| Investment in National Beef Packing Company, LLC |
(7) Investment in National Beef Packing Company, LLC
USPB’s 15.0729% investment in NBP is accounted
for using the equity method of accounting, as the Company has the ability to exercise significant influence over NBP, but does not have
financial or operational control. The table below summarizes the changes to USPB’s investment in NBP for the thirteen and twenty-six
week periods ended June 28, 2025 and June 29, 2024:
| Schedule of changes to USPB’s investment in NBP | |
| | |
| Investment at December 28, 2024 | |
$ | 169,381 | |
| Equity in net loss for thirteen-week period | |
| (10,263 | ) |
| Distributions | |
| – | |
| Investment at March 29, 2025 | |
| 159,118 | |
| Equity in net loss for thirteen-week period | |
| (5,290 | ) |
| Distributions | |
| – | |
| Investment at June 28, 2025 | |
$ | 153,828 | |
| | |
| | |
| Investment at December 30, 2023 | |
$ | 162,597 | |
| Equity in net loss for thirteen-week period | |
| (682 | ) |
| Distributions | |
| – | |
| Investment at March 30, 2024 | |
| 161,915 | |
| Equity in net income for thirteen-week period | |
| 4,781 | |
| Distributions | |
| – | |
| Investment at June 29, 2024 | |
$ | 166,696 | |
The difference between USPB’s percentage ownership
share of NBP net loss or income and the recorded amount of Equity in net loss or income of NBP is attributable to the amortization of
a basis difference related to the purchase accounting for NBP’s acquisition of Ohio Beef in 2019.
Below is a summary of the results of operations
for NBP for the thirteen and twenty-six weeks ended June 28, 2025 and June 29, 2024 (thousands of dollars):
| Schedule of results of operations for NBP | |
| | | |
| | | |
| | | |
| | |
| | |
13-weeks ended | | |
26-weeks ended | |
| | |
June 28, 2025 | | |
June 29, 2024 | | |
June 28, 2025 | | |
June 29, 2024 | |
| | |
(unaudited) | | |
(unaudited) | | |
(unaudited) | | |
(unaudited) | |
| Net sales | |
$ | 3,263,256 | | |
$ | 3,098,975 | | |
$ | 6,529,485 | | |
$ | 5,928,977 | |
| Costs and expenses: | |
| | | |
| | | |
| | | |
| | |
| Cost of sales | |
| 3,216,822 | | |
| 2,988,872 | | |
| 6,466,795 | | |
| 5,741,616 | |
| Selling, general, and administrative expenses | |
| 25,501 | | |
| 28,071 | | |
| 56,140 | | |
| 65,441 | |
| Depreciation and amortization | |
| 42,707 | | |
| 38,169 | | |
| 84,399 | | |
| 72,707 | |
| Total costs and expenses | |
| 3,285,030 | | |
| 3,055,112 | | |
| 6,607,334 | | |
| 5,879,764 | |
| Operating (loss) income | |
| (21,774 | ) | |
| 43,863 | | |
| (77,849 | ) | |
| 49,213 | |
| Other income (expense): | |
| | | |
| | | |
| | | |
| | |
| Interest income | |
| 7 | | |
| 19 | | |
| 18 | | |
| 60 | |
| Interest expense | |
| (12,855 | ) | |
| (11,124 | ) | |
| (24,397 | ) | |
| (20,235 | ) |
| Net (loss) income before taxes | |
| (34,622 | ) | |
| 32,758 | | |
| (102,228 | ) | |
| 29,038 | |
| Income tax refund (expense) | |
| 522 | | |
| (40 | ) | |
| 1,042 | | |
| 154 | |
| Net (loss) income | |
$ | (34,100 | ) | |
$ | 32,718 | | |
$ | (101,186 | ) | |
$ | 29,192 | |
|