Cover Page
Cover Page - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2020 | Feb. 12, 2021 | Jun. 27, 2020 | |
Document Information [Line Items] | |||
Document Transition Report | false | ||
Document Annual Report | true | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 26, 2020 | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Registrant Name | THE BOSTON BEER COMPANY, INC. | ||
Entity Interactive Data Current | Yes | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Emerging Growth Company | false | ||
Entity File Number | 1-14092 | ||
Entity Incorporation, State or Country Code | MA | ||
Entity Tax Identification Number | 04-3284048 | ||
Entity Address, Address Line One | One Design Center Place, Suite 850 | ||
Entity Address, City or Town | Boston | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 02210 | ||
City Area Code | 617 | ||
Local Phone Number | 368-5000 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
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 | ||
Entity Public Float | $ 5,952,530 | ||
Common Class A | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 10,088,372 | ||
Common Class B | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 2,177,983 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Revenue | $ 1,851,813 | $ 1,329,108 | $ 1,057,495 |
Less excise taxes | 115,381 | 79,284 | 61,846 |
Net revenue | 1,736,432 | 1,249,824 | 995,649 |
Cost of goods sold | 921,980 | 635,658 | 483,406 |
Gross profit | 814,452 | 614,166 | 512,243 |
Operating expenses: | |||
Advertising, promotional and selling expenses | 447,568 | 355,613 | 304,853 |
General and administrative expenses | 118,211 | 112,730 | 90,857 |
Impairment of assets | 4,466 | 911 | 652 |
Total operating expenses | 570,245 | 469,254 | 396,362 |
Operating income | 244,207 | 144,912 | 115,881 |
Other income (expense), net: | |||
Interest (expense) income, net | (199) | 647 | 1,292 |
Other income (expense), net | 222 | (1,189) | (887) |
Total other income (expense), net | 23 | (542) | 405 |
Income before provision for income tax | 244,230 | 144,370 | 116,286 |
Provision for income taxes | 52,270 | 34,329 | 23,623 |
Net income | $ 191,960 | $ 110,041 | $ 92,663 |
Net income per common share - basic | $ 15.73 | $ 9.26 | $ 7.90 |
Net income per common share - diluted | $ 15.53 | $ 9.16 | $ 7.82 |
Weighted-average number of common shares - basic | 12,204 | 11,886 | 11,733 |
Weighted-average number of common shares - diluted | 12,283 | 11,908 | 11,734 |
Net income | $ 191,960 | $ 110,041 | $ 92,663 |
Other comprehensive income (loss) , net of tax: | |||
Currency translation adjustment | 25 | 47 | 25 |
Defined benefit plans liability adjustment | 1,392 | (519) | 277 |
Impact of ASU 2018-02 | 191,960 | 110,041 | 92,663 |
Total other comprehensive income (loss), net of tax: | 1,417 | (472) | 91 |
Comprehensive income | $ 193,377 | $ 109,569 | $ 92,754 |
Common Class A | |||
Other income (expense), net: | |||
Net income per common share - basic | $ 15.73 | $ 9.26 | $ 7.90 |
Weighted-average number of common shares - basic | 9,734 | 8,908 | 8,620 |
Common Class B | |||
Other income (expense), net: | |||
Net income per common share - basic | $ 15.73 | $ 9.26 | $ 7.90 |
Weighted-average number of common shares - basic | 2,396 | 2,873 | 3,002 |
Revision of Prior Period, Change in Accounting Principle, Adjustment | ASU 2018-02 | |||
Other comprehensive income (loss) , net of tax: | |||
Impact of ASU 2018-02 | $ (211) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 26, 2020 | Dec. 28, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 163,282 | $ 36,670 |
Accounts receivable | 78,358 | 54,404 |
Inventories | 130,910 | 106,038 |
Prepaid expenses and other current assets | 30,230 | 12,077 |
Income tax receivable | 10,393 | 9,459 |
Total current assets | 413,173 | 218,648 |
Property, plant and equipment, net | 623,083 | 541,068 |
Operating right-of-use assets | 58,483 | 53,758 |
Goodwill | 112,529 | 112,529 |
Intangible assets | 103,930 | 104,272 |
Other assets | 67,627 | 23,782 |
Total assets | 1,378,825 | 1,054,057 |
Current Liabilities: | ||
Accounts payable | 121,647 | 76,374 |
Accrued expenses and other current liabilities | 129,544 | 99,107 |
Current operating lease liabilities | 8,232 | 5,168 |
Total current liabilities | 259,423 | 180,649 |
Deferred income taxes | 92,665 | 75,010 |
Non-current operating lease liabilities | 59,171 | 53,940 |
Other liabilities | 10,599 | 8,822 |
Total liabilities | 421,858 | 318,421 |
Commitments and Contingencies (See Note L) | ||
Stockholders’ Equity: | ||
Additional paid-in capital | 599,737 | 571,784 |
Accumulated other comprehensive loss, net of tax | (252) | (1,669) |
Retained earnings | 357,360 | 165,400 |
Total stockholders’ equity | 956,967 | 735,636 |
Total liabilities and stockholders’ equity | 1,378,825 | 1,054,057 |
Common Class A | ||
Stockholders’ Equity: | ||
Common Stock | 100 | 94 |
Common Class B | ||
Stockholders’ Equity: | ||
Common Stock | $ 22 | $ 27 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 26, 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 | 10,004,681 | 9,370,526 |
Common Stock, shares outstanding | 10,004,681 | 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 | 2,177,983 | 2,672,983 |
Common Stock, shares outstanding | 2,177,983 | 2,672,983 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common StockCommon Class A | Common StockCommon Class B | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Income, net of tax | Accumulated Other Comprehensive (Loss) Income, net of taxCumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment |
Balance at Dec. 30, 2017 | $ 423,523 | $ 86 | $ 30 | $ 372,590 | $ (1,288) | $ 52,105 | |||
Balance (ASU 2014-09) at Dec. 30, 2017 | $ (982) | $ (982) | |||||||
Balance (ASU 2018-02) at Dec. 30, 2017 | $ (211) | 211 | |||||||
Balance (in shares) at Dec. 30, 2017 | 8,603,000 | 3,018,000 | |||||||
Net income | 92,663 | 92,663 | |||||||
Stock options exercised and restricted shares activities | 23,088 | $ 2 | 23,086 | ||||||
Stock options exercised and restricted shares activities (in shares) | 227,000 | ||||||||
Stock-based compensation expense | 10,035 | 10,035 | |||||||
Repurchase of Class A Common Stock | $ (88,312) | $ (3) | (88,309) | ||||||
Repurchase of Class A Common Stock (in shares) | (349,691) | (350,000) | |||||||
Conversion from Class B to Class A | $ 1 | $ (1) | |||||||
Conversion from Class B to Class A (in shares) | 100,000 | (100,000) | |||||||
Defined benefit plans liability adjustment, net of tax | $ 277 | 277 | |||||||
Currency translation adjustment | 25 | 25 | |||||||
Balance at Dec. 29, 2018 | 460,317 | $ 86 | $ 29 | 405,711 | (1,197) | 55,688 | |||
Balance (ASU 2014-09) at Dec. 29, 2018 | $ (329) | $ (329) | |||||||
Balance (in shares) at Dec. 29, 2018 | 8,580,000 | 2,918,000 | |||||||
Net income | 110,041 | 110,041 | |||||||
Stock options exercised and restricted shares activities | 8,999 | $ 1 | 8,998 | ||||||
Stock options exercised and restricted shares activities (in shares) | 116,000 | ||||||||
Stock-based compensation expense | 12,337 | 12,337 | |||||||
Shares issued in connection with Dogfish Head merger | 144,743 | $ 5 | 144,738 | ||||||
Shares issued in connection with Dogfish Head merger (in shares) | 430,000 | ||||||||
Conversion from Class B to Class A | $ 2 | $ (2) | |||||||
Conversion from Class B to Class A (in shares) | 245,000 | (245,000) | |||||||
Defined benefit plans liability adjustment, net of tax | (519) | (519) | |||||||
Currency translation adjustment | 47 | 47 | |||||||
Balance at Dec. 28, 2019 | 735,636 | $ 94 | $ 27 | 571,784 | (1,669) | 165,400 | |||
Balance (in shares) at Dec. 28, 2019 | 9,371,000 | 2,673,000 | |||||||
Net income | 191,960 | 191,960 | |||||||
Stock options exercised and restricted shares activities | $ 12,672 | $ 1 | 12,671 | ||||||
Stock options exercised and restricted shares activities (in shares) | 97,638 | 139,000 | |||||||
Stock-based compensation expense | $ 15,282 | 15,282 | |||||||
Conversion from Class B to Class A | $ 5 | $ (5) | |||||||
Conversion from Class B to Class A (in shares) | 495,000 | (495,000) | |||||||
Defined benefit plans liability adjustment, net of tax | 1,392 | 1,392 | |||||||
Currency translation adjustment | 25 | 25 | |||||||
Balance at Dec. 26, 2020 | $ 956,967 | $ 100 | $ 22 | $ 599,737 | $ (252) | $ 357,360 | |||
Balance (in shares) at Dec. 26, 2020 | 10,005,000 | 2,178,000 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Statement Of Stockholders Equity [Abstract] | |||
Defined benefit plans liability adjustment, tax | $ 467 | $ 176 | $ 93 |
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 | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Cash flows provided by operating activities: | |||
Net income | $ 191,960 | $ 110,041 | $ 92,663 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 65,657 | 56,271 | 51,968 |
Impairment of assets | 4,466 | 911 | 652 |
(Gain) loss on disposal of property, plant and equipment | (639) | 871 | 64 |
Change in ROU assets | 7,355 | 4,207 | |
Bad debt expense | 488 | 45 | 2 |
Stock-based compensation expense | 15,282 | 12,337 | 10,035 |
Deferred income taxes | 17,655 | 7,404 | 14,350 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (24,014) | (12,260) | (1,636) |
Inventories | (24,463) | (24,932) | (21,312) |
Prepaid expenses, income tax receivable and other current assets | (19,411) | (1,530) | (552) |
Other assets | (44,322) | (12,332) | |
Accounts payable | 40,771 | 21,417 | 6,352 |
Accrued expenses and other current liabilities | 24,469 | 18,618 | 10,130 |
Change in operating lease liability | (3,786) | (3,277) | |
Other liabilities | 1,939 | 451 | 731 |
Net cash provided by operating activities | 253,407 | 178,242 | 163,447 |
Cash flows used in investing activities: | |||
Purchases of property, plant and equipment | (139,996) | (93,233) | (55,460) |
Proceeds from sale of property, plant and equipment | 487 | 165 | 27 |
Cash paid for acquisition of intangible assets | (50) | ||
Investment in Dogfish Head, net of cash acquired | (165,517) | ||
Other investing activities | 392 | (244) | 139 |
Net cash used in investing activities | (139,117) | (258,829) | (55,344) |
Cash flows provided by (used in) financing activities: | |||
Repurchase of Class A Common Stock | (88,312) | ||
Proceeds from exercise of stock options and sale of investment shares | 15,274 | 9,236 | 23,049 |
Net cash paid on note payable and finance leases | (1,260) | (378) | (78) |
Cash borrowed on line of credit | 100,000 | 97,000 | |
Cash paid on line of credit | (100,000) | (97,000) | |
Payment of tax withholdings on stock-based payment awards and investment shares | (1,692) | 0 | |
Net cash provided by (used in) financing activities | 12,322 | 8,858 | (65,341) |
Change in cash and cash equivalents | 126,612 | (71,729) | 42,762 |
Cash and cash equivalents at beginning of year | 36,670 | 108,399 | 65,637 |
Cash and cash equivalents at end of period | 163,282 | 36,670 | 108,399 |
Supplemental disclosure of cash flow information: | |||
Non cash consideration issued in Dogfish Head Transaction | 144,743 | ||
Income taxes paid | 36,032 | 30,760 | 11,353 |
Income taxes refunded | 60 | 18 | 5,000 |
Cash paid for amounts included in measurement of lease liabilities | |||
Operating cash flows from operating leases | 6,194 | 4,696 | |
Operating cash flows from finance leases | 143 | 56 | |
Financing cash flows from finance leases | 1,192 | 313 | |
Right-of-use assets obtained in exchange for operating lease obligations | 12,081 | 57,966 | |
Right-of-use assets obtained in exchange for finance lease obligations | 2,689 | 2,837 | |
Interest paid on revolving credit facility | 246 | 451 | |
Change in purchase of property, plant and equipment in accounts payable and accrued expenses | $ 9,387 | $ 6,632 | $ 2,609 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 26, 2020 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | A. 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 ® ® ® ® ® ® ® |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 26, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | B. Summary of Significant Accounting Policies Fiscal Year The Company’s fiscal year is a fifty-two or fifty-three-week period ending on the last Saturday in December. The 2020, 2019 and 2018 fiscal years all consisted of fifty-two weeks. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly-owned. All intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. COVID-19 The Company began seeing the impact of the COVID-19 pandemic on its business in early March 2020. The direct financial impact of the pandemic has primarily shown in significantly reduced keg demand from the on-premise channel and higher labor and safety-related costs at the Company’s breweries. In fiscal year 2020, shipments of kegs decreased to 3% of total shipment volume from 11% of shipments in 2019. Also, in fiscal year 2020, the Company recorded COVID-19 related pre-tax reductions in net revenue and increases in other costs that total $16.0 million. In addition to these direct financial impacts, COVID-19 related safety measures resulted in a reduction of brewery productivity. This has shifted more volume to third-party breweries, which increased production costs and negatively impacted gross margins. The Company will continue to assess and manage this situation and will provide a further update in each quarterly earnings release, to the extent that the effects of the COVID-19 pandemic are then known more clearly. Cash and Cash Equivalents Cash and cash equivalents at December 26, 2020 and December 28, 2019 included cash on-hand and money market instruments that are highly liquid investments. Cash and cash equivalents are carried at cost, which approximates fair value. Accounts Receivable and Allowance for Doubtful Accounts The Company’s accounts receivable primarily consist of trade receivables. The Company records an allowance for doubtful accounts that is based on historical trends, customer knowledge, any known disputes, and the aging of the accounts receivable balances combined with management’s estimate of future potential recoverability. Receivables are written off against the allowance after all attempts to collect a receivable have failed. The Company believes its allowance for doubtful accounts as of December 26, 2020 and December 28, 2019 are adequate, but actual write-offs could exceed the recorded allowance. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash equivalents and trade receivables. The Company places its cash equivalents with high credit quality financial institutions. As of December 26, 2020, the Company’s cash and cash equivalents were invested in investment-grade, highly liquid U.S. government agency corporate money market accounts. The Company sells primarily to a network of independent wholesalers in the United States and to a network of foreign wholesalers, importers or other agencies (collectively referred to as “Distributors”). In 2020, 2019 and 2018, sales to foreign Distributors were approximately 4% of total sales. Receivables arising from these sales are not collateralized; however, credit risk is minimized as a result of the large and diverse nature of the Company’s customer base. There were no individual customer accounts receivable balances outstanding at December 26, 2020 or December 28, 2019 that were in excess of 10% of the gross accounts receivable balance on those dates. No individual customers represented more than 10% of the Company’s revenues in fiscal years 2020, 2019, or 2018. Financial Instruments and Fair Value of Financial Instruments The Company’s primary financial instruments at December 26, 2020 and December 28, 2019 consisted of cash equivalents, accounts receivable, and accounts payable. The Company determines the fair value of its financial assets and liabilities in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures Inventories and Provision for Excess or Expired Inventory Inventories consist of raw and packaging materials, work in process and finished goods. Raw materials, which principally consist of hops, malt, apple juice, other brewing materials and packaging, are stated at the lower of cost (first-in, first-out basis) or net realizable value. The Company’s goal is to maintain on-hand a supply of approximately two years for essential hop varieties, in order to limit the risk of an unexpected reduction in supply. Inventories are generally classified as current assets. The Company classifies hops inventory in excess of two years of forecasted usage in other long-term assets. The cost elements of work in process and finished goods inventory consist of raw materials, direct labor and manufacturing overhead. Packaging design costs are expensed as incurred. The Company enters into multi-year purchase commitments in order to secure adequate supply of ingredients and packaging, to brew and package its products. Inventory on hand and under purchase commitments totaled approximately $285.0 million at December 26, 2020. The provisions for excess or expired inventory are based on management’s estimates of forecasted usage of inventories on hand and under contract. Forecasting usage involves significant judgments regarding future demand for the Company’s various existing products and products under development as well as the potency and shelf-life of various ingredients. A significant change in the timing or level of demand for certain products as compared to forecasted amounts may result in recording additional provisions for excess or expired inventory in the future. Provisions for excess inventory are included in cost of goods sold and have historically been adequate to cover incurred inventory losses. Provision for excess or expired inventory included in cost of goods sold was $11.3 million, $8.1 million, and $4.2 million in fiscal years 2020, 2019, and 2018 respectively. Property, Plant and Equipment Property, plant, and equipment are stated at cost or fair value as of the date of acquisition. Expenditures for repairs and maintenance are expensed as incurred. Major renewals and betterments that extend the life of the property are capitalized. Depreciation is computed using the straight-line method based upon the estimated useful lives of the underlying assets as follows: Kegs 5 years Computer software and equipment 2 to 5 years Office equipment and furniture 3 to 7 years Machinery and plant equipment 3 to 20 years, or the term of the production agreement, whichever is shorter Leasehold improvements Lesser of the remaining term of the lease or estimated useful life of the asset Building and building improvements 12 to 20 years, or the remaining useful life of the building, whichever is shorter The carrying value of property, plant and equipment, net of accumulated depreciation, at December 26, 2020 was $623.1 million. For purposes of determining whether there are any impairment losses, as further discussed below, management has historically examined the carrying value of the Company’s identifiable long-lived assets, including their useful lives, semi-annually, or more frequently when indicators of impairment are present. Evaluations of whether indicators of impairment exist involve judgments regarding the current and future business environment and the length of time the Company intends to use the asset. If an impairment loss is identified based on the fair value of the asset, as compared to the carrying value of the asset, such loss would be charged to expense in the period the impairment is identified. Furthermore, if the review of the carrying values of the long-lived assets indicates impairment of such assets, the Company may determine that shorter estimated useful lives are more appropriate. In that event, the Company will be required to record additional depreciation in future periods, which will reduce earnings. Estimating the amount of impairment, if any, requires significant judgments including identification of potential impairments, market comparison to similar assets, estimated cash flows to be generated by the asset, discount rates, and the remaining useful life of the asset. Impairment of assets included in operating expenses was $4.4 million, $0.9 million, and $0.7 million in fiscal years 2020, 2019 and 2018, respectively. Factors generally considered important which could trigger an impairment review on the carrying value of long-lived assets include the following: (1) significant underperformance relative to historical or projected future operating results; (2) significant changes in the manner of use of acquired assets or the strategy for the Company’s overall business; (3) underutilization of assets; and (4) discontinuance of products by the Company or its customers. The Company believes that the carrying value of its long-lived assets as of December 26, 2020 and December 28, 2019 was realizable. Segment Reporting The Company consists of one operating segment that produces and sells alcohol beverages under the Company’s Truly Hard Seltzer, Twisted Tea, Samuel Adams, , Angry Orchard, Dogfish Head, Angel City, Coney Island, and Concrete Beach, brands. All brands are predominantly beverages that are manufactured using similar production processes, have comparable alcohol content, generally fall under the same regulatory environment, and are sold to the same types of customers in similar size quantities at similar price points and through the same channels of distribution. Goodwill and Intangible Assets The Company does not amortize goodwill and tradename intangible assets but evaluates the recoverability by comparing the carrying value and the fair value annually at the end of the fiscal month of August, or more frequently when indicators of impairment are present. The Company has concluded that its goodwill and intangible assets were not impaired as of December 26, 2020 and December 28, 2019. Customer relationship intangible assets are amortized over the useful life of fifteen years. As of December 26, 2020, and December 28, 2019, goodwill amounted to $112.5 million. As of December 26, 2020, and December 28, 2019, intangible assets amounted to $103.9 million and $104.3 million, respectively. Refundable Deposits on Kegs and Pallets The Company distributes its packaged hard seltzer, beer and hard cider primarily in cans and glass bottles and its draft beer in kegs and such cans, bottles and kegs are shipped on pallets to Distributors. Most kegs and pallets are owned by the Company. Kegs are reflected in the Company’s balance sheets at cost and are depreciated over the estimated useful life of the keg, while pallets are expensed upon purchase. Upon shipment of beer to Distributors, the Company collects a refundable deposit on the kegs and pallets, which is included in current liabilities in the Company’s balance sheets. Upon return of the kegs and pallets to the Company, the deposit is refunded to the Distributor. The Company has experienced some loss of kegs and pallets and anticipates that some loss will occur in future periods due to the significant volume of kegs and pallets handled by each Distributor and retailer, the homogeneous nature of kegs and pallets owned by most brewers, and the relatively small deposit collected for each keg when compared with its market value. The Company believes that this is an industry-wide issue and that the Company’s loss experience is not atypical. The Company believes that the loss of kegs and pallets, after considering the forfeiture of related deposits, has not been material to the financial statements. The Company uses internal records, records maintained by Distributors, records maintained by other third-party vendors and historical information to estimate the physical count of kegs and pallets held by Distributors. These estimates affect the amount recorded as property, plant and equipment and current liabilities as of the date of the financial statements. The actual liability for refundable deposits could differ from these estimates. For the year ended December 26, 2020, the Company decreased its liability for refundable deposits, gross property, plant and equipment and related accumulated depreciation by $0.4 million, $0.8 million and $0.8 million, respectively. For the year ended December 28, 2019, the Company decreased its liability for refundable deposits, gross property, plant and equipment and related accumulated depreciation by $0.8 million, $1.3 million and $1.3 million, respectively. As of December 26, 2020, and December 28, 2019, the Company’s balance sheet includes $15.5 million and $19.5 million, respectively, in refundable deposits on kegs and pallets and $0.3 million and $0.5 million, respectively, in kegs, net of accumulated depreciation. Income Taxes Income tax expense was $52.3 million, $34.3 million, and $23.6 million in fiscal years 2020, 2019, and 2018, respectively. The Company provides for deferred taxes using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s consolidated financial statements or tax returns. This results in differences between the book and tax basis of the Company’s assets, liabilities and carry-forwards, such as tax credits. In estimating future tax consequences, all expected future events, other than enactment of changes in the tax laws or rates, are generally considered. Valuation allowances are provided when recovery of deferred tax assets does not meet the more likely than not standards as defined in ASC Topic 740, Income Taxes The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations in several different state tax jurisdictions. The Company is periodically reviewed by tax authorities regarding the amount of taxes due. These reviews include inquiries regarding the timing and amount of deductions and the allocation of income among various tax jurisdictions. The Company records estimated reserves for exposures associated with positions that it takes on its income tax returns that do not meet the more likely than not standards as defined in ASC Topic 740, Income Taxes Revenue Recognition and Classification of Customer Programs and Incentives During fiscal years 2020, 2019 and 2018 approximately 95% of the Company’s revenue was from shipments of its products to domestic Distributors and 4% from shipments to international Distributors, primarily located in Canada. Less than 1% of the Company’s revenue is from retail beer, cider, food and merchandise sales at the Company’s retail locations. The Company recognizes revenue when obligations under the terms of a contract with its customer are satisfied; generally, this occurs with the transfer of control of its products. Revenue is measured as the amount of consideration expected to be received in exchange for transferring products. If the conditions for revenue recognition are not met, the Company defers the revenue until all conditions are met. As of December 26, 2020, and December 28, 2019, the Company had deferred revenue of $13.5 million and $7.0 million, respectively, 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. The Company is committed to maintaining the freshness of its products in the market. In certain circumstances and with the Company’s approval, the Company accepts and destroys stale beer that is returned by Distributors. The Company generally credits approximately fifty percent of the distributor’s cost of beer that has passed its freshness expiration date when it is returned to the Company or destroyed. The Company reduces revenue and establishes an accrual based upon both historical returns, which is applied to an estimated lag time for receipt of product, and knowledge of specific return transactions. Estimating this reserve involves significant judgments and estimates, including comparability of historical return trends to future trends, lag time from date of sale to date of return, and product mix of returns. Stale beer expense is reflected in the accompanying financial statements as a reduction of revenue. Historically, the cost of actual stale beer returns has been in line with established reserves; however, the cost could differ materially from the reserves which would impact revenue. As of December 2 6 , 20 20 , and December 2 8 , 201 9 , the stale beer reserve was $ 3.1 million and $ million, respectively. These amounts are included in accrued expenses and other current liabilities in the accompanying consolidated balance sheets. Provision for stale beer recorded as redu ctions to revenue totaled $ 8.4 million, $ 4.4 million, and $ 2.7 million in fiscal years 2020, 2019, and 2018 respectively. Customer programs and incentives are a common practice in the alcohol beverage industry. Amounts paid in connection with customer programs and incentives are recorded as reductions to net revenue or as advertising, promotional and selling expenses, based on the nature of the expenditure. Customer incentives and other payments made to Distributors are primarily based upon the performance of certain marketing and advertising activities. Depending on applicable state laws and regulations, these activities promoting the Company’s products may include, but are not limited to, point-of-sale and merchandise placement, samples, product displays, promotional programs at retail locations and meals, travel and entertainment. Amounts paid to customers in connection with these programs that were recorded as reductions to net revenue or as advertising, promotional and selling expenses totaled $85.0 million, $75.2 million and $55.5 million in fiscal years 2020, 2019 and 2018, respectively. Estimates are based on historical and projected experience for each type of program or customer and have historically been in line with actual costs incurred. Customer promotional discount programs are entered into with Distributors for certain periods of time. Amounts paid to Distributors in connection with these programs in fiscal years 2020, 2019 and 2018 were $59.3 million, $43.9 million and $34.5 million, respectively. The reimbursements for discounts to Distributors are recorded as reductions to net revenue. The agreed-upon discount rates are applied to certain Distributors’ sales to retailers, based on volume metrics, in order to determine the total discounted amount. The computation of the discount allowance requires that management make certain estimates and assumptions that affect the timing and amounts of revenue and liabilities recorded. Actual promotional discounts owed and paid have historically been in line with allowances recorded by the Company; however, the amounts could differ from the estimated allowances. Customer incentives and other payments are made primarily to Distributors based upon the performance of certain marketing and advertising activities. Depending on applicable state laws and regulations, these activities promoting the Company’s products may include, but are not limited to point-of-sale and merchandise placement, samples, product displays, promotional programs at retail locations and meals, travel and entertainment. Amounts paid to customers in connection with these programs in fiscal years 2020, 2019 and 2018 were $25.7 million, $31.3 million and $21.0 million, respectively. In fiscal years 2020, 2019 and 2018, the Company recorded certain of these costs in the total amount of $23.1 million, $21.6 million and $13.9 million, respectively as reductions to net revenue. Costs recognized in net revenues include, but are not limited to, promotional discounts, sales incentives and certain other promotional activities. Costs recognized in advertising, promotional and selling expenses include point of sale materials, samples and media advertising expenditures in local markets. These costs are recorded as incurred, generally when invoices are received; however certain estimates are required at the period end. Estimates are based on historical and projected experience for each type of program or customer and have historically been in line with actual costs incurred. In connection with its preparation of financial statements and other financial reporting, management is required to make certain estimates and assumptions regarding the amount, timing and classification of expenditures resulting from these activities. Actual expenditures incurred could differ from management’s estimates and assumptions. Excise Taxes The Company is responsible for compliance with the Alcohol and Tobacco Tax and Trade Bureau of the U.S. Treasury Department (the “TTB”) regulations, including making timely and accurate excise tax payments. The Company is subject to periodic compliance audits by the TTB. Individual states also impose excise taxes on alcohol beverages in varying amounts. The Company calculates its excise tax expense based upon units shipped and on its understanding of the applicable excise tax laws. The Company benefited from a reduction in federal excise taxes of $11.9 million and $8.9 million in fiscal years 2020 and 2019, respectively, as a result of the Tax Cuts and Jobs Act of 2017. Cost of Goods Sold The following expenses are included in cost of goods sold: raw material costs, packaging material costs, costs and income related to deposit activity, purchasing and receiving costs, manufacturing labor and overhead, brewing and processing costs, inspection costs relating to quality control, inbound freight charges, depreciation expense related to manufacturing equipment and warehousing costs, which include rent, labor and overhead costs. Shipping Costs Costs incurred for the shipping of products to customers are included in advertising, promotional and selling expenses in the accompanying consolidated statements of comprehensive income. The Company incurred shipping costs of $97.6 million, $69.1 million, and $61.8 million in fiscal years 2020, 2019 and 2018, respectively. Advertising and Sales Promotions The following expenses are included in advertising, promotional and selling expenses in the accompanying consolidated statements of comprehensive income: media advertising and production costs, sales and brand related expenses, sales and brand salary and benefit expenses, stock compensation, meals, travel and entertainment expenses, promotional activity expenses, shipping costs related to shipments of finished goods from manufacturing locations to distributor locations and point-of-sale items. Total advertising and sales promotional expenditures of $211.2 million, $177.2 million, and $145.1 million were included in advertising, promotional and selling expenses in the accompanying consolidated statements of comprehensive income for fiscal years 2020, 2019 and 2018, respectively. The Company conducts certain advertising and promotional activities in its Distributors’ markets and the Distributors make contributions to the Company for such efforts. Reimbursements from Distributors for advertising and promotional activities are recorded as reductions to advertising, promotional and selling expenses. General and Administrative Expenses The following expenses are included in general and administrative expenses in the accompanying consolidated statements of comprehensive income: general and administrative salary and benefit expenses, stock compensation, insurance costs, consulting and professional service fees, rent and utility expenses, meals, travel and entertainment expenses for general and administrative employees, and other general and administrative overhead costs. Stock-Based Compensation The Company accounts for share-based awards in accordance with ASC Topic 718, Compensation – Stock Compensation As permitted by ASC 718, the Company elected to use a lattice model, such as the trinomial option-pricing model, to estimate the fair values of stock options. All option-pricing models require the input of subjective assumptions. These assumptions include the estimated volatility of the Company’s common stock price over the expected term, the expected dividend rate, the estimated post-vesting forfeiture rate, the risk-free interest rate and expected exercise behavior. See Note N for further discussion of the application of the option-pricing models. In addition, an estimated pre-vesting forfeiture rate is applied in the recognition of the compensation charge. Periodically, the Company grants performance-based stock options. The Company only recognizes compensation expense with respect to these options if it is probable that the performance targets will be met. Consequently, at the end of each reporting period, the Company estimates whether it is probable that performance targets will be met. Changes in the subjective assumptions and estimates can materially affect the amount of stock-based compensation expense recognized in the consolidated statements of comprehensive income. Net Income Per Share Basic net income per share is calculated by dividing net income by the weighted-average common shares outstanding. Diluted net income per share is calculated by dividing net income by the weighted-average common shares and potentially dilutive securities outstanding during the period using the treasury stock method or the two-class method, whichever is more dilutive. Accounting Pronouncements Recently Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment Accounting Pronouncements Not Yet Effective In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Dogfish Head Brewery Transactio
Dogfish Head Brewery Transaction | 12 Months Ended |
Dec. 26, 2020 | |
Business Combinations [Abstract] | |
Dogfish Head Brewery Transaction | C. 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 Way LLC, the parent holding company of the Dogfish Head operations. In accordance with these agreements, the Company made a payment of $158.4 million, which was placed in escrow pending the satisfaction of certain closing conditions. The Transaction closed on July 3, 2019, for total consideration of $336.0 million consisting of $173.0 million in cash and 429,291 shares of restricted Class A Common Stock that had an aggregate market value as of July 3, 2019 of $163.0 million, 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 Company’s allocation of consideration exchanged to the net tangible and intangible assets acquired and liabilities assumed in the Transaction is based on estimated fair values as of July 3, 2019, and was finalized on July 3, 2020. 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 Company used a preliminary consolidated tax rate to determine the net deferred tax liabilities. The Company will record measurement period adjustments as the Company applies the appropriate tax rate for each legal entity within Dogfish Head. The expectation is that the Dogfish Head deferred income taxes will be subject to the Company’s consolidated rate. 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 31, 2017, the first day of the Company’s 2018 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 fifty-two weeks ended December 28, 2019 have been re-assigned to the first period of the comparative fiscal year. (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. Fifty-two weeks ended December 28, 2019 Net revenue $ 1,304,239 Net income $ 116,868 Basic earnings per share $ 9.83 Diluted earnings per share $ 9.73 |
Inventories
Inventories | 12 Months Ended |
Dec. 26, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | D. Inventories consisted of the following: December 26, 2020 December 28, 2019 (in thousands) Current inventory: Raw materials $ 69,272 $ 61,522 Work in process 16,846 12,631 Finished goods 44,792 31,885 Total current inventory 130,910 106,038 Long term inventory 9,639 10,048 Total inventory $ 140,549 $ 116,086 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 26, 2020 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | E. Prepaid expenses and other current assets consisted of the following: December 26, 2020 December 28, 2019 (in thousands) Prepaid brewing services fee - short term (see Note L) $ 14,816 $ 4,936 Prepaid advertising, promotional and selling 4,876 1,649 Down payments to vendors 4,693 24 Other 5,845 5,468 $ 30,230 $ 12,077 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 26, 2020 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | F. Property, plant and equipment consisted of the following: December 26, 2020 December 28, 2019 (in thousands) Machinery and plant equipment $ 641,790 $ 571,506 Kegs 61,582 66,011 Land 25,753 25,759 Building and building improvements 174,328 130,311 Office equipment and furniture 31,115 29,202 Leasehold improvements 43,157 48,528 Assets under construction 84,564 59,027 1,062,289 930,344 Less accumulated depreciation (439,206 ) (389,276 ) $ 623,083 $ 541,068 The Company recorded depreciation expense related to these assets of $65.4 million, $56.1 million and $51.8 million, in fiscal years 2020, 2019, and 2018, respectively. Impairment of Assets The Company evaluates its assets for impairment when events indicate that an asset or asset group may have suffered impairment. During fiscal years 2020, 2019 and 2018, the Company recorded impairment charges of $4.4 million, $0.9 million and $0.7 million, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 26, 2020 | |
Leases [Abstract] | |
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 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. 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 December 26, 2020, total ROU assets and lease liabilities were as follows: Classification December 26, 2020 December 28, 2019 Right-of-use assets (in thousands) Operating lease assets Operating right-of-use assets $ 58,483 $ 53,758 Finance lease assets Property, plant and equipment, net 4,035 2,531 Lease Liabilities Current Operating lease liabilities Current operating lease liabilities 8,232 5,168 Finance lease liabilities Accrued expenses and other current liabilities 1,453 546 Non-current Operating lease liabilities Non-current operating lease liabilities 59,171 53,940 Finance lease liabilities Other liabilities 2,631 2,042 The gross value and accumulated depreciation of ROU assets related to finance leases as of December 26, 2020 were as follows: Finance Leases December 26, 2020 December 28, 2019 (in thousands) Gross value $ 5,526 $ 2,837 Accumulated amortization (1,491 ) (306 ) Carrying value $ 4,035 $ 2,531 Components of lease cost for the fiscal year-ended are as follows: Lease Cost December 26, 2020 December 28, 2019 (in thousands) Operating lease cost $ 9,764 $ 5,625 Variable lease costs not included in liability 1,643 1,064 Finance lease cost: Amortization of right-of-use asset $ 1,185 $ 306 Interest on lease liabilities 143 56 Total finance lease cost $ 1,328 $ 362 Maturities of lease liabilities as of December 26, 2020 are as follows: Operating Finance Weighted-Average Remaining Term in Years Leases Leases Operating Leases Finance Leases (in thousands) 2021 $ 10,454 $ 1,572 2022 9,908 1,572 2023 9,737 863 2024 9,714 265 2025 6,389 8 Thereafter 32,891 15 Total lease payments 79,093 4,295 Less imputed interest (based on 3.5% weighted- average discount rate) (11,690 ) (211 ) Present value of lease liability $ 67,403 $ 4,084 8.8 2.9 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 26, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | H. Goodwill and Intangible Assets The change in the carrying value of goodwill and intangible assets during the fifty-two weeks ended December 26, 2020 and December 28, 2019 were as follows: Fifty-two weeks ended December 26, December 28, 2020 2019 (in thousands) Goodwill as of beginning of period $ 112,529 $ 3,683 Acquired goodwill — 108,846 Impairment of goodwill — — Goodwill as of end of period $ 112,529 $ 112,529 The $108.8 million of goodwill acquired during the fifty-two weeks ended December 28, 2019 is related to the Dogfish Head Transaction disclosed in Note C. No impairment of existing goodwill was recorded in any period. The Company’s intangible assets as of December 26, 2020 and December 28, 2019 were as follows: As of December 26, 2020 As of December 28, 2019 Estimated Useful Life (Years) Gross Carrying Value Accumulated Amortization Net Book Value Gross Carrying Value Accumulated Amortization Net Book Value (in thousands) (in thousands) Customer Relationships 15 $ 3,800 $ (380 ) $ 3,420 $ 3,800 $ (127 ) $ 3,673 Trade Names Indefinite 100,510 — 100,510 100,599 — 100,599 Total intangible assets $ 104,310 $ (380 ) $ 103,930 $ 104,399 $ (127 ) $ 104,272 During the fifty-two weeks ended December 28, 2019, the Company acquired intangible assets as part of the Dogfish Head Transaction disclosed in Note C, that consists of $98.5 million for the value of the Dogfish Head brand name and $3.8 million for the value of customer relationships. The customer relationship intangible asset will be amortized on a straight-line basis over the 15-year useful life. Amortization expense in the fifty-two weeks ended December 26, 2020 was approximately $253,000. The Company expects to record amortization expense as follows over the five subsequent years: Fiscal Year Amount (in thousands) 2021 $ 253 2022 253 2023 253 2024 253 2025 253 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 26, 2020 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | I. Accrued expenses and other current liabilities consisted of the following: December 26, 2020 December 28, 2019 (in thousands) Employee wages, benefits and reimbursements $ 50,938 $ 35,394 Advertising, promotional and selling expenses 15,752 17,009 Accrued deposits 15,616 20,483 Deferred revenue 13,522 6,984 Accrued taxes 10,133 3,316 Accrued capital expenditures 7,523 2,621 Other accrued liabilities 16,060 13,300 $ 129,544 $ 99,107 |
Revolving Line of Credit
Revolving Line of Credit | 12 Months Ended |
Dec. 26, 2020 | |
Debt Disclosure [Abstract] | |
Revolving Line of Credit | J. The Company has a credit facility in place that provides for a $150.0 million revolving line of credit which has a term not scheduled to expire until March 31, 2023. The Company may elect an interest rate for borrowings under the credit facility based on either (i) the Alternative Prime Rate (3.25% at December 26, 2020) or (ii) the applicable LIBOR rate (0.15% at December 26, 2020) plus 0.45%. The Company incurs an annual commitment fee of 0.15% on the unused portion of the facility and is obligated to meet certain financial covenants, which are measured using earnings before interest, tax, depreciation and amortization (“EBITDA”) based ratios. The Company’s EBITDA to interest expense ratio was 795.00 as of December 26, 2020, compared to a minimum allowable ratio of 2.00 and the Company’s total funded debt to EBITDA ratio was 0.0 as of December 26, 2020, compared to a maximum allowable ratio of 2.50. During the fifty-two weeks ended December 26, 2020, the company borrowed and repaid $100.0 million on the credit facility and paid a total of $0.2 million in related interest. There were no borrowings outstanding under the credit facility as of December 26, 2020 and December 28, 2019. There are also certain restrictive covenants set forth in the credit agreement. Pursuant to the negative covenants, the Company has agreed that it will not: enter into any indebtedness or guarantees other than those specified by the lender, enter into any sale and leaseback transactions, merge, consolidate, or dispose of significant assets without the lender’s prior written consent, make or maintain any investments other than those permitted in the credit agreement, or enter into any transactions with affiliates outside of the ordinary course of business. In addition, the credit agreement requires the Company to obtain prior written consent from the lender on distributions on account of, or in repurchase, retirement or purchase of its capital stock or other equity interests with the exception of the following: (a) distributions of capital stock from subsidiaries to The Boston Beer Company, Inc. and Boston Beer Corporation (a subsidiary of The Boston Beer Company, Inc.), (b) repurchase from former employees of non-vested investment shares of Class A Common Stock, issued under the Employee Equity Incentive Plan, and (c) redemption of shares of Class A Common Stock as approved by the Board of Directors and payment of cash dividends to its holders of common stock. Borrowings under the credit facility may be used for working capital, capital expenditures and general corporate purposes of the Company and its subsidiaries. In the event of a default that has not been cured, the credit facility would terminate and any unpaid principal and accrued interest would become due and payable. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 26, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | K. Significant components of the provision for income taxes are as follows: 2020 2019 2018 (in thousands) Current: Federal $ 25,115 $ 18,510 $ 4,471 State 9,455 8,084 4,894 Total current 34,570 26,594 9,365 Deferred: Federal 16,363 8,081 12,860 State 1,337 (346 ) 1,398 Total deferred 17,700 7,735 14,258 Total provision for income taxes $ 52,270 $ 34,329 $ 23,623 The Company’s reconciliations to statutory rates are as follows: 2020 2019 2018 Statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 4.4 4.6 4.6 Deduction relating to excess stock based compensation (4.3 ) (3.2 ) (3.6 ) Non-deductable meals & entertainment 0.2 0.7 1.1 Accounting method changes — — (3.9 ) Change in valuation allowance 0.1 0.4 0.7 Other — 0.3 0.4 21.4 % 23.8 % 20.3 % Due to a change of tax accounting methods for depreciation of certain property, plant and equipment for the fiscal year-ended December 30, 2017, the Company experienced a one-time income tax benefit of $4.5 million for the tax year ended December 29, 2018. Significant components of the Company’s deferred tax assets and liabilities are as follows at: December 26, 2020 December 28, 2019 (in thousands) Deferred tax assets: Lease Liabilities $ 17,951 $ 15,567 Inventory 2,525 5,868 Stock-based compensation expense 5,568 5,818 Accrued expenses 3,171 3,232 Other 2,212 1,914 Total deferred tax assets 31,427 32,399 Valuation allowance (2,022 ) (1,866 ) Total deferred tax assets net of valuation allowance 29,405 30,533 Deferred tax liabilities: Property, plant and equipment (88,947 ) (78,232 ) Right-of-use Assets (15,695 ) (14,203 ) Amortization (12,900 ) (10,899 ) Prepaid expenses (4,528 ) (2,209 ) Total deferred tax liabilities (122,070 ) (105,543 ) Net deferred tax liabilities $ (92,665 ) $ (75,010 ) The Company’s practice is to classify interest and penalties related to income tax matters in income tax expense. Interest and penalties included in the provision for income taxes amounted to $0.0 million, $0.0 million, and $0.1 million for fiscal years 20 20 , 201 9 , and 201 8 , respectively. Accrued interest and penalties amounted to $ 0.2 million and $ 0.1 million at December 2 6 , 20 20 and December 28 , 2019 , respectively. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2020 2019 (in thousands) Balance at beginning of year $ 811 $ 836 Increases related to current year tax positions — 101 Increases (decreases) related to prior year tax positions 13 (63 ) Decreases related to lapse of statute of limitations (12 ) (63 ) Balance at end of year $ 812 $ 811 Included in the balance of unrecognized tax benefits at December 26, 2020 and December 28, 2019 are potential net benefits of $0.8 million and $0.8 million, respectively, that would favorably impact the effective tax rate if recognized. Unrecognized tax benefits are included in accrued expenses in the accompanying consolidated balance sheets and adjusted in the period in which new information about a tax position becomes available or the final outcome differs from the amount recorded. In September 2017, the Internal Revenue Service (“IRS”) commenced an examination of the Company’s 2015 consolidated corporate income tax return. The examination was completed in July 2018 resulting in a no change report. As of December 26, 2020, the Company’s 2017, 2018, and 2019 federal income tax returns remain subject to examination by IRS. The Company’s state income tax returns remain subject to examination for three or four years depending on the state’s statute of limitations. The Company is being audited by one state as of December 26, 2020. In addition, the Company is generally obligated to report changes in taxable income arising from federal income tax audits. It is reasonably possible that the Company’s unrecognized tax benefits may increase or decrease in 2020 if there are changes as a result of potential income tax audits; however, the Company cannot estimate the range of such possible changes. The Company does not expect that any potential changes would have a material impact on the Company’s financial position, results of operations or cash flows. As of December 26, 2020, the Company’s deferred tax assets included a capital loss carryforward totaling $1.1 million. If unused, the capital loss carryforward will expire in fiscal year 2021. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 26, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | L. Contractual Obligations As of December 26, 2020, projected cash outflows under non-cancelable contractual obligations for the remaining years under the contracts are as follows: Payments Due by Period Total 2021 2022 2023 2024 2025 Thereafter (in thousands) Ingredients (excluding hops and malt) $ 91,414 $ 91,414 $ — $ — $ — $ — $ — Brand support 87,459 61,154 8,646 8,397 4,703 4,559 — Equipment and machinery 79,379 79,379 — — — — — Hops and malt 51,988 41,103 4,667 2,317 2,175 1,726 — Other 11,659 9,854 1,633 172 — — — Total contractual obligations $ 321,899 $ 282,904 $ 14,946 $ 10,886 $ 6,878 $ 6,285 $ — The Company’s accounting policy for inventory and purchase commitments is to recognize a loss by establishing a reserve to the extent inventory levels and commitments exceed forecasted needs. The computation of the excess inventory requires management to make certain assumptions regarding future sales growth, product mix, cancellation costs and supply, among others. Actual results may differ materially from management’s estimates. The Company continues to manage inventory levels and purchase commitments in an effort to maximize utilization. However, changes in management’s assumptions regarding future sales growth, product mix and hops market conditions could result in future material losses. The Company utilizes several varieties of hops in the production of its products. To ensure adequate supplies of these varieties, the Company enters into advance multi-year purchase commitments based on forecasted future hop requirements, among other factors. These purchase commitments extend through crop year 2025 and specify both the quantities and prices, denominated in U.S. Dollar, Euros, New Zealand Dollars and British Pounds, to which the Company is committed. Hops purchase commitments outstanding at December 26, 2020 totaled $29.5 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. These contracts were deemed necessary in order to bring hop inventory levels and purchase commitments into balance with the Company’s current brewing volume and hop usage forecasts. In addition, these contracts enable the Company to secure its position for future supply with hop vendors in the face of some competitive buying activity. Currently, the Company has entered into contracts for barley and wheat used in the Company’s malt with four major suppliers. The contracts include crop year 2020 and 2021 and cover the Company’s barley, wheat, and malt requirements for 2021. These purchase commitments outstanding at December 26, 2020 totaled $22.5 million. For the fiscal year ended December 26, 2020, the Company brewed approximately 65% 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. The Company currently has a brewing services agreement with subsidiaries of City Brewing Company, LLC (“City Brewing”). During 2019 and 2020, City Brewing supplied approximately 23% and 33% of the Company’s annual shipment volume, respectively. In accordance with the brewing services agreement, the Company has paid to City $71.6 million dollars for capital improvements at City Brewing facilities and other pre-payments. The Company has the contractual right to extend its agreement with City Brewing beyond the December 31, 2024 termination date on an annual basis through December 31, 2035. At December 26, 2020, the Company had prepaid third-party brewing service fees of $14.8 million in prepaid expenses and other current assets and $56.8 million in other assets, long term. The Company plans to expense the total amount of $71.6 million over the brewing service agreement periods ending in 2026 based on committed capacity. In accordance with the City Brewing contract and other production arrangements, the Company is obligated to meet annual minimum volume commitments and is subject to contractual shortfall fees if these annual minimum volume commitments are not met. At December 26, 2020, if volume for the remaining term of the production arrangements were zero, the contractual shortfall fees would total $70.7 million through December 31, 2026. Based on current production volume projections, the Company believes that it will meet all annual volume commitments under these production arrangements and will not incur any shortfall fees. If future volume projections are reduced below the minimum annual volume commitments and the Company estimates that shortfall fees will be incurred, the Company will expense the estimated shortfall fees in the period when incurring the shortfall fees becomes probable. The Company’s arrangements with other brewing companies require it to periodically purchase equipment in support of brewery operations. As of December 26, 2020, there were no significant equipment purchase requirements outstanding under existing contracts. Changes to the Company’s brewing strategy or existing production arrangements, new production relationships or the introduction of new products in the future may require the Company to purchase equipment to support the contract breweries’ operations. The Company continues to review the impact the COVID-19 pandemic will have on its future commitments and contingencies but does not believe that the future commitments will be materially impacted. Litigation The Company is currently not a party to any pending or threatened litigation, the outcome of which would be expected to have a material adverse effect on its financial condition or the results of its operations. |
Fair Value Measures
Fair Value Measures | 12 Months Ended |
Dec. 26, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measures | M. 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 December 26, 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 December 26, 2020, and December 28, 2019, the Company’s cash and cash equivalents balance was $163.3 million and $36.7 million, respectively, including money market funds amounting to $157.6 million and $29.5 million, respectively. |
Common Stock and Share-Based Co
Common Stock and Share-Based Compensation | 12 Months Ended |
Dec. 26, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Common Stock and Share-Based Compensation | N. Class A Common Stock The Class A Common Stock has no voting rights, except (1) as required by law, (2) for the election of Class A Directors, and (3) that the approval of the holders of the Class A Common Stock is required for (a) certain future authorizations or issuances of additional securities which have rights senior to Class A Common Stock, (b) certain alterations of rights or terms of the Class A or Class B Common Stock as set forth in the Articles of Organization of the Company, (c) other amendments of the Articles of Organization of the Company, (d) certain mergers or consolidations with, or acquisitions of, other entities, and (e) sales or dispositions of any significant portion of the Company’s assets. Class B Common Stock The Class B Common Stock has full voting rights, including the right to (1) elect a majority of the members of the Company’s Board of Directors and (2) approve all (a) amendments to the Company’s Articles of Organization, (b) mergers or consolidations with, or acquisitions of, other entities, (c) sales or dispositions of any significant portion of the Company’s assets, and (d) equity-based and other executive compensation and other significant corporate matters. The Company’s Class B Common Stock is not listed for trading. Each share of Class B Common Stock is freely convertible into one share of Class A Common Stock, upon request of any Class B holder, and participates equally in earnings. All distributions with respect to the Company’s capital stock are restricted by the Company’s credit agreement, with the exception of distributions of capital stock from subsidiaries to The Boston Beer Company, Inc. and Boston Beer Corporation, repurchase from former employees of non-vested investment shares of Class A Common Stock issued under the Company’s equity incentive plan, redemption of certain shares of Class A Common Stock as approved by the Board of Directors and payment of cash dividends to its holders of common stock. Employee Stock Compensation Plan The Company’s Employee Equity Incentive Plan (the “Equity Plan”) currently provides for the grant of discretionary options, restricted stock awards and restricted stock units to employees, and provides for shares to be sold to employees of the Company at a discounted purchase price under its investment share program. The Equity Plan is administered by the Board of Directors of the Company, based on recommendations received from the Compensation Committee of the Board of Directors. The Compensation Committee consists of three independent directors. In determining the quantities and types of awards for grant, the Compensation Committee periodically reviews the objectives of the Company’s compensation system and takes into account the position and responsibilities of the employee being considered, the nature and value to the Company of his or her service and accomplishments, his or her present and potential contributions to the success of the Company, the value of the type of awards to the employee and such other factors as the Compensation Committee deems relevant. Stock options and related vesting requirements and terms are granted at the Board of Directors’ discretion, but generally vest ratably over three to five-year During fiscal years 2020, 2019, and 2018, the Company granted 33,403 shares, 22,509 shares, and 83,561 shares, respectively, of restricted stock units or awards to certain senior managers and key employees. Of the total 2020 restricted stock unit grants, 30,707 are service-based and vest ratably over service periods of one to five years and 2,696 are performance-based. The Equity Plan also has an investment share program which permits employees who have been with the Company for at least one year to purchase shares of Class A Common Stock at a discount from current market value of 0% to 40%, based on the employee’s tenure with the Company. Investment shares vest ratably over service periods of five years. Participants may pay for these shares either up front or through payroll deductions over an eleven-month period during the year of purchase. During fiscal years 2020, 2019, and 2018, employees elected to purchase an aggregate of 9,127 investment shares, 7,901 investment shares, and 9,214 investment shares, respectively. The Company has reserved 6.7 million shares of Class A Common Stock for issuance pursuant to the Equity Plan, of which 1.0 million shares were available for grant as of December 26, 2020. Shares reserved for issuance under cancelled employee stock options and forfeited restricted stock are returned to the reserve under the Equity Plan for future grants or purchases. The Company also purchases unvested investment shares from employees who have left the Company at the lesser of (i) the price paid for the shares when the employee acquired the shares or (ii) the fair market value of the shares as of the date next preceding the date on which the shares are called for redemption by the Company. These shares are also returned to the reserve under the Equity Plan for future grants or purchases. Non-Employee Director Options The Company has a stock option plan for non-employee directors of the Company (the “Non-Employee Director Plan”), pursuant to which each non-employee director of the Company is granted an option to purchase shares of the Company’s Class A Common Stock upon election or re-election to the Board of Directors. Stock options issued to non-employee directors vest upon grant and have a maximum contractual term of ten years. During fiscal years 2020, 2019, and 2018 the Company granted options to purchase an aggregate of 4,410 shares, 4,779 shares, and 5,080 shares of the Company’s Class A Common Stock to non-employee directors, respectively. The Company has reserved 0.6 million shares of Class A Common Stock for issuance pursuant to the Non-Employee Director Plan, of which 0.1 million shares were available for grant as of December 26, 2020. Shares under any cancelled non-employee directors’ stock options or options that expire unexercised are returned to the reserve under the Non-Employee Director Plan for future grants. Option Activity Information related to stock options under the Equity Plan and the Non-Employee Director Plan is summarized as follows: Shares Weighted- Average Exercise Price Weighted-Average Remaining Contractual Term in Years Aggregate Intrinsic Value (in thousands) Outstanding at December 28, 2019 315,678 $ 186.53 Granted 26,402 393.54 Forfeited (2,595 ) 242 Exercised (97,638 ) 136.87 Outstanding at December 26, 2020 241,847 $ 228.58 5.93 $ 190,176 Exercisable at December 26, 2020 53,638 $ 211.32 5.16 $ 43,104 Vested and expected to vest at December 26, 2020 217,604 $ 227.97 5.91 $ 171,246 Of the total options outstanding at December 26, 2020, 14,962 shares were performance-based options for which the performance criteria had yet to be achieved and 24,699 shares were performance-based options for which the performance criteria had been met but yet to be approved for vesting by the Board of Directors. Stock Compensation to Chief Executive Officer On April 30, 2018, the Company granted its incoming Chief Executive Officer a performance-based stock option to purchase 9,959 shares of the Company’s Class A Common stock with a weighted average fair value of $100.50 per share, which vests through 2022. The Chief Executive Officer was also granted 64,325 restricted stock awards with a weighted-average fair value of $229.30 per share with service-based vesting through 2023. 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: 2020 2019 2018 (in thousands) Amounts included in advertising, promotional and selling expenses $ 4,467 $ 3,996 $ 3,243 Amounts included in general and administrative expenses 10,815 8,341 6,792 Total stock-based compensation expense $ 15,282 $ 12,337 $ 10,035 Amounts related to performance-based stock awards included in total stock-based compensation expense $ 2,771 $ 1,944 $ 1,750 As permitted by ASC 718, the Company uses a lattice model, such as the trinomial option-pricing model, to estimate the fair values of stock options. The Company believes that the Black-Scholes option-pricing model is less effective than the trinomial option-pricing model in valuing long-term options, as it assumes that volatility and interest rates are constant over the life of the option. In addition, the Company believes that the trinomial option-pricing model more accurately reflects the fair value of its stock awards, as it takes into account historical employee exercise patterns based on changes in the Company’s stock price and other relevant variables. The weighted-average fair value of stock options granted in fiscal years 2020, 2019, and 2018 was $153.31, $131.91, and $92.89 per share, respectively, as calculated using a trinomial option-pricing model. Weighted average assumptions used to estimate fair values of stock options on the date of grants are as follows: 2020 2019 2018 Expected volatility 32.6 % 32.1 % 34.0 % Risk-free interest rate 1.09 % 2.63 % 2.68 % Expected dividends 0 % 0 % 0 % Exercise factor 2.1 times 2.33 times 2.52 times Discount for post-vesting restrictions 0.0 % 0.0 % 0.0 % Expected volatility is based on the Company’s historical realized volatility. The risk-free interest rate represents the implied yields available from the U.S. Treasury zero-coupon yield curve over the contractual term of the option when using the trinomial option-pricing model. Expected dividend yield is 0% because the Company has not paid dividends in the past and currently has no known intention to do so in the future. Exercise factor and discount for post-vesting restrictions are based on the Company’s historical experience. Fair value of restricted stock awards is based on the Company’s traded stock price on the date of the grants. Fair value of investment shares is calculated using the trinomial option-pricing model. The Company uses the straight-line attribution method in recognizing stock-based compensation expense for awards that vest based on service conditions. For awards that vest subject to performance conditions, compensation expense is recognized ratably for each tranche of the award over the performance period if it is probable that performance conditions will be met. The Company recognizes compensation expense, less estimated forfeitures of 13.0%. The forfeiture rate is based upon historical experience and the Company periodically reviews this rate to ensure proper projection of future forfeitures. The total fair value of options vested during fiscal years 2020, 2019, and 2018 was $4.8 million, $2.5 million, and $3.2 million, respectively. The aggregate intrinsic value of stock options exercised during fiscal years 2020, 2019, and 2018 was $45.9 million, $20.9 million, and $19.2 million, respectively. Based on equity awards outstanding as of December 26, 2020, there is $28.6 million of unrecognized compensation costs, net of estimated forfeitures, related to unvested share-based compensation arrangements that are expected to vest. Such costs are expected to be recognized over a weighted-average period of 2.0 years. Non-Vested Shares Activity The following table summarizes vesting activities of shares issued under the investment share program and restricted stock awards: Number of Shares Weighted Average Fair Value Non-vested at December 28, 2019 122,142 $ 213.52 Granted 42,530 350.96 Vested (45,860 ) 214.23 Forfeited (4,496 ) 236.63 Non-vested at December 26, 2020 114,316 $ 263.47 45,860 shares vested in 2020 with a weighted average fair value of $214.23, 33,205 shares vested in 2019 with a weighted average fair value of $188.63, and 20,678 shares vested in 2018 with a weighted average fair value of $156.50. Stock Repurchase Program In 1998, the Board of Directors authorized management to implement a stock repurchase program. As of December 26, 2020, the Company has repurchased a cumulative total of approximately 13.8 million shares of its Class A Common Stock for an aggregate purchase price of approximately $840.7 million as follows: Number of Shares Aggregate Purchase Price (in thousands) Repurchased at December 30, 2017 13,447,346 $ 752,352 2018 repurchases 349,691 88,312 Repurchased at December 29, 2018 13,797,037 840,664 2019 repurchases — — Repurchased at December 28, 2019 13,797,037 840,664 2020 repurchases — — Repurchased at December 26, 2020 13,797,037 $ 840,664 |
Employee Retirement Plans and P
Employee Retirement Plans and Post-Retirement Medical Benefits | 12 Months Ended |
Dec. 26, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Retirement Plans and Post-Retirement Medical Benefits | O. The Company has one retirement plan covering substantially all non-union employees; two other retirement plans, one of which covers substantially all union employees, and the other of which covers employees of a specific union which was terminated in 2020; and post-retirement medical benefits covering substantially all union employees. Non-Union Plans The Boston Beer Company 401(k) Plan (the “Boston Beer 401(k) Plan”), which was established by the Company in 1993, is a Company-sponsored defined contribution plan that covers a majority of the Company’s non-union employees who are employed by Boston Beer Corporation, American Craft Brewery LLC, A & S Brewing Collaborative LLC, or Angry Orchard Cider Company, LLC. All non-union employees of these entities are eligible to participate in the Plan immediately upon employment. Participants may make voluntary contributions up to 60% of their annual compensation, subject to IRS limitations. The Company matches each participant’s contribution. A maximum of 5% of compensation is taken into account in determining the amount of the match. In January 2020, the Company amended the Boston Beer 401(k) Plan to update the Company match as follows: 100% of the first 3% of the eligible compensation participants contribute. Thereafter, the Company matches 50% of the eligible contribution, up to a maximum of 5%. The Company’s contributions to the Boston Beer 401(k) Plan amounted to $6.4 million, $4.0 million, and $3.5 million in fiscal years 2020, 2019, and 2018, respectively. The basic annual administrative fee for the Boston Beer 401(k) Plan is paid by the Plan’s investment fund revenue. In addition, per the Service Provider Payment Agreement, a credit up to a maximum of two basis points multiplied by the total amount of assets under the Plan per year is available for paying eligible Plan expenses. Participant forfeitures are also available for paying eligible Plan expenses. The Company is responsible for the payment of any additional fees related to the management of the Boston Beer 401(k) Plan. Such fees are not material to the Company. As part of the Dogfish Head Transaction, the Company acquired The Dogfish Head 401(k) Plan (the “Dogfish Head 401(k) Plan”), which is a Company-sponsored defined contribution plan that is available to all Dogfish Head employees. Participants may make voluntary contributions up to 60% of their annual compensation, subject to IRS limitations. The Company matches each participant’s contribution. A maximum of 5% of compensation is taken into account in determining the amount of the match. The Company matches 100% of the first 3% of the eligible compensation participants contribute. Thereafter, the Company matches 50% of the eligible contribution. The Company’s contributions to the Dogfish Head 401(k) Plan amounted to $0.3 million in fiscal year 2019. In January 2020, the Dogfish Head 401(k) Plan merged with the Boston Beer 401(k) Plan. Union Plans The Samuel Adams Cincinnati Brewery 401(k) Plan for Represented Employees (the “SACB 401(k) Plan”) is a Company-sponsored defined contribution plan. It was established in 1997 and is available to all union employees upon commencement of employment or, if later, attaining age 21. Participants may make voluntary contributions up to 60% of their annual compensation to the SACB 401(k) Plan, subject to IRS limitations. Company contributions for fiscal years 2020 and 2019 were insignificant. The basic annual administrative fee for the SACB 401(k) Plan is paid by the Plan’s investment fund revenue. In addition, per the Service Provider Payment Agreement, a credit up to a maximum of two basis points multiplied by the total amount of assets under the Plan per year, excluding participant loans, is available for paying eligible Plan expenses. The Company is responsible for the payment of any additional fees related to the management of the SACB 401(k) Plan. Such fees are not material to the Company. The Samuel Adams Brewery Company, Ltd. Local Union No. 1199 Pension Plan (the “Local 1199 Pension Plan”) was a Company-sponsored defined benefit pension plan. It was established in 1991 and was open to all union employees who are covered by the Company’s collective bargaining agreement with Teamsters Local Union. No. 1199 (“Local Union 1199”), or persons on leave from the Company who are employed by Local Union 1199, and in either case who have completed 12 consecutive months of employment with at least 750 hours worked. The defined benefit is determined based on years of service since July 1991. On April 21, 2019, the Company reached an agreement with the Local Union 1199 to terminate the Local Union No. 1199 Pension Plan effective January 1, 2020 through either lump sum payments or the purchase of third-party annuities. On May 28, 2020, the Company received a positive determination letter for the termination on the plan from the IRS. During 2020, the Company completed the termination of the plan and recorded an expense of $2.0 million as a result of the termination. The Company made contributions of $2.9 million, $0.3 million and $0.3 million in fiscal years 2020, 2019 and 2018, respectively. As of December 26, 2020, there was no unfunded projected pension benefit. As of December 28, 2019, the unfunded projected pension benefits were $2.7 million The Company provides a supplement to eligible retirees from Local 1, Local 20, and Local Union 1199 to assist them with the cost of Medicare gap coverage after their retirement on account of age or permanent disability. To qualify for this benefit (collectively, the “Retiree Medical Plan”), an employee must have worked for at least 20 years for the Company or its predecessor at the Company’s Cincinnati Brewery, must have been enrolled in the Company’s group medical insurance plan for at least 5 years before retirement and, in the case of retirees from Local 20, for at least 7 of the last 10 years of their employment, and must be eligible for Medicare benefits under the Social Security Act. The accumulated post-retirement benefit obligation was determined using a discount rate of 2.50% at December 26, 2020 and 3.32% at December 28, 2019 and a 2.50% health care cost increase based on the Cincinnati Consumer Price Index for the years 2020, 2019, and 2018. The effect of a 1% point increase and the effect of a 1% point decrease in the assumed health care cost trend rates on the aggregate of the service and interest cost components of net periodic post-retirement health care benefit costs and on the accumulated post-retirement benefit obligation for health care benefits would not be significant. In addition, the comprehensive medical plan offered to currently employed members of Local 20 remains available to them should they retire after reaching age 57, and before reaching age 65, with at least 20 years of service with the Company or its predecessor at the Company’s Cincinnati Brewery. These eligible retirees may choose to continue to be covered under the Company’s comprehensive group medical plan until they reach the age when they are eligible for Medicare health benefits under the Social Security Act or coverage under a comparable State health benefit plan. Eligible retirees pay 100% of the cost of the coverage. The funded status of the Local 1199 Pension Plan and the Retiree Medical Plan are as follows: Local 1199 Pension Plan Retiree Medical Plan December 26, 2020 December 28, 2019 December 26, 2020 December 28, 2019 (in thousands) Fair value of plan assets at end of fiscal year $ — $ 3,946 $ — $ — Benefit obligation at end of fiscal year — 6,680 1,077 888 Unfunded Status $ — $ (2,734 ) $ (1,077 ) $ (888 ) The Local 1199 Plan’s weighted-average asset allocations at the measurement dates by asset category are as follows: Asset Category December 26, 2020 December 28, 2019 Cash equivalents 0 % 100 % Equity securities 0 % 0 % Debt securities 0 % 0 % Total 0 % 100 % |
Net Income per Share
Net Income per Share | 12 Months Ended |
Dec. 26, 2020 | |
Earnings Per Share [Abstract] | |
Net Income per Share | P. Net Income per Common Share - Basic The following table sets forth the computation of basic net income per share using the two-class method: December 26, December 28, December 29, 2020 2019 2018 (in thousands, except per share data) Net Income $ 191,960 $ 110,041 $ 92,663 Allocation of net income for basic: Class A Common Stock $ 153,106 $ 82,474 $ 68,080 Class B Common Stock 37,690 26,600 23,710 Unvested participating shares 1,164 967 873 $ 191,960 $ 110,041 $ 92,663 Weighted average number of shares for basic: Class A Common Stock 9,734 8,908 8,620 Class B Common Stock* 2,396 2,873 3,002 Unvested participating shares 74 105 111 12,204 11,886 11,733 Net income per share for basic: Class A Common Stock $ 15.73 $ 9.26 $ 7.90 Class B Common Stock $ 15.73 $ 9.26 $ 7.90 * Change in Class B Common Stock resulted from the conversion of 100,000 shares to Class A Common Stock on November 1, 2018, 100,000 shares to Class A Common stock on August 8, 2019 and 145,000 shares to Class A Common stock on December 13, 2019, 150,000 shares to Class A Common Stock on March 11, 2020, 215,000 shares to Class A Common Stock on May 6, 2020 and 130,000 shares to Class A Common Stock on November 3, 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 method, which assumes the participating securities are not exercised or converted. The following tables set forth the computation of diluted net income per share, assuming the conversion of all Class B Common Stock into Class A Common Stock and using the two-class method for unvested participating shares: Fifty-two weeks ended December 26, 2020 Earnings to Common Shareholders Common Shares EPS (in thousands, except per share data) As reported - basic $ 153,106 9,734 $ 15.73 Add: effect of dilutive potential common shares Share-based awards — 153 Class B Common Stock 37,690 2,396 Net effect of unvested participating shares 14 Net income per common share - diluted $ 190,810 $ 12,283 15.53 Fifty-two weeks ended December 28, 2019 Earnings to Common Shareholders Common Shares EPS (in thousands, except per share data) As reported - basic $ 82,474 8,908 $ 9.26 Add: effect of dilutive potential common shares Share-based awards — 127 Class B Common Stock 26,600 2,873 Net effect of unvested participating shares 10 — Net income per common share - diluted $ 109,084 11,908 9.16 Fifty-two weeks ended December 29, 2018 Earnings to Common Shareholders Common Shares EPS (in thousands, except per share data) As reported - basic $ 68,080 8,620 $ 7.90 Add: effect of dilutive potential common shares Share-based awards — 112 Class B Common Stock 23,710 3,002 Net effect of unvested participating shares 8 — Net income per common share - diluted $ 91,798 11,734 $ 7.82 Basic net income per common share for each share of Class A Common Stock and Class B Common Stock is $15.73, $9.26, and $7.90 for the fiscal years 2020, 2019, and 2018, respectively, as each share of Class A and Class B participates equally in earnings. Shares of Class B are convertible at any time into shares of Class A on a one-for-one basis at the option of the stockholder. There were no stock options with anti-dilutive effects that were excluded in computing diluted income during fiscal 2020. Weighted average stock options to purchase 23,000, and 100,000 shares of Class A Common Stock were outstanding during fiscal 2019, and 2018, respectively, but not included in computing diluted income per share because their effects were anti-dilutive. Additionally, performance-based stock options to purchase 10,000, and 10,000 shares of Class A Common Stock were outstanding during fiscal 2019, and 2018, respectively, but not included in computing dilutive income per share because the performance criteria of these stock options were not met as of December 28, 2019, and December 29, 2018, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 26, 2020 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Q. Accumulated other comprehensive loss represents amounts of unrecognized actuarial gains or losses related to the Company sponsored defined benefit pension plan and post-retirement medical plan, net of tax effect, and cumulative currency translation adjustments. Changes in accumulated other comprehensive loss represent actuarial losses or gains, net of tax effect, recognized as components of net periodic benefit costs and currency translation adjustments due to tax rate changes in the period. The following table details the changes in accumulated other comprehensive loss for 20 20 , 201 9 , and 201 8 (in thousands): Accumulated Other Comprehensive (Loss) Income Balance at December 30, 2017 $ (1,288 ) Deferred pension and other post-retirement benefit costs, net of taxes of $64 191 Amortization of Deferred benefit costs, net of taxes of $29 86 One time effect of adoption of ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (211 ) Currency translation adjustment 25 Balance at December 29, 2018 $ (1,197 ) Deferred pension and other post-retirement benefit costs, net of taxes of $150 (442 ) Amortization of Deferred benefit costs, net of taxes of $26 (77 ) Currency translation adjustment 47 Balance at December 28, 2019 $ (1,669 ) Deferred pension and other post-retirement benefit costs, net of tax benefit of $502 1,611 Amortization of Deferred benefit costs, net of taxes of $35 (219 ) Currency translation adjustment 25 Balance at December 26, 2020 $ (252 ) |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 26, 2020 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | R. The Company maintains reserves against accounts receivable for doubtful accounts and inventory for obsolete and slow-moving inventory. The Company also maintains reserves against accounts receivable for distributor promotional allowances. In addition, the Company maintains a reserve for estimated returns of stale beer, which is included in accrued expenses. Allowance for Doubtful Accounts Balance at Beginning of Period Net Provision (Recovery) Amounts Charged Against Reserves Balance at End of Period (In thousands) 2020 $ 47 $ 488 $ — $ 535 2019 $ 2 $ 45 $ — $ 47 2018 $ — $ 2 $ — $ 2 Discount Accrual Balance at Beginning of Period Net Provision (Recovery) * Amounts Charged Against Reserves Balance at End of Period (In thousands) 2020 $ 6,272 $ 59,279 $ (56,194 ) $ 9,357 2019 $ 4,636 $ 43,920 $ (42,284 ) $ 6,272 2018 $ 3,072 $ 36,213 $ (34,649 ) $ 4,636 Inventory Obsolescence Reserve Balance at Beginning of Period Net Provision (Recovery) Amounts Charged Against Reserves Balance at End of Period (In thousands) 2020 $ 6,375 $ 11,248 $ (11,292 ) $ 6,331 2019 $ 2,580 $ 8,092 $ (4,297 ) $ 6,375 2018 $ 1,826 $ 4,175 $ (3,421 ) $ 2,580 Stale Beer Reserve Balance at Beginning of Period Net Provision (Recovery) Amounts Charged Against Reserves Balance at End of Period (In thousands) 2020 $ 1,828 $ 8,411 $ (7,147 ) $ 3,092 2019 $ 2,146 $ 4,406 $ (4,724 ) $ 1,828 2018 $ 3,023 $ 2,691 $ (3,568 ) $ 2,146 * 2018 net provision of the discount accrual includes $1.7 million related to the cumulative effect adjustment to retained earnings and the current year adjustment to deferred revenue related to the adoption of ASU 2014-09. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 26, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | S. The Company has entered into a lease with the Dogfish Head founders and other owners of buildings used in certain of the Company’s restaurant operations. The lease is for ten years with renewal options. The total payments due under the initial ten year term is $3.6 million. Total related party expense recognized for fiscal 2020 was approximately $348,000. During 2020, the Company entered into an agreement to sell a boat and a car to the Dogfish Head founders at market value of approximately $26,000. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 26, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | T. The Company evaluated subsequent events occurring after the balance sheet date, December 26, 2020, 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. |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Dec. 26, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (Unaudited) | U. The Company’s fiscal quarters are consistently determined year to year and generally consist of 13 weeks, except in those fiscal years in which there are fifty-three weeks where the last fiscal quarters then consist of 14 weeks. In management’s opinion, the following unaudited information includes all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the information for the quarters presented. The operating results for any quarter are not necessarily indicative of results for any future quarters. For Quarters Ended December 26, 2020 September 26, 2020 June 27, 2020 March 28, 2020 December 28, 2019 (1) September 28, 2019 (1) June 29, 2019 (1) March 30, 2019 (13 weeks) (13 weeks) (13 weeks) (13 weeks) (13 weeks) (13 weeks) (13 weeks) (13 weeks) (In thousands, except per share data) Net revenue $ 460,937 $ 492,792 $ 452,138 $ 330,565 $ 301,300 $ 378,466 $ 318,407 $ 251,651 Gross profit 216,270 240,585 209,624 147,973 142,789 187,835 159,002 124,540 Operating income 42,125 101,781 78,769 21,532 17,702 59,836 37,932 29,443 Net income $ 32,817 $ 80,768 $ 60,141 $ 18,234 $ 13,762 $ 44,729 $ 27,856 $ 23,694 Net income per share – basic $ 2.68 $ 6.61 $ 4.93 $ 1.50 $ 1.13 $ 3.70 $ 2.39 $ 2.04 Net income per share – diluted $ 2.64 $ 6.51 $ 4.88 $ 1.49 $ 1.12 $ 3.65 $ 2.36 $ 2.02 ( 1 ) During the second, third and fourth quarter of 2019, the Company recorded $1.9 million, $5.9 million and $2.1 million in non-reoccurring transaction fees related to the Dogfish Head Transaction, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 26, 2020 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year The Company’s fiscal year is a fifty-two or fifty-three-week period ending on the last Saturday in December. The 2020, 2019 and 2018 fiscal years all consisted of fifty-two weeks. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly-owned. All intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
COVID-19 | COVID-19 The Company began seeing the impact of the COVID-19 pandemic on its business in early March 2020. The direct financial impact of the pandemic has primarily shown in significantly reduced keg demand from the on-premise channel and higher labor and safety-related costs at the Company’s breweries. In fiscal year 2020, shipments of kegs decreased to 3% of total shipment volume from 11% of shipments in 2019. Also, in fiscal year 2020, the Company recorded COVID-19 related pre-tax reductions in net revenue and increases in other costs that total $16.0 million. In addition to these direct financial impacts, COVID-19 related safety measures resulted in a reduction of brewery productivity. This has shifted more volume to third-party breweries, which increased production costs and negatively impacted gross margins. The Company will continue to assess and manage this situation and will provide a further update in each quarterly earnings release, to the extent that the effects of the COVID-19 pandemic are then known more clearly. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents at December 26, 2020 and December 28, 2019 included cash on-hand and money market instruments that are highly liquid investments. Cash and cash equivalents are carried at cost, which approximates fair value. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts The Company’s accounts receivable primarily consist of trade receivables. The Company records an allowance for doubtful accounts that is based on historical trends, customer knowledge, any known disputes, and the aging of the accounts receivable balances combined with management’s estimate of future potential recoverability. Receivables are written off against the allowance after all attempts to collect a receivable have failed. The Company believes its allowance for doubtful accounts as of December 26, 2020 and December 28, 2019 are adequate, but actual write-offs could exceed the recorded allowance. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash equivalents and trade receivables. The Company places its cash equivalents with high credit quality financial institutions. As of December 26, 2020, the Company’s cash and cash equivalents were invested in investment-grade, highly liquid U.S. government agency corporate money market accounts. The Company sells primarily to a network of independent wholesalers in the United States and to a network of foreign wholesalers, importers or other agencies (collectively referred to as “Distributors”). In 2020, 2019 and 2018, sales to foreign Distributors were approximately 4% of total sales. Receivables arising from these sales are not collateralized; however, credit risk is minimized as a result of the large and diverse nature of the Company’s customer base. There were no individual customer accounts receivable balances outstanding at December 26, 2020 or December 28, 2019 that were in excess of 10% of the gross accounts receivable balance on those dates. No individual customers represented more than 10% of the Company’s revenues in fiscal years 2020, 2019, or 2018. |
Financial Instruments and Fair Value of Financial Instruments | Financial Instruments and Fair Value of Financial Instruments The Company’s primary financial instruments at December 26, 2020 and December 28, 2019 consisted of cash equivalents, accounts receivable, and accounts payable. The Company determines the fair value of its financial assets and liabilities in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures |
Inventories and Provision for Excess or Expired Inventory | Inventories and Provision for Excess or Expired Inventory Inventories consist of raw and packaging materials, work in process and finished goods. Raw materials, which principally consist of hops, malt, apple juice, other brewing materials and packaging, are stated at the lower of cost (first-in, first-out basis) or net realizable value. The Company’s goal is to maintain on-hand a supply of approximately two years for essential hop varieties, in order to limit the risk of an unexpected reduction in supply. Inventories are generally classified as current assets. The Company classifies hops inventory in excess of two years of forecasted usage in other long-term assets. The cost elements of work in process and finished goods inventory consist of raw materials, direct labor and manufacturing overhead. Packaging design costs are expensed as incurred. The Company enters into multi-year purchase commitments in order to secure adequate supply of ingredients and packaging, to brew and package its products. Inventory on hand and under purchase commitments totaled approximately $285.0 million at December 26, 2020. The provisions for excess or expired inventory are based on management’s estimates of forecasted usage of inventories on hand and under contract. Forecasting usage involves significant judgments regarding future demand for the Company’s various existing products and products under development as well as the potency and shelf-life of various ingredients. A significant change in the timing or level of demand for certain products as compared to forecasted amounts may result in recording additional provisions for excess or expired inventory in the future. Provisions for excess inventory are included in cost of goods sold and have historically been adequate to cover incurred inventory losses. Provision for excess or expired inventory included in cost of goods sold was $11.3 million, $8.1 million, and $4.2 million in fiscal years 2020, 2019, and 2018 respectively. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant, and equipment are stated at cost or fair value as of the date of acquisition. Expenditures for repairs and maintenance are expensed as incurred. Major renewals and betterments that extend the life of the property are capitalized. Depreciation is computed using the straight-line method based upon the estimated useful lives of the underlying assets as follows: Kegs 5 years Computer software and equipment 2 to 5 years Office equipment and furniture 3 to 7 years Machinery and plant equipment 3 to 20 years, or the term of the production agreement, whichever is shorter Leasehold improvements Lesser of the remaining term of the lease or estimated useful life of the asset Building and building improvements 12 to 20 years, or the remaining useful life of the building, whichever is shorter The carrying value of property, plant and equipment, net of accumulated depreciation, at December 26, 2020 was $623.1 million. For purposes of determining whether there are any impairment losses, as further discussed below, management has historically examined the carrying value of the Company’s identifiable long-lived assets, including their useful lives, semi-annually, or more frequently when indicators of impairment are present. Evaluations of whether indicators of impairment exist involve judgments regarding the current and future business environment and the length of time the Company intends to use the asset. If an impairment loss is identified based on the fair value of the asset, as compared to the carrying value of the asset, such loss would be charged to expense in the period the impairment is identified. Furthermore, if the review of the carrying values of the long-lived assets indicates impairment of such assets, the Company may determine that shorter estimated useful lives are more appropriate. In that event, the Company will be required to record additional depreciation in future periods, which will reduce earnings. Estimating the amount of impairment, if any, requires significant judgments including identification of potential impairments, market comparison to similar assets, estimated cash flows to be generated by the asset, discount rates, and the remaining useful life of the asset. Impairment of assets included in operating expenses was $4.4 million, $0.9 million, and $0.7 million in fiscal years 2020, 2019 and 2018, respectively. Factors generally considered important which could trigger an impairment review on the carrying value of long-lived assets include the following: (1) significant underperformance relative to historical or projected future operating results; (2) significant changes in the manner of use of acquired assets or the strategy for the Company’s overall business; (3) underutilization of assets; and (4) discontinuance of products by the Company or its customers. The Company believes that the carrying value of its long-lived assets as of December 26, 2020 and December 28, 2019 was realizable. |
Segment Reporting | Segment Reporting The Company consists of one operating segment that produces and sells alcohol beverages under the Company’s Truly Hard Seltzer, Twisted Tea, Samuel Adams, , Angry Orchard, Dogfish Head, Angel City, Coney Island, and Concrete Beach, brands. All brands are predominantly beverages that are manufactured using similar production processes, have comparable alcohol content, generally fall under the same regulatory environment, and are sold to the same types of customers in similar size quantities at similar price points and through the same channels of distribution. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company does not amortize goodwill and tradename intangible assets but evaluates the recoverability by comparing the carrying value and the fair value annually at the end of the fiscal month of August, or more frequently when indicators of impairment are present. The Company has concluded that its goodwill and intangible assets were not impaired as of December 26, 2020 and December 28, 2019. Customer relationship intangible assets are amortized over the useful life of fifteen years. As of December 26, 2020, and December 28, 2019, goodwill amounted to $112.5 million. As of December 26, 2020, and December 28, 2019, intangible assets amounted to $103.9 million and $104.3 million, respectively. |
Refundable Deposits on Kegs and Pallets | Refundable Deposits on Kegs and Pallets The Company distributes its packaged hard seltzer, beer and hard cider primarily in cans and glass bottles and its draft beer in kegs and such cans, bottles and kegs are shipped on pallets to Distributors. Most kegs and pallets are owned by the Company. Kegs are reflected in the Company’s balance sheets at cost and are depreciated over the estimated useful life of the keg, while pallets are expensed upon purchase. Upon shipment of beer to Distributors, the Company collects a refundable deposit on the kegs and pallets, which is included in current liabilities in the Company’s balance sheets. Upon return of the kegs and pallets to the Company, the deposit is refunded to the Distributor. The Company has experienced some loss of kegs and pallets and anticipates that some loss will occur in future periods due to the significant volume of kegs and pallets handled by each Distributor and retailer, the homogeneous nature of kegs and pallets owned by most brewers, and the relatively small deposit collected for each keg when compared with its market value. The Company believes that this is an industry-wide issue and that the Company’s loss experience is not atypical. The Company believes that the loss of kegs and pallets, after considering the forfeiture of related deposits, has not been material to the financial statements. The Company uses internal records, records maintained by Distributors, records maintained by other third-party vendors and historical information to estimate the physical count of kegs and pallets held by Distributors. These estimates affect the amount recorded as property, plant and equipment and current liabilities as of the date of the financial statements. The actual liability for refundable deposits could differ from these estimates. For the year ended December 26, 2020, the Company decreased its liability for refundable deposits, gross property, plant and equipment and related accumulated depreciation by $0.4 million, $0.8 million and $0.8 million, respectively. For the year ended December 28, 2019, the Company decreased its liability for refundable deposits, gross property, plant and equipment and related accumulated depreciation by $0.8 million, $1.3 million and $1.3 million, respectively. As of December 26, 2020, and December 28, 2019, the Company’s balance sheet includes $15.5 million and $19.5 million, respectively, in refundable deposits on kegs and pallets and $0.3 million and $0.5 million, respectively, in kegs, net of accumulated depreciation. |
Income Taxes | Income Taxes Income tax expense was $52.3 million, $34.3 million, and $23.6 million in fiscal years 2020, 2019, and 2018, respectively. The Company provides for deferred taxes using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s consolidated financial statements or tax returns. This results in differences between the book and tax basis of the Company’s assets, liabilities and carry-forwards, such as tax credits. In estimating future tax consequences, all expected future events, other than enactment of changes in the tax laws or rates, are generally considered. Valuation allowances are provided when recovery of deferred tax assets does not meet the more likely than not standards as defined in ASC Topic 740, Income Taxes The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations in several different state tax jurisdictions. The Company is periodically reviewed by tax authorities regarding the amount of taxes due. These reviews include inquiries regarding the timing and amount of deductions and the allocation of income among various tax jurisdictions. The Company records estimated reserves for exposures associated with positions that it takes on its income tax returns that do not meet the more likely than not standards as defined in ASC Topic 740, Income Taxes |
Revenue Recognition and Classification of Customer Programs and Incentives | Revenue Recognition and Classification of Customer Programs and Incentives During fiscal years 2020, 2019 and 2018 approximately 95% of the Company’s revenue was from shipments of its products to domestic Distributors and 4% from shipments to international Distributors, primarily located in Canada. Less than 1% of the Company’s revenue is from retail beer, cider, food and merchandise sales at the Company’s retail locations. The Company recognizes revenue when obligations under the terms of a contract with its customer are satisfied; generally, this occurs with the transfer of control of its products. Revenue is measured as the amount of consideration expected to be received in exchange for transferring products. If the conditions for revenue recognition are not met, the Company defers the revenue until all conditions are met. As of December 26, 2020, and December 28, 2019, the Company had deferred revenue of $13.5 million and $7.0 million, respectively, 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. The Company is committed to maintaining the freshness of its products in the market. In certain circumstances and with the Company’s approval, the Company accepts and destroys stale beer that is returned by Distributors. The Company generally credits approximately fifty percent of the distributor’s cost of beer that has passed its freshness expiration date when it is returned to the Company or destroyed. The Company reduces revenue and establishes an accrual based upon both historical returns, which is applied to an estimated lag time for receipt of product, and knowledge of specific return transactions. Estimating this reserve involves significant judgments and estimates, including comparability of historical return trends to future trends, lag time from date of sale to date of return, and product mix of returns. Stale beer expense is reflected in the accompanying financial statements as a reduction of revenue. Historically, the cost of actual stale beer returns has been in line with established reserves; however, the cost could differ materially from the reserves which would impact revenue. As of December 2 6 , 20 20 , and December 2 8 , 201 9 , the stale beer reserve was $ 3.1 million and $ million, respectively. These amounts are included in accrued expenses and other current liabilities in the accompanying consolidated balance sheets. Provision for stale beer recorded as redu ctions to revenue totaled $ 8.4 million, $ 4.4 million, and $ 2.7 million in fiscal years 2020, 2019, and 2018 respectively. Customer programs and incentives are a common practice in the alcohol beverage industry. Amounts paid in connection with customer programs and incentives are recorded as reductions to net revenue or as advertising, promotional and selling expenses, based on the nature of the expenditure. Customer incentives and other payments made to Distributors are primarily based upon the performance of certain marketing and advertising activities. Depending on applicable state laws and regulations, these activities promoting the Company’s products may include, but are not limited to, point-of-sale and merchandise placement, samples, product displays, promotional programs at retail locations and meals, travel and entertainment. Amounts paid to customers in connection with these programs that were recorded as reductions to net revenue or as advertising, promotional and selling expenses totaled $85.0 million, $75.2 million and $55.5 million in fiscal years 2020, 2019 and 2018, respectively. Estimates are based on historical and projected experience for each type of program or customer and have historically been in line with actual costs incurred. Customer promotional discount programs are entered into with Distributors for certain periods of time. Amounts paid to Distributors in connection with these programs in fiscal years 2020, 2019 and 2018 were $59.3 million, $43.9 million and $34.5 million, respectively. The reimbursements for discounts to Distributors are recorded as reductions to net revenue. The agreed-upon discount rates are applied to certain Distributors’ sales to retailers, based on volume metrics, in order to determine the total discounted amount. The computation of the discount allowance requires that management make certain estimates and assumptions that affect the timing and amounts of revenue and liabilities recorded. Actual promotional discounts owed and paid have historically been in line with allowances recorded by the Company; however, the amounts could differ from the estimated allowances. Customer incentives and other payments are made primarily to Distributors based upon the performance of certain marketing and advertising activities. Depending on applicable state laws and regulations, these activities promoting the Company’s products may include, but are not limited to point-of-sale and merchandise placement, samples, product displays, promotional programs at retail locations and meals, travel and entertainment. Amounts paid to customers in connection with these programs in fiscal years 2020, 2019 and 2018 were $25.7 million, $31.3 million and $21.0 million, respectively. In fiscal years 2020, 2019 and 2018, the Company recorded certain of these costs in the total amount of $23.1 million, $21.6 million and $13.9 million, respectively as reductions to net revenue. Costs recognized in net revenues include, but are not limited to, promotional discounts, sales incentives and certain other promotional activities. Costs recognized in advertising, promotional and selling expenses include point of sale materials, samples and media advertising expenditures in local markets. These costs are recorded as incurred, generally when invoices are received; however certain estimates are required at the period end. Estimates are based on historical and projected experience for each type of program or customer and have historically been in line with actual costs incurred. In connection with its preparation of financial statements and other financial reporting, management is required to make certain estimates and assumptions regarding the amount, timing and classification of expenditures resulting from these activities. Actual expenditures incurred could differ from management’s estimates and assumptions. |
Excise Taxes | Excise Taxes The Company is responsible for compliance with the Alcohol and Tobacco Tax and Trade Bureau of the U.S. Treasury Department (the “TTB”) regulations, including making timely and accurate excise tax payments. The Company is subject to periodic compliance audits by the TTB. Individual states also impose excise taxes on alcohol beverages in varying amounts. The Company calculates its excise tax expense based upon units shipped and on its understanding of the applicable excise tax laws. The Company benefited from a reduction in federal excise taxes of $11.9 million and $8.9 million in fiscal years 2020 and 2019, respectively, as a result of the Tax Cuts and Jobs Act of 2017. |
Cost of Goods Sold | Cost of Goods Sold The following expenses are included in cost of goods sold: raw material costs, packaging material costs, costs and income related to deposit activity, purchasing and receiving costs, manufacturing labor and overhead, brewing and processing costs, inspection costs relating to quality control, inbound freight charges, depreciation expense related to manufacturing equipment and warehousing costs, which include rent, labor and overhead costs. |
Shipping Costs | Shipping Costs Costs incurred for the shipping of products to customers are included in advertising, promotional and selling expenses in the accompanying consolidated statements of comprehensive income. The Company incurred shipping costs of $97.6 million, $69.1 million, and $61.8 million in fiscal years 2020, 2019 and 2018, respectively. |
Advertising and Sales Promotions | Advertising and Sales Promotions The following expenses are included in advertising, promotional and selling expenses in the accompanying consolidated statements of comprehensive income: media advertising and production costs, sales and brand related expenses, sales and brand salary and benefit expenses, stock compensation, meals, travel and entertainment expenses, promotional activity expenses, shipping costs related to shipments of finished goods from manufacturing locations to distributor locations and point-of-sale items. Total advertising and sales promotional expenditures of $211.2 million, $177.2 million, and $145.1 million were included in advertising, promotional and selling expenses in the accompanying consolidated statements of comprehensive income for fiscal years 2020, 2019 and 2018, respectively. The Company conducts certain advertising and promotional activities in its Distributors’ markets and the Distributors make contributions to the Company for such efforts. Reimbursements from Distributors for advertising and promotional activities are recorded as reductions to advertising, promotional and selling expenses. |
General and Administrative Expenses | General and Administrative Expenses The following expenses are included in general and administrative expenses in the accompanying consolidated statements of comprehensive income: general and administrative salary and benefit expenses, stock compensation, insurance costs, consulting and professional service fees, rent and utility expenses, meals, travel and entertainment expenses for general and administrative employees, and other general and administrative overhead costs. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for share-based awards in accordance with ASC Topic 718, Compensation – Stock Compensation As permitted by ASC 718, the Company elected to use a lattice model, such as the trinomial option-pricing model, to estimate the fair values of stock options. All option-pricing models require the input of subjective assumptions. These assumptions include the estimated volatility of the Company’s common stock price over the expected term, the expected dividend rate, the estimated post-vesting forfeiture rate, the risk-free interest rate and expected exercise behavior. See Note N for further discussion of the application of the option-pricing models. In addition, an estimated pre-vesting forfeiture rate is applied in the recognition of the compensation charge. Periodically, the Company grants performance-based stock options. The Company only recognizes compensation expense with respect to these options if it is probable that the performance targets will be met. Consequently, at the end of each reporting period, the Company estimates whether it is probable that performance targets will be met. Changes in the subjective assumptions and estimates can materially affect the amount of stock-based compensation expense recognized in the consolidated statements of comprehensive income. |
Net Income Per Share | Net Income Per Share Basic net income per share is calculated by dividing net income by the weighted-average common shares outstanding. Diluted net income per share is calculated by dividing net income by the weighted-average common shares and potentially dilutive securities outstanding during the period using the treasury stock method or the two-class method, whichever is more dilutive. |
Accounting Pronouncements Recently Adopted | Accounting Pronouncements Recently Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment |
Accounting Pronouncements Not Yet Effective | Accounting Pronouncements Not Yet Effective In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives | Kegs 5 years Computer software and equipment 2 to 5 years Office equipment and furniture 3 to 7 years Machinery and plant equipment 3 to 20 years, or the term of the production agreement, whichever is shorter Leasehold improvements Lesser of the remaining term of the lease or estimated useful life of the asset Building and building improvements 12 to 20 years, or the remaining useful life of the building, whichever is shorter |
Dogfish Head Brewery Transact_2
Dogfish Head Brewery Transaction (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Business Combinations [Abstract] | |
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 | Fifty-two weeks ended December 28, 2019 Net revenue $ 1,304,239 Net income $ 116,868 Basic earnings per share $ 9.83 Diluted earnings per share $ 9.73 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories consisted of the following: December 26, 2020 December 28, 2019 (in thousands) Current inventory: Raw materials $ 69,272 $ 61,522 Work in process 16,846 12,631 Finished goods 44,792 31,885 Total current inventory 130,910 106,038 Long term inventory 9,639 10,048 Total inventory $ 140,549 $ 116,086 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Summary of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following: December 26, 2020 December 28, 2019 (in thousands) Prepaid brewing services fee - short term (see Note L) $ 14,816 $ 4,936 Prepaid advertising, promotional and selling 4,876 1,649 Down payments to vendors 4,693 24 Other 5,845 5,468 $ 30,230 $ 12,077 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Property Plant And Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Property, plant and equipment consisted of the following: December 26, 2020 December 28, 2019 (in thousands) Machinery and plant equipment $ 641,790 $ 571,506 Kegs 61,582 66,011 Land 25,753 25,759 Building and building improvements 174,328 130,311 Office equipment and furniture 31,115 29,202 Leasehold improvements 43,157 48,528 Assets under construction 84,564 59,027 1,062,289 930,344 Less accumulated depreciation (439,206 ) (389,276 ) $ 623,083 $ 541,068 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Leases [Abstract] | |
ROU assets and lease liabilities | As of December 26, 2020, total ROU assets and lease liabilities were as follows: Classification December 26, 2020 December 28, 2019 Right-of-use assets (in thousands) Operating lease assets Operating right-of-use assets $ 58,483 $ 53,758 Finance lease assets Property, plant and equipment, net 4,035 2,531 Lease Liabilities Current Operating lease liabilities Current operating lease liabilities 8,232 5,168 Finance lease liabilities Accrued expenses and other current liabilities 1,453 546 Non-current Operating lease liabilities Non-current operating lease liabilities 59,171 53,940 Finance lease liabilities Other liabilities 2,631 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 December 26, 2020 were as follows: Finance Leases December 26, 2020 December 28, 2019 (in thousands) Gross value $ 5,526 $ 2,837 Accumulated amortization (1,491 ) (306 ) Carrying value $ 4,035 $ 2,531 |
Components of lease cost | Components of lease cost for the fiscal year-ended are as follows: Lease Cost December 26, 2020 December 28, 2019 (in thousands) Operating lease cost $ 9,764 $ 5,625 Variable lease costs not included in liability 1,643 1,064 Finance lease cost: Amortization of right-of-use asset $ 1,185 $ 306 Interest on lease liabilities 143 56 Total finance lease cost $ 1,328 $ 362 |
Maturities of lease liabilities | Maturities of lease liabilities as of December 26, 2020 are as follows: Operating Finance Weighted-Average Remaining Term in Years Leases Leases Operating Leases Finance Leases (in thousands) 2021 $ 10,454 $ 1,572 2022 9,908 1,572 2023 9,737 863 2024 9,714 265 2025 6,389 8 Thereafter 32,891 15 Total lease payments 79,093 4,295 Less imputed interest (based on 3.5% weighted- average discount rate) (11,690 ) (211 ) Present value of lease liability $ 67,403 $ 4,084 8.8 2.9 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
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 fifty-two weeks ended December 26, 2020 and December 28, 2019 were as follows: Fifty-two weeks ended December 26, December 28, 2020 2019 (in thousands) Goodwill as of beginning of period $ 112,529 $ 3,683 Acquired goodwill — 108,846 Impairment of goodwill — — Goodwill as of end of period $ 112,529 $ 112,529 |
Schedule of intangible assets | The Company’s intangible assets as of December 26, 2020 and December 28, 2019 were as follows: As of December 26, 2020 As of December 28, 2019 Estimated Useful Life (Years) Gross Carrying Value Accumulated Amortization Net Book Value Gross Carrying Value Accumulated Amortization Net Book Value (in thousands) (in thousands) Customer Relationships 15 $ 3,800 $ (380 ) $ 3,420 $ 3,800 $ (127 ) $ 3,673 Trade Names Indefinite 100,510 — 100,510 100,599 — 100,599 Total intangible assets $ 104,310 $ (380 ) $ 103,930 $ 104,399 $ (127 ) $ 104,272 |
Schedule of amortization expense | The Company expects to record amortization expense as follows over the five subsequent years: Fiscal Year Amount (in thousands) 2021 $ 253 2022 253 2023 253 2024 253 2025 253 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Payables And Accruals [Abstract] | |
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: December 26, 2020 December 28, 2019 (in thousands) Employee wages, benefits and reimbursements $ 50,938 $ 35,394 Advertising, promotional and selling expenses 15,752 17,009 Accrued deposits 15,616 20,483 Deferred revenue 13,522 6,984 Accrued taxes 10,133 3,316 Accrued capital expenditures 7,523 2,621 Other accrued liabilities 16,060 13,300 $ 129,544 $ 99,107 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Income Tax Disclosure [Abstract] | |
Significant Components of Provisions for Income Taxes | Significant components of the provision for income taxes are as follows: 2020 2019 2018 (in thousands) Current: Federal $ 25,115 $ 18,510 $ 4,471 State 9,455 8,084 4,894 Total current 34,570 26,594 9,365 Deferred: Federal 16,363 8,081 12,860 State 1,337 (346 ) 1,398 Total deferred 17,700 7,735 14,258 Total provision for income taxes $ 52,270 $ 34,329 $ 23,623 |
Reconciliations to Statutory Rates | The Company’s reconciliations to statutory rates are as follows: 2020 2019 2018 Statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 4.4 4.6 4.6 Deduction relating to excess stock based compensation (4.3 ) (3.2 ) (3.6 ) Non-deductable meals & entertainment 0.2 0.7 1.1 Accounting method changes — — (3.9 ) Change in valuation allowance 0.1 0.4 0.7 Other — 0.3 0.4 21.4 % 23.8 % 20.3 % |
Significant Components of Company's Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities are as follows at: December 26, 2020 December 28, 2019 (in thousands) Deferred tax assets: Lease Liabilities $ 17,951 $ 15,567 Inventory 2,525 5,868 Stock-based compensation expense 5,568 5,818 Accrued expenses 3,171 3,232 Other 2,212 1,914 Total deferred tax assets 31,427 32,399 Valuation allowance (2,022 ) (1,866 ) Total deferred tax assets net of valuation allowance 29,405 30,533 Deferred tax liabilities: Property, plant and equipment (88,947 ) (78,232 ) Right-of-use Assets (15,695 ) (14,203 ) Amortization (12,900 ) (10,899 ) Prepaid expenses (4,528 ) (2,209 ) Total deferred tax liabilities (122,070 ) (105,543 ) Net deferred tax liabilities $ (92,665 ) $ (75,010 ) |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2020 2019 (in thousands) Balance at beginning of year $ 811 $ 836 Increases related to current year tax positions — 101 Increases (decreases) related to prior year tax positions 13 (63 ) Decreases related to lapse of statute of limitations (12 ) (63 ) Balance at end of year $ 812 $ 811 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Non-cancelable Contractual Obligations | As of December 26, 2020, projected cash outflows under non-cancelable contractual obligations for the remaining years under the contracts are as follows: Payments Due by Period Total 2021 2022 2023 2024 2025 Thereafter (in thousands) Ingredients (excluding hops and malt) $ 91,414 $ 91,414 $ — $ — $ — $ — $ — Brand support 87,459 61,154 8,646 8,397 4,703 4,559 — Equipment and machinery 79,379 79,379 — — — — — Hops and malt 51,988 41,103 4,667 2,317 2,175 1,726 — Other 11,659 9,854 1,633 172 — — — Total contractual obligations $ 321,899 $ 282,904 $ 14,946 $ 10,886 $ 6,878 $ 6,285 $ — |
Common Stock and Share-Based _2
Common Stock and Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Options under Equity Plan and Non-Employee Director Plan | Information related to stock options under the Equity Plan and the Non-Employee Director Plan is summarized as follows: Shares Weighted- Average Exercise Price Weighted-Average Remaining Contractual Term in Years Aggregate Intrinsic Value (in thousands) Outstanding at December 28, 2019 315,678 $ 186.53 Granted 26,402 393.54 Forfeited (2,595 ) 242 Exercised (97,638 ) 136.87 Outstanding at December 26, 2020 241,847 $ 228.58 5.93 $ 190,176 Exercisable at December 26, 2020 53,638 $ 211.32 5.16 $ 43,104 Vested and expected to vest at December 26, 2020 217,604 $ 227.97 5.91 $ 171,246 |
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: 2020 2019 2018 (in thousands) Amounts included in advertising, promotional and selling expenses $ 4,467 $ 3,996 $ 3,243 Amounts included in general and administrative expenses 10,815 8,341 6,792 Total stock-based compensation expense $ 15,282 $ 12,337 $ 10,035 Amounts related to performance-based stock awards included in total stock-based compensation expense $ 2,771 $ 1,944 $ 1,750 |
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 2019 2018 Expected volatility 32.6 % 32.1 % 34.0 % Risk-free interest rate 1.09 % 2.63 % 2.68 % Expected dividends 0 % 0 % 0 % Exercise factor 2.1 times 2.33 times 2.52 times Discount for post-vesting restrictions 0.0 % 0.0 % 0.0 % |
Summary of Vesting Activities of Shares Issued Under Investment Share Program and Restricted Stock Awards | The following table summarizes vesting activities of shares issued under the investment share program and restricted stock awards: Number of Shares Weighted Average Fair Value Non-vested at December 28, 2019 122,142 $ 213.52 Granted 42,530 350.96 Vested (45,860 ) 214.23 Forfeited (4,496 ) 236.63 Non-vested at December 26, 2020 114,316 $ 263.47 |
Stock Repurchases | As of December 26, 2020, the Company has repurchased a cumulative total of approximately 13.8 million shares of its Class A Common Stock for an aggregate purchase price of approximately $840.7 million as follows: Number of Shares Aggregate Purchase Price (in thousands) Repurchased at December 30, 2017 13,447,346 $ 752,352 2018 repurchases 349,691 88,312 Repurchased at December 29, 2018 13,797,037 840,664 2019 repurchases — — Repurchased at December 28, 2019 13,797,037 840,664 2020 repurchases — — Repurchased at December 26, 2020 13,797,037 $ 840,664 |
Employee Retirement Plans and_2
Employee Retirement Plans and Post-Retirement Medical Benefits (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Funded Status of Local 1199 Pension Plan and Retiree Medical Plan | The funded status of the Local 1199 Pension Plan and the Retiree Medical Plan are as follows: Local 1199 Pension Plan Retiree Medical Plan December 26, 2020 December 28, 2019 December 26, 2020 December 28, 2019 (in thousands) Fair value of plan assets at end of fiscal year $ — $ 3,946 $ — $ — Benefit obligation at end of fiscal year — 6,680 1,077 888 Unfunded Status $ — $ (2,734 ) $ (1,077 ) $ (888 ) |
Local 1199 Plan's Weighted-Average Asset Allocations | The Local 1199 Plan’s weighted-average asset allocations at the measurement dates by asset category are as follows: Asset Category December 26, 2020 December 28, 2019 Cash equivalents 0 % 100 % Equity securities 0 % 0 % Debt securities 0 % 0 % Total 0 % 100 % |
Net Income per Share (Tables)
Net Income per Share (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Share, Basic | The following table sets forth the computation of basic net income per share using the two-class method: December 26, December 28, December 29, 2020 2019 2018 (in thousands, except per share data) Net Income $ 191,960 $ 110,041 $ 92,663 Allocation of net income for basic: Class A Common Stock $ 153,106 $ 82,474 $ 68,080 Class B Common Stock 37,690 26,600 23,710 Unvested participating shares 1,164 967 873 $ 191,960 $ 110,041 $ 92,663 Weighted average number of shares for basic: Class A Common Stock 9,734 8,908 8,620 Class B Common Stock* 2,396 2,873 3,002 Unvested participating shares 74 105 111 12,204 11,886 11,733 Net income per share for basic: Class A Common Stock $ 15.73 $ 9.26 $ 7.90 Class B Common Stock $ 15.73 $ 9.26 $ 7.90 * Change in Class B Common Stock resulted from the conversion of 100,000 shares to Class A Common Stock on November 1, 2018, 100,000 shares to Class A Common stock on August 8, 2019 and 145,000 shares to Class A Common stock on December 13, 2019, 150,000 shares to Class A Common Stock on March 11, 2020, 215,000 shares to Class A Common Stock on May 6, 2020 and 130,000 shares to Class A Common Stock on November 3, 2020 with the ending number of shares reflecting the weighted average for the period. |
Computation of Earnings Per Share, Diluted | The following tables set forth the computation of diluted net income per share, assuming the conversion of all Class B Common Stock into Class A Common Stock and using the two-class method for unvested participating shares: Fifty-two weeks ended December 26, 2020 Earnings to Common Shareholders Common Shares EPS (in thousands, except per share data) As reported - basic $ 153,106 9,734 $ 15.73 Add: effect of dilutive potential common shares Share-based awards — 153 Class B Common Stock 37,690 2,396 Net effect of unvested participating shares 14 Net income per common share - diluted $ 190,810 $ 12,283 15.53 Fifty-two weeks ended December 28, 2019 Earnings to Common Shareholders Common Shares EPS (in thousands, except per share data) As reported - basic $ 82,474 8,908 $ 9.26 Add: effect of dilutive potential common shares Share-based awards — 127 Class B Common Stock 26,600 2,873 Net effect of unvested participating shares 10 — Net income per common share - diluted $ 109,084 11,908 9.16 Fifty-two weeks ended December 29, 2018 Earnings to Common Shareholders Common Shares EPS (in thousands, except per share data) As reported - basic $ 68,080 8,620 $ 7.90 Add: effect of dilutive potential common shares Share-based awards — 112 Class B Common Stock 23,710 3,002 Net effect of unvested participating shares 8 — Net income per common share - diluted $ 91,798 11,734 $ 7.82 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | The following table details the changes in accumulated other comprehensive loss for 20 20 , 201 9 , and 201 8 (in thousands): Accumulated Other Comprehensive (Loss) Income Balance at December 30, 2017 $ (1,288 ) Deferred pension and other post-retirement benefit costs, net of taxes of $64 191 Amortization of Deferred benefit costs, net of taxes of $29 86 One time effect of adoption of ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (211 ) Currency translation adjustment 25 Balance at December 29, 2018 $ (1,197 ) Deferred pension and other post-retirement benefit costs, net of taxes of $150 (442 ) Amortization of Deferred benefit costs, net of taxes of $26 (77 ) Currency translation adjustment 47 Balance at December 28, 2019 $ (1,669 ) Deferred pension and other post-retirement benefit costs, net of tax benefit of $502 1,611 Amortization of Deferred benefit costs, net of taxes of $35 (219 ) Currency translation adjustment 25 Balance at December 26, 2020 $ (252 ) |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Valuation And Qualifying Accounts [Abstract] | |
Summary of Valuation and Qualifying Accounts | In addition, the Company maintains a reserve for estimated returns of stale beer, which is included in accrued expenses. Allowance for Doubtful Accounts Balance at Beginning of Period Net Provision (Recovery) Amounts Charged Against Reserves Balance at End of Period (In thousands) 2020 $ 47 $ 488 $ — $ 535 2019 $ 2 $ 45 $ — $ 47 2018 $ — $ 2 $ — $ 2 Discount Accrual Balance at Beginning of Period Net Provision (Recovery) * Amounts Charged Against Reserves Balance at End of Period (In thousands) 2020 $ 6,272 $ 59,279 $ (56,194 ) $ 9,357 2019 $ 4,636 $ 43,920 $ (42,284 ) $ 6,272 2018 $ 3,072 $ 36,213 $ (34,649 ) $ 4,636 Inventory Obsolescence Reserve Balance at Beginning of Period Net Provision (Recovery) Amounts Charged Against Reserves Balance at End of Period (In thousands) 2020 $ 6,375 $ 11,248 $ (11,292 ) $ 6,331 2019 $ 2,580 $ 8,092 $ (4,297 ) $ 6,375 2018 $ 1,826 $ 4,175 $ (3,421 ) $ 2,580 Stale Beer Reserve Balance at Beginning of Period Net Provision (Recovery) Amounts Charged Against Reserves Balance at End of Period (In thousands) 2020 $ 1,828 $ 8,411 $ (7,147 ) $ 3,092 2019 $ 2,146 $ 4,406 $ (4,724 ) $ 1,828 2018 $ 3,023 $ 2,691 $ (3,568 ) $ 2,146 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results | The operating results for any quarter are not necessarily indicative of results for any future quarters. For Quarters Ended December 26, 2020 September 26, 2020 June 27, 2020 March 28, 2020 December 28, 2019 (1) September 28, 2019 (1) June 29, 2019 (1) March 30, 2019 (13 weeks) (13 weeks) (13 weeks) (13 weeks) (13 weeks) (13 weeks) (13 weeks) (13 weeks) (In thousands, except per share data) Net revenue $ 460,937 $ 492,792 $ 452,138 $ 330,565 $ 301,300 $ 378,466 $ 318,407 $ 251,651 Gross profit 216,270 240,585 209,624 147,973 142,789 187,835 159,002 124,540 Operating income 42,125 101,781 78,769 21,532 17,702 59,836 37,932 29,443 Net income $ 32,817 $ 80,768 $ 60,141 $ 18,234 $ 13,762 $ 44,729 $ 27,856 $ 23,694 Net income per share – basic $ 2.68 $ 6.61 $ 4.93 $ 1.50 $ 1.13 $ 3.70 $ 2.39 $ 2.04 Net income per share – diluted $ 2.64 $ 6.51 $ 4.88 $ 1.49 $ 1.12 $ 3.65 $ 2.36 $ 2.02 ( 1 ) During the second, third and fourth quarter of 2019, the Company recorded $1.9 million, $5.9 million and $2.1 million in non-reoccurring transaction fees related to the Dogfish Head Transaction, respectively. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 26, 2020USD ($) | Sep. 26, 2020USD ($) | Jun. 27, 2020USD ($) | Mar. 28, 2020USD ($) | Dec. 28, 2019USD ($) | Sep. 28, 2019USD ($) | [1] | Jun. 29, 2019USD ($) | [1] | Mar. 30, 2019USD ($) | [1] | Dec. 26, 2020USD ($)customer | Dec. 28, 2019USD ($)customer | Dec. 29, 2018USD ($)customer | Dec. 31, 2018 | ||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||||
Income tax expense | $ 52,270,000 | $ 34,329,000 | $ 23,623,000 | |||||||||||||
Net effect of COVID-19 on revenue, cost of goods sold and operating expense | $ 42,125,000 | $ 101,781,000 | $ 78,769,000 | $ 21,532,000 | $ 17,702,000 | [1] | $ 59,836,000 | $ 37,932,000 | $ 29,443,000 | $ 244,207,000 | $ 144,912,000 | $ 115,881,000 | ||||
Sales to foreign distributors as a percentage of total sales | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | ||||||||||
Number of individual customers represented more than ten percent of revenues | customer | 0 | 0 | 0 | |||||||||||||
Number of individual customer accounted for more than ten percent of account receivable balance | customer | 0 | 0 | ||||||||||||||
Inventory on hand, purchase commitment | $ 285,000 | $ 285,000 | ||||||||||||||
Provision for excess or expired inventory | 11,300,000 | $ 8,100,000 | $ 4,200,000 | |||||||||||||
Property, plant and equipment, net, excluding capital leased assets | 623,100,000 | 623,100,000 | ||||||||||||||
Impairment of assets | 4,466,000 | 911,000 | 652,000 | |||||||||||||
Goodwill | 112,529,000 | $ 112,529,000 | 112,529,000 | 112,529,000 | $ 3,683,000 | |||||||||||
Intangible assets | 103,930,000 | 104,272,000 | 103,930,000 | 104,272,000 | ||||||||||||
Decrease in refundable deposits for lost kegs and pallets | (400,000) | (800,000) | ||||||||||||||
Decrease in gross property, plant and equipment | (800,000) | (1,300,000) | ||||||||||||||
Decrease in property, plant and equipment related accumulated depreciation | (800,000) | (1,300,000) | ||||||||||||||
Refundable deposits on kegs and pallets | $ 15,500,000 | $ 19,500,000 | $ 15,500,000 | $ 19,500,000 | ||||||||||||
Sales to domestic distributors as a percentage of total sales | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | |||||||||||
Sales to retail locations as a percentage of total sales | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | |||||||||||
Deferred Revenue, Current | $ 13,522,000 | $ 6,984,000 | $ 13,522,000 | $ 6,984,000 | ||||||||||||
Stale Beer Reserve | 3,100,000 | 1,800,000 | 3,100,000 | 1,800,000 | ||||||||||||
Provision for stale beer | 8,400,000 | 4,400,000 | $ 2,700,000 | |||||||||||||
Advertising, promotional and selling expenses | 447,568,000 | 355,613,000 | 304,853,000 | |||||||||||||
Advertising and sales promotional expenditures | 211,200,000 | 177,200,000 | 145,100,000 | |||||||||||||
Reduction in federal excise taxes | 11,900,000 | 8,900,000 | ||||||||||||||
Shipping costs | 97,600,000 | 69,100,000 | 61,800,000 | |||||||||||||
Stock-based compensation | 15,282,000 | 12,337,000 | 10,035,000 | |||||||||||||
ASU 2017-04 | ||||||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||||
Goodwill impairment if fair value exceeds carrying amount | 0 | |||||||||||||||
Distributors | ||||||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||||
Amounts paid to distributors | 59,300,000 | 43,900,000 | 34,500,000 | |||||||||||||
Advertising and sales promotional expenditures | 25,700,000 | 31,300,000 | 21,000,000 | |||||||||||||
Reduction in revenue related to advertising, promotional and selling expenses | 23,100,000 | 21,600,000 | 13,900,000 | |||||||||||||
Customers programs and incentives | ||||||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||||
Advertising, promotional and selling expenses | 85,000,000 | 75,200,000 | 55,500,000 | |||||||||||||
Kegs | ||||||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||||
Property, plant and equipment, net, excluding capital leased assets | 300,000 | 500,000 | 300,000 | 500,000 | ||||||||||||
Boston Beer Company Reporting Unit | ||||||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||||
Goodwill | $ 112,500,000 | $ 112,500,000 | 112,500,000 | 112,500,000 | ||||||||||||
Property, Plant and Equipment | ||||||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||||
Impairment of assets | $ 4,400,000 | $ 900,000 | $ 700,000 | |||||||||||||
COVID-19 Pandemic | ||||||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||||
Decreased percentage of shipments | 3.00% | 11.00% | ||||||||||||||
Net effect of COVID-19 on revenue, cost of goods sold and operating expense | $ 16,000,000 | |||||||||||||||
[1] | During the second, third and fourth quarter of 2019, the Company recorded $1.9 million, $5.9 million and $2.1 million in non-reoccurring transaction fees related to the Dogfish Head Transaction, respectively. |
Estimated Useful Lives (Detail)
Estimated Useful Lives (Detail) | 12 Months Ended |
Dec. 26, 2020 | |
Kegs | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful life | 5 years |
Computer Software and Equipment | Minimum | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful life | 2 years |
Computer Software and Equipment | Maximum | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful life | 5 years |
Office Equipment and Furniture | Minimum | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful life | 3 years |
Office Equipment and Furniture | Maximum | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful life | 7 years |
Machinery and Plant Equipment | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful life | 3 to 20 years, or the term of the production agreement, whichever is shorter |
Machinery and Plant Equipment | Minimum | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful life | 3 years |
Machinery and Plant Equipment | Maximum | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful life | 20 years |
Leasehold Improvements | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful life | Lesser of the remaining term of the lease or estimated useful life of the asset |
Building and Building Improvements | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful life | 12 to 20 years, or the remaining useful life of the building, whichever is shorter |
Building and Building Improvements | Minimum | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful life | 12 years |
Building and Building Improvements | Maximum | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful life | 20 years |
Dogfish Head Brewery Transact_3
Dogfish Head Brewery Transaction - Additional Information (Detail) - USD ($) $ in Thousands | Jul. 03, 2019 | Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | May 08, 2019 |
Excess of the purchase price paid over the estimated fair values of the assets and liabilities assumed | $ 112,529 | $ 112,529 | $ 3,683 | ||
Statutory income tax rate | 21.00% | 21.00% | 21.00% | ||
Dogfish Head Brewery | |||||
Business acquisition cash transferred | $ 173,000 | ||||
Escrow Deposit | $ 158,400 | ||||
Dogfish Head Brewery | |||||
Business combination consideration | 336,000 | ||||
Business acquisition cash transferred | 172,993 | ||||
Business acquisition value of shares issued | 162,999 | ||||
Fair value of trade name | 98,500 | ||||
Deferred tax liabilities assumed | 18,437 | ||||
Excess of the purchase price paid over the estimated fair values of the assets and liabilities assumed | 108,846 | $ 108,800 | |||
Dogfish Head Brewery | Interest Rate Adjustment | |||||
Interest expense rate | 3.00% | ||||
Dogfish Head Brewery | Income Tax Rate Adjustment | |||||
Statutory income tax rate | 25.60% | ||||
Dogfish Head Brewery | Customer Relationships | |||||
Estimated fair value | $ 3,800 | 3,800 | |||
Estimated use full life | 15 years | ||||
Dogfish Head Brewery | Trade Names | |||||
Fair value of trade name | $ 98,500 | $ 98,500 | |||
Restricted Common Class A | Dogfish Head Brewery | |||||
Business acquisition Shares issued | 429,291 | 429,291 | |||
Business acquisition value of shares issued | $ 163,000 | ||||
Shares held under escrow deposit | 127,146 | ||||
Shares held under escrow deposit market Value | $ 48,300 |
Dogfish Head Brewery Transact_4
Dogfish Head Brewery Transaction - Fair value of assets acquired and liabilities assumed (Detail) - USD ($) $ in Thousands | Jul. 03, 2019 | Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 |
Goodwill | $ 112,529 | $ 112,529 | $ 3,683 | |
Dogfish Head Brewery | ||||
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 | $ 108,800 | ||
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 $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 28, 2019USD ($)$ / shares | |
Net revenue | $ | $ 1,304,239 |
Net income | $ | $ 116,868 |
Basic earnings per share | $ / shares | $ 9.83 |
Diluted earnings per share | $ / shares | $ 9.73 |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands | Dec. 26, 2020 | Dec. 28, 2019 |
Current inventory: | ||
Raw materials | $ 69,272 | $ 61,522 |
Work in process | 16,846 | 12,631 |
Finished goods | 44,792 | 31,885 |
Total current inventory | 130,910 | 106,038 |
Long term inventory | 9,639 | 10,048 |
Total inventory | $ 140,549 | $ 116,086 |
Summary of Prepaid Expenses and
Summary of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 26, 2020 | Dec. 28, 2019 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Prepaid brewing services fee - short term (see Note L) | $ 14,816 | $ 4,936 |
Prepaid advertising, promotional and selling | 4,876 | 1,649 |
Down payments to vendors | 4,693 | 24 |
Other | 5,845 | 5,468 |
Prepaid Expenses and Other Current Assets | $ 30,230 | $ 12,077 |
Summary of Property, Plant and
Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Dec. 26, 2020 | Dec. 28, 2019 |
Property Plant And Equipment [Abstract] | ||
Machinery and plant equipment | $ 641,790 | $ 571,506 |
Kegs | 61,582 | 66,011 |
Land | 25,753 | 25,759 |
Building and building improvements | 174,328 | 130,311 |
Office equipment and furniture | 31,115 | 29,202 |
Leasehold improvements | 43,157 | 48,528 |
Assets under construction | 84,564 | 59,027 |
Property, Plant and Equipment, Gross, Total | 1,062,289 | 930,344 |
Less accumulated depreciation | (439,206) | (389,276) |
Property, plant and equipment, net | $ 623,083 | $ 541,068 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Property Plant And Equipment [Line Items] | |||
Depreciation expense | $ 65,400 | $ 56,100 | $ 51,800 |
Impairment of assets | 4,466 | 911 | 652 |
Property, Plant and Equipment | |||
Property Plant And Equipment [Line Items] | |||
Impairment of assets | $ 4,400 | $ 900 | $ 700 |
Leases - ROU assets and lease l
Leases - ROU assets and lease liabilities (Detail) - USD ($) $ in Thousands | Dec. 26, 2020 | Dec. 28, 2019 |
Right-of-use assets | ||
Operating lease assets | $ 58,483 | $ 53,758 |
Finance lease assets | 4,035 | 2,531 |
Current | ||
Operating lease liabilities | 8,232 | 5,168 |
Non-current | ||
Operating lease liabilities | 59,171 | 53,940 |
Operating Right Of Use Assets [Member] | ||
Right-of-use assets | ||
Operating lease assets | 58,483 | 53,758 |
Property, Plant and Equipment | ||
Right-of-use assets | ||
Finance lease assets | 4,035 | 2,531 |
Current Operating Lease Liabilities [Member] | ||
Current | ||
Operating lease liabilities | 8,232 | 5,168 |
Accrued Expenses And Other Current Liabilities [Member] | ||
Current | ||
Finance lease liabilities | 1,453 | 546 |
Non Current Operating Lease Liabilities [Member] | ||
Non-current | ||
Operating lease liabilities | 59,171 | 53,940 |
Other Liabilities [Member] | ||
Non-current | ||
Finance lease liabilities | $ 2,631 | $ 2,042 |
Leases - Gross Value of Accumul
Leases - Gross Value of Accumulated Depreciation Of Right Of Use Assets (Details). - USD ($) $ in Thousands | Dec. 26, 2020 | Dec. 28, 2019 |
Leases [Abstract] | ||
Finance Lease, Gross value | $ 5,526 | $ 2,837 |
Finance Lease, Accumulated amortization | (1,491) | (306) |
Finance Lease, Carrying value | $ 4,035 | $ 2,531 |
Leases - Components of lease co
Leases - Components of lease cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 26, 2020 | Dec. 28, 2019 | |
Lease Cost [Abstract] | ||
Operating lease cost | $ 9,764 | $ 5,625 |
Variable lease costs not included in liability | 1,643 | 1,064 |
Finance lease cost: | ||
Amortization of right-of-use asset | 1,185 | 306 |
Interest on lease liabilities | 143 | 56 |
Total finance lease cost | $ 1,328 | $ 362 |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities (Detail) $ in Thousands | Dec. 26, 2020USD ($) |
Operating Leases | |
2021 | $ 10,454 |
2022 | 9,908 |
2023 | 9,737 |
2024 | 9,714 |
2025 | 6,389 |
Thereafter | 32,891 |
Total lease payments | 79,093 |
Less imputed interest | (11,690) |
Present value of lease liability | $ 67,403 |
Operating Lease, Weighted Average Discount Rate, Percent | 3.50% |
Operating Lease Weighted Average Remaining Lease Term [Abstract] | |
Lease Weighted Average Remaining Lease Term | 8 years 9 months 18 days |
Finance Lease Liabilities, Payments, Due | |
2021 | $ 1,572 |
2022 | 1,572 |
2023 | 863 |
2024 | 265 |
2025 | 8 |
Thereafter | 15 |
Total lease payments | 4,295 |
Less imputed interest | (211) |
Present value of lease liability | $ 4,084 |
Finance Lease, Weighted Average Discount Rate, Percent | 3.50% |
Finance Lease, Weighted Average Remaining Lease Term | 2 years 10 months 24 days |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Change in Carrying Value of Goodwill and Intangible Assets (Detail) $ in Thousands | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill as of beginning of period | $ 3,683 |
Acquired goodwill | 108,846 |
Goodwill as of end of period | $ 112,529 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 26, 2020 | Dec. 28, 2019 | Jul. 03, 2019 | Dec. 29, 2018 | |
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 | |
Customer Relationships | ||||
Useful life of finite lived intangibles | 15 years | |||
Dogfish Head Brewery | ||||
Excess of the purchase price paid over the estimated fair values of the assets and liabilities assumed | 108,800,000 | $ 108,846,000 | ||
Brand | 98,500,000 | |||
Intangible assets amortization | $ 253,000 | |||
Dogfish Head Brewery | Trade Names | ||||
Brand | 98,500,000 | 98,500,000 | ||
Dogfish Head Brewery | Customer Relationships | ||||
Estimated fair value | $ 3,800,000 | $ 3,800,000 | ||
Useful life of finite lived intangibles | 15 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 26, 2020 | Dec. 28, 2019 | |
Gross Carrying Value | $ 104,310 | $ 104,399 |
Accumulated Amortization | (380) | (127) |
Net Book Value | $ 103,930 | 104,272 |
Customer Relationships | ||
Estimated Useful Life | 15 years | |
Gross Carrying Value | $ 3,800 | 3,800 |
Accumulated Amortization | (380) | (127) |
Net Book Value | 3,420 | 3,673 |
Trade Names | ||
Gross Carrying Value | 100,510 | 100,599 |
Net Book Value | $ 100,510 | $ 100,599 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Amortization Expense (Detail) $ in Thousands | Dec. 26, 2020USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2021 | $ 253 |
2022 | 253 |
2023 | 253 |
2024 | 253 |
2025 | $ 253 |
Summary of Accrued Expenses and
Summary of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 26, 2020 | Dec. 28, 2019 |
Payables And Accruals [Abstract] | ||
Employee wages, benefits and reimbursements | $ 50,938 | $ 35,394 |
Advertising, promotional and selling expenses | 15,752 | 17,009 |
Accrued deposits | 15,616 | 20,483 |
Deferred revenue | 13,522 | 6,984 |
Accrued taxes | 10,133 | 3,316 |
Accrued capital expenditures | 7,523 | 2,621 |
Other accrued liabilities | 16,060 | 13,300 |
Accrued expenses and other current liabilities | $ 129,544 | $ 99,107 |
Revolving Line of Credit - Addi
Revolving Line of Credit - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 26, 2020 | Dec. 28, 2019 | |
Debt Instrument [Line Items] | ||
Commitment fee | 0.15% | |
Credit facility, borrowing outstanding | $ 0 | $ 0 |
EBITDA to interest expense ratio | 795 | |
EBITDA to interest expense, minimum allowable ratio | 2 | |
Total funded debt to EBITDA ratio | 0 | |
Total funded debt to EBITDA, maximum allowable ratio | 2.50 | |
Proceeds from Line of Credit | $ 100,000,000 | 97,000,000 |
Repayment of Line of Credit | 100,000,000 | $ 97,000,000 |
Payments of interest expenses on borrowings | 200,000 | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Line of credit, current borrowing capacity | $ 150,000,000 | |
Basis spread on variable rate | 0.45% | |
Line of credit, expiration date | Mar. 31, 2023 | |
Revolving Credit Facility | Alternative Prime Rate | ||
Debt Instrument [Line Items] | ||
Debt interest rate at end of period | 3.25% | |
Revolving Credit Facility | LIBOR rate | ||
Debt Instrument [Line Items] | ||
Debt interest rate at end of period | 0.15% |
Significant Components of Provi
Significant Components of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Current: | |||
Federal | $ 25,115 | $ 18,510 | $ 4,471 |
State | 9,455 | 8,084 | 4,894 |
Total current | 34,570 | 26,594 | 9,365 |
Deferred: | |||
Federal | 16,363 | 8,081 | 12,860 |
State | 1,337 | (346) | 1,398 |
Total deferred | 17,700 | 7,735 | 14,258 |
Total provision for income taxes | $ 52,270 | $ 34,329 | $ 23,623 |
Reconciliations to Statutory Ra
Reconciliations to Statutory Rates (Detail) | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |||
Statutory rate | 21.00% | 21.00% | 21.00% |
State income taxes, net of federal benefit | 4.40% | 4.60% | 4.60% |
Deduction relating to excess stock based compensation | (4.30%) | (3.20%) | (3.60%) |
Non-deductable meals & entertainment | 0.20% | 0.70% | 1.10% |
Accounting method changes | (3.90%) | ||
Change in valuation allowance | 0.10% | 0.40% | 0.70% |
Other | 0.30% | 0.40% | |
Effective Income Tax Rate Reconciliation, Percent, Total | 21.40% | 23.80% | 20.30% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Income Taxes [Line Items] | |||
One-time income tax benefit | $ 4.5 | ||
Interest and penalties included in provision for incomes taxes | $ 0 | $ 0 | $ 0.1 |
Accrued interest and penalties | 0.2 | 0.1 | |
Unrecognized tax benefits that would impact the effective tax rate if recognized | 0.8 | $ 0.8 | |
Deferred tax assets capital loss carryforward | $ 1.1 | ||
Deferred tax assets capital loss carryforward expiration year | 2021 | ||
State and Local Jurisdiction | |||
Income Taxes [Line Items] | |||
Income tax return examination | In September 2017, the Internal Revenue Service (“IRS”) commenced an examination of the Company’s 2015 consolidated corporate income tax return. The examination was completed in July 2018 resulting in a no change report. As of December 26, 2020, the Company’s 2017, 2018, and 2019 federal income tax returns remain subject to examination by IRS. The Company’s state income tax returns remain subject to examination for three or four years depending on the state’s statute of limitations. | ||
State and Local Jurisdiction | Minimum | |||
Income Taxes [Line Items] | |||
Income tax return examination period | 3 years | ||
State and Local Jurisdiction | Maximum | |||
Income Taxes [Line Items] | |||
Income tax return examination period | 4 years |
Significant Components of Compa
Significant Components of Company's Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 26, 2020 | Dec. 28, 2019 |
Deferred tax assets: | ||
Lease Liabilities | $ 17,951 | $ 15,567 |
Inventory | 2,525 | 5,868 |
Stock-based compensation expense | 5,568 | 5,818 |
Accrued expenses | 3,171 | 3,232 |
Other | 2,212 | 1,914 |
Total deferred tax assets | 31,427 | 32,399 |
Valuation allowance | (2,022) | (1,866) |
Total deferred tax assets net of valuation allowance | 29,405 | 30,533 |
Deferred tax liabilities: | ||
Property, plant and equipment | (88,947) | (78,232) |
Right-of-use Assets | (15,695) | (14,203) |
Amortization | (12,900) | (10,899) |
Prepaid expenses | (4,528) | (2,209) |
Total deferred tax liabilities | (122,070) | (105,543) |
Net deferred tax liabilities | $ (92,665) | $ (75,010) |
Reconciliation of Unrecognized
Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 26, 2020 | Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | ||
Balance at beginning of year | $ 811 | $ 836 |
Increases related to current year tax positions | 101 | |
Increases (decreases) related to prior year tax positions | 13 | (63) |
Decreases related to lapse of statute of limitations | (12) | (63) |
Balance at end of year | $ 812 | $ 811 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Non-cancelable Contractual Obligations (Detail) $ in Thousands | Dec. 26, 2020USD ($) |
Long-term Purchase Commitment [Line Items] | |
Contractual obligations payment due, total | $ 321,899 |
Contractual obligations payment due, 2021 | 282,904 |
Contractual obligations payment due, 2022 | 14,946 |
Contractual obligations payment due, 2023 | 10,886 |
Contractual obligations payment due, 2024 | 6,878 |
Contractual obligations payment due, 2025 | 6,285 |
Equipment and machinery | |
Long-term Purchase Commitment [Line Items] | |
Contractual obligations payment due, total | 79,379 |
Contractual obligations payment due, 2021 | 79,379 |
Ingredients (excluding hops and malt) | |
Long-term Purchase Commitment [Line Items] | |
Contractual obligations payment due, total | 91,414 |
Contractual obligations payment due, 2021 | 91,414 |
Brand Support | |
Long-term Purchase Commitment [Line Items] | |
Contractual obligations payment due, total | 87,459 |
Contractual obligations payment due, 2021 | 61,154 |
Contractual obligations payment due, 2022 | 8,646 |
Contractual obligations payment due, 2023 | 8,397 |
Contractual obligations payment due, 2024 | 4,703 |
Contractual obligations payment due, 2025 | 4,559 |
Hops and Malt | |
Long-term Purchase Commitment [Line Items] | |
Contractual obligations payment due, total | 51,988 |
Contractual obligations payment due, 2021 | 41,103 |
Contractual obligations payment due, 2022 | 4,667 |
Contractual obligations payment due, 2023 | 2,317 |
Contractual obligations payment due, 2024 | 2,175 |
Contractual obligations payment due, 2025 | 1,726 |
Other | |
Long-term Purchase Commitment [Line Items] | |
Contractual obligations payment due, total | 11,659 |
Contractual obligations payment due, 2021 | 9,854 |
Contractual obligations payment due, 2022 | 1,633 |
Contractual obligations payment due, 2023 | $ 172 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
Dec. 26, 2020USD ($)vendor | Dec. 28, 2019USD ($) | |
Commitments and Contingencies Disclosure [Line Items] | ||
Company's current brewing and packaging percentage | 33.00% | 23.00% |
Prepaid brewing service fees current | $ 30,230 | $ 12,077 |
Prepaid expense, current | 56,800 | |
Commitments [Member] | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Estimated volume commitments contractual shortfall fees | 70,700 | |
City Brewing | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Payments for capital improvements | 71,600 | |
Prepaid Third-party Brewing Fees | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Prepaid brewing service fees current | 14,800 | |
Prepaid brewing service fees | $ 71,600 | |
Minimum | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Company's current brewing and packaging percentage | 65.00% | |
Barley, Wheat and Malt | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Number of suppliers | vendor | 4 | |
Purchase commitments outstanding | $ 22,500 | |
Hops | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Purchase commitments | $ 29,500 |
Fair Value Measures - Additiona
Fair Value Measures - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 26, 2020 | Dec. 28, 2019 |
Fair Value Disclosures [Abstract] | ||
Cash and cash equivalents | $ 163,282 | $ 36,670 |
Money market fund | $ 157,600 | $ 29,500 |
Common Stock and Share-Based _3
Common Stock and Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Apr. 30, 2018 | Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options, contractual term | 5 years 11 months 4 days | ||||
Other than options granted in period | 42,530 | ||||
Stock option outstanding | 241,847 | 315,678 | |||
Options granted in period - weighted average fair value | $ 153.31 | $ 131.91 | $ 92.89 | ||
Weighted average fair value of stock awards | $ 350.96 | ||||
Expected dividends | 0.00% | 0.00% | 0.00% | ||
Estimated forfeiture rate for equity awards that do not vest on January 1st | 13.00% | ||||
Total fair value of options vested in period | $ 4,800 | $ 2,500 | $ 3,200 | ||
Aggregate intrinsic value of stock options exercised in period | 45,900 | $ 20,900 | $ 19,200 | ||
Unrecognized compensation costs | $ 28,600 | ||||
Unrecognized compensation costs, weighted average period | 2 years | ||||
Option vested, number of shares | 45,860 | 33,205 | 20,678 | ||
Option vested, weighted average fair value | $ 214.23 | $ 188.63 | $ 156.50 | ||
Repurchase of shares | 13,797,037 | 13,797,037 | 13,797,037 | 13,447,346 | |
Repurchased of value | $ 840,664 | $ 840,664 | $ 840,664 | $ 752,352 | |
President and Chief Executive Officer | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options granted in period | 9,959 | ||||
Options granted in period - weighted average fair value | $ 100.50 | ||||
Performance-Based Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock option outstanding | 14,962 | ||||
Performance-Based Awards | Board of Directors | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock option outstanding | 24,699 | ||||
Non-Employee Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options granted in period | 4,410 | 4,779 | 5,080 | ||
Non-Employee Director | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options, contractual term | 10 years | ||||
Employee Stock Compensation Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options granted in period | 21,992 | 26,507 | 27,490 | ||
Employee Stock Compensation Plan | Investment Share Program | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 5 years | ||||
Share based compensation arrangement by share based payment award participants payment description | Participants may pay for these shares either up front or through payroll deductions over an eleven-month period during the year of purchase. | ||||
Shares employees elected to purchase | 9,127 | 7,901 | 9,214 | ||
Employee Stock Compensation Plan | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Employee Stock Compensation Plan | Minimum | Investment Share Program | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Requirement tenure of employee for investment share program, purchase shares at discount | 1 year | ||||
Discount from current market value | 0.00% | ||||
Employee Stock Compensation Plan | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 5 years | ||||
Stock options, contractual term | 10 years | ||||
Employee Stock Compensation Plan | Maximum | Investment Share Program | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Discount from current market value | 40.00% | ||||
Restricted Stock Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Other than options granted in period | 33,403 | 22,509 | 83,561 | ||
Restricted Stock Awards | Chief Executive Officer | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Other than options granted in period | 64,325 | ||||
Weighted average fair value of stock awards | $ 229.30 | ||||
Restricted Stock Awards | Performance-Based Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Other than options granted in period | 2,696 | ||||
Restricted Stock Awards | Service-Based Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Other than options granted in period | 30,707 | ||||
Restricted Stock Awards | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 1 year | ||||
Restricted Stock Awards | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 5 years | ||||
Common Class A | Non-Employee Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares reserved for issuance | 600,000 | ||||
Shares available for grant | 100,000 | ||||
Common Class A | Employee Stock Compensation Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares reserved for issuance | 6,700,000 | ||||
Shares available for grant | 1,000,000 |
Common Stock and Share-Based _4
Common Stock and Share-Based Compensation - Summary of Stock Options under Employee Equity Incentive Plan and Stock Option Plan for Non-Employee Directors (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 26, 2020USD ($)$ / sharesshares | |
Shares | |
Outstanding at beginning of period | shares | 315,678 |
Granted | shares | 26,402 |
Forfeited | shares | (2,595) |
Exercised | shares | (97,638) |
Outstanding at end of period | shares | 241,847 |
Exercisable at end of period | shares | 53,638 |
Vested and expected to vest at end of period | shares | 217,604 |
Weighted-Average Exercise Price | |
Outstanding at beginning of period | $ / shares | $ 186.53 |
Granted | $ / shares | 393.54 |
Forfeited | $ / shares | 242 |
Exercised | $ / shares | 136.87 |
Outstanding at end of period | $ / shares | 228.58 |
Exercisable at end of period | $ / shares | 211.32 |
Vested and expected to vest at end of period | $ / shares | $ 227.97 |
Weighted-Average Remaining Contractual Term | |
Outstanding at end of period | 5 years 11 months 4 days |
Exercisable at end of period | 5 years 1 month 28 days |
Vested and expected to vest at end of period | 5 years 10 months 28 days |
Aggregate Intrinsic Value | |
Outstanding at end of period | $ | $ 190,176 |
Exercisable at end of period | $ | 43,104 |
Vested and expected to vest at end of period | $ | $ 171,246 |
Common Stock and Share-Based _5
Common Stock and Share-Based Compensation - Stock-Based Compensation Expense Included in Operating Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 15,282 | $ 12,337 | $ 10,035 |
Performance-Based Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 2,771 | 1,944 | 1,750 |
Advertising, promotional and selling expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 4,467 | 3,996 | 3,243 |
General and administrative expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 10,815 | $ 8,341 | $ 6,792 |
Common Stock and Share-Based _6
Common Stock and Share-Based Compensation - Summary Of Weighted Average Assumptions used to Estimate Fair Value of Stock Options (Detail) - Time | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Expected volatility | 32.60% | 32.10% | 34.00% |
Risk-free interest rate | 1.09% | 2.63% | 2.68% |
Expected dividends | 0.00% | 0.00% | 0.00% |
Exercise factor | 2.1 | 2.33 | 2.52 |
Discount for post-vesting restrictions | 0.00% | 0.00% | 0.00% |
Common Stock and Share-Based _7
Common Stock and Share-Based Compensation - Summary of Vesting Activities for Investment Share Program and Restricted Stock Awards (Detail) | 12 Months Ended |
Dec. 26, 2020$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Non-vested at beginning of period | shares | 122,142 |
Granted | shares | 42,530 |
Vested | shares | (45,860) |
Forfeited | shares | (4,496) |
Non-vested at end of period | shares | 114,316 |
Non-vested at beginning of period | $ / shares | $ 213.52 |
Granted | $ / shares | 350.96 |
Vested | $ / shares | 214.23 |
Forfeited | $ / shares | 236.63 |
Non-vested at end of period | $ / shares | $ 263.47 |
Stock Repurchases (Detail)
Stock Repurchases (Detail) $ in Thousands | 12 Months Ended |
Dec. 29, 2018USD ($)shares | |
Number of shares | |
Repurchased at beginning of period | shares | 13,447,346 |
Repurchases | shares | 349,691 |
Repurchased at end of period | shares | 13,797,037 |
Aggregate Purchase Price | |
Repurchased at beginning balance | $ | $ 752,352 |
Repurchases | $ | 88,312 |
Repurchased at end of period | $ | $ 840,664 |
Employee Retirement Plans and_3
Employee Retirement Plans and Post-Retirement Medical Benefits - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2020 | Dec. 26, 2020USD ($)CompensationPlan | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | |
Pension Benefit Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Unfunded projected pension benefits | $ 0 | $ 2,734,000 | ||
Retiree Medical Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Unfunded projected pension benefits | $ 1,077,000 | 888,000 | ||
Non-Union Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Number of retirement plans | CompensationPlan | 1 | |||
Non-Union Plans | Boston Beer 401 (k) Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Eligibility timing | eligible to participate in the Plan immediately upon employment | |||
Voluntary contributions of annual compensation | 60.00% | |||
Employer matching contribution percentage | 5.00% | |||
Contributions Plan | $ 6,400,000 | 4,000,000 | $ 3,500,000 | |
Non-Union Plans | Boston Beer 401 (k) Plan | Company's match thereafter | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Employer matching contribution percentage | 3.00% | |||
Employer match percentage | 100.00% | |||
Non-Union Plans | Boston Beer 401 (k) Plan | Company's match for the first 3% of the eligible participants contribute | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Employer matching contribution percentage | 5.00% | |||
Employer match percentage | 50.00% | |||
Non-Union Plans | Dogfish Head 401 (K) Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Voluntary contributions of annual compensation | 60.00% | |||
Employer matching contribution percentage | 5.00% | |||
Contributions Plan | 300,000 | |||
Non-Union Plans | Dogfish Head 401 (K) Plan | Company's match thereafter | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Employer match percentage | 50.00% | |||
Non-Union Plans | Dogfish Head 401 (K) Plan | Company's match for the first 3% of the eligible participants contribute | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Employer match percentage | 100.00% | |||
Contribution percentage by the company | 3.00% | |||
Union Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Number of retirement plans | CompensationPlan | 2 | |||
Union Plans | Company Sponsored Pension Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Eligibility timing | open to all union employees who are covered by the Company’s collective bargaining agreement with Teamsters Local Union. No. 1199 (“Local Union 1199”), or persons on leave from the Company who are employed by Local Union 1199, and in either case who have completed 12 consecutive months of employment with at least 750 hours worked. | |||
Eligibility period | 12 months | |||
Time required for eligibility | 750 hours | |||
Expenses on termination of defined benefit plan | $ 2,000,000 | |||
Pension contributions | $ 2,900,000 | $ 300,000 | $ 300,000 | |
Union Plans | Retiree Medical Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Eligibility period | 20 years | |||
Time required for eligibility | 5 years | |||
Benefit obligation, discount rate | 2.50% | 3.32% | ||
Benefit obligation, rate of compensation increase | 2.50% | 2.50% | 2.50% | |
Percentage paid for coverage | 100.00% | |||
Union Plans | Retiree Medical Plan | Minimum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Voluntarily retirement age | 57 years | |||
Union Plans | Retiree Medical Plan | Local #20 member | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Time required for eligibility | 7 years | |||
Retiree Medical Plan, last years of employment | 10 years | |||
Voluntarily retirement age | 65 years | |||
Union Plans | Retiree Medical Plan | Local #20 member | Minimum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Eligibility period | 20 years | |||
Union Plans | Samuel Adams Cincinnati Brewery 401 (k) Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Eligibility timing | all union employees upon commencement of employment or, if later, attaining age 21. | |||
Voluntary contributions of annual compensation | 60.00% |
Funded Status of Local 1199 Pen
Funded Status of Local 1199 Pension Plan and Retiree Medical Plan (Detail) - USD ($) | Dec. 26, 2020 | 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 | $ 3,946,000 | |
Benefit obligation at end of fiscal year | 6,680,000 | |
Unfunded Status | $ 0 | (2,734,000) |
Retiree Medical Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Benefit obligation at end of fiscal year | 1,077,000 | 888,000 |
Unfunded Status | $ (1,077,000) | $ (888,000) |
Local 1199 Plan's Weighted-Aver
Local 1199 Plan's Weighted-Average Asset Allocations (Detail) | Dec. 26, 2020 | Dec. 28, 2019 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan Weighted Average Asset Allocations | 0.00% | 100.00% |
Cash Equivalents | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan Weighted Average Asset Allocations | 0.00% | 100.00% |
Equity Securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan Weighted Average Asset Allocations | 0.00% | 0.00% |
Debt Securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan Weighted Average Asset Allocations | 0.00% | 0.00% |
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 | 12 Months Ended | |||||||||||||
Dec. 26, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | [1] | Sep. 28, 2019 | [1] | Jun. 29, 2019 | [1] | Mar. 30, 2019 | [1] | Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||||||
Net income | $ 32,817 | $ 80,768 | $ 60,141 | $ 18,234 | $ 13,762 | $ 44,729 | $ 27,856 | $ 23,694 | $ 191,960 | $ 110,041 | $ 92,663 | ||||
Allocation of net income for basic: | |||||||||||||||
Allocation of net income for basic common stock | $ 191,960 | $ 110,041 | $ 92,663 | ||||||||||||
Weighted average number of shares for basic: | |||||||||||||||
Weighted-average number of common shares - basic | 12,204 | 11,886 | 11,733 | ||||||||||||
Net income per share for basic: | |||||||||||||||
Net income per common share - basic | $ 2.68 | $ 6.61 | $ 4.93 | $ 1.50 | $ 1.13 | $ 3.70 | $ 2.39 | $ 2.04 | $ 15.73 | $ 9.26 | $ 7.90 | ||||
Common Class A | |||||||||||||||
Allocation of net income for basic: | |||||||||||||||
Allocation of net income for basic common stock | $ 153,106 | $ 82,474 | $ 68,080 | ||||||||||||
Weighted average number of shares for basic: | |||||||||||||||
Weighted-average number of common shares - basic | 9,734 | 8,908 | 8,620 | ||||||||||||
Net income per share for basic: | |||||||||||||||
Net income per common share - basic | $ 15.73 | $ 9.26 | $ 7.90 | ||||||||||||
Common Class B | |||||||||||||||
Allocation of net income for basic: | |||||||||||||||
Allocation of net income for basic common stock | $ 37,690 | $ 26,600 | $ 23,710 | ||||||||||||
Weighted average number of shares for basic: | |||||||||||||||
Weighted-average number of common shares - basic | 2,396 | 2,873 | 3,002 | ||||||||||||
Net income per share for basic: | |||||||||||||||
Net income per common share - basic | $ 15.73 | $ 9.26 | $ 7.90 | ||||||||||||
Unvested participating shares | |||||||||||||||
Allocation of net income for basic: | |||||||||||||||
Allocation of net income for basic unvested participating shares | $ 1,164 | $ 967 | $ 873 | ||||||||||||
Weighted average number of shares for basic: | |||||||||||||||
Weighted-average number of common shares - basic | 74 | 105 | 111 | ||||||||||||
[1] | During the second, third and fourth quarter of 2019, the Company recorded $1.9 million, $5.9 million and $2.1 million in non-reoccurring transaction fees related to the Dogfish Head Transaction, respectively. |
Net Income per Share - Comput_2
Net Income per Share - Computation of Earnings Per Share, Basic (Parenthetical) (Detail) - shares | Nov. 03, 2020 | May 06, 2020 | Mar. 11, 2020 | Dec. 13, 2019 | Aug. 08, 2019 | Nov. 01, 2018 |
Earnings Per Share [Abstract] | ||||||
Conversion of Class B Common Stock into Class A Common Stock | 130,000 | 215,000 | 150,000 | 145,000 | 100,000 | 100,000 |
Net Income per Share - Comput_3
Net Income per Share - Computation of Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 26, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | [1] | Sep. 28, 2019 | [1] | Jun. 29, 2019 | [1] | Mar. 30, 2019 | [1] | Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | |||||||||||||||
Earnings to Common Shareholders, As reported - basic | $ 191,960 | $ 110,041 | $ 92,663 | ||||||||||||
Common shares, As reported - basic | 12,204 | 11,886 | 11,733 | ||||||||||||
EPS, As reported - basic | $ 2.68 | $ 6.61 | $ 4.93 | $ 1.50 | $ 1.13 | $ 3.70 | $ 2.39 | $ 2.04 | $ 15.73 | $ 9.26 | $ 7.90 | ||||
Add: effect of dilutive potential common shares Share-based awards | 153 | 127 | 112 | ||||||||||||
Earnings to Common Shareholders, Net effect of unvested participating shares | $ 14 | $ 10 | $ 8 | ||||||||||||
Earnings to Common Shareholders, Net income per common share — diluted | $ 190,810 | $ 109,084 | $ 91,798 | ||||||||||||
Common Shares, Net income per common share — diluted | 12,283 | 11,908 | 11,734 | ||||||||||||
EPS, Net income per common share — diluted | $ 2.64 | $ 6.51 | $ 4.88 | $ 1.49 | $ 1.12 | $ 3.65 | $ 2.36 | $ 2.02 | $ 15.53 | $ 9.16 | $ 7.82 | ||||
Common Class A | |||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | |||||||||||||||
Earnings to Common Shareholders, As reported - basic | $ 153,106 | $ 82,474 | $ 68,080 | ||||||||||||
Common shares, As reported - basic | 9,734 | 8,908 | 8,620 | ||||||||||||
EPS, As reported - basic | $ 15.73 | $ 9.26 | $ 7.90 | ||||||||||||
Common Class B | |||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | |||||||||||||||
Earnings to Common Shareholders, As reported - basic | $ 37,690 | $ 26,600 | $ 23,710 | ||||||||||||
Common shares, As reported - basic | 2,396 | 2,873 | 3,002 | ||||||||||||
EPS, As reported - basic | $ 15.73 | $ 9.26 | $ 7.90 | ||||||||||||
Earnings to Common Shareholders, Class B Common Stock | $ 37,690 | $ 26,600 | $ 23,710 | ||||||||||||
Class B Common Stock | 2,396 | 2,873 | 3,002 | ||||||||||||
[1] | During the second, third and fourth quarter of 2019, the Company recorded $1.9 million, $5.9 million and $2.1 million in non-reoccurring transaction fees related to the Dogfish Head Transaction, respectively. |
Net Income per Share - Addition
Net Income per Share - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 26, 2020customer$ / shares | Sep. 26, 2020$ / shares | Jun. 27, 2020$ / shares | Mar. 28, 2020$ / shares | Dec. 28, 2019$ / shares | [1] | Sep. 28, 2019$ / shares | [1] | Jun. 29, 2019$ / shares | [1] | Mar. 30, 2019$ / shares | [1] | Dec. 26, 2020customer$ / sharesshares | Dec. 28, 2019$ / sharesshares | Dec. 29, 2018$ / sharesshares | |
Earnings Per Share Note [Line Items] | |||||||||||||||
Net income per common share - basic | $ 2.68 | $ 6.61 | $ 4.93 | $ 1.50 | $ 1.13 | $ 3.70 | $ 2.39 | $ 2.04 | $ 15.73 | $ 9.26 | $ 7.90 | ||||
Conversion ratio for Class B to Class A shares | customer | 1 | 1 | |||||||||||||
Common Class A | |||||||||||||||
Earnings Per Share Note [Line Items] | |||||||||||||||
Net income per common share - basic | $ 15.73 | $ 9.26 | $ 7.90 | ||||||||||||
Antidilutive securities excluded from computation of earnings per share | shares | 0 | 23,000 | 100,000 | ||||||||||||
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 | shares | 10,000 | 10,000 | |||||||||||||
Common Class B | |||||||||||||||
Earnings Per Share Note [Line Items] | |||||||||||||||
Net income per common share - basic | $ 15.73 | $ 9.26 | $ 7.90 | ||||||||||||
[1] | During the second, third and fourth quarter of 2019, the Company recorded $1.9 million, $5.9 million and $2.1 million in non-reoccurring transaction fees related to the Dogfish Head Transaction, respectively. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance | $ 735,636 | $ 460,317 | $ 423,523 |
Deferred pension and other post-retirement benefit costs | 1,611 | (442) | 191 |
Amortization of Deferred benefit costs | (219) | (77) | 86 |
One time effect of adoption of ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income | (211) | ||
Currency translation adjustment | 25 | 47 | 25 |
Balance | 956,967 | 735,636 | 460,317 |
AOCI Attributable to Parent | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance | (1,669) | (1,197) | (1,288) |
Currency translation adjustment | 25 | 47 | 25 |
Balance | $ (252) | $ (1,669) | $ (1,197) |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Loss (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |||
Deferred pension and other post-retirement benefit costs, taxes | $ 502 | $ 150 | $ 64 |
Amortization of Deferred benefit costs, tax | $ 35 | $ 26 | $ 29 |
Summary of Valuation and Qualif
Summary of Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 1,800 | ||
Balance at End of Period | 3,100 | $ 1,800 | |
Allowance for Doubtful Accounts | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 47 | 2 | |
Net Provision (Recovery) | 488 | 45 | $ 2 |
Balance at End of Period | 535 | 47 | 2 |
Discount Accrual | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 6,272 | 4,636 | 3,072 |
Net Provision (Recovery) | 59,279 | 43,920 | 36,213 |
Amounts Charged Against Reserves | (56,194) | (42,284) | (34,649) |
Balance at End of Period | 9,357 | 6,272 | 4,636 |
Inventory Obsolescence Reserve | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 6,375 | 2,580 | 1,826 |
Net Provision (Recovery) | 11,248 | 8,092 | 4,175 |
Amounts Charged Against Reserves | (11,292) | (4,297) | (3,421) |
Balance at End of Period | 6,331 | 6,375 | 2,580 |
Stale Beer Reserve | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 1,828 | 2,146 | 3,023 |
Net Provision (Recovery) | 8,411 | 4,406 | 2,691 |
Amounts Charged Against Reserves | (7,147) | (4,724) | (3,568) |
Balance at End of Period | $ 3,092 | $ 1,828 | $ 2,146 |
Summary of Valuation and Qual_2
Summary of Valuation and Qualifying Accounts (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Dec. 29, 2018USD ($) | |
Valuation And Qualifying Accounts [Abstract] | |
Cumulative effect adjustment to retained earnings and the current year adjustment to deferred revenue | $ 1.7 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | 12 Months Ended |
Dec. 26, 2020USD ($) | |
Related Party Transaction [Line Items] | |
Total payments due | $ 79,093,000 |
Dogfish Head Brewery | |
Related Party Transaction [Line Items] | |
Lease term of contract | 10 years |
Total payments due | $ 3,600,000 |
Related party expense | 348,000 |
Transaction with related party expenses | 50,000 |
Dogfish Head Brewery | Sale Of Asset | |
Related Party Transaction [Line Items] | |
Related Party Transaction Amounts Of Transaction | $ 26,000 |
Quarterly Results (Detail)
Quarterly Results (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 26, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | [1] | Sep. 28, 2019 | [1] | Jun. 29, 2019 | [1] | Mar. 30, 2019 | [1] | Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Net revenue | $ 460,937 | $ 492,792 | $ 452,138 | $ 330,565 | $ 301,300 | $ 378,466 | $ 318,407 | $ 251,651 | $ 1,736,432 | $ 1,249,824 | $ 995,649 | ||||
Gross profit | 216,270 | 240,585 | 209,624 | 147,973 | 142,789 | 187,835 | 159,002 | 124,540 | 814,452 | 614,166 | 512,243 | ||||
Operating income | 42,125 | 101,781 | 78,769 | 21,532 | 17,702 | 59,836 | 37,932 | 29,443 | 244,207 | 144,912 | 115,881 | ||||
Net income | $ 32,817 | $ 80,768 | $ 60,141 | $ 18,234 | $ 13,762 | $ 44,729 | $ 27,856 | $ 23,694 | $ 191,960 | $ 110,041 | $ 92,663 | ||||
Net income per share – basic | $ 2.68 | $ 6.61 | $ 4.93 | $ 1.50 | $ 1.13 | $ 3.70 | $ 2.39 | $ 2.04 | $ 15.73 | $ 9.26 | $ 7.90 | ||||
Net income per share – diluted | $ 2.64 | $ 6.51 | $ 4.88 | $ 1.49 | $ 1.12 | $ 3.65 | $ 2.36 | $ 2.02 | $ 15.53 | $ 9.16 | $ 7.82 | ||||
[1] | During the second, third and fourth quarter of 2019, the Company recorded $1.9 million, $5.9 million and $2.1 million in non-reoccurring transaction fees related to the Dogfish Head Transaction, respectively. |
Quarterly Results (Parenthetica
Quarterly Results (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 |
Dogfish Head Transaction [Member] | |||
Quarterly Financial Information [Line Items] | |||
Business combination non-reoccurring transaction fees | $ 2.1 | $ 5.9 | $ 1.9 |