| Basis of Presentation and Accounting Policies | NOTE 2. Basis of Presentation
and Accounting Policies Basis of Presentation 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. Fiscal year 2022 was a 53-week year and fiscal years 2023 and 2021 were 52-week years. Use of Estimates The 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 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 30, 2023 and December 31, 2022, the
Company’s balance sheet reflected Cash and cash equivalents of $ 58.5 97.7 Certificates of Deposit 10 4.75 June 13, 2024 10 4.60 June 20, 2024 Other Current Assets Included in Other Current Assets are receivables
from several states, with the largest amounts being due from Connecticut and New Jersey. The taxes are withheld by NBP from its members
distributions. Investment in National Beef
Packing Company, LLC USPB’s 15.0729 The table below summarizes
the changes to USPB’s investment in NBP.
Schedule of changes to USPB’s investment in NBP
December 30, 2023 December 31, 2022
(thousands of dollars)
Beginning Investment Balance $ 179,556 $ 213,290
Equity in net income 41,171 174,670
Distributions (58,130 ) (208,404 )
Ending Investment Balance $ 162,597 $ 179,556 The difference between
USPB’s percentage ownership share of NBP earnings and the recorded amount of Equity in income of National Beef Packing Company,
LLC is attributable to the amortization of a basis difference related to the purchase accounting for NBP’s acquisition of Ohio Beef
in 2019. For fiscal years 2023 and 2022, USPB conducted
an evaluation to determine if its investment in NBP was impaired as of the end of the fiscal year in accordance with Auditing Standards
Codification (ASC) 323 Investments Equity Method and Joint Ventures Beginning on January 1, 2023, and annually
thereafter, NBP’s minority members, including USPB, are eligible to deliver a put notice to NBM US Holdings, Inc., a Delaware corporation
owned by Marfrig Global Foods S.A. (NBM). The put period begins on January 1 and ends on January 31 of each year. During the
put period, a NBP minority member can put to NBM a maximum of one third of the aggregate units owned by such minority member as of February
28, 2019 and a minimum of 20% of the aggregate units owned by the applicable minority member as of February 28, 2019. USPB’s
Board of Directors gave consideration to USPB’s put option in December 2023 and chose to not exercise the put option for the January
2024 put period. 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:
Schedule of property plant and equipment estimated useful life
Machinery and equipment 2 15
Furniture and fixtures 3 5
Trailers and automotive equipment 2 5 Normal repairs and maintenance
costs are charged to Selling, general and administrative expenses, as incurred. A summary of cost and
accumulated depreciation for property, plant, and equipment as of December 30, 2023 and December 31, 2022 follows (thousands of dollars):
Schedule of cost and accumulated depreciation for property, plant, and equipment
December 30, 2023 December 31, 2022
Machinery and equipment $ 30 $ 24
Furniture and fixtures 148 147
Trailers and automotive equipment 96 95
Total property, plant, and equipment, at cost 274 266
Accumulated depreciation 231 212
Property, plant, and equipment, net $ 43 $ 54 Depreciation expense
was less than $ 0.1 Distributions Payable USPB utilizes a controlled
disbursement account to fund cash distribution checks presented for payment by the holder. Checks that have been issued but have not cleared
are reflected on the balance sheet as a reduction in cash. Amounts for checks that have not yet been issued are included in Distributions
payable and the change in the related balances are reflected in financing activities on the statement of cash flows. Distributions payable
were less than $ 0.1 Income Taxes Effective August 29, 2004, the Company
converted to an LLC, and under this structure, taxes are not assessed at the Company level as the results of operations are included in
the taxable income of the individual members. Although income taxes are assessed to
the individual members, USPB is required to withhold state income taxes from the cash distributions it makes to it members. As of December
30, 2023 and December 31, 2022, Other accrued expenses and liabilities on the Company’s balance sheet reflected state taxes payable
of $ 0.3 0.9 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 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 30, 2023 and December 31,
2022, the Company had accrued $ 0.3 0.3 Business Segments USPB is not organized by multiple operating
segments for the purpose of making operating decisions or assessing performance. Accordingly, USPB has one reportable segment. 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 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 to the extent that any outstanding dilutive Class A or Class B units were exercised. There are
no potentially dilutive Class A or Class B units outstanding.
Schedule of income per unit calculation
Income Per Unit Calculation 52 weeks ended 53 weeks ended 52 weeks ended
(thousands of dollars, except unit and per unit data) December 30, 2023 December 31, 2022 December 25, 2021
Basic and diluted earnings per unit:
Income attributable to USPB available to unitholders (numerator)
Class A $ 4,158 $ 16,936 $ 35,950
Class B $ 37,418 $ 152,423 $ 323,547
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 $ 5.65 $ 23.03 $ 48.89
Class B $ 49.54 $ 201.78 $ 428.32 |
