Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Feb. 25, 2017 | |
Entity Registrant Name | U. S. Premium Beef, LLC | |
Entity Central Index Key | 1,289,237 | |
Document Type | 10-K | |
Document Period End Date | Dec. 31, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity a Well-known Seasoned Issuer | No | |
Entity a Voluntary Filer | No | |
Entity's Reporting Status Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2,016 | |
Entity Public Float | $ 0 | |
Class A Units [Member] | ||
Entity Common Stock, Shares Outstanding | 735,385 | |
Class B Units [Member] | ||
Entity Common Stock, Shares Outstanding | 755,385 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 26, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 85,230 | $ 85,220 |
Due from affiliates | 48 | 137 |
Other current assets | 27 | 8 |
Total current assets | 85,305 | 85,365 |
Property, plant, and equipment, at cost | 223 | 223 |
Less accumulated depreciation | 188 | 175 |
Net property, plant, and equipment | 35 | 48 |
Investment in National Beef Packing Company, LLC | 143,446 | 132,628 |
Other assets | 146 | 196 |
Total assets | 228,932 | 218,237 |
Current liabilities: | ||
Accounts payable - trade | 66 | 14 |
Due to affiliates | 37 | 0 |
Accrued compensation and benefits | 1,690 | 1,066 |
Other accrued expenses and liabilities | 253 | 179 |
Patronage notices payable | 19 | 90 |
Distributions payable | 1,199 | 0 |
Total current liabilities | 3,264 | 1,349 |
Long-term liabilities: | ||
Other liabilities | 4,473 | 5,118 |
Total long-term liabilities | 4,473 | 5,118 |
Total liabilities | 7,737 | 6,467 |
Commitments and contingencies | ||
Capital shares and equities: | ||
Members' capital, 735,385 Class A units and 755,385 Class B units authorized, issued and outstanding | 221,195 | 211,770 |
Total capital shares and equities | 221,195 | 211,770 |
Total liabilities and capital shares and equities | $ 228,932 | $ 218,237 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2016 | Dec. 26, 2015 |
Class A Units [Member] | ||
Members' capital, units authorized | 735,385 | 735,385 |
Members' capital, units issued | 735,385 | 735,385 |
Members' capital, units outstanding | 735,385 | 735,385 |
Class B Units [Member] | ||
Members' capital, units authorized | 755,385 | 755,385 |
Members' capital, units issued | 755,385 | 755,385 |
Members' capital, units outstanding | 755,385 | 755,385 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Net sales | $ 0 | $ 0 | $ 0 |
Costs and expenses: | |||
Cost of sales | 0 | 0 | 0 |
Selling, general, and administrative expenses | 3,621 | 2,397 | 3,116 |
Depreciation and amortization | 13 | 7 | 2 |
Total costs and expenses | 3,634 | 2,404 | 3,118 |
Operating loss | (3,634) | (2,404) | (3,118) |
Other income (expense): | |||
Interest income | 48 | 47 | 47 |
Interest expense | (13) | (13) | (30) |
Equity interest in net income (loss) of National Beef Packing Company, LLC | 49,267 | (18,949) | (6,140) |
Other, net | 700 | 3 | 202 |
Total other expense | 50,002 | (18,912) | (5,921) |
Income (loss) before taxes | 46,368 | (21,316) | (9,039) |
Income tax expense | 0 | 0 | 0 |
Net income (loss) | $ 46,368 | $ (21,316) | $ (9,039) |
Class A Units [Member] | |||
Income (loss) per unit: | |||
Basic | $ 6.31 | $ (2.90) | $ (1.23) |
Diluted | $ 6.31 | $ (2.90) | $ (1.23) |
Outstanding weighted-average Class A and Class B units: | |||
Basic | 735,385 | 735,385 | 735,385 |
Diluted | 735,385 | 735,385 | 735,385 |
Class B Units [Member] | |||
Income (loss) per unit: | |||
Basic | $ 55.24 | $ (25.40) | $ (10.77) |
Diluted | $ 55.24 | $ (25.40) | $ (10.77) |
Outstanding weighted-average Class A and Class B units: | |||
Basic | 755,385 | 755,385 | 755,385 |
Diluted | 755,385 | 755,385 | 755,385 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Income Statement [Abstract] | |||
Net income (loss) | $ 46,368 | $ (21,316) | $ (9,039) |
Other comprehensive income (expense): | 0 | 0 | 0 |
Comprehensive loss | $ 46,368 | $ (21,316) | $ (9,039) |
Consolidated Statements of Capi
Consolidated Statements of Capital Shares and Equities - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Mar. 28, 2015 | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Members' Capital | |||||||
Begning Balance | $ 211,770 | $ 233,086 | $ 211,770 | $ 233,086 | $ 244,212 | ||
Allocation of net income (loss) for the year ended | 46,368 | (21,316) | (9,039) | ||||
Tax year distribution | (36,943) | (2,087) | |||||
Ending Balance | $ 221,195 | $ 211,770 | 221,195 | 211,770 | 233,086 | ||
Allocation of net income (loss) for the year ended | $ 19,466 | $ 2,733 | $ (8,363) | $ (5,851) | $ 46,368 | $ (21,316) | $ (9,039) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 46,368 | $ (21,316) | $ (9,039) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 13 | 7 | 2 |
Equity in net (income) loss of National Beef Packing Company, LLC | (49,267) | 18,949 | 6,140 |
Distributions from National Beef Packing Company, LLC | 10,923 | 0 | 0 |
Changes in assets and liabilities (net of acquisition): | |||
Due from affiliates | 89 | (55) | 588 |
Other receivables | 0 | 0 | 3 |
Other assets | 32 | 57 | 447 |
Accounts payable | 52 | (20) | 9 |
Due to affiliates | 37 | (17) | 9 |
Accrued compensation and benefits | (21) | (968) | (3,073) |
Other accrued expenses and liabilities | 74 | 60 | 14 |
Net cash provided by (used in) operating activities | 8,300 | (3,303) | (4,900) |
Cash flows from investing activities: | |||
Capital expenditures, including interest capitalized | 0 | (51) | 0 |
Proceeds from sale of majority interest in National Beef Packing Co., LLC, net | 0 | 0 | 36,943 |
Distribution from National Beef Packing Company, LLC | 27,525 | 0 | 1,979 |
Additional minority interest acquired in National Beef Packing Company, LLC | 0 | (3,768) | 0 |
Net cash provided by (used in) investing activities | 27,525 | (3,819) | 38,922 |
Cash flows from financing activities: | |||
Change in overdraft balances | 1,128 | (2) | (221) |
Prior year excess distribution | 0 | 0 | 818 |
Partnership distributions and redemptions | (36,943) | 0 | (2,087) |
Net cash used in financing activities | (35,815) | (2) | (1,490) |
Net increase (decrease) in cash | 10 | (7,124) | 32,532 |
Cash and cash equivalents at beginning of the period | 85,220 | 92,344 | 59,812 |
Cash and cash equivalents at end of the period | 85,230 | 85,220 | 92,344 |
Supplemental cash disclosures: | |||
Cash paid during the period for interest | 13 | 13 | 40 |
Cash paid during the period for taxes. net | $ 0 | $ 0 | $ 0 |
1. Description of Business
1. Description of Business | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Description of Business | U.S. Premium Beef (USPB or the Company) was formed as a closed marketing cooperative on July 1, 1996. Its mission is to increase the quality of beef and long-term profitability of cattle producers by creating a fully integrated producer-owned beef processing system that is a global supplier of high quality, value-added beef products responsive to consumer desires. USPB operates an integrated cattle processing and beef marketing enterprise where consumer and processor demands and requirements are implemented through changes in genetics, feeding, and management. USPBs unitholders benefit from its supplier alliance with National Beef Packing Company, LLC (NBP) through (i) premiums received in excess of cash market prices for higher quality cattle, (ii) allocations of profits and potential distributions, (iii) potential unit price appreciation, and (iv) information that permits unitholders to make informed production decisions. Effective August 29, 2004, the cooperative restructured into a limited liability company (LLC) under Delaware law (Conversion). The business of USPB, the cooperative, is being continued in the LLC form of business organization. As USPB filed a registration statement with the Securities and Exchange Commission in connection with its 2004 Conversion from the cooperative form of business organization to an LLC structure, USPB is subject to the informational requirements of the Securities Exchange Act of 1934 (Exchange Act), although USPB is not required to be registered under the Exchange Act. Accordingly, USPB files periodic reports and other information with the Securities and Exchange Commission (SEC). Such reports, proxy statements and other information may be obtained by visiting the Public Reference Room of the SEC at 100 F Street, N.E., Washington, D.C. 20549 or by calling the SEC at 1-800-SEC-0330. In addition, the SEC maintains an Internet site (www.sec.gov) that contains reports and information statements and other information regarding USPB and other issuers that file electronically. On December 5, 2011, USPB entered into a Membership Interest Purchase Agreement with Leucadia National Corporation (Leucadia). The Purchase Agreement provided for Leucadia to purchase 56.2415% of the membership interests in NBP (National Interests) from the Company for approximately $646.8 million (Leucadia Transaction), which closed on December 30, 2011. Following the close, USPB owned 15.0729% of NBPs membership interests. As a result of the sale to Leucadia, USPBs investment in NBP will be accounted for using the equity method of accounting as the Company has the ability to exercise significant influence, but does not have financial or operational control. Since USPB no longer has financial or operational control, NBPs financial information will no longer be consolidated with USPBs. NBPs financial statements and footnotes will instead be attached as an exhibit to USPBs 10-K. NBP is one of the largest beef processing companies in the U.S., accounting for approximately 12.5% of the fed cattle slaughter market. NBP processes and markets fresh and chilled boxed beef, ground beef, beef by-products, consumer ready beef and pork, and wet blue leather for domestic and international markets. Based in Kansas City, Missouri, NBP had approximately 8,140 employees at December 31, 2016 and generated total revenues of $7.0 billion in 2016. The largest share of NBPs revenue, about 91%, is generated from the sale of boxed beef products. NBP also generates revenues through value-added production with its consumer-ready products. In addition, NBP operates one of the largest wet blue tanning facilities in the world (wet blue tanning refers to the first step in processing raw and brine-cured hides into tanned leather), selling processed hides to tanners that produce finished leather for the automotive, luxury goods, apparel and furniture industries. Other streams of revenue include sales through its subsidiary, Kansas City Steak Company, LLC, which sells portioned beef and other products to customers in the food service and retail channels, as well as direct to consumers through internet, direct mail and direct response television, and service revenues generated by National Carriers, Inc., a wholly owned transportation and logistics company that is one of the largest refrigerated and livestock carrier operations in the U.S. and transports products for NBP and a variety of other customers. NBPs profitability typically fluctuates seasonally as well as cyclically, with relatively higher margins in the spring and summer months and during times of ample cattle availability. On December 30, 2011, USPB entered into a new Cattle Purchase and Sale Agreement with NBP. Per the terms and conditions of the Agreement, NBP is required to purchase through USPB from its owners and associates, and USPB is required to sell and deliver from its unitholders and associates to NBP, a base amount of 735,385 (subject to adjustment) head of cattle per year. In fiscal years 2016, 2015 and 2014, USPB and NBP agreed to increase the number of cattle that USPBs unitholders and associates could deliver during USPBs delivery year by up to 10%. During fiscal years 2016, 2015, and 2014, USPBs owners and associates provided approximately 27%, 28%, and 23%, respectively, of NBPs total cattle requirements. The purchase price for the cattle is determined by pricing grids, which, at all times, are required to be no less favorable than any other pricing grid being utilized by NBP and the pricing grid shall be competitive with NBPs major competitors for the purchase of cattle. NBP believes the pricing grids are based on terms that could be obtained from an unaffiliated party. The cattle supply agreement extends through December 31, 2017, with automatic one year extensions on each December 30, unless either party provides a notice not to extend sixty days prior to the annual anniversary date. NBP also purchased additional cattle from certain USPB unitholders and associates outside of the cattle supply agreement. USPB sources all of its cattle requirements from its unitholders and associates. Unitholders enter into Uniform Cattle Delivery and Marketing Agreements and are obligated to deliver a designated number of cattle to USPB during the delivery year. The agreements carry a term of five years and have an evergreen renewal provision. Both agreements provide for minimum quality standards, delivery variances, and termination provisions, as defined. |
2. Basis of Presentation and Ac
2. Basis of Presentation and Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Accounting Policies | Basis of Presentation and Consolidation USPB’s investment in NBP is accounted for using the equity method of accounting as the Company has the ability to exercise significant influence, but does not have financial or operational control. Fiscal Year The Company’s fiscal year ends on the last Saturday in December. The Company files annual reports for each 52 week or 53 week period ended on the last Saturday in December. Use of Estimates The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, using management’s best estimates and judgments where appropriate. These estimates and judgments affect the reported amounts of assets and liabilities and disclosure of the contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ materially from these estimates and judgments. 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 December 31, 2016 and December 26, 2015, the Company had cash and cash equivalents of $85.2 million and $85.2 million, respectively. Investment in National Beef Packing Company, LLC USPB’s 15.0729% investment in NBP accounted for using the equity method of accounting as the Company has the ability to exercise significant influence, but does not have financial or operational control. In December 2015, USPB contributed $3.8 million of additional capital to NBP to purchase 33.97 NBP units and maintain its 15.0729% ownership percentage. For fiscal years 2016 and 2015, USPB conducted an evaluation to determine if its investment in NBP was impaired as of the end of the fiscal year in accordance with ASC 323 Investments Equity Method and Joint Ventures. The evaluation included both quantitative and qualitative factors. The quantitative approach computed the fair value of the investment using market based and discounted cash flow valuation approaches, and resulted in a fair value that exceeded the carrying value. As a result of the analysis, USPB concluded that the carrying value of its investment in NBP was not impaired as of December 31, 2016 and December 26, 2015. Property, Plant, and Equipment Property, plant, and equipment are recorded at cost. Property, plant, and equipment are depreciated principally on a straight-line basis over the estimated useful life (based upon original acquisition date) of the individual asset by major asset class as follows: Buildings and improvements 15 to 25 years Machinery and equipment 2 to 15 years Furniture and fixtures 3 to 5 years Trailers and automotive equipment 2 to 4 years Upon disposition of these assets, any resulting gain or loss is included in other, net. Major repairs and maintenance costs that extend the useful life of the related assets are capitalized. Normal repairs and maintenance costs are charged to operations. A summary of cost and accumulated depreciation for property, plant, and equipment as of December 31, 2016 and December 26, 2015 follows (thousands of dollars): December 31, December 26, 2016 2015 Machinery and equipment $ 24 $ 24 Furniture and fixtures 140 140 Trailers and automotive equipment 59 59 Total property, plant, and equipment, at cost 223 223 Accumulated depreciation 188 175 Property, plant, and equipment, net $ 35 $ 48 Depreciation expense was immaterial for fiscal years ended December 31, 2016 and December 26, 2015. Overdraft Balances USPB utilizes a controlled disbursement account to fund cash distribution checks presented for payment by the holder. Checks issued pending clearance that result in overdraft balances for accounting purposes are included in patronage notices payable and distributions payable and the change in the related balances are reflected in financing activities on the consolidated statement of cash flows. Overdraft balances totaled $1.2 million and $0.1 million as of December 31, 2016 and December 26, 2015, respectively. Income Taxes Effective August 29, 2004, the Company converted to an LLC, and under this structure, taxes are not provided at the Company level because the results of operations are included in the taxable income of the individual members. Selling, General, and Administrative Selling expenses consist primarily of salaries, bonuses, phantom unit option expense, trade promotions, advertising, commissions and other marketing costs. General and administrative costs consist primarily of general management, insurance and professional expenses. Noncompetition Payments The former CEO’s employment agreement provided for him to receive noncompetition payments in connection with the Leucadia Transaction. During fiscal years 2016 and 2015, the former CEO was paid $852,948 and $849,911, respectively, in noncompetition payments. He will continue to receive noncompetition payments of approximately $850,000 per year during calendar years 2017 through 2021. The current CEO’s employment agreement provides for him to receive noncompetition payments for a twelve month period following his termination of employment with USPB. As of December 31, 2016 and December 26, 2015, the Company had accrued $4.1 million and $4.7 million, respectively, for the noncompetition agreements. Earnings Per Unit Under the LLC structure, earnings of the Company are to be distributed to unitholders based on their proportionate share of underlying equity, and, as a result, earnings per unit (EPU) has been presented in the accompanying Consolidated Statement of Operations and in the table that follows. Basic EPU excludes dilution and is computed by first allocating 10% of net income or loss attributable to USPB to Class A units and the remaining 90% is allocated to Class B units. Net income or loss allocated to the Class A and Class B units is then divided by the weighted-average number of Class A and Class B units outstanding for the period to determine the basic EPU for each respective class of unit. Diluted EPU reflects the potential dilution that could occur if the purchase rights or appreciation right provided for in the former CEO’s employment agreement were exercised. In April 2014, the former CEO exercised his right to receive unit appreciation rights on his 20,000 Class A phantom units. There are no potentially dilutive Class A or Class B units outstanding. Income (Loss) Per Unit Calculation 53 weeks ended 52 weeks ended (thousands of dollars, except unit and per unit data) December 31, 2016 December 26, 2015 December 27, 2014 Basic income (loss) per unit: Income (loss) attributable to USPB available to unitholders (numerator) Class A $ 4,637 $ (2,132 ) $ (904 ) Class B $ 41,731 $ (19,184 ) $ (8,135 ) Weighted average outstanding units (denominator) Class A 735,385 735,385 735,385 Class B 755,385 755,385 755,385 Per unit amount Class A $ 6.31 $ (2.90 ) $ (1.23 ) Class B $ 55.24 $ (25.40 ) $ (10.77 ) Diluted income (loss) per unit: Income (loss) attributable to USPB available to unitholders (numerator) Class A $ 4,637 $ (2,132 ) $ (904 ) Class B $ 41,731 $ (19,184 ) $ (8,135 ) Weighted average outstanding Class A units 735,385 735,385 735,385 Effect of dilutive securities - Class A unit options - - - Units (denominator) 735,385 735,385 735,385 Weighted average outstanding Class B units 755,385 755,385 755,385 Effect of dilutive securities - Class B unit options - - - Units (denominator) 755,385 755,385 755,385 Per unit amount Class A $ 6.31 $ (2.90 ) $ (1.23 ) Class B $ 55.24 $ (25.40 ) $ (10.77 ) |
3. Long-Term Debt and Loan Agre
3. Long-Term Debt and Loan Agreements | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Loan Agreements | (a) Master Loan Agreement On May 29, 2014, USPB and CoBank entered into a Revolving Term Loan Supplement to the Master Loan Agreement dated July 26, 2011. The new Revolving Term Loan Supplement provides for a $5 million revolving credit commitment, a reduction of $10 million from the prior commitment. The new commitment carries a term of three years, maturing on June 30, 2017. The Pledge Agreement provides CoBank with a first-priority security interest in USPB’s membership interests in, and distributions from, NBP. All of the $5 million revolving credit commitment was available as of December 31, 2016. Borrowings under the revolving credit commitment bear interest at the base rate or LIBOR rate plus applicable margin. On December 30, 2011, in connection with the closing of the transaction with Leucadia, the Company and CoBank entered into the Consent and First Amendment to Pledge Agreement and Security Agreement, by which CoBank agreed to (i) consent to the Membership Interest Sale and the PA Distribution, (ii) release its security interest in, and liens on, the Membership Interests being sold pursuant to the Membership Interest Sale, (iii) consent to the NBP Pledge and (iv) consent to the amendments and restatements of the NBP Operating Agreement and the PA Newco Operating Agreement. The NBP Pledge grants NBP a perfected security interest in and to USPB’s membership interests in, and distributions from, NBP, subject only to the prior first priority security interest held by CoBank. The Company was in compliance with all of the Master Loan Agreement debt covenants as of December 31, 2016. (b) Capital and Operating Leases USPB leases its office space in Kansas City, Missouri and Dodge City Kansas. Rent expense associated with operating leases was $0.1 million for fiscal years 2016, 2015, and 2014. USPB expects that it will renew lease agreements or enter into new leases as the existing leases expire. |
4. Employee Options and Benefit
4. Employee Options and Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Options and Benefit Plans | The cooperative established a phantom stock option plan for the then CEO, Mr. Hunt, which provided for the issuance of 20,000 phantom stock options with an exercise price of $55 per share, all of which had been issued and were exercisable upon election. In connection with the conversion, this phantom stock option plan was converted into a phantom unit plan in a similar fashion as the conversion of cooperative shares to LLC units. The 20,000 phantom stock options converted into 20,000 phantom Class A units and 20,000 phantom Class B units with an exercise price of $55 per unit and $0 per unit, respectively. In August 2009, Mr. Hunt exercised 20,000 Class B units at an exercise price of $0 per unit. In April 2014, Mr. Hunt exercised his right to receive an appreciation payment for his 20,000 Class A phantom units, which had an exercise price of $55 per unit. The Company recognized compensation expense for Mr. Hunt’s Class A phantom units for the difference between the fair market value for the Class A units and the $55 exercise price. For Mr. Hunt’s phantom plan, an increase in compensation expense of $0.0 million was recognized in fiscal years 2016, 2015, and 2014. In September 2010, USPB’s Board of Directors approved a management phantom unit plan. The phantom unit plan provides for the award of unit appreciation rights to management employees of USPB. USPB’s CEO administers the phantom unit plan and awards “Phantom Units” (Class A and Class B Units) to employees in amounts determined by the CEO, subject to the total Phantom Unit amount approved by the Board of Directors of USPB. A total of 5,000 Class A phantom units and 5,000 Class B phantom units were awarded to management employees, with a strike price of $118 and $157, respectively. The closing of the Leucadia Transaction resulted in management employees receiving a payment under the management phantom unit plan. As a result of that payment, the strike price for both the Class A phantom units and Class B phantom units was satisfied and is now $0. The phantom units became fully vested in August 2015. For the management phantom plan, compensation expense of $0.2 million, $0.0 million, and $0.0 million was recognized in fiscal years 2016, 2015, and 2014, respectively. As a result of the retirement of one of USPB’s employees on December 31, 2014, 50 Class A phantom units and 50 Class B phantom units were forfeited as they were not vested. One third of the retiring employee’s vested phantom units will be exercised and the appreciation rights paid in three tranches (retirement, and first and second anniversary of retirement). At the end of fiscal year 2016, 4,817 Class A phantom units and 4,817 Class B phantom units remain outstanding. On November 16, 2012, USPB’s Board of Directors approved the issuance of an additional 1,500 Class A phantom units, with a strike price of $66.04 and 1,500 Class B phantom units, with a strike price of $73.70, to certain members of management, to be effective on January 28, 2013. These phantom units will vest over a five year period. Compensation expense of $0.0 million, $0.0 million and $0.0 million was recognized in fiscal years 2016, 2015, and 2014, respectively. The Company maintains a tax-qualified employee savings and retirement plan (401(k) Plan) covering the Company’s non-union employees. Pursuant to the 401(k) Plan, eligible employees may elect to reduce their current compensation by up to the lesser of 75% of their annual compensation or the statutorily prescribed annual limit and have the amount of such reduction contributed to the 401(k) Plan. The 401(k) Plan provides for additional matching contributions by the Company, based on specific terms contained in the 401(k) Plan. The trustee of the 401(k) Plan, at the direction of each participant, invests the assets of the 401(k) Plan in designated investment options. The 401(k) Plan is intended to qualify under Section 401 of the Internal Revenue Code. Expenses related to the 401(k) Plan totaled approximately $0.0 million, $0.0 million, and $0.1 million for fiscal years 2016, 2015, and 2014, respectively. |
5. Other Income
5. Other Income | 12 Months Ended |
Dec. 31, 2016 | |
Other income (expense): | |
Other Income | Other non-operating income, net was $0.7 million, $0.0 million, and $0.2 million for fiscal years 2016, 2015, and 2014, respectively. Other non-operating income primarily includes income related to lease income on additional delivery rights made available by the Company. |
6. Income Taxes
6. Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | USPB is structured as an LLC and is taxed as a partnership for federal income tax purposes. As a result, its taxable income/loss are passed through to the unitholders at the end of each tax year. Certain states assess an entity level tax, which is paid by USPB. Such taxes are generally immaterial, and the current provision in tax years 2016, 2015, and 2014 was $0.0 million. |
7. Related Party Transactions
7. Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | All of the Company’s directors hold units of the Company. By virtue of their ownership of the units, each of these individuals is obligated to deliver cattle to the Company. The amount and terms of the payments received by these individuals (or the entities they represent) for the delivery of cattle are made on exactly the same basis as those received by other unitholders of the Company for the delivery of their cattle. USPB facilitates the delivery of cattle owned by its unitholders and associates to NBP. During fiscal years 2016, 2015, and 2014, USPB’s owners and associates provided approximately 27%, 28%, and 23%, respectively, of NBP’s total cattle requirements. The purchase price for the cattle is determined by NBP’s pricing grid, which, under the terms of the agreement with USPB, must be competitive with the pricing grids of NBP’s competitors and may not be less favorable than pricing grids offered to other suppliers. At December 31, 2016 and December 26, 2015, the Company had receivables from unitholders and associates in the amount of $0.0 million and $0.1 million, respectively. At December 31, 2016 and December 26, 2015, the Company had payables to unitholders and associates in the amount of $1.3 million and $0.1 million, respectively. |
8. Fair Value Measurements
8. Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | The Company determines fair value utilizing a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The fair value hierarchy gives the highest priority to quoted market prices (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of inputs used to measure fair value are as follows: · Level 1 – quoted prices in active markets for identical assets or liabilities accessible by the reporting entity. · Level 2 – observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. · Level 3 – unobservable inputs for an asset or liability. Unobservable inputs should only be used to the extent observable inputs are not available. As December 31, 2016 and December 26, 2015, the Company did not carry any assets or liabilities on its consolidated balance sheet using the three-level fair value hierarchy |
9 Capital Shares and Equities
9 Capital Shares and Equities | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Capital Shares and Equities | LLC Structure Class A Units Class B Units |
10. Legal Proceedings
10. Legal Proceedings | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | As of December 31, 2016, USPB was not a party to any lawsuit or claim arising out of the operation of its business. |
11. Business Segments
11. Business Segments | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Business Segments | ASC 820, Disclosures about Segments of an Enterprise and Related Information |
12. Quarterly Results (Unaudite
12. Quarterly Results (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (Unaudited) | Selected quarterly financial data for fiscal years 2016 and 2015 are set forth below (dollars in thousands, except per unit data): Net Income (Loss) Operating Attributable Basic Earnings (Loss) Per Diluted Earnings (Loss) Per Net Sales Loss to USPB Class A Unit Class B Unit Class A Unit Class B Unit 2016 quarterly results: March 26, 2016 $ - $ (754 ) $ 2,733 $ 0.37 $ 3.26 $ 0.37 $ 3.26 June 25, 2016 - (808 ) 8,599 $ 1.17 $ 10.25 $ 1.17 $ 10.25 September 24, 2016 - (729 ) 15,570 $ 2.12 $ 18.55 $ 2.12 $ 18.55 December 31, 2016 - (1,343 ) 19,466 $ 2.65 $ 23.19 $ 2.65 $ 23.19 $ - $ (3,634 ) $ 46,368 2015 quarterly results: March 28, 2015 $ - $ (807 ) $ (5,851 ) $ (0.80 ) $ (6.97 ) $ (0.80 ) $ (6.97 ) June 27, 2015 - (381 ) (1,824 ) $ (0.25 ) $ (2.17 ) $ (0.25 ) $ (2.17 ) September 26, 2015 - (432 ) (5,278 ) $ (0.72 ) $ (6.29 ) $ (0.72 ) $ (6.29 ) December 26, 2015 - (784 ) (8,363 ) $ (1.13 ) $ (9.97 ) $ (1.13 ) $ (9.97 ) $ - $ (2,404 ) $ (21,316 ) |
13. Subsequent Events
13. Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | On February 28, 2017, USPB made a $25.9 million cash distribution to its members. |
2. Basis of Presentation and 21
2. Basis of Presentation and Accounting Policies (policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation USPB’s investment in NBP is accounted for using the equity method of accounting as the Company has the ability to exercise significant influence, but does not have financial or operational control. Fiscal Year The Company’s fiscal year ends on the last Saturday in December. The Company files annual reports for each 52 week or 53 week period ended on the last Saturday in December. |
Use of Estimates | Use of Estimates The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, using management’s best estimates and judgments where appropriate. These estimates and judgments affect the reported amounts of assets and liabilities and disclosure of the contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ materially from these estimates and judgments. |
Cash and Cash Equivalents | 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 December 31, 2016 and December 26, 2015, the Company had cash and cash equivalents of $85.2 million and $85.2 million, respectively. |
Investment in National Beef Packing Company, LLC | Investment in National Beef Packing Company, LLC USPB’s 15.0729% investment in NBP accounted for using the equity method of accounting as the Company has the ability to exercise significant influence, but does not have financial or operational control. In December 2015, USPB contributed $3.8 million of additional capital to NBP to purchase 33.97 NBP units and maintain its 15.0729% ownership percentage. For fiscal years 2016 and 2015, USPB conducted an evaluation to determine if its investment in NBP was impaired as of the end of the fiscal year in accordance with ASC 323 Investments Equity Method and Joint Ventures. The evaluation included both quantitative and qualitative factors. The quantitative approach computed the fair value of the investment using market based and discounted cash flow valuation approaches, and resulted in a fair value that exceeded the carrying value. As a result of the analysis, USPB concluded that the carrying value of its investment in NBP was not impaired as of December 31, 2016 and December 26, 2015. |
Property, Plant and Equipment | Property, Plant, and Equipment Property, plant, and equipment are recorded at cost. Property, plant, and equipment are depreciated principally on a straight-line basis over the estimated useful life (based upon original acquisition date) of the individual asset by major asset class as follows: Buildings and improvements 15 to 25 years Machinery and equipment 2 to 15 years Furniture and fixtures 3 to 5 years Trailers and automotive equipment 2 to 4 years Upon disposition of these assets, any resulting gain or loss is included in other, net. Major repairs and maintenance costs that extend the useful life of the related assets are capitalized. Normal repairs and maintenance costs are charged to operations. A summary of cost and accumulated depreciation for property, plant, and equipment as of December 31, 2016 and December 26, 2015 follows (thousands of dollars): December 31, December 26, 2016 2015 Machinery and equipment $ 24 $ 24 Furniture and fixtures 140 140 Trailers and automotive equipment 59 59 Total property, plant, and equipment, at cost 223 223 Accumulated depreciation 188 175 Property, plant, and equipment, net $ 35 $ 48 Depreciation expense was immaterial for fiscal years ended December 31, 2016 and December 26, 2015. |
Overdraft Balances | Overdraft Balances USPB utilizes a controlled disbursement account to fund cash distribution checks presented for payment by the holder. Checks issued pending clearance that result in overdraft balances for accounting purposes are included in patronage notices payable and distributions payable and the change in the related balances are reflected in financing activities on the consolidated statement of cash flows. Overdraft balances totaled $1.2 million and $0.1 million as of December 31, 2016 and December 26, 2015, respectively. |
Income Taxes | Income Taxes Effective August 29, 2004, the Company converted to an LLC, and under this structure, taxes are not provided at the Company level because the results of operations are included in the taxable income of the individual members. |
Selling, General and Administrative | Selling, General, and Administrative Selling expenses consist primarily of salaries, bonuses, phantom unit option expense, trade promotions, advertising, commissions and other marketing costs. General and administrative costs consist primarily of general management, insurance and professional expenses. |
Noncompetition Payments | Noncompetition Payments The former CEO’s employment agreement provided for him to receive noncompetition payments in connection with the Leucadia Transaction. During fiscal years 2016 and 2015, the former CEO was paid $852,948 and $849,911, respectively, in noncompetition payments. He will continue to receive noncompetition payments of approximately $850,000 per year during calendar years 2017 through 2021. The current CEO’s employment agreement provides for him to receive noncompetition payments for a twelve month period following his termination of employment with USPB. As of December 31, 2016 and December 26, 2015, the Company had accrued $4.1 million and $4.7 million, respectively, for the noncompetition agreements. |
Earnings Per Unit | Earnings Per Unit Under the LLC structure, earnings of the Company are to be distributed to unitholders based on their proportionate share of underlying equity, and, as a result, earnings per unit (EPU) has been presented in the accompanying Consolidated Statement of Operations and in the table that follows. Basic EPU excludes dilution and is computed by first allocating 10% of net income or loss attributable to USPB to Class A units and the remaining 90% is allocated to Class B units. Net income or loss allocated to the Class A and Class B units is then divided by the weighted-average number of Class A and Class B units outstanding for the period to determine the basic EPU for each respective class of unit. Diluted EPU reflects the potential dilution that could occur if the purchase rights or appreciation right provided for in the former CEO’s employment agreement were exercised. In April 2014, the former CEO exercised his right to receive unit appreciation rights on his 20,000 Class A phantom units. There are no potentially dilutive Class A or Class B units outstanding. Income (Loss) Per Unit Calculation 53 weeks ended 52 weeks ended (thousands of dollars, except unit and per unit data) December 31, 2016 December 26, 2015 December 27, 2014 Basic income (loss) per unit: Income (loss) attributable to USPB available to unitholders (numerator) Class A $ 4,637 $ (2,132 ) $ (904 ) Class B $ 41,731 $ (19,184 ) $ (8,135 ) Weighted average outstanding units (denominator) Class A 735,385 735,385 735,385 Class B 755,385 755,385 755,385 Per unit amount Class A $ 6.31 $ (2.90 ) $ (1.23 ) Class B $ 55.24 $ (25.40 ) $ (10.77 ) Diluted income (loss) per unit: Income (loss) attributable to USPB available to unitholders (numerator) Class A $ 4,637 $ (2,132 ) $ (904 ) Class B $ 41,731 $ (19,184 ) $ (8,135 ) Weighted average outstanding Class A units 735,385 735,385 735,385 Effect of dilutive securities - Class A unit options - - - Units (denominator) 735,385 735,385 735,385 Weighted average outstanding Class B units 755,385 755,385 755,385 Effect of dilutive securities - Class B unit options - - - Units (denominator) 755,385 755,385 755,385 Per unit amount Class A $ 6.31 $ (2.90 ) $ (1.23 ) Class B $ 55.24 $ (25.40 ) $ (10.77 ) |
2. Basis of Presentation and 22
2. Basis of Presentation and Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Property Plant And Equipment Estimated Useful Life | Buildings and improvements 15 to 25 years Machinery and equipment 2 to 15 years Furniture and fixtures 3 to 5 years Trailers and automotive equipment 2 to 4 years |
Schedule of cost and accumulated depreciation for property, plant, and equipment | December 31, December 26, 2016 2015 Machinery and equipment $ 24 $ 24 Furniture and fixtures 140 140 Trailers and automotive equipment 59 59 Total property, plant, and equipment, at cost 223 223 Accumulated depreciation 188 175 Property, plant, and equipment, net $ 35 $ 48 |
Schedule (Loss) income Per Unit Calculation | Income (Loss) Per Unit Calculation 53 weeks ended 52 weeks ended (thousands of dollars, except unit and per unit data) December 31, 2016 December 26, 2015 December 27, 2014 Basic income (loss) per unit: Income (loss) attributable to USPB available to unitholders (numerator) Class A $ 4,637 $ (2,132 ) $ (904 ) Class B $ 41,731 $ (19,184 ) $ (8,135 ) Weighted average outstanding units (denominator) Class A 735,385 735,385 735,385 Class B 755,385 755,385 755,385 Per unit amount Class A $ 6.31 $ (2.90 ) $ (1.23 ) Class B $ 55.24 $ (25.40 ) $ (10.77 ) Diluted income (loss) per unit: Income (loss) attributable to USPB available to unitholders (numerator) Class A $ 4,637 $ (2,132 ) $ (904 ) Class B $ 41,731 $ (19,184 ) $ (8,135 ) Weighted average outstanding Class A units 735,385 735,385 735,385 Effect of dilutive securities - Class A unit options - - - Units (denominator) 735,385 735,385 735,385 Weighted average outstanding Class B units 755,385 755,385 755,385 Effect of dilutive securities - Class B unit options - - - Units (denominator) 755,385 755,385 755,385 Per unit amount Class A $ 6.31 $ (2.90 ) $ (1.23 ) Class B $ 55.24 $ (25.40 ) $ (10.77 ) |
12. Quarterly Results (Unaudi23
12. Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of selected quarterly financial data for fiscal years | Net Income (Loss) Operating Attributable Basic Earnings (Loss) Per Diluted Earnings (Loss) Per Net Sales Loss to USPB Class A Unit Class B Unit Class A Unit Class B Unit 2016 quarterly results: March 26, 2016 $ - $ (754 ) $ 2,733 $ 0.37 $ 3.26 $ 0.37 $ 3.26 June 25, 2016 - (808 ) 8,599 $ 1.17 $ 10.25 $ 1.17 $ 10.25 September 24, 2016 - (729 ) 15,570 $ 2.12 $ 18.55 $ 2.12 $ 18.55 December 31, 2016 - (1,343 ) 19,466 $ 2.65 $ 23.19 $ 2.65 $ 23.19 $ - $ (3,634 ) $ 46,368 2015 quarterly results: March 28, 2015 $ - $ (807 ) $ (5,851 ) $ (0.80 ) $ (6.97 ) $ (0.80 ) $ (6.97 ) June 27, 2015 - (381 ) (1,824 ) $ (0.25 ) $ (2.17 ) $ (0.25 ) $ (2.17 ) September 26, 2015 - (432 ) (5,278 ) $ (0.72 ) $ (6.29 ) $ (0.72 ) $ (6.29 ) December 26, 2015 - (784 ) (8,363 ) $ (1.13 ) $ (9.97 ) $ (1.13 ) $ (9.97 ) $ - $ (2,404 ) $ (21,316 ) |
1. Description of Business (Det
1. Description of Business (Details Narrative) | Dec. 31, 2016 |
National Beef Packing Company, LLC [Member] | |
Equity method percentage owned | 15.0729% |
2. Basis of Presentation and 25
2. Basis of Presentation and Accounting Policies (Details - Useful lives) | 12 Months Ended |
Dec. 31, 2016 | |
Buildings and Improvements [Member] | |
Property and equipment useful lives | 15 to 25 years |
Machinery and Equipment [Member] | |
Property and equipment useful lives | 2 to 15 years |
Furniture and Fixtures [Member] | |
Property and equipment useful lives | 3 to 5 years |
Trailers and Automotive Equipment [Member] | |
Property and equipment useful lives | 2 to 4 years |
2. Basis of Presentation and 26
2. Basis of Presentation and Accounting Policies (Details - Property schedule) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 26, 2015 |
Property, plant and equipment, gross | $ 223 | $ 223 |
Accumulated depreciation | 188 | 175 |
Property, plant and equipment, net | 35 | 48 |
Machinery and Equipment [Member] | ||
Property, plant and equipment, gross | 24 | 24 |
Furniture and Fixtures [Member] | ||
Property, plant and equipment, gross | 140 | 140 |
Trailers and Automotive Equipment [Member] | ||
Property, plant and equipment, gross | $ 59 | $ 59 |
2. Basis of Presentation and 27
2. Basis of Presentation and Accounting Policies (Details - Income (Loss) calculation) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Class A Units [Member] | |||||||||||
Basic earnings per unit | |||||||||||
Net income (loss) attributable to USPB available to unitholders (numerator) | $ 4,637 | $ (2,132) | $ (904) | ||||||||
Weighted average outstanding units (denominator) | 735,385 | 735,385 | 735,385 | ||||||||
Per unit amount | $ 2.65 | $ 2.12 | $ 1.17 | $ 0.37 | $ (1.13) | $ (.72) | $ (.25) | $ (0.80) | $ 6.31 | $ (2.90) | $ (1.23) |
Diluted earnings per unit: | |||||||||||
Net income (loss) attributable to USPB available to unitholders (numerator) | $ 4,637 | $ (2,132) | $ (904) | ||||||||
Weighted average outstanding | |||||||||||
Weighted average outstanding units (denominator) | 735,385 | 735,385 | 735,385 | ||||||||
Units (denominator) | 735,385 | 735,385 | 735,385 | ||||||||
Per unit amount | 2.65 | 2.12 | 1.17 | 0.37 | (1.13) | (0.72) | (0.25) | (0.80) | $ 6.31 | $ (2.90) | $ (1.23) |
Class B Units [Member] | |||||||||||
Basic earnings per unit | |||||||||||
Net income (loss) attributable to USPB available to unitholders (numerator) | $ 41,731 | $ (19,184) | $ (8,135) | ||||||||
Weighted average outstanding units (denominator) | 755,385 | 755,385 | 755,385 | ||||||||
Per unit amount | 23.19 | 18.55 | 10.25 | 3.26 | (9.97) | (6.29) | (2.17) | (6.97) | $ 55.24 | $ (25.40) | $ (10.77) |
Diluted earnings per unit: | |||||||||||
Net income (loss) attributable to USPB available to unitholders (numerator) | $ 41,731 | $ (19,184) | $ 8,135 | ||||||||
Weighted average outstanding | |||||||||||
Weighted average outstanding units (denominator) | 755,385 | 755,385 | 755,385 | ||||||||
Units (denominator) | 755,385 | 755,385 | 755,385 | ||||||||
Per unit amount | $ 23.19 | $ 18.55 | $ 10.25 | $ 3.26 | $ (9.97) | $ (6.29) | $ (2.17) | $ (6.97) | $ 55.24 | $ (25.40) | $ (10.77) |
2. Basis of Presentation and 28
2. Basis of Presentation and Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Cash and cash equivalents | $ 85,230,000 | $ 85,220,000 | $ 92,344,000 | $ 59,812,000 |
Overdraft cash balances | 1,200,000 | 100,000 | ||
Payments for noncompetition agreement | 852,948 | 849,911 | ||
Accrued Noncompetition Payments | $ 4,100,000 | 4,700,000 | ||
National Beef Packing Company, LLC [Member] | ||||
Equity method percentage owned | 15.0729% | |||
Payment of capital to equity investment | $ 3,800,000 |
3. Long-Term Debt and Loan Ag29
3. Long-Term Debt and Loan Agreements (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Rent expense | $ 100,000 | $ 100,000 | $ 100,000 |
CoBank [Member] | Revolving Credit Facility [Member] | |||
Credit line maximum borrowing capacity | 5,000,000 | ||
Credit line, remaining borrowing capacity | $ 5,000,000 | ||
Credit line expiration date | Jun. 30, 2017 |
4. Employee Options and Benef30
4. Employee Options and Benefit Plans (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
401K plan expenses | $ 0 | $ 0 | $ 100 |
Class A Phantom Units [Member] | |||
Phantom units outstanding | 4,817 | ||
Class B Phantom Units [Member] | |||
Phantom units outstanding | 4,817 | ||
Class A and Class B Phantom Units [Member] | |||
Share-based compensation expense | $ 0 | 0 | 0 |
Management Phantom Unit Plan [Member] | |||
Share-based compensation expense | 200 | 0 | 0 |
Mr. Hunt [Member] | |||
Share-based compensation expense | $ 0 | $ 0 | $ 0 |
5. Other Income (Details Narrat
5. Other Income (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Other income (expense): | |||
Other non-operating income | $ 700 | $ 3 | $ 202 |
6. Income Taxes (Details Narrat
6. Income Taxes (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense | $ 0 | $ 0 | $ 0 |
7. Related Party Transactions (
7. Related Party Transactions (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Accounts receivable from unitholders | $ 0 | $ 100 | |
Accounts payables to unitholders | $ 1,300 | $ 100 | |
National Beef Packing Company, LLC [Member] | Cattle requirements [Member] | |||
Concentration percentage | 27.00% | 28.00% | 23.00% |
9 Capital Shares and Equities (
9 Capital Shares and Equities (Details Narrative) - shares | Dec. 31, 2016 | Dec. 26, 2015 |
Class A Units [Member] | ||
Units outstanding | 735,385 | 735,385 |
Profit and loss percent allocation | 10.00% | |
Class B Units [Member] | ||
Units outstanding | 755,385 | 755,385 |
Profit and loss percent allocation | 90.00% |
12. Quarterly Results (Unaudi35
12. Quarterly Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Net Sales | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Operating Loss | (1,343) | (729) | (808) | (754) | (784) | (432) | (381) | (807) | (3,634) | (2,404) | (3,118) |
Net Income (Loss) | $ 19,466 | $ 15,570 | $ 8,599 | $ 2,733 | $ (8,363) | $ (5,278) | $ (1,824) | $ (5,851) | $ 46,368 | $ (21,316) | $ (9,039) |
Class A Units [Member] | |||||||||||
Basic Earnings (Loss) Per Unit | $ 2.65 | $ 2.12 | $ 1.17 | $ 0.37 | $ (1.13) | $ (.72) | $ (.25) | $ (0.80) | $ 6.31 | $ (2.90) | $ (1.23) |
Diluted Earnings (Loss) Per Unit | 2.65 | 2.12 | 1.17 | 0.37 | (1.13) | (0.72) | (0.25) | (0.80) | 6.31 | (2.90) | (1.23) |
Class B Units [Member] | |||||||||||
Basic Earnings (Loss) Per Unit | 23.19 | 18.55 | 10.25 | 3.26 | (9.97) | (6.29) | (2.17) | (6.97) | 55.24 | (25.40) | (10.77) |
Diluted Earnings (Loss) Per Unit | $ 23.19 | $ 18.55 | $ 10.25 | $ 3.26 | $ (9.97) | $ (6.29) | $ (2.17) | $ (6.97) | $ 55.24 | $ (25.40) | $ (10.77) |
13. Subsequent Events (Details
13. Subsequent Events (Details Narrative) $ in Thousands | 2 Months Ended |
Feb. 28, 2017USD ($) | |
Subsequent Event [Member] | |
Distributions to members | $ 25,900 |