Revenue Recognition

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

The following table disaggregates our Sales by major source (in thousands):


	Three Months Ended June 30, 2020										Six Months Ended June 30, 2020
	Beer Related⁽¹⁾		Brewpubs		Total		Beer Related⁽¹⁾		Brewpubs		Total
Product sold through distributor agreements⁽²⁾	$	50,826	$	—	$	50,826	$	89,685	$	—	$	89,685
Contract brewing fees	81		—		81		416		—		416
International distribution fees	812		—		812		1,624		—		1,624
Brewpubs⁽³⁾	—		463		463		—		5,597		5,597
Other⁽⁴⁾	575		—		575		1,260		—		1,260
	$	52,294	$	463	$	52,757	$	92,985	$	5,597	$	98,582

	Three Months Ended June 30, 2019										Six Months Ended June 30, 2019
	Beer Related⁽¹⁾		Brewpubs		Total		Beer Related⁽¹⁾		Brewpubs		Total
Product sold through distributor agreements⁽²⁾	$	55,905	$	—	$	55,905	$	97,033	$	—	$	97,033
Contract brewing fees	352		—		352		1,200		—		1,200
International distribution fees	812		—		812		1,624		—		1,624
Brewpubs⁽³⁾	—		6,066		6,066		—		12,269		12,269
Other⁽⁴⁾	680		—		680		1,457		—		1,457
	$	57,749	$	6,066	$	63,815	$	101,314	$	12,269	$	113,583

(1)Beer Related sales include sales to A-B subsidiaries including Ambev, ABWI and ABC. Sales to wholesalers through the A-B distributor agreement in the three-month periods ended June 30, 2020 and 2019 represented 91.0% and 80.9% of our Sales, respectively. Sales to wholesalers through the A-B distributor agreement in the six-month periods ended June 30, 2020 and 2019 represented 86.5% and 81.0% of our Sales, respectively.

(2)Product sold through distributor agreements included domestic and international sales of owned and non-owned brands pursuant to terms in our distributor agreements.

(3)Brewpub sales include sales of promotional merchandise and sales of beer directly to customers.

(4)Other sales include sales of beer related merchandise, hops and spent grain.

Revenue is recognized when obligations under the terms of a contract with our customers are satisfied; generally this occurs when the product arrives at distribution centers or when the wholesaler takes possession. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods. We consider customer purchase orders, which in some cases are governed by a master agreement, to be the contracts with a customer. For each contract related to the production of beer, we consider the promise to transfer products, each of which is distinct, to be the identified performance obligation. The transaction price for each performance obligation is specifically identified within the contract with our customer and represents the fair standalone selling price. In contracts with multiple performance obligations, we identify each performance obligation and evaluate whether the performance obligation is distinct within the context of the contract at contract inception. Performance obligations that are not distinct at contract inception are combined. Discounts are recognized as a reduction to Sales at the time we recognize the revenue. We generally do not grant return privileges, except in limited and specific circumstances.

As of June 30, 2020, we had receivables related to contracts with customers of $30.2 million, net of the allowance for doubtful accounts of $25,000. As of December 31, 2019, we had receivables related to contracts with customers of $17.5 million, net of the allowance for doubtful accounts of $25,000.

As of June 30, 2020 and December 31, 2019, contract liabilities, which consisted of obligations associated with our gift card programs, were $0.2 million and were included in Other accrued expenses on the Consolidated Balance Sheets.

In cases where all conditions to a sale are not met at the time of sale, revenue recognition is deferred until all conditions are met. As of June 30, 2020 and December 31, 2019, Deferred revenue on our Consolidated Balance Sheets included $21.1 million and $22.7 million, respectively, related to our International Distribution Agreement ("IDA"). On August 23, 2019, ABC announced it would not make a Qualifying Offer and we received a one-time incentive payment in the amount of $20.0 million on that date as required by the terms of the IDA. For the six months ended June 30, 2020, we recognized $1.6 million as Sales and we expect to recognize an additional $1.6 million of Deferred revenue as Sales in the remainder of 2020, $3.2 million in 2021, and $16.3 million thereafter.