Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 28, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | Monster Beverage Corp | |
Entity Central Index Key | 865752 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 170,171,054 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | $362,787 | $370,323 |
Short-term investments | 647,284 | 781,134 |
Accounts receivable, net | 343,427 | 280,203 |
Distributor receivables | 628 | 552 |
Inventories | 197,914 | 174,573 |
Prepaid expenses and other current assets | 25,174 | 19,673 |
Intangibles held-for-sale, net | 18,079 | 18,079 |
Prepaid income taxes | 21,648 | 8,617 |
Deferred income taxes | 224,954 | 40,275 |
Total current assets | 1,841,895 | 1,693,429 |
INVESTMENTS | 41,240 | 42,940 |
PROPERTY AND EQUIPMENT, net | 88,296 | 90,156 |
DEFERRED INCOME TAXES | 54,106 | 54,106 |
INTANGIBLES, net | 52,300 | 50,748 |
OTHER ASSETS | 7,109 | 7,496 |
Total Assets | 2,084,946 | 1,938,875 |
CURRENT LIABILITIES: | ||
Accounts payable | 167,789 | 127,641 |
Accrued liabilities | 46,147 | 40,271 |
Accrued promotional allowances | 107,229 | 114,047 |
Accrued distributor terminations | 205,980 | |
Deferred revenue | 10,584 | 49,926 |
Accrued compensation | 9,972 | 17,983 |
Income taxes payable | 1,586 | 5,848 |
Total current liabilities | 549,287 | 355,716 |
DEFERRED REVENUE | 67,305 | 68,009 |
COMMITMENTS AND CONTINGENCIES (Note 11) | ||
STOCKHOLDERS' EQUITY: | ||
Common stock - $0.005 par value; 240,000 shares authorized; 211,609 shares issued and 170,158 outstanding as of March 31, 2015; 207,004 shares issued and 167,722 outstanding as of December 31, 2014 | 1,058 | 1,035 |
Additional paid-in capital | 636,274 | 426,145 |
Retained earnings | 2,334,924 | 2,330,510 |
Accumulated other comprehensive loss | -21,433 | -11,453 |
Common stock in treasury, at cost; 41,451 and 39,282 shares as of March 31, 2015 and December 31, 2014, respectively | -1,482,469 | -1,231,087 |
Total stockholders' equity | 1,468,354 | 1,515,150 |
Total Liabilities and Stockholders' Equity | $2,084,946 | $1,938,875 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
CONDENSED 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 | 211,609 | 207,004 |
Common stock, shares outstanding | 170,158 | 167,722 |
Common stock in treasury, shares | 41,451 | 39,282 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||
NET SALES | $626,791 | $536,129 |
COST OF SALES | 257,834 | 249,311 |
GROSS PROFIT | 368,957 | 286,818 |
OPERATING EXPENSES | 361,328 | 137,955 |
OPERATING INCOME | 7,629 | 148,863 |
OTHER INCOME (EXPENSE): | ||
INTEREST AND OTHER INCOME, net | 1,233 | 154 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 8,862 | 149,017 |
PROVISION FOR INCOME TAXES | 4,448 | 53,767 |
NET INCOME | $4,414 | $95,250 |
NET INCOME PER COMMON SHARE: | ||
Basic (in dollars per share) | $0.03 | $0.57 |
Diluted (in dollars per share) | $0.03 | $0.55 |
WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK AND COMMON STOCK EQUIVALENTS: | ||
Basic (in shares) | 169,871 | 166,913 |
Diluted (in shares) | 173,778 | 173,741 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income, as reported | $4,414 | $95,250 |
Other comprehensive (loss) income: | ||
Change in foreign currency translation adjustment | -9,980 | 102 |
Available-for-sale investments: | ||
Other comprehensive (loss) income | -9,980 | 102 |
Comprehensive (loss) income | ($5,566) | $95,352 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $4,414 | $95,250 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 6,470 | 6,453 |
Gain on disposal of property and equipment | -46 | -100 |
Stock-based compensation | 6,354 | 6,986 |
Loss on put option | 67 | |
Gain on investments, net | -66 | |
Deferred income taxes | 168 | |
Excess tax benefit from stock-based compensation | -184,679 | -2,602 |
Effect on cash of changes in operating assets and liabilities: | ||
Accounts receivable | -68,138 | -42,544 |
Distributor receivables | 66 | 947 |
Inventories | -26,547 | 17,410 |
Prepaid expenses and other current assets | -5,895 | -7,110 |
Prepaid income taxes | -13,498 | 4,417 |
Accounts payable | 42,742 | 6,068 |
Accrued liabilities | 5,387 | 4,610 |
Accrued promotional allowances | -2,160 | 14,708 |
Accrued distributor terminations | 205,980 | |
Accrued compensation | -7,866 | -5,838 |
Income taxes payable | -4,298 | 39,095 |
Deferred revenue | -40,041 | -1,517 |
Net cash (used in) provided by operating activities | -81,755 | 136,402 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Maturities of held-to-maturity investments | 253,732 | 151,035 |
Sales of available-for-sale investments | 101 | |
Sales of trading investments | 1,725 | |
Purchases of held-to-maturity investments | -118,283 | -187,718 |
Purchases of property and equipment | -4,687 | -9,871 |
Proceeds from sale of property and equipment | 102 | 237 |
(Increase) decrease to intangibles | -1,552 | 105 |
Decrease in other assets | 227 | 543 |
Net cash provided by (used in) investing activities | 129,640 | -43,944 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Principal payments on debt | -196 | -620 |
Excess tax benefit from stock based compensation | 184,679 | 2,602 |
Issuance of common stock | 19,119 | 5,728 |
Purchases of common stock held in treasury | -251,382 | -20 |
Net cash (Used in) provided by financing activities | -47,780 | 7,690 |
Effect of exchange rate changes on cash and cash equivalents | -7,641 | 523 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -7,536 | 100,671 |
CASH AND CASH EQUIVALENTS, beginning of year | 370,323 | 211,349 |
CASH AND CASH EQUIVALENTS, end of year | 362,787 | 312,020 |
Cash paid during the period for: | ||
Interest | 5 | 12 |
Income taxes | $22,703 | $9,747 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS NON-CASH SUPPLEMENTAL DATA (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CONSOLIDATED STATEMENTS OF CASH FLOWS NON-CASH SUPPLEMENTAL DATA | ||
Capital leases for the acquisition of promotional vehicles | $0.20 | $0.20 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2015 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | |
1.BASIS OF PRESENTATION | |
Reference is made to the Notes to Consolidated Financial Statements, in Monster Beverage Corporation and Subsidiaries (the “Company” or, in reference to the Company’s former name, “Hansen Natural Corporation”) Annual Report on Form 10-K for the year ended December 31, 2014 (“Form 10-K”) for a summary of significant accounting policies utilized by the Company and its consolidated subsidiaries and other disclosures, which should be read in conjunction with this Quarterly Report on Form 10-Q (“Form 10-Q”). | |
The Company’s condensed consolidated financial statements included in this Form 10-Q have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and Securities and Exchange Commission (“SEC”) rules and regulations applicable to interim financial reporting. They do not include all the information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP. The information set forth in these interim condensed consolidated financial statements for the three-months ended March 31, 2015 and 2014 is unaudited and reflects all adjustments, which include only normal recurring adjustments and which in the opinion of management are necessary to make the interim condensed consolidated financial statements not misleading. Results of operations for periods covered by this report may not necessarily be indicative of results of operations for the full year. | |
The preparation of financial statements in conformity with GAAP necessarily requires management to make estimates and assumptions that affect the reported amount 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 periods. Actual results could differ from these estimates. | |
ACQUISITIONS_AND_DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 3 Months Ended | |
Mar. 31, 2015 | ||
ACQUISITIONS AND DIVESTITURES | ||
ACQUISITIONS AND DIVESTITURES | ||
2.ACQUISITIONS AND DIVESTITURES | ||
On August 14, 2014, the Company and The Coca-Cola Company (“TCCC”) entered into definitive agreements contemplating a long-term strategic relationship in the global energy drink category (the “TCCC Transaction”). In the TCCC Transaction, the Company, New Laser Corporation, a wholly owned subsidiary of the Company (“NewCo”), New Laser Merger Corp., a wholly owned subsidiary of NewCo (“Merger Sub”), TCCC and European Refreshments, an indirect wholly owned subsidiary of TCCC, entered into a transaction agreement, and the Company, TCCC and NewCo entered into an asset transfer agreement. Pursuant to the agreements, the Company will reorganize into a new holding company by merging Merger Sub into the Company, with the Company surviving as a wholly owned subsidiary of NewCo. In the merger, each outstanding share of the Company’s common stock will be converted into one share of NewCo’s common stock. | ||
Subject to the terms and conditions of the agreements, upon the closing of the TCCC Transaction, (1) TCCC will acquire newly issued NewCo common shares representing approximately 16.7% of the total number of outstanding NewCo common shares (giving effect to such issuance) and TCCC will be entitled to appoint two individuals (reduced to one in 36 months or if TCCC’s equity interest in NewCo exceeds 20%) to NewCo’s Board of Directors for a specified period, (2) TCCC will transfer all rights in and to its global energy drink business (including the NOS®, Full Throttle®, Burn®, Mother®, Play® and Power Play®, and Relentless® brands) to NewCo, and the Company will transfer all of its rights in and to its non-energy drink business (including the Hansen’s® Natural Soda, Peace Tea®, Hubert’s® Lemonade and Hansen’s® Juice Product brands) to TCCC, (3) the Company and TCCC will amend the distribution coordination agreements currently existing between them to govern the transition of third parties’ rights to distribute the Company’s energy products in most territories in the U.S. to members of TCCC’s distribution network, which consists of owned or controlled bottlers/distributors and independent bottling/distribution partners, and (4) TCCC or one of its subsidiaries will make a net cash payment to the Company of $2.15 billion, of which up to $625.0 million of which will be held in escrow (the “Escrow Agreement”), subject to release upon achievement of milestones relating to the transfer of distribution rights to TCCC’s distribution network. | ||
Under the terms of the Escrow Agreement and the transition payment agreement expected to be entered into in connection therewith, if the distribution rights in the U.S. that are transitioned to TCCC’s distribution network represent case sales in excess of the following percentages of a target case sale amount agreed to by the parties, amounts in the escrow fund in excess of the applicable amounts below will be released to the Company: | ||
Percentage Transitioned | Escrow Release | |
40% | Amounts in excess of $375 million | |
50% | Amounts in excess of $312.5 million | |
60% | Amounts in excess of $250 million | |
70% | Amounts in excess of $187.5 million | |
80% | Amounts in excess of $125 million | |
90% | Amounts in excess of $62.5 million | |
95% | All remaining amounts | |
On the one-year anniversary of the closing of the TCCC Transaction, the then-remaining escrow amount, less an amount sufficient to cover any unresolved claims, will be released to TCCC. Any severance or other release amount described above that becomes payable following the one-year anniversary will be paid directly from TCCC to the Company. | ||
TCCC is contractually obligated to authorize payment to the Company of the funds in escrow upon achievement of the milestones referred to above. As of April 6, 2015, distribution rights in the U.S. representing approximately 84% of the target case sales have been transitioned to TCCC’s distribution network. In addition, the Company has sent notices of termination representing an additional 5% of the affected third-party distributors, and the associated distribution rights for those territories will be transitioned to TCCC’s distribution network effective as of May 11, 2015. As a result, it is anticipated that $125 million will be held in escrow at the closing, with the remaining $500 million to be paid to the Company at closing. The Company expects to commence steps to transition sufficient additional distribution rights following the closing of the TCCC Transaction, which will, in due course, result in the release of all remaining amounts held in escrow. Therefore, the Company believes that achievement of the milestones is probable. | ||
The closing of the TCCC Transaction is subject to customary closing conditions and is now expected to close in the second quarter of 2015. | ||
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2015 | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
3.RECENT ACCOUNTING PRONOUNCEMENTS | |
In September 2014, the Company elected to early adopt FASB ASU No. 2014-08, “Presentation of Financial Statements and Property, Plant, and Equipment - Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”. ASU 2014-08 provides new guidance related to the definition of a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. The adoption of ASU 2014-08 did not have a material impact on the Company’s financial position, results of operations or liquidity. | |
In June 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-12, “Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force)”. ASU 2014-12 clarifies that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718 as it relates to awards with performance conditions that affect vesting to account for such awards. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. ASU 2014-12 is effective for annual periods, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted. ASU 2014-12 may be applied either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The adoption of ASU 2014-12 is not expected to have a material impact on the Company’s financial position, results of operations or liquidity. | |
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”, which supersedes previous revenue recognition guidance. ASU 2014-09 requires that a company recognize revenue at an amount that reflects the consideration to which the company expects to be entitled in exchange for transferring goods or services to a customer. In applying the new guidance, a company will (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the contract’s performance obligations; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 is effective for reporting periods beginning after December 15, 2016 and can be adopted using either a full retrospective or modified approach. The Company is currently evaluating the impact of ASU 2014-09 on its financial position, results of operations and liquidity. | |
INVESTMENTS
INVESTMENTS | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
INVESTMENTS | ||||||||||||||||||||
INVESTMENTS | ||||||||||||||||||||
4.INVESTMENTS | ||||||||||||||||||||
The following table summarizes the Company’s investments at: | ||||||||||||||||||||
March 31, 2015 | 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: | ||||||||||||||||||||
Commercial paper | $ | 15,991 | $ | - | $ | 1 | $ | 15,990 | $ | - | $ | - | ||||||||
Municipal securities | 622,082 | 48 | - | 622,130 | - | - | ||||||||||||||
U.S. Government Agencies | 1,401 | - | - | 1,401 | - | - | ||||||||||||||
Long-term: | ||||||||||||||||||||
Municipal securities | 33,662 | 8 | - | 33,670 | - | - | ||||||||||||||
U.S. Government Agencies | 7,578 | - | 7 | 7,571 | - | - | ||||||||||||||
Available-for-sale | ||||||||||||||||||||
Variable rate demand notes | 3,900 | - | - | 3,900 | - | - | ||||||||||||||
Total | $ | 684,614 | $ | 56 | $ | 8 | 684,662 | $ | - | $ | - | |||||||||
Trading | ||||||||||||||||||||
Short-term: | ||||||||||||||||||||
Auction rate securities | 3,910 | |||||||||||||||||||
Long-term: | ||||||||||||||||||||
Auction rate securities | - | |||||||||||||||||||
Total | $ | 688,572 | ||||||||||||||||||
December 31, 2014 | 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: | ||||||||||||||||||||
Commercial paper | $ | 19,482 | $ | - | $ | 2 | $ | 19,480 | $ | - | $ | - | ||||||||
Municipal securities | 744,542 | 105 | - | 744,647 | - | - | ||||||||||||||
U.S. Government Agencies | 9,199 | - | 1 | 9,198 | - | - | ||||||||||||||
Long-term: | ||||||||||||||||||||
Municipal securities | 42,940 | 10 | - | 42,950 | - | - | ||||||||||||||
Available-for-sale | ||||||||||||||||||||
Variable rate demand notes | 4,001 | - | - | 4,001 | - | - | ||||||||||||||
Total | $ | 820,164 | $ | 115 | $ | 3 | 820,276 | $ | - | $ | - | |||||||||
Trading | ||||||||||||||||||||
Short-term: | ||||||||||||||||||||
Auction rate securities | 3,910 | |||||||||||||||||||
Long-term: | ||||||||||||||||||||
Auction rate securities | - | |||||||||||||||||||
Total | $ | 824,186 | ||||||||||||||||||
During the three-months ended March 31, 2015 and 2014, realized gains or losses recognized on the sale of investments were not significant. During the three-months ended March 31, 2015 and 2014, the net gains recognized on the Company’s trading securities was not significant. | ||||||||||||||||||||
The Company’s investments at March 31, 2015 and December 31, 2014 in commercial paper, municipal securities, U.S. government agency securities and/or variable rate demand notes (“VRDNs”) carried investment grade credit ratings. VRDNs are floating rate municipal bonds with embedded put options that allow the bondholder to sell the security at par plus accrued interest. All of the put options are secured by a pledged liquidity source. While they are classified as marketable investment securities, the put option allows the VRDNs to be liquidated at par on a same day, or more generally on a seven day, settlement basis. All of the Company’s investments at March 31, 2015 and December 31, 2014 in municipal, educational or other public body securities with an auction reset feature (“auction rate securities”) also carried investment grade credit ratings. | ||||||||||||||||||||
The following table summarizes the underlying contractual maturities of the Company’s investments at: | ||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||
Less than 1 year: | ||||||||||||||||||||
Commercial paper | $ | 15,991 | $ | 15,990 | $ | 19,482 | $ | 19,480 | ||||||||||||
Municipal securities | 622,082 | 622,130 | 744,542 | 744,647 | ||||||||||||||||
U.S. government agency securities | 1,401 | 1,401 | 9,199 | 9,198 | ||||||||||||||||
Due 1 - 10 years: | ||||||||||||||||||||
Municipal securities | 33,662 | 33,670 | 42,940 | 42,950 | ||||||||||||||||
U.S. government agency securities | 7,578 | 7,571 | ||||||||||||||||||
Due 11 - 20 years: | ||||||||||||||||||||
Auction rate securities | 3,910 | 3,910 | 3,910 | 3,910 | ||||||||||||||||
Due 21 - 30 years: | ||||||||||||||||||||
Variable rate demand notes | 3,900 | 3,900 | 4,001 | 4,001 | ||||||||||||||||
Total | $ | 688,524 | $ | 688,572 | $ | 824,074 | $ | 824,186 | ||||||||||||
FAIR_VALUE_OF_CERTAIN_FINANCIA
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||||||||||||||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||||||||||||||
5.FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||||||||||||||
Accounting Standards Codification (“ASC”) 820 provides a framework for measuring fair value and requires disclosures regarding fair value measurements. ASC 820 defines fair value as the price that would be received on the sale of 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 and liabilities that are recorded at fair value on a recurring basis, segregated among the appropriate levels within the fair value hierarchy at: | ||||||||||||||
March 31, 2015 | Level 1 | Level 2 | Level 3 | Total | ||||||||||
Cash | $ | 162,105 | $ | - | $ | - | $ | 162,105 | ||||||
Money market funds | 197,887 | - | - | 197,887 | ||||||||||
Commercial paper | - | 15,991 | - | 15,991 | ||||||||||
Municipal securities | - | 658,539 | - | 658,539 | ||||||||||
U.S. government agency securities | - | 8,979 | - | 8,979 | ||||||||||
Variable rate demand notes | - | 3,900 | - | 3,900 | ||||||||||
Auction rate securities | - | - | 3,910 | 3,910 | ||||||||||
Put option related to auction rate securities | - | - | 250 | 250 | ||||||||||
Foreign currency derivatives | - | 216 | - | 216 | ||||||||||
Total | $ | 359,992 | $ | 687,625 | $ | 4,160 | $ | 1,051,777 | ||||||
Amounts included in: | ||||||||||||||
Cash and cash equivalents | $ | 359,992 | $ | 2,795 | $ | - | $ | 362,787 | ||||||
Short-term investments | - | 643,374 | 3,910 | 647,284 | ||||||||||
Accounts receivable, net | - | 393 | - | 393 | ||||||||||
Investments | - | 41,240 | - | 41,240 | ||||||||||
Prepaid expenses and other current assets | - | - | 250 | 250 | ||||||||||
Accrued liabilities | - | -177 | - | -177 | ||||||||||
Total | $ | 359,992 | $ | 687,625 | $ | 4,160 | $ | 1,051,777 | ||||||
December 31, 2014 | Level 1 | Level 2 | Level 3 | Total | ||||||||||
Cash | $ | 196,090 | $ | - | $ | - | $ | 196,090 | ||||||
Money market funds | 106,928 | - | - | 106,928 | ||||||||||
Commercial paper | - | 19,482 | - | 19,482 | ||||||||||
Municipal securities | - | 854,787 | - | 854,787 | ||||||||||
U.S. government agency securities | - | 9,199 | - | 9,199 | ||||||||||
Variable rate demand notes | - | 4,001 | - | 4,001 | ||||||||||
Auction rate securities | - | - | 3,910 | 3,910 | ||||||||||
Put option related to auction rate securities | - | - | 250 | 250 | ||||||||||
Foreign currency derivatives | - | -252 | - | -252 | ||||||||||
Total | $ | 303,018 | $ | 887,217 | $ | 4,160 | $ | 1,194,395 | ||||||
Amounts included in: | ||||||||||||||
Cash and cash equivalents | $ | 303,018 | $ | 67,305 | $ | - | $ | 370,323 | ||||||
Short-term investments | - | 777,224 | 3,910 | 781,134 | ||||||||||
Accounts receivable, net | - | 83 | - | 83 | ||||||||||
Investments | - | 42,940 | - | 42,940 | ||||||||||
Prepaid expenses and other current assets | - | - | 250 | 250 | ||||||||||
Accrued liabilities | - | -335 | - | -335 | ||||||||||
Total | $ | 303,018 | $ | 887,217 | $ | 4,160 | $ | 1,194,395 | ||||||
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 commercial paper, municipal securities, U.S. government agency securities and VRDNs, 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. The Company’s valuation of its Level 2 foreign exchange contracts is based on quoted market prices of the same or similar instruments, adjusted for counterparty risk. There were no transfers between Level 1 and Level 2 measurements during the three-months ended March 31, 2015 or the year ended December 31, 2014, 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 three-months ended March 31, 2015. | ||||||||||||||
At March 31, 2015, the Company held auction rate securities with a face value of $4.2 million (amortized cost basis of $3.9 million). A Level 3 valuation was performed on the Company’s auction rate securities as of March 31, 2015 resulting in a fair value of $3.9 million for the Company’s trading auction rate securities (after a $0.3 million impairment), which are included in short-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 three-months ended March 31, 2015, no 2011 ARS Securities were redeemed ($13.1 million, $2.3 million, $1.3 million and $3.7 million of par value 2011 ARS Securities were redeemed at par during the years ended December 31, 2014, 2013, 2012 and 2011, respectively). Subsequent to March 31, 2015, $0.7 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 March 31, 2015, the Company recorded $0.3 million as the fair market value of the 2011 Put Option, included in prepaid expenses and other current assets. | ||||||||||||||
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): | ||||||||||||||
Three-Months Ended | Three-Months Ended | |||||||||||||
March 31, 2015 | March 31, 2014 | |||||||||||||
Auction | Put Options | Auction | Put Options | |||||||||||
Rate | Rate | |||||||||||||
Securities | Securities | |||||||||||||
Opening Balance | $ | 3,910 | $ | 250 | $ | 16,184 | $ | 1,092 | ||||||
Transfers into Level 3 | - | - | - | - | ||||||||||
Transfers out of Level 3 | - | - | - | - | ||||||||||
Total gains (losses) for the period: | ||||||||||||||
Included in earnings | - | - | 67 | -68 | ||||||||||
Included in other comprehensive income | - | - | - | - | ||||||||||
Settlements | - | - | -1,725 | - | ||||||||||
Closing Balance | $ | 3,910 | $ | 250 | $ | 14,526 | $ | 1,024 | ||||||
DERIVATIVE_INSTRUMENTS_AND_HED
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||||
6.DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||||
The Company is exposed to foreign currency exchange rate risks related primarily to its foreign business operations. During the three-months ended March 31, 2015 and the year ended December 31, 2014, the Company entered into forward currency exchange contracts with financial institutions to create an economic hedge to specifically manage a portion of the foreign exchange risk exposure associated with certain consolidated subsidiaries’ non-functional currency denominated assets and liabilities. All foreign currency exchange contracts of the Company that were outstanding as of March 31, 2015 have terms of one month or less. The Company does not enter into forward currency exchange contracts for speculation or trading purposes. | ||||||||||
The Company has not designated its foreign currency exchange contracts as hedge transactions under ASC 815. Therefore, gains and losses on the Company’s foreign currency exchange contracts are recognized in interest and other income, net, in the condensed consolidated statements of income, and are largely offset by the changes in the fair value of the underlying economically hedged item. | ||||||||||
The notional amount and fair value of all outstanding foreign currency derivative instruments in the condensed consolidated balance sheets consist of the following at: | ||||||||||
March 31, 2015 | ||||||||||
Derivatives not designated as | Notional | Fair | Balance Sheet Location | |||||||
hedging instruments under | Amount | Value | ||||||||
FASB ASC 815-20 | ||||||||||
Assets: | ||||||||||
Foreign currency exchange contracts: | ||||||||||
Receive USD/pay AUD | $ | 8,069 | $ | 166 | Accounts receivable, net | |||||
Receive USD/pay JPY | 9,367 | 60 | Accounts receivable, net | |||||||
Receive USD/pay ZAR | 13,161 | 101 | Accounts receivable, net | |||||||
Receive USD/pay MXN | 6,349 | 30 | Accounts receivable, net | |||||||
Receive USD/pay CLP | 2,828 | - | Accounts receivable, net | |||||||
Receive USD/pay COP | 2,628 | 36 | Accounts receivable, net | |||||||
Liabilities: | ||||||||||
Foreign currency exchange contracts: | ||||||||||
Receive EUR/pay USD | $ | 11,252 | $ | -177 | Accrued liabilities | |||||
December 31, 2014 | ||||||||||
Derivatives not designated as | Notional | Fair | Balance Sheet Location | |||||||
hedging instruments under | Amount | Value | ||||||||
FASB ASC 815-20 | ||||||||||
Assets: | ||||||||||
Foreign currency exchange contracts: | ||||||||||
Receive CAD/pay USD | $ | 19,940 | $ | 83 | Accounts receivable, net | |||||
Liabilities: | ||||||||||
Foreign currency exchange contracts: | ||||||||||
Receive EUR/pay USD | $ | 13,265 | $ | -75 | Accrued liabilities | |||||
Receive USD/pay AUD | 8,343 | -48 | Accrued liabilities | |||||||
Receive USD/pay JPY | 10,620 | -84 | Accrued liabilities | |||||||
Receive USD/pay ZAR | 14,760 | -105 | Accrued liabilities | |||||||
Receive USD/pay MXN | 4,961 | -11 | Accrued liabilities | |||||||
Receive USD/pay CLP | 2,685 | -10 | Accrued liabilities | |||||||
Receive USD/pay COP | 2,845 | -2 | Accrued liabilities | |||||||
The net losses on derivative instruments in the condensed consolidated statements of income were as follows: | ||||||||||
Amount of loss | ||||||||||
recognized in income on | ||||||||||
derivatives | ||||||||||
Three-months ended | ||||||||||
Derivatives not designated as | Location of loss | March 31, | March 31, | |||||||
hedging instruments under | recognized in income on | 2015 | 2014 | |||||||
FASB ASC 815-20 | derivatives | |||||||||
Foreign currency exchange contracts | Interest and other income, net | $ | -1,856 | $ | -359 | |||||
INVENTORIES
INVENTORIES | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
INVENTORIES | ||||||||
INVENTORIES | ||||||||
7.INVENTORIES | ||||||||
Inventories consist of the following at: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Raw materials | $ | 65,311 | $ | 59,938 | ||||
Finished goods | 132,603 | 114,635 | ||||||
$ | 197,914 | $ | 174,573 | |||||
PROPERTY_AND_EQUIPMENT_Net
PROPERTY AND EQUIPMENT, Net | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
PROPERTY AND EQUIPMENT, Net | |||||||
PROPERTY AND EQUIPMENT, Net | |||||||
8.PROPERTY AND EQUIPMENT, Net | |||||||
Property and equipment consist of the following at: | |||||||
March 31, | December 31, | ||||||
2015 | 2014 | ||||||
Land | $ | 6,792 | $ | 6,792 | |||
Leasehold improvements | 2,723 | 2,796 | |||||
Furniture and fixtures | 3,359 | 3,371 | |||||
Office and computer equipment | 10,229 | 10,072 | |||||
Computer software | 1,774 | 1,317 | |||||
Equipment | 86,887 | 84,263 | |||||
Buildings | 37,746 | 37,311 | |||||
Vehicles | 27,235 | 27,813 | |||||
176,745 | 173,735 | ||||||
Less: accumulated depreciation and amortization | -88,449 | -83,579 | |||||
$ | 88,296 | $ | 90,156 | ||||
INTANGIBLES_Net
INTANGIBLES, Net | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
INTANGIBLES, Net | |||||||
INTANGIBLES, Net | |||||||
9.INTANGIBLES, Net | |||||||
Intangibles consist of the following at: | |||||||
March 31, | December 31, | ||||||
2015 | 2014 | ||||||
Amortizing intangibles | $ | 233 | $ | 233 | |||
Accumulated amortization | -50 | -50 | |||||
183 | 183 | ||||||
Non-amortizing intangibles | 52,117 | 50,565 | |||||
$ | 52,300 | $ | 50,748 | ||||
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 17 years). Total amortization expense recorded was $0.001 million and $0.1 million for the three-months ended March 31, 2015 and 2014, respectively. At March 31, 2015, $18.0 million of non-amortizing intangibles and $0.1 million of amortizing intangibles (net of accumulated amortization) are subject to divestiture under the TCCC Transaction and are included in intangibles held-for-sale in the accompanying consolidated balance sheet at March 31, 2015. | |||||||
DISTRIBUTION_AGREEMENTS
DISTRIBUTION AGREEMENTS | 3 Months Ended |
Mar. 31, 2015 | |
DISTRIBUTION AGREEMENTS | |
DISTRIBUTION AGREEMENTS | |
10.DISTRIBUTION AGREEMENTS | |
As part of the TCCC Transaction, the amended distribution coordination agreements to be entered into with TCCC provide for the transition of third parties’ rights to distribute the Company’s products in most territories in the U.S. and Canada to members of TCCC’s distribution network, which consists of owned or controlled bottlers/distributors and independent bottling/distribution partners. In February 2015, in accordance with its existing agreements with certain affected third-party distributors, the Company sent notices of termination to the applicable affected third-party distributors in the U.S., providing for the termination of their respective distribution agreements, to be effective at various dates beginning in March 2015. | |
In accordance with ASC No. 420 “Exit or Disposal Cost Obligations”, the Company expenses distributor termination costs in the period in which the written notification of termination occurs. As a result, the Company incurred termination costs of $206.0 million for the three-months ended March 31, 2015. Such termination costs have been expensed in full and are included in operating expenses for the three-months ended March 31, 2015. | |
In the normal course of business, amounts received pursuant to new and/or amended distribution agreements entered into with certain distributors, relating to the costs associated with terminating agreements with the Company’s prior distributors, are accounted for as deferred revenue and are recognized as revenue ratably over the anticipated life of the respective distribution agreement, generally 20 years. Revenue recognized was $43.3 million and $3.7 million for the three-months ended March 31, 2015 and 2014, respectively. Included in the $43.3 million of revenue recognized for the three-months ended March 31, 2015 was $39.8 million related to the accelerated amortization of the deferred revenue balances associated with certain of the Company’s prior distributors who were sent notices of termination during the first quarter of 2015, as described above. | |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2015 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | |
11.COMMITMENTS AND CONTINGENCIES | |
The Company had purchase commitments aggregating approximately $22.5 million at March 31, 2015, which represented 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 had contractual obligations aggregating approximately $93.3 million at March 31, 2015, which related primarily to sponsorships and other marketing activities. | |
The Company had operating lease commitments aggregating approximately $11.5 million at March 31, 2015, which related primarily to warehouse and office space. | |
In April 2015, the Company entered into an agreement, subject to the attainment of requisite entitlements, to acquire approximately 56 acres of vacant land located in Jurupa Valley, CA for an estimated purchase price of $38.1 million. The Company plans to construct a new warehouse on such land, which will replace its existing leased warehouse space located in Corona, CA. The Company has deposited $0.5 million into escrow with the balance due at closing. There is no assurance the Company will be successful in obtaining the requisite entitlements. | |
Legal Proceedings | |
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 and trial has been scheduled for August 21, 2015. 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. | |
State Attorney General Inquiry – In July 2012, the Company received a subpoena from the Attorney General for the State of New York in connection with its investigation concerning the Company’s advertising, marketing, promotion, ingredients, usage and sale of its Monster Energy® brand of energy drinks. Production of documents pursuant to that subpoena was completed in approximately May 2014. | |
On August 6, 2014, the Attorney General for the State of New York issued a second subpoena seeking additional documents and the deposition of a Company employee. On September 8, 2014, the Company moved to quash the second subpoena in the Supreme Court, New York County. The motion was fully briefed and was argued on March 17, 2015. No decision has been rendered. 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 products 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.” | |
(i) The Company Action – 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 (the “Company Action”) 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 sought 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 Action, 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, the City Attorney filed a renewed motion to dismiss the Company Action and on December 16, 2013, the Central District Court granted the City Attorney’s renewed motion, dismissing the Company Action. The Company filed a Notice of Appeal to the Ninth Circuit on December 18, 2013. The appeal is fully briefed but has not yet been set for argument. | |
(ii) The San Francisco Action – 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, in 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 sought 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. | |
After a motion to strike filed by the Company was granted in part, on March 20, 2014, the City Attorney filed an amended complaint, adding allegations supporting the theory for relief as to which the Court had granted the motion to strike. On April 18, 2014, the Company filed a renewed motion to strike, as well as a motion asking the Court to bifurcate and/or stay claims relating to the safety of Monster Energy® drinks, pending resolution of the ongoing FDA investigation of the safety and labeling of food products to which caffeine is added. On May 22, 2014, the Court denied the Company’s motion to strike and motion to bifurcate and/or stay claims relating to safety. | |
On September 5, 2014, the City Attorney filed a second amended complaint, adding Monster Energy Company as a defendant. The Company and Monster Energy Company filed answers to the second amended complaint on October 4, 2014 and November 10, 2014, respectively. Discovery is ongoing. | |
The Court has set the case for a two-week bench trial beginning on February 8, 2016. | |
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. | |
The actions or investigations described above have not progressed to a point where a reasonably possible range of losses associated with their ultimate outcome can be estimated at this time. If the final resolution of any such litigation or proceedings is unfavorable, the Company’s financial condition, operating results and cash flows could be materially affected. | |
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 ultimate 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. | |
The Company evaluates, on a quarterly basis, developments in legal proceedings and other matters that could cause an increase or decrease in the amount of the liability that is accrued, if any, or in the amount of any related insurance reimbursements recorded. As of March 31, 2015, the Company’s consolidated balance sheets include accrued loss contingencies of approximately $5.5 million, and receivables for insurance reimbursements of approximately $1.8 million. | |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended | |||
Mar. 31, 2015 | ||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ||||
12.ACCUMULATED OTHER COMPREHENSIVE LOSS | ||||
Changes in accumulated other comprehensive loss by component, after tax, for the three-months ended March 31, 2015 are as follows: | ||||
Currency | ||||
Translation | ||||
Losses | ||||
Balance at December 31, 2014 | $ | 11,453 | ||
Other comprehensive loss before reclassifications | 9,980 | |||
Amounts reclassified from accumulated other comprehensive loss | - | |||
Net current-period other comprehensive loss | 9,980 | |||
Balance at March 31, 2015 | $ | 21,433 | ||
TREASURY_STOCK_PURCHASE
TREASURY STOCK PURCHASE | 3 Months Ended |
Mar. 31, 2015 | |
TREASURY STOCK PURCHASE | |
TREASURY STOCK PURCHASE | |
13.TREASURY STOCK PURCHASE | |
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 three-months ended March 31, 2015, no shares of common stock were purchased under the April 2013 Repurchase Plan. | |
During the three-months ended March 31, 2015, 2.2 million shares were purchased from employees in lieu of cash payments for options exercised or withholding taxes due for a total amount of $251.4 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 April 2013 Repurchase Plan. | |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
STOCK-BASED COMPENSATION | ||||||||||||
STOCK-BASED COMPENSATION | ||||||||||||
14.STOCK-BASED COMPENSATION | ||||||||||||
The Company has two stock-based compensation plans under which shares were available for grant at March 31, 2015: 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 Company recorded $6.4 million and $7.0 million of compensation expense relating to outstanding options, restricted stock awards, stock appreciation rights and restricted stock units during the three-months ended March 31, 2015 and 2014, 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 three-months ended March 31, 2015 and 2014 was $184.7 million and $2.6 million, respectively. | ||||||||||||
Stock Options | ||||||||||||
Under the Company’s stock-based compensation plans, all stock options granted as of March 31, 2015 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: | ||||||||||||
Three-Months Ended March 31, | ||||||||||||
2015 | 2014 | |||||||||||
Dividend yield | 0.0% | 0.0% | ||||||||||
Expected volatility | 37.1% | 43.1% | ||||||||||
Risk-free interest rate | 1.6% | 1.6% | ||||||||||
Expected term | 5.8 years | 5.9 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: | ||||||||||||
Options | Number of | Weighted- | Weighted- | Aggregate | ||||||||
Shares (In | Average | Average | Intrinsic Value | |||||||||
thousands) | Exercise | Remaining | ||||||||||
Price Per | Contractual | |||||||||||
Share | Term (In | |||||||||||
years) | ||||||||||||
Outstanding at January 1, 2015 | 13,066 | $ | 19.73 | 3.1 | $ | 1,158,412 | ||||||
Granted 01/01/15 - 03/31/15 | 903 | $ | 133.68 | |||||||||
Exercised | -4,589 | $ | 4.17 | |||||||||
Cancelled or forfeited | -16 | $ | 40.61 | |||||||||
Outstanding at March 31, 2015 | 9,364 | $ | 38.30 | 4.8 | $ | 937,246 | ||||||
Vested and expected to vest in the future at March 31, 2015 | 8,869 | $ | 35.23 | 4.6 | $ | 915,012 | ||||||
Exercisable at March 31, 2015 | 6,284 | $ | 17.00 | 2.9 | $ | 762,806 | ||||||
The weighted-average grant-date fair value of options granted during the three-months ended March 31, 2015 and 2014 was $50.16 per share and $29.86 per share, respectively. The total intrinsic value of options exercised during the three-months ended March 31, 2015 and 2014 was $515.7 million and $11.4 million, respectively. | ||||||||||||
Cash received from option exercises under all plans for the three-months ended March 31, 2015 and 2014 was approximately $19.0 million and $5.7 million, respectively. | ||||||||||||
At March 31, 2015, there was $88.2 million of total unrecognized compensation expense related to non-vested 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 3.2 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. | ||||||||||||
The following table summarizes the Company’s activities with respect to non-vested restricted stock awards and non-vested restricted stock units as follows: | ||||||||||||
Number of | Weighted | |||||||||||
Shares (in | Average | |||||||||||
thousands) | Grant-Date | |||||||||||
Fair Value | ||||||||||||
Non-vested at January 1, 2015 | 149 | $ | 61.09 | |||||||||
Granted | 83 | $ | 135.48 | |||||||||
Vested | -16 | $ | 57.05 | |||||||||
Forfeited/cancelled | -2 | $ | 57.45 | |||||||||
Non-vested at March 31, 2015 | 214 | $ | 90.23 | |||||||||
The weighted-average grant-date fair value of restricted stock units and restricted stock awards granted during the three-months ended March 31, 2015 was $135.48 per share. No awards were granted during the three-months ended March 31, 2014. As of March 31, 2015, 0.2 million of restricted stock units and restricted stock awards are expected to vest over their respective terms. | ||||||||||||
At March 31, 2015, total unrecognized compensation expense relating to non-vested restricted stock awards and non-vested restricted stock units was $16.2 million, which is expected to be recognized over a weighted-average period of 2.4 years. | ||||||||||||
INCOME_TAXES
INCOME TAXES | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
INCOME TAXES | |||||
INCOME TAXES | |||||
15.INCOME TAXES | |||||
The following is a roll-forward of the Company’s total gross unrecognized tax benefits, not including interest and penalties, for the three-months ended March 31, 2015: | |||||
Gross Unrecognized Tax | |||||
Benefits | |||||
Balance at December 31, 2014 | $ | 935 | |||
Additions for tax positions related to the current year | - | ||||
Additions for tax positions related to the prior year | - | ||||
Decreases related to settlement with taxing authority | - | ||||
Balance at March 31, 2015 | $ | 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 March 31, 2015, 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, the resultant impact on the Company’s effective tax rate would not be significant. It is expected that the change in the amount of unrecognized tax benefits within the next 12 months will not be significant. | |||||
The Company is subject to U.S. federal income tax as well as to income tax in multiple state and foreign jurisdictions. | |||||
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 examination was completed in January 2015 with no material adjustments. The Company is also in various stages of examination with certain states and certain foreign jurisdictions. The 2012 and 2013 U.S. federal income tax returns are subject to IRS examination. State income tax returns are subject to examination for the 2010 through 2013 tax years. | |||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
EARNINGS PER SHARE | ||||||
EARNINGS PER SHARE | ||||||
16.EARNINGS PER SHARE | ||||||
A reconciliation of the weighted-average shares used in the basic and diluted earnings per common share computations is presented below: | ||||||
Three-Months Ended | ||||||
March 31, | ||||||
2015 | 2014 | |||||
Weighted-average shares outstanding: | ||||||
Basic | 169,871 | 166,913 | ||||
Dilutive securities | 3,907 | 6,828 | ||||
Diluted | 173,778 | 173,741 | ||||
For the three-months ended March 31, 2015 and 2014, options and awards outstanding totaling 0.4 million shares and 0.6 million shares, respectively, were excluded from the calculations as their effect would have been antidilutive. | ||||||
SEGMENT_INFORMATION
SEGMENT INFORMATION | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
SEGMENT INFORMATION | ||||||||||||||
SEGMENT INFORMATION | ||||||||||||||
17.SEGMENT INFORMATION | ||||||||||||||
The Company has two operating and 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 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. Following the consummation of the TCCC Transaction, the Company anticipates that it will have two operating and reporting segments: Finished Products, the principal products of which will likely include the Company’s Monster Energy® drink products that currently make up the majority of the DSD segment, and Concentrate, the principal products of which will likely include the various energy drink brands transferred to the Company from TCCC. | ||||||||||||||
The net revenues derived from the DSD and Warehouse segments and other financial information related thereto are as follows: | ||||||||||||||
Three-Months Ended March 31, 2015 | ||||||||||||||
DSD | Warehouse | Corporate and | Total | |||||||||||
Unallocated | ||||||||||||||
Net sales | $ | 605,811 | -1 | $ | 20,980 | $ | - | $ | 626,791 | -1 | ||||
Contribution margin* | 57,660 | -2 | -40 | - | 57,620 | -2 | ||||||||
Corporate and unallocated expenses | - | - | -49,991 | -49,991 | ||||||||||
Operating income | 7,629 | (1), (2) | ||||||||||||
Interest and other income, net | 42 | - | 1,191 | 1,233 | ||||||||||
Income before provision for income taxes | 8,862 | (1), (2) | ||||||||||||
Depreciation and amortization | -5,119 | -75 | -1,276 | -6,470 | ||||||||||
Three-Months Ended March 31, 2014 | ||||||||||||||
DSD | Warehouse | Corporate and | Total | |||||||||||
Unallocated | ||||||||||||||
Net sales | $ | 514,355 | -1 | $ | 21,774 | $ | - | $ | 536,129 | -1 | ||||
Contribution margin* | 186,468 | -2 | 296 | - | 186,764 | -2 | ||||||||
Corporate and unallocated expenses | - | - | -37,901 | -37,901 | ||||||||||
Operating income | 148,863 | (1), (2) | ||||||||||||
Other income (expense) | 26 | - | 128 | 154 | ||||||||||
Income before provision for income taxes | 149,017 | (1), (2) | ||||||||||||
Depreciation and amortization | -4,944 | -81 | -1,428 | -6,453 | ||||||||||
(1) Includes $43.3 million and $3.7 million for the three-months ended March 31, 2015 and 2014, respectively, related to the recognition of deferred revenue. Included in the $43.3 million recognition of deferred revenue for the three-months ended March 31, 2015, is $39.8 million related to the accelerated amortization of the deferred revenue balances associated with certain of the Company’s prior distributors who were sent notices of termination during the first quarter of 2015. | ||||||||||||||
(2) Includes $206.0 million and $0.01 million for the three-months ended March 31, 2015 and 2014, respectively, related to distributor termination costs. | ||||||||||||||
*Contribution margin is defined as gross profit less certain operating expenses deemed by management to be directly attributable to the respective reportable segment. Contribution margin is used by management as a key indicator of reportable segment profitability. | ||||||||||||||
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 $50.0 million for the three-months ended March 31, 2015 and included $28.5 million of payroll costs, of which $6.4 million was attributable to stock-based compensation expense (see Note 14, “Stock-Based Compensation”), $14.5 million of professional service expenses, including accounting and legal costs and $7.0 million of other operating expenses. Corporate and unallocated expenses were $37.9 million for the three-months ended March 31, 2014 and included $21.1 million of payroll costs, of which $7.0 million was attributable to stock-based compensation expense (see Note 14, “Stock-Based Compensation”), $10.1 million attributable to professional service expenses, including accounting and legal costs, and $6.7 million attributable to other operating expenses. | ||||||||||||||
Coca-Cola Refreshments USA Inc. (“CCR”), a customer of the DSD segment, accounted for approximately 35% and 31% of the Company’s net sales for the three-months ended March 31, 2015 and 2014, respectively. | ||||||||||||||
Net sales to customers outside the United States amounted to $113.0 million and $115.8 million for the three-months ended March 31, 2015 and 2014, respectively. | ||||||||||||||
The Company’s net sales by product line were as follows: | ||||||||||||||
Three-Months Ended | ||||||||||||||
March 31, | ||||||||||||||
Product Line | 2015 | 2014 | ||||||||||||
Energy drinks | $ | 552,729 | $ | 499,013 | ||||||||||
Non-carbonated (primarily juice based beverages and Peace Tea® iced teas) | 24,513 | 26,446 | ||||||||||||
Carbonated (primarily soda beverages) | 6,202 | 7,014 | ||||||||||||
Other | 43,347 | 3,656 | ||||||||||||
$ | 626,791 | $ | 536,129 | |||||||||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2015 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | |
18.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 three-months ended March 31, 2015 and 2014 were $0.9 million and $0.07 million, respectively. | |
ACQUISITIONS_AND_DIVESTITURES_
ACQUISITIONS AND DIVESTITURES (Tables) | 3 Months Ended | |
Mar. 31, 2015 | ||
ACQUISITIONS AND DIVESTITURES | ||
Summary of amounts in the escrow fund in excess of the applicable amounts | ||
Percentage Transitioned | Escrow Release | |
40% | Amounts in excess of $375 million | |
50% | Amounts in excess of $312.5 million | |
60% | Amounts in excess of $250 million | |
70% | Amounts in excess of $187.5 million | |
80% | Amounts in excess of $125 million | |
90% | Amounts in excess of $62.5 million | |
95% | All remaining amounts | |
INVESTMENTS_Tables
INVESTMENTS (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
INVESTMENTS | ||||||||||||||||||||
Summary of investments in held-to-maturity, available-for-sale and trading securities | ||||||||||||||||||||
March 31, 2015 | 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: | ||||||||||||||||||||
Commercial paper | $ | 15,991 | $ | - | $ | 1 | $ | 15,990 | $ | - | $ | - | ||||||||
Municipal securities | 622,082 | 48 | - | 622,130 | - | - | ||||||||||||||
U.S. Government Agencies | 1,401 | - | - | 1,401 | - | - | ||||||||||||||
Long-term: | ||||||||||||||||||||
Municipal securities | 33,662 | 8 | - | 33,670 | - | - | ||||||||||||||
U.S. Government Agencies | 7,578 | - | 7 | 7,571 | - | - | ||||||||||||||
Available-for-sale | ||||||||||||||||||||
Variable rate demand notes | 3,900 | - | - | 3,900 | - | - | ||||||||||||||
Total | $ | 684,614 | $ | 56 | $ | 8 | 684,662 | $ | - | $ | - | |||||||||
Trading | ||||||||||||||||||||
Short-term: | ||||||||||||||||||||
Auction rate securities | 3,910 | |||||||||||||||||||
Long-term: | ||||||||||||||||||||
Auction rate securities | - | |||||||||||||||||||
Total | $ | 688,572 | ||||||||||||||||||
December 31, 2014 | 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: | ||||||||||||||||||||
Commercial paper | $ | 19,482 | $ | - | $ | 2 | $ | 19,480 | $ | - | $ | - | ||||||||
Municipal securities | 744,542 | 105 | - | 744,647 | - | - | ||||||||||||||
U.S. Government Agencies | 9,199 | - | 1 | 9,198 | - | - | ||||||||||||||
Long-term: | ||||||||||||||||||||
Municipal securities | 42,940 | 10 | - | 42,950 | - | - | ||||||||||||||
Available-for-sale | ||||||||||||||||||||
Variable rate demand notes | 4,001 | - | - | 4,001 | - | - | ||||||||||||||
Total | $ | 820,164 | $ | 115 | $ | 3 | 820,276 | $ | - | $ | - | |||||||||
Trading | ||||||||||||||||||||
Short-term: | ||||||||||||||||||||
Auction rate securities | 3,910 | |||||||||||||||||||
Long-term: | ||||||||||||||||||||
Auction rate securities | - | |||||||||||||||||||
Total | $ | 824,186 | ||||||||||||||||||
Summarizes the underlying contractual maturities of the Company's investments | ||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||
Less than 1 year: | ||||||||||||||||||||
Commercial paper | $ | 15,991 | $ | 15,990 | $ | 19,482 | $ | 19,480 | ||||||||||||
Municipal securities | 622,082 | 622,130 | 744,542 | 744,647 | ||||||||||||||||
U.S. government agency securities | 1,401 | 1,401 | 9,199 | 9,198 | ||||||||||||||||
Due 1 - 10 years: | ||||||||||||||||||||
Municipal securities | 33,662 | 33,670 | 42,940 | 42,950 | ||||||||||||||||
U.S. government agency securities | 7,578 | 7,571 | ||||||||||||||||||
Due 11 - 20 years: | ||||||||||||||||||||
Auction rate securities | 3,910 | 3,910 | 3,910 | 3,910 | ||||||||||||||||
Due 21 - 30 years: | ||||||||||||||||||||
Variable rate demand notes | 3,900 | 3,900 | 4,001 | 4,001 | ||||||||||||||||
Total | $ | 688,524 | $ | 688,572 | $ | 824,074 | $ | 824,186 | ||||||||||||
FAIR_VALUE_OF_CERTAIN_FINANCIA1
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||||||||||||||
Schedule of financial assets recorded at fair value on a recurring basis | ||||||||||||||
March 31, 2015 | Level 1 | Level 2 | Level 3 | Total | ||||||||||
Cash | $ | 162,105 | $ | - | $ | - | $ | 162,105 | ||||||
Money market funds | 197,887 | - | - | 197,887 | ||||||||||
Commercial paper | - | 15,991 | - | 15,991 | ||||||||||
Municipal securities | - | 658,539 | - | 658,539 | ||||||||||
U.S. government agency securities | - | 8,979 | - | 8,979 | ||||||||||
Variable rate demand notes | - | 3,900 | - | 3,900 | ||||||||||
Auction rate securities | - | - | 3,910 | 3,910 | ||||||||||
Put option related to auction rate securities | - | - | 250 | 250 | ||||||||||
Foreign currency derivatives | - | 216 | - | 216 | ||||||||||
Total | $ | 359,992 | $ | 687,625 | $ | 4,160 | $ | 1,051,777 | ||||||
Amounts included in: | ||||||||||||||
Cash and cash equivalents | $ | 359,992 | $ | 2,795 | $ | - | $ | 362,787 | ||||||
Short-term investments | - | 643,374 | 3,910 | 647,284 | ||||||||||
Accounts receivable, net | - | 393 | - | 393 | ||||||||||
Investments | - | 41,240 | - | 41,240 | ||||||||||
Prepaid expenses and other current assets | - | - | 250 | 250 | ||||||||||
Accrued liabilities | - | -177 | - | -177 | ||||||||||
Total | $ | 359,992 | $ | 687,625 | $ | 4,160 | $ | 1,051,777 | ||||||
December 31, 2014 | Level 1 | Level 2 | Level 3 | Total | ||||||||||
Cash | $ | 196,090 | $ | - | $ | - | $ | 196,090 | ||||||
Money market funds | 106,928 | - | - | 106,928 | ||||||||||
Commercial paper | - | 19,482 | - | 19,482 | ||||||||||
Municipal securities | - | 854,787 | - | 854,787 | ||||||||||
U.S. government agency securities | - | 9,199 | - | 9,199 | ||||||||||
Variable rate demand notes | - | 4,001 | - | 4,001 | ||||||||||
Auction rate securities | - | - | 3,910 | 3,910 | ||||||||||
Put option related to auction rate securities | - | - | 250 | 250 | ||||||||||
Foreign currency derivatives | - | -252 | - | -252 | ||||||||||
Total | $ | 303,018 | $ | 887,217 | $ | 4,160 | $ | 1,194,395 | ||||||
Amounts included in: | ||||||||||||||
Cash and cash equivalents | $ | 303,018 | $ | 67,305 | $ | - | $ | 370,323 | ||||||
Short-term investments | - | 777,224 | 3,910 | 781,134 | ||||||||||
Accounts receivable, net | - | 83 | - | 83 | ||||||||||
Investments | - | 42,940 | - | 42,940 | ||||||||||
Prepaid expenses and other current assets | - | - | 250 | 250 | ||||||||||
Accrued liabilities | - | -335 | - | -335 | ||||||||||
Total | $ | 303,018 | $ | 887,217 | $ | 4,160 | $ | 1,194,395 | ||||||
Summary of changes in fair value of the Company's Level 3 financial assets | ||||||||||||||
Three-Months Ended | Three-Months Ended | |||||||||||||
March 31, 2015 | March 31, 2014 | |||||||||||||
Auction | Put Options | Auction | Put Options | |||||||||||
Rate | Rate | |||||||||||||
Securities | Securities | |||||||||||||
Opening Balance | $ | 3,910 | $ | 250 | $ | 16,184 | $ | 1,092 | ||||||
Transfers into Level 3 | - | - | - | - | ||||||||||
Transfers out of Level 3 | - | - | - | - | ||||||||||
Total gains (losses) for the period: | ||||||||||||||
Included in earnings | - | - | 67 | -68 | ||||||||||
Included in other comprehensive income | - | - | - | - | ||||||||||
Settlements | - | - | -1,725 | - | ||||||||||
Closing Balance | $ | 3,910 | $ | 250 | $ | 14,526 | $ | 1,024 | ||||||
DERIVATIVE_INSTRUMENTS_AND_HED1
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||||
Schedule of notional amount and fair value of all outstanding foreign currency derivative instruments in the condensed consolidated balance sheets | ||||||||||
March 31, 2015 | ||||||||||
Derivatives not designated as | Notional | Fair | Balance Sheet Location | |||||||
hedging instruments under | Amount | Value | ||||||||
FASB ASC 815-20 | ||||||||||
Assets: | ||||||||||
Foreign currency exchange contracts: | ||||||||||
Receive USD/pay AUD | $ | 8,069 | $ | 166 | Accounts receivable, net | |||||
Receive USD/pay JPY | 9,367 | 60 | Accounts receivable, net | |||||||
Receive USD/pay ZAR | 13,161 | 101 | Accounts receivable, net | |||||||
Receive USD/pay MXN | 6,349 | 30 | Accounts receivable, net | |||||||
Receive USD/pay CLP | 2,828 | - | Accounts receivable, net | |||||||
Receive USD/pay COP | 2,628 | 36 | Accounts receivable, net | |||||||
Liabilities: | ||||||||||
Foreign currency exchange contracts: | ||||||||||
Receive EUR/pay USD | $ | 11,252 | $ | -177 | Accrued liabilities | |||||
December 31, 2014 | ||||||||||
Derivatives not designated as | Notional | Fair | Balance Sheet Location | |||||||
hedging instruments under | Amount | Value | ||||||||
FASB ASC 815-20 | ||||||||||
Assets: | ||||||||||
Foreign currency exchange contracts: | ||||||||||
Receive CAD/pay USD | $ | 19,940 | $ | 83 | Accounts receivable, net | |||||
Liabilities: | ||||||||||
Foreign currency exchange contracts: | ||||||||||
Receive EUR/pay USD | $ | 13,265 | $ | -75 | Accrued liabilities | |||||
Receive USD/pay AUD | 8,343 | -48 | Accrued liabilities | |||||||
Receive USD/pay JPY | 10,620 | -84 | Accrued liabilities | |||||||
Receive USD/pay ZAR | 14,760 | -105 | Accrued liabilities | |||||||
Receive USD/pay MXN | 4,961 | -11 | Accrued liabilities | |||||||
Receive USD/pay CLP | 2,685 | -10 | Accrued liabilities | |||||||
Receive USD/pay COP | 2,845 | -2 | Accrued liabilities | |||||||
Schedule of net losses on derivative instruments in the condensed consolidated statements of income | ||||||||||
Amount of loss | ||||||||||
recognized in income on | ||||||||||
derivatives | ||||||||||
Three-months ended | ||||||||||
Derivatives not designated as | Location of loss | March 31, | March 31, | |||||||
hedging instruments under | recognized in income on | 2015 | 2014 | |||||||
FASB ASC 815-20 | derivatives | |||||||||
Foreign currency exchange contracts | Interest and other income, net | $ | -1,856 | $ | -359 | |||||
INVENTORIES_Tables
INVENTORIES (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
INVENTORIES | ||||||||
Schedule of inventories | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Raw materials | $ | 65,311 | $ | 59,938 | ||||
Finished goods | 132,603 | 114,635 | ||||||
$ | 197,914 | $ | 174,573 | |||||
PROPERTY_AND_EQUIPMENT_Net_Tab
PROPERTY AND EQUIPMENT, Net (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
PROPERTY AND EQUIPMENT, Net | |||||||
Schedule of property and equipment | |||||||
March 31, | December 31, | ||||||
2015 | 2014 | ||||||
Land | $ | 6,792 | $ | 6,792 | |||
Leasehold improvements | 2,723 | 2,796 | |||||
Furniture and fixtures | 3,359 | 3,371 | |||||
Office and computer equipment | 10,229 | 10,072 | |||||
Computer software | 1,774 | 1,317 | |||||
Equipment | 86,887 | 84,263 | |||||
Buildings | 37,746 | 37,311 | |||||
Vehicles | 27,235 | 27,813 | |||||
176,745 | 173,735 | ||||||
Less: accumulated depreciation and amortization | -88,449 | -83,579 | |||||
$ | 88,296 | $ | 90,156 | ||||
INTANGIBLES_Net_Tables
INTANGIBLES, Net (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
INTANGIBLES, Net | |||||||
Schedule of intangibles | |||||||
March 31, | December 31, | ||||||
2015 | 2014 | ||||||
Amortizing intangibles | $ | 233 | $ | 233 | |||
Accumulated amortization | -50 | -50 | |||||
183 | 183 | ||||||
Non-amortizing intangibles | 52,117 | 50,565 | |||||
$ | 52,300 | $ | 50,748 | ||||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ||||
Changes in accumulated other comprehensive loss by component, after tax | ||||
Currency | ||||
Translation | ||||
Losses | ||||
Balance at December 31, 2014 | $ | 11,453 | ||
Other comprehensive loss before reclassifications | 9,980 | |||
Amounts reclassified from accumulated other comprehensive loss | - | |||
Net current-period other comprehensive loss | 9,980 | |||
Balance at March 31, 2015 | $ | 21,433 | ||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
STOCK-BASED COMPENSATION | ||||||||||||
Schedule of weighted-average assumptions used to estimate the fair value of options granted | ||||||||||||
Three-Months Ended March 31, | ||||||||||||
2015 | 2014 | |||||||||||
Dividend yield | 0.0% | 0.0% | ||||||||||
Expected volatility | 37.1% | 43.1% | ||||||||||
Risk-free interest rate | 1.6% | 1.6% | ||||||||||
Expected term | 5.8 years | 5.9 years | ||||||||||
Summary of Company's activities with respect to its stock option plans | ||||||||||||
Options | Number of | Weighted- | Weighted- | Aggregate | ||||||||
Shares (In | Average | Average | Intrinsic Value | |||||||||
thousands) | Exercise | Remaining | ||||||||||
Price Per | Contractual | |||||||||||
Share | Term (In | |||||||||||
years) | ||||||||||||
Outstanding at January 1, 2015 | 13,066 | $ | 19.73 | 3.1 | $ | 1,158,412 | ||||||
Granted 01/01/15 - 03/31/15 | 903 | $ | 133.68 | |||||||||
Exercised | -4,589 | $ | 4.17 | |||||||||
Cancelled or forfeited | -16 | $ | 40.61 | |||||||||
Outstanding at March 31, 2015 | 9,364 | $ | 38.30 | 4.8 | $ | 937,246 | ||||||
Vested and expected to vest in the future at March 31, 2015 | 8,869 | $ | 35.23 | 4.6 | $ | 915,012 | ||||||
Exercisable at March 31, 2015 | 6,284 | $ | 17.00 | 2.9 | $ | 762,806 | ||||||
Summary of Company's activities with respect to non-vested restricted stock awards and non-vested restricted stock units | ||||||||||||
Number of | Weighted | |||||||||||
Shares (in | Average | |||||||||||
thousands) | Grant-Date | |||||||||||
Fair Value | ||||||||||||
Non-vested at January 1, 2015 | 149 | $ | 61.09 | |||||||||
Granted | 83 | $ | 135.48 | |||||||||
Vested | -16 | $ | 57.05 | |||||||||
Forfeited/cancelled | -2 | $ | 57.45 | |||||||||
Non-vested at March 31, 2015 | 214 | $ | 90.23 | |||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
INCOME TAXES | |||||
Schedule of roll-forward of the Company's total gross unrecognized tax benefits, not including interest and penalties | |||||
Gross Unrecognized Tax | |||||
Benefits | |||||
Balance at December 31, 2014 | $ | 935 | |||
Additions for tax positions related to the current year | - | ||||
Additions for tax positions related to the prior year | - | ||||
Decreases related to settlement with taxing authority | - | ||||
Balance at March 31, 2015 | $ | 935 | |||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
EARNINGS PER SHARE | ||||||
Schedule of reconciliation of the weighted average shares used in the basic and diluted earnings per common share computations | ||||||
Three-Months Ended | ||||||
March 31, | ||||||
2015 | 2014 | |||||
Weighted-average shares outstanding: | ||||||
Basic | 169,871 | 166,913 | ||||
Dilutive securities | 3,907 | 6,828 | ||||
Diluted | 173,778 | 173,741 | ||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
SEGMENT INFORMATION | ||||||||||||||
Schedule of net revenues and other financial information by segment | ||||||||||||||
Three-Months Ended March 31, 2015 | ||||||||||||||
DSD | Warehouse | Corporate and | Total | |||||||||||
Unallocated | ||||||||||||||
Net sales | $ | 605,811 | -1 | $ | 20,980 | $ | - | $ | 626,791 | -1 | ||||
Contribution margin* | 57,660 | -2 | -40 | - | 57,620 | -2 | ||||||||
Corporate and unallocated expenses | - | - | -49,991 | -49,991 | ||||||||||
Operating income | 7,629 | (1), (2) | ||||||||||||
Interest and other income, net | 42 | - | 1,191 | 1,233 | ||||||||||
Income before provision for income taxes | 8,862 | (1), (2) | ||||||||||||
Depreciation and amortization | -5,119 | -75 | -1,276 | -6,470 | ||||||||||
Three-Months Ended March 31, 2014 | ||||||||||||||
DSD | Warehouse | Corporate and | Total | |||||||||||
Unallocated | ||||||||||||||
Net sales | $ | 514,355 | -1 | $ | 21,774 | $ | - | $ | 536,129 | -1 | ||||
Contribution margin* | 186,468 | -2 | 296 | - | 186,764 | -2 | ||||||||
Corporate and unallocated expenses | - | - | -37,901 | -37,901 | ||||||||||
Operating income | 148,863 | (1), (2) | ||||||||||||
Other income (expense) | 26 | - | 128 | 154 | ||||||||||
Income before provision for income taxes | 149,017 | (1), (2) | ||||||||||||
Depreciation and amortization | -4,944 | -81 | -1,428 | -6,453 | ||||||||||
(1) Includes $43.3 million and $3.7 million for the three-months ended March 31, 2015 and 2014, respectively, related to the recognition of deferred revenue. Included in the $43.3 million recognition of deferred revenue for the three-months ended March 31, 2015, is $39.8 million related to the accelerated amortization of the deferred revenue balances associated with certain of the Company’s prior distributors who were sent notices of termination during the first quarter of 2015. | ||||||||||||||
(2) Includes $206.0 million and $0.01 million for the three-months ended March 31, 2015 and 2014, respectively, related to distributor termination costs. | ||||||||||||||
*Contribution margin is defined as gross profit less certain operating expenses deemed by management to be directly attributable to the respective reportable segment. Contribution margin is used by management as a key indicator of reportable segment profitability. | ||||||||||||||
Schedule of net sales by product line | ||||||||||||||
Three-Months Ended | ||||||||||||||
March 31, | ||||||||||||||
Product Line | 2015 | 2014 | ||||||||||||
Energy drinks | $ | 552,729 | $ | 499,013 | ||||||||||
Non-carbonated (primarily juice based beverages and Peace Tea® iced teas) | 24,513 | 26,446 | ||||||||||||
Carbonated (primarily soda beverages) | 6,202 | 7,014 | ||||||||||||
Other | 43,347 | 3,656 | ||||||||||||
$ | 626,791 | $ | 536,129 | |||||||||||
ACQUISITIONS_AND_DIVESTITURES_1
ACQUISITIONS AND DIVESTITURES (Details) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | |
11-May-15 | Mar. 31, 2015 | Apr. 06, 2015 | Aug. 14, 2014 | |
item | ||||
ACQUISITIONS AND DIVESTITURES | ||||
Percentage of additional distributors affected | 5.00% | |||
TCCC | ||||
ACQUISITIONS AND DIVESTITURES | ||||
Amount held in escrow | $125,000,000 | |||
Funds to be paid to the company at the closing | 500,000,000 | |||
TCCC | 40% Target | ||||
ACQUISITIONS AND DIVESTITURES | ||||
Percentage of target sales | 40.00% | |||
Escrow Release | 375,000,000 | |||
TCCC | 50% Target | ||||
ACQUISITIONS AND DIVESTITURES | ||||
Percentage of target sales | 50.00% | |||
Escrow Release | 312,500,000 | |||
TCCC | 60% Target | ||||
ACQUISITIONS AND DIVESTITURES | ||||
Percentage of target sales | 60.00% | |||
Escrow Release | 250,000,000 | |||
TCCC | 70% Target | ||||
ACQUISITIONS AND DIVESTITURES | ||||
Percentage of target sales | 70.00% | |||
Escrow Release | 187,500,000 | |||
TCCC | 80% Target | ||||
ACQUISITIONS AND DIVESTITURES | ||||
Percentage of target sales | 80.00% | |||
Escrow Release | 125,000,000 | |||
TCCC | 90% Target | ||||
ACQUISITIONS AND DIVESTITURES | ||||
Percentage of target sales | 90.00% | |||
Escrow Release | 62,500,000 | |||
TCCC | 95% Target | ||||
ACQUISITIONS AND DIVESTITURES | ||||
Percentage of target sales | 95.00% | |||
TCCC | Forecast | ||||
ACQUISITIONS AND DIVESTITURES | ||||
Percentage of target sales transitioned | 84.00% | |||
Coca-Cola Transaction Asset Transfer Agreement | ||||
ACQUISITIONS AND DIVESTITURES | ||||
Number of shares into which each outstanding common share is converted in the merger | 1 | |||
Coca-Cola Transaction Asset Transfer Agreement | TCCC | ||||
ACQUISITIONS AND DIVESTITURES | ||||
Net cash payment | 2,150,000,000 | |||
Amount held in escrow | 625,000,000 | |||
NewCo | Coca-Cola Transaction Asset Transfer Agreement | ||||
ACQUISITIONS AND DIVESTITURES | ||||
Term in which number of individuals who can be nominated as Board of Directors by counterparty will be reduced | 36 months | |||
Minimum ownership interest held when number of individuals who can be nominated as Board of Directors by counterparty will be reduced (as a percent) | 20.00% | |||
NewCo | Coca-Cola Transaction Asset Transfer Agreement | TCCC | ||||
ACQUISITIONS AND DIVESTITURES | ||||
Ownership interest (as a percent) | 16.70% | |||
Number of individuals who can be nominated as Board of Directors by counterparty as right under agreement | 2 |
INVESTMENTS_Details
INVESTMENTS (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Held to Maturity and Available-for-sale | ||
Held to maturity and available-for-sale securities, Amortized Cost | $684,614 | $820,164 |
Held to maturity and available-for-sale securities, Gross Unrealized Holding Gains | 56 | 115 |
Held to maturity and available-for-sale securities, Gross Unrealized Holding Losses | 8 | 3 |
Held to maturity and available-for-sale securities, Fair Value | 684,662 | 820,276 |
Held to Maturity, Available-for-sale, and Trading | ||
Investments, Fair Value Disclosure | 688,572 | 824,186 |
Variable rate demand notes | ||
Available-for-sale | ||
Amortized Cost | 3,900 | 4,001 |
Fair Value | 3,900 | 4,001 |
Short-term | Certificates of deposit | ||
Held-to-Maturity | ||
Amortized Cost | 15,991 | 19,482 |
Gross Unrealized Holding Losses | 1 | 2 |
Fair Value | 15,990 | 19,480 |
Short-term | Municipal securities | ||
Held-to-Maturity | ||
Amortized Cost | 622,082 | 744,542 |
Gross Unrealized Holding Gains | 48 | 105 |
Fair Value | 622,130 | 744,647 |
Short-term | U.S. government Agencies | ||
Held-to-Maturity | ||
Amortized Cost | 1,401 | 9,199 |
Gross Unrealized Holding Losses | 1 | |
Fair Value | 1,401 | 9,198 |
Short-term | Auction rate securities | ||
Trading | ||
Fair Value | 3,910 | 3,910 |
Long-term | Municipal securities | ||
Held-to-Maturity | ||
Amortized Cost | 33,662 | 42,940 |
Gross Unrealized Holding Gains | 8 | 10 |
Fair Value | 33,670 | 42,950 |
Long-term | U.S. government Agencies | ||
Held-to-Maturity | ||
Amortized Cost | 7,578 | |
Gross Unrealized Holding Losses | 7 | |
Fair Value | $7,571 |
INVESTMENTS_Details_2
INVESTMENTS (Details 2) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Investments | ||
Amortized Cost | $688,524 | $824,074 |
Fair Value | 688,572 | 824,186 |
Commercial paper | Less than 1 year | ||
Investments | ||
Amortized Cost | 15,991 | 19,482 |
Fair Value | 15,990 | 19,480 |
Municipal securities | Less than 1 year | ||
Investments | ||
Amortized Cost | 622,082 | 744,542 |
Fair Value | 622,130 | 744,647 |
Municipal securities | Due 1 - 10 years | ||
Investments | ||
Amortized Cost | 33,662 | 42,940 |
Fair Value | 33,670 | 42,950 |
U.S. government Agencies | Less than 1 year | ||
Investments | ||
Amortized Cost | 1,401 | 9,199 |
Fair Value | 1,401 | 9,198 |
U.S. government Agencies | Due 1 - 10 years | ||
Investments | ||
Amortized Cost | 7,578 | |
Fair Value | 7,571 | |
Variable rate demand notes | Due 21 - 30 years | ||
Investments | ||
Amortized Cost | 3,900 | 4,001 |
Fair Value | 3,900 | 4,001 |
Auction rate securities | Due 11 - 20 years | ||
Investments | ||
Amortized Cost | 3,910 | 3,910 |
Fair Value | $3,910 | $3,910 |
FAIR_VALUE_OF_CERTAIN_FINANCIA2
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
U.S. government Agencies | ||
Fair value of certain assets | ||
Assets measured at fair value | $8,979 | |
Variable rate demand notes | ||
Fair value of certain assets | ||
Assets measured at fair value | 3,900 | |
Level 1 | ||
Fair value of certain assets | ||
Cash | 162,105 | 196,090 |
Assets measured at fair value | 359,992 | 303,018 |
Level 1 | Money market funds | ||
Fair value of certain assets | ||
Assets measured at fair value | 197,887 | 106,928 |
Level 2 | ||
Fair value of certain assets | ||
Assets measured at fair value | 687,625 | 887,217 |
Level 2 | Commercial paper | ||
Fair value of certain assets | ||
Assets measured at fair value | 15,991 | 19,482 |
Level 2 | Municipal securities | ||
Fair value of certain assets | ||
Assets measured at fair value | 658,539 | 854,787 |
Level 2 | U.S. government Agencies | ||
Fair value of certain assets | ||
Assets measured at fair value | 8,979 | 9,199 |
Level 2 | Variable rate demand notes | ||
Fair value of certain assets | ||
Assets measured at fair value | 3,900 | 4,001 |
Level 2 | Foreign currency exchange contracts | ||
Fair value of certain assets | ||
Foreign currency derivatives | 216 | -252 |
Level 3 | ||
Fair value of certain assets | ||
Assets measured at fair value | 4,160 | 4,160 |
Level 3 | Auction rate securities | ||
Fair value of certain assets | ||
Assets measured at fair value | 3,910 | 3,910 |
Level 3 | Put options | ||
Fair value of certain assets | ||
Assets measured at fair value | 250 | 250 |
Total fair value | ||
Fair value of certain assets | ||
Cash | 162,105 | 196,090 |
Assets measured at fair value | 1,051,777 | 1,194,395 |
Total fair value | Money market funds | ||
Fair value of certain assets | ||
Assets measured at fair value | 197,887 | 106,928 |
Total fair value | Commercial paper | ||
Fair value of certain assets | ||
Assets measured at fair value | 15,991 | 19,482 |
Total fair value | Municipal securities | ||
Fair value of certain assets | ||
Assets measured at fair value | 658,539 | 854,787 |
Total fair value | U.S. government Agencies | ||
Fair value of certain assets | ||
Assets measured at fair value | 9,199 | |
Total fair value | Variable rate demand notes | ||
Fair value of certain assets | ||
Assets measured at fair value | 4,001 | |
Total fair value | Auction rate securities | ||
Fair value of certain assets | ||
Assets measured at fair value | 3,910 | 3,910 |
Total fair value | Put options | ||
Fair value of certain assets | ||
Assets measured at fair value | 250 | 250 |
Total fair value | Foreign currency exchange contracts | ||
Fair value of certain assets | ||
Foreign currency derivatives | $216 | ($252) |
FAIR_VALUE_OF_CERTAIN_FINANCIA3
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
Fair value amounts included in the carrying value of | ||||
Cash and cash equivalents | $362,787 | $370,323 | $312,020 | $211,349 |
Short-term investments | 647,284 | 781,134 | ||
Investments | 41,240 | 42,940 | ||
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 | 359,992 | 303,018 | ||
Total | 359,992 | 303,018 | ||
Level 2 | ||||
Fair value amounts included in the carrying value of | ||||
Cash and cash equivalents | 2,795 | 67,305 | ||
Short-term investments | 643,374 | 777,224 | ||
Accounts receivable, net | 393 | 83 | ||
Investments | 41,240 | 42,940 | ||
Accrued liabilities | -177 | -335 | ||
Total | 687,625 | 887,217 | ||
Level 3 | ||||
Fair value amounts included in the carrying value of | ||||
Short-term investments | 3,910 | 3,910 | ||
Prepaid expenses and other current assets | 250 | 250 | ||
Total | 4,160 | 4,160 | ||
Total fair value | ||||
Fair value amounts included in the carrying value of | ||||
Cash and cash equivalents | 362,787 | 370,323 | ||
Short-term investments | 647,284 | 781,134 | ||
Accounts receivable, net | 393 | 83 | ||
Investments | 41,240 | 42,940 | ||
Prepaid expenses and other current assets | 250 | 250 | ||
Accrued liabilities | -177 | -335 | ||
Total | $1,051,777 | $1,194,395 |
FAIR_VALUE_OF_CERTAIN_FINANCIA4
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2011 | Oct. 01, 2013 | Jul. 01, 2013 | |
ARS Agreement | ||||||||
Amortized Cost | $688,524,000 | $824,074,000 | ||||||
Auction rate securities | ||||||||
ARS Agreement | ||||||||
Face value of investments | 4,200,000 | |||||||
Amortized Cost | 3,900,000 | |||||||
Trading auction rate securities, in short-term and long-term investments | 3,900,000 | |||||||
Impairment of investments, trading securities | 300,000 | |||||||
2011 ARS Agreement | ||||||||
ARS Agreement | ||||||||
Amount of securities of par value | 24,500,000 | |||||||
Redemption of investment securities at par through normal market channels | 0 | 13,100,000 | 2,300,000 | 1,300,000 | 3,700,000 | |||
Put options | Subsequent event | ||||||||
ARS Agreement | ||||||||
Redemption of investment securities through the exercise of the put option | 700,000 | |||||||
2011 Put Option | ||||||||
ARS Agreement | ||||||||
Fair market value of investments | 300,000 | |||||||
2011 Put Option | Maximum | ||||||||
ARS Agreement | ||||||||
Amount of securities of par value | $1,000,000 | $1,000,000 |
FAIR_VALUE_OF_CERTAIN_FINANCIA5
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES (Details 4) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 |
Auction rate securities | |||
Fair value of level 3 financial assets, roll forward | |||
Balance at the beginning of the period | $16,184 | $3,910 | $3,910 |
Total gains (losses) for the period: Included in earnings | 67 | ||
Settlements | -1,725 | ||
Balance at the end of the period | 14,526 | 3,910 | 3,910 |
Put options | |||
Fair value of level 3 financial assets, roll forward | |||
Balance at the beginning of the period | 1,092 | 250 | 250 |
Total gains (losses) for the period: Included in earnings | -68 | ||
Balance at the end of the period | $1,024 | $250 | $250 |
DERIVATIVE_INSTRUMENTS_AND_HED2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Foreign currency exchange contracts | Maximum | |||
Derivative Instruments and Hedging Activities | |||
Term of derivative instrument | 1 month | ||
Derivatives not designated as hedging instruments | Foreign currency exchange contracts | Interest and other income, net | |||
Derivative Instruments and Hedging Activities | |||
Amount of loss recognized in income on derivatives | -1,856 | ($359) | |
Derivatives not designated as hedging instruments | Receive CAD/pay USD | Accounts receivables, net | |||
Derivative Instruments and Hedging Activities | |||
Notional amount, Assets | 19,940 | ||
Fair Value, Assets | 83 | ||
Derivatives not designated as hedging instruments | Receive EUR/pay USD | Accrued liabilities | |||
Derivative Instruments and Hedging Activities | |||
Notional amount, Liabilities | 11,252 | 13,265 | |
Fair Value, Assets | -177 | ||
Fair Value, Liabilities | -75 | ||
Derivatives not designated as hedging instruments | Receive USD/pay AUD | Accounts receivables, net | |||
Derivative Instruments and Hedging Activities | |||
Notional amount, Assets | 8,069 | ||
Fair Value, Assets | 166 | ||
Derivatives not designated as hedging instruments | Receive USD/pay AUD | Accrued liabilities | |||
Derivative Instruments and Hedging Activities | |||
Notional amount, Liabilities | 8,343 | ||
Fair Value, Liabilities | -48 | ||
Derivatives not designated as hedging instruments | Receive USD/pay JPY | Accounts receivables, net | |||
Derivative Instruments and Hedging Activities | |||
Notional amount, Assets | 9,367 | ||
Fair Value, Assets | 60 | ||
Derivatives not designated as hedging instruments | Receive USD/pay JPY | Accrued liabilities | |||
Derivative Instruments and Hedging Activities | |||
Notional amount, Liabilities | 10,620 | ||
Fair Value, Liabilities | -84 | ||
Derivatives not designated as hedging instruments | Receive USD/pay ZAR | Accounts receivables, net | |||
Derivative Instruments and Hedging Activities | |||
Notional amount, Assets | 13,161 | ||
Fair Value, Assets | 101 | ||
Derivatives not designated as hedging instruments | Receive USD/pay ZAR | Accrued liabilities | |||
Derivative Instruments and Hedging Activities | |||
Notional amount, Liabilities | 14,760 | ||
Fair Value, Liabilities | -105 | ||
Derivatives not designated as hedging instruments | Receive USD/pay MXN | Accounts receivables, net | |||
Derivative Instruments and Hedging Activities | |||
Notional amount, Assets | 6,349 | ||
Fair Value, Assets | 30 | ||
Derivatives not designated as hedging instruments | Receive USD/pay MXN | Accrued liabilities | |||
Derivative Instruments and Hedging Activities | |||
Notional amount, Liabilities | 4,961 | ||
Fair Value, Liabilities | -11 | ||
Derivatives not designated as hedging instruments | Receive USD/pay CLP | Accounts receivables, net | |||
Derivative Instruments and Hedging Activities | |||
Notional amount, Assets | 2,828 | ||
Derivatives not designated as hedging instruments | Receive USD/pay CLP | Accrued liabilities | |||
Derivative Instruments and Hedging Activities | |||
Notional amount, Liabilities | 2,685 | ||
Fair Value, Liabilities | -10 | ||
Derivatives not designated as hedging instruments | Receive USD/pay COP | Accounts receivables, net | |||
Derivative Instruments and Hedging Activities | |||
Notional amount, Assets | 2,628 | ||
Fair Value, Assets | 36 | ||
Derivatives not designated as hedging instruments | Receive USD/pay COP | Accrued liabilities | |||
Derivative Instruments and Hedging Activities | |||
Notional amount, Liabilities | 2,845 | ||
Fair Value, Liabilities | ($2) |
DERIVATIVE_INSTRUMENTS_AND_HED3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details 2) (Derivatives not designated as hedging instruments, Foreign currency exchange contracts, Interest and other income, net, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivatives not designated as hedging instruments | Foreign currency exchange contracts | Interest and other income, net | ||
Net losses on derivative instruments | ||
Amount of loss recognized in income on derivatives | ($1,856) | ($359) |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
INVENTORIES | ||
Raw materials | $65,311 | $59,938 |
Finished goods | 132,603 | 114,635 |
Inventories, net | $197,914 | $174,573 |
PROPERTY_AND_EQUIPMENT_Net_Det
PROPERTY AND EQUIPMENT, Net (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Property and equipment, net | ||
Property and equipment, gross | $176,745 | $173,735 |
Less: accumulated depreciation and amortization | -88,449 | -83,579 |
Property and equipment, net | 88,296 | 90,156 |
Land | ||
Property and equipment, net | ||
Property and equipment, gross | 6,792 | 6,792 |
Leasehold improvements | ||
Property and equipment, net | ||
Property and equipment, gross | 2,723 | 2,796 |
Furniture and fixtures | ||
Property and equipment, net | ||
Property and equipment, gross | 3,359 | 3,371 |
Office and computer equipment | ||
Property and equipment, net | ||
Property and equipment, gross | 10,229 | 10,072 |
Computer software | ||
Property and equipment, net | ||
Property and equipment, gross | 1,774 | 1,317 |
Equipment | ||
Property and equipment, net | ||
Property and equipment, gross | 86,887 | 84,263 |
Building | ||
Property and equipment, net | ||
Property and equipment, gross | 37,746 | 37,311 |
Vehicles | ||
Property and equipment, net | ||
Property and equipment, gross | $27,235 | $27,813 |
INTANGIBLES_Net_Details
INTANGIBLES, Net (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Intangibles, Net | |||
Amortizing intangibles | $233 | $233 | |
Accumulated amortization | -50 | -50 | |
Amortizing intangibles, net | 183 | 183 | |
Non-amortizing intangibles | 52,117 | 50,565 | |
Intangible, net | 52,300 | 50,748 | |
Weighted-average useful life | 17 years | ||
Amortization expense | 1 | 100 | |
Minimum | |||
Intangibles, Net | |||
Weighted-average useful life | 1 year | ||
Maximum | |||
Intangibles, Net | |||
Weighted-average useful life | 25 years | ||
TCCC | |||
Intangibles, Net | |||
Amortizing intangibles, net | 100 | ||
Non-amortizing intangibles | $18,000 |
DISTRIBUTION_AGREEMENTS_Detail
DISTRIBUTION AGREEMENTS (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Distribution agreement, revenue recognition period | 20 years | |
Revenue recognized | $43.30 | $3.70 |
Amortization of deferred revenue | 39.8 | |
TCCC | ||
Termination costs of distributors | $206 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Commitments and Contingencies | |
Purchase Commitments | $22.50 |
Period over which obligations will be paid | 1 year |
Aggregate contractual obligations | 93.3 |
Aggregate operating lease commitments | 11.5 |
Subsequent event | |
Commitments and Contingencies | |
Number of acres of vacant land acquired | 56 |
Purchase price | 38.1 |
Amount deposited in Escrow | $0.50 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details 2) (USD $) | 0 Months Ended | |
Oct. 17, 2012 | Mar. 31, 2015 | |
oz | ||
item | ||
Commitments and contingencies | ||
Accrued loss contingencies | $5,500,000 | |
Receivables for insurance reimbursements | 1,800,000 | |
Lawsuit in Superior Court by Wendy Crossland and Richard Fournier | ||
Commitments and contingencies | ||
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 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Components of accumulated other comprehensive income (loss): | |
Balance at the beginning of the period | ($11,453) |
Other comprehensive income before reclassifications | 9,980 |
Net current-period other comprehensive loss | 9,980 |
Balance at the end of the period | ($21,433) |
TREASURY_STOCK_PURCHASE_Detail
TREASURY STOCK PURCHASE (Details) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Jul. 04, 2013 |
TREASURY STOCK PURCHASE | ||
Number of shares repurchased of common stock from employees in lieu of cash or withholding taxes due | 2.2 | |
Cash payment for repurchase of common stock from employees in lieu of cash or withholding taxes due | 251.4 | |
April 2013 Repurchase Plan | ||
TREASURY STOCK PURCHASE | ||
Maximum amount of common stock the board of directors authorized to repurchase | $200 | |
Common stock repurchased (in shares) | 0 |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
plan | ||
Stock-based compensation | ||
Stock-based compensation plans | 2 | |
Compensation expense on share-based plans | $6.40 | $7 |
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 | $184.70 | $2.60 |
STOCKBASED_COMPENSATION_Detail1
STOCK-BASED COMPENSATION (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Weighted-average assumptions used to estimate the fair value of options granted | |||
Expected term | 5 years 9 months 18 days | ||
Stock options | |||
Weighted-average assumptions used to estimate the fair value of options granted | |||
Dividend yield (as a percent) | 0.00% | 0.00% | |
Expected volatility (as a percent) | 37.10% | 43.10% | |
Risk-free interest rate (as a percent) | 1.60% | 1.60% | |
Expected term | 5 years 10 months 24 days | ||
Stock Options, Number of Shares | |||
Balance at the beginning of the period (in shares) | 13,066 | ||
Granted (in shares) | 903 | ||
Exercised (in shares) | -4,589 | ||
Cancelled or forfeited (in shares) | -16 | ||
Balance at the end of the period (in shares) | 9,364 | 13,066 | |
Vested and expected to vest in the future at the end of the period (in shares) | 8,869 | ||
Exercisable at the end of the period (in shares) | 6,284 | ||
Stock options, Weighted-Average Exercise Price Per Share | |||
Balance at the beginning of the period (in dollars per share) | $19.73 | ||
Granted (in dollars per share) | $133.68 | ||
Exercised (in dollars per share) | $4.17 | ||
Cancelled or forfeited (in dollars per share) | $40.61 | ||
Balance at the end of the period (in dollars per share) | $38.30 | $19.73 | |
Vested and expected to vest in the future at the end of the period (in dollars per share) | $35.23 | ||
Exercisable at the end of the period (in dollars per share) | $17 | ||
Weighted-Average Remaining Contractual Term | |||
Balance at the beginning of the period | 4 years 9 months 18 days | 3 years 1 month 6 days | |
Balance at the end of the period | 4 years 9 months 18 days | 3 years 1 month 6 days | |
Vested and expected to vest in the future at the end of the period | 4 years 7 months 6 days | ||
Exercisable at the end of the period | 2 years 10 months 24 days | ||
Aggregate Intrinsic Value | |||
Balance at the beginning of the period | $1,158,412 | ||
Balance at the end of the period | 937,246 | 1,158,412 | |
Vested and expected to vest in the future at the end of the period | 915,012 | ||
Exercisable at the end of the period | $762,806 |
STOCKBASED_COMPENSATION_Detail2
STOCK-BASED COMPENSATION (Detail 3) (USD $) | 3 Months Ended | |
In Millions, except Share data in Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Stock options | ||
Stock-based compensation | ||
Weighted-average grant-date fair value of options granted (in dollars per share) | $50.16 | $29.86 |
Stock units and stock awards expected to vest (in shares) | 8,869 | |
Total intrinsic value of options exercised | $515.70 | $11.40 |
Cash received from option exercises | 19 | 5.7 |
Total unrecognized compensation expense related to non-vested shares granted to employees | 88.2 | |
Cost expected to be recognized over a weighted-average period | 3 years 2 months 12 days | |
Restricted stock units | ||
Stock-based compensation | ||
Stock units and stock awards expected to vest (in shares) | 200 | |
Total unrecognized compensation expense related to non-vested shares granted to employees | $16.20 | |
Cost expected to be recognized over a weighted-average period | 2 years 4 months 24 days | |
Number of Shares | ||
Non-vested at the beginning of the period (in shares) | 149 | |
Granted (in shares) | 83 | |
Vested (in shares) | -16 | |
Forfeited/cancelled (in shares) | -2 | |
Non-vested at the end of the period (in shares) | 214 | |
Weighted Average Grant-Date Fair Value | ||
Non-vested at the beginning of the period (in dollars per share) | $61.09 | |
Granted (in dollars per share) | $135.48 | |
Vested (in dollars per share) | $57.05 | |
Forfeited/cancelled (in dollars per share) | $57.45 | |
Non-vested at the end of the period (in dollars per share) | $90.23 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Gross unrecognized tax benefits, roll forward | ||
Balance at the beginning of the period | $935,000 | $935,000 |
Balance at the end of the period | 935,000 | 935,000 |
Accrued interest and penalties related to unrecognized tax benefits | $400,000 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Weighted-average shares outstanding: | ||
Basic | 169,871,000 | 166,913,000 |
Dilutive securities | 3,907,000 | 6,828,000 |
Diluted | 173,778,000 | 173,741,000 |
Options and awards outstanding excluded from the calculations as their effect would have been antidilutive (in shares) | 400,000 | 600,000 |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
item | ||
Segment information | ||
Number of reportable segments | 2 | |
Net sales | $626,791,000 | $536,129,000 |
Contribution margin | 57,620,000 | 186,764,000 |
Corporate and unallocated expenses | -49,991,000 | -37,901,000 |
Operating income | 7,629,000 | 148,863,000 |
Other income (expense) | 154,000 | |
Interest and other income, net | 1,233,000 | |
Income before provision for income taxes | 8,862,000 | 149,017,000 |
Depreciation and amortization | -6,470,000 | -6,453,000 |
Stock-based compensation expense | 6,400,000 | 7,000,000 |
Revenue recognized | 43,300,000 | 3,700,000 |
Accelerated Amortization Of Deferred Revenue Balances | 39,800,000 | |
Corporate and Unallocated | ||
Segment information | ||
Corporate and unallocated expenses | -49,991,000 | -37,901,000 |
Other income (expense) | 128,000 | |
Interest and other income, net | 1,191,000 | |
Depreciation and amortization | -1,276,000 | -1,428,000 |
Payroll cost | 28,500,000 | 21,100,000 |
Stock-based compensation expense | 6,400,000 | 7,000,000 |
Professional service expenses | 14,500,000 | 10,100,000 |
Other operating expenses | 7,000,000 | 6,700,000 |
Direct Store Delivery ("DSD") | ||
Segment information | ||
Revenue recognized | 43,300,000 | 3,700,000 |
Accelerated Amortization Of Deferred Revenue Balances | 39,800,000 | |
Distribution Agreements Termination Cost | 206,000,000 | 10,000 |
Direct Store Delivery ("DSD") | Operating segment | ||
Segment information | ||
Net sales | 605,811,000 | 514,355,000 |
Contribution margin | 57,660,000 | 186,468,000 |
Other income (expense) | 26,000 | |
Interest and other income, net | 42,000 | |
Depreciation and amortization | -5,119,000 | -4,944,000 |
Warehouse ("Warehouse") | Operating segment | ||
Segment information | ||
Net sales | 20,980,000 | 21,774,000 |
Contribution margin | -40,000 | 296,000 |
Depreciation and amortization | ($75,000) | ($81,000) |
SEGMENT_INFORMATION_Details_2
SEGMENT INFORMATION (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment information | ||
Net sales | $626,791 | $536,129 |
Outside United States | ||
Segment information | ||
Net sales | 113,000 | 115,800 |
Energy drinks | ||
Segment information | ||
Net sales | 552,729 | 499,013 |
Non-carbonated (primarily juice based beverages) | ||
Segment information | ||
Net sales | 24,513 | 26,446 |
Carbonated (primarily soda beverages) | ||
Segment information | ||
Net sales | 6,202 | 7,014 |
Other | ||
Segment information | ||
Net sales | $43,347 | $3,656 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (Directors and Officers that provide promotional materials, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
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 | $0.90 | $0.07 |