XML 40 R21.htm IDEA: XBRL DOCUMENT v3.24.0.1
EMPLOYEE BENEFIT PLANS
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS
401(k) Plans.  The Company has established 401(k) plans covering all U.S. employees after certain eligibility requirements are met.  Amounts charged to operations for employer contributions related to the plans totaled $2,810, $2,517, and $1,826 for 2023, 2022, and 2021, respectively.
 
Post-Employment Benefits.  The Company sponsors life insurance coverage as well as medical benefits, including prescription drug coverage, to certain retired employees and their spouses.  In 2014, the Company made a change to the plan to terminate post-employment health care and life insurance benefits for retirees and employees, except for a specified grandfathered group. As of December 31, 2023 the total current and non-current benefit obligations are immaterial.

Share-Based Compensation Plans.  As of December 31, 2023, the Company was authorized to issue 40,000,000 shares of Common Stock and had a treasury share balance of 1,109,053 at December 31, 2023.

The Company currently has two active share-based compensation plans: the 2014 Equity Incentive Plan as amended (the “2014 Plan”) and the 2014 Non-Employee Director Equity Incentive Plan (the “Directors’ Plan”). The plans were approved by stockholders at the Company’s annual meeting in May 2014.

The Company’s share-based compensation plans provide for the awarding of stock options, stock appreciation rights, and shares of restricted stock and RSUs for senior executives and salaried employees, as well as for outside directors.   Compensation expense related to RSU awards is based on the market price of the stock on the date the Board of Directors
communicates the approved award and is amortized over the vesting period of the restricted stock award. The Consolidated Statements of Income for 2023, 2022, and 2021 reflect total share-based compensation costs and director fees for awarded grants of $5,425, $3,487, and $2,346, respectively, related to these plans.

For long-term incentive awards to be granted in the form of RSUs in 2024 based on 2023 results, the Human Resources and Compensation Committee (“HRCC”) determined that the grants would have performance conditions that would be based on the same performance metrics as the Short-Term Incentive Plan (the “STI Plan”). The performance metrics are adjusted operating income, adjusted earnings before interest, taxes, depreciation, and amortization (“EBITDA”), and adjusted EPS. Because management determined at the beginning of 2023 that the performance metrics would more likely than not be met, amortization of the estimated dollar pool of RSUs to be awarded based on 2023 results was started in the first quarter over an estimated 48 month period, including 12 months to the grant date and an additional 36 months to the vesting date. The Consolidated Statements of Income for 2023, 2022, and 2021 reflects share-based compensation costs for grants to be awarded of $5,187, $2,018, and $960, respectively.

2014 Plan. The 2014 Plan, with 1,500,000 shares registered for future grants, provides that vesting occurs pursuant to the time period specified in the particular award agreement approved for that issuance of RSUs, which is to be not less than three years unless vesting is accelerated due to the occurrence of certain events. As of December 31, 2023, 658,081 RSUs had been granted from the 1,500,000 shares approved for under the 2014 Plan.

Directors’ Plan. The Director’s Plan, with 300,000 shares registered for future grants, provides that vesting occurs pursuant to the time period specified in the particular award agreement approved for that issuance of equity.  As of December 31, 2023, 139,579 shares were granted from the 300,000 shares approved for grants under the Directors’ Plan and all 139,579 shares were vested.

RSUs.  The following table presents the summary of unvested RSUs under the Company’s share-based compensation plans for 2023, 2022, and 2021:
 
Year Ended December 31,
 202320222021
 UnitsWeighted Average
 Grant-Date
Fair Value		UnitsWeighted Average
 Grant-Date
Fair Value		UnitsWeighted Average
 Grant-Date Fair Value
Unvested balance at beginning of year179,538 $65.11 167,994 $61.07 118,855 $60.56 
Granted71,728 96.87 69,492 78.08 95,113 65.66 
Forfeited(2,264)81.76 (28,542)61.11 (7,915)62.77 
Vested(22,592)39.47 (29,406)76.59 (38,059)70.60 
Unvested balance at end of year226,410 $77.56 179,538 $65.11 167,994 $61.07 

During 2023, 2022, and 2021, the total grant date fair value of RSU awards vested was $892, $2,252, and $2,687, respectively. As of December 31, 2023, there was $2,716 of total estimated unrecognized compensation costs (net of estimated forfeitures) related to granted RSU awards.  These costs are expected to be recognized over a weighted average period of approximately 1.0 year.

Upon their vesting, the Company purchased restricted stock and RSUs from employees to cover associated withholding taxes. Total treasury stock purchases added 8,437 shares for $801 in 2023; 9,031 shares for $715 in 2022; and 11,887 shares for $767 in 2021.

Annual Cash Incentive Plan. Pursuant to the STI Plan, short-term incentive compensation is dependent on the achievement of certain performance metrics, which are established by the HRCC. The degree of achievement of each financial performance metric for each plan year is calculated in accordance with the STI Plan. These calculations are approved by the HRCC, which may adjust results to eliminate unusual items. For 2023, 2022, and 2021, the financial performance metrics were adjusted operating income, adjusted EBITDA, and adjusted EPS. The HRCC also approves the amount of short-term incentive compensation paid for the plan year to officers and employees eligible to participate under the STI Plan. Additionally, certain employees within the Branded Spirits segment participate in incentive plans that are based on performance metrics, including the number of depleted cases and gross profit. Amounts expensed under the STI Plan totaled $13,443, $13,370, and $11,155 for 2023, 2022, and 2021, respectively.
Deferred Compensation Plan. The Company established an unfunded Executive Deferred Compensation Plan (the “EDC Plan”) effective as of June 30, 2018, with a purpose to attract and retain highly-compensated key employees by providing participants with an opportunity to defer receipt of a portion of their salary, bonus, and other specified compensation. The Company’s obligations under this plan will change in conjunction with the performance of the participants’ investments, along with contributions to and withdrawals from the plan. Realized and unrealized gains (losses) on the EDC plan investments were insignificant and were included as a component of operating income in the Company’s Consolidated Statements of Income, because the Company’s deferred compensation investments consist of mutual funds that are considered trading securities.

Plan investments are classified as Level 1 in the fair value hierarchy since the investments trade with sufficient frequency and volume to enable the Company to obtain pricing information on an ongoing basis. The current portion of the EDC Plan deferrals is comprised of estimated amounts to be paid within one year depending on timing of planned disbursements. At December 31, 2023 and 2022, the EDC Plan investments were $2,916 and $2,176, respectively, which were recorded in other assets on the Company’s Consolidated Balance Sheets. The EDC Plan current liabilities were $74 and $510 at December 31, 2023 and 2022, respectively, and were included in accrued expenses and other on the Company’s Consolidated Balance Sheets. The EDC Plan non-current liabilities were $3,314 and $2,191 as of December 31, 2023 and 2022, respectively, which were recorded in Other non-current liabilities on the Company’s Consolidated Balance Sheets.