Item 2. PROPERTIES

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Item 2. PROPERTIES

The following table summarizes our domestic production and distribution properties as of September 28, 2019:



	Number of Facilities(1)
	Owned	Leased	Total	Capacity(2)	Average Capacity Utilization
Beef Segment Production Facilities	12	—	12	155,000 head(3)	85	%
Pork Segment Production Facilities	6	—	6	461,000 head	90	%
Chicken Segment Operation Facilities	175	8	183	45 million head	87	%
Prepared Foods Operation Facilities	38	2	40	76 million pounds	86	%
Distribution Centers and Outside Cold Storage Facilities	23	19	42	n/a	n/a


(1)	Certain facilities produce products that are reported in multiple segments. For presentation purposes, facilities are reflected in the segment that had the majority of the facility’s production. Additionally, livestock grower farms are excluded.


(2)	Capacity per week is based on the following: Beef and Pork (six day week) and Chicken and Prepared Foods (five day week). Capacity per week at year end is also impacted by acquisitions and divestitures during fiscal 2019. Average capacity utilization is based on capacity available throughout the year.


(3)	Includes one temporarily idled plant due to the impact of a fire.

Beef: Beef plants include various phases of harvesting live cattle and fabricating beef products. We also have various plants which have rendering operations along with tanneries and hide treatment operations. The Beef segment includes three case-ready operations that share facilities with the Pork segment. One of the beef facilities contains a tallow refinery.

Pork: Pork plants include various phases of harvesting live hogs and fabricating pork products and allied products. The Pork segment includes three case-ready operations that share facilities with and are included in the Beef segment above.

Chicken: Our vertically-integrated Chicken operations facilities include processing plants, rendering plants, blending mills, feed mills, grain elevators and broiler hatcheries. The Chicken processing plants include various phases of harvesting, dressing, cutting, packaging, deboning and further-processing. We also have animal nutrition operations, which are associated with the Chicken rendering plants or within various Chicken processing facilities. The blending mills, feed mills, grain elevators and broiler hatcheries have sufficient capacity to meet the needs of the chicken growout operations. The Chicken segment includes five processing plants that share facilities with and are included in the Prepared Foods segment above.

Prepared Foods: Our Prepared Foods segment includes processing plants and a vertically-integrated turkey operation. Our Prepared Foods plants process fresh and frozen chicken, turkey, beef, pork and other raw materials into ready-to-eat sandwiches, sandwich components such as flame-grilled hamburgers and Philly steaks, pizza toppings, branded and processed meats, appetizers, prepared meals, ethnic foods, flour and corn tortilla products and meat dishes. The Prepared Foods segment includes two processing plants that share facilities with and are included in the Chicken segment above.

In addition, our International/Other foreign production operations in Asia-Pacific and China-Korea include one beef plant, 20 chicken processing plants, four feed mills and one broiler hatchery. The processing plants include various phases of harvesting, dressing, cutting, packaging, deboning and further-processing. We also have foreign production operations in Europe which include two chicken further-processing plants.

We believe our present facilities are generally adequate and suitable for our current purposes; however, seasonal fluctuations in inventories and production may occur as a reaction to market demands for certain products. We regularly engage in construction and other capital improvement projects intended to expand capacity and improve the efficiency of our processing and support facilities. We also consider the efficiencies of our operations and may from time to time consider changing the number or type of plants we operate to align with our capacity needs.

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