Related Party Transactions

3 Months Ended

Mar. 31, 2016

Transactions with Anheuser-Busch, LLC (“A-B”) and Ambev

In December 2015 we partnered with Ambev, the Brazilian subsidiary of Anheuser-Busch InBev SA, to distribute Kona beers into Brazil. Transactions with A-B and Ambev consisted of the following (in thousands):



	Three Months Ended March 31,
	2016		2015
Gross sales to A-B and Ambev	$	32,256	$	35,666
Margin fee paid to A-B, classified as a reduction of Sales	358		538
Inventory management and other fees paid to A-B, classified in Cost of sales	87		90

Amounts due to or from A-B were as follows (in thousands):



	March 31, 2016			December 31, 2015
Amounts due from A-B related to beer sales pursuant to the A-B distributor agreement	$	11,084		$	12,576
Refundable deposits due to A-B	(2,286		)	(2,291		)
Amounts due to A-B for services rendered	(1,635		)	(1,645		)
Net amount due from A-B	$	7,163		$	8,640

Operating Leases

We lease our headquarters office space, restaurant and storage facilities located in Portland, Oregon, as well as the land and certain equipment, from two limited liability companies, both of whose members include our former Board Chair, who is also a significant shareholder, and a nonexecutive officer. Lease payments to these lessors were as follows (in thousands):

We lease or sublease certain office space and the land underlying the brewery and pub location in Kona, Hawaii, from a company whose owners include a shareholder who owns more than 5% of our common stock and a former nonexecutive officer whose employment ended in 2015. The sublease contracts expire on various dates through 2020, with an extension at our option for two five-year periods. Lease payments to this lessor were as follows (in thousands):

Three Months Ended
March 31,