Sale of Equity Interest in Fulton Street Brewery, LLC (FSB)

12 Months Ended

Dec. 31, 2011

Sale of Equity Interest in Fulton Street Brewery, LLC (FSB) [Abstract]

Sale of Equity Interest in Fulton Street Brewery, LLC (FSB)

Note 7.  Sale of Equity Interest in Fulton Street Brewery, LLC (“FSB”)

On May 2, 2011, we sold our 42% interest in FSB for $16.3 million, net of transaction fees. Proceeds consisted of $15.1 million received in cash and $1.2 million placed in escrow. The escrow balance is to satisfy valid claims, if any, that may be asserted by A-B in connection with breaches of representations and warranties made by the Sellers in the Purchase Agreement. Of the $1.2 million escrow balance, $0.4 million had been collected as of December 31, 2011 and $0.8 million was included in accounts receivable on our Consolidated Balance Sheets at December 31, 2011. The escrow balance is being released to us in three equal payments, every six months, beginning six months following the Closing Date, subject to indemnification claims, as applicable. We recorded a gain of $10.4 million associated with the sale of our equity interest in FSB.

We recognized $691,000 in 2011 for our share of FSB's earnings through the Closing Date and $696,000 and $441,000 in 2010 and 2009, respectively. The book value of our equity investment in FSB was $5.9 million as of the Closing Date and $5.2 million at December 31, 2010.

At December 31, 2011, we had net outstanding receivables due from FSB of $585,000 primarily related to contract brewing. At December 31, 2010, we had recorded a payable to FSB of $3.3 million, primarily for amounts owing for purchases of Goose Island-branded product prior to the sale of FSB. As of December 31, 2011, this amount had been fully paid.