Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 27, 2017 | |
Document and Entity [Abstract] | ||
Entity Registrant Name | CRAFT BREW ALLIANCE, INC. | |
Entity Central Index Key | 892,222 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 19,293,775 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 2,034 | $ 442 |
Accounts receivable, net | 27,342 | 24,008 |
Inventory, net | 15,493 | 19,091 |
Assets held for sale | 23,622 | 0 |
Other current assets | 3,588 | 2,495 |
Total current assets | 72,079 | 46,036 |
Property, equipment and leasehold improvements, net | 105,134 | 121,970 |
Goodwill | 12,917 | 12,917 |
Intangible Assets, Net, Excluding Goodwill, And Other Assets | 19,061 | 19,482 |
Total assets | 209,191 | 200,405 |
Current liabilities: | ||
Accounts payable | 26,600 | 16,076 |
Accrued salaries, wages and payroll taxes | 4,918 | 4,967 |
Refundable deposits | 6,690 | 6,486 |
Other accrued expenses | 7,544 | 4,108 |
Current portion of long-term debt and capital lease obligations | 1,599 | 1,317 |
Total current liabilities | 47,351 | 32,954 |
Long-term debt and capital lease obligations, net of current portion | 21,826 | 27,946 |
Fair value of derivative financial instruments | 346 | 424 |
Deferred income tax liability, net | 17,832 | 18,181 |
Other liabilities | 1,549 | 1,239 |
Total liabilities | 88,904 | 80,744 |
Commitments and contingencies (Note 11) | ||
Common shareholders' equity: | ||
Common stock, $0.005 par value. Authorized 50,000,000 shares; issued and outstanding 19,293,775 and 19,261,245 | 96 | 96 |
Additional paid-in capital | 141,328 | 140,687 |
Accumulated other comprehensive loss | (214) | (262) |
Accumulated deficit | (20,923) | (20,860) |
Total common shareholders' equity | 120,287 | 119,661 |
Total liabilities and common shareholders' equity | $ 209,191 | $ 200,405 |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
Common shareholders' equity: | ||
Common stock, par value (in dollars per share) | $ 0.005 | $ 0.005 |
Common stock, authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, issued (in shares) | 19,293,775 | 19,261,245 |
Common shares outstanding (in shares) | 19,293,775 | 19,261,245 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||||
Sales | $ 64,204 | $ 66,294 | $ 110,970 | $ 108,087 |
Less excise taxes | 3,654 | 4,016 | 6,118 | 6,587 |
Net sales | 60,550 | 62,278 | 104,852 | 101,500 |
Cost of sales | 42,221 | 41,780 | 73,854 | 72,285 |
Gross profit | 18,329 | 20,498 | 30,998 | 29,215 |
Selling, general and administrative expenses | 15,560 | 16,548 | 31,029 | 30,472 |
Operating income (loss) | 2,769 | 3,950 | (31) | (1,257) |
Interest expense | (173) | (187) | (354) | (334) |
Other income, net | 10 | 6 | 13 | 12 |
Income (loss) before income taxes | 2,606 | 3,769 | (372) | (1,579) |
Income tax provision (benefit) | 882 | 1,508 | (309) | (631) |
Net income (loss) | $ 1,724 | $ 2,261 | $ (63) | $ (948) |
Basic and diluted net loss per share (usd per share) | $ 0.09 | $ 0.12 | $ 0 | $ (0.05) |
Shares used in basic diluted per share calculations (in shares) | 19,278 | 19,216 | 19,270 | 19,198 |
Shares used in diluted per share calculations (in shares) | 19,389 | 19,232 | 19,270 | 19,198 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 1,724 | $ 2,261 | $ (63) | $ (948) |
Unrealized gain (loss) on derivative hedge transactions, net of tax | (3) | (68) | 48 | (274) |
Comprehensive income (loss) | $ 1,721 | $ 2,193 | $ (15) | $ (1,222) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (63) | $ (948) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 5,468 | 5,362 |
Loss on sale or disposal of Property, equipment and leasehold improvements | 146 | 9 |
Deferred income taxes | (378) | (664) |
Stock-based compensation | 554 | 309 |
Other | 875 | (73) |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (3,334) | (8,404) |
Inventories | 3,323 | (5,034) |
Other current assets | (1,093) | (327) |
Accounts payable and other accrued expenses | 7,299 | 8,051 |
Accrued salaries, wages and payroll taxes | (49) | (1,086) |
Refundable deposits | (397) | 625 |
Net cash provided by (used in) operating activities | 12,351 | (2,180) |
Cash flows from investing activities: | ||
Expenditures for Property, equipment and leasehold improvements | (4,920) | (9,220) |
Proceeds from sale of Property, equipment and leasehold improvements | 91 | 8 |
Net cash used in investing activities | (4,829) | (9,212) |
Cash flows from financing activities: | ||
Principal payments on debt and capital lease obligations | (261) | (350) |
Net borrowings (repayments) under revolving line of credit | (5,756) | 11,237 |
Proceeds from issuances of common stock | 87 | 0 |
Tax payments related to stock-based awards | 0 | (71) |
Net cash provided by (used in) financing activities | (5,930) | 10,816 |
Increase (decrease) in Cash and cash equivalents | 1,592 | (576) |
Cash and cash equivalents: | ||
Beginning of period | 442 | 911 |
End of period | 2,034 | 335 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 363 | 300 |
Cash paid for income taxes, net | 176 | 80 |
Supplemental disclosure of non-cash information: | ||
Purchases of Property, equipment and leasehold improvements with capital leases | 180 | 673 |
Purchases of Property, equipment and leasehold improvements included in Accounts payable at end of period | $ 7,550 | $ 1,550 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements and related notes should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016 (“ 2016 Annual Report”). These consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements are unaudited but, in the opinion of management, reflect all material adjustments necessary to present fairly our consolidated financial position, results of operations and cash flows for the periods presented. All such adjustments were of a normal, recurring nature. The results of operations for such interim periods are not necessarily indicative of the results of operations for the full year. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements ASU 2017-09 In May 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-09, "Compensation - Stock Compensation (Topic 718) - Scope of Modification Accounting." ASU 2017-09 provided clarity and is expected to reduce both diversity in practice and the cost and complexity when accounting for a change to the terms of a stock-based award. ASU 2017-09 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2017, on a prospective basis. Early adoption is permitted. We do not expect the adoption of ASU 2017-09 to have a material effect on our financial position, results of operations or cash flows. ASU 2017-04 In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment." ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. An entity should perform its annual, or interim, goodwill impairment test 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, if applicable. The loss recognized should not exceed the total amount of goodwill allocated to the reporting unit. The same impairment test also applies to any reporting unit with a zero or negative carrying amount. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. ASU 2017-04 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2019, on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed after January 1, 2017. We do not expect the adoption of ASU 2017-04 to have a material effect on our financial position, results of operations or cash flows. ASU 2016-15 In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments." ASU 2016-15 addresses eight specific cash flow issues and how they should be reported on the statement of cash flows. ASU 2016-15 is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods, with early adoption permitted. We do not expect the adoption of ASU 2016-15 to have a material effect on our financial position, results of operations or cash flows. ASU 2016-13 In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326)." ASU 2016-13 addresses accounting for credit losses for assets that are not measured at fair value through net income on a recurring basis. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods, with early adoption permitted for fiscal years beginning after December 15, 2018. We do not expect the adoption of ASU 2016-13 to have a material effect on our financial position, results of operations or cash flows. ASU 2016-02 In February 2016, the FASB issued ASU 2016-02, "Leases." ASU 2016-02 increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and requires disclosing key information about leasing arrangements. ASU 2016-02 is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. We are still evaluating any potential impact that adoption of ASU 2016-02 may have on our financial position, results of operations or cash flows. ASU 2016-01 In January 2016, the FASB issued ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10).” ASU 2016-01 enhances the reporting model for financial instruments to provide users of financial statements with more decision-useful information by addressing certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The amendments simplify certain requirements and also reduce diversity in current practice for other requirements. ASU 2016-01 is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Except for the early application guidance specifically allowed in ASU 2016-01, early adoption is not permitted. We do not expect the adoption of ASU 2016-01 to have a material effect on our financial position, results of operations or cash flows. ASU 2015-17 In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740) - Balance Sheet Classification of Deferred Taxes.” ASU 2015-17 simplifies the presentation of deferred income taxes, and requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments apply to all entities that present a classified statement of financial position and aligns the presentation of deferred income tax assets and liabilities with International Financial Reporting Standards. ASU 2015-17 is effective for public companies for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. We adopted this new accounting standard retrospectively in the first quarter of 2017. As of June 30, 2017 and December 31, 2016, we had $2.6 million and $2.1 million , respectively, of current deferred tax assets that are now classified as noncurrent on the Consolidated Balance Sheets under this new accounting standard. ASU 2015-11 In July 2015, the FASB issued ASU No. 2015-11, "Simplifying the Measurement of Inventory (Topic 330)." ASU 2015-11 simplifies the accounting for the valuation of all inventory not accounted for using the last-in, first-out ("LIFO") method by prescribing that inventory be valued at the lower of cost and net realizable value. ASU 2015-11 is effective for financial statements issued for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016 on a prospective basis. The adoption of ASU 2015-11 in the first quarter of 2017 did not have a material effect on our financial position, results of operations or cash flows. ASU 2014-09, ASU 2016-10 and ASU 2016-12 In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09, as amended, affects any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). ASU 2014-09, as amended, is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. In April 2016, the FASB issued ASU 2016-10, "Revenue from Contracts with Customers (Topic 606) - Identifying Performance Obligations and Licensing." ASU 2016-10 clarifies aspects of Topic 606 related to identifying performance obligations and the licensing implementation guidance, while retaining the related core principles for those areas. The effective date and transition requirements for ASU 2016-10 are the same as the effective date and transition requirements in ASU 2014-09. In May 2016, the FASB issued ASU 2016-12, "Revenue from Contracts with Customers (Topic 606) - Narrow-Scope Improvements and Practical Expedients." ASU 2016-12 clarifies aspects of Topic 606 related to the guidance on assessing collectibility, presentation of sales taxes, non-cash consideration, and completed contracts and contract modifications. The effective date and transition requirements for ASU 2016-12 are the same as the effective date and transition requirements in ASU 2014-09. We are still evaluating the effects of the adoption of ASU 2014-09, ASU 2016-10 or ASU 2016-12 and are not yet able to determine if the adoption will have a material effect on our financial position, results of operations or cash flows. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 6 Months Ended |
Jun. 30, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents We maintain cash balances with financial institutions that may exceed federally insured limits. We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. As of June 30, 2017 and December 31, 2016 , we did not have any cash equivalents. As part of our cash management system, we use a controlled disbursement account to fund cash distribution checks presented for payment by the holder. Checks issued but not yet presented to banks may result in overdraft balances for accounting purposes. We did not have any bank overdrafts as of June 30, 2017 and, at December 31, 2016 , bank overdrafts totaled $1.1 million and were included in Accounts payable on our Consolidated Balance Sheets. Changes in bank overdrafts from period to period are reported in the Consolidated Statements of Cash Flows as a component of operating activities within Accounts payable and Other accrued expenses. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are stated at the lower of standard cost or net realizable value. We regularly review our inventories for the presence of obsolete product attributed to age, seasonality and quality. If our review indicates a reduction in utility below the product’s carrying value, we reduce the product to a new cost basis. We record the cost of inventory for which we estimate we have more than a twelve-month supply as a component of Intangible and other assets on our Consolidated Balance Sheets. Inventories consisted of the following (in thousands): June 30, December 31, Raw materials $ 5,855 $ 6,947 Work in process 1,863 2,996 Finished goods 5,787 6,601 Packaging materials 315 567 Promotional merchandise 1,072 1,353 Brewpub food, beverages and supplies 601 627 $ 15,493 $ 19,091 Work in process is beer held in fermentation tanks prior to the filtration and packaging process. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions As of both June 30, 2017 and December 31, 2016 , A-B owned approximately 31.5% of our outstanding common stock. Transactions with Anheuser-Busch, LLC (“A-B”), Ambev and Anheuser-Busch Worldwide Investments, LLC (“ABWI”) In December 2015, we partnered with Ambev, the Brazilian subsidiary of Anheuser-Busch InBev SA, to distribute Kona beers into Brazil. In August 2016, we also entered into an International Distribution Agreement with ABWI, an affiliate of A-B, pursuant to which ABWI will distribute our malt beverage products in jurisdictions outside the United States, subject to the terms and conditions of our agreement with our existing international distributor, CraftCan Travel LLC, and certain other limitations. Transactions with A-B, Ambev and ABWI consisted of the following (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 Gross sales to A-B and Ambev $ 49,144 $ 53,638 $ 81,785 $ 85,894 International distribution fee earned from ABWI 850 — 1,700 — Margin fee paid to A-B, classified as a reduction of Sales 669 456 1,157 814 Inventory management and other fees paid to A-B, classified in Cost of sales 101 105 192 191 Media and other reimbursement from A-B, classified as a reduction of Selling, general and administrative expenses 74 — 74 — Amounts due to or from A-B and ABWI were as follows (in thousands): June 30, December 31, Amounts due from A-B related to beer sales pursuant to the A-B distributor agreement $ 14,037 $ 12,246 Amounts due from ABWI and A-B related to international distribution fee and media and other reimbursement 2,583 3,750 Refundable deposits due to A-B (2,131 ) (2,162 ) Amounts due to A-B for services rendered (5,880 ) (1,782 ) Net amount due from A-B $ 8,609 $ 12,052 Operating Leases We lease our headquarters office space, restaurant and storage facilities located in Portland, land and certain equipment from two limited liability companies, both of whose members include our former Board Chair, who is also a significant shareholder, and his brother, who continues to be employed by us. Lease payments to these lessors were as follows (in thousands) and are included in the Rent expense under all operating leases above: Three Months Ended Six Months Ended 2017 2016 2017 2016 $ 31 $ 30 $ 61 $ 60 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. 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) and are included in the Rent expense under all operating leases above: Three Months Ended Six Months Ended 2017 2016 2017 2016 $ 145 $ 128 $ 288 $ 257 |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Interest Rate Swap Contracts Our risk management objectives are to ensure that business and financial exposures to risk that have been identified and measured are minimized using the most effective and efficient methods to reduce, transfer and, when possible, eliminate such exposures. Operating decisions contemplate associated risks and management strives to structure proposed transactions to avoid or reduce risk whenever possible. We have assessed our vulnerability to certain business and financial risks, including interest rate risk associated with our variable-rate long-term debt. To mitigate this risk, effective January 23, 2014, we entered into an interest rate swap contract with Bank of America, N.A. (“BofA”) for 75% of the Term Loan balance, to hedge the variability of interest payments associated with our variable-rate borrowings under our Term Loan with BofA. The Term Loan contract and the interest rate swap terminate on September 30, 2023 . The Term Loan contract had a total notional value of $7.1 million as of June 30, 2017 . Through this swap agreement, we pay interest at a fixed rate of 2.86% and receive interest at a floating-rate of the one-month LIBOR, which was 1.71% at June 30, 2017 . Effective January 4, 2016, we entered into a $9.1 million notional amount interest rate swap contract with BofA, which expires January 1, 2019 , to hedge the variability of interest payments associated with our variable-rate borrowings on our line of credit. The notional amount fluctuates based on a predefined schedule based on our anticipated borrowings. Through this swap agreement, we pay interest at a fixed rate of 1.28% and receive interest at a floating-rate of the one-month LIBOR, which was 1.71% at June 30, 2017 . Since the interest rate swaps hedge the variability of interest payments on variable rate debt with similar terms, they qualify for cash flow hedge accounting treatment. As of June 30, 2017 , unrealized net losses of $0.3 million were recorded in Accumulated other comprehensive loss as a result of these hedges. The effective portion of the gain or loss on the derivatives is reclassified into Interest expense in the same period during which we record Interest expense associated with the related debt. There was no hedge ineffectiveness during the first six months of 2017 or 2016 . The fair value of our derivative instruments was as follows (in thousands): Fair Value of Derivative Instruments June 30, December 31, Fair value of interest rate swaps $ (346 ) $ (424 ) The effect of our interest rate swap contracts that were accounted for as a derivative instrument on our Consolidated Statements of Operations was as follows (in thousands): Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in Accumulated OCI (Effective Portion) Location of Loss Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion) Three Months Ended 2017 $ (5 ) Interest expense $ 40 2016 $ (109 ) Interest expense $ 71 Six Months Ended 2017 $ 77 Interest expense $ 93 2016 $ (442 ) Interest expense $ 134 See also Note 7. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Factors used in determining the fair value of our financial assets and liabilities are summarized into three broad categories: • Level 1 – quoted prices in active markets for identical securities as of the reporting date; • Level 2 – other significant directly or indirectly observable inputs, including quoted prices for similar securities, interest rates, prepayment speeds and credit risk; and • Level 3 – significant inputs that are generally less observable than objective sources, including our own assumptions in determining fair value. The factors or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following table summarizes liabilities measured at fair value on a recurring basis (in thousands): Fair Value at June 30, 2017 Level 1 Level 2 Level 3 Total Interest rate swaps $ — $ (346 ) $ — $ (346 ) Fair Value at December 31, 2016 Interest rate swaps $ — $ (424 ) $ — $ (424 ) We did not have any assets measured at fair value on a recurring basis at June 30, 2017 or December 31, 2016 . The fair value of our interest rate swaps was based on quarterly statements from the issuing bank. There were no changes to our valuation techniques during the six months ended June 30, 2017 . We believe the carrying amounts of Cash and cash equivalents, Accounts receivable, Other current assets, Accounts payable, Accrued salaries, wages and payroll taxes, and Other accrued expenses are a reasonable approximation of the fair value of those financial instruments because of the nature of the underlying transactions and the short-term maturities involved. We had fixed-rate debt outstanding as follows (in thousands): June 30, December 31, Fixed-rate debt on balance sheet $ 876 $ 935 Estimated fair value of fixed-rate debt $ 889 $ 993 We calculate the estimated fair value of our fixed-rate debt using a discounted cash flow methodology. Using estimated current interest rates based on a similar risk profile and duration (Level 2), the fixed cash flows are discounted and summed to compute the fair value of the debt. |
Segment Results and Concentrati
Segment Results and Concentrations | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Results and Concentrations | Segment Results and Concentrations Our chief operating decision maker monitors Net sales and gross margins of our Beer Related operations and our Brewpubs operations. Beer Related operations include the brewing operations and related domestic and international beer and cider sales of our Kona, Widmer Brothers, Redhook and Omission beer brands and Square Mile cider brand. Brewpubs operations primarily include our brewpubs, 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. Net sales, Gross profit and gross margin information by segment was as follows (dollars in thousands): Three Months Ended June 30, 2017 Beer Brewpubs Total Net sales $ 53,435 $ 7,115 $ 60,550 Gross profit $ 17,620 $ 709 $ 18,329 Gross margin 33.0 % 10.0 % 30.3 % 2016 Net sales $ 54,832 $ 7,446 $ 62,278 Gross profit $ 19,369 $ 1,129 $ 20,498 Gross margin 35.3 % 15.2 % 32.9 % Six Months Ended June 30, 2017 Beer Brewpubs Total Net sales $ 91,286 $ 13,566 $ 104,852 Gross profit $ 29,890 $ 1,108 $ 30,998 Gross margin 32.7 % 8.2 % 29.6 % 2016 Net sales $ 87,311 $ 14,189 $ 101,500 Gross profit $ 27,223 $ 1,992 $ 29,215 Gross margin 31.2 % 14.0 % 28.8 % The segments use many of the same assets. For internal reporting purposes, we do not allocate assets by segment and, therefore, no asset by segment information is provided to our chief operating decision maker. 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 the following percentage of our Sales: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 76.8 % 80.2 % 74.2 % 78.7 % Receivables from A-B represented the following percentage of our Accounts receivable balance: June 30, December 31, 60.8 % 66.6 % |
Significant Stock-Based Plan Ac
Significant Stock-Based Plan Activity and Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Significant Stock-Based Plan Activity and Stock-Based Compensation | Significant Stock-Based Plan Activity and Stock-Based Compensation Stock-Based Compensation Expense Stock-based compensation expense was recognized in our Consolidated Statements of Operations as follows (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 Cost of sales $ 17 $ 20 $ 36 $ 34 Selling, general and administrative expense 180 269 518 275 Total stock-based compensation expense $ 197 $ 289 $ 554 $ 309 At June 30, 2017 , we had total unrecognized stock-based compensation expense of $2.6 million , which will be recognized over the weighted average remaining vesting period of 2.3 years . |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The reconciliation between the number of shares used for the basic and diluted per share calculations, as well as other related information, is as follows (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 Weighted average common shares used for basic EPS 19,278 19,216 19,270 19,198 Dilutive effect of stock-based awards 111 16 — — Shares used for diluted EPS 19,389 19,232 19,270 19,198 Stock-based awards not included in diluted per share calculations as they would be antidilutive 2 312 125 282 Because we were in a loss position for the six months ended June 30, 2017 and 2016, there is no difference between the number of shares used for the basic and diluted per share calculations. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies General We are subject to various claims and pending or threatened lawsuits in the normal course of business. Although we do not anticipate that the resolution of legal proceedings arising in the normal course of business or the proceeding described below will have a material adverse effect on our financial position, results of operations or cash flows, we cannot predict this with certainty. Legal On February 28, 2017 and March 6, 2017, respectively, two lawsuits, Sara Cilloni and Simone Zimmer v. Craft Brew Alliance, Inc., and Theodore Broomfield v. Kona Brewing Co. LLC, Kona Brew Enterprises, LLP, Kona Brewery LLC, and Craft Brew Alliance, Inc., were filed in the United States District Court for the Northern Division of California. On April 7, 2017, the two lawsuits were consolidated into a single complaint under the Broomfield case. The consolidated lawsuit purports to be a class action brought on behalf of all persons who purchased Kona Brewing Company beer within the relevant statute of limitations period. The lawsuit alleges that the defendants misled customers regarding the state in which Kona Brewing Company beers are manufactured and in describing Kona Brewing Company beer as “craft beer.” We intend to vigorously defend against the foregoing action and, on April 28, 2017, we filed a motion to dismiss the complaint. We have not recorded any liabilities with respect to the claims. |
Termination of Pabst Agreements
Termination of Pabst Agreements | 6 Months Ended |
Jun. 30, 2017 | |
Contractors [Abstract] | |
Termination of Pabst Agreements | Termination of Pabst Agreements Termination of Agreements with Pabst Effective May 1, 2017 , we reached an agreement with Pabst Brewing Company, LLC, and Pabst Northwest Brewing Company, LLC (collectively, "Pabst") to terminate the brewing agreements that provided for brewing selected brands owned by Pabst at our brewery in Woodinville, Washington, through December 31, 2018 . In conjunction with the termination of the brewing arrangements, Pabst's option to purchase the Woodinville brewery and adjacent pub pursuant to the Option and Agreement of Purchase and Sale dated as of January 8, 2016 (the "Option Agreement”) was also terminated. Pabst agreed to pay us $2.7 million in connection with the termination of the brewing agreements and Option Agreement. This payment is in addition to the $1.6 million of contract brewing volume shortfall fees for the 2016 calendar year recognized in the fourth quarter of 2016 and $1.7 million related to remaining volume shortfalls for the 2016 - 2017 contract year ended March 31, 2017, recognized in the first quarter of 2017. We have deferred recognition of the termination payment for the brewing agreements and Option Agreement in our Statements of Operations due to our potential obligation to pay Pabst up to $2.7 million if an agreement to sell the brewery to a specified buyer is entered into by December 31, 2017 . We are under no obligation to enter into such a sales agreement. Ceasing Production at our Woodinville, Washington Brewery We ceased production at our Woodinville, Washington brewery as of July 1, 2017 . As a result, we incurred approximately $250,000 in incremental employee and severance related costs, which was recorded in our Consolidated Statements of Operations during the second quarter of 2017. We expect to incur up to $250,000 in additional expense during the second half of 2017 to safely and properly prepare the brewing equipment to become idle, which will be expensed as incurred. See Note 13 for a discussion of the classification of the assets related to our Woodinville brewery as assets held for sale. |
Assets Held for Sale
Assets Held for Sale | 6 Months Ended |
Jun. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held for Sale | Assets Held for Sale Designating the Woodinville, Washington Brewery as Held for Sale We designated our Woodinville, Washington brewery as held for sale on May 1, 2017 and, accordingly, we ceased depreciating such assets and recorded them on our Consolidated Balance Sheets at the lower of carrying value or fair value less estimated selling costs. We expect to sell the Woodinville property, including the adjacent pub, within 12 months. The proximity to our largest and most efficient owned brewery in Portland, Oregon, which recently underwent a capacity expansion, as well as the decrease in our contract brewing volume, has made our Woodinville capacity redundant. Production volume from our Woodinville brewery has been transferred to our Portland brewery. We plan to continue operating the adjacent pub pending sale. Assets held for sale were as follows (in thousands): June 30, Brewery equipment $ 7,128 Buildings 12,562 Land and improvements 3,451 Furniture, fixtures and other equipment 457 Construction in progress 24 $ 23,622 |
Recent Accounting Pronounceme20
Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | Recent Accounting Pronouncements ASU 2017-09 In May 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-09, "Compensation - Stock Compensation (Topic 718) - Scope of Modification Accounting." ASU 2017-09 provided clarity and is expected to reduce both diversity in practice and the cost and complexity when accounting for a change to the terms of a stock-based award. ASU 2017-09 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2017, on a prospective basis. Early adoption is permitted. We do not expect the adoption of ASU 2017-09 to have a material effect on our financial position, results of operations or cash flows. ASU 2017-04 In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment." ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. An entity should perform its annual, or interim, goodwill impairment test 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, if applicable. The loss recognized should not exceed the total amount of goodwill allocated to the reporting unit. The same impairment test also applies to any reporting unit with a zero or negative carrying amount. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. ASU 2017-04 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2019, on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed after January 1, 2017. We do not expect the adoption of ASU 2017-04 to have a material effect on our financial position, results of operations or cash flows. ASU 2016-15 In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments." ASU 2016-15 addresses eight specific cash flow issues and how they should be reported on the statement of cash flows. ASU 2016-15 is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods, with early adoption permitted. We do not expect the adoption of ASU 2016-15 to have a material effect on our financial position, results of operations or cash flows. ASU 2016-13 In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326)." ASU 2016-13 addresses accounting for credit losses for assets that are not measured at fair value through net income on a recurring basis. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods, with early adoption permitted for fiscal years beginning after December 15, 2018. We do not expect the adoption of ASU 2016-13 to have a material effect on our financial position, results of operations or cash flows. ASU 2016-02 In February 2016, the FASB issued ASU 2016-02, "Leases." ASU 2016-02 increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and requires disclosing key information about leasing arrangements. ASU 2016-02 is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. We are still evaluating any potential impact that adoption of ASU 2016-02 may have on our financial position, results of operations or cash flows. ASU 2016-01 In January 2016, the FASB issued ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10).” ASU 2016-01 enhances the reporting model for financial instruments to provide users of financial statements with more decision-useful information by addressing certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The amendments simplify certain requirements and also reduce diversity in current practice for other requirements. ASU 2016-01 is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Except for the early application guidance specifically allowed in ASU 2016-01, early adoption is not permitted. We do not expect the adoption of ASU 2016-01 to have a material effect on our financial position, results of operations or cash flows. ASU 2015-17 In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740) - Balance Sheet Classification of Deferred Taxes.” ASU 2015-17 simplifies the presentation of deferred income taxes, and requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments apply to all entities that present a classified statement of financial position and aligns the presentation of deferred income tax assets and liabilities with International Financial Reporting Standards. ASU 2015-17 is effective for public companies for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. We adopted this new accounting standard retrospectively in the first quarter of 2017. As of June 30, 2017 and December 31, 2016, we had $2.6 million and $2.1 million , respectively, of current deferred tax assets that are now classified as noncurrent on the Consolidated Balance Sheets under this new accounting standard. ASU 2015-11 In July 2015, the FASB issued ASU No. 2015-11, "Simplifying the Measurement of Inventory (Topic 330)." ASU 2015-11 simplifies the accounting for the valuation of all inventory not accounted for using the last-in, first-out ("LIFO") method by prescribing that inventory be valued at the lower of cost and net realizable value. ASU 2015-11 is effective for financial statements issued for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016 on a prospective basis. The adoption of ASU 2015-11 in the first quarter of 2017 did not have a material effect on our financial position, results of operations or cash flows. ASU 2014-09, ASU 2016-10 and ASU 2016-12 In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09, as amended, affects any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). ASU 2014-09, as amended, is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. In April 2016, the FASB issued ASU 2016-10, "Revenue from Contracts with Customers (Topic 606) - Identifying Performance Obligations and Licensing." ASU 2016-10 clarifies aspects of Topic 606 related to identifying performance obligations and the licensing implementation guidance, while retaining the related core principles for those areas. The effective date and transition requirements for ASU 2016-10 are the same as the effective date and transition requirements in ASU 2014-09. In May 2016, the FASB issued ASU 2016-12, "Revenue from Contracts with Customers (Topic 606) - Narrow-Scope Improvements and Practical Expedients." ASU 2016-12 clarifies aspects of Topic 606 related to the guidance on assessing collectibility, presentation of sales taxes, non-cash consideration, and completed contracts and contract modifications. The effective date and transition requirements for ASU 2016-12 are the same as the effective date and transition requirements in ASU 2014-09. We are still evaluating the effects of the adoption of ASU 2014-09, ASU 2016-10 or ASU 2016-12 and are not yet able to determine if the adoption will have a material effect on our financial position, results of operations or cash flows. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following (in thousands): June 30, December 31, Raw materials $ 5,855 $ 6,947 Work in process 1,863 2,996 Finished goods 5,787 6,601 Packaging materials 315 567 Promotional merchandise 1,072 1,353 Brewpub food, beverages and supplies 601 627 $ 15,493 $ 19,091 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Transactions with Anheuser-Busch, LLC (A-B), Ambev and Anheuser-Busch Worldwide Investments, LLC (ABWI) | Three Months Ended Six Months Ended 2017 2016 2017 2016 Gross sales to A-B and Ambev $ 49,144 $ 53,638 $ 81,785 $ 85,894 International distribution fee earned from ABWI 850 — 1,700 — Margin fee paid to A-B, classified as a reduction of Sales 669 456 1,157 814 Inventory management and other fees paid to A-B, classified in Cost of sales 101 105 192 191 Media and other reimbursement from A-B, classified as a reduction of Selling, general and administrative expenses 74 — 74 — Amounts due to or from A-B and ABWI were as follows (in thousands): June 30, December 31, Amounts due from A-B related to beer sales pursuant to the A-B distributor agreement $ 14,037 $ 12,246 Amounts due from ABWI and A-B related to international distribution fee and media and other reimbursement 2,583 3,750 Refundable deposits due to A-B (2,131 ) (2,162 ) Amounts due to A-B for services rendered (5,880 ) (1,782 ) Net amount due from A-B $ 8,609 $ 12,052 |
Lease payments to lessors | Lease payments to this lessor were as follows (in thousands) and are included in the Rent expense under all operating leases above: Three Months Ended Six Months Ended 2017 2016 2017 2016 $ 145 $ 128 $ 288 $ 257 Three Months Ended Six Months Ended 2017 2016 2017 2016 $ 31 $ 30 $ 61 $ 60 |
Derivative Financial Instrume23
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair value of derivative instrument | The fair value of our derivative instruments was as follows (in thousands): Fair Value of Derivative Instruments June 30, December 31, Fair value of interest rate swaps $ (346 ) $ (424 ) |
Effect of interest rate swap contract on Consolidated Statements of Operations | The effect of our interest rate swap contracts that were accounted for as a derivative instrument on our Consolidated Statements of Operations was as follows (in thousands): Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in Accumulated OCI (Effective Portion) Location of Loss Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion) Three Months Ended 2017 $ (5 ) Interest expense $ 40 2016 $ (109 ) Interest expense $ 71 Six Months Ended 2017 $ 77 Interest expense $ 93 2016 $ (442 ) Interest expense $ 134 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured on recurring basis | The following table summarizes liabilities measured at fair value on a recurring basis (in thousands): Fair Value at June 30, 2017 Level 1 Level 2 Level 3 Total Interest rate swaps $ — $ (346 ) $ — $ (346 ) Fair Value at December 31, 2016 Interest rate swaps $ — $ (424 ) $ — $ (424 ) |
Fixed-rate debt | We had fixed-rate debt outstanding as follows (in thousands): June 30, December 31, Fixed-rate debt on balance sheet $ 876 $ 935 Estimated fair value of fixed-rate debt $ 889 $ 993 |
Segment Results and Concentra25
Segment Results and Concentrations (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Net sales, gross profit and gross margin by segment | Net sales, Gross profit and gross margin information by segment was as follows (dollars in thousands): Three Months Ended June 30, 2017 Beer Brewpubs Total Net sales $ 53,435 $ 7,115 $ 60,550 Gross profit $ 17,620 $ 709 $ 18,329 Gross margin 33.0 % 10.0 % 30.3 % 2016 Net sales $ 54,832 $ 7,446 $ 62,278 Gross profit $ 19,369 $ 1,129 $ 20,498 Gross margin 35.3 % 15.2 % 32.9 % Six Months Ended June 30, 2017 Beer Brewpubs Total Net sales $ 91,286 $ 13,566 $ 104,852 Gross profit $ 29,890 $ 1,108 $ 30,998 Gross margin 32.7 % 8.2 % 29.6 % 2016 Net sales $ 87,311 $ 14,189 $ 101,500 Gross profit $ 27,223 $ 1,992 $ 29,215 Gross margin 31.2 % 14.0 % 28.8 % |
Concentration risks | Sales to wholesalers through the A-B distributor agreement represented the following percentage of our Sales: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 76.8 % 80.2 % 74.2 % 78.7 % Receivables from A-B represented the following percentage of our Accounts receivable balance: June 30, December 31, 60.8 % 66.6 % |
Significant Stock-Based Plan 26
Significant Stock-Based Plan Activity and Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based compensation expense | Stock-based compensation expense was recognized in our Consolidated Statements of Operations as follows (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 Cost of sales $ 17 $ 20 $ 36 $ 34 Selling, general and administrative expense 180 269 518 275 Total stock-based compensation expense $ 197 $ 289 $ 554 $ 309 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation of shares used for basic and diluted earnings per share | The reconciliation between the number of shares used for the basic and diluted per share calculations, as well as other related information, is as follows (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 Weighted average common shares used for basic EPS 19,278 19,216 19,270 19,198 Dilutive effect of stock-based awards 111 16 — — Shares used for diluted EPS 19,389 19,232 19,270 19,198 Stock-based awards not included in diluted per share calculations as they would be antidilutive 2 312 125 282 |
Assets Held for Sale (Tables)
Assets Held for Sale (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held-for-sale | Assets held for sale were as follows (in thousands): June 30, Brewery equipment $ 7,128 Buildings 12,562 Land and improvements 3,451 Furniture, fixtures and other equipment 457 Construction in progress 24 $ 23,622 |
Recent Accounting Pronounceme29
Recent Accounting Pronouncements (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Accounting Standards Update 2015-17 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Current deferred tax assets | $ (2.6) | $ (2.1) |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Cash and Cash Equivalents [Abstract] | ||
Cash equivalents | $ 0 | $ 0 |
Bank overdraft | $ 1,100,000 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Inventories details [Abstract] | ||
Raw materials | $ 5,855 | $ 6,947 |
Work in process | 1,863 | 2,996 |
Finished goods | 5,787 | 6,601 |
Packaging materials | 315 | 567 |
Promotional merchandise | 1,072 | 1,353 |
Brewpub food, beverages and supplies | 601 | 627 |
Total inventories | $ 15,493 | $ 19,091 |
Related Party Transactions - Tr
Related Party Transactions - Transactions with Anheuser-Busch, LLC (A-B), Ambev and Anheuser-Busch Worldwide Investments, LLC (ABWI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||||
Percentage of stock owned by A-B | 31.50% | 31.50% | 31.50% | ||
Affiliated entity | Anheuser-Busch, LLC (A-B) and Ambev | |||||
Related Party Transaction [Line Items] | |||||
Gross sales to A-B | $ 49,144 | $ 53,638 | $ 81,785 | $ 85,894 | |
Affiliated entity | Anheuser-Busch Worldwide Investments, LLC (ABWI) | |||||
Related Party Transaction [Line Items] | |||||
Gross sales to A-B | 850 | 0 | 1,700 | 0 | |
Affiliated entity | Anheuser-Busch, LLC | |||||
Related Party Transaction [Line Items] | |||||
Margin fee paid to A-B, classified as a reduction of Sales | 669 | 456 | 1,157 | 814 | |
Inventory management and other fees paid to A-B, classified in Cost of sales | 101 | 105 | |||
Amounts due to or from Anheuser-Busch, LLC [Abstract] | |||||
Net amount due from A-B | 8,609 | 8,609 | $ 12,052 | ||
Affiliated entity | Anheuser-Busch, LLC | Fees Due Related To Beer Sales [Member] | |||||
Related Party Transaction [Line Items] | |||||
Due from Related Parties | 14,037 | 14,037 | 12,246 | ||
Affiliated entity | Anheuser-Busch, LLC | Inventory Management And Other Fees Classified In Cost Of Sales [Member] | |||||
Related Party Transaction [Line Items] | |||||
Inventory management and other fees paid to A-B, classified in Cost of sales | 192 | 191 | |||
Affiliated entity | Anheuser-Busch, LLC | Refundable deposits | |||||
Amounts due to or from Anheuser-Busch, LLC [Abstract] | |||||
Amounts due to A-B | (2,131) | (2,131) | (2,162) | ||
Affiliated entity | Anheuser-Busch, LLC | Services rendered | |||||
Amounts due to or from Anheuser-Busch, LLC [Abstract] | |||||
Amounts due to A-B | (5,880) | (5,880) | (1,782) | ||
Affiliated entity | Anheuser-Busch, LLC | Media Reimbursement Classified As Reduction Of Selling, General, And Administrative Expenses [Member] | |||||
Related Party Transaction [Line Items] | |||||
Inventory management and other fees paid to A-B, classified in Cost of sales | 74 | $ 0 | 74 | $ 0 | |
Affiliated entity | Anheuser-Busch Worldwide Investments, LLC (ABWI) And Anheuser Busch, LLC (A-B) [Member] | Fees Due Related To International Distribution Fee And Media Reimbursement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Due from Related Parties | $ 2,583 | $ 2,583 | $ 3,750 |
Related Party Transactions - Op
Related Party Transactions - Operating Leases (Details) - Affiliated entity $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)periodcompany | Jun. 30, 2016USD ($) | |
Operating lease, Portland, Oregon | ||||
Related Party Transaction [Line Items] | ||||
Number of limited liability companies | company | 2 | |||
Lease payments to lessors [Abstract] | ||||
Total lease payments to lessors | $ 31 | $ 30 | $ 61 | $ 60 |
Operating lease, Kona, Hawaii | ||||
Lease payments to lessors [Abstract] | ||||
Total lease payments to lessors | $ 145 | $ 128 | $ 288 | $ 257 |
Percentage of common stock held by lessor (in hundredths) | 5.00% | |||
Sublease contracts expire date | Dec. 31, 2020 | |||
Number of additional lease renewal periods | period | 2 | |||
Sublease contract option period | 5 years |
Derivative Financial Instrume34
Derivative Financial Instruments (Details) - USD ($) | Jan. 04, 2016 | Jan. 23, 2014 | Jun. 30, 2017 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Nov. 25, 2015 |
Derivatives, Fair Value [Line Items] | |||||||||
Hedge ineffectiveness gain (loss) | $ 0 | $ 0 | |||||||
Fair value of derivative instrument [Abstract] | |||||||||
Fair value of interest rate swaps | $ (346,000) | (346,000) | $ (424,000) | ||||||
Interest Rate Swap Contracts | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Percentage of Term Loan balance covered under interest rate swap contract | 75.00% | ||||||||
Termination of contract date | Jan. 1, 2019 | Sep. 30, 2023 | |||||||
Notional amount | $ 7,100,000 | 7,100,000 | $ 9,100,000 | ||||||
Fixed interest rate (in hundredths) | 1.28% | 2.86% | |||||||
Unrealized net losses recorded in Accumulated other comprehensive loss | $ 300,000 | ||||||||
Interest Rate Swap Contracts | One Month LIBOR | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
One month variable interest rate (in hundredths) | 1.71% | 1.71% | |||||||
Interest Rate Swap Contracts | Derivatives in Cash Flow Hedging Relationships | Interest Expense | |||||||||
Effect of interest rate swap contract accounted for derivative instrument on Consolidated Statements of Income [Abstract] | |||||||||
Amount of Gain (Loss) Recognized in Accumulated OCI (Effective Portion) | $ (5,000) | $ (109,000) | $ 77,000 | $ (442,000) | |||||
Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion) | $ 40,000 | $ 71,000 | $ 93,000 | $ 134,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Financial liability recorded at fair value on a recurring basis [Abstract] | ||
Interest rate swaps | $ (346) | $ (424) |
Fixed-rate debt on balance sheet | ||
Fixed-rate debt outstanding [abstract] | ||
Fixed-rate debt | 876 | 935 |
Estimated fair value of fixed-rate debt | ||
Fixed-rate debt outstanding [abstract] | ||
Fixed-rate debt | 889 | 993 |
Recurring | ||
Financial liability recorded at fair value on a recurring basis [Abstract] | ||
Interest rate swaps | (346) | (424) |
Recurring | Level 1 | ||
Financial liability recorded at fair value on a recurring basis [Abstract] | ||
Interest rate swaps | 0 | 0 |
Recurring | Level 2 | ||
Financial liability recorded at fair value on a recurring basis [Abstract] | ||
Interest rate swaps | (346) | (424) |
Recurring | Level 3 | ||
Financial liability recorded at fair value on a recurring basis [Abstract] | ||
Interest rate swaps | $ 0 | $ 0 |
Segment Results and Concentra36
Segment Results and Concentrations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Net sales, gross profit and gross margin by segment [Abstract] | |||||
Net sales | $ 60,550 | $ 62,278 | $ 104,852 | $ 101,500 | |
Gross profit | $ 18,329 | $ 20,498 | $ 30,998 | $ 29,215 | |
Gross margin (in hundredths) | 30.30% | 32.90% | 29.60% | 28.80% | |
Beer Related | Operating Segments | |||||
Net sales, gross profit and gross margin by segment [Abstract] | |||||
Net sales | $ 53,435 | $ 54,832 | $ 91,286 | $ 87,311 | |
Gross profit | $ 17,620 | $ 19,369 | $ 29,890 | $ 27,223 | |
Gross margin (in hundredths) | 33.00% | 35.30% | 32.70% | 31.20% | |
Pubs | Operating Segments | |||||
Net sales, gross profit and gross margin by segment [Abstract] | |||||
Net sales | $ 7,115 | $ 7,446 | $ 13,566 | $ 14,189 | |
Gross profit | $ 709 | $ 1,129 | $ 1,108 | $ 1,992 | |
Gross margin (in hundredths) | 10.00% | 15.20% | 8.20% | 14.00% | |
Sales | |||||
Sales and receivables from Anheuser-Busch, LLC [Abstract] | |||||
Anheuser-Busch, LLC (in hundredths) | 76.80% | 80.20% | 74.20% | 78.70% | |
Accounts Receivable | |||||
Sales and receivables from Anheuser-Busch, LLC [Abstract] | |||||
Anheuser-Busch, LLC (in hundredths) | 60.80% | 66.60% |
Significant Stock-Based Plan 37
Significant Stock-Based Plan Activity and Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Stock-Based Compensation Expense [Abstract] | ||||
Total Stock-based compensation expense | $ 197 | $ 289 | $ 554 | $ 309 |
Unrecognized stock-based compensation expense | 2,600 | $ 2,600 | ||
Weighted average remaining vesting period | 2 years 3 months | |||
Selling, general and administrative expense | ||||
Stock-Based Compensation Expense [Abstract] | ||||
Total Stock-based compensation expense | 180 | 269 | $ 518 | 275 |
Cost of sales | ||||
Stock-Based Compensation Expense [Abstract] | ||||
Total Stock-based compensation expense | $ 17 | $ 20 | $ 36 | $ 34 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reconciliation of shares used for basic and diluted earnings per share [Abstract] | ||||
Shares used in basic diluted per share calculations (in shares) | 19,278 | 19,216 | 19,270 | 19,198 |
Dilutive effect of stock-based awards (in shares) | 111 | 16 | 0 | 0 |
Shares used for diluted EPS (in shares) | 19,389 | 19,232 | 19,270 | 19,198 |
Stock-based awards not included in diluted per share calculations as they would be antidilutive (in shares) | 2 | 312 | 125 | 282 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - claim | Apr. 07, 2017 | Mar. 06, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||
Number of class action lawsuits | 1 | 2 |
Termination of Pabst Agreemen40
Termination of Pabst Agreements (Details) - USD ($) $ in Thousands | May 01, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Jun. 30, 2017 |
Contractors [Abstract] | |||||
Contract termination fee | $ 2,700 | ||||
Contract brewing shortfall fees | $ 1,600 | $ 1,700 | |||
Restructuring Cost and Reserve [Line Items] | |||||
Approximate incremental employee and severance related costs incurred | $ 250 | ||||
Forecast | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Additional expense expected to prepare brewing equipment to be idle | $ 250 |
Assets Held for Sale (Details)
Assets Held for Sale (Details) - USD ($) $ in Thousands | May 01, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Assets held for sale | $ 23,622 | $ 0 | |
Brewery equipment | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Assets held for sale | 7,128 | ||
Buildings | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Assets held for sale | 12,562 | ||
Land and improvements | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Assets held for sale | 3,451 | ||
Furniture, fixtures and other equipment | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Assets held for sale | 457 | ||
Construction in progress | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Assets held for sale | $ 24 | ||
Woodinville Brewery and Adjacent Pub | Disposal Group, Held-for-sale, Not Discontinued Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Expected term to sale property | 12 months |