SAM Boston Beer Co Inc - 8-K

Item 8.01 Other Events.

As reported in the Quarterly Report on Form 10-Q filed by the Company on April 30, 2026, on April 6, 2026 a jury in the United States District Court for the Northern District of Illinois (the “Court”) returned a verdict awarding damages against the Company in its supplier dispute with Ardagh Metal Packaging USA Corp. (“Ardagh”). As a result of the verdict, during the first quarter of 2026 the Company recorded a non-recurring pre-tax litigation expense of $175.5 million and related pre-judgement interest expense of $36.5 million for a combined pre-tax total of $212.0 million. The Company reported that the final judgement had not been entered, that pre-judgement interest had not yet been determined, and that potential pre-judgment interest outcomes ranged between zero and $36.5 million.

On May 26, 2026, the Court entered an amended final judgement in the amount of $175.5 million and determined the pre-judgement interest to be $15.5 million, for a combined pre-tax total of $191.0 million. The pre-judgement interest was within the previously disclosed range, but $21.0 million lower than the amount recorded as pre-judgement interest expense during the first quarter. In the second quarter of 2026, the Company will record this $21.0 million decrease in pre-judgement interest expense, which is estimated to favorably impact the Company’s GAAP Earnings Per Share by $1.52 per diluted share.

The Company continues to deny that it breached the terms of the contract with Ardagh and intends to pursue all available posttrial motions and appellate remedies. Post-judgement interest expense from April 3, 2026 through the appeals process will be applied to the combined pre-tax total amount of $191.0 million at the statutory rate, which is estimated to be 3.79%. The Company cannot estimate when or if damages or interest will ultimately be paid or when this matter will ultimately be resolved.