J. Commitments and Contingencies

Contractual Obligations

The Company had outstanding total non-cancelable contractual obligations of $207.5 million at December 26, 2015. These obligations are made up of hops, barley and wheat totaling $63.7 million, apples and other ingredients of $48.7 million, advertising contracts of $29.1 million, equipment and machinery of $22.7 million, glass bottles of $21.4 million, operating leases of $17.5 million, and other commitments of $4.3 million. As of December 26, 2015, projected cash outflows under contractual obligations for the remaining years under the contracts are as follows:


	Payments Due by Period
	Total		2016		2017-2018		2019-2020		Thereafter
	(in thousands)
Hops, barley and wheat	$	63,685	$	26,763	$	23,195	$	13,727	$	—
Apples and other ingredients		48,719		48,719		—		—		—
Advertising		29,113		28,826		287		—		—
Equipment and machinery		22,704		22,704		—		—		—
Glass bottles		21,412		21,412		—		—		—
Operating leases		17,523		2,664		5,618		4,955		4,286
Other		4,302		3,940		362		—		—

Total contractual obligations	$	207,458	$	155,028	$	29,462	$	18,682	$	4,286

The Company has entered into contracts for the supply of a portion of its hops requirements. These purchase contracts extend through crop year 2020 and specify both the quantities and prices, denominated in Euros and U.S. Dollars, to which the Company is committed. Hops purchase commitments outstanding at December 26, 2015 totaled $50.0 million, based on the exchange rates on that date. The Company does not use forward currency exchange contracts and intends to purchase future hops using the exchange rate at the time of purchase.

Currently, the Company has entered into contracts for barley and wheat with two major suppliers. The contracts include crop years 2014 and 2015 and cover the Company’s barley, wheat, and malt requirements for part of 2016. These purchase commitments outstanding at December 26, 2015 totaled $13.7 million.

The Company sources some of its glass bottles needs pursuant to a Glass Bottle Supply Agreement with Anchor Glass Container Corporation (“Anchor”), under which Anchor is the supplier of certain glass bottles for the Company’s Cincinnati Brewery and its Pennsylvania Brewery. This agreement also establishes the terms on which Anchor may supply glass bottles to other breweries where the Company brews its beers. Under the agreement with Anchor, the Company has minimum and maximum purchase commitments that are based on Company-provided production estimates which, under normal business conditions, are expected to be fulfilled. Minimum purchase commitments under this agreement, assuming the supplier is unable to replace lost production capacity cancelled by the Company, as of December 26, 2015 totaled $21.4 million.

The Company has various operating lease agreements in place for facilities and equipment as of December 26, 2015. 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 2021. Aggregate rent expense was $3.4 million, $3.2 million, and $2.7 million in fiscal years 2015, 2014, and 2013, respectively.

For the fiscal year ended December 26, 2015, the Company brewed over 95% of its core brands 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 purchases the liquid produced by those brewing companies, including the raw materials that are used in the liquid, at the time such liquid goes into fermentation. The Company is required to repurchase all unused raw materials purchased by the brewing company specifically for the Company’s beers at the brewing company’s cost upon termination of the production arrangement. The Company is also obligated to meet annual volume requirements in conjunction with certain production arrangements, which are not material to the Company’s operations.

The Company’s arrangements with other brewing companies require it to periodically purchase equipment in support of brewery operations. As of December 26, 2015, there were no significant equipment purchase requirements outstanding under existing contracts. Changes to the Company’s brewing strategy or existing production arrangements, new production relationships or the introduction of new products in the future may require the Company to purchase equipment to support the contract breweries’ operations.

Litigation

The Company is currently not a party to any pending or threatened litigation, the outcome of which would be expected to have a material adverse effect on its financial condition or the results of its operations.