Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 27, 2021 | Apr. 16, 2021 | |
Document Information [Line Items] | ||
Document Transition Report | false | |
Document Quarterly Report | true | |
Document Type | 10-Q | |
Document Period End Date | Mar. 27, 2021 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Registrant Name | THE BOSTON BEER COMPANY, INC. | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity File Number | 1-14092 | |
Entity Incorporation, State or Country Code | MA | |
Entity Tax Identification Number | 04-3284048 | |
Entity Address, Address Line One | One Design Center Place, Suite 850 | |
Entity Address, City or Town | Boston | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02210 | |
City Area Code | 617 | |
Local Phone Number | 368-5000 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000949870 | |
Current Fiscal Year End Date | --12-26 | |
Trading Symbol | SAM | |
Security Exchange Name | NYSE | |
Title of 12(b) Security | Class A Common Stock | |
Common Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 10,108,792 | |
Common Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 2,177,983 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 27, 2021 | Dec. 26, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 144,658 | $ 163,282 |
Accounts receivable | 105,042 | 78,358 |
Inventories | 160,671 | 130,910 |
Prepaid expenses and other current assets | 36,061 | 30,230 |
Income tax receivable | 4,115 | 10,393 |
Total current assets | 450,547 | 413,173 |
Property, plant and equipment, net | 636,007 | 623,083 |
Operating right-of-use assets | 56,518 | 58,483 |
Goodwill | 112,529 | 112,529 |
Intangible assets | 103,867 | 103,930 |
Third-party production prepayments | 93,243 | 56,843 |
Other assets | 11,459 | 10,784 |
Total assets | 1,464,170 | 1,378,825 |
Current Liabilities: | ||
Accounts payable | 157,085 | 121,647 |
Accrued expenses and other current liabilities | 106,361 | 129,544 |
Current operating lease liabilities | 8,183 | 8,232 |
Total current liabilities | 271,629 | 259,423 |
Deferred income taxes, net | 97,284 | 92,665 |
Non-current operating lease liabilities | 57,200 | 59,171 |
Other liabilities | 9,333 | 10,599 |
Total liabilities | 435,446 | 421,858 |
Commitments and Contingencies (See Note J) | ||
Stockholders' Equity: | ||
Additional paid-in capital | 605,962 | 599,737 |
Accumulated other comprehensive loss | (232) | (252) |
Retained earnings | 422,871 | 357,360 |
Total stockholders' equity | 1,028,724 | 956,967 |
Total liabilities and stockholders' equity | 1,464,170 | 1,378,825 |
Common Class A | ||
Stockholders' Equity: | ||
Common Stock | 101 | 100 |
Common Class B | ||
Stockholders' Equity: | ||
Common Stock | $ 22 | $ 22 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 27, 2021 | Dec. 26, 2020 |
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 | 10,052,711 | 10,004,681 |
Common Stock, shares outstanding | 10,052,711 | 10,004,681 |
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 | 2,177,983 |
Common Stock, shares outstanding | 2,177,983 | 2,177,983 |
Consolidated Statements Income
Consolidated Statements Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Income Statement [Abstract] | ||
Revenue | $ 581,709 | $ 352,225 |
Less excise taxes | 36,629 | 21,660 |
Net revenue | 545,080 | 330,565 |
Cost of goods sold | 295,450 | 182,592 |
Gross profit | 249,630 | 147,973 |
Operating expenses: | ||
Advertising, promotional and selling expenses | 140,859 | 97,891 |
General and administrative expenses | 31,946 | 27,029 |
Impairment of assets | 227 | 1,521 |
Total operating expenses | 173,032 | 126,441 |
Operating income | 76,598 | 21,532 |
Other (expense) income, net: | ||
Interest (expense) income, net | (29) | 63 |
Other (expense) income, net | (6) | (360) |
Total other (expense) income, net | (35) | (297) |
Income before income tax provision | 76,563 | 21,235 |
Income tax provision | 10,998 | 3,001 |
Net income | $ 65,565 | $ 18,234 |
Net income per common share - basic | $ 5.34 | $ 1.50 |
Net income per common share - diluted | $ 5.26 | $ 1.49 |
Weighted-average number of common shares - basic | 12,271 | 12,157 |
Weighted-average number of common shares - diluted | 12,457 | 12,186 |
Net income | $ 65,565 | $ 18,234 |
Other comprehensive income: | ||
Foreign currency translation adjustment | 20 | (58) |
Comprehensive income | $ 65,585 | $ 18,176 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Cash flows provided by operating activities: | ||
Net income | $ 65,565 | $ 18,234 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 16,996 | 15,945 |
Impairment of assets | 227 | 1,521 |
Gain on disposal of property, plant and equipment | (36) | |
Change in right-of-use assets | 1,965 | 1,807 |
Credit loss (recovery) expense | (48) | 552 |
Stock-based compensation expense | 4,957 | 2,566 |
Deferred income taxes | 4,565 | 2,379 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (26,723) | (4,436) |
Inventories | (30,581) | (23,856) |
Prepaid expenses, income tax receivable and other current assets | (14,369) | (2,077) |
Third-party production prepayments | (21,584) | 1,234 |
Other assets | (41) | |
Accounts payable | 36,912 | 14,264 |
Accrued expenses and other current liabilities | (16,095) | (7,579) |
Change in operating lease liabilities | (2,020) | (1,489) |
Other liabilities | 76 | (100) |
Net cash provided by operating activities | 19,807 | 18,924 |
Cash flows used in investing activities: | ||
Purchases of property, plant and equipment | (39,278) | (27,394) |
Proceeds from disposal of property, plant and equipment | 320 | 35 |
Other investing activities | 145 | 96 |
Net cash used in investing activities | (38,813) | (27,263) |
Cash flows provided by financing activities: | ||
Proceeds from exercise of stock options and sale of investment shares | 6,768 | 2,941 |
Net cash paid on note payable and finance leases | (435) | (209) |
Cash borrowed on line of credit | 100,000 | |
Payment of tax withholding on stock-based payment awards and investment shares | (5,951) | (1,559) |
Net cash provided by financing activities | 382 | 101,173 |
Change in cash and cash equivalents | (18,624) | 92,834 |
Cash and cash equivalents at beginning of year | 163,282 | 36,670 |
Cash and cash equivalents at end of period | 144,658 | 129,504 |
Supplemental disclosure of cash flow information: | ||
Income taxes paid | 4 | 5 |
Cash paid for amounts included in measurement of lease liabilities | ||
Operating cash flows from operating leases | 2,602 | 2,097 |
Operating cash flows from finance leases | 34 | 22 |
Financing cash flows from finance leases | 364 | 141 |
Right-of-use-assets obtained in exchange for operating lease obligations | 11,088 | |
Change in purchase of property, plant and equipment in accounts payable and accrued expenses | $ (8,997) | $ (1,029) |
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 | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment |
Balance at Dec. 28, 2019 | $ 735,636 | $ 94 | $ 27 | $ 571,784 | $ (1,669) | $ 165,400 | ||
Balance (in shares) at Dec. 28, 2019 | 9,371,000 | 2,673,000 | ||||||
Net income | 18,234 | 18,234 | ||||||
Stock options exercised and restricted shares activities | 1,858 | 1,858 | ||||||
Stock options exercised and restricted shares activities (in shares) | 38,000 | |||||||
Stock-based compensation expense | 2,566 | 2,566 | ||||||
Conversion from Class B to Class A | $ 2 | $ (2) | ||||||
Conversion from Class B to Class A (in shares) | 150,000 | (150,000) | ||||||
Foreign currency translation adjustment | (58) | (58) | ||||||
Balance at Mar. 28, 2020 | 758,236 | $ 96 | $ 25 | 576,208 | (1,727) | 183,634 | ||
Balance (in shares) at Mar. 28, 2020 | 9,559,000 | 2,523,000 | ||||||
Balance at Dec. 26, 2020 | 956,967 | $ (54) | $ 100 | $ 22 | 599,737 | (252) | 357,360 | $ (54) |
Balance (in shares) at Dec. 26, 2020 | 10,005,000 | 2,178,000 | ||||||
Net income | 65,565 | 65,565 | ||||||
Stock options exercised and restricted shares activities | $ 1,269 | $ 1 | 1,268 | |||||
Stock options exercised and restricted shares activities (in shares) | 31,020 | 48,000 | ||||||
Stock-based compensation expense | $ 4,957 | 4,957 | ||||||
Accounting Standards Update [Extensible List] | ASU 2019-12 | ASU 2019-12 | ||||||
Foreign currency translation adjustment | 20 | 20 | ||||||
Balance at Mar. 27, 2021 | $ 1,028,724 | $ 101 | $ 22 | $ 605,962 | $ (232) | $ 422,871 | ||
Balance (in shares) at Mar. 27, 2021 | 10,053,000 | 2,178,000 |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Mar. 27, 2021 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | A. Organization and Basis of Presentation The Boston Beer Company, Inc. and certain subsidiaries (the “Company”) are engaged in the business of selling alcohol beverages throughout the United States and in selected international markets, under the trade names “The Boston Beer Company®”, “Twisted Tea Brewing Company®”, “Hard Seltzer Beverage Company”, “Angry Orchard® Cider Company”, “Dogfish Head® Craft Brewery”, “Angel City® Brewing Company”, “Coney Island® Brewing Company” and “American Fermentation Company”. The accompanying unaudited consolidated balance sheet as of March 27, 2021, and the unaudited consolidated statements of income and comprehensive income, stockholders’ equity, and cash flows for the interim periods ended March 27, 2021 and March 28, 2020 have been prepared by the Company in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and footnotes normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. All intercompany accounts and transactions have been eliminated. These consolidated financial statements should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 26, 2020. In the opinion of the Company’s management, the Company’s unaudited consolidated balance sheet as of March 27, 2021 and the results of its consolidated operations, stockholders’ equity, and cash flows for the interim periods ended March 27, 2021 and March 28, 2020, reflect all adjustments (consisting only of normal and recurring adjustments) necessary to present fairly the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full year. Reclassifications have been made to the prior year’s consolidated financial statements to conform to the current year’s presentation which includes the separate presentation of Third-party production prepayments. |
COVID-19 Pandemic
COVID-19 Pandemic | 3 Months Ended |
Mar. 27, 2021 | |
Covid Nineteen Pandemic [Abstract] | |
COVID-19 Pandemic | B. 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 primarily included significantly reduced keg demand from the on-premise channel and higher labor and safety-related costs at the Company’s breweries. 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 margin rates. In the 13-week period ended March 28, 2020, the Company recorded COVID-19 pre-tax related reductions in net revenue and increases in other costs of $10.0 million. This amount consists of a $5.8 million reduction in net revenue for estimated keg returns from distributors and retailers and $4.2 million of other COVID-19 related direct costs, of which $3.6 million are recorded in cost of goods sold and $0.6 million are recorded in operating expenses. In 2021 and going forward, the Company has chosen not to report COVID-19 related direct costs separately as they are viewed to be a normal part of operations. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 27, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | C. Goodwill and Intangible Assets There were no changes in the carrying value of goodwill during the thirteen weeks ended March 27, 2021 and March 28, 2020. The Company’s intangible assets as of March 27, 2021 and December 26, 2020 were as follows: As of March 27, 2021 As of December 26, 2020 Estimated Useful Gross Carrying Accumulated Net Book Gross Carrying Accumulated Net Book Life (Years) Value Amortization Value Value Amortization Value (in thousands) Customer Relationships 15 $ 3,800 $ (443 ) $ 3,357 $ 3,800 $ (380 ) $ 3,420 Trade Names Indefinite 100,510 — 100,510 100,510 — 100,510 Total intangible assets $ 104,310 $ (443 ) $ 103,867 $ 104,310 $ (380 ) $ 103,930 The Company acquired intangible assets in fiscal year 2019 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 will be amortized on a straight-line basis over the 15 year useful life. Amortization expense in the thirteen weeks ended March 27, 2021 was approximately $63,000. The Company expects to record amortization expense as follows over the remaining current year and the five subsequent years: Fiscal Year Amount (in thousands) Remainder of 2021 $ 190 2022 253 2023 253 2024 253 2025 253 2026 253 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 27, 2021 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | D. Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The standard includes multiple key provisions, including removal of certain exceptions to ASC 740, Income Taxes, and simplification in several other areas such as accounting for a franchise tax (or similar tax) that is partially based on income. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company adopted the standard in the first quarter of fiscal 2021 and recorded an adjustment of $0.1 million to retained earnings. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 27, 2021 | |
Disaggregation Of Revenue [Abstract] | |
Revenue Recognition | E. During the thirteen weeks ended March 27, 2021 approximately 97% of the Company’s revenue was from shipments of its products to domestic distributors, 3% from shipments to international distributors, primarily located in Canada, and less than 1% was from retail beer, cider, and merchandise sales at the Company’s retail locations. During the thirteen weeks ended March 28, 2020 approximately 96% of the Company’s revenue was from shipments of its products to domestic distributors, 3% from shipments to international distributors, primarily located in Canada, and 1% was from retail beer, cider, 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 March 27, 2021 and December 26, 2020, the Company has deferred $24.3 million and $13.9 million, respectively, in revenue related to product shipped prior to these dates. These amounts are included in accrued expenses and other current liabilities in the accompanying consolidated balance sheets. Customer promotional discount programs are entered into by the Company with distributors for certain periods of time. The reimbursements for discounts to distributors are recorded as reductions to net revenue and were $23.4 million and $8.2 million for the thirteen weeks ended March 27, 2021 and March 28, 2020, respectively. 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 allowance. Customer programs and incentives are a common practice in the alcohol beverage industry. Amounts paid in connection with customer programs and incentives are recorded as reductions to net revenue or as advertising, promotional and selling expenses, based on the nature of the expenditure. Customer incentives and other payments made to distributors are primarily based upon 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 revenue or as advertising, promotional and selling expenses for the thirteen weeks ended March 27, 2021 and March 28, 2020 were $33.5 million and $12.7 million, respectively. For the thirteen weeks ended March 27, 2021 and March 28, 2020, the Company recorded certain of these costs in the total amounts of $9.2 million and $4.2 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 . Shipment volume for the quarter was significantly higher than depletions volume and resulted in significantly higher distributor inventory as of March 27, 2021 when compared to March 28, 2020. The Company believes distributor inventory as of March 27, 2021 averaged approximately 7 week 3 and 7 week |
Inventories
Inventories | 3 Months Ended |
Mar. 27, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | F. Inventories Inventories consist of raw materials, work in process and finished goods. Raw materials, which principally consist of hops, flavorings, apple juice, other brewing materials and packaging, are stated at the lower of cost, determined on the first-in, first-out basis, or net realizable value. The Company’s goal is to maintain on hand a supply of at least one year for essential hop varieties, in order to limit the risk of an unexpected reduction in supply. Inventories are generally classified as current assets. The Company classifies hops inventory in excess of two years of forecasted usage in other long-term assets. The cost elements of work in process and finished goods inventory consist of raw materials, direct labor and manufacturing overhead. Inventories consist of the following: March 27, 2021 December 26, 2020 (in thousands) Current inventory: Raw materials $ 75,545 $ 69,272 Work in process 16,679 16,846 Finished goods 68,447 44,792 Total current inventory 160,671 130,910 Long term inventory 10,459 9,639 Total inventory $ 171,130 $ 140,549 |
Third-Party Production Prepayme
Third-Party Production Prepayments | 3 Months Ended |
Mar. 27, 2021 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Third Party Production Prepayments | G. During the thirteen weeks ended March 27, 2021, the Company brewed and packaged approximately 57% 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 generally supplies raw materials and packaging to those brewing companies, and incurs conversion fees for labor at the time the liquid is produced and packaged. The Company has made payments for capital improvements at these third-party brewing facilities that it expenses over the period of the contracts. As of March 27, 2021, and December 26, 2020 total third-party production prepayments were as follows: March 27, 2021 December 26, 2020 (in thousands) Prepaid expenses and other current assets $ - $ 14,816 Third-party production prepayments 93,243 56,843 Total third-party production prepayments $ 93,243 $ 71,659 The Company will expense the total prepaid amount of $93.2 million as a component of cost of goods sold over the contractual period ending December 31, 2025. During the thirteen weeks ended March 27, 2021, the Company entered into a master transaction agreement with one of its existing brewing services providers to ensure access to capacity at a new location and continued access at certain existing locations. The agreement is effective upon the closing of the purchase of the new location by the third-party brewing services provider, expected to complete in April 2021. As part of the master transaction agreement, the Company paid $10.0 million for capital improvements for the new location, which amount is included within the third-party production prepayments balance as of March 27, 2021. The Company is required to pay an additional $17.9 million to ensure access to capacity once the third-party brewing services provider closes on the purchase of the new location and certain other conditions are met. The agreement additionally includes monthly shortfall fees beginning January 1, 2023. 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. As of March 27, 2021, if volume for the remaining term of the production arrangements were zero, the contractual shortfall fees would total $ 67.6 million through December 31, 2026. During the quarter ended March 27, 2021 t he Company reclassified the $ 14.8 million of third-party prepayments at December 26, 2020 from current assets to non-current assets. |
Net Income per Share
Net Income per Share | 3 Months Ended |
Mar. 27, 2021 | |
Earnings Per Share [Abstract] | |
Net Income per Share | H. Net Income per Share The Company calculates net income per share using the two-class method, which requires the Company to allocate net income to its Class A Common Shares, Class B Common Shares and unvested share-based payment awards that participate in dividends with common stock, in the calculation of net income per share. The Class A Common Stock has no voting rights, except (1) as required by law, (2) for the election of Class A Directors, and (3) that the approval of the holders of the Class A Common Stock is required for (a) certain future authorizations or issuances of additional securities which have rights senior to Class A Common Stock, (b) certain alterations of rights or terms of the Class A or Class B Common Stock as set forth in the Articles of Organization of the Company, (c) other amendments of the Articles of Organization of the Company, (d) certain mergers or consolidations with, or acquisitions of, other entities, and (e) sales or dispositions of any significant portion of the Company’s assets. The Class B Common Stock has full voting rights, including the right to (1) elect a majority of the members of the Company’s Board of Directors and (2) approve all (a) amendments to the Company’s Articles of Organization, (b) mergers or consolidations with, or acquisitions of, other entities, (c) sales or dispositions of any significant portion of the Company’s assets, and (d) equity-based and other executive compensation and other significant corporate matters. The Company’s Class B Common Stock is not listed for trading. Each share of the Class B Common Stock is freely convertible into one share of Class A Common Stock, upon request of the respective Class B holder, and participates equally in dividends. The Company’s unvested share-based payment awards include unvested shares (1) issued under the Company’s investment share program, which permits employees who have been with the Company for at least one year to purchase shares of Class A Common Stock and to purchase those shares at a discount ranging from 20% to 40% below market value based on years of employment starting after two years of employment, and (2) awarded as restricted stock awards at the discretion of the Company’s Board of Directors. The investment shares and restricted stock awards generally vest over five years in equal number of shares. The unvested shares participate equally in dividends. See Note O for a discussion of the current year unvested stock awards and issuances. Included in the computation of net income per diluted common share are dilutive outstanding stock options and restricted stock that are vested or expected to vest. At its discretion, the Board of Directors grants stock options and restricted stock to senior management and certain key employees. The terms of the employee stock options are determined by the Board of Directors at the time of grant. To date, stock options granted to employees vest over various service periods and/or based on the attainment of certain performance criteria and generally expire after ten years. In December 2018, the Employee Equity Incentive Plan was amended to permit the grant of restricted stock units. The restricted stock units generally vest over four years in equal number of shares. Each restricted stock unit represents an unfunded and unsecured right to receive one share of Class A Stock upon satisfaction of the vesting criteria. The unvested shares participate equally in dividends and are forfeitable. Prior to March 1, 2019, the Company granted restricted stock awards, generally vesting over five years in equal number of shares. The Company also grants stock options to its non-employee directors upon election or re-election to the Board of Directors. The number of option shares granted to non-employee directors is calculated based on a defined formula and these stock options vest immediately upon grant and expire after ten years. Net Income per Common Share - Basic The following table sets forth the computation of basic net income per share using the two-class method: Thirteen weeks ended March 27, 2021 March 28, 2020 (in thousands, except per share data) Net income $ 65,565 $ 18,234 Allocation of net income for basic: Class A Common Stock $ 53,628 $ 14,136 Class B Common Stock 11,638 3,967 Unvested participating shares 299 131 $ 65,565 $ 18,234 Weighted average number of shares for basic: Class A Common Stock 10,037 9,425 Class B Common Stock* 2,178 2,645 Unvested participating shares 56 87 12,271 12,157 Net income per share for basic: Class A Common Stock $ 5.34 $ 1.50 Class B Common Stock $ 5.34 $ 1.50 *Change in Class B Common Stock resulted from the conversion of 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. The following table sets forth the computation of diluted net income per share, assuming the conversion of all Class B Common Stock into Class A Common Stock for the thirteen weeks ended March 27, 2021 and for the thirteen weeks ended March 28, 2020: Thirteen weeks ended March 27, 2021 March 28, 2020 Earnings to Common Shareholders Common Shares EPS Earnings to Common Shareholders Common Shares EPS (in thousands, except per share data) As reported - basic $ 53,628 10,037 $ 5.34 $ 14,136 9,425 $ 1.50 Add: effect of dilutive potential common shares Share-based awards — 162 — 116 Class B Common Stock 11,638 2,178 3,967 2,645 Net effect of unvested participating shares 299 80 1 — Net income per common share - diluted $ 65,565 12,457 $ 5.26 $ 18,104 12,186 $ 1.49 In accordance with the treasury stock method, weighted-average stock options to purchase approximately 6,035 shares of Class A Common stock and 4,027 unvested share based payments were outstanding during the thirteen weeks ended March 27, 2021 but not included in computing dilutive income per common share because their effects were anti-dilutive. In accordance with the two-class method, weighted average stock options to purchase approximately 33,000 shares of Class A Common Stock were outstanding during the thirteen weeks ended March 28, 2020 but not included in computing dilutive income per common share because their effects were anti-dilutive. Additionally, performance-based stock options to purchase approximately 10,000 shares of Class A Common Stock were outstanding as of March 28 , 2020 but not included in computing diluted income per common share because the performance criteria of these stock options w ere not met as of the end of the reporting period . |
Comprehensive Income or Loss
Comprehensive Income or Loss | 3 Months Ended |
Mar. 27, 2021 | |
Comprehensive Income Net Of Tax [Abstract] | |
Comprehensive Income or Loss | I. Comprehensive Income or Loss Comprehensive income or loss represents net income or loss and foreign currency translation adjustment. The foreign currency translation adjustments for the interim periods ended March 27, 2021 and March 28, 2020 were not material. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 27, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | J. Commitments and Contingencies Contract Obligations As of March 27, 2021, projected cash outflows under non-cancelable contractual obligations are as follows: Commitments (in thousands) Brand support $ 104,494 Equipment and machinery 86,645 Ingredients (excluding hops and malt) 82,902 Hops and malt 47,658 Other 15,176 Total commitments $ 336,875 The majority of these contract obligations are for the 2021 fiscal years with the remainder extending no later than the 2026 fiscal year. Litigation The Company is not a party to any pending or threatened litigation, the outcome of which would be expected to have a material adverse effect upon its financial condition or the results of its operations. In general, while the Company believes it conducts its business appropriately in accordance with laws, regulations and industry guidelines, claims, whether or not meritorious, could be asserted against the Company that might adversely impact the Company’s results. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 27, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | K. Income Taxes As of March 27, 2021 and December 26, 2020, the Company had approximately $0.8 million of unrecognized income tax benefits as of each date. The Company’s practice is to classify interest and penalties related to income tax matters in income tax expense. As of March 27, 2021 and December 26, 2020, the Company had $0.2 million and $0.2 million, respectively, accrued for interest and penalties recorded in other liabilities. The Internal Revenue Service completed an examination of the 2015 consolidated corporate income tax return and issued a no change report in 2018. The Company’s state income tax returns remain subject to examination for three or four years depending on the state’s statute of limitations. The Company is currently under two state income tax audits as of March 27, 2021. The following table provides a summary of the income tax provision for the thirteen weeks ended March 27, 2021 and March 28, 2020: Thirteen weeks ended March 27, 2021 March 28, 2020 (in thousands) Summary of income tax provision Tax provision based on net income $ 19,613 $ 5,005 Benefit of ASU 2016-09 (8,615 ) (2,004 ) Total income tax provision $ 10,998 $ 3,001 The benefit of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, increased by $6.6 million to $8.6 million for the thirteen weeks ended March 27, 2021 as compared to $2.0 million for the thirteen weeks ended March 28, 2020, primarily due to increases in number of shares exercised and increases in stock price. The Company’s effective tax rate for the thirteen weeks ended March 27, 2021, excluding the impact of ASU 2016-09, increased to 25.6% from 23.6% for the thirteen weeks ended March 28, 2020, primarily due to one-time state tax benefits related to capital investments for the thirteen weeks ended March 28, 2020. |
Revolving Line of Credit
Revolving Line of Credit | 3 Months Ended |
Mar. 27, 2021 | |
Debt Disclosure [Abstract] | |
Revolving Line of Credit | L. In March 2018, the Company amended its existing credit facility that provides for a $150.0 million revolving line of credit to extend the scheduled expiration date to March 31, 2023. As of March 27, 2021, the Company was not in violation of any of its financial covenants to the lender under the credit facility and t he full balance of $150.0 million under the line of credit was available to the Company for future borrowing. |
Fair Value Measures
Fair Value Measures | 3 Months Ended |
Mar. 27, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measures | M. Fair Value 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 March 27, 2021 and December 26, 2020, 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 March 27, 2021 and December 26, 2020, the Company’s cash and cash equivalents balance was $144.7 million and $163.3 million, respectively, including money market funds amounting to $140.6 million and $157.6 million, respectively. |
Common Stock and Stock-Based Co
Common Stock and Stock-Based Compensation | 3 Months Ended |
Mar. 27, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Common Stock and Stock-Based Compensation | N. Option Activity Information related to stock options under the Restated Employee Equity Incentive Plan and the Stock Option Plan for Non-Employee Directors is summarized as follows: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term in Years Aggregate Intrinsic Value (in thousands) Outstanding at December 26, 2020 241,847 $ 228.58 Granted 18,998 1,028.71 Forfeited - - Expired - - Exercised (31,020 ) 195.05 Outstanding at March 27, 2021 229,825 $ 229.25 3.30 $ 120,540 Exercisable at March 27, 2021 81,710 $ 214.22 3.30 $ 197,820 Vested and expected to vest at March 27, 2021 210,570 $ 294.96 3.30 $ 182,149 Of the total options outstanding at March 27, 2021, 23,019 shares were performance-based options for which the performance criteria had yet to be achieved. On March 1, 2021, the Company granted options to purchase an aggregate of 8,063 shares of the Company’s Class A Common Stock to senior management with a weighted average fair value of $449.93 per share, of which all shares relate to performance-based stock options. On March 1, 2021 the Company granted options to purchase an aggregate of 10,935 shares of the Company’s Class A Common Stock to the Chief Executive Officer with a weighted average fair value of $457.25 per share, of which all shares relate to service-based stock options. Weighted average assumptions used to estimate fair values of stock options on the date of grants are as follows: 2021 Expected Volatility 36.1 % Risk-free interest rate 1.4 % Expected Dividends 0.0 % Exercise factor 2.5 times Discount for post-vesting restrictions 0.0 % 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 26, 2020 114,316 $ 263.47 Granted 17,632 880.81 Vested (22,885 ) 221.81 Forfeited (196 ) 150.24 Non-vested at March 27, 2021 108,867 $ 373.08 Of the total shares outstanding at March 27, 2021, 2,696 shares were performance-based shares for which the performance criteria had yet to be achieved. On March 1, 2021, the Company granted a combined 7,817 shares of restricted stock units to certain officers, senior managers and key employees, of which all shares vest ratably over service periods of four years. Additionally on March 1, 2020, the Company granted 4,861 shares of restricted stock units to the Chief Executive Officer, of which all shares vest over five years. On March 1, 2021, employees elected to purchase a combined 4,954 shares under the Company’s investment share program. The weighted average fair value of the restricted stock units and investment shares, which are sold to employees at discount under its investment share program, was $ 1,028.71 and $ 502.32 per share, respectively . Stock-Based Compensation The following table provides information regarding stock-based compensation expense included in operating expenses in the accompanying consolidated statements of comprehensive income: Thirteen weeks ended March 27, 2021 March 28, 2020 (in thousands) Amounts included in advertising, promotional and selling expenses $ 1,672 $ 705 Amounts included in general and administrative expenses 3,285 1,861 Total stock-based compensation expense $ 4,957 $ 2,566 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 27, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | O. Related Party Transactions In connection with the Dogfish Head Transaction, the Company entered a lease with the Dogfish Head founders and other owners of buildings used in certain of the Company’s restaurant operations. The lease is for ten years with renewal options. The total payments due under the initial ten year term is $3.6 million. Total related party expense recognized for the thirteen weeks ended March 27, 2021 related to the lease was approximately $91,000. Additionally, during the thirteen weeks ended March 27, 2021, the Company incurred expenses of less than $50,000 to various other suppliers affiliated with the Dogfish Head founders. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 27, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | P. Subsequent Events The Company evaluated subsequent events occurring after the balance sheet date, March 27, 2021, 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. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | The Company’s intangible assets as of March 27, 2021 and December 26, 2020 were as follows: As of March 27, 2021 As of December 26, 2020 Estimated Useful Gross Carrying Accumulated Net Book Gross Carrying Accumulated Net Book Life (Years) Value Amortization Value Value Amortization Value (in thousands) Customer Relationships 15 $ 3,800 $ (443 ) $ 3,357 $ 3,800 $ (380 ) $ 3,420 Trade Names Indefinite 100,510 — 100,510 100,510 — 100,510 Total intangible assets $ 104,310 $ (443 ) $ 103,867 $ 104,310 $ (380 ) $ 103,930 |
Schedule of amortization expense | The Company expects to record amortization expense as follows over the remaining current year and the five subsequent years: Fiscal Year Amount (in thousands) Remainder of 2021 $ 190 2022 253 2023 253 2024 253 2025 253 2026 253 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories consist of the following: March 27, 2021 December 26, 2020 (in thousands) Current inventory: Raw materials $ 75,545 $ 69,272 Work in process 16,679 16,846 Finished goods 68,447 44,792 Total current inventory 160,671 130,910 Long term inventory 10,459 9,639 Total inventory $ 171,130 $ 140,549 |
Third-Party Production Prepay_2
Third-Party Production Prepayments (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Schedule of Third-Party Production Prepayments | As of March 27, 2021, and December 26, 2020 total third-party production prepayments were as follows: March 27, 2021 December 26, 2020 (in thousands) Prepaid expenses and other current assets $ - $ 14,816 Third-party production prepayments 93,243 56,843 Total third-party production prepayments $ 93,243 $ 71,659 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
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: Thirteen weeks ended March 27, 2021 March 28, 2020 (in thousands, except per share data) Net income $ 65,565 $ 18,234 Allocation of net income for basic: Class A Common Stock $ 53,628 $ 14,136 Class B Common Stock 11,638 3,967 Unvested participating shares 299 131 $ 65,565 $ 18,234 Weighted average number of shares for basic: Class A Common Stock 10,037 9,425 Class B Common Stock* 2,178 2,645 Unvested participating shares 56 87 12,271 12,157 Net income per share for basic: Class A Common Stock $ 5.34 $ 1.50 Class B Common Stock $ 5.34 $ 1.50 *Change in Class B Common Stock resulted from the conversion of 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 table sets forth the computation of diluted net income per share, assuming the conversion of all Class B Common Stock into Class A Common Stock for the thirteen weeks ended March 27, 2021 and for the thirteen weeks ended March 28, 2020: Thirteen weeks ended March 27, 2021 March 28, 2020 Earnings to Common Shareholders Common Shares EPS Earnings to Common Shareholders Common Shares EPS (in thousands, except per share data) As reported - basic $ 53,628 10,037 $ 5.34 $ 14,136 9,425 $ 1.50 Add: effect of dilutive potential common shares Share-based awards — 162 — 116 Class B Common Stock 11,638 2,178 3,967 2,645 Net effect of unvested participating shares 299 80 1 — Net income per common share - diluted $ 65,565 12,457 $ 5.26 $ 18,104 12,186 $ 1.49 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Non-cancelable Contractual Obligations | As of March 27, 2021, projected cash outflows under non-cancelable contractual obligations are as follows: Commitments (in thousands) Brand support $ 104,494 Equipment and machinery 86,645 Ingredients (excluding hops and malt) 82,902 Hops and malt 47,658 Other 15,176 Total commitments $ 336,875 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Income Tax Disclosure [Abstract] | |
Significant Components of Provisions for Income Taxes | The following table provides a summary of the income tax provision for the thirteen weeks ended March 27, 2021 and March 28, 2020: Thirteen weeks ended March 27, 2021 March 28, 2020 (in thousands) Summary of income tax provision Tax provision based on net income $ 19,613 $ 5,005 Benefit of ASU 2016-09 (8,615 ) (2,004 ) Total income tax provision $ 10,998 $ 3,001 |
Common Stock and Stock-Based _2
Common Stock and Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Options under Employee Equity Incentive Plan and Stock Option Plan for Non-Employee Directors | Information related to stock options under the Restated Employee Equity Incentive Plan and the Stock Option Plan for Non-Employee Directors is summarized as follows: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term in Years Aggregate Intrinsic Value (in thousands) Outstanding at December 26, 2020 241,847 $ 228.58 Granted 18,998 1,028.71 Forfeited - - Expired - - Exercised (31,020 ) 195.05 Outstanding at March 27, 2021 229,825 $ 229.25 3.30 $ 120,540 Exercisable at March 27, 2021 81,710 $ 214.22 3.30 $ 197,820 Vested and expected to vest at March 27, 2021 210,570 $ 294.96 3.30 $ 182,149 |
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: 2021 Expected Volatility 36.1 % Risk-free interest rate 1.4 % Expected Dividends 0.0 % Exercise factor 2.5 times Discount for post-vesting restrictions 0.0 % |
Summary of Vesting Activities of Shares Issued Under Investment Share Program and Restricted Stock Awards | The following table summarizes vesting activities of shares issued under the investment share program and restricted stock awards: Number of Shares Weighted Average Fair Value Non-vested at December 26, 2020 114,316 $ 263.47 Granted 17,632 880.81 Vested (22,885 ) 221.81 Forfeited (196 ) 150.24 Non-vested at March 27, 2021 108,867 $ 373.08 |
Stock-Based Compensation Expense Included in Operating Expenses | The following table provides information regarding stock-based compensation expense included in operating expenses in the accompanying consolidated statements of comprehensive income: Thirteen weeks ended March 27, 2021 March 28, 2020 (in thousands) Amounts included in advertising, promotional and selling expenses $ 1,672 $ 705 Amounts included in general and administrative expenses 3,285 1,861 Total stock-based compensation expense $ 4,957 $ 2,566 |
COVID-19 Pandemic - Additional
COVID-19 Pandemic - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Reductions in net revenue and increases in other costs | ||
Net effect of COVID-19 on revenue, cost of goods sold and operating expense | $ 76,598 | $ 21,532 |
Cost of goods sold | 295,450 | 182,592 |
Operating expenses | $ 173,032 | 126,441 |
COVID-19 Pandemic [Member] | ||
Reductions in net revenue and increases in other costs | ||
Net effect of COVID-19 on revenue, cost of goods sold and operating expense | 10,000 | |
Reduction in net revenue | 5,800 | |
Other direct costs | 4,200 | |
Cost of goods sold | 3,600 | |
Operating expenses | $ 600 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 27, 2021 | Mar. 28, 2020 | Dec. 28, 2019 | |
Goodwill, period increase (Decrease) | $ 0 | $ 0 | |
Intangible assets amortization | $ 63,000 | ||
Trade Names | Dogfish Head Brewery | |||
Brand | $ 98,500,000 | ||
Customer Relationships | |||
Estimated fair value | $ 3,800,000 | ||
Useful life of finite lived intangibles | 15 years |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2021 | Dec. 26, 2020 | |
Gross Carrying Value | $ 104,310 | $ 104,310 |
Accumulated Amortization | (443) | (380) |
Net Book Value | $ 103,867 | 103,930 |
Customer Relationships | ||
Estimated Useful Life | 15 years | |
Gross Carrying Value | $ 3,800 | 3,800 |
Accumulated Amortization | (443) | (380) |
Net Book Value | 3,357 | 3,420 |
Trade Names | ||
Gross Carrying Value | 100,510 | 100,510 |
Net Book Value | $ 100,510 | $ 100,510 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Amortization Expense (Detail) $ in Thousands | Mar. 27, 2021USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Remainder of 2021 | $ 190 |
2022 | 253 |
2023 | 253 |
2024 | 253 |
2025 | 253 |
2026 | $ 253 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 27, 2021 | Dec. 26, 2020 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Adoption of accounting standards, adjustment to retained earnings | $ 422,871 | $ 357,360 |
Cumulative Effect, Period of Adoption, Adjustment | ASU 2019-12 | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Adoption of accounting standards, adjustment to retained earnings | $ 100 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 27, 2021 | Mar. 28, 2020 | Dec. 26, 2020 | |
Disaggregation Of Revenue [Line Items] | |||
Sales to domestic distributors as a percentage of total sales | 97.00% | 96.00% | |
Sales to foreign distributors as a percentage of total sales | 3.00% | 3.00% | |
Sales to retail locations as a percentage of total sales | 1.00% | 1.00% | |
Deferred Revenue, Current | $ 24,300 | $ 13,900 | |
Reimbursements for discounts to distributors | 23,400 | $ 8,200 | |
Advertising, promotional and selling expenses | $ 140,859 | 97,891 | |
Distributor average inventory period | 49 days | ||
Minimum | |||
Disaggregation Of Revenue [Line Items] | |||
Wholesale inventory level period | 21 days | ||
Maximum | |||
Disaggregation Of Revenue [Line Items] | |||
Wholesale inventory level period | 49 days | ||
Distributors | |||
Disaggregation Of Revenue [Line Items] | |||
Reduction in revenue related to advertising, promotional and selling expenses | $ 9,200 | 4,200 | |
Customers programs and incentives | |||
Disaggregation Of Revenue [Line Items] | |||
Advertising, promotional and selling expenses | $ 33,500 | $ 12,700 |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands | Mar. 27, 2021 | Dec. 26, 2020 |
Current inventory: | ||
Raw materials | $ 75,545 | $ 69,272 |
Work in process | 16,679 | 16,846 |
Finished goods | 68,447 | 44,792 |
Total current inventory | 160,671 | 130,910 |
Long term inventory | 10,459 | 9,639 |
Total inventory | $ 171,130 | $ 140,549 |
Third-Party Production Prepay_3
Third-Party Production Prepayments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2021 | Dec. 26, 2020 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Percentage of brews and packages | 57.00% | |
Total third-party production prepayments | $ 93,243 | $ 56,843 |
Payments for capital improvements | 10,000 | |
Additional payment for accessing facility | 17,900 | |
Contractual shortfall fees | 67,600 | |
Reclassification of third-party prepayments from current assets to non-current assets | $ 14,800 |
Third- Party Production Prepaym
Third- Party Production Prepayments - Schedule of Third-Party Production Prepayments (Detail) - USD ($) $ in Thousands | Mar. 27, 2021 | Dec. 26, 2020 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Prepaid expenses and other current assets | $ 14,816 | |
Third-party production prepayments | $ 93,243 | 56,843 |
Total third-party production prepayments | $ 93,243 | $ 71,659 |
Net Income per Share - Addition
Net Income per Share - Additional Information (Detail) - shares | Mar. 01, 2021 | Mar. 01, 2020 | Mar. 01, 2019 | Jan. 01, 2019 | Mar. 27, 2021 | Mar. 28, 2020 |
Earnings Per Share Note [Line Items] | ||||||
Antidilutive securities excluded from computation of earnings per share | 4,027 | |||||
Common Class A | ||||||
Earnings Per Share Note [Line Items] | ||||||
Antidilutive securities excluded from computation of earnings per share | 6,035 | 33,000 | ||||
Investment Share Program | ||||||
Earnings Per Share Note [Line Items] | ||||||
Vesting period | 5 years | |||||
Investment Share Program | Minimum | ||||||
Earnings Per Share Note [Line Items] | ||||||
Requirement tenure of employee for investment share program, purchase shares at discount | 1 year | |||||
Discount from current market value | 20.00% | |||||
Investment Share Program | Maximum | ||||||
Earnings Per Share Note [Line Items] | ||||||
Requirement tenure of employee for investment share program, purchase shares at discount | 2 years | |||||
Discount from current market value | 40.00% | |||||
Restricted Stock Awards | ||||||
Earnings Per Share Note [Line Items] | ||||||
Vesting period | 4 years | 4 years | 4 years | 5 years | ||
Performance Based Awards | Common Class A | ||||||
Earnings Per Share Note [Line Items] | ||||||
Number of shares not included because the performance criteria was not expected to be met | 10,000 |
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 | ||
Mar. 27, 2021 | Mar. 28, 2020 | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Net income | $ 65,565 | $ 18,234 | |
Allocation of net income for basic: | |||
Allocation of net income for basic common stock | $ 65,565 | $ 18,234 | |
Weighted average number of shares for basic: | |||
Weighted-average number of common shares — basic | 12,271 | 12,157 | |
Net income per share for basic: | |||
Net income per common share - basic | $ 5.34 | $ 1.50 | |
Common Class A | |||
Allocation of net income for basic: | |||
Allocation of net income for basic common stock | $ 53,628 | $ 14,136 | |
Weighted average number of shares for basic: | |||
Weighted-average number of common shares — basic | 10,037 | 9,425 | |
Net income per share for basic: | |||
Net income per common share - basic | $ 5.34 | $ 1.50 | |
Common Class B | |||
Allocation of net income for basic: | |||
Allocation of net income for basic common stock | $ 11,638 | $ 3,967 | |
Weighted average number of shares for basic: | |||
Weighted-average number of common shares — basic | [1] | 2,178 | 2,645 |
Net income per share for basic: | |||
Net income per common share - basic | $ 5.34 | $ 1.50 | |
Unvested participating shares | |||
Allocation of net income for basic: | |||
Allocation of net income for basic unvested participating shares | $ 299 | $ 131 | |
Weighted average number of shares for basic: | |||
Weighted-average number of common shares — basic | 56 | 87 | |
[1] | Change in Class B Common Stock resulted from the conversion of 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 Share - Comput_2
Net Income per Share - Computation of Earnings Per Share, Basic (Parenthetical) (Detail) - shares | Nov. 03, 2020 | May 06, 2020 |
Earnings Per Share [Abstract] | ||
Conversion of Class B Common Stock into Class A Common Stock | 130,000 | 215,000 |
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 | ||
Mar. 27, 2021 | Mar. 28, 2020 | ||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | |||
Earnings to Common Shareholders, As reported - basic | $ 65,565 | $ 18,234 | |
Weighted-average number of common shares — basic | 12,271 | 12,157 | |
EPS, As reported - basic | $ 5.34 | $ 1.50 | |
Add: effect of dilutive potential common shares Share-based awards | 162 | 116 | |
Earnings to Common Shareholders, Net effect of unvested participating shares | $ 299 | $ 1 | |
Common Shares, Net effect of unvested participating shares | 80 | ||
Earnings to Common Shareholders, Net income per common share — diluted | $ 65,565 | $ 18,104 | |
Common Shares, Net income per common share — diluted | 12,457 | 12,186 | |
EPS, Net income per common share — diluted | $ 5.26 | $ 1.49 | |
Common Class A | |||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | |||
Earnings to Common Shareholders, As reported - basic | $ 53,628 | $ 14,136 | |
Weighted-average number of common shares — basic | 10,037 | 9,425 | |
EPS, As reported - basic | $ 5.34 | $ 1.50 | |
Common Class B | |||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | |||
Earnings to Common Shareholders, As reported - basic | $ 11,638 | $ 3,967 | |
Weighted-average number of common shares — basic | [1] | 2,178 | 2,645 |
EPS, As reported - basic | $ 5.34 | $ 1.50 | |
Earnings to Common Shareholders, Class B Common Stock | $ 11,638 | $ 3,967 | |
Class B Common Stock | 2,178 | 2,645 | |
[1] | Change in Class B Common Stock resulted from the conversion of 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. |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Non-cancelable Contractual Obligations (Detail) $ in Thousands | Mar. 27, 2021USD ($) |
Long-term Purchase Commitment [Line Items] | |
Commitments | $ 336,875 |
Equipment and machinery | |
Long-term Purchase Commitment [Line Items] | |
Commitments | 86,645 |
Brand Support | |
Long-term Purchase Commitment [Line Items] | |
Commitments | 104,494 |
Ingredients (excluding hops and malt) | |
Long-term Purchase Commitment [Line Items] | |
Commitments | 82,902 |
Hops and Malt | |
Long-term Purchase Commitment [Line Items] | |
Commitments | 47,658 |
Other | |
Long-term Purchase Commitment [Line Items] | |
Commitments | $ 15,176 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 26, 2021 | Mar. 27, 2021 | Mar. 28, 2020 | Dec. 26, 2020 |
Income Taxes [Line Items] | ||||
Unrecognized income tax benefits | $ 800 | $ 800 | ||
Accrued interest and penalties | 200 | $ 200 | ||
Tax benefit of improvements to employee share-based payment | 8,615 | $ 2,004 | ||
ASU 2016-09 | ||||
Income Taxes [Line Items] | ||||
Tax benefit of improvements to employee share-based payment | $ 6,600 | $ 8,600 | $ 2,000 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 25.60% | 23.60% | ||
State and Local Jurisdiction | ||||
Income Taxes [Line Items] | ||||
Income tax return examination | The Internal Revenue Service completed an examination of the 2015 consolidated corporate income tax return and issued a no change report in 2018. The Company’s state income tax returns remain subject to examination for three 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 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Provision (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Summary of income tax provision | ||
Tax provision based on net income | $ 19,613 | $ 5,005 |
Benefit of ASU 2016-09 | (8,615) | (2,004) |
Total income tax provision | $ 10,998 | $ 3,001 |
Revolving Line of Credit - Addi
Revolving Line of Credit - Additional Information (Detail) - Revolving Credit Facility - USD ($) $ in Millions | 1 Months Ended | |
Mar. 31, 2018 | Mar. 27, 2021 | |
Debt Instrument [Line Items] | ||
Line of credit, current borrowing capacity | $ 150 | $ 150 |
Line of credit, expiration date | Mar. 31, 2023 |
Fair Value Measures - Additiona
Fair Value Measures - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 27, 2021 | Dec. 26, 2020 |
Fair Value Disclosures [Abstract] | ||
Cash and cash equivalents | $ 144,658 | $ 163,282 |
Money market fund | $ 140,600 | $ 157,600 |
Common Stock and Stock-Based _3
Common Stock and Stock-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 | 3 Months Ended |
Mar. 27, 2021USD ($)$ / sharesshares | |
Shares | |
Outstanding at beginning of period | shares | 241,847 |
Granted | shares | 18,998 |
Exercised | shares | (31,020) |
Outstanding at end of period | shares | 229,825 |
Exercisable at end of period | shares | 81,710 |
Vested and expected to vest at end of period | shares | 210,570 |
Weighted-Average Exercise Price | |
Outstanding at beginning of period | $ / shares | $ 228.58 |
Granted | $ / shares | 1,028.71 |
Exercised | $ / shares | 195.05 |
Outstanding at end of period | $ / shares | 229.25 |
Exercisable at end of period | $ / shares | 214.22 |
Vested and expected to vest at end of period | $ / shares | $ 294.96 |
Weighted-Average Remaining Contractual Term | |
Outstanding at end of period | 3 years 3 months 18 days |
Exercisable at end of period | 3 years 3 months 18 days |
Vested and expected to vest at end of period | 3 years 3 months 18 days |
Aggregate Intrinsic Value | |
Outstanding at end of period | $ | $ 120,540 |
Exercisable at end of period | $ | 197,820 |
Vested and expected to vest at end of period | $ | $ 182,149 |
Common Stock and Stock-Based _4
Common Stock and Stock-Based Compensation - Additional Information (Detail) - $ / shares | Mar. 01, 2021 | Mar. 01, 2020 | Mar. 01, 2019 | Jan. 01, 2019 | Mar. 27, 2021 | Dec. 26, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock option outstanding | 229,825 | 241,847 | ||||
Other than options granted in period | 17,632 | |||||
Weighted average fair value of stock awards | $ 880.81 | |||||
Restricted Stock Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Other than options granted in period | 7,817 | |||||
Vesting period | 4 years | 4 years | 4 years | 5 years | ||
Weighted average fair value of stock awards | $ 1,028.71 | |||||
Restricted Stock Awards | Chief Executive Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Other than options granted in period | 4,861 | |||||
Vesting period | 5 years | |||||
Service-Based Stock Options | Employee Stock Compensation Plan | Chief Executive Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options granted in period | 10,935 | |||||
Options granted in period - weighted average fair value | $ 457.25 | |||||
Performance Based Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock option outstanding | 23,019 | |||||
Total shares outstanding | 2,696 | |||||
Performance Based Awards | Employee Stock Compensation Plan | Senior Management | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options granted in period | 8,063 | |||||
Options granted in period - weighted average fair value | $ 449.93 | |||||
Investment Share Program | Employee Stock Compensation Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares employees elected to purchase | 4,954 | |||||
Weighted average fair value of stock awards | $ 502.32 |
Common Stock and Stock-Based _5
Common Stock and Stock-Based Compensation - Summary Of Weighted Average Assumptions used to Estimate Fair Value of Stock Options (Detail) | 3 Months Ended |
Mar. 27, 2021Time | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Expected Volatility | 36.10% |
Risk-free interest rate | 1.40% |
Expected Dividends | 0.00% |
Exercise factor | 2.5 |
Discount for post-vesting restrictions | 0.00% |
Common Stock and Stock-Based _6
Common Stock and Stock-Based Compensation - Summary of Vesting Activities of Shares Issued Under Investment Share Program and Restricted Stock Awards (Detail) | 3 Months Ended |
Mar. 27, 2021$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Non-vested at beginning of period | shares | 114,316 |
Granted | shares | 17,632 |
Vested | shares | (22,885) |
Forfeited | shares | (196) |
Non-vested at end of period | shares | 108,867 |
Non-vested at beginning of period | $ / shares | $ 263.47 |
Granted | $ / shares | 880.81 |
Vested | $ / shares | 221.81 |
Forfeited | $ / shares | 150.24 |
Non-vested at end of period | $ / shares | $ 373.08 |
Common Stock and Stock-Based _7
Common Stock and Stock-Based Compensation - Stock-Based Compensation Expense Included in Operating Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 4,957 | $ 2,566 |
Advertising, promotional and selling expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 1,672 | 705 |
General and administrative expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 3,285 | $ 1,861 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - Dogfish Head Brewery | 3 Months Ended |
Mar. 27, 2021USD ($) | |
Related Party Transaction [Line Items] | |
Lease term of contract | 10 years |
Total payments due | $ 3,600,000 |
Related party expense | 91,000 |
Transaction with related party expenses | $ 50,000 |