8-K Pension and Postretirement Benefits



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K



CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


Date of report (Date of earliest event reported): August 14, 2012



PILGRIM'S PRIDE CORPORATION
(Exact Name of registrant as specified in its charter)

Delaware
1-9273
75-1285071
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)
 
 
 
1770 Promontory Circle
Greeley, CO
80634-9038
(Address of principal executive offices)
(Zip Code)


Registrant's telephone number, including area code: (970) 506-8000

Not Applicable
(Former name or former address, if changed since last report.)



Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))











Item 7.01        Regulation FD Disclosure

Attached hereto as Exhibit 99.1 is information regarding Pilgrim's Pride Corporation pension and other postretirement benefits disclosed by JBS S.A. in their quarterly financial report submitted to the Comissão de Valores Mobiliários on August 14, 2012.

The information furnished in Item 7.01 and in Exhibit 99.1 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any of Pilgrim's Pride Corporation's filings under the Securities Act of 1933, as amended, or the Exchange Act.

Item 9.01        Financial Statements and Exhibits

(d)    Exhibits
Exhibit Number
Description
99.1
Information regarding Pilgrim's Pride Corporation pension and other postretirement benefits disclosed by JBS S.A. in their quarterly financial report submitted to the Comissão de Valores Mobiliários on August 14, 2012.

































SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
PILGRIM'S PRIDE CORPORATION
 
 
 
Date:
  August 15, 2012
 
By:
/s/ Fabio Sandri
 
Fabio Sandri
 
Chief Financial Officer




























Exhibit Index

Exhibit Number
Description
99.1
Information regarding Pilgrim's Pride Corporation pension and other postretirement benefits disclosed by JBS S.A. in their quarterly financial report submitted to the Comissão de Valores Mobiliários on August 14, 2012.














































Exhibit 99.1

PILGRIM'S PRIDE CORPORATION
PENSION AND OTHER POSTRETIREMENT BENEFITS
(Unaudited)

Defined Benefit Plans Obligations and Assets
The following tables provide reconciliations of the changes in the plans’ projected benefit obligations and fair value of assets as well as statements of the funded status, balance sheet reporting and economic assumptions for these plans:
 
Twenty-Six Weeks Ended June 24, 2012
 
Pension Benefits
 
Other Benefits
Change in projected benefit obligation:
(In thousands)
Projected benefit obligation, December 25, 2011
$
167,931

 
$
1,961

Service cost
25

 

Interest cost
4,136

 
48

Actuarial losses
11,946

 
140

Benefits paid
(3,104
)
 
(83
)
Projected benefit obligation, June 24, 2012
$
180,934

 
$
2,066

 
Twenty-Six Weeks Ended June 24, 2012
 
Pension Benefits
 
Other Benefits
Change in plan assets:
(In thousands)
Fair value of plan assets, December 25, 2011
$
81,193

 
$

Actual return on plan assets
2,775

 

Contributions by employer
4,321

 
83

Benefits paid
(3,104
)
 
(83
)
Fair value of plan assets, June 24, 2012
$
85,185

 
$

 
June 24, 2012
 
Pension Benefits
 
Other Benefits
Funded status:
(In thousands)
Funded status
$
(95,749
)
 
$
(2,066
)
Unrecognized net actuarial loss (gain)
41,992

 
(76
)
Accrued benefit cost
$
(53,757
)
 
$
(2,142
)
 
June 24, 2012
 
Pension Benefits
 
Other Benefits
Amounts recognized in the balance sheet:
(In thousands)
Accrued benefit cost (current)
$
(10,940
)
 
$
(167
)
Accrued benefit cost (long-term)
(84,809
)
 
(1,899
)
Accumulated other comprehensive loss (income)
41,992

 
(76
)
Net amount recognized
$
(53,757
)
 
$
(2,142
)







 
June 24, 2012
 
Pension Benefits
 
Other Benefits
Economic assumptions:
 
 
 
Discount rate
4.58
%
 
4.59
%
Rate of increase in compensation levels
3.00
%
 
NA

The accumulated benefit obligation for all defined benefit plans was $183.0 million at June 24, 2012. All of the Company’s defined benefit plans had an accumulated benefit obligation in excess of plan assets at June 24, 2012.
Plan Assets
The following table reflects the pension plans’ actual asset allocations:
 
June 24, 2012
Cash and money market funds
%
Equity securities
69
%
Debt securities
31
%
Total assets
100
%
Absent regulatory or statutory limitations, the target asset allocation for the investment of the assets for our ongoing pension plans is 30% in debt securities and 70% in equity securities. The plans only invest in debt and equity instruments for which there is a ready public market. We develop our expected long-term rate of return assumptions based on the historical rates of returns for equity and debt securities of the type in which our plans invest.
The fair value measurements of plan assets fell into the following levels of the fair value hierarchy:
 
June 24, 2012
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(In thousands)
Cash and money market funds
$
102

 
$

 
$

 
$
102

Equity securities

 
59,027

 

 
59,027

Debt securities

 
26,056

 

 
26,056

Total
$
102

 
$
85,083

 
$

 
$
85,185

The valuation of plan assets 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 equity and fixed income securities funds.
Benefit Payments
The following table reflects the benefits as of June 24, 2012 expected to be paid through 2021 from our pension and other postretirement plans. Because our pension plans are primarily funded plans, the anticipated benefits with respect to these plans will come primarily from the trusts established for these plans. Because our other postretirement plans are unfunded, the anticipated benefits with respect to these plans will come from our own assets.





 
Pension Benefits
 
Other Benefits
 
(In thousands)
June 27, 2012 through December 30, 2012
$
5,542

 
$
83

2013
10,796

 
168

2014
10,666

 
170

2015
10,250

 
171

2016
10,368

 
171

2017-2021
49,860

 
817

Total
$
97,482

 
$
1,580

We anticipate contributing $9.9 million and $0.2 million to our pension and other postretirement plans, respectively, during 2012.
Unrecognized Benefit Amounts in Accumulated Other Comprehensive Loss (Income)
The amounts in accumulated other comprehensive income (loss) that were not recognized as components of net periodic benefits cost and the changes in those amounts are as follows:
 
Twenty-Six Weeks Ended June 24, 2012
 
Pension Benefits
 
Other Benefits
 
(In thousands)
Net actuarial loss (gain), December 25, 2011
$
31,108

 
$
(217
)
Amortization
(831
)
 
1

Liability loss
11,564

 
140

Asset loss
151

 

Net actuarial loss (gain), June 24, 2012
$
41,992

 
$
(76
)