The Duckhorn Portfolio, Inc. (NAPA) 10-Q 7 Jun 21 2021 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Apr. 30, 2021	Jun. 07, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 30, 2021
Document Transition Report	false
Entity File Number	001-40240
Entity Registrant Name	The Duckhorn Portfolio, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	81-3866305
Entity Address, Address Line One	1201 Dowdell Lane
Entity Address, City or Town	Saint Helena
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94574
City Area Code	707
Local Phone Number	302-2658
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	NAPA
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		114,381,404
Amendment Flag	false
Entity Central Index Key	0001835256
Current Fiscal Year End Date	--07-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3

Condensed Consolidated Statemen

Condensed Consolidated Statements of Financial Position - USD ($) $ in Thousands	Apr. 30, 2021	Jul. 31, 2020
Current assets
Cash	$ 5,027	$ 6,252
Accounts receivable trade, net	43,955	26,464
Inventories	268,825	245,311
Prepaid expenses and other current assets	8,554	2,686
Total current assets	326,361	280,713
Long-term assets
Property and equipment, net	240,975	242,751
Intangible assets, net	202,468	208,230
Goodwill	425,209	425,209
Other long-term assets	1,991	1,688
Total long-term assets	870,643	877,878
Total assets	1,197,004	1,158,591
Current liabilities
Accounts payable	7,839	3,733
Accrued expenses	28,008	15,511
Accrued compensation	13,772	8,674
Deferred revenue	767	4,148
Derivative instrument	1,008	5,376
Current maturities of long-term debt	11,786	13,430
Other current liabilities	796	935
Total current liabilities	63,976	51,807
Long-term liabilities
Revolving line of credit, net	136,016	239,674
Long-term debt, net of current maturities and debt issuance costs	117,366	125,844
Deferred income taxes	84,638	84,638
Other long-term liabilities	1,498	2,024
Total long-term liabilities	339,518	452,180
Total liabilities	403,494	503,987
Commitments and Contingencies (Note 11)
Equity
Common stock, $0.01 par value; 500,000,000 shares authorized, 115,046,793 issued and 114,381,404 outstanding at April 30, 2021 and 200,000,000 shares authorized, 101,713,460 issued and outstanding at July 31, 2020	1,150	1,017
Additional paid-in capital	725,601	535,372
Retained earnings	66,206	117,658
Total The Duckhorn Portfolio, Inc. equity	792,957	654,047
Non-controlling interest	553	557
Total equity	793,510	654,604
Total liabilities and equity	$ 1,197,004	$ 1,158,591

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Operations (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2021	Apr. 30, 2020	Apr. 30, 2021	Apr. 30, 2020
Income Statement [Abstract]
Net sales (net of excise taxes of $1,368, $759, $3,782 and $2,516, respectively)	$ 90,425	$ 68,720	$ 265,720	$ 218,417
Cost of sales	43,496	32,378	132,759	107,458
Gross profit	46,929	36,342	132,961	110,959
Selling, general and administrative expenses	31,142	13,156	65,418	49,703
Casualty gain, net (Note 14)	(421)	(24)	(6,636)	(4,047)
Income from operations	16,208	23,210	74,179	65,303
Interest expense	3,755	4,221	10,947	13,905
Other (income) expense, net	(2,192)	3,183	(5,006)	3,707
Total other expenses	1,563	7,404	5,941	17,612
Income before income taxes	14,645	15,806	68,238	47,691
Income tax expense	5,623	4,189	19,694	12,588
Net income	9,022	11,617	48,544	35,103
Less: Net loss (income) attributable to non-controlling interest	0	2	4	(3)
Net income attributable to The Duckhorn Portfolio, Inc.	$ 9,022	$ 11,619	$ 48,548	$ 35,100
Net income per share of common stock:
Basic (in dollars per share)	$ 0.08	$ 0.11	$ 0.47	$ 0.35
Diluted (in dollars per share)	$ 0.08	$ 0.11	$ 0.47	$ 0.35
Weighted average shares of common stock outstanding:
Basic (in shares)	107,976,264	101,713,460	103,755,180	101,713,460
Diluted (in shares)	108,404,009	101,713,460	104,123,270	101,713,460

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Changes in Equity (unaudited) - USD ($) $ in Thousands	Total	Parent	Common Stock	Additional Paid-in Capital	Retained Earnings	Noncontrolling Interest
Shares, outstanding, beginning balance at Jul. 31, 2019			101,713,460
Beginning balance at Jul. 31, 2019	$ 621,132	$ 620,576	$ 1,017	$ 534,273	$ 85,286	$ 556
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	8,825	8,816			8,816	9
Equity-based compensation (Note 13)	289	289		289
Other	(60)	(60)		(55)	(5)
Ending balance at Oct. 31, 2019	630,186	629,621	$ 1,017	534,507	94,097	565
Shares, outstanding, ending balance at Oct. 31, 2019			101,713,460
Shares, outstanding, beginning balance at Jul. 31, 2019			101,713,460
Beginning balance at Jul. 31, 2019	621,132	620,576	$ 1,017	534,273	85,286	556
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	35,103
Ending balance at Apr. 30, 2020	657,041	656,482	$ 1,017	535,084	120,381	559
Shares, outstanding, ending balance at Apr. 30, 2020			101,713,460
Shares, outstanding, beginning balance at Oct. 31, 2019			101,713,460
Beginning balance at Oct. 31, 2019	630,186	629,621	$ 1,017	534,507	94,097	565
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	14,661	14,665			14,665	(4)
Equity-based compensation (Note 13)	289	289		289
Ending balance at Jan. 31, 2020	645,136	644,575	$ 1,017	534,796	108,762	561
Shares, outstanding, ending balance at Jan. 31, 2020			101,713,460
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	11,617	11,619			11,619	(2)
Equity-based compensation (Note 13)	288	288		288
Ending balance at Apr. 30, 2020	657,041	656,482	$ 1,017	535,084	120,381	559
Shares, outstanding, ending balance at Apr. 30, 2020			101,713,460
Shares, outstanding, beginning balance at Jul. 31, 2020			101,713,460
Beginning balance at Jul. 31, 2020	654,604	654,047	$ 1,017	535,372	117,658	557
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	17,522	17,523			17,523	(1)
Equity-based compensation (Note 13)	288	288		288
Ending balance at Oct. 31, 2020	672,414	671,858	$ 1,017	535,660	135,181	556
Shares, outstanding, ending balance at Oct. 31, 2020			101,713,460
Shares, outstanding, beginning balance at Jul. 31, 2020			101,713,460
Beginning balance at Jul. 31, 2020	654,604	654,047	$ 1,017	535,372	117,658	557
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	48,544
Ending balance at Apr. 30, 2021	793,510	792,957	$ 1,150	725,601	66,206	553
Shares, outstanding, ending balance at Apr. 30, 2021			115,046,793
Shares, outstanding, beginning balance at Oct. 31, 2020			101,713,460
Beginning balance at Oct. 31, 2020	672,414	671,858	$ 1,017	535,660	135,181	556
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	22,000	22,003			22,003	(3)
Equity-based compensation (Note 13)	288	288		288
Ending balance at Jan. 31, 2021	694,702	694,149	$ 1,017	535,948	157,184	553
Shares, outstanding, ending balance at Jan. 31, 2021			101,713,460
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	9,022	9,022			9,022
Dividend to parent	(100,000)	(100,000)			(100,000)
Initial public offering, net of issuance costs (shares)			13,333,333
Initial public offering, net of issuance costs	180,824	180,824	$ 133	180,691
Equity-based compensation (Note 13)	8,962	8,962		8,962
Ending balance at Apr. 30, 2021	$ 793,510	$ 792,957	$ 1,150	$ 725,601	$ 66,206	$ 553
Shares, outstanding, ending balance at Apr. 30, 2021			115,046,793

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Apr. 30, 2021	Apr. 30, 2020
Cash flows from operating activities
Net income	$ 48,544	$ 35,103
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	16,434	17,421
Loss on disposal of assets	62	227
Change in fair value of derivatives	(4,818)	3,427
Amortization of debt issuance costs	1,221	1,590
Loss on debt extinguishment (Note 8)	272	0
Equity-based compensation	9,538	866
Change in operating assets and liabilities:
Accounts receivable trade, net	(17,491)	(5,204)
Inventories	(23,514)	(11,161)
Prepaid expenses and other current assets	(5,848)	(1,431)
Other long-term assets	(304)	97
Accounts payable	4,176	2,334
Accrued expenses	11,677	3,102
Accrued compensation	5,098	(2,122)
Deferred revenue	(3,381)	(2,263)
Other current and long-term liabilities	(130)	(5)
Net cash provided by operating activities	41,536	41,981
Cash flows from investing activities
Purchases of property and equipment	(11,452)	(11,589)
Proceeds from sales of property and equipment	52	50
Net cash used in investing activities	(11,400)	(11,539)
Cash flows from financing activities
Dividend to parent	(100,000)	0
Proceeds from issuance of common stock pursuant to the initial public offering, net of underwriters' discounts and commissions	187,500	0
Payments of deferred offering costs	(3,580)	0
Payments under line of credit	(245,000)	(56,500)
Borrowings under line of credit	140,500	49,000
Extinguishment of long-term debt	(38,131)	0
Issuance of long-term debt	38,131	13,100
Payments of long-term debt	(10,513)	(9,122)
Repayment of capital leases	(8)	(12)
Debt issuance costs	(260)	0
Net cash used in financing activities	(31,361)	(3,534)
Net (decrease) increase in cash	(1,225)	26,908
Cash - Beginning of year	6,252	3,765
Cash - End of year	5,027	30,673
Non-cash investing and financing activities
Property and equipment additions in accounts payable and accrued expenses	639	505
Deferred offering costs in accounts payable, accrued expenses and prepaid expenses	$ 3,096	$ 0

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Financial Position (Parenthetical) - $ / shares	Apr. 30, 2021	Jul. 31, 2020
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	500,000,000	200,000,000
Common stock, shares issued	115,046,793	101,713,460
Common stock, shares outstanding	114,381,404	101,713,460

Condensed Consolidated Statem_6

Condensed Consolidated Statements of Operations (unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2021	Apr. 30, 2020	Apr. 30, 2021	Apr. 30, 2020
Income Statement [Abstract]
Excise taxes	$ 1,368	$ 759	$ 3,782	$ 2,516

Description of Business

Description of Business	9 Months Ended
	Apr. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Description of Business The Duckhorn Portfolio, Inc. (formerly known as Mallard Intermediate, Inc. until its name change, on February 23, 2021) and its subsidiaries (the "Company" or "Management") headquartered in St. Helena, CA, produces luxury and ultra-luxury wine across a portfolio of winery brands, including Duckhorn Vineyards, Paraduxx, Goldeneye, Migration, Decoy, Canvasback, Calera, Kosta Browne, Greenwing and Postmark. On February 23, 2021, the Company changed its legal name from Mallard Intermediate Inc. to The Duckhorn Portfolio, Inc. This legal name change did not result in any other changes to the Company's subsidiaries, structure or operations. The Company's revenue is comprised of wholesale and direct to consumer ("DTC") sales. Wholesale revenue is generated through sales directly to California retailers and restaurants, sales to distributors and agents located in other states throughout the United States ("U.S.") and sales to export distributors that sell internationally. DTC revenue results from individual consumers purchasing wine directly from the Company through club membership, the Company's website or tasting rooms located in Napa Valley, California; Anderson Valley, California; Sebastopol, California; Hollister, California; and Walla Walla, Washington. The Company owns or controls through long-term leases certain high-quality vineyards throughout Northern and Central California and Washington. Vinification takes place at wineries owned, leased, or under contract with third parties predominately located in Napa Valley, California; Anderson Valley, California; Hopland, California; Hollister, California; Sebastopol, California; and Walla Walla, Washington. Fiscal Year The Company's fiscal year ends on July 31. References to Fiscal 2021, for example, refer to the fiscal year ended July 31, 2021. Initial Public Offering In March 2021, the Company completed its initial public offering ("IPO") of common stock, in which it sold 13.3 million shares. The shares began trading on the New York Stock Exchange ("NYSE") on March 18, 2021. The shares were sold at an IPO price of $15.00 per share, resulting in net proceeds to the Company of approximately $180.8 million, after deducting underwriting discounts and commissions of $12.5 million and deferred offering costs of approximately $6.7 million.

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	9 Months Ended
	Apr. 30, 2021
Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies	Basis of Presentation and Significant Accounting Policies Basis of Presentation The Company’s condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and Article 10 of the Securities and Exchange Commission’s Regulation S-X. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP may be condensed or omitted. These condensed consolidated financial statements have been prepared on the same basis as the Company's audited annual financial statements and, in the opinion of Management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the Company's financial information for the interim periods presented. These interim results are not necessarily indicative of the results to be expected for the year ending July 31, 2021, for any other interim period or for any future year. The condensed consolidated financial statements are unaudited and should be read in conjunction with the audited consolidated financial statements and related notes thereto for the year ended July 31, 2020. Principles of Consolidation The condensed consolidated financial statements include the accounts of The Duckhorn Portfolio, Inc. and its subsidiaries, including a consolidated variable interest entity ("VIE") of which the Company has determined it is the primary beneficiary. All intercompany balances and transactions are eliminated in consolidation. Accounting Estimates The preparation of condensed consolidated financial statements requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates include, but are not limited to, the following: useful lives and recoverability of long-lived assets, inventory obsolescence and reserves, capitalized indirect inventory costs, allowance for doubtful accounts receivable, calculation of accrued liabilities, customer incentive reserves, uncertain tax positions, contingent liabilities, fair value of assets and liabilities acquired in connection with business combinations, equity-based compensation and deferred revenues. Actual results could differ from those estimates. Stock Split On March 9, 2021, the Company's Board of Managers approved a 1,017,134.6-for-1 stock split to the Company's common stock, which was immediately effective. All share and per share data included in these condensed consolidated financial statements give effect to the stock split and have been retroactively adjusted for all periods presented. Preferred Stock The Company has 100,000,000 shares of $0.01 par value preferred stock authorized, none of which are issued and outstanding. Deferred Offering Costs Deferred offering costs consisted of legal, accounting, underwriting fees and other incurred that were directly related to the IPO. Upon completion of the offering in March 2021, the Company charged deferred offering costs totaling $6.7 million to stockholders' equity. Net Income per Share In accordance with Accounting Standards Codification ("ASC") Topic 260, Earnings Per Share, net income per share is calculated by dividing net income by the weighted average number of ordinary shares outstanding during the period, excluding forfeitures. Diluted earnings per common share is computed using the weighted-average number of common shares outstanding and dilutive common shares, such as those issuable upon exercise of stock option and upon the vesting of restricted stock. Variable Interest Entities The Company evaluates its ownership, contractual relationships and other interests in entities to determine the nature and extent of the interests, whether such interests are variable interests and whether the entities are VIEs in accordance with ASC 810, Consolidations. These evaluations can be complex and involve Management judgment as well as the use of estimates and assumptions based on available historical information, among other factors. Based on these evaluations, if the Company determines that it is the primary beneficiary of a VIE, the entity is consolidated into the financial statements. At April 30, 2021 and July 31, 2020, the Company's ownership percentage of the sole identified VIE was 76.2%. The VIE's net assets, which may only be used to settle its own obligations, were $2.2 million at both April 30, 2021 and July 31, 2020, respectively. Recent Accounting Pronouncements As an “emerging growth company,” the Jumpstart Our Business Startups Act, or the JOBS Act, allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected to use the adoption dates applicable to private companies. As a result, the Company’s financial statements may not be comparable to the financial statements of issuers who are required to comply with the effective date for new or revised accounting standards that are applicable to public companies. Recently Adopted Accounting Pronouncements: In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . The objective of the guidance is to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and to provide more consistent application to improve the comparability of financial statements. The Company early adopted this standard as of the third quarter of the current fiscal year, which is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. There were no material impacts to the financial statements or disclosures as a result of the early adoption of this ASU. Recently Issued Accounting Pronouncements Not Yet Adopted: In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-02, Leases (Topic 842) , and several amendments, codified as ASC 842, which supersedes prior guidance on accounting for leases under FASB ASC 840, Leases. ASU No. 2016-02, among other provisions, (i) requires lessees to classify leases as either finance or operating leases, (ii) generally requires all leases to be recorded on the Consolidated Statements of Financial Position through the recognition of right-of-use assets and corresponding lease liabilities and (iii) expands mandatory qualitative and quantitative disclosures regarding leasing activities. The FASB has recently issued ASU No. 2020-05, “Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842) Effective dates for certain entities”, which extends the effective date for all other entities, for annual reporting periods beginning after December 15, 2021, and for interim periods within fiscal years beginning after December 15, 2022. The amended standard is effective for the Company beginning with the year ended July 31, 2023. Early adoption is permitted. The Company’s assessment of the lease standard’s impact on the consolidated financial statements is ongoing, and is expected to result in the recognition of right of use assets and lease liabilities related to the Company’s operating leases. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments–Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, and also issued subsequent amendments to the initial guidance, collectively, ASC 326, to replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that requires the reflection of expected credit losses and will also require consideration of a broader range of reasonable and supportable information to determine credit loss estimates. For many entities with financial instruments, the standard will require the use of a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses, which may result in the earlier recognition of credit losses on financial instruments. This guidance will be effective for the Company beginning with the year ended July 31, 2024, with early adoption permitted. The Company is currently evaluating the impact this standard could have on the consolidated financial statements. In March 2020, FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) . In order to ease the potential burden in accounting for reference rate reform, ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform, if certain criteria are met. ASU 2020-04 applies only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued. The amendment is effective immediately and may be applied prospectively through December 31, 2022. The Company is currently evaluating the impact of reference rate reform and the optional expedients provided by this amendment on its contracts.

Revenue

Revenue	9 Months Ended
	Apr. 30, 2021
Revenue from Contract with Customer [Abstract]
Revenue	Revenue The Company’s net sales reflect the sale of wine domestically in the U.S. to wholesale distributors, wholesale accounts or DTC, as well as sales of wine to export distributors that sell internationally. Under ASC Topic 606, Revenue from contracts with customers ("ASC 606"), the Company recognizes revenue when control of the promised good is transferred to the customer in an amount that reflects the consideration for which the Company is expected to be entitled to receive in exchange for those products. Each contract includes a single performance obligation to transfer control of the product to the customer. Control is transferred when the product is either shipped or delivered, depending on the shipping terms, at which point the Company recognizes the transaction price for the product as revenue. The Company has elected to account for shipping and handling as a fulfillment activity, with amounts billed to customers for shipping and handling included in net sales. The Company has elected to record excise taxes as a reduction to revenue, which are recognized in the Condensed Consolidated Statements of Operations when the related product sale is recognized. The transaction price includes reductions attributable to consideration given to customers through various incentive programs, including depletion-based incentives paid to distributors, volume discounts and pricing discounts on single transactions. This variable consideration is recognized as a reduction to the transaction price based on the expected amounts at the time revenue for the corresponding product is recognized. The determination of the reduction of the transaction price for variable consideration requires certain estimates and judgements that affect the amounts of revenue recognized and if a change to an estimate occurs in a future period, it is recorded as identified. The Company estimates this variable consideration using the expected value method by taking into account factors such as the nature of the incentive program, historical information, current consumer product trends and availability of actual results. Due to the nature of the arrangements, certain estimates may be constrained if it is probable that a significant reversal of revenue will occur when the uncertainty is resolved. Consideration given to customers totaled $15.5 million and $12.7 million for the three months ended April 30, 2021 and 2020, respectively and $48.2 million and $35.8 million for the nine months ended April 30, 2021 and 2020, respectively. • The Company pays depletion-based incentives to its distributors for meeting specific depletion targets, and reviews the allowances using a portfolio approach, grouping contracts with similar attributes, which does not result in a materially different outcome than would be obtained by applying assumptions to each individual contract within the portfolio. The allowances are reassessed at each reporting date to reflect changes in facts and circumstances that could impact allowance estimates. • Volume pricing discounts are given for meeting volume levels on an individual contract basis. Each incentive is treated as a reduction to the transaction price at the time of revenue recognition. Products are sold for cash or on credit terms. Credit terms are established in accordance with local and industry practices, and typically require payment within 30-90 days of delivery or shipment, as dictated by the terms of each agreement. The Company has elected the practical expedient to not account for significant financing components as its payment terms are less than one year, and the Company determines the terms at contract inception. The Company’s sales terms do not allow for the right of return except for matters related to manufacturing defects, which are not material. Disaggregated Revenue Information The following table presents the percentages of consolidated net sales disaggregated by sales channels: Three months ended April 30, Nine months ended April 30, 2021 2020 2021 2020 Wholesale - Distributors 59.5 % 52.7 % 64.4 % 59.4 % Wholesale - California direct to retail (a) 15.7 % 17.1 % 16.5 % 18.1 % DTC (b) 24.8 % 30.2 % 19.1 % 22.5 % Net sales 100.0 % 100.0 % 100.0 % 100.0 % ________________________________________________ (a) Includes immaterial sales related to bulk, grape and merchandise sales. (b) Includes shipping and handling revenue of $1.3 million for both the three months ended April 30, 2021 and 2020 and $2.3 million and $2.1 million for the nine months ended April 30, 2021 and 2020, respectively. Contract Balances When the Company receives payment from a customer prior to transferring the product under the terms of a contract, the Company records deferred revenue, which represents a contract liability. The Company’s deferred revenue is primarily comprised of cash collected from DTC members for purchases ahead of the wine shipment date. The Company does not recognize revenue until control of the wine is transferred and the performance obligation is met. The following table reflects the changes in the contract liability balance during the nine months ended April 30, 2021 and the year ended July 31, 2020. (in thousands) April 30, July 31, Outstanding at beginning of period $ 4,148 $ 3,863 Increase (decrease) attributable to: Upfront payments 27,866 34,836 Revenue recognized (31,059) (34,328) Refund (188) (223) Outstanding at end of period $ 767 $ 4,148 Revenue recognized during the three months and nine months ended April 30, 2021 and 2020, which was included in the opening contract liability balance for those periods, was primarily revenue from DTC sales. Costs to Obtain a Contract The Company has elected the practical expedient to expense the cost of obtaining a contract that is short term in nature when incurred. The Company does not have any contract costs capitalized as of April 30, 2021 or July 31, 2020.

Inventories

Inventories	9 Months Ended
	Apr. 30, 2021
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories were comprised of the following: (in thousands) April 30, July 31, Finished goods Bottled wine $ 91,122 $ 100,272 Merchandise 360 408 Work in progress Bulk wine 167,839 128,436 Packaging 3,383 2,945 Overhead (261) 2,225 Raw materials Deferred crop costs 6,382 11,025 Total $ 268,825 $ 245,311 The Company capitalizes into inventory depreciation related to property and equipment used in the production of inventory. For the nine months ended April 30, 2021 and the year ended July 31, 2020, the amount capitalized was $9.8 million and $13.9 million, respectively.

Property and Equipment

Property and Equipment	9 Months Ended
	Apr. 30, 2021
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment was comprised of the following major components as of: (in thousands) April 30, July 31, Land $ 120,063 $ 120,063 Buildings & improvements 68,307 66,057 Vineyards & improvements 28,734 27,430 Machinery & equipment 48,485 44,147 Barrels 29,321 25,889 Total depreciable property and equipment 294,910 283,586 Less: accumulated depreciation and amortization (58,539) (48,171) Total depreciable property and equipment, net 236,371 235,415 Construction in progress 4,604 7,336 Property and equipment, net $ 240,975 $ 242,751 Depreciation expense was $0.3 million and $0.9 million for the three months and nine months ended April 30, 2021 and 2020, respectively. See Note 4 (Inventories) for depreciation expense capitalized into inventory.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	9 Months Ended
	Apr. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets Goodwill At each of April 30, 2021 and July 31, 2020, the goodwill balance was $425.2 million. Other Intangible Assets Intangible assets were comprised of the following components: April 30, 2021 (in thousands) Gross carrying amount Accumulated amortization Impairment charges Net Definite-lived intangible assets Customer relationships $ 92,720 $ 32,384 $ — $ 60,336 Leasehold interests 1,572 340 — 1,232 Total definite-lived intangible assets 94,292 32,724 — 61,568 Indefinite-lived intangible assets Trade names 139,600 — — 139,600 Lane rights 1,300 — — 1,300 Total indefinite-lived intangible assets 140,900 — — 140,900 Total other intangible assets $ 235,192 $ 32,724 $ — $ 202,468 July 31, 2020 (in thousands) Gross carrying amount Accumulated amortization Impairment charges Net Definite-lived intangible assets Customer relationships $ 92,720 $ 26,715 $ — $ 66,005 Leasehold interests 1,572 247 — 1,325 Total definite-lived intangible assets 94,292 26,962 — 67,330 Indefinite-lived intangible assets Trade names 151,430 — 11,830 139,600 Lane rights 1,300 — — 1,300 Total indefinite-lived intangible assets 152,730 — 11,830 140,900 Total other intangible assets $ 247,022 $ 26,962 $ 11,830 $ 208,230

Accounts Payable and Accrued Ex

Accounts Payable and Accrued Expenses	9 Months Ended
	Apr. 30, 2021
Payables and Accruals [Abstract]
Accounts Payable and Accrued Expenses	Accounts Payable and Accrued Expenses The Company’s accounts payable balance consisted of the following amounts: (in thousands) April 30, July 31, Distributor invoices $ 1,720 $ 881 Bulk invoices 1,570 599 Other 4,549 2,253 Total $ 7,839 $ 3,733 The Company’s accrued expenses balance consisted of the following amounts: (in thousands) April 30, July 31, Trade spend (a) $ 10,349 $ 6,246 Barrel purchase — 1,917 Deferred compensation liability (b) 2,011 1,576 Income tax payable 6,578 349 Accrued invoices and other accrued expenses 9,070 5,423 Total $ 28,008 $ 15,511 ________________________________________________ (a) Trade spend refers to estimated amounts the Company owes to distributors for depletion-based incentives granted for meeting specific depletion targets. See further discussion in Note 2 (Basis of Presentation and Significant Accounting Policies). (b) The Company intends to use the cash surrender value life insurance policies in settling its deferred compensation plan liability. The cash surrender value of the life insurance policies was $1.7 million and $1.4 million at April 30, 2021 and July 31, 2020, respectively.

Debt

Debt	9 Months Ended
	Apr. 30, 2021
Debt Disclosure [Abstract]
Debt	Debt The Company is subject to the requirements of various financial covenants pursuant to the term loans and revolving line of credit, including a minimum fixed charge coverage ratio as defined in the First Lien Loan Agreement. As of April 30, 2021, the Company was not in violation of any financial covenant. Included in interest expense in the Condensed Consolidated Statements of Operations, and in depreciation and amortization on the Condensed Consolidated Statements of Cash Flows, is amortization related to debt issuance costs of $0.4 million and $0.5 million for the three months ended April 30, 2021 and 2020, respectively and $1.2 million and $1.6 million for the nine months ended April 30, 2021 and 2020, respectively. Amendments to the First Lien Loan Agreement On August 17, 2020, the Company entered into an agreement which amended the terms of the First Lien Loan Agreement capital expenditure and term loans. This amendment extended the maturity dates of the capital expenditure loan and term loan (first tranche) to August 1, 2023, and modified the interest rate margins in the credit facility to reflect market conditions. The variable interest rates are now calculated as London Inter-Bank Offered Rate ("LIBOR") plus 190 basis points. The transaction did not result in any additional cash proceeds. The transaction was assessed on a lender-specific level for all syndicated instruments and was accounted for primarily as a debt modification. Where the transaction was determined to be an extinguishment in accordance with ASC 470, Debt, the Company recognized a loss on early extinguishment of $0.3 million in total. On February 22, 2021, the Company amended the terms of its Credit Facility by executing Amendment No. 7. Pursuant to the terms of Amendment No. 7, Selway Wine Company, a wholly-owned subsidiary the Company formed in connection with Amendment No. 7, became the guarantor of all debt outstanding under the Credit Facility. Additional changes within this amendment included revisions to certain covenants of the Credit Facility related to reporting requirements and revisions to terms restricting certain liquidity events and distributions to the Company's equity holders. The transaction did not result in any additional cash proceeds. Consistent with previous amendments, the transaction was assessed on a lender-specific level for all syndicated instruments and was accounted for as a debt modification in accordance with ASC 470. Revolving Line of Credit At April 30, 2021, $286.0 million was available to draw under the revolving line of credit, excluding the incremental seasonal borrowing amount of an additional $30.0 million of capacity. The weighted-average interest rate was 4.3% on the amount outstanding at April 30, 2021. There were no amounts outstanding on the letter of credit sub-facility or the swingline sub-facility at April 30, 2021.

Derivative Instruments

Derivative Instruments	9 Months Ended
	Apr. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments	Derivative Instruments The Company manages exposure to interest rates and foreign currency movements by entering into derivative contracts from time to time, as movements in such markets could impact the financial results and Condensed Consolidated Statements of Financial Position. The changes in estimated fair values of derivative instruments result from changes in interest rates and foreign currency exchange rates. Such changes serve to offset exposure in related business assets or liabilities. The Company is exposed to credit loss in the event of nonperformance by a counterparty. Certain of the Company's derivative instruments are subject to master netting agreements. In certain circumstances, this arrangement allows the Company to net-settle amounts payable or receivable related to multiple derivative transactions with the same counterparty. The fair values of derivative instruments are presented on a gross basis, even when the derivative instruments are subject to master netting arrangements. Collateral is generally not required of the Company or of the counterparties to the master netting agreements, and no cash collateral was received or pledged under such agreements as of April 30, 2021 or July 31, 2020. The Company does not enter into derivative instruments for trading or speculative purposes. The Company's accounting policies do not apply hedge accounting treatment to derivative instruments. As of April 30, 2021, the Company held the following interest rate swap agreements, which fixed the interest rate on the applicable notional amount of outstanding variable rate debt: Notional amount (in thousands) Interest rate Effective date Expiration date $150,000 2.781% December 31, 2020 July 31, 2021 $100,000 0.487% March 21, 2020 March 23, 2023 On March 26, 2021, the Company modified the interest rate swap with an original effective date of August 10, 2018 and expiration of July 31, 2021, reducing the notional value from $200.0 million to $150.0 million. As discussed in Note 11 (Commitments and Contingencies), the Company manages the annual barrel program by engaging domestic and foreign cooperages to provide specified barrel quantities on agreed dates. Some of these invoices are paid in Euros. In order to reduce the foreign exchange risk associated with the Euro to U.S. Dollar conversion rate, the Company enters into foreign currency forward contracts aligning settlement dates with expected barrel delivery and the anticipated payments to various coopers. The total notional amount of the Company’s derivative instruments outstanding were as follows: (in thousands) April 30, July 31, Derivative instruments not designated as hedging instruments Interest rate swap contracts $ 250,000 $ 300,000 Foreign currency forward contracts 2,369 2,240 $ 252,369 $ 302,240 Results of Period Derivative Activity The estimated fair value and classification of derivative instruments on the accompanying Condensed Consolidated Statements of Financial Position are as follows: (in thousands) April 30, July 31, Derivative instruments not designated as hedging instruments Classification Interest rate swap contracts Derivative instrument Current liability $ (1,008) $ (5,376) Derivative instrument Other long-term liabilities (538) (1,065) Total interest rate swap contract liability $ (1,546) $ (6,441) Foreign currency forward contracts Derivative instrument Other current assets $ 41 $ 118 Total foreign currency contract asset $ 41 $ 118 The amounts and classification of the gains and losses in the Condensed Consolidated Statements of Operations related to derivative instruments not designated as hedging instruments are as follows: Three months ended April 30, Nine months ended April 30, (in thousands) Classification 2021 2020 2021 2020 Interest rate swap contracts Other (income) expense, net $ (1,949) $ 2,985 $ (4,895) $ 3,524 Foreign currency forward contracts Other (income) expense, net (41) 50 77 (96) Total (gains) losses $ (1,990) $ 3,035 $ (4,818) $ 3,428

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Apr. 30, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The Company applies a fair value hierarchy pursuant to ASC 820, Fair Value Measurement, which consists of three levels of inputs that may be used to measure fair value: Level 1 Inputs to fair value are quoted prices in active markets for identical assets or liabilities; Level 2 Inputs to fair value are based on observable data other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data such as interest rates or yield curves for substantially the full term of the instrument; Level 3 Inputs to fair value are based on unobservable data for the instrument and are supported by little or no market activity. Following is a description of the valuation methodologies used for instruments measured at fair value in the financial statements, as well as the general classification of such instruments under the valuation hierarchy. Interest rate swap contracts: The fair value of the Company’s interest rate swap agreement is estimated with the assistance of a third party, using inputs that can be corroborated by observable market data (Level 2 of the fair value hierarchy). Foreign currency forward contracts: The fair value of the Company’s outstanding foreign currency forward contracts is estimated with the assistance of a third party, using inputs that can be corroborated by observable market data (Level 2 of the fair value hierarchy). Deferred compensation plan: Contributions to the Company’s deferred compensation plan are managed by a third-party administrative agent. The fair value of the total contributed plan assets and liabilities are based on inputs that can be corroborated by observable market data (Level 2 of the fair value hierarchy). The Company’s other financial instruments consist mainly of cash, accounts receivable, accounts payable, accrued expenses, and debt. The carrying value of all financial instruments, except debt, approximates fair value due to the short-term nature of these assets and liabilities. The carrying value of the Company's debt approximates fair value as the interest rates are variable and reflective of market rates. Debt is categorized as a Level 2 liability within the fair value hierarchy. The Company’s assets and liabilities measured and recorded at fair value on a recurring basis at April 30, 2021, were as follows: (in thousands) Fair Value Measurements Using: Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs Total Assets Foreign currency forward contracts $ — $ 41 $ — $ 41 Deferred compensation plan asset — 1,701 — 1,701 Liabilities Interest rate swap contracts $ — $ 1,546 $ — $ 1,546 Deferred compensation liability — 2,011 — 2,011 The Company’s assets and liabilities measured and recorded at fair value on a recurring basis at July 31, 2020, were as follows: (in thousands) Fair Value Measurements Using: Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs Total Assets Foreign currency forward contracts $ — $ 118 $ — $ 118 Deferred compensation plan asset — 1,416 — 1,416 Liabilities Interest rate swap contracts $ — $ 6,441 $ — $ 6,441 Deferred compensation liability — 1,576 — 1,576 For the periods presented, the Company did not identify any transfers of assets or liabilities between fair value measurement levels. Transfers between fair value measurement levels are recognized at the end of each reporting period.

Commitment and Contingencies

Commitment and Contingencies	9 Months Ended
	Apr. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Operating Leases The Company leases approximately 150 acres of vineyard property in California under various third-party operating lease agreements, with terms ranging from two At April 30, 2021, the future minimum payments under the non-cancelable operating lease agreements by fiscal year are as follows: (in thousands) Remaining portion of 2021 $ 1,313 2022 4,085 2023 3,981 2024 3,721 2025 3,442 Thereafter (collectively) 8,580 Total $ 25,122 Long-Term Purchase Contracts The Company has entered into long-term grape purchase contracts with various growers to supply a significant portion of its future grape requirements. The lengths of the contracts typically vary from one Purchase Commitments The Company has ongoing commitments to purchase approximately 5,000 barrels for a total of $5.5 million, of which approximately $5.1 million will be paid in Euros. In order to reduce the foreign exchange risk associated with the Euro to U.S. Dollar conversion rate, the Company entered into foreign currency forward contracts aligning settlement dates with expected barrel delivery and the anticipated payments to various coopers. The Company does not enter into these contracts for speculative purposes. Gains and losses on these contracts are recorded in the Consolidated Statements of Operations. See Note 9 (Derivative Instruments) for the total notional value and impact on the current period consolidated financial statements due to foreign currency forward contracts. The Company enters into various contracts with third-parties for custom crush, storage and mobile bottling services. The costs related to these contracts are recorded in the period the service is provided. The contracts for custom crush services typically have minimums that the Company is required to pay if certain grape volume thresholds are not delivered. The Company does not record these minimums related to service contracts as contingent liabilities on the Condensed Consolidated Statements of Financial Position given the harvest yield size and resulting volumes of grape deliveries are not known or estimable until harvest, when all related contingencies would be resolved. COVID-19 In March 2020, the World Health Organization declared a global pandemic due to the spread of COVID-19, the disease caused by a novel strain of virus. During the pandemic, the Company incurred incremental costs during periods of capacity restrictions or mandatory closure for the three months and nine months ended April 30, 2021. These costs include tasting room expenses and other immaterial costs. The Company continues to monitor the impacts of COVID-19, as the situation is evolving rapidly. The estimates and assumptions made by Management to quantify the effect of COVID-19 disruption are based on available information at the time each assumption is made. At this time, the Company is unable to fully estimate the long-term impacts to the business, financial condition, operational results or future cash flows, as the pandemic is ongoing in all markets in which the Company operates. Contingent Liabilities The Company evaluates pending or threatened litigation, operational events which could result in regulatory or civil penalties, environmental risks, and other sources of potential contingent liabilities during the year. In accordance with applicable accounting guidance, the Company establishes an accrued liability when those matters present loss contingencies which are both probable and reasonably estimable. As of April 30, 2021, there were no material contingent obligations requiring accrual or disclosure. In the ordinary course of business, the Company enters into agreements containing standard indemnification provisions. The aggregate maximum potential future liability of the Company under such indemnification provisions is uncertain, as these involve potential future claims against the Company that have not occurred. The Company expects the risk of any future obligations under these indemnification provisions to be remote. As of April 30, 2021 and July 31, 2020, no amounts have been accrued related to such indemnification provisions.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Apr. 30, 2021
Related Party Transactions [Abstract]
Related Party Transactions	Related Party TransactionsIn February 2021, the Company’s Board of Managers declared a $100.0 million cash dividend to the Company's parent at the time of the declaration and, prior to the IPO, the Company's sole stockholder. On February 24, 2021, the Company paid the dividend using funds drawn under the Revolver Facility.

Equity-Based Compensation

Equity-Based Compensation	9 Months Ended
	Apr. 30, 2021
Share-based Payment Arrangement [Abstract]
Equity-Based Compensation	Equity-Based Compensation 2016 Equity Incentive Plan The Board of Managers of Mallard Holdco, LLC, the entity which wholly owned The Duckhorn Portfolio, Inc. before the Company's IPO, approved the issuance of profit interest units ("Class M Common Units", "awards" or "units") to certain employees of the Company. The units, issued in accordance with the 2016 Equity Incentive Plan ("2016 Plan"), were considered equity awards for purposes of calculating compensation expense, and equity-classified in the Condensed Consolidated Statements of Financial Position. The units awarded in the first grant vest ratably by 20% on each anniversary of the vesting date, subject to continued service through each vesting date ("Time-Based Units"). The units awarded in the second grant were subject to both a service and a performance condition specific to the investors having achieved specified levels of return on investment ("Performance-Based Units"). Upon consummation of the IPO, several events occurred around the previously awarded 2016 Plan units. The performance and market conditions were considered probable at the time of the IPO and the acceleration clause in the awards was triggered, resulting in an acceleration of the requisite service period from five years to four years. One tranche of awards under the plan was accelerated by the Board of Directors to align the vesting periods of all 2016 Plan awards. Lastly, the Class M Common Units were exchanged, on a value for value basis, for common shares of the Company post-IPO and further by unrestricted or restricted shares, depending on the satisfaction of the respective service period vesting. The changes to these awards were deemed to be Type I modification events under ASC Topic 718. Accordingly, the Company recognized catch-up equity-based compensation expense in the third quarter of Fiscal 2021, including incremental fair value resulting from the modification, as applicable to each award grant, amounting to a cumulative catch-up expense of $8.5 million presented in selling, general and administrative expenses in the third quarter of the current fiscal year. In connection with the adoption of the Company's 2021 Equity Plan, discussed below, the Company will no longer grant additional awards under the 2016 Plan. However, the terms and conditions of the 2016 Plan will continue to govern the previously granted awards, to the extent applicable. Class M Units Activity for the units is shown below: Time-Based Units Weighted-Average Grant-Date Fair Value Unvested as of July 31, 2020 14,640,454 $ 0.16 Granted — — Vested 14,640,454 0.16 Forfeited — — Unvested as of April 30, 2021 — $ — Performance-Based Units Weighted-Average Grant-Date Fair Value Outstanding as of July 31, 2020 7,203,820 $ 0.19 Granted — — Vested 2,881,528 0.19 Forfeited — — Exchanged (4,322,292) 0.19 Outstanding as of April 30, 2021 — $ — The total fair value of Class M Units that vested during the nine months ended April 30, 2021 was $2.9 million. Restricted Shares As discussed above, the unvested Class M Units were exchanged for restricted shares of the Company. A summary of the restricted shares is shown below: Performance-Based Units Weighted-Average Grant-Date Fair Value Unvested as of July 31, 2020 — $ — Granted — — Vested — — Forfeited — — Exchanged 665,389 15.00 Unvested as of April 30, 2021 665,389 $ 15.00 The Company recognized equity compensation expense related to the 2016 Plan in selling, general and administrative expenses due to units vesting over their requisite service periods, excluding the incremental expense related to modification accounting disclosed above, in the aggregate amounts of $0.2 million and $0.8 million for the three months and nine months ended April 30, 2021, respectively, and $0.3 million and $0.9 million for the three months and nine months ended April 30, 2020, respectively. The total unrecognized compensation expense related to the 2016 Plan was $0.7 million as of April 30, 2021, which is expected to be recognized over a weighted-average period of one year. 2021 Equity Incentive Plan The Board of Directors approved the 2021 Equity Incentive Plan ("2021 Plan"), which allows Management to grant various stock and stock-based awards. A total of 14,003,560 shares of the Company's common stock are available for issuance under the 2021 Plan. On March 17, 2021 restricted stock units and stock options were granted to certain employees of the Company as well as certain founders and directors (collectively "grants"). The grants, are considered equity awards for purposes of calculating compensation expense, and are equity-classified in the Condensed Consolidated Statements of Financial Position. The grants awarded vest ratably by 25% on each anniversary of the vesting date, subject to continued service through each vesting date, consistent with the Company's policy related to the 2016 Plan, forfeitures will be recorded as they occur. Stock options granted under the 2021 Plan will expire ten years from the date of the grant. The following assumptions were applied in the Black-Scholes option pricing model to estimate the grant-date fair value of the stock options granted in nine months ended April 30, 2021. Expected term (in years) (a) 6.25 Expected dividend yield (b) — % Risk-free interest rate (c) 1.09 % Expected volatility (d) 25.00 % Stock price $ 15.00 ________________________________________________ (a) Calculated as the midpoint between the weighted-average time to vest and the time to expiration. (b) The Company has not historically paid and does not expect to pay dividends in the foreseeable future. (c) The risk-free rate was estimated from the U.S. Constant Maturity Treasury Yield Curve in effect at the grant date. (d) The expected volatility was estimated based on analysis of the historical and implied volatility of a group of guideline public companies deemed to be comparable public peers within the Company’s industry. Stock Options Stock option activity and activity regarding shares available for grant under the 2021 Plan is shown below: Shares Available for Grant Number of Options Outstanding Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life Aggregate Intrinsic Value Balance as of July 31, 2020 — — $ — — $ — Shares authorized 14,003,560 — — — — Options granted (1,194,224) 1,194,224 15.00 — — Restricted stock units granted (433,705) — — — — Options vested — — — — — Forfeited — — — — — Balance as of April 30, 2021 12,375,631 1,194,224 $ 15.00 9.9 $ 4,431 The Company recognized equity compensation expense related to the 2021 Plan stock options in selling, general, and administrative expense, due to units vesting over their requisite service periods, of $0.1 million for the three months and nine months ended April 30, 2021. The total unrecognized compensation expense related to the 2021 Plan stock options was $4.7 million as of April 30, 2021, which is expected to be recognized over a weighted-average period of 3.9 years. The weighted-average grant-date fair value of options granted for the nine months ended April 30, 2021 was $4.07. No options were vested and exercisable as of April 30, 2021. Restricted Stock Units Restricted stock unit ("RSU") grant activity under the 2021 Plan is shown below: Number of Shares Weighted-Average Grant-Date Fair Value per Share Unvested as of July 31, 2020 — $ — Granted 433,705 15.00 Vested — — Forfeited — — Unvested as of April 30, 2021 433,705 $ 15.00 The Company recognized equity compensation expense related to the 2021 Plan RSUs in selling, general, and administrative expense, due to units vesting over their requisite service periods, of $0.2 million for the three months and nine months ended April 30, 2021. The total unrecognized compensation expense related to the 2021 Plan RSUs was $6.3 million as of April 30, 2021, which is expected to be recognized over a weighted-average period of 3.6 years. Employee Stock Purchase Plan In connection with the IPO, the Company adopted the 2021 Employee Stock Purchase Plan ("ESPP"), through which eligible employees may purchase shares of the Company's common stock at a discount through accumulated payroll deductions. A total of 1,250,509 shares of the Company's common stock are available for issuance and sale to eligible employees under the ESPP. Unless otherwise determined by the Board of Directors, in their sole discretion, each offering period and each purchase period will commence on or around August 1 and February 1, and end approximately six months later on the last business date in January or July, as applicable of each year. The last business date of each offering period will be an exercise date. The timing of an initial offering period has not yet been determined.

Casualty Gain

Casualty Gain	9 Months Ended
	Apr. 30, 2021
Unusual or Infrequent Items, or Both [Abstract]
Casualty Gain	Casualty Gain Wildfires Several wildfires occurred in northern California in the first quarter of Fiscal 2021. Other than smoke exposure to unharvested grapes, the Company's owned vineyards did not sustain damage during the fires. Fire and smoke exposure related expenses offset by crop insurance proceeds received totaling $1.2 million are reported on the casualty gain, net line in the Condensed Consolidated Statement of Operations for the nine months ended April 30, 2021. Smoke and fire damage to vineyards in the primary markets where the Company sources fruit rendered some of the available grapes unacceptable for the Company’s production needs. Management cannot yet estimate the full, future impact of wildfire-related disruption to the 2020 harvest. Flood The Company incurred losses in February 2019 due to a flood at a winery. The facilities include production, storage, hospitality and administrative spaces. The flood resulted in damage to inventory, machinery and equipment and site improvements. The Company also incurred incremental and direct remediation costs. The Company filed an insurance claim with respect to inventory, storage vessels and other related costs during the year ended July 31, 2019. On December 11, 2020, the Company entered into an agreement with its insurer to resolve the open flood insurance claim, pursuant to which the claim associated with the losses would be closed and the Company would receive an aggregate of $32.5 million. In January 2021, pursuant to such agreement, the Company received the remaining $8.1 million of cash proceeds, fully resolving the flood insurance claim. The Company incurred incremental charges in the nine months ended April 30, 2021 and 2020, offset by insurance proceeds received, which were reported on the casualty gain, net line item in the Condensed Consolidated Statement of Operations.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Apr. 30, 2021
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Basic earnings per share is calculated by dividing the net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share reflects the dilution that would occur if any potentially dilutive instruments were exercised or converted into shares of common stock. The following is a reconciliation of the Company's basic and diluted income per share calculation: Three months ended April 30, Nine months ended April 30, (in thousands, except share and per share amounts) 2021 2020 2021 2020 Numerator - Net income attributable to The Duckhorn Portfolio, Inc. $ 9,022 $ 11,619 $ 48,548 $ 35,100 Denominator: Weighted average number of shares of common stock outstanding - basic 107,976,264 101,713,460 103,755,180 101,713,460 Dilutive stock options and restricted stock (a) 427,745 — 368,090 — Weighted average number of shares of common stock outstanding - assuming dilution 108,404,009 101,713,460 104,123,270 101,713,460 Earnings per share attributable to The Duckhorn Portfolio, Inc. Basic $ 0.08 $ 0.11 $ 0.47 $ 0.35 Diluted $ 0.08 $ 0.11 $ 0.47 $ 0.35 ________________________________________________ (a) Calculated using the treasury stock method. There were no outstanding common stock awards deemed anti-dilutive for the three and nine months ended April 30, 2021 and April 30, 2020.

Income Taxes

Income Taxes	9 Months Ended
	Apr. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Income tax expense was $5.6 million and $19.7 million, an effective tax rate of 38.4% and 28.9% for the three months and nine months ended April 30, 2021, respectively, compared to $4.2 million and $12.6 million, an effective tax rate of 26.5% and 26.4% for the three months and nine months ended April 30, 2020, respectively. The effective tax rates for all periods presented were higher than the federal statutory rate of 21% due to the impact of state income taxes and equity-based compensation expense.

Basis of Presentation and Sig_2

Basis of Presentation and Significant Accounting Policies (Policies)	9 Months Ended
	Apr. 30, 2021
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The Company’s condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and Article 10 of the Securities and Exchange Commission’s Regulation S-X. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP may be condensed or omitted. These condensed consolidated financial statements have been prepared on the same basis as the Company's audited annual financial statements and, in the opinion of Management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the Company's financial information for the interim periods presented. These interim results are not necessarily indicative of the results to be expected for the year ending July 31, 2021, for any other interim period or for any future year.
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the accounts of The Duckhorn Portfolio, Inc. and its subsidiaries, including a consolidated variable interest entity ("VIE") of which the Company has determined it is the primary beneficiary. All intercompany balances and transactions are eliminated in consolidation.
Accounting Estimates	Accounting Estimates The preparation of condensed consolidated financial statements requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates include, but are not limited to, the following: useful lives and recoverability of long-lived assets, inventory obsolescence and reserves, capitalized indirect inventory costs, allowance for doubtful accounts receivable, calculation of accrued liabilities, customer incentive reserves, uncertain tax positions, contingent liabilities, fair value of assets and liabilities acquired in connection with business combinations, equity-based compensation and deferred revenues. Actual results could differ from those estimates.
Preferred Stock	Preferred StockThe Company has 100,000,000 shares of $0.01 par value preferred stock authorized, none of which are issued and outstanding.
Deferred Offering Costs	Deferred Offering CostsDeferred offering costs consisted of legal, accounting, underwriting fees and other incurred that were directly related to the IPO.
Net Income per Share	Net Income per ShareIn accordance with Accounting Standards Codification ("ASC") Topic 260, Earnings Per Share, net income per share is calculated by dividing net income by the weighted average number of ordinary shares outstanding during the period, excluding forfeitures. Diluted earnings per common share is computed using the weighted-average number of common shares outstanding and dilutive common shares, such as those issuable upon exercise of stock option and upon the vesting of restricted stock.
Variable Interest Entities	Variable Interest EntitiesThe Company evaluates its ownership, contractual relationships and other interests in entities to determine the nature and extent of the interests, whether such interests are variable interests and whether the entities are VIEs in accordance with ASC 810, Consolidations. These evaluations can be complex and involve Management judgment as well as the use of estimates and assumptions based on available historical information, among other factors. Based on these evaluations, if the Company determines that it is the primary beneficiary of a VIE, the entity is consolidated into the financial statements.
Recent Accounting Pronouncements	Recent Accounting Pronouncements As an “emerging growth company,” the Jumpstart Our Business Startups Act, or the JOBS Act, allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected to use the adoption dates applicable to private companies. As a result, the Company’s financial statements may not be comparable to the financial statements of issuers who are required to comply with the effective date for new or revised accounting standards that are applicable to public companies. Recently Adopted Accounting Pronouncements: In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . The objective of the guidance is to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and to provide more consistent application to improve the comparability of financial statements. The Company early adopted this standard as of the third quarter of the current fiscal year, which is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. There were no material impacts to the financial statements or disclosures as a result of the early adoption of this ASU. Recently Issued Accounting Pronouncements Not Yet Adopted: In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-02, Leases (Topic 842) , and several amendments, codified as ASC 842, which supersedes prior guidance on accounting for leases under FASB ASC 840, Leases. ASU No. 2016-02, among other provisions, (i) requires lessees to classify leases as either finance or operating leases, (ii) generally requires all leases to be recorded on the Consolidated Statements of Financial Position through the recognition of right-of-use assets and corresponding lease liabilities and (iii) expands mandatory qualitative and quantitative disclosures regarding leasing activities. The FASB has recently issued ASU No. 2020-05, “Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842) Effective dates for certain entities”, which extends the effective date for all other entities, for annual reporting periods beginning after December 15, 2021, and for interim periods within fiscal years beginning after December 15, 2022. The amended standard is effective for the Company beginning with the year ended July 31, 2023. Early adoption is permitted. The Company’s assessment of the lease standard’s impact on the consolidated financial statements is ongoing, and is expected to result in the recognition of right of use assets and lease liabilities related to the Company’s operating leases. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments–Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, and also issued subsequent amendments to the initial guidance, collectively, ASC 326, to replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that requires the reflection of expected credit losses and will also require consideration of a broader range of reasonable and supportable information to determine credit loss estimates. For many entities with financial instruments, the standard will require the use of a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses, which may result in the earlier recognition of credit losses on financial instruments. This guidance will be effective for the Company beginning with the year ended July 31, 2024, with early adoption permitted. The Company is currently evaluating the impact this standard could have on the consolidated financial statements. In March 2020, FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) . In order to ease the potential burden in accounting for reference rate reform, ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform, if certain criteria are met. ASU 2020-04 applies only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued. The amendment is effective immediately and may be applied prospectively through December 31, 2022. The Company is currently evaluating the impact of reference rate reform and the optional expedients provided by this amendment on its contracts.
Revenue	The Company’s net sales reflect the sale of wine domestically in the U.S. to wholesale distributors, wholesale accounts or DTC, as well as sales of wine to export distributors that sell internationally. Under ASC Topic 606, Revenue from contracts with customers ("ASC 606"), the Company recognizes revenue when control of the promised good is transferred to the customer in an amount that reflects the consideration for which the Company is expected to be entitled to receive in exchange for those products. Each
Derivative Instruments	The changes in estimated fair values of derivative instruments result from changes in interest rates and foreign currency exchange rates. Such changes serve to offset exposure in related business assets or liabilities. The Company is exposed to credit loss in the event of nonperformance by a counterparty. Certain of the Company's derivative instruments are subject to master netting agreements. In certain circumstances, this arrangement allows the Company to net-settle amounts payable or receivable related to multiple derivative transactions with the same counterparty. The fair values of derivative instruments are presented on a gross basis, even when the derivative instruments are subject to master netting arrangements. Collateral is generally not required of the Company or of the counterparties to the master netting agreements
Fair Value Measurements	The Company applies a fair value hierarchy pursuant to ASC 820, Fair Value Measurement, which consists of three levels of inputs that may be used to measure fair value: Level 1 Inputs to fair value are quoted prices in active markets for identical assets or liabilities; Level 2 Inputs to fair value are based on observable data other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data such as interest rates or yield curves for substantially the full term of the instrument; Level 3 Inputs to fair value are based on unobservable data for the instrument and are supported by little or no market activity.

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Apr. 30, 2021
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table presents the percentages of consolidated net sales disaggregated by sales channels: Three months ended April 30, Nine months ended April 30, 2021 2020 2021 2020 Wholesale - Distributors 59.5 % 52.7 % 64.4 % 59.4 % Wholesale - California direct to retail (a) 15.7 % 17.1 % 16.5 % 18.1 % DTC (b) 24.8 % 30.2 % 19.1 % 22.5 % Net sales 100.0 % 100.0 % 100.0 % 100.0 % ________________________________________________ (a) Includes immaterial sales related to bulk, grape and merchandise sales.
Schedule of Changes in Contract Liabilities	The following table reflects the changes in the contract liability balance during the nine months ended April 30, 2021 and the year ended July 31, 2020. (in thousands) April 30, July 31, Outstanding at beginning of period $ 4,148 $ 3,863 Increase (decrease) attributable to: Upfront payments 27,866 34,836 Revenue recognized (31,059) (34,328) Refund (188) (223) Outstanding at end of period $ 767 $ 4,148

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Apr. 30, 2021
Inventory Disclosure [Abstract]
Schedule of Inventory, Current	Inventories were comprised of the following: (in thousands) April 30, July 31, Finished goods Bottled wine $ 91,122 $ 100,272 Merchandise 360 408 Work in progress Bulk wine 167,839 128,436 Packaging 3,383 2,945 Overhead (261) 2,225 Raw materials Deferred crop costs 6,382 11,025 Total $ 268,825 $ 245,311

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Apr. 30, 2021
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and equipment was comprised of the following major components as of: (in thousands) April 30, July 31, Land $ 120,063 $ 120,063 Buildings & improvements 68,307 66,057 Vineyards & improvements 28,734 27,430 Machinery & equipment 48,485 44,147 Barrels 29,321 25,889 Total depreciable property and equipment 294,910 283,586 Less: accumulated depreciation and amortization (58,539) (48,171) Total depreciable property and equipment, net 236,371 235,415 Construction in progress 4,604 7,336 Property and equipment, net $ 240,975 $ 242,751

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	9 Months Ended
	Apr. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets	Intangible assets were comprised of the following components: April 30, 2021 (in thousands) Gross carrying amount Accumulated amortization Impairment charges Net Definite-lived intangible assets Customer relationships $ 92,720 $ 32,384 $ — $ 60,336 Leasehold interests 1,572 340 — 1,232 Total definite-lived intangible assets 94,292 32,724 — 61,568 Indefinite-lived intangible assets Trade names 139,600 — — 139,600 Lane rights 1,300 — — 1,300 Total indefinite-lived intangible assets 140,900 — — 140,900 Total other intangible assets $ 235,192 $ 32,724 $ — $ 202,468 July 31, 2020 (in thousands) Gross carrying amount Accumulated amortization Impairment charges Net Definite-lived intangible assets Customer relationships $ 92,720 $ 26,715 $ — $ 66,005 Leasehold interests 1,572 247 — 1,325 Total definite-lived intangible assets 94,292 26,962 — 67,330 Indefinite-lived intangible assets Trade names 151,430 — 11,830 139,600 Lane rights 1,300 — — 1,300 Total indefinite-lived intangible assets 152,730 — 11,830 140,900 Total other intangible assets $ 247,022 $ 26,962 $ 11,830 $ 208,230
Schedule of Indefinite-Lived Intangible Assets	Intangible assets were comprised of the following components: April 30, 2021 (in thousands) Gross carrying amount Accumulated amortization Impairment charges Net Definite-lived intangible assets Customer relationships $ 92,720 $ 32,384 $ — $ 60,336 Leasehold interests 1,572 340 — 1,232 Total definite-lived intangible assets 94,292 32,724 — 61,568 Indefinite-lived intangible assets Trade names 139,600 — — 139,600 Lane rights 1,300 — — 1,300 Total indefinite-lived intangible assets 140,900 — — 140,900 Total other intangible assets $ 235,192 $ 32,724 $ — $ 202,468 July 31, 2020 (in thousands) Gross carrying amount Accumulated amortization Impairment charges Net Definite-lived intangible assets Customer relationships $ 92,720 $ 26,715 $ — $ 66,005 Leasehold interests 1,572 247 — 1,325 Total definite-lived intangible assets 94,292 26,962 — 67,330 Indefinite-lived intangible assets Trade names 151,430 — 11,830 139,600 Lane rights 1,300 — — 1,300 Total indefinite-lived intangible assets 152,730 — 11,830 140,900 Total other intangible assets $ 247,022 $ 26,962 $ 11,830 $ 208,230

Accounts Payable and Accrued _2

Accounts Payable and Accrued Expenses (Tables)	9 Months Ended
	Apr. 30, 2021
Payables and Accruals [Abstract]
Schedule of Accounts Payable and Accrued Liabilities	The Company’s accounts payable balance consisted of the following amounts: (in thousands) April 30, July 31, Distributor invoices $ 1,720 $ 881 Bulk invoices 1,570 599 Other 4,549 2,253 Total $ 7,839 $ 3,733 The Company’s accrued expenses balance consisted of the following amounts: (in thousands) April 30, July 31, Trade spend (a) $ 10,349 $ 6,246 Barrel purchase — 1,917 Deferred compensation liability (b) 2,011 1,576 Income tax payable 6,578 349 Accrued invoices and other accrued expenses 9,070 5,423 Total $ 28,008 $ 15,511 ________________________________________________ (a) Trade spend refers to estimated amounts the Company owes to distributors for depletion-based incentives granted for meeting specific depletion targets. See further discussion in Note 2 (Basis of Presentation and Significant Accounting Policies). (b) The Company intends to use the cash surrender value life insurance policies in settling its deferred compensation plan liability. The cash surrender value of the life insurance policies was $1.7 million and $1.4 million at April 30, 2021 and July 31, 2020, respectively.

Derivative Instruments (Tables)

Derivative Instruments (Tables)	9 Months Ended
	Apr. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Interest Rate Derivatives	As of April 30, 2021, the Company held the following interest rate swap agreements, which fixed the interest rate on the applicable notional amount of outstanding variable rate debt: Notional amount (in thousands) Interest rate Effective date Expiration date $150,000 2.781% December 31, 2020 July 31, 2021 $100,000 0.487% March 21, 2020 March 23, 2023
Schedule of Derivative Instruments	The total notional amount of the Company’s derivative instruments outstanding were as follows: (in thousands) April 30, July 31, Derivative instruments not designated as hedging instruments Interest rate swap contracts $ 250,000 $ 300,000 Foreign currency forward contracts 2,369 2,240 $ 252,369 $ 302,240
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value	The estimated fair value and classification of derivative instruments on the accompanying Condensed Consolidated Statements of Financial Position are as follows: (in thousands) April 30, July 31, Derivative instruments not designated as hedging instruments Classification Interest rate swap contracts Derivative instrument Current liability $ (1,008) $ (5,376) Derivative instrument Other long-term liabilities (538) (1,065) Total interest rate swap contract liability $ (1,546) $ (6,441) Foreign currency forward contracts Derivative instrument Other current assets $ 41 $ 118 Total foreign currency contract asset $ 41 $ 118
Derivative Instruments, Gain (Loss)	The amounts and classification of the gains and losses in the Condensed Consolidated Statements of Operations related to derivative instruments not designated as hedging instruments are as follows: Three months ended April 30, Nine months ended April 30, (in thousands) Classification 2021 2020 2021 2020 Interest rate swap contracts Other (income) expense, net $ (1,949) $ 2,985 $ (4,895) $ 3,524 Foreign currency forward contracts Other (income) expense, net (41) 50 77 (96) Total (gains) losses $ (1,990) $ 3,035 $ (4,818) $ 3,428

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Apr. 30, 2021
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The Company’s assets and liabilities measured and recorded at fair value on a recurring basis at April 30, 2021, were as follows: (in thousands) Fair Value Measurements Using: Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs Total Assets Foreign currency forward contracts $ — $ 41 $ — $ 41 Deferred compensation plan asset — 1,701 — 1,701 Liabilities Interest rate swap contracts $ — $ 1,546 $ — $ 1,546 Deferred compensation liability — 2,011 — 2,011 The Company’s assets and liabilities measured and recorded at fair value on a recurring basis at July 31, 2020, were as follows: (in thousands) Fair Value Measurements Using: Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs Total Assets Foreign currency forward contracts $ — $ 118 $ — $ 118 Deferred compensation plan asset — 1,416 — 1,416 Liabilities Interest rate swap contracts $ — $ 6,441 $ — $ 6,441 Deferred compensation liability — 1,576 — 1,576

Commitment and Contingencies (T

Commitment and Contingencies (Tables)	9 Months Ended
	Apr. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases	At April 30, 2021, the future minimum payments under the non-cancelable operating lease agreements by fiscal year are as follows: (in thousands) Remaining portion of 2021 $ 1,313 2022 4,085 2023 3,981 2024 3,721 2025 3,442 Thereafter (collectively) 8,580 Total $ 25,122

Equity-Based Compensation (Tabl

Equity-Based Compensation (Tables)	9 Months Ended
	Apr. 30, 2021
Share-based Payment Arrangement [Abstract]
Schedule of Nonvested Share Activity	Activity for the units is shown below: Time-Based Units Weighted-Average Grant-Date Fair Value Unvested as of July 31, 2020 14,640,454 $ 0.16 Granted — — Vested 14,640,454 0.16 Forfeited — — Unvested as of April 30, 2021 — $ — Performance-Based Units Weighted-Average Grant-Date Fair Value Outstanding as of July 31, 2020 7,203,820 $ 0.19 Granted — — Vested 2,881,528 0.19 Forfeited — — Exchanged (4,322,292) 0.19 Outstanding as of April 30, 2021 — $ —
Nonvested Restricted Stock Shares Activity	As discussed above, the unvested Class M Units were exchanged for restricted shares of the Company. A summary of the restricted shares is shown below: Performance-Based Units Weighted-Average Grant-Date Fair Value Unvested as of July 31, 2020 — $ — Granted — — Vested — — Forfeited — — Exchanged 665,389 15.00 Unvested as of April 30, 2021 665,389 $ 15.00
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	The following assumptions were applied in the Black-Scholes option pricing model to estimate the grant-date fair value of the stock options granted in nine months ended April 30, 2021. Expected term (in years) (a) 6.25 Expected dividend yield (b) — % Risk-free interest rate (c) 1.09 % Expected volatility (d) 25.00 % Stock price $ 15.00 ________________________________________________ (a) Calculated as the midpoint between the weighted-average time to vest and the time to expiration. (b) The Company has not historically paid and does not expect to pay dividends in the foreseeable future. (c) The risk-free rate was estimated from the U.S. Constant Maturity Treasury Yield Curve in effect at the grant date. (d) The expected volatility was estimated based on analysis of the historical and implied volatility of a group of guideline public companies deemed to be comparable public peers within the Company’s industry.
Share-based Payment Arrangement, Option, Activity	Stock option activity and activity regarding shares available for grant under the 2021 Plan is shown below: Shares Available for Grant Number of Options Outstanding Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life Aggregate Intrinsic Value Balance as of July 31, 2020 — — $ — — $ — Shares authorized 14,003,560 — — — — Options granted (1,194,224) 1,194,224 15.00 — — Restricted stock units granted (433,705) — — — — Options vested — — — — — Forfeited — — — — — Balance as of April 30, 2021 12,375,631 1,194,224 $ 15.00 9.9 $ 4,431
Share-based Payment Arrangement, Restricted Stock Unit, Activity	Restricted stock unit ("RSU") grant activity under the 2021 Plan is shown below: Number of Shares Weighted-Average Grant-Date Fair Value per Share Unvested as of July 31, 2020 — $ — Granted 433,705 15.00 Vested — — Forfeited — — Unvested as of April 30, 2021 433,705 $ 15.00

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Apr. 30, 2021
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic, by Common Class, Including Two Class Method	The following is a reconciliation of the Company's basic and diluted income per share calculation: Three months ended April 30, Nine months ended April 30, (in thousands, except share and per share amounts) 2021 2020 2021 2020 Numerator - Net income attributable to The Duckhorn Portfolio, Inc. $ 9,022 $ 11,619 $ 48,548 $ 35,100 Denominator: Weighted average number of shares of common stock outstanding - basic 107,976,264 101,713,460 103,755,180 101,713,460 Dilutive stock options and restricted stock (a) 427,745 — 368,090 — Weighted average number of shares of common stock outstanding - assuming dilution 108,404,009 101,713,460 104,123,270 101,713,460 Earnings per share attributable to The Duckhorn Portfolio, Inc. Basic $ 0.08 $ 0.11 $ 0.47 $ 0.35 Diluted $ 0.08 $ 0.11 $ 0.47 $ 0.35 ________________________________________________ (a) Calculated using the treasury stock method.

Description of Business (Detail

Description of Business (Details) $ / shares in Units, $ in Millions	Mar. 17, 2021USD ($)$ / sharesshares
Subsidiary, Sale of Stock [Line Items]
Deferred offering costs	$ 6.7
2016 Equity Incentive Plan
Subsidiary, Sale of Stock [Line Items]
Non-option equity instruments, outstanding, number (shares) | shares	42,579,137
IPO
Subsidiary, Sale of Stock [Line Items]
Sale of stock, number of shares issued in transaction | shares	13,300,000
Sale of stock, price per share (in dollars per share) | $ / shares	$ 15
Sale of stock, consideration received on transaction	$ 180.8
Underwriting discounts and commissions	12.5
Deferred offering costs	$ 6.7

Basis of Presentation and Sig_3

Basis of Presentation and Significant Accounting Policies (Details) $ / shares in Units, $ in Millions	Apr. 30, 2021USD ($)$ / sharesshares	Mar. 09, 2021	Jul. 31, 2020USD ($)	Mar. 17, 2021USD ($)
Accounting Policies [Line Items]
Stock split, conversion ratio		1,017,134.6
Preferred stock, shares authorized (shares)	100,000,000
Preferred stock, par or stated value per share (in dollars per share) | $ / shares	$ 0.01
Preferred stock, shares outstanding (shares)	0
Preferred stock, shares issued (shares)	0
Deferred offering costs | $				$ 6.7
Variable Interest Entity, Primary Beneficiary
Accounting Policies [Line Items]
Variable interest entity, ownership percentage	76.20%		76.20%
Variable interest entity, net assets | $	$ 2.2		$ 2.2

Revenue - Narrative (Details)

Revenue - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Apr. 30, 2021	Apr. 30, 2020	Apr. 30, 2021	Apr. 30, 2020
Revenue from Contract with Customer [Abstract]
Contract with customer, liability, consideration given to customers	$ 15.5	$ 12.7	$ 48.2	$ 35.8

Revenue - Disaggregation of Rev

Revenue - Disaggregation of Revenue (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2021USD ($)	Apr. 30, 2020USD ($)	Apr. 30, 2021USD ($)	Apr. 30, 2020USD ($)
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, percent	1	1	1	1
Revenue	$ 90,425	$ 68,720	$ 265,720	$ 218,417
Wholesale - Distributors
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, percent	0.595	0.527	0.644	0.594
Wholesale - California direct to retail
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, percent	0.157	0.171	0.165	0.181
DTC
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, percent	0.248	0.302	0.191	0.225
Shipping and Handling
Disaggregation of Revenue [Line Items]
Revenue	$ 1,300	$ 1,300	$ 2,300	$ 2,100

Revenue - Schedule of Change in

Revenue - Schedule of Change in Contract Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Apr. 30, 2021	Jul. 31, 2020
Change in Contract with Customer, Liability [Abstract]
Outstanding at beginning of period	$ 4,148	$ 3,863
Upfront payments	27,866	34,836
Revenue recognized	(31,059)	(34,328)
Refund	(188)	(223)
Outstanding at end of period	$ 767	$ 4,148

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Apr. 30, 2021	Jul. 31, 2020
Inventory [Line Items]
Inventories	$ 268,825	$ 245,311
Bottled wine
Inventory [Line Items]
Finished goods	91,122	100,272
Merchandise
Inventory [Line Items]
Finished goods	360	408
Bulk wine
Inventory [Line Items]
Work in progress	167,839	128,436
Packaging
Inventory [Line Items]
Work in progress	3,383	2,945
Overhead
Inventory [Line Items]
Work in progress	(261)	2,225
Deferred crop costs
Inventory [Line Items]
Raw materials	$ 6,382	$ 11,025

Inventories - Narrative (Detail

Inventories - Narrative (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Apr. 30, 2021	Jul. 31, 2020
Inventory Disclosure [Abstract]
Inventory, capitalized costs incurred	$ 9.8	$ 13.9

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Apr. 30, 2021	Jul. 31, 2020
Property, Plant and Equipment [Line Items]
Less: accumulated depreciation and amortization	$ (58,539)	$ (48,171)
Property and equipment, net	240,975	242,751
Depreciable Property, Plant and Equipment
Property, Plant and Equipment [Line Items]
Total depreciable property and equipment	294,910	283,586
Property and equipment, net	236,371	235,415
Land
Property, Plant and Equipment [Line Items]
Total depreciable property and equipment	120,063	120,063
Buildings & improvements
Property, Plant and Equipment [Line Items]
Total depreciable property and equipment	68,307	66,057
Vineyards & improvements
Property, Plant and Equipment [Line Items]
Total depreciable property and equipment	28,734	27,430
Machinery & equipment
Property, Plant and Equipment [Line Items]
Total depreciable property and equipment	48,485	44,147
Barrels
Property, Plant and Equipment [Line Items]
Total depreciable property and equipment	29,321	25,889
Construction in Progress
Property, Plant and Equipment [Line Items]
Total depreciable property and equipment	$ 4,604	$ 7,336

Property and Equipment - Narrat

Property and Equipment - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Apr. 30, 2021	Apr. 30, 2020	Apr. 30, 2021	Apr. 30, 2020
Property, Plant and Equipment [Abstract]
Depreciation	$ 0.3	$ 0.3	$ 0.9	$ 0.9

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2021	Apr. 30, 2020	Apr. 30, 2021	Apr. 30, 2020	Jul. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 425,209		$ 425,209		$ 425,209
Amortization of intangible assets	1,900	$ 1,900	5,800	$ 5,800
Finite-lived intangible asset, expected amortization, year one	7,700		7,700
Finite-lived intangible asset, expected amortization, year two	7,700		7,700
Finite-lived intangible asset, expected amortization, year three	7,700		7,700
Finite-lived intangible asset, expected amortization, year four	7,700		7,700
Finite-lived intangible asset, expected amortization, year five	$ 7,700		$ 7,700

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Apr. 30, 2021	Jul. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 94,292	$ 94,292
Accumulated amortization	32,724	26,962
Net	61,568	67,330
Indefinite-lived Intangible Assets [Line Items]
Gross carrying amount	140,900	152,730
Impairment charges	0	11,830
Indefinite-lived Intangible Assets (Excluding Goodwill), Total	140,900	140,900
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Gross carrying amount	235,192	247,022
Impairment charges	0	11,830
Net	202,468	208,230
Trade names
Indefinite-lived Intangible Assets [Line Items]
Gross carrying amount	139,600	151,430
Impairment charges	0	11,830
Indefinite-lived Intangible Assets (Excluding Goodwill), Total	139,600	139,600
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Impairment charges	0	11,830
Lane rights
Indefinite-lived Intangible Assets [Line Items]
Gross carrying amount	1,300	1,300
Indefinite-lived Intangible Assets (Excluding Goodwill), Total	1,300	1,300
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	92,720	92,720
Accumulated amortization	32,384	26,715
Net	60,336	66,005
Leasehold interests
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	1,572	1,572
Accumulated amortization	340	247
Net	$ 1,232	$ 1,325

Accounts Payable and Accrued _3

Accounts Payable and Accrued Expenses - Schedule of Accounts Payable (Details) - USD ($) $ in Thousands	Apr. 30, 2021	Jul. 31, 2020
Payables and Accruals [Abstract]
Distributor invoices	$ 1,720	$ 881
Bulk invoices	1,570	599
Other	4,549	2,253
Total	$ 7,839	$ 3,733

Accounts Payable and Accrued _4

Accounts Payable and Accrued Expenses - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Apr. 30, 2021	Jul. 31, 2020
Payables and Accruals [Abstract]
Trade spend	$ 10,349	$ 6,246
Barrel purchase	0	1,917
Deferred compensation liability	2,011	1,576
Income tax payable	6,578	349
Accrued invoices and other accrued expenses	9,070	5,423
Total	28,008	15,511
Cash surrender value of life insurance	$ 1,700	$ 1,400

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($) $ in Thousands	Aug. 17, 2020	Apr. 30, 2021	Apr. 30, 2020	Apr. 30, 2021	Apr. 30, 2020
Debt Instrument [Line Items]
Amortization of debt issuance costs		$ 400	$ 500	$ 1,221	$ 1,590
Loss on debt extinguishment				272	$ 0
Revolving Credit Facility
Debt Instrument [Line Items]
Current borrowing capacity		286,000		286,000
Additional borrowing capacity		$ 30,000		$ 30,000
Line of credit facility, interest rate at period end		4.30%		4.30%
Letter of Credit
Debt Instrument [Line Items]
Long term line of credit		$ 0		$ 0
Swingline Sub-Facility
Debt Instrument [Line Items]
Long term line of credit		$ 0		$ 0
First Lien Loan Agreement
Debt Instrument [Line Items]
Loss on debt extinguishment	$ 300
London Interbank Offered Rate (LIBOR) | First Lien Loan Agreement
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	1.90%

Derivative Instruments - Intere

Derivative Instruments - Interest Rate Swaps (Details) - USD ($) $ in Thousands	Apr. 30, 2021	Mar. 26, 2021	Mar. 25, 2021
Interest Rate Swap One
Derivative [Line Items]
Notional amount	$ 150,000	$ 150,000	$ 200,000
Interest rate	2.781%
Interest Rate Swap Two
Derivative [Line Items]
Notional amount	$ 100,000
Interest rate	0.487%

Derivative Instruments - Narrat

Derivative Instruments - Narrative (Details) - USD ($) $ in Thousands	Apr. 30, 2021	Mar. 26, 2021	Mar. 25, 2021
Interest Rate Swap One
Derivative [Line Items]
Notional amount	$ 150,000	$ 150,000	$ 200,000

Derivative Instruments - Total

Derivative Instruments - Total Notional Amount (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands	Apr. 30, 2021	Jul. 31, 2020
Derivative [Line Items]
Notional amount	$ 252,369	$ 302,240
Interest rate swap contracts
Derivative [Line Items]
Notional amount	250,000	300,000
Foreign currency forward contracts
Derivative [Line Items]
Notional amount	$ 2,369	$ 2,240

Derivative Instruments - Estima

Derivative Instruments - Estimated Fair Value and Classification of Derivative Instruments on the Condensed Consolidated Statements of Financial Position (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands	Apr. 30, 2021	Jul. 31, 2020
Interest rate swap contracts
Derivatives, Fair Value [Line Items]
Derivative liability	$ (1,546)	$ (6,441)
Foreign currency forward contracts
Derivatives, Fair Value [Line Items]
Derivative asset	41	118
Current Liability | Interest rate swap contracts
Derivatives, Fair Value [Line Items]
Derivative liability	(1,008)	(5,376)
Other Noncurrent Liabilities | Interest rate swap contracts
Derivatives, Fair Value [Line Items]
Derivative liability	(538)	(1,065)
Other Current Assets | Foreign currency forward contracts
Derivatives, Fair Value [Line Items]
Derivative asset	$ 41	$ 118

Derivative Instruments - Amount

Derivative Instruments - Amounts and Classification of the Gains and Losses in the Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2021	Apr. 30, 2020	Apr. 30, 2021	Apr. 30, 2020
Derivative [Line Items]
Total (gains) losses			$ 4,818	$ (3,427)
Not Designated as Hedging Instrument
Derivative [Line Items]
Total (gains) losses	$ (1,990)	$ 3,035	(4,818)	3,428
Interest rate swap contracts | Not Designated as Hedging Instrument | Other Nonoperating Income (Expense)
Derivative [Line Items]
Total (gains) losses	(1,949)	2,985	(4,895)	3,524
Foreign currency forward contracts | Not Designated as Hedging Instrument | Other Nonoperating Income (Expense)
Derivative [Line Items]
Total (gains) losses	$ (41)	$ 50	$ 77	$ (96)

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Apr. 30, 2021	Jul. 31, 2020
Assets
Foreign currency forward contracts	$ 41	$ 118
Deferred compensation plan asset	1,701	1,416
Liabilities
Interest rate swap contracts	1,546	6,441
Deferred compensation liability	2,011	1,576
Quoted Prices in Active Markets (Level 1)
Assets
Foreign currency forward contracts	0	0
Deferred compensation plan asset	0	0
Liabilities
Interest rate swap contracts	0	0
Deferred compensation liability	0	0
Significant Other Observable Inputs (Level 2)
Assets
Foreign currency forward contracts	41	118
Deferred compensation plan asset	1,701	1,416
Liabilities
Interest rate swap contracts	1,546	6,441
Deferred compensation liability	2,011	1,576
Significant Unobservable Inputs (Level 3)
Assets
Foreign currency forward contracts	0	0
Deferred compensation plan asset	0	0
Liabilities
Interest rate swap contracts	0	0
Deferred compensation liability	$ 0	$ 0

Commitment and Contingencies -

Commitment and Contingencies - Narrative (Details) barrel in Thousands, T in Thousands, $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Apr. 30, 2021USD ($)a	Apr. 30, 2020USD ($)	Apr. 30, 2021USD ($)abarrel	Apr. 30, 2020USD ($)	Oct. 31, 2020USD ($)T	Oct. 31, 2019USD ($)T
Commitments and Contingencies [Line Items]
Area of property (acre) | a	150		150
Operating lease, rent expense	$ 1	$ 1	$ 3	$ 3.1
Long-term purchase contract, amount purchased, mass | T					12	19
Purchase commitment, quantity | barrel			5
Purchase commitment, remaining amount committed	5.5		$ 5.5
Euro Member Countries, Euro
Commitments and Contingencies [Line Items]
Purchase commitment, remaining amount committed	$ 5.1		$ 5.1
Inventories
Commitments and Contingencies [Line Items]
Long-term purchase commitment, amount purchased, cost					$ 26.5	$ 51.1
Minimum
Commitments and Contingencies [Line Items]
Lease, term of contract			2 years
Long-term purchase contract, period			1 year
Maximum
Commitments and Contingencies [Line Items]
Lease, term of contract			30 years
Long-term purchase contract, period			4 years

Commitment and Contingencies _2

Commitment and Contingencies - Future Minimum Payments for Operating Leases (Details) $ in Thousands	Apr. 30, 2021USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remaining portion of 2021	$ 1,313
2022	4,085
2023	3,981
2024	3,721
2025	3,442
Thereafter (collectively)	8,580
Total	$ 25,122

Related Party Transactions - Na

Related Party Transactions - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Feb. 23, 2021	Apr. 30, 2021
Related Party Transactions [Abstract]
Cash dividend	$ 100,000	$ 100,000

Equity-Based Compensation - Nar

Equity-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	Mar. 17, 2021	Mar. 16, 2021	Apr. 30, 2021	Apr. 30, 2020	Apr. 30, 2021	Apr. 30, 2020	Jul. 31, 2016
2016 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award requisite service period	4 years	5 years
Plan modification, incremental cost			$ 8.5
Share-based payment arrangement, expense			0.2	$ 0.3	$ 0.8	$ 0.9
Unrecognized compensation expense, period for recognition					1 year
Unrecognized compensation expense			0.7		$ 0.7
2016 Equity Incentive Plan | Share-based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage							20.00%
2016 Equity Incentive Plan | Share-based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage							20.00%
2016 Equity Incentive Plan | Share-based Payment Arrangement, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage							20.00%
2016 Equity Incentive Plan | Share-based Payment Arrangement, Tranche Four
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage							20.00%
2016 Equity Incentive Plan | Share-based Payment Arrangement, Tranche Five
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage							20.00%
2016 Equity Incentive Plan | Performance Based Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity instruments other than options, vested, fair value					2.9
2021 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment arrangement, nonvested award, option, cost not yet recognized, amount			$ 4.7		$ 4.7
Common stock, shares reserved for future issuance	14,003,560
Expiration period					10 years
Options, granted, weighted average grant date fair value (in dollars per share)					$ 4.07
Options vested and exercisable (shares)			0		0
2021 Equity Incentive Plan | Share-based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage					25.00%
2021 Equity Incentive Plan | Share-based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage					25.00%
2021 Equity Incentive Plan | Share-based Payment Arrangement, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage					25.00%
2021 Equity Incentive Plan | Share-based Payment Arrangement, Tranche Four
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage					25.00%
2021 Equity Incentive Plan | Equity Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment arrangement, expense			$ 0.1		$ 0.1
Unrecognized compensation expense, period for recognition					3 years 10 months 24 days
2021 Equity Incentive Plan | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment arrangement, expense			0.2		$ 0.2
Unrecognized compensation expense, period for recognition					3 years 7 months 6 days
Unrecognized compensation expense			$ 6.3		$ 6.3
Employee Stock Purchase Plan | Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, shares reserved for future issuance			1,250,509		1,250,509
Purchase price of common stock, percent					85.00%

Equity-Based Compensation - Act

Equity-Based Compensation - Activity for Awards (Details)	9 Months Ended
	Apr. 30, 2021$ / sharesshares
Time-Based Units | 2016 Equity Incentive Plan
Number of Shares
Unvested as of July 31, 2020 (in shares) | shares	14,640,454
Granted (in shares) | shares	0
Vested (in shares) | shares	(14,640,454)
Forfeited (in shares) | shares	0
Unvested as of April 30, 2021 (in shares) | shares	0
Weighted-Average Grant-Date Fair Value
Unvested as of July 30, 2020 (in dollars per share) | $ / shares	$ 0.16
Granted (in dollars per share) | $ / shares	0
Vested (in dollars per share) | $ / shares	0.16
Forfeited (in dollars per share) | $ / shares	0
Unvested as of April 30, 2021 (in dollars per share) | $ / shares	$ 0
Performance Based Units | 2016 Equity Incentive Plan
Number of Shares
Unvested as of July 31, 2020 (in shares) | shares	7,203,820
Granted (in shares) | shares	0
Vested (in shares) | shares	(2,881,528)
Forfeited (in shares) | shares	0
Exchanged (in shares) | shares	4,322,292
Unvested as of April 30, 2021 (in shares) | shares	0
Weighted-Average Grant-Date Fair Value
Unvested as of July 30, 2020 (in dollars per share) | $ / shares	$ 0.19
Granted (in dollars per share) | $ / shares	0
Vested (in dollars per share) | $ / shares	0.19
Forfeited (in dollars per share) | $ / shares	0
Exchanged (in dollars per share) | $ / shares	0.19
Unvested as of April 30, 2021 (in dollars per share) | $ / shares	$ 0
Restricted Stock | 2016 Equity Incentive Plan
Number of Shares
Unvested as of July 31, 2020 (in shares) | shares	0
Granted (in shares) | shares	0
Vested (in shares) | shares	0
Forfeited (in shares) | shares	0
Exchanged (in shares) | shares	665,389
Unvested as of April 30, 2021 (in shares) | shares	665,389
Weighted-Average Grant-Date Fair Value
Unvested as of July 30, 2020 (in dollars per share) | $ / shares	$ 0
Granted (in dollars per share) | $ / shares	0
Vested (in dollars per share) | $ / shares	0
Forfeited (in dollars per share) | $ / shares	0
Exchanged (in dollars per share) | $ / shares	15
Unvested as of April 30, 2021 (in dollars per share) | $ / shares	$ 15
Restricted Stock Units (RSUs) | 2021 Equity Incentive Plan
Number of Shares
Unvested as of July 31, 2020 (in shares) | shares	0
Granted (in shares) | shares	433,705
Vested (in shares) | shares	0
Forfeited (in shares) | shares	0
Unvested as of April 30, 2021 (in shares) | shares	433,705
Weighted-Average Grant-Date Fair Value
Unvested as of July 30, 2020 (in dollars per share) | $ / shares	$ 0
Granted (in dollars per share) | $ / shares	15
Vested (in dollars per share) | $ / shares	0
Forfeited (in dollars per share) | $ / shares	0
Unvested as of April 30, 2021 (in dollars per share) | $ / shares	$ 15

Equity-Based Compensation - Val

Equity-Based Compensation - Valuation Assumptions (Details) - 2021 Equity Incentive Plan	9 Months Ended
	Apr. 30, 2021$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 years 3 months
Expected dividend yield	0.00%
Risk-free interest rate	1.09%
Expected volatility	25.00%
Stock price (in dollars per share)	$ 15

Equity-Based Compensation - Sto

Equity-Based Compensation - Stock Option Activity (Details) - 2021 Equity Incentive Plan $ / shares in Units, $ in Thousands	9 Months Ended
	Apr. 30, 2021USD ($)$ / sharesshares
Shares Available for Grant
Balance as of July 31, 2020 (shares)	0
Shares authorized (shares)	14,003,560
Options granted (shares)	(1,194,224)
Restricted stock units granted (shares)	(433,705)
Balance as of April 30, 2021 (shares)	12,375,631
Number of Options Outstanding
Balance as of July 31, 2020 (shares)	0
Options granted (shares)	1,194,224
Options vested (shares)	0
Forfeited (shares)	0
Balance as of April 30, 2021 (shares)	1,194,224
Weighted-Average Exercise Price
Balance as of July 31, 2020 (in dollars per share) | $ / shares	$ 0
Options granted (in dollars per share) | $ / shares	15
Balance as of April 30, 2021 (in dollars per share) | $ / shares	$ 15
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted-Average Remaining Contractual Life (in years)	9 years 10 months 24 days
Aggregate Intrinsic Value | $	$ 4,431

Casualty Gain - Narrative (Deta

Casualty Gain - Narrative (Details) - USD ($) $ in Thousands	Dec. 11, 2020	Jan. 31, 2021	Apr. 30, 2021	Apr. 30, 2020	Apr. 30, 2021	Apr. 30, 2020
Unusual or Infrequent Item, or Both [Line Items]
Casualty gain, net (Note 14)			$ (421)	$ (24)	$ (6,636)	$ (4,047)
Fire
Unusual or Infrequent Item, or Both [Line Items]
Casualty gain, net (Note 14)					$ 1,200
Flood
Unusual or Infrequent Item, or Both [Line Items]
Insurance proceeds	$ 32,500	$ 8,100

Earnings Per Share - Reconcilia

Earnings Per Share - Reconciliation of Basic and Diluted Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2021	Apr. 30, 2020	Apr. 30, 2021	Apr. 30, 2020
Earnings Per Share [Abstract]
Numerator - Net income attributable to The Duckhorn Portfolio, Inc.	$ 9,022	$ 11,619	$ 48,548	$ 35,100
Denominator:
Weighted average number of shares of common stock outstanding - basic (shares)	107,976,264	101,713,460	103,755,180	101,713,460
Dilutive stock options and restricted stock (shares)	427,745	0	368,090	0
Weighted average number of shares of common stock outstanding - assuming dilution (shares)	108,404,009	101,713,460	104,123,270	101,713,460
Earnings per share attributable to The Duckhorn Portfolio, Inc.
Basic (in dollars per share)	$ 0.08	$ 0.11	$ 0.47	$ 0.35
Diluted (in dollars per share)	$ 0.08	$ 0.11	$ 0.47	$ 0.35

Earnings Per Share - Narrative

Earnings Per Share - Narrative (Details) - shares	3 Months Ended		9 Months Ended
	Apr. 30, 2021	Apr. 30, 2020	Apr. 30, 2021	Apr. 30, 2020
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share (shares)	0	0	0	0

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2021	Apr. 30, 2020	Apr. 30, 2021	Apr. 30, 2020
Income Tax Disclosure [Abstract]
Income tax expense	$ 5,623	$ 4,189	$ 19,694	$ 12,588
Effective income tax rate, percent	38.40%	26.50%	28.90%	26.40%