Related Party Transactions (Tables)

9 Months Ended

Sep. 30, 2013

Transactions with Anheuser-Busch, LLC ("A-B")

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Gross sales to A-B	$	44,054	$	39,369	$	121,181	$	112,317
Margin fee paid to A-B, classified as a reduction of Sales		501		496		1,422		1,431
Sales to Fulton Street Brewery, LLC (“FSB”), through a contract brewing arrangement, classified in Sales⁽¹⁾		-		720		-		3,205
Handling, inventory management, royalty and other fees paid to A-B, classified in Cost of sales		101		109		312		339
Amounts received from A-B for lost keg fees and forfeited deposits, included as a reduction of Property, equipment and leasehold improvements, net		-		90		-		122

(1)

FSB is a wholly-owned subsidiary of A-B.

Amounts due to or from A-B

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

	September 30, 2013			December 31, 2012
Amounts due from A-B related to beer sales pursuant to the A-B distributor agreement	$	8,771		$	6,369
Amounts due from FSB related to beer sales pursuant to a contract brewing arrangement		-			260
Amounts due from FSB related to termination agreement		70			630
Refundable deposits due to A-B		(2,441	)		(2,472	)
Amounts due to A-B for services rendered		(2,072	)		(1,974	)
Net amount due from A-B	$	4,328		$	2,813

Lease payments to lessors

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 current Board Chair and a nonexecutive officer. Lease payments to these lessors were as follows (in thousands):

Three Months Ended September 30,				Nine Months Ended September 30,
2013		2012		2013		2012
$	32	$	32	$	95	$	94

We hold lease and sublease obligations for certain office space and the land underlying the brewery and pub location in Kona, Hawaii, with a company whose owners include a shareholder who owns more than 5% of our common stock and a nonexecutive officer. 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 September 30,				Nine Months Ended September 30,
2013		2012		2013		2012
$	111	$	102	$	322	$	301

- Definition

Tabular disclosure of a lessee's leasing arrangements including: (1) the basis on which contingent rental payments are determined, (2) the existence and terms of renewal or purchase options and escalation clauses, (3) restrictions imposed by lease arrangements, such as those concerning dividends, additional debt, and further leasing, (4) rent holidays, rent concessions, or leasehold improvement incentives and unusual provisions or conditions. Disclosure may also include the specific period used to amortize material leasehold improvements made at the inception of the lease or during the lease term. Additionally, for operating leases having initial or remaining noncancelable lease terms in excess of one year: (a) future minimum rental payments required as of the date of the latest balance sheet presented, in the aggregate and for each of the five succeeding fiscal years, (b) the total of minimum rentals to be received in the future under noncancelable subleases as of the date of the latest balance sheet presented, and (c) for all operating leases, rental expense for each period for which an income statement is presented, with separate amounts for minimum rentals, contingent rentals, and sublease rentals. Rental payments under leases with terms of a month or less that were not renewed need not be included.

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