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Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	Mar. 25, 2012	Apr. 27, 2012
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 25, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q1
Entity Registrant Name	PILGRIMS PRIDE CORP
Entity Central Index Key	0000802481
Current Fiscal Year End Date	--12-30
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		258,926,358
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 25, 2012	Dec. 25, 2011
Assets:
Cash and cash equivalents	$ 47,570	$ 41,609
Restricted cash and cash equivalents	4,684	7,680
Investment in available-for-sale securities	156	157
Trade accounts and other receivables, less allowance for doubtful accounts	350,832	349,222
Account receivable from JBS USA, LLC	19,406	21,198
Inventories	910,430	879,094
Income taxes receivable	63,884	59,067
Prepaid expenses and other current assets	40,588	52,350
Assets held for sale	50,220	53,816
Total current assets	1,487,770	1,464,193
Investment in available-for-sale securities	591	497
Deferred tax assets	71,099	71,099
Other long-lived assets	51,445	57,921
Identified intangible assets, net	42,656	44,083
Property, plant and equipment, net	1,224,880	1,241,752
Total assets	2,878,441	2,879,545
Liabilities and Stockholders' Equity:
Accounts payable	293,131	328,864
Account payable to JBS USA, LLC	8,339	11,653
Accrued expenses and other current liabilities	290,637	281,797
Current deferred tax liabilities	79,328	79,248
Current maturities of long-term debt	15,614	15,611
Total current liabilities	687,049	717,173
Long-term debt, less current maturities	1,249,510	1,408,001
Note payable to JBS USA Holdings, Inc.	0	50,000
Other long-term liabilities	144,906	145,941
Total liabilities	2,081,465	2,321,115
Common stock	2,589	2,143
Additional paid-in capital	1,641,566	1,443,484
Retained Earnings (Accumulated Deficit)	(804,772)	(843,945)
Accumulated other comprehensive loss	(45,650)	(46,070)
Total Pilgrim’s Pride Corporation stockholders’ equity	793,733	555,612
Stockholders' Equity Attributable to Noncontrolling Interest	3,243	2,818
Total stockholders’ equity	796,976	558,430
Total liabilities and stockholders’ equity	$ 2,878,441	$ 2,879,545

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands	3 Months Ended
	Mar. 25, 2012	Mar. 27, 2011
Net sales	$ 1,888,773,000	$ 1,892,476,000
Cost of sales	1,778,708,000	1,944,238,000
Operational restructuring charges	0	1,348,000
Gross profit (loss)	110,065,000	(53,110,000)
Selling, general and administrative expense	45,256,000	53,248,000
Administrative restructuring charges, net	2,885,000	418,000
Operating income (loss)	61,924,000	(106,776,000)
Interest expense	28,245,000	27,507,000
Interest income	(274,000)	(710,000)
Foreign currency transaction gains	(5,928,000)	(2,735,000)
Miscellaneous, net	(370,000)	(1,071,000)
Income (loss) before income taxes	40,251,000	(129,767,000)
Income tax expense (benefit)	653,000	(9,872,000)
Net income (loss)	39,598,000	(119,895,000)
Less: Net income attributable to noncontrolling interests	425,000	865,000
Net income (loss) attributable to Pilgrim’s Pride Corporation	39,173,000	(120,760,000)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Comprehensive income (loss)	40,018,000	(120,410,000)
Comprehensive income attributable to noncontrolling interests	425,000	865,000
Comprehensive income (loss) attributable to Pilgrim's Pride Corporation	$ 39,593,000	$ (121,275,000)
Weighted average shares of common stock outstanding:
Basic	223,562	224,996
Effect of common stock equivalents	69	0
Diluted	223,631	224,996
Net income (loss) per share of common stock outstanding:
Basic	$ 0.18	$ (0.54)
Diluted	$ 0.18	$ (0.54)

Condensed Consolidated Statements of Stockholders' Equity - USD ($)	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Noncontrolling Interest [Member]
Balance, Common Shares at Dec. 26, 2010		214,282,000
Stockholders' Equity Balance at Dec. 26, 2010	$ 1,078,596,000	$ 2,143,000	$ 1,442,810,000	$ (348,653,000)	$ (23,637,000)	$ 5,933,000
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(119,895,000)	0	0	(120,760,000)	0	865,000
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax	(477,000)	0	0	0	(477,000)	0
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax	(38,000)	0	0	0	(38,000)	0
Other Comprehensive Income (Loss), Net of Tax	(515,000)
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	(120,410,000)
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition	120,000	$ 0	120,000	0	0	0
Balance, Common Shares at Mar. 27, 2011		214,282,000
Stockholders' Equity Balance at Mar. 27, 2011	958,306,000	$ 2,143,000	1,442,930,000	(469,413,000)	(24,152,000)	6,798,000
Balance, Common Shares at Dec. 25, 2011		214,282,000
Stockholders' Equity Balance at Dec. 25, 2011	558,430,000	$ 2,143,000	1,443,484,000	(843,945,000)	(46,070,000)	2,818,000
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	39,598,000			39,173,000		425,000
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax	5,000				5,000
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax	415,000				415,000
Other Comprehensive Income (Loss), Net of Tax	420,000
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	40,018,000
Stock Issued During Period, Shares, New Issues		44,444,000
Stock Issued During Period, Value, New Issues	198,379,000	$ 444,000	197,935,000
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures		200,000
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition	149,000	$ 2,000	147,000
Balance, Common Shares at Mar. 25, 2012		258,926,000
Stockholders' Equity Balance at Mar. 25, 2012	$ 796,976,000	$ 2,589,000	$ 1,641,566,000	$ (804,772,000)	$ (45,650,000)	$ 3,243,000

Condensed Consolidated Statements of Stockholders' Equity Parenthetical - USD ($)	3 Months Ended
	Mar. 25, 2012	Mar. 27, 2011
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax	$ 0	$ 0
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax	$ 0	$ 0

Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 25, 2012	Mar. 27, 2011
Cash flows from operating activities:
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ 39,598,000	$ (119,895,000)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
Depreciation and amortization	35,766,000	50,852,000
Foreign currency transaction gains	(5,407,000)	(2,776,000)
Accretion of bond discount	114,000	111,000
Impairment provision	1,342,000	0
Loss (gain) on property disposals	859,000	(1,135,000)
Share-based compensation	149,000	120,000
Deferred income tax benefit	0	(11,106,000)
Changes in operating assets and liabilities:
Restricted cash and cash equivalents	7,996,000	(164,000)
Trade accounts and other receivables	3,043,000	(67,283,000)
Inventories	(25,813,000)	64,273,000
Prepaid expenses and other current assets	13,144,000	11,407,000
Accounts payable, accrued expenses and other current liabilities	(35,003,000)	(28,054,000)
Income taxes	(3,421,000)	992,000
Deposits	0	135,000
Other operating assets and liabilities	(2,985,000)	120,000
Cash provided by (used in) operating activities	29,382,000	(102,403,000)
Cash flows from investing activities:
Acquisitions of property, plant and equipment	(16,670,000)	(63,960,000)
Purchases of investment securities	(88,000)	(1,353,000)
Proceeds from sale or maturity of investment securities	0	831,000
Proceeds from property disposals	3,066,000	4,402,000
Cash used in investing activities	(13,692,000)	(60,080,000)
Cash flows from financing activities:
Proceeds from revolving line of credit and long-term borrowings	183,200,000	255,300,000
Payments on revolving line of credit, long-term borrowings and capital lease obligations	(341,802,000)	(135,625,000)
Payment of note payable to JBS USA	(50,000,000)	0
Proceeds from sale of common stock	198,379,000	0
Payment of capitalized loan costs	0	(689,000)
Cash provided by (used in) financing activities	(10,223,000)	118,986,000
Effect of exchange rate changes on cash and cash equivalents	494,000	433,000
Decrease in cash and cash equivalents	5,961,000	(43,064,000)
Cash and cash equivalents, beginning of period	41,609,000	106,077,000
Cash and cash equivalents, end of period	$ 47,570,000	$ 63,013,000

1. Description of Business and Basis of Presentation

3 Months Ended

Mar. 25, 2012

1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]


1.	DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

Business

Pilgrim’s Pride Corporation (referred to herein as “Pilgrim’s,” “PPC,” “the Company,” “we,” “us,” “our,” or similar terms) is the second-largest chicken company in the world, with operations in the United States (“U.S.”), Mexico and Puerto Rico. Pilgrim's products are sold to foodservice, retail and frozen entrée customers. The Company's primary distribution is through retailers, foodservice distributors and restaurants throughout the United States and Puerto Rico and in the northern and central regions of Mexico. Additionally, the Company exports chicken products to approximately 105 countries. Pilgrim's fresh chicken products consist of refrigerated whole chickens, whole cut-up chickens and selected chicken parts that are either marinated or non-marinated. The Company's prepared chicken products include fully cooked, ready-to-cook and individually frozen chicken parts, strips, nuggets and patties, some of which are are either breaded or non-breaded and either marinated or non-marinated. As a vertically integrated company, we control every phase of the production of our products. We operate feed mills, hatcheries, processing plants and distribution centers in 12 U.S. states, Puerto Rico and Mexico. Pilgrim's employs approximately 38,500 people and has the capacity to process more than 36 million birds per week for a total of more than 9.5 billion pounds of live chicken annually. Approximately 4,100 contract growers supply poultry for the Company's operations.

Consolidated Financial Statements

The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the U.S. for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the U.S. for complete financial statements. In the opinion of management, all adjustments (consisting of normal and recurring adjustments unless otherwise disclosed) considered necessary for a fair presentation have been included. Operating results for the thirteen weeks ended March 25, 2012 are not necessarily indicative of the results that may be expected for the year ending December 30, 2012. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 25, 2011.

Pilgrim’s operates on a 52/53-week fiscal year that ends on the Sunday falling on or before December 31. The reader should assume any reference we make to a particular year (for example, 2012) in the notes to these Condensed Consolidated Financial Statements applies to our fiscal year and not the calendar year.

The Condensed Consolidated Financial Statements include the accounts of the Company and its majority-owned subsidiaries. We eliminate all significant affiliate accounts and transactions upon consolidation.

The Company measures the financial statements of its Mexico subsidiaries as if the U.S. dollar were the functional currency. Accordingly, we remeasure assets and liabilities, other than non-monetary assets, of the Mexico subsidiaries at current exchange rates. We remeasure non-monetary assets using the historical exchange rate in effect on the date of each asset’s acquisition. We remeasure income and expenses at average exchange rates in effect during the period. Currency exchange gains or losses are included in the line item Foreign currency transaction losses (gains) in the Condensed Consolidated Statements of Operations.

Reclassifications

We have made certain reclassifications to the 2011 Condensed Consolidated Financial Statements with no impact to reported net loss in order to conform to the 2012 presentation.

Reportable Segment

We operate in one reportable business segment, as a producer and seller of chicken products we either produce or purchase for resale.

Revenue Recognition

We recognize revenue when all of the following circumstances are satisfied: (i) persuasive evidence of an arrangement exists, (ii) price is fixed or determinable, (iii) collectability is reasonably assured and (iv) delivery has occurred. Delivery occurs in the period in which the customer takes title and assumes the risks and rewards of ownership of the products specified in the customer’s purchase order or sales agreement. Revenue is recorded net of estimated incentive offerings including special pricing agreements, promotions and other volume-based incentives. Revisions to these estimates are charged back to net sales in the period in which the facts that give rise to the revision become known.

Book Overdraft

The majority of the Company's disbursement bank accounts are zero balance accounts where cash needs are funded as checks are presented for payment by the holder. Checks issued pending clearance that result in overdraft balances for accounting purposes are classified as accounts payable and the change in the related balance is reflected in operating activities on the Condensed Consolidated Statements of Cash Flows.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 2-6
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Name Statement of Position (SOP)
-Publisher AICPA
-Number 94-6
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Number 46R
-Paragraph 4, 14, 15
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+ Details

2. Exit or Disposal Activities

3 Months Ended

Mar. 25, 2012

2. EXIT OR DISPOSAL ACTIVITIES [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

2. EXIT OR DISPOSAL ACTIVITIES

From time to time, the Company will incur costs to implement exit or disposal efforts for specific operations. These exit or disposal plans, each of which is approved by the Company's Board of Directors, focus on various aspects of operations, including closing and consolidating certain processing facilities, rationalizing headcount and aligning operations in the most strategic and cost-efficient structure. Specific exit or disposal efforts that were ongoing during either the thirteen weeks ended March 25, 2012 or the thirteen weeks ended March 27, 2011 included the following:



	Facilities Closures^(a)		Administrative Integration^(b)		Total
	(In thousands, except positions eliminated)
Earliest implementation date	July 2009		January 2010
Latest expected completion date	September 2014		March 2012
Positions eliminated	2,410		480		2,890

Costs expected to be incurred:
Employee-related costs	$	3,170	$	14,578	$	17,748
Asset impairment costs	17,902		32,530		50,432
Inventory valuation costs	850		—		850
Other exit or disposal costs	19,379		—		19,379
Total exit or disposal costs	$	41,301	$	47,108	$	88,409

Costs incurred during the thirteen weeks ended March 25, 2012:
Employee-related costs	$	78	$	—	$	78
Asset impairment costs	960		382		1,342
Other exit or disposal costs	1,543		—		1,543
Total exit or disposal costs	$	2,581	$	382	$	2,963

Costs incurred during the thirteen weeks ended March 27, 2011:
Employee-related costs	$	—	$	540	$	540
Asset impairment costs	1,766		—		1,766
Total exit or disposal costs	$	1,766	$	540	$	2,306

Costs incurred since inception:
Employee-related costs	$	3,170	$	14,578	$	17,748
Asset impairment costs	17,902		32,530		50,432
Inventory valuation costs	850		—		850
Other exit or disposal costs	6,793		—		6,793
Total exit or disposal costs	$	28,715	$	47,108	$	75,823

(a)

Significant facilities closed included one processing plant in 2008, two processing plants in 2009, two processing plants in the transition period and one processing plant in 2011. The transition period began September 27, 2009 and ended December 27, 2009 and resulted from the Company's change in its fiscal year end from the Saturday nearest September 30 each year to the last Sunday in December of each year.


(b)	Company management implemented certain activities to integrate the administrative functions of the Company into those of JBS USA Holdings, Inc. These included the closures of administrative offices in Georgia and Texas.

Accrued exit or disposal costs are included in Accrued expenses and other current liabilities on the accompanying Condensed Consolidated Balance Sheets. The following table sets forth activity that was recorded through the Company’s accrued exit or disposal cost accounts during the thirteen weeks ended March 25, 2012 and March 27, 2011:



	Accrued Severance			Accrued Inventory Charges			Total
	(In thousands)
Balance at December 25, 2011	$	90		$	793		$	883
Accruals	—			—			—
Payment /Disposal	(147		)	(136		)	(283		)
Adjustments	78			—			78
Balance at March 25, 2012	$	21		$	657		$	678

Balance at December 26, 2010	$	4,150		$	793		$	4,943
Accruals	1,101			—			1,101
Payment /Disposal	(3,258		)	—			(3,258		)
Adjustments	(561		)	—			(561		)
Balance at March 27, 2011	$	1,432		$	793		$	2,225

Exit or disposal costs were included on the following lines in the accompanying Condensed Consolidated Statements of Operations:



	Thirteen Weeks Ended
	March 25, 2012		March 27, 2011
	(In thousands)
Cost of sales	$	78	$	—
Operational restructuring charges	—		1,348
Selling, general and administrative expense	—		540
Administrative restructuring charges	2,885		418
Total exit or disposal costs	$	2,963	$	2,306

Certain exit or disposal costs were classified as either Operational restructuring charges or Administrative restructuring charges on the accompanying Condensed Consolidated Statements of Operations because management believed these costs were not directly related to the Company’s ongoing operations. Components of operating restructuring charges and administrative restructuring charges recognized during the thirteen weeks ended March 25, 2012 and March 27, 2011 are summarized below:



	Thirteen Weeks Ended
	March 25, 2012		March 27, 2011
	(In thousands)
Operational restructuring charges:
Asset impairment costs (Note 8. Property, Plant and Equipment)	$	—	$	1,348

Administrative restructuring charges:
Asset impairment costs (Note 8. Property, Plant and Equipment)	$	1,342	$	418
Loss on egg sales and flock depletion expensed as incurred	455		—
Other restructuring costs	1,088		—
Total administrative restructuring charges	$	2,885	$	418

We continue to review and evaluate various restructuring and other alternatives to streamline our operations, improve efficiencies and reduce costs. Such initiatives may include selling assets, consolidating operations and functions, employee relocation and voluntary and involuntary employee separation programs. Any such actions may require us to obtain the pre-approval of our lenders under our U.S. Credit Facility (as defined in Note 10). In addition, such actions will subject the Company to additional short-term costs, which may include asset impairment charges, lease commitment costs, employee retention and severance costs and other costs. Certain of these activities may have a disproportionate impact on our income relative to the cost savings in a particular period.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References + Details

3. Fair Value Measurements

3 Months Ended

Mar. 25, 2012

3. FAIR VALUE MEASUREMENT [Abstract]

Fair Value Disclosures [Text Block]

3. FAIR VALUE MEASUREMENTS

The asset (liability) amounts recorded in the Condensed Consolidated Balance Sheets (carrying amounts) and the estimated fair values of financial instruments at March 25, 2012 and December 25, 2011 consisted of the following:



	March 25, 2012						December 25, 2011
	Carrying Amount			Fair Value			Carrying Amount			Fair Value
				(In thousands)
Short-term investments in available-for-sale securities	$	156		$	156		$	157		$	157
Commodity derivative assets^(a):
Futures	3,399			3,399			2,870			2,870
Long-term investments in available-for-sale securities	591			591			497			497
Commodity derivative liabilities^(b):
Futures	(3,745		)	(3,745		)	(2,120		)	(2,120		)
Options	—			—			(603		)	(603		)
Long-term debt and other borrowing arrangements^(c)	(1,265,124		)	(1,289,698		)	(1,423,612		)	(1,421,517		)
Note payable to JBS USA Holdings, Inc.	—			—			(50,000		)	(50,077		)


(a)	Commodity derivative assets are included in Prepaid expenses and other current assets on the Condensed Consolidated Balance Sheet.


(b)	Commodity derivative liabilities are included in Accrued expenses on the Condensed Consolidated Balance Sheet.

(c)

The fair values of the Company’s long-term debt and other borrowing arrangements were estimated by calculating the net present value of future payments for each debt obligation or borrowing by: (i) using a risk-free rate applicable for an instrument with a life similar to the remaining life of each debt obligation or borrowing plus the current estimated credit risk spread for the Company or (ii) using the quoted market price at March 25, 2012 or December 25, 2011.

The carrying amounts of our cash and cash equivalents, derivative trading accounts margin cash, restricted cash and cash equivalents, accounts receivable, accounts payable and certain other liabilities approximate their fair values due to their relatively short maturities. The Company adjusts its investments, commodity derivative assets and commodity derivative liabilities to fair value based on quoted market prices in active markets for identical instruments, quoted market prices in active markets for similar instruments with inputs that are observable for the subject instrument, or unobservable inputs such as discounted cash flow models or valuations.

The Company follows guidance under ASC Topic 820, Fair Value Measurements and Disclosures, which establishes a framework for measuring fair value and required enhanced disclosures about fair value measurements. The guidance under ASC Topic 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. ASC Topic 820 also requires disclosure about how fair value was determined for assets and liabilities and established a hierarchy for which these assets and liabilities must be grouped, based on significant levels of inputs as follows:



Level 1		Unadjusted quoted prices in active markets for identical assets or liabilities;

Level 2		Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability; or

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

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

As of March 25, 2012, the Company held certain items that are required to be measured at fair value on a recurring basis. These included cash and cash equivalents, derivative assets and liabilities, short-term investments in available-for-sale securities and long-term investments in available-for-sale securities. Cash equivalents consist of short-term, highly liquid, income-producing investments such as money market funds and other funds that have maturities of 90 days or less. Derivative assets and liabilities consist of long and short positions on both exchange-traded commodity futures and commodity options as well as margin cash on account with the Company’s derivatives brokers. Short-term investments in available-for-sale securities consist of short-term, highly liquid, income-producing investments such as municipal debt securities that have maturities of greater than 90 days but less than one year. Long-term investments in available-for-sale securities consist of income-producing investments such as municipal debt securities, corporate debt securities, equity securities and fund-of-funds units that have maturities of greater than one year.

The following items were measured at fair value on a recurring basis at March 25, 2012:



	Level 1			Level 2		Level 3		Total
				(In thousands)
Short-term investments in available-for-sale securities	$	—		$	156	$	—	$	156
Commodity derivative assets:
Futures	3,399			—		—		3,399
Long-term investments in available-for-sale securities	—			532		59		591
Commodity derivative liabilities:
Futures	(3,745		)	—		—		(3,745		)

Financial assets and liabilities classified in Level 1 at March 25, 2012 include cash and cash equivalents, restricted cash and cash equivalents, equity securities and commodity futures derivative instruments traded in active markets. The valuation of these instruments is determined using a market approach, taking into account current interest rates, creditworthiness, and liquidity risks in relation to current market conditions, and is based upon unadjusted quoted prices for identical assets in active markets. The valuation of financial assets and liabilities in Level 2 is determined using a market approach based upon quoted prices for similar assets and liabilities in active markets or other inputs that are observable for substantially the full term of the financial instrument. Level 2 securities primarily include fixed income securities and commodity option derivative instruments. The valuation of financial assets in Level 3 is determined using an income approach based on unobservable inputs such as discounted cash flow models or valuations. The Company’s sole Level 3 financial asset at March 25, 2012 was a fund-of-funds investment.

The following table presents activity for the thirteen weeks ended March 25, 2012 and March 27, 2011, respectively, related to the Company’s investment in a fund-of-funds asset that is measured at fair value on a recurring basis using Level 3 inputs:



	Thirteen Weeks Ended
	March 25, 2012		March 27, 2011
	(In thousands)
Balance at beginning of period	$	59	$	1,190
Included in other comprehensive income	—		43
Balance at end of period	$	59	$	1,233

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. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges when required by U.S. GAAP. Certain long-lived assets held for sale with a carrying amount of $2.0 million were written down to their fair value of $0.7 million, resulting in a loss of $1.3 million recorded in earnings during the thirteen weeks ended March 25, 2012. These assets are classified as Level 2 assets because their fair value can be corroborated based on observable market data.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44A, 44B
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15C, 15D
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-Subparagraph a-d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3, 10, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32, 33, 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 17-22, 27, 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19207-110258

Reference 9: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13433-108611

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
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-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 13: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19296-110258

+ Details

4. Trade Accounts and Other Receivables

3 Months Ended

Mar. 25, 2012

4. TRADE ACCOUNTS AND OTHER RECEIVABLES [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

4. TRADE ACCOUNTS AND OTHER RECEIVABLES

Trade accounts and other receivables, less allowance for doubtful accounts, consisted of the following:



	March 25, 2012			December 25, 2011
	(In thousands)
Trade accounts receivable	$	344,411		$	337,411
Account receivable from JBS USA, LLC	19,406			21,198
Other receivables	11,258			16,974
Receivables, gross	375,075			375,583
Allowance for doubtful accounts	(4,837		)	(5,163		)
Receivables, net	$	370,238		$	370,420

- Definition

The entire disclosure for claims held for amounts due a company. Examples include trade accounts receivables, notes receivables, loans receivables.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 3, 4
-Article 5

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 7
-Article 9

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 01-6
-Paragraph 13
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 4
-Section 08
-Paragraph k

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.3,4)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

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-Name Accounting Standards Codification
-Topic 235
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-Paragraph 1
-Subparagraph (SX 210.4-08.(k))
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-Topic 310
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+ Details

5. Inventories

3 Months Ended

Mar. 25, 2012

5. INVENTORIES [Abstract]

Inventory Disclosure [Text Block]

5. INVENTORIES

Inventories consisted of the following:



	March 25, 2012		December 25, 2011
	(In thousands)
Chicken:
Live chicken and hens	$	384,062	$	363,590
Feed, eggs and other	253,467		238,449
Finished chicken products	269,433		273,363
Total chicken inventories	906,962		875,402
Other products:
Commercial feed, table eggs and other	3,450		3,674
Distribution inventories (other than chicken products)	18		18
Total other products inventories	3,468		3,692
Total inventories	$	910,430	$	879,094

6. Investments in Securities

3 Months Ended

Mar. 25, 2012

6. INVESTMENTS IN SECURITIES [Abstract]

Marketable Securities [Text Block]


6.	INVESTMENTS IN SECURITIES

We recognize investments in available-for-sale securities as cash equivalents, current investments or long-term investments depending upon each security’s length to maturity. Additionally, those securities identified by management at the time of purchase for funding operations in less than one year are classified as current. The following table summarizes our investments in available-for-sale securities:



	March 25, 2012				December 25, 2011
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
Short-term investments:
Fixed income securities	$	151	$	156	$	152	$	157
Long-term investments:
Fixed income securities	454		533		367		438
Other	59		59		59		59

Maturities for the Company’s investments in fixed income securities as of March 25, 2012 were as follows:



	Amount		Percent
	(In thousands)
Matures in less than one year	$	156	23	%
Matures between one and two years	109		16	%
Matures between two and five years	200		29	%
Matures in excess of five years	224		32	%
	$	689	100	%

The Company and certain retirement plans that it sponsors invest in a variety of financial instruments. Certain postretirement funds in which the Company participates hold significant amounts of mortgage-backed securities. However, none of the mortgages collateralizing these securities are considered subprime.

Certain investments are held in trust as compensating balance arrangements for our insurance liability and are classified as long-term based on a maturity date greater than one year from the balance sheet date and management’s intention not to use such assets in the next year.

7. Derivative Financial Instruments

3 Months Ended

Mar. 25, 2012

7. DERIVATIVE FINANCIAL INSTRUMENTS [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

7. DERIVATIVE FINANCIAL INSTRUMENTS

The Company utilizes various raw materials in its operations, including corn, soybean meal, soybean oil and energy, such as 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. 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. 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 periods of up to 12 months. The Company may purchase longer-term derivative financial instruments on particular commodities if deemed appropriate. The fair value of derivative assets is included in the line item Prepaid expenses and other current assets on the Condensed 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. Our counterparties require that we post cash collateral for changes in the net fair value of the derivative contracts.

We have not designated the derivative financial instruments that we have purchased to mitigate commodity purchase exposures as cash flow hedges. Therefore, we recognized changes in the fair value of these derivative financial instruments immediately in earnings. Gains or losses related to these derivative financial instruments are included in the line item Cost of sales in the Condensed Consolidated Statements of Operations. The Company recognized net losses of $4.6 million and net gains of $32.0 million related to changes in the fair value of its derivative financial instruments during the thirteen weeks ended March 25, 2012 and March 27, 2011, respectively.

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



	March 25, 2012			December 25, 2011
	(Fair values in thousands)
Fair values:
Commodity derivative assets	$	3,399		$	2,870
Commodity derivative liabilities	(3,745		)	(2,723		)
Cash collateral posted with brokers	3,315			3,271
Derivatives Coverage^(a):
Corn	(a)			(a)
Soybean meal	(a)			(a)
Period through which stated percent of needs are covered:
Corn	(a)			(a)
Soybean meal	(a)			(a)
Written put options outstanding^(b):
Fair value	$	—		$	(603	)
Number of contracts:
Corn	—			500
Soybean meal	—			—
Expiration dates	—			March 2012
Short positions on outstanding futures derivative instruments^(b):
Fair value	$	(1,387	)	$	495
Number of contracts:
Corn	1,590			2,531
Soybean meal	988			96
Soybean oil	37			—


(a)	Derivatives coverage is the percent of anticipated corn and soybean meal needs covered by outstanding derivative instruments through a specified date. As of March 25, 2012, the Company had short derivative positions to offset long forward cash purchases, which exceeded open long derivative positions for corn, soybean meal and soybean oil. These positions expire by March 2013.

(b)

A written put option is an option that the Company has sold that grants the holder the right, but not the obligation, to sell the underlying asset at a certain price for a specified period of time. When the Company takes a short position on a futures derivative instrument, it agrees to sell the underlying asset in the future at a price established on the contract date. The Company writes put options and takes short positions on futures derivative instruments to minimize the impact of feed ingredients price volatility on its operating results.

- Definition

The entire disclosure for the entity's entire derivative instruments and hedging activities. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 45
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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+ Details

8. Property, Plant and Equipment

3 Months Ended

Mar. 25, 2012

8. PROPERTY, PLANT AND EQUIPMENT [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

8. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment (“PP&E”), net consisted of the following:



	March 25, 2012			December 25, 2011
	(In thousands)
Land	$	65,537		$	65,413
Buildings	1,081,869			1,077,789
Machinery and equipment	1,493,472			1,492,251
Autos and trucks	57,918			58,518
Construction-in-progress	31,771			36,094
PP&E, gross	2,730,568			2,730,065
Accumulated depreciation	(1,505,687		)	(1,488,313		)
PP&E, net	$	1,224,880		$	1,241,752

The Company recognized depreciation expense of $31.9 million and $46.9 million during the thirteen weeks ended March 25, 2012 and March 27, 2011, respectively.

During the thirteen weeks ended March 25, 2012, the Company sold certain PP&E for cash of $3.1 million and recognized net losses on these sales of $0.9 million. PP&E sold in 2012 included various broiler and breeder farms in Texas and miscellaneous processing equipment. During the thirteen weeks ended March 27, 2011, the Company sold certain PP&E for cash of $4.4 million and recognized net gains on these sales of $1.1 million. PP&E sold in 2011 included various broiler and breeder farms in Texas and miscellaneous processing equipment.

Management has committed to the sale of certain properties and related assets, including, but not limited to, processing plants, office buildings and farms, which no longer fit into the operating plans of the Company. The Company is actively marketing these properties and related assets for immediate sale and believes a sale of each property can be consummated within the next 12 months. At March 25, 2012 and December 25, 2011, the Company reported properties and related assets totaling $50.2 million and $53.8 million, respectively, in Assets held for sale on its Condensed Consolidated Balance Sheets. For the thirteen weeks ended March 25, 2012, the Company recognized impairment expense of $1.3 million on certain of these assets.

As part of the exit or disposal activities discussed in “Note 2. Exit or Disposal Activities,” the Company closed or idled various processing complexes, processing plants, hatcheries and broiler farms throughout the U.S. Neither the Board of Directors nor JBS USA Holdings, Inc. has determined if it would be in the best interest of the Company to divest any of these idled assets. Management is therefore not certain that it can or will divest any of these assets within one year, is not actively marketing these assets and, accordingly, has not classified them as assets held for sale. The Company continues to depreciate these assets. At March 25, 2012, the carrying amount of these idled assets was $62.8 million based on depreciable value of $151.9 million and accumulated depreciation of $89.1 million.

The Company last tested the recoverability of its long-lived assets held and used in December 2011. At that time, the Company determined that the carrying amount of its long-lived assets held and used was recoverable over the remaining life of the primary asset in the group and that long-lived assets held and used passed the Step 1 recoverability test under ASC 360-10-35, Impairment or Disposal of Long-Lived Assets. There were no indicators present during the thirteen weeks ended March 25, 2012 that required the Company to test its long-lived assets held and used for recoverability.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

9. Current Liabilities

3 Months Ended

Mar. 25, 2012

9. CURRENT LIABILITIES [Abstract]

Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block]

9. CURRENT LIABILITIES

Current liabilities, other than income taxes and current maturities of long-term debt, consisted of the following components:



	March 25, 2012		December 25, 2011
	(In thousands)
Accounts payable:
Trade accounts	$	223,690	$	294,662
Unfunded payments	68,594		32,958
Other payables	847		1,244
Total accounts payable	293,131		328,864
Accounts payable to JBS USA, LLC	8,339		11,653
Accrued expenses and other current liabilities:
Compensation and benefits	81,092		72,328
Interest and debt-related fees	20,795		13,809
Insurance and self-insured claims	102,095		102,256
Commodity derivative liabilities:
Futures	3,745		2,120
Options	—		603
Other accrued expenses	82,631		89,855
Pre-petition obligations	279		826
Total accrued expenses and other current liabilities	290,637		281,797
	$	592,107	$	622,314

10. Long-term Debt and Other Borrowing Arrangements

3 Months Ended

Mar. 25, 2012

10. LONG-TERM DEBT AND OTHER BORROWING ARRANGEMENTS [Abstract]

Debt Disclosure [Text Block]


10.	LONG-TERM DEBT AND OTHER BORROWING ARRANGEMENTS

Long-term debt and other borrowing arrangements consisted of the following components:



	Maturity	March 25, 2012			December 25, 2011
		(In thousands)
Senior notes, at 7 ⁷/8%, net of unaccreted discount	2018	$	496,960		$	496,846
U.S. Credit Facility Term B-1 note payable at 4.75%	2014	275,443			275,443
U.S. Credit Facility Term B-2 note payable at 9.00%	2014	295,270			299,145
U.S. Credit Facility with one revolving note payable on which the Company had funds borrowed at 4.25% and 6.25%	2014	192,600			347,300
Mexico Credit Facility with notes payable at TIIE Rate plus 2.25% or Equilibrium Interbank Interest Rate plus 4.5%	2014	—			—
JBS USA Holdings, Inc. Subordinated Loan Agreement with one term note payable at 9.845%	2015	—			50,000
Other	Various	4,851			4,878
Long-term debt		1,265,124			1,473,612
Less: Current maturities of long-term debt		(15,614		)	(15,611		)
Long-term debt, less current maturities		$	1,249,510		$	1,458,001

Senior and Subordinated Notes

At March 25, 2012, the Company has outstanding an aggregate principal balance of $500.0 million of 7 ⁷/8% Senior Notes due in 2018 (the “2018 Notes”) that are registered under the Securities Act of 1933. The 2018 Notes are unsecured obligations of the Company and are guaranteed by one of the Company’s subsidiaries. Interest is payable on December 15 and June 15 of each year, commencing on June 15, 2011. Additionally, the Company has an aggregate principal balance of $3.9 million of 7 ⁵/8% senior unsecured notes, 8³/8% senior subordinated unsecured notes and 9 ¹/₄% senior unsecured notes outstanding at March 25, 2012.

On June 23, 2011, the Company entered into a Subordinated Loan Agreement with JBS USA Holdings, Inc. ("JBS USA") (the “Subordinated Loan Agreement”), which provided an aggregate commitment of $100.0 million. On June 23, 2011, JBS USA made a term loan to the Company in the principal amount of $50.0 million. Pursuant to the terms of the Subordinated Loan Agreement, the Company has also agreed to reimburse JBS USA up to $56.5 million for potential draws upon letters of credit issued for JBS USA's account that support certain obligations of the Company or its subsidiaries. On December 16, 2011, the Company and JBS USA executed an amendment to the Subordinated Loan Agreement that, among other things, provided that if the Company consummated a stock rights offering (the "Rights Offering") that allowed stockholders of record as of January 17, 2012 to purchase an aggregate 44,444,444 shares of the Company's common stock on or before March 24, 2012, the loan commitment under the Subordinated Loan Agreement would be terminated. The Company consummated the Rights Offering on February 29, 2012. Further, under the U.S. Credit Facility (as defined below), following the consummation of the Rights Offering, (i) the Company, at its option, was permitted to prepay the outstanding $50.0 million term loan under the Subordinated Loan Agreement and (ii) the existing commitment of JBS USA to make an additional $50.0 million term loan to the Company under the Subordinated Loan Agreement would be terminated. On March 7, 2012, the Company repaid the outstanding $50.0 million term loan under the Subordinated Loan Agreement, plus accrued interest, with proceeds received from the Rights Offering.

JBS USA agreed to arrange for letters of credit to be issued on its account in the amount of $56.5 million to an insurance company serving the Company in order to allow that insurance company to return cash it held as collateral against potential workers compensation, auto and general liability claims. In return for providing this letter of credit, the Company will reimburse JBS USA for the letter of credit cost the Company would otherwise incur under its U.S. credit facility. The total costs accrued by the Company as of March 25, 2012 to reimburse JBS USA totaled $1.0 million.

U.S. Credit Facility

Pilgrim’s and certain of its subsidiaries have entered into a credit agreement (the "U.S. Credit Facility") with CoBank ACB, as administrative agent and collateral agent, and other lenders party thereto, which currently provides a $700.0 million revolving credit facility and a Term B facility. The U.S. Credit Facility also includes an accordion feature that allows us, at any time, to increase the aggregate revolving loan commitment by up to an additional $100.0 million and to increase the aggregate Term B loans commitment by up to an additional $400.0 million, in each case subject to the satisfaction of certain conditions, including an aggregate cap on all commitments under the U.S. Credit Facility of $1.85 billion. On April 22, 2011, we increased the amount of the sub-limit for swingline loans under the U.S. Credit Facility to $100.0 million. The revolving loan commitment and the Term B loans will mature on December 28, 2014.

On December 28, 2009, the Company paid loan costs totaling $50.0 million related to the U.S. Credit Facility that it recognized as an asset on its balance sheet. The Company amortizes these capitalized costs to interest expense over the life of the U.S. Credit Facility.

Subsequent to the end of each fiscal year, a portion of our cash flow must be used to repay outstanding principal amounts under the Term B loans. In April 2011, the Company paid approximately $46.3 million of its excess cash flow toward the outstanding principal under the Term B loans. After giving effect to this prepayment and other prepayments of the Term B loans, the Term B loans must be repaid in 16 quarterly installments of approximately $3.9 million beginning on April 15, 2011, with the final installment due on December 28, 2014. The Company did not have excess cash flow from 2011 to be applied toward the outstanding principal under the Term B loans. The U.S. Credit Facility also requires us to use the proceeds we receive from certain asset sales and specified debt or equity issuances and upon the occurrence of other events to repay outstanding borrowings under the U.S. Credit Facility. The cash proceeds received by the Company from the Rights Offering were not subject to this requirement. On March 25, 2012, a principal amount of $570.7 million under the Term B loans commitment was outstanding.

Actual borrowings by the Company under the revolving credit commitment component of the U.S. Credit Facility are subject to a borrowing base, which is a formula based on certain eligible inventory, eligible receivables and restricted cash under the control of CoBank ACB. As of March 25, 2012, the applicable borrowing base was $671.0 million, the amount available for borrowing under the revolving loan commitment was $439.2 million and outstanding borrowings and letters of credit under the revolving loan commitment were $192.6 million and $39.2 million, respectively.

The U.S. Credit Facility contains financial covenants and various other covenants that may adversely affect our ability to, among other things, incur additional indebtedness, incur liens, pay dividends or make certain restricted payments, consummate certain assets sales, enter into certain transactions with JBS USA and our other affiliates, merge, consolidate and/or sell or dispose of all or substantially all of our assets. On June 23, 2011 and December 16, 2011, the Company entered into amendments to the U.S. Credit Facility, which, among other things, (i) temporarily suspended the requirement for the Company to comply with the fixed charge coverage ratio and senior secured leverage ratio financial covenants until September 24, 2012, (ii) modified the fixed charge coverage ratio financial covenant so that when testing of this covenant resumes on September 24, 2012, the Company can calculate the fixed charge coverage ratio based upon a specified number of fiscal quarters selected by the Company, (iii) reduced the minimum allowable consolidated tangible net worth to the sum of $450 million plus 50% of the cumulative net income (excluding any losses) of the Company from December 16, 2011 through such date of calculation and (iv) increased the maximum allowable senior secured leverage ratio, determined for any period of four consecutive fiscal quarters ending on the last day of each fiscal quarter, to be no greater than 4.00:1.00 for periods calculated from September 24, 2012 and thereafter. The Company is currently in compliance with the modified consolidated tangible net worth covenant. The Company also expects to be in compliance with the modified fixed charge coverage ratio and senior secured leverage ratio financial covenants when the testing of these covenants resumes on September 24, 2012.

All obligations under the U.S. Credit Facility are unconditionally guaranteed by certain of the Company's subsidiaries and are secured by a first priority lien on (i) the accounts receivable and inventories of the Company and both its U.S. and Puerto Rico subsidiaries, (ii) 100% of the equity interests in the Company's U.S. and Puerto Rico subsidiaries and 65% of the equity interests in the Company's direct foreign subsidiaries, (iii) substantially all of the personal property and intangibles of the Company, its Puerto Rico subsidiaries and the guarantor subsidiaries under the U.S. Credit Facility and (iv) substantially all of the real estate and fixed assets of the Company and the guarantor subsidiaries under the U.S. Credit Facility.

Mexico Credit Facility

On October 19, 2011, Avícola Pilgrim's Pride de México, S.A. de C.V. , Pilgrim's Pride S. de R.L. de C.V. and certain Mexican subsidiaries entered into an amended and restated credit agreement (the “Mexico Credit Facility”) with ING Bank (México), S.A. Institución de Banca Múltiple, ING Grupo Financiero, as lender and ING Capital LLC, as administrative agent. The Mexico Credit Facility has a final maturity date of September 25, 2014. The Mexico Credit Facility is secured by substantially all of the assets of the Company's Mexico subsidiaries. As of March 25, 2012, the U.S. dollar-equivalent of the loan commitment under the Mexico Credit Facility was $43.7 million. There were no outstanding borrowings under the Mexico Credit Facility at March 25, 2012.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References + Details

11. Income Taxes

3 Months Ended

Mar. 25, 2012

11. INCOME TAXES [Abstract]

Income Tax Disclosure [Text Block]


11.	INCOME TAXES

The Company recorded income tax expense of $0.7 million, a 1.6% effective tax rate, for the thirteen weeks ended March 25, 2012, compared to an income tax benefit of $9.9 million, a 7.6% effective tax rate, for the thirteen weeks ended March 27, 2011. The income tax expense recognized for the thirteen weeks ended March 25, 2012 was primarily the result of the tax expense recorded on the Company's year-to-date income and an increase in reserves for unrecognized tax benefits, offset by a decrease in valuation allowance as a result of earnings in the current period.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carry back and carry forward periods), projected future taxable income and tax-planning strategies in making this assessment. As of March 25, 2012, the Company does not believe it has sufficient positive evidence to conclude that realization of its federal, state and foreign net deferred tax assets is more likely than not to be realized.

For the thirteen weeks ended March 25, 2012 and March 27, 2011, there is no tax effect reflected in other comprehensive income (loss) because the Company has a valuation allowance.

With few exceptions, the Company is no longer subject to U.S. federal, state or local income tax examinations for years prior to 2003 and is no longer subject to Mexico income tax examinations for years prior to 2006. The Company continues to be under examination for Gold Kist and its subsidiaries for the tax years ended June 30, 2004 through December 27, 2006. The Company is currently working with the Internal Revenue Service (“IRS”) through the normal processes and procedures that are available to all taxpayers outside of bankruptcy to resolve the IRS' proofs of claim. There has been no significant change in the resolution of the IRS' claim since December 25, 2011. See “Note 15. Commitments and Contingencies” for additional information.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Name Accounting Standards Codification
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-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
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-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

+ Details

12. Pension and Other Postretirement Benefits

3 Months Ended

Mar. 25, 2012

12. PENSION AND OTHER POSTRETIREMENT BENEFITS [Abstract]

Pension and Other Postretirement Benefits Disclosure [Text Block]


12.	PENSION AND OTHER POSTRETIREMENT BENEFITS

The Company sponsors programs that provide retirement benefits to most of its employees. These programs include qualified defined benefit pension plans, nonqualified defined benefit retirement plans, a defined benefit postretirement life insurance plan, defined contribution retirement savings plans and deferred compensation plans. Under all of our retirement plans, the Company’s expenses were $2.1 million and $2.3 million in the thirteen weeks ended March 25, 2012 and March 27, 2011, respectively.

The following table provides the components of net periodic benefit cost for the defined benefit plans mentioned above:



	Thirteen Weeks Ended
	March 25, 2012					March 27, 2011
	Pension Benefits			Other Benefits		Pension Benefits			Other Benefits
	(In thousands)
Service cost	$	12		$	—	$	52		$	—
Interest cost	2,029			24		2,465			34
Estimated return on plan assets	(1,435		)	—		(1,856		)	—
Amortization of prior service cost	—			—		1			—
Amortization of net loss	415			—		28			—
Net periodic benefit cost	$	1,021		$	24	$	690		$	34

During the thirteen weeks ended March 25, 2012, the Company contributed $1.4 million to its defined benefit plans.

- Definition

The entire disclosure for pension and other postretirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Paragraph 8
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-URI http://asc.fasb.org/topic&trid=2235017

+ Details

13. Stockholders' Equity

3 Months Ended

Mar. 25, 2012

13. STOCKHOLDERS' EQUITY [Abstract]

Stockholders' Equity Note Disclosure [Text Block]


13.	STOCKHOLDERS' EQUITY

Rights Offering

In January 2012, Pilgrim's commenced the Rights Offering for stockholders of record as of January 17, 2012 (the “Record Date”). The basic subscription privilege gave stockholders the option to purchase 0.2072 shares of Pilgrim's common stock, rounded up to the next largest whole number, at a subscription price of $4.50 per share for each share of Pilgrim's common stock they owned as of the Record Date. The multiplier was determined by dividing the 44,444,444 million shares being offered in the Rights Offering by the total number of shares owned by all stockholders on the Record Date. Those stockholders that exercised their basic subscription privilege in full also received an over-subscription privilege that afforded them the opportunity to purchase additional shares at the subscription price of $4.50 per share from a pool of the shares left over should not all stockholders elect to exercise their basic subscription privileges in full. JBS USA committed to participate in the Rights Offering and exercise its basic and over-subscription privileges in full. The last day a stockholder could exercise either their basic subscription rights or their over-subscription rights was February 29, 2012. On March 7, 2012, the Company issued 44,444,444 shares of common stock to stockholders that exercised their basic subscription privileges and over-subscription privileges under the Rights Offering. Gross proceeds received under the Rights Offering totaled $200.0 million. The Company incurred costs directly attributable to the Rights Offering of $1.6 million that it deferred and charged against the proceeds of the Rights Offering in Additional Paid-in Capital on the Condensed Consolidated Balance Sheet. The Company used the net proceeds of $198.4 million for additional working capital to improve its capital position and for general corporate purposes. Pilgrim's also used a portion of the net proceeds to repay the outstanding principal amount of $50.0 million, plus accrued interest, of its subordinated debt owed to JBS USA and to repay indebtedness under the U.S. Credit Facility.

The Rights Offering contained a subscription price that was less than the fair value of the Company's common stock on the last day the rights could be exercised. This price discount is considered a bonus element similar to a stock dividend. Because of this bonus element, the Company adjusted both the weighted average basic and diluted shares outstanding as reported in the Quarterly Report on Form 10-Q filed with the SEC on April 29, 2011 by multiplying those weighted average shares by an adjustment factor that represented the $6.40 fair value of a share of the Company's common stock immediately prior to the exercise of the basic and over-subscription privileges under the Rights Offering divided by the $6.07 theoretical ex-rights fair value of a share of the Company's common stock immediately prior to the exercise of the basic and over-subscription privileges under the Rights Offering. Weighted average basic and diluted shares outstanding and net loss per weighted average basic and diluted share for the thirteen weeks ended March 27, 2011 as originally reported and as adjusted for this bonus element were as follows:



	As Originally Reported			As Adjusted			Effect of Change
	(In thousands, except per share data)
Weighted average basic shares	214,282			224,996			10,714
Weighted average diluted shares	214,282			224,996			10,714
Net loss per weighted average basic share	$	(0.56	)	$	(0.54	)	$	0.02
Net loss per weighted average diluted share	$	(0.56	)	$	(0.54	)	$	0.02

Share-Based Compensation

The Company granted 200,000 restricted shares of its common stock to William W. Lovette, the Company’s Chief Executive Officer, effective January 14, 2011 in connection with the employment agreement with Mr. Lovette. Restrictions on fifty percent of these shares will lapse on January 3, 2013 and restrictions on the remaining shares will lapse on January 3, 2014, subject to Mr. Lovette’s continued employment with the Company through the applicable vesting date. The $1.4 million fair value of the shares as of the grant date was determined by multiplying the number of shares granted by the closing market price of the Company’s common stock on the grant date. Assuming no forfeiture of shares, the Company will recognize share-based compensation expense of $0.7 million ratably from January 14, 2011 to January 3, 2013. The Company will also recognize share-based compensation expense of $0.7 million ratably from January 14, 2011 to January 3, 2014. During both the thirteen weeks ended March 25, 2012 and March 27, 2011, the Company recognized share-based compensation expense totaling $0.1 million.

Anti-dilutive Common Stock Equivalents

Due to the net loss incurred in the thirteen weeks ended March 27, 2011, the Company did not include 15,240 common stock equivalents in the calculation of the denominator used for net loss per weighted average diluted common share outstanding as these common stock equivalents would be anti-dilutive.

Restrictions on Retained Earnings

The U.S. Credit Facility prohibits us from paying dividends on the common stock of the Company. Further, the indenture governing the 2018 Notes restricts, but does not prohibit, the Company from declaring dividends.

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
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-Number 210
-Section 04
-Article 3

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
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-Number 210
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-Section 08
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-Name Accounting Research Bulletin (ARB)
-Number 43
-Chapter 1
-Section B
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+ Details

14. Related Party Transactions

3 Months Ended

Mar. 25, 2012

14. RELATED PARTY TRANSACTIONS

On December 28, 2009, JBS USA became the holder of the majority of the common stock of the Company. Lonnie A. “Bo” Pilgrim and certain entities related to Mr. Pilgrim collectively owned the second-largest block of Pilgrim’s common stock. On March 12, 2012, Mr. Pilgrim and certain entities related to Mr. Pilgrim entered into an agreement to sell 18,924,438 shares of the Company's common stock to JBS USA. This agreement closed on March 26, 2012. The transaction increased JBS USA's beneficial ownership of the Company's common stock to 75.3%. Mr. Pilgrim served as the Founder Director of the Company until he resigned on March 12, 2012.

Transactions with a JBS USA subsidiary and the former Founder Director are summarized below:



	Thirteen Weeks Ended
	March 25, 2012		March 27, 2011
	(In thousands)
JBS USA, LLC:
Purchases from JBS USA, LLC	$	14,729	$	40,046
Expenditures paid by JBS USA, LLC on behalf of Pilgrim’s Pride Corporation^(a)	15,325		7,869
Sales to JBS USA, LLC	58,142		23,734
Expenditures paid by Pilgrim’s Pride Corporation on behalf of JBS USA, LLC^(a)	1,124		171
Former Founder Director:
Contract grower compensation paid to former Founder Director	297		300
Consulting fee paid to former Founder Director^(b)	374		374
Board fees paid to former Founder Director^(b)	45		37
Sales to former Founder Director	1		1

(a)

On January 19, 2010, the Company entered into an agreement with JBS USA, LLC in order to allocate costs associated with JBS USA, LLC’s procurement of SAP licenses and maintenance services for its combined companies. Under this agreement, the fees associated with procuring SAP licenses and maintenance services are allocated between the Company and JBS USA, LLC in proportion to the percentage of licenses used by each company. The agreement expires on the date of expiration, or earlier termination, of the underlying SAP license agreement. On May 5, 2010, the Company also entered into an agreement with JBS USA, LLC in order to allocate the costs of supporting the business operations by one consolidated corporate team, which have historically been supported by their respective corporate teams. Expenditures paid by JBS USA, LLC on behalf of the Company will be reimbursed by the Company and expenditures paid by the Company on behalf of JBS USA, LLC will be reimbursed by JBS USA, LLC. This agreement expires on May 5, 2015.

(b)

In connection with the Company’s plan of reorganization, the Company and the former Founder Director entered into a consulting agreement, which became effective on December 28, 2009. The terms of the consulting agreement include, among other things, that the former Founder Director (i) will provide services to the Company that are comparable in the aggregate with the services provided by him to the Company prior to December 28, 2009, (ii) will be appointed to the Board of Directors of the Company and during the term of the consulting agreement will be nominated to serve subsequent terms as Founder Director, (iii) will be compensated for services rendered to the Company at a rate of $1.5 million per year for a term of five years, (iv) will be subject to customary non-solicitation and non-competition provisions and (v) will be, along with his spouse, provided with medical benefits (or will be compensated for medical coverage) that are comparable in the aggregate to the medical benefits afforded to employees of the Company. As a result of Mr. Pilgrim's resignation as Founder Director on March 12, 2012, the Company is no longer required to nominate Mr. Pilgrim to serve subsequent terms as Founder Director during the remaining term of the consulting agreement.

As of March 25, 2012 and December 25, 2011, the outstanding payable to JBS USA, LLC was $8.3 million and $11.7 million, respectively. As of March 25, 2012 and December 25, 2011, the outstanding receivable from JBS USA, LLC was $19.4 million and $21.2 million, respectively. As of March 25, 2012, approximately $3.9 million of goods from JBS USA, LLC were in transit and not reflected on our Condensed Consolidated Balance Sheet.

The Company is party to grower contracts involving farms owned by the former Founder Director that provide for the placement of Company-owned flocks on these farms during the grow-out phase of production. These contracts are on terms substantially the same as contracts executed by the Company with unaffiliated parties. The former Founder Director can terminate the contracts upon completion of the grow-out phase for each flock. The Company can terminate the contracts within a specified timeframe pursuant to newly-issued regulations by the Grain Inspection, Packers and Stockyards Administration of the U.S. Department of Agriculture.

The Company maintains depository accounts with a financial institution in which the former Founder Director is also a major stockholder. Fees paid to this bank during the thirteen weeks ended March 25, 2012 and March 27, 2011 were insignificant. The Company had account balances at this financial institution of approximately $1.5 million and $1.9 million at March 25, 2012 and December 25, 2011, respectively.

The former Founder Director has deposited $0.3 million with the Company as an advance on miscellaneous expenditures.

A son of the former Founder Director occasionally sells commodity feed products and a limited amount of other services to the Company. There were no significant purchases during the thirteen weeks ended March 25, 2012 and March 27, 2011. He also leases a small amount of land from the Company for an insignificant rental amount.

On March 2, 2011, the Company agreed to purchase the home of Bill Lovette, our Chief Executive Officer, in Arkansas on reasonable and customary commercial terms and at a purchase price not to exceed approximately $2.1 million. Consequently, Mr. Lovette transferred all of the rights and the Company assumed all obligations relative to the property for a purchase price of $2.1 million. His home has not yet been resold. The Company will be responsible for commissions and closing costs on the resale of the home.

On June 23, 2011, the Company entered into the Subordinated Loan Agreement with JBS USA. For additional information regarding the Subordinated Loan Agreement, see "Note 10. Long-Term Debt and Other Borrowing Arrangements."

- Definition

The entire disclosure for related party transactions, including the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 4
-Section 08
-Paragraph k

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 3A
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 57
-Paragraph 1-4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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+ Details

15. Commitments and Contingencies

3 Months Ended

Mar. 25, 2012

15. COMMITMENTS AND CONTINGENCIES [Abstract]

Commitments and Contingencies Disclosure [Text Block]


15.	COMMITMENTS AND CONTINGENCIES

We are a party to many routine contracts in which we provide general indemnities in the normal course of business to third parties for various risks. Among other considerations, we have not recorded a liability for any of these indemnities as based upon the likelihood of payment, the fair value of such indemnities would not have a material impact on our financial condition, results of operations and cash flows.

The Company is subject to various legal proceedings and claims which arise in the ordinary course of business. In the Company’s opinion, it has made appropriate and adequate accruals for claims where necessary; however, the ultimate liability for these matters is uncertain, and if significantly different than the amounts accrued, the ultimate outcome could have a material effect on the financial condition or results of operations of the Company. For a discussion of the material legal proceedings and claims, see Part II, Item 1. “Legal Proceedings.” Below is a summary of some of these material proceedings and claims. The Company believes it has substantial defenses to the claims made and intends to vigorously defend these cases.

On December 1, 2008, Pilgrim’s and six of its subsidiaries filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Northern District of Texas, Fort Worth Division. The cases were jointly administered under Case No. 08-45664. The Company emerged from Chapter 11 on December 28, 2009. The Company continues to work through the claims allowance process with respect to claims arising before December 28, 2009. The Company will be responsible to the extent those claims become allowed claims. The Company has resolved a majority of the claims filed against it through settlement or by Bankruptcy Court order. The claims resolution process continues for the remaining unresolved claims and will continue until all claims are concluded. Unpaid amounts related to unresolved claims are classified in Accrued expenses and other current liabilities on the Condensed Consolidated Balance Sheets. During the thirteen weeks ended March 25, 2012 the Company did not make any payments to creditors to settle allowed claim amounts. During the thirteen weeks ended March 27, 2011, the Company paid creditors approximately $0.4 million to settle allowed claim amounts and interest accrued on those claim amounts. As of March 25, 2012, the following pre-petition obligations relating to claims not subject to litigation remain outstanding:



In thousands
Trade claims	$	251
Interest accrued on unpaid claims	28
Total pre-petition obligations	$	279

The Company is also the named defendant in several pre-petition lawsuits that, as of March 25, 2012, have not been resolved. Among the claims presently pending are claims brought against certain current and former directors, executive officers and employees of the Company, the Pilgrim’s Pride Administrative Committee and the Pilgrim’s Pride Pension Committee seeking unspecified damages under section 502 of the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1132. These claims were brought by individual participants in the Pilgrim’s Pride Retirement Savings Plan, individually and on behalf of a putative class, alleging that the defendants breached fiduciary duties to plan participants and beneficiaries or otherwise violated ERISA. Although the Company is not a named defendant in these claims, our bylaws require us to indemnify our current and former directors and officers from any liabilities and expenses incurred by them in connection with actions they took in good faith while serving as an officer or director. In these actions the plaintiffs assert claims in excess of $35.0 million. The likelihood of an unfavorable outcome or the amount or range of any possible loss to the Company cannot be determined at this time.

Also, among the claims presently pending against the Company are two identical claims seeking unspecified damages, each brought by a stockholder, individually and on behalf of a putative class, alleging violations of certain antifraud provisions of the Securities Exchange Act of 1934. The court consolidated these cases into one matter. The parties have reached an agreement to settle this matter for $1.5 million, subject to court approval. A Stipulation of Settlement was filed on November 14, 2011. On January 23, 2012, the court issued an Order Preliminarily Approving Settlement, in which the court set a hearing date for the final approval of the settlement for May 1, 2012. If the case does not settle as expected, the defendants intend to defend vigorously against the merits of the action and any attempts by the lead plaintiff to certify a class action.

Other claims presently pending against the Company are claims seeking unspecified damages brought by current or former contract chicken growers who allege, along with other assertions, that the Company breached grower contracts and made false representations to induce the plaintiffs into building chicken farms and entering into chicken growing agreements with the Company. In the case styled Shelia Adams, et al. v. Pilgrim's Pride Corporation, on September 30, 2011, the trial court issued its findings of fact and conclusions of law stating that the Company violated section 192(e) of the Packers and Stockyards Act of 1921 by purportedly attempting to manipulate the price of chicken by idling the El Dorado, Arkansas complex and rejecting the El Dorado growers' contracts. The trial court awarded damages in the amount of $25.8 million. Afterward, the Company filed post-judgment motions attacking the trial court's findings of fact and conclusions of law, which, on December 28, 2011, were granted in part and resulted in a reduction of the damages award from $25.8 million to $25.6 million. On January 19, 2012, the Company appealed the findings of fact and conclusions of law and decision concerning the post-judgment motions to the United States Fifth Circuit Court of Appeals. The Company intends to vigorously pursue its appellate rights and defend against the underlying judgment. While the outstanding judgment is reasonably possible, the Company has recorded an estimated probable loss that is less than the outstanding judgment. The remaining growers' claims are now scheduled to be tried in the summer and fall of 2012. The Company intends to vigorously defend against these claims. Although the likelihood of financial loss related to the remaining growers' claims is reasonably possible, an estimate of potential loss cannot be determined at this time because of now conflicting legal authority, the factual nature of the various growers' individual claims, and a new judge who will preside over the remaining bench trials. There can be no assurances that other similar claims may not be brought against the Company.

The IRS has filed an amended proof of claim in the Bankruptcy Court pursuant to which the IRS asserts claims that total $74.7 million. We have filed in the Bankruptcy Court (i) an objection to the IRS' amended proof of claim, and (ii) a motion requesting the Bankruptcy Court to determine our U.S. federal tax liability pursuant to Sections 105 and 505 of the Bankruptcy Code. The objection and motion assert that the Company has no liability for the additional U.S. federal taxes that have been asserted for pre-petition periods by the IRS. The IRS has responded in opposition to our objection and motion. On July 8, 2010, the Bankruptcy Court granted our unopposed motion requesting that the Bankruptcy Court abstain from determining our federal tax liability. As a result, we intend to work with the IRS through the normal processes and procedures that are available to all taxpayers outside of bankruptcy (including the United States Tax Court (“Tax Court”) proceedings discussed below) to resolve the IRS' amended proof of claim.

In connection with the amended proof of claim, on May 26, 2010, we filed a petition in Tax Court in response to a Notice of Deficiency that was issued to the Company as the successor in interest to Gold Kist. The Notice of Deficiency and the Tax Court proceeding relate to a loss that Gold Kist claimed for its tax year ended June 30, 2004. The matter is currently in litigation before the Tax Court.

On August 10, 2010, we filed two petitions in Tax Court. The first petition relates to three Notices of Deficiency that were issued to us with respect to our 2003, 2005 and 2007 tax years. The second petition relates to a Notice of Deficiency that was issued to us with respect to Gold Kist’s tax year ended June 30, 2005 and its short tax year ended September 30, 2005. Both cases are currently in litigation before the Tax Court.

We express no opinion as to the likelihood of an unfavorable outcome or the amount or range of any possible loss to us related to the above Tax Court cases. If adversely determined, the outcome could have a material effect on the Company’s operating results and financial position.

The Notices of Deficiency and the Tax Court proceedings discussed above cover the same tax years and the same amounts that were asserted by the IRS in its $74.7 million amended proof of claim that was filed in the Bankruptcy Court.

- Definition

The entire disclosure for commitments and contingencies.

+ References

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-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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+ Details

16. Supplemental Guarantor Financial Information

3 Months Ended

Mar. 25, 2012

16. SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION [Abstract]

Guarantees [Text Block]

16. SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION

On December 15, 2010, the Company closed on the sale of $500.0 million of 7⁷/8% Senior Notes due in 2018 (the “2018 Notes”). The 2018 Notes are unsecured obligations of the Company and are fully and unconditionally guaranteed on a senior unsecured basis by Pilgrim’s Pride Corporation of West Virginia, Inc., a wholly owned subsidiary of the Company (the “Guarantor”). In accordance with Rule 3-10 of Regulation S-X promulgated under the Securities Act of 1933, the following condensed consolidating financial statements present the financial position, results of operations and cash flows of the Company (referred to as “Parent” for the purpose of this note only) on a Parent-only basis, the Guarantor on a Guarantor-only basis, the combined non-Guarantor subsidiaries and elimination entries necessary to arrive at the information for the Parent, the Guarantor and non-Guarantor subsidiaries on a consolidated basis. Investments in subsidiaries are accounted for by the Company using the equity method for this presentation.

The tables below present the condensed consolidating balance sheets as of March 25, 2012 and December 25, 2011, the condensed consolidating statements of operations and cash flows for the thirteen weeks ended March 25, 2012 and March 27, 2011 based on the guarantor structure.

CONDENSED CONSOLIDATING BALANCE SHEETS

March 25, 2012



	Parent		Subsidiary Guarantor		Subsidiary Non-Guarantors		Eliminations/ Adjustments			Consolidation
	(In thousands)
Cash and cash equivalents	$	24,129	$	—	$	23,441	$	—		$	47,570
Restricted cash and cash equivalents	—		—		4,684		—			4,684
Investment in available-for-sale securities	—		—		156		—			156
Trade accounts and other receivables, less allowance for doubtful accounts	302,877		1,632		46,323		—			350,832
Account receivable from JBS USA, LLC	19,406		—		—		—			19,406
Inventories	788,755		22,635		99,040		—			910,430
Income taxes receivable	60,112		—		4,614		(842		)	63,884
Current deferred tax assets	—		4,003		1,492		(5,495		)	—
Prepaid expenses and other current assets	22,834		156		17,598		—			40,588
Assets held for sale	34,185		—		16,035		—			50,220
Total current assets	1,252,298		28,426		213,383		(6,337		)	1,487,770
Investment in available-for-sale securities	—		—		591		—			591
Intercompany receivable	31,583		35,006		—		(66,589		)	—
Investment in subsidiaries	328,905		—		—		(328,905		)	—
Deferred tax assets	75,392		—		7		(4,300		)	71,099
Other long-lived assets	50,965		—		180,480		(180,000		)	51,445
Identified intangible assets, net	30,403		—		12,253		—			42,656
Property, plant and equipment, net	1,075,544		48,251		104,973		(3,888		)	1,224,880
Total assets	$	2,845,090	$	111,683	$	511,687	$	(590,019	)	$	2,878,441
Accounts payable	$	244,676	$	9,041	$	39,414	$	—		$	293,131
Account payable to JBS USA, LLC	8,339		—		—		—			8,339
Accrued expenses and other current liabilities	233,407		17,143		40,087		—			290,637
Income taxes payable	—		—		842		(842		)	—
Current deferred tax liabilities	83,809		—		1,014		(5,495		)	79,328
Current maturities of long-term debt	15,614		—		—		—			15,614
Total current liabilities	585,845		26,184		81,357		(6,337		)	687,049
Long-term debt, less current maturities	1,274,510		—		—		(25,000		)	1,249,510
Intercompany payable	—		—		66,589		(66,589		)	—
Deferred tax liabilities	—		4,003		297		(4,300		)	—
Other long-term liabilities	287,039		—		12,867		(155,000		)	144,906
Total liabilities	2,147,394		30,187		161,110		(257,226		)	2,081,465
Total Pilgrim’s Pride Corporation stockholders’ equity	697,696		81,496		347,334		(332,793		)	793,733
Noncontrolling interest	—		—		3,243		—			3,243
Total stockholders’ equity	697,696		81,496		350,577		(332,793		)	796,976
Total liabilities and stockholders’ equity	$	2,845,090	$	111,683	$	511,687	$	(590,019	)	$	2,878,441

CONDENSED CONSOLIDATING BALANCE SHEETS

December 25, 2011



	Parent		Subsidiary Guarantor		Subsidiary Non-Guarantors		Eliminations/ Adjustments			Consolidation
	(In thousands)
Cash and cash equivalents	$	13,733	$	30	$	27,846	$	—		$	41,609
Restricted cash and cash equivalents	—		—		7,680		—			7,680
Investment in available-for-sale securities	—		—		157		—			157
Trade accounts and other receivables, less allowance for doubtful accounts	302,809		1,575		44,838		—			349,222
Account receivable from JBS USA, LLC	21,198		—		—		—			21,198
Inventories	766,227		21,144		91,723		—			879,094
Income taxes receivable	62,160		—		528		(3,621		)	59,067
Current deferred tax assets	—		4,003		1,478		(5,481		)	—
Prepaid expenses and other current assets	35,877		87		16,386		—			52,350
Assets held for sale	37,754		—		16,062		—			53,816
Total current assets	1,239,758		26,839		206,698		(9,102		)	1,464,193
Investment in available-for-sale securities	—		—		497		—			497
Intercompany receivable	50,064		33,978		—		(84,042		)	—
Investment in subsidiaries	304,395		—		—		(304,395		)	—
Deferred tax assets	75,392		—		7		(4,300		)	71,099
Other long-lived assets	57,460		—		180,461		(180,000		)	57,921
Identified intangible assets, net	31,384		—		12,699		—			44,083
Property, plant and equipment, net	1,090,376		49,336		105,928		(3,888		)	1,241,752
Total assets	$	2,848,829	$	110,153	$	506,290	$	(585,727	)	$	2,879,545
Accounts payable	$	270,538	$	13,033	$	45,293	$	—		$	328,864
Account payable to JBS USA, LLC	11,653		—		—		—			11,653
Accrued expenses and other current liabilities	226,016		17,193		38,588		—			281,797
Income taxes payable	—		—		3,621		(3,621		)	—
Current deferred tax liabilities	83,795		—		934		(5,481		)	79,248
Current maturities of long-term debt	15,611		—		—		—			15,611
Total current liabilities	607,613		30,226		88,436		(9,102		)	717,173
Long-term debt, less current maturities	1,433,001		—		—		(25,000		)	1,408,001
Note payable to JBS USA Holdings, Inc.	50,000		—		—		—			50,000
Intercompany payable	—		—		84,042		(84,042		)	—
Deferred tax liabilities	—		4,003		297		(4,300		)	—
Other long-term liabilities	289,697		—		11,675		(155,431		)	145,941
Total liabilities	2,380,311		34,229		184,450		(277,875		)	2,321,115
Total Pilgrim’s Pride Corporation stockholders’ equity	468,518		75,924		319,022		(307,852		)	555,612
Noncontrolling interest	—		—		2,818		—			2,818
Total stockholders’ equity	468,518		75,924		321,840		(307,852		)	558,430
Total liabilities and stockholders’ equity	$	2,848,829	$	110,153	$	506,290	$	(585,727	)	$	2,879,545

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

Thirteen Weeks Ended March 25, 2012



	Parent			Subsidiary Guarantor			Subsidiary Non-Guarantors			Eliminations/ Adjustments			Consolidation
	(In thousands)
Net sales	$	1,639,563		$	76,486		$	233,289		$	(60,565	)	$	1,888,773
Cost of sales	1,567,352			67,543			204,378			(60,565		)	1,778,708
Gross profit	72,211			8,943			28,911			—			110,065
Selling, general and administrative expense	40,218			—			5,038			—			45,256
Administrative restructuring charges	2,880			—			5			—			2,885
Operating income	29,113			8,943			23,868			—			61,924
Interest expense, net	28,076			—			169			—			28,245
Interest income	(9		)	—			(265		)	—			(274		)
Foreign currency transaction losses (gains)	23			—			(5,951		)	—			(5,928		)
Miscellaneous, net	(118		)	(9		)	(529		)	286			(370		)
Income (loss) before income taxes	1,141			8,952			30,444			(286		)	40,251
Income tax expense (benefit)	(4,677		)	3,379			1,951			—			653
Income (loss) before equity in earnings of consolidated subsidiaries	5,818			5,573			28,493			(286		)	39,598
Equity in earnings of consolidated subsidiaries	33,640			—			—			(33,640		)	—
Net income (loss)	39,458			5,573			28,493			(33,926		)	39,598
Less: Net income attributable to noncontrolling interest	—			—			425			—			425
Net income (loss) attributable to Pilgrim’s Pride Corporation	$	39,458		$	5,573		$	28,068		$	(33,926	)	$	39,173

Comprehensive income (loss)	$	39,873		$	5,573		$	28,498		$	(33,926	)	$	40,018
Comprehensive income attributable to noncontrolling interests	—			—			425			—			425
Comprehensive income (loss) attributable to Pilgrim's Pride Corporation	$	39,873		5,573			$	28,073		$	(33,926	)	$	39,593

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

Thirteen Weeks Ended March 27, 2011



	Parent			Subsidiary Guarantor		Subsidiary Non-Guarantors			Eliminations/ Adjustments			Consolidation
	(In thousands)
Net sales	$	1,542,670		$	110,010	$	323,623		$	(83,827	)	$	1,892,476
Cost of sales	1,588,107			102,071		337,887			(83,827		)	1,944,238
Operational restructuring charges	1,348			—		—			—			1,348
Gross profit (loss)	(46,785		)	7,939		(14,264		)	—			(53,110		)
Selling, general and administrative expense	45,161			—		8,087			—			53,248
Administrative restructuring charges	418			—		—			—			418
Operating income (loss)	(92,364		)	7,939		(22,351		)	—			(106,776		)
Interest expense, net	27,187			—		320			—			27,507
Interest income	(301		)	—		(409		)	—			(710		)
Foreign currency transaction gains	(201		)	—		(2,534		)	—			(2,735		)
Miscellaneous, net	25,178			1,127		(27,898		)	522			(1,071		)
Income (loss) before income taxes	(144,227		)	6,812		8,170			(522		)	(129,767		)
Income tax expense (benefit)	(14,750		)	2,571		2,307			—			(9,872		)
Income (loss) before equity in earnings of consolidated subsidiaries	(129,477		)	4,241		5,863			(522		)	(119,895		)
Equity in earnings of consolidated subsidiaries	9,236			—		—			(9,236		)	—
Net income (loss)	(120,241		)	4,241		5,863			(9,758		)	(119,895		)
Less: Net income attributable to noncontrolling interests	—			—		865			—			865
Net income (loss) attributable to Pilgrim’s Pride Corporation	$	(120,241	)	$	4,241	$	4,998		$	(9,758	)	$	(120,760	)

Comprehensive income (loss)	$	(120,279	)	$	4,241	$	5,386		$	(9,758	)	$	(120,410	)
Comprehensive income attributable to noncontrolling interests	—			—		865			—			865
Comprehensive income (loss) attributable to Pilgrim's Pride Corporation	$	(120,279	)	$	4,241	$	4,521		$	(9,758	)	$	(121,275	)

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Thirteen Weeks Ended March 25, 2012



	Parent			Subsidiary Guarantor			Subsidiary Non-Guarantors			Eliminations/ Adjustments			Consolidation
	(In thousands)
Cash flows provided (used in) by operating activities	$	31,926		$	291		$	(2,980	)	$	145		$	29,382
Cash flows from investing activities:
Acquisitions of property, plant and equipment	(13,758		)	(321		)	(2,591		)	—			(16,670		)
Purchases of investment securities	—			—			(88		)	—			(88		)
Proceeds from property sales and disposals	2,451			—			615			—			3,066
Cash used in investing activities	(11,307		)	(321		)	(2,064		)	—			(13,692		)
Cash flows from financing activities:
Payments on note payable to JBS USA Holdings, Inc.	(50,000		)	—			—			—			(50,000		)
Proceeds from long-term debt	183,200			—			—			—			183,200
Payments on long-term debt	(341,802		)	—			—			—			(341,802		)
Proceeds from sale of common stock	198,379			—			—			—			198,379
Other financing activities	—			—			145			(145		)	—
Cash provided by (used in) financing activities	(10,223		)	—			145			(145		)	(10,223		)
Effect of exchange rate changes on cash and cash equivalents	—			—			494			—			494
Increase (decrease) in cash and cash equivalents	10,396			(30		)	(4,405		)	—			5,961
Cash and cash equivalents, beginning of period	13,733			30			27,846			—			41,609
Cash and cash equivalents, end of period	$	24,129		$	—		$	23,441		$	—		$	47,570

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Thirteen Weeks Ended March 27, 2011



	Parent			Subsidiary Guarantor			Subsidiary Non-Guarantors			Eliminations/ Adjustments			Consolidation
	(In thousands)
Cash flows provided by (used in) operating activities	$	(116,077	)	$	4,260		$	9,936		$	(522	)	$	(102,403	)
Cash flows from investing activities:
Acquisitions of property, plant and equipment	(57,547		)	(4,261		)	(2,152		)	—			(63,960		)
Purchases of investment securities	—			—			(1,353		)	—			(1,353		)
Proceeds from sale or maturity of investment securities	—			—			831			—			831
Proceeds from property sales and disposals	3,416			1			985			—			4,402
Cash used in investing activities	(54,131		)	(4,260		)	(1,689		)	—			(60,080		)
Cash flows from financing activities:
Proceeds from long-term debt	255,300			—			—			—			255,300
Payments on long-term debt	(135,625		)	—			—			—			(135,625		)
Payment of capitalized loan costs	(689		)	—			—			—			(689		)
Other financing activities	—			—			(522		)	522			—
Cash provided by (used in) financing activities	118,986			—			(522		)	522			118,986
Effect of exchange rate changes on cash and cash equivalents	—			—			433			—			433
Decrease in cash and cash equivalents	(51,222		)	—			8,158			—			(43,064		)
Cash and cash equivalents, beginning of period	67,685			—			38,392			—			106,077
Cash and cash equivalents, end of period	$	16,463		$	—		$	46,550		$	—		$	63,013