10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 FORM 10-Q

(Mark one)

☒   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 24, 2016
or

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
	THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _________to_________ .

Commission file number 333-115164

U.S. PREMIUM BEEF, LLC
(Exact name of registrant as specified in its charter)

DELAWARE	20-1576986
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

12200 North Ambassador Drive Kansas City, MO 64163 (Address of principal executive offices) Telephone: (866) 877-2525 (Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☑ No☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a small reporting company. See definition of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer ☐ Accelerated Filer ☐ Non-Accelerated Filer ☑ Small Reporting Company ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No  ☑

The registrant’s units are not traded on an exchange or in any public market. As of October 29, 2016, there were 735,385 Class A units and 755,385 Class B units outstanding.

TABLE OF CONTENTS
		FINANCIAL INFORMATION
PART I.			Page No.
	Item 1.	Financial Statements (unaudited).	1
	Item 2.	Management’s Discussion and Analysis of Financial Condition	7
		and Results of Operations.
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	10
	Item 4.	Controls and Procedures.	11
PART II.		OTHER INFORMATION
	Item 1.	Legal Proceedings.	12
	Item 1A.	Risk Factors.	12
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	12
	Item 3.	Defaults Upon Senior Securities.	12
	Item 4.	Mine Safety Disclosures.	12
	Item 5.	Other Information.	12
	Item 6.	Exhibits.	12
		Signatures.	14

Unless the context indicates or otherwise requires, the terms “USPB”, “the Company”, “we”, “our”, and “us” refer to U.S. Premium Beef, LLC. As used in this report, the terms “NBP” and “National Beef” refer to National Beef Packing Company, LLC, a Delaware limited liability company.

ii

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (unaudited).

1

U.S. PREMIUM BEEF, LLC AND SUBSIDIARIES
Consolidated Balance Sheets
(thousands of dollars, except unit information)
Assets	September 24, 2016		December 26, 2015
	(unaudited)
Current assets:
Cash and cash equivalents	$	96,295	$	85,220
Due from affiliates		146		137
Other current assets		11		8
Total current assets		96,452		85,365
Property, plant, and equipment, at cost		223		223
Less accumulated depreciation		185		175
Net property, plant, and equipment		38		48
Investment in National Beef Packing Company, LLC		148,211		132,628
Other assets		145		196
Total assets	$	244,846	$	218,237
Liabilities and Capital Shares and Equities
Current liabilities:
Accounts payable - trade	$	6	$	14
Due to affiliates		47		-
Accrued compensation and benefits		1,220		1,066
Other accrued expenses and liabilities		89		179
Patronage notices payable		19		90
Total current liabilities		1,381		1,349
Long-term liabilities:
Other liabilities		4,792		5,118
Total long-term liabilities		4,792		5,118
Total liabilities		6,173		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		238,673		211,770
Total capital shares and equities		238,673		211,770
Total liabilities and capital shares and equities	$	244,846	$	218,237
See accompanying notes to consolidated financial statements.

2

U.S. PREMIUM BEEF, LLC AND SUBSIDIARIES
Consolidated Statements of Operations
(thousands of dollars, except per unit and per unit data)
	13 weeks ended		13 weeks ended		39 weeks ended		39 weeks ended
	September 24, 2016		September 26, 2015		September 24, 2016		September 26, 2015
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Net sales	$	-	$	-	$	-	$	-
Costs and expenses:
Cost of sales		-		-		-		-
Selling, general, and administrative expenses		726		430		2,281		1,616
Depreciation and amortization		3		2		10		4
Total costs and expenses		729		432		2,291		1,620
Operating loss		(729)		(432)		(2,291)		(1,620)
Other income (expense):
Interest income		11		11		35		34
Interest expense		(3)		(3)		(9)		(9)
Equity interest in net income (loss) of National Beef Packing Company, LLC		16,270		(4,856)		28,800		(11,361)
Other, net		21		2		367		2
Income (loss) before taxes		15,570		(5,278)		26,902		(12,954)
Income tax expense		-		-		-		-
Net income (loss)	$	15,570	$	(5,278)	$	26,902	$	(12,954)
Income (loss) per unit:
Basic
Class A units	$	2.12	$	(0.72)	$	3.66	$	(1.76)
Class B units	$	18.55	$	(6.29)	$	32.05	$	(15.43)
Diluted
Class A units	$	2.12	$	(0.72)	$	3.66	$	(1.76)
Class B units	$	18.55	$	(6.29)	$	32.05	$	(15.43)
Outstanding weighted-average Class A and Class B units:
Basic
Class A units		735,385		735,385		735,385		735,385
Class B units		755,385		755,385		755,385		755,385
Diluted
Class A units		735,385		735,385		735,385		735,385
Class B units		755,385		755,385		755,385		755,385
See accompanying notes to consolidated financial statements.

3

U.S. PREMIUM BEEF, LLC AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(thousands of dollars)
	39 weeks ended		39 weeks ended
	September 24, 2016		September 26, 2015
	(unaudited)		(unaudited)
Cash flows from operating activities:
Net income (loss)	$	26,902	$	(12,954)
Adjustments to reconcile net income (loss) to net cash used in
operating activities:
Depreciation and amortization		10		4
Equity in net (income) loss of National Beef Packing Company, LLC		(28,800)		11,361
Changes in assets and liabilities:
Due from affiliates		(9)		(14)
Other assets		49		50
Accounts payable		(8)		(7)
Due to affiliates		47		2
Accrued compensation and benefits		(172)		(946)
Other accrued expenses and liabilities		(89)		(69)
Net cash used in operating activities		(2,070)		(2,573)
Cash flows from investing activities:
Capital expenditures		-		(22)
Distribution from National Beef Packing Company, LLC		13,216		-
Net cash provided by (used in) investing activities		13,216		(22)
Cash flows from financing activities:
Change in overdraft balances		(71)		-
Net cash used in financing activities		(71)		-
Net increase (decrease) in cash		11,075		(2,595)
Cash and cash equivalents at beginning of the period		85,220		92,344
Cash and cash equivalents at end of the period	$	96,295	$	89,749
See accompanying notes to financial statements.

4

U.S. PREMIUM BEEF, LLC AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(1) Interim Financial StatementsBasis of Presentation

The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP), for interim financial information; therefore, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included using management’s best estimates and judgments where appropriate. These estimates and judgments affect the reported amounts of assets and liabilities and disclosure of 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. For further information, refer to the audited Consolidated Financial Statements and Notes to Consolidated Financial Statements, which are included in the Company’s Annual Report on Form 10-K on file with the Securities and Exchange Commission (SEC), for the fiscal year ended December 26, 2015. The results of operations for the interim periods presented are not necessarily indicative of the results for a full fiscal year.

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.

(2) Members’ Capital

The following table represents a reconciliation of Members’ Capital for the thirty-nine week period ended September 24, 2016 (thousands of dollars).

Balance at December 26, 2015	$	211,770
Net income for the thirty-nine week period ended September 24, 2016		26,902
Balance at September 24, 2016	$	238,673

(3) Income (Loss) Attributable to USPB Per Unit

Under the LLC structure, earnings of the Company are to be allocated to unitholders based on their proportionate share of underlying equity, and, as a result, income attributable to USPB per unit (EPU) has been presented in the accompanying Statements of Operations and in the table that follows.

Basic EPU excludes dilution and is computed by first allocating a portion of net income (loss) attributable to USPB to Class A units and the remainder is allocated to Class B units. For the thirteen week and thirty-nine week periods ended September 24, 2016 and September 26, 2015, net income (loss) was allocated 10% to the Class A’s and 90% to the Class B’s. The net income (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.

5

Income (Loss) Per Unit Calculation
	13 weeks ended		13 weeks ended		39 weeks ended		39 weeks ended
(thousands of dollars, except unit and per unit data)	September 24, 2016		September 26, 2015		September 24, 2016		September 26, 2015
Basic earnings per unit
Net income (loss) attributable to USPB available to
unitholders (numerator)
Class A	$	1,557	$	(527)	$	2,690	$	(1,295)
Class B	$	14,013	$	(4,751)	$	24,212	$	(11,659)
Weighted average outstanding units (denominator)
Class A		735,385		735,385		735,385		735,385
Class B		755,385		755,385		755,385		755,385
Per unit amount
Class A	$	2.12	$	(0.72)	$	3.66	$	(1.76)
Class B	$	18.55	$	(6.29)	$	32.05	$	(15.43)
Diluted earnings per unit:
Net income (loss) attributable to USPB available to
unitholders (numerator)
Class A	$	1,557	$	(527)	$	2,690	$	(1,295)
Class B	$	14,013	$	(4,751)	$	24,212	$	(11,659)
Weighted average outstanding Class A units		735,385		735,385		735,385		735,385
Effect of dilutive securities - Class A unit options		-		-		-		-
Units (denominator)		735,385		735,385		735,385		735,385
Weighted average outstanding Class B units		755,385		755,385		755,385		755,385
Effect of dilutive securities - Class B unit options		-		-		-		-
Units (denominator)		755,385		755,385		755,385		755,385
Per unit amount
Class A	$	2.12	$	(0.72)	$	3.66	$	(1.76)
Class B	$	18.55	$	(6.29)	$	32.05	$	(15.43)

6

(4) Investment in National Beef Packing Company, LLC

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. Below is a summary of the results of operations for NBP for the thirteen and thirty-nine week periods ended September 24, 2016 and September 26, 2015 (thousands of dollars):

	13 weeks ended		13 weeks ended		39 weeks ended		39 weeks ended
	September 24, 2016		September 26, 2015		September 24, 2016		September 26, 2015
Net sales	$	1,746,839	$	1,863,040	$	5,175,592	$	5,709,835
Costs and expenses:
Cost of sales		1,595,672		1,849,023		4,856,046		5,658,679
Selling, general, and administrative expenses		17,035		15,485		51,929		46,882
Depreciation and amortization		23,100		22,528		68,511		66,397
Total costs and expenses		1,635,807		1,887,036		4,976,486		5,771,958
Operating income (loss)		111,032		(23,996)		199,106		(62,123)
Other income (expense):
Interest income		51		3		114		20
Interest expense		(2,965)		(3,902)		(10,728)		(12,619)
Other, net		149		(3,786)		4,040		56
Income (loss) before taxes		108,267		(31,681)		192,532		(74,666)
Income tax expense		(327)		(538)		(1,462)		(710)
Net income (loss)		107,940		(32,219)		191,070		(75,376)
NBP's net income (loss) attributable to USPB	$	16,270	$	(4,856)	$	28,800	$	(11,361)

(5) Subsequent Events

       On October 24, 2016, USPB received an $11.3 million discretionary distribution from NBP.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion should be read in conjunction with our consolidated financial statements and related notes and other financial information appearing elsewhere in this report.

Disclosure Regarding Forward-Looking Statements

This report contains “forward-looking statements,” which are subject to a number of risks and uncertainties, many of which are beyond our control. Forward-looking statements are typically identified by the words “believe,” “expect,” “anticipate,” “intend,” “estimate” and similar expressions. Actual results could differ materially from those contemplated by these forward-looking statements as a result of many factors, including economic conditions generally and in our principal markets, the availability and prices of live cattle and commodities, food safety issues, livestock disease, including the identification of cattle with Bovine Spongiform Encephalopathy, product contamination and recall concerns, competitive practices and consolidation in the cattle production and processing industries and among our customers, actions of domestic or foreign governments, hedging risk, changes in interest rates and foreign currency exchange rates, trade barriers and exchange controls, consumer demand and preferences, the cost of compliance with environmental and health laws, loss of key customers, loss of key employees, labor relations, and consolidation among our customers.

In light of these risks and uncertainties, there can be no assurance that the results and events contemplated by the forward-looking information contained in this report will in fact transpire. Readers are cautioned not to place undue reliance on these forward-looking statements. We do not undertake any obligation to update or revise any forward-looking statements. All subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Please review Part II. Item 1A, Risk Factors, included in this report, for other important factors that could cause actual results to differ materially from those in any such forward-looking statements.

7

Investment in National Beef Packing Company, LLC

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. NBP operates two beef processing facilities, three consumer-ready facilities and a wet blue tanning facility, all located in the U.S. NBP operates one of the largest wet blue tanning facilities in the world that sells processed hides to tanners that produce finished leather for the automotive, luxury goods, apparel and furniture industries. NBP owns Kansas City Steak Company, LLC, which sells portioned beef and other products to customers in retail channels such as the internet, direct mail and direct response television. NBP also owns a refrigerated and livestock transportation and logistics company that provides transportation services for NBP and third parties.

NBP’s profitability is dependent, in large part, on the spread between its cost for live cattle, the primary raw material for its business, and the value received from selling boxed beef and other products, coupled with its overall volume and capacity utilization. NBP operates in a large and liquid commodity market and it does not have much influence over the price it pays for cattle or the selling price it receives for the products it produces. NBP’s 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.

Revenues in the three and nine month 2016 periods decreased 6% and 9%, respectively, in comparison to the same periods in 2015, due to lower average selling prices, partially offset by an increase in the number of cattle processed. Cost of sales declined 14% for both the three and nine month 2016 periods as compared to the same periods in 2015. The decline is primarily due to a decrease in the price of cattle, partially offset by an increase in volume. The combined effects of increased margin per head and an increase in volume led to high profitability in the 2016 periods.

At September 30, 2016, NBP’s credit facility consisted of a term loan and a revolving credit facility of $285.0 million, which matures in October 2018. The revolving credit facility was voluntarily reduced by NBP in the third quarter of 2016 from $375.0 million to $285.0 million. The term loan and the revolving credit facility bear interest at the Base Rate or the LIBOR Rate (as defined in the credit facility), plus a margin ranging from 0.75% to 2.75% depending upon certain financial ratios and the rate selected. At September 30, 2016, the interest rate on the outstanding term loan was 3.27% and the interest rate on the outstanding revolving credit facility was 5.25%. The credit facility contains a minimum tangible net worth covenant; at September 30, 2016, NBP met this covenant. The credit facility is secured by a first priority lien on substantially all of the assets of NBP and its subsidiaries.

Borrowings under the revolving credit facility are available for NBP’s working capital requirements, capital expenditures and other general corporate purposes. Unused capacity under the facility can also be used to issue letters of credit; letters of credit aggregating $12.6 million were outstanding at September 30, 2016. Amounts available under the revolver are subject to a borrowing base calculation primarily comprised of receivable and inventory balances. At September 30, 2016, after deducting outstanding amounts and issued letters of credit, $247.7 million of the unused revolver was available to NBP.

On December 30, 2011, NBP entered into a new Cattle Purchase and Sale Agreement with USPB. Per the terms and conditions of this agreement, NBP is required to purchase through USPB from its owners and associates, and USPB is required to sell and deliver from its owners and associates to NBP, a base amount of 735,385 (subject to adjustment) head of cattle per year with prices based on those published by the U.S. Department of Agriculture, subject to adjustments for cattle performance. NBP obtained approximately 26% and 28% of its cattle requirements under this agreement during the first three quarters of fiscal years 2016 and 2015, respectively.

USPB Results of Operations

Thirteen weeks ended September 24, 2016 compared to thirteen weeks ended September 26, 2015

Net Sales. There were no Net Sales in the thirteen week periods ended September 24, 2016 and September 26, 2015.

8

Cost of Sales. There were no Cost of Sales in the thirteen week periods ended September 24, 2016 and September 26, 2015.

Selling, General and Administrative Expenses. Selling, general and administrative expenses were approximately $0.7 million for the thirteen weeks ended September 24, 2016 compared to approximately $0.4 million for the thirteen weeks ended September 26, 2015, an increase of approximately $0.3 million. The increase was primarily due to higher compensation expense.

Operating Loss. Operating loss was approximately $0.7 million for the thirteen weeks ended September 24, 2016 compared to approximately $0.4 million for the thirteen weeks ended September 26, 2015.

Equity Interest in Net Income (Loss) of National Beef Packing Company, LLC. Equity in NBP net income was $16.3 million for the thirteen weeks ended September 24, 2016 compared to equity in net loss of $4.9 million for the thirteen weeks ended September 26, 2015. The improvement in fiscal year 2016 is primarily due to higher gross margins at NBP. USPB carries its 15.0729% investment in NBP under the equity method of accounting.

Net Income (Loss). Net income for the thirteen-week period ended September 24, 2016 was approximately $15.6 million compared to net loss of approximately $5.3 million for the thirteen-week period ended September 26, 2015.

Thirty-nine weeks ended September 24, 2016 compared to thirty-nine weeks ended September 26, 2015

Net Sales. There were no Net Sales in the thirty-nine week periods ended September 24, 2016 and September 26, 2015.

Cost of Sales. There were no Cost of Sales in the thirty-nine week periods ended September 24, 2016 and September 26, 2015.

Selling, General and Administrative Expenses. Selling, general and administrative expenses were approximately $2.3 million for the thirty-nine weeks ended September 24, 2016 compared to approximately $1.6 million for the thirty-nine weeks ended September 26, 2015. The increase was primarily due to higher compensation expense and higher expense associated with the former CEO’s non-compete agreement.

Operating Loss. Operating loss was approximately $2.3 million for the thirty-nine weeks ended September 24, 2016 compared to approximately $1.6 million for the thirty-nine weeks ended September 26, 2015.

Equity Interest in Net Income (Loss) of National Beef Packing Company, LLC. Equity in NBP net income was $28.8 million for the thirty-nine weeks ended September 24, 2016 compared to equity in net loss of $11.4 million for the thirty-nine weeks ended September 26, 2015. The improvement in fiscal year 2016 is primarily due to higher gross margins at NBP. USPB carries its 15.0729% investment in NBP under the equity method of accounting.

Other, net. Other income was $0.4 million and $0.0 million for the thirty-nine weeks ended September 24, 2016 and September 26, 2015, respectively, an increase of approximately $0.4 million. The increase was primarily due to lease income on Company owned cattle delivery rights.

Net Income (Loss). Net income for the thirty-nine-week period ended September 24, 2016 was approximately $26.9 million compared to net loss of approximately $13.0 million for the thirty-nine-week period ended September 26, 2015.

Liquidity and Capital Resources

As of September 24, 2016, we had net working capital (the excess of current assets over current liabilities) of approximately $95.1 million, which included cash and cash equivalents of $96.3 million. As of December 26, 2015, we had net working capital (the excess of current assets over current liabilities) of approximately $84.0 million, which included cash and cash equivalents of $85.2 million. Our primary source of liquidity for the first three quarters of fiscal year 2016 and fiscal year 2015 was cash and available borrowings under the Master Loan Agreement.

9

As of September 24, 2016, USPB had no long-term debt outstanding. We had a $5.0 million revolving term loan with CoBank all of which was available. USPB was in compliance with all of the financial covenants under its Master Loan Agreement as of September 24, 2016.

USPB believes available borrowings under the Master Loan Agreement and cash will be sufficient to support its working capital and cash flow requirements.

We believe our cash and available borrowings under our Master Loan Agreement will be sufficient to support our cash needs for the foreseeable future. For a review of our obligations that affect liquidity, please see the “Cash Payment Obligations” table in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for fiscal year 2015.

Operating Activities

Net cash used in operating activities in the thirty-nine weeks ended September 24, 2016 was approximately $2.1 million compared to approximately $2.6 million in the thirty-nine weeks ended September 26, 2015. The $0.5 million change was primarily due to a decrease in the discount rate used to compute the carrying value of the non-compete payments to be made to the former CEO.

Investing Activities

Net cash provided by investing activities in the thirty-nine weeks ended September 24, 2016 was approximately $13.2 million compared to an immaterial amount of net cash used in the thirty-nine weeks ended September 26, 2015. The change was primarily due to tax distributions received from NBP in the current fiscal year.

Financing Activities

Net cash used in financing activities was immaterial in the thirty-nine weeks ended September 24, 2016 and September 26, 2015.

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 Revolving Term Loan Supplement provides for a $5 million revolving credit 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 September 24, 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.

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

10

The principal market risks affecting USPB’s business are exposure to interest rate risk, to the extent the company has debt outstanding. As of September 24, 2016, the Company did not have any outstanding debt.

Item 4. Controls and Procedures.

We maintain a system of controls and procedures designed to provide reasonable assurance as to the reliability of the Consolidated Financial Statements and other disclosures included in this report, as well as to safeguard assets from unauthorized use or disposition. We evaluated the effectiveness of the design and operation of our disclosure controls and procedures as defined in the Securities Exchange Act of 1934 Rules 13a-15(e) and 15d-15(e) under supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer. Based upon that evaluation, as of the end of the period covered by this Quarterly Report on Form 10-Q, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective in alerting them, in a timely manner, to material information required to be included in our periodic Securities and Exchange Commission filings. There have been no changes in our internal controls over financial reporting during the thirteen weeks ended September 24, 2016 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. The design of any system of controls and procedures is based in part upon certain assumptions about the likelihood of future events.

11

PART II. OTHER INFORMATION

Item 1. Legal Proceedings.None. Item 1A. Risk Factors.

Rules proposed by the U.S. Department of Agriculture’s (USDA) Grain Inspection, Packers and Stockyards Administration (GIPSA) could adversely impact USPB’s business operations.

The “Farmer Fair Practices Rules” proposed by GIPSA could have an impact on how USPB’s members market the cattle they produce and on USPB’s ability to offer its members value based grids for their cattle. If enacted, the proposed rules may have a negative impact the value of the Class A unit and the associated delivery rights held by USPB’s unitholders.

Other risk factors set forth in our Annual Report on Form 10-K for the fiscal year ended December 26, 2015 have not materially changed. Please refer to the Company’s report on Form 10-K for the fiscal year ended December 26, 2015 to consider those risk factors.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

      None. Item 3. Defaults Upon Senior Securities.None. Item 4. Mine Safety Disclosures.Not applicable. Item 5. Other Information.None. Item 6. Exhibits.

31.1	Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
31.2	Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
32.1	Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).
32.2	Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).
101.INS	XBRL Instance Document **
101.SCH	XBRL Taxonomy Extension Schema Document **
101.CAL	XBRL Taxonomy Extension Calculation Linkbase **

12

101.DEF	XBRL Taxonomy Extension Definition Linkbase Document **
101.LAB	XBRL Taxonomy Extension Label Linkbase Document **
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document **

** Furnished herewith. Pursuant to Rule 406T of Regulation S-T, the interactive data files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

13

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

U.S. Premium Beef, LLC
	By:	/s/ Stanley D. Linville
		Stanley D. Linville Chief Executive Officer (Principal Executive Officer)
	By:	/s/ Scott J. Miller
		Scott J. Miller Chief Financial Officer (Principal Financial and Accounting Officer)

Date: November 3, 2016

14

EX-31

EXHIBIT 31.1

CERTIFICATIONS

I, Stanley D. Linville, certify that:

     1. I have reviewed this quarterly report on Form 10-Q of U.S. Premium Beef, LLC;

     2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

     3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

     4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:  

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;  

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and  

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

   5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

By:	/s/ Stanley D. Linville
	Stanley D. Linville Chief Executive Officer

Date: November 3, 2016

EX-31

EXHIBIT 31.2

CERTIFICATIONS

I, Scott J. Miller, certify that:

     1. I have reviewed this quarterly report on Form 10-Q of U.S. Premium Beef, LLC;

     2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

     3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

     4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:  

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;  

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and  

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

   5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

By:	/s/ Scott J. Miller
	Scott J. Miller Chief Financial Officer (Principal Financial and Accounting Officer)

Date: November 3, 2016

EX-32

EXHIBIT 32.1

CERTIFICATIONS PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 In connection with the Quarterly Report of U.S. Premium Beef, LLC (the Company) on Form 10-Q for the period ended September 24, 2016 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Stanley D. Linville, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

     (1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

     (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	/s/ Stanley D. Linville
	Stanley D. Linville Chief Executive Officer

Date: November 3, 2016

EX-32

EXHIBIT 32.2

CERTIFICATIONS PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 In connection with the Quarterly Report of U.S. Premium Beef, LLC (the Company) on Form 10-Q for the period ended September 24, 2016 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Scott J. Miller, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

     (1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

     (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	/s/ Scott J. Miller
	Scott J. Miller Chief Financial Officer (Principal Financial and Accounting Officer)

Date: November 3, 2016

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 24, 2016	Oct. 29, 2016
Entity Registrant Name	U. S. Premium Beef, LLC
Entity Central Index Key	0001289237
Document Type	10-Q
Document Period End Date	Sep. 24, 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	Q3
Document Fiscal Year Focus	2016
Class A Units [Member]
Entity Common Stock, Shares Outstanding		735,385
Class B Units [Member]
Entity Common Stock, Shares Outstanding		755,385

XML

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 24, 2016	Dec. 26, 2015
Current assets:
Cash and cash equivalents	$ 96,295	$ 85,220
Due from affiliates	146	137
Other current assets	11	8
Total current assets	96,452	85,365
Property, plant, and equipment, at cost	223	223
Less accumulated depreciation	185	175
Net property, plant, and equipment	38	48
Investment in National Beef Packing Company, LLC	148,211	132,628
Other assets	145	196
Total assets	244,846	218,237
Current liabilities:
Accounts payable - trade	6	14
Due to affiliates	47	0
Accrued compensation and benefits	1,220	1,066
Other accrued expenses and liabilities	89	179
Patronage notices payable	19	90
Total current liabilities	1,381	1,349
Long-term liabilities:
Other liabilities	4,792	5,118
Total long-term liabilities	4,792	5,118
Total liabilities	6,173	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	238,673	211,770
Total capital shares and equities	238,673	211,770
Total liabilities and capital shares and equities	$ 244,846	$ 218,237

XML

Consolidated Balance Sheets (Unaudited) (Parenthetical) - shares	Sep. 24, 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

XML

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 24, 2016	Sep. 26, 2015	Sep. 24, 2016	Sep. 26, 2015
Net sales	$ 0	$ 0	$ 0	$ 0
Costs and expenses:
Cost of sales	0	0	0	0
Selling, general, and administrative expenses	726	430	2,281	1,616
Depreciation and amortization	3	2	10	4
Total costs and expenses	729	432	2,291	1,620
Operating loss	(729)	(432)	(2,291)	(1,620)
Other income (expense):
Interest income	11	11	35	34
Interest expense	(3)	(3)	(9)	(9)
Equity interest in net income (loss) of National Beef Packing Company, LLC	16,270	(4,856)	28,800	(11,361)
Other, net	21	2	367	2
Income (loss) before taxes	15,570	(5,278)	26,902	(12,954)
Income tax expense	0	0	0	0
Net income (loss)	$ 15,570	$ (5,278)	$ 26,902	$ (12,954)
Class A Units [Member]
Income (loss) per unit:
Basic	$ 2.12	$ (.72)	$ 3.66	$ (1.76)
Diluted	$ 2.12	$ (0.72)	$ 3.66	$ (1.76)
Outstanding weighted-average Class A and Class B units:
Basic	735,385	735,385	735,385	735,385
Diluted	735,385	735,385	735,385	735,385
Class B Units [Member]
Income (loss) per unit:
Basic	$ 18.55	$ (6.29)	$ 32.05	$ (15.43)
Diluted	$ 18.55	$ (6.29)	$ 32.05	$ (15.43)
Outstanding weighted-average Class A and Class B units:
Basic	755,385	755,385	755,385	755,385
Diluted	755,385	755,385	755,385	755,385

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 24, 2016	Sep. 26, 2015
Cash flows from operating activities:
Net income (loss)	$ 26,902	$ (12,954)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	10	4
Equity in net (income) loss of National Beef Packing Company, LLC	(28,800)	11,361
Changes in assets and liabilities:
Due from affiliates	(9)	(14)
Other assets	49	50
Accounts payable	(8)	(7)
Due to affiliates	47	2
Accrued compensation and benefits	(172)	(946)
Other accrued expenses and liabilities	(89)	(69)
Net cash used in operating activities	(2,070)	(2,573)
Cash flows from investing activities:
Capital expenditures	0	(22)
Distribution from National Beef Packing Company, LLC	13,216	0
Net cash provided by (used in) investing activities	13,216	(22)
Cash flows from financing activities:
Change in overdraft balances	(71)	0
Net cash used in financing activities	(71)	0
Net increase (decrease) in cash	11,075	(2,595)
Cash and cash equivalents at beginning of the period	85,220	92,344
Cash and cash equivalents at end of the period	$ 96,295	$ 89,749

XML

1. Interim Financial Statements

9 Months Ended

Sep. 24, 2016

Quarterly Financial Information Disclosure [Abstract]

Interim Financial Statements

Basis of Presentation

The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP), for interim financial information; therefore, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included using management’s best estimates and judgments where appropriate. These estimates and judgments affect the reported amounts of assets and liabilities and disclosure of 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. For further information, refer to the audited Consolidated Financial Statements and Notes to Consolidated Financial Statements, which are included in the Company’s Annual Report on Form 10-K on file with the Securities and Exchange Commission (SEC), for the fiscal year ended December 26, 2015. The results of operations for the interim periods presented are not necessarily indicative of the results for a full fiscal year.

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.

XML

2. Members' Capital

9 Months Ended

Sep. 24, 2016

Members' Equity [Abstract]

Members' Capital

The following table represents a reconciliation of Members’ Capital for the thirty-nine week period ended September 24, 2016 (thousands of dollars).

Balance at December 26, 2015	$	211,770
Net income for the thirty-nine week period ended September 24, 2016		26,902
Balance at September 24, 2016	$	238,673

XML

3. Income (Loss) Attributable to USPB Per Unit

9 Months Ended

Sep. 24, 2016

Limited Liability Company (LLC) Members' Equity [Abstract]

Income (Loss) Attributable to USPB Per Unit

Under the LLC structure, earnings of the Company are to be allocated to unitholders based on their proportionate share of underlying equity, and, as a result, income attributable to USPB per unit (EPU) has been presented in the accompanying Statements of Operations and in the table that follows.

Basic EPU excludes dilution and is computed by first allocating a portion of net income (loss) attributable to USPB to Class A units and the remainder is allocated to Class B units. For the thirteen week and thirty-nine week periods ended September 24, 2016 and September 26, 2015, net income (loss) was allocated 10% to the Class A’s and 90% to the Class B’s. The net income (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.

Income (Loss) Per Unit Calculation 

	13 weeks ended		13 weeks ended			39 weeks ended		39 weeks ended
(thousands of dollars, except unit and per unit data)	September 24, 2016		September 26, 2015			September 24, 2016		September 26, 2015
Basic earnings per unit
Net income (loss) attributable to USPB available to
unitholders (numerator)
Class A	$	1,557	$	(527	)	$	2,690	$	(1,295	)
Class B	$	14,013	$	(4,751	)	$	24,212	$	(11,659	)
Weighted average outstanding units (denominator)
Class A		735,385		735,385			735,385		735,385
Class B		755,385		755,385			755,385		755,385
Per unit amount
Class A	$	2.12	$	(0.72	)	$	3.66	$	(1.76	)
Class B	$	18.55	$	(6.29	)	$	32.05	$	(15.43	)
Diluted earnings per unit:
Net income (loss) attributable to USPB available to
unitholders (numerator)
Class A	$	1,557	$	(527	)	$	2,690	$	(1,295	)
Class B	$	14,013	$	(4,751	)	$	24,212	$	(11,659	)
Weighted average outstanding Class A units		735,385		735,385			735,385		735,385
Effect of dilutive securities - Class A unit options		–		–			–		–
Units (denominator)		735,385		735,385			735,385		735,385
Weighted average outstanding Class B units		755,385		755,385			755,385		755,385
Effect of dilutive securities - Class B unit options		–		–			–		–
Units (denominator)		755,385		755,385			755,385		755,385
Per unit amount
Class A	$	2.12	$	(0.72	)	$	3.66	$	(1.76	)
Class B	$	18.55	$	(6.29	)	$	32.05	$	(15.43	)

XML

4. Investment in National Beef Packing Company, LLC

9 Months Ended

Sep. 24, 2016

Investments in and Advances to Affiliates, Schedule of Investments [Abstract]

Investment in National Beef Packing Company, LLC

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. Below is a summary of the results of operations for NBP for the thirteen and thirty-nine week periods ended September 24, 2016 and September 26, 2015 (thousands of dollars):

	13 weeks ended			13 weeks ended			39 weeks ended			39 weeks ended
	September 24, 2016			September 26, 2015			September 24, 2016			September 26, 2015
Net sales	$	1,746,839		$	1,863,040		$	5,175,592		$	5,709,835
Costs and expenses:
Cost of sales		1,595,672			1,849,023			4,856,046			5,658,679
Selling, general, and administrative expenses		17,035			15,485			51,929			46,882
Depreciation and amortization		23,100			22,528			68,511			66,397
Total costs and expenses		1,635,807			1,887,036			4,976,486			5,771,958
Operating income (loss)		111,032			(23,996	)		199,106			(62,123	)
Other income (expense):
Interest income		51			3			114			20
Interest expense		(2,965	)		(3,902	)		(10,728	)		(12,619	)
Other, net		149			(3,786	)		4,040			56
Income (loss) before taxes		108,267			(31,681	)		192,532			(74,666	)
Income tax expense		(327	)		(538	)		(1,462	)		(710	)
Net income (loss)		107,940			(32,219	)		191,070			(75,376	)
NBP's net income (loss) attributable to USPB	$	16,270		$	(4,856	)	$	28,800		$	(11,361	)

XML

5. Subsequent Events

9 Months Ended

Sep. 24, 2016

Subsequent Events [Abstract]

5. Subsequent Events

       On October 24, 2016, USPB received an $11.3 million discretionary distribution from NBP.

XML

2. Members' Capital (Tables)

9 Months Ended

Sep. 24, 2016

Members' Equity [Abstract]

Schedule of Reconciliation of Members' Capital

Balance at December 26, 2015	$	211,770
Net income for the thirty-nine week period ended September 24, 2016		26,902
Balance at September 24, 2016	$	238,673

XML

3. Income (Loss) Attributable to USPB Per Unit (Tables)

9 Months Ended

Sep. 24, 2016

Limited Liability Company (LLC) Members' Equity [Abstract]

Schedule of Income (Loss) Per Unit Calculation

	13 weeks ended		13 weeks ended			39 weeks ended		39 weeks ended
(thousands of dollars, except unit and per unit data)	September 24, 2016		September 26, 2015			September 24, 2016		September 26, 2015
Basic earnings per unit
Net income (loss) attributable to USPB available to
unitholders (numerator)
Class A	$	1,557	$	(527	)	$	2,690	$	(1,295	)
Class B	$	14,013	$	(4,751	)	$	24,212	$	(11,659	)
Weighted average outstanding units (denominator)
Class A		735,385		735,385			735,385		735,385
Class B		755,385		755,385			755,385		755,385
Per unit amount
Class A	$	2.12	$	(0.72	)	$	3.66	$	(1.76	)
Class B	$	18.55	$	(6.29	)	$	32.05	$	(15.43	)
Diluted earnings per unit:
Net income (loss) attributable to USPB available to
unitholders (numerator)
Class A	$	1,557	$	(527	)	$	2,690	$	(1,295	)
Class B	$	14,013	$	(4,751	)	$	24,212	$	(11,659	)
Weighted average outstanding Class A units		735,385		735,385			735,385		735,385
Effect of dilutive securities - Class A unit options		–		–			–		–
Units (denominator)		735,385		735,385			735,385		735,385
Weighted average outstanding Class B units		755,385		755,385			755,385		755,385
Effect of dilutive securities - Class B unit options		–		–			–		–
Units (denominator)		755,385		755,385			755,385		755,385
Per unit amount
Class A	$	2.12	$	(0.72	)	$	3.66	$	(1.76	)
Class B	$	18.55	$	(6.29	)	$	32.05	$	(15.43	)

XML

4. Investment in National Beef Packing Company, LLC (Tables)

9 Months Ended

Sep. 24, 2016

Investments in and Advances to Affiliates, Schedule of Investments [Abstract]

Schedule of Operations for NBP

	13 weeks ended			13 weeks ended			39 weeks ended			39 weeks ended
	September 24, 2016			September 26, 2015			September 24, 2016			September 26, 2015
Net sales	$	1,746,839		$	1,863,040		$	5,175,592		$	5,709,835
Costs and expenses:
Cost of sales		1,595,672			1,849,023			4,856,046			5,658,679
Selling, general, and administrative expenses		17,035			15,485			51,929			46,882
Depreciation and amortization		23,100			22,528			68,511			66,397
Total costs and expenses		1,635,807			1,887,036			4,976,486			5,771,958
Operating income (loss)		111,032			(23,996	)		199,106			(62,123	)
Other income (expense):
Interest income		51			3			114			20
Interest expense		(2,965	)		(3,902	)		(10,728	)		(12,619	)
Other, net		149			(3,786	)		4,040			56
Income (loss) before taxes		108,267			(31,681	)		192,532			(74,666	)
Income tax expense		(327	)		(538	)		(1,462	)		(710	)
Net income (loss)		107,940			(32,219	)		191,070			(75,376	)
NBP's net income (loss) attributable to USPB	$	16,270		$	(4,856	)	$	28,800		$	(11,361	)

XML

1. Interim Financial Statements (Details Narrative)	Sep. 24, 2016
Quarterly Financial Information Disclosure [Abstract]
Remaining membership interests in National Beef Packing Company, LLC (NBP)	15.0729%

XML

2. Members' Capital (Details) $ in Thousands	9 Months Ended
	Sep. 24, 2016 USD ($)
Members' Equity [Abstract]
Beginning balance	$ 211,770
Net income for the period	26,902
Ending balance	$ 238,673

XML

3. Income (Loss) Attributable to USPB Per Unit (Details Narrative)	9 Months Ended
	Sep. 24, 2016	Sep. 26, 2015
Class A Units [Member]
Class of Stock [Line Items]
Ownership percentage	10.00%	10.00%
Class B Units [Member]
Class of Stock [Line Items]
Ownership percentage	90.00%	90.00%

XML

3. Income (Loss) Attributable to USPB Per Unit (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 24, 2016	Sep. 26, 2015	Sep. 24, 2016	Sep. 26, 2015
Basic earnings per unit
Net income (loss) attributable to USPB available to unitholders (numerator)			$ 26,902
Class A Units [Member]
Basic earnings per unit
Net income (loss) attributable to USPB available to unitholders (numerator)	$ 1,557	$ (527)	$ 2,690	$ (1,295)
Weighted average outstanding units (denominator)	735,385	735,385	735,385	735,385
Per unit amount	$ 2.12	$ (.72)	$ 3.66	$ (1.76)
Diluted earnings per unit:
Net income (loss) attributable to USPB available to unitholders (numerator)	$ 1,557	$ (527)	$ 2,690	$ (1,295)
Weighted average outstanding
Weighted average outstanding units (denominator)	735,385	735,385	735,385	735,385
Effect of dilutive securities	0	0		0
Units (denominator)	735,385	735,385	735,385	735,385
Per unit amount	$ 2.12	$ (0.72)	$ 3.66	$ (1.76)
Class B Units [Member]
Basic earnings per unit
Net income (loss) attributable to USPB available to unitholders (numerator)	$ 14,013	$ (4,751)	$ 24,212	$ (11,659)
Weighted average outstanding units (denominator)	755,385	755,385	755,385	755,385
Per unit amount	$ 18.55	$ (6.29)	$ 32.05	$ (15.43)
Diluted earnings per unit:
Net income (loss) attributable to USPB available to unitholders (numerator)	$ 14,013	$ (4,751)	$ 24,212	$ (11,659)
Weighted average outstanding
Weighted average outstanding units (denominator)	755,385	755,385	755,385	755,385
Effect of dilutive securities	0	0	0	0
Units (denominator)	755,385	755,385	755,385	755,385
Per unit amount	$ 18.55	$ (6.29)	$ 32.05	$ (15.43)

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4. Investment in National Beef Packing Company, LLC (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 24, 2016	Sep. 26, 2015	Sep. 24, 2016	Sep. 26, 2015
Other income (expense):
NBP's net income (loss) attributable to USPB	$ 16,270	$ (4,856)	$ 28,800	$ (11,361)
National Beef Packing Company, LLC [Member]
Investment in National Beef Packing
Net sales	1,746,839	1,863,040	5,175,592	5,709,835
Costs and expenses:
Cost of sales	1,595,672	1,849,023	4,856,046	5,658,679
Selling, general, and administrative expenses	17,035	15,485	51,929	46,882
Depreciation and amortization	23,100	22,528	68,511	66,397
Total costs and expenses	1,635,807	1,887,036	4,976,486	5,771,958
Operating income (loss)	111,032	(23,996)	199,106	(62,123)
Other income (expense):
Interest income	51	3	114	20
Interest expense	(2,965)	(3,902)	(10,728)	(12,619)
Other, net	149	(3,786)	4,040	56
Income (loss) before taxes	108,267	(31,681)	192,532	(74,666)
Income tax expense	(327)	(538)	(1,462)	(710)
Net income (loss)	107,940	(32,219)	191,070	(75,376)
NBP's net income (loss) attributable to USPB	$ 16,270	$ (4,856)	$ 28,800	$ (11,361)