Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 28, 2019 | Oct. 25, 2019 | |
Document Information [Line Items] | ||
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Type | 10-Q | |
Document Period End Date | Sep. 28, 2019 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Registrant Name | BOSTON BEER CO INC | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Small Business | false | |
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 | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000949870 | |
Current Fiscal Year End Date | --12-29 | |
Common Class A | ||
Document Information [Line Items] | ||
Trading Symbol | SAM | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 9,216,022 | |
Title of 12(b) Security | Common Stock | |
Common Class B | ||
Document Information [Line Items] | ||
No Trading Symbol Flag | true | |
Entity Common Stock, Shares Outstanding | 2,817,983 | |
Title of 12(b) Security | Common Stock |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 27,128 | $ 108,399 |
Accounts receivable | 68,687 | 34,073 |
Inventories | 92,632 | 70,249 |
Prepaid expenses and other current assets | 14,965 | 13,136 |
Income tax receivable | 5,980 | 5,714 |
Total current assets | 209,392 | 231,571 |
Property, plant and equipment, net | 521,316 | 389,789 |
Operating right-of-use assets | 38,943 | |
Goodwill | 112,529 | 3,683 |
Intangible assets | 104,335 | 2,099 |
Other assets | 29,661 | 12,709 |
Total assets | 1,016,176 | 639,851 |
Current Liabilities: | ||
Accounts payable | 71,035 | 47,102 |
Accrued expenses and other current liabilities | 92,850 | 73,412 |
Current operating lease liabilities | 2,599 | |
Total current liabilities | 166,484 | 120,514 |
Deferred income taxes, net | 81,653 | 49,169 |
Non-current operating lease liabilities | 41,215 | |
Other liabilities | 7,844 | 9,851 |
Total liabilities | 297,196 | 179,534 |
Stockholders' Equity: | ||
Additional paid-in capital | 568,047 | 405,711 |
Accumulated other comprehensive loss, net of tax | (1,154) | (1,197) |
Retained earnings | 151,967 | 55,688 |
Total stockholders' equity | 718,980 | 460,317 |
Total liabilities and stockholders' equity | 1,016,176 | 639,851 |
Common Class A | ||
Stockholders' Equity: | ||
Common Stock | 92 | 86 |
Common Class B | ||
Stockholders' Equity: | ||
Common Stock | $ 28 | $ 29 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 28, 2019 | Dec. 29, 2018 |
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 | 9,216,022 | 8,580,593 |
Common Stock, shares outstanding | 9,216,022 | 8,580,593 |
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 | 2,817,983 | 2,917,983 |
Common Stock, shares outstanding | 2,817,983 | 2,917,983 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Revenue | $ 402,691 | $ 326,852 | $ 1,008,893 | $ 818,257 |
Less excise taxes | 24,225 | 19,982 | 60,369 | 47,830 |
Net revenue | 378,466 | 306,870 | 948,524 | 770,427 |
Cost of goods sold | 190,631 | 149,643 | 477,147 | 375,133 |
Gross profit | 187,835 | 157,227 | 471,377 | 395,294 |
Advertising, promotional and selling expenses | 96,570 | 87,765 | 262,372 | 241,796 |
General and administrative expenses | 31,429 | 22,734 | 81,552 | 65,951 |
Impairment of assets | 243 | 517 | ||
Total operating expenses | 127,999 | 110,499 | 344,167 | 308,264 |
Operating income | 59,836 | 46,728 | 127,210 | 87,030 |
Interest (expense) income, net | (138) | 343 | 472 | 821 |
Other income (expense), net | (764) | (51) | (818) | (539) |
Total other income (expense), net | (902) | 292 | (346) | 282 |
Income before income tax provision | 58,934 | 47,020 | 126,864 | 87,312 |
Income tax provision | 14,205 | 9,013 | 30,585 | 16,460 |
Net income | $ 44,729 | $ 38,007 | $ 96,279 | $ 70,852 |
Net income per common share - basic | $ 3.70 | $ 3.25 | $ 8.16 | $ 6.02 |
Net income per common share - diluted | $ 3.65 | $ 3.21 | $ 8.07 | $ 5.96 |
Weighted-average number of common shares — basic | 12,099 | 11,705 | 11,802 | 11,769 |
Weighted-average number of common shares - diluted | 12,150 | 11,702 | 11,823 | 11,773 |
Net income | $ 44,729 | $ 38,007 | $ 96,279 | $ 70,852 |
Other comprehensive income: | ||||
Foreign currency translation adjustment | 1 | (13) | 43 | 4 |
Comprehensive income | $ 44,730 | $ 37,994 | $ 96,322 | $ 70,856 |
Common Class A | ||||
Net income per common share - basic | $ 3.70 | $ 3.25 | $ 8.16 | $ 6.02 |
Weighted-average number of common shares — basic | 9,136 | 8,557 | 8,797 | 8,646 |
Common Class B | ||||
Net income per common share - basic | $ 3.70 | $ 3.25 | $ 8.16 | $ 6.02 |
Weighted-average number of common shares — basic | 2,862 | 3,018 | 2,899 | 3,018 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common StockCommon Class A | Common StockCommon Class B | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Income, net of tax | Retained Earnings |
Balance at Dec. 30, 2017 | $ 423,523 | $ 86 | $ 30 | $ 372,590 | $ (1,288) | $ 52,105 |
Balance (in shares) at Dec. 30, 2017 | 8,603,000 | 3,018,000 | ||||
Net income | 9,310 | 9,310 | ||||
Stock options exercised and restricted shares activities (in shares) | 188,000 | |||||
Stock options exercised and restricted shares activities | 20,234 | $ 2 | 20,232 | |||
Stock-based compensation expense | 1,491 | 1,491 | ||||
Repurchase of Class A Common Stock (in shares) | (91,000) | |||||
Repurchase of Class A Common Stock | (16,639) | $ (1) | (16,638) | |||
Currency translation adjustment | (11) | (11) | ||||
One time effect of adoption of ASU 2014-09,Revenue from Contracts with Customers, net of tax of $329 | (982) | (982) | ||||
One time effect of adoption of ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income | (210) | 210 | ||||
Balance at Mar. 31, 2018 | 436,926 | $ 87 | $ 30 | 394,313 | (1,509) | 44,005 |
Balance (in shares) at Mar. 31, 2018 | 8,700,000 | 3,018,000 | ||||
Balance at Dec. 30, 2017 | 423,523 | $ 86 | $ 30 | 372,590 | (1,288) | 52,105 |
Balance (in shares) at Dec. 30, 2017 | 8,603,000 | 3,018,000 | ||||
Net income | 70,852 | |||||
Balance at Sep. 29, 2018 | 434,546 | $ 85 | $ 30 | 402,056 | (1,503) | 33,878 |
Balance (in shares) at Sep. 29, 2018 | 8,475,000 | 3,018,000 | ||||
Balance at Mar. 31, 2018 | 436,926 | $ 87 | $ 30 | 394,313 | (1,509) | 44,005 |
Balance (in shares) at Mar. 31, 2018 | 8,700,000 | 3,018,000 | ||||
Net income | 23,535 | 23,535 | ||||
Stock options exercised and restricted shares activities (in shares) | 32,000 | |||||
Stock options exercised and restricted shares activities | 2,224 | 2,224 | ||||
Stock-based compensation expense | 3,079 | 3,079 | ||||
Repurchase of Class A Common Stock (in shares) | (97,000) | |||||
Repurchase of Class A Common Stock | (23,085) | $ (1) | (23,084) | |||
Currency translation adjustment | (7) | (7) | ||||
Balance at Jun. 30, 2018 | 442,672 | $ 86 | $ 30 | 399,616 | (1,516) | 44,456 |
Balance (in shares) at Jun. 30, 2018 | 8,635,000 | 3,018,000 | ||||
Net income | 38,007 | 38,007 | ||||
Stock options exercised and restricted shares activities (in shares) | 2,000 | |||||
Stock options exercised and restricted shares activities | 15 | 15 | ||||
Stock-based compensation expense | 2,425 | 2,425 | ||||
Repurchase of Class A Common Stock (in shares) | (162,000) | |||||
Repurchase of Class A Common Stock | (48,586) | $ (1) | (48,585) | |||
Currency translation adjustment | (13) | 13 | ||||
Balance at Sep. 29, 2018 | 434,546 | $ 85 | $ 30 | 402,056 | (1,503) | 33,878 |
Balance (in shares) at Sep. 29, 2018 | 8,475,000 | 3,018,000 | ||||
Balance at Dec. 29, 2018 | 460,317 | $ 86 | $ 29 | 405,711 | (1,197) | 55,688 |
Balance (in shares) at Dec. 29, 2018 | 8,580,000 | 2,918,000 | ||||
Net income | 23,694 | 23,694 | ||||
Stock options exercised and restricted shares activities (in shares) | 54,000 | |||||
Stock options exercised and restricted shares activities | 3,704 | 3,704 | ||||
Stock-based compensation expense | 2,066 | 2,066 | ||||
Currency translation adjustment | 37 | 37 | ||||
Balance at Mar. 30, 2019 | 489,818 | $ 86 | $ 29 | 411,481 | (1,160) | 79,382 |
Balance (in shares) at Mar. 30, 2019 | 8,634,000 | 2,918,000 | ||||
Balance at Dec. 29, 2018 | 460,317 | $ 86 | $ 29 | 405,711 | (1,197) | 55,688 |
Balance (in shares) at Dec. 29, 2018 | 8,580,000 | 2,918,000 | ||||
Net income | $ 96,279 | |||||
Stock options exercised and restricted shares activities (in shares) | 72,937 | |||||
Currency translation adjustment | $ 43 | |||||
Balance at Sep. 28, 2019 | 718,980 | $ 92 | $ 28 | 568,047 | (1,154) | 151,967 |
Balance (in shares) at Sep. 28, 2019 | 9,216,000 | 2,818,000 | ||||
Balance at Mar. 30, 2019 | 489,818 | $ 86 | $ 29 | 411,481 | (1,160) | 79,382 |
Balance (in shares) at Mar. 30, 2019 | 8,634,000 | 2,918,000 | ||||
Net income | 27,856 | 27,856 | ||||
Stock options exercised and restricted shares activities (in shares) | 21,000 | |||||
Stock options exercised and restricted shares activities | 1,378 | $ 1 | 1,377 | |||
Stock-based compensation expense | 3,744 | 3,744 | ||||
Currency translation adjustment | 5 | 5 | ||||
Balance at Jun. 29, 2019 | 522,801 | $ 87 | $ 29 | 416,602 | (1,155) | 107,238 |
Balance (in shares) at Jun. 29, 2019 | 8,655,000 | 2,918,000 | ||||
Net income | 44,729 | 44,729 | ||||
Stock options exercised and restricted shares activities (in shares) | 31,000 | |||||
Stock options exercised and restricted shares activities | 3,473 | 3,473 | ||||
Stock-based compensation expense | 3,233 | 3,233 | ||||
Shares issued in connection with Dogfish Head merger (in shares) | 430,000 | |||||
Shares issued in connection with Dogfish Head merger | 144,743 | $ 4 | 144,739 | |||
Conversion from Class B to Class A (in shares) | 100,000 | (100,000) | ||||
Conversion from Class B to Class A | $ 1 | $ (1) | ||||
Currency translation adjustment | 1 | 1 | ||||
One time effect of adoption of ASU 2014-09,Revenue from Contracts with Customers, net of tax of $329 | 1,000 | |||||
Balance at Sep. 28, 2019 | $ 718,980 | $ 92 | $ 28 | $ 568,047 | $ (1,154) | $ 151,967 |
Balance (in shares) at Sep. 28, 2019 | 9,216,000 | 2,818,000 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
One time effect of adoption of ASU 2014-09, Revenue from Contracts with Customers, tax | $ 329 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Cash flows provided by operating activities: | ||
Net income | $ 96,279 | $ 70,852 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 41,841 | 38,860 |
Impairment of assets | 243 | 517 |
Loss on disposal of property, plant and equipment | 449 | 45 |
Change in ROU assets | 2,734 | |
Bad debt (recovery) expense | 53 | 39 |
Stock-based compensation expense | 9,043 | 6,995 |
Deferred income taxes | 14,047 | 12,818 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (26,532) | (20,412) |
Inventories | (16,847) | (20,836) |
Prepaid expenses, income tax receivable and other assets | (13,903) | (8,385) |
Accounts payable | 22,388 | 20,560 |
Accrued expenses and other current liabilities | 14,949 | 6,309 |
Change in operating lease liability | (2,270) | |
Other liabilities | 207 | 693 |
Net cash provided by operating activities | 142,681 | 108,055 |
Cash flows used in investing activities: | ||
Purchases of property, plant and equipment | (66,760) | (38,752) |
Proceeds from disposal of property, plant and equipment | 144 | 2 |
Cash paid for acquisition of intangible assets | 5 | |
Investment in Dogfish Head, net of cash acquired | (165,517) | |
Other investing activities | (10) | 131 |
Net cash used in investing activities | (232,143) | (38,614) |
Cash flows provided by (used in) financing activities: | ||
Repurchase of Class A Common Stock | (88,311) | |
Proceeds from exercise of stock options | 7,619 | 21,528 |
Net cash paid on note payable and capital lease | (246) | (78) |
Cash borrowed on line of credit | 97,000 | |
Cash paid on line of credit | (97,000) | |
Net proceeds from sale of investment shares | 818 | 670 |
Net cash provided (used in) by financing activities | 8,191 | (66,191) |
Change in cash and cash equivalents | (81,271) | 3,250 |
Cash and cash equivalents at beginning of year | 108,399 | 65,637 |
Cash and cash equivalents at end of period | 27,128 | 68,887 |
Supplemental disclosure of cash flow information: | ||
Non cash consideration issued in Dogfish Head Transaction (Refer to Note B) | 144,743 | |
Income taxes paid | 16,759 | 11,252 |
Cash paid for amounts included in measurement of lease liabilities | 3,443 | |
Right-of-use assets obtained in exchange for operating lease obligations | 41,678 | |
Right-of-use assets obtained in exchange for capital lease obligations | 2,837 | |
Interest paid on revolving credit facility | 349 | |
Decrease in accounts receivable for ASU 2014-09 adoption | (1,310) | |
Decrease in accounts payable for purchase of property, plant and equipment | $ (2,076) | $ 3,346 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 28, 2019 | |
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 producing and selling alcohol beverages throughout the United States and in selected international markets, under the trade names, “The Boston Beer Company ® Dogfish Head ® Craft Brewery”, “Twisted Tea Brewing Company ® ® ® ® ® ™ The accompanying unaudited consolidated balance sheet as of September 28, 2019, and the consolidated statements of comprehensive income, stockholders’ equity, and cash flows for the interim periods ended September 28, 2019 and September 29, 2018 have been prepared by the Company in accordance with U.S. generally accepted accounting principles (“GAAP”) 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 28, 2019 and the results of its consolidated operations, stockholders’ equity, and cash flows for the interim periods ended September 28, 2019 and September 29, 2018, 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. |
Dogfish Head Brewery Merger
Dogfish Head Brewery Merger | 9 Months Ended |
Sep. 28, 2019 | |
Dogfish Head Brewery Merger | B. Dogfish Head Brewery Transaction On May 8, 2019, the Company (“Dogfish Head”) ” Off-Centered the Co mpany , after taking into account a post-closing cash related adjustment. As required under the definitive agreements, 127,146 of the 429,291 shares of restricted Class A Stock have been placed in escrow and will be released no later than July 3, 2029. These shares had a market value on July 3, 2019 of $48.3 million. The timing of the release of these escrowed shares is primarily related to the continued employment with the Company of Samuel A. Calagione III, one of the two Dogfish Head founders The fair value of the Transaction is estimated at approximately $317.7 million. The Company estimates that transaction-related and other non-recurring and consists of $3.3 million in transaction costs and $4.6 million in other non-recurring costs. on-hand L The following table summarizes the acquisition date fair value of the tangible assets, intangible assets, liabilities assumed, and related goodwill acquired from Dogfish Head, as well as the allocation of purchase price paid: Total (In Thousands) Cash and cash equivalents $ 7,476 Accounts receivable 8,081 Inventories 9,286 Prepaid expenses and other current assets 847 Property, plant and equipment 106,964 Goodwill 108,846 Brand 98,500 Other intangible assets 3,800 Other assets 378 Total assets acquired 344,178 Accounts payable 3,861 Accrued expenses and other current liabilities 4,085 Deferred income taxes 18,437 Other liabilities 59 Total liabilities assumed 26,442 Net assets acquired $ 317,736 Cash consideration $ 172,993 Nominal value of equity issued 162,999 Fair Value reduction due to liquidity (18,256 ) Estimated total purchase price $ 317,736 The Company accounted for the acquisition in accordance with the accounting standards codification guidance for business combinations, whereby the total purchase price was allocated to the acquired net tangible and intangible assets of Dogfish Head based on their fair values as of the Transaction closing date. The Company believes that the information available as of the Transaction closing date provides a reasonable basis for estimating the fair values of the assets acquired and liabilities assumed; however, the Company is continuing to finalize these amounts, particularly with respect to income taxes and valuation of inventories, fixed assets, and intangible assets. Thus, the preliminary measurements of fair value reflected are subject to change as additional information becomes available and as additional analysis is performed. The Company expects to finalize the valuation and complete the allocation of the purchase price as soon as practicable, but no later than one year from the closing date of the acquisition, as required. The fair value of the Dogfish Head brand trade name is estimated at approximately $98.5 million and the fair value of customer relationships is estimated at $3.8 million. The Company will have 15 year estimated useful life. The fair value of the deferred income tax liability assumed is $18.4 million, representing the expected future tax consequences of temporary differences between the fair values of the assets acquired and liabilities assumed and their tax bas i . The excess of the purchase price paid over the estimated fair values of the assets and liabilities assumed has been recorded as goodwill in the amount of $108.8 million. Goodwill associated with the acquisition is primarily attributable to the future growth opportunities associated with the Transaction , The fair value of the brand trade name was determined utilizing the relief from royalty method which is a form of the income approach. Under this method, a royalty rate based on observed market royalties is applied to projected revenue supporting the trade name and discounted to present value using an appropriate discount rate. The fair value of the property, plant and equipment was determined utilizing the cost and market valuation approaches. The results of operations from Dogfish Head have been included in the Company’s consolidated statement s September , , Dogfish Head represented $ million of the Company’s total revenue and $ million of total net income. Transaction costs incurred by the Company in connection with the Transaction were $ million and for thirteen and thirty -nin e ended September , , respectively , and were recorded within general and administrative expenses in the Company’s consolidated statements of operations. Consistent with prior periods and considering post-merger reporting structures, the Company will continue to report as one operating segment. The combined Company’s 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 and through the same channels of distribution. The following unaudited pro forma information has been prepared as if the Transaction and the related debt financing had occurred as of December , , the first day of the Company’s fiscal year. The pro forma amounts reflect the combined historical operational results for Boston Beer and Dogfish Head, after giving effect to adjustments related to the impact of purchase accounting, transaction costs and financing. The unaudited pro forma financial information is not indicative of the operational results that would have been obtained had the Transaction occurred as of that date, nor is it necessarily indicative of the Company’s future operational results. The following adjustments have been made: (i) Depreciation and amortization expenses were updated to reflect the fair value adjustments to Dogfish Head property, plant and equipment and intangible assets beginning December 31, 2017. (ii) Transaction costs incurred in the thirteen and thirty-nine weeks ended September 28, 2019 have been re-assigned (iii) Interest expense has been included at a rate of approximately 3% which is consistent with the borrowing rate on the Company’s current line of credit. (iv) The tax effects of the pro forma adjustments at an estimated statutory rate of 25.6%. (v) Earnings per share amounts are calculated using the Company’s historical weighted average shares outstanding plus the 429,291 shares issued in the merger. Thirteen weeks ended Thirty-nine weeks ended September 28, September 29, September 28, September 29, Net revenue $ 379,205 $ 335,954 $ 1,002,939 $ 852,611 Net income $ 46,445 $ 42,638 $ 103,105 $ 77,541 Basic earnings per share $ 3.84 $ 3.51 $ 8.74 $ 6.36 Diluted earnings per share $ 3.79 $ 3.48 $ 8.64 $ 6.30 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 28, 2019 | |
Goodwill and Intangible Assets | C. Goodwill and Intangible Assets The change in the carrying value of goodwill and intangible assets during the thirty-nine weeks ended September 28, 2019 and September 29, 2019 were as follows: Thirty-nine weeks ended September 28, September 29, 2019 2018 Goodwill as of beginning of period $ 3,683 $ 3,683 Acquired goodwill 108,846 — Impairment of goodwill — — Goodwill as of end of period $ 112,529 $ 3,683 The $108.8 million of goodwill acquired during the thirty-nine weeks ended September 28, 2019 is related to the Dogfish Head transaction disclosed in Note B. No impairment of existing goodwill was recorded in the period. The Company’s intangible assets as of September 28, 2019 and December 29, 2018 were as follows: As of September 28, 2019 As of December 29, 2018 Estimated Useful Gross Carrying Accumulated Net Book Gross Carrying Accumulated Net Book Life (Years) Value Amortization Value Value Amortization Value Custmer Relationships 15 $ 3,800 $ (64 ) $ 3,736 $ — $ — $ — Trade Names Indefinite 100,599 — 100,599 2,099 — 2,099 Total intangible assets $ 104,399 $ (64 ) $ 104,335 $ 2,099 $ — $ 2,099 During the thirty-nine weeks ended September 28, 2019 the Company acquired intangible assets as part of the Dogfish Head Transaction disclosed in Note Fiscal Year Amount Remainder of 2019 $ 63 2020 253 2021 253 2022 253 2023 253 2024 253 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 28, 2019 | |
Recent Accounting Pronouncements | D. Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) 2014-09 In February 2016, the FASB issued ASU No. 2016-02, right-of-use 2016-02, 2018-11, Accounting Pronouncements Not Yet Effective In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) inform credit loss estimates. ASU 2016-13 In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment 2017-04, two-step 2017-04 2017-04 2017-04 |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 28, 2019 | |
Revenue Recognition | E. Revenue Recognition During the thirty-nine weeks ended September 28, 2019 approximately 95% of the Company’s revenue was from shipments of its products to domestic d d 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 September 28, 2019 and December 29, 2018, the Company has deferred $6.9 million and $4.6 million, respectively in revenue related to product shipped prior to these dates. These amounts are included in accrued expenses and other current liabilities in the accompanying consolidated balance sheets. Customer promotional discount programs are entered into by the Company with d istributors for certain periods of time. The reimbursements for discounts to d istributors are recorded a n d i 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 allowance. 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 , d point-of-sale The Company benefited from a reduction in federal excise taxes of $2.8 million and $2.0 million for the thirteen weeks ended September 28, 2019 and September 29, 2018, respectively, as a result of the Tax Cuts and Jobs Act of 2017. The Company benefited from a reduction in federal excise taxes of $6.6 million and $4.8 million for the thirty-nine weeks ended September 28, 2019 and September 29, 2018, respectively, as a result of the Tax Cuts and Jobs Act of 2017. |
Inventories
Inventories | 9 Months Ended |
Sep. 28, 2019 | |
Inventories | F. 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 28, December 29, (in thousands) Current inventory: Raw materials $ 51,322 $ 44,655 Work in process 13,270 8,252 Finished goods 28,040 17,342 Total current inventory 92,632 70,249 Long term inventory 15,369 11,619 Total inventory $ 108,001 $ 81,868 |
Leases
Leases | 9 Months Ended |
Sep. 28, 2019 | |
Leases | G. 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 2031. As the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate based on information available at commencement to determine the present value of the lease payments. Based on the present value of the lease payments for the remaining lease term of the Company’s existing leases, the Company recognized ROU assets of $27.0 million and lease liabilities of $31.5 million upon adoption of ASU No. 2016-02 hs or less (“short-term leases”) are not recorded on the balance sheet and are recognized on a straight-line basis over the lease term. As of September 28, 2019, total ROU assets and lease liabilities were as follows: Classification Leases Right-of-use (in thousands) Operating lease assets Operating right-of-use $ 38,943 Capital lease assets Property, plant and equipment, net 2,663 Lease Liabilities Current Operating lease liabilities Current operating lease liabilities 2,599 Capital lease liabilities Accrued expenses and other current l 541 Non-current Operating lease liabilities Non-current 41,215 Capital lease liabilities Other liabilities 2,178 Aggregate lease expense for the thirteen weeks ended September 28, 2019 was $1.9 million, consisting of $1.6 million in lease expense for lease liabilities recorded on the Company’s balance sheet and $0.3 million in short-term lease expense. Aggregate lease expense for the thirty-nine weeks ended September 28, 2019 was $4.9 million, consisting of $3.9 million in lease expense for lease liabilities recorded on the Company’s balance sheet and $1.0 million in short-term lease expense. Maturities of lease liabilities as of September 28, 2019 are as follows: Operating Capital Weighted-Average Leases Leases Operating Leases Capital Leases (in thousands) 2019 $ 1,466 $ 155 2020 2,642 626 2021 5,754 626 2022 5,453 626 2023 5,313 626 After 2023 32,191 288 Total lease payments 52,819 2,947 Less imputed interest (based on 3.5% weighted-average discount rate) (9,005 ) (228 ) Present value of lease liability $ 43,814 $ 2,719 4.7 9.9 Future minimum lease payments expected under non-cancellable Leases (in thousands) 2019 $ 4,446 2020 4,530 2021 4,370 2022 3,559 2023 1,672 Thereafter 7,582 Total $ 26,159 |
Net Income per Share
Net Income per Share | 9 Months Ended |
Sep. 28, 2019 | |
Net Income per Share | H. 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 N Included in the computation of net income per diluted common share are dilutive outstanding stock options and restricted stock that are vested or expected to vest. At its discretion, the Board of Directors grants stock options and restricted stock to senior management and certain key employees. The terms of the employee of certain performance criteria and generally expire after ten years. In December 2018, the Employee Equity Incentive Plan was amended to permit the grant of restricted stock units. The restricted stock units generally vest over four years in equal number of shares. Each restricted stock unit represents an unfunded and unsecured right to receive one share of Class A Stock upon satisfaction of the vesting criteria. The unvested shares participate equally in dividends and are forfeitable. Prior to March 1, 2019, the Company granted restricted stock awards, generally vesting over five years non-employee re-election non-employee Net Income per Common Share — 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 28, September 29, September 28, September 29, (in thousands, except per share data) (in thousands, except per share data) Net income $ 44,729 $ 38,007 $ 96,279 $ 70,852 Allocation of net income for basic: Class A Common Stock $ 33,776 $ 27,786 $ 71,761 $ 52,051 Class B Common Stock 10,581 9,800 23,652 18,169 Unvested participating shares 372 421 866 632 $ 44,729 $ 38,007 $ 96,279 $ 70,852 Weighted average number of shares for basic: Class A Common Stock 9,136 8,557 8,797 8,646 Class B Common Stock* 2,862 3,018 2,899 3,018 Unvested participating shares 101 130 106 105 12,099 11,705 11,802 11,769 Net income per share for basic: Class A Common Stock $ 3.70 $ 3.25 $ 8.16 $ 6.02 Class B Common Stock $ 3.70 $ 3.25 $ 8.16 $ 6.02 * Change in Class B Common Stock resulted from the conversion of 100,000 100,000 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 28, 2019 September 29, 2018 Earnings to Common Shares EPS Earnings to Common Shares EPS (in thousands, except per share data) As reported — basic $ 33,776 9,136 $ 3.70 $ 27,786 8,557 $ 3.25 Add: effect of dilutive potential common shares Share-based awards — 152 — 127 Class B Common Stock 10,581 2,862 9,800 3,018 Net effect of unvested participating shares 4 — 5 — Net income per common share — diluted $ 44,361 12,150 $ 3.65 $ 37,591 11,702 $ 3.21 Thirty-nine weeks ended September 28, 2019 September 29, 2018 Earnings to Common Shares EPS Earnings to Common Shares EPS (in thousands, except per share data) As reported — basic $ 71,761 8,797 $ 8.16 $ 52,051 8,646 $ 6.02 Add: effect of dilutive potential common shares Share-based awards — 127 — 109 Class B Common Stock 23,652 2,899 18,169 3,018 Net effect of unvested participating shares 8 — 5 — Net income per common share — diluted $ 95,421 11,823 $ 8.07 $ 70,225 11,773 $ 5.96 During the thirteen and thirty-nine weeks ended September 28, 2019, weighted-average stock options to purchase approximately 27,000 and 21,000 shares of Class A Common Stock were outstanding but not included in computing dilutive income per common share because their effects were anti-dilutive. During the thirteen and thirty-nine weeks ended September 29, 2018, weighted-average stock options to purchase approximately zero and 653,000 shares of Class A Common Stock were outstanding but not included in computing dilutive income per common share because their effects were anti-dilutive. Additionally, performance-based stock options to purchase approximately 10,000 and 61,000 shares of Class A Common Stock were outstanding as of September 28, 2019 and September 29, 2018, respectively, but not included in computing diluted income per common share because the performance criteria of these stock options w ere The performance-based stock options to purchase approximately 10,000 shares of Class A Common Stock that were excluded from computing diluted net income per common share as of September 28, 2019, were granted in 2016 to a key employee. The vesting of these shares requires annual depletions, or sales by d |
Comprehensive Income or Loss
Comprehensive Income or Loss | 9 Months Ended |
Sep. 28, 2019 | |
Comprehensive Income | I. 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 28, 2019 and September 29, 2018 were not material. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 28, 2019 | |
Commitments and Contingencies | J. Commitments and Contingencies Contract Obligations The Company had outstanding total non-cancelable equipment and machinery of $53.0 million Currently, the Company has entered into contracts for barley and wheat with three major suppliers. The contracts include crop year 2018 and 2019 and cover the Company’s barley, wheat, and malt requirements for 2019 and part of 2020. These purchase commitments outstanding at September 28, 2019 totaled $12.2 million. The Company has entered into contracts for the supply of a portion of its hops requirements. These purchase contracts extend through crop year 2025 and specify both the quantities and prices, denominated in U.S. Dollars, Euros, New Zealand Dollars, and British Pounds, to which the Company is committed. Hops purchase commitments outstanding at September 28, 2019 totaled $37.4 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 brews and packages more than 70% 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 supplies raw materials to those brewing companies, and incurs conversion fees for labor at the time the liquid is produced and packaged. 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. 28, 2019 | |
Income Taxes | K. Income Taxes As of September 28, 2019 and December 29, 2018, the Company had approximately $0.8 million and $0.8 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 28, 2019 and December 29, 2018, the Company had $0.2 million and $0.1 million, respectively, accrued for interest and penalties recorded in other liabilities. The Internal Revenue Service completed an examination of the 2015 consolidated corporate income tax return and issued a no change report in 2018. The Company’s state income tax returns remain subject to examination for three The following table provides a summary of the income tax provision for the thirteen and thirty-nine weeks ended September 28, 2019 and September 29, 2018: Thirteen weeks ended September 28, September 29, 2019 2018 (in thousands) Summary of income tax provision Tax provision based on net income $ 16,047 $ 13,671 Accounting Method Changes — (4,529 ) Benefit of ASU 2016-09 (1,842 ) (129 ) Total income tax provision $ 14,205 $ 9,013 Thirty-nine weeks ended September 28, September 29, 2019 2018 (in thousands) Summary of income tax provision Tax provision based on net income $ 34,455 $ 24,969 Accounting Method Changes — (4,529 ) Benefit of ASU 2016-09 (3,870 ) (3,980 ) Total income tax provision $ 30,585 $ 16,460 2016-09, one-time one-time 2016-09, one-time one-time |
Revolving Line of Credit
Revolving Line of Credit | 9 Months Ended |
Sep. 28, 2019 | |
Revolving Line of Credit | L. Revolving Line of Credit In March 2018, the Company amended its credit facility in place that provides for a $150.0 million revolving line of credit to extend the scheduled expiration date to March 31, 2023. On May 6, 2019, the Company borrowed Transaction wa Company was not in violation of any of its financial covenants to the lender under the credit facility and had repaid the Transaction borrowing in full, so that there were no borrowings outstanding and the line of credit was fully available to the Company for borrowing. |
Fair Value Measures
Fair Value Measures | 9 Months Ended |
Sep. 28, 2019 | |
Fair Value Measures | M. 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. The Company’s 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 September 28, 2019 and December 29, 2018, the Company had money market funds with 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 September 28, 2019 and December 29, 2018, the Company’s cash and cash equivalents balance was $27.1 million and $108.4 million, respectively, including money market funds amounting to $21.4 million and $107.5 million, respectively . |
Common Stock and Stock-Based Co
Common Stock and Stock-Based Compensation | 9 Months Ended |
Sep. 28, 2019 | |
Common Stock and Stock-Based Compensation | N. Common Stock and Stock-Based Compensation Option Activity Information related to stock options under the Restated Employee Equity Incentive Plan and the Stock Option Plan for Non-Employee Shares Weighted-Average Weighted-Average Aggregate Intrinsic (in thousands) Outstanding at December 29, 2018 366,829 $ 155.75 Granted 31,286 313.56 Forfeited — — Expired — — Exercised (72,937 ) 104.47 Outstanding at September 28, 325,178 $ 182.44 5.83 $ 55,196 Exercisable at September 28, 2019 102,613 $ 139.16 3.96 $ 21,859 Vested and expected to vest at September 28, 2019 300,886 $ 180.81 5.76 $ 51,563 Of the total options outstanding at September 28, 2019, 65,306 shares were performance-based options for which the performance criteria had yet to be achieved. On March 1, 2019, the Company granted options to purchase an aggregate of 14,680 shares of the Company’s Class A Common Stock to senior management with a weighted average fair value of $136.00 per share, of which all shares relate to performance-based stock options. On March 14, 2019, the Company granted options to purchase an aggregate of 844 shares of the Company’s Class A Common Stock to the Company’s newly appointed non-employee On April 29, 2019, the Company granted options to purchase an aggregate of 11,827 shares of the Company’s Class A Common Stock to the Company’s newly appointed Chief Marketing Officer with a weighted average fair value of $126.83 per share with service based vesting through 2024. On May 16, 2019, the Company granted options to purchase an aggregate of 3,935 shares of the Company’s Class A Common Stock to the Company’s nonemployee Directors. These options have a weighted average fair value of $145.95 per share. All of the options vested immediately on the date of the grant. Non-Vested 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 126,720 $ 192.74 Granted 30,410 $ 269.91 Vested (33,201 ) $ 188.63 Forfeited (1,550 ) $ 142.00 Non-vested 122,379 $ 213.67 On January 1, 2019, the Company granted a key employee 207 shares of restricted stock units with a weighted average fair value of $240.84 and vests ratable over the service period of four years. On March 1, 2019, the Company granted 16,471 shares of restricted stock units to certain officers, senior managers and key employees, of which all shares vest ratably over service periods of four years. On March 1, 2019, employees elected to purchase 7,901 shares under the Company’s investment share program. The weighted average fair value of the restricted stock units and investment shares, which are sold to employees at discount under its investment share program, was $312.56 and $147.98 per share, respectively. On April 29, 2019, the Company granted its newly appointed Chief Marketing Officer 4,925 shares of restricted stock units with a weighted-average fair value of $304.56 per share with service based vesting through 2023. On July 3, 2019, the Company granted four key employees 906 shares of restricted stock units with a weighted average fair value of $379.63 and service based vesting in one year . Stock-Based Compensation Stock-based compensation expense related to share-based awards recognized in the thirteen and thirty-nine weeks ended September 28, 2019 was $3.2 million and $9.0 million, respectively, and was calculated based on awards expected to vest. Stock-based compensation expense related to share-based awards recognized in the thirteen weeks and thirty-nine weeks ended September 29, 2018 was $2.4 million and $7.0 million, respectively, and was calculated based on awards expected to vest. |
Employee Retirement Plans
Employee Retirement Plans | 9 Months Ended |
Sep. 28, 2019 | |
Employee Retirement Plans | O. Employee Retirement Plans The Company has one company-sponsored defined benefit pension plan that covers certain of its union employees. It was established in 1991 and is open to all union employees who are covered by the Company’s collective bargaining agreement with Teamsters Local Union No. 1199 (“Local Union 1199”). As of December 29, 2018, the fair value of the plan assets w as |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 28, 2019 | |
Related Party Transactions | P. Related Party Transactions In connection with the Dogfish Head Transaction, the Company has entered 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 for the 13-weeks ended September 28, 2019 was approximately $91,000. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 28, 2019 | |
Subsequent Events | Q. Subsequent Events The Company evaluated subsequent events occurring after the balance sheet date, September 28, 2019, and concluded that there were no 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. |
Dogfish Head Brewery Merger (Ta
Dogfish Head Brewery Merger (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Fair value of assets acquired and liabilities assumed | The following table summarizes the acquisition date fair value of the tangible assets, intangible assets, liabilities assumed, and related goodwill acquired from Dogfish Head, as well as the allocation of purchase price paid: Total (In Thousands) Cash and cash equivalents $ 7,476 Accounts receivable 8,081 Inventories 9,286 Prepaid expenses and other current assets 847 Property, plant and equipment 106,964 Goodwill 108,846 Brand 98,500 Other intangible assets 3,800 Other assets 378 Total assets acquired 344,178 Accounts payable 3,861 Accrued expenses and other current liabilities 4,085 Deferred income taxes 18,437 Other liabilities 59 Total liabilities assumed 26,442 Net assets acquired $ 317,736 Cash consideration $ 172,993 Nominal value of equity issued 162,999 Fair Value reduction due to liquidity (18,256 ) Estimated total purchase price $ 317,736 |
Unaudited proforma information | Thirteen weeks ended Thirty-nine weeks ended September 28, September 29, September 28, September 29, Net revenue $ 379,205 $ 335,954 $ 1,002,939 $ 852,611 Net income $ 46,445 $ 42,638 $ 103,105 $ 77,541 Basic earnings per share $ 3.84 $ 3.51 $ 8.74 $ 6.36 Diluted earnings per share $ 3.79 $ 3.48 $ 8.64 $ 6.30 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets - (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Change in carrying value of goodwill and intangible assets | The change in the carrying value of goodwill and intangible assets during the thirty-nine weeks ended September 28, 2019 and September 29, 2019 were as follows: Thirty-nine weeks ended September 28, September 29, 2019 2018 Goodwill as of beginning of period $ 3,683 $ 3,683 Acquired goodwill 108,846 — Impairment of goodwill — — Goodwill as of end of period $ 112,529 $ 3,683 |
Schedule of intangible assets | The Company’s intangible assets as of September 28, 2019 and December 29, 2018 were as follows: As of September 28, 2019 As of December 29, 2018 Estimated Useful Gross Carrying Accumulated Net Book Gross Carrying Accumulated Net Book Life (Years) Value Amortization Value Value Amortization Value Custmer Relationships 15 $ 3,800 $ (64 ) $ 3,736 $ — $ — $ — Trade Names Indefinite 100,599 — 100,599 2,099 — 2,099 Total intangible assets $ 104,399 $ (64 ) $ 104,335 $ 2,099 $ — $ 2,099 |
Schedule of amortization expense | The Company expects to record amortization expense as follows over the remaining current year and the five subsequent years: Fiscal Year Amount Remainder of 2019 $ 63 2020 253 2021 253 2022 253 2023 253 2024 253 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Components of Inventories | Inventories consist of the following: September 28, December 29, (in thousands) Current inventory: Raw materials $ 51,322 $ 44,655 Work in process 13,270 8,252 Finished goods 28,040 17,342 Total current inventory 92,632 70,249 Long term inventory 15,369 11,619 Total inventory $ 108,001 $ 81,868 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Leases [Abstract] | |
ROU assets and lease liabilities | As of September 28, 2019, total ROU assets and lease liabilities were as follows: Classification Leases Right-of-use (in thousands) Operating lease assets Operating right-of-use $ 38,943 Capital lease assets Property, plant and equipment, net 2,663 Lease Liabilities Current Operating lease liabilities Current operating lease liabilities 2,599 Capital lease liabilities Accrued expenses and other current l 541 Non-current Operating lease liabilities Non-current 41,215 Capital lease liabilities Other liabilities 2,178 |
Maturities of lease liabilities | Maturities of lease liabilities as of September 28, 2019 are as follows: Operating Capital Weighted-Average Leases Leases Operating Leases Capital Leases (in thousands) 2019 $ 1,466 $ 155 2020 2,642 626 2021 5,754 626 2022 5,453 626 2023 5,313 626 After 2023 32,191 288 Total lease payments 52,819 2,947 Less imputed interest (based on 3.5% weighted-average discount rate) (9,005 ) (228 ) Present value of lease liability $ 43,814 $ 2,719 4.7 9.9 |
Schedule of future minimum lease payments | Future minimum lease payments expected under non-cancellable Leases (in thousands) 2019 $ 4,446 2020 4,530 2021 4,370 2022 3,559 2023 1,672 Thereafter 7,582 Total $ 26,159 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
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 28, September 29, September 28, September 29, (in thousands, except per share data) (in thousands, except per share data) Net income $ 44,729 $ 38,007 $ 96,279 $ 70,852 Allocation of net income for basic: Class A Common Stock $ 33,776 $ 27,786 $ 71,761 $ 52,051 Class B Common Stock 10,581 9,800 23,652 18,169 Unvested participating shares 372 421 866 632 $ 44,729 $ 38,007 $ 96,279 $ 70,852 Weighted average number of shares for basic: Class A Common Stock 9,136 8,557 8,797 8,646 Class B Common Stock* 2,862 3,018 2,899 3,018 Unvested participating shares 101 130 106 105 12,099 11,705 11,802 11,769 Net income per share for basic: Class A Common Stock $ 3.70 $ 3.25 $ 8.16 $ 6.02 Class B Common Stock $ 3.70 $ 3.25 $ 8.16 $ 6.02 * Change in Class B Common Stock resulted from the conversion of 100,000 100,000 |
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 28, 2019 September 29, 2018 Earnings to Common Shares EPS Earnings to Common Shares EPS (in thousands, except per share data) As reported — basic $ 33,776 9,136 $ 3.70 $ 27,786 8,557 $ 3.25 Add: effect of dilutive potential common shares Share-based awards — 152 — 127 Class B Common Stock 10,581 2,862 9,800 3,018 Net effect of unvested participating shares 4 — 5 — Net income per common share — diluted $ 44,361 12,150 $ 3.65 $ 37,591 11,702 $ 3.21 Thirty-nine weeks ended September 28, 2019 September 29, 2018 Earnings to Common Shares EPS Earnings to Common Shares EPS (in thousands, except per share data) As reported — basic $ 71,761 8,797 $ 8.16 $ 52,051 8,646 $ 6.02 Add: effect of dilutive potential common shares Share-based awards — 127 — 109 Class B Common Stock 23,652 2,899 18,169 3,018 Net effect of unvested participating shares 8 — 5 — Net income per common share — diluted $ 95,421 11,823 $ 8.07 $ 70,225 11,773 $ 5.96 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Significant Components of Provisions for Income Taxes | The following table provides a summary of the income tax provision for the thirteen and thirty-nine weeks ended September 28, 2019 and September 29, 2018: Thirteen weeks ended September 28, September 29, 2019 2018 (in thousands) Summary of income tax provision Tax provision based on net income $ 16,047 $ 13,671 Accounting Method Changes — (4,529 ) Benefit of ASU 2016-09 (1,842 ) (129 ) Total income tax provision $ 14,205 $ 9,013 Thirty-nine weeks ended September 28, September 29, 2019 2018 (in thousands) Summary of income tax provision Tax provision based on net income $ 34,455 $ 24,969 Accounting Method Changes — (4,529 ) Benefit of ASU 2016-09 (3,870 ) (3,980 ) Total income tax provision $ 30,585 $ 16,460 |
Common Stock and Stock-Based _2
Common Stock and Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Summary of Stock Options under Equity Plan and Non-Employee Director Plan | Information related to stock options under the Restated Employee Equity Incentive Plan and the Stock Option Plan for Non-Employee Shares Weighted-Average Weighted-Average Aggregate Intrinsic (in thousands) Outstanding at December 29, 2018 366,829 $ 155.75 Granted 31,286 313.56 Forfeited — — Expired — — Exercised (72,937 ) 104.47 Outstanding at September 28, 325,178 $ 182.44 5.83 $ 55,196 Exercisable at September 28, 2019 102,613 $ 139.16 3.96 $ 21,859 Vested and expected to vest at September 28, 2019 300,886 $ 180.81 5.76 $ 51,563 |
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 126,720 $ 192.74 Granted 30,410 $ 269.91 Vested (33,201 ) $ 188.63 Forfeited (1,550 ) $ 142.00 Non-vested 122,379 $ 213.67 |
Dogfish Head Brewery Merger - A
Dogfish Head Brewery Merger - Additional Information (Detail) - USD ($) | Jul. 03, 2019 | Sep. 28, 2019 | Sep. 28, 2019 | May 08, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Dec. 29, 2017 |
Share based compensation shares granted | 30,410 | ||||||
Excess of the purchase price paid over the estimated fair values of the assets and liabilities assumed | $ 112,529,000 | $ 112,529,000 | $ 3,683,000 | $ 3,683,000 | $ 3,683,000 | ||
Dogfish Head Brewery [Member] | |||||||
Business acquisition cash transferred | $ 173,000,000 | ||||||
Escrow Deposit | $ 158,400,000 | ||||||
Dogfish Head Brewery [Member] | |||||||
Business combination consideration | 336,000,000 | 317,736,000 | |||||
Business acquisition cash transferred | 172,993,000 | ||||||
Business acquisition value of shares issued | 162,999,000 | 162,999,000 | |||||
Business combination transaction cost | 9,100,000 | 7,900,000 | 4,600,000 | ||||
Fairvalue of trade name | 98,500,000 | 98,500,000 | |||||
Excess of the purchase price paid over the estimated fair values of the assets and liabilities assumed | 108,846,000 | 108,846,000 | |||||
Revenue of acquiree | 27,700,000 | ||||||
Net income of acquiree | 3,400,000 | ||||||
Transaction costs | $ 9,100,000 | 7,900,000 | 4,600,000 | ||||
Transaction costs | 3,300,000 | 3,300,000 | |||||
Deferred tax liabilities assumed | $ 18,437,000 | $ 18,437,000 | |||||
Dogfish Head Brewery [Member] | Interest Rate Adjustment [Member] | |||||||
Interest expense rate | 3.00% | 3.00% | |||||
Dogfish Head Brewery [Member] | Weighted Average Shares Adjustment [Member] | |||||||
Business acquisition Shares issued | 429,291 | 429,291 | |||||
Dogfish Head Brewery [Member] | Income Tax Rate Adjustment [Member] | |||||||
Statutory income tax rate | 25.60% | ||||||
Dogfish Head Brewery [Member] | General and Administrative Expense [Member] | |||||||
Business combination transaction cost | $ 2,300,000 | $ 3,300,000 | |||||
Transaction costs | 2,300,000 | 3,300,000 | |||||
Dogfish Head Brewery [Member] | Customer Relationships [Member] | |||||||
Estimated fair value | 3,800,000 | $ 3,800,000 | |||||
Estimated use full life | 15 years | ||||||
Dogfish Head Brewery [Member] | Trade Names [Member] | |||||||
Fairvalue of trade name | $ 98,500,000 | $ 98,500,000 | |||||
Restricted Common Class A [Member] | Dogfish Head Brewery [Member] | |||||||
Share based compensation shares granted | 906 | ||||||
Share based compensation fair value of other than options outstanding | $ 345,000 | $ 345,000 | |||||
Restricted Common Class A [Member] | Dogfish Head Brewery [Member] | |||||||
Business acquisition value of shares issued | $ 163,000,000 | ||||||
Shares held under escrow deposit | 127,146 | ||||||
Shares held under escrow deposit market Value | $ 48,300,000 | ||||||
Business acquisition Shares issued | 429,291 |
Dogfish Head Brewery Merger - F
Dogfish Head Brewery Merger - Fair value of assets acquired and liabilities assumed (Detail) - USD ($) $ in Thousands | Jul. 03, 2019 | Sep. 28, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Dec. 29, 2017 |
Goodwill | $ 112,529 | $ 3,683 | $ 3,683 | $ 3,683 | |
Dogfish Head Brewery [Member] | |||||
Cash and cash equivalents | 7,476 | ||||
Accounts receivable | 8,081 | ||||
Inventories | 9,286 | ||||
Prepaid expenses and other current assets | 847 | ||||
Property, plant and equipment | 106,964 | ||||
Goodwill | 108,846 | ||||
Brand | 98,500 | ||||
Other intangible assets | 3,800 | ||||
Other assets | 378 | ||||
Total assets acquired | 344,178 | ||||
Accounts payable | 3,861 | ||||
Accrued expenses and other current liabilities | 4,085 | ||||
Deferred income taxes | 18,437 | ||||
Other liabilities | 59 | ||||
Total liabilities assumed | 26,442 | ||||
Net assets acquired | 317,736 | ||||
Cash consideration | 172,993 | ||||
Nominal value of equity issued | 162,999 | ||||
Fair Value reduction due to liquidity | (18,256) | ||||
Estimated total purchase price | $ 336,000 | $ 317,736 |
Dogfish Head Brewery Merger - U
Dogfish Head Brewery Merger - Unaudited proforma information (Detail) - Line of Credit [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Net revenue | $ 379,205 | $ 335,954 | $ 1,002,939 | $ 852,611 |
Net income | $ 46,445 | $ 42,638 | $ 103,105 | $ 77,541 |
Basic earnings per share | $ 3.84 | $ 3.51 | $ 8.74 | $ 6.36 |
Diluted earnings per share | $ 3.79 | $ 3.48 | $ 8.64 | $ 6.30 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Change in carrying value of goodwill and intangible assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Goodwill as of beginning of period | $ 3,683 | $ 3,683 |
Acquired goodwill | 108,846 | |
Impairment of goodwill | 0 | |
Goodwill as of end of period | $ 112,529 | $ 3,683 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of intangible assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 28, 2019 | Dec. 29, 2018 | |
Gross Carrying Value | $ 104,399 | $ 2,099 |
Accumulated Amortization | (64) | |
Net Book Value | 104,335 | 2,099 |
Trade Names | ||
Gross Carrying Value | 100,599 | 2,099 |
Net Book Value | $ 100,599 | $ 2,099 |
Customer Relationships | ||
Estimated Useful Life | 15 years | |
Gross Carrying Value | $ 3,800 | |
Accumulated Amortization | (64) | |
Net Book Value | $ 3,736 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of amortization expense (Detail) $ in Millions | Sep. 28, 2019USD ($) |
Remainder of 2019 | $ 63 |
2020 | 253 |
2021 | 253 |
2022 | 253 |
2023 | 253 |
2024 | $ 253 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 28, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Dec. 29, 2017 | |
Good will acquired | $ 112,529 | $ 3,683 | $ 3,683 | $ 3,683 |
Customer Relationships | ||||
Useful life Of Finite Lived Intangibles | 15 years | |||
Dogfish Head Brewery [Member] | ||||
Good will acquired | $ 108,846 | |||
Business Combination Indefinite Lived Intangible Assets Assumed | 98,500 | |||
Dogfish Head Brewery [Member] | Customer Relationships | ||||
Business Combination Finite Lived Intangible Assets Assumed | $ 3,800 | |||
Useful life Of Finite Lived Intangibles | 15 years | |||
Intangible Assets Amortization | $ 64 | |||
Dogfish Head Brewery [Member] | Trade Names | ||||
Business Combination Indefinite Lived Intangible Assets Assumed | $ 98,500 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 28, 2019 | Mar. 31, 2018 | Dec. 30, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative Effect on Retained Earnings, Net of Tax related to variable customer promotional discount programs | $ 1,000 | $ (982) | |
Operating Lease, Right-of-Use Asset | 38,943 | ||
Operating Lease, Liability | $ 43,814 | ||
Accounting Standards Update 2016-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating Lease, Right-of-Use Asset | $ 27,000 | ||
Operating Lease, Liability | $ 31,500 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 29, 2018 | Dec. 29, 2018 | |
Sales to domestic distributors as a percentage of total sales | 95.00% | 95.00% | ||||
Sales to foreign distributors as a percentage of total sales | 4.00% | 4.00% | ||||
Sales to retail locations as a percentage of total sales | 1.00% | 1.00% | ||||
Deferred Revenue, Current | $ 6.9 | $ 6.9 | $ 4.6 | |||
Reduction in federal excise taxes | 2.8 | $ 2 | 6.6 | $ 4.8 | ||
Distributors [Member] | ||||||
Amounts paid to distributors | 14.8 | 11.1 | 34.5 | $ 26.8 | ||
Marketing and Advertising Expense | $ 6.2 | $ 3.5 | $ 13 | $ 9.7 |
Components of Inventories (Deta
Components of Inventories (Detail) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Current inventory: | ||
Raw materials | $ 51,322 | $ 44,655 |
Work in process | 13,270 | 8,252 |
Finished goods | 28,040 | 17,342 |
Total current inventory | 92,632 | 70,249 |
Long term inventory | 15,369 | 11,619 |
Total inventory | $ 108,001 | $ 81,868 |
Leases - ROU assets and lease l
Leases - ROU assets and lease liabilities (Detail) $ in Thousands | Sep. 28, 2019USD ($) |
Right of use assets | |
Operating | $ 38,943 |
Current | |
Operating lease liabilities | 2,599 |
Non-current | |
Operating lease liabilities | 41,215 |
Operating Right Of Use Assets [Member] | |
Right of use assets | |
Operating | 38,943 |
Property, Plant and Equipment [Member] | |
Right of use assets | |
Capital | 2,663 |
Current Operating Lease Liabilities [Member] | |
Current | |
Operating lease liabilities | 2,599 |
Accrued Expenses And Other Current Liabilities [Member] | |
Current | |
Finance lease liabilities | 541 |
Non Current Operating Lease Liabilities [Member] | |
Non-current | |
Operating lease liabilities | 41,215 |
Other Liabilities [Member] | |
Non-current | |
Finance lease liabilities | $ 2,178 |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities (Detail) $ in Thousands | Sep. 28, 2019USD ($) |
Operating Leases | |
2019 | $ 1,466 |
2020 | 2,642 |
2021 | 5,754 |
2022 | 5,453 |
2023 | 5,313 |
After 2023 | 32,191 |
Total lease payments | 52,819 |
Less imputed interest | (9,005) |
Present Value of Lease liability | $ 43,814 |
Operating Lease, Weighted Average Discount Rate, Percent | 3.50% |
Operating Lease Weighted-Average Remaining Term | |
Lease Weighted Average Remaining Lease Term | 4 years 8 months 12 days |
Finance Lease Liabilities, Payments, Due | |
2019 | $ 155 |
2020 | 626 |
2021 | 626 |
2022 | 626 |
2023 | 626 |
After 2023 | 288 |
Total lease payments | 2,947 |
Less imputed interest | (228) |
Present Value of Lease liability | $ 2,719 |
Finance Lease, Weighted Average Remaining Lease Term | 9 years 10 months 24 days |
Finance Lease, Weighted Average Discount Rate, Percent | 3.50% |
Leases - Schedule of future min
Leases - Schedule of future minimum lease payments (Detail) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
2020 | $ 2,642 | |
2021 | 5,754 | |
2022 | 5,453 | |
2023 | 5,313 | |
Thereafter | 32,191 | |
Total | $ 52,819 | |
Non-cancellable operating lease agreements [Member] | ||
2019 | $ 4,446 | |
2020 | 4,530 | |
2021 | 4,370 | |
2022 | 3,559 | |
2023 | 1,672 | |
Thereafter | 7,582 | |
Total | $ 26,159 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 28, 2019 | Sep. 28, 2019 | Dec. 30, 2018 | |
Lease expense | $ 1,900 | $ 4,900 | |
Operating Lease, Liability | 43,814 | 43,814 | |
Lease, cost | 1,600 | 3,900 | |
Short-term lease expense | 300 | 1,000 | |
Operating lease right of use asset | $ 38,943 | $ 38,943 | |
Accounting Standards Update 2016-02 [Member] | |||
Operating Lease, Liability | $ 31,500 | ||
Operating lease right of use asset | $ 27,000 |
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. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 29, 2018 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||
Net income | $ 44,729 | $ 27,856 | $ 23,694 | $ 38,007 | $ 23,535 | $ 9,310 | $ 96,279 | $ 70,852 | $ 70,852 |
Allocation of net income for basic: | |||||||||
Allocation of net income for basic common stock | 44,729 | $ 38,007 | 96,279 | 70,852 | |||||
Allocation of net income for basic unvested participating shares | $ 372 | $ 866 | $ 632 | ||||||
Weighted average number of shares for basic: | |||||||||
Weighted-average number of common shares — basic | 12,099 | 11,705 | 11,802 | 11,769 | |||||
Net income per share for basic: | |||||||||
Net income per common share — basic | $ 3.70 | $ 3.25 | $ 8.16 | $ 6.02 | |||||
Common Class A | |||||||||
Allocation of net income for basic: | |||||||||
Allocation of net income for basic common stock | $ 33,776 | $ 27,786 | $ 71,761 | $ 52,051 | |||||
Weighted average number of shares for basic: | |||||||||
Weighted-average number of common shares — basic | 9,136 | 8,557 | 8,797 | 8,646 | |||||
Net income per share for basic: | |||||||||
Net income per common share — basic | $ 3.70 | $ 3.25 | $ 8.16 | $ 6.02 | |||||
Common Class B | |||||||||
Allocation of net income for basic: | |||||||||
Allocation of net income for basic common stock | $ 10,581 | $ 9,800 | $ 23,652 | $ 18,169 | |||||
Weighted average number of shares for basic: | |||||||||
Weighted-average number of common shares — basic | 2,862 | 3,018 | 2,899 | 3,018 | |||||
Net income per share for basic: | |||||||||
Net income per common share — basic | $ 3.70 | $ 3.25 | $ 8.16 | $ 6.02 | |||||
Unvested participating shares | |||||||||
Allocation of net income for basic: | |||||||||
Allocation of net income for basic unvested participating shares | $ 421 | ||||||||
Weighted average number of shares for basic: | |||||||||
Weighted-average number of common shares — basic | 101 | 130 | 106 | 105 |
Computation of Earnings Per S_2
Computation of Earnings Per Share, Basic (Parenthetical) (Detail) - shares | Aug. 08, 2019 | Nov. 01, 2018 |
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 | 100,000 |
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. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||
Allocation of net income for basic common stock | $ 44,729 | $ 38,007 | $ 96,279 | $ 70,852 |
Add: effect of dilutive potential common shares Share-based awards | 152 | 127 | 127 | 109 |
Earnings to Common Shareholders, Net effect of unvested participating shares | $ 4 | $ 5 | $ 8 | $ 5 |
Earnings to Common Shareholders, Net income per common share — diluted | $ 44,361 | $ 37,591 | $ 95,421 | $ 70,225 |
Weighted-average number of common shares — basic | 12,099 | 11,705 | 11,802 | 11,769 |
Weighted-average number of common shares — diluted | 12,150 | 11,702 | 11,823 | 11,773 |
Net income per common share — basic | $ 3.70 | $ 3.25 | $ 8.16 | $ 6.02 |
Net income per common share — diluted | $ 3.65 | $ 3.21 | $ 8.07 | $ 5.96 |
Common Class A | ||||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||
Allocation of net income for basic common stock | $ 33,776 | $ 27,786 | $ 71,761 | $ 52,051 |
Weighted-average number of common shares — basic | 9,136 | 8,557 | 8,797 | 8,646 |
Net income per common share — basic | $ 3.70 | $ 3.25 | $ 8.16 | $ 6.02 |
Common Class B | ||||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||
Allocation of net income for basic common stock | $ 10,581 | $ 9,800 | $ 23,652 | $ 18,169 |
Class B Common Stock | 2,862 | 3,018 | 2,899 | 3,018 |
Earnings to Common Shareholders, Class B Common Stock | $ 10,581 | $ 9,800 | $ 23,652 | $ 18,169 |
Weighted-average number of common shares — basic | 2,862 | 3,018 | 2,899 | 3,018 |
Net income per common share — basic | $ 3.70 | $ 3.25 | $ 8.16 | $ 6.02 |
Net Income per Share - Addition
Net Income per Share - Additional Information (Detail) | Jul. 03, 2019 | Mar. 01, 2019 | Jan. 01, 2019 | Sep. 28, 2019employeeshares | Sep. 28, 2019employeeshares | Sep. 29, 2018shares | Dec. 31, 2016shares |
Investment Share Program | |||||||
Earnings Per Share Note [Line Items] | |||||||
Vesting period | 5 years | ||||||
Investment Share Program | Maximum | |||||||
Earnings Per Share Note [Line Items] | |||||||
Discount from current market value | 40.00% | ||||||
Investment Share Program | Minimum | |||||||
Earnings Per Share Note [Line Items] | |||||||
Requirement tenure of employee for investment share program, purchase shares at discount | 1 year | ||||||
Discount from current market value | 20.00% | ||||||
Restricted Stock Awards | |||||||
Earnings Per Share Note [Line Items] | |||||||
Vesting period | 1 year | 4 years | 4 years | ||||
Common Class A | |||||||
Earnings Per Share Note [Line Items] | |||||||
Antidilutive securities excluded from computation of earnings per share | 27,000 | 21,000 | 653,000 | ||||
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 | 10,000 | 61,000 | |||||
Common Class A | Performance-Based Awards | Key employee | |||||||
Earnings Per Share Note [Line Items] | |||||||
Number Of Employees | employee | 1 | 1 | |||||
Options granted in period | 10,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 28, 2019USD ($)vendor | |
Commitments and Contingencies Disclosure [Line Items] | |
Contractual obligations | $ 211.2 |
Equipment and machinery | |
Commitments and Contingencies Disclosure [Line Items] | |
Contractual obligations | $ 53 |
Minimum | |
Commitments and Contingencies Disclosure [Line Items] | |
Company's current brewing and packaging percentage | 70.00% |
Barley and Wheat | |
Commitments and Contingencies Disclosure [Line Items] | |
Number of suppliers | vendor | 3 |
Purchase commitments outstanding | $ 12.2 |
Hops | |
Commitments and Contingencies Disclosure [Line Items] | |
Purchase commitments | 37.4 |
Hops | Barley and Wheat | |
Commitments and Contingencies Disclosure [Line Items] | |
Contractual obligations | 49.7 |
Advertising contract [Member] | |
Commitments and Contingencies Disclosure [Line Items] | |
Contractual obligations | 75.3 |
Other Ingredients [Member] | |
Commitments and Contingencies Disclosure [Line Items] | |
Contractual obligations | 12 |
Glass Bottles [Member] | |
Commitments and Contingencies Disclosure [Line Items] | |
Contractual obligations | 1.7 |
Other Commitments | |
Commitments and Contingencies Disclosure [Line Items] | |
Contractual obligations | $ 19.5 |
Summary of Income Tax Benefit (
Summary of Income Tax Benefit (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 28, 2019 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Summary of income tax provision | |||||
Tax provision based on net income | $ 16,047 | $ 13,671 | $ 34,455 | $ 24,969 | |
Accounting Method Changes | (4,529) | (4,529) | |||
Benefit of ASU 2016-09 | (1,842) | (129) | (3,870) | (3,980) | |
Total income tax provision | $ 14,205 | $ 14,205 | $ 9,013 | $ 30,585 | $ 16,460 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 29, 2019 | Sep. 28, 2019 | Dec. 29, 2018 | |
Income Taxes [Line Items] | |||||
Accrued interest and penalties | $ 0.2 | $ 0.2 | $ 0.1 | ||
Effective Income Tax Rate Reconciliation, Percent, Total | 27.20% | 19.40% | |||
Other Liabilities [Member] | |||||
Income Taxes [Line Items] | |||||
unrecognized income tax benefits | $ 0.8 | $ 0.8 | $ 0.8 | ||
Effective Income Tax Rate Reconciliation, Percent, Total | 27.20% | 23.40% | |||
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 |
Revolving Line of Credit - Addi
Revolving Line of Credit - Additional Information (Detail) - USD ($) $ in Millions | May 06, 2019 | Mar. 31, 2018 |
Debt Instrument [Line Items] | ||
Line of credit, expiration date | Mar. 31, 2023 | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Line of credit, current borrowing capacity | $ 150 | |
Line of credit | $ 75 | |
Debt instrument stated percentage | 2.95% | |
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument variable rate basis | LIBOR rate of 2.5% plus 0.45% | |
Debt instrument basis spread on variable rate | 0.45% |
Fair Value Measures - Additiona
Fair Value Measures - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 27,128 | $ 108,399 |
Money market fund | $ 21,400 | $ 107,500 |
Summary of Stock Options under
Summary of Stock Options under Employee Equity Incentive Plan and Stock Option Plan for Non-Employee Directors (Detail) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 28, 2019 | |
Shares | |
Outstanding at beginning of period | 366,829 |
Granted | 31,286 |
Forfeited | 0 |
Expired | 0 |
Exercised | (72,937) |
Outstanding at end of period | 325,178 |
Exercisable at end of period | 102,613 |
Vested and expected to vest at end of period | 300,886 |
Weighted-Average Exercise Price | |
Outstanding at beginning of period | $ 155.75 |
Granted | 313.56 |
Forfeited | 0 |
Expired | 0 |
Exercised | 104.47 |
Outstanding at end of period | 182.44 |
Exercisable at end of period | 139.16 |
Vested and expected to vest at end of period | $ 180.81 |
Weighted-Average Remaining Contractual Term | |
Outstanding at end of period | 5 years 9 months 29 days |
Exercisable at end of period | 3 years 11 months 15 days |
Vested and expected to vest at end of period | 5 years 9 months 3 days |
Aggregate Intrinsic Value | |
Outstanding at end of period | $ 55,196 |
Exercisable at end of period | 21,859 |
Vested and expected to vest at end of period | $ 51,563 |
Summary of Vesting Activities f
Summary of Vesting Activities for Investment Share Program and Restricted Stock Awards (Detail) | 9 Months Ended |
Sep. 28, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested at beginning of period | shares | 126,720 |
Granted | shares | 30,410 |
Vested | shares | (33,201) |
Forfeited | shares | (1,550) |
Non-vested at end of period | shares | 122,379 |
Non-vested at beginning of period | $ / shares | $ 192.74 |
Granted | $ / shares | 269.91 |
Vested | $ / shares | 188.63 |
Forfeited | $ / shares | 142 |
Non-vested at end of period | $ / shares | $ 213.67 |
Common Stock and Stock-Based _3
Common Stock and Stock-Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Thousands | Jul. 03, 2019CompensationPlan$ / sharesshares | Mar. 14, 2019$ / sharesshares | Mar. 01, 2019$ / sharesshares | Jan. 01, 2019 | May 16, 2019$ / sharesshares | Apr. 29, 2019$ / sharesshares | Sep. 28, 2019USD ($)shares | Sep. 29, 2018USD ($) | Sep. 28, 2019USD ($)$ / sharesshares | Sep. 29, 2018USD ($) | Dec. 29, 2018shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Other than options granted in period | 30,410 | ||||||||||
Stock option outstanding | 325,178 | 325,178 | 366,829 | ||||||||
Stock-based compensation expense | $ | $ 3,200 | $ 2,400 | $ 9,043 | $ 6,995 | |||||||
Weighted average fair value of stock awards | $ / shares | $ 269.91 | ||||||||||
Number Of key Employees | CompensationPlan | 4 | ||||||||||
Non Employee Director Stock Option | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Options granted in period | 844 | 3,935 | |||||||||
Options granted in period - weighted average fair value | $ / shares | $ 136.10 | $ 145.95 | |||||||||
Chief Marketing Officer | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Options granted in period | 11,827 | ||||||||||
Options granted in period - weighted average fair value | $ / shares | $ 126.83 | ||||||||||
Performance-Based Awards | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock option outstanding | 65,306 | 65,306 | |||||||||
Investment Share Program | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Shares employees elected to purchase | 7,901 | ||||||||||
Weighted average fair value of stock awards | $ / shares | $ 147.98 | ||||||||||
Restricted Stock Awards | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting period | 1 year | 4 years | 4 years | ||||||||
Other than options granted in period | 906 | 16,471 | |||||||||
Weighted average fair value of stock awards | $ / shares | $ 379.63 | $ 312.56 | |||||||||
Restricted Stock Awards | Chief Marketing Officer Two | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Other than options granted in period | 4,925 | ||||||||||
Weighted average fair value of stock awards | $ / shares | $ 304.56 | ||||||||||
Employee Stock Compensation Plan | Senior Management | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Options granted in period | 14,680 | ||||||||||
Options granted in period - weighted average fair value | $ / shares | $ 136 |
Employee Retirement Plans - Add
Employee Retirement Plans - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | |
Apr. 30, 2019 | Dec. 29, 2018 | |
Pension Benefit Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets at end of fiscal year | $ 3.3 | |
Benefit obligation at end of fiscal year | $ 5.4 | |
Union Number1199 Pension Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Estimated cost of termination of retirement pension plan | $ 1.7 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | 9 Months Ended |
Sep. 28, 2019USD ($) | |
Related Party Transaction [Line Items] | |
Total payments due | $ 52,819,000 |
Dogfish Head Brewery [Member] | |
Related Party Transaction [Line Items] | |
Lease term of contract | 10 years |
Total payments due | $ 3,600,000 |
Related party expense | $ 91,000 |