v3.25.2
Accounting Policies
 6 Months Ended
Jun. 28, 2025
Accounting Policies [Abstract]  
Accounting Policies

(2) Accounting Policies

 

Accounting for Investment in NBP. 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.

 

Operating losses, diminished cash flows, economic and industry events, pandemics, such as coronavirus disease (COVID-19), and a variety of other factors may result in a decrease in the value of the investment in NBP, which may be other than temporary. Such potential decreases in value, if deemed other than temporary, would cause the Company to record an impairment charge, which may have an impact on the trading values of USPB’s Class A and Class B units. We believe the fair value of our investment in NBP exceeds the carrying value.

 

Cash and Cash Equivalents. The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. As of June 28, 2025 and December 28, 2024, the Company’s balance sheet reflected Cash and cash equivalents of $20.7 million and $39.0 million, respectively. The cash is invested in the CoBank, ACB (“CoBank”) overnight investment account. Investments are not deposits and are not insured by the Federal Deposit Insurance Corporation or the Farm Credit System Insurance Corporation.

 

Certificates of Deposit. Certificates of deposit held for investment with original maturities greater than three months and remaining maturities less than one year are classified as current assets. Certificates of deposit with remaining maturities greater than one year are classified as long-term assets. The table below summarizes the certificate of deposit investments:

           
Investment Date  Maturity Date  Interest Rate  Amount Invested 
1/30/2025  7/31/2025  4.38%  $10,000,000 
10/3/2024  10/2/2025  3.05%  $10,000,000 
4/3/2025  10/2/2025  4.02%  $9,000,000 
Various 2025  Various 2025  4.00% - 4.40%  $4,794,000 

 

Treasury Securities. Treasury securities held for investment with original maturities greater than three months and remaining maturities less than one year are classified as current assets. The table below summarizes the treasury securities:

           
Investment Date  Maturity Date  Interest Rate  Current Investment Amount 
1/31/2025  8/31/2025  4.25%  $9,928,900 
4/7/2025  10/2/2025  4.06%  $4,235,607 

 

 

Accrued Expenses. The Company accrues for expenses that have been incurred but have not been invoiced. As of June 28, 2025, the Company had $0.1 million accrued, the majority of which relates to accounting expenses. The accrued amount is included in Other accrued expenses and liabilities on the balance sheet.

 

Segment Reporting

 

USPB is not organized by multiple operating segments for the purpose of making operating decisions or assessing performance. USPB’s equity method investment is the operating segment of USPB. Accordingly, USPB has one reportable segment. The remaining activity of USPB relates to the corporate function of the Company. The total amount of investment in equity method investees is disclosed in the Company’s balance sheets above.

 

USPB’s CEO is the Chief Operating Decision Maker (“CODM”) for USPB. As the CODM, he is responsible for managing all of USPB’s operations. The Company’s primary business operation is managing its members’ investment in National Beef. An operating segment is defined as a component of an enterprise for which separate financial information is evaluated regularly by the CODM in deciding how to allocate resources and assess performance. The segment participates in activities and derives income.

 

The CODM assesses performance of the segment based on equity in earnings of National Beef for purposes of allocating resources and evaluating financial performance as presented on the statement of operations. The CODM uses this measure in the annual budgeting and monthly forecasting process and to evaluate income generated from segment assets to distribute cash to unitholders. The accounting policies of the segment are the same as those described in the summary of significant accounting policies.

 

Significant segment expenses regularly provided to the CODM are the financial statement line items of National Beef, as disclosed in the tables below.

 

The operating results and assets of the Company’s reportable segment were as follows (in thousands):

                    
   13-weeks ended June 28, 2025 
   Equity Method Investment in National Beef Packing Company, LLC and Subsidiaries (1)   Elimination of Unconsolidated Affiliate   Corporate and Other of USPB   Consolidated Total of USPB 
Net sales  $3,263,256   $(3,263,256)  $–   $– 
Cost of sales   3,216,822    (3,216,822)   –    – 
Selling, general and administrative expenses   25,501    (25,501)   (811)   (811)
Depreciation and amortization   42,707    (42,707)   (3)   (3)
Interest income   7    (7)   630    630 
Interest expense   (12,855)   12,855    –    – 
Other, net   –    –    732    732 
Income tax refund   522    (522)   –    – 
Net loss at National Beef   (34,100)   34,100    –    – 
Equity in net loss of National Beef   (5,290)             (5,290)
Net loss of USPB                 $(4,742)
                     
Total assets  $2,327,690   $(2,327,690)  $224,665   $224,665 
Total liabilities  $1,347,645   $(1,347,645)  $10,076   $10,076 
Capital expenditures for segment assets  $(20,680)  $20,680   $–   $– 

 

(1) Amounts reflect those recorded in National Beef Packing Company, LLC and subsidiaries consolidated financial statements.

 

   26-weeks ended June 28, 2025 
   Equity Method Investment in National Beef Packing Company, LLC and Subsidiaries (1)   Elimination of Unconsolidated Affiliate   Corporate and Other of USPB   Consolidated Total of USPB 
Net sales  $6,529,485   $(6,529,485)  $–   $– 
Cost of sales   6,466,795    (6,466,795)   –    – 
Selling, general and administrative expenses   56,140    (56,140)   (1,770)   (1,770)
Depreciation and amortization   84,399    (84,399)   (7)   (7)
Interest income   18    (18)   1,237    1,237 
Interest expense   (24,397)   24,397    –    – 
Other, net   –    –    767    767 
Income tax refund   1,042    (1,042)   –    – 
Net loss at National Beef   (101,186)   101,186    –    – 
Equity in loss of National Beef   (15,553)             (15,553)
Net loss of USPB                 $(15,326)
                     
Total assets  $2,327,690   $(2,327,690)  $224,665   $224,665 
Total liabilities  $1,347,645   $(1,347,645)  $10,076   $10,076 
Capital expenditures for segment assets  $(33,421)  $33,421   $–   $– 

 

(1) Amounts reflect those recorded in National Beef Packing Company, LLC and subsidiaries consolidated financial statements.

 

   13-weeks ended June 29, 2024 
   Equity Method Investment in National Beef Packing Company, LLC and Subsidiaries (1)   Elimination of Unconsolidated Affiliate   Corporate and Other of USPB   Consolidated Total of USPB 
Net sales  $3,098,975   $(3,098,975)  $–   $– 
Cost of sales   2,988,872    (2,988,872)   –    – 
Selling, general and administrative expenses   28,071    (28,071)   (752)   (752)
Depreciation and amortization   38,169    (38,169)   (3)   (3)
Interest income   19    (19)   786    786 
Interest expense   (11,124)   11,124    –    – 
Other, net   –    –    466    466 
Income tax refund   (40)   40    –    – 
Net income at National Beef   32,718    (32,718)   –    – 
Equity in net income of National Beef   4,781              4,781 
Net income of USPB                 $5,278 
                     
Total assets  $2,299,283   $(2,299,283)  $236,944   $236,944 
Total liabilities  $1,237,959   $(1,237,959)  $10,227   $10,227 
Capital expenditures for segment assets  $(38,705)  $38,705   $–   $– 

 

(1) Amounts reflect those recorded in National Beef Packing Company, LLC and subsidiaries consolidated financial statements.

 

   26-weeks ended June 29, 2024 
   Equity Method Investment in National Beef Packing Company, LLC and Subsidiaries (1)   Elimination of Unconsolidated Affiliate   Corporate and Other of USPB   Consolidated Total of USPB 
Net sales  $5,928,977   $(5,928,977)  $–   $– 
Cost of sales   5,741,616    (5,741,616)   –    – 
Selling, general and administrative expenses   65,441    (65,441)   (1,790)   (1,790)
Depreciation and amortization   72,707    (72,707)   (7)   (7)
Interest income   60    (60)   1,639    1,639 
Interest expense   (20,235)   20,235    –    – 
Other, net   –    –    646    646 
Income tax refund   154    (154)   –    – 
Net income in National Beef   29,192    (29,192)   –    – 
Equity in net income of National Beef   4,099              4,099 
Net income of USPB                 $4,587 
                     
Total assets  $2,299,283   $(2,299,283)  $236,944   $236,944 
Total liabilities  $1,237,959   $(1,237,959)  $10,227   $10,227 
Capital expenditures for segment assets  $(72,222)  $72,222   $–   $– 

 

(1) Amounts reflect those recorded in National Beef Packing Company, LLC and subsidiaries consolidated financial statements.