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Item 8. Financial Statements and Supplementary Data

2026-02-12 compared with 2025-02-13 · 367 added, 415 removed, 1645 unchanged (32% of the section changed)

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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 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 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 had an impact on the fair value of the reporting units.

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.

Evaluation of tax claims and proceedings in connection with the acquisition of Tyson de México

As discussed in Notes 1 and 21 to the consolidated financial statements, the Company is subject to various proceedings and claims.

The Company is required to assess the likelihood of any adverse judgments or outcomes, as well as potential ranges of probable losses, related to these matters.

The Company evaluated complex Mexican tax laws and regulations related to tax assessments from its acquisition of Tyson de México and estimated a probable loss of $88.2 million as of December 28, 2025.

We identified the evaluation of the tax assessments against the Company in connection with its acquisition of Tyson de México as a critical audit matter.

Subjective auditor judgment, and specialized skills and knowledge, were required to evaluate the Company's assessment of the probability of an unfavorable outcome because of the complexity of interpreting and applying Mexican tax laws and regulations.

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 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, 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:

• evaluating the discount rates used by comparing the Company’s inputs to the discount rates to publicly available data for comparable companies and assessing the resulting discount rates

• comparing the selected terminal growth rates to the Company’s growth expectations using publicly available industry and economic data.

We evaluated the design and tested the operating effectiveness of certain internal controls related to the Company’s proceedings and claims process.

This included controls over the Company’s interpretation and application of Mexican tax laws and regulations.

We evaluated the Company’s assessment of the probability of the loss by reading certain written analyses from the Company.

In addition, we involved tax professionals with specialized skills and knowledge, who assisted in assessing the probability of the loss by inspecting correspondence and assessments from Mexican tax authorities, interpreting complex Mexican tax laws and regulations and comparing our interpretation to the Company’s analyses.

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

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Reclassification to net earnings for losses (gains) realized 2,814 ( 1,849 ) 1,813

Income tax effect — — ( 24 )

Available-for-sale securities

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Defined benefit plans

Gains realized during the period 15,535 6,751 8,505

Gains (losses) realized during the period ( 11 ) 15,535 6,751

Income tax effect 2 ( 3,849 ) ( 1,825 )

Reclassification to net earnings of losses realized 22,530 1,065 1,381

Reclassification to net earnings of losses (gains) realized ( 1,690 ) 22,530 1,065

Income tax effect 415 ( 5,530 ) ( 258 )

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

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

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

— — — — — — 159,965 — 159,965

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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 expense of $( 9,386 )

— — — — — — ( 193,817 ) — ( 193,817 )

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Net income — — — — — 1,082,359 — 985 1,083,344

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

Other comprehensive income, net of tax benefit of $ 416

— — — — — — 323,278 — 323,278

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Requisite service period recognition — — — — 29,354 — — — 29,354

Special cash dividend — — — — — ( 1,994,347 ) — — ( 1,994,347 )

Purchase of noncontrolling interest — — — — — — — ( 1,294 ) ( 1,294 )

Balance at December 28, 2025 262,688 $ 2,627 ( 25,142 ) $ ( 544,687 ) $ 2,023,609 $ 2,245,523 $ ( 47,022 ) $ 13,681 $ 3,693,731

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Depreciation and amortization 456,157 433,622 419,900

Asset impairment 28,575 4,010 3,559

Stock-based compensation 29,354 14,873 7,226

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 10,039 4,830 6,675

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

Loan cost amortization 4,939 5,033 7,366

Loss (gain) on property disposals 3,882 1,779 ( 6,052 )

Accretion of bond discount 2,380 2,506 2,278

Loss (gain) on early extinguishment of debt recognized as a component of interest expense 573 ( 11,211 ) 20,694

Asset impairment 493 28,575 4,010

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

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Proceeds from property insurance recoveries — — 20,681

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

Cash used in investing activities ( 705,510 ) ( 460,797 ) ( 503,351 )

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

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 of cash dividends ( 1,994,347 ) — —

Payment on early extinguishment of debt ( 2,120 ) ( 200 ) ( 13,780 )

Purchase of noncontrolling interest ( 1,294 ) — —

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 )

Payment of capitalized loan costs — ( 16 ) ( 19,816 )

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

Cash provided by (used in) financing activities ( 2,112,995 ) ( 150,911 ) 116,727

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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.

Fiscal years 2025 and 2024 were both 52-week fiscal years.

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 operations in France, the Netherlands and the Republic of Ireland is the euro.

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.

In 2024, the Company 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 included 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.

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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.

The functional currency of the Company’s operations in Mexico during fiscal year 2025 is the Mexican peso.

For foreign currency-denominated entities, 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.

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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.

Due to the nature of the 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.

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Total cash, cash equivalents, restricted cash and restricted cash equivalents shown in the Consolidated Statements of Cash Flows $ 640,235 $ 2,043,158

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.

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The Company invests from time to time in ventures in which its ownership interest is less than 20% and over which it does not exercise significant influence.

Such investments are accounted for under the cost method.

Such investments are carried at cost, less any impairment, and adjusted for observable price changes in orderly transactions for an identical or similar investment of the same issuer.

The fair values for investments not traded on a quoted exchange are estimated based upon the historical performance of the ventures, the ventures’ forecasted financial performance and management’s evaluation of the ventures’ viability and business models.

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The Company records accounts receivable when revenue is recognized.

We record an allowance for expected credit losses, reducing our receivables balance to an amount we estimate is collectible from our customers.

The Company records an allowance for expected credit losses, reducing our receivables balance to an amount we estimate is collectible from our customers.

Estimates used in determining the allowance for credit losses are based on historical collection experience, current trends, aging of accounts receivable, and periodic credit evaluations of our customers’ financial condition.

We write off accounts receivable when it becomes apparent, based upon age or customer circumstances, that such amounts will not be collected.

The Company writes off accounts receivable when it becomes apparent, based on age or customer circumstances, that such amounts will not be collected.

Generally, the Company does not require collateral for its accounts receivable.

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The standard cost at which each type of inventory transfers is set by management to reflect the actual costs incurred in the prior steps.

We monitor and adjust standard costs throughout the year to ensure that standard costs reasonably reflect the actual average cost of the inventory produced.

The Company monitors and adjusts standard costs throughout the year to ensure that standard costs reasonably reflect the actual average cost of the inventory produced.

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

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

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.

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.

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 its 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 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 overhead 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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If actual market conditions or other factors are less favorable than those projected by management, additional inventory adjustments may be required.

The Company also records valuation adjustments, when necessary, for estimated obsolescence at or equal to the difference between the cost of inventory and the estimated market value based upon known conditions affecting inventory obsolescence, including significantly aged products, discontinued product lines, or damaged or obsolete products.

The Company also records valuation adjustments, when necessary, for estimated obsolescence at or equal to the difference between the cost of inventory and the estimated market value based on known conditions affecting inventory obsolescence, including significantly aged products, discontinued product lines, or damaged or obsolete products.

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

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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.

Operating lease assets and operating lease liabilities are initially recognized based on the present value of the future minimum lease payments over the lease term at commencement date.

Operating lease assets and operating lease liabilities are initially recognized based on the present value of the future minimum lease payments over the lease term at the commencement date.

As most of the Company’s leases do not provide an implicit interest rate, the Company uses its incremental borrowing rate (“IBR”) based on the information available at commencement date in determining the present value of future payments.

IBR is derived from the Company’s credit facility’s margin as a basis with adjustments to periodically updated SOFR swap rate and foreign currency curve.

IBR is derived from the Company’s credit facility’s margin as a basis with adjustments to the periodically updated SOFR swap rate and foreign-currency curve.

The operating lease asset also includes any lease payments made, including upfront costs and prepayments, and excludes lease incentives and initial direct costs incurred.

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Depreciation is computed using the straight-line method over the estimated useful lives of these assets.

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

Estimated useful lives for buildings, 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 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.

When the above is true, the impairment charge is determined based upon the amount the net book value of the assets exceeds their fair market value.

When this occurs, the impairment charge is determined based on the amount the net book value of the assets exceeds their fair market value.

In making these determinations, the Company utilizes certain assumptions, including but not limited to:

(1) future cash flows estimated to be generated by these assets, which are based on additional assumptions such as asset utilization, remaining length of service and estimated salvage values, (2) estimated fair market value of the assets, and (3) determinations with respect to the lowest level of cash flows relevant to the respective impairment test, generally groupings of related operational facilities.

Given the interdependency of the Company’s individual facilities during the production process, which operate as a vertically integrated network, it evaluates impairment of assets held for use at the country level (i.e., the U.S.

Management believes this is the lowest level of identifiable cash flows for its assets that are held for use in production activities.

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.

Given the interdependency of the Company’s individual facilities during the production process, that operate as a vertically integrated network, it evaluates impairment of assets held for use at the country level (i.e., the U.S.

Management believes this is the lowest level of identifiable cash flows for its assets

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

that are held for use in production activities.

At present, 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.

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.

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

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

Goodwill and Other Intangibles, net

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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 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.

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

Management performed a qualitative analysis noting that it was not more likely than not that there was goodwill impairment in any of its reporting units as of December 28, 2025.

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, and quantitative analysis is performed.

If management determines there is an indication that the carrying amount of the intangible asset might be impaired, and a 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 28, 2025.

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The Company is subject to lawsuits, investigations, and other claims related to employment, environmental, product, and other matters.

The Company is required to assess the likelihood of any adverse judgments or outcomes, as well as potential ranges of probable losses, to these matters.

The Company is required to assess the likelihood of any adverse judgments or outcomes, as well as potential ranges of probable losses related to these matters.

The Company estimates the amount of reserves required for these contingencies when losses are determined to be probable and after considerable analysis of each individual issue.

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Accrued Self-Insurance

Insurance expense for casualty claims and employee-related health care benefits are estimated using historical and current experience and actuarial estimates.

Insurance expense for casualty claims and employee-related health care benefits is estimated using historical and current experience and actuarial estimates.

Stop-loss coverage is maintained with third-party insurers to limit the Company’s total exposure.

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The assumptions used to arrive at periodic expenses are reviewed regularly by management.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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The Company monitors certain asset retirement obligations in connection with its operations.

These obligations relate to clean-up, removal or replacement activities and related costs for “in-place” exposures only when those exposures are moved or modified, such as during renovations of our facilities.

These obligations relate to clean-up, removal, or replacement activities and related costs for “in-place” exposures only when those exposures are moved or modified, such as during renovations of the Company’s facilities.

These in-place exposures include asbestos, refrigerants, wastewater, oil, lubricants, and other contaminants common in manufacturing environments.

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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.

Under this approach, deferred income taxes reflect the net tax effect of temporary differences between the book and tax bases of recorded assets and liabilities, net operating losses and tax credit carry forwards.

The amount of deferred tax on these temporary differences is determined using the tax rates expected to apply to the period when the asset is realized or the liability is settled, as applicable, based on the tax rates and laws in the respective tax jurisdiction enacted as of the balance sheet date.

The Company reviews its deferred tax assets for recoverability and establishes a valuation allowance based on historical taxable income, potential for carry back of tax losses, projected future taxable income, applicable tax strategies, and the expected timing of the reversals of existing temporary differences.

The Company reviews its deferred tax assets for recoverability and establishes a valuation allowance based on historical taxable income, potential for carryback of tax losses, projected future taxable income, applicable tax strategies, and the expected timing of the reversals of existing temporary differences.

A valuation allowance is provided when it is more likely than not that some or all of the deferred tax assets will not be realized.

Valuation allowances have been established primarily for net operating loss carry forwards of certain foreign subsidiaries.

The Company deems its earnings from Mexico, Puerto Rico, the U.K., the Republic of Ireland, France, the Netherlands, Luxembourg and Malta as of December 29, 2024 to be permanently reinvested.

As such, U.S.

deferred income taxes have not been provided on these earnings.

If such earnings were not considered indefinitely reinvested, certain deferred foreign and U.S.

income taxes would be provided.

Valuation allowances have been established primarily for net operating loss carryforwards of certain foreign subsidiaries.

During 2025, the Company changed its assertion regarding the permanent reinvestment of certain foreign earnings.

For Mexico, we no longer consider cumulative earnings through 2025 to be permanently reinvested.

As a result, the Company recognized a deferred tax liability and associated income tax expense of approximately $ 7.1 million.

For Puerto Rico, the U.K., the Republic of Ireland, France, the Netherlands, Luxembourg, and Malta, there are no positive cumulative earnings from these jurisdictions as of December 28, 2025, and therefore the Company is precluded from making a permanent reinvestment assertion for these jurisdictions.

The Company follows provisions within ASC Topic 740, Income Taxes , that provide a recognition threshold and measurement criteria for the financial statement recognition of a tax benefit taken or expected to be taken in a tax return.

Tax benefits are recognized only when it is more-likely-than-not, based on the technical merits, that the benefits will be sustained on examination.

Tax benefits that meet the more-likely-than-not recognition threshold are measured using a probability weighting of the largest amount of tax benefit that has greater than 50% likelihood of being realized upon settlement.

Tax benefits that meet the more-likely-than-not recognition threshold are measured using a probability weighting of the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement.

Whether the more-likely-than-not recognition threshold is met for a particular tax benefit is a matter of judgment based on the individual facts and circumstances evaluated in light of all available evidence as of the balance sheet date.

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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 effective for each tax year beginning on or after December 30, 2024, or such other date on 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.

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We base the discount rate assumptions on current investment yields on high-quality corporate long-term bonds.

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

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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.

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.

Derivative Financial Instruments

The Company uses derivative financial instruments (e.g., futures, forwards options and swaps) for the purpose of mitigating exposure to changes in commodity prices, foreign currency exchange rates and interest rates.

The Company uses derivative financial instruments (e.g., futures, forwards options, and swaps) for the purpose of mitigating exposure to changes in commodity prices and foreign currency exchange rates.

• Commodity Price Risk - The Company utilizes various raw materials, which are all considered commodities, in its operations, including corn, soybean meal, soybean oil, wheat, natural gas, electricity, and diesel fuel.

The Company considers these raw materials to be generally available from a number of different sources and believes it can obtain them to meet its requirements.

These commodities are subject to price fluctuations and related price risk due to factors beyond our control, such as economic and political conditions, supply and demand, weather, governmental regulation and other circumstances.

These commodities are subject to price fluctuations and related price risk due to factors beyond the Company’s control, such as economic and political conditions, supply and demand, weather, governmental regulation and other circumstances.

Generally, the Company enters into derivative contracts such as physical forward contracts and exchange-traded futures or option contracts in an attempt to mitigate price risk related to its anticipated consumption of commodity inputs for periods up to 12 months.

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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.

The Company has purchased in the past an interest rate swap contract to convert the variable interest rate to a fixed interest rate on a portion of its outstanding long-term debt arrangements in order to manage this interest rate risk and add stability to interest expense and cash flows.

Pilgrim’s recognizes all commodity derivative instruments that qualify for derivative accounting treatment as either assets or liabilities and measures those instruments at fair value unless they qualify for, and we elect, the normal purchases and normal sales scope exception (“NPNS”).

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cash flow hedge;

fair value hedge;

and undesignated contracts.

fair value hedge, and undesignated contracts.

Undesignated contract accounting is the default accounting treatment for all derivatives unless they qualify, and we specifically designate them, for one of the other accounting treatments.

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The fair value 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 these derivatives are recognized immediately in the Consolidated Statements of Income within Net sales , Cost of sales or SG&A expense , depending on the risk they are intended to mitigate.

Changes in fair value of these derivatives 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 they are intended to mitigate.

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 restricted cash equivalents on the Consolidated Balance Sheets, except in scenarios where the margin cash is not fully settled and in these scenarios, the outstanding balance is reported in Accrued expenses and other liabilities on the Consolidated Balance Sheets.

While management believes these instruments help mitigate various market risks, they are not designated nor accounted for as hedges as a result of the extensive record keeping requirements.

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.

Business Combination Accounting

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Pilgrim’s allocates the consideration of an acquired business to its identifiable assets and liabilities based on estimated fair values.

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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

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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 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.

1 unchanged sentence

The Company adjusts the preliminary acquisition accounting, as necessary, typically up to one year after the acquisition closing date for those items that existed at the acquisition date and were provisionally accounted for at that time, as it obtains more information regarding asset valuations and liabilities assumed.

The Company’s acquisition accounting methodology contains uncertainties because it requires management to make assumptions and to apply judgment to estimate the fair value of acquired assets and liabilities.

The Company’s acquisition accounting methodology contains uncertainties because it requires management to make assumptions and apply judgment to estimate the fair value of acquired assets and liabilities.

Management estimates the fair value of assets and liabilities based upon quoted market prices, the carrying value of the acquired assets and widely accepted valuation techniques, including discounted cash flows and market multiple analyses.

1 unchanged sentence

If actual results are materially different than the assumptions used to determine fair value of the assets and liabilities acquired through a business combination, it is possible that adjustments to the carrying values of such assets and liabilities will have an impact on the Company’s net earnings.

Industrial Revenue Bond Transactions

On November 7, 2025, the Company closed an industrial revenue bond transaction with the Walker County Development Authority (the “Authority”) in order to receive a ten-year property tax incentive on the Company’s production facility in Walker County currently under development.

Pursuant to this transaction, the Authority issued an industrial development revenue bond in the amount of $ 460.5 million (subject to drawdowns as construction progresses) to the Company in order to acquire legal title to the land for the facility from the Company.

The Authority then leased the land back to the Company under a finance lease, the terms of which provide for the payment of rent in an amount equal to the debt service owed by the Authority on the bonds.

Title to buildings to be constructed and equipment to be acquired will also be acquired by the Authority and leased to the Company through this program.

At this time, only the related land is recorded as an asset in Property, plant, and equipment, net on the Company’s Consolidated Balance Sheet.

The Company has the legal right to set-off and intends to set-off the corresponding lease and bond debt 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.

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”) 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 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.

Use of Estimates

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Actual results could differ from those estimates.

We make significant estimates in regard to realization of deferred tax assets;

The Company makes significant estimates in regard to realization of deferred tax assets;

valuation of long-lived assets;

1 unchanged sentence

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.

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 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

Improvements to Income Tax Disclosures , which requires additional disclosures for income taxes to enhance transparency and usefulness of income tax disclosures.

The guidance requires additional disclosures for the tabular rate reconciliation, income taxes paid, and the disaggregation of domestic, federal and state, and foreign components within income (or loss) from continuing operations before income tax expense (or benefit) and income tax expense (or benefit) from continuing operations.

The provisions of the new guidance is effective for years beginning after December 15, 2024.

The Company adopted this guidance effective for fiscal year 2025.

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

Additional information regarding segments is included in “Note 12.

Income Taxes.”

Recent Accounting Pronouncements Adopted in 2024

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

6 unchanged sentences

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):

Disclosure of Supplier Finance Program Obligations , which requires disclosure of the existence of supplier financing programs.

The guidance requires disclosure about the nature of the supplier financing agreements, including key terms and payment timing and determination of amounts, the accounting treatment for the transactions and the effect of the transactions on the financial statements, as well as any assets pledged or guarantees provided to the providers of the financing programs.

The provisions of the new guidance were effective for years beginning after December 15, 2022 with the requirement to add rollforward disclosures for years beginning after December 15, 2023.

The Company adopted this guidance effective December 26, 2022.

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

Additional information regarding supplier finance programs is included in “Note 11.

Supplier Finance Programs.”

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients and exceptions to the application of current GAAP to existing contracts, hedging relationships and other transactions affected by reference rate reform.

The new guidance will ease the transition to new reference rates by allowing entities to update contracts and hedging relationships without applying many of the contract modification requirements specific to those contracts.

The provisions of the new guidance are effective beginning March 12, 2020, extending through December 31, 2022 with the option to apply the guidance at any point during that time period.

In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848), which provides further clarification on the scope of Topic 848 so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions in Topic 848.

Once an entity elects an expedient or exception it must be applied to all eligible contracts or transactions.

The Company adopted this guidance effective December 26, 2022.

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

Recent Accounting Pronouncements Not Yet Adopted as of December 28, 2025

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

Improvements to Income Tax Disclosures , which requires additional disclosures for income taxes to enhance transparency and usefulness of income tax disclosures.

The provisions of the new guidance will be effective for years beginning after December 15, 2024.

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.

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Total lease liabilities $ 258,945 $ 1,389 $ 259,271 $ 1,792

DERIVATIVE FINANCIAL INSTRUMENTS

The Company utilizes various raw materials in its operations, including corn, soybean meal, soybean oil, wheat, natural gas, electricity and diesel fuel, which are all considered commodities.

The Company considers these raw materials generally available from a number of different sources and believes it can obtain them to meet its requirements.

Generally, the Company purchases derivative financial instruments, specifically exchange-traded futures and options, in an attempt to mitigate price risk related to its anticipated consumption of commodity inputs for approximately the next twelve months.

The Company may purchase longer-term derivative financial instruments on particular commodities if deemed appropriate.

The Company has operations in Mexico, the U.K., France, the Netherlands and the Republic of Ireland.

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

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 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 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 it has purchased to mitigate commodity purchase exposures in the U.S.

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

Therefore, the Company recognized changes in the fair value of these derivative financial instruments immediately in earnings.

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

Realized gains and losses related to cash flows are disclosed in the Consolidated Statements of Cash Flows in Cash provided by operating activities.

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) in the Consolidated Statements of Income.

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.

NPNS contracts are accounted for using the accrual method of accounting;

therefore, amounts payable under these contracts are recorded when we take delivery of the contracted product and no amounts were recorded for the fair value of these contracts in the Consolidated Financial Statements at December 29, 2024 and December 31, 2023.

DERIVATIVE FINANCIAL INSTRUMENTS

Information regarding the Company’s outstanding derivative instruments and cash collateral posted with brokers is included in the following table:

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Foreign currency derivative liabilities ( 205 ) ( 1,397 )

Sales contract derivative assets — 960

Sales contract derivative liabilities ( 2,638 ) ( 778 )

Cash collateral posted with brokers (a)

Derivatives coverage (b) :

Margin cash payable (b)

Derivatives coverage (c)

Corn 11.6 % 11.5 %

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Period through which stated percent of needs are covered:

Corn December 2025 July 2024

Soybean meal March 2026 March 2024

Corn December 2026 December 2025

Soybean meal December 2026 March 2026

(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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(b) Collateral that is owed to brokers is reflected in margin cash payable

(c) 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:

11 unchanged sentences

Foreign currency derivatives $ ( 2,318 ) $ 1,767 $ ( 2,579 )

Interest rate swap derivatives — — 98

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Gains (Losses) Reclassified from AOCI into Income

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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 28, 2025 December 29, 2024

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The fees are immaterial.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Inventories consisted of the following:

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Fixed income securities $ 520,809 $ 520,899 $ 1,702,493 $ 1,702,697

Short-term investment:

Short-term investments

Fixed income securities — — 10,000 10,220

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Interest income and gross realized gains during 2025 and 2024 related to the Company’s available-for-sale securities totaled $ 50.5 million and $ 70.8 million, respectively, while gross realized losses were immaterial .

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Intangible assets consisted of the following:

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 29, 2024 Amortization Currency Translation December 28, 2025

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Customer relationships 441,719 — ( 9,858 ) 431,861

Accumulated amortization

Trade names ( 57,762 ) ( 3,893 ) 128 ( 61,527 )

1 unchanged sentence

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Intangible assets are amortized over the estimated useful lives of the assets as follows:

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On July 28, 2025, 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 previous reporting units were Fresh Pork/Lamb, Fresh Poultry, Food Service, Meals, and Brands & Snacking.

The new 2025 reorganization resulted in one plant moving from Fresh Pork/Lamb into Fresh Poultry and combining Meals and Brands & Snacking into one reporting unit called Added Value.

The resulting reporting units of this reorganization are Fresh Pork/Lamb, Fresh Poultry, Food Service, and Added Value.

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 which is consistent with the reallocation method using in the prior year’s reorganization.

The Company then assessed if the reorganization was a triggering event that required an interim impairment test.

This resulted in an interim impairment test being performed on the Fresh Pork/Lamb reporting unit on both a pre- and post-reorganization basis.

There was no impairment recognized as a result of this test.

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.

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There were no indicators present that required the Company to test the recoverability of the aggregate carrying amount of its intangible assets subject to amortization at that date.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PROPERTY, PLANT AND EQUIPMENT

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During 2025, the Company incurred $ 718.5 million on capital projects and transferred $ 359.2 million of completed projects from construction-in-progress to depreciable assets.

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

2 unchanged sentences

PP&E sold in 2025 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.

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

PP&E sold in 2024 consisted of a farm in Mexico and other miscellaneous equipment.

9 unchanged sentences

There were no indicators present that required the Company to test the recoverability of the aggregate carrying amount of its property, plant and equipment held for use at that date.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

CURRENT LIABILITIES

13 unchanged sentences

Compensation and benefits 367,035 346,355

Accrued sales rebates 116,439 104,390

Litigation settlements 152,940 111,769

Accrued sales rebates 135,108 116,439

Insurance and self-insured claims 104,009 76,025

Interest and debt-related fees 64,947 65,192

Taxes 60,577 35,938

Current maturities of operating lease liabilities (c)

59,630 63,327

Taxes 35,938 37,635

Derivative liabilities (d)

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Derivative Financial Instruments.”

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SUPPLIER FINANCE PROGRAMS

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

December 29, 2024

December 28, 2025 December 29, 2024

(In thousands)

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Confirmed obligations outstanding, end of year $ 209,394 $ 152,780

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

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Total deferred 10,039 4,831 6,675

Total $ 325,046 $ 42,905 $ 278,935

Current and Deferred

Federal 263,817 193,603 ( 6,944 )

Foreign 104,860 87,497 48,753

State and other 50,117 43,946 1,096

Total Current and Deferred $ 418,794 $ 325,046 $ 42,905

The effective tax rate for 2025 was 28.0 % compared to 23.0 % for 2024 and 11.7 % for 2023.

2 unchanged sentences

December 28, 2025 December 29, 2024 December 31, 2023

Federal income tax rate 21.0 % 21.0 % 21.0 %

State tax rate, net 2.4 0.6 3.2

(In thousands, except percent data)

federal statutory tax rate $ 315,449 21.0 % $ 296,577 21.0 % $ 76,697 21.0 %

United States

Changes in valuation allowances 820 0.1 3,278 0.2 ( 1,071 ) ( 0.3 )

Effect of cross-border tax laws

Global intangible low-taxed income ( 434 ) — 1,501 0.1 9,294 2.6

Mexico tax audit — — 3.8

Intercompany financing ( 0.9 ) ( 5.7 ) ( 1.9 )

Permanent items 1.7 ( 0.9 ) ( 0.9 )

Difference in U.S.

statutory tax rate and foreign country effective tax rate 2.3 5.2 1.2

Rate change ( 0.5 ) ( 0.7 ) ( 0.9 )

Other 6,502 0.3 5,936 0.4 ( 2,986 ) ( 0.8 )

Nontaxable or nondeductible items

Other 9,225 0.6 4,981 0.3 2,887 0.8

Foreign tax credit — — — — ( 5,530 ) ( 1.5 )

Other 3,308 0.2 ( 7,534 ) ( 0.5 ) ( 2,267 ) ( 0.6 )

State and local income taxes, net of federal income tax effect 74,849 5.0 28,517 2.0 ( 13,031 ) ( 3.6 )

Foreign tax effect

Other — — 2,500 0.2 843 0.2

Statutory income tax rate differential 94 — 963 0.1 2,177 0.6

Changes in valuation allowances ( 1,348 ) ( 0.1 ) ( 1,767 ) ( 0.1 ) 2,286 0.6

Imputed interest on intercompany financing ( 14,754 ) ( 1.0 ) ( 14,907 ) ( 1.1 ) ( 15,871 ) ( 4.3 )

Other 1,495 0.1 22 — 11 —

Statutory income tax rate differential 1,498 0.1 1,699 0.1 2,435 0.7

Changes in valuation allowances 799 0.1 752 0.1 618 0.2

Notional deduction against interest income — — — — ( 12,392 ) ( 3.4 )

Notional deduction carryforward from prior year ( 24 ) — ( 25,963 ) ( 1.8 ) — —

Other ( 523 ) — ( 451 ) — ( 1,082 ) ( 0.3 )

Statutory income tax rate differential ( 1,043 ) ( 0.1 ) ( 899 ) ( 0.1 ) 5,508 1.5

Non taxable and nondeductible items 3,054 0.2 294 — 348 0.1

Foreign currency translation 5,563 0.4 ( 6,222 ) ( 0.4 ) ( 29,437 ) ( 8.1 )

Tax credits ( 0.8 ) ( 3.0 ) ( 0.4 )

Change in reserve for unrecognized tax benefits 0.1 — ( 0.4 )

Change in valuation allowance ( 0.2 ) 6.9 2.8

Return to provision 0.1 ( 4.1 ) —

Other ( 9,610 ) ( 0.6 ) 2,109 0.1 ( 4,594 ) ( 1.3 )

Statutory income tax rate differential 16,046 1.1 24,116 1.7 18,026 4.9

Changes in valuation allowances ( 111 ) — 180 — ( 1,028 ) ( 0.3 )

United Kingdom

Federal tax credit carryforward adjustment from prior years — — 19,168 1.4 592 0.2

Other 2,807 0.2 5,250 0.4 ( 6,478 ) ( 1.8 )

Statutory income tax rate differential 5,360 0.4 2,622 0.2 875 0.2

Changes in valuation allowances ( 3,004 ) ( 0.2 ) ( 18,221 ) ( 1.3 ) 14,155 3.9

Other foreign jurisdictions 2,776 0.2 545 — 1,920 0.5

Total $ 418,794 28.0 % $ 325,046 23.0 % $ 42,905 11.7 %

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.

In 2025, state and local taxes in California, Illinois, Florida and Minnesota comprise the majority of the state and local income taxes, net of federal effect category.

In 2024, state and local income taxes in California, Texas and Illinois comprise the majority of the state and local income taxes, net of federal effect category.

In 2023, state and local income taxes in Florida and South Carolina comprise the majority of the state and local income taxes, net of federal effect category.

Pilgrim’s historically would settle its stand-alone unitary tax liability with JBS USA the year subsequent to the actual state tax return filings.

Due to the new tax sharing agreement with JBS USA effective December 30, 2024, Pilgrim’s is currently required to estimate and pay its stand-alone unitary tax liability on a quarterly basis following current year estimated state tax deadlines.

Since the tax accounting method for Pilgrims’ state taxes is the cash method, this led to 2024 and 2025 state unitary payments being incurred in 2025, and a higher state effective tax rate for the 2025 year.

Business and Summary of Significant Accounting Policies” for more information regarding the new tax sharing agreement.

Nontaxable and Nondeductible items primarily relate to expenses for meals and entertainment and inflationary adjustments incurred by PPC Mexico that are not deductible for income tax purposes under applicable tax regulations.

These amounts impact the effective tax rate as they represent permanent differences between financial reporting and taxable income.

Income taxes paid (net of refunds) exceeded 5% of total income taxes paid (net of refunds) in the following jurisdictions:

December 28, 2025 December 29, 2024 December 31, 2023

(In thousands)

federal $ 151,548 $ 125,143 $ ( 28,777 )

state and local

Florida — — 3,150

Other 74,131 23,513 ( 1,388 )

Total state and local 74,131 23,513 1,762

Mexico 55,310 — 39,053

United Kingdom 67,361 30,909 2,741

France — 11,668 3,847

Other 13,542 6,324 1,122

Total foreign 136,213 48,901 46,763

Total $ 361,892 $ 197,557 $ 19,748

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

4 unchanged sentences

Inventories 104,591 93,513

Incentive compensation — 8,984

Operating lease assets 65,910 63,717

10 unchanged sentences

Operating lease liabilities 66,523 63,717

Advance payments — 22,774

Interest expense limitations 59,121 72,615

33 unchanged sentences

Included in unrecognized tax benefits of $ 31.7 million as of December 28, 2025, was $ 17.8 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.

The Company recognizes interest and penalties related to unrecognized tax benefits in its provision for income taxes.

2 unchanged sentences

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.

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

federal, state and local jurisdictions, for years prior to 2010 in Mexico, and for years prior to 2017 in the U.K.

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

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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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 %

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

Mexico Bajio Credit Facility (defined below) with notes payable at TIIE plus 1.41 %

Live Oak CHP Project PACE Loan 5.15 %

10 unchanged sentences

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.

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

On May 1, 2025, the Board approved an increase to the bond repurchase program for an additional amount of $ 500.0 million.

In year ended December 28, 2025, the Company repurchased $ 59.6 million of outstanding principal of the Senior Notes due 2031 (defined below), $ 0.4 million of outstanding principal of the Senior Notes due 2032 (defined below), and $ 57.5 million of outstanding principal of the Senior Notes due 2033 (defined below), resulting in $ 1.0 million gross realized gains recognized.

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

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

To date under the program, the Company has repurchased $ 203.9 million of outstanding principal of the Senior Notes due 2031, $ 0.4 million of Senior Notes due 2032, and $ 77.5 million of outstanding principal of the Senior Notes due 2033.

Senior Notes Due 2031

On April 8, 2021, the Company completed a sale of $ 1.0 billion aggregate principal amount of its 4.25 % sustainability-linked unsecured senior notes due 2031 (“Senior Notes due 2031”).

On April 8, 2021, the Company completed a sale of $ 1.0 billion aggregate principal amount of its 4.25 % sustainability-linked unsecured, unregistered senior notes due 2031 (“Senior Notes due 2031”).

The Company used the net proceeds, together with cash on hand, to redeem previously issued senior notes.

1 unchanged sentence

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

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.

The Senior Notes due 2031 are governed by, and were issued pursuant to, an indenture dated as of April 8, 2021 by and among the Company, its guarantor subsidiaries and Regions Bank, as trustee (the “April 2021 Indenture”).

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 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.

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.

Senior Notes Due 2032

On September 2, 2021, the Company completed a sale of $ 900.0 million in aggregate principal amount of its 3.50 % unsecured senior notes due 2032 (“Senior Notes due 2032”).

On September 2, 2021, the Company completed a sale of $ 900.0 million in aggregate principal amount of its 3.50 % unsecured, unregistered senior notes due 2032 (“Senior Notes due 2032”).

The Company used the proceeds, together with borrowings under the delayed draw term loan under its U.S.

Credit Facility, to finance the acquisition of the Kerry Consumer Foods’ meats and meals businesses (now Pilgrim’s Food Masters) and to pay related fees and expenses.

Each issuance of the Senior Notes due 2032 is treated as a single class for all purposes under the September 2021 Indenture (defined below) and have the same terms.

The Senior Notes due 2032 are governed by, and were issued pursuant to, an indenture dated as of September 2, 2021 by and among the Company, its guarantor subsidiaries and Regions Bank, as trustee (the “September 2021 Indenture”).

The September 2021 Indenture provides, among other things, that the Senior Notes due 2032 bear interest at a rate of 3.50 % per annum payable semi-annually on March 1 and September 1 of each year.

On September 22, 2022, the Company announced expiration and receipt of requisite consents in its consent solicitation for certain amendments to its Senior Notes due 2031 and Senior Notes due 2032.

The amendments conform certain provisions and restrictive covenants in each indenture to (1) reflect PPC investment grade status and (2) the corresponding provisions and restrictive covenants set forth in the indenture governing its Senior Notes due 2031 and Senior Notes due 2032.

The amendments permanently eliminated certain covenants for the Company, including limitation on incurrence of additional debt, issuance of capital stock, restricted payments, asset sales, restrictions on distributions, affiliate transactions, guarantees of debt by restricted subsidiaries and provisions related to mergers and consolidation.

In addition, provisions related to limitation on liens, sale and leaseback transactions, substitution of the company and measuring compliance were amended.

On September 22, 2022, the Company announced the expiration and receipt of the requisite consents in its consent solicitations for certain amendments to the indentures governing its Senior Notes due 2031 and Senior Notes due 2032.

The amendments conformed certain provisions and restrictive covenants in each indenture to (1) reflect PPC’s investment-grade status and (2) the corresponding provisions and restrictive covenants set forth in the September 2021 Indenture.

The amendments permanently eliminated certain covenants for the Company, including limitations on incurrence of additional debt and issuance of capital stock, restricted payments, asset sales, restrictions on distributions from restricted subsidiaries, affiliate transactions, guarantees of debt by restricted subsidiaries and certain provisions related to mergers and consolidations.

In addition, provisions related to limitation on liens, sale and leaseback transactions, substitution of the Company as an issuer and measuring compliance were amended.

Senior Notes Due 2033

On April 19, 2023, the Company completed a sale of $ 1.0 billion aggregate principal amount of its 6.25 % unsecured, registered senior notes due 2033 (“Senior Notes due 2033”).

The Company used the net proceeds to repay the term loans and the outstanding balance under the U.S.

The Company used the net proceeds to repay the term loans and

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

the outstanding balance under the U.S.

Credit Facility as defined below.

1 unchanged sentence

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

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.

The Senior Notes due 2027, Senior Notes due 2031, Senior Notes due 2032, and Senior Notes due 2033 (together, “Guaranteed Senior Notes”) were and are each guaranteed on a senior unsecured basis by the Company’s guarantor subsidiaries.

On February 16, 2023, the Company exchanged all of its outstanding principal amounts on the Senior Notes due 2031 and the Senior Notes due 2032 for an equal principal amount of new notes in a transaction registered under the Securities Act.

The Senior Notes due 2033 were registered under the Securities Act from the date of sale.

In addition, all of the Company’s other existing or future domestic restricted subsidiaries that incur or guarantee any other indebtedness (with limited exceptions) must also guarantee the Guaranteed Senior Notes.

All the Guaranteed Senior Notes related guarantees were and are unsecured senior obligations of the Company and its guarantor subsidiaries and rank equally with all of the Company’s and its guarantor subsidiaries’ other unsubordinated indebtedness.

The Guaranteed Senior Notes also contain customary covenants and events of default.

The $ 6.9 million discount will be amortized over the 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.

Senior Notes Due 2034

3 unchanged sentences

The $ 9.8 million discount will be amortized over the remaining life of the Senior Notes due 2034.

The Senior Notes due 2034 bear interest at a rate of 6.875 % per annum from the date of issuance until maturity, payable semiannually in arrears on May 15 and November 15 of each year, commencing on May 15, 2024.

The Senior Notes due 2034 are the Company’s senior unsecured obligations and will rank equally with all of the Company’s existing and future senior unsecured debt and rank senior to all of the Company’s existing and future subordinated debt.

The Senior Notes due 2034 will be effectively junior to the Company’s existing and future secured debt to the extent of the value of the collateral securing such debt.

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.

The Senior Notes due 2034 bear interest at a rate of 6.875 % per annum from the date of issuance until maturity, payable semiannually in arrears on May 15 and November 15 of each year.

The Senior Notes due 2031, 2032, 2033, and 2034 are the Company’s senior unsecured obligations and will rank equally with all of the Company’s existing and future senior unsecured debt and rank senior to all of the Company’s existing and future subordinated debt.

Credit Facility

7 unchanged sentences

As of December 28, 2025, the Company had outstanding letters of credit and available borrowings under the revolving credit commitment of $ 4.0 million and $ 846.0 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.

Credit Facility is not guaranteed by any of the Company’s subsidiaries.

Following the Collateral Cure (defined below), each wholly-owned subsidiary of each borrower is required to become a guarantor (other than certain excluded subsidiaries that are not required to become a guarantor).

Credit Facility imposes certain limitations and restrictions on the Company and its restricted subsidiaries, 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.

In addition, the U.S.

Credit Facility and subject to the Collateral Cure, includes a financial maintenance covenant that requires the Company not to permit its interest coverage ratio to be less than 3.50:1.00, which shall be tested at the end of each fiscal quarter of the Company (the “Financial Maintenance Covenant”).

After the end of any fiscal quarter, the Company may give notice that it will not be in compliance with the Financial Maintenance Covenant and instead may elect to cause the borrowers and each subsidiary guarantor to provide security interests in the collateral that secured the Company’s prior secured credit facility (the “Collateral Cure”).

From and after the date of the Collateral Cure, the Financial Maintenance Covenant will no longer be in effect and availability under the U.S.Credit Facility will be limited and subject to collateral coverage utilizing a 75% advance rate on U.S.

receivables and a 50% advance rate on U.S.

inventory, subject to certain exceptions.

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

Credit Facility.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Europe Credit Facility

9 unchanged sentences

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.

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 Europe Credit Facility.

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

Mexico Credit Facility

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 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 will be used for general corporate and working capital purposes.

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

Mexico BBVA Credit Facility

On December 18, 2025, certain of the Company’s Mexican subsidiaries extended 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$ 1.3 billion and can be borrowed on a revolving basis.

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

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

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

The Mexico BBVA Credit Facility will mature on December 18, 2028.

As of December 28, 2025, the U.S.

dollar-equivalent of the loan commitment and borrowing availability was $ 71.2 million.

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.

As of December 28, 2025, there were no outstanding borrowings under the Mexico BBVA Credit Facility.

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

Mexico Bajio Credit Facility

On October 30, 2025, certain of the Company’s Mexican subsidiaries entered into an unsecured credit agreement (the “Mexico Bajio Credit Facility”) with Banco del Bajio as lender.

The loan commitment under the Mexico Bajio Credit Facility is Mex$ 1.5 billion and can be borrowed on a revolving basis.

Outstanding borrowings under the Mexico Bajio Credit Facility accrue interest at a rate equal to TIIE rate plus 1.41 %.

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

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

The Mexico Bajio Credit Facility will mature on October 30, 2030.

As of December 28, 2025, the U.S.

dollar-equivalent of the loan commitment and borrowing availability was $ 83.8 million.

As of December 28, 2025, there were no outstanding borrowings under the Mexico Bajio Credit Facility.

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

Live Oak CHP Project PACE Loan

3 unchanged sentences

As of December 28, 2025, there were $ 19.2 million of outstanding principal under the Live Oak CHP Project PACE Loan.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

STOCKHOLDERS’ EQUITY

9 unchanged sentences

Balance, end of year $ ( 13,218 ) $ ( 1,475 ) $ ( 32,312 ) $ ( 17 ) $ ( 47,022 )

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

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 Losses on Available-for-Sale Securities Total

(In thousands)

9 unchanged sentences

Realized gain (loss) on settlement of foreign currency derivatives classified as cash flow hedges $ ( 2,836 ) $ 1,367 Net sales

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

Realized gain on settlement of foreign currency derivatives classified as cash flow hedge 22 482 Cost of sales

Realized gain (loss) on sale of securities ( 156 ) 82 Interest income

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

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

1,611 ( 21,714 ) Miscellaneous, net

2 unchanged sentences

Total before tax ( 1,280 ) ( 20,599 )

Tax benefit 5,510 300

Tax benefit (expense) ( 377 ) 5,510

Total reclassification for the period $ ( 1,657 ) $ ( 15,089 )

(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.

9 unchanged sentences

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

Special Cash Dividends

On March 13, 2025, the Company declared a special dividend of $ 6.30 per share, to stockholders of record as of April 3, 2025.

On April 17, 2025, the Company paid that special dividend from retained earnings of approximately $ 1.5 billion.

The Company used cash on hand to fund the special cash dividend.

On July 30, 2025, the Company declared a special dividend of $ 2.10 per share, to stockholders of record as of August 20, 2025.

On September 3, 2025, the Company paid that special dividend from retained earnings of approximately $ 500.0 million.

The Company used cash on hand to fund the special cash dividend.

PENSION AND OTHER POSTRETIREMENT BENEFITS

3 unchanged sentences

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 28, 2025 for its pension and postretirement benefits plans.

19 unchanged sentences

Directors’ Emeriti Retirement Plan (the “Directors’ Emeriti Plan”).

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

Pilgrim’s Pride assumed sponsorship of the SERP Plan and Directors’ Emeriti Plan through its

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

acquisition of Gold Kist in 2007.

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

21 unchanged sentences

Projected benefit obligation, end of year $ 119,145 $ 113,730 $ 1,163 $ 1,144

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Pension Benefits Other Benefits

13 unchanged sentences

Overfunded (unfunded) benefit obligation, end of year $ 11,892 $ 10,196 $ ( 1,163 ) $ ( 1,144 )

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Pension Benefits Other Benefits

20 unchanged sentences

Estimated return on plan assets ( 8,040 ) ( 11,106 ) ( 10,393 ) — — —

Settlement loss 21,714 — 1,591 — — —

Settlement loss (gain) ( 1,611 ) 21,714 — — — —

Expenses paid from assets 412 320 327 — — —

Amortization of net loss 798 1,048 1,364 — — —

Amortization of net loss (gain) ( 97 ) 798 1,048 ( 2 ) — —

Amortization of past service cost 18 18 17 — — —

40 unchanged sentences

Cash and cash equivalents 7 % 21 %

Pooled separate accounts for the Union Plan (a) :

Equity securities — % 2 %

Fixed income securities — % 2 %

Pooled separate accounts and common collective trust funds for the GK Pension Plan (a) :

Equity securities — % 25 %

Fixed income securities — % 3 %

Real estate — % 2 %

Pooled separate accounts for the U.K.

9 unchanged sentences

Absent regulatory or statutory limitations, the target asset allocation for the investment of pension assets in the PSAs for the Europe Plans is 12 % overseas equity, 16 % diversified alternatives, 10 % real estate, 48 % equity-linked liability driven investments, 9 % other liability driven investments and 5 % 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.

and 78 % equity-linked liability driven investments, 17 % corporate bonds and 5 % cash for the Geo Adams Group Pension Fund.

The plans only invest in fixed income and equity instruments for which there is a readily available public market .

The Company develops its expected long-term rate of return assumptions based on the historical rates of returns for equity and fixed income securities of the type in which its plans invest.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The fair value measurements of plan assets fell into the following levels of the fair value hierarchy as of December 28, 2025 and December 29, 2024:

3 unchanged sentences

PSAs for the Union Plan:

equity funds (d)

— — — — — 2,123 — 2,123

Small/Mid U.S.

equity funds (e)

— — — — — 1,133 — 1,133

International equity funds (f)

— — — — — 1,654 — 1,654

Fixed income funds (g)

— 70 — 70 — 3,640 — 3,640

Real estate (h)

Fixed income funds (f)

— — — — — 70 — 70

PSAs and CCTs for the GK Pension Plan:

equity funds (d)

— — — — — 27,516 — 27,516

Small/Mid U.S.

equity funds (e)

— — — — — 13,991 — 13,991

International equity funds (f)

— — — — — 13,751 — 13,751

Fixed income funds (g)

— 3,152 — 3,152 — 34,111 — 34,111

Real estate (h)

Fixed income funds (f)

— — — — — 3,152 — 3,152

2 unchanged sentences

— 13,279 — 13,279 — 11,761 — 11,761

International equity funds (f)

International equity funds (e)

— 17,157 — 17,157 — 25,575 — 25,575

Fixed income funds (g)

Fixed income funds (f)

— 40,562 — 40,562 — 29,715 — 29,715

Real estate (h)

Real estate (g)

— 11,464 — 11,464 — 15,442 — 15,442

Liability driven investments (i)

Liability driven investments (h)

— 39,127 — 39,127 — 11,732 — 11,732

5 unchanged sentences

These investment options typically carry more risk than fixed income options but have the potential for higher returns over longer time periods.

(e) This category is generally comprised of investment options that invest in stocks, or shares of ownership, in small to medium-sized U.S.

These investment options typically carry more risk than larger U.S.

equity investment options but have the potential for higher returns.

(f) This category is comprised of investment options that invest in stocks, or shares of ownership, in companies with their principal place of business or office outside of the U.S.

(g) This category is comprised of investment options that invest in bonds, or debt of a company or government entity (including U.S.

(e) This category is comprised of investment options that invest in stocks, or shares of ownership, in companies with their principal place of business or office outside of the U.S.

(f) This category is comprised of investment options that invest in bonds, or debt of a company or government entity (including U.S.

These investment options typically carry more risk than short-term fixed income investment options, but less overall risk than equities.

(h) This category is comprised of investment options that invest in real estate investment trusts or private equity pools that own real estate.

(g) This category is comprised of investment options that invest in real estate investment trusts or private equity pools that own real estate.

These long-term investments are primarily in office buildings, industrial parks, apartments or retail complexes.

These investment options typically carry more risk, including liquidity risk, than fixed income investment options.

(i) This category is comprised of investments that seek to ensure availability of funds to cover current and future liabilities.

(h) This category is comprised of investments that seek to ensure availability of funds to cover current and future liabilities.

These investments are typically focused on both the assets and liabilities of the plan.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Benefit Payments

4 unchanged sentences

Therefore, anticipated benefits with respect to these plans will come from the Company’s own assets.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Pension Benefits Other

15 unchanged sentences

Amortization 79 ( 816 ) ( 1,065 ) 2 — —

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

Realized loss (gain) on settlement 1,611 ( 21,714 ) — — — —

Actuarial loss (gain) ( 2,809 ) ( 20,782 ) 238 4 ( 39 ) ( 21 )

Asset loss (gain) 2,714 5,264 ( 7,317 ) 18 — —

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

Currency translation loss (gain) 176 ( 376 ) 510 — — —

Net actuarial loss (gain), end of year $ 3,834 $ 2,063 $ 40,487 $ ( 102 ) $ ( 126 ) $ ( 87 )

16 unchanged sentences

large and small cap companies with some global diversification into international entities.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Remeasurement

The Company remeasures both plan assets and obligations on a quarterly basis.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Defined Contribution Plans

15 unchanged sentences

However, the compensation cost to be recognized is adjusted at each subsequent milestone date (i.e., forfeiture date, vesting date or financial reporting date) by multiplying the number of awards granted by the closing price of a share of PPC’s common stock on the milestone date.

On May 1, 2019, the Company’s stockholders approved the Pilgrim’s Pride Corporation 2019 Long Term Incentive Plan (the “2019 LTIP”), which replaced the expiring Pilgrim’s Pride Corporation 2009 Long-Term Incentive Plan (the “2009 LTIP”).

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

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.

On April 30, 2025, the Company’s stockholders approved the Amended and Restated Pilgrim’s Pride Corporation 2019 Long Term Incentive Plan (the “Amended 2019 LTIP”), which replaced the expiring Pilgrim’s Pride Corporation 2019 Long-Term Incentive Plan (the “2019 LTIP”).

The Amended 2019 LTIP became effective as of April 30, 2025.

As of December 28, 2025, we have in reserve about 1.2 million shares of common stock for future issuance under the Amended 2019 LTIP.

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

24 unchanged sentences

Vested ( 425 ) 26.76 ( 187 ) 21.76 ( 378 ) 22.25

Awards reinstated (forfeited) ( 131 ) 21.70 ( 28 ) 24.99 300 23.52

Awards forfeited ( 153 ) 29.38 ( 131 ) 21.70 ( 28 ) 24.99

Outstanding at end of year 2,150 $ 36.75 1,572 $ 25.27 911 $ 22.40

11 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 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 2025 were $ 11.4 million and $ 0.7 million, respectively.

The total fair values of equity-based awards vested during 2024 were $ 7.1 million.

No liability-based awards vested during 2024.

As of December 28, 2025, the total unrecognized compensation cost related to all nonvested equity-based awards was $ 38.1 million.

This cost is expected to be recognized over a weighted average period of 2.13 years.

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

As of December 28, 2025, the total unrecognized compensation cost related to all nonvested liability-based awards was $ 4.1 million.

This cost is expected to be recognized over a weighted average period of 2.11 years.

18 unchanged sentences

Foreign currency derivative assets 95 — 95 755 — 755

Sales contract derivative assets — — — — 960 960

Commodity derivative liabilities ( 1,343 ) — ( 1,343 ) ( 2,494 ) — ( 2,494 )

8 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.There were no changes to methods or significant assumptions from prior periods.

There were no changes to methods or significant assumptions from prior periods.

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

16 unchanged sentences

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

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.

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.

fair values of the Company’s Level 2 fixed-rate debt obligations were based on the quoted market price at December 28, 2025 or December 29, 2024, as applicable.

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.

7 unchanged sentences

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.

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

Pilgrim’s Food Masters 2024 Pilgrim’s Europe Central

(In thousands)

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

Earliest implementation date April 2024 January 2024

Predominant completion date March 2025 June 2025

Costs incurred and expected to be incurred

12 unchanged sentences

7,938 5,584 13,522

Total exit and disposal costs $ 20,967 $ 44,100 $ 1,716 $ 24,961 $ 3,027 $ 40,735 $ 32,693 $ 168,199

(a) Comprised of other costs directly related to the restructuring initiatives including Moy Park flock depletion, the write-off of Pilgrim’s Pride Ltd.

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

Total exit and disposal costs (b)

$ 39,061 $ 62,534 $ 101,595

(a) Comprised of other costs directly related to the restructuring initiatives including flock depletion, the write-off of prepaid maintenance costs, consulting fees, and costs to return leased assets to original configuration.

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

During 2025, the Company recognized the following expenses and paid the following cash related to each restructuring initiative:

1 unchanged sentence

(In thousands)

Moy Park $ ( 105 ) $ 869

Pilgrim’s Pride Ltd.

2022 18,349 3,166

Pilgrim’s Pride Ltd.

2024 1,717 1,512

Pilgrim’s Food Masters 2024 $ ( 1,672 ) $ 4,676

Pilgrim’s Food Masters 2023 — 2,139

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

Pilgrim’s Europe Central 29,839 24,591

Prior programs substantially complete 3,187 2,480

Total $ 31,354 $ 31,747

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

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

The following tables reconcile liabilities and reserves associated with each restructuring initiative during 2025 .

Ending liability balances for employee termination benefits and other charges are reported in the line item Accrued expenses and other current liabilities in our Consolidated Balance Sheets.

The ending reserve balance for inventory adjustments is reported in the line item Inventories in our Consolidated Balance Sheets.

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)

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

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

Contract termination 144 — ( 147 ) 3 —

Total $ 2,788 $ ( 105 ) $ ( 874 ) $ ( 25 ) $ 1,784

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)

Employee retention benefits $ 35 $ ( 34 ) $ — $ ( 1 ) $ —

Severance 734 220 ( 616 ) — 338

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

Inventory adjustments 294 141 ( 432 ) ( 3 ) —

Lease termination 164 253 ( 215 ) 3 205

Other charges 752 1,831 ( 2,550 ) ( 5 ) 28

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

During 2025, there were no material movements in reserves related to substantially completed programs.

These programs have been excluded from the tables below.

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 2024

1 unchanged sentence

(In thousands)

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 $ 76 $ 139 $ ( 218 ) $ 3 $ —

Severance 1,620 ( 354 ) ( 1,332 ) 66 —

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 — 58 ( 58 ) — —

3 unchanged sentences

Total $ 6,773 $ ( 1,672 ) $ ( 4,706 ) $ 332 $ 727

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Pilgrim’s Europe Central

15 unchanged sentences

Sales to related parties

JBS Toledo N.V.

$ 41,947 $ — $ —

JBS USA Food Company (a)

32 unchanged sentences

Other related party transactions

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

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

December 28, 2025 December 29, 2024

1 unchanged sentence

Accounts receivable from related parties

JBS Toledo N.V.

JBS USA Food Company (a)

$ 1,727 $ 967

JBS Chile Ltd.

5 unchanged sentences

Accounts payable to related parties

JBS USA Food Company (a)

$ 5,424 $ 34,038

Seara Meats B.V.

JBS Asia Co Limited 4,023 2,254

$ 26,686 $ 4,861

JBS USA Food Company (a)

Penasul UK LTD 1,156 714

JBS Asia Co Limited — 4,023

Other related parties 7,328 235

7 unchanged sentences

Expenditures paid by JBS USA on behalf of the Company will be reimbursed by the Company and expenditures paid by the Company on behalf of JBS USA will be reimbursed by JBS USA.

This agreement expires on December 31, 2025.

This agreement expired on December 31, 2025, but effectively continues month-to-month until a new agreement is finalized.

REPORTABLE SEGMENTS

21 unchanged sentences

December 28, 2025 (a)

December 29, 2024 (a)

December 31, 2023 (b)

December 25, 2022 (c)

(In thousands)

12 unchanged sentences

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

63 unchanged sentences

(In thousands)

Income tax expense (benefit)

Income tax expense

$ 313,935 $ 237,550 $ ( 5,848 )

1 unchanged sentence

Mexico 51,759 76,746 25,375

Total income tax expense (benefit) $ 325,046 $ 42,905 $ 278,935

Total income tax expense $ 418,794 $ 325,046 $ 42,905

December 28, 2025 December 29, 2024 December 31, 2023

13 unchanged sentences

Total $ 718,526 $ 458,456 $ 557,753

(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.

(a) Capital expenditures incurred include those that were paid out in cash and those that are still outstanding in accounts payable as of the end of each of the last three fiscal years.

December 28, 2025 December 29, 2024

52 unchanged sentences

Tax Claims and Proceedings

During 2014 and 2015, the Mexican Tax Administration Service (“SAT”) opened a review of Avícola with regard to tax years 2009 and 2010.

During 2014 and 2015, the Mexican Tax Administration Service (the “SAT”) opened a review of Avícola Pilgrim's Pride de Mexico, S.

(“Avícola”) with regard to tax years 2009 and 2010.

In both instances, the SAT claims that controlled company status did not exist for certain subsidiaries because Avícola did not own 50% of the shares in voting rights of Incubadora Hidalgo, S.

4 unchanged sentences

Avícola appealed the opinion, and on January 31, 2023, the appeal as to tax year 2009 was dismissed by the Mexico Supreme Court.

Accordingly, during 2023 Avícola paid $ 25.9 million for tax year 2009.

During 2023 Avícola paid $ 25.9 million for tax year 2009.

The opinion for tax year 2010 is still under appeal.

2 unchanged sentences

and Provemex Holdings, LLC in connection with PPC’s acquisition of Tyson de México.

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

Additionally, the seller in this acquisition also received an assessment from the SAT related to the sale of its indirect equity interest of Tyson de México.

The transaction agreement related to such acquisition contains certain mutual indemnification provisions, and both seller and buyer provided notice of indemnification claims to the other party.

In response to the indemnification claims, on November 14, 2025, in a strategic effort to mitigate risk and in exchange for monetary compensation, PPC settled the indemnification claims and entered into an agreement with the seller in which PPC agreed to assume all tax liabilities in connection with the seller’s assessment, assume defense of such assessment, and waive all potential indemnification claims against the seller.

In response to the underlying substantive assessments by the SAT, the Mexican subsidiaries of PPC filed a petition to nullify these assessments.

The District Court issued a judgment on January 20, 2025, in which the court now claims that the seller (a Tyson entity) 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.

The Collegiate (appellate) Court (the “Collegiate Court”) issued a decision on February 7, 2025 remanding the dispute to the

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

On April 12, 2024, HMRC concluded that the Deductions should be disallowed and Onix Investments UK Ltd appealed.

On March 19, 2025, the Tax Court ruled that, for tax purposes and with respect to both assessments, the sale of the equity of Provemex occurred on June 29, 2015, and that Provemex was a Mexican tax resident on that date.

PPC appealed this ruling to the Collegiate Court on April 23, 2025 and will continue to defend this matter or seek a reasonable settlement with the SAT where available.

The amount under appeal for the remaining assessment, including any penalties and interest, is approximately $ 230.0 million.

PPC will seek a reasonable settlement with the tax authority where it is available.

PPC has determined the loss is probable and as such have recorded an accrual of $ 88.2 million, which is reflected in Accrued expenses and other current liabilities in the Consolidated Balance Sheet as of December 28, 2025.

In 2019 and 2020, the U.K.

Revenue & Customs Authority (“HMRC”) opened reviews of the 2017 and 2018 tax returns of Onix Investments UK Ltd (“Onix”) in which HMRC evaluated the deductibility of certain interest related expenses incurred by Onix (the “Deductions”).

The Deductions total $ 7.9 million for tax year 2017 and $ 32.1 million for tax year 2018.

On April 12, 2024, HMRC concluded that the Deductions should be disallowed and Onix 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.

Onix has timely filed a Grounds of Appeal, and on March 10, 2025, HMRC filed their Statement of Case (a preliminary summary of arguments).

A case management timetable has been agreed upon between Onix and HMRC, and approved by the court, which includes a tentative hearing window between June and October of 2026.

Onix will continue to defend this matter.

No accrual has been recorded for this matter.

Between September 2, 2016 and October 13, 2016, a series of federal class action lawsuits were filed with the U.S.

2 unchanged sentences

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.

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 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 and settlements were paid in fiscal year 2021.

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”).

On February 11, 2025, the motions to dismiss Phase 2 of the Broiler Antitrust Litigation that had been filed by PPC and other defendants were denied.

Phase 2 discovery has commenced.

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.

To date, PPC has recognized an expense of $ 683.1 million, including a $ 100.6 million incremental expense in the year ended December 28, 2025, to cover settlements with various Broiler Opt Outs.

PPC recognized all settlement expenses related to this matter 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.

3 unchanged sentences

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.

PPC recognized this settlement expense in SG&A expense in our Consolidated Statements of Income in fiscal year 2021 and incrementally in fiscal year 2022.

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.

2 unchanged sentences

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.

This settlement was paid in fiscal year 2024.

PPC recognized these settlement expenses within SG&A expense in our Consolidated Statements of Income.

On January 7, 2025, the Court granted final approval of the Company’s settlement and dismissed the case.

3 unchanged sentences

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.

On December 6, 2024, the Company entered into a settlement agreement in principal with the putative class in the amount of $ 41.5 million.

On June 27, 2025, the settlement agreement received final court approval.

PPC paid the settlement amount in fiscal year 2025.

We have recognized this expense in SG&A expense in the Consolidated Statements of Income.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

On July 17, 2025, a stockholder derivative action entitled City of Miami Beach Fire and Police Pension et al.

JBS Wisconsin Properties.

was filed in the Delaware Court of Chancery against PPC, as nominal defendant, as well as PPC’s directors, and majority stockholder, JBS Wisconsin Properties, LLC.

The complaint alleges, among other things, breaches of fiduciary duties connected to an amendment to PPC’s certificate of incorporation in 2024, that, according to the plaintiffs benefited JBS Wisconsin Properties, LLC to the detriment of public shareholder, and seeks, among other things, equitable relief.

Defendants filed a motion to dismiss on October 2, 2025.

No amounts have been accrued for any potential losses under this matter, as we cannot reasonably predict the outcome of the litigation or any potential losses at this early stage in the matter.

State Matters

From February 21, 2017 through May 4, 2021, the Attorneys General for multiple U.S.

states have issued civil investigative demands (“CIDs”).

The CIDs request, among other things, data and information related to the acquisition and processing of broiler chickens and the sale of chicken products.

PPC is cooperating with the Attorneys General in these states in producing documents pursuant to the CIDs.

On September 1, 2020, February 22, 2021, and October 28, 2021, the Attorneys General in New Mexico ( State of New Mexico v.

Koch Foods, et al.

, D-101-CV-2020-01891), Alaska ( State of Alaska v.

Agri Stats, Inc., et al.

, 3AN-21-04632), and Washington ( State of Washington v.

Tyson Foods Inc., et al.

, 21-2-14174-5), respectively, filed complaints against PPC and others based on allegations similar to those asserted in the Broiler Antitrust Litigation.

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

states issued civil investigative demands (“CIDs”).

The CIDs requested, among other things, data and information related to the acquisition and processing of broiler chickens and the sale of chicken products.

PPC cooperated with the Attorneys General in these states in producing documents pursuant to the CIDs.

Federal Matters

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.

On February 9, 2022, PPC learned that the DOJ opened a civil investigation into human resources antitrust matters, 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 civil investigative demand requesting information from PPC.

PPC cooperated with the DOJ in its investigations and CID.

MARKET RISKS AND CONCENTRATIONS

4 unchanged sentences

Concentrations of credit risk with respect to trade accounts receivable are limited due to the large number of customers and their dispersion across geographic areas.

The Company does not have a single customer that exceeds the 10% of net sales.

The Company does not have a single customer that exceeds 10% of net sales.

The Company does not believe it has significant concentrations of credit risk in its trade accounts receivable.

As of December 29, 2024, we employed over 61,600 people.

As of December 28, 2025, the Company employed over 63,000 people.

Approximately 35 % of the Company’s employees were covered under collective bargaining agreements.

Substantially, all employees covered under collective bargaining agreements are covered under agreements that expire in 2026 or later.

We have not experienced any labor-related work stoppage at any location in over ten years .

We believe our relationship with our employees and union leadership is satisfactory.

At any given time, we will likely be in some stage of contract negotiations with various collective bargaining units.

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.

The Company has not experienced any labor-related work stoppage at any location in over ten years .

The Company believes its relationship with its employees and union leadership is satisfactory.

At any given time, the Company will likely be in some stage of contract negotiations with various collective bargaining units.

In the absence of an agreement, the Company may become subject to labor disruption at one or more of these locations, which could have an adverse effect on financial results.

As of December 28, 2025, the aggregate carrying amount of net assets belonging to our Mexico and Europe reportable segments was $ 0.6 billion and $ 3.1 billion, respectively.

2 unchanged sentences

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