PILGRIMS PRIDE CORPPPC

PILGRIMS PRIDE CORP Segments Disclosure

10-KFiled Feb 12, 20265 min read
REPORTABLE SEGMENTS
The Company operates in three reportable segments: U.S., Europe and Mexico. The Company’s reportable segments are identified by a combination of factors, including geographic area, regulatory environment, economic environment and product portfolios. Each reportable segment is managed separately through a local management team. The results of each operating, or reportable, segment are provided to the chief operating decision maker (“CODM”) on a regular basis. The Company’s CODM is the President and Chief Executive Officer. The information provided to the CODM at the operating segment level is then used to assess performance and make decisions regarding allocation of key resources. The CODM primarily measures segment profit and evaluates performance based on operating income. The accounting policies of the segments are the same as those described in the summary of significant accounting policies.
We conduct separate operations in the continental U.S. and in Puerto Rico. For segment reporting purposes, the Puerto Rico operations are included in the U.S. reportable segment. The chicken products processed by the U.S. reportable segment are sold to foodservice, retail and frozen entrée customers. The segment’s primary distribution is through retailers, foodservice distributors and restaurants.
The Europe reportable segment processes primarily fresh chicken, pork products, lamb products, specialty meats, ready meals and other prepared foods that are sold to foodservice, retail and direct to consumer customers. The segment’s primary distribution is through retailers, foodservice distributors and restaurants.
The chicken products processed by the Mexico reportable segment are sold to foodservice, retail and frozen entrée customers. The segment’s primary distribution is through retailers, foodservice distributors and restaurants.
Additional information regarding reportable segments is as follows:
Year Ended
December 28, 2025(a)
December 29, 2024(a)
December 31, 2023(b)
(In thousands)
Net sales
U.S.$10,998,732 $10,629,929 $10,027,742 
Europe5,378,865 5,136,747 5,203,322 
Mexico2,119,956 2,111,615 2,131,153 
Total net sales$18,497,553 $17,878,291 $17,362,217 
(a)For the year 2025, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $99.8 million. These sales consisted of fresh products, prepared products and grain and are eliminated in our consolidation.
(b)For the year 2024, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $121.6 million. These sales consisted of fresh products, prepared products, eggs and grain and are eliminated in our consolidation.
(c)For the year 2023, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $370.1 million. These sales consisted of fresh products, prepared products and grain and are eliminated in our consolidation.
Year Ended
December 28, 2025December 29, 2024December 31, 2023
(In thousands)
Cost of sales
U.S.$9,364,633 $9,065,837 $9,505,258 
Europe4,886,105 4,675,080 4,828,623 
Mexico1,888,672 1,824,607 1,909,721 
Eliminations— — 214 
Total cost of sales$16,139,410 $15,565,524 $16,243,816 
Year Ended
December 28, 2025December 29, 2024December 31, 2023
(In thousands)
Gross profit
U.S.$1,634,099 $1,564,092 $522,484 
Europe492,760 461,667 374,699 
Mexico231,284 287,008 221,432 
Eliminations— — (214)
Total gross profit$2,358,143 $2,312,767 $1,118,401 
Year Ended
December 28, 2025December 29, 2024December 31, 2023
(In thousands)
Selling, general administrative expenses
U.S.$460,695 $451,091 $283,590 
Europe189,009 198,586 202,203 
Mexico63,546 63,633 65,977 
Total SG&A expenses$713,250 $713,310 $551,770 
Year Ended
December 28, 2025December 29, 2024December 31, 2023
(In thousands)
Restructuring activities charges
Europe$31,354 $93,388 $44,345 
Year Ended
December 28, 2025December 29, 2024December 31, 2023
(In thousands)
Operating income
U.S.$1,173,404 $1,113,001 $238,894 
Europe272,397 169,693 128,151 
Mexico167,738 223,375 155,455 
Eliminations— — (214)
Total operating income$1,613,539 $1,506,069 $522,286 
Year Ended
December 28, 2025December 29, 2024December 31, 2023
(In thousands)
Reconciliation of profit or loss (segment operating income)
Total segment operating income$1,613,539 $1,506,069 $522,286 
Interest expense, net of capitalized interest161,388 161,175 202,272 
Interest income(51,118)(72,666)(35,651)
Foreign currency transaction losses (gains)6,777 (10,025)20,570 
Miscellaneous, net(5,646)15,316 (30,127)
Income before income taxes1,502,138 1,412,269 365,222 
Income tax expense418,794 325,046 42,905 
Net income$1,083,344 1,087,223 $322,317 
Year Ended
December 28, 2025December 29, 2024December 31, 2023
(In thousands)
Interest expense
U.S.$158,318 $166,002 $208,000 
Europe2,395 2,237 1,728 
Mexico675 1,191 558 
Eliminations— (8,255)(8,014)
Total interest expense$161,388 $161,175 $202,272 
Year Ended
December 28, 2025December 29, 2024December 31, 2023
(In thousands)
Interest income
U.S.$29,470 $32,218 $13,987 
Europe5,015 16,233 4,656 
Mexico16,633 32,470 25,022 
Eliminations— (8,255)(8,014)
Total interest income$51,118 $72,666 $35,651 
Year Ended
December 28, 2025December 29, 2024December 31, 2023
(In thousands)
Income tax expense
U.S.$313,935 $237,550 $(5,848)
Europe53,100 10,750 23,378 
Mexico51,759 76,746 25,375 
Total income tax expense$418,794 $325,046 $42,905 
Year Ended
December 28, 2025December 29, 2024December 31, 2023
(In thousands)
Depreciation and amortization
U.S.$288,495 $270,618 $255,052 
Europe145,375 140,993 142,190 
Mexico22,287 22,011 22,658 
Total$456,157 $433,622 $419,900 
Year Ended
December 28, 2025December 29, 2024December 31, 2023
(In thousands)
Capital expenditures(a)
U.S.$508,458 $336,973 $417,919 
Europe120,042 91,177 109,590 
Mexico90,026 30,306 30,244 
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 the end of each of the last three fiscal years.
 December 28, 2025December 29, 2024
 (In thousands)
Total assets
U.S.$7,023,156 $7,848,510 
Europe4,376,305 4,051,150 
Mexico1,132,834 1,172,728 
Eliminations(2,188,765)(2,421,812)
Total$10,343,530 $10,650,576 
 December 28, 2025December 29, 2024
 (In thousands)
Long-lived assets(a)
U.S.$2,376,549 $2,156,858 
Europe1,040,986 979,116 
Mexico377,164 261,518 
Eliminations(3,888)(3,888)
Total$3,790,811 $3,393,604 
(a)For this disclosure, we exclude financial instruments, deferred tax assets and intangible assets in accordance with ASC 280-10-50-41, Segment Reporting. Long-lived assets, as used in ASC 280-10-50-41, implies hard assets that cannot be readily removed.
Year Ended
December 28, 2025December 29, 2024December 31, 2023
(In thousands)
Net sales to customers by customer location
U.S.$10,550,171 $10,165,049 $9,496,709 
Europe5,299,020 5,087,606 5,148,931 
Mexico2,154,325 2,160,490 2,180,418 
Asia-Pacific 329,801 303,570 384,946 
Canada, Caribbean and Central America78,478 89,068 72,339 
Africa54,936 52,329 66,519 
South America30,822 20,179 12,355 
Total$18,497,553 $17,878,291 $17,362,217 
Information regarding net sales attributable to each of our primary product lines and markets served with those products is included in “Note 2. Revenue Recognition.” We based the table on our internal sales reports and their classification of products.

Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2024Feb 13, 2025
2023Feb 27, 2024
2022Feb 9, 2023
2021Feb 18, 2022
2020Feb 11, 2021
2019Feb 21, 2020
2018Feb 14, 2019
2017Feb 16, 2018
2016Feb 9, 2017
2015Feb 12, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

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