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Accounting Policies (Policies)
9 Months Ended
Sep. 30, 2023
Accounting Policies [Abstract]  
Accounting for Investment in NBP

Accounting for Investment in NBP. USPB’s 15.0729% investment in National Beef Packing Company, LLC (NBP) is accounted for using the equity method of accounting because the Company has the ability to exercise significant influence over NBP but does not have financial or operational control.

 

Operating losses, diminished cash flows, economic and industry events, pandemics, such as coronavirus disease (COVID-19), and a variety of other factors may result in a decrease in the value of the investment in NBP. If a decrease in value is deemed other than temporary, the Company would record an impairment charge, which may have an impact on the values of USPB’s Class A and Class B units. NBP’s plants are currently operational and its results of operations are profitable, as reflected in Note 6. As a result, USPB believes the fair value of its investment in NBP exceeds the carrying value.

 

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 September 30, 2023, the Company’s balance sheet reflected cash and cash equivalents of $75.8 million. The cash is invested in the CoBank, ACB (CoBank) overnight investment account and can be withdrawn at any time. Investments are not deposits and are not insured by the Federal Deposit Insurance Corporation or the Farm Credit System Insurance Corporation.

 

Certificates of Deposit

Certificates of Deposit: Certificates of deposit held for investment with original maturities greater than three months and remaining maturities less than one year are classified as current assets. Certificates of deposit with remaining maturities greater than one year are classified as long-term assets. On March 27, 2023, USPB invested $20 million of its available cash balance in a six-month certificate of deposit at CoBank, at a 4.28% interest rate, that matured on September 25, 2023.