T. Segment Reporting

 

Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision making group, in deciding how to allocate resources in assessing performance. The Company has one operating segment and one reportable segment that produces and sells alcohol beverages under various brands. All brands are predominantly beverages that are manufactured using similar production processes, have comparable alcohol content, generally fall under the same regulatory environment, and are sold to the same types of customers in similar size quantities at similar price points, with similar profit margins, and through the same channels of distribution. The Company’s chief operating decision maker (“CODM”) is the chief executive officer.

 

The accounting policies of the segment are the same as those described in the summary of significant accounting policies. The CODM assesses performance for the segment based on net income, which is reported on the income statement as consolidated net income. The measure of segment assets is reported on the balance sheet as total consolidated assets.

 

The table below summarizes the Company’s measures of segment net income that the CODM considered in determining how to allocate resources and assess segment performance for the years ended December 27, 2025, December 28, 2024, and December 30, 2023:

 

 

Year Ended

 

 

 

December 27,
2025

 

 

December 28,
2024

 

 

December 30,
2023

 

 

 

 

 

 

 

 

 

 

 

Net revenue

 

$

1,964,994

 

 

$

2,012,926

 

 

$

2,008,625

 

Less:

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

 

1,012,414

 

 

 

1,119,194

 

 

 

1,156,256

 

Salaries and benefits expenses

 

 

261,910

 

 

 

254,589

 

 

 

238,363

 

Advertising, promotional, and selling expenses (excluding salaries and benefits)

 

 

455,833

 

 

 

402,221

 

 

 

410,710

 

General and administrative expenses (excluding salaries and benefits)

 

 

83,000

 

 

 

85,129

 

 

 

81,473

 

Impairment of intangible assets

 

 

 

 

 

42,584

 

 

 

16,426

 

Impairment of brewery assets

 

 

6,955

 

 

 

7,184

 

 

 

5,396

 

Contract settlement costs

 

 

 

 

 

26,052

 

 

 

 

Interest income, net

 

 

(9,939

)

 

 

(13,249

)

 

 

(10,995

)

Other expense, net

 

 

1,361

 

 

 

1,620

 

 

 

1,408

 

Income tax provision

 

 

44,991

 

 

 

27,907

 

 

 

33,338

 

Segment net income

 

$

108,469

 

 

$

59,695

 

 

$

76,250

 

 

 

 

 

 

 

 

 

 

 

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 25, 2025

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.