0001193125-20-274422 | 10-Q | XBRL Viewer

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Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 26, 2020	Oct. 16, 2020
Document Information [Line Items]
Document Transition Report	false
Document Quarterly Report	true
Document Type	10-Q
Document Period End Date	Sep. 26, 2020
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Registrant Name	BOSTON BEER CO INC
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity File Number	1-14092
Entity Incorporation, State or Country Code	MA
Entity Tax Identification Number	04-3284048
Entity Address, Address Line One	One Design Center Place, Suite 850
Entity Address, City or Town	Boston
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02210
City Area Code	617
Local Phone Number	368-5000
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Entity Central Index Key	0000949870
Current Fiscal Year End Date	--12-26
Trading Symbol	SAM
Security Exchange Name	NYSE
Title of 12(b) Security	Class A Common Stock
Common Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		9,934,625
Common Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		2,307,983

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 26, 2020	Dec. 28, 2019
Current Assets:
Cash and cash equivalents	$ 157,130	$ 36,670
Accounts receivable	93,809	54,404
Inventories	123,831	106,038
Prepaid expenses and other current assets	22,214	12,077
Income tax receivable	3,041	9,459
Total current assets	400,025	218,648
Property, plant and equipment, net	588,977	541,068
Operating right-of-use assets	59,991	53,758
Goodwill	112,529	112,529
Intangible assets	103,994	104,272
Other assets	46,820	23,782
Total assets	1,312,336	1,054,057
Current Liabilities:
Accounts payable	108,600	76,374
Accrued expenses and other current liabilities	115,604	99,107
Current operating lease liabilities	7,735	5,168
Total current liabilities	231,939	180,649
Deferred income taxes, net	89,170	75,010
Non-current operating lease liabilities	61,184	53,940
Other liabilities	11,513	8,822
Total liabilities	393,806	318,421
Commitments and Contingencies (See Note K)
Stockholders' Equity:
Additional paid-in capital	594,427	571,784
Accumulated other comprehensive loss, net of tax	(562)	(1,669)
Retained earnings	324,543	165,400
Total stockholders' equity	918,530	735,636
Total liabilities and stockholders' equity	1,312,336	1,054,057
Common Class A
Stockholders' Equity:
Common Stock	99	94
Common Class B
Stockholders' Equity:
Common Stock	$ 23	$ 27

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 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	9,868,649	9,370,526
Common Stock, shares outstanding	9,868,649	9,370,526
Common Class B
Common Stock, par value	$ 0.01	$ 0.01
Common Stock, shares authorized	4,200,000	4,200,000
Common Stock, shares issued	2,307,983	2,672,983
Common Stock, shares outstanding	2,307,983	2,672,983

Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 26, 2020	Sep. 28, 2019	Sep. 26, 2020	Sep. 28, 2019
Revenue	$ 525,249	$ 402,691	$ 1,358,563	$ 1,008,893
Less excise taxes	32,457	24,225	83,068	60,369
Net revenue	492,792	378,466	1,275,495	948,524
Cost of goods sold	252,207	190,631	677,313	477,147
Gross profit	240,585	187,835	598,182	471,377
Operating expenses:
Advertising, promotional and selling expenses	108,023	96,570	306,250	262,372
General and administrative expenses	30,340	31,429	87,054	81,552
Impairment of assets	441		2,796	243
Total operating expenses	138,804	127,999	396,100	344,167
Operating income	101,781	59,836	202,082	127,210
Other income (expense), net:
Interest (expense) income, net	(20)	(138)	(169)	472
Other income (expense), net	190	(764)	(222)	(818)
Total other income (expense), net	170	(902)	(391)	(346)
Income before income tax provision	101,951	58,934	201,691	126,864
Income tax provision	21,183	14,205	42,548	30,585
Net income	$ 80,768	$ 44,729	$ 159,143	$ 96,279
Net income per common share - basic	$ 6.61	$ 3.70	$ 13.05	$ 8.16
Net income per common share - diluted	$ 6.51	$ 3.65	$ 12.90	$ 8.07
Weighted-average number of common shares - basic	12,221	12,099	12,191	11,802
Weighted-average number of common shares - diluted	12,333	12,150	12,259	11,823
Net income	$ 80,768	$ 44,729	$ 159,143	$ 96,279
Other comprehensive income, net of tax:
Foreign currency translation adjustment	61	1	(10)	43
Defined benefit plans liability adjustment	1,117		1,117
Total other comprehensive income, net of tax	1,178	1	1,107	43
Comprehensive income	$ 81,946	$ 44,730	$ 160,250	$ 96,322
Common Class A
Other income (expense), net:
Net income per common share - basic	$ 6.61	$ 3.70	$ 13.05	$ 8.16
Weighted-average number of common shares - basic	9,846	9,136	9,663	8,797
Common Class B
Other income (expense), net:
Net income per common share - basic	$ 6.61	$ 3.70	$ 13.05	$ 8.16
Net income per common share - diluted	$ 6.51	$ 3.65	$ 12.90	$ 8.07
Weighted-average number of common shares - basic	2,308	2,862	2,451	2,899

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock Common Class A	Common Stock Common Class B	Additional Paid-in Capital	Accumulated Other Comprehensive (Loss) Income, net of tax	Retained Earnings
Balance at Dec. 29, 2018	$ 460,317	$ 86	$ 29	$ 405,711	$ (1,197)	$ 55,688
Balance (in shares) at Dec. 29, 2018		8,580,000	2,918,000
Net income	23,694					23,694
Stock options exercised and restricted shares activities (in shares)		54,000
Stock options exercised and restricted shares activities	3,704			3,704
Stock-based compensation expense	2,066			2,066
Currency translation adjustment	37				37
Balance at Mar. 30, 2019	489,818	$ 86	$ 29	411,481	(1,160)	79,382
Balance (in shares) at Mar. 30, 2019		8,634,000	2,918,000
Balance at Dec. 29, 2018	460,317	$ 86	$ 29	405,711	(1,197)	55,688
Balance (in shares) at Dec. 29, 2018		8,580,000	2,918,000
Net income	96,279
Currency translation adjustment	43
Balance at Sep. 28, 2019	718,980	$ 92	$ 28	568,047	(1,154)	151,967
Balance (in shares) at Sep. 28, 2019		9,216,000	2,818,000
Balance at Mar. 30, 2019	489,818	$ 86	$ 29	411,481	(1,160)	79,382
Balance (in shares) at Mar. 30, 2019		8,634,000	2,918,000
Net income	27,856					27,856
Stock options exercised and restricted shares activities (in shares)		21,000
Stock options exercised and restricted shares activities	1,378	$ 1		1,377
Stock-based compensation expense	3,744			3,744
Currency translation adjustment	5				5
Balance at Jun. 29, 2019	522,801	$ 87	$ 29	416,602	(1,155)	107,238
Balance (in shares) at Jun. 29, 2019		8,655,000	2,918,000
Net income	$ 44,729					44,729
Stock options exercised and restricted shares activities (in shares)	31,000
Stock options exercised and restricted shares activities	$ 3,473			3,473
Stock-based compensation expense	3,233			3,233
Shares issued in connection with Dogfish Head merger (in shares)		430,000
Shares issued in connection with Dogfish Head merger	144,743	$ 4		144,739
Conversion from Class B to Class A (in shares)		100,000	(100,000)
Conversion from Class B to Class A		$ 1	$ (1)
Currency translation adjustment	1				1
Balance at Sep. 28, 2019	718,980	$ 92	$ 28	568,047	(1,154)	151,967
Balance (in shares) at Sep. 28, 2019		9,216,000	2,818,000
Balance at Dec. 28, 2019	735,636	$ 94	$ 27	571,784	(1,669)	165,400
Balance (in shares) at Dec. 28, 2019		9,371,000	2,673,000
Net income	18,234					18,234
Stock options exercised and restricted shares activities (in shares)		38,000
Stock options exercised and restricted shares activities	1,858			1,858
Stock-based compensation expense	2,566			2,566
Conversion from Class B to Class A (in shares)		150,000	(150,000)
Conversion from Class B to Class A		$ 2	$ (2)
Currency translation adjustment	(58)				(58)
Balance at Mar. 28, 2020	758,236	$ 96	$ 25	576,208	(1,727)	183,634
Balance (in shares) at Mar. 28, 2020		9,559,000	2,523,000
Balance at Dec. 28, 2019	735,636	$ 94	$ 27	571,784	(1,669)	165,400
Balance (in shares) at Dec. 28, 2019		9,371,000	2,673,000
Net income	$ 159,143
Stock options exercised and restricted shares activities (in shares)	91,606
Defined benefit plans liability adjustment, net of tax	$ 1,117
Currency translation adjustment	(10)
Balance at Sep. 26, 2020	918,530	$ 99	$ 23	594,427	(562)	324,543
Balance (in shares) at Sep. 26, 2020		9,869,000	2,308,000
Balance at Mar. 28, 2020	758,236	$ 96	$ 25	576,208	(1,727)	183,634
Balance (in shares) at Mar. 28, 2020		9,559,000	2,523,000
Net income	60,141					60,141
Stock options exercised and restricted shares activities (in shares)		61,000
Stock options exercised and restricted shares activities	4,582			4,582
Stock-based compensation expense	4,537			4,537
Conversion from Class B to Class A (in shares)		215,000	(215,000)
Conversion from Class B to Class A		$ 2	$ (2)
Currency translation adjustment	(13)				(13)
Balance at Jun. 27, 2020	827,483	$ 98	$ 23	585,327	(1,740)	243,775
Balance (in shares) at Jun. 27, 2020		9,835,000	2,308,000
Net income	80,768					80,768
Stock options exercised and restricted shares activities (in shares)		34,000
Stock options exercised and restricted shares activities	5,469	$ 1		5,468
Stock-based compensation expense	3,632			3,632
Defined benefit plans liability adjustment, net of tax	1,117				1,117
Currency translation adjustment	61				61
Balance at Sep. 26, 2020	$ 918,530	$ 99	$ 23	$ 594,427	$ (562)	$ 324,543
Balance (in shares) at Sep. 26, 2020		9,869,000	2,308,000

Consolidated Statements of Stockholders' Equity (Parenthetical) $ in Thousands	3 Months Ended
	Sep. 26, 2020 USD ($)
Defined benefit plans liability adjustment, tax	$ 378

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 26, 2020	Sep. 28, 2019
Cash flows provided by operating activities:
Net income	$ 159,143	$ 96,279
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	48,937	41,841
Impairment of assets	2,796	243
(Gain) loss on disposal of property, plant and equipment	(173)	449
Change in ROU assets	5,465	2,734
Credit loss expense	746	53
Stock-based compensation expense	10,735	9,043
Deferred income taxes	14,160	14,047
Changes in operating assets and liabilities:
Accounts receivable	(39,775)	(26,532)
Inventories	(23,072)	(16,847)
Prepaid expenses, income tax receivable and other current assets	(4,043)	(1,173)
Other assets	(17,827)	(12,730)
Accounts payable	33,020	22,388
Accrued expenses and other current liabilities	18,024	14,949
Change in operating lease liability	(1,887)	(2,270)
Other liabilities	2,671	207
Net cash provided by operating activities	208,920	142,681
Cash flows used in investing activities:
Purchases of property, plant and equipment	(100,341)	(66,760)
Proceeds from disposal of property, plant and equipment	72	144
Investment in Dogfish Head, net of cash acquired	0	(165,517)
Other investing activities	392	(10)
Net cash used in investing activities	(99,877)	(232,143)
Cash flows provided by financing activities:
Proceeds from exercise of stock options and sale of investment shares	14,015	8,437
Cash paid on note payable and finance leases	(906)	(246)
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)
Net cash provided by (used in) financing activities	11,417	8,191
Change in cash and cash equivalents	120,460	(81,271)
Cash and cash equivalents at beginning of year	36,670	108,399
Cash and cash equivalents at end of period	157,130	27,128
Supplemental disclosure of cash flow information:
Non cash consideration issued in Dogfish Head Brewery Transaction (Refer to Note C)		144,743
Income taxes paid	17,309	16,759
Cash paid for amounts included in measurement of lease liabilities
Operating cash flows from operating leases	6,949	3,178
Operating cash flows from finance leases	106	258
Financing cash flows from finance leases	838	7
Right-of-use assets obtained in exchange for operating lease obligations	11,698	41,678
Right-of-use assets obtained in exchange for finance lease obligations	2,689	2,837
Interest paid on revolving credit facility	246	349
Change in purchase of property, plant and equipment in accounts payable and accrued expenses	$ (3,390)	$ (2,076)

Organization and Basis of Presentation

9 Months Ended

Sep. 26, 2020

Organization and Basis of Presentation

A. Organization and Basis of Presentation

The Boston Beer Company, Inc. and certain subsidiaries (the “Company”) are engaged in the

business of selling alcohol beverages throughout the United States and in selected international markets, under the trade names “The Boston Beer Company

”, “Hard Seltzer Beverage Company”, “Twisted Tea Brewing Company

”, “Angry Orchard

Cider Company”, “Dogfish Head

Craft Brewery”, “Angel City

Brewing Company”, “Concrete Beach Brewery

”, “Coney Island

Brewing Company” and “American Fermentation Company”.

The accompanying unaudited consolidated balance sheet as of September 26, 2020, and the

unaudited

consolidated statements of comprehensive income, stockholders’ equity, and cash flows for the interim periods ended September 26, 2020 and September 28, 2019 have been prepared by the Company in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and footnotes normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. All intercompany accounts and transactions have been eliminated. These consolidated financial statements should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form

10-K

for the year ended December 28, 2019.

In the opinion of the Company’s management, the Company’s unaudited consolidated balance sheet as of September 26, 2020 and the results of its consolidated operations, stockholders’ equity, and cash flows for the interim periods ended September 26, 2020 and September 28, 2019, reflect all adjustments (consisting only of normal and recurring adjustments) necessary to present fairly the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full year.

COVID-19 Pandemic

9 Months Ended

Sep. 26, 2020

COVID Nineteen Pandemic [Abstract]

COVID-19 Pandemic

COVID-19

Pandemic

The Company began seeing the impact of the

COVID-19

pandemic on its business in early March. 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. For the thirty-nine weeks ended September 26, 2020, the Company recorded

COVID-19

pre-tax

reductions in net revenue and increases in other costs that total $14.2 million of which $10.0 million was recorded in the first quarter, $4.1 million was recorded in the second quarter and $0.1 million was recorded in the third quarter. The total amount consists of a $3.4 million reduction in net revenue for estimated keg returns from distributors and retailers and $10.8 million for inventory write-downs for obsolescence, increased costs for health and safety, increased salaries and benefits and other

COVID-19

related direct costs, of which $7.4 million are recorded in cost of goods sold and $3.4 million are recorded in operating expenses. 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. While the duration of the disruption and related impact on the Company’s consolidated financial statements is currently uncertain, the Company expects to continue to incur increased costs related to health and safety for the foreseeable future.

Dogfish Head Brewery Transaction

9 Months Ended

Sep. 26, 2020

Business Combinations [Abstract]

Dogfish Head Brewery Transaction

C. Dogfish Head Brewery Transaction

On May 8, 2019, the Company entered into definitive agreements to acquire Dogfish Head Brewery (“Dogfish Head”) and various related operations (the “Transaction”) through the acquisition of all of the equity interests held by certain private entities in

Off-Centered

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 excess of the purchase price paid over the estimated fair values of the assets and liabilities assumed has been recorded as goodwill in the amount of $108.8 million. Goodwill associated with the acquisition is primarily attributable to the future growth opportunities associated with the Transaction, expected synergies and value of the workforce. The Company believes the majority of the goodwill is deductible for tax purposes.

The fair value of the brand trade name was determined utilizing the relief from royalty method which is a form of the income approach. Under this method, a royalty rate based on observed market royalties is applied to projected revenue supporting the trade name and discounted to present value using an appropriate discount rate. The fair value of the property, plant and equipment was determined utilizing the cost and market valuation approaches.

The results of operations from Dogfish Head have been included in the Company’s consolidated statements of comprehensive income since the July 3, 2019 Transaction closing date.

Consistent with prior periods and considering post-merger reporting structures, the Company will continue to report as one operating segment. The combined Company’s brands are predominantly beverages that are manufactured using similar production processes, have comparable alcohol content, generally fall under the same regulatory environment, and are sold to the same types of customers in similar size quantities at similar price points and through the same channels of distribution.

The following unaudited pro forma information has been prepared as if the Transaction and the related debt financing had occurred as of December 30, 2018, the first day of the Company’s 2019 fiscal year. The pro forma amounts reflect the combined historical operational results for Boston Beer and Dogfish Head, after giving effect to adjustments related to the impact of purchase accounting, transaction costs and financing. The unaudited pro forma financial information is not indicative of the operational results that would have been obtained had the Transaction occurred as of that date, nor is it necessarily indicative of the Company’s future operational results. The following adjustments have been made:

(i)

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.

(ii)

The tax effects of the pro forma adjustments at an estimated statutory rate of 25.6%.


	Thirteen weeks ended		Thirty-nine weeks ended
	September 28, 2019		September 28, 2019
	(in thousands)		(in thousands)
Net revenue	$	379,205	$	1,002,959
Net income	$	46,445	$	103,105
Basic earnings per share	$	3.84	$	8.74
Diluted earnings per share	$	3.79	$	8.64

Goodwill and Intangible Assets

9 Months Ended

Sep. 26, 2020

Goodwill and Intangible Assets

D. Goodwill and Intangible Assets

The Company’s intangible assets as of September 26, 2020 and December 28, 2019 were as follows:


			As of September 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	)
Custmer Relationships		15	$	3,800	$	(316	)	$	3,484		$	3,800	$	(127	)	$	3,673
Trade Names		Indefinite		100,510		—			100,510			100,599		—			100,599

Total intangible assets			$	104,310	$	(316	)	$	103,994		$	104,399	$	(127	)	$	104,272

As disclosed within Note C, the Company acquired intangible assets as part of the Dogfish Head transaction that

consist

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 and thirty-nine weeks ended September 26, 2020 was approximately $63,000 and $190,000, respectively. The Company expects to record amortization expense as follows over the remaining current year and the five subsequent years:


Fiscal Year	Amount (in thousands)
Remainder of 2020	$	63
2021		253
2022		253
2023		253
2024		253
2025		253

Recent Accounting Pronouncements

9 Months Ended

Sep. 26, 2020

Recent Accounting Pronouncements

E. Recent Accounting Pronouncements

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. The guidance requires companies to measure credit losses utilizing a methodology that reflects expected credit losses and requires the consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company adopted the standard in the first quarter of fiscal 2020 and there was no material impact.

In January 2017, the FASB issued ASU

No. 2017-04,

Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. Prior to ASU

No. 2017-04,

the goodwill impairment test is a

two-step

assessment, if indicators of impairment exist. The first step requires an entity to compare each reporting unit’s carrying value and its fair value. If the reporting unit’s carrying value exceeds the fair value, then the entity must perform the second step, which is to compare the implied fair value of goodwill to its carrying value, and record an impairment charge for any excess of carrying value of goodwill over its implied fair value. An entity also has the option to perform a qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. ASU

2017-04

simplifies the goodwill impairment test by eliminating the second step of the test. As such, an entity will perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize a goodwill impairment charge for the amount by which the reporting unit’s carrying amount exceeds its fair value. If fair value exceeds the carrying amount, no impairment should be recorded. ASU

2017-04

is effective prospectively for the year beginning December 29, 2019. The Company adopted the standard in the third quarter of 2020 during the annual goodwill impairment assessment and there was no material impact.

Accounting Pronouncements Not Yet Effective

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 is currently assessing the impact of adopting this standard but does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

- Definition

The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 65
-Paragraph 1
-Subparagraph (g)(2)
-URI http://asc.fasb.org/extlink&oid=113356391&loc=SL49131195-203048

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-URI http://asc.fasb.org/topic&trid=2122394

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 65
-Paragraph 1
-Subparagraph (i)
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+ Details

Revenue Recognition

9 Months Ended

Sep. 26, 2020

Revenue Recognition

F. Revenue Recognition

During the thirty-nine weeks ended September 26, 2020 and September 28, 2019 approximately 95% of the Company’s revenue was from shipments of its products to domestic distributors, 4% 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 September 26, 2020 and December 28, 2019, the Company has deferred $11.5 million and $7.0 million, respectively in revenue related to product shipped prior to these dates. These amounts are included in accrued expenses and other current liabilities in the accompanying consolidated balance sheets.

Customer promotional discount programs are entered into by the Company with distributors for certain periods of time. The reimbursements for discounts to distributors are recorded as reductions to net revenue and were $19.0 million and $47.6 million for the thirteen and thirty-nine weeks ended September 26, 2020, respectively. The reimbursements for discounts to Distributors are recorded as reductions to net revenue and were $14.8 million and $34.5 million for the thirteen and thirty-nine weeks ended September 28, 2019, 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 for the thirteen and thirty-nine weeks ended September 26, 2020 were $7.5 million and $16.9 million, respectively. For the thirteen and thirty-nine weeks ended September 26, 2020, the Company recorded certain of these costs in the total amount of $6.9 million and $15.9 million, respectively as reductions to net revenue. Amounts paid to customers in connection with these programs that were recorded as reductions to revenue for the thirteen and thirty-nine weeks ended September 28, 2019 were $7.8 million and $17.8 million, respectively. Amounts paid to customers in connection with these programs that were recorded as reductions to revenue for the thirteen and thirty-nine weeks ended September 2

, 2019 were $6.2 million and $13.0 million, respectively. 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.

The Further Consolidation Appropriations Act, 2020 extended reductions in federal excise taxes as a result of the Tax Cuts and Jobs Act of 2017 through December 31, 2020. The Company benefited from a reduction in federal excise taxes of $4.0 million and $2.8 million for the thirteen weeks ended September 26, 2020 and September 28, 2019, respectively. The Company benefited from a reduction in federal excise taxes of $9.8 million and $6.6 million for the thirty-nine weeks ended September 26, 2020 and September 28, 2019 respectively.

On March 31, 2020, The Alcohol and Tobacco Tax and Trade Bureaus (“TTB”) released TTB Industry Circular

2020-2,

which postponed all Federal excise tax payments for ninety days on sales of wine, beer and distilled spirits between March 1, 2020 and July 1, 2020. As a September 26, 2020, the Company had accrued federal excise taxes of $8.6 million in accrued expenses and other current liabilities,

which will be fully paid during the fourth quarter of 2020.

The Company believes distributor inventory as of September 26, 2020 averaged approximately 2 weeks on hand and was lower than prior year levels due to depletions outpacing supply constrained shipments. The Company expects wholesaler inventory levels in terms of weeks on hand to remain between 1 and 4 weeks for the

remainder

of the year.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Inventories

9 Months Ended

Sep. 26, 2020

Inventories

G. Inventories

Inventories consist of raw materials, work in process and finished goods. Raw materials, which principally consist of hops, flavorings, apple juice, other brewing materials and packaging, are stated at the lower of cost, determined on the

first-in,

first-out

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:


	September 26,		December 28,
	2020		2019
	(in thousands)
Current inventory:
Raw materials	$	61,705	$	61,522
Work in process		14,287		12,631
Finished goods		47,839		31,885

Total current inventory		123,831		106,038
Long term inventory		15,327		10,048

Total inventory	$	139,158	$	116,086

Leases

9 Months Ended

Sep. 26, 2020

Leases

H. Leases

The Company has various lease agreements in place for facilities and equipment. Terms of these leases include, in some instances, scheduled rent increases, renewals, purchase options and maintenance costs, and vary by lease. These lease obligations expire at various dates through 2034. As the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate based on information available at commencement to determine the present value of the lease payments. ROU assets and lease liabilities commencing after December 30, 2018 are recognized at commencement date based on the present value of lease payments over the lease term. Leases with an initial term of 12 months or less (“short-term leases”) are not recorded on the balance sheet and are recognized on a straight-line basis over the lease term. As of September 26, 2020, and December 28, 2019 total ROU assets and lease liabilities were as follows:


	Classification	Leases
		September 26, 2020		December 28, 2019

		(in thousands)
Right-of-use assets
Operating lease assets	Operating right-of-use assets	$	59,991	$	53,758
Finance lease assets	Property, plant and equipment, net		4,389		2,531

Lease Liabilities
Current
Operating lease liabilities	Current operating lease liabilities		7,735		5,168
Finance lease liabilities	Accrued expenses and other current liabilities		1,441		546
Non-current
Operating lease liabilities	Non-current operating lease liabilities		61,184		53,940
Finance lease liabilities	Other liabilities		2,997		2,042

The gross value and accumulated depreciation of ROU assets related to finance leases as of September 26, 2020 and December 28, 2019 were as follows:


	Finance Leases
	September 26,			December 28,
	2020			2019
	(in thousands)
Gross value	$	5,525		$	2,837
Accumulated amortization		(1,136	)		(306	)

Carrying value	$	4,389		$	2,531

Components of lease cost for the thirteen and thirty-nine weeks ended September 26, 2020 and September 28, 2019 were as follows:


	Lease Cost
	Thirteen weeks ended				Thirty-nine weeks ended
	September 26,		September 28,		September 26,		September 28,
	2020		2019		2020		2019
	(in thousands)				(in thousands)
Operating lease cost	$	2,425	$	1,375	$	7,277	$	3,680
Variable lease costs not included in liability		349		171		1,321		643
Finance lease cost:
Amortization of right-of-use asset		257		131		830		174
Interest on lease liabilities		31		206		106		258

Total finance lease cost	$	288	$	337	$	936	$	432

Maturities of lease liabilities as of September 26, 2020 were as follows:


	Operating Leases			Finance Leases			Weighted-Average Remaining Term in Years
	Operating Leases			Finance Leases			Operating Leases		Finance Leases
	(in thousands)
2020	$	2,464		$	391
2021		10,094			1,572
2022		9,908			1,572
2023		9,737			863
2024		9,470			265
Thereafter		39,523			22

Total lease payments		81,196			4,685
Less imputed interest (based on 3.5% weighted - average discount rate)		(12,277	)		(247	)

Present value of lease liability	$	68,919		$	4,438			9.0		3.1

Net Income per Share

9 Months Ended

Sep. 26, 2020

Net Income per Share

I. 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				Thirty-nine weeks ended
	September 26,		September 28,		September 26,		September 28,
	2020		2019		2020		2019
	(in thousands, except per share data)				(in thousands, except per share data)
Net income	$	80,768	$	44,729	$	159,143	$	96,279

Allocation of net income for basic:
Class A Common Stock	$	65,074	$	33,776	$	126,146	$	71,761
Class B Common Stock		15,254		10,581		31,996		23,652
Unvested participating shares		440		372		1,001		866

	$	80,768	$	44,729	$	159,143	$	96,279
Weighted average number of shares for basic:
Class A Common Stock		9,846		9,136		9,663		8,797
Class B Common Stock*		2,308		2,862		2,451		2,899
Unvested participating shares		67		101		77		106

		12,221		12,099		12,191		11,802
Net income per share for basic:
Class A Common Stock	$	6.61	$	3.70	$	13.05	$	8.16

Class B Common Stock	$	6.61	$	3.70	$	13.05	$	8.16

*Change in Class B Common Stock resulted from the conversion of 145,000 shares to Class A Common Stock on December 13, 2019, 150,000 shares to Class A Common Stock on March 11, 2020 and 215,000 shares to Class A Common Stock on May 6, 2020 with the ending number of shares reflecting the weighted average for the period.

Net Income per Common

Share—Diluted

The Company calculates diluted net income per share for common stock using the more dilutive of (1) the treasury stock method, or (2) the

two-class

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 and using the

two-class

method for unvested participating shares:


	Thirteen weeks ended
	September 26, 2020						September 28, 2019
	Earnings to Common Shareholders		Common Shares		EPS		Earnings to Common Shareholders		Common Shares		EPS
						(in thousands, except per share data)
As reported—basic	$	65,074		9,846	$	6.61	$	33,776		9,136	$	3.70
Add: effect of dilutive potential common shares
Share-based awards		—		179				—		152
Class B Common Stock		15,254		2,308				10,581		2,862
Net effect of unvested participating shares		6		—				4		—

Net income per common share—diluted	$	80,334		12,333	$	6.51	$	44,361		12,150	$	3.65


	Thirty-nine weeks ended
	September 26, 2020						September 28, 2019
	Earnings to Common Shareholders		Common Shares		EPS		Earnings to Common Shareholders		Common Shares		EPS
					(in thousands, except per share data)
As reported—basic	$	126,146		9,663	$	13.05	$	71,761		8,797	$	8.16
Add: effect of dilutive potential common shares
Share-based awards		—		145				—		127
Class B Common Stock		31,996		2,451				23,652		2,899
Net effect of unvested participating shares		12		—				8		—

Net income per common share—diluted	$	158,154		12,259	$	12.90	$	95,421		11,823	$	8.07

During the

thirteen

and thirty-nine weeks ended

September

26, 2020,

weighted

-average stock

options

to purchase approximately 0 and 1,000 shares of Class A Common Stock were outstanding but not included in computing dilutive income per common share because their effects were anti-dilutive. During the thirteen and thirty-nine weeks ended September 28, 2019, weighted-average stock options to purchase approximately 27,000 and 21,000 shares of Class A Common Stock were outstanding but not included in computing dilutive income per common share because their effects were anti-dilutive.

Comprehensive Income or Loss

9 Months Ended

Sep. 26, 2020

Comprehensive Income or Loss

J. Comprehensive Income or Loss

Comprehensive income or loss represents net income or loss, plus

defined benefit plans liability adjustment, net of tax effect and foreign currency translation adjustment. The Company incurred a $1.1 million settlement loss, net of tax, during the thirteen weeks ended September 26, 2020, as a result of terminating

defined benefit plan. See Note P for discussion of the defined benefit plan termination. The foreign currency translation adjustments for the interim period ended September 28, 2019 was not material.

Commitments and Contingencies

9 Months Ended

Sep. 26, 2020

Commitments and Contingencies

K. Commitments and Contingencies

Contract Obligations

As of September 26, 2020, projected cash outflows under

non-cancelable

contractual obligations are as f

llows:


	Commitments
	(in thousands)
Ingredients	$	130,933
Equipment and machinery		73,774
Brand support		62,496
Other		12,378

Total contractual obligations	$	279,581

The majority of these contract obligations are for the 2020 and 2021 fiscal years with the remainder extending no later than the 2026 fiscal year.

Currently, the Company brews and packages approximately

% 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 September 26, 2020, the Company had prepaid brewing service fees of $9.0 million in prepaid expenses and other current assets and $30.2 million in other assets, long-term. The Company plans to expense the total amount of $39.2 million over

contract periods ending December 31, 2024. The Company is also obligated to meet annual minimum volume commitments in conjunction with certain of its production arrangements and is subject to contractual shortfall fees if these annual minimum volume commitments are not met. At September 26, 2020, if volume for the remaining term of the production arrangements were zero, the contractual shortfall fees would total $60.9 million through December 31, 2024. 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.

Subsequent to September 26, 2020, the Company entered into a production arrangement with a third-party brewing company which includes

up-front

payments for capital improvements of $9.6 million and annual minimum volume commitments subject to contractual shortfall fees. The Company plans to expense the capital improvements amount of $9.6 million over the contract period ending December 31, 2026. At October 19, 2020, if volume for the remaining term of the production arrangement was zero, the contractual shortfall fees would total $10.3 million through December 31, 2026. As with its prior commitments noted above, 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.

The Company is in the process of assessing 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 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

9 Months Ended

Sep. 26, 2020

Income Taxes

L. Income Taxes

As of September 26, 2020 and December 28, 2019, the Company had approximately $0.8 million and $0.8 million, respectively, of unrecognized income tax benefits.

The Company’s practice is to classify interest and penalties related to

income

tax matters in income tax expense. As of September 26, 2020 and December 28, 2019, the Company had $0.2 million and $0.1 million, respectively, accrued for interest and penalties recorded in other liabilities.

The Internal Revenue Service completed an examination of the

Company’s

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

was

not under any income tax audits as of September 26, 2020.

The

Company is generally obligated to report changes in taxable income arising from federal income tax audits.

The following table provides a summary of the income tax provision for the thirteen and thirty-nine weeks ended September 26, 2020 and September 28, 2019:


	Thirteen weeks ended
	September 26,			September 28,
	2020			2019
	(in thousands)
Summary of income tax provision
Tax provision based on net income	$	26,325		$	16,047
Benefit of ASU 2016-09		(5,142	)		(1,842	)

Total income tax provision	$	21,183		$	14,205


	Thirty-nine weeks ended
	September 26,			September 28,
	2020			2019
	(in thousands)
Summary of income tax provision
Tax provision based on net income	$	52,029		$	34,455
Benefit of ASU 2016-09		(9,481	)		(3,870	)

Total income tax provision	$	42,548		$	30,585

The Company’s effective tax rate for the thirteen weeks ended September 26, 2020, decreased to 20.8% from 24.1% for the

thirteen

weeks ended September 28, 2019, primarily due to higher tax benefit from stock option activity recorded in accordance with ASU

2016-09.

The Company’s effective tax rate for the thirty-nine weeks ended September 26, 2020, decreased to 21.1% from 24.1% for the thirty-nine weeks ended September 28, 2019, also primarily due to higher tax benefit from stock option activity recorded in accordance with ASU

2016-09.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Revolving Line of Credit

9 Months Ended

Sep. 26, 2020

Revolving Line of Credit

M. Revolving Line of Credit

In March 2018, the Company amended its $150.0 million revolving line of credit facility to extend the scheduled expiration date to March 31, 2023. As of September 26, 2020, the Company was not in violation of any of its financial covenants to the lender under the credit facility and the entire balance of $150.0 million on the line of credit was available to the Company for future borrowing.

Fair Value Measures

9 Months Ended

Sep. 26, 2020

Fair Value Measures

N. Fair Value Measures

The Company defines fair value as the price that would be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1

measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

•

Level 1 — Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

•

Level 2 — Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability.

•

Level 3 — Level 3 inputs are unobservable inputs for the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date.

The Company’s money market funds are measured at fair value on a recurring basis (at least quarterly) and are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The money market funds are invested substantially in United States Treasury and government securities. The Company does not adjust the quoted market price for such financial instruments. Cash, receivables and payables are carried at their cost, which approximates fair value, because of their short-term nature.

At September 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 September 26, 2020 and December 28, 2019, the Company’s cash and cash equivalents balance was $157.1 million and $36.7 million, respectively, including money market funds amounting to $152.2 million and $29.5 million, respectively.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Common Stock and Share-Based Compensation

9 Months Ended

Sep. 26, 2020

Common Stock and Share-Based Compensation

O. Common Stock and Stock-Based Compensation

Option Activity

Information related to stock options under the Restated Employee Equity Incentive Plan and the Stock Option Plan for

Non-Employee

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 28, 2019		315,678		$	186.53
Granted		25,870			383.22
Forfeited		(2,595	)		241.84
Expired		—			—
Exercised		(91,606	)		137.55

Outstanding at September 26, 2020		247,347		$	224.66		6.08	$	161,050

Exercisable at September 26, 2020		59,138		$	196.52		5.05	$	40,170

Vested and expected to vest at September 26, 2020		223,104		$	223.63		6.04	$	145,495

Of the total options outstanding at September 26, 2020, 40,000 shares were performance-based options for which the performance criteria had yet to be achieved.

On January 31, 2020, the Company granted options to purchase an aggregate of 978 shares of the Company’s Class A Common Stock to the Company’s

newly appointed non-employee Director, of which all shares vest immediately.

These options have a weighted average fair value of $146.87 per share

On March 1, 2020, the Company granted

performance-based stock

options to purchase an aggregate of 14,962 shares of the Company’s Class A Common Stock with a weighted average fair value of $142.25

per share to senior management.

On March 2, 2020, the Company granted

performance-based stock

options to purchase an aggregate of 7,030 shares of the Company’s Class A Common Stock with a weighted average fair value of $142.23 per

share to the Company’s newly appointed Chief People Officer.

On May 14, 2020, the Company granted options to purchase an aggregate of 2,900 shares of the Company’s Class A Common Stock to the Company’s

non-employee

Directors. These options have a weighted average fair value of $198.14 per share. All of the options vested immediately on the date of the grant.

Weighted average assumptions used to estimate fair values of stock options on the date of grants are as follows:


		2020
Expected Volatility		32.6%
Risk-free interest rate		1.1%
Expected Dividends		0.0%
Exercise factor		2.1 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 28, 2019		122,142		$	213.52
Granted		42,455			349.95
Vested		(45,860	)		214.23
Forfeited		(4,488	)		236.78

Non-vested at September 26, 2020		114,249		$	263.02

Of the total shares outstanding at September 26, 2020, 3,000 shares were performance-based shares for which the performance criteria had yet to be achieved.

On March 1, 2020, the Company granted 15,011 shares of restricted stock units to certain officers, senior managers and key employees,

all

of which vest ratably over service periods of four years.

Additionally,

on March 1, 2020, the Company granted a combined 13,482 shares of restricted stock units to select senior management employees with various service and

performance-based

vesting conditions. On March 1, 2020, employees elected to purchase 9,127 shares under the Company’s investment

share program,

under which shares of the Company’s Class A Common Stock are sold to employees at a discount.

The

weighted average fair value of the restricted stock units and investment shares

was $370.79 and $169.43 per share, respectively.

On March 2, 2020, the Company granted its newly appointed Chief People Officer 2,696 shares of restricted stock units with a weighted-average fair value of $370.79 per share with service based vesting through 2024.

On July 28, 2020, the Company granted an officer 1,842 shares of restricted stock units with a weighted-average fair value of $814.19 per share with service based vesting in 2023. Also on July 28, 2020, the Company granted a senior manager 184 shares of restricted stock units with a weighted-average fair value of $814.19 per share with service based vesting through 2024.

On September 1, 2020, the Company granted a senior manager 113 shares of restricted stock units with a weighted-average fair value of $881.98 per share with service passed vesting through 2024.

Stock-Based Compensation

The following table provides information regarding stock-based compensation expense included in operating expenses in the accompanying consolidated statements of comprehensive income:


	Thirteen weeks ended				Thirty-nine weeks ended
	September 26, 2020		September 28, 2019		September 26, 2020		September 28, 2019
	(in thousands)				(in thousands)
Amounts included in advertising, promotional and selling expenses	$	1,203	$	1,180	$	3,054	$	2,778
Amounts included in general and administrative expenses		2,429		2,053		7,681		6,265

Total stock-based compensation expense	$	3,632	$	3,233	$	10,735	$	9,043

Employee Retirement Plans

9 Months Ended

Sep. 26, 2020

Employee Retirement Plans

P. Employee Retirement Plans

The Company has one company-sponsored defined benefit pension plan that covers certain of its union employees. It was established in 1991 and is open to all union employees who are covered by the Company’s collective bargaining agreement with Teamsters Local Union No. 1199 (“Local Union 1199”). As of December 28, 2019, the fair value of the plan assets was $3.9 million and the benefit obligation was $6.7 million. 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 the third quarter of 2020, the Company completed the termination of a portion of the plan and recorded an expense of $1.5 million as a result of the termination. In the fourth quarter of 2020

the Company expects to complete the termination of the plan and record an additional expense of approximately $1.1 million as a result

of the termination.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 55
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=118257860&loc=d3e4179-114921

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section S99
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=21916913&loc=d3e273930-122802

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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-URI http://asc.fasb.org/topic&trid=2235017

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

+ Details

Related Party Transactions

9 Months Ended

Sep. 26, 2020

Related Party Transactions

Q. Related Party Transactions

In connection with the Dogfish Head Transaction, 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 the thirteen and thirty-nine weeks ended September 26, 2020 was approximately $91,000 and $270,000, respectively. During the third quarter of 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.

Additionally, the Company incurred expenses of less than $10,000 to various other suppliers affiliated with the Dogfish Head founders.

Subsequent Events

9 Months Ended

Sep. 26, 2020

Subsequent Events

R. Subsequent Events

As disclosed in Note K, subsequent to September 26, 2020, the Company entered into a production agreement with a third-party brewing company.

The Company evaluated subsequent events occurring after the balance sheet date, September 26, 2020, and concluded that there were no other events of which management was aware that occurred after the balance sheet date that would require any adjustment to or disclosure in the accompanying consolidated financial statements.

Dogfish Head Brewery Transaction (Tables)

9 Months Ended

Sep. 26, 2020

Fair value of assets acquired and liabilities assumed

The following table summarizes the acquisition date fair value of the tangible assets, intangible assets, liabilities assumed, and related goodwill acquired from Dogfish Head, as well as the allocation of purchase price paid:


	Total (In Thousands)
Cash and cash equivalents	$	7,476
Accounts receivable		8,081
Inventories		9,286
Prepaid expenses and other current assets		847
Property, plant and equipment		106,964
Goodwill		108,846
Brand		98,500
Other intangible assets		3,800
Other assets		378

Total assets acquired		344,178
Accounts payable		3,861
Accrued expenses and other current liabilities		4,085
Deferred income taxes		18,437
Other liabilities		59

Total liabilities assumed		26,442

Net assets acquired	$	317,736

Cash consideration	$	172,993
Nominal value of equity issued		162,999
Fair Value reduction due to liquidity		(18,256	)

Estimated total purchase price	$	317,736

Unaudited proforma information


	Thirteen weeks ended		Thirty-nine weeks ended
	September 28, 2019		September 28, 2019
	(in thousands)		(in thousands)
Net revenue	$	379,205	$	1,002,959
Net income	$	46,445	$	103,105
Basic earnings per share	$	3.84	$	8.74
Diluted earnings per share	$	3.79	$	8.64

Goodwill and Intangible Assets - (Tables)

9 Months Ended

Sep. 26, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of intangible assets

The Company’s intangible assets as of September 26, 2020 and December 28, 2019 were as follows:


			As of September 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	)
Custmer Relationships		15	$	3,800	$	(316	)	$	3,484		$	3,800	$	(127	)	$	3,673
Trade Names		Indefinite		100,510		—			100,510			100,599		—			100,599

Total intangible assets			$	104,310	$	(316	)	$	103,994		$	104,399	$	(127	)	$	104,272

Schedule of amortization expense

. The Company expects to record amortization expense as follows over the remaining current year and the five subsequent years:


Fiscal Year	Amount (in thousands)
Remainder of 2020	$	63
2021		253
2022		253
2023		253
2024		253
2025		253

Inventories (Tables)

9 Months Ended

Sep. 26, 2020

Components of Inventories


	September 26,		December 28,
	2020		2019
	(in thousands)
Current inventory:
Raw materials	$	61,705	$	61,522
Work in process		14,287		12,631
Finished goods		47,839		31,885

Total current inventory		123,831		106,038
Long term inventory		15,327		10,048

Total inventory	$	139,158	$	116,086

Leases (Tables)

9 Months Ended

Sep. 26, 2020

Leases [Abstract]

ROU assets and lease liabilities

As of September 26, 2020, and December 28, 2019 total ROU assets and lease liabilities were as follows:


	Classification	Leases
		September 26, 2020		December 28, 2019

		(in thousands)
Right-of-use assets
Operating lease assets	Operating right-of-use assets	$	59,991	$	53,758
Finance lease assets	Property, plant and equipment, net		4,389		2,531

Lease Liabilities
Current
Operating lease liabilities	Current operating lease liabilities		7,735		5,168
Finance lease liabilities	Accrued expenses and other current liabilities		1,441		546
Non-current
Operating lease liabilities	Non-current operating lease liabilities		61,184		53,940
Finance lease liabilities	Other liabilities		2,997		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 September 26, 2020 and December 28, 2019 were as follows:


	Finance Leases
	September 26,			December 28,
	2020			2019
	(in thousands)
Gross value	$	5,525		$	2,837
Accumulated amortization		(1,136	)		(306	)

Carrying value	$	4,389		$	2,531

Components of lease cost

Components of lease cost for the thirteen and thirty-nine weeks ended September 26, 2020 and September 28, 2019 were as follows:


	Lease Cost
	Thirteen weeks ended				Thirty-nine weeks ended
	September 26,		September 28,		September 26,		September 28,
	2020		2019		2020		2019
	(in thousands)				(in thousands)
Operating lease cost	$	2,425	$	1,375	$	7,277	$	3,680
Variable lease costs not included in liability		349		171		1,321		643
Finance lease cost:
Amortization of right-of-use asset		257		131		830		174
Interest on lease liabilities		31		206		106		258

Total finance lease cost	$	288	$	337	$	936	$	432

Maturities of lease liabilities

Maturities of lease liabilities as of September 26, 2020 were as follows:


	Operating Leases			Finance Leases			Weighted-Average Remaining Term in Years
	Operating Leases			Finance Leases			Operating Leases		Finance Leases
	(in thousands)
2020	$	2,464		$	391
2021		10,094			1,572
2022		9,908			1,572
2023		9,737			863
2024		9,470			265
Thereafter		39,523			22

Total lease payments		81,196			4,685
Less imputed interest (based on 3.5% weighted - average discount rate)		(12,277	)		(247	)

Present value of lease liability	$	68,919		$	4,438			9.0		3.1

Net Income per Share (Tables)

9 Months Ended

Sep. 26, 2020

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				Thirty-nine weeks ended
	September 26,		September 28,		September 26,		September 28,
	2020		2019		2020		2019
	(in thousands, except per share data)				(in thousands, except per share data)
Net income	$	80,768	$	44,729	$	159,143	$	96,279

Allocation of net income for basic:
Class A Common Stock	$	65,074	$	33,776	$	126,146	$	71,761
Class B Common Stock		15,254		10,581		31,996		23,652
Unvested participating shares		440		372		1,001		866

	$	80,768	$	44,729	$	159,143	$	96,279
Weighted average number of shares for basic:
Class A Common Stock		9,846		9,136		9,663		8,797
Class B Common Stock*		2,308		2,862		2,451		2,899
Unvested participating shares		67		101		77		106

		12,221		12,099		12,191		11,802
Net income per share for basic:
Class A Common Stock	$	6.61	$	3.70	$	13.05	$	8.16

Class B Common Stock	$	6.61	$	3.70	$	13.05	$	8.16

Computation of Earnings Per Share, Diluted

The following table sets forth the computation of diluted net income per share, assuming the conversion of all Class B Common Stock into Class A Common Stock and using the

two-class

method for unvested participating shares:


	Thirteen weeks ended
	September 26, 2020						September 28, 2019
	Earnings to Common Shareholders		Common Shares		EPS		Earnings to Common Shareholders		Common Shares		EPS
						(in thousands, except per share data)
As reported—basic	$	65,074		9,846	$	6.61	$	33,776		9,136	$	3.70
Add: effect of dilutive potential common shares
Share-based awards		—		179				—		152
Class B Common Stock		15,254		2,308				10,581		2,862
Net effect of unvested participating shares		6		—				4		—

Net income per common share—diluted	$	80,334		12,333	$	6.51	$	44,361		12,150	$	3.65


	Thirty-nine weeks ended
	September 26, 2020						September 28, 2019
	Earnings to Common Shareholders		Common Shares		EPS		Earnings to Common Shareholders		Common Shares		EPS
					(in thousands, except per share data)
As reported—basic	$	126,146		9,663	$	13.05	$	71,761		8,797	$	8.16
Add: effect of dilutive potential common shares
Share-based awards		—		145				—		127
Class B Common Stock		31,996		2,451				23,652		2,899
Net effect of unvested participating shares		12		—				8		—

Net income per common share—diluted	$	158,154		12,259	$	12.90	$	95,421		11,823	$	8.07

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 26, 2020

Non-cancelable Contractual Obligations

As of September 26, 2020, projected cash outflows under

non-cancelable

contractual obligations are as f

llows:


	Commitments
	(in thousands)
Ingredients	$	130,933
Equipment and machinery		73,774
Brand support		62,496
Other		12,378

Total contractual obligations	$	279,581

Income Taxes (Tables)

9 Months Ended

Sep. 26, 2020

Significant Components of Provisions for Income Taxes

The following table provides a summary of the income tax provision for the thirteen and thirty-nine weeks ended September 26, 2020 and September 28, 2019:


	Thirteen weeks ended
	September 26,			September 28,
	2020			2019
	(in thousands)
Summary of income tax provision
Tax provision based on net income	$	26,325		$	16,047
Benefit of ASU 2016-09		(5,142	)		(1,842	)

Total income tax provision	$	21,183		$	14,205


	Thirty-nine weeks ended
	September 26,			September 28,
	2020			2019
	(in thousands)
Summary of income tax provision
Tax provision based on net income	$	52,029		$	34,455
Benefit of ASU 2016-09		(9,481	)		(3,870	)

Total income tax provision	$	42,548		$	30,585

Common Stock and Share-Based Compensation (Tables)

9 Months Ended

Sep. 26, 2020

Summary of Stock Options under Equity Plan and Non-Employee Director Plan

Information related to stock options under the Restated Employee Equity Incentive Plan and the Stock Option Plan for

Non-Employee

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 28, 2019		315,678		$	186.53
Granted		25,870			383.22
Forfeited		(2,595	)		241.84
Expired		—			—
Exercised		(91,606	)		137.55

Outstanding at September 26, 2020		247,347		$	224.66		6.08	$	161,050

Exercisable at September 26, 2020		59,138		$	196.52		5.05	$	40,170

Vested and expected to vest at September 26, 2020		223,104		$	223.63		6.04	$	145,495

Weighted Average Assumptions used to Estimate Fair Value of Stock Options

Weighted average assumptions used to estimate fair values of stock options on the date of grants are as follows:


		2020
Expected Volatility		32.6%
Risk-free interest rate		1.1%
Expected Dividends		0.0%
Exercise factor		2.1 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 28, 2019		122,142		$	213.52
Granted		42,455			349.95
Vested		(45,860	)		214.23
Forfeited		(4,488	)		236.78

Non-vested at September 26, 2020		114,249		$	263.02

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				Thirty-nine weeks ended
	September 26, 2020		September 28, 2019		September 26, 2020		September 28, 2019
	(in thousands)				(in thousands)
Amounts included in advertising, promotional and selling expenses	$	1,203	$	1,180	$	3,054	$	2,778
Amounts included in general and administrative expenses		2,429		2,053		7,681		6,265

Total stock-based compensation expense	$	3,632	$	3,233	$	10,735	$	9,043

COVID-19 Pandemic - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Sep. 28, 2019	Sep. 26, 2020	Sep. 28, 2019
Reductions in net revenue and increases in other costs
Net effect of COVID-19 on revenue, cost of goods sold and operating expense	$ 101,781			$ 59,836	$ 202,082	$ 127,210
Cost of goods sold	252,207			190,631	677,313	477,147
Operating expenses	138,804			$ 127,999	396,100	$ 344,167
COVID-19 Pandemic [Member]
Reductions in net revenue and increases in other costs
Net effect of COVID-19 on revenue, cost of goods sold and operating expense	$ 100	$ 4,100	$ 10,000		14,200
Reduction in net revenue					3,400
Other direct costs					10,800
Cost of goods sold					7,400
Operating expenses					$ 3,400

Dogfish Head Brewery Transaction - Additional Information (Detail) - USD ($) $ in Thousands		9 Months Ended
	Jul. 03, 2019	Sep. 26, 2020	Dec. 28, 2019	May 08, 2019
Excess of the purchase price paid over the estimated fair values of the assets and liabilities assumed		$ 112,529	$ 112,529
Dogfish Head Brewery [Member]
Business acquisition cash transferred	$ 173,000
Escrow Deposit				$ 158,400
Dogfish Head Brewery [Member]
Business combination consideration	336,000
Business acquisition cash transferred	172,993
Business acquisition value of shares issued	162,999
Fairvalue of trade name	98,500
Excess of the purchase price paid over the estimated fair values of the assets and liabilities assumed	108,846
Deferred tax liabilities assumed	18,437
Dogfish Head Brewery [Member] \| Interest Rate Adjustment [Member]
Interest expense rate		3.00%
Dogfish Head Brewery [Member] \| Income Tax Rate Adjustment [Member]
Statutory income tax rate		25.60%
Dogfish Head Brewery [Member] \| Customer Relationships [Member]
Estimated fair value	$ 3,800	$ 3,800
Estimated use full life	15 years
Dogfish Head Brewery [Member] \| Trade Names [Member]
Fairvalue of trade name	$ 98,500	$ 98,500
Restricted Common Class A [Member] \| Dogfish Head Brewery [Member]
Business acquisition value of shares issued	$ 163,000
Shares held under escrow deposit	127,146
Shares held under escrow deposit market Value	$ 48,300
Business acquisition Shares issued	429,291

Dogfish Head Brewery Transaction - Fair value of assets acquired and liabilities assumed (Detail) - USD ($) $ in Thousands	Jul. 03, 2019	Sep. 26, 2020	Dec. 28, 2019
Goodwill		$ 112,529	$ 112,529
Dogfish Head Brewery [Member]
Cash and cash equivalents	$ 7,476
Accounts receivable	8,081
Inventories	9,286
Prepaid expenses and other current assets	847
Property, plant and equipment	106,964
Goodwill	108,846
Brand	98,500
Other intangible assets	3,800
Other assets	378
Total assets acquired	344,178
Accounts payable	3,861
Accrued expenses and other current liabilities	4,085
Deferred income taxes	18,437
Other liabilities	59
Total liabilities assumed	26,442
Net assets acquired	317,736
Cash consideration	172,993
Nominal value of equity issued	162,999
Fair Value reduction due to liquidity	(18,256)
Estimated total purchase price	$ 317,736

Dogfish Head Brewery Transaction - Unaudited proforma information (Detail) - Line of Credit [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 28, 2019	Sep. 28, 2019
Net revenue	$ 379,205	$ 1,002,959
Net income	$ 46,445	$ 103,105
Basic earnings per share	$ 3.84	$ 8.74
Diluted earnings per share	$ 3.79	$ 8.64

Goodwill and Intangible Assets - Schedule of intangible assets (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 26, 2020	Dec. 28, 2019
Gross Carrying Value	$ 104,310	$ 104,399
Accumulated Amortization	(316)	(127)
Net Book Value	103,994	104,272
Trade Names
Gross Carrying Value	100,510	100,599
Net Book Value	$ 100,510	100,599
Customer Relationships
Estimated Useful Life	15 years
Gross Carrying Value	$ 3,800	3,800
Accumulated Amortization	(316)	(127)
Net Book Value	$ 3,484	$ 3,673

Goodwill and Intangible Assets - Schedule of amortization expense (Detail) $ in Thousands	Sep. 26, 2020 USD ($)
Remainder of 2020	$ 63
2021	253
2022	253
2023	253
2024	253
2025	$ 253

Goodwill and Intangible Assets - Additional Information (Detail) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 26, 2020	Sep. 26, 2020	Jul. 03, 2019
Customer Relationships
Useful life Of Finite Lived Intangibles		15 years
Dogfish Head Brewery [Member]
Business Combination Indefinite Lived Intangible Assets Assumed			$ 98,500,000
Dogfish Head Brewery [Member] \| Customer Relationships
Business Combination Finite Lived Intangible Assets Assumed	$ 3,800,000	$ 3,800,000	3,800,000
Useful life Of Finite Lived Intangibles		15 years
Intangible Assets Amortization	63,000	$ 190,000
Dogfish Head Brewery [Member] \| Trade Names
Business Combination Indefinite Lived Intangible Assets Assumed	$ 98,500,000	$ 98,500,000	$ 98,500,000

Revenue Recognition - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 26, 2020	Sep. 28, 2019	Sep. 26, 2020	Sep. 28, 2019	Dec. 28, 2019
Sales to domestic distributors as a percentage of total sales	95.00%	95.00%	95.00%	95.00%
Sales to foreign distributors as a percentage of total sales	4.00%	4.00%	4.00%	4.00%
Sales to retail locations as a percentage of total sales	1.00%	1.00%	1.00%	1.00%
Deferred revenue related to product shipped	$ 11.5		$ 11.5		$ 7.0
Reduction in federal excise taxes	4.0	$ 2.8	9.8	$ 6.6
Reimbursements for discounts to distributors	19.0	14.8	47.6	34.5
Accrued federal excise taxes, current	8.6		8.6
Distributors [Member]
Marketing and Advertising Expense	7.5	7.8	16.9	17.8
Reductions to net revenue	$ 6.9	$ 6.2	$ 15.9	$ 13.0

Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands	Sep. 26, 2020	Dec. 28, 2019
Current inventory:
Raw materials	$ 61,705	$ 61,522
Work in process	14,287	12,631
Finished goods	47,839	31,885
Total current inventory	123,831	106,038
Long term inventory	15,327	10,048
Total inventory	$ 139,158	$ 116,086

Leases - ROU assets and lease liabilities (Detail) - USD ($) $ in Thousands	Sep. 26, 2020	Dec. 28, 2019
Right-of-use assets
Operating lease assets	$ 59,991	$ 53,758
Finance lease assets	4,389	2,531
Current
Operating lease liabilities	7,735	5,168
Non-current
Operating lease liabilities	61,184	53,940
Operating Right Of Use Assets [Member]
Right-of-use assets
Operating lease assets	59,991	53,758
Property, Plant and Equipment [Member]
Right-of-use assets
Finance lease assets	4,389	2,531
Current Operating Lease Liabilities [Member]
Current
Operating lease liabilities	7,735	5,168
Accrued Expenses And Other Current Liabilities [Member]
Current
Finance lease liabilities	1,441	546
Non Current Operating Lease Liabilities [Member]
Non-current
Operating lease liabilities	61,184	53,940
Other Liabilities [Member]
Non-current
Finance lease liabilities	$ 2,997	$ 2,042

Leases - Gross Value of Accumulated Depreciation Of Right Of Use Assets (Details). - USD ($) $ in Thousands	Sep. 26, 2020	Dec. 28, 2019
Finance Lease, Gross value	$ 5,525	$ 2,837
Finance Lease, Accumulated amortization	(1,136)	(306)
Finance Lease, Carrying value	$ 4,389	$ 2,531

Leases - Components of lease cost (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 26, 2020	Sep. 28, 2019	Sep. 26, 2020	Sep. 28, 2019
Lease, Cost [Abstract]
Operating lease cost	$ 2,425	$ 1,375	$ 7,277	$ 3,680
Variable lease costs not included in liability	349	171	1,321	643
Finance lease cost:
Amortization of right-of-use asset	257	131	830	174
Interest on lease liabilities	31	206	106	258
Total finance lease cost	$ 288	$ 337	$ 936	$ 432

Leases - Maturities of lease liabilities (Detail) $ in Thousands	Sep. 26, 2020 USD ($)
Operating Leases
2020	$ 2,464
2021	10,094
2022	9,908
2023	9,737
2024	9,470
Thereafter	39,523
Total lease payments	81,196
Less imputed interest	(12,277)
Present value of lease liability	$ 68,919
Operating Lease, Weighted Average Discount Rate, Percent	3.50%
Operating Lease Weighted-Average Remaining Term
Lease Weighted Average Remaining Lease Term	9 years
Finance Lease Liabilities, Payments, Due
2020	$ 391
2021	1,572
2022	1,572
2023	863
2024	265
Thereafter	22
Total lease payments	4,685
Less imputed interest	(247)
Present value of lease liability	$ 4,438
Finance Lease, Weighted Average Remaining Lease Term	3 years 1 month 6 days
Finance Lease, Weighted Average Discount Rate, Percent	3.50%

Net Income per Share - Computation of Earnings Per Share, Basic (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Sep. 26, 2020	Sep. 28, 2019
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income	$ 80,768	$ 60,141	$ 18,234	$ 44,729	$ 27,856	$ 23,694	$ 159,143	$ 96,279
Allocation of net income for basic:
Allocation of net income for basic common stock	$ 80,768			$ 44,729			$ 159,143	$ 96,279
Weighted average number of shares for basic:
Weighted-average number of common shares — basic	12,221			12,099			12,191	11,802
Net income per share for basic:
Net income per common share — basic	$ 6.61			$ 3.70			$ 13.05	$ 8.16
Common Class A
Allocation of net income for basic:
Allocation of net income for basic common stock	$ 65,074			$ 33,776			$ 126,146	$ 71,761
Weighted average number of shares for basic:
Weighted-average number of common shares — basic	9,846			9,136			9,663	8,797
Net income per share for basic:
Net income per common share — basic	$ 6.61			$ 3.70			$ 13.05	$ 8.16
Common Class B
Allocation of net income for basic:
Allocation of net income for basic common stock	$ 15,254			$ 10,581			$ 31,996	$ 23,652
Weighted average number of shares for basic:
Weighted-average number of common shares — basic	2,308			2,862			2,451	2,899
Net income per share for basic:
Net income per common share — basic	$ 6.61			$ 3.70			$ 13.05	$ 8.16
Unvested participating shares
Allocation of net income for basic:
Allocation of net income for basic unvested participating shares	$ 440			$ 372			$ 1,001	$ 866
Weighted average number of shares for basic:
Weighted-average number of common shares — basic	67			101			77	106

Net Income per Share - Computation of Earnings Per Share, Basic (Parenthetical) (Detail) - shares	May 06, 2020	Mar. 11, 2020	Dec. 13, 2019
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Conversion of Class B Common Stock into Class A Common Stock	215,000	150,000	145,000

Net Income per Share - Computation of Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 26, 2020	Sep. 28, 2019	Sep. 26, 2020	Sep. 28, 2019
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]
Allocation of net income for basic common stock	$ 80,768	$ 44,729	$ 159,143	$ 96,279
Add: effect of dilutive potential common shares Share-based awards	179	152	145	127
Earnings to Common Shareholders, Net effect of unvested participating shares	$ 6	$ 4	$ 12	$ 8
Earnings to Common Shareholders, Net income per common share — diluted	$ 80,334	$ 44,361	$ 158,154	$ 95,421
Weighted-average number of common shares — basic	12,221	12,099	12,191	11,802
Weighted-average number of common shares — diluted	12,333	12,150	12,259	11,823
Net income per common share — basic	$ 6.61	$ 3.70	$ 13.05	$ 8.16
Net income per common share — diluted	$ 6.51	$ 3.65	$ 12.90	$ 8.07
Common Class A
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]
Allocation of net income for basic common stock	$ 65,074	$ 33,776	$ 126,146	$ 71,761
Weighted-average number of common shares — basic	9,846	9,136	9,663	8,797
Net income per common share — basic	$ 6.61	$ 3.70	$ 13.05	$ 8.16
Common Class B
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]
Allocation of net income for basic common stock	$ 15,254	$ 10,581	$ 31,996	$ 23,652
Class B Common Stock	2,308	2,862	2,451	2,899
Earnings to Common Shareholders, Class B Common Stock	$ 15,254	$ 10,581	$ 31,996	$ 23,652
Weighted-average number of common shares — basic	2,308	2,862	2,451	2,899
Net income per common share — basic	$ 6.61	$ 3.70	$ 13.05	$ 8.16
Net income per common share — diluted	$ 6.51	$ 3.65	$ 12.90	$ 8.07

Net Income per Share - Additional Information (Detail) - shares				3 Months Ended		9 Months Ended
	Mar. 01, 2020	Mar. 01, 2019	Jan. 01, 2019	Sep. 26, 2020	Sep. 28, 2019	Sep. 26, 2020	Sep. 28, 2019
Investment Share Program
Earnings Per Share Note [Line Items]
Vesting period						5 years
Investment Share Program \| Maximum
Earnings Per Share Note [Line Items]
Requirement tenure of employee for investment share program, purchase shares at discount						2 years
Discount from current market value						40.00%
Investment Share Program \| Minimum
Earnings Per Share Note [Line Items]
Requirement tenure of employee for investment share program, purchase shares at discount						1 year
Discount from current market value						20.00%
Restricted Stock Awards
Earnings Per Share Note [Line Items]
Vesting period	4 years	4 years	5 years
Common Class A
Earnings Per Share Note [Line Items]
Antidilutive securities excluded from computation of earnings per share				0	27,000	1,000	21,000

Comprehensive Income or Loss - Additional Information (Details) $ in Millions	9 Months Ended
	Sep. 26, 2020 USD ($)
Statement of Stockholders' Equity [Abstract]
Expenses on termination of defined benefit plan	$ 1.1

Commitments and Contingencies - Summary of Non-cancelable Contractual Obligations (Detail) $ in Thousands	Sep. 26, 2020 USD ($)
Long-term Purchase Commitment [Line Items]
Contractual obligations	$ 279,581
Equipment and machinery
Long-term Purchase Commitment [Line Items]
Contractual obligations	73,774
Ingredients
Long-term Purchase Commitment [Line Items]
Contractual obligations	130,933
Brand Support
Long-term Purchase Commitment [Line Items]
Contractual obligations	62,496
Other
Long-term Purchase Commitment [Line Items]
Contractual obligations	$ 12,378

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands	Oct. 19, 2020	Sep. 26, 2020	Jun. 27, 2020	Dec. 28, 2019
Commitments and Contingencies Disclosure [Line Items]
Prepaid brewing service fees current		$ 22,214		$ 12,077
Prepaid Expense, Current		30,200
Payments for Capital Improvements		9,600
Commitments [Member]
Commitments and Contingencies Disclosure [Line Items]
Estimated volume commitments contractual shortfall fees		60,900
Commitments [Member] \| Subsequent Event [Member]
Commitments and Contingencies Disclosure [Line Items]
Estimated volume commitments contractual shortfall fees	$ 10,300
Prepaid Brewing Fees
Commitments and Contingencies Disclosure [Line Items]
Prepaid brewing service fees current		9,000
Prepaid brewing service fees		$ 39,200
Minimum
Commitments and Contingencies Disclosure [Line Items]
Company's current brewing and packaging percentage			65.00%

Income Taxes - Summary of Income Tax Benefit (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 26, 2020	Sep. 28, 2019	Sep. 26, 2020	Sep. 28, 2019
Summary of income tax provision
Tax provision based on net income	$ 26,325	$ 16,047	$ 52,029	$ 34,455
Benefit of ASU 2016-09	(5,142)	(1,842)	(9,481)	(3,870)
Total income tax provision	$ 21,183	$ 14,205	$ 42,548	$ 30,585

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 26, 2020	Sep. 28, 2019	Sep. 26, 2020	Sep. 28, 2019	Dec. 28, 2019
Income Taxes [Line Items]
Accrued interest and penalties	$ 0.2		$ 0.2		$ 0.1
Unrecognized income tax benefits	$ 0.8		$ 0.8		$ 0.8
Effective Income Tax Rate Reconciliation, Percent, Total	20.80%	24.10%	21.10%	24.10%
State and Local Jurisdiction \| Minimum
Income Taxes [Line Items]
Income tax return examination period			0 years
State and Local Jurisdiction \| Maximum
Income Taxes [Line Items]
Income tax return examination period			4 years

Revolving Line of Credit - Additional Information (Detail) - Revolving Credit Facility - USD ($) $ in Millions	3 Months Ended
	Sep. 26, 2020	Mar. 28, 2020
Debt Instrument [Line Items]
Line of credit, current borrowing capacity		$ 150.0
Line of credit, expiration date	Mar. 31, 2023
Line of credit, unused balance	$ 150.0

Fair Value Measures - Additional Information (Detail) - USD ($) $ in Thousands	Sep. 26, 2020	Dec. 28, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 157,130	$ 36,670
Money market fund	$ 152,200	$ 29,500

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	9 Months Ended
	Sep. 28, 2019 shares	Sep. 26, 2020 USD ($) $ / shares shares
Shares
Outstanding at beginning of period \| shares		315,678
Granted \| shares		25,870
Forfeited \| shares		(2,595)
Expired \| shares		0
Exercised \| shares	(31,000)	(91,606)
Outstanding at end of period \| shares		247,347
Exercisable at end of period \| shares		59,138
Vested and expected to vest at end of period \| shares		223,104
Weighted-Average Exercise Price
Outstanding at beginning of period \| $ / shares		$ 186.53
Granted \| $ / shares		383.22
Forfeited \| $ / shares		241.84
Expired \| $ / shares		0
Exercised \| $ / shares		137.55
Outstanding at end of period \| $ / shares		224.66
Exercisable at end of period \| $ / shares		196.52
Vested and expected to vest at end of period \| $ / shares		$ 223.63
Weighted-Average Remaining Contractual Term
Outstanding at end of period		6 years 29 days
Exercisable at end of period		5 years 18 days
Vested and expected to vest at end of period		6 years 14 days
Aggregate Intrinsic Value
Outstanding at end of period \| $		$ 161,050
Exercisable at end of period \| $		40,170
Vested and expected to vest at end of period \| $		$ 145,495

Common Stock and Stock-Based Compensation - Summary Of Weighted Average Assumptions used to Estimate Fair Value of Stock Options (Detail)	9 Months Ended
	Sep. 26, 2020 Times
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	32.60%
Risk-free interest rate	1.10%
Expected dividends	0.00%
Exercise factor	2.1
Discount for post-vesting restrictions	0.00%

Common Stock and Stock-Based Compensation - Summary of Vesting Activities for Investment Share Program and Restricted Stock Awards (Detail) - $ / shares		9 Months Ended
	Jul. 28, 2020	Sep. 26, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-vested at beginning of period		122,142
Granted	184	42,455
Vested		(45,860)
Forfeited		(4,488)
Non-vested at end of period		114,249
Non-vested at beginning of period		$ 213.52
Granted	$ 814.19	349.95
Vested		214.23
Forfeited		236.78
Non-vested at end of period		$ 263.02

Common Stock and Share-Based Compensation - Additional Information (Detail) - $ / shares									9 Months Ended
	Sep. 01, 2020	Jul. 28, 2020	May 14, 2020	Mar. 02, 2020	Mar. 01, 2020	Jan. 31, 2020	Mar. 01, 2019	Jan. 01, 2019	Sep. 26, 2020	Jun. 27, 2020	Dec. 28, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting Year		2024
Other than options granted in period		184							42,455
Stock option outstanding									247,347		315,678
Weighted average fair value of stock awards		$ 814.19							$ 349.95
Vesting Year		2024
Performance-Based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option outstanding									3,000	40,000
Non-Employee Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted in period			2,900			978
Options granted in period - weighted average fair value			$ 198.14			$ 146.87
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period					4 years		4 years	5 years
Other than options granted in period					15,011
Weighted average fair value of stock awards					$ 370.79
Restricted Stock Awards \| Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting Year				2024
Other than options granted in period				2,696
Weighted average fair value of stock awards				$ 370.79
Vesting Year				2024
Employee Stock Compensation Plan \| Performance-Based Awards \| Senior Management
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted in period					14,962
Options granted in period - weighted average fair value					$ 142.25
Employee Stock Compensation Plan \| Performance-Based Awards \| Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted in period				7,030
Options granted in period - weighted average fair value				$ 142.23
Employee Stock Compensation Plan \| Investment Share Program
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares employees elected to purchase					9,127
Weighted average fair value of stock awards					$ 169.43
Restricted Stock And Performance Based Awards \| Senior Management
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Other than options granted in period					13,482
Service Based Restricted Stock Units [Member] \| Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting Year		2023
Other than options granted in period		1,842
Weighted average fair value of stock awards		$ 814.19
Vesting Year		2023
Service Based Restricted Stock Units [Member] \| Senior Manager [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting Year	2024
Other than options granted in period	113
Weighted average fair value of stock awards	$ 881.98
Vesting Year	2024

Common Stock and Share-Based Compensation - Stock-Based Compensation Expense Included in Operating Expenses (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 26, 2020	Sep. 28, 2019	Sep. 26, 2020	Sep. 28, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 3,632	$ 3,233	$ 10,735	$ 9,043
Advertising, promotional and selling expenses
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	1,203	1,180	3,054	2,778
General and administrative expenses
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 2,429	$ 2,053	$ 7,681	$ 6,265

Employee Retirement Plans - Additional Information (Detail) - USD ($) $ in Millions		3 Months Ended	9 Months Ended
	Apr. 30, 2019	Sep. 26, 2020	Sep. 26, 2020	Dec. 28, 2019
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Expenses on termination of defined benefit plan			$ 1.1
Pension Benefit Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets at end of fiscal year				$ 3.9
Benefit obligation at end of fiscal year				$ 6.7
Union Number 1199 Pension Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Estimated cost of termination of retirement pension plan	$ 1.1
SAMUnion Number1199 Pension Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Expenses on termination of defined benefit plan		$ 1.5

- Definition

Amount of asset segregated and restricted to provide benefit under defined benefit plan. Asset includes, but is not limited to, stock, bond, other investment, earning from investment, and contribution by employer and employee.

+ References + Details

Related Party Transactions - Additional Information (Detail)	3 Months Ended	9 Months Ended
	Sep. 26, 2020 USD ($)	Sep. 26, 2020 USD ($)
Related Party Transaction [Line Items]
Total payments due	$ 81,196,000	$ 81,196,000
Transaction with related party expenses		$ 10,000
Dogfish Head Brewery
Related Party Transaction [Line Items]
Lease term of contract	10 years	10 years
Total payments due	$ 3,600,000	$ 3,600,000
Related party expense	91,000	$ 270,000
Dogfish Head Brewery \| Sale Of Asset
Related Party Transaction [Line Items]
Related Party Transaction Amounts Of Transaction	$ 26,000