pay down

When the Fed’s net income turns positive, it will pay down the deferred-asset value until it reaches zero, and then resume sending money.

But the company’s capital allocation strategy has been to use free cash flow mainly to buy back stock, rather than to pay down debt.

These can be a great option for financing large purchases, experts say, giving you a year or more to pay down the debt interest-free.

Instead, they are using their newfound income to pay down debts and invest in higher quality cattle.

Its capital investments are low—just about $90 million—and management plans to continue to pay down its $77 million in net debt, which its annual profits easily cover.