6. Investment in National Beef Packing Company, LLC

6 Months Ended

Jun. 27, 2020

Equity Method Investments and Joint Ventures [Abstract]

Investment in National Beef Packing Company, LLC

(6)   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, but does not have financial or operational control. The table below summarizes the changes to USPB’s investment in NBP (thousands of dollars): 

Beginning Investment at December 28, 2019	$	131,786
Equity in net income for twenty-six week period		115,484
Distributions from National Beef Packing Company, LLC		(7,853	)
Ending Investment at June 27, 2020	$	239,417

     Below is a summary of the results of operations for NBP for the thirteen and twenty-six week periods ended June 27, 2020 and June 29, 2019 (thousands of dollars):

	13 weeks ended						26 weeks ended
	June 27, 2020			June 29, 2019			June 27, 2020			June 29, 2019
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Net sales	$	2,677,697		$	2,113,648		$	4,863,046		$	3,940,720
Costs and expenses:
Cost of sales		1,947,262			1,890,238			3,995,881			3,591,638
Selling, general, and administrative expenses		20,859			22,425			39,233			39,395
Depreciation and amortization		26,795			29,722			53,323			57,617
Total costs and expenses		1,994,916			1,942,385			4,088,437			3,688,650
Operating income		682,781			171,263			774,609			252,070
Other income (expense):
Interest income		56			120			137			238
Interest expense		(2,323	)		(3,587	)		(6,571	)		(6,142	)
Income before taxes		680,514			167,796			768,175			246,166
Income tax expense		(1,250	)		(646	)		(2,004	)		(980	)
Net income	$	679,264		$	167,150		$	766,171		$	245,186
NBP's net income attributable to USPB	$	102,385		$	25,194		$	115,484		$	36,957