Inventories

3 Months Ended

Mar. 26, 2022

Inventory Disclosure [Abstract]

Inventories

D. 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:

	March 26, 2022		December 25, 2021
	(in thousands)
Current inventory:
Raw materials	$	86,337	$	78,545
Work in process		19,941		17,764
Finished goods		56,314		52,809
Total current inventory		162,592		149,118
Long term inventory		10,386		12,655
Total inventory	$	172,978	$	161,773

As of March 26, 2022 and December 25, 2021, the Company has recorded inventory obsolescence reserves of $26.3 million and $43.1 million, respectively. The reduction in the inventory obsolescence reserves during the thirteen weeks ended March 26, 2022 was primarily driven by the destruction of inventory that was fully reserved as of December 25, 2021.