Crimson Wine (CWGL) 10-Q 8 Aug 18 2018 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 03, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,018
Entity Registrant Name	Crimson Wine Group, Ltd
Entity Central Index Key	1,562,151
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		23,872,478

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 10,713	$ 9,792
Available for sale debt securities	16,182	19,956
Accounts receivable, net	6,091	3,981
Inventory	73,530	75,458
Other current assets	1,384	1,328
Assets held for sale	638	0
Total current assets	108,538	110,515
Property and equipment, net	126,555	129,018
Goodwill	1,262	1,262
Intangible and other non-current assets, net	12,512	13,214
Total non-current assets	140,329	143,494
Total assets	248,867	254,009
Current liabilities:
Accounts payable and accrued liabilities	5,940	10,323
Customer deposits	683	593
Current portion of long-term debt, net of unamortized loan fees	1,125	1,125
Total current liabilities	7,748	12,041
Long-term debt, net of current portion and unamortized loan fees	22,743	23,305
Deferred rent, non-current	43	63
Deferred tax liability	4,874	4,881
Total non-current liabilities	27,660	28,249
Total liabilities	35,408	40,290
Commitments and Contingencies (Note 13)
Equity
Common shares, par value $0.01 per share, 150,000,000 shares authorized; 23,936,008 and 23,997,385 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively	239	240
Additional paid-in capital	277,520	277,520
Accumulated other comprehensive loss	(41)	(23)
Accumulated deficit	(64,259)	(64,018)
Total equity	213,459	213,719
Total liabilities and equity	$ 248,867	$ 254,009

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Common shares, par value (in dollars per share)	$ 0.01	$ 0.01
Common shares, shares authorized (in shares)	150,000,000	150,000,000
Common shares, shares issued (in shares)	23,936,008	23,997,385
Common shares, shares outstanding (in shares)	23,936,008	23,997,385

Condensed Consolidated Income S

Condensed Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Net sales	$ 17,282	$ 15,007	$ 30,511	$ 29,856
Cost of sales	8,664	7,064	15,538	14,128
Gross profit	8,618	7,943	14,973	15,728
Operating expenses:
Sales and marketing	4,002	3,903	8,051	7,852
General and administrative	2,623	2,637	5,329	5,225
Total operating expenses	6,625	6,540	13,380	13,077
Net loss (gain) on disposal of property and equipment	94	1	105	(1)
Restructuring charges	160	0	592	0
Income from operations	1,739	1,402	896	2,652
Other income (expense):
Interest expense, net	(172)	(47)	(510)	(240)
Other income, net	82	118	77	276
Total other (expense) income, net	(90)	71	(433)	36
Income before income taxes	1,649	1,473	463	2,688
Income tax provision	478	575	137	1,041
Net income	$ 1,171	$ 898	$ 326	$ 1,647
Basic and fully diluted weighted-average shares outstanding (in shares)	23,972	23,997	23,985	23,997
Basic and fully diluted earnings per share (in dollars per share)	$ 0.05	$ 0.04	$ 0.01	$ 0.07

Condensed Consolidated Statemen

Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 1,171	$ 898	$ 326	$ 1,647
Other comprehensive loss:
Net unrealized holding losses on investments arising during the period, net of tax	0	(7)	(18)	(16)
Comprehensive income	$ 1,171	$ 891	$ 308	$ 1,631

Condensed Consolidated Stateme6

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Net cash flows from operating activities:
Net income	$ 326	$ 1,647
Adjustments to reconcile net income to net cash operations:
Depreciation and amortization of property and equipment	3,749	3,473
Amortization of intangible assets	756	779
Amortization of loan fees	8	3
Loss on change in fair value of contingent consideration	6	18
Loss on write-down of inventory	131	60
Net loss (gain) on disposal of property and equipment	105	(1)
Restructuring charges	592	0
Impairment charges	24	0
Deferred rent	(16)	(12)
Net change in operating assets and liabilities:
Accounts receivable	(2,110)	176
Inventory	1,797	(292)
Other current assets	(56)	893
Other non-current assets	(13)	(5)
Accounts payable and accrued liabilities	(4,263)	(4,977)
Customer deposits	90	166
Net cash provided by operating activities	1,126	1,928
Net cash flows from investing activities:
Purchase of available for sale debt securities	(4,000)	(2,750)
Redemptions of available for sale debt securities	7,750	6,500
Acquisition of property and equipment	(2,666)	(6,737)
Proceeds from disposal of property and equipment	31	22
Net cash provided by (used in) investing activities	1,115	(2,965)
Net cash flows from financing activities:
Proceeds from issuance of long-term debt	0	10,000
Principal payments on long-term debt	(570)	(480)
Repurchase of common stock	(568)	0
Payment of contingent consideration	(141)	(357)
Payment of loan fees	(41)	(66)
Net cash (used in) provided by financing activities	(1,320)	9,097
Net increase in cash and cash equivalents	921	8,060
Cash and cash equivalents - beginning of period	9,792	4,795
Cash and cash equivalents - end of period	10,713	12,855
Cash paid during the period for:
Interest, net of capitalized interest	690	578
Income taxes	0	0
Non-cash investing activity:
Net unrealized holding losses on investments, net of tax	(18)	(16)
Acquisition of property and equipment accrued but not yet paid	$ 114	$ 985

Background and Basis of Present

Background and Basis of Presentation	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Background and Basis of Presentation	Background and Basis of Presentation Background Crimson Wine Group, Ltd. and its subsidiaries (collectively, “Crimson” or the “Company”) is a Delaware corporation that has been conducting business since 1991. Crimson is in the business of producing and selling ultra-premium plus wines (i.e., wines that retail for over $16 per 750ml bottle). Crimson is headquartered in Napa, California and through its subsidiaries owns six wineries: Pine Ridge Vineyards, Archery Summit, Chamisal Vineyards, Seghesio Family Vineyards, Double Canyon and Seven Hills Winery. Financial Statement Preparation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. The unaudited interim condensed consolidated financial statements, which reflect all adjustments (consisting of normal recurring items or items discussed herein) that management believes necessary to fairly state results of interim operations, should be read in conjunction with the Notes to Consolidated Financial Statements (including the Significant Accounting Policies and Recent Accounting Pronouncements) included in the Company’s audited consolidated financial statements for the year ended December 31, 2017 , as filed with the SEC on Form 10-K (the “2017 Report”). Results of operations for interim periods are not necessarily indicative of annual results of operations. The unaudited condensed consolidated balance sheet at December 31, 2017 was extracted from the audited annual consolidated financial statements and does not include all disclosures required by GAAP for annual financial statements. Significant Accounting Policies Except as described below under Recent Accounting Pronouncements and in Note 2 “Revenue,” there were no changes to the Company’s significant accounting policies during the six months ended June 30, 2018 . See Note 3 to the 2017 Report for a description of the Company’s significant accounting policies. Recent Accounting Pronouncements Subsequent to the filing of the 2017 Report there were no accounting pronouncements issued by the Financial Accounting Standards Board (“FASB”) that would have a material effect on Crimson’s unaudited interim condensed consolidated financial statements. The following table provides an update of accounting pronouncements applicable to Crimson that are not yet adopted as of June 30, 2018 and a description of accounting pronouncements that were adopted during the six months ended June 30, 2018 : ໿ Standard Description Date of adoption Effect on the financial statements or other significant matters Standards that are not yet adopted Accounting Standard Update (“ASU”) 2016-02, Leases (Topic 842) (Subsequently updated with ASU 2018-01) Increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. January 1, 2019, early adoption is permitted for the Company. The Company is currently evaluating the impact of the pending adoption of this new standard on its unaudited interim consolidated financial statements and has yet to determine the overall impact this ASU is expected to have. Management currently anticipates recognizing a right-of-use asset and a lease liability associated with its long-term operating leases. ASU 2017-04, Goodwill and Other (Topic 350) Eliminates Step 2 from the goodwill impairment test. Entities should perform their goodwill impairment tests by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. January 1, 2020, early adoption is permitted for the Company. Management is currently evaluating the potential impact of this guidance on the Company’s unaudited interim consolidated financial statements. ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) Allows the company to elect to reclassify the stranded tax effects related to the Tax Cuts and Jobs Act of 2017 from accumulated other comprehensive income into retained earnings. January 1, 2019, early adoption is permitted for the Company. Management is currently evaluating the potential impact of this guidance on the Company’s unaudited interim consolidated financial statements. Standards that were adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (Subsequently updated with ASU 2016-08, ASU 2016-11, ASU 2016-10, ASU 2016-12, ASU 2016-20, ASU 2017-13 and ASU 2017-14) In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), as amended, which is guidance outlining a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers that supersedes most current revenue recognition guidance. Topic 606 defines a five step process to require revenue to be recognized when control of goods is transferred to the customer and consideration is expected to be received. ASU 2014-09 also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments related to revenue recognition. January 1, 2018 The Company adopted ASU 2014-09 using the modified retrospective method in Q1 2018. Based on the new guidance, the Company will continue to recognize revenue at a particular point in time for its contracts with customers. Therefore, the adoption of ASC 606 did not result in a cumulative-effect adjustment to opening retained earnings. See Note 2 “Revenue,” for further information. ASU 2017-01, Business Combinations (Topic 805) Clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. January 1, 2018 The adoption of this standard did not have an impact on the Company’s unaudited interim consolidated financial statements. ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10) Requires equity investments that are not accounted for under the equity method of accounting to be measured at fair value with changes recognized in net income and updates certain presentation and disclosure requirements. January 1, 2018 The adoption of this standard did not have an impact on the Company’s unaudited interim consolidated financial statements.

Revenue

Revenue	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue	Revenue Revenue Recognition Revenue is recognized once performance obligations under the terms of the Company’s contracts with its customers have been satisfied; this occurs at a point in time when control of the promised product or service is transferred to customers. Generally, all of the Company’s contracts with its customers have a single performance obligation and are short term in nature. Revenue is measured in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. The Company accounts for shipping and handling activities as costs to fulfill its promise to transfer the associated products. Accordingly, the Company records amounts billed for shipping and handling costs as a component of net sales, and classifies such costs as a component of costs of sales. The Company’s products are generally not sold with a right of return unless the product is spoiled or damaged. Historically, returns have not been material to the Company. Wholesale Segment The Company sells its wine to wholesale distributors under purchase orders. The Company transfers control and recognizes revenue for these orders upon shipment of the wine out of the Company’s third-party warehouse facilities. Payment terms to wholesale distributors typically range from 30 to 120 days. The Company pays depletion allowances to its wholesale distributors based on their sales to their customers. The Company estimates these depletion allowances and records such estimates in the same period the related revenue is recognized, resulting in a reduction of wholesale product revenue and the establishment of a current liability. Subsequently, wholesale distributors will bill the Company for actual depletions, which may be different from the Company’s estimate. Any such differences are recognized in sales when the bill is received. The Company has historically been able to estimate depletion allowances without material differences between actual and estimated expense. Direct to Consumer Segment The Company sells its wine and other merchandise directly to consumers through wine club memberships, at the wineries’ tasting rooms and through the internet. Wine club membership sales are made under contracts with customers, which specify the quantity and timing of future wine shipments. Customer credit cards are charged in advance of quarterly wine shipments in accordance with each contract. The Company transfers control and recognizes revenue for these contracts upon shipment of the wine to the customer. Tasting room and internet wine sales are paid for at the time of sale. The Company transfers control and recognizes revenue for this wine when the product is either received by the customer (on-site tasting room sales) or upon shipment to the customer (internet sales). Other From time to time, the Company sells grapes or bulk wine because the wine does not meet the quality standards for the Company’s products, market conditions have changed resulting in reduced demand for certain products, or because the Company may have produced more of a particular varietal than it can use. Grape and bulk sales are made under contracts with customers which include product specification requirements, pricing and payment terms. Payment terms under grape contracts are generally structured around the timing of the harvest of the grapes and are generally due 30 days from the time the grapes are delivered. Payment terms under bulk wine contracts are generally 30 days from the date of shipment and may include an upfront payment upon signing of the sales agreement. The Company transfers control and recognizes revenue for grape sales when product specification has been met and title to the grapes has transferred, which is generally on the date the grapes are harvested, weighed and shipped. The Company transfers control and recognizes revenue for bulk contracts upon shipment. Estates hold various public and private events for customers and their wine club members. Upfront consideration received from the sale of tickets or under private event contracts for future events is recorded as deferred revenue. The balance of payments are due on the date of the event. The Company recognizes event revenue on the date the event is held. Other revenue also includes tasting fees and retail sales, which are paid for and received or consumed at the time of sale. The Company transfers control and recognizes revenue at the time of sale. Refer to Note 12 “Business Segment Information,” for revenue by sales channel amounts for the three and six months ended June 30, 2018 and 2017 . Contract Balances When the Company receives payments from customers prior to transferring goods or services under the terms of a contract, the Company records deferred revenue, which it classifies as Customer deposits on its condensed consolidated balance sheets, and represents a contract liability. The following table reflects changes in the contract liability balance during the six months ended June 30, 2018 and 2017 (in thousands): June 30, 2018 June 30, 2017 Outstanding at beginning of period (December 31) $ 593 $ 367 Increase (decrease) attributed to: Upfront payments 24,092 23,739 Revenue recognized (24,002 ) (23,573 ) Outstanding at end of period $ 683 $ 533 Revenue recognized during the six months ended June 30, 2018 and 2017 , which was included in the opening contract liability balances for those periods, consisted primarily of wine club revenue, grape and bulk sales and event fees. Accounts Receivable Accounts receivable are reported at net realizable value. Credit is extended based upon an evaluation of the customer’s financial condition. Accounts are charged against the allowance to bad debt as they are deemed uncollectible based upon a periodic review of the accounts. In evaluating the collectability of individual receivable balances, the Company considers several factors, including the age of the balance, the customer’s historical payment history, its current credit worthiness and current economic trends. The Company’s account receivable balance is net of an allowance for doubtful accounts of $0.1 million at June 30, 2018 and December 31, 2017 .

Restructuring

Restructuring	6 Months Ended
	Jun. 30, 2018
Restructuring and Related Activities [Abstract]
Restructuring	Restructuring During the first quarter of 2018, the Company committed to various restructuring activities including the termination of a vineyard operating lease agreement in Oregon and certain departmental reorganizations. Restructuring charges of $0.6 million incurred in the first half of 2018 consisted of $0.4 million of asset impairment charges associated with leasehold improvements under the terminated operating lease agreement, $0.1 million severance related costs, and $0.1 million of other restructuring costs associated with departmental reorganization activities. The fair value of impaired leasehold improvements were determined using the undiscounted cash flows expected to result from the use and eventual disposition of the assets. The Company expects to incur an additional $0.1 million in other restructuring charges in the third quarter of 2018, and it may incur additional charges in future periods should additional restructuring activities be rolled out. The Company will continue to assess the need for additional restructuring activities during 2018 and expects the restructuring program to be completed by the end of the fourth quarter of 2018. A roll forward of the liability recognized related to restructuring activities as of June 30, 2018 is as follows (in thousands): Balance at December 31, 2017 Additions Payments Balance at June 30, 2018 Severance related costs $ — $ 112 $ (47 ) $ 65

Inventory

Inventory	6 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
Inventory	Inventory A summary of inventory at June 30, 2018 and December 31, 2017 is as follows (in thousands): June 30, 2018 December 31, 2017 Finished goods $ 38,770 $ 40,778 In-process goods 33,782 34,080 Packaging and bottling supplies 978 600 Total inventory $ 73,530 $ 75,458

Property and Equipment

Property and Equipment	6 Months Ended
	Jun. 30, 2018
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment A summary of property and equipment at June 30, 2018 and December 31, 2017 and depreciation and amortization expense for the six months ended June 30, 2018 and 2017 , is as follows (in thousands): ໿ Depreciable Lives (in years) June 30, 2018 December 31, 2017 Land and improvements N/A $ 46,164 $ 46,566 Buildings and improvements 20-40 59,300 58,946 Winery and vineyard equipment 3-25 38,062 38,631 Vineyards, orchards and improvements 7-25 36,530 37,090 Caves 20-40 5,639 5,639 Vineyards under development N/A 2,814 3,353 Construction in progress N/A 3,471 1,814 Total 191,980 192,039 Accumulated depreciation and amortization (65,425 ) (63,021 ) Total property and equipment, net $ 126,555 $ 129,018 Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Capitalized into inventory $ 1,468 $ 1,360 $ 2,932 $ 2,718 Expensed to general and administrative 407 381 817 755 Total depreciation and amortization $ 1,875 $ 1,741 $ 3,749 $ 3,473 During 2018 , the Company began actively marketing 36 acres of apple orchards for sale as it does not intend to replant these orchards with vineyards. As of June 30, 2018 , the Company had $0.6 million of assets held for sale classified as current assets on the condensed consolidated balance sheets that represent the net book value of these apple orchards. During the six months ended June 30, 2018 , the Company recorded an impairment charge of less than $0.1 million to write-down the carrying value of the apple orchards to fair value less cost to sell. This impairment charge was recorded to other (expense) income, net in the condensed consolidated income statements. The Company expects to complete the sale of the apple orchards within the next twelve months.

Financial Instruments

Financial Instruments	6 Months Ended
	Jun. 30, 2018
Investments, Debt and Equity Securities [Abstract]
Financial Instruments	Financial Instruments The Company’s material financial instruments include cash and cash equivalents, investments classified as available for sale and short-term and long-term debt. Investments classified as available for sale are the only assets or liabilities that are measured at fair value on a recurring basis. All of the Company’s investments mature within two years or less. The par value, amortized cost, gross unrealized gains and losses and estimated fair value of investments classified as available for sale as of June 30, 2018 and December 31, 2017 are as follows (in thousands): June 30, 2018 Par Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Level 1 Level 2 Total Fair Value Measurements Certificates of Deposit $ 16,250 $ 16,250 $ — $ (68 ) $ — $ 16,182 $ 16,182 December 31, 2017 U.S. Treasury Note $ 6,000 $ 6,000 $ — $ (1 ) $ 5,999 $ — $ 5,999 Certificates of Deposit 14,000 14,000 2 (45 ) — 13,957 13,957 Total $ 20,000 $ 20,000 $ 2 $ (46 ) $ 5,999 $ 13,957 $ 19,956 Gross unrealized losses on available-for-sale securities were $0.1 million as of June 30, 2018 , and the Company believes the gross unrealized losses are temporary as it does not intend to sell these securities and it is more likely than not that the Company will not be required to sell these securities before the recovery of their amortized cost basis. As of June 30, 2018 and December 31, 2017 , other than the assets which were impaired in the current period, the Company did not have any assets or liabilities measured at fair value on a nonrecurring basis. For cash and cash equivalents, the carrying amounts of such financial instruments approximate their fair values. For short-term liabilities, the carrying amounts of such financial instruments approximate their fair values. As of June 30, 2018 , the Company has estimated the fair value of its outstanding debt to be approximately $21.5 million compared to its carrying value of $24.0 million , based upon discounted cash flows with Level 3 inputs, such as the terms that management believes would currently be available to the Company for similar issues of debt, taking into account the current credit risk of the Company and other factors. The Company does not invest in any derivatives or engage in any hedging activities.

Intangible and Other Non-Curren

Intangible and Other Non-Current Assets	6 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible and Other Non-Current Assets	Intangible and Other Non-Current Assets A summary of intangible and other non-current assets at June 30, 2018 and December 31, 2017 , and amortization expense for the six months ended June 30, 2018 and 2017 , is as follows (in thousands): June 30, 2018 December 31, 2017 Amortizable lives (in years) Gross carrying amount Accumulated amortization Net book value Gross carrying amount Accumulated amortization Net book value Brand 15 - 17 $ 18,000 $ 7,373 $ 10,627 $ 18,000 $ 6,841 $ 11,159 Distributor relationships 10 - 14 2,700 1,340 1,360 2,700 1,242 1,458 Customer relationships 7 1,900 1,900 — 1,900 1,787 113 Legacy permits 14 250 126 124 250 118 132 Trademark 20 200 98 102 200 93 107 Total $ 23,050 $ 10,837 $ 12,213 $ 23,050 $ 10,081 $ 12,969 Other non-current assets 299 245 Total intangible and other non-current assets, net $ 12,512 $ 13,214 Three Months Ended June 30, Six Months Ended June 30, Amortization expense 2018 2017 2018 2017 Total amortization expense $ 366 $ 390 $ 756 $ 779 The estimated aggregate future amortization of intangible assets as of June 30, 2018 is identified below (in thousands): Amortization Remainder of 2018 $ 646 2019 1,286 2020 1,286 2021 1,286 2022 1,286 Thereafter 6,423 Total $ 12,213

Accounts Payable and Accrued Li

Accounts Payable and Accrued Liabilities	6 Months Ended
	Jun. 30, 2018
Payables and Accruals [Abstract]
Accounts Payable and Accrued Liabilities	Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities consisted of the following as of June 30, 2018 and December 31, 2017 (in thousands): June 30, 2018 December 31, 2017 Accrued compensation related expenses $ 2,156 $ 5,412 Accounts payable 1,185 2,225 Sales and marketing 507 324 Production and farming 403 307 Litigation settlement accrual 390 390 Accrued interest 317 324 Depletion allowance 195 608 Contingent liability related to Seven Hills Winery 140 308 Acquisition of property and equipment 114 264 Other accrued expenses 533 161 Total accounts payable and accrued liabilities $ 5,940 $ 10,323

Debt

Debt	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Debt	Debt Details of the Company’s debt as of June 30, 2018 and December 31, 2017 were as follows (dollars in thousands): June 30, 2018 December 31, 2017 Current Long-term Total Current Long-term Total Interest Rate Maturity Date 2015 Term Loan $ 640 $ 13,760 $ 14,400 $ 640 $ 14,080 $ 14,720 5.24% October 1, 2040 2017 Term Loan 500 9,125 9,625 500 9,375 9,875 5.39% July 1, 2037 Total debt 1,140 22,885 24,025 1,140 23,455 24,595 Unamortized loan fees (15 ) (142 ) (157 ) (15 ) (150 ) (165 ) Total debt, net of unamortized loan fees $ 1,125 $ 22,743 $ 23,868 $ 1,125 $ 23,305 $ 24,430 Revolving Credit Facility In March 2013, Crimson and its subsidiaries entered into a $60.0 million revolving credit facility (the “2013 Revolving Credit Facility”) with American AgCredit, FLCA, as agent for the lenders identified in the 2013 Revolving Credit Facility, comprised of a revolving loan facility (the “Revolving Loan”) and a term revolving loan facility (the “Term Revolving Loan”), which together are secured by substantially all of Crimson’s assets. In March 2018, Crimson and its subsidiaries entered into the second amendment to the 2013 Revolving Credit Facility with American AgCredit, FCLA (the “Second Amendment”). The Second Amendment modified certain provisions of the 2013 Revolving Credit Facility, including, among other things, extending the Revolving Loan and Term Revolving Loan termination dates to March 31, 2023, extending the Term Revolving Loan conversion date to March 31, 2023 and extending the Term Revolving Loan maturity date to March 31, 2033. The Revolving Loan is for up to $10.0 million of availability in the aggregate for a five year term, and the Term Revolving Loan is for up to $50.0 million in the aggregate for a fifteen year term. All obligations of Crimson under the 2013 Revolving Credit Facility are collateralized by certain real property, including vineyards and certain winery facilities of Crimson, accounts receivable, inventory and intangible assets. In addition to unused line fees ranging from 0.15% to 0.25% , rates for the borrowings are priced based on a performance grid tied to certain financial ratios and the London Interbank Offered Rate. The 2013 Revolving Credit Facility can be used to fund acquisitions, capital projects and other general corporate purposes. Covenants include the maintenance of specified debt and equity ratios, limitations on the incurrence of additional indebtedness, limitations on dividends and other distributions to shareholders and restrictions on certain mergers, consolidations and sales of assets. No amounts have been borrowed under the revolving credit facility to date. Term Loans Term loans consist of the following: (i) On November 10, 2015, Pine Ridge Winery, LLC (“PRW Borrower”), a wholly-owned subsidiary of Crimson, entered into a senior secured term loan agreement (the “2015 Term Loan”) with American AgCredit, FLCA (“Lender”) for an aggregate principal amount of $16.0 million . Amounts outstanding under the 2015 Term Loan bear a fixed interest rate of 5.24% per annum. The 2015 Term Loan will mature on October 1, 2040 (the “2015 Loan Maturity Date”). On the first day of each January, April, July and October, commencing January 1, 2016, PRW Borrower is required to make a principal payment in the amount of $160,000 and an interest payment equal to the amount of all interest accrued through the previous day. A final payment of all unpaid principal, interest and any other charges with respect to the 2015 Term Loan shall be due and payable on the 2015 Loan Maturity Date. The Company incurred debt issuance costs of approximately $0.1 million related to the 2015 Term Loan. These costs are recorded as a reduction from short-term or long-term debt based on the timeframe in which the fees will be expensed, and as such, amounts to be expensed within twelve months shall be classified against short-term debt. The costs are being amortized to interest expense using the effective interest method over the contractual term of the loan. The full $16.0 million was drawn at closing and the 2015 Term Loan can be used to fund acquisitions, capital projects and other general corporate purposes. As of June 30, 2018 , $14.4 million in principal was outstanding on the 2015 Term Loan, and unamortized loan fees were $0.1 million . (ii) On June 29, 2017, Double Canyon Vineyards, LLC (the “DCV Borrower” and, individually and collectively with the PRW Borrower, “Borrower”), a wholly-owned subsidiary of Crimson, entered into a senior secured term loan agreement (the “2017 Term Loan”) with the Lender for an aggregate principal amount of $10.0 million . Amounts outstanding under the 2017 Term Loan bear a fixed interest rate of 5.39% per annum. The 2017 Term Loan will mature on July 1, 2037 (the “2017 Loan Maturity Date”). On the first day of each January, April, July and October, commencing October 1, 2017, DCV Borrower is required to make a principal payment in the amount of $125,000 and an interest payment equal to the amount of all interest accrued through the previous day. A final payment of all unpaid principal, interest and any other charges with respect to the 2017 Term Loan shall be due and payable on the 2017 Loan Maturity Date. The Company incurred debt issuance costs of approximately $0.1 million related to the 2017 Term Loan. These costs were recorded using the same treatment as described for the 2015 Term Loan debt issuance costs. The full $10.0 million was drawn at closing and the 2017 Term Loan can be used to fund acquisitions, capital projects and other general corporate purposes. As of June 30, 2018 , $9.6 million in principal was outstanding on the 2017 Term Loan, and unamortized loan fees were $0.1 million . Borrower’s obligations under the 2015 Term Loan and 2017 Term Loan are guaranteed by the Company. All obligations of Borrower under the 2015 Term Loan and 2017 Term Loan are collateralized by certain real property of the Company. Borrower’s covenants include the maintenance of a specified debt service coverage ratio and certain customary affirmative and negative covenants, including limitations on the incurrence of additional indebtedness; limitations on distributions to shareholders; and restrictions on certain investments, sale of assets and merging or consolidating with other entities. The Company was in compliance with all debt covenants as of June 30, 2018 . A summary of debt maturities as of June 30, 2018 is as follows (in thousands): Principal due the remainder of 2018 $ 570 Principal due in 2019 1,140 Principal due in 2020 1,140 Principal due in 2021 1,140 Principal due in 2022 1,140 Principal due thereafter 18,895 Total $ 24,025

Stockholders_ Equity

Stockholders’ Equity	6 Months Ended
	Jun. 30, 2018
Stockholders' Equity Note [Abstract]
Stockholders' Equity	Stockholders’ Equity In March 2018, the Board of Directors of the Company authorized a share repurchase program (the “2018 Repurchase Program”) that provided for the repurchase of up to $2.0 million of outstanding common stock. Under the 2018 Repurchase Program, any repurchased shares are constructively retired. During the six months ended June 30, 2018 , the Company repurchased 61,377 shares at an original repurchase price of $0.6 million under the 2018 Repurchase Program. Through August 3, 2018 , the Company had repurchased 124,907 shares under the 2018 Repurchase Program at an original repurchase price of $1.2 million .

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Consolidated income tax expense for the three and six months ended June 30, 2018 and 2017 were determined based upon the Company’s estimated consolidated annual effective income tax rates for the years ending December 31, 2018 and 2017 respectively. The Company’s effective tax rates for the three months ended June 30, 2018 and 2017 were 29.0% and 39.0% , respectively. The Company’s effective tax rates for the six months ended June 30, 2018 and 2017 were 29.6% and 38.7% . As a result of the Tax Cuts and Jobs Act (Public Law 115-97), the Company revised its estimated annual effective tax rate to reflect the change in the U.S. federal statutory tax rate from 34% to 21%. The difference between the consolidated effective income tax rate and the U.S. federal statutory rate for the three and six months ended June 30, 2018 was primarily attributable to state taxes and the effect of certain permanent differences, which primarily consisted of meals and entertainment. The Company does not have any amounts in its condensed consolidated balance sheets for unrecognized tax benefits related to uncertain tax positions at June 30, 2018 and December 31, 2017 .

Business Segment Information

Business Segment Information	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Business Segment Information	Business Segment Information The Company has identified two operating segments which are reportable segments for financial statement reporting purposes, Wholesale net sales and Direct to Consumer net sales, based upon their different distribution channels, margins and selling strategies. Wholesale net sales include all sales through a third party where prices are given at a wholesale rate, whereas Direct to Consumer net sales include retail sales in the tasting room, remote sites and on-site events, wine club net sales and other sales made directly to the consumer without the use of an intermediary. The two segments reflect how the Company’s operations are evaluated by senior management and the structure of its internal financial reporting. The Company evaluates performance based on the gross profit of the respective business segments. Selling expenses that can be directly attributable to the segment are allocated accordingly. However, centralized selling expenses and general and administrative expenses are not allocated between operating segments. Therefore, net income information for the respective segments is not available. Based on the nature of the Company’s business, revenue generating assets are utilized across segments. Therefore, discrete financial information related to segment assets and other balance sheet data is not available and that information continues to be aggregated. The following table outlines the net sales, cost of sales, gross profit, directly attributable selling expenses and operating income for the Company’s reportable segments for the three and six months ended June 30, 2018 and 2017 , and also includes a reconciliation of consolidated income (loss) from operations. Other/Non-allocable net sales and gross profit include bulk wine and grape sales, event fees and retail sales. Other/Non-allocable expenses include centralized corporate expenses not specific to an identified reporting segment. Sales figures are net of related excise taxes. Three Months Ended June 30, Wholesale Direct to Consumer Other/Non-Allocable Total (in thousands) 2018 2017 2018 2017 2018 2017 2018 2017 Net sales $ 9,956 $ 7,807 $ 6,127 $ 6,036 $ 1,199 $ 1,164 $ 17,282 $ 15,007 Cost of sales 5,469 4,332 1,999 1,912 1,196 820 8,664 7,064 Gross profit 4,487 3,475 4,128 4,124 3 344 8,618 7,943 Operating expenses: Sales and marketing 1,485 1,441 1,609 1,709 908 753 4,002 3,903 General and administrative — — — — 2,623 2,637 2,623 2,637 Total operating expenses 1,485 1,441 1,609 1,709 3,531 3,390 6,625 6,540 Net loss on disposal of property and equipment — — — — 94 1 94 1 Restructuring costs — — — — 160 — 160 — Income (loss) from operations $ 3,002 $ 2,034 $ 2,519 $ 2,415 $ (3,782 ) $ (3,047 ) $ 1,739 $ 1,402 Six Months Ended June 30, Wholesale Direct to Consumer Other/Non-Allocable Total (in thousands) 2018 2017 2018 2017 2018 2017 2018 2017 Net sales $ 17,446 $ 16,828 $ 11,130 $ 11,131 $ 1,935 $ 1,897 $ 30,511 $ 29,856 Cost of sales 9,979 9,164 3,652 3,429 1,907 1,535 15,538 14,128 Gross profit 7,467 7,664 7,478 7,702 28 362 14,973 15,728 Operating expenses: Sales and marketing 3,165 3,110 3,126 3,198 1,760 1,544 8,051 7,852 General and administrative — — — — 5,329 5,225 5,329 5,225 Total operating expenses 3,165 3,110 3,126 3,198 7,089 6,769 13,380 13,077 Net loss (gain) on disposal of property and equipment — — — — 105 (1 ) 105 (1 ) Restructuring costs — — — — 592 — 592 — Income (loss) from operations $ 4,302 $ 4,554 $ 4,352 $ 4,504 $ (7,758 ) $ (6,406 ) $ 896 $ 2,652

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Litigation The Company and its subsidiaries may become parties to legal proceedings that are considered to be either ordinary, routine litigation incidental to their business or not significant to the Company’s consolidated financial position or liquidity. Other than as described below, the Company does not believe that there is any other pending litigation that could have a significant adverse impact on its consolidated financial position, liquidity or results of operations. On May 17, 2017, a former employee filed a class action complaint in the Superior Court of California, County of Napa against one of the Company’s subsidiaries, Pine Ridge Vineyards, alleging various wage and labor violations. On February 5, 2018, the Company settled this class action complaint at mediation for $0.4 million , which was recorded in the consolidated financial statements for the year ended December 31, 2017. The settlement does not contain any admission of liability, wrongdoing, or responsibility by any of the parties. The court granted preliminary approval of the settlement on May 23, 2018. Class notice has been sent to the class members, and the final approval hearing is scheduled for October 5, 2018. Other In October 2017, significant wildfires broke out in Napa, Sonoma, and surrounding counties in Northern California. Operations at two of the Company’s properties, Pine Ridge Vineyards and Seghesio Family Vineyards, were temporarily impacted due to these wildfires and then resumed shortly thereafter. At the time of the wildfires, both properties had already harvested substantially all of their 2017 estate grapes and did not endure any property or vineyard damage. Certain inventory on hand, as well as inventory purchased under contract, may have been subject to smoke taint and reduced quality, however, the amount of loss, if any, cannot be reasonably estimated at this time. Any loss due to the wildfires will be partially offset by proceeds from the Company’s insurance policies.

Background and Basis of Prese20

Background and Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Financial Statement Preparation	Financial Statement Preparation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. The unaudited interim condensed consolidated financial statements, which reflect all adjustments (consisting of normal recurring items or items discussed herein) that management believes necessary to fairly state results of interim operations, should be read in conjunction with the Notes to Consolidated Financial Statements (including the Significant Accounting Policies and Recent Accounting Pronouncements) included in the Company’s audited consolidated financial statements for the year ended December 31, 2017 , as filed with the SEC on Form 10-K (the “2017 Report”). Results of operations for interim periods are not necessarily indicative of annual results of operations. The unaudited condensed consolidated balance sheet at December 31, 2017 was extracted from the audited annual consolidated financial statements and does not include all disclosures required by GAAP for annual financial statements.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Subsequent to the filing of the 2017 Report there were no accounting pronouncements issued by the Financial Accounting Standards Board (“FASB”) that would have a material effect on Crimson’s unaudited interim condensed consolidated financial statements. The following table provides an update of accounting pronouncements applicable to Crimson that are not yet adopted as of June 30, 2018 and a description of accounting pronouncements that were adopted during the six months ended June 30, 2018 : ໿ Standard Description Date of adoption Effect on the financial statements or other significant matters Standards that are not yet adopted Accounting Standard Update (“ASU”) 2016-02, Leases (Topic 842) (Subsequently updated with ASU 2018-01) Increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. January 1, 2019, early adoption is permitted for the Company. The Company is currently evaluating the impact of the pending adoption of this new standard on its unaudited interim consolidated financial statements and has yet to determine the overall impact this ASU is expected to have. Management currently anticipates recognizing a right-of-use asset and a lease liability associated with its long-term operating leases. ASU 2017-04, Goodwill and Other (Topic 350) Eliminates Step 2 from the goodwill impairment test. Entities should perform their goodwill impairment tests by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. January 1, 2020, early adoption is permitted for the Company. Management is currently evaluating the potential impact of this guidance on the Company’s unaudited interim consolidated financial statements. ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) Allows the company to elect to reclassify the stranded tax effects related to the Tax Cuts and Jobs Act of 2017 from accumulated other comprehensive income into retained earnings. January 1, 2019, early adoption is permitted for the Company. Management is currently evaluating the potential impact of this guidance on the Company’s unaudited interim consolidated financial statements. Standards that were adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (Subsequently updated with ASU 2016-08, ASU 2016-11, ASU 2016-10, ASU 2016-12, ASU 2016-20, ASU 2017-13 and ASU 2017-14) In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), as amended, which is guidance outlining a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers that supersedes most current revenue recognition guidance. Topic 606 defines a five step process to require revenue to be recognized when control of goods is transferred to the customer and consideration is expected to be received. ASU 2014-09 also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments related to revenue recognition. January 1, 2018 The Company adopted ASU 2014-09 using the modified retrospective method in Q1 2018. Based on the new guidance, the Company will continue to recognize revenue at a particular point in time for its contracts with customers. Therefore, the adoption of ASC 606 did not result in a cumulative-effect adjustment to opening retained earnings. See Note 2 “Revenue,” for further information. ASU 2017-01, Business Combinations (Topic 805) Clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. January 1, 2018 The adoption of this standard did not have an impact on the Company’s unaudited interim consolidated financial statements. ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10) Requires equity investments that are not accounted for under the equity method of accounting to be measured at fair value with changes recognized in net income and updates certain presentation and disclosure requirements. January 1, 2018 The adoption of this standard did not have an impact on the Company’s unaudited interim consolidated financial statements.

Background and Basis of Prese21

Background and Basis of Presentation (Tables)	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of New Accounting Pronouncements and Changes in Accounting Principles	The following table provides an update of accounting pronouncements applicable to Crimson that are not yet adopted as of June 30, 2018 and a description of accounting pronouncements that were adopted during the six months ended June 30, 2018 : ໿ Standard Description Date of adoption Effect on the financial statements or other significant matters Standards that are not yet adopted Accounting Standard Update (“ASU”) 2016-02, Leases (Topic 842) (Subsequently updated with ASU 2018-01) Increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. January 1, 2019, early adoption is permitted for the Company. The Company is currently evaluating the impact of the pending adoption of this new standard on its unaudited interim consolidated financial statements and has yet to determine the overall impact this ASU is expected to have. Management currently anticipates recognizing a right-of-use asset and a lease liability associated with its long-term operating leases. ASU 2017-04, Goodwill and Other (Topic 350) Eliminates Step 2 from the goodwill impairment test. Entities should perform their goodwill impairment tests by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. January 1, 2020, early adoption is permitted for the Company. Management is currently evaluating the potential impact of this guidance on the Company’s unaudited interim consolidated financial statements. ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) Allows the company to elect to reclassify the stranded tax effects related to the Tax Cuts and Jobs Act of 2017 from accumulated other comprehensive income into retained earnings. January 1, 2019, early adoption is permitted for the Company. Management is currently evaluating the potential impact of this guidance on the Company’s unaudited interim consolidated financial statements. Standards that were adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (Subsequently updated with ASU 2016-08, ASU 2016-11, ASU 2016-10, ASU 2016-12, ASU 2016-20, ASU 2017-13 and ASU 2017-14) In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), as amended, which is guidance outlining a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers that supersedes most current revenue recognition guidance. Topic 606 defines a five step process to require revenue to be recognized when control of goods is transferred to the customer and consideration is expected to be received. ASU 2014-09 also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments related to revenue recognition. January 1, 2018 The Company adopted ASU 2014-09 using the modified retrospective method in Q1 2018. Based on the new guidance, the Company will continue to recognize revenue at a particular point in time for its contracts with customers. Therefore, the adoption of ASC 606 did not result in a cumulative-effect adjustment to opening retained earnings. See Note 2 “Revenue,” for further information. ASU 2017-01, Business Combinations (Topic 805) Clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. January 1, 2018 The adoption of this standard did not have an impact on the Company’s unaudited interim consolidated financial statements. ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10) Requires equity investments that are not accounted for under the equity method of accounting to be measured at fair value with changes recognized in net income and updates certain presentation and disclosure requirements. January 1, 2018 The adoption of this standard did not have an impact on the Company’s unaudited interim consolidated financial statements.

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Schedule of Contract Liability	The following table reflects changes in the contract liability balance during the six months ended June 30, 2018 and 2017 (in thousands): June 30, 2018 June 30, 2017 Outstanding at beginning of period (December 31) $ 593 $ 367 Increase (decrease) attributed to: Upfront payments 24,092 23,739 Revenue recognized (24,002 ) (23,573 ) Outstanding at end of period $ 683 $ 533

Restructuring (Tables)

Restructuring (Tables)	6 Months Ended
	Jun. 30, 2018
Restructuring and Related Activities [Abstract]
Rollforward of Restructuring Activities	A roll forward of the liability recognized related to restructuring activities as of June 30, 2018 is as follows (in thousands): Balance at December 31, 2017 Additions Payments Balance at June 30, 2018 Severance related costs $ — $ 112 $ (47 ) $ 65

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
Summary of Inventory	A summary of inventory at June 30, 2018 and December 31, 2017 is as follows (in thousands): June 30, 2018 December 31, 2017 Finished goods $ 38,770 $ 40,778 In-process goods 33,782 34,080 Packaging and bottling supplies 978 600 Total inventory $ 73,530 $ 75,458

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2018
Property, Plant and Equipment [Abstract]
Summary Of Property And Equipment	A summary of property and equipment at June 30, 2018 and December 31, 2017 and depreciation and amortization expense for the six months ended June 30, 2018 and 2017 , is as follows (in thousands): ໿ Depreciable Lives (in years) June 30, 2018 December 31, 2017 Land and improvements N/A $ 46,164 $ 46,566 Buildings and improvements 20-40 59,300 58,946 Winery and vineyard equipment 3-25 38,062 38,631 Vineyards, orchards and improvements 7-25 36,530 37,090 Caves 20-40 5,639 5,639 Vineyards under development N/A 2,814 3,353 Construction in progress N/A 3,471 1,814 Total 191,980 192,039 Accumulated depreciation and amortization (65,425 ) (63,021 ) Total property and equipment, net $ 126,555 $ 129,018 Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Capitalized into inventory $ 1,468 $ 1,360 $ 2,932 $ 2,718 Expensed to general and administrative 407 381 817 755 Total depreciation and amortization $ 1,875 $ 1,741 $ 3,749 $ 3,473

Financial Instruments (Tables)

Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2018
Investments, Debt and Equity Securities [Abstract]
Schedule Of Available For Sale Securities	The par value, amortized cost, gross unrealized gains and losses and estimated fair value of investments classified as available for sale as of June 30, 2018 and December 31, 2017 are as follows (in thousands): June 30, 2018 Par Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Level 1 Level 2 Total Fair Value Measurements Certificates of Deposit $ 16,250 $ 16,250 $ — $ (68 ) $ — $ 16,182 $ 16,182 December 31, 2017 U.S. Treasury Note $ 6,000 $ 6,000 $ — $ (1 ) $ 5,999 $ — $ 5,999 Certificates of Deposit 14,000 14,000 2 (45 ) — 13,957 13,957 Total $ 20,000 $ 20,000 $ 2 $ (46 ) $ 5,999 $ 13,957 $ 19,956

Intangible and Other Non-Curr27

Intangible and Other Non-Current Assets (Tables)	6 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Summary Of Intangible Assets	A summary of intangible and other non-current assets at June 30, 2018 and December 31, 2017 , and amortization expense for the six months ended June 30, 2018 and 2017 , is as follows (in thousands): June 30, 2018 December 31, 2017 Amortizable lives (in years) Gross carrying amount Accumulated amortization Net book value Gross carrying amount Accumulated amortization Net book value Brand 15 - 17 $ 18,000 $ 7,373 $ 10,627 $ 18,000 $ 6,841 $ 11,159 Distributor relationships 10 - 14 2,700 1,340 1,360 2,700 1,242 1,458 Customer relationships 7 1,900 1,900 — 1,900 1,787 113 Legacy permits 14 250 126 124 250 118 132 Trademark 20 200 98 102 200 93 107 Total $ 23,050 $ 10,837 $ 12,213 $ 23,050 $ 10,081 $ 12,969 Other non-current assets 299 245 Total intangible and other non-current assets, net $ 12,512 $ 13,214 Three Months Ended June 30, Six Months Ended June 30, Amortization expense 2018 2017 2018 2017 Total amortization expense $ 366 $ 390 $ 756 $ 779
Amortization Expense for Intangible Assets	The estimated aggregate future amortization of intangible assets as of June 30, 2018 is identified below (in thousands): Amortization Remainder of 2018 $ 646 2019 1,286 2020 1,286 2021 1,286 2022 1,286 Thereafter 6,423 Total $ 12,213

Accounts Payable and Accrued 28

Accounts Payable and Accrued Liabilities (Tables)	6 Months Ended
	Jun. 30, 2018
Payables and Accruals [Abstract]
Schedule of other accrued expenses	Accounts payable and accrued liabilities consisted of the following as of June 30, 2018 and December 31, 2017 (in thousands): June 30, 2018 December 31, 2017 Accrued compensation related expenses $ 2,156 $ 5,412 Accounts payable 1,185 2,225 Sales and marketing 507 324 Production and farming 403 307 Litigation settlement accrual 390 390 Accrued interest 317 324 Depletion allowance 195 608 Contingent liability related to Seven Hills Winery 140 308 Acquisition of property and equipment 114 264 Other accrued expenses 533 161 Total accounts payable and accrued liabilities $ 5,940 $ 10,323

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Schedule of Debt	Details of the Company’s debt as of June 30, 2018 and December 31, 2017 were as follows (dollars in thousands): June 30, 2018 December 31, 2017 Current Long-term Total Current Long-term Total Interest Rate Maturity Date 2015 Term Loan $ 640 $ 13,760 $ 14,400 $ 640 $ 14,080 $ 14,720 5.24% October 1, 2040 2017 Term Loan 500 9,125 9,625 500 9,375 9,875 5.39% July 1, 2037 Total debt 1,140 22,885 24,025 1,140 23,455 24,595 Unamortized loan fees (15 ) (142 ) (157 ) (15 ) (150 ) (165 ) Total debt, net of unamortized loan fees $ 1,125 $ 22,743 $ 23,868 $ 1,125 $ 23,305 $ 24,430
Schedule of Maturities of Long-term Debt	A summary of debt maturities as of June 30, 2018 is as follows (in thousands): Principal due the remainder of 2018 $ 570 Principal due in 2019 1,140 Principal due in 2020 1,140 Principal due in 2021 1,140 Principal due in 2022 1,140 Principal due thereafter 18,895 Total $ 24,025

Business Segment Information (T

Business Segment Information (Tables)	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Schedule Of Segment Reporting	The following table outlines the net sales, cost of sales, gross profit, directly attributable selling expenses and operating income for the Company’s reportable segments for the three and six months ended June 30, 2018 and 2017 , and also includes a reconciliation of consolidated income (loss) from operations. Other/Non-allocable net sales and gross profit include bulk wine and grape sales, event fees and retail sales. Other/Non-allocable expenses include centralized corporate expenses not specific to an identified reporting segment. Sales figures are net of related excise taxes. Three Months Ended June 30, Wholesale Direct to Consumer Other/Non-Allocable Total (in thousands) 2018 2017 2018 2017 2018 2017 2018 2017 Net sales $ 9,956 $ 7,807 $ 6,127 $ 6,036 $ 1,199 $ 1,164 $ 17,282 $ 15,007 Cost of sales 5,469 4,332 1,999 1,912 1,196 820 8,664 7,064 Gross profit 4,487 3,475 4,128 4,124 3 344 8,618 7,943 Operating expenses: Sales and marketing 1,485 1,441 1,609 1,709 908 753 4,002 3,903 General and administrative — — — — 2,623 2,637 2,623 2,637 Total operating expenses 1,485 1,441 1,609 1,709 3,531 3,390 6,625 6,540 Net loss on disposal of property and equipment — — — — 94 1 94 1 Restructuring costs — — — — 160 — 160 — Income (loss) from operations $ 3,002 $ 2,034 $ 2,519 $ 2,415 $ (3,782 ) $ (3,047 ) $ 1,739 $ 1,402 Six Months Ended June 30, Wholesale Direct to Consumer Other/Non-Allocable Total (in thousands) 2018 2017 2018 2017 2018 2017 2018 2017 Net sales $ 17,446 $ 16,828 $ 11,130 $ 11,131 $ 1,935 $ 1,897 $ 30,511 $ 29,856 Cost of sales 9,979 9,164 3,652 3,429 1,907 1,535 15,538 14,128 Gross profit 7,467 7,664 7,478 7,702 28 362 14,973 15,728 Operating expenses: Sales and marketing 3,165 3,110 3,126 3,198 1,760 1,544 8,051 7,852 General and administrative — — — — 5,329 5,225 5,329 5,225 Total operating expenses 3,165 3,110 3,126 3,198 7,089 6,769 13,380 13,077 Net loss (gain) on disposal of property and equipment — — — — 105 (1 ) 105 (1 ) Restructuring costs — — — — 592 — 592 — Income (loss) from operations $ 4,302 $ 4,554 $ 4,352 $ 4,504 $ (7,758 ) $ (6,406 ) $ 896 $ 2,652

Background and Basis of Prese31

Background and Basis of Presentation (Details)	6 Months Ended
	Jun. 30, 2018USD ($)wineryl
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Price per bottle, low range | $	$ 16
Volume of bottle of wine (in liters) | l	0.750
Number of wineries owned | winery	6

Revenue (Narrative) (Details)

Revenue (Narrative) (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Disaggregation of Revenue [Line Items]
Allowance for doubtful accounts	$ 0.1	$ 0.1
Wholesale distributor sales | Minimum
Disaggregation of Revenue [Line Items]
Payment terms	30 days
Wholesale distributor sales | Maximum
Disaggregation of Revenue [Line Items]
Payment terms	120 days
Bulk wine sales
Disaggregation of Revenue [Line Items]
Payment terms	30 days

Revenue (Contract Balances) (De

Revenue (Contract Balances) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Revenue from Contract with Customer [Abstract]
Outstanding at beginning of period (December 31)	$ 593	$ 367
Increase (decrease) attributed to:
Upfront payments	24,092	23,739
Revenue recognized	(24,002)	(23,573)
Outstanding at end of period	$ 683	$ 533

Restructuring (Narrative) (Deta

Restructuring (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Sep. 30, 2018	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Restructuring Cost and Reserve [Line Items]
Restructuring charges		$ 160	$ 0	$ 592	$ 0
Asset Impairment
Restructuring Cost and Reserve [Line Items]
Restructuring charges				400
Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring charges				112
Other Restructuring
Restructuring Cost and Reserve [Line Items]
Restructuring charges				$ 100
Other Restructuring | Scenario, Forecast
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 100

Restructuring (Rollforward of R

Restructuring (Rollforward of Restructuring Activities) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Restructuring Reserve [Roll Forward]
Restructuring charges	$ 160	$ 0	$ 592	$ 0
Employee Severance
Restructuring Reserve [Roll Forward]
Balance at December 31, 2017			0
Restructuring charges			112
Payments			(47)
Balance at June 30, 2018	$ 65		$ 65

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Finished goods	$ 38,770	$ 40,778
In-process goods	33,782	34,080
Packaging and bottling supplies	978	600
Total inventory	$ 73,530	$ 75,458

Property and Equipment (Details

Property and Equipment (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Mar. 31, 2018a	Dec. 31, 2017USD ($)
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 191,980		$ 191,980			$ 192,039
Accumulated depreciation and amortization	(65,425)		(65,425)			(63,021)
Total property and equipment, net	126,555		126,555			129,018
Capitalized into inventory	1,468	$ 1,360	2,932	$ 2,718
Expensed to general and administrative	407	381	817	755
Total depreciation and amortization	1,875	$ 1,741	3,749	3,473
Area of apple orchards | a					36
Assets held for sale	600		600
Impairment charges			24	$ 0
Land and improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	46,164		46,164			46,566
Buildings and improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	59,300		$ 59,300			58,946
Buildings and improvements | Minimum
Property, Plant and Equipment [Line Items]
Depreciable Lives			20 years
Buildings and improvements | Maximum
Property, Plant and Equipment [Line Items]
Depreciable Lives			40 years
Winery and vineyard equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	38,062		$ 38,062			38,631
Winery and vineyard equipment | Minimum
Property, Plant and Equipment [Line Items]
Depreciable Lives			3 years
Winery and vineyard equipment | Maximum
Property, Plant and Equipment [Line Items]
Depreciable Lives			25 years
Vineyards, orchards and improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	36,530		$ 36,530			37,090
Vineyards, orchards and improvements | Minimum
Property, Plant and Equipment [Line Items]
Depreciable Lives			7 years
Vineyards, orchards and improvements | Maximum
Property, Plant and Equipment [Line Items]
Depreciable Lives			25 years
Caves
Property, Plant and Equipment [Line Items]
Property and equipment, gross	5,639		$ 5,639			5,639
Caves | Minimum
Property, Plant and Equipment [Line Items]
Depreciable Lives			20 years
Caves | Maximum
Property, Plant and Equipment [Line Items]
Depreciable Lives			40 years
Vineyards under development
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,814		$ 2,814			3,353
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 3,471		$ 3,471			$ 1,814

Financial Instruments (Narrativ

Financial Instruments (Narrative) (Details) - USD ($)	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Investment maturity period	2 years
Gross unrealized losses on available-for-sale securities	$ (46,000)	$ (46,000)
Assets measured at fair value	0	0
Liabilities measured at fair value	0	0
Fair value of outstanding debt	21,500,000
Carrying value of outstanding debt	$ 24,025,000	$ 24,595,000

Financial Instruments (Schedule

Financial Instruments (Schedule Of Available For Sale Securities) (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Schedule of Available-for-sale Securities [Line Items]
Par Value		$ 20,000,000
Amortized Cost		20,000,000
Gross Unrealized Gains		2,000
Gross Unrealized Losses	$ (46,000)	(46,000)
Total Fair Value Measurements		19,956,000
Level 1
Schedule of Available-for-sale Securities [Line Items]
Total Fair Value Measurements		5,999,000
Level 2
Schedule of Available-for-sale Securities [Line Items]
Total Fair Value Measurements		13,957,000
Certificates of Deposit
Schedule of Available-for-sale Securities [Line Items]
Par Value	16,250,000	14,000,000
Amortized Cost	16,250,000	14,000,000
Gross Unrealized Gains	0	2,000
Gross Unrealized Losses	(68,000)	(45,000)
Total Fair Value Measurements	16,182,000	13,957,000
Certificates of Deposit | Level 1
Schedule of Available-for-sale Securities [Line Items]
Total Fair Value Measurements	0	0
Certificates of Deposit | Level 2
Schedule of Available-for-sale Securities [Line Items]
Total Fair Value Measurements	$ 16,182,000	13,957,000
U.S. Treasury Note
Schedule of Available-for-sale Securities [Line Items]
Par Value		6,000,000
Amortized Cost		6,000,000
Gross Unrealized Losses		(1,000)
Total Fair Value Measurements		5,999,000
U.S. Treasury Note | Level 1
Schedule of Available-for-sale Securities [Line Items]
Total Fair Value Measurements		5,999,000
U.S. Treasury Note | Level 2
Schedule of Available-for-sale Securities [Line Items]
Total Fair Value Measurements		$ 0

Intangible and Other Non-Curr40

Intangible and Other Non-Current Assets (Summary Of Intangible Assets) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 23,050		$ 23,050		$ 23,050
Accumulated amortization	10,837		10,837		10,081
Net book value	12,213		12,213		12,969
Other non-current assets	299		299		245
Total intangible and other non-current assets, net	12,512		12,512		13,214
Total amortization expense	366	$ 390	756	$ 779
Brand
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	18,000		18,000		18,000
Accumulated amortization	7,373		7,373		6,841
Net book value	10,627		$ 10,627		11,159
Brand | Minimum
Finite-Lived Intangible Assets [Line Items]
Amortizable lives (in years)			15 years
Brand | Maximum
Finite-Lived Intangible Assets [Line Items]
Amortizable lives (in years)			17 years
Distributor relationships
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	2,700		$ 2,700		2,700
Accumulated amortization	1,340		1,340		1,242
Net book value	1,360		$ 1,360		1,458
Distributor relationships | Minimum
Finite-Lived Intangible Assets [Line Items]
Amortizable lives (in years)			10 years
Distributor relationships | Maximum
Finite-Lived Intangible Assets [Line Items]
Amortizable lives (in years)			14 years
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Amortizable lives (in years)			7 years
Gross carrying amount	1,900		$ 1,900		1,900
Accumulated amortization	1,900		1,900		1,787
Net book value	0		$ 0		113
Legacy permits
Finite-Lived Intangible Assets [Line Items]
Amortizable lives (in years)			14 years
Gross carrying amount	250		$ 250		250
Accumulated amortization	126		126		118
Net book value	124		$ 124		132
Trademark
Finite-Lived Intangible Assets [Line Items]
Amortizable lives (in years)			20 years
Gross carrying amount	200		$ 200		200
Accumulated amortization	98		98		93
Net book value	$ 102		$ 102		$ 107

Intangible and Other Non-Curr41

Intangible and Other Non-Current Assets (Amortization expense for Intangible Assets) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2018	$ 646
2,019	1,286
2,020	1,286
2,021	1,286
2,022	1,286
Thereafter	6,423
Net book value	$ 12,213	$ 12,969

Accounts Payable and Accrued 42

Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Payables and Accruals [Abstract]
Accrued compensation related expenses	$ 2,156	$ 5,412
Accounts payable	1,185	2,225
Sales and marketing	507	324
Production and farming	403	307
Litigation settlement accrual	390	390
Accrued interest	317	324
Depletion allowance	195	608
Contingent liability related to Seven Hills Winery	140	308
Acquisition of property and equipment	114	264
Other accrued expenses	533	161
Total accounts payable and accrued liabilities	$ 5,940	$ 10,323

Debt (Schedule of Debt) (Detail

Debt (Schedule of Debt) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 29, 2017	Nov. 10, 2015
Debt Instrument [Line Items]
Current	$ 1,140	$ 1,140
Long-term	22,885	23,455
Total	24,025	24,595
Unamortized loan fees, current portion	(15)	(15)
Unamortized loan fees, noncurrent portion	(142)	(150)
Unamortized loan fees, total	(157)	(165)
Current portion of long-term debt, net of unamortized loan fees	1,125	1,125
Long-term debt, net of current portion and unamortized loan fees	22,743	23,305
Total debt, net of unamortized loan fees	23,868	24,430
Secured Debt | 2015 Term Loan
Debt Instrument [Line Items]
Current	640	640
Long-term	13,760	14,080
Total	14,400	14,720
Unamortized loan fees, total	$ (100)
Interest Rate	5.24%			5.24%
Secured Debt | 2017 Term Loan
Debt Instrument [Line Items]
Current	$ 500	500
Long-term	9,125	9,375
Total	9,625	$ 9,875
Unamortized loan fees, total	$ (100)
Interest Rate	5.39%		5.39%

Debt (Narrative) (Details)

Debt (Narrative) (Details) - USD ($)	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017	Jun. 29, 2017	Nov. 10, 2015	Mar. 31, 2013
Line of Credit Facility [Line Items]
Unamortized loan fees	$ 157,000	$ 165,000
Minimum
Line of Credit Facility [Line Items]
Unused line fee (percent)	0.15%
Maximum
Line of Credit Facility [Line Items]
Unused line fee (percent)	0.25%
Secured Debt | 2015 Term Loan
Line of Credit Facility [Line Items]
Principal amount	$ 14,400,000			$ 16,000,000
Interest Rate	5.24%			5.24%
Maturity date	Oct. 1, 2040
Principal payment	$ 160,000
Debt issuance cost	100,000
Unamortized loan fees	100,000
Secured Debt | 2017 Term Loan
Line of Credit Facility [Line Items]
Principal amount	$ 9,600,000		$ 10,000,000
Interest Rate	5.39%		5.39%
Principal payment	$ 125,000
Debt issuance cost	100,000
Unamortized loan fees	100,000
Revolving Credit Facility
Line of Credit Facility [Line Items]
Credit facility borrowing capacity	$ 10,000,000
Credit facility term	5 years
Revolving Credit Facility | 2015 Term Loan
Line of Credit Facility [Line Items]
Credit facility borrowing capacity					$ 60,000,000
Borrowed amount	$ 0
Term Revolving Credit Facility
Line of Credit Facility [Line Items]
Credit facility borrowing capacity	$ 50,000,000
Credit facility term	15 years

Debt Debt (Long-term Debt Matur

Debt Debt (Long-term Debt Maturities) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Maturities of Long-term Debt [Abstract]
Principal due the remainder of 2018	$ 570
Principal due in 2019	1,140
Principal due in 2020	1,140
Principal due in 2021	1,140
Principal due in 2022	1,140
Principal due thereafter	18,895
Total	$ 24,025	$ 24,595

Stockholders_ Equity (Details)

Stockholders’ Equity (Details) - 2018 Repurchase Program - USD ($)	5 Months Ended	64 Months Ended
	Aug. 03, 2018	Jun. 30, 2018	Mar. 31, 2018
Equity, Class of Treasury Stock [Line Items]
Share repurchase program amount authorized (up to)			$ 2,000,000
Repurchased shares retired (in shares)		61,377
Shares retired repurchase cost		$ 600,000
Subsequent Event
Equity, Class of Treasury Stock [Line Items]
Repurchased shares retired (in shares)	124,907
Shares retired repurchase cost	$ 1,200,000

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Effective tax rate	29.00%	39.00%	29.60%	38.70%
Unrecognized tax benefits	$ 0		$ 0		$ 0

Business Segment Information (N

Business Segment Information (Narrative) (Details)	6 Months Ended
	Jun. 30, 2018segments
Segment Reporting [Abstract]
Number of operating segments	2

Business Segment Information (S

Business Segment Information (Schedule Of Segment Reporting) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Net sales	$ 17,282	$ 15,007	$ 30,511	$ 29,856
Cost of sales	8,664	7,064	15,538	14,128
Gross profit	8,618	7,943	14,973	15,728
Operating expenses:
Sales and marketing	4,002	3,903	8,051	7,852
General and administrative	2,623	2,637	5,329	5,225
Total operating expenses	6,625	6,540	13,380	13,077
Net loss (gain) on disposal of property and equipment	94	1	105	(1)
Restructuring costs	160	0	592	0
Income from operations	1,739	1,402	896	2,652
Operating Segments | Wholesale
Segment Reporting Information [Line Items]
Net sales	9,956	7,807	17,446	16,828
Cost of sales	5,469	4,332	9,979	9,164
Gross profit	4,487	3,475	7,467	7,664
Operating expenses:
Sales and marketing	1,485	1,441	3,165	3,110
General and administrative	0	0	0	0
Total operating expenses	1,485	1,441	3,165	3,110
Net loss (gain) on disposal of property and equipment	0	0	0	0
Restructuring costs	0	0	0	0
Income from operations	3,002	2,034	4,302	4,554
Operating Segments | Direct to Consumer
Segment Reporting Information [Line Items]
Net sales	6,127	6,036	11,130	11,131
Cost of sales	1,999	1,912	3,652	3,429
Gross profit	4,128	4,124	7,478	7,702
Operating expenses:
Sales and marketing	1,609	1,709	3,126	3,198
General and administrative	0	0	0	0
Total operating expenses	1,609	1,709	3,126	3,198
Net loss (gain) on disposal of property and equipment	0	0	0	0
Restructuring costs	0	0	0	0
Income from operations	2,519	2,415	4,352	4,504
Other/Non-Allocable
Segment Reporting Information [Line Items]
Net sales	1,199	1,164	1,935	1,897
Cost of sales	1,196	820	1,907	1,535
Gross profit	3	344	28	362
Operating expenses:
Sales and marketing	908	753	1,760	1,544
General and administrative	2,623	2,637	5,329	5,225
Total operating expenses	3,531	3,390	7,089	6,769
Net loss (gain) on disposal of property and equipment	94	1	105	(1)
Restructuring costs	160	0	592	0
Income from operations	$ (3,782)	$ (3,047)	$ (7,758)	$ (6,406)

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Feb. 05, 2018USD ($)
Commitments and Contingencies Disclosure [Abstract]
Amount settled in mediation	$ 0.4