December 29, 2024 December 31, 2023 December 25, 2022

9 unchanged sentences

Total $ 17,878,291 $ 17,362,217 $ 17,468,377

December 31, 2023 December 25, 2022

(In thousands)

Long-lived assets (a)

$ 2,085,222 $ 1,943,967

and Europe 1,041,857 1,011,283

Mexico 301,919 295,069

Eliminations ( 3,888 ) ( 3,675 )

Total $ 3,425,110 $ 3,246,644

(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.

Information regarding net sales attributable to each of our primary product lines and markets served with those products is included in “Note 2.

3 unchanged sentences

Among other considerations, the Company has not recorded a liability for any of these indemnities because, based upon the likelihood of payment, the fair value of such indemnities would not have a material impact on its financial condition, results of operations and cash flows.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Purchase Obligations

3 unchanged sentences

Additional information regarding operating leases is included in “Note 3.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Financial Instruments

19 unchanged sentences

(both in 2009) and Pilgrim’s Pride, S.

As a result, according to the SAT, Avícola should have considered dividends paid out of these subsidiaries partially taxable since a portion of the dividend amount was not paid from the net tax profit account (CUFIN).

Avícola appealed the opinion, and on January 31, 2023, the appeal as to tax year 2009 was dismissed by the Mexico Supreme Court.

Accordingly, the Company has paid $ 25.9 million for tax year 2009.

Accordingly, during 2023 Avícola paid $ 25.9 million for tax year 2009.

The opinion for tax year 2010 is still under appeal.

Avícola has recorded a tax reserve of $ 17.2 million in connection therewith.

On May 12, 2022, the Mexican Tax Authorities issued tax assessments against Pilgrim’s Pride, S.

Accordingly, Avícola has an accrual of $ 14.4 million as of December 29, 2024 with regard to the tax year 2010.

On May 12, 2022, the SAT issued tax assessments against Pilgrim’s Pride, S.

and Provemex Holdings, LLC in connection with PPC’s acquisition of Tyson de México.

Following the acquisition, PPC re-domiciled Provemex Holdings, LLC from the U.S.

The tax authorities claim that Provemex Holdings, LLC was a Mexican entity at the time of the acquisition and, as a result, was obligated to pay taxes on the sale.

The Mexican subsidiaries of PPC filed a petition to nullify these assessments, and on June 7, 2023, the tax court granted the petition.

The Mexican Tax Authorities have appealed that decision.

Amounts under appeal are approximately $ 290.9 million for such tax assessments.

No loss has been recorded for these amounts at this time.

The Mexican subsidiaries of PPC filed a petition to nullify these assessments.

The District Court issued a judgement on January 20, 2025, in which the court now claims that the seller owed tax due to the indirect transfer of Mexican assets in connection with the sale, and that PPC or its subsidiaries should have withheld such taxes, but also noted that only one of the assessments will proceed.

PPC will appeal and will continue to defend this matter.

The amount under appeal for the remaining assessment is approximately $ 269.5 million.

No expense has been recorded for this amount at this time, and PPC have submitted an indemnification claim notice pursuant to the definitive agreement to acquire Tyson de México.

There can be no assurances as to whether the indemnification claim will be successful or in what amounts.

In 2019 and 2020, the UK Revenue & Customs Authority (HMRC) opened reviews of the 2017 and 2018 tax returns of Onix Investments UK Ltd in which HMRC evaluated the deductibility of certain interest related expenses incurred by Onix Investments UK Ltd (the “Deductions”).

The Deductions total $ 7.9 million for tax year 2017 and $ 32.1 million for tax year

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

On April 12, 2024, HMRC concluded that the Deductions should be disallowed and Onix Investments UK Ltd appealed.

On October 8, 2024, HMRC issued a Review Conclusion Letter affirming the prior decision to disallow the Deductions.

Onix Investments UK Ltd has timely filed a Grounds of Appeal and will continue to defend this matter.

Between September 2, 2016 and October 13, 2016, a series of federal class action lawsuits were filed with the U.S.

District Court for the Northern District of Illinois (“Illinois Court”) against PPC and other defendants by and on behalf of direct and indirect purchasers of broiler chickens alleging violations of antitrust and unfair competition laws and styled as In re Broiler Chicken Antitrust Litigation, Case No.

1:16-cv-08637 (“Broiler Antitrust Litigation”).

1:16-cv-08637 (the “Broiler Antitrust Litigation”).

The complaints seek, among other relief, treble damages for an alleged conspiracy among defendants to reduce output and increase prices of broiler chickens from the period of January 2008 to the present.

The class plaintiffs have filed three consolidated amended complaints:

the direct purchasers (“Broiler DPPs”), the commercial and institutional indirect purchasers (“Broiler CIIPPs”), and the end-user consumer indirect purchasers (“Broiler EUCPs”).

Between December 8, 2017 and September 1, 2021, 82 individual direct action complaints were filed with the Illinois Court by individual direct purchaser entities (“Broiler DAPs”) naming PPC as a defendant, the allegations of which largely mirror those in the class action complaints, though some added allegations of price fixing and bid rigging on certain sales.

On May 27, 2022, the Illinois Court certified each of the three classes.

On June 30, 2023, the Illinois Court issued its summary judgment order that dismissed certain claims against PPC but denied dismissal as to

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

the supply reduction claims from 2008-2012.

Thereafter, the Illinois Court issued a revised scheduling order for certain plaintiffs who limited their claims to reduction of output, and the first trial began on September 12, 2023 with Broiler DPPs and certain Broiler DAPs as plaintiffs.

PPC settled with all plaintiffs in the first trial prior to its commencement, so PPC was not a participant in the trial.

On October 25, 2023, the first trial concluded with a jury verdict in favor of the defendant.

PPC has entered into agreements to settle all claims made by the Broiler DPPs, Broiler CIIPPs, and Broiler EUCPs, for an aggregate total of $ 195.5 million, each of which has received final approval from the Illinois Court.

PPC continues to defend itself against the Broiler DAPs as well as parties that have opted out of the class settlements (collectively, the “Broiler Opt Outs”).

PPC will seek reasonable settlements where they are available.

To date, PPC has recognized an expense of $ 537.4 million to cover settlements with various Broiler Opt Outs.

For the twelve months ending December 31, 2023, $ 23.0 million has been recognized by PPC in Selling, general and administrative expense (“SG&A expense”) in the Consolidated Statements of Income.

Trials with the other Broiler Antitrust Litigation plaintiffs are not yet scheduled.

PPC has entered into agreements to settle all claims made by the three certified classes for an aggregate total of $ 195.5 million, each of which has received final approval from the Illinois Court.

PPC continues to defend itself against the direct-action plaintiffs as well as parties that have opted out of the class settlements (collectively, the “Broiler Opt Outs”).

PPC will seek reasonable settlements with the Broiler Opt Outs where they are available.

To date, we have recognized an expense of $ 582.5 million, including a $ 45.0 million incremental increase in the three months ended December 29, 2024, to cover settlements with various Broiler Opt Outs.

We have recognized these settlement expenses within SG&A expense in our Consolidated Statements of Income.

Between August 30, 2019 and October 16, 2019, a series of purported class action lawsuits were filed in the U.S.

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The plaintiffs are a putative class of poultry processing plant production and maintenance workers (“Poultry Workers Class”) and allege that the defendants conspired to fix and depress the compensation paid to Poultry Workers Class in violation of the Sherman Antitrust Act.

Defendants moved to dismiss on December 18, 2020, which the Maryland Court denied on March 10, 2021.

On June 14, 2021, PPC entered into an agreement to settle all claims made by the Poultry Workers Class for $ 29.0 million, though the agreement is still subject to final approval by the Maryland Court.

On February 16, 2022, the plaintiffs filed an amended complaint, which extended the relevant period, added defendants, and included additional workers in the class.

PPC recognizes these settlement expenses within SG&A expense in the Consolidated Statements of Income.

PPC entered into an agreement to settle all claims made by the Poultry Workers Class for $ 29.0 million and paid the plaintiffs this amount during 2021, though the agreement is still subject to final approval by the Maryland Court.

We have recognized these settlement expenses within SG&A expense in our Consolidated Statements of Income.

On January 27, 2017, a purported class action on behalf of broiler chicken farmers was brought against PPC and other chicken producers in the U.S.

District Court for the Eastern District of Oklahoma (the “Oklahoma Court”) alleging, among other things, a conspiracy to reduce competition for grower services and depress the price paid to growers.

District Court for the Eastern District of Oklahoma alleging, among other things, a conspiracy to reduce competition for grower services and depress the price paid to growers.

The complaint was consolidated with several subsequently filed consolidated amended class action complaints and styled as In re Broiler Chicken Grower Litigation , Case No.

The defendants (including PPC) jointly moved to dismiss the consolidated amended complaint, which the Oklahoma Court denied as to PPC and certain other defendants.

PPC, therefore, continues to litigate against the putative class plaintiffs.

On June 24, 2024, a settlement was reached in the amount of $ 100.0 million.

This settlement was paid on October 28, 2024.

We have recognized these settlement expenses within SG&A expense in our Consolidated Statements of Income.

The incremental increase in settlement amount was recognized in the three months ended June 30, 2024.

On January 7, 2025, the Court granted final approval of the Company’s settlement and dismissed the case.

On October 20, 2016, Patrick Hogan, acting on behalf of himself and a putative class of certain PPC stockholders, filed a class action complaint in the U.S.

District Court for the District of Colorado (“Colorado Court”) against PPC and its named executive officers styled as Hogan v.

Pilgrim’s Pride Corporation, et al., No.

16-CV-02611 (“Hogan Litigation”).

The complaint alleges, among other things, that PPC’s SEC filings contained statements that were rendered materially false and misleading by PPC’s failure to disclose that (1) PPC colluded with several of its industry peers to fix prices in the broiler-chicken market as alleged in the Broilers Litigation, (2) its conduct constituted a violation of federal antitrust laws, and (3) PPC’s revenues during the class period were the result of illegal conduct.

On July 31, 2020, defendants filed a motion to dismiss, which the Colorado Court granted on procedural grounds on April 19, 2021.

On May 17, 2021, the plaintiff filed a motion for amended judgment, which the Colorado Court denied on November 29, 2021.

The plaintiff then filed a notice of appeal on December 28, 2021, and the appeal was opened in the U.S.

Court of Appeals for the Tenth Circuit.

On July 13, 2023, the Tenth Circuit reversed the Colorado Court decision and remanded to consider the complaint on the merits.

PPC filed a renewed motion to dismiss the complaint in the Colorado Court which was denied on December 26, 2023.

PPC will therefore litigate against the putative class plaintiffs.

District Court for the District of Colorado against PPC and its named executive officers styled as Hogan v.

Pilgrim’s Pride Corporation, et al.

The complaint alleges, among other things, that PPC’s SEC filings contained statements that were rendered materially false and misleading.

On December 6, 2024, the Company entered into a settlement agreement in principal with the putative class in the amount of $ 41.5 million, which is subject to court approval.

We have recognized this expense in SG&A expense in the Consolidated Statements of Income.

State Matters

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, 21-2-14174-5), respectively, filed complaints against PPC and others based on allegations similar to those asserted in the Broiler Antitrust Litigation.

PPC has answered all of the complaints and each case is now in discovery.

On March 9, 2023, PPC entered into an agreement to settle all claims made by the State of Washington for $ 11.0 million.

The State of Washington claim was paid in the second quarter of 2023.

PPC will seek reasonable settlements where they are available.

To date, PPC has recognized an accrual of $ 5.4 million to cover settlements with other Attorneys General.

The State of Washington settlement was paid in the second quarter of 2023 for $ 11.0 million.

On June 24, 2024, PPC entered into a settlement with the Attorney General in New Mexico for $ 5.2 million.

The State of New Mexico settlement was paid in the third quarter of 2024.

On July 3, 2024, PPC entered into a settlement with Attorney General in Alaska for $ 1.25 million, and this amount was paid on July 10, 2024.

These settlements were recognized in SG&A expense in our Consolidated Statements of Income in their respective periods.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Federal Matters

On February 9, 2022, the Company lea rned that the DOJ opened a civil investigation into human resources antitrust matters, and on October 6, 2022, the Company learned that the DOJ opened a civil investigation into grower contracts and payment practices and on October 2, 2023, received a CID requesting information from the Company.

The Company is cooperating with the DOJ in its investigations and CID.

On February 9, 2022, PPC learned that the DOJ opened a civil investigation into human resources antitrust matters, and on October 6, 2022, PPC learned that the DOJ opened a civil investigation into grower contracts and payment practices and on October 2, 2023, received a CID requesting information from PPC.

PPC is cooperating with the DOJ in its investigations and CID.

The DOJ has informed the Company that it is likely to file a civil complaint pursuant to at least one of these investigations.

BUSINESS INTERRUPTION INSURANCE

The Company experienced business interruptions from the COVID-19 pandemic, a winter storm in Texas and Louisiana during February 2021, and a tornado on December 10, 2021 in Mayfield, Kentucky that significantly damaged two hatcheries and a feed mill.

The Company maintains certain insurance coverage, including business interruption insurance, intended to cover such circumstances.

In the year ended December 31, 2023, the Company received $ 60.4 million in proceeds and recognized $ 54.4 million in income from business interruption insurance in Cost of sales on the Consolidated Statement of Income.

Of the total amount recognized in 2023, $ 43.8 million was in the U.S.

reportable segment and $ 10.6 million was in the U.K.

and Europe reportable segment.

In the year ended December 25, 2022, the Company received $ 11.0 million in proceeds and recognized $ 26.4 million in income from business interruption insurance in Cost of sales on the Consolidated Statement of Income.

MARKET RISKS AND CONCENTRATIONS

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In the absence of an agreement, we may become subject to labor disruption at one or more of these locations, which could have an adverse effect on our financial results.

As of December 31, 2023, the aggregate carrying amount of net assets belonging to our Mexico and U.K.

and Europe reportable segments was $ 1.3 billion and $ 3.1 billion, respectively.

As of December 25, 2022, the aggregate carrying amount of net assets belonging to our Mexico and U.K.

and Europe reportable segments was $ 1.1 billion and $ 2.8 billion, respectively.

As of December 29, 2024, the aggregate carrying amount of net assets belonging to our Mexico and Europe reportable segments was $ 0.7 billion and $ 2.9 billion, respectively.

As of December 31, 2023, the aggregate carrying amount of net assets belonging to our Mexico and Europe reportable segments was $ 1.3 billion and $ 3.1 billion, respectively.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data