Segment Results and Enterprise-Wide Disclosures

9 Months Ended

Sep. 30, 2011

Segment Results and Enterprise Wide Disclosures [Abstract]

Segment Results and Enterprise Wide Disclosures

Note 10.       Segment Results and Enterprise-Wide Disclosures

The segment data below is presented in the same manner that management currently organizes the segments for assessing certain performance trends. Our Chief Operating Decision Maker monitors net sales and gross margins of our Beer Related operations and our Pubs and Other operations. Beer Related operations include our four production breweries: Widmer Brothers-branded in Portland, Oregon; two Redhook-branded, one in Woodinville, Washington and one in Portsmouth, New Hampshire; and Kona-branded in Kona, Hawaii. Pubs and Other operations primarily include our pubs, some of which are located adjacent to our Beer Related operations. We do not track operating results beyond the gross margin level or our assets on a segment level, and, accordingly, that information is not provided.

Revenue and gross margin by segment were as follows for the three and nine-month periods ended September 30, 2011 and 2010 (dollars in thousands):

	Three Months									Nine Months
2011	Beer Related			Pubs and Other			Total			Beer Related			Pubs and Other			Total
Net sales	$	33,619		$	6,858		$	40,477		$	95,652		$	18,618		$	114,270
Gross profit	$	11,350		$	1,365		$	12,715		$	32,021		$	3,380		$	35,401
Gross margin		33.8	%		19.9	%		31.4	%		33.5	%		18.2	%		31.0	%

2010
Net sales	$	33,104		$	3,614		$	36,718		$	92,273		$	9,136		$	101,409
Gross profit	$	7,954		$	674		$	8,628		$	24,499		$	1,374		$	25,873
Gross margin		24.0	%		18.7	%		23.5	%		26.6	%		15.0	%		25.5	%

In preparing this financial information, certain expenses were allocated between the segments based on management estimates, while others were based on specific factors such as headcount. These factors can have a significant impact on the amount of gross profit for each segment. While we believe we have applied a reasonable methodology, assignment of other reasonable cost allocations to each segment could result in materially different segment gross profit.

Sales to wholesalers through the A-B Distributor Agreement represented 79.2% and 80.7%, respectively, of our sales for the three and nine-month periods ended September 30, 2011 and 79.1% and 80.7%, respectively, for the comparable periods of 2010. Receivables from A-B represented 58.0% and 65.8%, respectively, of our accounts receivable balance at September 30, 2011 and December 31, 2010.