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For foreign currency-denominated entities other than the Company's Mexico operations, translation from local currencies into U. dollars is performed for most assets and liabilities using the exchange rates in effect as of the balance sheet date. Gold n plump grain prices. During 2017, accrued interest and penalty amounts related to uncertain tax positions decreased by $1. 6% respectively of their sales consisted of fresh products such as main cuts of chicken or pork along with whole chickens and turkey. Relationship with JBS.
0% of expected net sales related to the respective trade names. Customer relationships. Gold n plump corn prices. To the extent historical results were affected by unsustainable trends or events, the effects of those trends or events were quantified and removed. The useful lives range from three to 20 years for trade names and non-compete agreements and 5 to 16 years for customer relationships. Contributions by employer. While many of those operations have been sold or closed, some environmental laws impose strict and, in certain circumstances, joint and several liability for costs of investigation and remediation of contaminated sites on current and former owners and operators of the sites, and on persons who arranged for disposal of wastes at such sites. Property, plant and equipment at fair value gave consideration to the highest and best use of the assets.
If a lease has a fixed or determinable escalation clause, the difference between rent expense and rent paid is recorded as deferred rent and is included in the Consolidated and Combined Balance Sheets. In addition, some of the Company's loan agreements contain a withholding tax provision that requires the Company to pay additional amounts to the applicable lender or other financing party, generally if withholding taxes are imposed on such lender or other financing party as a result of a change in the applicable tax law. Presently, this category includes chicken by-products, which we convert into protein products and sell primarily to manufacturers of pet foods. Interest expense, net of capitalized interest. Net non-cash expense items increased primarily because of $231. Such consolidation of firms within the chicken industry is expected by Joe Maxwell (president of the Farm Action advocacy group who were consulted by the DOJ regarding the merger) to further increase the costs of poultry farming. PENSION AND OTHER POSTRETIREMENT BENEFITS. 0 million of the term loan indebtedness under the U. Certain written and oral statements made by our Company and subsidiaries of our Company may constitute "forward-looking statements" as defined under the Private Securities Litigation Reform Act of 1995. Grain of gold price. September 8, 2017 through December 31, 2017. Given the interdependency of the Company's individual facilities during the production process, which operate as a vertically integrated network, it evaluates impairment of assets held for use at the country level (i. In August, McDonald's Corp said it had removed antibiotics that are important to human medicine from chicken served in its U. S. stores. The results of operations and financial position of Moy Park have been combined with the results of operations and financial position of Pilgrim's from September 30, 2015, the common control date, through September 7, 2017. Griller birds, chicken franks and further processed thigh meat.
The FCPA also requires maintenance of adequate record-keeping and internal accounting practices to accurately reflect transactions. With the exception of one customer that accounts for approximately 4. Generally, the Company purchases derivative financial instruments, specifically exchange-traded futures and options, in an attempt to mitigate price risk related to its anticipated consumption of commodity inputs for approximately the next 12 months. As of December 31, 2017, the Company had recorded a liability of $7. The Company's Moy Park operation also attempts to mitigate foreign currency exposure on certain euro- and U. dollar-denominated transactions through the use of derivative financial instruments. Contractual Obligations. Furthermore, the acquisition in 2017 of the loss-making UK pork producer Tulip from Danish Crown seems to have brought down the efficiency of Pilgrim's operations, with the average operating margins between 2013-2017 being 10. Commodity option instruments. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The Company sponsors programs that provide retirement benefits to most of its employees. Prepaid expenses and other current assets had cash proceeds of $19. On September 29, 2017, the Company completed a sale of $600.
The increase in net sales per pound contributed $133. The Mexican peso exchange rate can directly and indirectly impact our financial condition and results of operations in several ways, including potential economic recession in Mexico because of devaluation of their currency. These charges are reported in the line item Administrative restructuring charges on the Consolidated and Combined Statements of Income and are recognized in the U. segment. Under the supervision and with the participation of management, including its Chief Executive Officer and Chief Financial Officer, PPC's management assessed the design and operating effectiveness of internal control over financial reporting as of December 31, 2017 based on the 2013 Framework. Property, plant and equipment are stated at cost, and repair and maintenance costs are expensed as incurred. Foreign net operating losses. These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. In general, the competitive factors in the U. retail market, we believe that competition is based on product quality, brand awareness, customer service and price. Approximately 5, 200 contract growers supply poultry for the Company's operations. 0 million (U. dollar-equivalent $20. First, we need your zip code... We deliver to you! Long-Term Debt and Other Borrowing Arrangements" for additional information. Total accounts payable to related parties.
And Mexico, we primarily compete with other vertically integrated chicken companies. We have a results-oriented culture with our business strategy centered on reducing fixed costs and increasing profitability, consistent with JBS values. 0 million and $ 1, 232. "I first want to commend immediate past chairman Lampkin Butts for his outstanding service to NCC and to the industry this past year and for his long list of accomplishments, " noted Brown. Our primary customer markets consist of the foodservice and retail channels, as well as selected export and other markets. Balance at December 31, 2017. 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.
It may also include real estate investment options that directly own property. The financial statements and schedules listed in the index to financial statements and schedules on page 1 of this annual report are filed as part of this annual report. Neither the Board of Directors nor JBS has determined if it would be in the best interest of the Company to divest any of these closed or idled assets. The respective contributions did not impact either the Company or noncontrolling stockholders' ownership percentages in GAPESA. The decrease in sales volume, which resulted from the unfavorable impact that ongoing operational improvements in one of our prepared foods facilities had on production during the period and lower product demand from our commercial customers, contributed $300. 5 million in provisional tax benefit related to the net change in deferred tax liabilities stemming from the Tax Act's reduction of the U. federal tax rate from 35. The change in cash related to inventories was primarily due to increases in our live chicken and finished chicken products and inventories related to the GNP acquisition. Tyson, the nation's largest chicken company, intends to remove such antibiotics from its flocks by September 2017. Our variable-rate debt instruments represent approximately 34. President and Chief Executive Officer. No awards vested in 2016. We believe that we operate one of the more efficient business models for chicken production in Mexico. The Company's loan agreements generally obligate the Company to reimburse the applicable lender for incremental increased costs due to a change in law that imposes (i) any reserve or special deposit requirement against assets of, deposits with or credit extended by such lender related to the loan, (ii) any tax, duty or other charge with respect to the loan (except standard income tax) or (iii) capital adequacy requirements.
The purchase was funded through cash on hand and borrowings under the U. We take precautions designed to ensure that our flocks are healthy and that our processing plants and other facilities operate in a sanitary and environmentally-sound manner. Additionally, the Company exports chicken products to approximately 100 countries. The agreement provides for a multicurrency revolving loan commitment of up to £ 20. dollar-equivalent loan commitment under Moy Park multicurrency revolving facility was $27. Accounting for Uncertainty in Income Taxes. Unadjusted quoted prices in active markets for identical assets are used to determine fair value. Under this method, we would not restate the prior financial statements presented, and would record any adjustments in the opening balance sheet for January 2018. For the unitary states, we have an obligation to make tax payments to JBS USA Holdings for our share of the unitary taxable income, which is included in taxes payable in our Consolidated and Combined Balance Sheets. QUARTERLY RESULTS (UNAUDITED). The Company uses various market valuation techniques to determine the fair value of its identified intangible assets.
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. Based on this assessment, management concluded that PPC's internal control over financial reporting was effective as of December 31, 2017. JBS USA beneficially owns a majority of our common stock and has the ability to control the vote on most matters brought before the holders of our common stock. Within this market, we service frozen, fresh and corporate accounts. Historically, the outbreaks of low pathogenic strains of avian influenza have not generated the same level of concern, or received the same level of publicity or been accompanied by the same reduction in demand for poultry products in certain countries as that associated with highly pathogenic strains such as HPAI H5 and H7N3 or highly infectious strains such as H7N9. The court granted the motion on May 8, 2017, staying the proceedings pending resolution of the motion to dismiss in the Hogan action. The Company sponsors two defined contribution retirement savings plans in the U. segment named the Pilgrim's Pride Retirement Savings Plan (the "RS Plan") and the To-Ricos Employee Savings, Retirement Plan (the "To-Ricos Plan"). The disease was found in wild birds, as well as in a few backyard and commercial poultry flocks. 8 million in costs related to the STIP at December 31, 2017 related to cash bonus awards that could potentially be awarded during 2018. The functional currency of the Company's U. and Mexico operations and certain holding-company subsidiaries in Luxembourg, the U. and Ireland is the U. dollar. In my opinion, this highlights the relative inefficiency with which Pilgrim's operates its businesses.
5 billion Mexican pesos. We are also exposed to the effect of potential currency exchange rate fluctuations to the extent that amounts are repatriated from Mexico to the U. Reference is made to the sections entitled "Security Ownership, " "Section 16(a) Beneficial Ownership Reporting Compliance, " "2017 Director Compensation Table, " "Report of the Compensation Committee, " "Compensation Discussion and Analysis, " "Executive Compensation, " "Compensation Committee Interlocks and Insider Participation" and "Related Party Transactions" of the Company's Proxy Statement for its 2018 Annual Meeting of Stockholders, which sections are incorporated herein by reference. 406. International equity funds (f). Fresh chicken is an important component of our sales and accounted for $5, 700. It is not practicable at this time to estimate the amount of unrecognized tax benefits that will change in the next twelve months.