| 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 quarterly and year-to-date
periods ended June 27, 2026 and June 28, 2025 (unaudited) (thousands of dollars):
| Schedule of changes to USPB’s investment in NBP | |
| | |
| Investment at December 27, 2025 | |
$ | 179,759 | |
| Equity in net loss for thirteen-week period | |
| (6,646 | ) |
| Distributions | |
| – | |
| Investment at March 28, 2026 | |
| 173,113 | |
| Equity in net loss for thirteen-week period | |
| (5,474 | ) |
| Distributions | |
| – | |
| Investment at June 27, 2026 | |
$ | 167,639 | |
| | |
| | |
| 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 | |
The difference between USPB’s percentage
ownership share of NBP net loss and the recorded amount of Equity in net loss 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 quarterly and year-to-date periods ended June 27, 2026 and June 28, 2025 (thousands of dollars):
| Schedule of results of operations for NBP | |
| | | |
| | | |
| | | |
| | |
| | |
13-weeks ended | |
26-weeks ended |
| | |
June 27, 2026 | |
June 28, 2025 | |
June 27, 2026 | |
June 28, 2025 |
| | |
(unaudited) | |
(unaudited) | |
(unaudited) | |
(unaudited) |
| Net sales | |
$ | 3,748,080 | | |
$ | 3,263,256 | | |
$ | 7,239,258 | | |
$ | 6,529,485 | |
| Costs and expenses: | |
| | | |
| | | |
| | | |
| | |
| Cost of sales | |
| 3,714,652 | | |
| 3,216,822 | | |
| 7,187,918 | | |
| 6,466,795 | |
| Selling, general, and administrative expenses | |
| 14,179 | | |
| 25,501 | | |
| 22,293 | | |
| 56,140 | |
| Depreciation and amortization | |
| 45,050 | | |
| 42,707 | | |
| 88,958 | | |
| 84,399 | |
| Total costs and expenses | |
| 3,773,881 | | |
| 3,285,030 | | |
| 7,299,169 | | |
| 6,607,334 | |
| Operating loss | |
| (25,800 | ) | |
| (21,774 | ) | |
| (59,911 | ) | |
| (77,849 | ) |
| Other income (expense): | |
| | | |
| | | |
| | | |
| | |
| Interest income | |
| 5 | | |
| 7 | | |
| 74 | | |
| 18 | |
| Interest expense | |
| (9,780 | ) | |
| (12,855 | ) | |
| (19,257 | ) | |
| (24,397 | ) |
| Net loss before taxes | |
| (35,575 | ) | |
| (34,622 | ) | |
| (79,094 | ) | |
| (102,228 | ) |
| Income tax refund | |
| 257 | | |
| 522 | | |
| 683 | | |
| 1,042 | |
| Net loss | |
$ | (35,318 | ) | |
$ | (34,100 | ) | |
$ | (78,411 | ) | |
$ | (101,186 | ) |
|