Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 24, 2014 | Jun. 28, 2013 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'Monster Beverage Corp | ' | ' |
Entity Central Index Key | '0000865752 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $9,168,059,511 |
Entity Common Stock, Shares Outstanding | ' | 166,877,164 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $211,349 | $222,514 |
Short-term investments | 402,247 | 97,042 |
Accounts receivable, net | 291,638 | 236,044 |
Distributor receivables | 4,542 | 666 |
Inventories | 221,449 | 203,106 |
Prepaid expenses and other current assets | 21,376 | 24,983 |
Prepaid income taxes | 9,518 | 33,709 |
Deferred income taxes | 20,924 | 17,004 |
Total current assets | 1,183,043 | 835,068 |
INVESTMENTS | 9,792 | 21,393 |
PROPERTY AND EQUIPMENT, net | 88,143 | 69,137 |
DEFERRED INCOME TAXES | 63,611 | 59,503 |
INTANGIBLES, net | 65,774 | 54,648 |
OTHER ASSETS | 10,146 | 3,576 |
Total Assets | 1,420,509 | 1,043,325 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable | 119,376 | 127,330 |
Accrued liabilities | 59,113 | 38,916 |
Accrued promotional allowances | 99,470 | 91,208 |
Deferred revenue | 13,832 | 12,695 |
Accrued compensation | 14,864 | 12,926 |
Income taxes payable | 9,359 | 5,470 |
Total current liabilities | 316,014 | 288,545 |
DEFERRED REVENUE | 112,216 | 110,383 |
COMMITMENTS AND CONTINGENCIES (Note 9) | ' | ' |
STOCKHOLDERS' EQUITY: | ' | ' |
Common stock - $0.005 par value; 240,000 shares authorized; 206,014 shares issued and 166,822 outstanding as of December 31, 2013; 203,759 shares issued and 165,776 outstanding as of December 31, 2012 | 1,030 | 1,019 |
Additional paid-in capital | 368,069 | 287,953 |
Retained earnings | 1,847,325 | 1,508,664 |
Accumulated other comprehensive (loss) income | -1,233 | 2,074 |
Common stock in treasury, at cost; 39,192 shares and 37,983 shares as of December 31, 2013 and 2012, respectively | -1,222,912 | -1,155,313 |
Total stockholders' equity | 992,279 | 644,397 |
Total Liabilities and Stockholders' Equity | $1,420,509 | $1,043,325 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 240,000 | 240,000 |
Common stock, shares issued | 206,014 | 203,759 |
Common stock, shares outstanding | 166,822 | 165,776 |
Common stock in treasury, shares | 39,192 | 37,983 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF INCOME | ' | ' | ' |
NET SALES | $2,246,428 | $2,060,702 | $1,703,230 |
COST OF SALES | 1,073,497 | 995,046 | 808,921 |
GROSS PROFIT | 1,172,931 | 1,065,656 | 894,309 |
OPERATING EXPENSES | 600,015 | 515,033 | 437,886 |
OPERATING INCOME | 572,916 | 550,623 | 456,423 |
OTHER (EXPENSE) INCOME: | ' | ' | ' |
Interest and other (expense) income, net | -11,737 | -2,256 | 1,619 |
Gain (loss) on investments and put option, net (Note 2) | 2,715 | 787 | -772 |
Total other (expense) income | -9,022 | -1,469 | 847 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 563,894 | 549,154 | 457,270 |
PROVISION FOR INCOME TAXES | 225,233 | 209,134 | 171,051 |
NET INCOME | $338,661 | $340,020 | $286,219 |
NET INCOME PER COMMON SHARE: | ' | ' | ' |
Basic (in dollars per share) | $2.03 | $1.96 | $1.62 |
Diluted (in dollars per share) | $1.95 | $1.86 | $1.53 |
WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK AND COMMON STOCK EQUIVALENTS: | ' | ' | ' |
Basic (in shares) | 166,679 | 173,712 | 176,212 |
Diluted (in shares) | 173,387 | 183,083 | 186,674 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' |
Net income, as reported | $338,661 | $340,020 | $286,219 |
Other comprehensive (loss) income: | ' | ' | ' |
Change in foreign currency translation | -1,782 | 2,096 | -3,306 |
Available-for-sale investments: | ' | ' | ' |
Change in net unrealized gains | ' | 1,525 | 1,478 |
Reclassification adjustment for net gains included in net income | -1,525 | ' | ' |
Net change in available-for-sale investments | -1,525 | 1,525 | 1,478 |
Other comprehensive (loss) income | -3,307 | 3,621 | -1,828 |
Comprehensive income | $335,354 | $343,641 | $284,391 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury stock |
In Thousands, unless otherwise specified | ||||||
Balance at Dec. 31, 2010 | $828,398 | $988 | $186,546 | $882,425 | $281 | ($241,842) |
Balance (in shares) at Dec. 31, 2010 | ' | 197,462 | ' | ' | ' | -19,502 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Stock-based compensation | 18,619 | ' | 18,619 | ' | ' | ' |
Exercise of stock options | 20,318 | 6 | 20,312 | ' | ' | ' |
Exercise of stock options (in shares) | ' | 1,181 | ' | ' | ' | ' |
Issuance of restricted stock (in shares) | ' | 86 | ' | ' | ' | ' |
Excess tax benefits from share based payment arrangements | 3,824 | ' | 3,824 | ' | ' | ' |
Repurchase of common stock | -176,392 | ' | ' | ' | ' | -176,392 |
Repurchase of common stock (in shares) | ' | ' | ' | ' | ' | -4,950 |
Foreign currency translation | -3,306 | ' | ' | ' | -3,306 | ' |
Change in unrealized gain on available-for-sale securities, net of tax | 1,478 | ' | ' | ' | 1,478 | ' |
Net income | 286,219 | ' | ' | 286,219 | ' | ' |
Balance at Dec. 31, 2011 | 979,158 | 994 | 229,301 | 1,168,644 | -1,547 | -418,234 |
Balance (in shares) at Dec. 31, 2011 | ' | 198,729 | ' | ' | ' | -24,452 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Stock-based compensation | 28,007 | ' | 28,007 | ' | ' | ' |
Exercise of stock options | 11,014 | 25 | 10,989 | ' | ' | ' |
Exercise of stock options (in shares) | ' | 5,030 | ' | ' | ' | ' |
Excess tax benefits from share based payment arrangements | 19,656 | ' | 19,656 | ' | ' | ' |
Repurchase of common stock | -737,079 | ' | ' | ' | ' | -737,079 |
Repurchase of common stock (in shares) | ' | ' | ' | ' | ' | -13,531 |
Foreign currency translation | 2,096 | ' | ' | ' | 2,096 | ' |
Change in unrealized gain on available-for-sale securities, net of tax | 1,525 | ' | ' | ' | 1,525 | ' |
Net income | 340,020 | ' | ' | 340,020 | ' | ' |
Balance at Dec. 31, 2012 | 644,397 | 1,019 | 287,953 | 1,508,664 | 2,074 | -1,155,313 |
Balance (in shares) at Dec. 31, 2012 | ' | 203,759 | ' | ' | ' | -37,983 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Stock-based compensation | 28,528 | ' | 28,528 | ' | ' | ' |
Exercise of stock options | 21,251 | 11 | 21,240 | ' | ' | ' |
Exercise of stock options (in shares) | ' | 2,255 | ' | ' | ' | ' |
Excess tax benefits from share based payment arrangements | 30,348 | ' | 30,348 | ' | ' | ' |
Repurchase of common stock | -67,599 | ' | ' | ' | ' | -67,599 |
Repurchase of common stock (in shares) | ' | ' | ' | ' | ' | -1,209 |
Foreign currency translation | -1,782 | ' | ' | ' | -1,782 | ' |
Reclassification adjustment for net gains included in net income | -1,525 | ' | ' | ' | -1,525 | ' |
Net income | 338,661 | ' | ' | 338,661 | ' | ' |
Balance at Dec. 31, 2013 | $992,279 | $1,030 | $368,069 | $1,847,325 | ($1,233) | ($1,222,912) |
Balance (in shares) at Dec. 31, 2013 | ' | 206,014 | ' | ' | ' | -39,192 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' |
Net income | $338,661 | $340,020 | $286,219 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Amortization of trademark | 49 | 49 | 52 |
Depreciation and amortization | 22,713 | 20,513 | 17,032 |
Loss (gain) on disposal of property and equipment | 506 | 25 | -18 |
Stock-based compensation | 28,764 | 28,413 | 19,424 |
Loss on put option | 838 | 1,111 | 727 |
(Gain) loss on investments, net | -3,553 | -1,897 | 43 |
Deferred income taxes | -7,074 | -2,460 | -687 |
Tax benefit from exercise of stock options | -30,348 | -19,656 | -3,824 |
Provision for doubtful accounts | 125 | -10 | 52 |
Effect on cash of changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable | -43,026 | -17,772 | -56,752 |
Distributor receivables | -7,382 | 3 | -256 |
Inventories | -21,552 | -47,568 | -4,465 |
Prepaid expenses and other current assets | -4,501 | -4,523 | -6,209 |
Prepaid income taxes | 24,008 | -33,210 | 9,470 |
Accounts payable | -8,204 | 3,659 | 26,250 |
Accrued liabilities | 2,265 | 6,458 | 8,144 |
Accrued promotional allowances | 8,932 | 2,723 | 28,442 |
Accrued distributor terminations | 1,552 | 794 | -330 |
Accrued compensation | 1,970 | 2,498 | 2,878 |
Income taxes payable | 34,308 | 14,165 | 13,918 |
Deferred revenue | 2,982 | -5,659 | -6,283 |
Net cash provided by operating activities | 342,033 | 287,676 | 333,827 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' |
Maturities of held-to-maturity investments | 256,843 | 841,576 | 407,918 |
Sales of available-for-sale investments | 5,793 | 68,451 | 30,545 |
Sales of trading investments | 2,250 | 17,050 | 34,715 |
Purchases of held-to-maturity investments | -557,419 | -597,155 | -583,138 |
Purchases of available-for-sale investments | ' | -9,502 | -33,312 |
Purchases of property and equipment | -40,762 | -42,935 | -25,552 |
Proceeds from sale of property and equipment | 9,022 | 288 | 519 |
Additions to intangibles | -11,175 | -6,301 | -5,132 |
(Increase) decrease in other assets | -4,360 | 377 | 410 |
Net cash (used in) provided by investing activities | -339,808 | 271,849 | -173,027 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ' |
Principal payments on debt | -1,887 | -2,076 | -1,942 |
Tax benefit from exercise of stock options | 30,348 | 19,656 | 3,824 |
Issuance of common stock | 21,252 | 11,015 | 20,318 |
Purchases of common stock held in treasury | -67,599 | -727,670 | -176,392 |
Net cash used in financing activities | -17,886 | -699,075 | -154,192 |
Effect of exchange rate changes on cash and cash equivalents | 4,496 | 2,733 | -2,119 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -11,165 | -136,817 | 4,489 |
CASH AND CASH EQUIVALENTS, beginning of year | 222,514 | 359,331 | 354,842 |
CASH AND CASH EQUIVALENTS, end of year | 211,349 | 222,514 | 359,331 |
Cash paid during the year for: | ' | ' | ' |
Interest | 49 | 48 | 48 |
Income taxes | $174,278 | $230,221 | $147,927 |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS NON-CASH SUPPLEMENTAL DATA (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF CASH FLOWS NON-CASH SUPPLEMENTAL DATA | ' | ' | ' |
Capital leases for the acquisition of promotional vehicles | $2.60 | $1.50 | $2.80 |
Accounts payable for treasury stock purchases | ' | 9.4 | ' |
Accounts payable for equipment purchases | $0.10 | $0.40 | $0.10 |
ORGANIZATION_AND_SUMMARY_OF_SI
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2013 | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Organization – Monster Beverage Corporation (the “Company”, “Monster”, “Hansen” or “Hansen Beverage Company”) was incorporated in Delaware on April 25, 1990. The Company is a holding company and has no operating business except through its consolidated subsidiaries. | |
Nature of Operations – The Company develops, markets, sells and distributes “alternative” beverage category beverages primarily under the following brand names: Monster Energy®, Monster Rehab®, Monster Energy Extra Strength Nitrous Technology®, Java Monster®, X-Presso Monster®, Muscle Monster®, Punch Monster™, Peace Tea®, Hansen’s®, Hansen’s Natural Cane Soda®, Junior Juice®, Blue Sky®, Hubert’s® and Worx Energy®. The “alternative” beverage category combines non-carbonated ready-to-drink iced teas, lemonades, juice cocktails, single-serve juices and fruit beverages, ready-to-drink dairy and coffee drinks, energy drinks, sports drinks, and single-serve still water (flavored, unflavored and enhanced) with “new age” beverages, including sodas that are considered natural, sparkling juices and flavored sparkling beverages. | |
Basis of Presentation – The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and its consolidated subsidiaries. | |
Principles of Consolidation – The Company consolidates all entities that it controls by ownership of a majority voting interest. All intercompany balances and transactions have been eliminated in consolidation. | |
Cash and Cash Equivalents – The Company considers all highly liquid investments with an original maturity of three months or less from date of purchase to be cash equivalents. Throughout the year, the Company has had amounts on deposit at financial institutions that exceed the federally insured limits. The Company has not experienced any loss as a result of these deposits and does not expect to incur any losses in the future. | |
Investments – The Company’s investments in debt securities are classified as either held-to-maturity, available-for-sale or trading, in accordance with Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) 320. Held-to-maturity securities are those securities that the Company has the positive intent and ability to hold until maturity. Trading securities are those securities that the Company intends to sell in the near term. All other securities not included in the held-to-maturity or trading category are classified as available-for-sale. Held-to-maturity securities are recorded at amortized cost which approximates fair market value. Trading securities are carried at fair value with unrealized gains and losses charged to earnings. Available-for-sale securities are carried at fair value with unrealized gains and losses recorded within accumulated other comprehensive income (loss) as a separate component of stockholders’ equity. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs, where available (see Note 3). Under ASC 320-10-35, a security is considered to be other-than-temporarily impaired if the present value of cash flows expected to be collected are less than the security’s amortized cost basis (the difference being defined as the “Credit Loss”) or if the fair value of the security is less than the security’s amortized cost basis and the investor intends, or will be required, to sell the security before recovery of the security’s amortized cost basis. If an other-than-temporary impairment exists, the charge to earnings is limited to the amount of Credit Loss if the investor does not intend to sell the security, and will not be required to sell the security, before recovery of the security’s amortized cost basis. Any remaining difference between fair value and amortized cost is recognized in other comprehensive income (loss), net of applicable taxes. The Company evaluates whether the decline in fair value of its investments is other-than-temporary at each quarter-end. This evaluation consists of a review by management, and includes market pricing information and maturity dates for the securities held, market and economic trends in the industry and information on the issuer’s financial condition and, if applicable, information on the guarantors’ financial condition. Factors considered in determining whether a loss is temporary include the length of time and extent to which the investment’s fair value has been less than its cost basis, the financial condition and near-term prospects of the issuer and guarantors, including any specific events which may influence the operations of the issuer and our intent and ability to retain the investment for a reasonable period of time sufficient to allow for any anticipated recovery of fair value. | |
Accounts Receivable – The Company evaluates the collectability of its trade accounts receivable based on a number of factors. In circumstances where the Company becomes aware of a specific customer’s inability to meet its financial obligations to the Company, a specific reserve for bad debts is estimated and recorded, which reduces the recognized receivable to the estimated amount the Company believes will ultimately be collected. In addition to specific customer identification of potential bad debts, bad debt charges are recorded based on the Company’s recent loss history and an overall assessment of past due trade accounts receivable outstanding. In accordance with ASC 210-20-45, in its consolidated balance sheets, the Company has presented accounts receivable, net of promotional allowances, only for those customers that it allows net settlement. All other accounts receivable and related promotional allowances are shown on a gross basis. | |
Inventories – Inventories are valued at the lower of first-in, first-out, cost or market value (net realizable value). | |
Property and Equipment – Property and equipment are stated at cost. Depreciation of furniture and fixtures, office and computer equipment, computer software, equipment, and vehicles is based on their estimated useful lives (three to ten years) and is calculated using the straight-line method. Amortization of leasehold improvements is based on the lesser of their estimated useful lives or the terms of the related leases and is calculated using the straight-line method. Normal repairs and maintenance costs are expensed as incurred. Expenditures that materially increase values or extend useful lives are capitalized. The related costs and accumulated depreciation of disposed assets are eliminated and any resulting gain or loss on disposition is included in net income. | |
Capitalized Software Costs – In accordance with ASC 350-40, the Company capitalizes certain costs incurred in connection with developing or obtaining internal use software. Costs incurred in the preliminary project stage are expensed. All direct external costs incurred to develop internal use software during the development stage are capitalized and amortized using the straight-line method over the remaining useful lives. Costs such as maintenance and training are expensed as incurred. | |
Intangibles – Intangibles are comprised primarily of trademarks that represent the Company’s exclusive ownership of the Monster Energy®, [See the EDGAR filing for referenced graphic (or) image.]®, Monster Rehab®, Java Monster®, Unleash the Beast®, Punch Monster™, Peace Tea®, Hansen’s®, Blue Sky® and the Junior Juice® trademarks, all used in connection with the manufacture, sale and distribution of supplements and beverages. The Company also owns in its own right a number of other trademarks in the United States, as well as in a number of countries around the world. In accordance with ASC 350, intangible assets with indefinite lives are not amortized but instead are measured for impairment at least annually, or when events indicate that an impairment exists. The Company calculates impairment as the excess of the carrying value of its indefinite-lived assets over their estimated fair value. If the carrying value exceeds the estimate of fair value a write-down is recorded. The Company amortizes its trademarks with finite useful lives over their respective useful lives, which range from 1 to 25 years. For the fiscal years ended December 31, 2013, 2012 and 2011, there were no impairments recorded. | |
Long-Lived Assets – Management regularly reviews property and equipment and other long-lived assets, including certain definite-lived intangible assets, for possible impairment. This review occurs annually, or more frequently if events or changes in circumstances indicate the carrying amount of the asset may not be recoverable. If there is indication of impairment, management then prepares an estimate of future cash flows (undiscounted and without interest charges) expected to result from the use of the asset and its eventual disposition. If these cash flows are less than the carrying amount of the asset, an impairment loss is recognized to write down the asset to its estimated fair value. The fair value is estimated using the present value of the future cash flows discounted at a rate commensurate with management’s estimates of the business risks. Preparation of estimated expected future cash flows is inherently subjective and is based on management’s best estimate of assumptions concerning expected future conditions. For the fiscal years ended December 31, 2013, 2012 and 2011, there were no impairment indicators identified. Long-lived assets held for sale are recorded at the lower of their carrying amount or fair value less cost to sell. | |
Foreign Currency Translation and Transactions – The accounts of the Company’s foreign subsidiaries are translated in accordance with ASC 830. Foreign currency transaction gains and losses are recognized in interest and other income, net, at the time they occur. Net foreign currency exchange gains or losses resulting from the translation of assets and liabilities of foreign subsidiaries whose functional currency is not the U.S. dollar are recorded as a part of accumulated other comprehensive (loss) income in stockholders’ equity. Unrealized foreign currency exchange gains and losses on certain intercompany transactions that are of a long-term investment nature (i.e., settlement is not planned or anticipated in the foreseeable future) are also recorded in accumulated other comprehensive (loss) income in stockholders’ equity. For the years ended December 31, 2013, 2012 and 2011, aggregate foreign currency transaction losses amounted to $12.9 million, $3.7 million and $0.7 million, respectively, and have been recorded in other (expense) income in the accompanying consolidated statements of income. | |
Revenue Recognition – The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collectability is reasonably assured. Generally, ownership of and title to the Company’s products passes to customers upon delivery of the products to customers. Certain of the Company’s distributors may also perform a separate function as a co-packer on the Company’s behalf. In such cases, ownership of and title to the Company’s products that are co-packed on the Company’s behalf by those co-packers who are also distributors, passes to such distributors when the Company is notified by them that they have taken transfer or possession of the relevant portion of the Company’s finished goods. Net sales have been determined after deduction of promotional and other allowances in accordance with ASC 605-50. The Company’s promotional and other allowances are calculated based on various programs with its distributors and retail customers, and accruals are established during the year for the anticipated liabilities. These accruals are based on agreed upon terms as well as the Company’s historical experience with similar programs and require management’s judgment with respect to estimating consumer participation and/or distributor and retail customer performance levels. Differences between such estimated expense and actual expenses for promotional and other allowance costs have historically been insignificant and are recognized in earnings in the period such differences are determined. Amounts received pursuant to new and/or amended distribution agreements entered into with certain distributors, relating to the costs associated with terminating the Company’s prior distributors, are accounted for as revenue ratably over the anticipated life of the respective distribution agreement, generally 20 years. | |
Management believes that adequate provision has been made for cash discounts, returns and spoilage based on the Company’s historical experience. | |
Cost of Sales – Cost of sales consists of the costs of raw materials utilized in the manufacture of products, co-packing fees, repacking fees, in-bound freight charges, as well as certain internal transfer costs, warehouse expenses incurred prior to the manufacture of the Company’s finished products and certain quality control costs. Raw materials account for the largest portion of the cost of sales. Raw materials include cans, bottles, other containers, flavors, ingredients and packaging materials. | |
Operating Expenses – Operating expenses include selling expenses such as distribution expenses to transport products to customers and warehousing expenses after manufacture, as well as expenses for advertising, sampling and in-store demonstration costs, costs for merchandise displays, point-of-sale materials and premium items, sponsorship expenses, other marketing expenses and design expenses. Operating expenses also include such costs as payroll costs, travel costs, professional service fees including legal fees, termination payments made to certain of the Company’s prior distributors, depreciation and other general and administrative costs. | |
Freight-Out Costs – For the years ended December 31, 2013, 2012 and 2011, freight-out costs amounted to $84.0 million, $76.1 million and $60.5 million, respectively, and have been recorded in operating expenses in the accompanying consolidated statements of income. | |
Advertising and Promotional Expenses – The Company accounts for advertising production costs by expensing such production costs the first time the related advertising takes place. A significant amount of the Company’s promotional expenses result from payments under endorsement and sponsorship contracts. Accounting for endorsement and sponsorship payments is based upon specific contract provisions. Generally, endorsement and sponsorship payments are expensed on a straight-line basis over the term of the contract after giving recognition to periodic performance compliance provisions of the contracts. Advertising and promotional expenses, including but not limited to production costs, amounted to $181.8 million, $165.4 million and $148.8 million for the years ended December 31, 2013, 2012 and 2011, respectively. Advertising and promotional expenses are included in operating expenses in the accompanying consolidated statements of income. | |
Income Taxes – The Company utilizes the liability method of accounting for income taxes as set forth in ASC 740. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. In determining the need for valuation allowances the Company considers projected future taxable income and the availability of tax planning strategies. If in the future the Company determines that it would not be able to realize its recorded deferred tax assets, an increase in the valuation allowance would be recorded, decreasing earnings in the period in which such determination is made. | |
The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon the Company’s evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where there is a greater than 50% likelihood that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. | |
Stock-Based Compensation – The Company accounts for stock-based compensation under the provisions of ASC 718. The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes-Merton option pricing formula. The Company records compensation expense for non-employee stock options based on the estimated fair value of the options as of the earlier of (1) the date at which a commitment for performance by the non-employee to earn the stock option is reached or (2) the date at which the non-employee’s performance is complete, using the Black-Scholes-Merton option pricing formula. Stock-based compensation cost for restricted stock awards and restricted stock units is measured based on the closing fair market value of the Company’s common stock at the date of grant. In the event that the Company has the option and intent to settle a restricted stock unit in cash, the award is classified as a liability and revalued at each balance sheet date (See Note 12). | |
Net Income Per Common Share – In accordance with ASC 260, net income per common share, on a basic and diluted basis, is presented for all periods. Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during each period. Diluted net income per share is computed by dividing net income by the weighted average number of common and dilutive common equivalent shares outstanding. The calculation of common equivalent shares assumes the exercise of dilutive stock options, net of assumed treasury share repurchases at average market prices, as applicable. | |
Concentration of Risk – Certain of the Company’s products utilize components (raw materials and/or co-packing services) from a limited number of sources. A disruption in the supply of such components could significantly affect the Company’s revenues from those products, as alternative sources of such components may not be available at commercially reasonable rates or within a reasonably short time period. The Company continues to take steps on an ongoing basis to secure the availability of alternative sources for such components and minimize the risk of any disruption in production. | |
Coca-Cola Refreshments USA, Inc. (“CCR”), a customer of the Direct Store Delivery segment (“DSD”) with sales within specific markets in the United States and Canada, accounted for approximately 29%, 28% and 29% of the Company’s net sales for the years ended December 31, 2013, 2012 and 2011, respectively. | |
Credit Risk – The Company sells its products nationally and internationally, primarily to full service beverage distributors, retail grocery and specialty chains, wholesalers, club stores, drug chains, mass merchandisers, convenience chains, health food distributors and food service customers. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. The Company maintains reserves for estimated credit losses, and historically, such losses have been within management’s expectations. | |
Fair Value of Financial Instruments – The carrying value of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to the relatively short maturity of the respective instruments. | |
Use of Estimates – The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Recent Accounting Pronouncements – In July 2013, the FASB issued Accounting Standards Update (“ASU”) No. 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force)”. The amendments in this ASU provide guidance on the financial statements presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. An unrecognized tax benefit should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward with certain exceptions, in which case such an unrecognized tax benefit should be presented in the financial statements as a liability. The amendments in this ASU do not require new recurring disclosures. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments in ASU No. 2013-11 are not expected to have a material impact on the Company’s financial position, results of operations or liquidity. | |
In February 2013, the FASB issued ASU No. 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income”. ASU 2013-02 requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income, but only if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under GAAP that provide additional detail about those amounts. The guidance became effective for the Company on January 1, 2013. The adoption of ASU 2013-02 did not have a material impact on the Company’s financial position, results of operations or liquidity. |
INVESTMENTS
INVESTMENTS | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
INVESTMENTS | ' | |||||||||||||||||||||||||
INVESTMENTS | ' | |||||||||||||||||||||||||
2. INVESTMENTS | ||||||||||||||||||||||||||
The following table summarizes the Company’s investments at: | ||||||||||||||||||||||||||
December 31, 2013 | Amortized Cost | Gross | Gross | Fair | Continuous | Continuous | ||||||||||||||||||||
Unrealized | Unrealized | Value | Unrealized | Unrealized | ||||||||||||||||||||||
Holding | Holding | Loss Position | Loss Position | |||||||||||||||||||||||
Gains | Losses | less than 12 | greater than 12 | |||||||||||||||||||||||
Months | Months | |||||||||||||||||||||||||
Held-to-Maturity | ||||||||||||||||||||||||||
Short-term: | ||||||||||||||||||||||||||
Certificates of deposit | $ | 22,045 | $ | - | $ | - | $ | 22,045 | $ | - | $ | - | ||||||||||||||
Commercial paper | 5,991 | - | - | 5,991 | - | - | ||||||||||||||||||||
Municipal securities | 367,819 | 48 | - | 367,867 | - | - | ||||||||||||||||||||
Total | $ | 395,855 | $ | 48 | $ | - | 395,903 | $ | - | $ | - | |||||||||||||||
Trading | ||||||||||||||||||||||||||
Short-term: | ||||||||||||||||||||||||||
Auction rate securities | 6,392 | |||||||||||||||||||||||||
Long-term: | ||||||||||||||||||||||||||
Auction rate securities | 9,792 | |||||||||||||||||||||||||
Total | $ | 412,087 | ||||||||||||||||||||||||
December 31, 2012 | Amortized Cost | Gross | Gross | Fair | Continuous | Continuous | ||||||||||||||||||||
Unrealized | Unrealized | Value | Unrealized | Unrealized | ||||||||||||||||||||||
Holding | Holding | Loss Position | Loss Position | |||||||||||||||||||||||
Gains | Losses | less than 12 | greater than 12 | |||||||||||||||||||||||
Months | Months | |||||||||||||||||||||||||
Held-to-Maturity | ||||||||||||||||||||||||||
Short-term: | ||||||||||||||||||||||||||
U.S. Treasuries | $ | 16,040 | $ | - | $ | - | $ | 16,040 | $ | - | $ | - | ||||||||||||||
Certificates of deposit | 2,201 | - | - | 2,201 | - | - | ||||||||||||||||||||
Municipal securities | 77,038 | - | 11 | 77,027 | 11 | - | ||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||
Long-term: | ||||||||||||||||||||||||||
Auction rate securities | 3,310 | 2,483 | - | 5,793 | - | - | ||||||||||||||||||||
Total | $ | 98,589 | $ | 2,483 | $ | 11 | 101,061 | $ | 11 | $ | - | |||||||||||||||
Trading | ||||||||||||||||||||||||||
Short-term: | ||||||||||||||||||||||||||
Auction rate securities | 1,763 | |||||||||||||||||||||||||
Long-term: | ||||||||||||||||||||||||||
Auction rate securities | 15,600 | |||||||||||||||||||||||||
Total | $ | 118,424 | ||||||||||||||||||||||||
During the year ended December 31, 2013, the Company recognized $2.5 million of realized gains on the sale of available-for-sale investments. Realized gains or losses on the sale of all other investments during the year ended December 31, 2013 were not significant. During the years ended December 31, 2012 and 2011, realized gains or losses recognized on the sale of investments were not significant. | ||||||||||||||||||||||||||
The Company recognized a net gain (loss) through earnings on its trading securities as follows for the years ended: | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
(Loss) on transfer from available-for-sale to trading | $ | - | $ | - | $ | (2,438 | ) | |||||||||||||||||||
Gain on trading securities sold | 255 | 1,130 | 2,604 | |||||||||||||||||||||||
Gain (loss) on trading securities held | 816 | 753 | (210 | ) | ||||||||||||||||||||||
Gain (loss) on trading securites | $ | 1,071 | $ | 1,883 | $ | (44 | ) | |||||||||||||||||||
The Company’s investments at December 31, 2013 and 2012 in U.S. Treasuries, certificates of deposit, commercial paper and/or municipal securities carried investment grade credit ratings. All of the Company’s investments at December 31, 2013 in municipal, educational or other public body securities with an auction reset feature (“auction rate securities”) also carried investment grade credit ratings. A portion of the Company’s investments at December 31, 2012 in auction rate securities carried investment grade credit ratings. | ||||||||||||||||||||||||||
The following table summarizes the underlying contractual maturities of the Company’s investments at: | ||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | ||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||
Less than 1 year: | ||||||||||||||||||||||||||
U.S. Treasuries | $ | - | $ | - | $ | 16,040 | $ | 16,040 | ||||||||||||||||||
Certificates of deposit | 22,045 | 22,045 | 2,201 | 2,201 | ||||||||||||||||||||||
Commercial paper | 5,991 | 5,991 | - | - | ||||||||||||||||||||||
Municipal securities | 367,819 | 367,867 | 77,038 | 77,027 | ||||||||||||||||||||||
U.S. government agency securities | - | - | - | - | ||||||||||||||||||||||
Due 11 - 20 years: | ||||||||||||||||||||||||||
Auction rate securities | 11,102 | 11,102 | 10,748 | 10,748 | ||||||||||||||||||||||
Due 21 - 30 years: | ||||||||||||||||||||||||||
Auction rate securities | 5,082 | 5,082 | 9,925 | 12,408 | ||||||||||||||||||||||
Total | $ | 412,039 | $ | 412,087 | $ | 115,952 | $ | 118,424 |
FAIR_VALUE_OF_CERTAIN_FINANCIA
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ' | |||||||||||||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ' | |||||||||||||
3. FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||||||||||||||
ASC 820 provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs, where available. The three levels of inputs required by the standard that the Company uses to measure fair value are summarized below. | ||||||||||||||
· Level 1: Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||
· Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. | ||||||||||||||
· Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | ||||||||||||||
ASC 820 requires the use of observable market inputs (quoted market prices) when measuring fair value and requires a Level 1 quoted price to be used to measure fair value whenever possible. | ||||||||||||||
The following tables present the Company’s held-to-maturity investments at amortized cost as well as the fair value of the Company’s financial assets that are recorded at fair value on a recurring basis, segregated among the appropriate levels within the fair value hierarchy at: | ||||||||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | Total | ||||||||||
Cash | $ | 139,300 | $ | - | $ | - | $ | 139,300 | ||||||
Money market funds | 60,102 | - | - | 60,102 | ||||||||||
Certificates of deposit | - | 22,045 | - | 22,045 | ||||||||||
Commercial paper | - | 5,991 | 5,991 | |||||||||||
Municipal securities | - | 379,766 | - | 379,766 | ||||||||||
Auction rate securities | - | - | 16,184 | 16,184 | ||||||||||
Put option related to auction rate securities | - | - | 1,092 | 1,092 | ||||||||||
Total | $ | 199,402 | $ | 407,802 | $ | 17,276 | $ | 624,480 | ||||||
Amounts included in: | ||||||||||||||
Cash and cash equivalents | $ | 199,402 | $ | 11,947 | $ | - | $ | 211,349 | ||||||
Short-term investments | - | 395,855 | 6,392 | 402,247 | ||||||||||
Investments | - | - | 9,792 | 9,792 | ||||||||||
Prepaid expenses and other current assets | - | - | 486 | 486 | ||||||||||
Other assets | - | - | 606 | 606 | ||||||||||
Total | $ | 199,402 | $ | 407,802 | $ | 17,276 | $ | 624,480 | ||||||
December 31, 2012 | Level 1 | Level 2 | Level 3 | Total | ||||||||||
Cash | $ | 147,113 | $ | - | $ | - | $ | 147,113 | ||||||
Money market funds | 63,974 | - | - | 63,974 | ||||||||||
U.S. Treasuries | - | 24,065 | - | 24,065 | ||||||||||
Certificates of deposit | - | 5,603 | - | 5,603 | ||||||||||
Municipal securities | - | 77,038 | - | 77,038 | ||||||||||
Auction rate securities | - | - | 23,156 | 23,156 | ||||||||||
Put option related to auction rate securities | - | - | 1,929 | 1,929 | ||||||||||
Total | $ | 211,087 | $ | 106,706 | $ | 25,085 | $ | 342,878 | ||||||
Amounts included in: | ||||||||||||||
Cash and cash equivalents | $ | 211,087 | $ | 11,427 | $ | - | $ | 222,514 | ||||||
Short-term investments | - | 95,279 | 1,763 | 97,042 | ||||||||||
Investments | - | - | 21,393 | 21,393 | ||||||||||
Prepaid expenses and other current assets | - | - | 225 | 225 | ||||||||||
Other assets | - | - | 1,704 | 1,704 | ||||||||||
Total | $ | 211,087 | $ | 106,706 | $ | 25,085 | $ | 342,878 | ||||||
The majority of the Company’s short-term investments are classified within Level 1 or Level 2 of the fair value hierarchy. The Company’s valuation of its Level 1 investments, which include money market funds, is based on quoted market prices in active markets for identical securities. The Company’s valuation of its Level 2 investments, which include U.S. Treasuries, certificates of deposit, commercial paper and municipal securities, is based on other observable inputs, specifically a market approach which utilizes valuation models, pricing systems, mathematical tools and other relevant information for the same or similar securities. There were no transfers between Level 1 and Level 2 measurements during the year ended December 31, 2013 or the year ended December 31, 2012, and there were no changes in the Company’s valuation techniques. | ||||||||||||||
The Company’s Level 3 assets are comprised of auction rate securities and put options. The Company’s Level 3 valuation utilized a mark-to-model approach which included estimates for interest rates, timing and amount of cash flows, credit and liquidity premiums, as well as expected holding periods for the auction rate securities. These assumptions are typically volatile and subject to change as the underlying data sources and market conditions evolve. A significant change in any single input could have a significant valuation impact; however, no single input has a more significant impact on valuation than another. There were no changes in the Company’s valuation techniques of its Level 3 assets during the year ended December 31, 2013. | ||||||||||||||
The following table presents quantitative information related to the significant unobservable inputs utilized in the Company’s Level 3 recurring fair value measurements as of December 31, 2013. | ||||||||||||||
Valuation Technique | Unobservable Input | Range (Weighted-Average) | ||||||||||||
Auction Rate Securities | Discounted cash flow | Maximum rate probability | 0.57%-2.30% (1.34%) | |||||||||||
Principal returned probability | 85.84%-94.93% (87.13%) | |||||||||||||
Default probability | 4.18%-12.08% (11.53%) | |||||||||||||
Liquidity risk | 3.00%-3.00% (3.00%) | |||||||||||||
Recovery rate | 60-60 (60) | |||||||||||||
Put Options | Discounted cash flow | Counterparty risk | 0.47%-0.76% (0.59%) | |||||||||||
At December 31, 2013, the Company held auction rate securities with a face value of $17.2 million (amortized cost basis of $16.2 million). A Level 3 valuation was performed on the Company’s auction rate securities as of December 31, 2013 resulting in a fair value of $16.2 million for the Company’s trading auction rate securities (after a $1.0 million impairment), which are included in short-term and long-term investments. | ||||||||||||||
In June 2011, the Company entered into an agreement (the “2011 ARS Agreement”), related to $24.5 million of par value auction rate securities (the “2011 ARS Securities”). Under the 2011 ARS Agreement, the Company has the right to sell the 2011 ARS Securities including all accrued but unpaid interest thereon (the “2011 Put Option”) as follows: (i) on or after July 1, 2013, up to $1.0 million aggregate par value; (ii) on or after October 1, 2013, up to an additional $1.0 million aggregate par value; and (iii) in quarterly installments thereafter based on a formula of the then outstanding 2011 ARS Securities, as adjusted for normal market redemptions, with full sale rights available on or after April 1, 2016. The 2011 ARS Securities will continue to accrue interest until redeemed through the 2011 Put Option, or as determined by the auction process, or should the auction process fail, the terms outlined in the prospectus of the respective 2011 ARS Securities. Under the 2011 ARS Agreement, the Company has the obligation, should it receive written notification from the put issuer, to sell the 2011 ARS Securities at par plus all accrued but unpaid interest. During the year ended December 31, 2013, $2.0 million of 2011 ARS Securities were redeemed at par through the exercise of a portion of the 2011 Put Option and $0.3 million of 2011 ARS Securities were redeemed at par through normal market channels ($1.3 million and $3.7 million of 2011 ARS Securities were redeemed at par through normal market channels during the years ended December 31, 2012 and 2011, respectively). Subsequent to December 31, 2013, $1.7 million of 2011 ARS Securities were redeemed at par through the exercise of a portion of the 2011 Put Option. The 2011 Put Option does not meet the definition of derivative instruments under ASC 815. Therefore, the Company elected the fair value option under ASC 825-10 in accounting for the 2011 Put Option. As of December 31, 2013, the Company recorded $1.1 million as the fair market value of the 2011 Put Option, included in prepaid expenses and other current assets, as well as in other assets, in the condensed consolidated balance sheet. | ||||||||||||||
In March 2010, the Company entered into an agreement (the “2010 ARS Agreement”), related to $54.2 million of par value auction rate securities (the “2010 ARS Securities”). Under the 2010 ARS Agreement, the Company had the right, but not the obligation, to sell the 2010 ARS Securities including all accrued but unpaid interest thereon (the “2010 Put Option”), under various terms. During the three-months ended March 31, 2012, the remaining $15.7 million of par value 2010 ARS Securities were redeemed at par through the exercise of the 2010 Put Option, which exhausted the Company’s rights under the 2010 ARS Agreement (as of December 31, 2011, $38.5 million of par value 2010 ARS Securities had been redeemed at par through the exercise of the 2010 Put Option as well as through normal market channels). | ||||||||||||||
The net effect of (i) the revaluation of the 2011 Put Option as of December 31, 2013; (ii) the redemption at par of certain 2011 ARS Securities; (iii) the revaluation of the Company’s trading auction rate securities as of December 31, 2013; and (iv) a recognized gain resulting from the redemption of previously other-than-temporary impaired securities; resulted in a gain of $2.7 million, which is included in other (expense) income for the year ended December 31, 2013. The net effect of (i) the revaluation of the 2011 Put Option as of December 31, 2012; (ii) the revaluation of the Company’s trading auction rate securities as of December 31, 2012; (iii) the redemption at par of certain 2011 ARS Securities; (iv) the redemption at par of certain 2010 ARS Securities, including those redeemed at par through the exercise of the 2010 Put Option; and (v) a recognized gain resulting from the redemption at par of a previously other-than-temporary impaired security; resulted in a gain of $0.8 million, which is included in other income (expense) for the year ended December 31, 2012. The net effect of (i) the acquisition of the 2011 Put Option during the second fiscal quarter of 2011; (ii) the revaluation of the 2011 Put Option and the 2010 Put Option as of December 31, 2011; (iii) the transfer from available-for-sale to trading of the 2011 ARS Securities during the second fiscal quarter of 2011; (iv) the revaluation of the Company’s trading auction rate securities as of December 31, 2011; (v) the redemption at par of certain 2011 ARS Securities and 2010 ARS Securities, including those redeemed at par through the exercise of the 2010 Put Option; and (vi) a recognized gain resulting from the redemption at par of a previously other-than-temporary impaired security during the first fiscal quarter of 2011, resulted in a (loss) of ($0.8) million included in other (expense) income for the year ended December 31, 2011. | ||||||||||||||
The following table provides a summary reconciliation of the Company’s financial assets that are recorded at fair value on a recurring basis using significant unobservable inputs (Level 3): | ||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||
Auction | Put Options | Auction | Put Options | |||||||||||
Rate | Rate | |||||||||||||
Securities | Securities | |||||||||||||
Opening Balance | $ | 23,156 | $ | 1,929 | $ | 35,852 | $ | 3,041 | ||||||
Transfers into Level 3 | - | - | - | - | ||||||||||
Transfers out of Level 3 | - | - | - | - | ||||||||||
Total gains (losses) for the period: | ||||||||||||||
Included in earnings | 3,553 | -837 | 1,897 | -1,112 | ||||||||||
Included in other comprehensive income | -2,482 | - | 2,482 | - | ||||||||||
Settlements | -8,043 | - | -17,075 | - | ||||||||||
Closing Balance | $ | 16,184 | $ | 1,092 | $ | 23,156 | $ | 1,929 |
INVENTORIES
INVENTORIES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
INVENTORIES | ' | ||||||||
INVENTORIES | ' | ||||||||
4. INVENTORIES | |||||||||
Inventories consist of the following at December 31: | |||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 68,088 | $ | 65,010 | |||||
Finished goods | 153,361 | 138,096 | |||||||
$ | 221,449 | $ | 203,106 |
PROPERTY_AND_EQUIPMENT_Net
PROPERTY AND EQUIPMENT, Net | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
PROPERTY AND EQUIPMENT, Net | ' | ||||||||
PROPERTY AND EQUIPMENT, Net | ' | ||||||||
5. PROPERTY AND EQUIPMENT, Net | |||||||||
Property and equipment consist of the following at December 31: | |||||||||
2013 | 2012 | ||||||||
Land | $ | 5,382 | $ | 5,382 | |||||
Leasehold improvements | 2,222 | 2,300 | |||||||
Furniture and fixtures | 3,474 | 2,087 | |||||||
Office and computer equipment | 14,135 | 8,981 | |||||||
Computer software | 791 | 1,135 | |||||||
Equipment | 62,552 | 48,427 | |||||||
Building | 33,468 | 21,998 | |||||||
Vehicles | 30,442 | 26,037 | |||||||
152,466 | 116,347 | ||||||||
Less: accumulated depreciation and amortization | (64,323 | ) | (47,210 | ) | |||||
$ | 88,143 | $ | 69,137 | ||||||
INTANGIBLES_Net
INTANGIBLES, Net | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
INTANGIBLES, Net | ' | ||||||||
INTANGIBLES, Net | ' | ||||||||
6. INTANGIBLES, Net | |||||||||
The following provides additional information concerning the Company’s intangibles as of December 31: | |||||||||
2013 | 2012 | ||||||||
Amortizing intangibles | $ | 1,076 | $ | 1,061 | |||||
Accumulated amortization | (590 | ) | (553 | ) | |||||
486 | 508 | ||||||||
Non-amortizing intangibles | 65,288 | 54,140 | |||||||
$ | 65,774 | $ | 54,648 | ||||||
All amortizing intangibles have been assigned an estimated finite useful life and such intangibles are amortized on a straight-line basis over the number of years that approximate their respective useful lives ranging from one to 25 years (weighted-average life of 20 years). Total amortization expense recorded was $0.05 million for each of the years ended December 31, 2013, 2012 and 2011, respectively. As of December 31, 2013, future estimated amortization expense related to amortizing intangibles through the year ending December 31, 2018 is approximately $0.05 million per year. |
DISTRIBUTION_AGREEMENTS
DISTRIBUTION AGREEMENTS | 12 Months Ended |
Dec. 31, 2013 | |
DISTRIBUTION AGREEMENTS | ' |
DISTRIBUTION AGREEMENTS | ' |
7. DISTRIBUTION AGREEMENTS | |
Pursuant to new and/or amended distribution agreements entered into with certain distributors, amounts of $9.7 million from such distributors, relating to the costs associated with terminating agreements with the Company’s prior distributors, were recorded for the year ended December 31, 2013. Such amounts have been accounted for as deferred revenue in the accompanying condensed consolidated balance sheets and are recognized as revenue ratably over the anticipated life of the respective distribution agreement, generally 20 years. Revenue recognized was $8.4 million, $8.2 million and $9.3 million for years ended December 31, 2013, 2012 and 2011, respectively. | |
The Company incurred termination costs to certain of its prior distributors amounting to $10.8 million, $1.5 million and $1.1 million in aggregate for the years ended December 31, 2013, 2012 and 2011, respectively. Such termination costs have been expensed in full and are included in operating expenses for the years ended December 31, 2013, 2012 and 2011. Accrued distributor terminations included in accrued liabilities in the accompanying consolidated balance sheets as of December 31, 2013 and December 31, 2012 were $2.3 million and $0.9 million, respectively. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2013 | |
DEBT | ' |
DEBT | ' |
8. DEBT | |
The Company entered into a credit facility with Comerica Bank (“Comerica”) consisting of a revolving line of credit, which was amended in June 2013, under which the Company may borrow up to $10.0 million of non-collateralized debt. The revolving line of credit is effective through June 1, 2015. Interest on borrowings under the line of credit is based on Comerica’s base (prime) rate minus 1% to 1.5%, or London Interbank Offered Rates plus an additional percentage of 1.25% to 1.75%, depending upon certain financial ratios maintained by the Company. The Company had no outstanding borrowings on this line of credit at December 31, 2013. Under this revolving line of credit, the Company may also issue standby Letters of Credit with an aggregate amount of up to $4.0 million. The fee on the standby Letters of Credit ranges from 1.00% to 1.50% depending upon certain financial ratios maintained by the Company. The Company had no outstanding standby Letters of Credit at December 31, 2013. | |
The Company’s debt of $1.3 million and $0.5 million at December 31, 2013 and 2012, respectively, consisted of capital leases, collateralized by vehicles, payable over 12 months in monthly installments at various effective interest rates, with final payments ending on or before December 31, 2014. | |
At December 31, 2013 and 2012, the assets acquired under capital leases had a net book value of $4.2 million and $3.2 million, net of accumulated depreciation of $2.3 million and $2.5 million, respectively. | |
Interest expense for capital lease obligations amounted to $0.05 million for each of the years ended December 31, 2013, 2012 and 2011, respectively. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
COMMITMENTS AND CONTINGENCIES | ' | ||||
COMMITMENTS AND CONTINGENCIES | ' | ||||
9. COMMITMENTS AND CONTINGENCIES | |||||
The Company is obligated under various non-cancellable lease agreements providing for office space, warehouse space, and automobiles that expire at various dates through the year 2019. | |||||
Rent expense under operating leases was $7.4 million, $4.6 million and $4.1 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||
Future minimum rental payments at December 31, 2013 under the operating leases referred to above are as follows: | |||||
Year Ending December 31: | |||||
2014 | $ | 5,050 | |||
2015 | 4,958 | ||||
2016 | 4,207 | ||||
2017 | 1,089 | ||||
2018 | 493 | ||||
2019 and thereafter | 1,577 | ||||
$ | 17,374 | ||||
Contractual obligations – The Company has the following contractual obligations related primarily to sponsorships and other commitments as of December 31, 2013: | |||||
Year Ending December 31: | |||||
2014 | $ | 60,241 | |||
2015 | 23,505 | ||||
2016 | 9,694 | ||||
2017 | 500 | ||||
2018 | - | ||||
2019 and thereafter | - | ||||
$ | 93,940 | ||||
On August 12, 2013, the Company moved into its new corporate headquarters located in Corona, CA, which was previously acquired by the Company in October 2012. | |||||
Purchase Commitments – The Company has purchase commitments aggregating approximately $44.5 million at December 31, 2013, which represent commitments made by the Company and its subsidiaries to various suppliers of raw materials for the production of its products. These obligations vary in terms, but are generally satisfied within one year. | |||||
The Company purchases various raw material items, including, but not limited to, flavors, ingredients, dietary ingredients, containers, milk, cream and protein, from a limited number of resources. An interruption in supply from any of such resources could result in the Company’s inability to produce certain products for limited or possibly extended periods of time. The aggregate value of purchases from suppliers of such limited resources described above for the years ended December 31, 2013, 2012 and 2011 was $282.5 million, $264.2 million and $279.5 million, respectively. | |||||
Value Added Tax (“VAT”) – The Company sought guidance from Her Majesty’s Revenue & Customs (“HMRC”), the VAT taxing authority in the United Kingdom, to ascertain if the Company should have charged VAT to certain customers in the United Kingdom on a portion of the Company’s sales to those customers beginning in 2010. The Company did not receive conclusive guidance from HMRC and is considering alternative ways to clarify its tax position on this matter. Should it be determined that the Company should have charged VAT on such sales, the VAT would represent only a pass-through tax to our customers in the United Kingdom. Therefore, any related adjustment should represent an accounts receivable and accounts payable gross-up on the balance sheet and have no impact on the Company’s results of operations. The Company estimates the maximum amount of the potential VAT pass-through tax to be $49.7 million at December 31, 2013 ($33.2 million at December 31, 2012). If it is determined that the Company should have charged VAT on such sales, it is possible that a tax penalty may be assessed by HMRC. However, the Company believes any such penalty would not have a material impact on its financial position, results of operations or liquidity. | |||||
Guarantees – The Company from time to time enters into certain types of contracts that contingently require the Company to indemnify parties against third party claims. These contracts primarily relate to: (i) certain agreements with the Company’s officers, directors and employees under which the Company may be required to indemnify such persons for liabilities arising out of their employment relationship, (ii) certain distribution or purchase agreements under which the Company may have to indemnify the Company’s customers from any claim, liability or loss arising out of any actual or alleged injury or damages suffered in connection with the consumption or purchase of the Company’s products or the use of Company trademarks, and (iii) certain real estate leases, under which the Company may be required to indemnify property owners for liabilities and other claims arising from the Company’s use of the applicable premises. The terms of such obligations vary and typically, a maximum obligation is not explicitly stated. Generally, the Company believes that its insurance coverage is adequate to cover any resulting liabilities or claims. | |||||
Litigation – On October 17, 2012, Wendy Crossland and Richard Fournier filed a lawsuit in the Superior Court of the State of California, County of Riverside, styled Wendy Crossland and Richard Fournier v. Monster Beverage Corporation, against the Company claiming that the death of their 14 year old daughter (Anais Fournier) was caused by her consumption of two 24-ounce Monster Energy® drinks over the course of two days in December 2011. The plaintiffs allege strict product liability, negligence, fraudulent concealment, breach of implied warranties and wrongful death. The plaintiffs claim general damages in excess of $25,000 and punitive damages. The Company filed a demurrer and a motion to strike the plaintiffs’ complaint on November 19, 2012, and the plaintiffs filed a first amended complaint on December 19, 2012. The Company filed its answer to the first amended complaint on June 7, 2013. The parties attended a court ordered mediation on January 23, 2014. Discovery has commenced but no trial date has been set. The Company believes that the plaintiffs’ complaint is without merit and plans a vigorous defense. The Company also believes that any such damages, if awarded, would not have a material adverse effect on the Company’s financial position or results of operations. | |||||
The Company has also been named as a defendant in other complaints containing similar allegations to those presented in the Fournier lawsuit, each of which the Company believes is also without merit and would not have a material adverse effect on the Company’s financial position or results of operations in the event any damages were awarded. | |||||
Securities Litigation – On September 11, 2008, a federal securities class action complaint styled Cunha v. Hansen Natural Corp., et al. was filed in the United States District Court for the Central District of California (the “District Court”). On September 17, 2008, a second federal securities class action complaint styled Brown v. Hansen Natural Corp., et al. was also filed in the District Court. After the District Court consolidated the two actions and appointed the Structural Ironworkers Local Union #1 Pension Fund as lead plaintiff, a Consolidated Complaint for Violations of Federal Securities Laws was filed on August 28, 2009 (the “Consolidated Class Action Complaint”). | |||||
The Consolidated Class Action Complaint purported to be brought on behalf of a class of purchasers of the Company’s stock during the period November 9, 2006 through November 8, 2007 (the “Class Period”). It named as defendants the Company, Rodney C. Sacks, Hilton H. Schlosberg, and Thomas J. Kelly. Plaintiff principally alleged that, during the Class Period, the defendants made false and misleading statements relating to the Company’s distribution coordination agreements with Anheuser-Busch, Inc. (“AB”) and its sales of “Allied” energy drink lines, and engaged in sales of shares in the Company on the basis of material non-public information. Plaintiff also alleged that the Company’s financial statements for the second quarter of 2007 did not include certain promotional expenses. The Consolidated Class Action Complaint alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, and sought an unspecified amount of damages. | |||||
The District Court dismissed the Consolidated Class Action Complaint, with leave to amend, on July 12, 2010. Plaintiff thereafter filed a Consolidated Amended Class Action Complaint for Violations of Federal Securities Laws on August 27, 2010 (the “Amended Class Action Complaint”). While similar in many respects to the Consolidated Class Action Complaint, the Amended Class Action Complaint dropped certain of the allegations set forth in the Consolidated Class Action Complaint and made certain new allegations, including that the Company engaged in “channel stuffing” during the Class Period that rendered false or misleading the Company’s reported sales results and certain other statements made by the defendants. In addition, it no longer named Thomas J. Kelly as a defendant. | |||||
On September 4, 2012, the District Court dismissed certain of the claims in the Amended Class Action Complaint, including plaintiff’s allegations relating to promotional expenses, but denied defendants’ motion to dismiss with regard to the majority of plaintiff’s claims, including plaintiff’s channel stuffing allegations. Plaintiff filed a motion seeking class certification on December 6, 2012, which the court denied, without prejudice, on January 17, 2014. Fact discovery in the action was stayed pending resolution of the class certification motion. | |||||
Following a mediation conducted by an independent mediator, the parties are currently negotiating the terms of a possible settlement of the action. On February 11, 2014, the District Court entered an Order staying the action to allow the parties time to complete their negotiations and to prepare and file papers seeking approval of any proposed settlement. A status conference is scheduled for March 13, 2014. Management believes that any potential settlement, if completed, will be fully paid by insurance and will not have a material adverse effect on the Company’s financial position or results of operations. | |||||
State Attorney General Inquiry – In July 2012, the Company received a subpoena from a state attorney general in connection with an investigation concerning the Company’s advertising, marketing, promotion, ingredients, usage and sale of its Monster Energy® brand of energy drinks. As the investigation is in an early stage, it is unknown what, if any, action the state attorney general may take against the Company, the relief which may be sought in the event of any such proceeding or whether such proceeding could have a material adverse effect on the Company’s business, financial condition or results of operations. | |||||
San Francisco City Attorney Litigation. On October 31, 2012, the Company received a written request for information from the City Attorney for the City and County of San Francisco concerning the Company’s advertising and marketing of its Monster Energy® brand of energy drinks and specifically concerning the safety of its products for consumption by adolescents. In a letter dated March 29, 2013, the San Francisco City Attorney threatened to bring suit against the Company if it did not agree to take the following five steps immediately: (i) “Reformulate its product to lower the caffeine content to safe levels”; (ii) “Provide adequate warning labels”; (iii) “Cease promoting over-consumption in marketing”; (iv) “Cease use of alcohol and drug references in marketing”; and (v) “Cease targeting minors.” | |||||
On April 29, 2013, the Company and its wholly owned subsidiary, Monster Energy Company, filed a complaint for declaratory and injunctive relief against the San Francisco City Attorney in United States District Court for the Central District of California (the “Central District Court”), styled Monster Beverage Corp., et al. v. Dennis Herrera. The Company seeks a declaration from the Central District Court that the San Francisco City Attorney’s investigation and demands are impermissible and preempted, subject to the doctrine of primary jurisdiction, are unconstitutional in that they violate the First and Fourteenth Amendments’ prohibitions against compelled speech, content-based speech and commercial speech, are impermissibly void-for-vagueness, and/or violate the Commerce Clause. On June 3, 2013, the City Attorney filed a motion to dismiss the Company’s complaint, arguing in part that the complaint should be dismissed in light of the San Francisco Action (described below) filed on May 6, 2013. On August 22, 2013, the Central District Court granted in part and denied in part the City Attorney’s motion. | |||||
On October 17, 2013 (after the San Francisco Action described below was remanded to San Francisco Superior Court), the City Attorney filed a renewed motion to dismiss and on December 16, 2013, the Central District Court granted the City Attorney’s renewed motion, dismissing the action. The Company filed a Notice of Appeal to the Ninth Circuit on December 18, 2013. | |||||
On May 6, 2013, the San Francisco City Attorney filed a complaint for declaratory and injunctive relief, civil penalties and restitution for alleged violation of California’s Unfair Competition Law, Business & Professions Code sections 17200, et seq., styled People Of The State Of California ex rel. Dennis Herrera, San Francisco City Attorney v. Monster Beverage Corporation, San Francisco Superior Court (the “San Francisco Action”). The City Attorney alleges that the Company (1) mislabeled its products as a dietary supplement, in violation of California’s Sherman Food, Drug and Cosmetic Law, California Health & Safety Code sections 109875 et. seq.; (2) is selling an “adulterated” product because caffeine is not generally recognized as safe (“GRAS”) due to the alleged lack of scientific consensus concerning the safety of the levels of caffeine in the Company’s products; and (3) is engaged in unfair and misleading business practices because its marketing (a) does not disclose the health risks that energy drinks pose for children and teens; (b) fails to warn against and promotes unsafe consumption; (c) implicitly promotes mixing of energy drinks with alcohol or drugs; and (d) is deceptive because it includes unsubstantiated claims about the purported special benefits of its “killer” ingredients and “energy blend.” The City Attorney seeks a declaration that the Company has engaged in unfair and unlawful business acts and practices in violation of the Unfair Competition Law; an injunction from performing or proposing to perform any acts in violation of the Unfair Competition Law; restitution; and civil penalties. On June 3, 2013, the Company removed the case to the United States District Court for the Northern District of California (the “Northern District Court”). On July 3, 2013, the City Attorney filed a motion to remand the case back to state court. On September 18, 2013, the Northern District Court granted the City Attorney’s motion to remand the San Francisco Action back to state court. | |||||
On January 15, 2014, the Company filed a demurrer to and motion to strike allegations in the complaint in the San Francisco Action. The demurrer and motion to strike are currently scheduled for a hearing on March 4, 2014. The Company denies that it has violated the Unfair Competition Law or any other law and believes that the City Attorney’s claims and demands are preempted and unconstitutional, as alleged in the action the Company filed in the Central District Court. The Company intends to vigorously defend against this lawsuit. At this time, no evaluation of the likelihood of an unfavorable outcome or range of potential loss can be expressed. | |||||
In addition to the above matters, the Company has been named as a defendant in various false advertising putative class actions and in a private attorney general action. In these actions, plaintiffs allege that defendants misleadingly labeled and advertised Monster Energy® brand products that allegedly were ineffective for the advertised benefits (including, but not limited to, an allegation that the products do not hydrate as advertised because they contain caffeine). The plaintiffs further allege that the Monster Energy® brand products at issue are unsafe because they contain one or more ingredients that allegedly could result in illness, injury or death. In connection with these product safety allegations, the plaintiffs claim that the product labels did not provide adequate warnings and/or that the Company did not include sufficiently specific statements with respect to contra-indications and/or adverse reactions associated with the consumption of its energy drink products (including, but not limited to, claims that certain ingredients, when consumed individually or in combination with other ingredients, could result in high blood pressure, palpitations, liver damage or other negative health effects and/or that the products themselves are unsafe). Based on these allegations, the plaintiffs assert claims for violation of state consumer protection statutes, including unfair competition and false advertising statutes, and for breach of warranty and unjust enrichment. In their prayers for relief, the plaintiffs seek, inter alia, compensatory and punitive damages, restitution, attorneys’ fees, and, in some cases, injunctive relief. The Company regards these cases and allegations as having no merit. Furthermore, the Company is subject to litigation from time to time in the normal course of business, including intellectual property litigation and claims from terminated distributors. Although it is not possible to predict the outcome of such litigation, based on the facts known to the Company, management believes that such litigation in the aggregate will likely not have a material adverse effect on the Company’s financial position or results of operations. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | ' | |||||||
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | ' | |||||||
10. ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | ||||||||
The components of accumulated other comprehensive (loss) income are as follows at December 31: | ||||||||
2013 | 2012 | |||||||
Accumulated net unrealized gain on available-for-sale securities, net of tax benefit of $1.0 million | $ | - | $ | 1,525 | ||||
Foreign currency translation adjustments | -1,233 | 549 | ||||||
Total accumulated other comprehensive (loss) income | $ | -1,233 | $ | 2,074 |
TREASURY_STOCK_PURCHASE
TREASURY STOCK PURCHASE | 12 Months Ended |
Dec. 31, 2013 | |
TREASURY STOCK PURCHASE | ' |
TREASURY STOCK PURCHASE | ' |
11. TREASURY STOCK PURCHASE | |
On November 13, 2012, the Company’s Board of Directors authorized a share repurchase program for the repurchase of up to $250.0 million of the Company’s outstanding common stock (the “November 2012 Repurchase Plan”). During the year ended December 31, 2013, the Company purchased 0.257 million shares of common stock at an average purchase price of $51.99 per share for a total amount of $13.4 million (excluding broker commissions), which exhausted the availability under the November 2012 Repurchase Plan. | |
On April 7, 2013, the Company’s Board of Directors authorized a new share repurchase program for the repurchase of up to $200.0 million of the Company’s outstanding common stock (the “April 2013 Repurchase Plan”). During the year ended December 31, 2013, the Company purchased 0.951 million shares of common stock at an average purchase price of $56.98 per share for a total amount of $54.2 million (excluding broker commissions). | |
During the year ended December 31, 2013, 1,415 shares were purchased from employees in lieu of cash payments for options exercised or withholding taxes due for a total amount of $0.1 million. While such purchases are considered common stock repurchases, they are not counted as purchases against the Company’s authorized share repurchase programs, including the November 2012 Repurchase Plan and the April 2013 Repurchase Plan. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
STOCK-BASED COMPENSATION | ' | ||||||||||||
STOCK-BASED COMPENSATION | ' | ||||||||||||
12. STOCK-BASED COMPENSATION | |||||||||||||
The Company has two stock-based compensation plans under which shares were available for grant at December 31, 2013: the Monster Beverage Corporation 2011 Omnibus Incentive Plan (the “2011 Omnibus Incentive Plan”) and the 2009 Monster Beverage Corporation Stock Incentive Plan for Non-Employee Directors (the “2009 Directors Plan”). | |||||||||||||
The 2011 Omnibus Incentive Plan permits the granting of options, stock appreciation rights, restricted stock, restricted stock units, performance awards and other stock-based awards up to an aggregate of 14,500,000 shares of the common stock of the Company to employees or consultants of the Company and its subsidiaries. Shares authorized under the 2011 Omnibus Incentive Plan are reduced by 2.16 shares for each share granted or issued with respect to a Full Value Award. A Full Value Award is an award other than an incentive stock option, a non-qualified stock option, or a stock appreciation right, which is settled by the issuance of shares. Options granted under the 2011 Omnibus Incentive Plan may be incentive stock options under Section 422 of the Internal Revenue Code, as amended, or non-qualified stock options. The Compensation Committee of the Board of Directors (the “Compensation Committee”) has sole and exclusive authority to grant stock awards to all employees who are not new hires and to all new hires who are subject to Section 16 of the Exchange Act. The Compensation Committee and the Executive Committee of the Board of Directors (the “Executive Committee”) each independently has the authority to grant stock awards to new hires who are not Section 16 employees. Awards granted by the Executive Committee are not subject to approval or ratification by the Board or the Compensation Committee. Options granted under the 2011 Omnibus Incentive Plan generally vest over a five-year period from the grant date and are generally exercisable up to 10 years after the grant date. As of December 31, 2013, 2,745,630 shares of the Company’s common stock have been granted, net of cancellations, and 10,727,561 shares of the Company’s common stock remain available for grant under the 2011 Omnibus Incentive Plan. | |||||||||||||
The 2009 Directors Plan permits the granting of options, stock appreciation rights (each, an “SAR”), and other stock-based awards to purchase up to an aggregate of 1,600,000 shares of common stock of the Company to non-employee directors of the Company. The 2009 Directors Plan is administered by the Board of Directors. Each award granted under the 2009 Directors Plan will be evidenced by a written agreement and will contain the terms and conditions that the Board of Directors deems appropriate. The Board of Directors may grant such awards on the last business day prior to the date of the annual meeting of stockholders. Any award granted under the 2009 Directors Plan will vest, with respect to 100% of such award, on the last business day prior to the date of the annual meeting, in the calendar year following the calendar year in which such award is granted. The Board of Directors may determine the exercise price per share of the Company’s common stock under each option, but such price may not be less than 100% of the closing price of the Company’s common stock on the date an option is granted. Option grants may be made under the 2009 Directors Plan for 10 years from June 4, 2009. The Board of Directors may also grant SARs, independently, or in connection with an option grant. The Board of Directors may determine the exercise price per share of the Company’s common stock under each SAR, but such price may not be less than the greater of (i) the fair market value of a share on the date the SAR is granted and (ii) the price of the related option, if the SAR is granted in connection with an option grant. Additionally, the Board of Directors may grant other stock-based awards, which include awards of shares of the Company’s common stock, restricted shares of the Company’s common stock, and awards that are valued based on the fair market value of shares of the Company’s common stock. SARs and other stock-based awards are subject to the general provisions of the 2009 Directors Plan. The Board of Directors may amend or terminate the 2009 Directors Plan at any time. As of December 31, 2013, options to purchase 70,655 shares of the Company’s common stock had been granted under the 2009 Directors Plan, and options to purchase 1,529,345 shares of the Company’s common stock remained available for grant. | |||||||||||||
The Company recorded $28.8 million, $28.4 million and $19.4 million of compensation expense relating to outstanding options, restricted stock awards, stock appreciation rights and restricted stock units during the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
The excess tax benefit realized for tax deductions from non-qualified stock option exercises, disqualifying dispositions of incentive stock options, vesting of restricted stock units and restricted stock awards for the years ended December 31, 2013, 2012 and 2011 was $30.3 million, $19.7 million and $3.8 million, respectively. | |||||||||||||
Stock Options | |||||||||||||
Under the Company’s stock-based compensation plans, all stock options granted as of December 31, 2013 were granted at prices based on the fair value of the Company’s common stock on the date of grant. The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes-Merton option pricing formula with the assumptions included in the table below. The Company records compensation expense for non-employee stock options based on the estimated fair value of the options as of the earlier of (1) the date at which a commitment for performance by the non-employee to earn the stock option is reached or (2) the date at which the non-employee’s performance is complete, using the Black-Scholes-Merton option pricing formula with the assumptions included in the table below. The Company uses historical data to determine the exercise behavior, volatility and forfeiture rate of the options. | |||||||||||||
The following weighted-average assumptions were used to estimate the fair value of options granted during: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Dividend yield | 0.0 % | 0.0 % | 0.0 % | ||||||||||
Expected volatility | 47.5 % | 48.1 % | 53.6 % | ||||||||||
Risk free interest rate | 0.98 % | 0.74 % | 1.5 % | ||||||||||
Expected term | 5.7 Years | 5.4 Years | 5.8 Years | ||||||||||
Expected Volatility: The Company uses historical volatility as it provides a reasonable estimate of the expected volatility. Historical volatility is based on the most recent volatility of the stock price over a period of time equivalent to the expected term of the option. | |||||||||||||
Risk-Free Interest Rate: The risk-free interest rate is based on the U.S. Treasury zero coupon yield curve in effect at the time of grant for the expected term of the option. | |||||||||||||
Expected Term: The Company’s expected term represents the weighted-average period that the Company’s stock options are expected to be outstanding. The expected term is based on expected time to post-vesting exercise of options by employees. The Company uses historical exercise patterns of previously granted options to derive employee behavioral patterns used to forecast expected exercise patterns. | |||||||||||||
The following table summarizes the Company’s activities with respect to its stock option plans as follows: | |||||||||||||
Weighted- | |||||||||||||
Weighted- | Average | ||||||||||||
Average | Remaining | ||||||||||||
Number of | Exercise | Contractual | |||||||||||
Shares (In | Price Per | Term (In | Aggregate | ||||||||||
Options | Thousands) | Share | Years) | Intrinsic Value | |||||||||
Outstanding at January 1, 2013 | 14,000 | $ | 12.12 | 4.1 | $ | 572,530 | |||||||
Granted 01/01/13 - 03/31/13 | 636 | $ | 47.36 | ||||||||||
Granted 04/01/13 - 06/30/13 | 450 | $ | 54 | ||||||||||
Granted 07/01/13 - 09/30/13 | - | $ | - | ||||||||||
Granted 10/01/13 - 12/31/13 | 106 | $ | 57.76 | ||||||||||
Exercised | (2,022 | ) | $ | 10.51 | |||||||||
Cancelled or forfeited | (197 | ) | $ | 27.28 | |||||||||
Outstanding at December 31, 2013 | 12,973 | $ | 15.7 | 3.7 | $ | 675,595 | |||||||
Vested and expected to vest in the future at December 31, 2013 | 12,639 | $ | 14.89 | 3.6 | $ | 668,379 | |||||||
Exercisable at December 31, 2013 | 10,401 | $ | 9.38 | 2.7 | $ | 607,302 | |||||||
The following table summarizes information about stock options outstanding and exercisable at December 31, 2013: | |||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||
Range of Exercise | Number | Weighted | Weighted | Number | Weighted | ||||||||
Prices ($) | Outstanding (In | Average | Average | Exercisable | Average | ||||||||
Thousands) | Remaining | Exercise | (In | Exercise | |||||||||
Contractual | Price ($) | Thousands) | Price ($) | ||||||||||
Term (Years) | |||||||||||||
$2.09 - $2.09 | 43 | 1 | $2.09 | 43 | $2.09 | ||||||||
$3.29 - $3.29 | 4,400 | 1.2 | $3.29 | 4,400 | $3.29 | ||||||||
$5.72 - $6.21 | 23 | 1.8 | $6.11 | 23 | $6.11 | ||||||||
$8.44 - $8.44 | 2,445 | 1.9 | $8.44 | 2,445 | $8.44 | ||||||||
$11.36 - $15.60 | 145 | 4.8 | $13.43 | 143 | $13.39 | ||||||||
$15.86 - $15.86 | 1,777 | 4.4 | $15.86 | 1,777 | $15.86 | ||||||||
$15.94 - $17.82 | 1,381 | 5.9 | $17.75 | 1,000 | $17.77 | ||||||||
$18.07 - $47.13 | 1,796 | 7.3 | $33.11 | 553 | $24.05 | ||||||||
$47.65 - $70.54 | 956 | 9.1 | $56.25 | 16 | $62.65 | ||||||||
$74.78 - $74.78 | 7 | 8.5 | $74.78 | 1 | $74.78 | ||||||||
12,973 | 3.7 | $15.70 | 10,401 | $9.38 | |||||||||
The weighted-average grant-date fair value of options granted during the years ended December 31, 2013, 2012 and 2011 was $22.57 per share, $25.21 per share and $18.45 per share, respectively. The total intrinsic value of options exercised during the years ended December 31, 2013, 2012 and 2011 was $91.6 million, $248.8 million and $23.0 million, respectively. | |||||||||||||
Cash received from option exercises under all plans for the years ended December 31, 2013, 2012 and 2011 was approximately $21.3 million, $10.3 million and $20.3 million, respectively. | |||||||||||||
At December 31, 2013, there was $40.3 million of total unrecognized compensation expense related to nonvested options granted to employees under the Company’s share-based payment plans. That cost is expected to be recognized over a weighted-average period of 2.7 years. | |||||||||||||
Restricted Stock Awards and Restricted Stock Units | |||||||||||||
Stock-based compensation cost for restricted stock awards and restricted stock units is measured based on the closing fair market value of the Company’s common stock at the date of grant. In the event that the Company has the option and intent to settle a restricted stock unit in cash, the award is classified as a liability and revalued at each balance sheet date. Total cash paid to settle restricted stock unit liabilities and the increase in the liabilities for future cash settlements during the years ended December 31, 2013 and 2012 were not material. | |||||||||||||
The following table summarizes the Company’s activities with respect to non-vested restricted stock awards and non-vested restricted stock units as follows: | |||||||||||||
Weighted | |||||||||||||
Number of | Average | ||||||||||||
Shares (in | Grant-Date | ||||||||||||
thousands) | Fair Value | ||||||||||||
Non-vested at January 1, 2013 | 637 | $ | 46.97 | ||||||||||
Granted 01/01/13 - 03/31/13 | 8 | $ | 50.89 | ||||||||||
Granted 04/01/13 - 06/30/13 | 15 | $ | 54.64 | ||||||||||
Granted 07/01/13 - 09/30/13 | - | $ | - | ||||||||||
Granted 10/01/13 - 12/31/13 | 5 | $ | 54.57 | ||||||||||
Vested | -262 | $ | 43.87 | ||||||||||
Forfeited/cancelled | -12 | $ | 54.67 | ||||||||||
Non-vested at December 31, 2013 | 391 | $ | 49.27 | ||||||||||
The weighted-average grant-date fair value of restricted stock units and restricted stock awards granted during the years ended December 31, 2013, 2012 and 2011 was $53.50, $61.73 and $41.65 per share, respectively. As of December 31, 2013, 0.4 million of restricted stock units and restricted stock awards are expected to vest. | |||||||||||||
At December 31, 2013, total unrecognized compensation expense relating to non-vested restricted stock awards and non-vested restricted stock units was $13.8 million, which is expected to be recognized over a weighted-average period of 1.9 years. | |||||||||||||
Employee and Non-Employee Share-Based Compensation Expense | |||||||||||||
The table below shows the amounts recognized in the consolidated financial statements for the twelve-months ended December 31, 2013, 2012 and 2011 for share-based compensation related to employees and non-employees. Employee and non-employee share-based compensation expense of $28.8 million for the year ended December 31, 2013 is comprised of $5.2 million that relates to incentive stock options and $23.6 million that relates to non-qualified stock options and restricted units and awards. Employee and non-employee share-based compensation expense of $28.4 million for the year ended December 31, 2012 is comprised of $5.1 million that relates to incentive stock options and $23.3 million that relates to non-qualified stock options and restricted units and awards. Employee and non-employee share-based compensation expense of $19.4 million for the year ended December 31, 2011 is comprised of $4.9 million that relates to incentive stock options and $14.5 million that relates to non-qualified stock options and restricted units and awards. The portion of share-based compensation expense that relates to incentive stock options has not been considered in the tax benefit computation below. | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Operating expenses | $ | 28,764 | $ | 28,413 | $ | 19,424 | |||||||
Total employee and non-employee share-based compensation expense included in income, before income tax | 28,764 | 28,413 | 19,424 | ||||||||||
Less: Amount of income tax benefit recognized in earnings | -7,730 | -8,933 | -6,646 | ||||||||||
Amount charged against net income | $ | 21,034 | $ | 19,480 | $ | 12,778 | |||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
INCOME TAXES | ' | ||||||||||
INCOME TAXES | ' | ||||||||||
13. INCOME TAXES | |||||||||||
Components of the provision for income taxes are as follows: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Current: | |||||||||||
Federal | $ | 191,596 | $ | 177,372 | $ | 146,385 | |||||
State | 36,662 | 30,268 | 22,526 | ||||||||
Foreign | 4,052 | 3,951 | 2,827 | ||||||||
232,310 | 211,591 | 171,738 | |||||||||
Deferred: | |||||||||||
Federal | -7,441 | -743 | 634 | ||||||||
State | -1,443 | -483 | 465 | ||||||||
Foreign | -9,694 | -7,373 | -3,583 | ||||||||
-18,578 | -8,599 | -2,484 | |||||||||
Valuation allowance | 11,501 | 6,142 | 1,797 | ||||||||
$ | 225,233 | $ | 209,134 | $ | 171,051 | ||||||
The differences in the total provision for income taxes that would result from applying the 35% federal statutory rate to income before provision for income taxes and the reported provision for income taxes are as follows: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
U.S. Federal tax expense at statutory rates | $ | 197,363 | $ | 192,204 | $ | 160,045 | |||||
State income taxes, net of federal tax benefit | 22,640 | 20,252 | 14,917 | ||||||||
Permanent differences | 936 | 5,968 | 1,176 | ||||||||
Domestic production deduction | -16,039 | -15,469 | -11,551 | ||||||||
Other | 266 | -388 | 1,538 | ||||||||
Foreign rate differential | 8,566 | 425 | 3,129 | ||||||||
Valuation allowance | 11,501 | 6,142 | 1,797 | ||||||||
$ | 225,233 | $ | 209,134 | $ | 171,051 | ||||||
Major components of the Company’s deferred tax assets (liabilities) at December 31 are as follows: | |||||||||||
2013 | 2012 | ||||||||||
Deferred Tax Assets: | |||||||||||
Reserve for sales returns | $ | 583 | $ | 145 | |||||||
Reserve for doubtful accounts | 62 | 28 | |||||||||
Reserve for inventory obsolescence | 2,060 | 2,753 | |||||||||
Reserve for marketing development fund | 9,470 | 4,595 | |||||||||
Capitalization of inventory costs | 1,949 | 1,524 | |||||||||
State franchise tax | 6,043 | 5,268 | |||||||||
Accrued compensation | 867 | 49 | |||||||||
Accrued other liabilities | 4,871 | 1,825 | |||||||||
Deferred revenue | 50,813 | 49,597 | |||||||||
Stock-based compensation | 21,963 | 19,965 | |||||||||
Securities impairment | 273 | 2,104 | |||||||||
Foreign net operating loss carryforward | 19,346 | 13,529 | |||||||||
Prepaid supplies | 4,639 | 2,008 | |||||||||
Total gross deferred tax assets | $ | 122,939 | $ | 103,390 | |||||||
Deferred Tax Liabilities: | |||||||||||
Amortization of trademarks | $ | -10,393 | $ | -9,179 | |||||||
Unrealized gain on available-for-sale investments | - | -1,006 | |||||||||
Amortization of graphic design | -94 | -81 | |||||||||
Depreciation | -5,828 | -5,304 | |||||||||
Total gross deferred tax liabilities | -16,315 | -15,570 | |||||||||
Valuation Allowance | -22,089 | -11,316 | |||||||||
Net deferred tax assets | $ | 84,535 | $ | 76,504 | |||||||
During the years ended December 31, 2013, 2012 and 2011, the Company established full valuation allowances against deferred tax assets, resulting from cumulative net operating losses incurred by certain foreign subsidiaries of the Company. The effect of the valuation allowances and their related impact on the Company’s overall tax rate was to increase the Company’s provision for income taxes by $10.8 million, $6.1 million, and $1.8 million for the years ended December 31, 2013, 2012 and 2011, respectively. At December 31, 2013, the Company had net operating loss carryforwards of approximately $95.1 million. Of this amount, $73.9 million may be carried forward indefinitely. The remaining $21.2 million will begin to expire in 2017. | |||||||||||
The following is a rollforward of the Company’s total gross unrecognized tax benefits, not including interest and penalties, for the years ended December 31, 2013, 2012 and 2011: | |||||||||||
Gross Unrealized Tax | |||||||||||
Benefits | |||||||||||
Balance at January 1, 2011 | $ | 465 | |||||||||
Additions for tax positions related to the current year | - | ||||||||||
Additions for tax positions related to the prior year | 1,445 | ||||||||||
Decreases for tax positions related to prior years | - | ||||||||||
Balance at December 31, 2011 | $ | 1,910 | |||||||||
Additions for tax positions related to the current year | - | ||||||||||
Additions for tax positions related to the prior year | 520 | ||||||||||
Decreases for tax positions related to prior years | -1,504 | ||||||||||
Balance at December 31, 2012 | $ | 926 | |||||||||
Additions for tax positions related to the current year | - | ||||||||||
Additions for tax positions related to the prior year | 9 | ||||||||||
Decreases for tax positions related to prior years | - | ||||||||||
Balance at December 31, 2013 | $ | 935 | |||||||||
The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Company’s condensed consolidated financial statements. As of December 31, 2013, the Company had accrued approximately $0.4 million in interest and penalties related to unrecognized tax benefits. If the Company were to prevail on all uncertain tax positions it would not have a significant impact on the Company’s effective tax rate. | |||||||||||
It is expected that the amount of unrecognized tax benefits will not significantly change within the next 12 months. | |||||||||||
On March 8, 2013, the Internal Revenue Service (“IRS”) began its examination of the Company’s U.S. federal income tax returns for the years ended December 31, 2010 and 2011. The Company is also in various stages of examination with certain states. | |||||||||||
The Company is subject to U.S. federal income tax as well as to income tax in multiple state and foreign jurisdictions. Federal income tax returns are subject to IRS examination for the 2010, 2011 and 2012 tax years. State income tax returns are subject to examination for the 2009 through 2012 tax years. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
EARNINGS PER SHARE | ' | |||||||
EARNINGS PER SHARE | ' | |||||||
14. EARNINGS PER SHARE | ||||||||
A reconciliation of the weighted average shares used in the basic and diluted earnings per common share computations for the years ended December 31, 2013, 2012 and 2011 is presented below (in thousands): | ||||||||
2013 | 2012 | 2011 | ||||||
Weighted-average shares outstanding: | ||||||||
Basic | 166,679 | 173,712 | 176,212 | |||||
Dilutive securities | 6,708 | 9,371 | 10,462 | |||||
Diluted | 173,387 | 183,083 | 186,674 | |||||
For the years ended December 31, 2013, 2012 and 2011, options and awards outstanding totaling 1.3 million shares, 0.3 million shares and 0.3 million shares respectively, were excluded from the calculations as their effect would have been antidilutive. |
EMPLOYEE_BENEFIT_PLAN
EMPLOYEE BENEFIT PLAN | 12 Months Ended |
Dec. 31, 2013 | |
EMPLOYEE BENEFIT PLAN | ' |
EMPLOYEE BENEFIT PLAN | ' |
15. EMPLOYEE BENEFIT PLAN | |
Employees of the Company may participate in the Monster Beverage Corporation 401(k) Plan, a defined contribution plan, which qualifies under Section 401(k) of the Internal Revenue Code. Participating employees may contribute up to 15% of their pretax salary up to statutory limits. The Company contributes 25% of the employee contribution, up to 8% of each employee’s earnings, which vest 20% each year for five years after the first anniversary date. Matching contributions were $0.6 million, $0.5 million and $0.5 million for the years ended December 31, 2013, 2012 and 2011, respectively. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||||||
16. SEGMENT INFORMATION | ||||||||||||||||||
The Company has two reportable segments, namely Direct Store Delivery (“DSD”), whose principal products comprise energy drinks, and Warehouse (“Warehouse”), whose principal products comprise juice based and soda beverages. The DSD segment develops, markets and sells products primarily through an exclusive distributor network, whereas the Warehouse segment develops, markets and sells products primarily direct to retailers. Corporate and unallocated amounts that do not relate to DSD or Warehouse segments specifically have been allocated to “Corporate & Unallocated.” No asset information has been provided for the Company’s reportable segments as management does not measure or allocate assets on a segment basis. | ||||||||||||||||||
The net revenues derived from DSD and Warehouse segments and other financial information related thereto for the years ended December 31, 2013, 2012 and 2011 are as follows: | ||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||
DSD | Warehouse | Corporate | Total | |||||||||||||||
and | ||||||||||||||||||
Unallocated | ||||||||||||||||||
Net sales | $ | 2,147,355 | $ | 99,073 | $ | - | $ | 2,246,428 | ||||||||||
Contribution margin | 726,826 | (1,652 | ) | - | 725,174 | |||||||||||||
Corporate & unallocated expenses | - | - | (152,258 | ) | (152,258 | ) | ||||||||||||
Operating income | 572,916 | |||||||||||||||||
Interest and other income, net | 755 | (2 | ) | (9,775 | ) | (9,022 | ) | |||||||||||
Income before provision for income taxes | 563,894 | |||||||||||||||||
Depreciation & amortization | (19,023 | ) | (244 | ) | (3,446 | ) | (22,713 | ) | ||||||||||
Trademark amortization | - | (44 | ) | (5 | ) | (49 | ) | |||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||
DSD | Warehouse | Corporate | Total | |||||||||||||||
and | ||||||||||||||||||
Unallocated | ||||||||||||||||||
Net sales | $ | 1,966,481 | $ | 94,221 | $ | - | $ | 2,060,702 | ||||||||||
Contribution margin | 660,607 | 3,496 | - | 664,103 | ||||||||||||||
Corporate & unallocated expenses | - | - | (113,480 | ) | (113,480 | ) | ||||||||||||
Operating income | 550,623 | |||||||||||||||||
Interest and other income, net | 494 | (2 | ) | (1,961 | ) | (1,469 | ) | |||||||||||
Income before provision for income taxes | 549,154 | |||||||||||||||||
Depreciation & amortization | (15,660 | ) | (139 | ) | (4,714 | ) | (20,513 | ) | ||||||||||
Trademark amortization | - | (44 | ) | (5 | ) | (49 | ) | |||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||
DSD | Warehouse | Corporate | Total | |||||||||||||||
and | ||||||||||||||||||
Unallocated | ||||||||||||||||||
Net sales | $ | 1,608,326 | $ | 94,904 | $ | - | $ | 1,703,230 | ||||||||||
Contribution margin | 543,210 | 4,291 | - | 547,501 | ||||||||||||||
Corporate & unallocated expenses | - | - | (91,078 | ) | (91,078 | ) | ||||||||||||
Operating income | 456,423 | |||||||||||||||||
Interest and other income, net | (12 | ) | (1 | ) | 860 | 847 | ||||||||||||
Income before provision for income taxes | 457,270 | |||||||||||||||||
Depreciation & amortization | (12,684 | ) | (87 | ) | (4,261 | ) | (17,032 | ) | ||||||||||
Trademark amortization | - | (44 | ) | (8 | ) | (52 | ) | |||||||||||
Revenue is derived from sales to external customers. Operating expenses that pertain to each segment are allocated to the appropriate segment. | ||||||||||||||||||
Corporate and unallocated expenses were $152.3 million for the year ended December 31, 2013 and included $82.5 million of payroll costs, of which $28.8 million was attributable to stock-based compensation expense (see Note 12, “Stock-Based Compensation”), and $38.7 million was attributable to professional service expenses, including accounting and legal costs, and $31.1 million of other operating expenses. Corporate and unallocated expenses were $113.5 million for the year ended December 31, 2012 and included $73.0 million of payroll costs, of which $28.4 million was attributable to stock-based compensation expense (see Note 12, “Stock-Based Compensation”), and $19.7 million was attributable to professional service expenses, including accounting and legal costs, $4.4 million of depreciation and $16.4 million of other operating expenses. Corporate and unallocated expenses were $91.1 million for the year ended December 31, 2011 and included $55.8 million of payroll costs, of which $19.4 million was attributable to stock-based compensation expense (see Note 12, “Stock-Based Compensation”), and $17.8 million was attributable to professional service expenses, including accounting and legal costs, $4.1 million of depreciation and $13.4 million of other operating expenses. | ||||||||||||||||||
CCR, a customer of the DSD segment, accounted for 29%, 28% and 29% of the Company’s net sales for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||||
Net sales to customers outside the United States amounted to $467.2 million, $415.8 million and $300.9 million for the years ended December 31, 2013, 2012 and 2011, respectively. Such sales were approximately 20.8%, 20.2% and 17.7% of net sales for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||||
The Company’s net sales by product line for years ended December 31, 2013, 2012 and 2011, respectively, were as follows: | ||||||||||||||||||
Product Line | 2013 | 2012 | 2011 | |||||||||||||||
Energy drinks | $ | 2,082,238 | $ | 1,906,236 | $ | 1,563,331 | ||||||||||||
Non-carbonated (primarily juice based beverages) | 120,145 | 110,217 | 94,398 | |||||||||||||||
Carbonated (primarily soda beverages) | 29,245 | 31,044 | 32,467 | |||||||||||||||
Other | 14,800 | 13,205 | 13,034 | |||||||||||||||
$ | 2,246,428 | $ | 2,060,702 | $ | 1,703,230 |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2013 | |
RELATED PARTY TRANSACTIONS | ' |
RELATED PARTY TRANSACTIONS | ' |
17. RELATED PARTY TRANSACTIONS | |
Two directors and officers of the Company and their families are principal owners of a company that provides promotional materials to the Company. Expenses incurred with such company in connection with promotional materials purchased during the years ended December 31, 2013, 2012 and 2011 were $1.0 million, $1.0 million and $1.2 million, respectively. | |
A director of the Company was a partner in a law firm (the director resigned from the law firm effective July 10, 2011) that serves as counsel to the Company. Expenses incurred in connection with services rendered by such firm to the Company during the year ended December 31, 2011 were $4.0 million. |
QUARTERLY_FINANCIAL_DATA_Unaud
QUARTERLY FINANCIAL DATA (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
QUARTERLY FINANCIAL DATA (Unaudited) | ' | ||||||||||||||||
QUARTERLY FINANCIAL DATA (Unaudited) | ' | ||||||||||||||||
18. QUARTERLY FINANCIAL DATA (Unaudited) | |||||||||||||||||
Net Income per Common | |||||||||||||||||
Share | |||||||||||||||||
Net Sales | Gross Profit | Net Income | Basic | Diluted | |||||||||||||
Quarter ended: | |||||||||||||||||
March 31, 2013 | $ | 484,223 | $ | 252,039 | $ | 63,496 | $ | 0.38 | $ | 0.37 | |||||||
June 30, 2013 | 630,934 | 336,262 | 106,873 | $ | 0.64 | $ | 0.62 | ||||||||||
September 30, 2013 | 590,422 | 307,470 | 92,187 | $ | 0.55 | $ | 0.53 | ||||||||||
December 31, 2013 | 540,849 | 277,160 | 76,105 | $ | 0.46 | $ | 0.44 | ||||||||||
$ | 2,246,428 | $ | 1,172,931 | $ | 338,661 | ||||||||||||
Quarter ended: | |||||||||||||||||
March 31, 2012 | $ | 454,605 | $ | 241,169 | $ | 76,099 | $ | 0.44 | $ | 0.41 | |||||||
June 30, 2012 | 592,640 | 307,008 | 109,795 | $ | 0.62 | $ | 0.59 | ||||||||||
September 30, 2012 | 541,940 | 273,592 | 86,142 | $ | 0.49 | $ | 0.47 | ||||||||||
December 31, 2012 | 471,517 | 243,887 | 67,984 | $ | 0.4 | $ | 0.39 | ||||||||||
$ | 2,060,702 | $ | 1,065,656 | $ | 340,020 | ||||||||||||
Certain of the figures reported above may differ from previously reported figures for individual quarters due to rounding. |
SCHEDULE_II_VALUATION_AND_QUAL
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | ' | ||||||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | ' | ||||||||||||||
Description | Balance at | Charged to | Deductions | Balance at | |||||||||||
beginning | cost and | end of | |||||||||||||
of period | expenses | period | |||||||||||||
Allowance for doubtful accounts, sales returns and cash discounts: | |||||||||||||||
2013 | $ | 1,430 | $ | 4,894 | $ | (3,398 | ) | $ | 2,926 | ||||||
2012 | $ | 1,893 | $ | 9,148 | $ | (9,611 | ) | $ | 1,430 | ||||||
2011 | $ | 1,870 | $ | 8,368 | $ | (8,345 | ) | $ | 1,893 | ||||||
Allowance on Deferred Tax Assets and Unrecognized Tax Benefits: | |||||||||||||||
2013 | $ | 12,579 | $ | 11,551 | $ | - | $ | 24,130 | |||||||
2012 | $ | 7,592 | $ | 6,142 | $ | (1,155 | ) | $ | 12,579 | ||||||
2011 | $ | 4,003 | $ | 3,589 | $ | - | $ | 7,592 |
ORGANIZATION_AND_SUMMARY_OF_SI1
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
Basis of Presentation | ' |
Basis of Presentation – The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and its consolidated subsidiaries. | |
Principles of Consolidation | ' |
Principles of Consolidation – The Company consolidates all entities that it controls by ownership of a majority voting interest. All intercompany balances and transactions have been eliminated in consolidation. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents – The Company considers all highly liquid investments with an original maturity of three months or less from date of purchase to be cash equivalents. Throughout the year, the Company has had amounts on deposit at financial institutions that exceed the federally insured limits. The Company has not experienced any loss as a result of these deposits and does not expect to incur any losses in the future. | |
Investments | ' |
Investments – The Company’s investments in debt securities are classified as either held-to-maturity, available-for-sale or trading, in accordance with Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) 320. Held-to-maturity securities are those securities that the Company has the positive intent and ability to hold until maturity. Trading securities are those securities that the Company intends to sell in the near term. All other securities not included in the held-to-maturity or trading category are classified as available-for-sale. Held-to-maturity securities are recorded at amortized cost which approximates fair market value. Trading securities are carried at fair value with unrealized gains and losses charged to earnings. Available-for-sale securities are carried at fair value with unrealized gains and losses recorded within accumulated other comprehensive income (loss) as a separate component of stockholders’ equity. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs, where available (see Note 3). Under ASC 320-10-35, a security is considered to be other-than-temporarily impaired if the present value of cash flows expected to be collected are less than the security’s amortized cost basis (the difference being defined as the “Credit Loss”) or if the fair value of the security is less than the security’s amortized cost basis and the investor intends, or will be required, to sell the security before recovery of the security’s amortized cost basis. If an other-than-temporary impairment exists, the charge to earnings is limited to the amount of Credit Loss if the investor does not intend to sell the security, and will not be required to sell the security, before recovery of the security’s amortized cost basis. Any remaining difference between fair value and amortized cost is recognized in other comprehensive income (loss), net of applicable taxes. The Company evaluates whether the decline in fair value of its investments is other-than-temporary at each quarter-end. This evaluation consists of a review by management, and includes market pricing information and maturity dates for the securities held, market and economic trends in the industry and information on the issuer’s financial condition and, if applicable, information on the guarantors’ financial condition. Factors considered in determining whether a loss is temporary include the length of time and extent to which the investment’s fair value has been less than its cost basis, the financial condition and near-term prospects of the issuer and guarantors, including any specific events which may influence the operations of the issuer and our intent and ability to retain the investment for a reasonable period of time sufficient to allow for any anticipated recovery of fair value. | |
Accounts Receivable | ' |
Accounts Receivable – The Company evaluates the collectability of its trade accounts receivable based on a number of factors. In circumstances where the Company becomes aware of a specific customer’s inability to meet its financial obligations to the Company, a specific reserve for bad debts is estimated and recorded, which reduces the recognized receivable to the estimated amount the Company believes will ultimately be collected. In addition to specific customer identification of potential bad debts, bad debt charges are recorded based on the Company’s recent loss history and an overall assessment of past due trade accounts receivable outstanding. In accordance with ASC 210-20-45, in its consolidated balance sheets, the Company has presented accounts receivable, net of promotional allowances, only for those customers that it allows net settlement. All other accounts receivable and related promotional allowances are shown on a gross basis. | |
Inventories | ' |
Inventories – Inventories are valued at the lower of first-in, first-out, cost or market value (net realizable value). | |
Property and Equipment | ' |
Property and Equipment – Property and equipment are stated at cost. Depreciation of furniture and fixtures, office and computer equipment, computer software, equipment, and vehicles is based on their estimated useful lives (three to ten years) and is calculated using the straight-line method. Amortization of leasehold improvements is based on the lesser of their estimated useful lives or the terms of the related leases and is calculated using the straight-line method. Normal repairs and maintenance costs are expensed as incurred. Expenditures that materially increase values or extend useful lives are capitalized. The related costs and accumulated depreciation of disposed assets are eliminated and any resulting gain or loss on disposition is included in net income. | |
Capitalized Software Costs | ' |
Capitalized Software Costs – In accordance with ASC 350-40, the Company capitalizes certain costs incurred in connection with developing or obtaining internal use software. Costs incurred in the preliminary project stage are expensed. All direct external costs incurred to develop internal use software during the development stage are capitalized and amortized using the straight-line method over the remaining useful lives. Costs such as maintenance and training are expensed as incurred. | |
Intangibles | ' |
Intangibles – Intangibles are comprised primarily of trademarks that represent the Company’s exclusive ownership of the Monster Energy®, [See the EDGAR filing for referenced graphic (or) image.]®, Monster Rehab®, Java Monster®, Unleash the Beast®, Punch Monster™, Peace Tea®, Hansen’s®, Blue Sky® and the Junior Juice® trademarks, all used in connection with the manufacture, sale and distribution of supplements and beverages. The Company also owns in its own right a number of other trademarks in the United States, as well as in a number of countries around the world. In accordance with ASC 350, intangible assets with indefinite lives are not amortized but instead are measured for impairment at least annually, or when events indicate that an impairment exists. The Company calculates impairment as the excess of the carrying value of its indefinite-lived assets over their estimated fair value. If the carrying value exceeds the estimate of fair value a write-down is recorded. The Company amortizes its trademarks with finite useful lives over their respective useful lives, which range from 1 to 25 years. For the fiscal years ended December 31, 2013, 2012 and 2011, there were no impairments recorded. | |
Long-Lived Assets | ' |
Long-Lived Assets – Management regularly reviews property and equipment and other long-lived assets, including certain definite-lived intangible assets, for possible impairment. This review occurs annually, or more frequently if events or changes in circumstances indicate the carrying amount of the asset may not be recoverable. If there is indication of impairment, management then prepares an estimate of future cash flows (undiscounted and without interest charges) expected to result from the use of the asset and its eventual disposition. If these cash flows are less than the carrying amount of the asset, an impairment loss is recognized to write down the asset to its estimated fair value. The fair value is estimated using the present value of the future cash flows discounted at a rate commensurate with management’s estimates of the business risks. Preparation of estimated expected future cash flows is inherently subjective and is based on management’s best estimate of assumptions concerning expected future conditions. For the fiscal years ended December 31, 2013, 2012 and 2011, there were no impairment indicators identified. Long-lived assets held for sale are recorded at the lower of their carrying amount or fair value less cost to sell. | |
Foreign Currency Translation and Transactions | ' |
Foreign Currency Translation and Transactions – The accounts of the Company’s foreign subsidiaries are translated in accordance with ASC 830. Foreign currency transaction gains and losses are recognized in interest and other income, net, at the time they occur. Net foreign currency exchange gains or losses resulting from the translation of assets and liabilities of foreign subsidiaries whose functional currency is not the U.S. dollar are recorded as a part of accumulated other comprehensive (loss) income in stockholders’ equity. Unrealized foreign currency exchange gains and losses on certain intercompany transactions that are of a long-term investment nature (i.e., settlement is not planned or anticipated in the foreseeable future) are also recorded in accumulated other comprehensive (loss) income in stockholders’ equity. For the years ended December 31, 2013, 2012 and 2011, aggregate foreign currency transaction losses amounted to $12.9 million, $3.7 million and $0.7 million, respectively, and have been recorded in other (expense) income in the accompanying consolidated statements of income. | |
Revenue Recognition | ' |
Revenue Recognition – The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collectability is reasonably assured. Generally, ownership of and title to the Company’s products passes to customers upon delivery of the products to customers. Certain of the Company’s distributors may also perform a separate function as a co-packer on the Company’s behalf. In such cases, ownership of and title to the Company’s products that are co-packed on the Company’s behalf by those co-packers who are also distributors, passes to such distributors when the Company is notified by them that they have taken transfer or possession of the relevant portion of the Company’s finished goods. Net sales have been determined after deduction of promotional and other allowances in accordance with ASC 605-50. The Company’s promotional and other allowances are calculated based on various programs with its distributors and retail customers, and accruals are established during the year for the anticipated liabilities. These accruals are based on agreed upon terms as well as the Company’s historical experience with similar programs and require management’s judgment with respect to estimating consumer participation and/or distributor and retail customer performance levels. Differences between such estimated expense and actual expenses for promotional and other allowance costs have historically been insignificant and are recognized in earnings in the period such differences are determined. Amounts received pursuant to new and/or amended distribution agreements entered into with certain distributors, relating to the costs associated with terminating the Company’s prior distributors, are accounted for as revenue ratably over the anticipated life of the respective distribution agreement, generally 20 years. | |
Management believes that adequate provision has been made for cash discounts, returns and spoilage based on the Company’s historical experience. | |
Cost of Sales | ' |
Cost of Sales – Cost of sales consists of the costs of raw materials utilized in the manufacture of products, co-packing fees, repacking fees, in-bound freight charges, as well as certain internal transfer costs, warehouse expenses incurred prior to the manufacture of the Company’s finished products and certain quality control costs. Raw materials account for the largest portion of the cost of sales. Raw materials include cans, bottles, other containers, flavors, ingredients and packaging materials. | |
Operating Expenses | ' |
Operating Expenses – Operating expenses include selling expenses such as distribution expenses to transport products to customers and warehousing expenses after manufacture, as well as expenses for advertising, sampling and in-store demonstration costs, costs for merchandise displays, point-of-sale materials and premium items, sponsorship expenses, other marketing expenses and design expenses. Operating expenses also include such costs as payroll costs, travel costs, professional service fees including legal fees, termination payments made to certain of the Company’s prior distributors, depreciation and other general and administrative costs. | |
Freight-Out Costs | ' |
Freight-Out Costs – For the years ended December 31, 2013, 2012 and 2011, freight-out costs amounted to $84.0 million, $76.1 million and $60.5 million, respectively, and have been recorded in operating expenses in the accompanying consolidated statements of income. | |
Advertising and Promotional Expenses | ' |
Advertising and Promotional Expenses – The Company accounts for advertising production costs by expensing such production costs the first time the related advertising takes place. A significant amount of the Company’s promotional expenses result from payments under endorsement and sponsorship contracts. Accounting for endorsement and sponsorship payments is based upon specific contract provisions. Generally, endorsement and sponsorship payments are expensed on a straight-line basis over the term of the contract after giving recognition to periodic performance compliance provisions of the contracts. Advertising and promotional expenses, including but not limited to production costs, amounted to $181.8 million, $165.4 million and $148.8 million for the years ended December 31, 2013, 2012 and 2011, respectively. Advertising and promotional expenses are included in operating expenses in the accompanying consolidated statements of income. | |
Income Taxes | ' |
Income Taxes – The Company utilizes the liability method of accounting for income taxes as set forth in ASC 740. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. In determining the need for valuation allowances the Company considers projected future taxable income and the availability of tax planning strategies. If in the future the Company determines that it would not be able to realize its recorded deferred tax assets, an increase in the valuation allowance would be recorded, decreasing earnings in the period in which such determination is made. | |
The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon the Company’s evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where there is a greater than 50% likelihood that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. | |
Stock-Based Compensation | ' |
Stock-Based Compensation – The Company accounts for stock-based compensation under the provisions of ASC 718. The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes-Merton option pricing formula. The Company records compensation expense for non-employee stock options based on the estimated fair value of the options as of the earlier of (1) the date at which a commitment for performance by the non-employee to earn the stock option is reached or (2) the date at which the non-employee’s performance is complete, using the Black-Scholes-Merton option pricing formula. Stock-based compensation cost for restricted stock awards and restricted stock units is measured based on the closing fair market value of the Company’s common stock at the date of grant. In the event that the Company has the option and intent to settle a restricted stock unit in cash, the award is classified as a liability and revalued at each balance sheet date (See Note 12). | |
Net Income Per Common Share | ' |
Net Income Per Common Share – In accordance with ASC 260, net income per common share, on a basic and diluted basis, is presented for all periods. Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during each period. Diluted net income per share is computed by dividing net income by the weighted average number of common and dilutive common equivalent shares outstanding. The calculation of common equivalent shares assumes the exercise of dilutive stock options, net of assumed treasury share repurchases at average market prices, as applicable. | |
Concentration of Risk | ' |
Concentration of Risk – Certain of the Company’s products utilize components (raw materials and/or co-packing services) from a limited number of sources. A disruption in the supply of such components could significantly affect the Company’s revenues from those products, as alternative sources of such components may not be available at commercially reasonable rates or within a reasonably short time period. The Company continues to take steps on an ongoing basis to secure the availability of alternative sources for such components and minimize the risk of any disruption in production. | |
Coca-Cola Refreshments USA, Inc. (“CCR”), a customer of the Direct Store Delivery segment (“DSD”) with sales within specific markets in the United States and Canada, accounted for approximately 29%, 28% and 29% of the Company’s net sales for the years ended December 31, 2013, 2012 and 2011, respectively. | |
Credit Risk | ' |
Credit Risk – The Company sells its products nationally and internationally, primarily to full service beverage distributors, retail grocery and specialty chains, wholesalers, club stores, drug chains, mass merchandisers, convenience chains, health food distributors and food service customers. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. The Company maintains reserves for estimated credit losses, and historically, such losses have been within management’s expectations. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments – The carrying value of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to the relatively short maturity of the respective instruments. | |
Use of Estimates | ' |
Use of Estimates – The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements – In July 2013, the FASB issued Accounting Standards Update (“ASU”) No. 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force)”. The amendments in this ASU provide guidance on the financial statements presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. An unrecognized tax benefit should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward with certain exceptions, in which case such an unrecognized tax benefit should be presented in the financial statements as a liability. The amendments in this ASU do not require new recurring disclosures. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments in ASU No. 2013-11 are not expected to have a material impact on the Company’s financial position, results of operations or liquidity. | |
In February 2013, the FASB issued ASU No. 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income”. ASU 2013-02 requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income, but only if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under GAAP that provide additional detail about those amounts. The guidance became effective for the Company on January 1, 2013. The adoption of ASU 2013-02 did not have a material impact on the Company’s financial position, results of operations or liquidity. |
INVESTMENTS_Tables
INVESTMENTS (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
INVESTMENTS | ' | |||||||||||||||||||||||||
Summary of investments in held-to-maturity, available-for-sale and trading securities | ' | |||||||||||||||||||||||||
December 31, 2013 | Amortized Cost | Gross | Gross | Fair | Continuous | Continuous | ||||||||||||||||||||
Unrealized | Unrealized | Value | Unrealized | Unrealized | ||||||||||||||||||||||
Holding | Holding | Loss Position | Loss Position | |||||||||||||||||||||||
Gains | Losses | less than 12 | greater than 12 | |||||||||||||||||||||||
Months | Months | |||||||||||||||||||||||||
Held-to-Maturity | ||||||||||||||||||||||||||
Short-term: | ||||||||||||||||||||||||||
Certificates of deposit | $ | 22,045 | $ | - | $ | - | $ | 22,045 | $ | - | $ | - | ||||||||||||||
Commercial paper | 5,991 | - | - | 5,991 | - | - | ||||||||||||||||||||
Municipal securities | 367,819 | 48 | - | 367,867 | - | - | ||||||||||||||||||||
Total | $ | 395,855 | $ | 48 | $ | - | 395,903 | $ | - | $ | - | |||||||||||||||
Trading | ||||||||||||||||||||||||||
Short-term: | ||||||||||||||||||||||||||
Auction rate securities | 6,392 | |||||||||||||||||||||||||
Long-term: | ||||||||||||||||||||||||||
Auction rate securities | 9,792 | |||||||||||||||||||||||||
Total | $ | 412,087 | ||||||||||||||||||||||||
December 31, 2012 | Amortized Cost | Gross | Gross | Fair | Continuous | Continuous | ||||||||||||||||||||
Unrealized | Unrealized | Value | Unrealized | Unrealized | ||||||||||||||||||||||
Holding | Holding | Loss Position | Loss Position | |||||||||||||||||||||||
Gains | Losses | less than 12 | greater than 12 | |||||||||||||||||||||||
Months | Months | |||||||||||||||||||||||||
Held-to-Maturity | ||||||||||||||||||||||||||
Short-term: | ||||||||||||||||||||||||||
U.S. Treasuries | $ | 16,040 | $ | - | $ | - | $ | 16,040 | $ | - | $ | - | ||||||||||||||
Certificates of deposit | 2,201 | - | - | 2,201 | - | - | ||||||||||||||||||||
Municipal securities | 77,038 | - | 11 | 77,027 | 11 | - | ||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||
Long-term: | ||||||||||||||||||||||||||
Auction rate securities | 3,310 | 2,483 | - | 5,793 | - | - | ||||||||||||||||||||
Total | $ | 98,589 | $ | 2,483 | $ | 11 | 101,061 | $ | 11 | $ | - | |||||||||||||||
Trading | ||||||||||||||||||||||||||
Short-term: | ||||||||||||||||||||||||||
Auction rate securities | 1,763 | |||||||||||||||||||||||||
Long-term: | ||||||||||||||||||||||||||
Auction rate securities | 15,600 | |||||||||||||||||||||||||
Total | $ | 118,424 | ||||||||||||||||||||||||
Schedule of net gain (loss) recognized through earnings on trading securities | ' | |||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
(Loss) on transfer from available-for-sale to trading | $ | - | $ | - | $ | (2,438 | ) | |||||||||||||||||||
Gain on trading securities sold | 255 | 1,130 | 2,604 | |||||||||||||||||||||||
Gain (loss) on trading securities held | 816 | 753 | (210 | ) | ||||||||||||||||||||||
Gain (loss) on trading securites | $ | 1,071 | $ | 1,883 | $ | (44 | ) | |||||||||||||||||||
Summarizes the underlying contractual maturities of the Company's investments | ' | |||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | ||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||
Less than 1 year: | ||||||||||||||||||||||||||
U.S. Treasuries | $ | - | $ | - | $ | 16,040 | $ | 16,040 | ||||||||||||||||||
Certificates of deposit | 22,045 | 22,045 | 2,201 | 2,201 | ||||||||||||||||||||||
Commercial paper | 5,991 | 5,991 | - | - | ||||||||||||||||||||||
Municipal securities | 367,819 | 367,867 | 77,038 | 77,027 | ||||||||||||||||||||||
U.S. government agency securities | - | - | - | - | ||||||||||||||||||||||
Due 11 - 20 years: | ||||||||||||||||||||||||||
Auction rate securities | 11,102 | 11,102 | 10,748 | 10,748 | ||||||||||||||||||||||
Due 21 - 30 years: | ||||||||||||||||||||||||||
Auction rate securities | 5,082 | 5,082 | 9,925 | 12,408 | ||||||||||||||||||||||
Total | $ | 412,039 | $ | 412,087 | $ | 115,952 | $ | 118,424 | ||||||||||||||||||
FAIR_VALUE_OF_CERTAIN_FINANCIA1
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ' | |||||||||||||
Schedule of financial assets recorded at fair value on a recurring basis | ' | |||||||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | Total | ||||||||||
Cash | $ | 139,300 | $ | - | $ | - | $ | 139,300 | ||||||
Money market funds | 60,102 | - | - | 60,102 | ||||||||||
Certificates of deposit | - | 22,045 | - | 22,045 | ||||||||||
Commercial paper | - | 5,991 | 5,991 | |||||||||||
Municipal securities | - | 379,766 | - | 379,766 | ||||||||||
Auction rate securities | - | - | 16,184 | 16,184 | ||||||||||
Put option related to auction rate securities | - | - | 1,092 | 1,092 | ||||||||||
Total | $ | 199,402 | $ | 407,802 | $ | 17,276 | $ | 624,480 | ||||||
Amounts included in: | ||||||||||||||
Cash and cash equivalents | $ | 199,402 | $ | 11,947 | $ | - | $ | 211,349 | ||||||
Short-term investments | - | 395,855 | 6,392 | 402,247 | ||||||||||
Investments | - | - | 9,792 | 9,792 | ||||||||||
Prepaid expenses and other current assets | - | - | 486 | 486 | ||||||||||
Other assets | - | - | 606 | 606 | ||||||||||
Total | $ | 199,402 | $ | 407,802 | $ | 17,276 | $ | 624,480 | ||||||
December 31, 2012 | Level 1 | Level 2 | Level 3 | Total | ||||||||||
Cash | $ | 147,113 | $ | - | $ | - | $ | 147,113 | ||||||
Money market funds | 63,974 | - | - | 63,974 | ||||||||||
U.S. Treasuries | - | 24,065 | - | 24,065 | ||||||||||
Certificates of deposit | - | 5,603 | - | 5,603 | ||||||||||
Municipal securities | - | 77,038 | - | 77,038 | ||||||||||
Auction rate securities | - | - | 23,156 | 23,156 | ||||||||||
Put option related to auction rate securities | - | - | 1,929 | 1,929 | ||||||||||
Total | $ | 211,087 | $ | 106,706 | $ | 25,085 | $ | 342,878 | ||||||
Amounts included in: | ||||||||||||||
Cash and cash equivalents | $ | 211,087 | $ | 11,427 | $ | - | $ | 222,514 | ||||||
Short-term investments | - | 95,279 | 1,763 | 97,042 | ||||||||||
Investments | - | - | 21,393 | 21,393 | ||||||||||
Prepaid expenses and other current assets | - | - | 225 | 225 | ||||||||||
Other assets | - | - | 1,704 | 1,704 | ||||||||||
Total | $ | 211,087 | $ | 106,706 | $ | 25,085 | $ | 342,878 | ||||||
Schedule of quantitative information related to the significant unobservable inputs utilized in Level 3 recurring fair value measurements | ' | |||||||||||||
The following table presents quantitative information related to the significant unobservable inputs utilized in the Company’s Level 3 recurring fair value measurements as of December 31, 2013. | ||||||||||||||
Valuation Technique | Unobservable Input | Range (Weighted-Average) | ||||||||||||
Auction Rate Securities | Discounted cash flow | Maximum rate probability | 0.57%-2.30% (1.34%) | |||||||||||
Principal returned probability | 85.84%-94.93% (87.13%) | |||||||||||||
Default probability | 4.18%-12.08% (11.53%) | |||||||||||||
Liquidity risk | 3.00%-3.00% (3.00%) | |||||||||||||
Recovery rate | 60-60 (60) | |||||||||||||
Put Options | Discounted cash flow | Counterparty risk | 0.47%-0.76% (0.59%) | |||||||||||
Summary of changes in fair value of the Company's Level 3 financial assets | ' | |||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||
Auction | Put Options | Auction | Put Options | |||||||||||
Rate | Rate | |||||||||||||
Securities | Securities | |||||||||||||
Opening Balance | $ | 23,156 | $ | 1,929 | $ | 35,852 | $ | 3,041 | ||||||
Transfers into Level 3 | - | - | - | - | ||||||||||
Transfers out of Level 3 | - | - | - | - | ||||||||||
Total gains (losses) for the period: | ||||||||||||||
Included in earnings | 3,553 | -837 | 1,897 | -1,112 | ||||||||||
Included in other comprehensive income | -2,482 | - | 2,482 | - | ||||||||||
Settlements | -8,043 | - | -17,075 | - | ||||||||||
Closing Balance | $ | 16,184 | $ | 1,092 | $ | 23,156 | $ | 1,929 |
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
INVENTORIES | ' | ||||||||
Schedule of inventories | ' | ||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 68,088 | $ | 65,010 | |||||
Finished goods | 153,361 | 138,096 | |||||||
$ | 221,449 | $ | 203,106 |
PROPERTY_AND_EQUIPMENT_Net_Tab
PROPERTY AND EQUIPMENT, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
PROPERTY AND EQUIPMENT, Net | ' | ||||||||
Schedule of property and equipment | ' | ||||||||
2013 | 2012 | ||||||||
Land | $ | 5,382 | $ | 5,382 | |||||
Leasehold improvements | 2,222 | 2,300 | |||||||
Furniture and fixtures | 3,474 | 2,087 | |||||||
Office and computer equipment | 14,135 | 8,981 | |||||||
Computer software | 791 | 1,135 | |||||||
Equipment | 62,552 | 48,427 | |||||||
Building | 33,468 | 21,998 | |||||||
Vehicles | 30,442 | 26,037 | |||||||
152,466 | 116,347 | ||||||||
Less: accumulated depreciation and amortization | (64,323 | ) | (47,210 | ) | |||||
$ | 88,143 | $ | 69,137 |
INTANGIBLES_Net_Tables
INTANGIBLES, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
INTANGIBLES, Net | ' | ||||||||
Schedule of intangibles | ' | ||||||||
2013 | 2012 | ||||||||
Amortizing intangibles | $ | 1,076 | $ | 1,061 | |||||
Accumulated amortization | (590 | ) | (553 | ) | |||||
486 | 508 | ||||||||
Non-amortizing intangibles | 65,288 | 54,140 | |||||||
$ | 65,774 | $ | 54,648 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
COMMITMENTS AND CONTINGENCIES | ' | ||||
Schedule of future minimum rental payments under the operating leases | ' | ||||
Future minimum rental payments at December 31, 2013 under the operating leases referred to above are as follows: | |||||
Year Ending December 31: | |||||
2014 | $ | 5,050 | |||
2015 | 4,958 | ||||
2016 | 4,207 | ||||
2017 | 1,089 | ||||
2018 | 493 | ||||
2019 and thereafter | 1,577 | ||||
$ | 17,374 | ||||
Schedule of contractual obligations related primarily to sponsorships and other commitments | ' | ||||
The Company has the following contractual obligations related primarily to sponsorships and other commitments as of December 31, 2013: | |||||
Year Ending December 31: | |||||
2014 | $ | 60,241 | |||
2015 | 23,505 | ||||
2016 | 9,694 | ||||
2017 | 500 | ||||
2018 | - | ||||
2019 and thereafter | - | ||||
$ | 93,940 |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | ' | |||||||
Components of accumulated other comprehensive (loss) income | ' | |||||||
2013 | 2012 | |||||||
Accumulated net unrealized gain on available-for-sale securities, net of tax benefit of $1.0 million | $ | - | $ | 1,525 | ||||
Foreign currency translation adjustments | -1,233 | 549 | ||||||
Total accumulated other comprehensive (loss) income | $ | -1,233 | $ | 2,074 |
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
STOCK-BASED COMPENSATION | ' | ||||||||||||
Schedule of weighted-average assumptions used to estimate the fair value of options granted | ' | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Dividend yield | 0.0 % | 0.0 % | 0.0 % | ||||||||||
Expected volatility | 47.5 % | 48.1 % | 53.6 % | ||||||||||
Risk free interest rate | 0.98 % | 0.74 % | 1.5 % | ||||||||||
Expected term | 5.7 Years | 5.4 Years | 5.8 Years | ||||||||||
Summary of activities with respect to its stock option plans | ' | ||||||||||||
Weighted- | |||||||||||||
Weighted- | Average | ||||||||||||
Average | Remaining | ||||||||||||
Number of | Exercise | Contractual | |||||||||||
Shares (In | Price Per | Term (In | Aggregate | ||||||||||
Options | Thousands) | Share | Years) | Intrinsic Value | |||||||||
Outstanding at January 1, 2013 | 14,000 | $ | 12.12 | 4.1 | $ | 572,530 | |||||||
Granted 01/01/13 - 03/31/13 | 636 | $ | 47.36 | ||||||||||
Granted 04/01/13 - 06/30/13 | 450 | $ | 54 | ||||||||||
Granted 07/01/13 - 09/30/13 | - | $ | - | ||||||||||
Granted 10/01/13 - 12/31/13 | 106 | $ | 57.76 | ||||||||||
Exercised | (2,022 | ) | $ | 10.51 | |||||||||
Cancelled or forfeited | (197 | ) | $ | 27.28 | |||||||||
Outstanding at December 31, 2013 | 12,973 | $ | 15.7 | 3.7 | $ | 675,595 | |||||||
Vested and expected to vest in the future at December 31, 2013 | 12,639 | $ | 14.89 | 3.6 | $ | 668,379 | |||||||
Exercisable at December 31, 2013 | 10,401 | $ | 9.38 | 2.7 | $ | 607,302 | |||||||
Summary of stock options outstanding and exercisable | ' | ||||||||||||
The following table summarizes information about stock options outstanding and exercisable at December 31, 2013: | |||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||
Range of Exercise | Number | Weighted | Weighted | Number | Weighted | ||||||||
Prices ($) | Outstanding (In | Average | Average | Exercisable | Average | ||||||||
Thousands) | Remaining | Exercise | (In | Exercise | |||||||||
Contractual | Price ($) | Thousands) | Price ($) | ||||||||||
Term (Years) | |||||||||||||
$2.09 - $2.09 | 43 | 1 | $2.09 | 43 | $2.09 | ||||||||
$3.29 - $3.29 | 4,400 | 1.2 | $3.29 | 4,400 | $3.29 | ||||||||
$5.72 - $6.21 | 23 | 1.8 | $6.11 | 23 | $6.11 | ||||||||
$8.44 - $8.44 | 2,445 | 1.9 | $8.44 | 2,445 | $8.44 | ||||||||
$11.36 - $15.60 | 145 | 4.8 | $13.43 | 143 | $13.39 | ||||||||
$15.86 - $15.86 | 1,777 | 4.4 | $15.86 | 1,777 | $15.86 | ||||||||
$15.94 - $17.82 | 1,381 | 5.9 | $17.75 | 1,000 | $17.77 | ||||||||
$18.07 - $47.13 | 1,796 | 7.3 | $33.11 | 553 | $24.05 | ||||||||
$47.65 - $70.54 | 956 | 9.1 | $56.25 | 16 | $62.65 | ||||||||
$74.78 - $74.78 | 7 | 8.5 | $74.78 | 1 | $74.78 | ||||||||
12,973 | 3.7 | $15.70 | 10,401 | $9.38 | |||||||||
Summary of activities with respect to non-vested restricted stock awards and non-vested restricted stock units | ' | ||||||||||||
Weighted | |||||||||||||
Number of | Average | ||||||||||||
Shares (in | Grant-Date | ||||||||||||
thousands) | Fair Value | ||||||||||||
Non-vested at January 1, 2013 | 637 | $ | 46.97 | ||||||||||
Granted 01/01/13 - 03/31/13 | 8 | $ | 50.89 | ||||||||||
Granted 04/01/13 - 06/30/13 | 15 | $ | 54.64 | ||||||||||
Granted 07/01/13 - 09/30/13 | - | $ | - | ||||||||||
Granted 10/01/13 - 12/31/13 | 5 | $ | 54.57 | ||||||||||
Vested | -262 | $ | 43.87 | ||||||||||
Forfeited/cancelled | -12 | $ | 54.67 | ||||||||||
Non-vested at December 31, 2013 | 391 | $ | 49.27 | ||||||||||
Schedule of total compensation cost relating to incentive stock option, charged against income | ' | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Operating expenses | $ | 28,764 | $ | 28,413 | $ | 19,424 | |||||||
Total employee and non-employee share-based compensation expense included in income, before income tax | 28,764 | 28,413 | 19,424 | ||||||||||
Less: Amount of income tax benefit recognized in earnings | -7,730 | -8,933 | -6,646 | ||||||||||
Amount charged against net income | $ | 21,034 | $ | 19,480 | $ | 12,778 | |||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
INCOME TAXES | ' | ||||||||||
Components of the provision for income taxes | ' | ||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Current: | |||||||||||
Federal | $ | 191,596 | $ | 177,372 | $ | 146,385 | |||||
State | 36,662 | 30,268 | 22,526 | ||||||||
Foreign | 4,052 | 3,951 | 2,827 | ||||||||
232,310 | 211,591 | 171,738 | |||||||||
Deferred: | |||||||||||
Federal | -7,441 | -743 | 634 | ||||||||
State | -1,443 | -483 | 465 | ||||||||
Foreign | -9,694 | -7,373 | -3,583 | ||||||||
-18,578 | -8,599 | -2,484 | |||||||||
Valuation allowance | 11,501 | 6,142 | 1,797 | ||||||||
$ | 225,233 | $ | 209,134 | $ | 171,051 | ||||||
Schedule of reconciliation of income taxes computed at statutory federal rate to total income taxes | ' | ||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
U.S. Federal tax expense at statutory rates | $ | 197,363 | $ | 192,204 | $ | 160,045 | |||||
State income taxes, net of federal tax benefit | 22,640 | 20,252 | 14,917 | ||||||||
Permanent differences | 936 | 5,968 | 1,176 | ||||||||
Domestic production deduction | -16,039 | -15,469 | -11,551 | ||||||||
Other | 266 | -388 | 1,538 | ||||||||
Foreign rate differential | 8,566 | 425 | 3,129 | ||||||||
Valuation allowance | 11,501 | 6,142 | 1,797 | ||||||||
$ | 225,233 | $ | 209,134 | $ | 171,051 | ||||||
Components of the Company's deferred tax assets (liabilities) | ' | ||||||||||
2013 | 2012 | ||||||||||
Deferred Tax Assets: | |||||||||||
Reserve for sales returns | $ | 583 | $ | 145 | |||||||
Reserve for doubtful accounts | 62 | 28 | |||||||||
Reserve for inventory obsolescence | 2,060 | 2,753 | |||||||||
Reserve for marketing development fund | 9,470 | 4,595 | |||||||||
Capitalization of inventory costs | 1,949 | 1,524 | |||||||||
State franchise tax | 6,043 | 5,268 | |||||||||
Accrued compensation | 867 | 49 | |||||||||
Accrued other liabilities | 4,871 | 1,825 | |||||||||
Deferred revenue | 50,813 | 49,597 | |||||||||
Stock-based compensation | 21,963 | 19,965 | |||||||||
Securities impairment | 273 | 2,104 | |||||||||
Foreign net operating loss carryforward | 19,346 | 13,529 | |||||||||
Prepaid supplies | 4,639 | 2,008 | |||||||||
Total gross deferred tax assets | $ | 122,939 | $ | 103,390 | |||||||
Deferred Tax Liabilities: | |||||||||||
Amortization of trademarks | $ | -10,393 | $ | -9,179 | |||||||
Unrealized gain on available-for-sale investments | - | -1,006 | |||||||||
Amortization of graphic design | -94 | -81 | |||||||||
Depreciation | -5,828 | -5,304 | |||||||||
Total gross deferred tax liabilities | -16,315 | -15,570 | |||||||||
Valuation Allowance | -22,089 | -11,316 | |||||||||
Net deferred tax assets | $ | 84,535 | $ | 76,504 | |||||||
Schedule of roll-forward of the total gross unrecognized tax benefits, not including interest and penalties | ' | ||||||||||
Gross Unrealized Tax | |||||||||||
Benefits | |||||||||||
Balance at January 1, 2011 | $ | 465 | |||||||||
Additions for tax positions related to the current year | - | ||||||||||
Additions for tax positions related to the prior year | 1,445 | ||||||||||
Decreases for tax positions related to prior years | - | ||||||||||
Balance at December 31, 2011 | $ | 1,910 | |||||||||
Additions for tax positions related to the current year | - | ||||||||||
Additions for tax positions related to the prior year | 520 | ||||||||||
Decreases for tax positions related to prior years | -1,504 | ||||||||||
Balance at December 31, 2012 | $ | 926 | |||||||||
Additions for tax positions related to the current year | - | ||||||||||
Additions for tax positions related to the prior year | 9 | ||||||||||
Decreases for tax positions related to prior years | - | ||||||||||
Balance at December 31, 2013 | $ | 935 |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
EARNINGS PER SHARE | ' | |||||||
Schedule of reconciliation of the weighted average shares used in the basic and diluted earnings per common share computations | ' | |||||||
A reconciliation of the weighted average shares used in the basic and diluted earnings per common share computations for the years ended December 31, 2013, 2012 and 2011 is presented below (in thousands): | ||||||||
2013 | 2012 | 2011 | ||||||
Weighted-average shares outstanding: | ||||||||
Basic | 166,679 | 173,712 | 176,212 | |||||
Dilutive securities | 6,708 | 9,371 | 10,462 | |||||
Diluted | 173,387 | 183,083 | 186,674 |
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||||||
Schedule of net revenues and other financial information by segment | ' | |||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||
DSD | Warehouse | Corporate | Total | |||||||||||||||
and | ||||||||||||||||||
Unallocated | ||||||||||||||||||
Net sales | $ | 2,147,355 | $ | 99,073 | $ | - | $ | 2,246,428 | ||||||||||
Contribution margin | 726,826 | (1,652 | ) | - | 725,174 | |||||||||||||
Corporate & unallocated expenses | - | - | (152,258 | ) | (152,258 | ) | ||||||||||||
Operating income | 572,916 | |||||||||||||||||
Interest and other income, net | 755 | (2 | ) | (9,775 | ) | (9,022 | ) | |||||||||||
Income before provision for income taxes | 563,894 | |||||||||||||||||
Depreciation & amortization | (19,023 | ) | (244 | ) | (3,446 | ) | (22,713 | ) | ||||||||||
Trademark amortization | - | (44 | ) | (5 | ) | (49 | ) | |||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||
DSD | Warehouse | Corporate | Total | |||||||||||||||
and | ||||||||||||||||||
Unallocated | ||||||||||||||||||
Net sales | $ | 1,966,481 | $ | 94,221 | $ | - | $ | 2,060,702 | ||||||||||
Contribution margin | 660,607 | 3,496 | - | 664,103 | ||||||||||||||
Corporate & unallocated expenses | - | - | (113,480 | ) | (113,480 | ) | ||||||||||||
Operating income | 550,623 | |||||||||||||||||
Interest and other income, net | 494 | (2 | ) | (1,961 | ) | (1,469 | ) | |||||||||||
Income before provision for income taxes | 549,154 | |||||||||||||||||
Depreciation & amortization | (15,660 | ) | (139 | ) | (4,714 | ) | (20,513 | ) | ||||||||||
Trademark amortization | - | (44 | ) | (5 | ) | (49 | ) | |||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||
DSD | Warehouse | Corporate | Total | |||||||||||||||
and | ||||||||||||||||||
Unallocated | ||||||||||||||||||
Net sales | $ | 1,608,326 | $ | 94,904 | $ | - | $ | 1,703,230 | ||||||||||
Contribution margin | 543,210 | 4,291 | - | 547,501 | ||||||||||||||
Corporate & unallocated expenses | - | - | (91,078 | ) | (91,078 | ) | ||||||||||||
Operating income | 456,423 | |||||||||||||||||
Interest and other income, net | (12 | ) | (1 | ) | 860 | 847 | ||||||||||||
Income before provision for income taxes | 457,270 | |||||||||||||||||
Depreciation & amortization | (12,684 | ) | (87 | ) | (4,261 | ) | (17,032 | ) | ||||||||||
Trademark amortization | - | (44 | ) | (8 | ) | (52 | ) | |||||||||||
Schedule of net sales by product line | ' | |||||||||||||||||
Product Line | 2013 | 2012 | 2011 | |||||||||||||||
Energy drinks | $ | 2,082,238 | $ | 1,906,236 | $ | 1,563,331 | ||||||||||||
Non-carbonated (primarily juice based beverages) | 120,145 | 110,217 | 94,398 | |||||||||||||||
Carbonated (primarily soda beverages) | 29,245 | 31,044 | 32,467 | |||||||||||||||
Other | 14,800 | 13,205 | 13,034 | |||||||||||||||
$ | 2,246,428 | $ | 2,060,702 | $ | 1,703,230 |
QUARTERLY_FINANCIAL_DATA_Unaud1
QUARTERLY FINANCIAL DATA (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
QUARTERLY FINANCIAL DATA (Unaudited) | ' | ||||||||||||||||
QUARTERLY FINANCIAL DATA | ' | ||||||||||||||||
Net Income per Common | |||||||||||||||||
Share | |||||||||||||||||
Net Sales | Gross Profit | Net Income | Basic | Diluted | |||||||||||||
Quarter ended: | |||||||||||||||||
March 31, 2013 | $ | 484,223 | $ | 252,039 | $ | 63,496 | $ | 0.38 | $ | 0.37 | |||||||
June 30, 2013 | 630,934 | 336,262 | 106,873 | $ | 0.64 | $ | 0.62 | ||||||||||
September 30, 2013 | 590,422 | 307,470 | 92,187 | $ | 0.55 | $ | 0.53 | ||||||||||
December 31, 2013 | 540,849 | 277,160 | 76,105 | $ | 0.46 | $ | 0.44 | ||||||||||
$ | 2,246,428 | $ | 1,172,931 | $ | 338,661 | ||||||||||||
Quarter ended: | |||||||||||||||||
March 31, 2012 | $ | 454,605 | $ | 241,169 | $ | 76,099 | $ | 0.44 | $ | 0.41 | |||||||
June 30, 2012 | 592,640 | 307,008 | 109,795 | $ | 0.62 | $ | 0.59 | ||||||||||
September 30, 2012 | 541,940 | 273,592 | 86,142 | $ | 0.49 | $ | 0.47 | ||||||||||
December 31, 2012 | 471,517 | 243,887 | 67,984 | $ | 0.4 | $ | 0.39 | ||||||||||
$ | 2,060,702 | $ | 1,065,656 | $ | 340,020 |
ORGANIZATION_AND_SUMMARY_OF_SI2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Intangibles | ' | ' | ' |
Estimated useful life of trademarks | '20 years | ' | ' |
Impairment of intangible assets | $0 | $0 | $0 |
Foreign Currency Translation and Transactions | ' | ' | ' |
Foreign currency transaction losses | 12.9 | 3.7 | 0.7 |
Income Taxes | ' | ' | ' |
Tax benefits recognized for income tax positions where there is less than 50% likelihood that a tax benefit will be sustained | 0 | ' | ' |
Revenue Recognition | ' | ' | ' |
Distribution agreement, revenue recognition period | '20 years | ' | ' |
Freight-Out Costs | ' | ' | ' |
Freight-out costs | 84 | 76.1 | 60.5 |
Advertising and Promotional Expenses | ' | ' | ' |
Advertising and promotional expenses | $181.80 | $165.40 | $148.80 |
Maximum | ' | ' | ' |
Intangibles | ' | ' | ' |
Estimated useful life of trademarks | '25 years | ' | ' |
Income Taxes | ' | ' | ' |
Percentage of likelihood of realization of recognized tax benefit | 50.00% | ' | ' |
Minimum | ' | ' | ' |
Intangibles | ' | ' | ' |
Estimated useful life of trademarks | '1 year | ' | ' |
Income Taxes | ' | ' | ' |
Percentage of likelihood below which no tax benefit is recognized in the financial statements | 50.00% | ' | ' |
Sales | Customer concentration | Direct Store Delivery ("DSD") | Coca-Cola Refreshments ("CCR") | ' | ' | ' |
Concentration of Risk | ' | ' | ' |
Percentage of net sales from major customer | 29.00% | 28.00% | 29.00% |
Property and Equipment | Maximum | ' | ' | ' |
Summary of significant accounting policies | ' | ' | ' |
Estimated useful lives of the assets | '10 years | ' | ' |
Property and Equipment | Minimum | ' | ' | ' |
Summary of significant accounting policies | ' | ' | ' |
Estimated useful lives of the assets | '3 years | ' | ' |
INVESTMENTS_Details
INVESTMENTS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Held to Maturity and Available-for-sale | ' | ' |
Held to maturity and available-for-sale securities, Amortized Cost | $395,855 | $98,589 |
Held to maturity and available-for-sale securities, Gross Unrealized Holding Gains | 48 | 2,483 |
Held to maturity and available-for-sale securities, Gross Unrealized Holding Losses | ' | 11 |
Held to maturity and available-for-sale securities, Fair Value | 395,903 | 101,061 |
Held to maturity and available-for-sale securities, Continuous Unrealized Loss Position less than 12 Months | ' | 11 |
Held to Maturity, Available-for-sale, and Trading | ' | ' |
Total Fair Value | 412,087 | 118,424 |
Short-term | U.S. Treasuries | ' | ' |
Held-to-Maturity | ' | ' |
Amortized Cost | ' | 16,040 |
Fair Value | ' | 16,040 |
Short-term | Certificates of deposit | ' | ' |
Held-to-Maturity | ' | ' |
Amortized Cost | 22,045 | 2,201 |
Fair Value | 22,045 | 2,201 |
Short-term | Commercial paper | ' | ' |
Held-to-Maturity | ' | ' |
Amortized Cost | 5,991 | ' |
Fair Value | 5,991 | ' |
Short-term | Municipal securities | ' | ' |
Held-to-Maturity | ' | ' |
Amortized Cost | 367,819 | 77,038 |
Gross Unrealized Holding Gains | 48 | ' |
Gross Unrealized Holding Losses | ' | 11 |
Fair Value | 367,897 | 77,027 |
Continuous Unrealized Loss Position less than 12 Months | ' | 11 |
Short-term | Auction rate securities | ' | ' |
Trading | ' | ' |
Fair Value | 6,392 | 1,763 |
Long-term | Auction rate securities | ' | ' |
Available-for-sale | ' | ' |
Amortized Cost | ' | 3,310 |
Gross Unrealized Holding Gains | ' | 2,483 |
Fair Value | ' | 5,793 |
Trading | ' | ' |
Fair Value | $9,792 | $15,600 |
INVESTMENTS_Details_2
INVESTMENTS (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
INVESTMENTS | ' | ' | ' |
Realized gains on the sale of available-for-sale investments | $2,500,000 | ' | ' |
Auction rate securities | ' | ' | ' |
Net gain (loss) recognized through earnings on trading securities | ' | ' | ' |
(Loss) on transfer from available-for-sale to trading | ' | ' | -2,438,000 |
Gain on trading securities sold | 255,000 | 1,130,000 | 2,604,000 |
Gain (loss) on trading securities held | 816,000 | 753,000 | -210,000 |
Gain (loss) on trading securities | $1,071,000 | $1,883,000 | ($44,000) |
INVESTMENTS_Details_3
INVESTMENTS (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Disclosure of underlying contractual maturities of investments | ' | ' |
Amortized Cost | $412,039 | $115,952 |
Fair Value | 412,087 | 118,424 |
U.S. Treasuries | Less than 1 year | ' | ' |
Disclosure of underlying contractual maturities of investments | ' | ' |
Amortized Cost | ' | 16,040 |
Fair Value | ' | 16,040 |
Certificates of deposit | Less than 1 year | ' | ' |
Disclosure of underlying contractual maturities of investments | ' | ' |
Amortized Cost | 22,045 | 2,201 |
Fair Value | 22,045 | 2,201 |
Commercial paper | Less than 1 year | ' | ' |
Disclosure of underlying contractual maturities of investments | ' | ' |
Amortized Cost | 5,991 | ' |
Fair Value | 5,991 | ' |
Municipal securities | Less than 1 year | ' | ' |
Disclosure of underlying contractual maturities of investments | ' | ' |
Amortized Cost | 367,819 | 77,038 |
Fair Value | 367,867 | 77,027 |
Auction rate securities | Due 11 - 20 years | ' | ' |
Disclosure of underlying contractual maturities of investments | ' | ' |
Amortized Cost | 11,102 | 10,748 |
Fair Value | 11,102 | 10,748 |
Auction rate securities | Due 21 - 30 years | ' | ' |
Disclosure of underlying contractual maturities of investments | ' | ' |
Amortized Cost | 5,082 | 9,925 |
Fair Value | $5,082 | $12,408 |
FAIR_VALUE_OF_CERTAIN_FINANCIA2
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Level 1 | ' | ' |
Fair value of certain assets | ' | ' |
Cash | $139,300 | $147,113 |
Assets measured at fair value | 199,402 | 211,087 |
Level 1 | Money market funds | ' | ' |
Fair value of certain assets | ' | ' |
Assets measured at fair value | 60,102 | 63,974 |
Level 2 | ' | ' |
Fair value of certain assets | ' | ' |
Assets measured at fair value | 407,802 | 106,706 |
Level 2 | U.S. Treasuries | ' | ' |
Fair value of certain assets | ' | ' |
Assets measured at fair value | ' | 24,065 |
Level 2 | Certificates of deposit | ' | ' |
Fair value of certain assets | ' | ' |
Assets measured at fair value | 22,045 | 5,603 |
Level 2 | Commercial paper | ' | ' |
Fair value of certain assets | ' | ' |
Assets measured at fair value | 5,991 | ' |
Level 2 | Municipal securities | ' | ' |
Fair value of certain assets | ' | ' |
Assets measured at fair value | 379,766 | 77,038 |
Level 3 | ' | ' |
Fair value of certain assets | ' | ' |
Assets measured at fair value | 17,276 | 25,085 |
Level 3 | Auction rate securities | ' | ' |
Fair value of certain assets | ' | ' |
Assets measured at fair value | 16,184 | 23,156 |
Level 3 | Put option related to auction rate securities | ' | ' |
Fair value of certain assets | ' | ' |
Assets measured at fair value | 1,092 | 1,929 |
Total fair value | ' | ' |
Fair value of certain assets | ' | ' |
Cash | 139,300 | 147,113 |
Assets measured at fair value | 624,480 | 342,878 |
Total fair value | Money market funds | ' | ' |
Fair value of certain assets | ' | ' |
Assets measured at fair value | 60,102 | 63,974 |
Total fair value | U.S. Treasuries | ' | ' |
Fair value of certain assets | ' | ' |
Assets measured at fair value | ' | 24,065 |
Total fair value | Certificates of deposit | ' | ' |
Fair value of certain assets | ' | ' |
Assets measured at fair value | 22,045 | 5,603 |
Total fair value | Commercial paper | ' | ' |
Fair value of certain assets | ' | ' |
Assets measured at fair value | 5,991 | ' |
Total fair value | Municipal securities | ' | ' |
Fair value of certain assets | ' | ' |
Assets measured at fair value | 379,766 | 77,038 |
Total fair value | Auction rate securities | ' | ' |
Fair value of certain assets | ' | ' |
Assets measured at fair value | 16,184 | 23,156 |
Total fair value | Put option related to auction rate securities | ' | ' |
Fair value of certain assets | ' | ' |
Assets measured at fair value | $1,092 | $1,929 |
FAIR_VALUE_OF_CERTAIN_FINANCIA3
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES (Details 2) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Fair value amounts included in the carrying value of | ' | ' | ' | ' |
Cash and cash equivalents | $211,349 | $222,514 | $359,331 | $354,842 |
Short-term investments | 402,247 | 97,042 | ' | ' |
Investments | 9,792 | 21,393 | ' | ' |
Asset transfers between Level 1 and Level 2 measurements | 0 | 0 | ' | ' |
Level 1 | ' | ' | ' | ' |
Fair value amounts included in the carrying value of | ' | ' | ' | ' |
Cash and cash equivalents | 199,402 | 211,087 | ' | ' |
Total | 199,402 | 211,087 | ' | ' |
Level 2 | ' | ' | ' | ' |
Fair value amounts included in the carrying value of | ' | ' | ' | ' |
Cash and cash equivalents | 11,947 | 11,427 | ' | ' |
Short-term investments | 395,855 | 95,279 | ' | ' |
Total | 407,802 | 106,706 | ' | ' |
Level 3 | ' | ' | ' | ' |
Fair value amounts included in the carrying value of | ' | ' | ' | ' |
Short-term investments | 6,392 | 1,763 | ' | ' |
Investments | 9,792 | 21,393 | ' | ' |
Prepaid expenses and other current assets | 486 | 225 | ' | ' |
Other assets | 606 | 1,704 | ' | ' |
Total | 17,276 | 25,085 | ' | ' |
Total fair value | ' | ' | ' | ' |
Fair value amounts included in the carrying value of | ' | ' | ' | ' |
Cash and cash equivalents | 211,349 | 222,514 | ' | ' |
Short-term investments | 402,247 | 97,042 | ' | ' |
Investments | 9,792 | 21,393 | ' | ' |
Prepaid expenses and other current assets | 486 | 225 | ' | ' |
Other assets | 606 | 1,704 | ' | ' |
Total | $624,480 | $342,878 | ' | ' |
FAIR_VALUE_OF_CERTAIN_FINANCIA4
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES (Details 3) (Discounted cash flow, Level 3, Assets at fair value on recurring basis) | 12 Months Ended |
Dec. 31, 2013 | |
Auction Rate Securities | Minimum | ' |
Quantitative information related to the significant unobservable inputs | ' |
Maximum rate probability (as a percent) | 0.57% |
Principal returned probability (as a percent) | 85.84% |
Default probability (as a percent) | 4.18% |
Liquidity risk (as a percent) | 3.00% |
Recovery rate (as a percent) | 60.00% |
Auction Rate Securities | Maximum | ' |
Quantitative information related to the significant unobservable inputs | ' |
Maximum rate probability (as a percent) | 2.30% |
Principal returned probability (as a percent) | 94.93% |
Default probability (as a percent) | 12.08% |
Liquidity risk (as a percent) | 3.00% |
Recovery rate (as a percent) | 60.00% |
Auction Rate Securities | Weighted Average | ' |
Quantitative information related to the significant unobservable inputs | ' |
Maximum rate probability (as a percent) | 1.34% |
Principal returned probability (as a percent) | 87.13% |
Default probability (as a percent) | 11.53% |
Liquidity risk (as a percent) | 3.00% |
Recovery rate (as a percent) | 60.00% |
Put Options | Minimum | ' |
Quantitative information related to the significant unobservable inputs | ' |
Counterparty risk (as a percent) | 0.47% |
Put Options | Maximum | ' |
Quantitative information related to the significant unobservable inputs | ' |
Counterparty risk (as a percent) | 0.76% |
Put Options | Weighted Average | ' |
Quantitative information related to the significant unobservable inputs | ' |
Counterparty risk (as a percent) | 0.59% |
FAIR_VALUE_OF_CERTAIN_FINANCIA5
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES (Details 4) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2011 | Mar. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Oct. 02, 2013 | Jul. 02, 2013 | Mar. 31, 2012 | |
Auction rate securities | 2011 ARS Agreement | 2011 ARS Agreement | 2011 ARS Agreement | 2011 ARS Agreement | 2011 ARS Agreement | 2010 ARS Agreement | 2010 ARS Agreement | Put option related to auction rate securities | 2011 Put Option | 2011 Put Option | 2011 Put Option | 2010 Put Option | ||||
Subsequent event | Maximum | Maximum | ||||||||||||||
ARS Agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face value of investments | ' | ' | ' | $17,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortized Cost | 412,039,000 | 115,952,000 | ' | 16,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Trading auction rate securities, in short-term and long-term investments | ' | ' | ' | 16,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of investments, trading securities | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of securities of par value | ' | ' | ' | ' | ' | ' | ' | 24,500,000 | ' | ' | 54,200,000 | ' | ' | 1,000,000 | 1,000,000 | ' |
Redemption of investment securities through the exercise of the put option | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | 15,700,000 |
Redemption of investment securities at par through normal market channels | ' | ' | ' | ' | 300,000 | 1,300,000 | 3,700,000 | ' | 1,700,000 | 38,500,000 | ' | ' | ' | ' | ' | ' |
Fair market value of investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | ' | ' | ' |
Resulted (loss) gain on revaluation of investment securities included in other (expense) income | $2,700,000 | $800,000 | ($800,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
FAIR_VALUE_OF_CERTAIN_FINANCIA6
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES (Details 5) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Auction rate securities | ' | ' |
Fair value of level 3 financial assets, roll forward | ' | ' |
Balance at the beginning of the period | $23,156 | $35,852 |
Total gains (losses) for the period: Included in earnings | 3,553 | 1,897 |
Total gains (losses) for the period: Included in other comprehensive income | -2,482 | 2,482 |
Settlements | -8,043 | -17,075 |
Balance at the end of the period | 16,184 | 23,156 |
Put Options | ' | ' |
Fair value of level 3 financial assets, roll forward | ' | ' |
Balance at the beginning of the period | 1,929 | 3,041 |
Total gains (losses) for the period: Included in earnings | -837 | -1,112 |
Balance at the end of the period | $1,092 | $1,929 |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
INVENTORIES | ' | ' |
Raw materials | $68,088 | $65,010 |
Finished goods | 153,361 | 138,096 |
Inventories, net | $221,449 | $203,106 |
PROPERTY_AND_EQUIPMENT_Net_Det
PROPERTY AND EQUIPMENT, Net (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property and equipment, net | ' | ' |
Property and equipment, gross | $152,466 | $116,347 |
Less: accumulated depreciation and amortization | -64,323 | -47,210 |
Property and equipment, net | 88,143 | 69,137 |
Land | ' | ' |
Property and equipment, net | ' | ' |
Property and equipment, gross | 5,382 | 5,382 |
Leasehold improvements | ' | ' |
Property and equipment, net | ' | ' |
Property and equipment, gross | 2,222 | 2,300 |
Furniture and fixtures | ' | ' |
Property and equipment, net | ' | ' |
Property and equipment, gross | 3,474 | 2,087 |
Office and computer equipment | ' | ' |
Property and equipment, net | ' | ' |
Property and equipment, gross | 14,135 | 8,981 |
Computer software | ' | ' |
Property and equipment, net | ' | ' |
Property and equipment, gross | 791 | 1,135 |
Equipment | ' | ' |
Property and equipment, net | ' | ' |
Property and equipment, gross | 62,552 | 48,427 |
Building | ' | ' |
Property and equipment, net | ' | ' |
Property and equipment, gross | 33,468 | 21,998 |
Vehicles | ' | ' |
Property and equipment, net | ' | ' |
Property and equipment, gross | $30,442 | $26,037 |
INTANGIBLES_Net_Details
INTANGIBLES, Net (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Intangibles, Net | ' | ' | ' |
Amortizing intangibles | $1,076,000 | $1,061,000 | ' |
Accumulated amortization | -590,000 | -553,000 | ' |
Amortizing intangibles, net | 486,000 | 508,000 | ' |
Non-amortizing intangibles | 65,288,000 | 54,140,000 | ' |
Intangible, net | 65,774,000 | 54,648,000 | ' |
Weighted-average useful life | '20 years | ' | ' |
Amortization expense | 50,000 | 50,000 | 50,000 |
Future estimated amortization expense related to amortizing intangibles | $50,000 | ' | ' |
Minimum | ' | ' | ' |
Intangibles, Net | ' | ' | ' |
Weighted-average useful life | '1 year | ' | ' |
Maximum | ' | ' | ' |
Intangibles, Net | ' | ' | ' |
Weighted-average useful life | '25 years | ' | ' |
DISTRIBUTION_AGREEMENTS_Detail
DISTRIBUTION AGREEMENTS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
DISTRIBUTION AGREEMENTS | ' | ' | ' |
Amount recorded from distribution agreement | $9.70 | ' | ' |
Distribution agreement, revenue recognition period | '20 years | ' | ' |
Revenue recognized | 8.4 | 8.2 | 9.3 |
Termination costs of prior distributors | 10.8 | 1.5 | 1.1 |
Accrued distributor terminations | $2.30 | $0.90 | ' |
DEBT_Details
DEBT (Details) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Line of credit | Line of credit | Line of credit | Line of credit | Line of credit | Line of credit | Line of credit | Line of credit | Capital lease obligations | Capital lease obligations | Capital lease obligations | Capital lease obligations | Capital lease obligations | Standby letters of credit | Standby letters of credit | Standby letters of credit |
Base (prime) rate | Base (prime) rate | Base (prime) rate | London Interbank Offered Rates | London Interbank Offered Rates | London Interbank Offered Rates | Assets acquired under capital leases | Assets acquired under capital leases | Maximum | Minimum | |||||||
Maximum | Minimum | Maximum | Minimum | |||||||||||||
DEBT | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | $10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4 | ' | ' |
Effective interest rate on borrowing | ' | ' | 'Base (prime) rate | ' | ' | 'London Interbank Offered Rates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage to be subtracted to compute the variable rate on the debt instrument | ' | ' | ' | 1.50% | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage that needs to be added to compute the variable rate on the debt instrument | ' | ' | ' | ' | ' | ' | 1.75% | 1.25% | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding borrowings | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fee (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | 1.00% |
Amount outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
Company debt consisting of capital leases | ' | ' | ' | ' | ' | ' | ' | ' | 1.3 | 0.5 | ' | ' | ' | ' | ' | ' |
Period over which monthly installments are payable | ' | ' | ' | ' | ' | ' | ' | ' | '12 months | ' | ' | ' | ' | ' | ' | ' |
Assets acquired under capital leases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net book value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.2 | 3.2 | ' | ' | ' |
Accumulated depreciation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.3 | 2.5 | ' | ' | ' |
Interest expenses for capital lease obligations | ' | ' | ' | ' | ' | ' | ' | ' | $0.05 | $0.05 | $0.05 | ' | ' | ' | ' | ' |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
COMMITMENTS AND CONTINGENCIES | ' | ' | ' |
Rental expense under operating leases | $7,400,000 | $4,600,000 | $4,100,000 |
Future minimum rental payments under the operating leases | ' | ' | ' |
2014 | 5,050,000 | ' | ' |
2015 | 4,958,000 | ' | ' |
2016 | 4,207,000 | ' | ' |
2017 | 1,089,000 | ' | ' |
2018 | 493,000 | ' | ' |
2019 and thereafter | 1,577,000 | ' | ' |
Total | $17,374,000 | ' | ' |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Contractual obligations related primarily to sponsorships and other commitments | ' | ' | ' |
Value of purchases from suppliers of limited resources | $282,500,000 | $264,200,000 | $279,500,000 |
Raw material items | ' | ' | ' |
Contractual obligations related primarily to sponsorships and other commitments | ' | ' | ' |
Purchase Commitments | 44,500,000 | ' | ' |
Period over which obligations will be paid | '1 year | ' | ' |
Contractual obligations | ' | ' | ' |
Contractual obligations related primarily to sponsorships and other commitments | ' | ' | ' |
2014 | 60,241,000 | ' | ' |
2015 | 23,505,000 | ' | ' |
2016 | 9,694,000 | ' | ' |
2017 | 500,000 | ' | ' |
Total | $93,940,000 | ' | ' |
COMMITMENTS_AND_CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 17, 2012 | Sep. 17, 2008 |
Charge of VAT pass-through tax to customers in the United Kingdom | Charge of VAT pass-through tax to customers in the United Kingdom | Lawsuit in Superior Court by Wendy Crossland and Richard Fournier | Securities Litigation | |
oz | item | |||
item | ||||
Commitments and contingencies | ' | ' | ' | ' |
Estimated maximum amount of potential VAT pass-through tax | $49,700,000 | $33,200,000 | ' | ' |
Age of the plaintiff's deceased daughter | ' | ' | '14 years | ' |
Number of 24 ounce energy drinks | ' | ' | 2 | ' |
Number of ounce energy drink | ' | ' | 24 | ' |
Number of days over which the energy drink was consumed | ' | ' | '2 days | ' |
Minimum amount of plaintiff claims for general damages | ' | ' | $25,000 | ' |
Number of actions consolidated | ' | ' | ' | 2 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Components of accumulated other comprehensive income (loss): | ' | ' |
Accumulated net unrealized gain on available-for-sale securities, net of tax benefit of $1.0 million | ' | $1,525,000 |
Foreign currency translation adjustments | -1,233,000 | 549,000 |
Total accumulated other comprehensive (loss) income | -1,233,000 | 2,074,000 |
Tax benefit on accumulated net unrealized gain on available-for-sale securities | $1,000,000 | ' |
TREASURY_STOCK_PURCHASE_Detail
TREASURY STOCK PURCHASE (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 13, 2012 | Dec. 31, 2013 | Apr. 07, 2013 | Dec. 31, 2013 | |
November 2012 Repurchase Plan | November 2012 Repurchase Plan | April 2013 Repurchase Plan | April 2013 Repurchase Plan | ||||
TREASURY STOCK PURCHASE | ' | ' | ' | ' | ' | ' | ' |
Maximum amount of common stock the board of directors authorized to repurchase | ' | ' | ' | $250,000,000 | ' | $200,000,000 | ' |
Common stock repurchased (in shares) | ' | ' | ' | ' | 257,000 | ' | 951,000 |
Average purchase price (in dollars per share) | ' | ' | ' | ' | $51.99 | ' | $56.98 |
Common stock repurchased | 67,599,000 | 737,079,000 | 176,392,000 | ' | 13,400,000 | ' | 54,200,000 |
Number of shares repurchased of common stock from employees in lieu of cash or withholding taxes due | 1,415 | ' | ' | ' | ' | ' | ' |
Cash payment for repurchase of common stock from employees in lieu of cash or withholding taxes due | $100,000 | ' | ' | ' | ' | ' | ' |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 04, 2009 | Dec. 31, 2013 |
plan | Stock options | Stock options | Stock options | 2011 Omnibus Incentive Plan | 2011 Omnibus Incentive Plan | 2011 Omnibus Incentive Plan | 2009 Directors Plan | 2009 Directors Plan | 2009 Directors Plan | 2009 Directors Plan | |||
Stock options | Stock options | Minimum | Stock options, non-employee directors | Stock options, non-employee directors | |||||||||
Maximum | |||||||||||||
Stock-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation plans | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate amount of common stock authorized (in shares) | ' | ' | ' | ' | ' | ' | 14,500,000 | ' | ' | 1,600,000 | ' | ' | ' |
Reduction in number of shares for each share granted | ' | ' | ' | ' | ' | ' | 2.16 | ' | ' | ' | ' | ' | ' |
Percentage of award vesting on the last business day prior to the date of the annual meeting | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' |
Percentage of closing price of the company's common stock on the date an option is granted to determine the exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' |
Tenure of award | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' |
The period during which awards can be granted, effective June 4, 2009 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' |
Common stock granted, net of cancellations (in shares) | ' | ' | ' | 106,000 | 450,000 | 636,000 | 2,745,630 | ' | ' | ' | ' | ' | 70,655 |
Shares available for grant | ' | ' | ' | ' | ' | ' | 10,727,561 | ' | ' | ' | ' | ' | 1,529,345 |
Compensation expense on share-based plans | $28.80 | $28.40 | $19.40 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
STOCKBASED_COMPENSATION_Detail1
STOCK-BASED COMPENSATION (Details 2) (Stock options, USD $) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock options | ' | ' | ' | ' | ' | ' |
Stock-based compensation | ' | ' | ' | ' | ' | ' |
Excess tax benefit realized for tax deductions from non-qualified stock option exercises and disqualifying dispositions of incentive stock options | ' | ' | ' | $30,300,000 | $19,700,000 | $3,800,000 |
Weighted-average assumptions used to estimate the fair value of options granted | ' | ' | ' | ' | ' | ' |
Dividend yield (as a percent) | ' | ' | ' | 0.00% | 0.00% | 0.00% |
Expected volatility (as a percent) | ' | ' | ' | 47.50% | 48.10% | 53.60% |
Risk-free interest rate (as a percent) | ' | ' | ' | 0.98% | 0.74% | 1.50% |
Expected term | ' | ' | ' | '5 years 8 months 12 days | '5 years 4 months 24 days | '5 years 9 months 18 days |
Stock Options, Number of Shares | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period (in shares) | ' | ' | 14,000,000 | 14,000,000 | ' | ' |
Granted (in shares) | 106,000 | 450,000 | 636,000 | ' | ' | ' |
Exercised (in shares) | ' | ' | ' | -2,022,000 | ' | ' |
Cancelled or forfeited (in shares) | ' | ' | ' | -197,000 | ' | ' |
Balance at the end of the period (in shares) | 12,973,000 | ' | ' | 12,973,000 | 14,000,000 | ' |
Vested and expected to vest in the future at the end of the period (in shares) | 12,639,000 | ' | ' | 12,639,000 | ' | ' |
Exercisable at the end of the period (in shares) | 10,401,000 | ' | ' | 10,401,000 | ' | ' |
Stock options, Weighted-Average Exercise Price Per Share | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period (in dollars per share) | ' | ' | $12.12 | $12.12 | ' | ' |
Granted (in dollars per share) | $57.76 | $54 | $47.36 | ' | ' | ' |
Exercised (in dollars per share) | ' | ' | ' | $10.51 | ' | ' |
Cancelled or forfeited (in dollars per share) | ' | ' | ' | $27.28 | ' | ' |
Balance at the end of the period (in dollars per share) | $15.70 | ' | ' | $15.70 | $12.12 | ' |
Vested and expected to vest in the future at the end of the period (in dollars per share) | $14.89 | ' | ' | $14.89 | ' | ' |
Exercisable at the end of the period (in dollars per share) | $9.38 | ' | ' | $9.38 | ' | ' |
Weighted-Average Remaining Contractual Term | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | ' | '3 years 8 months 12 days | '4 years 1 month 6 days | ' |
Balance at the end of the period | ' | ' | ' | '3 years 8 months 12 days | '4 years 1 month 6 days | ' |
Vested and expected to vest in the future at the end of the period | ' | ' | ' | '3 years 7 months 6 days | ' | ' |
Exercisable at the end of the period | ' | ' | ' | '2 years 8 months 12 days | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | 572,530,000 | 572,530,000 | ' | ' |
Balance at the end of the period | 675,595,000 | ' | ' | 675,595,000 | 572,530,000 | ' |
Vested and expected to vest in the future at the end of the period | 668,379,000 | ' | ' | 668,379,000 | ' | ' |
Exercisable at the end of the period | $607,302,000 | ' | ' | $607,302,000 | ' | ' |
STOCKBASED_COMPENSATION_Detail2
STOCK-BASED COMPENSATION (Details 3) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
Stock options outstanding and stock options exercisable | ' |
Stock options outstanding (in shares) | 12,973 |
Options Outstanding, Weighted Average Remaining Contractual Term (in years) | '3 years 8 months 12 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $15.70 |
Options Exercisable (in shares) | 10,401 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $9.38 |
Range of Exercise Prices $2.09 - $2.09 | ' |
Stock options outstanding and stock options exercisable | ' |
Stock options, range of exercise prices, low end of range (in dollars per share) | $2.09 |
Stock options, range of exercise prices, high end of range (in dollars per share) | $2.09 |
Stock options outstanding (in shares) | 43 |
Options Outstanding, Weighted Average Remaining Contractual Term (in years) | '1 year |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $2.09 |
Options Exercisable (in shares) | 43 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $2.09 |
Range of Exercise Prices $3.29 - $3.29 | ' |
Stock options outstanding and stock options exercisable | ' |
Stock options, range of exercise prices, low end of range (in dollars per share) | $3.29 |
Stock options, range of exercise prices, high end of range (in dollars per share) | $3.29 |
Stock options outstanding (in shares) | 4,400 |
Options Outstanding, Weighted Average Remaining Contractual Term (in years) | '1 year 2 months 12 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $3.29 |
Options Exercisable (in shares) | 4,400 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $3.29 |
Range of Exercise Prices $5.72 - $6.21 | ' |
Stock options outstanding and stock options exercisable | ' |
Stock options, range of exercise prices, low end of range (in dollars per share) | $5.72 |
Stock options, range of exercise prices, high end of range (in dollars per share) | $6.21 |
Stock options outstanding (in shares) | 23 |
Options Outstanding, Weighted Average Remaining Contractual Term (in years) | '1 year 9 months 18 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $6.11 |
Options Exercisable (in shares) | 23 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $6.11 |
Range of Exercise Prices $8.44 - $8.44 | ' |
Stock options outstanding and stock options exercisable | ' |
Stock options, range of exercise prices, low end of range (in dollars per share) | $8.44 |
Stock options, range of exercise prices, high end of range (in dollars per share) | $8.44 |
Stock options outstanding (in shares) | 2,445 |
Options Outstanding, Weighted Average Remaining Contractual Term (in years) | '1 year 10 months 24 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $8.44 |
Options Exercisable (in shares) | 2,445 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $8.44 |
Range of Exercise Prices $11.36 - $15.60 | ' |
Stock options outstanding and stock options exercisable | ' |
Stock options, range of exercise prices, low end of range (in dollars per share) | $11.36 |
Stock options, range of exercise prices, high end of range (in dollars per share) | $15.60 |
Stock options outstanding (in shares) | 145 |
Options Outstanding, Weighted Average Remaining Contractual Term (in years) | '4 years 9 months 18 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $13.43 |
Options Exercisable (in shares) | 143 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $13.39 |
Range of Exercise Prices $15.86 - $15.86 | ' |
Stock options outstanding and stock options exercisable | ' |
Stock options, range of exercise prices, low end of range (in dollars per share) | $15.86 |
Stock options, range of exercise prices, high end of range (in dollars per share) | $15.86 |
Stock options outstanding (in shares) | 1,777 |
Options Outstanding, Weighted Average Remaining Contractual Term (in years) | '4 years 4 months 24 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $15.86 |
Options Exercisable (in shares) | 1,777 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $15.86 |
Range of Exercise Prices $15.94 - $17.82 | ' |
Stock options outstanding and stock options exercisable | ' |
Stock options, range of exercise prices, low end of range (in dollars per share) | $15.94 |
Stock options, range of exercise prices, high end of range (in dollars per share) | $17.82 |
Stock options outstanding (in shares) | 1,381 |
Options Outstanding, Weighted Average Remaining Contractual Term (in years) | '5 years 10 months 24 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $17.75 |
Options Exercisable (in shares) | 1,000 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $17.77 |
Range of Exercise Prices $18.07 - $47.13 | ' |
Stock options outstanding and stock options exercisable | ' |
Stock options, range of exercise prices, low end of range (in dollars per share) | $18.07 |
Stock options, range of exercise prices, high end of range (in dollars per share) | $47.13 |
Stock options outstanding (in shares) | 1,796 |
Options Outstanding, Weighted Average Remaining Contractual Term (in years) | '7 years 3 months 18 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $33.11 |
Options Exercisable (in shares) | 553 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $24.05 |
Range of Exercise Prices $47.65 - $70.54 | ' |
Stock options outstanding and stock options exercisable | ' |
Stock options, range of exercise prices, low end of range (in dollars per share) | $47.65 |
Stock options, range of exercise prices, high end of range (in dollars per share) | $70.54 |
Stock options outstanding (in shares) | 956 |
Options Outstanding, Weighted Average Remaining Contractual Term (in years) | '9 years 1 month 6 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $56.25 |
Options Exercisable (in shares) | 16 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $62.65 |
Range of Exercise Prices $74.78 - $74.78 | ' |
Stock options outstanding and stock options exercisable | ' |
Stock options, range of exercise prices, low end of range (in dollars per share) | $74.78 |
Stock options, range of exercise prices, high end of range (in dollars per share) | $74.78 |
Stock options outstanding (in shares) | 7 |
Options Outstanding, Weighted Average Remaining Contractual Term (in years) | '8 years 6 months |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $74.78 |
Options Exercisable (in shares) | 1 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $74.78 |
STOCKBASED_COMPENSATION_Detail3
STOCK-BASED COMPENSATION (Details 4) (USD $) | 3 Months Ended | 12 Months Ended | ||||
Share data in Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Compensation cost charged against income | ' | ' | ' | ' | ' | ' |
Total employee and non-employee share-based compensation expense included in operating expenses | ' | ' | ' | $28,764,000 | $28,413,000 | $19,424,000 |
Total employee and non-employee share-based compensation expense included in income, before income tax | ' | ' | ' | 28,764,000 | 28,413,000 | 19,424,000 |
Less: Amount of income tax benefit recognized in earnings | ' | ' | ' | -7,730,000 | -8,933,000 | -6,646,000 |
Amount charged against net income | ' | ' | ' | 21,034,000 | 19,480,000 | 12,778,000 |
Operating expense | ' | ' | ' | ' | ' | ' |
Compensation cost charged against income | ' | ' | ' | ' | ' | ' |
Total employee and non-employee share-based compensation expense included in income, before income tax | ' | ' | ' | 28,800,000 | 28,400,000 | 19,400,000 |
Stock options | ' | ' | ' | ' | ' | ' |
Stock-based compensation | ' | ' | ' | ' | ' | ' |
Weighted-average grant-date fair value of options granted (in dollars per share) | ' | ' | ' | $22.57 | $25.21 | $18.45 |
Total intrinsic value of options exercised | ' | ' | ' | 91,600,000 | 248,800,000 | 23,000,000 |
Cash received from option exercises | ' | ' | ' | 21,300,000 | 10,300,000 | 20,300,000 |
Total unrecognized compensation expense related to non-vested shares granted to employees | 40,300,000 | ' | ' | 40,300,000 | ' | ' |
Cost expected to be recognized over a weighted-average period | ' | ' | ' | '2 years 8 months 12 days | ' | ' |
Stock units and stock awards expected to vest (in shares) | 12,639 | ' | ' | 12,639 | ' | ' |
Restricted stock units | ' | ' | ' | ' | ' | ' |
Stock-based compensation | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation expense related to non-vested shares granted to employees | 13,800,000 | ' | ' | 13,800,000 | ' | ' |
Cost expected to be recognized over a weighted-average period | ' | ' | ' | '1 year 10 months 24 days | ' | ' |
Stock units and stock awards expected to vest (in shares) | 400 | ' | ' | 400 | ' | ' |
Number of Shares | ' | ' | ' | ' | ' | ' |
Non-vested at the beginning of the period (in shares) | ' | ' | 637 | 637 | ' | ' |
Granted (in shares) | 5 | 15 | 8 | ' | ' | ' |
Vested (in shares) | ' | ' | ' | -262 | ' | ' |
Forfeited/cancelled (in shares) | ' | ' | ' | -12 | ' | ' |
Non-vested at the end of the period (in shares) | 391 | ' | ' | 391 | 637 | ' |
Weighted Average Grant-Date Fair Value | ' | ' | ' | ' | ' | ' |
Non-vested at the beginning of the period (in dollars per share) | ' | ' | $46.97 | $46.97 | ' | ' |
Granted (in dollars per share) | $54.57 | $54.64 | $50.89 | $53.50 | $61.73 | $41.65 |
Vested (in dollars per share) | ' | ' | ' | $43.87 | ' | ' |
Forfeited/cancelled (in dollars per share) | ' | ' | ' | $54.67 | ' | ' |
Non-vested at the end of the period (in dollars per share) | $49.27 | ' | ' | $49.27 | $46.97 | ' |
Incentive stock option | ' | ' | ' | ' | ' | ' |
Compensation cost charged against income | ' | ' | ' | ' | ' | ' |
Total employee and non-employee share-based compensation expense included in income, before income tax | ' | ' | ' | 5,200,000 | 5,100,000 | 4,900,000 |
Non-Qualified stock option | ' | ' | ' | ' | ' | ' |
Compensation cost charged against income | ' | ' | ' | ' | ' | ' |
Total employee and non-employee share-based compensation expense included in income, before income tax | ' | ' | ' | $23,600,000 | $23,300,000 | $14,500,000 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' |
Federal | $191,596 | $177,372 | $146,385 |
State | 36,662 | 30,268 | 22,526 |
Foreign | 4,052 | 3,951 | 2,827 |
Total current provision | 232,310 | 211,591 | 171,738 |
Deferred: | ' | ' | ' |
Federal | -7,441 | -743 | 634 |
State | -1,443 | -483 | 465 |
Foreign | -9,694 | -7,373 | -3,583 |
Total deferred provision | -18,578 | -8,599 | -2,484 |
Valuation allowance | 11,501 | 6,142 | 1,797 |
Total provision for income taxes | 225,233 | 209,134 | 171,051 |
Federal statutory rate (as a percent) | 35.00% | ' | ' |
Reconciliation of income tax expense | ' | ' | ' |
U.S. Federal tax expense at statutory rates | 197,363 | 192,204 | 160,045 |
State income taxes, net of federal tax benefit | 22,640 | 20,252 | 14,917 |
Permanent differences | 936 | 5,968 | 1,176 |
Domestic production deduction | -16,039 | -15,469 | -11,551 |
Other | 266 | -388 | 1,538 |
Foreign rate differential | 8,566 | 425 | 3,129 |
Valuation allowance | 11,501 | 6,142 | 1,797 |
Total provision for income taxes | $225,233 | $209,134 | $171,051 |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Deferred Tax Assets: | ' | ' | ' |
Reserve for sales returns | $583,000 | $145,000 | ' |
Reserve for doubtful accounts | 62,000 | 28,000 | ' |
Reserve for inventory obsolescence | 2,060,000 | 2,753,000 | ' |
Reserve for marketing development fund | 9,470,000 | 4,595,000 | ' |
Capitalization of inventory costs | 1,949,000 | 1,524,000 | ' |
State franchise tax | 6,043,000 | 5,268,000 | ' |
Accrued compensation | 867,000 | 49,000 | ' |
Accrued other liabilities | 4,871,000 | 1,825,000 | ' |
Deferred revenue | 50,813,000 | 49,597,000 | ' |
Stock-based compensation | 21,963,000 | 19,965,000 | ' |
Securities impairment | 273,000 | 2,104,000 | ' |
Foreign net operating loss carryforward | 19,346,000 | 13,529,000 | ' |
Prepaid supplies | 4,639,000 | 2,008,000 | ' |
Total gross deferred tax assets | 122,939,000 | 103,390,000 | ' |
Deferred Tax Liabilities: | ' | ' | ' |
Amortization of trademarks | -10,393,000 | -9,179,000 | ' |
Unrealized gain on available-for-sale investments | ' | -1,006,000 | ' |
Amortization of graphic design | -94,000 | -81,000 | ' |
Depreciation | -5,828,000 | -5,304,000 | ' |
Total gross deferred tax liabilities | -16,315,000 | -15,570,000 | ' |
Valuation Allowance | -22,089,000 | -11,316,000 | ' |
Net deferred tax assets | 84,535,000 | 76,504,000 | ' |
Valuation Allowance | 10,800,000 | 6,100,000 | 1,800,000 |
Net operating loss carryforwards | 95,100,000 | ' | ' |
Net operating loss carryforwards subject to indefinite carryforward | 73,900,000 | ' | ' |
Net operating loss carryforwards that begin to expire in 2017 | $21,200,000 | ' | ' |
INCOME_TAXES_Details_3
INCOME TAXES (Details 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Gross unrecognized tax benefits, roll forward | ' | ' | ' |
Balance at the beginning of the period | $926,000 | $1,910,000 | $465,000 |
Additions for tax positions related to the prior year | 9,000 | 520,000 | 1,445,000 |
Decreases for tax positions related to the prior years | ' | -1,504,000 | ' |
Balance at the end of the period | 935,000 | 926,000 | 1,910,000 |
Accrued interest and penalties related to unrecognized tax benefits | $400,000 | ' | ' |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Weighted-average shares outstanding: | ' | ' | ' |
Basic | 166,679,000 | 173,712,000 | 176,212,000 |
Dilutive securities | 6,708,000 | 9,371,000 | 10,462,000 |
Diluted | 173,387,000 | 183,083,000 | 186,674,000 |
Options outstanding excluded from the calculations as their effect would have been antidilutive (in shares) | 1,300,000 | 300,000 | 300,000 |
EMPLOYEE_BENEFIT_PLAN_Details
EMPLOYEE BENEFIT PLAN (Details) (Employee 401(k) Plan, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Contribution Plan | ' | ' | ' |
Employer matching contribution as a percentage of the employee's contribution | 25.00% | ' | ' |
Percentage of contribution vested each year | 20.00% | ' | ' |
Vesting period of contribution by the company | '5 years | ' | ' |
Matching contributions by the company (in dollars) | $0.60 | $0.50 | $0.50 |
Maximum | ' | ' | ' |
Defined Contribution Plan | ' | ' | ' |
Annual employee contribution limit as a percent of compensation | 15.00% | ' | ' |
Percent of employee's earnings eligible for employer matching contribution | 8.00% | ' | ' |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
item | |||||||||||
SEGMENT INFORMATION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $540,849,000 | $590,422,000 | $630,934,000 | $484,223,000 | $471,517,000 | $541,940,000 | $592,640,000 | $454,605,000 | $2,246,428,000 | $2,060,702,000 | $1,703,230,000 |
Contribution margin | ' | ' | ' | ' | ' | ' | ' | ' | 725,174,000 | 664,103,000 | 547,501,000 |
Corporate & unallocated expenses | ' | ' | ' | ' | ' | ' | ' | ' | -152,258,000 | -113,480,000 | -91,078,000 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 572,916,000 | 550,623,000 | 456,423,000 |
Interest and other income, net | ' | ' | ' | ' | ' | ' | ' | ' | -9,022,000 | -1,469,000 | 847,000 |
Income before provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 563,894,000 | 549,154,000 | 457,270,000 |
Depreciation & amortization | ' | ' | ' | ' | ' | ' | ' | ' | -22,713,000 | -20,513,000 | -17,032,000 |
Trademark amortization | ' | ' | ' | ' | ' | ' | ' | ' | -49,000 | -49,000 | -52,000 |
Stock-based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | 28,800,000 | 28,400,000 | 19,400,000 |
Corporate and Unallocated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Corporate & unallocated expenses | ' | ' | ' | ' | ' | ' | ' | ' | -152,258,000 | -113,480,000 | -91,078,000 |
Interest and other income, net | ' | ' | ' | ' | ' | ' | ' | ' | -9,775,000 | -1,961,000 | 860,000 |
Depreciation & amortization | ' | ' | ' | ' | ' | ' | ' | ' | -3,446,000 | -4,714,000 | -4,261,000 |
Trademark amortization | ' | ' | ' | ' | ' | ' | ' | ' | -5,000 | -5,000 | -8,000 |
Payroll cost | ' | ' | ' | ' | ' | ' | ' | ' | 82,500,000 | 73,000,000 | 55,800,000 |
Stock-based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | 28,800,000 | 28,400,000 | 19,400,000 |
Professional service expenses | ' | ' | ' | ' | ' | ' | ' | ' | 38,700,000 | 19,700,000 | 17,800,000 |
Depreciation | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,400,000 | 4,100,000 |
Other operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 31,100,000 | 16,400,000 | 13,400,000 |
Direct Store Delivery ("DSD") | Operating segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 2,147,355,000 | 1,966,481,000 | 1,608,326,000 |
Contribution margin | ' | ' | ' | ' | ' | ' | ' | ' | 726,826,000 | 660,607,000 | 543,210,000 |
Interest and other income, net | ' | ' | ' | ' | ' | ' | ' | ' | 755,000 | 494,000 | -12,000 |
Depreciation & amortization | ' | ' | ' | ' | ' | ' | ' | ' | -19,023,000 | -15,660,000 | -12,684,000 |
Warehouse ("Warehouse") | Operating segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 99,073,000 | 94,221,000 | 94,904,000 |
Contribution margin | ' | ' | ' | ' | ' | ' | ' | ' | -1,652,000 | 3,496,000 | 4,291,000 |
Interest and other income, net | ' | ' | ' | ' | ' | ' | ' | ' | -2,000 | -2,000 | -1,000 |
Depreciation & amortization | ' | ' | ' | ' | ' | ' | ' | ' | -244,000 | -139,000 | -87,000 |
Trademark amortization | ' | ' | ' | ' | ' | ' | ' | ' | ($44,000) | ($44,000) | ($44,000) |
SEGMENT_INFORMATION_Details_2
SEGMENT INFORMATION (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $540,849 | $590,422 | $630,934 | $484,223 | $471,517 | $541,940 | $592,640 | $454,605 | $2,246,428 | $2,060,702 | $1,703,230 |
Outside United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of net sales to customers | ' | ' | ' | ' | ' | ' | ' | ' | 20.80% | 20.20% | 17.70% |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 467,200 | 415,800 | 300,900 |
Energy drinks | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 2,082,238 | 1,906,236 | 1,563,331 |
Non-carbonated (primarily juice based beverages) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 120,145 | 110,217 | 94,398 |
Carbonated (primarily soda beverages) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 29,245 | 31,044 | 32,467 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | $14,800 | $13,205 | $13,034 |
Coca-Cola Refreshments ("CCR") | Direct Store Delivery ("DSD") | Sales | Customer concentration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of net sales from major customer | ' | ' | ' | ' | ' | ' | ' | ' | 29.00% | 28.00% | 29.00% |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
item | |||
Directors and Officers that provide promotional materials | ' | ' | ' |
Related party transactions | ' | ' | ' |
Number of directors and officers who are principal owners of a company that provides promotional materials | 2 | ' | ' |
Expenses incurred in connection with materials or services provided by a related party | $1 | $1 | $1.20 |
Director that serves as counsel | ' | ' | ' |
Related party transactions | ' | ' | ' |
Expenses incurred in connection with materials or services provided by a related party | ' | ' | $4 |
QUARTERLY_FINANCIAL_DATA_Unaud2
QUARTERLY FINANCIAL DATA (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
QUARTERLY FINANCIAL DATA (Unaudited) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | $540,849 | $590,422 | $630,934 | $484,223 | $471,517 | $541,940 | $592,640 | $454,605 | $2,246,428 | $2,060,702 | $1,703,230 |
Gross Profit | 277,160 | 307,470 | 336,262 | 252,039 | 243,887 | 273,592 | 307,008 | 241,169 | 1,172,931 | 1,065,656 | 894,309 |
Net Income | $76,105 | $92,187 | $106,873 | $63,496 | $67,984 | $86,142 | $109,795 | $76,099 | $338,661 | $340,020 | $286,219 |
Net Income per Common Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in dollars per share) | $0.46 | $0.55 | $0.64 | $0.38 | $0.40 | $0.49 | $0.62 | $0.44 | $2.03 | $1.96 | $1.62 |
Diluted (in dollars per share) | $0.44 | $0.53 | $0.62 | $0.37 | $0.39 | $0.47 | $0.59 | $0.41 | $1.95 | $1.86 | $1.53 |
SCHEDULE_II_VALUATION_AND_QUAL1
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for doubtful accounts, sales returns and cash discounts | ' | ' | ' |
Changes to valuation allowance | ' | ' | ' |
Balance at beginning of period | $1,430 | $1,893 | $1,870 |
Charged to cost and expenses | 4,894 | 9,148 | 8,368 |
Deductions | -3,398 | -9,611 | -8,345 |
Balance at end of period | 2,926 | 1,430 | 1,893 |
Allowance on Deferred Tax Assets | ' | ' | ' |
Changes to valuation allowance | ' | ' | ' |
Balance at beginning of period | 12,579 | 7,592 | 4,003 |
Charged to cost and expenses | 11,551 | 6,142 | 3,589 |
Deductions | ' | -1,155 | ' |
Balance at end of period | $24,130 | $12,579 | $7,592 |