Kegs | 5 years | |||
Computer software and equipment | 2 to 5 years | |||
Office equipment and furniture | 3 to 7 years | |||
Machinery and plant equipment | 3 to 20 years, or the term of the production agreement, whichever is shorter | |||
Leasehold improvements | Lesser of the remaining term of the lease or estimated useful life of the asset | |||
Building and building improvements | 12 to 20 years, or the remaining useful life of the building, whichever is shorter |
December 29, 2018 | December 30, 2017 | |||||||
(in thousands) | ||||||||
Current inventory: | ||||||||
Raw materials | $ | 44,655 | $ | 33,086 | ||||
Work in process | 8,252 | 6,826 | ||||||
Finished goods | 17,342 | 10,739 | ||||||
Total current inventory | 70,249 | 50,651 | ||||||
Long term inventory | 11,619 | 9,905 | ||||||
Total inventory | $ | 81,868 | $ | 60,556 |
December 29, 2018 | December 30, 2017 | |||||||
(in thousands) | ||||||||
Prepaid equipment | $ | 3,789 | $ | — | ||||
Excise and other tax receivables | 2,179 | 1,651 | ||||||
Prepaid malt and barley | 1,629 | 1,819 | ||||||
Prepaid advertising, promotional and selling | 1,518 | 3,328 | ||||||
Prepaid insurance | 1,111 | 1,055 | ||||||
Prepaid compensation | 1,000 | — | ||||||
Prepaid software expense | 754 | — | ||||||
Supplier and vendor rebates | 265 | 1,464 | ||||||
Other | 891 | 1,378 | ||||||
$ | 13,136 | $ | 10,695 |
December 29, 2018 | December 30, 2017 | |||||||
(in thousands) | ||||||||
Employee wages, benefits and reimbursements | $ | 27,074 | $ | 16,275 | ||||
Accrued deposits | 18,171 | 14,224 | ||||||
Advertising, promotional and selling expenses | 9,079 | 13,605 | ||||||
Deferred revenue | 4,587 | 5,472 | ||||||
Accrued excise taxes | 2,335 | 2,015 | ||||||
Accrued stale beer | 2,146 | 3,023 | ||||||
Accrued sales and use tax | 1,914 | 1,873 | ||||||
Accrued freight | 1,668 | 1,518 | ||||||
Other accrued liabilities | 6,438 | 5,612 | ||||||
$ | 73,412 | $ | 63,617 |
December 29, 2018 | December 30, 2017 | |||||||
(in thousands) | ||||||||
Employee wages, benefits and reimbursements | $ | 27,074 | $ | 16,275 | ||||
Accrued deposits | 18,171 | 14,224 | ||||||
Advertising, promotional and selling expenses | 9,079 | 13,605 | ||||||
Deferred revenue | 4,587 | 5,472 | ||||||
Accrued excise taxes | 2,335 | 2,015 | ||||||
Accrued stale beer | 2,146 | 3,023 | ||||||
Accrued sales and use tax | 1,914 | 1,873 | ||||||
Accrued freight | 1,668 | 1,518 | ||||||
Other accrued liabilities | 6,438 | 5,612 | ||||||
$ | 73,412 | $ | 63,617 |
2018 | 2017 | 2016 | ||||||||||
(in thousands) | ||||||||||||
Current: | ||||||||||||
Federal | $ | 4,471 | $ | 34,255 | $ | 35,390 | ||||||
State | 4,894 | 5,225 | 6,108 | |||||||||
Total current | 9,365 | 39,480 | 41,498 | |||||||||
Deferred: | ||||||||||||
Federal | 12,860 | (22,489 | ) | 7,666 | ||||||||
State | 1,398 | 102 | 608 | |||||||||
Total deferred | 14,258 | (22,387 | ) | 8,274 | ||||||||
Total provision for income taxes | $ | 23,623 | $ | 17,093 | $ | 49,772 |
2018 | 2017 | 2016 | ||||||||||
Statutory rate | 21.0 | % | 35.0 | % | 35.0 | % | ||||||
State income taxes, net of federal benefit | 4.6 | 3.6 | 3.6 | |||||||||
Deduction relating to U.S. production activities | — | (3.2 | ) | (2.6 | ) | |||||||
Deduction relating to excess stock based compensation | (3.6 | ) | (3.7 | ) | — | |||||||
Change relating to enacted Tax Cuts and Jobs Act | — | (17.5 | ) | — | ||||||||
Non- deductable meals & entertainment | 1.1 | 0.9 | 0.9 | |||||||||
Accounting method changes | (3.9 | ) | — | — | ||||||||
Change in valuation allowance | 0.7 | — | (0.3 | ) | ||||||||
Other | 0.4 | (0.4 | ) | (0.3 | ) | |||||||
20.3 | % | 14.7 | % | 36.3 | % |
December 29, 2018 | December 30, 2017 | |||||||
(in thousands) | ||||||||
Deferred tax assets: | ||||||||
Accrued expenses | $ | 1,913 | $ | 2,484 | ||||
Stock-based compensation expense | 5,156 | 4,175 | ||||||
Inventory | 1,356 | 435 | ||||||
Other | 2,478 | 2,598 | ||||||
Total deferred tax assets | 10,903 | 9,692 | ||||||
Valuation allowance | (1,291 | ) | (439 | ) | ||||
Total deferred tax assets net of valuation allowance | 9,612 | 9,253 | ||||||
Deferred tax liabilities: | ||||||||
Property, plant and equipment | (57,099 | ) | (42,076 | ) | ||||
Prepaid expenses | (949 | ) | (1,341 | ) | ||||
Goodwill | (733 | ) | (655 | ) | ||||
Total deferred tax liabilities | (58,781 | ) | (44,072 | ) | ||||
Net deferred tax liabilities | $ | (49,169 | ) | $ | (34,819 | ) |
2018 | 2017 | |||||||
(in thousands) | ||||||||
Balance at beginning of year | $ | 292 | $ | 589 | ||||
Increases related to current year tax positions | 8 | 64 | ||||||
(Decreases) Increases related to prior year tax positions | 636 | (259 | ) | |||||
Decreases related to settlements | (100 | ) | (62 | ) | ||||
Decreases related to lapse of statute of limitations | — | (40 | ) | |||||
Balance at end of year | $ | 836 | $ | 292 |
2018 | 2017 | 2016 | ||||||||||
Statutory rate | 21.0 | % | 35.0 | % | 35.0 | % | ||||||
State income taxes, net of federal benefit | 4.6 | 3.6 | 3.6 | |||||||||
Deduction relating to U.S. production activities | — | (3.2 | ) | (2.6 | ) | |||||||
Deduction relating to excess stock based compensation | (3.6 | ) | (3.7 | ) | — | |||||||
Change relating to enacted Tax Cuts and Jobs Act | — | (17.5 | ) | — | ||||||||
Non- deductable meals & entertainment | 1.1 | 0.9 | 0.9 | |||||||||
Accounting method changes | (3.9 | ) | — | — | ||||||||
Change in valuation allowance | 0.7 | — | (0.3 | ) | ||||||||
Other | 0.4 | (0.4 | ) | (0.3 | ) | |||||||
20.3 | % | 14.7 | % | 36.3 | % |
December 29, 2018 | December 30, 2017 | |||||||
(in thousands) | ||||||||
Deferred tax assets: | ||||||||
Accrued expenses | $ | 1,913 | $ | 2,484 | ||||
Stock-based compensation expense | 5,156 | 4,175 | ||||||
Inventory | 1,356 | 435 | ||||||
Other | 2,478 | 2,598 | ||||||
Total deferred tax assets | 10,903 | 9,692 | ||||||
Valuation allowance | (1,291 | ) | (439 | ) | ||||
Total deferred tax assets net of valuation allowance | 9,612 | 9,253 | ||||||
Deferred tax liabilities: | ||||||||
Property, plant and equipment | (57,099 | ) | (42,076 | ) | ||||
Prepaid expenses | (949 | ) | (1,341 | ) | ||||
Goodwill | (733 | ) | (655 | ) | ||||
Total deferred tax liabilities | (58,781 | ) | (44,072 | ) | ||||
Net deferred tax liabilities | $ | (49,169 | ) | $ | (34,819 | ) |
2018 | 2017 | |||||||
(in thousands) | ||||||||
Balance at beginning of year | $ | 292 | $ | 589 | ||||
Increases related to current year tax positions | 8 | 64 | ||||||
(Decreases) Increases related to prior year tax positions | 636 | (259 | ) | |||||
Decreases related to settlements | (100 | ) | (62 | ) | ||||
Decreases related to lapse of statute of limitations | — | (40 | ) | |||||
Balance at end of year | $ | 836 | $ | 292 |
Payments Due by Period | ||||||||||||||||||||||||||||
Total | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Brand support | 63,728 | $ | 37,553 | $ | 5,041 | $ | 4,335 | $ | 4,200 | $ | 4,200 | $ | 8,399 | |||||||||||||||
Hops, barley and wheat | 61,065 | 35,019 | 8,855 | 6,444 | 4,575 | 2,343 | 3,829 | |||||||||||||||||||||
Apples and other ingredients | 33,028 | 33,028 | — | — | — | — | — | |||||||||||||||||||||
Equipment and machinery | 28,403 | 28,403 | — | — | — | — | — | |||||||||||||||||||||
Operating leases | 26,159 | 4,446 | 4,530 | 4,370 | 3,559 | 1,672 | 7,582 | |||||||||||||||||||||
Other | 14,437 | 10,089 | 2,499 | 1,424 | 300 | 125 | — | |||||||||||||||||||||
Total contractual obligations | $ | 226,820 | $ | 148,538 | $ | 20,925 | $ | 16,573 | $ | 12,634 | $ | 8,340 | $ | 19,810 |
| • | 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. |
Weighted- | Weighted-Average | Aggregate | ||||||||||||||
Average | Remaining | Intrinsic | ||||||||||||||
Exercise | Contractual Term | Value | ||||||||||||||
Shares | Price | in Years | (in thousands) | |||||||||||||
Outstanding at December 30, 2017 | 1,156,997 | $ | 158.53 | |||||||||||||
Granted | 32,570 | 210.24 | ||||||||||||||
Forfeited | (613,630 | ) | 199.94 | |||||||||||||
Expired | (2,654 | ) | 289.54 | |||||||||||||
Exercised | (206,454 | ) | 106.79 | |||||||||||||
Outstanding at December 29, 2018 | 366,829 | $ | 155.75 | 5.52 | $ | 30,588 | ||||||||||
Exercisable at December 29, 2018 | 143,437 | $ | 112.90 | 3.53 | $ | 18,177 | ||||||||||
Vested and expected to vest at December 29, 2018 | 344,111 | $ | 153.42 | 5.44 | $ | 29,503 |
2018 | 2017 | 2016 | ||||||||||
(in thousands) | ||||||||||||
Amounts included in advertising, promotional and selling expenses | $ | 3,243 | $ | 2,868 | $ | 2,507 | ||||||
Amounts included in general and administrative expenses | 6,792 | 3,448 | 3,641 | |||||||||
Total stock-based compensation expense | $ | 10,035 | $ | 6,316 | $ | 6,148 | ||||||
Amounts related to performance-based stock awards included in total stock-based compensation expense | $ | 1,750 | $ | 36 | $ | 203 |
2018 | 2017 | 2016 | ||||||||||
Expected volatility | 34.0 | % | 36.2 | % | 34.0 | % | ||||||
Risk-free interest rate | 2.68 | % | 2.30 | % | 2.16 | % | ||||||
Expected dividends | 0 | % | 0 | % | 0 | % | ||||||
Exercise factor | 2.52 times | 3.63 times | 2.68 times | |||||||||
Discount for post-vesting restrictions | 0.0 | % | 0.0 | % | 0.0 | % |
2019 | $ | 9,172 | ||
2020 | 7,856 | |||
2021 | 5,488 | |||
2022 | 3,033 | |||
2023 | 888 | |||
Thereafter | 196 | |||
Total | $ | 26,633 |
Weighted | ||||||||
Number of | Average | |||||||
Shares | Fair Value | |||||||
Non-vested at December 30, 2017 | 62,405 | $ | 155.21 | |||||
Granted | 92,775 | 207.56 | ||||||
Vested | (20,678 | ) | 156.50 | |||||
Forfeited | (7,782 | ) | 164.82 | |||||
Non-vested at December 29, 2018 | 126,720 | $ | 192.74 |
Aggregate | ||||||||
Number of | Purchase | |||||||
Shares | Price | |||||||
(in thousands) | ||||||||
Repurchased at December 26, 2015 | 11,538,680 | $ | 446,092 | |||||
2016 repurchases | 944,876 | 161,658 | ||||||
Repurchased at December 31, 2016 | 12,483,556 | 607,750 | ||||||
2017 repurchases | 963,790 | 144,602 | ||||||
Repurchased at December 30, 2017 | 13,447,346 | 752,352 | ||||||
2018 repurchases | 349,691 | 88,312 | ||||||
Repurchased at December 29, 2018 | 13,797,037 | 840,664 |
2018 | 2017 | 2016 | ||||||||||
(in thousands) | ||||||||||||
Amounts included in advertising, promotional and selling expenses | $ | 3,243 | $ | 2,868 | $ | 2,507 | ||||||
Amounts included in general and administrative expenses | 6,792 | 3,448 | 3,641 | |||||||||
Total stock-based compensation expense | $ | 10,035 | $ | 6,316 | $ | 6,148 | ||||||
Amounts related to performance-based stock awards included in total stock-based compensation expense | $ | 1,750 | $ | 36 | $ | 203 |
2018 | 2017 | 2016 | ||||||||||
Expected volatility | 34.0 | % | 36.2 | % | 34.0 | % | ||||||
Risk-free interest rate | 2.68 | % | 2.30 | % | 2.16 | % | ||||||
Expected dividends | 0 | % | 0 | % | 0 | % | ||||||
Exercise factor | 2.52 times | 3.63 times | 2.68 times | |||||||||
Discount for post-vesting restrictions | 0.0 | % | 0.0 | % | 0.0 | % |
Weighted | ||||||||
Number of | Average | |||||||
Shares | Fair Value | |||||||
Non-vested at December 30, 2017 | 62,405 | $ | 155.21 | |||||
Granted | 92,775 | 207.56 | ||||||
Vested | (20,678 | ) | 156.50 | |||||
Forfeited | (7,782 | ) | 164.82 | |||||
Non-vested at December 29, 2018 | 126,720 | $ | 192.74 |
Local 1199 Pension Plan | Retiree Medical Plan | |||||||||||||||
December 29, | December 30, | December 29, | December 30, | |||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(in thousands) | ||||||||||||||||
Fair value of plan assets at end of fiscal year | $ | 3,322 | $ | 3,330 | $ | — | $ | — | ||||||||
Benefit obligation at end of fiscal year | 5,357 | 5,572 | 731 | 799 | ||||||||||||
Unfunded Status | $ | (2,035 | ) | $ | (2,242 | ) | $ | (731 | ) | $ | (799 | ) |
December 29, | December 30, | |||||||
A sse t Category | 2018 | 2017 | ||||||
Equity securities | 61 | % | 67 | % | ||||
Debt securities | 39 | % | 33 | % | ||||
Total | 100 | % | 100 | % |
Local 1199 Pension Plan | Retiree Medical Plan | |||||||||||||||
December 29, | December 30, | December 29, | December 30, | |||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(in thousands) | ||||||||||||||||
Fair value of plan assets at end of fiscal year | $ | 3,322 | $ | 3,330 | $ | — | $ | — | ||||||||
Benefit obligation at end of fiscal year | 5,357 | 5,572 | 731 | 799 | ||||||||||||
Unfunded Status | $ | (2,035 | ) | $ | (2,242 | ) | $ | (731 | ) | $ | (799 | ) |
December 29, | December 30, | |||||||
A sse t Category | 2018 | 2017 | ||||||
Equity securities | 61 | % | 67 | % | ||||
Debt securities | 39 | % | 33 | % | ||||
Total | 100 | % | 100 | % |
For Quarters Ended | ||||||||||||||||||||||||||||||||
December 29, 2018 | September 29, 2018 (2) | June 30, 2018 | March 31, 2018 | December 30, 2017 (1) | September 30, 2017 | July 1, 2017 | April 1, 2017 | |||||||||||||||||||||||||
(13 weeks) | (13 weeks) | (13 weeks) | (13 weeks) | (13 weeks) | (13 weeks) | (13 weeks) | (13 weeks) | |||||||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||||||||||||||
Net revenue | $ | 225,222 | $ | 306,870 | $ | 273,100 | $ | 190,457 | $ | 206,320 | $ | 247,047 | $ | 247,930 | $ | 161,695 | ||||||||||||||||
Gross profit | 116,949 | 157,227 | 141,970 | 96,097 | 108,037 | 131,501 | 134,019 | 76,344 | ||||||||||||||||||||||||
Operating income | 28,851 | 46,728 | 31,064 | 9,238 | 14,863 | 51,496 | 45,288 | 4,028 | ||||||||||||||||||||||||
Net income | $ | 21,811 | $ | 38,007 | $ | 23,535 | $ | 9,310 | $ | 30,530 | $ | 33,683 | $ | 29,125 | $ | 5,711 | ||||||||||||||||
Net income per share — basic | $ | 1.88 | $ | 3.25 | $ | 1.99 | $ | 0.79 | $ | 2.60 | $ | 2.82 | $ | 2.38 | $ | 0.46 | ||||||||||||||||
Net income per share — diluted | $ | 1.86 | $ | 3.21 | $ | 1.98 | $ | 0.78 | $ | 2.57 | $ | 2.78 | $ | 2.35 | $ | 0.45 |
| (1) | During the fourth quarter of 2017, the Company recorded a $20.3 million tax benefit due to the Tax Cuts and Jobs Act of 2017. |
| (2) | During the third quarter of 2018, the Company recorded a $4.5 million tax benefit related to tax accounting method changes. |
December 29, 2018 | December 30, 2017 | December 31, 2016 (53 weeks) | ||||||||||
(in thousands, except per share data) | ||||||||||||
Net Income | $ | 92,663 | $ | 99,049 | $ | 87,349 | ||||||
Allocation of net income for basic: | ||||||||||||
Class A Common Stock | $ | 68,080 | $ | 73,114 | $ | 63,717 | ||||||
Class B Common Stock | 23,710 | 25,391 | 23,190 | |||||||||
Unvested participating shares | 873 | 544 | 442 | |||||||||
$ | 92,663 | $ | 99,049 | $ | 87,349 | |||||||
Weighted average number of shares for basic: | ||||||||||||
Class A Common Stock | 8,620 | 8,933 | 9,189 | |||||||||
Class B Common Stock* | 3,002 | 3,102 | 3,344 | |||||||||
Unvested participating shares | 111 | 67 | 64 | |||||||||
11,733 | 12,102 | 12,597 | ||||||||||
Net income per share for basic: | ||||||||||||
Class A Common Stock | $ | 7.90 | $ | 8.18 | $ | 6.93 | ||||||
Class B Common Stock | $ | 7.90 | $ | 8.18 | $ | 6.93 |
| * | Change in Class B Common Stock resulted from the conversion of 100,000 shares to Class A Common Stock on March 7, 2017, 79,000 shares to Class A Common Stock on October 31, 2017, and 100,000 shares to Class A Common Stock on November 1, 2018 with the ending number of shares reflecting the weighted average for the period. |
Fifty-two weeks ended December 29, 2018 | ||||||||||||
Earnings to Common Shareholders | Common Shares | EPS | ||||||||||
(in thousands, except per share data) | ||||||||||||
As reported — basic | $ | 68,080 | 8,620 | $ | 7.90 | |||||||
Add: effect of dilutive potential common shares Share-based awards | — | 112 | ||||||||||
Class B Common Stock | 23,710 | 3,002 | ||||||||||
Net effect of unvested participating shares | 8 | — | ||||||||||
Net income per common share — diluted | $ | 91,798 | 11,734 | $ | 7.82 |
Fifty-two weeks ended December 30, 2017 | ||||||||||||
Earnings to Common Shareholders | Common Shares | EPS | ||||||||||
(in thousands, except per share data) | ||||||||||||
As reported — basic | $ | 73,114 | 8,933 | $ | 8.18 | |||||||
Add: effect of dilutive potential common shares Share-based awards | — | 145 | ||||||||||
Class B Common Stock | 25,391 | 3,102 | ||||||||||
Net effect of unvested participating shares | 7 | — | ||||||||||
Net income per common share — diluted | $ | 98,512 | 12,180 | $ | 8.09 |
Fifty-three weeks ended December 31, 2016 | ||||||||||||
Earnings to Common Shareholders | Common Shares | EPS | ||||||||||
(in thousands, except per share data) | ||||||||||||
As reported — basic | $ | 63,717 | 9,189 | $ | 6.93 | |||||||
Add: effect of dilutive potential common shares Share-based awards | — | 263 | ||||||||||
Class B Common Stock | 23,190 | 3,344 | ||||||||||
Net effect of unvested participating shares | 9 | — | ||||||||||
Net income per common share — diluted | $ | 86,916 | 12,796 | $ | 6.79 |
Fifty-two weeks ended December 29, 2018 | ||||||||||||
Earnings to Common Shareholders | Common Shares | EPS | ||||||||||
(in thousands, except per share data) | ||||||||||||
As reported — basic | $ | 68,080 | 8,620 | $ | 7.90 | |||||||
Add: effect of dilutive potential common shares Share-based awards | — | 112 | ||||||||||
Class B Common Stock | 23,710 | 3,002 | ||||||||||
Net effect of unvested participating shares | 8 | — | ||||||||||
Net income per common share — diluted | $ | 91,798 | 11,734 | $ | 7.82 |
Fifty-two weeks ended December 30, 2017 | ||||||||||||
Earnings to Common Shareholders | Common Shares | EPS | ||||||||||
(in thousands, except per share data) | ||||||||||||
As reported — basic | $ | 73,114 | 8,933 | $ | 8.18 | |||||||
Add: effect of dilutive potential common shares Share-based awards | — | 145 | ||||||||||
Class B Common Stock | 25,391 | 3,102 | ||||||||||
Net effect of unvested participating shares | 7 | — | ||||||||||
Net income per common share — diluted | $ | 98,512 | 12,180 | $ | 8.09 |
Fifty-three weeks ended December 31, 2016 | ||||||||||||
Earnings to Common Shareholders | Common Shares | EPS | ||||||||||
(in thousands, except per share data) | ||||||||||||
As reported — basic | $ | 63,717 | 9,189 | $ | 6.93 | |||||||
Add: effect of dilutive potential common shares Share-based awards | — | 263 | ||||||||||
Class B Common Stock | 23,190 | 3,344 | ||||||||||
Net effect of unvested participating shares | 9 | — | ||||||||||
Net income per common share — diluted | $ | 86,916 | 12,796 | $ | 6.79 |
December 29, 2018 | December 30, 2017 | |||||||
(in thousands) | ||||||||
Current inventory: | ||||||||
Raw materials | $ | 44,655 | $ | 33,086 | ||||
Work in process | 8,252 | 6,826 | ||||||
Finished goods | 17,342 | 10,739 | ||||||
Total current inventory | 70,249 | 50,651 | ||||||
Long term inventory | 11,619 | 9,905 | ||||||
Total inventory | $ | 81,868 | $ | 60,556 |
December 29, 2018 | December 30, 2017 | ||||
(in thousands) | |||||
Machinery and plant equipment | $ | 476,174 | $ | 438,925 | |
Kegs | 67,940 | 69,049 | |||
Land | 22,295 | 22,295 | |||
Building and building improvements | 120,111 | 112,912 | |||
Office equipment and furniture | 26,703 | 24,307 | |||
Leasehold improvements | 20,830 | 16,660 | |||
734,053 | 684,148 | ||||
Less accumulated depreciation | (344,264) | (299,868) | |||
$ | 389,789 | $ | 384,280 |
2019 | $ | 9,172 | ||
2020 | 7,856 | |||
2021 | 5,488 | |||
2022 | 3,033 | |||
2023 | 888 | |||
Thereafter | 196 | |||
Total | $ | 26,633 |
For Quarters Ended | ||||||||||||||||||||||||||||||||
December 29, 2018 | September 29, 2018 (2) | June 30, 2018 | March 31, 2018 | December 30, 2017 (1) | September 30, 2017 | July 1, 2017 | April 1, 2017 | |||||||||||||||||||||||||
(13 weeks) | (13 weeks) | (13 weeks) | (13 weeks) | (13 weeks) | (13 weeks) | (13 weeks) | (13 weeks) | |||||||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||||||||||||||
Net revenue | $ | 225,222 | $ | 306,870 | $ | 273,100 | $ | 190,457 | $ | 206,320 | $ | 247,047 | $ | 247,930 | $ | 161,695 | ||||||||||||||||
Gross profit | 116,949 | 157,227 | 141,970 | 96,097 | 108,037 | 131,501 | 134,019 | 76,344 | ||||||||||||||||||||||||
Operating income | 28,851 | 46,728 | 31,064 | 9,238 | 14,863 | 51,496 | 45,288 | 4,028 | ||||||||||||||||||||||||
Net income | $ | 21,811 | $ | 38,007 | $ | 23,535 | $ | 9,310 | $ | 30,530 | $ | 33,683 | $ | 29,125 | $ | 5,711 | ||||||||||||||||
Net income per share — basic | $ | 1.88 | $ | 3.25 | $ | 1.99 | $ | 0.79 | $ | 2.60 | $ | 2.82 | $ | 2.38 | $ | 0.46 | ||||||||||||||||
Net income per share — diluted | $ | 1.86 | $ | 3.21 | $ | 1.98 | $ | 0.78 | $ | 2.57 | $ | 2.78 | $ | 2.35 | $ | 0.45 |
| (1) | During the fourth quarter of 2017, the Company recorded a $20.3 million tax benefit due to the Tax Cuts and Jobs Act of 2017. |
| (2) | During the third quarter of 2018, the Company recorded a $4.5 million tax benefit related to tax accounting method changes. |
Kegs | 5 years | |||
Computer software and equipment | 2 to 5 years | |||
Office equipment and furniture | 3 to 7 years | |||
Machinery and plant equipment | 3 to 20 years, or the term of the production agreement, whichever is shorter | |||
Leasehold improvements | Lesser of the remaining term of the lease or estimated useful life of the asset | |||
Building and building improvements | 12 to 20 years, or the remaining useful life of the building, whichever is shorter |
Payments Due by Period | ||||||||||||||||||||||||||||
Total | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Brand support | 63,728 | $ | 37,553 | $ | 5,041 | $ | 4,335 | $ | 4,200 | $ | 4,200 | $ | 8,399 | |||||||||||||||
Hops, barley and wheat | 61,065 | 35,019 | 8,855 | 6,444 | 4,575 | 2,343 | 3,829 | |||||||||||||||||||||
Apples and other ingredients | 33,028 | 33,028 | — | — | — | — | — | |||||||||||||||||||||
Equipment and machinery | 28,403 | 28,403 | — | — | — | — | — | |||||||||||||||||||||
Operating leases | 26,159 | 4,446 | 4,530 | 4,370 | 3,559 | 1,672 | 7,582 | |||||||||||||||||||||
Other | 14,437 | 10,089 | 2,499 | 1,424 | 300 | 125 | — | |||||||||||||||||||||
Total contractual obligations | $ | 226,820 | $ | 148,538 | $ | 20,925 | $ | 16,573 | $ | 12,634 | $ | 8,340 | $ | 19,810 |
Weighted- | Weighted-Average | Aggregate | ||||||||||||||
Average | Remaining | Intrinsic | ||||||||||||||
Exercise | Contractual Term | Value | ||||||||||||||
Shares | Price | in Years | (in thousands) | |||||||||||||
Outstanding at December 30, 2017 | 1,156,997 | $ | 158.53 | |||||||||||||
Granted | 32,570 | 210.24 | ||||||||||||||
Forfeited | (613,630 | ) | 199.94 | |||||||||||||
Expired | (2,654 | ) | 289.54 | |||||||||||||
Exercised | (206,454 | ) | 106.79 | |||||||||||||
Outstanding at December 29, 2018 | 366,829 | $ | 155.75 | 5.52 | $ | 30,588 | ||||||||||
Exercisable at December 29, 2018 | 143,437 | $ | 112.90 | 3.53 | $ | 18,177 | ||||||||||
Vested and expected to vest at December 29, 2018 | 344,111 | $ | 153.42 | 5.44 | $ | 29,503 |
Aggregate | ||||||||
Number of | Purchase | |||||||
Shares | Price | |||||||
(in thousands) | ||||||||
Repurchased at December 26, 2015 | 11,538,680 | $ | 446,092 | |||||
2016 repurchases | 944,876 | 161,658 | ||||||
Repurchased at December 31, 2016 | 12,483,556 | 607,750 | ||||||
2017 repurchases | 963,790 | 144,602 | ||||||
Repurchased at December 30, 2017 | 13,447,346 | 752,352 | ||||||
2018 repurchases | 349,691 | 88,312 | ||||||
Repurchased at December 29, 2018 | 13,797,037 | 840,664 |
December 29, 2018 | December 30, 2017 | ||||
(in thousands) | |||||
Machinery and plant equipment | $ | 476,174 | $ | 438,925 | |
Kegs | 67,940 | 69,049 | |||
Land | 22,295 | 22,295 | |||
Building and building improvements | 120,111 | 112,912 | |||
Office equipment and furniture | 26,703 | 24,307 | |||
Leasehold improvements | 20,830 | 16,660 | |||
734,053 | 684,148 | ||||
Less accumulated depreciation | (344,264) | (299,868) | |||
$ | 389,789 | $ | 384,280 |
December 29, 2018 | December 30, 2017 | |||||||
(in thousands) | ||||||||
Prepaid equipment | $ | 3,789 | $ | — | ||||
Excise and other tax receivables | 2,179 | 1,651 | ||||||
Prepaid malt and barley | 1,629 | 1,819 | ||||||
Prepaid advertising, promotional and selling | 1,518 | 3,328 | ||||||
Prepaid insurance | 1,111 | 1,055 | ||||||
Prepaid compensation | 1,000 | — | ||||||
Prepaid software expense | 754 | — | ||||||
Supplier and vendor rebates | 265 | 1,464 | ||||||
Other | 891 | 1,378 | ||||||
$ | 13,136 | $ | 10,695 |
2018 | 2017 | 2016 | ||||||||||
(in thousands) | ||||||||||||
Current: | ||||||||||||
Federal | $ | 4,471 | $ | 34,255 | $ | 35,390 | ||||||
State | 4,894 | 5,225 | 6,108 | |||||||||
Total current | 9,365 | 39,480 | 41,498 | |||||||||
Deferred: | ||||||||||||
Federal | 12,860 | (22,489 | ) | 7,666 | ||||||||
State | 1,398 | 102 | 608 | |||||||||
Total deferred | 14,258 | (22,387 | ) | 8,274 | ||||||||
Total provision for income taxes | $ | 23,623 | $ | 17,093 | $ | 49,772 |
Accumulated Other | ||||
Comprehensive (Loss) | ||||
Income | ||||
Balance at December 26, 2015 | $ | (951 | ) | |
Deferred pension and other post-retirement benefit costs, net of taxes of $69 | 122 | |||
Amortization of Deferred benefit costs, net of tax benefit of $101 | (175 | ) | ||
Currency translation adjustment | (99 | ) | ||
Balance at December 31, 2016 | $ | (1,103 | ) | |
Deferred pension and other post-retirement benefit costs, net of tax benefit of $57 | (170 | ) | ||
Amortization of Deferred benefit costs, net of tax benefit of $11 | (32 | ) | ||
Currency translation adjustment | 17 | |||
Balance at December 30, 2017 | $ | (1,288 | ) | |
Deferred pension and other post-retirement benefit costs, net of taxes of $64 | 191 | |||
Amortization of Deferred benefit costs, net of taxes of $29 | 86 | |||
One time effect of adoption of ASU 2018-02 , | (211 | ) | ||
Currency translation adjustment | 25 | |||
Balance at December 29, 2018 | $ | (1,197 | ) |
Accumulated Other | ||||
Comprehensive (Loss) | ||||
Income | ||||
Balance at December 26, 2015 | $ | (951 | ) | |
Deferred pension and other post-retirement benefit costs, net of taxes of $69 | 122 | |||
Amortization of Deferred benefit costs, net of tax benefit of $101 | (175 | ) | ||
Currency translation adjustment | (99 | ) | ||
Balance at December 31, 2016 | $ | (1,103 | ) | |
Deferred pension and other post-retirement benefit costs, net of tax benefit of $57 | (170 | ) | ||
Amortization of Deferred benefit costs, net of tax benefit of $11 | (32 | ) | ||
Currency translation adjustment | 17 | |||
Balance at December 30, 2017 | $ | (1,288 | ) | |
Deferred pension and other post-retirement benefit costs, net of taxes of $64 | 191 | |||
Amortization of Deferred benefit costs, net of taxes of $29 | 86 | |||
One time effect of adoption of ASU 2018-02 , | (211 | ) | ||
Currency translation adjustment | 25 | |||
Balance at December 29, 2018 | $ | (1,197 | ) |
Allowance for Doubtful Accounts | Balance at Beginning of Period | Net Provision (Recovery) | Amounts Charged Against Reserves | Balance at End of Period | ||||||||||||
(In thousands) | ||||||||||||||||
2018 | $ | — | $ | 2 | $ | — | $ | 2 | ||||||||
2017 | $ | — | $ | — | $ | — | $ | — | ||||||||
2016 | $ | 244 | $ | (244 | ) | $ | — | $ | — |
Discount Accrual | Balance at Beginning of Period | Net Provision (Recovery) * | Amounts Charged Against Reserves | Balance at End of Period | ||||||||||||
(In thousands) | ||||||||||||||||
2018 | $ | 3,072 | $ | 36,213 | $ | (34,649 | ) | $ | 4,636 | |||||||
2017 | $ | 3,078 | $ | 30,171 | $ | (30,177 | ) | $ | 3,072 | |||||||
2016 | $ | 2,813 | $ | 33,157 | $ | (32,892 | ) | $ | 3,078 |
Inventory Obsolescence Reserve | Balance at Beginning of Period | Net Provision (Recovery) | Amounts Charged Against Reserves | Balance at End of Period | ||||||||||||
(In thousands) | ||||||||||||||||
2018 | $ | 1,826 | $ | 4,175 | $ | (3,421 | ) | $ | 2,580 | |||||||
2017 | $ | 2,262 | $ | 5,751 | $ | (6,187 | ) | $ | 1,826 | |||||||
2016 | $ | 1,525 | $ | 4,707 | $ | (3,970 | ) | $ | 2,262 |
Stale Beer Reserve | Balance at Beginning of Period | Net Provision (Recovery) | Amounts Charged Against Reserves | Balance at End of Period | ||||||||||||
(In thousands) | ||||||||||||||||
2018 | $ | 3,023 | $ | 2,691 | $ | (3,568 | ) | $ | 2,146 | |||||||
2017 | $ | 5,226 | $ | 5,449 | $ | (7,652 | ) | $ | 3,023 | |||||||
2016 | $ | 3,254 | $ | 10,466 | $ | (8,494 | ) | $ | 5,226 |
| * | 2018 net provision of the discount accrual includes $1.7 million related to the cumulative effect adjustment to retained earnings and the current year adjustment to deferred revenue related to the adoption of ASU 2014-09. |
December 29, 2018 | December 30, 2017 | December 31, 2016 (53 weeks) | ||||||||||
(in thousands, except per share data) | ||||||||||||
Net Income | $ | 92,663 | $ | 99,049 | $ | 87,349 | ||||||
Allocation of net income for basic: | ||||||||||||
Class A Common Stock | $ | 68,080 | $ | 73,114 | $ | 63,717 | ||||||
Class B Common Stock | 23,710 | 25,391 | 23,190 | |||||||||
Unvested participating shares | 873 | 544 | 442 | |||||||||
$ | 92,663 | $ | 99,049 | $ | 87,349 | |||||||
Weighted average number of shares for basic: | ||||||||||||
Class A Common Stock | 8,620 | 8,933 | 9,189 | |||||||||
Class B Common Stock* | 3,002 | 3,102 | 3,344 | |||||||||
Unvested participating shares | 111 | 67 | 64 | |||||||||
11,733 | 12,102 | 12,597 | ||||||||||
Net income per share for basic: | ||||||||||||
Class A Common Stock | $ | 7.90 | $ | 8.18 | $ | 6.93 | ||||||
Class B Common Stock | $ | 7.90 | $ | 8.18 | $ | 6.93 |
| * | Change in Class B Common Stock resulted from the conversion of 100,000 shares to Class A Common Stock on March 7, 2017, 79,000 shares to Class A Common Stock on October 31, 2017, and 100,000 shares to Class A Common Stock on November 1, 2018 with the ending number of shares reflecting the weighted average for the period. |
Kegs | 5 years | |||
Computer software and equipment | 2 to 5 years | |||
Office equipment and furniture | 3 to 7 years | |||
Machinery and plant equipment | 3 to 20 years, or the term of the production agreement, whichever is shorter | |||
Leasehold improvements | Lesser of the remaining term of the lease or estimated useful life of the asset | |||
Building and building improvements | 12 to 20 years, or the remaining useful life of the building, whichever is shorter |
Allowance for Doubtful Accounts | Balance at Beginning of Period | Net Provision (Recovery) | Amounts Charged Against Reserves | Balance at End of Period | ||||||||||||
(In thousands) | ||||||||||||||||
2018 | $ | — | $ | 2 | $ | — | $ | 2 | ||||||||
2017 | $ | — | $ | — | $ | — | $ | — | ||||||||
2016 | $ | 244 | $ | (244 | ) | $ | — | $ | — |
Discount Accrual | Balance at Beginning of Period | Net Provision (Recovery) * | Amounts Charged Against Reserves | Balance at End of Period | ||||||||||||
(In thousands) | ||||||||||||||||
2018 | $ | 3,072 | $ | 36,213 | $ | (34,649 | ) | $ | 4,636 | |||||||
2017 | $ | 3,078 | $ | 30,171 | $ | (30,177 | ) | $ | 3,072 | |||||||
2016 | $ | 2,813 | $ | 33,157 | $ | (32,892 | ) | $ | 3,078 |
Inventory Obsolescence Reserve | Balance at Beginning of Period | Net Provision (Recovery) | Amounts Charged Against Reserves | Balance at End of Period | ||||||||||||
(In thousands) | ||||||||||||||||
2018 | $ | 1,826 | $ | 4,175 | $ | (3,421 | ) | $ | 2,580 | |||||||
2017 | $ | 2,262 | $ | 5,751 | $ | (6,187 | ) | $ | 1,826 | |||||||
2016 | $ | 1,525 | $ | 4,707 | $ | (3,970 | ) | $ | 2,262 |
Stale Beer Reserve | Balance at Beginning of Period | Net Provision (Recovery) | Amounts Charged Against Reserves | Balance at End of Period | ||||||||||||
(In thousands) | ||||||||||||||||
2018 | $ | 3,023 | $ | 2,691 | $ | (3,568 | ) | $ | 2,146 | |||||||
2017 | $ | 5,226 | $ | 5,449 | $ | (7,652 | ) | $ | 3,023 | |||||||
2016 | $ | 3,254 | $ | 10,466 | $ | (8,494 | ) | $ | 5,226 |
| * | 2018 net provision of the discount accrual includes $1.7 million related to the cumulative effect adjustment to retained earnings and the current year adjustment to deferred revenue related to the adoption of ASU 2014-09. |