Inventories

6 Months Ended

Jun. 25, 2022

Inventory Disclosure [Abstract]

Inventories

D. Inventories

Inventories consist of raw materials, work in process and finished goods which are stated at the lower of cost, determined on the first-in, first-out basis, or net realizable value. Raw materials principally consist of hops, flavorings, apple juice, other brewing materials and packaging. 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:

	June 25, 2022		December 25, 2021
	(in thousands)
Current inventory:
Raw materials	$	94,574	$	78,545
Work in process		18,181		17,764
Finished goods		51,492		52,809
Total current inventory		164,247		149,118
Long term inventory		10,540		12,655
Total inventory	$	174,787	$	161,773

As of June 25, 2022 and December 25, 2021, the Company has recorded inventory obsolescence reserves of $18.2 million and $43.1 million, respectively. The reduction in the inventory obsolescence reserves during the twenty-six weeks ended June 25, 2022 was primarily driven by the destruction of inventory that was fully reserved as of December 25, 2021.