Cover Page
Cover Page - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 17, 2023 | Jun. 24, 2022 | |
Document Information [Line Items] | |||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2022 | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Registrant Name | THE BOSTON BEER COMPANY, INC. | ||
Entity Interactive Data Current | Yes | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Emerging Growth Company | false | ||
Entity File Number | 1-14092 | ||
Entity Incorporation, State or Country Code | MA | ||
Entity Tax Identification Number | 04-3284048 | ||
Entity Address, Address Line One | One Design Center Place, Suite 850 | ||
Entity Address, City or Town | Boston | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 02210 | ||
City Area Code | 617 | ||
Local Phone Number | 368-5000 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000949870 | ||
Current Fiscal Year End Date | --12-31 | ||
Trading Symbol | SAM | ||
Security Exchange Name | NYSE | ||
Title of 12(b) Security | Class A Common Stock | ||
Entity Public Float | $ 3,232,820 | ||
Documents Incorporated by Reference | Certain parts of the registrant’s definitive Proxy Statement for its 2023 Annual Meeting to be held on May 17, 2023 are incorporated by reference into Part III of this report. | ||
Auditor Name | Deloitte & Touche LLP | ||
Auditor Location | Boston, Massachusetts | ||
Auditor Firm ID | 34 | ||
Common Class A | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 10,212,573 | ||
Common Class B | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 2,068,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Income Statement [Abstract] | |||
Revenue | $ 2,222,667 | $ 2,196,650 | $ 1,851,813 |
Less excise taxes | 132,333 | 139,028 | 115,381 |
Net revenue | 2,090,334 | 2,057,622 | 1,736,432 |
Cost of goods sold | 1,228,348 | 1,259,830 | 921,980 |
Gross profit | 861,986 | 797,792 | 814,452 |
Operating expenses: | |||
Advertising, promotional and selling expenses | 578,400 | 606,994 | 447,568 |
General and administrative expenses | 157,534 | 133,624 | 118,211 |
Contract termination costs and other | 5,379 | 30,678 | |
Impairment of intangible assets | 27,100 | ||
Impairment of brewery assets | 2,782 | 18,499 | 4,466 |
Total operating expenses | 771,195 | 789,795 | 570,245 |
Operating income | 90,791 | 7,997 | 244,207 |
Other (expense) income: | |||
Interest (expense) income, net | 2,561 | (110) | (199) |
Other (expense) income, net | (1,916) | (978) | 222 |
Total other (expense) income, net | 645 | (1,088) | 23 |
Income before income tax provision (benefit) | 91,436 | 6,909 | 244,230 |
Income tax (benefit) provision | 24,173 | (7,644) | 52,270 |
Net income | $ 67,263 | $ 14,553 | $ 191,960 |
Net income per common share - basic | $ 5.46 | $ 1.19 | $ 15.73 |
Net income per common share - diluted | $ 5.44 | $ 1.17 | $ 15.53 |
Weighted-average number of common shares - basic | 12,317 | 12,280 | 12,204 |
Weighted-average number of common shares - diluted | 12,345 | 12,436 | 12,283 |
Net income | $ 67,263 | $ 14,553 | $ 191,960 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | (269) | (32) | 25 |
Defined benefit plans liability adjustment | 253 | 90 | 1,392 |
Total other comprehensive income (loss), net of tax | (16) | 58 | 1,417 |
Comprehensive income | $ 67,247 | $ 14,611 | $ 193,377 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 180,560 | $ 26,853 |
Restricted cash | 0 | 39,468 |
Accounts receivable | 56,672 | 55,022 |
Inventories | 148,450 | 149,118 |
Prepaid expenses and other current assets | 27,461 | 21,462 |
Income tax receivable | 10,126 | 53,418 |
Total current assets | 423,269 | 345,341 |
Property, plant and equipment, net | 667,909 | 664,815 |
Operating right-of-use assets | 43,768 | 52,774 |
Goodwill | 112,529 | 112,529 |
Intangible assets | 76,324 | 103,677 |
Third-party production prepayments | 61,339 | 88,294 |
Other assets | 35,635 | 19,354 |
Total assets | 1,420,773 | 1,386,784 |
Current Liabilities: | ||
Accounts payable | 84,248 | 85,920 |
Accrued expenses and other current liabilities | 111,153 | 161,552 |
Current operating lease liabilities | 8,866 | 7,634 |
Total current liabilities | 204,267 | 255,106 |
Deferred income taxes, net | 96,592 | 87,495 |
Non-current operating lease liabilities | 45,274 | 53,849 |
Other liabilities | 6,091 | 6,925 |
Total liabilities | 352,224 | 403,375 |
Commitments and Contingencies (See Note N) | ||
Stockholders’ Equity: | ||
Additional paid-in capital | 629,515 | 611,622 |
Accumulated other comprehensive loss | (210) | (194) |
Retained earnings | 439,121 | 371,858 |
Total stockholders’ equity | 1,068,549 | 983,409 |
Total liabilities and stockholders’ equity | 1,420,773 | 1,386,784 |
Common Class A | ||
Stockholders’ Equity: | ||
Common Stock | 102 | 102 |
Common Class B | ||
Stockholders’ Equity: | ||
Common Stock | $ 21 | $ 21 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 25, 2021 |
Common Class A | ||
Common Stock, par value | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 22,700,000 | 22,700,000 |
Common Stock, shares issued | 10,238,009 | 10,183,801 |
Common Stock, shares outstanding | 10,238,009 | 10,183,801 |
Common Class B | ||
Common Stock, par value | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 4,200,000 | 4,200,000 |
Common Stock, shares issued | 2,068,000 | 2,068,000 |
Common Stock, shares outstanding | 2,068,000 | 2,068,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock Common Class A | Common Stock Common Class B | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment |
Balance at Dec. 28, 2019 | $ 735,636 | $ 94 | $ 27 | $ 571,784 | $ (1,669) | $ 165,400 | ||
Balance (in shares) at Dec. 28, 2019 | 9,371,000 | 2,673,000 | ||||||
Net income | 191,960 | 191,960 | ||||||
Stock options exercised and restricted shares activities | 12,672 | $ 1 | 12,671 | |||||
Stock options exercised and restricted shares activities (in shares) | 139,000 | |||||||
Stock-based compensation expense | 15,282 | 15,282 | ||||||
Conversion from Class B to Class A | $ 5 | $ (5) | ||||||
Conversion from Class B to Class A (in shares) | 495,000 | (495,000) | ||||||
Defined benefit plans liability adjustment, net of tax | 1,392 | 1,392 | ||||||
Foreign currency translation adjustment | 25 | 25 | ||||||
Balance at Dec. 26, 2020 | 956,967 | $ 100 | $ 22 | 599,737 | (252) | 357,360 | ||
Balance (ASU 2019-12) at Dec. 26, 2020 | $ (55) | $ (55) | ||||||
Balance (in shares) at Dec. 26, 2020 | 10,005,000 | 2,178,000 | ||||||
Net income | 14,553 | 14,553 | ||||||
Stock options exercised and restricted shares activities | (6,729) | $ 1 | (6,730) | |||||
Stock options exercised and restricted shares activities (in shares) | 69,000 | |||||||
Stock-based compensation expense | 18,615 | 18,615 | ||||||
Conversion from Class B to Class A | $ 1 | $ (1) | ||||||
Conversion from Class B to Class A (in shares) | 110,000 | (110,000) | ||||||
Defined benefit plans liability adjustment, net of tax | 90 | 90 | ||||||
Foreign currency translation adjustment | (32) | (32) | ||||||
Balance at Dec. 25, 2021 | 983,409 | $ 102 | $ 21 | 611,622 | (194) | 371,858 | ||
Balance (in shares) at Dec. 25, 2021 | 10,184,000 | 2,068,000 | ||||||
Net income | 67,263 | 67,263 | ||||||
Stock options exercised and restricted shares activities | $ 3,905 | 3,905 | ||||||
Stock options exercised and restricted shares activities (in shares) | 30,164 | 54,000 | ||||||
Stock-based compensation expense | $ 13,988 | 13,988 | ||||||
Defined benefit plans liability adjustment, net of tax | 253 | (253) | ||||||
Foreign currency translation adjustment | (269) | 269 | ||||||
Balance at Dec. 31, 2022 | $ 1,068,549 | $ 102 | $ 21 | $ 629,515 | $ (210) | $ 439,121 | ||
Balance (in shares) at Dec. 31, 2022 | 10,238,000 | 2,068,000 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Defined benefit plans liability adjustment, tax | $ 95 | $ 20 | $ 467 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Cash flows provided by operating activities: | |||
Net income | $ 67,263 | $ 14,553 | $ 191,960 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 81,356 | 72,096 | 65,657 |
Impairment of intangible assets | 27,100 | ||
Impairment of brewery assets | 2,782 | 18,499 | 4,466 |
Gain on sale of property, plant, and equipment | (237) | (217) | (639) |
Change in right-of-use assets | 7,972 | 8,018 | 7,355 |
Other non-cash expense (income) | 326 | (182) | 488 |
Stock-based compensation expense | 13,988 | 18,615 | 15,282 |
Deferred income taxes | 9,097 | (5,225) | 17,655 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (2,042) | 23,071 | (24,014) |
Inventories | 131 | (21,224) | (24,463) |
Prepaid expenses, income tax receivable and other current assets | 38,652 | (49,073) | (9,531) |
Third-party production prepayments | 26,955 | (16,635) | (53,851) |
Other assets | (14,031) | (5,699) | (351) |
Accounts payable | (2,219) | (27,361) | 40,771 |
Accrued expenses and other current liabilities | (50,358) | 38,894 | 24,469 |
Change in operating lease liabilities | (6,516) | (8,229) | (3,786) |
Other liabilities | (274) | (3,604) | 1,939 |
Net cash provided by operating activities | 199,945 | 56,297 | 253,407 |
Cash flows used in investing activities: | |||
Purchases of property, plant and equipment | (90,582) | (147,919) | (139,996) |
Proceeds from sale of property, plant, and equipment | 2,076 | 1,157 | 487 |
Other investing activities | 145 | 392 | |
Net cash used in investing activities | (88,506) | (146,617) | (139,117) |
Cash flows (used in) provided by financing activities: | |||
Proceeds from exercise of stock options and sale of investment shares | 7,946 | 10,465 | 15,274 |
Net cash paid on note payable and finance leases | (1,672) | (1,570) | (1,260) |
Cash borrowed on line of credit | 30,000 | 100,000 | |
Cash paid on line of credit | (30,000) | (100,000) | |
Payment of tax withholding on stock-based payment awards and investment shares | (3,474) | (15,536) | (1,692) |
Net cash (used in) provided by financing activities | 2,800 | (6,641) | 12,322 |
Change in cash and cash equivalents | 114,239 | (96,961) | 126,612 |
Cash and cash equivalents and restricted cash at beginning of period | 66,321 | 163,282 | 36,670 |
Cash and cash equivalents and restricted cash at end of period | 180,560 | 66,321 | 163,282 |
Supplemental disclosure of cash flow information: | |||
Income taxes paid | 16,980 | 53,889 | 36,032 |
Income taxes refunded | 45,124 | 12,668 | 60 |
Cash paid for amounts included in measurement of lease liabilities | |||
Operating cash flows for operating leases | 8,510 | 10,495 | 6,194 |
Operating cash flows for finance leases | 71 | 121 | 143 |
Financing cash flows for finance leases | 1,598 | 1,499 | 1,192 |
Right-of-use-assets obtained in exchange for operating lease obligations | (827) | 2,309 | 12,081 |
Right-of-use-assets obtained in exchange for finance lease obligations | 472 | 2,689 | |
Change in purchase of property, plant and equipment in accounts payable and accrued expenses | 1,045 | 15,824 | 9,387 |
Supplemental disclosure of cash, cash equivalents and restricted cash | |||
Cash and cash equivalents | 180,560 | 26,853 | 163,282 |
Restricted cash | 39,468 | ||
Total cash, cash equivalents and restricted cash shown in the statements of cash flows | $ 180,560 | $ 66,321 | $ 163,282 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | A. Organization and Basis of Presentation The Boston Beer Company, Inc. and certain subsidiaries (the “Company”) are engaged in the business of selling alcohol beverages throughout the United States and in selected international markets, under the trademarks “The Boston Beer Company®”, “Twisted Tea Brewing Company®”, “Hard Seltzer Beverage Company”, “Angry Orchard® Cider Company”, “Dogfish Head® Craft Brewery”, “Dogfish Head Distilling Co.”, “Angel City® Brewing Company”, “Coney Island® Brewing Company”, "Green Rebel Brewing Co.", and "Truly Distilling Co.". |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | B . Summary of Significant Accounting Policies Fiscal Year The Company’s fiscal year is a fifty-two or fifty-three-week period ending on the last Saturday in December. The 2022 fiscal year consisted of fifty-three weeks, while the 2021 and 2020 fiscal years both consisted of fifty-two weeks. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly-owned. All intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of condensed consolidated financial statements in conformity with United States generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities during the reporting periods, the reported amounts of revenue and expenses during the reporting periods and the disclosure of contingent assets and liabilities at the date of the financial statements. On an ongoing basis, the Company bases estimates and assumptions on historical experience, currently available information, and various other factors that management believes to be reasonable under the circumstances. Actual results may differ materially from these estimates and assumptions. The accounting policies which the Company believes involve the most significant application of judgment or involve complex estimations are inventories and associated reserves, revenue reserves, assumptions surrounding the recoverability of long-lived assets, share-based compensation valuations, and income taxes. Cash and Cash Equivalents Cash and cash equivalents at December 31, 2022 and December 25, 2021 included cash on-hand and money market instruments that are highly liquid investments. Cash and cash equivalents are carried at cost, which approximates fair value. Restricted Cash There was no restricted cash balance at December 31, 2022. At December 25, 2021 restricted cash included money received from a distributor pursuant to an indemnification agreement to consolidate distribution rights in a region in accordance with state regulations. Restricted cash is carried at cost, which approximates fair value. Accounts Receivable and Allowance for Doubtful Accounts The Company’s accounts receivable primarily consist of trade receivables. The Company records an allowance for doubtful accounts that is based on historical trends, customer knowledge, any known disputes, and the aging of the accounts receivable balances combined with management’s estimate of future potential recoverability. Receivables are written off against the allowance after all attempts to collect a receivable have failed. The Company believes its allowance for doubtful accounts as of December 31, 2022 and December 25, 2021 are adequate, but actual write-offs could exceed the recorded allowance. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash equivalents, restricted cash, and trade receivables. The Company places its cash equivalents and restricted cash with high credit quality financial institutions. As of December 31, 2022, the Company’s cash and cash equivalents were invested in investment-grade, highly liquid U.S. government agency corporate money market accounts. The Company sells primarily to a network of independent wholesalers in the United States and to a network of foreign wholesalers, importers or other agencies (collectively referred to as “Distributors”). In 2022, 2021, and 2020, sales to foreign Distributors were approximate ly 4% of total sales. Receivables arising from these sales are not collateralized; however, credit risk is minimized as a result of the large and diverse nature of the Company’s customer base. There were no individual customer accounts receivable balances outstanding at December 31, 2022 or December 25, 2021 that were in excess of 10% of the gross accounts receivable balance on those dates. No individual customers represented more than 10% o f the Company’s revenues in fiscal years 2022, 2021, or 2020. Financial Instruments and Fair Value of Financial Instruments The Company’s primary financial instruments at December 31, 2022 and December 25, 2021 consisted of cash equivalents, restricted cash, accounts receivable, and accounts payable. The Company determines the fair value of its financial assets and liabilities in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures (“ASC 820”). The Company believes that the carrying amount of its cash equivalents, restricted cash, accounts receivable, and accounts payable approximates fair value due to the short-term nature of these assets and liabilities. The Company is not exposed to significant interest, currency or credit risks arising from these financial assets and liabilities. Inventories and Provision for Excess or Expired Inventory Inventories consist of raw and packaging materials, work in process and finished goods. Raw materials, which principally consist of hops, malt, fruit juices, other brewing materials and packaging, are stated at the lower of cost (first-in, first-out basis) or net realizable value. The Company’s goal is to maintain on-hand a supply of approximately two years for essential hop varieties, in order to limit the risk of an unexpected reduction in supply. Inventories are generally classified as current assets. The Company classifies hops inventory in excess of two years of forecasted usage in other long-term assets. The cost elements of work in process and finished goods inventory consist of raw materials, direct labor and manufacturing overhead. Packaging design costs are expensed as incurred. The Company enters into multi-year purchase commitments in order to secure adequate supply of ingredients and packaging, to brew and package its products. Inventory on hand totaled $ 161.6 million at December 31, 2022. The provisions for excess or expired inventory are based on management’s estimates of forecasted usage of inventories on hand. Forecasting usage involves significant judgments regarding future demand for the Company’s various existing products and products under development as well as the potency and shelf-life of various raw material ingredients and finished goods. A significant change in the timing or level of demand for certain products as compared to forecasted amounts may result in recording additional provisions for excess or expired inventory in the future. Provision for excess or expired inventory included in cost of goods sold was $ 35.9 million, $ 62.6 million, and $ 11.3 million in fiscal years 2022, 2021, and 2020 respectively. Property, Plant and Equipment Property, plant, and equipment are stated at cost or fair value as of the date of acquisition. Expenditures for repairs and maintenance are expensed as incurred. Major renewals and betterments that extend the life of the property are capitalized. Depreciation is computed using the straight-line method based upon the estimated useful lives of the underlying assets as follows: Kegs 5 years Computer software and equipment 2 to 5 years Office equipment and furniture 3 to 7 years Machinery and plant equipment 3 to 20 years Leasehold improvements Lesser of the remaining term of the lease or estimated useful life of the asset Building and building improvements 12 to 20 years , or the remaining useful life of the building, whichever is shorter For purposes of determining whether there are any impairment losses on brewery assets, as further discussed below, management has historically examined the carrying value of the Company’s identifiable long-lived assets, including their useful lives, semi-annually, or more frequently when indicators of impairment are present. Evaluations of whether indicators of impairment exist involve judgments regarding the current and future business environment and the length of time the Company intends to use the asset. If an impairment loss is identified based on the fair value of the asset, as compared to the carrying value of the asset, such loss would be charged to expense in the period the impairment is identified. Furthermore, if the review of the carrying values of the long-lived assets indicates impairment of such assets, the Company may determine that shorter estimated useful lives are more appropriate. In that event, the Company will be required to record additional depreciation in future periods, which will reduce earnings. Estimating the amount of impairment, if any, requires significant judgments including identification of potential impairments, market comparison to similar assets, estimated cash flows to be generated by the asset, discount rates, the remaining useful life of the asset, and the usefulness of the asset in consideration of future business plans. Impairment of brewery assets classified as property, plant, and equipment included in operating expenses was $ 2.6 million , $ 18.5 million and $ 4.4 million in fiscal years 2022, 2021, and 2020, respectively . Factors generally considered important which could trigger an impairment review on the carrying value of long-lived assets include the following: (1) significant underperformance relative to historical or projected future operating results; (2) significant changes in the manner of use of acquired assets or the strategy for the Company’s overall business; (3) underutilization of assets; and (4) discontinuance of products by the Company or its customers. Segment Reporting The Company consists of one operating segment that produces and sells alcohol beverages under various brands. All brands are predominantly beverages that are manufactured using similar production processes, have comparable alcohol content, generally fall under the same regulatory environment, and are sold to the same types of customers in similar size quantities at similar price points, with similar profit margins, and through the same channels of distribution. Goodwill and Intangible Assets The Company has recorded intangible assets with indefinite lives and goodwill for which impairment testing is required at least annually or more frequently if events or circumstances indicate that these assets might be impaired. The Company performs its annual impairment tests and re-evaluates the useful lives of other intangible assets with indefinite lives at the annual impairment test measurement date in the third quarter of each fiscal year or when circumstances arise that indicate a possible impairment or change in useful life might exist. The guidance for goodwill impairment testing allows an entity to assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the estimated fair value of a reporting unit, of which the Company has one, is less than its carrying amount or to proceed directly to performing a quantitative impairment test. Under the quantitative assessment, the estimated fair value of the Company’s reporting unit is compared to its carrying value, including goodwill. The estimate of fair value of the Company’s reporting unit is generally calculated based on an income approach using the discounted cash flow method supplemented by the market approach which considers the Company’s market capitalization and enterprise value. If the estimated fair value of the Company’s reporting unit is less than the carrying value of its reporting unit, a goodwill impairment will be recognized. In estimating the fair value of the Company’s reporting unit, management must make assumptions and projections regarding such items as future cash flows, future revenues, future earnings, cost of capital, and other factors. The assumptions used in the estimate of fair value are based on historical trends and the projections and assumptions that are used in the latest operating plans. These assumptions reflect management’s estimates of future economic and competitive conditions and are, therefore, subject to change as a result of changing market conditions. If these estimates or their related assumptions change in the future, the Company may be required to recognize an impairment loss for the Company’s goodwill which could have a material adverse impact on the Company’s financial statements. The Company’s intangible assets consist primarily of a trademark and customer relationships obtained through the Company’s Dogfish Head acquisition. Customer relationships are amortized over their estimated useful lives. The Dogfish Head trademark which was determined to have an indefinite useful life is not amortized. The guidance for indefinite lived intangible asset impairment testing allows an entity to assess qualitative factors to determine whether the existence of events or circumstances indicates that it is more likely than not that the indefinite lived intangible asset is impaired or to proceed directly to performing the quantitative impairment test. Under the quantitative assessment, the trademark is evaluated for impairment by comparing the carrying value of the trademark to its estimated fair value. The estimated fair value of the trademark is calculated based on an income approach using the relief from royalty method. If the estimated fair value is less than the carrying value of the trademark, then an impairment charge is recognized to reduce the carrying value of the trademark to its estimated fair value. Significant judgement is required to estimate the fair value the Dogfish Head trademark. Accordingly, the Company obtains the assistance of third-party valuation specialists as part of the impairment evaluation. In estimating the fair value of the trademark, management must make assumptions and projections regarding future cash flows based upon future revenues, the market-based royalty rate, the discount rate, the tax rate and other factors. These assumptions reflect management’s estimates of future economic and competitive conditions and consider many factors including macroeconomic conditions, industry growth rates, competitive activities, as well as the impact the COVID-19 pandemic has had on the Company's Dogfish Head trademarked products. The assumptions and projections used in the estimate of fair value are consistent with those used in current operating plans and the Company believes they are reasonable . Refundable Deposits on Kegs and Pallets The Company distributes its packaged hard seltzer, beer and hard cider primarily in cans and glass bottles and its draft beer in kegs and such cans, bottles, and kegs are shipped on pallets to Distributors. Most kegs and pallets are owned by the Company. Kegs are reflected in the Company’s balance sheets at cost and are depreciated over the estimated useful life of the keg, while pallets are expensed upon purchase. Upon shipment of beer to Distributors, the Company collects a refundable deposit on the kegs and certain pallets, which is included in current liabilities in the Company’s balance sheets. Upon return of the kegs and pallets to the Company, the deposit is refunded to the Distributor. The Company has experienced some loss of kegs and pallets and anticipates that some loss will occur in future periods due to the significant volume of kegs and pallets handled by each Distributor and retailer, the homogeneous nature of kegs and pallets owned by most brewers, and the relatively small deposit collected for each keg when compared with its market value. The Company believes that this is an industry-wide issue and that the Company’s loss experience is not atypical. The Company believes that the loss of kegs and pallets, after considering the forfeiture of related deposits, has not been material to the financial statements. The Company uses internal records, records maintained by Distributors, records maintained by other third-party vendors and historical information to estimate the physical count of kegs and pallets held by Distributors. These estimates affect the amount recorded as property, plant and equipment and current liabilities as of the date of the financial statements. The actual liability for refundable deposits could differ from these estimates. For the year ended December 31, 2022, the Co mpany decreased its liability for refundable deposits, gross property, plant, and equipment and related accumulated depreciation by $ 0.4 million, $ 1.0 million and $ 1.0 million, respectively. For the year ended December 25, 2021, the Company decreased its liability for refundable deposits, gross property, plant, and equipment and related accumulated depreciation by $ 0.5 millio n, $ 0.9 million and $ 0.9 million, respectively. As of December 31, 2022, and December 25, 2021, the Company’s balance sheet includes $ 13.0 million and $ 13.4 million, respectively, in refundable deposits on kegs and pallets and $ 1.0 million and $ 0.2 milli on, respectively, in kegs, net of accumulated depreciation. Income Taxes The Company provides for deferred taxes using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s consolidated financial statements or tax returns. This results in differences between the book and tax basis of the Company’s assets, liabilities and carry-forwards, such as tax credits. In estimating future tax consequences, all expected future events, other than enactment of changes in the tax laws or rates, are generally considered. Valuation allowances are provided when recovery of deferred tax assets does not meet the more likely than not standards as defined in ASC Topic 740, Income Taxes . The calculation of the Company’s uncertain tax positions involves dealing with uncertainties in the application of tax regulations in several different state tax jurisdictions. The Company is periodically reviewed by tax authorities regarding the amount of taxes due. These reviews include inquiries regarding the timing and amount of deductions and the allocation of income among various tax jurisdictions. The Company records estimated reserves for exposures associated with positions that it takes on its income tax returns that do not meet the more likely than not standards as defined in ASC Topic 740, Income Taxes . Revenue Recognition and Classification of Customer Programs and Incentives During fiscal years 2022, 2021, and 2020 approxi mately 95 % of the Company’s revenue was from shipments of its products to domestic Distributors and 4 % from shipments to international Distributors, primarily located in Canada. Approximately 1 % o f the Company’s revenue is from retail beer, cider, food and merchandise sales at the Company’s retail locations. The Company recognizes revenue when obligations under the terms of a contract with its customer are satisfied; generally, this occurs with the transfer of control of its products. Revenue is measured as the amount of consideration expected to be received in exchange for transferring products. If the conditions for revenue recognition are not met, the Company defers the revenue until all conditions are met. As of December 31, 2022, and December 25, 2021, the Company had deferred revenue of $ 6.8 million and $ 8.0 million, respectively, related to product shipped prior to these dates for which the criteria to recognize revenue was not met as of these dates. These amounts are included in accrued expenses and other current liabilities in the accompanying consolidated balance sheets. The Company is committed to maintaining the freshness of its products in the market. In certain circumstances and with the Company’s approval, the Company accepts and destroys stale beer that is returned by Distributors. The Company generally credits approximately fifty percent of the distributor’s cost of beer that has passed its freshness expiration date when it is returned to the Company or destroyed. The Company reduces revenue and establishes an accrual based upon both historical returns, which is applied to an estimated lag time for receipt of product, and knowledge of specific return transactions. Estimating this reserve involves significant judgments and estimates, including comparability of historical return trends to future trends, lag time from date of sale to date of return, and product mix of returns. Stale beer expense is reflected in the accompanying financial statements as a reduction of revenue. Historically, the cost of actual stale beer returns has been in line with established reserves; however, the cost could differ mat erially from the reserves which would impact revenue. As of December 31, 2022, and December 25, 2021, the stale beer reserve was $ 5.6 million and $ 6.0 million, respectively. These amounts are included in accrued expenses and other current liabilities in the accompanying consolidated balance sheets. Provision for stale beer recorded as reductions to revenue totaled $ 19.6 mill ion, $ 9.5 million, and $ 8.4 million in fiscal years 2022, 2021, and 2020 respectively. Customer programs and incentives are a common practice in the alcohol beverage industry. Amounts paid in connection with customer programs and incentives are recorded as reductions to net revenue or as advertising, promotional and selling expenses, based on the nature of the expenditure. Customer incentives and other payments made to Distributors are primarily based upon the performance of certain marketing and advertising activities. Depending on applicable state laws and regulations, these activities promoting the Company’s products may include, but are not limited to, point-of-sale and merchandise placement, samples, product displays, promotional programs at retail locations and meals, travel and entertainment. Amounts paid to customers in conn ection with these programs that were recorded as reductions to net revenue or as advertising, promotional and selling expenses totaled $ 95.9 million, $ 126.1 million and $ 85.0 million in fiscal years 2022, 2021, and 2020, respectively. Estimates are based on historical and projected experience for each type of program or customer and have historically been in line with actual costs incurred. Customer promotional discount programs are entered into with Distributors for certain periods of time. Amounts paid to Distributors in connection with these programs in fiscal years 2022, 2021, and 2020 were $ 54.8 million, $ 72.7 million and $ 59.3 million, respectively. The reimbursements for discounts to Distributors are recorded as reductions to net revenue. The agreed-upon discount rates are applied to certain Distributors’ sales to retailers, based on volume metrics, in order to determine the total discounted amount. The computation of the discount allowance requires that management make certain estimates and assumptions that affect the timing and amounts of revenue and liabilities recorded. Actual promotional discounts owed and paid have historically been in line with allowances recorded by the Company; however, the amounts could differ from the estimated allowances. Customer incentives and other payments are made primarily to Distributors based upon the performance of certain marketing and advertising activities. Depending on applicable state laws and regulations, these activities promoting the Company’s products may include, but are not limited to point-of-sale and merchandise placement, samples, product displays, promotional programs at retail locations and meals, travel and entertainment. Amounts paid to customers in connection with these programs in fiscal years 2022, 2021, and 2020 were $ 41.1 million, $ 53.4 million and $ 25.7 million, respectively. In fiscal years 2022, 2021, and 2020, the Company recorded certain of these costs in the total amount of $ 29.9 million, $ 42.0 million and $ 23.1 . million, respectively as reductions to net revenue. Costs recognized in net revenues include, but are not limited to, promotional discounts, sales incentives and certain other promotional activities. Costs recognized in advertising, promotional and selling expenses include point of sale materials, samples and media advertising expenditures in local markets. These costs are recorded as incurred, generally when invoices are received; however certain estimates are required at the period end. Estimates are based on historical and projected experience for each type of program or customer and have historically been in line with actual costs incurred. In connection with its preparation of financial statements and other financial reporting, management is required to make certain estimates and assumptions regarding the amount, timing and classification of expenditures resulting from these activities. Actual expenditures incurred could differ from management’s estimates and assumptions. Excise Taxes The Company is responsible for compliance with TTB regulations, including making timely and accurate excise tax payments. The Company is subject to periodic compliance audits by the TTB. Individual states also impose excise taxes on alcohol beverages in varying amounts. The Company calculates its excise tax expense based upon units shipped and on its understanding of the applicable excise tax laws. Cost of Goods Sold The following expenses are included in cost of goods sold in the accompanying consolidated statements of comprehensive income: raw material costs, packaging material costs, costs and income related to deposit activity, purchasing and receiving costs, manufacturing labor and overhead, brewing and processing costs, inspection costs relating to quality control, inbound freight charges, depreciation expense related to manufacturing equipment and warehousing costs, which include rent, labor and overhead costs. Shipping Costs Costs incurred for the shipping of products to customers are included in advertising, promotional and selling expenses in the accompanying consolidated statements of comprehensive income. The Company incurred shi pping costs of $ 165.5 million, $ 166.6 million, and $ 97.6 million in fiscal years 2022, 2021, and 2020, respectively. Advertising, Promotional, and Selling Expenses The following expenses are included in advertising, promotional and selling expenses in the accompanying consolidated statements of comprehensive income: media advertising and production costs, sales and brand related expenses, sales and brand salary and benefit expenses, stock compensation, meals, travel and entertainment expenses, promotional activity expenses, shipping costs related to shipments of finished goods from manufacturing locations to distributor locations and point-of-sale items. Total advertising and sales promotional expenditu res of $ 226.7 million, $ 291.3 million, and $ 211.2 million were included in advertising, promotional and selling expenses in the accompanying consolidated statements of comprehensive income for fiscal years 2022, 2021, and 2020, respectively. The Company conducts certain advertising and promotional activities in its Distributors’ markets and the Distributors make contributions to the Company for such efforts. Reimbursements from Distributors for advertising and promotional activities are recorded as reductions to advertising, promotional and selling expenses. General and Administrative Expenses The following expenses are included in general and administrative expenses in the accompanying consolidated statements of comprehensive income: general and administrative salary and benefit expenses, stock compensation, insurance costs, consulting and professional service fees, rent and utility expenses, meals, travel and entertainment expenses for general and administrative employees, and other general and administrative overhead costs. Stock-Based Compensation The Company accounts for share-based awards in accordance with ASC Topic 718, Compensation – Stock Compensation (“ASC 718”), which generally requires recognition of share-based compensation costs in financial statements based on fair value. Compensation cost is recognized over the period during which an employee is required to provide services in exchange for the award (the requisite service period). The amount of compensation cost recognized in the consolidated statements of comprehensive income is b ased on the awards ultimately expected to vest, and therefore, reduced for estimated forfeitures. Stock-based compensation was $ 14.0 millio n , $ 18.6 million and $ 15.3 million in fiscal years 2022, 2021, and 2020, respectively. As permitted by ASC 718, the Company elected to use a lattice model, such as the trinomial option-pricing model, to estimate the fair values of stock options. All option-pricing models require the input of subjective assumptions. These assumptions include the estimated volatility of the Company’s common stock price over the expected term, the expected dividend rate, the estimated post-vesting forfeiture rate, the risk-free interest rate and expected exercise behavior. See Note Q for further discussion of the application of the option-pricing models. In addition, an estimated pre-vesting forfeiture rate is applied in the recognition of the compensation charge. Periodically, the Company grants performance-based stock options. The Company only recognizes compensation expense with respect to these options if it is probable that the performance targets will be met. Consequently, at the end of each reporting period, the Company estimates whether it is probable that performance targets will be met. Changes in the subjective assumptions and estimates can materially affect the amount of stock-based compensation expense recognized in the consolidated statements of comprehensive income. Net Income Per Share Basic net income per share is calculated by dividing net income by the weighted-average common shares outstanding. Diluted net income per share is calculated by dividing net income by the weighted-average common shares and potentially dilutive securities outstanding during the period using the treasury stock method or the two-class method, whichever is more dilutive . |
Slowdown of the Hard Seltzer Ma
Slowdown of the Hard Seltzer Market Impact | 12 Months Ended |
Dec. 31, 2022 | |
Market Risk Benefit [Abstract] | |
Slowdown of the Hard Seltzer Market Impact | C. Slowdown of the Hard Seltzer Market Impact The decline in volume trends for hard seltzer products has negatively impacted the Company's volume of depletions and shipments, as well as its projections for the future. The decline in volume trends resulted in several supply chain related costs recorded during the second half of fiscal 2021, described in further detail below, and also continued to negatively impact the Company’s financial results during fiscal 2022. During the year ended December 25, 2021, the Company recorded Truly hard seltzer related excess and obsolete inventory reserves and other inventory related costs totaling $ 59.5 million related specifically to a decline in future volume projections, inclusive of estimated destruction costs of $ 6.1 million. These reserves were recorded for Truly finished goods inventory, Truly packaging, Truly flavorings and other raw materials that were not projected to be used or would expire prior to being shipped or being used in production. The actual inventory write-offs were not materially different than those estimates. The inventory related reserves were recorded within cost of goods sold. Due to the volume slowdown, the Company determined that some of its third-party production agreements were not needed. Several of these agreements included guaranteed payments and payments for capital expenditures incurred by the third-parties that the Company was still obligated to pay. During the year ended December 25, 2021, the Company recorded contract termination costs totaling $ 14.8 million, which were recorded within contract termination costs and other, to terminate certain third-party production agreements. Additionally, the Company wrote off $ 9.5 million of amounts prepaid pursuant to a third-party production agreement that the Company has no future plans to utilize. Due to the reduction in its production volume projections, the Company evaluated its construction in progress capital projects to determine which assets would generate future economic benefits and concluded that certain projects were impaired. The Company recognized impairment expense of $ 12.7 million related to projects that will be cancelled due to the volume slowdown. Additionally, the Company recognized a provision of $ 6.3 million for amounts owed to third-parties under non-cancellable purchase orders for components of the cancelled projects which was recorded within contract termination costs and other for the year ended December 25, 2021. The combined expense of $ 102.9 million recognized for the above items contributed to the Company's decline in operating profit for the year ended December 25, 2021. During the year ended December 31, 2022, the Company recorded an additional $ 4.8 million of contract termination costs relating to the 2022 termination of a third-party production contract that the Company determined was no longer necessary due to the slowdown of the hard seltzer market. The Company also incurred additional provisions for excess and obsolete inventories and higher brewery processing costs related to the continued further slowdown of the hard seltzer market during fiscal 2022. The Company does expect to incur shortfall fees at certain of its ongoing third-party production facilities. These shortfall fees are explained in greater detail within Note J of these financial statements. |
Restricted Cash
Restricted Cash | 12 Months Ended |
Dec. 31, 2022 | |
Restricted Cash [Abstract] | |
Restricted Cash | D. Restricted Cash During the year ended December 25, 2021, in accordance with state regulations, the Company consolidated distributor rights within a geographical region by terminating the distribution rights of certain existing distributors (the "terminating distributors") and granting these distribution rights to one existing distributor in the region (the "continuing distributor"). As part of this consolidation process, the Company also entered into an indemnification agreement in March 2021 with the continuing distributor. As part of the agreement, the Company is indemnified by the continuing distributor for the fair market value of distribution rights paid to the terminating distributors and all related legal fees. In accordance with state regulations, the Company followed the notification process and the distribution rights transferred on December 22, 2021. The Company received the fair market value payments of $ 39.5 million from the continuing distributor on December 19, 2021 and this amount is recorded in restricted cash and accrued liabilities at December 25, 2021. The Company paid the terminating distributors the fair market value payments of $ 39.5 million on December 28, 2021 . |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | E. Inventories Inventories consist of raw materials, work in process and finished goods which are stated at the lower of cost, determined on the first-in, first-out basis, or net realizable value. Raw materials principally consist of hops, malt, flavorings, fruit juices, other brewing materials and packaging. The Company’s goal is to maintain on hand a supply of at least one year for essential hop varieties, in order to limit the risk of an unexpected reduction in supply. Inventories are generally classified as current assets. The Company classifies hops inventory in excess of two years of forecasted usage in other long-term assets. The cost elements of work in process and finished goods inventory consist of raw materials, direct labor and manufacturing overhead. Inventories consist of the following: December 31, December 25, (in thousands) Current inventory: Raw materials $ 81,225 $ 78,545 Work in process 20,374 17,764 Finished goods 46,851 52,809 Total current inventory 148,450 149,118 Long term inventory 13,192 12,655 Total inventory $ 161,642 $ 161,773 As of December 31, 2022 and December 25, 2021, the Company has recorded inventory obsolescence reserves of $ 22.0 million and $ 43.1 million, respectively. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | F. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: December 31, December 25, (in thousands) Prepaid advertising, promotional and selling costs $ 8,878 $ 11,193 Prepaid taxes 6,753 518 Prepaid software and consulting fees 4,549 4,698 Prepaid insurance 3,497 3,569 Other 3,784 1,484 Total prepaid expenses and other current assets $ 27,461 $ 21,462 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | G. Property, Plant, and Equipment Property, plant, and equipment consisted of the following: December 31, December 25, (in thousands) Machinery and plant equipment $ 760,895 $ 729,251 Building and building improvements 237,561 207,565 Leasehold improvements 75,260 70,422 Kegs 58,492 59,794 Office equipment and furniture 36,935 30,085 Land 25,777 25,668 Assets under construction 41,323 35,619 Property, plant, and equipment, gross 1,236,243 1,158,404 Less accumulated depreciation ( 568,334 ) ( 493,589 ) Property, plant, and equipment, net $ 667,909 $ 664,815 The Company recorded depreciation expense related to th ese assets of $ 81.1 million, $ 71.8 million, and $ 65.4 million, in fiscal years 2022, 2021, and 2020, respectively. Impairment of Assets The Company evaluates its assets for impairment when events indicate that an asset or asset group may have suffered impairment. During fiscal years 2022, 2021, and 2020, the Company recorded impairment charges on brewery assets classified as property, plant, and equipment of $ 2.6 million, $ 18.5 million, and $ 4.4 million, respectively. The increase in impairment charges during fiscal year 2021 relates to write-downs of equipment related to the slowdown of the hard seltzer category. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | H. Leases The Company has various lease agreements in place for facilities and equipment. Terms of these leases include, in some instances, scheduled rent increases, renewals, purchase options, and maintenance costs, and vary by lease. These lease obligations expire at various dates through 2034. As the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate based on information available at lease commencement to determine the present value of the lease payments. Leases with an initial term of 12 months or less (“short-term leases”) are not recorded on the balance sheet and are recognized on a straight-line basis over the lease term. Total right-of-use ("ROU") assets and lease liabilities were as follows: Classification Leases December 31, December 25, (in thousands) Right-of-use assets Operating lease assets Operating right-of-use assets $ 43,768 $ 52,774 Finance lease assets Property, plant, and equipment, net 1,424 3,014 Lease Liabilities Current Operating lease liabilities Current operating lease liabilities 8,866 7,634 Finance lease liabilities Accrued expenses and other current liabilities 935 1,598 Non-current Operating lease liabilities Non-current operating lease liabilities 45,274 53,849 Finance lease liabilities Other liabilities 524 1,459 The gross value and accumulated depreciation of ROU assets related to finance leases were as follows: Finance Leases December 31, December 25, (in thousands) Gross value $ 5,998 $ 5,998 Accumulated amortization ( 4,574 ) ( 2,984 ) Carrying value $ 1,424 $ 3,014 Components of lease cost for the fiscal year-ended are as follows: Fiscal years ended December 31, December 25, December 26, (in thousands) Operating lease cost: Amortization of right-of-use assets $ 9,978 $ 10,283 $ 9,764 Variable lease costs not included in liability 702 1,132 1,643 Total operating lease cost $ 10,680 $ 11,415 $ 11,407 Finance lease cost: Amortization of right-of-use assets $ 1,590 $ 1,493 $ 1,185 Interest on lease liabilities 71 121 143 Total finance lease cost $ 1,661 $ 1,614 $ 1,328 Additionally, during 2022, the Company recorded impairment charges on right-of use assets of $ 0.2 million, included within impairment of brewery assets within the Company's consolidated statements of comprehensive income. Maturities of lease liabilities as of December 31, 2022 are as follows: Operating Finance Weighted- Average Leases Leases Operating Finance (in thousands) 2023 $ 10,582 $ 960 2024 10,529 362 2025 7,102 104 2026 6,671 56 2027 6,122 8 Thereafter 20,785 — Total lease payments 61,791 1,490 Less imputed interest (based on 3.4 % weighted-average ( 7,651 ) ( 31 ) Present value of lease liabilities $ 54,140 $ 1,459 9.3 5.9 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | I. Goodwill and Intangible Assets The Company has recorded intangible assets with indefinite lives and goodwill for which impairment testing is required at least annually or more frequently if events or circumstances indicate that these assets might be impaired. The Company performs its annual impairment tests and re-evaluates the useful lives of other intangible assets with indefinite lives at the annual impairment test measurement date in the third quarter of each fiscal year or when circumstances arise that indicate a possible impairment or change in useful life might exist. Goodwill. The guidance for goodwill impairment testing allows an entity to assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the estimated fair value of a reporting unit, of which the Company has one, is less than its carrying amount or to proceed directly to performing a quantitative impairment test. Under the quantitative assessment, the estimated fair value of the Company’s reporting unit is compared to its carrying value, including goodwill. The estimate of fair value of the Company’s reporting unit is generally calculated based on an income approach using the discounted cash flow method supplemented by the market approach which considers the Company’s market capitalization and enterprise value. If the estimated fair value of the Company’s reporting unit is less than the carrying value of its reporting unit, a goodwill impairment will be recognized. In estimating the fair value of the Company’s reporting unit, management must make assumptions and projections regarding such items as future cash flows, future revenues, future earnings, cost of capital, and other factors. The assumptions used in the estimate of fair value are based on historical trends and the projections and assumptions that are used in the latest operating plans. These assumptions reflect management’s estimates of future economic and competitive conditions and are, therefore, subject to change as a result of changing market conditions. If these estimates or their related assumptions change in the future, the Company may be required to recognize an impairment loss for the Company’s goodwill which could have a material adverse impact on the Company’s financial statements. No impairment of goodwill was recorded in any period. Intangible assets. The Company’s intangible assets consist primarily of a trademark and customer relationships obtained through the Company’s Dogfish Head acquisition. Customer relationships are amortized over their estimated useful lives. The Dogfish Head trademark which was determined to have an indefinite useful life is not amortized. The guidance for indefinite lived intangible asset impairment testing allows an entity to assess qualitative factors to determine whether the existence of events or circumstances indicates that it is more likely than not that the indefinite lived intangible asset is impaired or to proceed directly to performing the quantitative impairment test. Under the quantitative assessment, the trademark is evaluated for impairment by comparing the carrying value of the trademark to its estimated fair value. The estimated fair value of the trademark is calculated based on an income approach using the relief from royalty method. If the estimated fair value is less than the carrying value of the trademark, then an impairment charge is recognized to reduce the carrying value of the trademark to its estimated fair value. The Company's annual impairment testing date is September 1st of each fiscal year. During fiscal 2022, the Company evaluated the continuing negative trends of the Dogfish Head brand, including slower growth rates resulting from increased competition and updated its long-term financial forecasts for the Dogfish Head brand. These updated forecasts for the brand included reductions in revenues from the continuing negative trends in the brands’ beer products and the overall slowing craft beer industry sector which were partially offset by increases in revenues from the brands’ emerging canned cocktail products. As a result of performing this assessment, the Dogfish Head trademark asset with a carrying value of $ 98.5 million was written down to its estimated fair value of $ 71.4 million, resulting in an impairment of $ 27.1 million which was recorded during the third quarter of 2022. The Company’s intangible assets as of December 31, 2022 and December 25, 2021 were as follows: As of December 31, 2022 As of December 25, 2021 Estimated Gross Accumulated Net Book Gross Accumulated Net Book Life (Years) Value Amortization Value Value Amortization Value (in thousands) Customer relationships 15 $ 3,800 $ ( 886 ) $ 2,914 $ 3,800 $ ( 633 ) $ 3,167 Trademarks Indefinite 73,410 — 73,410 100,510 — 100,510 Total intangible assets $ 77,210 $ ( 886 ) $ 76,324 $ 104,310 $ ( 633 ) $ 103,677 Amortization expense was approximately $ 253,000 in fiscal 2022, 2021, and 2020. The Company expects to record amortization expense as follows over the five subsequent years: Fiscal Year Amount (in thousands) 2023 $ 253 2024 253 2025 253 2026 253 2027 253 Thereafter 1,649 Total amortization to be recorded $ 2,914 |
Third-Party Production Prepayme
Third-Party Production Prepayments | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Third Party Production Prepayments | J. Third-Party Production Prepayments For fiscal years 2022, 2021, and 2020 the Company brewed and packaged approximately 65 %, 56 %, and 65 %, respectively, of its volume at Company-owned breweries. The Company brewed and packaged approximately 26 %, 32 % and 3 3 % of its volume across various City Brewing Company, LLC locations for fiscal 2022, 2021, and 2020, respectively. In the normal course of its business, the Company has historically entered into various production arrangements with other brewing companies. Pursuant to these arrangements, the Company generally supplies raw materials and packaging to those brewing companies and incurs conversion fees for labor at the time the liquid is produced and packaged. The Company has made up-front payments that were used for capital improvements at these third-party production facilities that it expenses over the period of the contracts. During fiscal 2021, as a result of lower than anticipated demand for certain Truly brand styles and packages, the Company adjusted its volume plans for production at certain third-party facilities. The Company terminated relationships with some of its third-party production suppliers and recorded $ 19.6 million of costs related to terminating these contracts. In addition, the Company wrote off $ 9.5 million of amounts prepaid pursuant to a third-party production agreement that the Company has no future plans to utilize. During fiscal 2022, the Company recorded an additional $ 4.8 million of contract termination costs relating to the termination of a third-party production contract related to the slowdown of the hard seltzer market. Refer to Note C of these consolidated financial statements for further details. During fiscal 2021, the Company amended its master transaction agreement with City Brewing Company, LLC ("City Brewing") to ensure access to capacity at a new location and continued access at certain existing locations. The amendment became effective during the second quarter of fiscal year 2021, upon the closing of the purchase of the new location by City Brewing. As part of the master transaction agreement, the Company paid $ 10.0 million that was used for capital improvements at the new location during the third quarter of fiscal year 2021 and an additional $ 17.9 million to ensure access to capacity during the fourth quarter of 2021. The agreement additionally includes monthly shortfall fees beginning January 1, 2023. Total third-party production prepayments were $ 61.3 million and $ 88.3 million as of December 31, 2022 and December 25, 2021, respectively. The Company will expense the total prepaid amount of $ 61.3 million as of December 31, 2022, all of which relates to the master transaction agreement described above and other agreements with City Brewing, as a component of cost of goods sold over the contractual period ending December 31, 2025. At current production volume projections, the Company believes that it will fall short of its future annual volume commitments at certain third-party production facilities, including those that are part of the master transaction agreement described above, and will incur shortfall fees. The Company expenses the shortfall fees during the contractual period when such fees are incurred as a component of cost of goods sold. During 2022, the Company recorded $ 3.0 million shortfall fees. As of December 31, 2022, if volume for the remaining term of the production arrangements was zero, the contractual shortfall fees, with advance notice as specified in the related contractual agreements, would total approximately $ 127 million over the duration of the contracts which have expiration dates through December 31, 2031. At current volume projections, the Company anticipates that it will recognize approximately $ 72 million of shortfall fees and expects to record those expenses as follows: Expected Shortfall Fees to be Incurred (in millions) 2023 $ 19 2024 17 2025 15 2026 7 2027 7 Thereafter 7 Total shortfall fees expected to be incurred $ 72 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | K. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: December 31, December 25, (in thousands) Coworker wages, benefits, and reimbursements $ 31,449 $ 21,476 Advertising, promotional, and selling expenses 18,915 25,867 Accrued inventory and production related costs 17,986 18,587 Accrued deposits 13,090 13,521 Accrued taxes 7,229 7,340 Deferred revenue 6,840 8,049 Accrued returns 5,580 6,045 Liability for wholesaler transaction (see Note D) — 39,468 Other accrued liabilities 10,064 21,199 Total accrued expenses and other current liabilities $ 111,153 $ 161,552 |
Revolving Line of Credit
Revolving Line of Credit | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Revolving Line of Credit | L. Revolving Line of Credit During the fourth quarter of 2022, the Company amended its $ 150.0 million credit facility agreement, which now has a term not scheduled to expire until December 16, 2027 . Under the terms of the amended agreement, the Company may elect an interest rate for borrowings under the credit facility based on the applicable secured overnight financing rate ("SOFR") plus 1.1 %. At December 31, 2022, the applicable SOFR was 4.3 %. The Company incurs an annual commitment fee of 0.2 % on the unused portion of the facility and is obligated to meet certain financial covenants, which are measured using earnings before interest, tax, depreciation, and amortization (“EBITDA”) based ratios. The Company’s EBITDA to interest expense ratio was 2,331.0 as of December 31, 2022, compared to a minimum allowable ratio of 2.0 and the Company’s total funded debt to EBITDA ratio was 0.0 as of December 31, 2022, compared to a maximum allowable ratio of 2.5 . During the year ended December 31, 2022, the Company borrowed and repaid $ 30.0 million on the credit facility and paid a total of approximately $ 18,000 in related interest. There were no borrowings, repayments, or interest payments during 2021. During the year ended December 26, 2020, the Company borrowed and repaid $ 100.0 million on the credit facility and paid a total of $ 0.2 million in related interest. There were no borrowings outstanding under the credit facility as of December 31, 2022. There are also certain restrictive covenants set forth in the credit agreement. Pursuant to the negative covenants, the Company has agreed that it will not: enter into any indebtedness or guarantees other than those specified by the lender, enter into any sale and leaseback transactions, merge, consolidate, or dispose of significant assets without the lender’s prior written consent, make or maintain any investments other than those permitted in the credit agreement, or enter into any transactions with affiliates outside of the ordinary course of business. In addition, the credit agreement requires the Company to obtain prior written consent from the lender on distributions on account of, or in repurchase, retirement or purchase of its capital stock or other equity interests with the exception of the following: (a) distributions of capital stock from subsidiaries to The Boston Beer Company, Inc. and Boston Beer Corporation (a subsidiary of The Boston Beer Company, Inc.), (b) repurchase from former employees of non-vested investment shares of Class A Common Stock, issued under the Employee Equity Incentive Plan, and (c) redemption of shares of Class A Common Stock as approved by the Board of Directors and payment of cash dividends to its holders of common stock. Borrowings under the credit facility may be used for working capital, capital expenditures and general corporate purposes of the Company and its subsidiaries. In the event of a default that has not been cured, the credit facility would terminate and any unpaid principal and accrued interest would become due and payable. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | M. Income Taxes Significant components of the income tax provision (benefit) are as follows: 2022 2021 2020 (in thousands) Current: Federal $ 10,453 $ ( 4,473 ) $ 25,115 State 4,683 2,078 9,455 Total current 15,136 ( 2,395 ) 34,570 Deferred: Federal 8,196 ( 2,762 ) 16,363 State 841 ( 2,487 ) 1,337 Total deferred 9,037 ( 5,249 ) 17,700 Total income tax provision (benefit) $ 24,173 $ ( 7,644 ) $ 52,270 The reconciliations to statutory rates are as follows: 2022 2021 2020 Statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 4.1 11.0 4.4 Deduction relating to excess stock-based compensation ( 0.9 ) ( 153.8 ) ( 4.3 ) Non-deductible meals & entertainment 0.6 5.6 0.2 Change in unrecognized tax benefits (including interest and penalty) — ( 8.7 ) — Federal and state provision to return ( 0.2 ) ( 7.1 ) ( 0.1 ) Change in valuation allowance 1.2 21.9 0.1 Other 0.6 ( 0.6 ) 0.1 26.4 % ( 110.7 )% 21.4 % Significant components of the Company’s deferred tax assets and liabilities are as follows at: December 31, 2022 December 25, 2021 (in thousands) Deferred tax assets: Lease liabilities $ 13,994 $ 16,236 Inventory reserves 8,595 14,343 Stock-based compensation expense 7,441 6,713 Loss carryforwards 968 3,859 Accrued expenses 4,609 3,449 Accrued commitments for inventory at vendor locations 1,799 2,607 Tax credit carryforwards 813 1,874 Accrued destruction costs — 1,538 Other 1,833 2,703 Total deferred tax assets 40,052 53,322 Valuation allowance ( 4,600 ) ( 3,341 ) Total deferred tax assets, net of valuation allowance 35,452 49,981 Deferred tax liabilities: Property, plant, and equipment ( 103,561 ) ( 102,696 ) Right-of-use assets ( 11,375 ) ( 14,035 ) Intangible assets amortization ( 10,373 ) ( 15,024 ) Prepaid expenses ( 6,735 ) ( 5,721 ) Total deferred tax liabilities ( 132,044 ) ( 137,476 ) Net deferred tax liabilities $ ( 96,592 ) $ ( 87,495 ) The Company’s policy is to classify interest and penalties related to income tax matters in income tax expense. Interest and penalties included in the provision for income taxes amounted to $ 0 in each of the fiscal years 2022, 2021, and 2020. Accrued interest and penalties amounted to $ 0.2 million at December 31, 2022 and December 25, 2021. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2022 2021 (in thousands) Balance at beginning of period $ 232 $ 812 Increases related to current period tax positions 41 59 (Decreases) increases related to prior period tax positions ( 30 ) 36 Decreases related to lapse of statute of limitations — ( 675 ) Balance at end of period $ 243 $ 232 Included in the balance of unrecognized tax benefits at December 31, 2022 and December 25, 2021 are potential net benefits of $ 0.2 million and $ 0.2 million, respectively, that would favorably impact the effective tax rate if recognized. Unrecognized tax benefits are included in accrued expenses in the accompanying consolidated balance sheets and adjusted in the period in which new information about a tax position becomes available or the final outcome differs from the amount recorded. As of December 31, 2022, the Company’s 2019, 2020, and 2021 federal income tax returns remain subject to examination by IRS. The Company’s state income tax returns remain subject to examination for three or four years depending on the state’s statute of limitations. In addition, the Company is generally obligated to report changes in taxable income arising from federal income tax audits. The Company is not currently under any income tax audits as of December 31, 2022. As of December 31, 2022, the Company’s deferred tax assets include a valuation allowance of $ 4.6 million, compared to $ 3.3 million at December 25, 2021. The valuation allowance as of December 31, 2022 and December 25, 2021 were primarily related to stock-based compensation expected by management to be non-deductible under Internal Revenue Code, Section 162(m). The net increase in total valuation allowance was $ 1.3 million from December 25, 2021 to December 31, 2022, compared to a net increase of $ 1.3 million from December 26, 2020 to December 25, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | N. Commitments and Contingencies Contractual Obligations As of December 31, 2022, projected cash outflows under non-cancellable contractual obligations for the remaining years under the contracts are as follows: Payments Due by Fiscal Year Total 2023 2024 2025 2026 2027 Thereafter (in thousands) Ingredients and packaging (excluding hops and malt) $ 136,129 $ 136,129 $ — $ — $ — $ — $ — Brand support 72,826 47,998 11,460 9,431 3,937 — — Hops and malt 43,468 33,572 5,451 2,419 2,026 — — Equipment and machinery 32,354 32,354 — — — — — Other 18,831 10,704 5,390 2,737 — — — Total contractual obligations $ 303,608 $ 260,757 $ 22,301 $ 14,587 $ 5,963 $ — $ — The Company’s accounting policy for inventory and non-cancellable purchase commitments is to recognize a loss by establishing a reserve to the extent inventory levels and commitments exceed forecasted needs. The computation of the excess inventory requires management to make certain assumptions regarding future sales growth, product mix, cancellation costs and supply, among others. Actual results may differ materially from management’s estimates. The Company continues to manage inventory levels and purchase commitments in an effort to maximize utilization. However, changes in management’s assumptions regarding future sales growth, product mix and hops market conditions could result in future material losses. The Company utilizes several varieties of hops in the production of its products. To ensure adequate supplies of these varieties, the Company enters into advance multi-year purchase commitments based on forecasted future hop requirements, among other factors. These purchase commitments extend through crop year 2025 and specify both the quantities and prices, denominated in U.S. Dollar, Euros, New Zealand Dollars and British Pounds, to which the Company is committed. Hops purchase commitments outstanding at December 31, 2022 tot aled $ 15.7 mi llion, based on the exchange rates on that date. The Company does not use forward currency exchange contracts and intends to purchase future hops using the exchange rate at the time of purchase. These contracts were deemed necessary in order to bring hop inventory levels and purchase commitments into balance with the Company’s current brewing volume and hop usage forecasts. In addition, these contracts enable the Company to secure its position for future supply with hop vendors in the face of some competitive buying activity. Currently, the Company has entered into contracts for barley and wheat used in the Company’s malt with four major suppliers. The contracts cover the Company’s barley, wheat, and malt requirements for 2023 and extend through crop year 2023. These purchase commitments outstanding at December 31, 2022 totaled $ 27.7 mill ion. The Company anticipates paying shortfall fees at certain of its third-party production locations in future periods. See Note J for further discussion of the Company's third-party production arrangements and the anticipated shortfall fees. The anticipated shortfall fees are not included in the contractual obligations above. Litigation The Company is and in the future may be party to legal proceedings and claims, including class action claims, where significant damages are asserted against it. Given the inherent uncertainty of litigation, it is possible that the Company could incur liabilities as a consequence of these claims, which may or may not have a material adverse effect on the Company’s financial condition or the results of its operations. The Company accrues loss contingencies if, in the opinion of management and its legal counsel, the risk of loss is probable and the loss can be estimated. Material pending legal proceedings are discussed below. Securities Litigation. On September 14, 2021, a purported class action lawsuit was filed by an individual shareholder in the United States District Court for the Southern District of New York against the Company and three of its officers. The complaint alleges claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 between April 22, 2021 and September 8, 2021. The plaintiff claims that defendants made materially false and/or misleading statements or failed to disclose material adverse facts about the Company’s business, operations, and prospects. On October 8, 2021, a nearly identical complaint was filed against the Company by an individual shareholder in the United States District Court for the Southern District of New York. The Court consolidated the two actions and on December 14, 2021 appointed a lead plaintiff, who filed an amended complaint on January 13, 2022. The Company’s motion to dismiss the plaintiff’s complaint in the previously reported class action alleging claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 was granted by the Court on December 5, 2022. The plaintiff filed a notice of appeal on January 5, 2023 and the plaintiff’s opening brief is due April 11, 2023. The Company’s response will be due on July 11, 2023. The Company intends to continue to vigorously defend against these claims. Any ultimate outcome of this matter will depend on the nature and outcome of plaintiff’s appeal and estimating a range of potential loss, should the plaintiff’s appeal be granted, is not possible at this time. Supplier Dispute. On December 31, 2022, Ardagh Metal Packaging USA Corp. (“Ardagh”) filed an action against the Company alleging, among other things, that the Company had failed to purchase contractual minimum volumes of certain aluminum beverage can containers in 2021 and 2022. The Company denies that it breached the terms of the parties’ contract and intends to defend against the Ardagh claims vigorously. Ardagh and the Company have agreed to engage in mediation and to stay the legal proceedings by a period of 60 days to permit the mediation to proceed. A range of potential loss cannot be estimated at this time. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | O. Fair Value Measurements The Company defines fair value as the price that would be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). • Level 1 — Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. • Level 2 — Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability. • Level 3 — Level 3 inputs are unobservable inputs for the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date. The Company’s investments in money market funds are measured at fair value on a recurring basis (at least annually) and are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The money market funds are invested substantially in United States Treasury and government securities. The Company does not adjust the quoted market price for such financial instruments. Cash, receivables and payables are carried at their cost, which approximates fair value, because of their short-term nature. At December 31, 2022 and December 25, 2021, the Company had funds invested in a “Triple A” rated money market fund. The Company considers the “Triple A” rated money market fund to be a large, highly-rated investment-grade institution. As of December 31, 2022 and December 25, 2021, the Company’s cash and cash equivalents balan ce was $ 180.6 million and $ 26.9 million, respectively, including money market funds amounting to $ 174.2 million and $ 5.8 million, respectively. Non-Recurring Fair Value Measurement The fair value of the Company's Dogfish Head trademark intangible assets is classified within Level 3 of the fair value hierarchy because there are no observable inputs of market activity. When performing a quantitative assessment for impairment of the trademark asset, the Company measures the amount of impairment by calculating the amount by which the carrying value of the trademark asset exceeds its estimated fair value. The estimated fair value is determined based on an income approach using the relief from royalty method, which assumes that, in lieu of ownership, a third party would be willing to pay a royalty in order to exploit the related benefits of the trademark asset. The cash flow projections the Company uses to estimate the fair value of its Dogfish Head trademark intangible asset involves several assumptions, including (i) projected revenue growth, (ii) an estimated royalty rate, (iii) after-tax royalty savings expected from ownership of the trademark and (iv) a discount rate used to derive the estimated fair value of the trademark asset . |
Common Stock and Share-Based Co
Common Stock and Share-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Common Stock and Share-Based Compensation | P. Common Stock and Share-Based Compensation Class A Common Stock The Class A Common Stock has no voting rights, except (1) as required by law, (2) for the election of Class A Directors, and (3) that the approval of the holders of the Class A Common Stock is required for (a) certain future authorizations or issuances of additional securities which have rights senior to Class A Common Stock, (b) certain alterations of rights or terms of the Class A or Class B Common Stock as set forth in the Articles of Organization of the Company, (c) other amendments of the Articles of Organization of the Company, (d) certain mergers or consolidations with, or acquisitions of, other entities, and (e) sales or dispositions of any significant portion of the Company’s assets. Class B Common Stock The Class B Common Stock has full voting rights, including the right to (1) elect a majority of the members of the Company’s Board of Directors and (2) approve all (a) amendments to the Company’s Articles of Organization, (b) mergers or consolidations with, or acquisitions of, other entities, (c) sales or dispositions of any significant portion of the Company’s assets, and (d) equity-based and other executive compensation and other significant corporate matters. The Company’s Class B Common Stock is not listed for trading. Each share of Class B Common Stock is freely convertible into one share of Class A Common Stock, upon request of any Class B holder, and participates equally in earnings. All distributions with respect to the Company’s capital stock are restricted by the Company’s credit agreement, with the exception of distributions of capital stock from subsidiaries to The Boston Beer Company, Inc. and Boston Beer Corporation, repurchase from former employees of non-vested investment shares of Class A Common Stock issued under the Company’s equity incentive plan, redemption of certain shares of Class A Common Stock as approved by the Board of Directors and payment of cash dividends to its holders of common stock. Employee Stock Compensation Plan The Company’s Employee Equity Incentive Plan (the “Equity Plan”) currently provides for the grant of discretionary options, restricted stock awards and restricted stock units to employees, and provides for shares to be sold to employees of the Company at a discounted purchase price under its investment share program. The Equity Plan is administered by the Board of Directors of the Company, based on recommendations received from the Compensation Committee of the Board of Directors. The Compensation Committee consists of three independent directors. In determining the quantities and types of awards for grant, the Compensation Committee periodically reviews the objectives of the Company’s compensation system and takes into account the position and responsibilities of the employee being considered, the nature and value to the Company of his or her service and accomplishments, his or her present and potential contributions to the success of the Company, the value of the type of awards to the employee and such other factors as the Compensation Committee deems relevant. Stock options and related vesting requirements and terms are granted at the Board of Directors’ discretion, but generally vest ratably over three to five-year periods and, with respect to certain options granted to members of senior management, based on the Company’s performance. Generally, the maximum contractual term of stock options is ten years , although the Board of Directors may grant options that exceed the ten-year term. During fiscal years 2022, 2021, and 2020, the Company granted options to purchase 17,114 shares , 18,998 shares, 21,992 shares, respectively, of its Class A Common Stock to employees at market value on the grant dates. All of the total 2022 stock option grants were performance-based. During fiscal years 2022, 2021, and 2020, the Compan y granted 32,744 shares, 12,867 shares, and 33,403 shares, respectively, of restricted stock units to certain senior managers and key employees. All of the 2022 restricted stock unit grants are service-based and vest ratably over service periods of three to five years . The Equity Plan also has an investment share program which permits employees who have been with the Company for at least one year to purchase shares of Class A Common Stock at a discount from current market value of 0 % to 40 %, based on the employee’s tenure with the Company. Investment shares vest ratably over service periods of five years . Participants may pay for these shares either up front or through payroll deductions over an el even-month period during the year of purchase. During fiscal years 2022, 2021, and 2020, employees elected to purchase an aggregate of 10,845 investment shares, 4,954 investment shares, and 9,127 investment shares, respectively. The Company has reserved 6.7 million shares of Class A Common Stock for issuance pursuant to the Equity Plan, of which 1.0 m illion shares were available for grant as of December 31, 2022. Shares reserved for issuance under cancelled employee stock options and forfeited restricted stock are returned to the reserve under the Equity Plan for future grants or purchases. The Company also purchases unvested investment shares from employees who have left the Company at the lesser of (i) the price paid for the shares when the employee acquired the shares or (ii) the fair market value of the shares as of the date next preceding the date on which the shares are called for redemption by the Company. These shares are also returned to the reserve under the Equity Plan for future grants or purchases. Non-Employee Director Options The Company has a stock option plan for non-employee directors of the Company (the “Non-Employee Director Plan”), pursuant to which each non-employee director of the Company is granted an option to purchase shares of the Company’s Class A Common Stock upon election or re-election to the Board of Directors. Stock options issued to non-employee directors vest upon grant and have a maximum contractual term of ten years . During fiscal years 2022, 2021, and 2020 the Company granted options to purchase an aggregate of 3,810 shares, 1,422 shares, and 4,410 shares of the Company’s Class A Common Stock to non-employee directors, respectively. The Company has reserved 0.6 million shares of Class A Common Stock for issuance pursuant to the Non-Employee Director Plan, of which 0.1 million shares were available for grant as of December 31, 2022. Shares under any cancelled non-employee directors’ stock options or options that expire unexercised are returned to the reserve under the Non-Employee Director Plan for future grants. Option Activity Information related to stock options under the Equity Plan and the Non-Employee Director Plan is summarized as follows: Shares Weighted- Weighted- Aggregate Outstanding at December 25, 2021 221,354 $ 310.38 Granted 20,924 378.55 Exercised ( 30,164 ) 188.46 Cancelled/Forfeited ( 7,869 ) 339.25 Outstanding at December 31, 2022 204,245 $ 334.26 5.25 $ 15,378 Exercisable at December 31, 2022 118,829 $ 251.08 4.46 $ 11,561 Vested and expected to vest at December 31, 2022 174,154 $ 319.56 4.83 $ 14,653 Of the total options outstanding at December 31, 2022 , 17,114 shares were performance-based options for which the performance criteria had yet to be achieved and 7,147 shar es were performance-based options for which the performance criteria had been met but yet to be approved for vesting by the Board of Directors. W eighted average assumptions used to estimate fair values of stock options on the date of grants are as follows: 2022 2021 2020 Expected volatility 38.0 % 36.1 % 32.6 % Risk-free interest rate 2.11 % 1.45 % 1.09 % Expected dividends 0 % 0 % 0 % Exercise factor 3.0 times 2.6 times 2.1 times Discount for post-vesting restrictions 0.0 % 0.0 % 0.0 % Expected volatility is based on the Company’s historical realized volatility. The risk-free interest rate represents the implied yields available from the U.S. Treasury zero-coupon yield curve over the contractual term of the option when using the trinomial option-pricing model. Expected dividend yield is 0 % because the Company has not paid dividends in the past and currently has no known intention to do so in the future. Exercise factor and discount for post-vesting restrictions are based on the Company’s historical experience. The total fair value of options vested during fiscal years 2022, 2021, and 2020 was $ 6.6 million, $ 6.3 million, and $ 4.8 million, respectively. The aggregate intrinsic value of stock options exercised during fiscal years 2022, 2021, and 2020 was $ 6.9 million, $ 28.9 million, and $ 45.9 million, respectively. Non-Vested Shares Activity The following table summarizes vesting activities of shares issued under the investment share program and restricted stock awards: Number of Shares Weighted Average Fair Value Non-vested at December 25, 2021 88,848 $ 401.70 Granted 43,589 346.09 Vested ( 32,476 ) 292.27 Forfeited ( 8,750 ) 504.81 Non-vested at December 31, 2022 91,211 $ 423.60 The fair value of restricted stock awards is based on the Company’s traded stock price on the date of the grants. Fair value of investment shares is calculated using the trinomial option-pricing model. 32,476 shares vested in 2022 with a weighted average fair value of $ 292.27 , 42,038 shares vested in 2021 with a weighted average fair value of $ 227.40 , and 45,860 shares vested in 2020 with a weighted average fair value of $ 214.23 . Stock-Based Compensation The following table provides information regarding stock-based compensation expense included in operating expenses in the accompanying consolidated statements of comprehensive income: 2022 2021 2020 (in thousands) Amounts included in advertising, promotional, and $ 5,184 $ 5,612 $ 4,467 Amounts included in general and administrative 8,804 13,003 10,815 Total stock-based compensation expense $ 13,988 $ 18,615 $ 15,282 Amounts related to performance-based stock awards $ 1,524 $ 3,384 $ 2,771 The Company uses the straight-line attribution method in recognizing stock-based compensation expense for awards that vest based on service conditions. For awards that vest subject to performance conditions, compensation expense is recognized ratably for each tranche of the award over the performance period if it is probable that performance conditions will be met. The Company recognizes compensation expense, less estimated forfeitures. The estimated forfeiture rate was 19.0 %, 13.0 %, and 13.0 % for 2022, 2021, and 2020, respectively. The estimated forfeiture rate is based upon historical experience and the Company periodically reviews this rate to ensure proper projection of future forfeitures. Based on equity awards outstanding as of December 31, 2022, there is $ 23.7 million of unrecognized compensation costs, net of estimated forfeitures, related to unvested share-based compensation arrangements that are expected to vest. Such costs are expected to be recognized over a weighted-average period of 2.0 years. Stock Repurchase Program In 1998, the Board of Directors autho rized management to implement a stock repurchase program. As of December 31, 2022, the Company has repurchased a cumulative total of approximately 13.8 million. There were no stock repurchases during fiscal years 2022, 2021, or 2020. |
Employee Retirement Plans and P
Employee Retirement Plans and Post-Retirement Medical Benefits | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Retirement Plans and Post-Retirement Medical Benefits | Q. Employee Retirement Plans and Post-Retirement Medical Benefits The Company’s workforce comprises mostly of non-union employees who are employed by Boston Beer Corporation, American Craft Brewery LLC, or Angry Orchard Cider Company, LLC. As of December 31, 2022, the Company had three unions at its Cincinnati Brewery: Local 1, Local 20, and Teamsters Local Union. No. 1199 (“Local Union 1199”). The Company has different retirement and post-retirement plans available to each group of employees. The Boston Beer Company 401(k) Plan (the “Boston Beer 401(k) Plan”) covers most non-union employees and all members of Local Union 1199. The Samuel Adams Cincinnati Brewery 401(k) Plan for Represented Employees (the “SACB 401(k) Plan”) covers members of Local 1 and Local 20. The Company additionally provides a supplement to eligible retirees from Local 1, Local 20, and Local Union 1199 to assist with the cost of Medicare gap coverage after their retirement on account of age or permanent disability (collectively, the “Retiree Medical Plan”). The Company previously offered a pension plan (the “Local 1199 Pension Plan”) to members of Local Union 1199 until the plan was terminated effective January 1, 2020. Boston Beer 401(k) Plan The Boston Beer 401(k) Plan, which was established by the Company in 1993, is a Company-sponsored defined contribution. Most non-union employees and all members of the Local 1199 union are eligible to participate in the Plan immediately upon employment . Participants may make voluntary contributions up to 60 % of their annual compensation, subject to IRS limitations. The Company matches each participant’s contribution. A maximum of 5 % of compensation is taken into account in determining the amount of the match. In January 2020, the Company amended the Boston Beer 401(k) Plan to update the Company match as follows: 100 % of the first 3 % of the eligible compensation participants contribute. Thereafter, the Company matches 50 % of the next 2 % of the eligible compensation participants contribute. The Company’s contributions to the Boston Beer 401(k) Plan amounted to $ 7.6 million, $ 7.4 million, and $ 6.4 million in fiscal years 2022, 2021, and 2020, respectively. SACB 401(k) Plan The “SACB 401(k) Plan”, which was established by the Company in 1997, is a Company-sponsored defined contribution plan. It is available to all members of Local 1 and Local 20 upon commencement of employment or, if later, attaining age 21. Participants may make voluntary contributions up to 60 % of their annual compensation to the SACB 401(k) Plan, subject to IRS limitations. Company contributions for fiscal years 2022, 2021, and 2020 were insignificant. Retiree Medical Plan To qualify for this benefit, an eligible employee must have worked for at least 20 years for the Company or its predecessor at the Company’s Cincinnati Brewery as a part of one of its three unions, must have been enrolled in the Company’s group medical insurance plan for at least 5 years before retirement, and, in the case of retirees from Local 20, for at least 7 of the last 10 years of their employment, and must be eligible for Medicare benefits under the Social Security Act. The accumulated post-retirement benefit obligation was determined using a discount rate of 5.22 % at December 31, 2022 and 2.86 % at December 25, 2021 and a 2.50 % health care cost increase based on the Cincinnati Consumer Price Index for the years 2022 and 2021. The effect of a 1% increase and the effect of a 1% decrease in the assumed health care cost trend rates on the aggregate of the service and interest cost components of net periodic post-retirement health care benefit costs and on the accumulated post-retirement benefit obligation for health care benefits would not be significant. In addition, the comprehensive medical plan offered to currently employed members of Local 20 remains available to them should they retire after reaching age 57 , and before reaching age 65 , with at least 20 years of service with the Company or its predecessor at the Company’s Cincinnati Brewery. These eligible retirees may choose to continue to be covered under the Company’s comprehensive group medical plan until they reach the age when they are eligible for Medicare health benefits under the Social Security Act or coverage under a comparable State health benefit plan. Eligible retirees pay 100 % of the cost of the coverage. The funded status of the Retiree Medical Plan is as follows: Retiree Medical Plan December 31, December 25, Benefit obligation at end of period $ 757 $ 1,040 Unfunded Status $ 757 $ 1,040 Local 1199 Pension Plan The Local 1199 Pension Plan was a Company-sponsored defined benefit pension plan. It was established in 1991 and was open to all union employees who are covered by the Company’s collective bargaining agreement with Local Union 1199, or persons on leave from the Company who were employed by Local Union 1199, and in either case who had completed 12 consecutive months of employment with at least 750 hours worked. The defined benefit was determined based on years of service since July 1991. On April 21, 2019, the Company reached an agreement with the Local Union 1199 to terminate the Local Union No. 1199 Pension Plan effective January 1, 2020 through either lump sum payments or the purchase of third-party annuities. On May 28, 2020, the Company received a positive determination letter for the termination of the plan from the IRS. During 2020, the Company completed the termination of the plan and recorded an expense of $ 2.0 million as a result of the termination. The Company made contributions of $ 2.9 million and $ 0.3 million in fiscal years 2020 and 2019, respectively. As of December 26, 2020, there was no unfunded projected pension benefit. |
Net Income per Share
Net Income per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Income per Share | R. Net Income per Share Net Income per Common Share - Basic The following table sets forth the computation of basic net income per share using the two-class method: December 31, December 25, December 26, 2022 2021 2020 (in thousands, except per share data) Net Income $ 67,263 $ 14,553 $ 191,960 Allocation of net income for basic: Class A Common Stock $ 55,812 $ 11,995 $ 153,106 Class B Common Stock 11,293 2,506 37,690 Unvested participating shares 158 52 1,164 $ 67,263 $ 14,553 $ 191,960 Weighted average number of shares for basic: Class A Common Stock 10,221 10,121 9,734 Class B Common Stock* 2,068 2,115 2,396 Unvested participating shares 28 44 74 12,317 12,280 12,204 Net income per share for basic: Class A Common Stock $ 5.46 $ 1.19 $ 15.73 Class B Common Stock $ 5.46 $ 1.19 $ 15.73 *Changes in Class B Common Stock resulted from the conversion to Class A Common stock during fiscal 2022, 2021, and 2020 as disclosed in the Company's consolidated statements of stockholders' equity. Net Income per Common Share - Diluted The Company calculates diluted net income per share for common stock using the more dilutive of (1) the treasury stock method, or (2) the two-class method, which assumes the participating securities are not exercised or converted. The following tables set forth the computation of diluted net income per share, assuming the conversion of all Class B Common Stock into Class A Common Stock: Fifty-three weeks ended December 31, 2022 Earnings to Common EPS (in thousands, except per share data) As reported - basic $ 55,812 10,221 $ 5.46 Add: effect of dilutive potential common shares Share-based awards — 56 Class B Common Stock 11,293 2,068 Net effect of unvested participating shares 1 — Net income per common share - diluted $ 67,106 $ 12,345 $ 5.44 Fifty-two weeks ended December 25, 2021 Earnings to Common EPS (in thousands, except per share data) As reported - basic $ 11,995 10,121 $ 1.19 Add: effect of dilutive potential common shares Share-based awards — 138 Class B Common Stock 2,506 2,115 Net effect of unvested participating shares 52 62 Net income per common share - diluted $ 14,553 12,436 $ 1.17 Fifty-two weeks ended December 26, 2020 Earnings to Common EPS (in thousands, except per share data) As reported - basic $ 153,106 9,734 $ 15.73 Add: effect of dilutive potential common shares Share-based awards — 153 Class B Common Stock 37,690 2,396 Net effect of unvested participating shares 14 — Net income per common share - diluted $ 190,810 12,283 $ 15.53 Basic net income per common share for each share of Class A Common Stock and Class B Common Stock is $ 5.46 , $ 1.19 , and $ 15.73 for the fiscal years 2022, 2 021, and 2020, respectively, as each share of Class A and Class B participat es equally in earnings. Shares of Class B are convertible at any time into shares of Class A on a one -for-one basis at the option of the stockholder. Weighted average stock options to purchase approx imately 17,000 shares of Class A Common Stock were outstanding during fiscal 2022 and 2021 but not included in computing d iluted income per share because their effects were anti-dilutive. No stock options were excluded during fiscal 2020. Additionally, approximately 1,000 performance awards during fiscal 2022 and fiscal 2021 were outstanding but not included in computing dilutive income per share because the performance criteria o f these stock options were not met at the respective fiscal year ends. No performance awards or performance-based stock options were excluded during fiscal 2020. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | S. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss represents amounts of unrecognized actuarial gains or losses related to the Company sponsored defined benefit pension plan and post-retirement medical plan, net of tax effect, and cumulative currency translation adjustments. Changes in accumulated other comprehensive loss represent actuarial losses or gains, net of tax effect, recognized as components of net periodic benefit costs and currency translation adjustments due to tax rate changes in the period. The following table details the changes in accumulated other comprehensive loss for 2022, 2021, and 2020 (in thousands): Accumulated Balance at December 28, 2019 $ ( 1,669 ) Deferred pension and other post-retirement benefit costs, 502 1,611 Amortization of Deferred benefit costs, net of taxes of $ 35 ( 219 ) Currency translation adjustment 25 Balance at December 26, 2020 $ ( 252 ) Amortization of Deferred benefit costs, net of taxes of $ 20 90 Currency translation adjustment ( 32 ) Balance at December 25, 2021 ( 194 ) Amortization of Deferred benefit costs, net of taxes of $ 95 253 Currency translation adjustment ( 269 ) Balance at December 31, 2022 $ ( 210 ) |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | T. Valuation and Qualifying Accounts The Company maintains reserves against accounts receivable for doubtful accounts and inventory for obsolete and slow-moving inventory. The Company also maintains reserves against accounts receivable for distributor promotional allowances. In addition, the Company maintains a reserve for estimated returns of stale beer, which is included in accrued expenses. Allowance for Doubtful Accounts Balance at Net Provision Amounts Balance at (In thousands) 2022 $ 353 $ 326 $ ( 261 ) $ 418 2021 $ 535 $ 182 $ ( 364 ) $ 353 2020 $ 47 $ 488 $ — $ 535 Discount Accrual Balance at Net Provision Amounts Balance at (In thousands) 2022 $ 11,221 $ 54,825 $ ( 57,867 ) $ 8,179 2021 $ 9,357 $ 72,680 $ ( 70,816 ) $ 11,221 2020 $ 6,272 $ 59,279 $ ( 56,194 ) $ 9,357 Inventory Obsolescence Reserve Balance at Net Provision Amounts Balance at (In thousands) 2022 $ 43,055 $ 35,867 $ ( 56,946 ) $ 21,976 2021 $ 6,331 $ 62,616 $ ( 25,892 ) $ 43,055 2020 $ 6,375 $ 11,248 $ ( 11,292 ) $ 6,331 Stale Beer Reserve Balance at Net Provision Amounts Balance at (In thousands) 2022 $ 6,045 $ 19,589 $ ( 20,054 ) $ 5,580 2021 $ 3,092 $ 9,537 $ ( 6,584 ) $ 6,045 2020 $ 1,828 $ 8,411 $ ( 7,147 ) $ 3,092 |
Licensing Agreements
Licensing Agreements | 12 Months Ended |
Dec. 31, 2022 | |
Licensing agreements [Abstract] | |
Licensing Agreements | U. Licensing Agreements Beam Suntory Licensing Agreement On July 14, 2021, the Company signed two collaboration agreements with Jim Beam Brands Co. (“Jim Beam”) to develop, market and sell alcohol beverages. These agreements are perpetual, with regular assessments of the partnership performance every 5 years, beginning in Year 5, giving rise to the option to continue agreement terms or terminate the partnership. Under the first of these agreements, the Company is responsible for developing and bringing to market through its distribution network one or more flavored malt beverage products under brand name(s) from the Jim Beam portfolio, beginning with the Sauza brand. Under the second agreement, Jim Beam is responsible for developing and bringing to market through its distribution network one or more full bottled distilled spirits products under brand(s) from the Company’s portfolio, beginning with the Truly brand. The parties began shipping beverages to customers under these agreements during the first quarter of 2022. Under the first agreement, the Company is required to make payments to Jim Beam for their share of the brand contribution of the flavored malt beverages sold by the Company. The brand contribution amounts due to Beam are recorded as a component of costs of goods sold. Under the second agreement, Jim Beam is required to make payments to the Company for the Company’s share of the brand contribution of the full-strength bottled distilled spirits sold by Jim Beam. The Company and Jim Beam also reimburse each other for certain marketing costs as they are incurred. These marketing costs are recorded in advertising, promotional and selling expenses. The Company’s sales of Jim Beam branded flavored malt beverages to third parties and the brand contribution payments received or owed the Company by Jim Beam for the use of the Company’s brand names are recorded within net revenue. Total net revenue recognized under these agreements amounted to less than 1 % of the Company's total net revenues during the year ended December 31, 2022. Pepsi Licensing Agreement On August 9, 2021, the Company signed a series of agreements with PepsiCo, Inc. (“Pepsi”) to develop, market and sell alcohol beverages. The term of this agreement is perpetual, with provisions to terminate within the initial 2 years for a limited number of reasons. Under this agreement the Company is responsible for developing, manufacturing, and marketing a flavored malt beverage product under Pepsi’s MTN DEW® brand. As part of the agreements, Pepsi provides certain proprietary ingredients and also licenses the Company the use of its MTN DEW® and Hard MTN DEW® trademarks in connection with manufacturing, promoting, marketing, and distributing the developed product through the Pepsi distribution network. The Company retains the right to distribute the developed product through its own distribution network for customers in the on-premise channel. The Company began shipping flavored malt beverages to Pepsi during the first quarter of 2022. Pursuant to the terms of the agreements, the Company makes payments to Pepsi for proprietary ingredients, freight costs to ship the product to Pepsi, and certain marketing services. The cost of the proprietary ingredients above fair market value are recorded within net revenue at the time revenue is recognized for the flavored malt beverages sold to Pepsi and were $ 2.5 million during 2022. Freight costs and marketing costs are recorded in advertising, promotional and selling expenses. The excess cost over fair market value of proprietary ingredients on hand at the end of the period are classified within prepaid expenses and other current assets as of December 31, 2022. The excess over fair market value for inventory on hand was $ 0.4 million as of December 31, 2022 . |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | V. Related Party Transactions The Company has entered into a lease with the Dogfish Head founders and other owners of buildings used in certain of the Company’s restaurant operations. The lease is for ten years with renewal options. The total payments due under the initial ten year term is $ 3.6 million. Total related party expense recognized was approximately $ 366,000 , $ 348,000 and $ 348,000 for fiscal 2022, 2021, and 2020, respectively. Other related party expenses and transactions totaled less than $ 0.1 million for fiscal 2022, 2021, and 2020. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | W. Subsequent Events The Company evaluated subsequent events occurring after the balance sheet date, December 31, 2022, through the issuance of these financial statements and concluded that there were no events of which management was aware that occurred that would require any adjustment to or disclosure in the accompanying consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year The Company’s fiscal year is a fifty-two or fifty-three-week period ending on the last Saturday in December. The 2022 fiscal year consisted of fifty-three weeks, while the 2021 and 2020 fiscal years both consisted of fifty-two weeks. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly-owned. All intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with United States generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities during the reporting periods, the reported amounts of revenue and expenses during the reporting periods and the disclosure of contingent assets and liabilities at the date of the financial statements. On an ongoing basis, the Company bases estimates and assumptions on historical experience, currently available information, and various other factors that management believes to be reasonable under the circumstances. Actual results may differ materially from these estimates and assumptions. The accounting policies which the Company believes involve the most significant application of judgment or involve complex estimations are inventories and associated reserves, revenue reserves, assumptions surrounding the recoverability of long-lived assets, share-based compensation valuations, and income taxes. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents at December 31, 2022 and December 25, 2021 included cash on-hand and money market instruments that are highly liquid investments. Cash and cash equivalents are carried at cost, which approximates fair value. |
Restricted Cash | Restricted Cash There was no restricted cash balance at December 31, 2022. At December 25, 2021 restricted cash included money received from a distributor pursuant to an indemnification agreement to consolidate distribution rights in a region in accordance with state regulations. Restricted cash is carried at cost, which approximates fair value. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts The Company’s accounts receivable primarily consist of trade receivables. The Company records an allowance for doubtful accounts that is based on historical trends, customer knowledge, any known disputes, and the aging of the accounts receivable balances combined with management’s estimate of future potential recoverability. Receivables are written off against the allowance after all attempts to collect a receivable have failed. The Company believes its allowance for doubtful accounts as of December 31, 2022 and December 25, 2021 are adequate, but actual write-offs could exceed the recorded allowance. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash equivalents, restricted cash, and trade receivables. The Company places its cash equivalents and restricted cash with high credit quality financial institutions. As of December 31, 2022, the Company’s cash and cash equivalents were invested in investment-grade, highly liquid U.S. government agency corporate money market accounts. The Company sells primarily to a network of independent wholesalers in the United States and to a network of foreign wholesalers, importers or other agencies (collectively referred to as “Distributors”). In 2022, 2021, and 2020, sales to foreign Distributors were approximate ly 4% of total sales. Receivables arising from these sales are not collateralized; however, credit risk is minimized as a result of the large and diverse nature of the Company’s customer base. There were no individual customer accounts receivable balances outstanding at December 31, 2022 or December 25, 2021 that were in excess of 10% of the gross accounts receivable balance on those dates. No individual customers represented more than 10% o f the Company’s revenues in fiscal years 2022, 2021, or 2020. |
Financial Instruments and Fair Value of Financial Instruments | Financial Instruments and Fair Value of Financial Instruments The Company’s primary financial instruments at December 31, 2022 and December 25, 2021 consisted of cash equivalents, restricted cash, accounts receivable, and accounts payable. The Company determines the fair value of its financial assets and liabilities in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures (“ASC 820”). The Company believes that the carrying amount of its cash equivalents, restricted cash, accounts receivable, and accounts payable approximates fair value due to the short-term nature of these assets and liabilities. The Company is not exposed to significant interest, currency or credit risks arising from these financial assets and liabilities. |
Inventories and Provision for Excess or Expired Inventory | Inventories and Provision for Excess or Expired Inventory Inventories consist of raw and packaging materials, work in process and finished goods. Raw materials, which principally consist of hops, malt, fruit juices, other brewing materials and packaging, are stated at the lower of cost (first-in, first-out basis) or net realizable value. The Company’s goal is to maintain on-hand a supply of approximately two years for essential hop varieties, in order to limit the risk of an unexpected reduction in supply. Inventories are generally classified as current assets. The Company classifies hops inventory in excess of two years of forecasted usage in other long-term assets. The cost elements of work in process and finished goods inventory consist of raw materials, direct labor and manufacturing overhead. Packaging design costs are expensed as incurred. The Company enters into multi-year purchase commitments in order to secure adequate supply of ingredients and packaging, to brew and package its products. Inventory on hand totaled $ 161.6 million at December 31, 2022. The provisions for excess or expired inventory are based on management’s estimates of forecasted usage of inventories on hand. Forecasting usage involves significant judgments regarding future demand for the Company’s various existing products and products under development as well as the potency and shelf-life of various raw material ingredients and finished goods. A significant change in the timing or level of demand for certain products as compared to forecasted amounts may result in recording additional provisions for excess or expired inventory in the future. Provision for excess or expired inventory included in cost of goods sold was $ 35.9 million, $ 62.6 million, and $ 11.3 million in fiscal years 2022, 2021, and 2020 respectively. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant, and equipment are stated at cost or fair value as of the date of acquisition. Expenditures for repairs and maintenance are expensed as incurred. Major renewals and betterments that extend the life of the property are capitalized. Depreciation is computed using the straight-line method based upon the estimated useful lives of the underlying assets as follows: Kegs 5 years Computer software and equipment 2 to 5 years Office equipment and furniture 3 to 7 years Machinery and plant equipment 3 to 20 years Leasehold improvements Lesser of the remaining term of the lease or estimated useful life of the asset Building and building improvements 12 to 20 years , or the remaining useful life of the building, whichever is shorter For purposes of determining whether there are any impairment losses on brewery assets, as further discussed below, management has historically examined the carrying value of the Company’s identifiable long-lived assets, including their useful lives, semi-annually, or more frequently when indicators of impairment are present. Evaluations of whether indicators of impairment exist involve judgments regarding the current and future business environment and the length of time the Company intends to use the asset. If an impairment loss is identified based on the fair value of the asset, as compared to the carrying value of the asset, such loss would be charged to expense in the period the impairment is identified. Furthermore, if the review of the carrying values of the long-lived assets indicates impairment of such assets, the Company may determine that shorter estimated useful lives are more appropriate. In that event, the Company will be required to record additional depreciation in future periods, which will reduce earnings. Estimating the amount of impairment, if any, requires significant judgments including identification of potential impairments, market comparison to similar assets, estimated cash flows to be generated by the asset, discount rates, the remaining useful life of the asset, and the usefulness of the asset in consideration of future business plans. Impairment of brewery assets classified as property, plant, and equipment included in operating expenses was $ 2.6 million , $ 18.5 million and $ 4.4 million in fiscal years 2022, 2021, and 2020, respectively . Factors generally considered important which could trigger an impairment review on the carrying value of long-lived assets include the following: (1) significant underperformance relative to historical or projected future operating results; (2) significant changes in the manner of use of acquired assets or the strategy for the Company’s overall business; (3) underutilization of assets; and (4) discontinuance of products by the Company or its customers. |
Segment Reporting | Segment Reporting The Company consists of one operating segment that produces and sells alcohol beverages under various brands. All brands are predominantly beverages that are manufactured using similar production processes, have comparable alcohol content, generally fall under the same regulatory environment, and are sold to the same types of customers in similar size quantities at similar price points, with similar profit margins, and through the same channels of distribution. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company has recorded intangible assets with indefinite lives and goodwill for which impairment testing is required at least annually or more frequently if events or circumstances indicate that these assets might be impaired. The Company performs its annual impairment tests and re-evaluates the useful lives of other intangible assets with indefinite lives at the annual impairment test measurement date in the third quarter of each fiscal year or when circumstances arise that indicate a possible impairment or change in useful life might exist. The guidance for goodwill impairment testing allows an entity to assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the estimated fair value of a reporting unit, of which the Company has one, is less than its carrying amount or to proceed directly to performing a quantitative impairment test. Under the quantitative assessment, the estimated fair value of the Company’s reporting unit is compared to its carrying value, including goodwill. The estimate of fair value of the Company’s reporting unit is generally calculated based on an income approach using the discounted cash flow method supplemented by the market approach which considers the Company’s market capitalization and enterprise value. If the estimated fair value of the Company’s reporting unit is less than the carrying value of its reporting unit, a goodwill impairment will be recognized. In estimating the fair value of the Company’s reporting unit, management must make assumptions and projections regarding such items as future cash flows, future revenues, future earnings, cost of capital, and other factors. The assumptions used in the estimate of fair value are based on historical trends and the projections and assumptions that are used in the latest operating plans. These assumptions reflect management’s estimates of future economic and competitive conditions and are, therefore, subject to change as a result of changing market conditions. If these estimates or their related assumptions change in the future, the Company may be required to recognize an impairment loss for the Company’s goodwill which could have a material adverse impact on the Company’s financial statements. The Company’s intangible assets consist primarily of a trademark and customer relationships obtained through the Company’s Dogfish Head acquisition. Customer relationships are amortized over their estimated useful lives. The Dogfish Head trademark which was determined to have an indefinite useful life is not amortized. The guidance for indefinite lived intangible asset impairment testing allows an entity to assess qualitative factors to determine whether the existence of events or circumstances indicates that it is more likely than not that the indefinite lived intangible asset is impaired or to proceed directly to performing the quantitative impairment test. Under the quantitative assessment, the trademark is evaluated for impairment by comparing the carrying value of the trademark to its estimated fair value. The estimated fair value of the trademark is calculated based on an income approach using the relief from royalty method. If the estimated fair value is less than the carrying value of the trademark, then an impairment charge is recognized to reduce the carrying value of the trademark to its estimated fair value. Significant judgement is required to estimate the fair value the Dogfish Head trademark. Accordingly, the Company obtains the assistance of third-party valuation specialists as part of the impairment evaluation. In estimating the fair value of the trademark, management must make assumptions and projections regarding future cash flows based upon future revenues, the market-based royalty rate, the discount rate, the tax rate and other factors. These assumptions reflect management’s estimates of future economic and competitive conditions and consider many factors including macroeconomic conditions, industry growth rates, competitive activities, as well as the impact the COVID-19 pandemic has had on the Company's Dogfish Head trademarked products. The assumptions and projections used in the estimate of fair value are consistent with those used in current operating plans and the Company believes they are reasonable . |
Refundable Deposits on Kegs and Pallets | Refundable Deposits on Kegs and Pallets The Company distributes its packaged hard seltzer, beer and hard cider primarily in cans and glass bottles and its draft beer in kegs and such cans, bottles, and kegs are shipped on pallets to Distributors. Most kegs and pallets are owned by the Company. Kegs are reflected in the Company’s balance sheets at cost and are depreciated over the estimated useful life of the keg, while pallets are expensed upon purchase. Upon shipment of beer to Distributors, the Company collects a refundable deposit on the kegs and certain pallets, which is included in current liabilities in the Company’s balance sheets. Upon return of the kegs and pallets to the Company, the deposit is refunded to the Distributor. The Company has experienced some loss of kegs and pallets and anticipates that some loss will occur in future periods due to the significant volume of kegs and pallets handled by each Distributor and retailer, the homogeneous nature of kegs and pallets owned by most brewers, and the relatively small deposit collected for each keg when compared with its market value. The Company believes that this is an industry-wide issue and that the Company’s loss experience is not atypical. The Company believes that the loss of kegs and pallets, after considering the forfeiture of related deposits, has not been material to the financial statements. The Company uses internal records, records maintained by Distributors, records maintained by other third-party vendors and historical information to estimate the physical count of kegs and pallets held by Distributors. These estimates affect the amount recorded as property, plant and equipment and current liabilities as of the date of the financial statements. The actual liability for refundable deposits could differ from these estimates. For the year ended December 31, 2022, the Co mpany decreased its liability for refundable deposits, gross property, plant, and equipment and related accumulated depreciation by $ 0.4 million, $ 1.0 million and $ 1.0 million, respectively. For the year ended December 25, 2021, the Company decreased its liability for refundable deposits, gross property, plant, and equipment and related accumulated depreciation by $ 0.5 millio n, $ 0.9 million and $ 0.9 million, respectively. As of December 31, 2022, and December 25, 2021, the Company’s balance sheet includes $ 13.0 million and $ 13.4 million, respectively, in refundable deposits on kegs and pallets and $ 1.0 million and $ 0.2 milli on, respectively, in kegs, net of accumulated depreciation. |
Income Taxes | Income Taxes The Company provides for deferred taxes using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s consolidated financial statements or tax returns. This results in differences between the book and tax basis of the Company’s assets, liabilities and carry-forwards, such as tax credits. In estimating future tax consequences, all expected future events, other than enactment of changes in the tax laws or rates, are generally considered. Valuation allowances are provided when recovery of deferred tax assets does not meet the more likely than not standards as defined in ASC Topic 740, Income Taxes . The calculation of the Company’s uncertain tax positions involves dealing with uncertainties in the application of tax regulations in several different state tax jurisdictions. The Company is periodically reviewed by tax authorities regarding the amount of taxes due. These reviews include inquiries regarding the timing and amount of deductions and the allocation of income among various tax jurisdictions. The Company records estimated reserves for exposures associated with positions that it takes on its income tax returns that do not meet the more likely than not standards as defined in ASC Topic 740, Income Taxes . |
Revenue Recognition and Classification of Customer Programs and Incentives | Revenue Recognition and Classification of Customer Programs and Incentives During fiscal years 2022, 2021, and 2020 approxi mately 95 % of the Company’s revenue was from shipments of its products to domestic Distributors and 4 % from shipments to international Distributors, primarily located in Canada. Approximately 1 % o f the Company’s revenue is from retail beer, cider, food and merchandise sales at the Company’s retail locations. The Company recognizes revenue when obligations under the terms of a contract with its customer are satisfied; generally, this occurs with the transfer of control of its products. Revenue is measured as the amount of consideration expected to be received in exchange for transferring products. If the conditions for revenue recognition are not met, the Company defers the revenue until all conditions are met. As of December 31, 2022, and December 25, 2021, the Company had deferred revenue of $ 6.8 million and $ 8.0 million, respectively, related to product shipped prior to these dates for which the criteria to recognize revenue was not met as of these dates. These amounts are included in accrued expenses and other current liabilities in the accompanying consolidated balance sheets. The Company is committed to maintaining the freshness of its products in the market. In certain circumstances and with the Company’s approval, the Company accepts and destroys stale beer that is returned by Distributors. The Company generally credits approximately fifty percent of the distributor’s cost of beer that has passed its freshness expiration date when it is returned to the Company or destroyed. The Company reduces revenue and establishes an accrual based upon both historical returns, which is applied to an estimated lag time for receipt of product, and knowledge of specific return transactions. Estimating this reserve involves significant judgments and estimates, including comparability of historical return trends to future trends, lag time from date of sale to date of return, and product mix of returns. Stale beer expense is reflected in the accompanying financial statements as a reduction of revenue. Historically, the cost of actual stale beer returns has been in line with established reserves; however, the cost could differ mat erially from the reserves which would impact revenue. As of December 31, 2022, and December 25, 2021, the stale beer reserve was $ 5.6 million and $ 6.0 million, respectively. These amounts are included in accrued expenses and other current liabilities in the accompanying consolidated balance sheets. Provision for stale beer recorded as reductions to revenue totaled $ 19.6 mill ion, $ 9.5 million, and $ 8.4 million in fiscal years 2022, 2021, and 2020 respectively. Customer programs and incentives are a common practice in the alcohol beverage industry. Amounts paid in connection with customer programs and incentives are recorded as reductions to net revenue or as advertising, promotional and selling expenses, based on the nature of the expenditure. Customer incentives and other payments made to Distributors are primarily based upon the performance of certain marketing and advertising activities. Depending on applicable state laws and regulations, these activities promoting the Company’s products may include, but are not limited to, point-of-sale and merchandise placement, samples, product displays, promotional programs at retail locations and meals, travel and entertainment. Amounts paid to customers in conn ection with these programs that were recorded as reductions to net revenue or as advertising, promotional and selling expenses totaled $ 95.9 million, $ 126.1 million and $ 85.0 million in fiscal years 2022, 2021, and 2020, respectively. Estimates are based on historical and projected experience for each type of program or customer and have historically been in line with actual costs incurred. Customer promotional discount programs are entered into with Distributors for certain periods of time. Amounts paid to Distributors in connection with these programs in fiscal years 2022, 2021, and 2020 were $ 54.8 million, $ 72.7 million and $ 59.3 million, respectively. The reimbursements for discounts to Distributors are recorded as reductions to net revenue. The agreed-upon discount rates are applied to certain Distributors’ sales to retailers, based on volume metrics, in order to determine the total discounted amount. The computation of the discount allowance requires that management make certain estimates and assumptions that affect the timing and amounts of revenue and liabilities recorded. Actual promotional discounts owed and paid have historically been in line with allowances recorded by the Company; however, the amounts could differ from the estimated allowances. Customer incentives and other payments are made primarily to Distributors based upon the performance of certain marketing and advertising activities. Depending on applicable state laws and regulations, these activities promoting the Company’s products may include, but are not limited to point-of-sale and merchandise placement, samples, product displays, promotional programs at retail locations and meals, travel and entertainment. Amounts paid to customers in connection with these programs in fiscal years 2022, 2021, and 2020 were $ 41.1 million, $ 53.4 million and $ 25.7 million, respectively. In fiscal years 2022, 2021, and 2020, the Company recorded certain of these costs in the total amount of $ 29.9 million, $ 42.0 million and $ 23.1 . million, respectively as reductions to net revenue. Costs recognized in net revenues include, but are not limited to, promotional discounts, sales incentives and certain other promotional activities. Costs recognized in advertising, promotional and selling expenses include point of sale materials, samples and media advertising expenditures in local markets. These costs are recorded as incurred, generally when invoices are received; however certain estimates are required at the period end. Estimates are based on historical and projected experience for each type of program or customer and have historically been in line with actual costs incurred. In connection with its preparation of financial statements and other financial reporting, management is required to make certain estimates and assumptions regarding the amount, timing and classification of expenditures resulting from these activities. Actual expenditures incurred could differ from management’s estimates and assumptions. |
Excise Taxes | Excise Taxes The Company is responsible for compliance with TTB regulations, including making timely and accurate excise tax payments. The Company is subject to periodic compliance audits by the TTB. Individual states also impose excise taxes on alcohol beverages in varying amounts. The Company calculates its excise tax expense based upon units shipped and on its understanding of the applicable excise tax laws. |
Cost of Goods Sold | Cost of Goods Sold The following expenses are included in cost of goods sold in the accompanying consolidated statements of comprehensive income: raw material costs, packaging material costs, costs and income related to deposit activity, purchasing and receiving costs, manufacturing labor and overhead, brewing and processing costs, inspection costs relating to quality control, inbound freight charges, depreciation expense related to manufacturing equipment and warehousing costs, which include rent, labor and overhead costs. |
Shipping Costs | Shipping Costs Costs incurred for the shipping of products to customers are included in advertising, promotional and selling expenses in the accompanying consolidated statements of comprehensive income. The Company incurred shi pping costs of $ 165.5 million, $ 166.6 million, and $ 97.6 million in fiscal years 2022, 2021, and 2020, respectively. |
Advertising, Promotional, and Selling Expenses | Advertising, Promotional, and Selling Expenses The following expenses are included in advertising, promotional and selling expenses in the accompanying consolidated statements of comprehensive income: media advertising and production costs, sales and brand related expenses, sales and brand salary and benefit expenses, stock compensation, meals, travel and entertainment expenses, promotional activity expenses, shipping costs related to shipments of finished goods from manufacturing locations to distributor locations and point-of-sale items. Total advertising and sales promotional expenditu res of $ 226.7 million, $ 291.3 million, and $ 211.2 million were included in advertising, promotional and selling expenses in the accompanying consolidated statements of comprehensive income for fiscal years 2022, 2021, and 2020, respectively. The Company conducts certain advertising and promotional activities in its Distributors’ markets and the Distributors make contributions to the Company for such efforts. Reimbursements from Distributors for advertising and promotional activities are recorded as reductions to advertising, promotional and selling expenses. |
General and Administrative Expenses | General and Administrative Expenses The following expenses are included in general and administrative expenses in the accompanying consolidated statements of comprehensive income: general and administrative salary and benefit expenses, stock compensation, insurance costs, consulting and professional service fees, rent and utility expenses, meals, travel and entertainment expenses for general and administrative employees, and other general and administrative overhead costs. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for share-based awards in accordance with ASC Topic 718, Compensation – Stock Compensation (“ASC 718”), which generally requires recognition of share-based compensation costs in financial statements based on fair value. Compensation cost is recognized over the period during which an employee is required to provide services in exchange for the award (the requisite service period). The amount of compensation cost recognized in the consolidated statements of comprehensive income is b ased on the awards ultimately expected to vest, and therefore, reduced for estimated forfeitures. Stock-based compensation was $ 14.0 millio n , $ 18.6 million and $ 15.3 million in fiscal years 2022, 2021, and 2020, respectively. As permitted by ASC 718, the Company elected to use a lattice model, such as the trinomial option-pricing model, to estimate the fair values of stock options. All option-pricing models require the input of subjective assumptions. These assumptions include the estimated volatility of the Company’s common stock price over the expected term, the expected dividend rate, the estimated post-vesting forfeiture rate, the risk-free interest rate and expected exercise behavior. See Note Q for further discussion of the application of the option-pricing models. In addition, an estimated pre-vesting forfeiture rate is applied in the recognition of the compensation charge. Periodically, the Company grants performance-based stock options. The Company only recognizes compensation expense with respect to these options if it is probable that the performance targets will be met. Consequently, at the end of each reporting period, the Company estimates whether it is probable that performance targets will be met. Changes in the subjective assumptions and estimates can materially affect the amount of stock-based compensation expense recognized in the consolidated statements of comprehensive income. |
Net Income Per Share | Net Income Per Share Basic net income per share is calculated by dividing net income by the weighted-average common shares outstanding. Diluted net income per share is calculated by dividing net income by the weighted-average common shares and potentially dilutive securities outstanding during the period using the treasury stock method or the two-class method, whichever is more dilutive |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives | Kegs 5 years Computer software and equipment 2 to 5 years Office equipment and furniture 3 to 7 years Machinery and plant equipment 3 to 20 years Leasehold improvements Lesser of the remaining term of the lease or estimated useful life of the asset Building and building improvements 12 to 20 years , or the remaining useful life of the building, whichever is shorter |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories consist of the following: December 31, December 25, (in thousands) Current inventory: Raw materials $ 81,225 $ 78,545 Work in process 20,374 17,764 Finished goods 46,851 52,809 Total current inventory 148,450 149,118 Long term inventory 13,192 12,655 Total inventory $ 161,642 $ 161,773 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following: December 31, December 25, (in thousands) Prepaid advertising, promotional and selling costs $ 8,878 $ 11,193 Prepaid taxes 6,753 518 Prepaid software and consulting fees 4,549 4,698 Prepaid insurance 3,497 3,569 Other 3,784 1,484 Total prepaid expenses and other current assets $ 27,461 $ 21,462 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Property, plant, and equipment consisted of the following: December 31, December 25, (in thousands) Machinery and plant equipment $ 760,895 $ 729,251 Building and building improvements 237,561 207,565 Leasehold improvements 75,260 70,422 Kegs 58,492 59,794 Office equipment and furniture 36,935 30,085 Land 25,777 25,668 Assets under construction 41,323 35,619 Property, plant, and equipment, gross 1,236,243 1,158,404 Less accumulated depreciation ( 568,334 ) ( 493,589 ) Property, plant, and equipment, net $ 667,909 $ 664,815 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
ROU assets and lease liabilities | Total right-of-use ("ROU") assets and lease liabilities were as follows: Classification Leases December 31, December 25, (in thousands) Right-of-use assets Operating lease assets Operating right-of-use assets $ 43,768 $ 52,774 Finance lease assets Property, plant, and equipment, net 1,424 3,014 Lease Liabilities Current Operating lease liabilities Current operating lease liabilities 8,866 7,634 Finance lease liabilities Accrued expenses and other current liabilities 935 1,598 Non-current Operating lease liabilities Non-current operating lease liabilities 45,274 53,849 Finance lease liabilities Other liabilities 524 1,459 |
Schedule of gross value and accumulated depreciation of right of use assets | The gross value and accumulated depreciation of ROU assets related to finance leases were as follows: Finance Leases December 31, December 25, (in thousands) Gross value $ 5,998 $ 5,998 Accumulated amortization ( 4,574 ) ( 2,984 ) Carrying value $ 1,424 $ 3,014 |
Components of lease cost | Components of lease cost for the fiscal year-ended are as follows: Fiscal years ended December 31, December 25, December 26, (in thousands) Operating lease cost: Amortization of right-of-use assets $ 9,978 $ 10,283 $ 9,764 Variable lease costs not included in liability 702 1,132 1,643 Total operating lease cost $ 10,680 $ 11,415 $ 11,407 Finance lease cost: Amortization of right-of-use assets $ 1,590 $ 1,493 $ 1,185 Interest on lease liabilities 71 121 143 Total finance lease cost $ 1,661 $ 1,614 $ 1,328 Additionally, during 2022, the Company recorded impairment charges on right-of use assets of $ 0.2 million, included within impairment of brewery assets within the Company's consolidated statements of comprehensive income. |
Maturities of lease liabilities | Maturities of lease liabilities as of December 31, 2022 are as follows: Operating Finance Weighted- Average Leases Leases Operating Finance (in thousands) 2023 $ 10,582 $ 960 2024 10,529 362 2025 7,102 104 2026 6,671 56 2027 6,122 8 Thereafter 20,785 — Total lease payments 61,791 1,490 Less imputed interest (based on 3.4 % weighted-average ( 7,651 ) ( 31 ) Present value of lease liabilities $ 54,140 $ 1,459 9.3 5.9 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | The Company’s intangible assets as of December 31, 2022 and December 25, 2021 were as follows: As of December 31, 2022 As of December 25, 2021 Estimated Gross Accumulated Net Book Gross Accumulated Net Book Life (Years) Value Amortization Value Value Amortization Value (in thousands) Customer relationships 15 $ 3,800 $ ( 886 ) $ 2,914 $ 3,800 $ ( 633 ) $ 3,167 Trademarks Indefinite 73,410 — 73,410 100,510 — 100,510 Total intangible assets $ 77,210 $ ( 886 ) $ 76,324 $ 104,310 $ ( 633 ) $ 103,677 |
Schedule of amortization expense | The Company expects to record amortization expense as follows over the five subsequent years: Fiscal Year Amount (in thousands) 2023 $ 253 2024 253 2025 253 2026 253 2027 253 Thereafter 1,649 Total amortization to be recorded $ 2,914 |
Third-Party Production Prepay_2
Third-Party Production Prepayments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Expected Shortfall Fees to be Incurred | expects to record those expenses as follows: Expected Shortfall Fees to be Incurred (in millions) 2023 $ 19 2024 17 2025 15 2026 7 2027 7 Thereafter 7 Total shortfall fees expected to be incurred $ 72 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: December 31, December 25, (in thousands) Coworker wages, benefits, and reimbursements $ 31,449 $ 21,476 Advertising, promotional, and selling expenses 18,915 25,867 Accrued inventory and production related costs 17,986 18,587 Accrued deposits 13,090 13,521 Accrued taxes 7,229 7,340 Deferred revenue 6,840 8,049 Accrued returns 5,580 6,045 Liability for wholesaler transaction (see Note D) — 39,468 Other accrued liabilities 10,064 21,199 Total accrued expenses and other current liabilities $ 111,153 $ 161,552 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Significant Components of Income Tax (Benefit) Provision | Significant components of the income tax provision (benefit) are as follows: 2022 2021 2020 (in thousands) Current: Federal $ 10,453 $ ( 4,473 ) $ 25,115 State 4,683 2,078 9,455 Total current 15,136 ( 2,395 ) 34,570 Deferred: Federal 8,196 ( 2,762 ) 16,363 State 841 ( 2,487 ) 1,337 Total deferred 9,037 ( 5,249 ) 17,700 Total income tax provision (benefit) $ 24,173 $ ( 7,644 ) $ 52,270 |
Reconciliations to Statutory Rates | The reconciliations to statutory rates are as follows: 2022 2021 2020 Statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 4.1 11.0 4.4 Deduction relating to excess stock-based compensation ( 0.9 ) ( 153.8 ) ( 4.3 ) Non-deductible meals & entertainment 0.6 5.6 0.2 Change in unrecognized tax benefits (including interest and penalty) — ( 8.7 ) — Federal and state provision to return ( 0.2 ) ( 7.1 ) ( 0.1 ) Change in valuation allowance 1.2 21.9 0.1 Other 0.6 ( 0.6 ) 0.1 26.4 % ( 110.7 )% 21.4 % |
Significant Components of Company's Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities are as follows at: December 31, 2022 December 25, 2021 (in thousands) Deferred tax assets: Lease liabilities $ 13,994 $ 16,236 Inventory reserves 8,595 14,343 Stock-based compensation expense 7,441 6,713 Loss carryforwards 968 3,859 Accrued expenses 4,609 3,449 Accrued commitments for inventory at vendor locations 1,799 2,607 Tax credit carryforwards 813 1,874 Accrued destruction costs — 1,538 Other 1,833 2,703 Total deferred tax assets 40,052 53,322 Valuation allowance ( 4,600 ) ( 3,341 ) Total deferred tax assets, net of valuation allowance 35,452 49,981 Deferred tax liabilities: Property, plant, and equipment ( 103,561 ) ( 102,696 ) Right-of-use assets ( 11,375 ) ( 14,035 ) Intangible assets amortization ( 10,373 ) ( 15,024 ) Prepaid expenses ( 6,735 ) ( 5,721 ) Total deferred tax liabilities ( 132,044 ) ( 137,476 ) Net deferred tax liabilities $ ( 96,592 ) $ ( 87,495 ) |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2022 2021 (in thousands) Balance at beginning of period $ 232 $ 812 Increases related to current period tax positions 41 59 (Decreases) increases related to prior period tax positions ( 30 ) 36 Decreases related to lapse of statute of limitations — ( 675 ) Balance at end of period $ 243 $ 232 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Non-cancelable Contractual Obligations | As of December 31, 2022, projected cash outflows under non-cancellable contractual obligations for the remaining years under the contracts are as follows: Payments Due by Fiscal Year Total 2023 2024 2025 2026 2027 Thereafter (in thousands) Ingredients and packaging (excluding hops and malt) $ 136,129 $ 136,129 $ — $ — $ — $ — $ — Brand support 72,826 47,998 11,460 9,431 3,937 — — Hops and malt 43,468 33,572 5,451 2,419 2,026 — — Equipment and machinery 32,354 32,354 — — — — — Other 18,831 10,704 5,390 2,737 — — — Total contractual obligations $ 303,608 $ 260,757 $ 22,301 $ 14,587 $ 5,963 $ — $ — |
Common Stock and Share-Based _2
Common Stock and Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Options under Equity Plan and Non-Employee Director Plan | Information related to stock options under the Equity Plan and the Non-Employee Director Plan is summarized as follows: Shares Weighted- Weighted- Aggregate Outstanding at December 25, 2021 221,354 $ 310.38 Granted 20,924 378.55 Exercised ( 30,164 ) 188.46 Cancelled/Forfeited ( 7,869 ) 339.25 Outstanding at December 31, 2022 204,245 $ 334.26 5.25 $ 15,378 Exercisable at December 31, 2022 118,829 $ 251.08 4.46 $ 11,561 Vested and expected to vest at December 31, 2022 174,154 $ 319.56 4.83 $ 14,653 |
Stock-Based Compensation Expense Included in Operating Expenses | The following table provides information regarding stock-based compensation expense included in operating expenses in the accompanying consolidated statements of comprehensive income: 2022 2021 2020 (in thousands) Amounts included in advertising, promotional, and $ 5,184 $ 5,612 $ 4,467 Amounts included in general and administrative 8,804 13,003 10,815 Total stock-based compensation expense $ 13,988 $ 18,615 $ 15,282 Amounts related to performance-based stock awards $ 1,524 $ 3,384 $ 2,771 |
Weighted Average Assumptions used to Estimate Fair Value of Stock Options | W eighted average assumptions used to estimate fair values of stock options on the date of grants are as follows: 2022 2021 2020 Expected volatility 38.0 % 36.1 % 32.6 % Risk-free interest rate 2.11 % 1.45 % 1.09 % Expected dividends 0 % 0 % 0 % Exercise factor 3.0 times 2.6 times 2.1 times Discount for post-vesting restrictions 0.0 % 0.0 % 0.0 % |
Summary of Vesting Activities of Shares Issued Under Investment Share Program and Restricted Stock Awards | The following table summarizes vesting activities of shares issued under the investment share program and restricted stock awards: Number of Shares Weighted Average Fair Value Non-vested at December 25, 2021 88,848 $ 401.70 Granted 43,589 346.09 Vested ( 32,476 ) 292.27 Forfeited ( 8,750 ) 504.81 Non-vested at December 31, 2022 91,211 $ 423.60 |
Employee Retirement Plans and_2
Employee Retirement Plans and Post-Retirement Medical Benefits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Funded Status of Retiree Medical Plan | The funded status of the Retiree Medical Plan is as follows: Retiree Medical Plan December 31, December 25, Benefit obligation at end of period $ 757 $ 1,040 Unfunded Status $ 757 $ 1,040 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Share, Basic | The following table sets forth the computation of basic net income per share using the two-class method: December 31, December 25, December 26, 2022 2021 2020 (in thousands, except per share data) Net Income $ 67,263 $ 14,553 $ 191,960 Allocation of net income for basic: Class A Common Stock $ 55,812 $ 11,995 $ 153,106 Class B Common Stock 11,293 2,506 37,690 Unvested participating shares 158 52 1,164 $ 67,263 $ 14,553 $ 191,960 Weighted average number of shares for basic: Class A Common Stock 10,221 10,121 9,734 Class B Common Stock* 2,068 2,115 2,396 Unvested participating shares 28 44 74 12,317 12,280 12,204 Net income per share for basic: Class A Common Stock $ 5.46 $ 1.19 $ 15.73 Class B Common Stock $ 5.46 $ 1.19 $ 15.73 *Changes in Class B Common Stock resulted from the conversion to Class A Common stock during fiscal 2022, 2021, and 2020 as disclosed in the Company's consolidated statements of stockholders' equity. |
Computation of Earnings Per Share, Diluted | The following tables set forth the computation of diluted net income per share, assuming the conversion of all Class B Common Stock into Class A Common Stock: Fifty-three weeks ended December 31, 2022 Earnings to Common EPS (in thousands, except per share data) As reported - basic $ 55,812 10,221 $ 5.46 Add: effect of dilutive potential common shares Share-based awards — 56 Class B Common Stock 11,293 2,068 Net effect of unvested participating shares 1 — Net income per common share - diluted $ 67,106 $ 12,345 $ 5.44 Fifty-two weeks ended December 25, 2021 Earnings to Common EPS (in thousands, except per share data) As reported - basic $ 11,995 10,121 $ 1.19 Add: effect of dilutive potential common shares Share-based awards — 138 Class B Common Stock 2,506 2,115 Net effect of unvested participating shares 52 62 Net income per common share - diluted $ 14,553 12,436 $ 1.17 Fifty-two weeks ended December 26, 2020 Earnings to Common EPS (in thousands, except per share data) As reported - basic $ 153,106 9,734 $ 15.73 Add: effect of dilutive potential common shares Share-based awards — 153 Class B Common Stock 37,690 2,396 Net effect of unvested participating shares 14 — Net income per common share - diluted $ 190,810 12,283 $ 15.53 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | The following table details the changes in accumulated other comprehensive loss for 2022, 2021, and 2020 (in thousands): Accumulated Balance at December 28, 2019 $ ( 1,669 ) Deferred pension and other post-retirement benefit costs, 502 1,611 Amortization of Deferred benefit costs, net of taxes of $ 35 ( 219 ) Currency translation adjustment 25 Balance at December 26, 2020 $ ( 252 ) Amortization of Deferred benefit costs, net of taxes of $ 20 90 Currency translation adjustment ( 32 ) Balance at December 25, 2021 ( 194 ) Amortization of Deferred benefit costs, net of taxes of $ 95 253 Currency translation adjustment ( 269 ) Balance at December 31, 2022 $ ( 210 ) |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Summary of Valuation and Qualifying Accounts | In addition, the Company maintains a reserve for estimated returns of stale beer, which is included in accrued expenses. Allowance for Doubtful Accounts Balance at Net Provision Amounts Balance at (In thousands) 2022 $ 353 $ 326 $ ( 261 ) $ 418 2021 $ 535 $ 182 $ ( 364 ) $ 353 2020 $ 47 $ 488 $ — $ 535 Discount Accrual Balance at Net Provision Amounts Balance at (In thousands) 2022 $ 11,221 $ 54,825 $ ( 57,867 ) $ 8,179 2021 $ 9,357 $ 72,680 $ ( 70,816 ) $ 11,221 2020 $ 6,272 $ 59,279 $ ( 56,194 ) $ 9,357 Inventory Obsolescence Reserve Balance at Net Provision Amounts Balance at (In thousands) 2022 $ 43,055 $ 35,867 $ ( 56,946 ) $ 21,976 2021 $ 6,331 $ 62,616 $ ( 25,892 ) $ 43,055 2020 $ 6,375 $ 11,248 $ ( 11,292 ) $ 6,331 Stale Beer Reserve Balance at Net Provision Amounts Balance at (In thousands) 2022 $ 6,045 $ 19,589 $ ( 20,054 ) $ 5,580 2021 $ 3,092 $ 9,537 $ ( 6,584 ) $ 6,045 2020 $ 1,828 $ 8,411 $ ( 7,147 ) $ 3,092 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Customer Segment | Dec. 25, 2021 USD ($) Customer | Dec. 26, 2020 USD ($) Customer | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Net effect of COVID-19 on revenue, cost of goods sold and operating expense | $ 90,791 | $ 7,997 | $ 244,207 |
Sales to foreign distributors as a percentage of total sales | 4% | 4% | 4% |
Number of individual customers represented more than ten percent of revenues | Customer | 0 | 0 | 0 |
Number of individual customer accounted for more than ten percent of account receivable balance | Customer | 0 | 0 | 0 |
Inventory on hand | $ 161,642 | $ 161,773 | |
Provision for excess or expired inventory | 35,900 | 62,600 | $ 11,300 |
Property, plant and equipment, net | 667,909 | 664,815 | |
Impairment of brewery assets | 2,782 | 18,499 | $ 4,466 |
Restricted cash | $ 0 | 39,468 | |
Number of Operating Segments | Segment | 1 | ||
Decrease in refundable deposits for lost kegs and pallets | $ (400) | (500) | |
Decrease in gross property, plant and equipment | (1,000) | (900) | |
Decrease in property, plant and equipment related accumulated depreciation | (1,000) | (900) | |
Refundable deposits on kegs and pallets | $ 13,000 | $ 13,400 | |
Sales to domestic distributors as a percentage of total sales | 95% | 95% | 95% |
Sales to retail locations as a percentage of total sales | 1% | 1% | 1% |
Deferred Revenue, Current | $ 6,840 | $ 8,049 | |
Stale Beer Reserve | 5,600 | 6,000 | |
Provision for stale beer | 19,600 | 9,500 | $ 8,400 |
Advertising, promotional and selling expenses | 578,400 | 606,994 | 447,568 |
Advertising and sales promotional expenditures | 226,700 | 291,300 | 211,200 |
Shipping costs | 165,500 | 166,600 | 97,600 |
Stock-based compensation | 13,988 | 18,615 | 15,282 |
Retained earnings | 439,121 | 371,858 | |
Distributors | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Amounts paid to distributors | 54,800 | 72,700 | 59,300 |
Advertising and sales promotional expenditures | 41,100 | 53,400 | 25,700 |
Reduction in revenue related to advertising, promotional and selling expenses | 29,900 | 42,000 | 23,100 |
Customers programs and incentives | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Advertising, promotional and selling expenses | 95,900 | 126,100 | 85,000 |
Kegs | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, net | 1,000 | 200 | |
Property, Plant and Equipment | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Impairment of brewery assets | $ 2,600 | $ 18,500 | $ 4,400 |
Estimated Useful Lives (Detail)
Estimated Useful Lives (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Kegs | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful life | 5 years |
Computer Software and Equipment | Minimum | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful life | 2 years |
Computer Software and Equipment | Maximum | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful life | 5 years |
Office Equipment and Furniture | Minimum | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful life | 3 years |
Office Equipment and Furniture | Maximum | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful life | 7 years |
Machinery and Plant Equipment | Minimum | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful life | 3 years |
Machinery and Plant Equipment | Maximum | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful life | 20 years |
Leasehold Improvements | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful life | Lesser of the remaining term of the lease or estimated useful life of the asset |
Building and Building Improvements | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful life | 12 to 20 years, or the remaining useful life of the building, whichever is shorter |
Building and Building Improvements | Minimum | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful life | 12 years |
Building and Building Improvements | Maximum | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful life | 20 years |
Slowdown of the Hard Seltzer _2
Slowdown of the Hard Seltzer Market Impact - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 25, 2021 | |
Unusual Risk or Uncertainty [Line Items] | ||
Excess and obsolete inventory reserves and other inventory related costs | $ 59.5 | |
Estimated destruction costs | 6.1 | |
Third party contract termination costs | $ 4.8 | |
Hard Seltzer | ||
Unusual Risk or Uncertainty [Line Items] | ||
Contract termination costs | 14.8 | |
Contract term costs write off | 9.5 | |
Impairment expenses related to cancelled projects | 12.7 | |
Provision for amounts owed to third-parties under non-cancellable purchase orders | 6.3 | |
Combined expenses recognized | $ 102.9 |
Dogfish Head Brewery Transactio
Dogfish Head Brewery Transaction - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Excess of the purchase price paid over the estimated fair values of the assets and liabilities assumed | $ 112,529 | $ 112,529 | |
Statutory income tax rate | 21% | 21% | 21% |
Dogfish Head Brewery Transact_2
Dogfish Head Brewery Transaction - Fair value of assets acquired and liabilities assumed (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 |
Goodwill | $ 112,529 | $ 112,529 |
Restricted Cash - Additional In
Restricted Cash - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 28, 2021 | Dec. 31, 2022 | Dec. 25, 2021 |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Received fair market value of payments from continuing distributors | $ 0 | $ 39,468 | |
Fair market value of amount paid to terminating distributor | $ 39,500 |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 |
Current inventory: | ||
Raw materials | $ 81,225 | $ 78,545 |
Work in process | 20,374 | 17,764 |
Finished goods | 46,851 | 52,809 |
Total current inventory | 148,450 | 149,118 |
Long term inventory | 13,192 | 12,655 |
Total inventory | $ 161,642 | $ 161,773 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 25, 2021 |
Inventories [Abstract] | ||
Inventory obsolescence reserves | $ 22 | $ 43.1 |
Summary of Prepaid Expenses and
Summary of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid advertising, promotional and selling costs | $ 8,878 | $ 11,193 |
Prepaid Taxes | 6,753 | 518 |
Prepaid software and consulting fees | 4,549 | 4,698 |
Prepaid insurance | 3,497 | 3,569 |
Other | 3,784 | 1,484 |
Total prepaid expenses and other current assets | $ 27,461 | $ 21,462 |
Summary of Property, Plant and
Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 |
Property, Plant and Equipment [Abstract] | ||
Machinery and plant equipment | $ 760,895 | $ 729,251 |
Building and building improvements | 237,561 | 207,565 |
Leasehold improvements | 75,260 | 70,422 |
Kegs | 58,492 | 59,794 |
Office equipment and furniture | 36,935 | 30,085 |
Land | 25,777 | 25,668 |
Assets under construction | 41,323 | 35,619 |
Property, plant and equipment, gross | 1,236,243 | 1,158,404 |
Less accumulated depreciation | (568,334) | (493,589) |
Property, plant and equipment, net | $ 667,909 | $ 664,815 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Property Plant And Equipment [Line Items] | |||
Depreciation expense | $ 81,100 | $ 71,800 | $ 65,400 |
Impairment of intangible assets | 27,100 | ||
Property, Plant and Equipment | |||
Property Plant And Equipment [Line Items] | |||
Impairment of intangible assets | $ 2,600 | $ 18,500 | $ 4,400 |
Leases - ROU assets and lease l
Leases - ROU assets and lease liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 |
Right-of-use assets | ||
Operating lease assets | $ 43,768 | $ 52,774 |
Finance lease assets | $ 1,424 | $ 3,014 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net |
Current | ||
Operating lease liabilities | $ 8,866 | $ 7,634 |
Finance lease liabilities | $ 935 | $ 1,598 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities and Other Liabilities | Accrued Liabilities and Other Liabilities |
Non-current | ||
Operating lease liabilities | $ 45,274 | $ 53,849 |
Finance lease liabilities | $ 524 | $ 1,459 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Leases - Gross Value of Accumul
Leases - Gross Value of Accumulated Depreciation Of Right Of Use Assets (Details). - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 |
Leases [Abstract] | ||
Finance Lease, Gross value | $ 5,998 | $ 5,998 |
Finance Lease, Accumulated amortization | (4,574) | (2,984) |
Finance Lease, Carrying value | $ 1,424 | $ 3,014 |
Leases - Components of lease co
Leases - Components of lease cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Operating lease cost: | |||
Amortization of right-of-use assets | $ 9,978 | $ 10,283 | $ 9,764 |
Variable lease costs not included in liability | 702 | 1,132 | 1,643 |
Total operating lease cost | 10,680 | 11,415 | 11,407 |
Finance lease cost: | |||
Amortization of right-of-use asset | 1,590 | 1,493 | 1,185 |
Interest on lease liabilities | 71 | 121 | 143 |
Total finance lease cost | $ 1,661 | $ 1,614 | $ 1,328 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Lease, Cost [Abstract] | |
Impairment charges on right-of use assets | $ 0.2 |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities (Detail) $ in Thousands | Dec. 31, 2022 USD ($) |
Operating Leases | |
2023 | $ 10,582 |
2024 | 10,529 |
2025 | 7,102 |
2026 | 6,671 |
2027 | 6,122 |
Thereafter | 20,785 |
Total lease payments | 61,791 |
Less imputed interest | (7,651) |
Present value of lease liability | $ 54,140 |
Operating Lease, Weighted Average Discount Rate, Percent | 3.40% |
Operating Lease Weighted Average Remaining Lease Term [Abstract] | |
Lease Weighted Average Remaining Lease Term | 9 years 3 months 18 days |
Finance Lease Liabilities, Payments, Due | |
2023 | $ 960 |
2024 | 362 |
2025 | 104 |
2026 | 56 |
2027 | 8 |
Total lease payments | 1,490 |
Less imputed interest | (31) |
Present value of lease liability | $ 1,459 |
Finance Lease, Weighted Average Discount Rate, Percent | 3.40% |
Finance Lease, Weighted Average Remaining Lease Term | 5 years 10 months 24 days |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 24, 2022 | Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Impairment of goodwill | $ 0 | |||
Intangible carrying value | 76,324 | $ 103,677 | ||
Impairment of assets | 27,100 | |||
Intangible assets amortization | $ 253,000 | $ 253,000 | $ 253,000 | |
Dogfish Head | ||||
Intangible carrying value | $ 98,500 | |||
Estimated fair value | 71,400 | |||
Impairment of assets | $ 27,100 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 25, 2021 | |
Gross Carrying Value | $ 77,210 | $ 104,310 |
Accumulated Amortization | (886) | (633) |
Net Book Value | $ 76,324 | 103,677 |
Customer Relationships | ||
Estimated Useful Life | 15 years | |
Gross Carrying Value | $ 3,800 | 3,800 |
Accumulated Amortization | (886) | (633) |
Net Book Value | 2,914 | 3,167 |
Trademarks | ||
Gross Carrying Value | 73,410 | 100,510 |
Net Book Value | $ 73,410 | $ 100,510 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Amortization Expense (Detail) $ in Thousands | Dec. 31, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 253 |
2024 | 253 |
2025 | 253 |
2026 | 253 |
2027 | 253 |
Thereafter | 1,649 |
Total amortization to be recorded | $ 2,914 |
Third-Party Production Prepay_3
Third-Party Production Prepayments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 25, 2021 | Sep. 25, 2021 | Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Percentage of brews and packages | 65% | 56% | 65% | ||
Percentage of brews and packages across various locations | 26% | 32% | 3% | ||
Third party contract termination costs | $ 4,800 | ||||
Total third-party production prepayments | $ 88,300 | 61,300 | $ 88,300 | ||
Total prepaid amount | 88,294 | 61,339 | 88,294 | ||
Payments for capital improvements | $ 10,000 | ||||
Additional payment for accessing facility | $ 17,900 | ||||
Shortfall fees | 3,000 | ||||
Contractual shortfall fees | 127,000 | ||||
Expected shortfall fees | $ 72,000 | ||||
Third-party Production Facilities | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Contract term costs write off | 9,500 | ||||
Contract termination costs | $ 19,600 |
Third-Party Production Prepay_4
Third-Party Production Prepayments - Schedule of Expected Shortfall Fees to be Incurred (Detail) $ in Millions | Dec. 31, 2022 USD ($) |
Contractual Obligation, Fiscal Year Maturity [Abstract] | |
2023 | $ 19 |
2024 | 15 |
2025 | 17 |
2026 | 7 |
2027 | 7 |
Thereafter | 7 |
Total shortfall fees expected to be incurred | $ 72 |
Summary of Accrued Expenses and
Summary of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 |
Payables and Accruals [Abstract] | ||
Coworker wages, benefits and reimbursements | $ 31,449 | $ 21,476 |
Advertising, promotional and selling expenses | 18,915 | 25,867 |
Accrued inventory and production related costs | 17,986 | 18,587 |
Accrued deposits | 13,090 | 13,521 |
Accrued taxes | 7,229 | 7,340 |
Deferred revenue | 6,840 | 8,049 |
Accrued returns | 5,580 | 6,045 |
Liability for wholesaler transaction (see Note D) | 39,468 | |
Other accrued liabilities | 10,064 | 21,199 |
Total accrued expenses and other current liabilities | $ 111,153 | $ 161,552 |
Revolving Line of Credit - Addi
Revolving Line of Credit - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 26, 2020 | Dec. 25, 2021 | |
Debt Instrument [Line Items] | |||
Commitment fee | 0.20% | ||
Credit facility, borrowing outstanding | $ 0 | $ 0 | |
EBITDA to interest expense ratio | 2,331 | ||
EBITDA to interest expense, minimum allowable ratio | 2 | ||
Total funded debt to EBITDA ratio | 0 | ||
Total funded debt to EBITDA, maximum allowable ratio | 2.5 | ||
Proceeds from Line of Credit | $ 30,000,000 | $ 100,000,000 | |
Repayment of Line of Credit | 30,000,000 | 100,000,000 | |
Payments of interest expenses on borrowings | 200,000 | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Line of credit, current borrowing capacity | $ 150,000,000 | ||
Line of credit, expiration date | Dec. 16, 2027 | ||
Repayment of Line of Credit | $ 30,000,000 | $ 100,000,000 | |
Payments of interest expenses on borrowings | $ 18,000,000 | ||
Revolving Credit Facility | SOFR | |||
Debt Instrument [Line Items] | |||
Debt interest rate at end of period | 4.30% | ||
Basis spread on variable rate | 1.10% |
Significant Components of Incom
Significant Components of Income Tax (Benefit) Provision (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Current: | |||
Federal | $ 10,453 | $ (4,473) | $ 25,115 |
State | 4,683 | 2,078 | 9,455 |
Total current | 15,136 | (2,395) | 34,570 |
Deferred: | |||
Federal | 8,196 | (2,762) | 16,363 |
State | 841 | (2,487) | 1,337 |
Total deferred | 9,037 | (5,249) | 17,700 |
Total income tax provision (benefit) | $ 24,173 | $ (7,644) | $ 52,270 |
Reconciliations to Statutory Ra
Reconciliations to Statutory Rates (Detail) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Income Tax Disclosure [Abstract] | |||
Statutory rate | 21% | 21% | 21% |
State income taxes, net of federal benefit | 4.10% | 11% | 4.40% |
Deduction relating to excess stock based compensation | (0.90%) | (153.80%) | (4.30%) |
Non-deductable meals & entertainment | 0.60% | 5.60% | 0.20% |
Change in unrecognized tax benefits (including interest and penalty) | (8.70%) | ||
Federal and state provision to return | (0.20%) | (7.10%) | (0.10%) |
Change in valuation allowance | 1.20% | 21.90% | 0.10% |
Other | 0.60% | (0.60%) | 0.10% |
Effective Income Tax Rate Reconciliation, Percent, Total | 26.40% | (110.70%) | 21.40% |
Significant Components of Compa
Significant Components of Company's Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 |
Deferred tax assets: | ||
Lease liabilities | $ 13,994 | $ 16,236 |
Inventory | 8,595 | 14,343 |
Stock-based compensation expense | 7,441 | 6,713 |
Loss carryforwards | 968 | 3,859 |
Accrued expenses | 4,609 | 3,449 |
Accrued commitments for inventory at vendor locations | 1,799 | 2,607 |
Tax credit carryforwards | 813 | 1,874 |
Accrued destruction costs | 1,538 | |
Other | 1,833 | 2,703 |
Total deferred tax assets | 40,052 | 53,322 |
Valuation allowance | (4,600) | (3,341) |
Total deferred tax assets net of valuation allowance | 35,452 | 49,981 |
Deferred tax liabilities: | ||
Property, plant and equipment | (103,561) | (102,696) |
Right-of-use assets | (11,375) | (14,035) |
Intangible assets amortization | (10,373) | (15,024) |
Prepaid expenses | (6,735) | (5,721) |
Total deferred tax liabilities | (132,044) | (137,476) |
Net deferred tax liabilities | $ (96,592) | $ (87,495) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Income Taxes [Line Items] | |||
Interest and penalties included in provision for incomes taxes | $ 0 | $ 0 | $ 0 |
Accrued interest and penalties | 200 | 200 | |
Unrecognized tax benefits that would impact the effective tax rate if recognized | 200 | 200 | |
Deferred tax valuation allowance | 4,600 | 3,341 | |
Net increase in valuation allowance | $ 1,300 | $ 1,300 | |
State and Local Jurisdiction | |||
Income Taxes [Line Items] | |||
Income tax return examination | As of December 31, 2022, the Company’s 2019, 2020, and 2021 federal income tax returns remain subject to examination by IRS. The Company’s state income tax returns remain subject to examination for three or four years depending on the state’s statute of limitations. | ||
State and Local Jurisdiction | Minimum | |||
Income Taxes [Line Items] | |||
Income tax return examination period | 3 years | ||
State and Local Jurisdiction | Maximum | |||
Income Taxes [Line Items] | |||
Income tax return examination period | 4 years |
Reconciliation of Unrecognized
Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 25, 2021 | |
Income Tax Disclosure [Abstract] | ||
Balance at beginning of period | $ 232 | $ 812 |
Increases related to current period tax positions | 41 | 59 |
Increases related to prior period tax positions | 36 | |
(Decreases) related to prior period tax positions | (30) | |
Decreases related to lapse of statute of limitations | (675) | |
Balance at end of period | $ 243 | $ 232 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Non-cancelable Contractual Obligations (Detail) $ in Thousands | Dec. 31, 2022 USD ($) |
Long-term Purchase Commitment [Line Items] | |
Contractual obligations payment due, total | $ 303,608 |
Contractual obligations payment due, 2023 | 260,757 |
Contractual obligations payment due, 2024 | 22,301 |
Contractual obligations payment due, 2025 | 14,587 |
Contractual obligations payment due, 2026 | 5,963 |
Equipment and machinery | |
Long-term Purchase Commitment [Line Items] | |
Contractual obligations payment due, total | 32,354 |
Contractual obligations payment due, 2023 | 32,354 |
Ingredients and Packaging (excluding hops and malt) | |
Long-term Purchase Commitment [Line Items] | |
Contractual obligations payment due, total | 136,129 |
Contractual obligations payment due, 2023 | 136,129 |
Brand Support | |
Long-term Purchase Commitment [Line Items] | |
Contractual obligations payment due, total | 72,826 |
Contractual obligations payment due, 2023 | 47,998 |
Contractual obligations payment due, 2024 | 11,460 |
Contractual obligations payment due, 2025 | 9,431 |
Contractual obligations payment due, 2026 | 3,937 |
Hops and Malt | |
Long-term Purchase Commitment [Line Items] | |
Contractual obligations payment due, total | 43,468 |
Contractual obligations payment due, 2023 | 33,572 |
Contractual obligations payment due, 2024 | 5,451 |
Contractual obligations payment due, 2025 | 2,419 |
Contractual obligations payment due, 2026 | 2,026 |
Other | |
Long-term Purchase Commitment [Line Items] | |
Contractual obligations payment due, total | 18,831 |
Contractual obligations payment due, 2023 | 10,704 |
Contractual obligations payment due, 2024 | 5,390 |
Contractual obligations payment due, 2025 | $ 2,737 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) Vendor | |
Commitments and Contingencies Disclosure [Line Items] | |
Loss contingency, actions taken by court | The Court consolidated the two actions and on December 14, 2021 appointed a lead plaintiff, who filed an amended complaint on January 13, 2022. The Company’s motion to dismiss the plaintiff’s complaint in the previously reported class action alleging claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 was granted by the Court on December 5, 2022. The plaintiff filed a notice of appeal on January 5, 2023 and the plaintiff’s opening brief is due April 11, 2023. The Company’s response will be due on July 11, 2023. |
Barley, Wheat and Malt | |
Commitments and Contingencies Disclosure [Line Items] | |
Number of suppliers | Vendor | 4 |
Purchase commitments outstanding | $ 27.7 |
Hops | |
Commitments and Contingencies Disclosure [Line Items] | |
Purchase commitments | $ 15.7 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 |
Fair Value Disclosures [Abstract] | |||
Cash and cash equivalents | $ 180,560 | $ 26,853 | $ 163,282 |
Money market fund | $ 174,200 | $ 5,800 |
Common Stock and Share-Based _3
Common Stock and Share-Based Compensation - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 25, 2021 | Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options, contractual term | 5 years 3 months | |||
Other than options granted in period | 43,589 | |||
Stock option outstanding | 221,354 | 204,245 | 221,354 | |
Weighted average fair value of stock awards | $ 346.09 | |||
Weighted average exercise price | $ 310.38 | $ 334.26 | $ 310.38 | |
Expected dividends | 0% | 0% | 0% | |
Estimated forfeiture rate for equity awards that do not vest on January 1st | 19% | 13% | 13% | |
Total fair value of options vested in period | $ 6,300,000 | $ 6,600,000 | $ 4,800,000 | |
Aggregate intrinsic value of stock options exercised in period | 6,900,000 | $ 28,900,000 | $ 45,900 | |
Unrecognized compensation costs | $ 23,700,000 | |||
Unrecognized compensation costs, weighted average period | 2 years | |||
Option vested, number of shares | 32,476 | 42,038 | 45,860 | |
Option vested, weighted average fair value | $ 292.27 | $ 227.40 | $ 214.23 | |
Repurchase of shares | 13,800,000 | |||
Stock repurchased during period | 0 | 0 | 0 | |
Performance-Based Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option outstanding | 17,114 | |||
Performance-Based Awards | Board of Directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option outstanding | 7,147 | |||
Non-Employee Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted in period | 3,810 | 1,422 | 4,410 | |
Non-Employee Director | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options, contractual term | 10 years | |||
Employee Stock Compensation Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted in period | 17,114 | 18,998 | 21,992 | |
Employee Stock Compensation Plan | Investment Share Program | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 5 years | |||
Share based compensation arrangement by share based payment award participants payment description | Participants may pay for these shares either up front or through payroll deductions over an eleven-month period during the year of purchase. | |||
Shares employees elected to purchase | 10,845 | 4,954 | 9,127 | |
Employee Stock Compensation Plan | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Employee Stock Compensation Plan | Minimum | Investment Share Program | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Requirement tenure of employee for investment share program, purchase shares at discount | 1 year | |||
Discount from current market value | 0% | |||
Employee Stock Compensation Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 5 years | |||
Stock options, contractual term | 10 years | |||
Employee Stock Compensation Plan | Maximum | Investment Share Program | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Discount from current market value | 40% | |||
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Other than options granted in period | 32,744 | 12,867 | 33,403 | |
Restricted Stock Units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Restricted Stock Units | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 5 years | |||
Common Class A | Non-Employee Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares reserved for issuance | 600,000 | 600,000 | ||
Shares available for grant | 100,000 | 100,000 | ||
Common Class A | Employee Stock Compensation Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares reserved for issuance | 6,700,000 | |||
Shares available for grant | 1,000,000 |
Common Stock and Share-Based _4
Common Stock and Share-Based Compensation - Summary of Stock Options under Employee Equity Incentive Plan and Stock Option Plan for Non-Employee Directors (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Shares | |
Outstanding at beginning of period | shares | 221,354 |
Granted | shares | 20,924 |
Exercised | shares | (30,164) |
Cancelled/Forfeited | shares | (7,869) |
Outstanding at end of period | shares | 204,245 |
Exercisable at end of period | shares | 118,829 |
Vested and expected to vest at end of period | shares | 174,154 |
Weighted-Average Exercise Price | |
Outstanding at beginning of period | $ / shares | $ 310.38 |
Granted | $ / shares | 378.55 |
Cancelled/Forfeited | $ / shares | 339.25 |
Exercised | $ / shares | 188.46 |
Outstanding at end of period | $ / shares | 334.26 |
Exercisable at end of period | $ / shares | 251.08 |
Vested and expected to vest at end of period | $ / shares | $ 319.56 |
Weighted-Average Remaining Contractual Term | |
Outstanding at end of period | 5 years 3 months |
Exercisable at end of period | 4 years 5 months 15 days |
Vested and expected to vest at end of period | 4 years 9 months 29 days |
Aggregate Intrinsic Value | |
Outstanding at end of period | $ | $ 15,378 |
Exercisable at end of period | $ | 11,561 |
Vested and expected to vest at end of period | $ | $ 14,653 |
Common Stock and Share-Based _5
Common Stock and Share-Based Compensation - Stock-Based Compensation Expense Included in Operating Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 13,988 | $ 18,615 | $ 15,282 |
Performance-Based Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 1,524 | 3,384 | 2,771 |
Advertising, promotional and selling expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 5,184 | 5,612 | 4,467 |
General and administrative expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 8,804 | $ 13,003 | $ 10,815 |
Common Stock and Share-Based _6
Common Stock and Share-Based Compensation - Summary Of Weighted Average Assumptions used to Estimate Fair Value of Stock Options (Detail) - Time | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Share-Based Payment Arrangement [Abstract] | |||
Expected volatility | 38% | 36.10% | 32.60% |
Risk-free interest rate | 2.11% | 1.45% | 1.09% |
Expected dividends | 0% | 0% | 0% |
Exercise factor | 3 | 2.6 | 2.1 |
Discount for post-vesting restrictions | 0% | 0% | 0% |
Common Stock and Share-Based _7
Common Stock and Share-Based Compensation - Summary of Vesting Activities for Investment Share Program and Restricted Stock Awards (Detail) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Share-Based Payment Arrangement [Abstract] | |
Non-vested at beginning of period | shares | 88,848 |
Granted | shares | 43,589 |
Vested | shares | (32,476) |
Forfeited | shares | (8,750) |
Non-vested at end of period | shares | 91,211 |
Non-vested at beginning of period | $ / shares | $ 401.70 |
Granted | $ / shares | 346.09 |
Vested | $ / shares | 292.27 |
Forfeited | $ / shares | 504.81 |
Non-vested at end of period | $ / shares | $ 423.60 |
Employee Retirement Plans and_3
Employee Retirement Plans and Post-Retirement Medical Benefits - Additional Information (Detail) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2020 | Dec. 31, 2022 USD ($) CompensationPlan | Dec. 25, 2021 USD ($) | Dec. 26, 2020 USD ($) | Dec. 28, 2019 USD ($) | |
Pension Benefit Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Unfunded projected pension benefits | $ 0 | ||||
Retiree Medical Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Unfunded projected pension benefits | $ (757) | $ (1,040) | |||
Non-Union Plans | Boston Beer 401 (k) Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Eligibility timing | eligible to participate in the Plan immediately upon employment | ||||
Voluntary contributions of annual compensation | 60% | ||||
Employer matching contribution percentage | 5% | ||||
Contributions Plan | $ 7,600 | $ 7,400 | 6,400 | ||
Non-Union Plans | Boston Beer 401 (k) Plan | Company's match thereafter | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Employer matching contribution percentage | 3% | ||||
Employer match percentage | 100% | ||||
Non-Union Plans | Boston Beer 401 (k) Plan | Company's match for the first 3% of the eligible participants contribute | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Employer matching contribution percentage | 2% | ||||
Employer match percentage | 50% | ||||
Union Plans | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Number of retirement plans | CompensationPlan | 3 | ||||
Union Plans | Company Sponsored Pension Plans | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Eligibility timing | open to all union employees who are covered by the Company’s collective bargaining agreement with Local Union 1199, or persons on leave from the Company who were employed by Local Union 1199, and in either case who had completed 12 consecutive months of employment with at least 750 hours worked. | ||||
Eligibility period | 12 months | ||||
Time required for eligibility | 750 hours | ||||
Expenses on termination of defined benefit plan | 2,000 | ||||
Pension contributions | $ 2,900 | $ 300 | |||
Union Plans | Retiree Medical Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Eligibility period | 20 years | ||||
Time required for eligibility | 5 years | ||||
Benefit obligation, discount rate | 5.22% | 2.86% | |||
Benefit obligation, rate of compensation increase | 2.50% | 2.50% | |||
Percentage paid for coverage | 100% | ||||
Union Plans | Retiree Medical Plan | Minimum | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Voluntarily retirement age | 57 years | ||||
Union Plans | Retiree Medical Plan | Local #20 member | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Time required for eligibility | 7 years | ||||
Retiree Medical Plan, last years of employment | 10 years | ||||
Voluntarily retirement age | 65 years | ||||
Union Plans | Retiree Medical Plan | Local #20 member | Minimum | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Eligibility period | 20 years | ||||
Union Plans | Samuel Adams Cincinnati Brewery 401 (k) Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Eligibility timing | all members of Local 1 and Local 20 upon commencement of employment or, if later, attaining age 21. | ||||
Voluntary contributions of annual compensation | 60% |
Funded Status of Retiree Medica
Funded Status of Retiree Medical Plan (Detail) - Retiree Medical Plan - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Benefit obligation at end of fiscal year | $ 757 | $ 1,040 |
Unfunded Status | $ 757 | $ 1,040 |
Net Income per Share - Computat
Net Income per Share - Computation of Earnings Per Share, Basic (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Net Income | $ 67,263 | $ 14,553 | $ 191,960 |
Allocation of net income for basic: | |||
Allocation of net income for basic common stock | $ 67,263 | $ 14,553 | $ 191,960 |
Weighted average number of shares for basic: | |||
Weighted-average number of common shares - basic | 12,317 | 12,280 | 12,204 |
Net income per share for basic: | |||
Net income per common share - basic | $ 5.46 | $ 1.19 | $ 15.73 |
Common Class A | |||
Allocation of net income for basic: | |||
Allocation of net income for basic common stock | $ 55,812 | $ 11,995 | $ 153,106 |
Weighted average number of shares for basic: | |||
Weighted-average number of common shares - basic | 10,221 | 10,121 | 9,734 |
Net income per share for basic: | |||
Net income per common share - basic | $ 5.46 | $ 1.19 | $ 15.73 |
Common Class B | |||
Allocation of net income for basic: | |||
Allocation of net income for basic common stock | $ 11,293 | $ 2,506 | $ 37,690 |
Weighted average number of shares for basic: | |||
Weighted-average number of common shares - basic | 2,068 | 2,115 | 2,396 |
Net income per share for basic: | |||
Net income per common share - basic | $ 5.46 | $ 1.19 | $ 15.73 |
Unvested participating shares | |||
Allocation of net income for basic: | |||
Allocation of net income for basic unvested participating shares | $ 158 | $ 52 | $ 1,164 |
Weighted average number of shares for basic: | |||
Weighted-average number of common shares - basic | 28 | 44 | 74 |
Net Income per Share - Comput_2
Net Income per Share - Computation of Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | |||
Earnings to Common Shareholders, As reported - basic | $ 67,263 | $ 14,553 | $ 191,960 |
Common shares, As reported - basic | 12,317,000 | 12,280,000 | 12,204,000 |
EPS, As reported - basic | $ 5.46 | $ 1.19 | $ 15.73 |
Add: effect of dilutive potential common shares Share-based awards | 56,000 | 138,000 | 153,000 |
Common Shares, Net effect of unvested participating shares | 62 | ||
Earnings to Common Shareholders, Net effect of unvested participating shares | $ 1 | $ 52 | $ 14 |
Earnings to Common Shareholders, Net income per common share - diluted | $ 67,106 | $ 14,553 | $ 190,810 |
Common Shares, Net income per common share - diluted | 12,345,000 | 12,436,000 | 12,283,000 |
EPS, Net income per common share — diluted | $ 5.44 | $ 1.17 | $ 15.53 |
Common Class A | |||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | |||
Earnings to Common Shareholders, As reported - basic | $ 55,812 | $ 11,995 | $ 153,106 |
Common shares, As reported - basic | 10,221,000 | 10,121,000 | 9,734,000 |
EPS, As reported - basic | $ 5.46 | $ 1.19 | $ 15.73 |
Common Class B | |||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | |||
Earnings to Common Shareholders, As reported - basic | $ 11,293 | $ 2,506 | $ 37,690 |
Common shares, As reported - basic | 2,068,000 | 2,115,000 | 2,396,000 |
EPS, As reported - basic | $ 5.46 | $ 1.19 | $ 15.73 |
Earnings to Common Shareholders, Class B Common Stock | $ 11,293 | $ 2,506 | $ 37,690 |
Class B Common Stock | 2,068,000 | 2,115,000 | 2,396,000 |
Net Income per Share - Addition
Net Income per Share - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2022 $ / shares shares | Dec. 25, 2021 $ / shares shares | Dec. 26, 2020 shares $ / shares | |
Earnings Per Share Note [Line Items] | |||
Net income per common share - basic | $ / shares | $ 5.46 | $ 1.19 | $ 15.73 |
Conversion ratio for Class B to Class A shares | 1 | ||
Performance-Based Awards | |||
Earnings Per Share Note [Line Items] | |||
Number of shares not included because the performance criteria was not expected to be met | 1,000 | 1,000 | 0 |
Common Class A | |||
Earnings Per Share Note [Line Items] | |||
Net income per common share - basic | $ / shares | $ 5.46 | $ 1.19 | $ 15.73 |
Antidilutive securities excluded from computation of earnings per share | 17,000 | 17,000 | 0 |
Common Class A | Performance-Based Awards | |||
Earnings Per Share Note [Line Items] | |||
Number of shares not included because the performance criteria was not expected to be met | 0 | ||
Common Class B | |||
Earnings Per Share Note [Line Items] | |||
Net income per common share - basic | $ / shares | $ 5.46 | $ 1.19 | $ 15.73 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance | $ 983,409 | $ 956,967 | $ 735,636 |
Deferred pension and other post-retirement benefit costs | 1,611 | ||
Amortization of Deferred benefit costs | 253 | 90 | (219) |
Currency translation adjustment | (269) | (32) | 25 |
Balance | 1,068,549 | 983,409 | 956,967 |
AOCI Attributable to Parent | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance | (194) | (252) | (1,669) |
Currency translation adjustment | 269 | (32) | 25 |
Balance | $ (210) | $ (194) | $ (252) |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Loss (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Deferred pension and other post-retirement benefit costs, taxes | $ 502 | ||
Amortization of Deferred benefit costs, tax | $ 95 | $ 20 | $ 35 |
Summary of Valuation and Qualif
Summary of Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 6,000 | ||
Balance at End of Period | 5,600 | $ 6,000 | |
Allowance for Doubtful Accounts | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 353 | 535 | $ 47 |
Net Provision (Recovery) | 326 | 182 | 488 |
Amounts Charged Against Reserves | (261) | (364) | |
Balance at End of Period | 418 | 353 | 535 |
Discount Accrual | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 11,221 | 9,357 | 6,272 |
Net Provision (Recovery) | 54,825 | 72,680 | 59,279 |
Amounts Charged Against Reserves | (57,867) | (70,816) | (56,194) |
Balance at End of Period | 8,179 | 11,221 | 9,357 |
Inventory Obsolescence Reserve | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 43,055 | 6,331 | 6,375 |
Net Provision (Recovery) | 35,867 | 62,616 | 11,248 |
Amounts Charged Against Reserves | (56,946) | (25,892) | (11,292) |
Balance at End of Period | 21,976 | 43,055 | 6,331 |
Stale Beer Reserve | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 6,045 | 3,092 | 1,828 |
Net Provision (Recovery) | 19,589 | 9,537 | 8,411 |
Amounts Charged Against Reserves | (20,054) | (6,584) | (7,147) |
Balance at End of Period | $ 5,580 | $ 6,045 | $ 3,092 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Related Party Transaction [Line Items] | |||
Total payments due | $ 61,791,000 | ||
Related party transaction, other expenses from transactions with related party | $ 100,000 | $ 100,000 | $ 100,000 |
Dogfish Head Brewery | |||
Related Party Transaction [Line Items] | |||
Lease term of contract | 10 years | ||
Total payments due | $ 3,600,000 | ||
Total related party expense | $ 366,000 | $ 348,000 | $ 348,000 |
Licensing Agreements - Addition
Licensing Agreements - Additional Information (Detail) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Aug. 09, 2021 | Jul. 14, 2021 Agreement | Sep. 24, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Jim Beam | Beam Suntory Licensing Agreement | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Number of license agreements | Agreement | 2 | |||
License agreement term | 5 years | |||
Maximum percentage of shipments of beverages under license agreement | 1% | |||
Pepsi | Pepsi Licensing Agreement | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Term of license agreement option to terminate | 2 years | |||
Payments for proprietary ingredients, shipment of beverages and marketing services | $ 2.5 | |||
Excess over fair market value | $ 0.4 |
Quarterly Results (Detail)
Quarterly Results (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |||
Net revenue | $ 2,090,334 | $ 2,057,622 | $ 1,736,432 |
Gross profit | 861,986 | 797,792 | 814,452 |
Operating income | 90,791 | 7,997 | 244,207 |
Net income | $ 67,263 | $ 14,553 | $ 191,960 |
Net income per common share - basic | $ 5.46 | $ 1.19 | $ 15.73 |
Net income per share - diluted | $ 5.44 | $ 1.17 | $ 15.53 |