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Inventories

9 Months Ended

Sep. 30, 2023

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, malt, flavorings, fruit juices, 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:


	September 30, 2023		December 31, 2022
	(in thousands)
Current inventory:
Raw materials	$	72,910	$	81,225
Work in process		23,640		20,374
Finished goods		51,852		46,851
Total current inventory		148,402		148,450
Long term inventory		9,454		13,192
Total inventory	$	157,856	$	161,642

As of September 30, 2023 and December 31, 2022, the Company has recorded inventory obsolescence reserves of $8.4 million and $22.0 million, respectively. The decline in the inventory obsolescence reserves from December 31, 2022 to September 30, 2023 is principally driven by the destruction of obsolete inventory.