Investment in National Beef Packing Company, LLC

9 Months Ended

Sep. 24, 2022

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 for the thirteen and thirty-nine week periods ended September 24, 2022 and September 25, 2021 (thousands of dollars):

Investment at December 25, 2021	$	213,290
Equity in net income for thirteen-week period		62,606
Distributions		(52,755	)
Investment at March 26, 2022	$	223,141
Equity in net income for thirteen-week period		52,779
Distributions		(82,907	)
Investment at June 25, 2022	$	193,013
Equity in net income for thirteen-week period		44,509
Distributions		(27,318	)
Investment at September 24, 2022	$	210,204
Investment at December 26, 2020	$	131,494
Equity in net income for thirteen-week period		36,559
Distributions		(21,402	)
Investment at March 27, 2021	$	146,651
Equity in net income for thirteen-week period		103,198
Distributions		(61,157	)
Investment at June 26, 2021	$	188,692
Equity in net income for thirteen-week period		123,490
Distributions		(124,585	)
Investment at September 25, 2021	$	187,597

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.

Below is a summary of the results of operations for NBP for the thirteen and thirty-nine week periods ended September 24, 2022 and September 25, 2021 (thousands of dollars):

	13 weeks ended						39 weeks ended
	September 24, 2022			September 25, 2021			September 24, 2022			September 25, 2021
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Net sales	$	2,846,156		$	3,202,208		$	8,819,780		$	8,466,211
Costs and expenses:
Cost of sales		2,492,127			2,328,716			7,587,149			6,562,610
Selling, general, and administrative expenses		24,408			22,797			69,628			63,714
Depreciation and amortization		30,945			29,148			90,254			84,821
Total costs and expenses		2,547,480			2,380,661			7,747,031			6,711,145
Operating income		298,676			821,547			1,072,749			1,755,066
Other income (expense):
Interest income		23			–			90			99
Interest expense		(1,121	)		(1,563	)		(4,809	)		(6,359	)
Income before taxes		297,578			819,984			1,068,030			1,748,806
Income tax expense		(1,285	)		(698	)		(4,225	)		(2,314	)
Net income	$	296,293		$	819,286		$	1,063,805		$	1,746,492

As of September 24, 2022, USPB’s balance sheet reflected a $1.1 million payable to National Beef for CT and NJ income taxes.