Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 27, 2020 | Jul. 17, 2020 | |
Document Information [Line Items] | ||
Document Transition Report | false | |
Document Quarterly Report | true | |
Document Type | 10-Q | |
Document Period End Date | Jun. 27, 2020 | |
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 | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000949870 | |
Current Fiscal Year End Date | --12-26 | |
Trading Symbol | SAM | |
Security Exchange Name | NYSE | |
Title of 12(b) Security | Class A Common Stock | |
Common Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 9,901,752 | |
Common Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 2,307,983 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 27, 2020 | Dec. 28, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 86,716 | $ 36,670 |
Accounts receivable | 99,320 | 54,404 |
Inventories | 108,523 | 106,038 |
Prepaid expenses and other current assets | 22,693 | 12,077 |
Income tax receivable | 3,435 | 9,459 |
Total current assets | 320,687 | 218,648 |
Property, plant and equipment, net | 565,265 | 541,068 |
Operating right-of-use assets | 61,420 | 53,758 |
Goodwill | 112,529 | 112,529 |
Intangible assets | 104,096 | 104,272 |
Other assets | 44,255 | 23,782 |
Total assets | 1,208,252 | 1,054,057 |
Current Liabilities: | ||
Accounts payable | 93,576 | 76,374 |
Accrued expenses and other current liabilities | 118,788 | 99,107 |
Current operating lease liabilities | 7,444 | 5,168 |
Total current liabilities | 219,808 | 180,649 |
Deferred income taxes, net | 87,417 | 75,010 |
Non-current operating lease liabilities | 62,896 | 53,940 |
Other liabilities | 10,648 | 8,822 |
Total liabilities | 380,769 | 318,421 |
Commitments and Contingencies (See Note K) | ||
Stockholders' Equity: | ||
Additional paid-in capital | 585,327 | 571,784 |
Accumulated other comprehensive loss, net of tax | (1,740) | (1,669) |
Retained earnings | 243,775 | 165,400 |
Total stockholders' equity | 827,483 | 735,636 |
Total liabilities and stockholders' equity | 1,208,252 | 1,054,057 |
Common Class A | ||
Stockholders' Equity: | ||
Common Stock | 98 | 94 |
Common Class B | ||
Stockholders' Equity: | ||
Common Stock | $ 23 | $ 27 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 27, 2020 | Dec. 28, 2019 |
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 | 9,834,473 | 9,370,526 |
Common Stock, shares outstanding | 9,834,473 | 9,370,526 |
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 | 2,307,983 | 2,672,983 |
Common Stock, shares outstanding | 2,307,983 | 2,672,983 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Revenue | $ 481,089 | $ 338,643 | $ 833,314 | $ 606,202 |
Less excise taxes | 28,951 | 20,236 | 50,611 | 36,144 |
Net revenue | 452,138 | 318,407 | 782,703 | 570,058 |
Cost of goods sold | 242,514 | 159,405 | 425,106 | 286,516 |
Gross profit | 209,624 | 159,002 | 357,597 | 283,542 |
Operating expenses: | ||||
Advertising, promotional and selling expenses | 100,336 | 94,079 | 198,227 | 165,802 |
General and administrative expenses | 29,685 | 26,748 | 56,714 | 50,122 |
Impairment of assets | 834 | 243 | 2,355 | 243 |
Total operating expenses | 130,855 | 121,070 | 257,296 | 216,167 |
Operating income | 78,769 | 37,932 | 100,301 | 67,375 |
Other (expense) income, net: | ||||
Interest (expense) income, net | (212) | (27) | (149) | 610 |
Other (expense) income, net | (52) | 197 | (412) | (55) |
Total other (expense) income, net | (264) | 170 | (561) | 555 |
Income before income tax provision | 78,505 | 38,102 | 99,740 | 67,930 |
Income tax provision | 18,364 | 10,246 | 21,365 | 16,380 |
Net income | $ 60,141 | $ 27,856 | $ 78,375 | $ 51,550 |
Net income per common share - basic | $ 4.93 | $ 2.39 | $ 6.44 | $ 4.42 |
Net income per common share - diluted | $ 4.88 | $ 2.36 | $ 6.37 | $ 4.38 |
Weighted-average number of common shares - basic | 12,196 | 11,672 | 12,177 | 11,654 |
Weighted-average number of common shares - diluted | 12,258 | 11,684 | 12,221 | 11,660 |
Net income | $ 60,141 | $ 27,856 | $ 78,375 | $ 51,550 |
Other comprehensive income: | ||||
Foreign currency translation adjustment | (13) | 5 | (71) | 42 |
Comprehensive income | $ 60,128 | $ 27,861 | $ 78,304 | $ 51,592 |
Common Class A | ||||
Other (expense) income, net: | ||||
Net income per common share - basic | $ 4.93 | $ 2.39 | $ 6.44 | $ 4.42 |
Weighted-average number of common shares - basic | 9,720 | 8,648 | 9,572 | 8,627 |
Common Class B | ||||
Other (expense) income, net: | ||||
Net income per common share - basic | $ 4.93 | $ 2.39 | $ 6.44 | $ 4.42 |
Net income per common share - diluted | $ 4.88 | $ 2.36 | $ 6.37 | $ 4.38 |
Weighted-average number of common shares - basic | 2,400 | 2,918 | 2,523 | 2,918 |
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. 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 | 51,550 | |||||
Currency translation adjustment | 42 | |||||
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 | ||||
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 | ||||
Balance at Dec. 28, 2019 | 735,636 | $ 94 | $ 27 | 571,784 | (1,669) | 165,400 |
Balance (in shares) at Dec. 28, 2019 | 9,371,000 | 2,673,000 | ||||
Net income | 18,234 | 18,234 | ||||
Stock options exercised and restricted shares activities (in shares) | 38,000 | |||||
Stock options exercised and restricted shares activities | 1,858 | 1,858 | ||||
Stock-based compensation expense | 2,566 | 2,566 | ||||
Conversion from Class B to Class A (in shares) | 150,000 | (150,000) | ||||
Conversion from Class B to Class A | $ 2 | $ (2) | ||||
Currency translation adjustment | (58) | (58) | ||||
Balance at Mar. 28, 2020 | 758,236 | $ 96 | $ 25 | 576,208 | (1,727) | 183,634 |
Balance (in shares) at Mar. 28, 2020 | 9,559,000 | 2,523,000 | ||||
Balance at Dec. 28, 2019 | 735,636 | $ 94 | $ 27 | 571,784 | (1,669) | 165,400 |
Balance (in shares) at Dec. 28, 2019 | 9,371,000 | 2,673,000 | ||||
Net income | $ 78,375 | |||||
Stock options exercised and restricted shares activities (in shares) | 57,926 | |||||
Currency translation adjustment | $ (71) | |||||
Balance at Jun. 27, 2020 | 827,483 | $ 98 | $ 23 | 585,327 | (1,740) | 243,775 |
Balance (in shares) at Jun. 27, 2020 | 9,835,000 | 2,308,000 | ||||
Balance at Mar. 28, 2020 | 758,236 | $ 96 | $ 25 | 576,208 | (1,727) | 183,634 |
Balance (in shares) at Mar. 28, 2020 | 9,559,000 | 2,523,000 | ||||
Net income | 60,141 | 60,141 | ||||
Stock options exercised and restricted shares activities (in shares) | 61,000 | |||||
Stock options exercised and restricted shares activities | 4,582 | 4,582 | ||||
Stock-based compensation expense | 4,537 | 4,537 | ||||
Conversion from Class B to Class A (in shares) | 215,000 | (215,000) | ||||
Conversion from Class B to Class A | $ 2 | $ (2) | ||||
Currency translation adjustment | (13) | (13) | ||||
Balance at Jun. 27, 2020 | $ 827,483 | $ 98 | $ 23 | $ 585,327 | $ (1,740) | $ 243,775 |
Balance (in shares) at Jun. 27, 2020 | 9,835,000 | 2,308,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Cash flows provided by operating activities: | ||
Net income | $ 78,375 | $ 51,550 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 32,584 | 26,089 |
Impairment of assets | 2,355 | 243 |
Loss on disposal of property, plant and equipment | 39 | 104 |
Change in ROU assets | 3,649 | 1,789 |
Credit loss expense | 375 | (1) |
Stock-based compensation expense | 7,103 | 5,810 |
Deferred income taxes | 12,407 | 6,283 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (45,326) | (35,346) |
Inventories | (12,795) | (14,942) |
Prepaid expenses, income tax receivable and other current assets | (4,784) | (6,855) |
Other assets | (10,231) | (4,107) |
Accounts payable | 19,560 | 26,320 |
Accrued expenses and other current liabilities | 20,803 | (101) |
Change in operating lease liability | (80) | (1,391) |
Other liabilities | (23) | 85 |
Net cash provided by operating activities | 104,011 | 55,530 |
Cash flows used in investing activities: | ||
Purchases of property, plant and equipment | (60,072) | (44,578) |
Proceeds from disposal of property, plant and equipment | 45 | 179 |
Investment in Dogfish Head, net of cash acquired | 0 | (158,402) |
Other investing activities | 260 | (188) |
Net cash used in investing activities | (59,767) | (202,989) |
Cash flows provided by financing activities: | ||
Proceeds from exercise of stock options and sale of investment shares | 8,010 | 4,692 |
Net cash paid on note payable and finance leases | (649) | (115) |
Cash borrowed on line of credit | 100,000 | 86,000 |
Cash paid on line of credit | (100,000) | (48,500) |
Payment of tax withholdings on stock-based payment awards and investment shares | (1,559) | |
Net cash provided by (used in) financing activities | 5,802 | 42,077 |
Change in cash and cash equivalents | 50,046 | (105,382) |
Cash and cash equivalents at beginning of year | 36,670 | 108,399 |
Cash and cash equivalents at end of period | 86,716 | 3,017 |
Supplemental disclosure of cash flow information: | ||
Income taxes paid | 2,929 | 207 |
Cash paid for amounts included in measurement of lease liabilities | ||
Operating cash flows from operating leases | 4,532 | 1,916 |
Operating cash flows from finance leases | 75 | 52 |
Financing cash flows from finance leases | 581 | 7 |
Right-of-use assets obtained in exchange for operating lease obligations | 11,311 | 38,524 |
Right-of-use assets obtained in exchange for finance lease obligations | 3,856 | 2,837 |
Change in purchase of property, plant and equipment in accounts payable and accrued expenses | $ 4,920 | $ 1,484 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Jun. 27, 2020 | |
Organization and Basis of Presentation | A. Organization and Basis of Presentation The Boston Beer Company, Inc. and certain subsidiaries (the “Company”) are engaged in the business of selling alcohol beverages throughout the United States and in selected international markets, under the trade names “The Boston Beer Company ® ® ® ® ® ® ® The accompanying unaudited consolidated balance sheet as of June 27, 2020, and the consolidated statements of comprehensive income, stockholders’ equity, and cash flows for the interim periods ended June 27, 2020 and June 29, 2019 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 GAAP have been condensed or omitted. All intercompany accounts and transactions have been eliminated. 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 June 27, 2020 and the results of its consolidated operations, stockholders’ equity, and cash flows for the interim periods ended June 27, 2020 and June 29, 2019, 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. |
COVID-19 Pandemic
COVID-19 Pandemic | 6 Months Ended |
Jun. 27, 2020 | |
COVID Nineteen Pandemic [Abstract] | |
COVID-19 Pandemic | B. COVID-19 The Company began seeing the impact of the COVID-19 on-premise COVID-19 pre-tax COVID-19 |
Dogfish Head Brewery Transactio
Dogfish Head Brewery Transaction | 6 Months Ended |
Jun. 27, 2020 | |
Business Combinations [Abstract] | |
Dogfish Head Brewery Transaction | C. Dogfish Head Brewery Transaction On May 8, 2019, the Company entered into definitive agreements to acquire Dogfish Head Brewery (“Dogfish Head”) and various related operations (the “Transaction”) through the acquisition of all of the equity interests held by certain private entities in Off-Centered The fair value of the Transaction is estimated to be $317.7 million. 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 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 estimated the Dogfish Head brand trade name will have an indefinite life and customer relationships will have an estimated useful life of 15 years. The customer relationship intangible asset will be amortized on a straight-line basis over the 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 basis. 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, expected synergies and value of the workforce. The Company believes the majority of the goodwill is deductible for tax purposes. 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 statements of comprehensive income since the July 3, 2019 Transaction closing date. 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 30, 2018, the first day of the Company’s 2019 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 30, 2018. (ii) 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. (i ii The tax effects of the pro forma adjustments at an estimated statutory rate of 25.6%. ( i 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 Twenty-six June 27, June 29, June 27, June 29, 2020 2019 2020 2019 (in thousands) (in thousands) Net revenue $ 452,138 $ 347,015 $ 782,703 $ 623,755 Net income $ 60,141 $ 30,359 $ 78,375 $ 55,022 Basic earnings per share $ 4.93 $ 2.51 $ 6.44 $ 4.55 Diluted earnings per share $ 4.88 $ 2.46 $ 6.37 $ 4.48 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 27, 2020 | |
Goodwill and Intangible Assets | D. Goodwill and Intangible Assets There were no changes in the carrying value of goodwill during the thirteen or twenty-six The Company’s intangible assets as of June 27, 2020 and December 28, 2019 were as follows: As of June 27, 2020 As of December 28, 2019 Estimated Useful Gross Carrying Accumulated Net Book Gross Carrying Accumulated Net Book (in thousands) Custmer Relationships 15 $ 3,800 $ (253 ) $ 3,547 $ 3,800 $ (127 ) $ 3,673 Trade Names Indefinite 100,549 — 100,549 100,599 — 100,599 Total intangible assets $ 104,349 $ (253 ) $ 104,096 $ 104,399 $ (127 ) $ 104,272 As disclosed within Note C, the Company acquired intangible assets as part of the Dogfish Head t twenty-six Fiscal Year Amount (in thousands) Remainder of 2020 $ 127 2021 253 2022 253 2023 253 2024 253 2025 253 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 27, 2020 | |
Recent Accounting Pronouncements | E. Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted In June 2016, the FASB issued ASU 2016-13, 2016-13 In January 2017, the FASB issued ASU No. 2017-04, 2017-04, two-step 2017-04 2017-04 2017-04 Accounting Pronouncements Not Yet Effective In December 2019, the FASB issued ASU 2019-12, 2019-12 |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 27, 2020 | |
Revenue Recognition | F. Revenue Recognition During the twenty-six 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 June 27, 2020 and December 28, 2019, the Company has deferred $9.0 million and $7.0 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 distributors for certain periods of time. The reimbursements for discounts to distributors are recorded as reductions to net revenue and were $20.4 million and $28.6 million for the thirteen and twenty-six twenty-six 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 , |
Inventories
Inventories | 6 Months Ended |
Jun. 27, 2020 | |
Inventories | G. Inventories Inventories consist of raw materials, work in process and finished goods. Raw materials, which principally consist of hops, flavorings, apple juice, other brewing materials and packaging, are stated at the lower of cost, determined on the first-in, first-out June 27, 2020 December 28, 2019 (in thousands) Current inventory: Raw materials $ 62,475 $ 61,522 Work in process 15,161 12,631 Finished goods 30,887 31,885 Total current inventory 108,523 106,038 Long term inventory 20,358 10,048 Total inventory $ 128,881 $ 116,086 |
Leases
Leases | 6 Months Ended |
Jun. 27, 2020 | |
Leases | H. Leases The Company has various lease agreements in place for facilities and equipment. Terms of these leases include, in some instances, scheduled rent increases, renewals, purchase options and maintenance costs, and vary by lease. These lease obligations expire at various dates through 2034. As the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate based on information available at commencement to determine the present value of the lease payments. ROU assets and lease liabilities commencing after December 30, 2018 are recognized at commencement date based on the present value of lease payments over the lease term. Leases with an initial term of 12 months or less (“short-term leases”) are not recorded on the balance sheet and are recognized on a straight-line basis over the lease term. As of June 27, 2020, and December 28, 2019 total ROU assets and lease liabilities were as follows: Classification Leases June 27, 2020 December 28, 2019 (in thousands) Right- of-use Operating lease assets Operating right-of-use $ 61,420 $ 53,758 Finance lease assets Property, plant and equipment, net 5,814 2,531 Lease Liabilities Current Operating lease liabilities Current operating lease liabilities 7,444 5,168 Finance lease liabilities Accrued expenses and other current liabilities 1,807 546 Non-current Operating lease liabilities Non-current 62,896 53,940 Finance lease liabilities Other liabilities 4,056 2,042 The gross value and accumulated depreciation of ROU assets related to finance leases as of June 27, 2020 and December 28, 2019 were as follows: Finance Leases June 27, 2020 December 28, 2019 (in thousands) Gross value $ 6,694 $ 2,837 Accumulated amortization (880 ) (306 ) Carrying value $ 5,814 $ 2,531 Components of lease cost for the thirteen and twenty-six Lease Cost Thirteen weeks ended Twenty-six June 27, June 29, June 27, June 29, 2020 2019 2020 2019 (in thousands) (in thousands) Operating lease cost $ 2,437 $ 1,177 $ 4,852 $ 2,305 Variable lease costs not included in liability 487 273 972 472 Finance lease cost: Amortization of right-of-use 440 43 573 43 Interest on lease liabilities 53 52 75 52 Total finance lease cost $ 493 $ 95 $ 648 $ 95 Maturities of lease liabilities as of June 27, 2020 were as follows: Operating Finance Leases Weighted-Average Remaining Term Operating Leases Finance Leases (in thousands) 2020 $ 4,843 $ 987 2021 9,903 1,982 2022 9,761 1,982 2023 9,709 965 2024 9,470 265 Thereafter 39,523 23 Total lease payments 83,209 6,204 Less imputed interest (based on 3.5% (12,869 ) (341 ) Present value of lease liability $ 70,340 $ 5,863 9.3 3.2 |
Net Income per Share
Net Income per Share | 6 Months Ended |
Jun. 27, 2020 | |
Net Income per Share | I. 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 O 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 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 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 Twenty-six June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 (in thousands, except per share data) (in thousands, except per share data) Net income $ 60,141 $ 27,856 $ 78,375 $ 51,550 Allocation of net income for basic: Class A Common Stock $ 47,930 $ 20,639 $ 61,612 $ 38,161 Class B Common Stock 11,836 6,964 16,237 12,908 Unvested participating shares 375 253 526 481 $ 60,141 $ 27,856 $ 78,375 $ 51,550 Weighted average number of shares for basic: Class A Common Stock 9,720 8,648 9,572 8,627 Class B Common Stock* 2,400 2,918 2,523 2,918 Unvested participating shares 76 106 82 109 12,196 11,672 12,177 11,654 Net income per share for basic: Class A Common Stock $ 4.93 $ 2.39 $ 6.44 $ 4.42 Class B Common Stock $ 4.93 $ 2.39 $ 6.44 $ 4.42 * Change in Class B Common Stock resulted from the conversion of 100,000 shares to Class A Common Stock on August 8, 2019, 145,000 shares to Class A Common Stock on December 13, 2019, 150,000 shares to Class A Common Stock on March 11, 2020 and 215,000 shares to Class A Common Stock on May 6, 2020 with the ending number of shares reflecting the weighted average for the period. 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 June 27, 2020 June 29, 20 19 Earnings to Common Shares EPS Earnings to Common Shares EPS (in thousands, except per share data) As reported - basic $ 47,930 9,720 $ 4.93 $ 20,639 8,648 $ 2.39 Add: effect of dilutive potential common shares Share-based awards — 138 — 118 Class B Common Stock 11,836 2,400 6,964 2,918 Net effect of unvested participating shares 4 — 2 — Net income per common share - diluted $ 59,770 12,258 $ 4.88 $ 27,605 11,684 $ 2.36 Twenty-six June 27, 2020 June 29, 20 19 Earnings to Common Shares EPS Earnings to Common Shares EPS (in thousands, except per share data) As reported - basic $ 61,612 9,572 $ 6.44 $ 38,161 8,627 $ 4.42 Add: effect of dilutive potential common shares Share-based awards — 126 — 115 Class B Common Stock 16,237 2,523 12,908 2,918 Net effect of unvested participating shares 5 — 5 — Net income per common share - diluted $ 77,854 12,221 $ 6.37 $ 51,074 11,660 $ 4.38 During the thirteen and twenty-six twenty-six shares of Class A Common Stock were outstanding as of June 29, 2019, respectively, but not included in computing diluted income per common share because the performance criteria of these stock options were not met as of the end of the reporting period. |
Comprehensive Income or Loss
Comprehensive Income or Loss | 6 Months Ended |
Jun. 27, 2020 | |
Comprehensive Income or Loss | J. 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 June 27, 2020 and June 29, 2019 were not material. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 27, 2020 | |
Commitments and Contingencies | K. 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 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 June 27, 2020 totaled $31.0 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. The Company has entered into contracts for barley and wheat with three major suppliers. The contracts include crop year 2019 and 2020 and cover the Company’s barley, wheat, and malt requirements for 2020 and part of 2021. These purchase commitments outstanding at June 27, 2020 totaled $21.3 million. Currently, the Company brews and packages approximately 60% 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. During the second quarter of 2020, the Company amended an existing brewing services agreement to include an annual minimum commitment by the Company with a shortfall fee if the minimum is not met. The Company does not currently believe its ordered volumes will fall below the annual minimum commitments . The amendment extended the contract through December 31, 2024 and grants the Company the right to extend the agreement beyond the December 31, 2024 termination date on an annual basis through December 31, 2035 at a $1 million annual renewal rate. The amendment required the Company to pay $8 million in the second quarter of 2020 for capital improvements at the third - - Subsequent to June 27, 2020, the Company entered into contracts for equipment and machinery of $12.3 million in order to increase production at Company-owned breweries. The Company is in the process of assessing the impact the COVID-19 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 | 6 Months Ended |
Jun. 27, 2020 | |
Income Taxes | L. Income Taxes As of June 27, 2020 and December 28, 2019, 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 June 27, 2020 and December 28, 2019, 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 twenty-six Thirteen weeks ended June 27, June 29 , (in thousands) Summary of income tax provision Tax provision based on net income $ 20,699 $ 10,499 Benefit of ASU 2016-09 (2,335 ) (253 ) Total income tax provision $ 18,364 $ 10,246 Twenty-six June 27, June 29 , (in thousands) Summary of income tax provision Tax provision based on net income $ 25,704 $ 18,408 Benefit of ASU 2016-09 (4,339 ) (2,028 ) Total income tax provision $ 21,365 $ 16,380 The Company’s effective tax rate for the thirteen weeks ended June 27, 2020, decreased to 23.4% from 26.9% for the thirteen weeks ended June 29, 2019, primarily due to higher tax benefit from stock option activity recorded in accordance with ASU 2016-09. twenty-six twenty-six also 2016-09. |
Revolving Line of Credit
Revolving Line of Credit | 6 Months Ended |
Jun. 27, 2020 | |
Revolving Line of Credit | M. Revolving Line of Credit In March 2018, the Company amended its $150.0 million revolving line of credit facility borrowed COVID-19 the Company had repaid the entire $100.0 million. As of June 27, 2020, the Company was not in violation of any of its financial covenants to the lender under the credit facility and the entire balance of |
Fair Value Measures
Fair Value Measures | 6 Months Ended |
Jun. 27, 2020 | |
Fair Value Measures | N. 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 quarterly) 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 June 27, 2020 and December 28, 2019, 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 June 27, 2020 and December 28, 2019, the Company’s cash and cash equivalents balance was $86.7 million and $36.7 million, respectively, including money market funds amounting to $83.0 million and $29.5 million, respectively. |
Common Stock and Share-Based Co
Common Stock and Share-Based Compensation | 6 Months Ended |
Jun. 27, 2020 | |
Common Stock and Share-Based Compensation | O. 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 Remaining Aggregate Intrinsic (in thousands) Outstanding at December 28, 2019 315,678 $ 186.53 Granted 25,870 383.22 Forfeited (2,595 ) 241.84 Expired — — Exercised (57,926 ) 120.81 Outstanding at June 27, 2020 281,027 $ 217.67 6.14 $ 97,280 Exercisable at June 27, 2020 92,818 $ 185.56 5.11 $ 35,110 Vested and expected to vest at 256,784 $ 216.12 6.09 $ 89,287 Of the total options outstanding at June 27, 2020, 40,000 shares were performance-based options for which the performance criteria had yet to be achieved. On January 31, 2020, the Company granted options to purchase an aggregate of 978 shares of the Company’s Class A Common Stock to the Company’s newly appointed non-employee Director. These options have a weighted average fair value of $146.87 per share, of which all shares vested immediately. On March 1, 2020, the Company granted options to purchase an aggregate of 14,962 shares of the Company’s Class A Common Stock to senior management with a weighted average fair value of $142.25 per share, of which all shares relate to performance-based stock options. On March 2, 2020, the Company granted options to purchase an aggregate of 7,030 shares of the Company’s Class A Common Stock to the Company’s newly appointed Chief People Officer with a weighted average fair value of $142.23 per share, of which all shares relate to performance-based stock options. On May 14, 2020, the Company granted options to purchase an aggregate of 2,900 shares of the Company’s Class A Common Stock to the Company’s non-employee Weighted average assumptions used to estimate fair values of stock options on the date of grants are as follows: 2020 Expected Volatility 32.6 % Risk-free interest rate 1.09 % Expected Dividends 0.0 % Exercise factor 2.12 times Discount for post-vesting restrictions 0.0 % 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 122,142 $ 213.52 Granted 40,316 325.12 Vested (45,169 ) 213.12 Forfeited (3,318 ) 241.05 Non-vested 113,971 $ 252.36 Of the total shares outstanding at June 27, 2020, 3,000 shares were performance-based shares for which the performance criteria had yet to be achieved. On March 1, 2020, the Company granted 15,011 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. Additionally on March 1, 2020, the Company granted a combined 13,482 shares of restricted stock units to select senior management employees with various service and performance based vesting conditions. On March 1, 2020, employees elected to purchase 9,127 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 $370.79 and $169.43 per share, respectively. On March 2, 2020 the Company granted its newly appointed Chief People Officer 2,696 shares of restricted stock units with a weighted-average fair value of $370.79 per share with service based vesting through 2024. Stock-Based Compensation The following table provides information regarding stock-based compensation expense included in operating expenses in the accompanying consolidated statements of comprehensive income: Thirteen weeks ended Twenty-six June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 (in thousands) (in thousands) Amounts included in advertising, promotional and selling expenses $ 1,147 $ 1,121 $ 1,852 $ 1,598 Amounts included in general and administrative expenses 3,390 2,624 5,251 4,212 Total stock-based compensation expense $ 4,537 $ 3,745 $ 7,103 $ 5,810 |
Employee Retirement Plans
Employee Retirement Plans | 6 Months Ended |
Jun. 27, 2020 | |
Employee Retirement Plans | P. 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 - |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 27, 2020 | |
Related Party Transactions | Q. Related Party Transactions In connection with the Dogfish Head Transaction, the Company has entered into twenty-six |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 27, 2020 | |
Subsequent Events | R. Subsequent Events As disclosed in Note K, subsequent to June 27, 2020, the Company entered into contracts for machinery and equipment to increase capacity in Company-owned breweries. The Company evaluated subsequent events occurring after the balance sheet date, June 27, 2020, 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. |
Dogfish Head Brewery Transact_2
Dogfish Head Brewery Transaction (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
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 Twenty-six June 27, June 29, June 27, June 29, 2020 2019 2020 2019 (in thousands) (in thousands) Net revenue $ 452,138 $ 347,015 $ 782,703 $ 623,755 Net income $ 60,141 $ 30,359 $ 78,375 $ 55,022 Basic earnings per share $ 4.93 $ 2.51 $ 6.44 $ 4.55 Diluted earnings per share $ 4.88 $ 2.46 $ 6.37 $ 4.48 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets - (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | The Company’s intangible assets as of June 27, 2020 and December 28, 2019 were as follows: As of June 27, 2020 As of December 28, 2019 Estimated Useful Gross Carrying Accumulated Net Book Gross Carrying Accumulated Net Book (in thousands) Custmer Relationships 15 $ 3,800 $ (253 ) $ 3,547 $ 3,800 $ (127 ) $ 3,673 Trade Names Indefinite 100,549 — 100,549 100,599 — 100,599 Total intangible assets $ 104,349 $ (253 ) $ 104,096 $ 104,399 $ (127 ) $ 104,272 |
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 (in thousands) Remainder of 2020 $ 127 2021 253 2022 253 2023 253 2024 253 2025 253 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Components of Inventories | June 27, 2020 December 28, 2019 (in thousands) Current inventory: Raw materials $ 62,475 $ 61,522 Work in process 15,161 12,631 Finished goods 30,887 31,885 Total current inventory 108,523 106,038 Long term inventory 20,358 10,048 Total inventory $ 128,881 $ 116,086 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Leases [Abstract] | |
ROU assets and lease liabilities | As of June 27, 2020, and December 28, 2019 total ROU assets and lease liabilities were as follows: Classification Leases June 27, 2020 December 28, 2019 (in thousands) Right- of-use Operating lease assets Operating right-of-use $ 61,420 $ 53,758 Finance lease assets Property, plant and equipment, net 5,814 2,531 Lease Liabilities Current Operating lease liabilities Current operating lease liabilities 7,444 5,168 Finance lease liabilities Accrued expenses and other current liabilities 1,807 546 Non-current Operating lease liabilities Non-current 62,896 53,940 Finance lease liabilities Other liabilities 4,056 2,042 |
Schedule of gross value and accumulated depreciation of right of use assets | The gross value and accumulated depreciation of ROU assets related to finance leases as of June 27, 2020 and December 28, 2019 were as follows: Finance Leases June 27, 2020 December 28, 2019 (in thousands) Gross value $ 6,694 $ 2,837 Accumulated amortization (880 ) (306 ) Carrying value $ 5,814 $ 2,531 |
Components of lease cost | Components of lease cost for the thirteen and twenty-six Lease Cost Thirteen weeks ended Twenty-six June 27, June 29, June 27, June 29, 2020 2019 2020 2019 (in thousands) (in thousands) Operating lease cost $ 2,437 $ 1,177 $ 4,852 $ 2,305 Variable lease costs not included in liability 487 273 972 472 Finance lease cost: Amortization of right-of-use 440 43 573 43 Interest on lease liabilities 53 52 75 52 Total finance lease cost $ 493 $ 95 $ 648 $ 95 |
Maturities of lease liabilities | Maturities of lease liabilities as of June 27, 2020 were as follows: Operating Finance Leases Weighted-Average Remaining Term Operating Leases Finance Leases (in thousands) 2020 $ 4,843 $ 987 2021 9,903 1,982 2022 9,761 1,982 2023 9,709 965 2024 9,470 265 Thereafter 39,523 23 Total lease payments 83,209 6,204 Less imputed interest (based on 3.5% (12,869 ) (341 ) Present value of lease liability $ 70,340 $ 5,863 9.3 3.2 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
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 Twenty-six June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 (in thousands, except per share data) (in thousands, except per share data) Net income $ 60,141 $ 27,856 $ 78,375 $ 51,550 Allocation of net income for basic: Class A Common Stock $ 47,930 $ 20,639 $ 61,612 $ 38,161 Class B Common Stock 11,836 6,964 16,237 12,908 Unvested participating shares 375 253 526 481 $ 60,141 $ 27,856 $ 78,375 $ 51,550 Weighted average number of shares for basic: Class A Common Stock 9,720 8,648 9,572 8,627 Class B Common Stock* 2,400 2,918 2,523 2,918 Unvested participating shares 76 106 82 109 12,196 11,672 12,177 11,654 Net income per share for basic: Class A Common Stock $ 4.93 $ 2.39 $ 6.44 $ 4.42 Class B Common Stock $ 4.93 $ 2.39 $ 6.44 $ 4.42 * Change in Class B Common Stock resulted from the conversion of 100,000 shares to Class A Common Stock on August 8, 2019, 145,000 shares to Class A Common Stock on December 13, 2019, 150,000 shares to Class A Common Stock on March 11, 2020 and 215,000 shares to Class A Common Stock on May 6, 2020 with the ending number of shares reflecting the weighted average for the period. |
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 June 27, 2020 June 29, 20 19 Earnings to Common Shares EPS Earnings to Common Shares EPS (in thousands, except per share data) As reported - basic $ 47,930 9,720 $ 4.93 $ 20,639 8,648 $ 2.39 Add: effect of dilutive potential common shares Share-based awards — 138 — 118 Class B Common Stock 11,836 2,400 6,964 2,918 Net effect of unvested participating shares 4 — 2 — Net income per common share - diluted $ 59,770 12,258 $ 4.88 $ 27,605 11,684 $ 2.36 Twenty-six June 27, 2020 June 29, 20 19 Earnings to Common Shares EPS Earnings to Common Shares EPS (in thousands, except per share data) As reported - basic $ 61,612 9,572 $ 6.44 $ 38,161 8,627 $ 4.42 Add: effect of dilutive potential common shares Share-based awards — 126 — 115 Class B Common Stock 16,237 2,523 12,908 2,918 Net effect of unvested participating shares 5 — 5 — Net income per common share - diluted $ 77,854 12,221 $ 6.37 $ 51,074 11,660 $ 4.38 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Significant Components of Provisions for Income Taxes | Thirteen weeks ended June 27, June 29 , (in thousands) Summary of income tax provision Tax provision based on net income $ 20,699 $ 10,499 Benefit of ASU 2016-09 (2,335 ) (253 ) Total income tax provision $ 18,364 $ 10,246 Twenty-six June 27, June 29 , (in thousands) Summary of income tax provision Tax provision based on net income $ 25,704 $ 18,408 Benefit of ASU 2016-09 (4,339 ) (2,028 ) Total income tax provision $ 21,365 $ 16,380 |
Common Stock and Share-Based _2
Common Stock and Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
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 Remaining Aggregate Intrinsic (in thousands) Outstanding at December 28, 2019 315,678 $ 186.53 Granted 25,870 383.22 Forfeited (2,595 ) 241.84 Expired — — Exercised (57,926 ) 120.81 Outstanding at June 27, 2020 281,027 $ 217.67 6.14 $ 97,280 Exercisable at June 27, 2020 92,818 $ 185.56 5.11 $ 35,110 Vested and expected to vest at 256,784 $ 216.12 6.09 $ 89,287 |
Stock-Based Compensation Expense Included in Operating Expenses | The following table provides information regarding stock-based compensation expense included in operating expenses in the accompanying consolidated statements of comprehensive income: Thirteen weeks ended Twenty-six June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 (in thousands) (in thousands) Amounts included in advertising, promotional and selling expenses $ 1,147 $ 1,121 $ 1,852 $ 1,598 Amounts included in general and administrative expenses 3,390 2,624 5,251 4,212 Total stock-based compensation expense $ 4,537 $ 3,745 $ 7,103 $ 5,810 |
Weighted Average Assumptions used to Estimate Fair Value of Stock Options | Weighted average assumptions used to estimate fair values of stock options on the date of grants are as follows: 2020 Expected Volatility 32.6 % Risk-free interest rate 1.09 % Expected Dividends 0.0 % Exercise factor 2.12 times Discount for post-vesting restrictions 0.0 % |
Summary of Vesting Activities of Shares Issued Under Investment Share Program and Restricted Stock Awards | The following table summarizes vesting activities of shares issued under the investment share program and restricted stock awards: Number of Shares Weighted Average Fair Value Non-vested 122,142 $ 213.52 Granted 40,316 325.12 Vested (45,169 ) 213.12 Forfeited (3,318 ) 241.05 Non-vested 113,971 $ 252.36 |
COVID-19 Pandemic - Additional
COVID-19 Pandemic - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2020 | Mar. 28, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Reductions in net revenue and increases in other costs | |||||
Net effect of COVID-19 on revenue, cost of goods sold and operating expense | $ 78,769 | $ 37,932 | $ 100,301 | $ 67,375 | |
Cost of goods sold | 242,514 | 159,405 | 425,106 | 286,516 | |
Operating expenses | 130,855 | $ 121,070 | 257,296 | $ 216,167 | |
COVID-19 Pandemic [Member] | |||||
Reductions in net revenue and increases in other costs | |||||
Net effect of COVID-19 on revenue, cost of goods sold and operating expense | $ 4,100 | $ 10,000 | 14,100 | ||
Reduction in net revenue | 5,800 | ||||
Other direct costs | 8,300 | ||||
Cost of goods sold | 5,600 | ||||
Operating expenses | $ 2,700 |
Dogfish Head Brewery Transact_3
Dogfish Head Brewery Transaction - Additional Information (Detail) - USD ($) $ in Thousands | Jul. 03, 2019 | Jun. 27, 2020 | Dec. 28, 2019 | May 08, 2019 |
Excess of the purchase price paid over the estimated fair values of the assets and liabilities assumed | $ 112,529 | $ 112,529 | ||
Dogfish Head Brewery [Member] | ||||
Business combination fair value | $ 317,700 | |||
Business acquisition cash transferred | $ 173,000 | |||
Escrow Deposit | $ 158,400 | |||
Dogfish Head Brewery [Member] | ||||
Business combination consideration | 336,000 | |||
Business combination fair value | 317,736 | |||
Business acquisition cash transferred | 172,993 | |||
Business acquisition value of shares issued | 162,999 | |||
Fairvalue of trade name | 98,500 | |||
Excess of the purchase price paid over the estimated fair values of the assets and liabilities assumed | 108,846 | |||
Deferred tax liabilities assumed | 18,437 | |||
Dogfish Head Brewery [Member] | Interest Rate Adjustment [Member] | ||||
Interest expense rate | 3.00% | |||
Dogfish Head Brewery [Member] | Income Tax Rate Adjustment [Member] | ||||
Statutory income tax rate | 25.60% | |||
Dogfish Head Brewery [Member] | Customer Relationships [Member] | ||||
Estimated fair value | $ 3,800 | $ 3,800 | ||
Estimated use full life | 15 years | |||
Dogfish Head Brewery [Member] | Trade Names [Member] | ||||
Fairvalue of trade name | $ 98,500 | $ 98,500 | ||
Restricted Common Class A [Member] | Dogfish Head Brewery [Member] | ||||
Business acquisition value of shares issued | $ 163,000 | |||
Shares held under escrow deposit | 127,146 | |||
Shares held under escrow deposit market Value | $ 48,300 | |||
Business acquisition Shares issued | 429,291 | 429,291 |
Dogfish Head Brewery Transact_4
Dogfish Head Brewery Transaction - Fair value of assets acquired and liabilities assumed (Detail) - USD ($) $ in Thousands | Jul. 03, 2019 | Jun. 27, 2020 | Dec. 28, 2019 |
Goodwill | $ 112,529 | $ 112,529 | |
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 | $ 317,736 |
Dogfish Head Brewery Transact_5
Dogfish Head Brewery Transaction - Unaudited proforma information (Detail) - Line of Credit [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Net revenue | $ 452,138 | $ 347,015 | $ 782,703 | $ 623,755 |
Net income | $ 60,141 | $ 30,359 | $ 78,375 | $ 55,022 |
Basic earnings per share | $ 4.93 | $ 2.51 | $ 6.44 | $ 4.55 |
Diluted earnings per share | $ 4.88 | $ 2.46 | $ 6.37 | $ 4.48 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of intangible assets (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 27, 2020 | Dec. 28, 2019 | |
Gross Carrying Value | $ 104,349 | $ 104,399 |
Accumulated Amortization | (253) | (127) |
Net Book Value | 104,096 | 104,272 |
Trade Names | ||
Gross Carrying Value | 100,549 | 100,599 |
Net Book Value | $ 100,549 | 100,599 |
Customer Relationships | ||
Estimated Useful Life | 15 years | |
Gross Carrying Value | $ 3,800 | 3,800 |
Accumulated Amortization | (253) | (127) |
Net Book Value | $ 3,547 | $ 3,673 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of amortization expense (Detail) $ in Thousands | Jun. 27, 2020USD ($) |
Remainder of 2020 | $ 127 |
2021 | 253 |
2022 | 253 |
2023 | 253 |
2024 | 253 |
2025 | $ 253 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 27, 2020 | Jun. 27, 2020 | Jul. 03, 2019 | |
Customer Relationships | |||
Useful life Of Finite Lived Intangibles | 15 years | ||
Dogfish Head Brewery [Member] | |||
Business Combination Indefinite Lived Intangible Assets Assumed | $ 98,500,000 | ||
Dogfish Head Brewery [Member] | Customer Relationships | |||
Business Combination Finite Lived Intangible Assets Assumed | $ 3,800,000 | $ 3,800,000 | 3,800,000 |
Useful life Of Finite Lived Intangibles | 15 years | ||
Intangible Assets Amortization | 63,000 | $ 126,000 | |
Dogfish Head Brewery [Member] | Trade Names | |||
Business Combination Indefinite Lived Intangible Assets Assumed | $ 98,500,000 | $ 98,500,000 | $ 98,500,000 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | Dec. 28, 2019 | |
Sales to domestic distributors as a percentage of total sales | 95.00% | 95.00% | 95.00% | 95.00% | |
Sales to foreign distributors as a percentage of total sales | 4.00% | 4.00% | 4.00% | 4.00% | |
Sales to retail locations as a percentage of total sales | 1.00% | 1.00% | 1.00% | 1.00% | |
Deferred revenue related to product shipped | $ 9 | $ 9 | $ 7 | ||
Reduction in federal excise taxes | 3.2 | $ 2.1 | 5.7 | $ 3.8 | |
Reimbursements for discounts to distributors | 20.4 | 13.5 | 28.6 | 19.7 | |
Accrued federal excise taxes, current | 29.8 | 29.8 | |||
Distributors [Member] | |||||
Marketing and Advertising Expense | 5 | 5.9 | 9.5 | 10.6 | |
Reductions to net revenue | $ 4.8 | $ 3.6 | $ 9 | $ 6.7 |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands | Jun. 27, 2020 | Dec. 28, 2019 |
Current inventory: | ||
Raw materials | $ 62,475 | $ 61,522 |
Work in process | 15,161 | 12,631 |
Finished goods | 30,887 | 31,885 |
Total current inventory | 108,523 | 106,038 |
Long term inventory | 20,358 | 10,048 |
Total inventory | $ 128,881 | $ 116,086 |
Leases - ROU assets and lease l
Leases - ROU assets and lease liabilities (Detail) - USD ($) $ in Thousands | Jun. 27, 2020 | Dec. 28, 2019 |
Right-of-use assets | ||
Operating lease assets | $ 61,420 | $ 53,758 |
Finance lease assets | 5,814 | 2,531 |
Current | ||
Operating lease liabilities | 7,444 | 5,168 |
Non-current | ||
Operating lease liabilities | 62,896 | 53,940 |
Operating Right Of Use Assets [Member] | ||
Right-of-use assets | ||
Operating lease assets | 61,420 | 53,758 |
Property, Plant and Equipment [Member] | ||
Right-of-use assets | ||
Finance lease assets | 5,814 | 2,531 |
Current Operating Lease Liabilities [Member] | ||
Current | ||
Operating lease liabilities | 7,444 | 5,168 |
Accrued Expenses And Other Current Liabilities [Member] | ||
Current | ||
Finance lease liabilities | 1,807 | 546 |
Non Current Operating Lease Liabilities [Member] | ||
Non-current | ||
Operating lease liabilities | 62,896 | 53,940 |
Other Liabilities [Member] | ||
Non-current | ||
Finance lease liabilities | $ 4,056 | $ 2,042 |
Leases - Gross Value of Accumul
Leases - Gross Value of Accumulated Depreciation Of Right Of Use Assets (Details). - USD ($) $ in Thousands | Jun. 27, 2020 | Dec. 28, 2019 |
Finance Lease, Gross value | $ 6,694 | $ 2,837 |
Finance Lease, Accumulated amortization | (880) | (306) |
Finance Lease, Carrying value | $ 5,814 | $ 2,531 |
Leases - Components of lease co
Leases - Components of lease cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Lease, Cost [Abstract] | ||||
Operating lease cost | $ 2,437 | $ 1,177 | $ 4,852 | $ 2,305 |
Variable lease costs not included in liability | 487 | 273 | 972 | 472 |
Finance lease cost: | ||||
Amortization of right-of-use asset | 440 | 43 | 573 | 43 |
Interest on lease liabilities | 53 | 52 | 75 | 52 |
Total finance lease cost | $ 493 | $ 95 | $ 648 | $ 95 |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities (Detail) $ in Thousands | Jun. 27, 2020USD ($) |
Operating Leases | |
2020 | $ 4,843 |
2021 | 9,903 |
2022 | 9,761 |
2023 | 9,709 |
2024 | 9,470 |
Thereafter | 39,523 |
Total lease payments | 83,209 |
Less imputed interest | (12,869) |
Present value of lease liability | $ 70,340 |
Operating Lease, Weighted Average Discount Rate, Percent | 3.50% |
Operating Lease Weighted-Average Remaining Term | |
Lease Weighted Average Remaining Lease Term | 9 years 3 months 18 days |
Finance Lease Liabilities, Payments, Due | |
2020 | $ 987 |
2021 | 1,982 |
2022 | 1,982 |
2023 | 965 |
2024 | 265 |
Thereafter | 23 |
Total lease payments | 6,204 |
Less imputed interest | (341) |
Present value of lease liability | $ 5,863 |
Finance Lease, Weighted Average Remaining Lease Term | 3 years 2 months 12 days |
Finance Lease, Weighted Average Discount Rate, Percent | 3.50% |
Net Income per Share - Computat
Net Income per Share - Computation of Earnings Per Share, Basic (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 27, 2020 | Mar. 28, 2020 | Jun. 29, 2019 | Mar. 30, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
Net income | $ 60,141 | $ 18,234 | $ 27,856 | $ 23,694 | $ 78,375 | $ 51,550 |
Allocation of net income for basic: | ||||||
Allocation of net income for basic common stock | $ 60,141 | $ 27,856 | $ 78,375 | $ 51,550 | ||
Weighted average number of shares for basic: | ||||||
Weighted-average number of common shares — basic | 12,196 | 11,672 | 12,177 | 11,654 | ||
Net income per share for basic: | ||||||
Net income per common share — basic | $ 4.93 | $ 2.39 | $ 6.44 | $ 4.42 | ||
Common Class A | ||||||
Allocation of net income for basic: | ||||||
Allocation of net income for basic common stock | $ 47,930 | $ 20,639 | $ 61,612 | $ 38,161 | ||
Weighted average number of shares for basic: | ||||||
Weighted-average number of common shares — basic | 9,720 | 8,648 | 9,572 | 8,627 | ||
Net income per share for basic: | ||||||
Net income per common share — basic | $ 4.93 | $ 2.39 | $ 6.44 | $ 4.42 | ||
Common Class B | ||||||
Allocation of net income for basic: | ||||||
Allocation of net income for basic common stock | $ 11,836 | $ 6,964 | $ 16,237 | $ 12,908 | ||
Weighted average number of shares for basic: | ||||||
Weighted-average number of common shares — basic | 2,400 | 2,918 | 2,523 | 2,918 | ||
Net income per share for basic: | ||||||
Net income per common share — basic | $ 4.93 | $ 2.39 | $ 6.44 | $ 4.42 | ||
Unvested participating shares | ||||||
Allocation of net income for basic: | ||||||
Allocation of net income for basic unvested participating shares | $ 375 | $ 253 | $ 526 | $ 481 | ||
Weighted average number of shares for basic: | ||||||
Weighted-average number of common shares — basic | 76 | 106 | 82 | 109 |
Net Income per Share - Comput_2
Net Income per Share - Computation of Earnings Per Share, Basic (Parenthetical) (Detail) - shares | May 06, 2020 | Mar. 11, 2020 | Dec. 13, 2019 | Aug. 08, 2019 |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Conversion of Class B Common Stock into Class A Common Stock | 215,000 | 150,000 | 145,000 | 100,000 |
Net Income per Share - Comput_3
Net Income per Share - Computation of Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||
Allocation of net income for basic common stock | $ 60,141 | $ 27,856 | $ 78,375 | $ 51,550 |
Add: effect of dilutive potential common shares Share-based awards | 138 | 118 | 126 | 115 |
Earnings to Common Shareholders, Net effect of unvested participating shares | $ 4 | $ 2 | $ 5 | $ 5 |
Earnings to Common Shareholders, Net income per common share — diluted | $ 59,770 | $ 27,605 | $ 77,854 | $ 51,074 |
Weighted-average number of common shares — basic | 12,196 | 11,672 | 12,177 | 11,654 |
Weighted-average number of common shares — diluted | 12,258 | 11,684 | 12,221 | 11,660 |
Net income per common share — basic | $ 4.93 | $ 2.39 | $ 6.44 | $ 4.42 |
Net income per common share — diluted | $ 4.88 | $ 2.36 | $ 6.37 | $ 4.38 |
Common Class A | ||||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||
Allocation of net income for basic common stock | $ 47,930 | $ 20,639 | $ 61,612 | $ 38,161 |
Weighted-average number of common shares — basic | 9,720 | 8,648 | 9,572 | 8,627 |
Net income per common share — basic | $ 4.93 | $ 2.39 | $ 6.44 | $ 4.42 |
Common Class B | ||||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||
Allocation of net income for basic common stock | $ 11,836 | $ 6,964 | $ 16,237 | $ 12,908 |
Class B Common Stock | 2,400 | 2,918 | 2,523 | 2,918 |
Earnings to Common Shareholders, Class B Common Stock | $ 11,836 | $ 6,964 | $ 16,237 | $ 12,908 |
Weighted-average number of common shares — basic | 2,400 | 2,918 | 2,523 | 2,918 |
Net income per common share — basic | $ 4.93 | $ 2.39 | $ 6.44 | $ 4.42 |
Net income per common share — diluted | $ 4.88 | $ 2.36 | $ 6.37 | $ 4.38 |
Net Income per Share - Addition
Net Income per Share - Additional Information (Detail) | Mar. 01, 2020 | Mar. 01, 2019 | Jan. 01, 2019 | Jun. 27, 2020employeeshares | Jun. 29, 2019shares | Jun. 27, 2020employeeshares | Jun. 29, 2019shares |
Investment Share Program | |||||||
Earnings Per Share Note [Line Items] | |||||||
Vesting period | 5 years | ||||||
Investment Share Program | Maximum | |||||||
Earnings Per Share Note [Line Items] | |||||||
Requirement tenure of employee for investment share program, purchase shares at discount | 2 years | ||||||
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 | 4 years | 4 years | 5 years | ||||
Common Class A | |||||||
Earnings Per Share Note [Line Items] | |||||||
Antidilutive securities excluded from computation of earnings per share | 23,000 | 10,000 | 16,000 | 6,000 | |||
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 | 18,000 | ||||||
Common Class A | Performance-Based Awards | Key employee | |||||||
Earnings Per Share Note [Line Items] | |||||||
Number Of Employees | employee | 1 | 1 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | 6 Months Ended | |
Jun. 27, 2020USD ($)vendor | Dec. 28, 2019USD ($) | |
Commitments and Contingencies Disclosure [Line Items] | ||
Contractual obligations | $ 225,100 | |
Prepaid brewing service fees current | 22,693 | $ 12,077 |
Prepaid Brewing Fees [Member] | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Prepaid brewing service fees current | 6,400 | |
Prepaid brewing service fess non current | 22,800 | |
Prepaid brewing service fees | 29,200 | |
Equipment and machinery | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Contractual obligations | 61,500 | |
Lease commitments outstanding | 12,300 | |
Third Party Brewery | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Capital improvement | $ 8,000 | |
Minimum | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Company's current brewing and packaging percentage | 60.00% | |
Barley, Wheat and Malt | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Number of suppliers | vendor | 3 | |
Purchase commitments outstanding | $ 21,300 | |
Annual commitement for purchases | 1,000 | |
Hops | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Purchase commitments | 31,000 | |
Hops | Barley and Wheat | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Contractual obligations | 52,300 | |
Advertising contract [Member] | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Contractual obligations | 62,600 | |
Other Ingredients [Member] | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Contractual obligations | 35,800 | |
Other Commitments | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Contractual obligations | $ 12,900 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Benefit (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Summary of income tax provision | ||||
Tax provision based on net income | $ 20,699 | $ 10,499 | $ 25,704 | $ 18,408 |
Benefit of ASU 2016-09 | (2,335) | (253) | (4,339) | (2,028) |
Total income tax provision | $ 18,364 | $ 10,246 | $ 21,365 | $ 16,380 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | Dec. 28, 2019 | |
Income Taxes [Line Items] | |||||
Accrued interest and penalties | $ 0.2 | $ 0.2 | $ 0.1 | ||
Unrecognized income tax benefits | $ 0.8 | $ 0.8 | $ 0.8 | ||
Effective Income Tax Rate Reconciliation, Percent, Total | 23.40% | 26.90% | 21.40% | 24.10% | |
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 Thousands | Mar. 12, 2020 | Jun. 27, 2020 | Jun. 29, 2019 | Mar. 28, 2020 |
Debt Instrument [Line Items] | ||||
Repayment of Line of Credit | $ 100,000 | $ 48,500 | ||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Line of credit, current borrowing capacity | $ 150,000 | |||
Line of credit, expiration date | Mar. 31, 2023 | |||
Line of credit | $ 100,000 | |||
Line of credit, unused balance | $ 150,000 | |||
Debt instrument stated percentage | 1.15% | |||
Debt instrument variable rate basis | LIBOR rate of 0.70% plus 0.45% | |||
Repayment of Line of Credit | $ 100,000 | |||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument basis spread on variable rate | 0.45% |
Fair Value Measures - Additiona
Fair Value Measures - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 27, 2020 | Dec. 28, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 86,716 | $ 36,670 |
Money market fund | $ 83,000 | $ 29,500 |
Common Stock and Stock-Based Co
Common Stock and Stock-Based Compensation - Summary of Stock Options under Employee Equity Incentive Plan and Stock Option Plan for Non-Employee Directors (Detail) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 27, 2020 | |
Shares | |
Outstanding at beginning of period | 315,678 |
Granted | 25,870 |
Forfeited | (2,595) |
Exercised | (57,926) |
Outstanding at end of period | 281,027 |
Exercisable at end of period | 92,818 |
Vested and expected to vest at end of period | 256,784 |
Weighted-Average Exercise Price | |
Outstanding at beginning of period | $ 186.53 |
Granted | 383.22 |
Forfeited | 241.84 |
Exercised | 120.81 |
Outstanding at end of period | 217.67 |
Exercisable at end of period | 185.56 |
Vested and expected to vest at end of period | $ 216.12 |
Weighted-Average Remaining Contractual Term | |
Outstanding at end of period | 6 years 1 month 20 days |
Exercisable at end of period | 5 years 1 month 9 days |
Vested and expected to vest at end of period | 6 years 1 month 2 days |
Aggregate Intrinsic Value | |
Outstanding at end of period | $ 97,280 |
Exercisable at end of period | 35,110 |
Vested and expected to vest at end of period | $ 89,287 |
Common Stock and Stock-Based _2
Common Stock and Stock-Based Compensation - Summary Of Weighted Average Assumptions used to Estimate Fair Value of Stock Options (Detail) | 6 Months Ended |
Jun. 27, 2020Times | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility | 32.60% |
Risk-free interest rate | 1.09% |
Expected dividends | 0.00% |
Exercise factor | 2.12 |
Discount for post-vesting restrictions | 0.00% |
Common Stock and Stock-Based _3
Common Stock and Stock-Based Compensation - Summary of Vesting Activities for Investment Share Program and Restricted Stock Awards (Detail) | 6 Months Ended |
Jun. 27, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested at beginning of period | shares | 122,142 |
Granted | shares | 40,316 |
Vested | shares | (45,169) |
Forfeited | shares | (3,318) |
Non-vested at end of period | shares | 113,971 |
Non-vested at beginning of period | $ / shares | $ 213.52 |
Granted | $ / shares | 325.12 |
Vested | $ / shares | 213.12 |
Forfeited | $ / shares | 241.05 |
Non-vested at end of period | $ / shares | $ 252.36 |
Common Stock and Share-Based _3
Common Stock and Share-Based Compensation - Additional Information (Detail) - $ / shares | May 14, 2020 | Mar. 02, 2020 | Mar. 01, 2020 | Jan. 31, 2020 | Mar. 01, 2019 | Jan. 01, 2019 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Other than options granted in period | 40,316 | ||||||||
Stock option outstanding | 281,027 | 315,678 | |||||||
Weighted average fair value of stock awards | $ 325.12 | ||||||||
Performance-Based Awards | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock option outstanding | 3,000 | 40,000 | |||||||
Non-Employee Director | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options granted in period | 2,900 | 978 | |||||||
Options granted in period - weighted average fair value | $ 198.14 | $ 146.87 | |||||||
Restricted Stock Awards | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 4 years | 4 years | 5 years | ||||||
Other than options granted in period | 15,011 | ||||||||
Weighted average fair value of stock awards | $ 370.79 | ||||||||
Restricted Stock Awards | Chief Executive Officer | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting Year | 2024 | ||||||||
Other than options granted in period | 2,696 | ||||||||
Weighted average fair value of stock awards | $ 370.79 | ||||||||
Employee Stock Compensation Plan | Performance-Based Awards | Senior Management | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options granted in period | 14,962 | ||||||||
Options granted in period - weighted average fair value | $ 142.25 | ||||||||
Employee Stock Compensation Plan | Performance-Based Awards | Chief Executive Officer | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options granted in period | 7,030 | ||||||||
Options granted in period - weighted average fair value | $ 142.23 | ||||||||
Employee Stock Compensation Plan | Investment Share Program | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares employees elected to purchase | 9,127 | ||||||||
Weighted average fair value of stock awards | $ 169.43 | ||||||||
Restricted Stock And Performance Based Awards | Senior Management | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Other than options granted in period | 13,482 |
Common Stock and Share-Based _4
Common Stock and Share-Based Compensation - Stock-Based Compensation Expense Included in Operating Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 4,537 | $ 3,745 | $ 7,103 | $ 5,810 |
Advertising, promotional and selling expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 1,147 | 1,121 | 1,852 | 1,598 |
General and administrative expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 3,390 | $ 2,624 | $ 5,251 | $ 4,212 |
Employee Retirement Plans - Add
Employee Retirement Plans - Additional Information (Detail) - USD ($) $ in Millions | Apr. 30, 2019 | Dec. 28, 2019 |
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 | $ 3.9 | |
Benefit obligation at end of fiscal year | $ 6.7 | |
Union Number 1199 Pension Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Estimated cost of termination of retirement pension plan | $ 2.3 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | 3 Months Ended | 6 Months Ended |
Jun. 27, 2020USD ($) | Jun. 27, 2020USD ($) | |
Related Party Transaction [Line Items] | ||
Total payments due | $ 83,209,000 | $ 83,209,000 |
Transaction with related party expenses | $ 10,000 | |
Dogfish Head Brewery | ||
Related Party Transaction [Line Items] | ||
Lease term of contract | 10 years | 10 years |
Total payments due | $ 3,600,000 | $ 3,600,000 |
Related party expense | $ 91,000 | $ 182,000 |