Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 20, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | SAM | |
Entity Registrant Name | BOSTON BEER CO INC | |
Entity Central Index Key | 949,870 | |
Current Fiscal Year End Date | --12-30 | |
Entity Filer Category | Large Accelerated Filer | |
Common Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 8,663,936 | |
Common Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 3,097,355 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 70,045 | $ 91,035 |
Accounts receivable, net of allowance for doubtful accounts of $170 and $0 as of September 30, 2017 and December 31, 2016, respectively | 43,182 | 36,694 |
Inventories | 54,943 | 52,499 |
Prepaid expenses and other current assets | 9,593 | 8,731 |
Income tax receivable | 1,380 | 4,928 |
Total current assets | 179,143 | 193,887 |
Property, plant and equipment, net | 387,637 | 408,411 |
Other assets | 16,651 | 9,965 |
Goodwill | 3,683 | 3,683 |
Total assets | 587,114 | 615,946 |
Current Liabilities: | ||
Accounts payable | 42,193 | 40,585 |
Accrued expenses and other current liabilities | 67,201 | 60,934 |
Total current liabilities | 109,394 | 101,519 |
Deferred income taxes, net | 53,680 | 57,261 |
Other liabilities | 9,751 | 10,584 |
Total liabilities | 172,825 | 169,364 |
Commitments and Contingencies (see Note E) | ||
Stockholders' Equity: | ||
Additional paid-in capital | 370,611 | 349,913 |
Accumulated other comprehensive loss, net of tax | (1,080) | (1,103) |
Retained earnings | 44,640 | 97,648 |
Total stockholders' equity | 414,289 | 446,582 |
Total liabilities and stockholders' equity | 587,114 | 615,946 |
Common Class A | ||
Stockholders' Equity: | ||
Common Stock | 87 | 92 |
Common Class B | ||
Stockholders' Equity: | ||
Common Stock | $ 31 | $ 32 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Allowance for doubtful accounts on accounts receivable | $ 170 | $ 0 |
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 | 8,650,988 | 9,170,956 |
Common Stock, shares outstanding | 8,650,988 | 9,170,956 |
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 | 3,097,355 | 3,197,355 |
Common Stock, shares outstanding | 3,097,355 | 3,197,355 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 24, 2016 | Sep. 30, 2017 | Sep. 24, 2016 | ||
Revenue | $ 264,146 | $ 271,225 | $ 701,247 | $ 734,459 | |
Less excise taxes | 17,099 | 17,792 | 44,575 | 47,383 | |
Net revenue | 247,047 | 253,433 | 656,672 | 687,076 | |
Cost of goods sold | 115,546 | 119,826 | 314,808 | 335,062 | |
Gross profit | 131,501 | 133,607 | 341,864 | 352,014 | |
Advertising, promotional and selling expenses | 63,647 | 63,817 | 185,232 | 186,318 | |
General and administrative expenses | 16,358 | 19,481 | 54,315 | 62,325 | |
Impairment of assets | 1,505 | 37 | |||
Total operating expenses | 80,005 | 83,298 | 241,052 | 248,680 | |
Operating income | 51,496 | 50,309 | 100,812 | 103,334 | |
Interest income, net | 211 | 22 | 381 | 65 | |
Other income (expense), net | 196 | (169) | 253 | (594) | |
Total other income (expense), net | 407 | (147) | 634 | (529) | |
Income before income tax provision | 51,903 | 50,162 | 101,446 | 102,805 | |
Income tax provision | 18,220 | 18,632 | 32,927 | 37,622 | |
Net income | $ 33,683 | $ 31,530 | $ 68,519 | $ 65,183 | |
Net income per common share - basic | $ 2.82 | $ 2.53 | $ 5.60 | $ 5.16 | |
Net income per common share - diluted | $ 2.78 | $ 2.48 | $ 5.54 | $ 5.05 | |
Weighted-average number of common shares - diluted | 12,037 | 12,641 | 12,299 | 12,853 | |
Net income | $ 33,683 | $ 31,530 | $ 68,519 | $ 65,183 | |
Other comprehensive income: | |||||
Foreign currency translation adjustment | (13) | 2 | (23) | (90) | |
Comprehensive income | $ 33,670 | $ 31,532 | $ 68,496 | $ 65,093 | |
Common Class A | |||||
Net income per common share - basic | $ 2.82 | $ 2.53 | $ 5.60 | $ 5.16 | |
Weighted-average number of common shares - basic | 8,789 | 9,018 | 9,037 | 9,191 | |
Common Class B | |||||
Net income per common share - basic | $ 2.82 | $ 2.53 | $ 5.60 | $ 5.16 | |
Weighted-average number of common shares - basic | [1] | 3,097 | 3,367 | 3,122 | 3,367 |
[1] | Change in Class B Common Stock resulted from the conversion of 100,000 shares to Class A Common Stock on March 7, 2017, 45,000 shares to Class A Common Stock on November 30, 2016 and 125,000 shares to Class A Common Stock on November 4, 2016, with the ending number of shares reflecting the weighted average for the periods. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 24, 2016 | |
Cash flows provided by operating activities: | ||
Net income | $ 68,519 | $ 65,183 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 38,372 | 37,305 |
Impairment of assets | 1,505 | 37 |
Loss on disposal of property, plant and equipment | 571 | 553 |
Bad debt expense (recovery) | 170 | (170) |
Stock-based compensation expense | 4,593 | 8,122 |
Excess tax benefit from stock-based compensation arrangements | 0 | (12,387) |
Deferred income taxes | (3,581) | 5,464 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (6,658) | (7,037) |
Inventories | (9,330) | (2,897) |
Prepaid expenses, income tax receivable and other assets | 2,852 | 11,841 |
Accounts payable | 5,371 | (4,571) |
Accrued expenses and other current liabilities | 6,244 | 13,365 |
Other liabilities | (390) | (6,446) |
Net cash provided by operating activities | 108,238 | 108,362 |
Cash flows used in investing activities: | ||
Purchases of property, plant and equipment | (23,415) | (37,108) |
Proceeds from disposal of property, plant and equipment | 16 | 4 |
Change in restricted cash | (4) | 62 |
Net cash used in investing activities | (23,403) | (37,042) |
Cash flows used in financing activities: | ||
Repurchase of Class A Common Stock | (121,535) | (138,055) |
Proceeds from exercise of stock options | 15,159 | 37,452 |
Payment of taxes related to exercise of stock options | 0 | (510) |
Cash paid on note payable | (60) | (58) |
Excess tax benefit from stock-based compensation arrangements | 0 | 12,387 |
Net proceeds from sale of investment shares | 611 | 537 |
Net cash used in financing activities | (105,825) | (88,247) |
Change in cash and cash equivalents | (20,990) | (16,927) |
Cash and cash equivalents at beginning of year | 91,035 | 94,193 |
Cash and cash equivalents at end of period | 70,045 | 77,266 |
Supplemental disclosure of cash flow information: | ||
Income taxes paid | 22,408 | 21,939 |
Income taxes refunded | 2 | 12,002 |
(Decrease) Increase in accounts payable for purchase of property, plant and equipment | (3,763) | 1,235 |
Decrease in accounts payable for repurchase of Class A Common Stock | $ 0 | $ (3,000) |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
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 brewing and selling alcohol beverages throughout the United States and in selected international markets, under the trade names, “The Boston Beer Company,” “Twisted Tea Brewing Company,” “Angry Orchard Cider Company” and “Hard Seltzer Beverage Company”. The Company’s Samuel Adams ® The accompanying unaudited consolidated balance sheet as of September 30, 2017, and the consolidated statements of comprehensive income and consolidated statements of cash flows for the interim periods ended September 30, 2017 and September 24, 2016 have been prepared by the Company in accordance with U.S. generally accepted accounting principles for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and footnotes normally included in financial statements prepared in accordance with U.S generally accepted accounting principles have been condensed or omitted. These consolidated financial statements should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K In the opinion of the Company’s management, the Company’s unaudited consolidated balance sheet as of September 30, 2017 and the results of its consolidated operations and consolidated cash flows for the interim periods ended September 30, 2017 and September 24, 2016, reflect all adjustments (consisting only of normal and recurring adjustments) necessary to present fairly the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full year. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2017 | |
Inventories | B. Inventories Inventories consist of raw materials, work in process and finished goods. Raw materials, which principally consist of hops, apple juice, other brewing materials and packaging, are stated at the lower of cost, determined on the first-in, first-out September 30, 2017 December 31, 2016 (in thousands) Current inventory: Raw materials $ 34,267 $ 35,314 Work in process 8,687 8,131 Finished goods 11,989 9,054 Total current inventory 54,943 52,499 Long term inventory 13,202 6,316 Total inventory $ 68,145 $ 58,815 |
Net Income per Share
Net Income per Share | 9 Months Ended |
Sep. 30, 2017 | |
Net Income per Share | Net Income per Share The Company calculates net income per share using the two-class 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. 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 the Class B Common Stock is freely convertible into one share of Class A Common Stock, upon request of the respective Class B holder, and participates equally in dividends. The Company’s unvested share-based payment awards include unvested shares (1) issued under the Company’s 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 and to purchase those shares at a discount ranging from 20% to 40% below market value based on years of employment starting after two years of employment, and (2) awarded as restricted stock awards at the discretion of the Company’s Board of Directors. The investment shares and restricted stock awards generally vest over five years in equal number of shares. The unvested shares participate equally in dividends. See Note I for a discussion of the current year unvested stock awards and issuances. Included in the computation of net income per diluted common share are dilutive outstanding stock options that are vested or expected to vest. At its discretion, the Board of Directors grants stock options to senior management and certain key employees. The terms of the employee stock options are determined by the Board of Directors at the time of grant. To date, stock options granted to employees vest over various service periods and/or based on the attainment of certain performance criteria and generally expire after ten years. The Company also grants stock options to its non-employee re-election non-employee Net Income per Common Share — Basic The following table sets forth the computation of basic net income per share using the two-class Thirteen weeks ended Thirty-nine weeks ended September 30, 2017 September 24, 2016 September 30, 2017 September 24, 2016 (in thousands, except per share data) (in thousands, except per share data) Net income $ 33,683 $ 31,530 $ 68,519 $ 65,183 Allocation of net income for basic: Class A Common Stock $ 24,772 $ 22,841 $ 50,647 $ 47,465 Class B Common Stock 8,730 8,529 17,493 17,390 Unvested participating shares 181 160 379 328 $ 33,683 $ 31,530 $ 68,519 $ 65,183 Weighted average number of shares for basic: Class A Common Stock 8,789 9,018 9,037 9,191 Class B Common Stock* 3,097 3,367 3,122 3,367 Unvested participating shares 65 63 67 64 11,951 12,448 12,226 12,622 Net income per share for basic: Class A Common Stock $ 2.82 $ 2.53 $ 5.60 $ 5.16 Class B Common Stock $ 2.82 $ 2.53 $ 5.60 $ 5.16 *Change in Class B Common Stock resulted from the conversion of 100,000 shares to Class A Common Stock on March 7, 2017, 45,000 shares to Class A Common Stock on November 30, 2016 and 125,000 shares to Class A Common Stock on November 4, 2016, with the ending number of shares reflecting the weighted average for the periods. 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 The following table sets forth the computation of diluted net income per share, assuming the conversion of all Class B Common Stock into Class A Common Stock and using the two-class Thirteen weeks ended September 30, 2017 September 24, 2016 Earnings to Common EPS Earnings to Common EPS (in thousands, except per share data) As reported — basic $ 24,772 8,789 $ 2.82 $ 22,841 9,018 $ 2.53 Add: effect of dilutive potential common shares Share-based awards — 151 — 256 Class B Common Stock 8,730 3,097 8,529 3,367 Net effect of unvested participating shares 2 — 3 — Net income per common share — diluted $ 33,504 12,037 $ 2.78 $ 31,373 12,641 $ 2.48 Thirty-nine weeks ended September 30, 2017 September 24, 2016 Earnings to Common EPS Earnings to Common EPS (in thousands, except per share data) As reported — basic $ 50,647 9,037 $ 5.60 $ 47,465 9,191 $ 5.16 Add: effect of dilutive potential common shares Share-based awards — 140 — 295 Class B Common Stock 17,493 3,122 17,390 3,367 Net effect of unvested participating shares 4 — 7 — Net income per common share — diluted $ 68,144 12,299 $ 5.54 $ 64,862 12,853 $ 5.05 During the thirteen and thirty-nine weeks ended September 30, 2017, weighted-average stock options to purchase approximately 791,000 and 800,000 shares, respectively, of Class A Common Stock were outstanding but not included in computing diluted income per common share because their effects were anti-dilutive. During the thirteen and thirty-nine weeks ended September 24, 2016, weighted-average stock options to purchase approximately 740,000 and 704,000 shares, respectively, of Class A Common Stock were outstanding but not included in computing diluted income per common share because their effects were anti-dilutive. Additionally, performance-based stock options to purchase approximately 36,000 and 35,000 shares of Class A Common Stock were outstanding as of September 30, 2017 and September 24, 2016, respectively, but not included in computing diluted income per common share because the performance criteria of these stock options was not met as of the end of the reporting period. Of the performance-based stock options to purchase approximately 36,000 shares of Class A Common Stock that were excluded from computing diluted net income per common share as of September 30, 2017, 31,000 shares were granted in 2016 to two key employees. The vesting of these shares requires annual depletions, or sales by distributors to retailers, of certain of the Company’s brands to attain various thresholds during the period from 2017 to 2023. The remaining 5,000 shares were granted in 2017 to executive officers and the vesting of these shares requires annual depletions to attain certain thresholds in 2019. Furthermore, stock options to purchase approximately 12,000 shares of Class A Common Stock were not included in computing diluted income per share because these stock options were cancelled during the thirty-nine weeks ended September 30, 2017, due to performance criteria not being met or employee termination prior to vesting. |
Comprehensive Income or Loss
Comprehensive Income or Loss | 9 Months Ended |
Sep. 30, 2017 | |
Comprehensive Income or Loss | D. Comprehensive Income or Loss Comprehensive income or loss represents net income or loss, plus defined benefit plans liability adjustment, net of tax effect and foreign currency translation adjustment. The defined benefit plans liability and foreign currency translation adjustments for the interim periods ended September 30, 2017 and September 24, 2016 were not material. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies | E. Commitments and Contingencies Contract Obligations The Company had outstanding total non-cancelable The Company has entered into contracts for the supply of a portion of its hops requirements. These purchase contracts extend through crop year 2022 and specify both the quantities and prices, denominated in U.S. Dollars, Euros and New Zealand Dollars, to which the Company is committed. Hops purchase commitments outstanding at September 30, 2017 totaled $44.0 million, 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. Currently, the Company has entered into contracts for barley and wheat with two major suppliers. The contracts include crop year 2017 and cover the Company’s barley, wheat, and malt requirements for 2017 and part of 2018. These purchase commitments outstanding at September 30, 2017 totaled $15.5 million. The Company sources some of its glass bottles needs pursuant to a Glass Bottle Supply Agreement with Anchor Glass Container Corporation (“Anchor”), under which Anchor is the supplier of certain glass bottles for the Company’s Cincinnati Brewery and its Pennsylvania Brewery. This agreement also establishes the terms on which Anchor may supply glass bottles to other breweries where the Company brews its beers. Under the agreement with Anchor, the Company has minimum purchase commitments that are based on Company-provided production estimates which, under normal business conditions, are expected to be fulfilled. Minimum purchase commitments under the agreement, assuming the supplier is unable to replace production cancelled by the Company, as of September 30, 2017 totaled $2.6 million. The Company has various operating lease agreements for facilities and equipment as of September 30, 2017. 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 2022. The contractual obligation on these lease agreements as of September 30, 2017 totaled $13.5 million. Currently, the Company brews and packages more than 90% of its volume at Company-owned breweries. 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 purchases the liquid produced by those brewing companies, including the raw materials that are used in the liquid, at the time such liquid goes into fermentation. The Company is required to repurchase all unused raw materials purchased by the brewing company specifically for the Company’s beers at the brewing company’s cost upon termination of the production arrangement. The Company is also obligated to meet annual volume requirements in conjunction with certain production arrangements. These requirements are not material to the Company’s operations. Litigation The Company is not a party to any pending or threatened litigation, the outcome of which would be expected to have a material adverse effect upon its financial condition or the results of its operations. In general, while the Company believes it conducts its business appropriately in accordance with laws, regulations and industry guidelines, claims, whether or not meritorious, could be asserted against the Company that might adversely impact the Company’s results. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Taxes | F. Income Taxes As of September 30, 2017 and December 31, 2016, the Company had approximately $0.4 million and $0.5 million, respectively, of unrecognized income tax benefits. The Company’s practice is to classify interest and penalties related to income tax matters in income tax expense. As of September 30, 2017 and December 31, 2016, the Company had $0.3 million and $0.3 million, respectively, accrued for interest and penalties. In September 2017, the Internal Revenue Service commenced an examination of the Company’s 2015 consolidated corporate income tax return. The examination was still in process as of September 30, 2017. The Company’s state income tax returns remain subject to examination for three or four years depending on the state’s statute of limitations. The Company is being audited by two states as of September 30, 2017. In addition, the Company is generally obligated to report changes in taxable income arising from federal income tax audits. The following table provides a summary of the income tax provision for the thirteen and thirty-nine weeks ended September 30, 2017 and September 24, 2016: Thirteen weeks ended September 30, September 24, 2017 2016 (in thousands) Summary of income tax provision Tax provision based on net income $ 18,753 $ 18,632 Impact of adoption of ASU 2016-09 (533 ) — Total income tax provision $ 18,220 $ 18,632 Thirty-nine weeks ended September 30, September 24, 2017 2016 (in thousands) Summary of income tax provision Tax provision based on net income $ 37,189 $ 37,622 Impact of adoption of ASU 2016-09 (4,262 ) — Total income tax provision $ 32,927 $ 37,622 The Company’s effective tax rate for the thirteen weeks ended September 30, 2017 decreased to 35.1% from 37.1% for the thirteen weeks ended September 24, 2016. The Company’s effective tax rate for the thirty-nine weeks ended September 30, 2017 decreased to 32.5% from 36.6% for the thirty-nine weeks ended September 24, 2016. These decreases were primarily due to the tax benefit resulting from the adoption of ASU 2016-09, |
Revolving Line of Credit
Revolving Line of Credit | 9 Months Ended |
Sep. 30, 2017 | |
Revolving Line of Credit | G. Revolving Line of Credit The Company has a credit facility in place that provides for a $150.0 million revolving line of credit which expires on March 31, 2019. As of September 30, 2017, the Company was not in violation of any of its financial covenants to the lender under the credit facility and there were no borrowings outstanding, so that the line of credit was fully available to the Company for borrowing. |
Fair Value Measures
Fair Value Measures | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Measures | H. Fair Value Measures 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. All financial assets or liabilities that are measured at fair value on a recurring basis (at least annually) have been segregated into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date. The assets or liabilities measured at fair value on a recurring basis are summarized in the table below (in thousands): As of September 30, 2017 Level 1 Level 2 Level 3 Total Cash equivalents $ 67,521 $ — $ — $ 67,521 As of December 31, 2016 Level 1 Level 2 Level 3 Total Cash equivalents $ 89,966 $ — $ — $ 89,966 The Company’s cash equivalents listed above represent money market funds and are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The money market funds were invested substantially in United States Treasury and government securities. The Company does not adjust the quoted market price for such financial instruments. Financial instruments that potentially subject the Company to credit risk consist principally of cash and cash equivalents held in money market funds. At September 30, 2017 and December 31, 2016, the Company had money market funds which have been deemed “Triple A” rated. The Company considers the “Triple A” rated money market funds to be a large, highly-rated investment-grade institution. As of September 30, 2017 and December 31, 2016, the Company’s cash and cash equivalents balance was $70.0 million and $91.0 million, respectively, including money market funds amounting to $67.5 million and $90.0 million, respectively. Cash, certificates of deposit, receivables and payables are carried at their cost, which approximates fair value, because of their short-term nature. Financial instruments not recorded at fair value in the consolidated financial statements are summarized in the table below (in thousands): As of September 30, 2017 Level 1 Level 2 Level 3 Total Note payable $ — $ 340 $ — $ 340 As of December 31, 2016 Level 1 Level 2 Level 3 Total Note payable $ — $ 400 $ — $ 400 |
Common Stock and Stock-Based Co
Common Stock and Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Common Stock and Stock-Based Compensation | I. Common Stock and Stock-Based Compensation Option Activity Information related to stock options under the Employee Equity Incentive Plan and the Stock Option Plan for Non-Employee Shares Weighted- Weighted- Aggregate (in thousands) Outstanding at December 31, 2016 1,348,233 $ 141.98 Granted 15,373 150.10 Forfeited (12,208 ) 160.47 Expired — — Exercised (190,401 ) 79.61 Outstanding at September 30, 2017 1,160,997 $ 176.25 6.55 $ 24,703 Exercisable at September 30, 2017 186,242 $ 98.55 4.01 $ 11,969 Vested and expected to vest at September 30, 2017 566,478 $ 123.65 5.75 $ 24,067 Of the total options outstanding at September 30, 2017, 35,885 shares were performance-based options for which the performance criteria had yet to be achieved. On January 1, 2017, the Company granted options to purchase an aggregate of 5,185 shares of the Company’s Class A Common Stock to senior management with a weighted average fair value of $81.95 per share, of which all shares relate to performance-based stock options. On May 18, 2017, the Company granted options to purchase an aggregate of 10,188 shares of the Company’s Class A Common Stock to the Company’s non-employee Directors. These options have a weighted average fair value of $67.72 per share. All of the options vested immediately on the date of the grant. On August 1, 2017, the Company modified the performance criteria for performance-based options that were originally granted on April 26, 2016. This modification was accounted for in accordance with ASC 718-20-35. On January 1, 2008, the Company granted the Chief Executive Officer a stock option to purchase 753,864 shares of its Class A Common Stock, which vests over a five-year period, commencing on January 1, 2014, at the rate of 20% per year. The exercise price is determined by multiplying $42.00 by the aggregate change in the DJ Wilshire 5000 Index from and after January 1, 2008 through the close of business on the trading date next preceding each date on which the option is exercised. The exercise price will not be less than $37.65 per share and the excess of the fair value of the Company’s Class A Common Stock over the exercise price cannot exceed $70.00 per share over the exercise price. At September 30, 2017 and September 24, 2016, the stock option remained unexercised as to 150,773 shares and 301,546 shares, respectively. If the stock option had been exercised on September 30, 2017, the exercise price would have been $86.20 per share. If the stock option had been exercised on September 24, 2016, the exercise price would have been $82.30 per share. The Company is accounting for this award as a market-based award which was valued utilizing the Monte Carlo Simulation pricing model, which calculates multiple potential outcomes for an award and establishes fair value based on the most likely outcome. Under the Monte Carlo Simulation pricing model, the Company calculated the weighted average fair value per share to be $8.41. On January 1, 2016, the Company granted the Chief Executive Officer an option to purchase 574,507 shares of its Class A Common Stock, which vests over a five-year period, commencing on January 1, 2019, at the rate of 20% per year. The exercise price is determined by multiplying $201.91 by the aggregate percentage change in the DJ Wilshire 5000 Index from and after January 1, 2016 through the close of business on the trading date next preceding each date on which the option is exercised, plus an additional 1.5 percentage points per annum, prorated for partial years. The exercise price will not be less than $201.91 per share and the excess of the fair value of the Company’s Class A Common Stock cannot exceed $150 per share over the exercise price. At September 30, 2017 and September 24, 2016, the stock option remained unexercised as to 574,507 shares. If the stock option had been exercised on September 30, 2017, the exercise price would have been $229.53 per share. If the stock option had been exercised on September 24, 2016, the exercise price would have been $217.53 per share. The Company is accounting for this award as a market-based award which was valued utilizing the Monte Carlo Simulation pricing model, which calculates multiple potential outcomes for an award and establishes fair value based on the most likely outcome. Under the Monte Carlo Simulation pricing model, the Company calculated the weighted average fair value per share to be $39.16. As a result of the Chief Executive Officer’s planned retirement in 2018, the Company estimated a 100% forfeiture rate related to this grant. Non-Vested The following table summarizes vesting activities of shares issued under the investment share program and restricted stock awards: Number of Weighted Non-vested at December 31, 2016 64,968 $ 166.29 Granted 25,946 132.88 Vested (21,003 ) 150.04 Forfeited (5,980 ) 184.25 Non-vested at September 30, 2017 63,931 $ 156.39 On January 1, 2017, the Company granted 12,358 shares of restricted stock awards to certain senior managers and key employees, of which all shares vest ratably over service periods of five years. On January 1, 2017, employees elected to purchase 10,146 shares under the investment share program. The weighted average fair value of the restricted stock awards and investment shares, which are sold to employees at discount under its investment share program, was $169.85 and $78.74 per share, respectively. On March 3, 2017, the Company granted 2,167 shares of restricted stock awards to a newly hired key employee, of which all shares vest ratably over a service period of five years. The weighted average fair value of the restricted stock award was $161.45. On August 1, 2017, the Company granted 1,275 shares of restricted stock awards to a newly hired key employee, of which all shares vest ratably over a service period of five years. The weighted average fair value of the restricted stock award was $156.80. Stock-Based Compensation Stock-based compensation expense related to share-based awards recognized in the thirteen and thirty-nine weeks ended September 30, 2017 was $1.2 million and $4.6 million, respectively, and was calculated based on awards expected to vest. Stock-based compensation expense related to share-based awards recognized in the thirteen and thirty-nine weeks ended September 24, 2016 was $2.4 million and $8.1 million, respectively, and was calculated based on awards expected to vest. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2017 | |
Recent Accounting Pronouncements | J. Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted In March 2016, the FASB issued ASU No. 2016-09, Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting 2016-09 2016-09, 2016-09, In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes 2015-17 In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330), Simplifying the Measurement of Inventory 2015-11 Accounting Pronouncements Not Yet Effective In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) 2014-09 2014-09 2014-09 No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date 2015-14 2014-09 2014-09 2014-09 In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) 2016-02 2016-02 In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplfying the Test for Goodwill Impairment 2017-04 2017-04 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events | K. Subsequent Events On October 5, 2017, the Board of Directors approved an increase of $150.0 million to the previously approved $781.0 million share buyback expenditure limit for a new limit of $931.0 million. The Company evaluated subsequent events occurring after the balance sheet date, September 30, 2017, and concluded that there were no other events of which management was aware that occurred after the balance sheet date that would require any adjustment to or disclosure in the accompanying consolidated financial statements. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Components of Inventories | Inventories consist of the following: September 30, 2017 December 31, 2016 (in thousands) Current inventory: Raw materials $ 34,267 $ 35,314 Work in process 8,687 8,131 Finished goods 11,989 9,054 Total current inventory 54,943 52,499 Long term inventory 13,202 6,316 Total inventory $ 68,145 $ 58,815 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Computation of Earnings Per Share, Basic | The following table sets forth the computation of basic net income per share using the two-class Thirteen weeks ended Thirty-nine weeks ended September 30, 2017 September 24, 2016 September 30, 2017 September 24, 2016 (in thousands, except per share data) (in thousands, except per share data) Net income $ 33,683 $ 31,530 $ 68,519 $ 65,183 Allocation of net income for basic: Class A Common Stock $ 24,772 $ 22,841 $ 50,647 $ 47,465 Class B Common Stock 8,730 8,529 17,493 17,390 Unvested participating shares 181 160 379 328 $ 33,683 $ 31,530 $ 68,519 $ 65,183 Weighted average number of shares for basic: Class A Common Stock 8,789 9,018 9,037 9,191 Class B Common Stock* 3,097 3,367 3,122 3,367 Unvested participating shares 65 63 67 64 11,951 12,448 12,226 12,622 Net income per share for basic: Class A Common Stock $ 2.82 $ 2.53 $ 5.60 $ 5.16 Class B Common Stock $ 2.82 $ 2.53 $ 5.60 $ 5.16 *Change in Class B Common Stock resulted from the conversion of 100,000 shares to Class A Common Stock on March 7, 2017, 45,000 shares to Class A Common Stock on November 30, 2016 and 125,000 shares to Class A Common Stock on November 4, 2016, with the ending number of shares reflecting the weighted average for the periods. |
Computation of Earnings Per Share, Diluted | The following table sets forth the computation of diluted net income per share, assuming the conversion of all Class B Common Stock into Class A Common Stock and using the two-class Thirteen weeks ended September 30, 2017 September 24, 2016 Earnings to Common EPS Earnings to Common EPS (in thousands, except per share data) As reported — basic $ 24,772 8,789 $ 2.82 $ 22,841 9,018 $ 2.53 Add: effect of dilutive potential common shares Share-based awards — 151 — 256 Class B Common Stock 8,730 3,097 8,529 3,367 Net effect of unvested participating shares 2 — 3 — Net income per common share — diluted $ 33,504 12,037 $ 2.78 $ 31,373 12,641 $ 2.48 Thirty-nine weeks ended September 30, 2017 September 24, 2016 Earnings to Common EPS Earnings to Common EPS (in thousands, except per share data) As reported — basic $ 50,647 9,037 $ 5.60 $ 47,465 9,191 $ 5.16 Add: effect of dilutive potential common shares Share-based awards — 140 — 295 Class B Common Stock 17,493 3,122 17,390 3,367 Net effect of unvested participating shares 4 — 7 — Net income per common share — diluted $ 68,144 12,299 $ 5.54 $ 64,862 12,853 $ 5.05 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Summary of Income Tax Provision | The following table provides a summary of the income tax provision for the thirteen and thirty-nine weeks ended September 30, 2017 and September 24, 2016: Thirteen weeks ended September 30, September 24, 2017 2016 (in thousands) Summary of income tax provision Tax provision based on net income $ 18,753 $ 18,632 Impact of adoption of ASU 2016-09 (533 ) — Total income tax provision $ 18,220 $ 18,632 Thirty-nine weeks ended September 30, September 24, 2017 2016 (in thousands) Summary of income tax provision Tax provision based on net income $ 37,189 $ 37,622 Impact of adoption of ASU 2016-09 (4,262 ) — Total income tax provision $ 32,927 $ 37,622 |
Fair Value Measures (Tables)
Fair Value Measures (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Measurement of Assets and Liabilities on Recurring Basis | The assets or liabilities measured at fair value on a recurring basis are summarized in the table below (in thousands): As of September 30, 2017 Level 1 Level 2 Level 3 Total Cash equivalents $ 67,521 $ — $ — $ 67,521 As of December 31, 2016 Level 1 Level 2 Level 3 Total Cash equivalents $ 89,966 $ — $ — $ 89,966 |
Financial Instruments Not Recorded at Fair Value | Financial instruments not recorded at fair value in the consolidated financial statements are summarized in the table below (in thousands): As of September 30, 2017 Level 1 Level 2 Level 3 Total Note payable $ — $ 340 $ — $ 340 As of December 31, 2016 Level 1 Level 2 Level 3 Total Note payable $ — $ 400 $ — $ 400 |
Common Stock and Stock-Based 21
Common Stock and Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Summary of Stock Options under Equity Plan and Non-Employee Director Plan | Information related to stock options under the Employee Equity Incentive Plan and the Stock Option Plan for Non-Employee Shares Weighted- Weighted- Aggregate (in thousands) Outstanding at December 31, 2016 1,348,233 $ 141.98 Granted 15,373 150.10 Forfeited (12,208 ) 160.47 Expired — — Exercised (190,401 ) 79.61 Outstanding at September 30, 2017 1,160,997 $ 176.25 6.55 $ 24,703 Exercisable at September 30, 2017 186,242 $ 98.55 4.01 $ 11,969 Vested and expected to vest at September 30, 2017 566,478 $ 123.65 5.75 $ 24,067 |
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 Weighted Non-vested 64,968 $ 166.29 Granted 25,946 132.88 Vested (21,003 ) 150.04 Forfeited (5,980 ) 184.25 Non-vested 63,931 $ 156.39 |
Components of Inventories (Deta
Components of Inventories (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current inventory: | ||
Raw materials | $ 34,267 | $ 35,314 |
Work in process | 8,687 | 8,131 |
Finished goods | 11,989 | 9,054 |
Total current inventory | 54,943 | 52,499 |
Long term inventory | 13,202 | 6,316 |
Total inventory | $ 68,145 | $ 58,815 |
Net Income per Share - Addition
Net Income per Share - Additional Information (Detail) | Aug. 01, 2017 | Mar. 03, 2017 | Jan. 01, 2017 | Sep. 30, 2017shares | Sep. 24, 2016shares | Sep. 30, 2017shares | Sep. 24, 2016shares | Dec. 31, 2016Employeeshares |
Earnings Per Share Note [Line Items] | ||||||||
Stock options cancelled during the period | 12,208 | |||||||
Investment Share Program | ||||||||
Earnings Per Share Note [Line Items] | ||||||||
Requirement tenure of employee for investment share program, purchase shares at discount | 2 years | |||||||
Vesting period | 5 years | |||||||
Investment Share Program | Minimum | ||||||||
Earnings Per Share Note [Line Items] | ||||||||
Requirement tenure of employee for investment share program | 1 year | |||||||
Discount from current market value | 20.00% | |||||||
Investment Share Program | Maximum | ||||||||
Earnings Per Share Note [Line Items] | ||||||||
Discount from current market value | 40.00% | |||||||
Restricted Stock Awards | ||||||||
Earnings Per Share Note [Line Items] | ||||||||
Vesting period | 5 years | |||||||
Restricted Stock Awards | Key Employee | ||||||||
Earnings Per Share Note [Line Items] | ||||||||
Vesting period | 5 years | 5 years | ||||||
Common Class A | ||||||||
Earnings Per Share Note [Line Items] | ||||||||
Antidilutive securities excluded from computation of earnings per share | 791,000 | 740,000 | 800,000 | 704,000 | ||||
Common Class A | Performance-Based Awards | ||||||||
Earnings Per Share Note [Line Items] | ||||||||
Number of shares not included because the performance criteria was not met as of the end of the reporting period | 36,000 | 35,000 | ||||||
Stock options cancelled during the period | 12,000 | |||||||
Common Class A | Performance-Based Awards | Key Employee | ||||||||
Earnings Per Share Note [Line Items] | ||||||||
Options granted in period | 31,000 | |||||||
Number of employees | Employee | 2 | |||||||
Common Class A | Performance-Based Awards | Executive Officers | ||||||||
Earnings Per Share Note [Line Items] | ||||||||
Options granted in period | 5,000 |
Computation of Earnings Per Sha
Computation of Earnings Per Share, Basic (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 24, 2016 | Sep. 30, 2017 | Sep. 24, 2016 | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Net income | $ 33,683 | $ 31,530 | $ 68,519 | $ 65,183 | |
Allocation of net income for basic: | |||||
Allocation of net income for basic common stock | 33,683 | 31,530 | 68,519 | 65,183 | |
Allocation of net income for basic unvested participating shares | $ 181 | $ 160 | $ 379 | $ 328 | |
Weighted average number of shares for basic: | |||||
Weighted average number of shares for basic unvested participating shares | 65 | 63 | 67 | 64 | |
Shares used in net income per common share - basic | 11,951 | 12,448 | 12,226 | 12,622 | |
Net income per share for basic: | |||||
Net income per common share - basic | $ 2.82 | $ 2.53 | $ 5.60 | $ 5.16 | |
Common Class A | |||||
Allocation of net income for basic: | |||||
Allocation of net income for basic common stock | $ 24,772 | $ 22,841 | $ 50,647 | $ 47,465 | |
Weighted average number of shares for basic: | |||||
Weighted-average number of common shares - basic | 8,789 | 9,018 | 9,037 | 9,191 | |
Net income per share for basic: | |||||
Net income per common share - basic | $ 2.82 | $ 2.53 | $ 5.60 | $ 5.16 | |
Common Class B | |||||
Allocation of net income for basic: | |||||
Allocation of net income for basic common stock | $ 8,730 | $ 8,529 | $ 17,493 | $ 17,390 | |
Weighted average number of shares for basic: | |||||
Weighted-average number of common shares - basic | [1] | 3,097 | 3,367 | 3,122 | 3,367 |
Net income per share for basic: | |||||
Net income per common share - basic | $ 2.82 | $ 2.53 | $ 5.60 | $ 5.16 | |
[1] | Change in Class B Common Stock resulted from the conversion of 100,000 shares to Class A Common Stock on March 7, 2017, 45,000 shares to Class A Common Stock on November 30, 2016 and 125,000 shares to Class A Common Stock on November 4, 2016, with the ending number of shares reflecting the weighted average for the periods. |
Computation of Earnings Per S25
Computation of Earnings Per Share, Basic (Parenthetical) (Detail) - shares | Mar. 07, 2017 | Nov. 30, 2016 | Nov. 04, 2016 |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Conversion of Class B Common Stock into Class A Common Stock | 100,000 | 45,000 | 125,000 |
Computation of Diluted Net Inco
Computation of Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 24, 2016 | Sep. 30, 2017 | Sep. 24, 2016 | ||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | |||||
Allocation of net income for basic common stock | $ 33,683 | $ 31,530 | $ 68,519 | $ 65,183 | |
Earnings to Common Shareholders, Net effect of unvested participating shares | 2 | 3 | 4 | 7 | |
Earnings to Common Shareholders, Net income per common share - diluted | $ 33,504 | $ 31,373 | $ 68,144 | $ 64,862 | |
Add: effect of dilutive potential common, Share-based awards | 151 | 256 | 140 | 295 | |
Weighted-average number of common shares - diluted | 12,037 | 12,641 | 12,299 | 12,853 | |
Net income per common share-basic | $ 2.82 | $ 2.53 | $ 5.60 | $ 5.16 | |
Net income per common share-diluted | $ 2.78 | $ 2.48 | $ 5.54 | $ 5.05 | |
Common Class A | |||||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | |||||
Allocation of net income for basic common stock | $ 24,772 | $ 22,841 | $ 50,647 | $ 47,465 | |
Weighted-average number of common shares - basic | 8,789 | 9,018 | 9,037 | 9,191 | |
Net income per common share-basic | $ 2.82 | $ 2.53 | $ 5.60 | $ 5.16 | |
Common Class B | |||||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | |||||
Allocation of net income for basic common stock | $ 8,730 | $ 8,529 | $ 17,493 | $ 17,390 | |
Earnings to Common Shareholders, Class B Common Stock | $ 8,730 | $ 8,529 | $ 17,493 | $ 17,390 | |
Weighted-average number of common shares - basic | [1] | 3,097 | 3,367 | 3,122 | 3,367 |
Add: effect of dilutive potential common, Class B Common Stock | 3,097 | 3,367 | 3,122 | 3,367 | |
Net income per common share-basic | $ 2.82 | $ 2.53 | $ 5.60 | $ 5.16 | |
[1] | Change in Class B Common Stock resulted from the conversion of 100,000 shares to Class A Common Stock on March 7, 2017, 45,000 shares to Class A Common Stock on November 30, 2016 and 125,000 shares to Class A Common Stock on November 4, 2016, with the ending number of shares reflecting the weighted average for the periods. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 9 Months Ended | |
Sep. 30, 2017USD ($)Vendor | Dec. 31, 2016USD ($) | |
Commitments and Contingencies Disclosure [Line Items] | ||
Contractual obligations | $ 171.6 | |
Operating Leases | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Contractual obligations | $ 13.5 | $ 15.9 |
Lease expiration dates | 2,022 | |
Equipment and machinery | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Contractual obligations | $ 13.4 | |
Minimum | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Company's current brewing and packaging percentage | 90.00% | |
Barley and Wheat | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Number of suppliers | Vendor | 2 | |
Purchase commitments outstanding | $ 15.5 | |
Hops | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Purchase commitments | 44 | |
Hops, Barley and Wheat | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Contractual obligations | 59.5 | |
Other Ingredients | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Contractual obligations | 32 | |
Glass Bottles | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Contractual obligations | 2.6 | |
Purchase commitments | 2.6 | |
Advertising Contracts | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Contractual obligations | 40.7 | |
Other Commitments | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Contractual obligations | $ 9.9 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($) | Sep. 24, 2016 | Sep. 30, 2017USD ($)State | Sep. 24, 2016 | Dec. 31, 2016USD ($) | |
Income Taxes [Line Items] | |||||
Unrecognized tax benefits | $ 0.4 | $ 0.4 | $ 0.5 | ||
Accrued interest and penalties | $ 0.3 | $ 0.3 | $ 0.3 | ||
Effective income tax rate | 35.10% | 37.10% | 32.50% | 36.60% | |
State and Local Jurisdiction | |||||
Income Taxes [Line Items] | |||||
Income tax return examination | In September 2017, the Internal Revenue Service commenced an examination of the Company’s 2015 consolidated corporate income tax return. The examination was still in process as of September 30, 2017. The Company’s state income tax returns remain subject to examination for three or four years depending on the state’s statute of limitations. | ||||
Number of states being audited | State | 2 | ||||
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 |
Summary of Income Tax Provision
Summary of Income Tax Provision (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 24, 2016 | Sep. 30, 2017 | Sep. 24, 2016 | |
Summary of income tax (benefit) provision | ||||
Tax provision based on net income | $ 18,753 | $ 18,632 | $ 37,189 | $ 37,622 |
Impact of adoption of ASU 2016-09 | (533) | 0 | (4,262) | 0 |
Total income tax provision | $ 18,220 | $ 18,632 | $ 32,927 | $ 37,622 |
Revolving Line of Credit - Addi
Revolving Line of Credit - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Debt Instrument [Line Items] | |
Credit facility, borrowing outstanding | $ 0 |
Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Line of credit, current borrowing capacity | $ 150,000,000 |
Line of credit, expiration date | Mar. 31, 2019 |
Fair Value Measurement of Asset
Fair Value Measurement of Assets and Liabilities on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 67,521 | $ 89,966 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 67,521 | $ 89,966 |
Fair Value Measures - Additiona
Fair Value Measures - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 24, 2016 | Dec. 26, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | $ 70,045 | $ 91,035 | $ 77,266 | $ 94,193 |
Money market fund | $ 67,500 | $ 90,000 |
Financial Instruments Not Recor
Financial Instruments Not Recorded at Fair Value (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Note payable | $ 340 | $ 400 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Note payable | $ 340 | $ 400 |
Summary of Stock Options under
Summary of Stock Options under Employee Equity Incentive Plan and Stock Option Plan for Non-Employee Directors (Detail) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($)$ / sharesshares | |
Shares | |
Outstanding at beginning of period | shares | 1,348,233 |
Granted | shares | 15,373 |
Forfeited | shares | (12,208) |
Expired | shares | 0 |
Exercised | shares | (190,401) |
Outstanding at end of period | shares | 1,160,997 |
Exercisable at end of period | shares | 186,242 |
Vested and expected to vest at end of period | shares | 566,478 |
Weighted-Average Exercise Price | |
Outstanding at beginning of period | $ / shares | $ 141.98 |
Granted | $ / shares | 150.10 |
Forfeited | $ / shares | 160.47 |
Expired | $ / shares | 0 |
Exercised | $ / shares | 79.61 |
Outstanding at end of period | $ / shares | 176.25 |
Exercisable at end of period | $ / shares | 98.55 |
Vested and expected to vest at end of period | $ / shares | $ 123.65 |
Weighted-Average Remaining Contractual Term | |
Outstanding at end of period | 6 years 6 months 18 days |
Exercisable at end of period | 4 years 4 days |
Vested and expected to vest at end of period | 5 years 9 months |
Aggregate Intrinsic Value | |
Outstanding at end of period | $ | $ 24,703 |
Exercisable at end of period | $ | 11,969 |
Vested and expected to vest at end of period | $ | $ 24,067 |
Common Stock and Stock-Based 35
Common Stock and Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Aug. 01, 2017 | May 18, 2017 | Mar. 03, 2017 | Jan. 01, 2017 | Apr. 26, 2016 | Jan. 01, 2016 | Jan. 01, 2008 | Sep. 30, 2017 | Sep. 24, 2016 | Sep. 30, 2017 | Sep. 24, 2016 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock option unexercised | 1,160,997 | 1,160,997 | 1,348,233 | |||||||||
Other than options granted in period | 25,946 | |||||||||||
Exercise Price Per Share | $ 150.10 | |||||||||||
Weighted average fair value of stock awards | $ 132.88 | |||||||||||
Stock-based compensation expense | $ 1,200 | $ 2,400 | $ 4,593 | $ 8,122 | ||||||||
Restricted Stock Awards | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Other than options granted in period | 12,358 | |||||||||||
Vesting period | 5 years | |||||||||||
Weighted average fair value of stock awards | $ 169.85 | |||||||||||
Investment Share Program | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period | 5 years | |||||||||||
Shares employees elected to purchase | 10,146 | |||||||||||
Weighted average fair value of stock awards | $ 78.74 | |||||||||||
Performance-Based Awards | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock option unexercised | 35,885 | 35,885 | ||||||||||
Options granted in period, weighted average fair value | $ 67.92 | $ 72.53 | ||||||||||
Other than options granted in period | 20,681 | |||||||||||
Key Employee | Restricted Stock Awards | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Other than options granted in period | 1,275 | 2,167 | ||||||||||
Vesting period | 5 years | 5 years | ||||||||||
Weighted average fair value of stock awards | $ 156.80 | $ 161.45 | ||||||||||
Chief Executive Officer | January 1, 2008 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock option unexercised | 150,773 | 301,546 | 150,773 | 301,546 | ||||||||
Options granted in period | 753,864 | |||||||||||
Vesting period | 5 years | |||||||||||
Vesting percentage per year | 20.00% | |||||||||||
Stock price | $ 42 | |||||||||||
Exercise Price Per Share | $ 86.20 | $ 82.30 | ||||||||||
Options granted in period, weighted average fair value | 8.41 | |||||||||||
Chief Executive Officer | January 1, 2008 | Minimum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Exercise Price Per Share | 37.65 | |||||||||||
Chief Executive Officer | January 1, 2008 | Maximum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Exercise Price Per Share | $ 70 | |||||||||||
Chief Executive Officer | January 1, 2016 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock option unexercised | 574,507 | 574,507 | 574,507 | 574,507 | ||||||||
Options granted in period | 574,507 | |||||||||||
Options granted in period, weighted average fair value | $ 39.16 | |||||||||||
Vesting period | 5 years | |||||||||||
Vesting percentage per year | 20.00% | |||||||||||
Stock price | $ 201.91 | |||||||||||
Exercise Price Per Share | $ 229.53 | $ 217.53 | ||||||||||
Option exercised, additional percentage | 1.50% | |||||||||||
Estimated forfeiture rate for equity awards that do not vest on January 1st | 100.00% | |||||||||||
Chief Executive Officer | January 1, 2016 | Minimum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Exercise Price Per Share | $ 201.91 | |||||||||||
Chief Executive Officer | January 1, 2016 | Maximum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Options granted in period, weighted average fair value of stock over exercise price | $ 150 | |||||||||||
Employee Stock Compensation Plan | Senior Management | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Options granted in period | 5,185 | |||||||||||
Options granted in period, weighted average fair value | $ 81.95 | |||||||||||
Non-Employee Director Options | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Options granted in period | 10,188 | |||||||||||
Options granted in period, weighted average fair value | $ 67.72 |
Summary of Vesting Activities f
Summary of Vesting Activities for Investment Share Program and Restricted Stock Awards (Detail) | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Number of shares | |
Non-vested at beginning of period | shares | 64,968 |
Granted | shares | 25,946 |
Vested | shares | (21,003) |
Forfeited | shares | (5,980) |
Non-vested at end of period | shares | 63,931 |
Weighted Average Fair Value | |
Non-vested at beginning of period | $ / shares | $ 166.29 |
Granted | $ / shares | 132.88 |
Vested | $ / shares | 150.04 |
Forfeited | $ / shares | 184.25 |
Non-vested at end of period | $ / shares | $ 156.39 |
Recent Accounting Pronounceme37
Recent Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 24, 2016 | Sep. 30, 2017 | Sep. 24, 2016 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Excess tax benefit from stock-based compensation arrangements recognized within income tax provision | $ (533) | $ 0 | $ (4,262) | $ 0 | |
Deferred income taxes | 4,700 | 4,700 | $ 7,400 | ||
Contractual obligations | 171,600 | 171,600 | |||
Maximum | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Variable customer promotional discount programs expected additional liability recorded through retained earnings | 2,000 | 2,000 | |||
Operating Leases | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Contractual obligations | $ 13,500 | $ 13,500 | $ 15,900 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - USD ($) $ in Millions | Oct. 05, 2017 | Sep. 30, 2017 |
Schedule Of Common Share Purchase [Line Items] | ||
Increase of expenditure limit for Company's Stock Repurchase Program | $ 150 | |
Stock Repurchase Program limit | $ 931 | $ 781 |