Other transactions with A-B consisted of the following (in thousands):

	Year Ended December 31,
	2012		2011		2010
Gross sales to A-B	$	149,492	$	132,914	$	119,885
Margin fee paid to A-B, classified as a reduction of Sales		1,864		2,777		5,589
Sales to FSB through a contract brewing arrangement, classified in Sales(1		3,083		2,863		28
Sales to FSB pursuant to termination agreement discussed below		838		-		-
Handling, inventory management, royalty and other fees paid to A-B, classified in Cost of sales	449			490		607
Amounts received from A-B for lost keg fees and forfeited deposits, included as a reduction of Property, equipment and leasehold improvements, net		122		267		364

(1)	We owned 42% of FSB prior to it becoming a wholly owned subsidiary of A-B in May 2011 and, accordingly, transactions with FSB are considered to be related party transactions in all periods.

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

	December 31
	2012			2011
Amounts due from A-B related to beer sales pursuant to the A-B Distributor Agreement	$	6,369		$	8,310
Amounts due from FSB related to beer sales pursuant to a contract brewing arrangement		260			585
Amounts due from FSB related to termination agreement		630			-
Refundable deposits due to A-B		(2,472	)		(1,746	)
Amounts due to A-B for services rendered		(1,974	)		(2,482	)
Net amount due from A-B	$	2,813		$	4,667

Prior to the KBC Merger in October 2010, KBC was a related party. For the year ended December 31, 2010, we had the following related party transactions with KBC (in thousands):

	Year Ended December 31,
	2010
Alternating proprietorship fees related to leasing the Oregon Brewery to KBC, recorded as a component of Sales	$	4,814
Fees for selling raw materials and packaging products to KBC, recorded as a component of Sales	$	5,032
Rent charged to KBC for use of kegs for products distributed in Hawaii, recorded as an offset to Cost of sales	$	97