Monster Beverage (MNST) 10-Q 9 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 01, 2017
Document and Entity Information
Entity Registrant Name	Monster Beverage Corp
Entity Central Index Key	865,752
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		568,169,102
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
CURRENT ASSETS:
Cash and cash equivalents	$ 777,655	$ 377,582
Short-term investments	323,851	220,554
Accounts receivable, net	537,082	448,051
TCCC Transaction receivable		125,000
Inventories	190,600	161,971
Prepaid expenses and other current assets	44,399	32,562
Prepaid income taxes	6,492	66,550
Total current assets	1,880,079	1,432,270
INVESTMENTS	48,639	2,394
PROPERTY AND EQUIPMENT, net	211,555	173,343
DEFERRED INCOME TAXES	158,739	159,556
GOODWILL	1,331,643	1,331,643
OTHER INTANGIBLE ASSETS, net	1,032,874	1,032,635
OTHER ASSETS	20,602	21,630
Total Assets	4,684,131	4,153,471
CURRENT LIABILITIES:
Accounts payable	242,667	193,270
Accrued liabilities	100,801	79,526
Accrued promotional allowances	141,483	110,237
Accrued distributor terminations	301	8,184
Deferred revenue	43,946	41,672
Accrued compensation	23,022	30,043
Income taxes payable	8,951	7,657
Total current liabilities	561,171	470,589
DEFERRED REVENUE	346,943	353,173
COMMITMENTS AND CONTINGENCIES (Note 10)
STOCKHOLDERS' EQUITY:
Common stock - $0.005 par value; 1,250,000 shares authorized; 624,762 shares issued and 568,121 outstanding as of June 30, 2017; 623,201 shares issued and 566,566 outstanding as of December 31, 2016	3,124	3,116
Additional paid-in capital	4,090,818	4,051,245
Retained earnings	2,508,161	2,107,548
Accumulated other comprehensive loss	(16,833)	(23,249)
Common stock in treasury, at cost; 56,641 shares and 56,635 shares as of June 30, 2017 and December 31, 2016, respectively	(2,809,253)	(2,808,951)
Total stockholders' equity	3,776,017	3,329,709
Total Liabilities and Stockholders' Equity	$ 4,684,131	$ 4,153,471

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Jun. 30, 2017	Dec. 31, 2016
CONDENSED CONSOLIDATED BALANCE SHEETS
Common stock, par value (in dollars per share)	$ 0.005	$ 0.005
Common stock, shares authorized	1,250,000	1,250,000
Common stock, shares issued	624,762	623,201
Common stock, shares outstanding	568,121	566,566
Common stock in treasury, shares	56,641	56,635

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
NET SALES	$ 907,068	$ 827,488	$ 1,649,214	$ 1,507,674
COST OF SALES	323,571	309,674	584,843	566,762
GROSS PROFIT	583,497	517,814	1,064,371	940,912
OPERATING EXPENSES	233,456	229,291	450,068	397,675
OPERATING INCOME	350,041	288,523	614,303	543,237
INTEREST and OTHER (EXPENSE) INCOME, net	(2,551)	(222)	(1,893)	386
INCOME BEFORE PROVISION FOR INCOME TAXES	347,490	288,301	612,410	543,623
PROVISION FOR INCOME TAXES	124,857	104,082	211,797	195,526
NET INCOME	$ 222,633	$ 184,219	$ 400,613	$ 348,097
NET INCOME PER COMMON SHARE:
Basic (in dollars per share)	$ 0.39	$ 0.31	$ 0.71	$ 0.57
Diluted (in dollars per share)	$ 0.39	$ 0.30	$ 0.69	$ 0.56
WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK AND COMMON STOCK EQUIVALENTS:
Basic (in shares)	567,910	602,937	567,384	605,886
Diluted (in shares)	578,020	614,904	577,719	617,844

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income, as reported	$ 222,633	$ 184,219	$ 400,613	$ 348,097
Other comprehensive income:
Change in foreign currency translation adjustment	5,111	966	6,311	7,401
Available-for-sale investments:
Change in net unrealized (losses) gains	(26)		105
Net change in available-for-sale investments	(26)		105
Other comprehensive income	5,085	966	6,416	7,401
Comprehensive income	$ 227,718	$ 185,185	$ 407,029	$ 355,498

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 400,613	$ 348,097
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	22,775	19,329
Gain on disposal of property and equipment	(436)	(120)
Stock-based compensation	25,983	21,590
Deferred income taxes	1,862	(13)
Effect on cash of changes in operating assets and liabilities:
Accounts receivable	(75,178)	(103,303)
TCCC Transaction receivable	125,000
Distributor receivables	(1,452)	(1,716)
Inventories	(24,859)	11,613
Prepaid expenses and other current assets	(8,131)	(2,515)
Prepaid income taxes	60,696	(18,694)
Accounts payable	8,784	35,005
Accrued liabilities	(667)	6,780
Accrued promotional allowances	25,805	27,238
Accrued distributor terminations	(7,917)	13,822
Accrued compensation	(7,225)	(6,077)
Income taxes payable	(5,362)	(100,728)
Deferred revenue	(7,069)	(2,753)
Net cash provided by operating activities	533,222	247,555
CASH FLOWS FROM INVESTING ACTIVITIES:
Maturities of held-to-maturity investments		868,304
Sales of available-for-sale investments	172,528
Purchases of held-to-maturity investments		(152,664)
Purchases of available-for-sale investments	(286,858)
Purchases of property and equipment	(40,477)	(17,813)
Proceeds from sale of property and equipment	733	541
Purchases of AFF assets, net		(688,485)
Decrease (increase) in intangibles	26	(4,881)
Increase in other assets	(632)	(2,377)
Net cash (used in) provided by investing activities	(154,680)	2,625
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on debt	(1,334)	(1,099)
Issuance of common stock	19,093	8,167
Purchases of common stock held in treasury	(302)	(2,002,254)
Net cash provided by (used in) financing activities	17,457	(1,995,186)
Effect of exchange rate changes on cash and cash equivalents	4,074	4,358
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	400,073	(1,740,648)
CASH AND CASH EQUIVALENTS, beginning of period	377,582	2,175,417
CASH AND CASH EQUIVALENTS, end of period	777,655	434,769
Cash paid during the period for:
Interest	38	34
Income taxes	$ 156,039	$ 315,177

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS NON-CASH SUPPLEMENTAL DATA
Capital leases for the acquisition of promotional vehicles	$ 1.5	$ 1.9
Accounts payable for property and equipment purchases	12.4	0.1
Net change in accrued liabilities related to other intangible assets addition	6.2	$ 3
Accounts payable for short-term and long-term investments	$ 35.1

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2017
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”) Annual Report on Form 10-K for the year ended December 31, 2016 (“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- and six-months ended June 30, 2017 and 2016, respectively, 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 amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jun. 30, 2017
RECENT ACCOUNTING PRONOUNCEMENTS
RECENT ACCOUNTING PRONOUNCEMENTS	2. RECENT ACCOUNTING PRONOUNCEMENTS In May 2017, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2017-09, “Compensation–Stock Compensation (Topic 718): Scope of Modification Accounting,” clarifying when a change to the terms or conditions of a share-based payment award must be accounted for as a modification. The new guidance requires modification accounting if the fair value, vesting condition or the classification of the award is not the same immediately before and after a change to the terms and conditions of the award. The new guidance is effective for the Company on a prospective basis beginning on January 1, 2018, with early adoption permitted. The Company is currently evaluating the impact of ASU No. 2017-09 on its financial position, results of operations and liquidity. In January 2017, the FASB issued ASU No. 2017-01 , “ Business Combinations (Topic 805): Clarifying the Definition of a Business ” , which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This amendment is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of ASU No. 2017-01 on its financial position, results of operations and liquidity. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles and Other (Topic 350): Simplifying the Test for Goodwill Impairment ” , which eliminates the requirement to calculate the implied fair value of goodwill, but rather requires an entity to record an impairment charge based on the excess of a reporting unit’s carrying value over its fair value. This amendment is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact of ASU No. 2017-04 on its financial position, results of operations and liquidity. In October 2016, the FASB issued ASU No. 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory”, in an effort to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. Current GAAP prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. FASB ASU No. 2016-16 establishes the requirement that an entity recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU No. 2016-16 is effective for financial statements issued for annual periods beginning after December 15, 2017 and interim periods within those annual periods. Earlier application is permitted as of the beginning of an interim or annual reporting period, with any adjustments reflected as of the beginning of the fiscal year of adoption. The Company is currently evaluating the impact of ASU No. 2016-16 on its financial position, results of operations and liquidity. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230)”. The new guidance is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. ASU No. 2016-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted, provided that all of the amendments are adopted in the same period. The guidance requires application using a retrospective transition method. The Company is currently evaluating the impact of ASU No. 2016-15 on its financial position, results of operations and liquidity. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. The accounting standard changes the methodology for measuring credit losses on financial instruments and the timing when such losses are recorded. ASU No. 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company is currently evaluating the impact of ASU No. 2016-13 on its financial position, results of operations and liquidity. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”. This update is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This update is effective for annual and interim reporting periods beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of ASU No. 2016-02 on its financial position, results of operations and liquidity. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which supersedes previous revenue recognition guidance. ASU No. 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 (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the contract’s performance obligations; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU No. 2014-09 was to be effective for reporting periods beginning after December 15, 2016. However, on July 9, 2015, the FASB voted to approve a one-year deferral of the effective date. This new guidance is effective for the Company beginning January 1, 2018 and can be adopted using either a full retrospective or modified approach. The Company is progressing in its evaluation of the amended revenue recognition guidance in Topic 606. However, such evaluation has yet to progress to a stage where there is sufficient information for a preliminary position of the impact on the Company’s consolidated financial statements. Therefore, the Company is unable at this time to provide (i) qualitative financial statement disclosures of the potential impact that this standard will have on its financial statements when adopted, (ii) a description of the effects of the accounting policies it expects to apply, (iii) a comparison to its current revenue recognition policies and (iv) a method for adoption.

INVESTMENTS

INVESTMENTS	6 Months Ended
	Jun. 30, 2017
INVESTMENTS
INVESTMENTS	3. INVESTMENTS The following table summarizes the Company’s investments at: June 30, 2017 Amortized Cost Gross Gross Fair Continuous Continuous Available-for-sale Short-term: Commercial paper $ $ $ - $ $ - $ - Certificates of deposit - - - - Municipal securities - U.S. government agency securities - - Variable rate demand notes - - - - Long-term: Municipal securities - - U.S. government agency securities - - Total $ $ $ $ $ $ - December 31, 2016 Amortized Cost Gross Gross Fair Continuous Continuous Available-for-sale Short-term: Commercial paper $ $ - $ - $ $ - $ - Municipal securities - - U.S. government agency securities - - Variable rate demand notes - - - - Long-term: Municipal securities - - Total $ $ - $ $ $ $ - During the three- and six-months ended June 30, 2017 and 2016, realized gains or losses recognized on the sale of investments were not significant. The Company’s investments at June 30, 2017 and December 31, 2016 in commercial paper, certificates of deposit, 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. The following table summarizes the underlying contractual maturities of the Company’s investments at: June 30, 2017 December 31, 2016 Amortized Cost Fair Value Amortized Cost Fair Value Less than 1 year: Commercial paper $ $ $ $ Certificates of deposit - - Municipal securities U.S. government agency securities Due 1 -10 years: Municipal securities U.S. government agency securities - - Variable rate demand notes Due 11 - 20 years: Variable rate demand notes Due 21 - 30 years: Variable rate demand notes Due 31 - 40 years: Variable rate demand notes - - Total $ $ $ $

FAIR VALUE OF CERTAIN FINANCIAL

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES	6 Months Ended
	Jun. 30, 2017
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES	4. 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 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: June 30, 2017 Level 1 Level 2 Level 3 Total Cash $ $ - $ - $ Money market funds - - Certificates of deposit - - Commercial paper - - Variable rate demand notes - - Municipal securities - - U.S. government agency securities - - Foreign currency derivatives - - Total $ $ $ - $ Amounts included in: Cash and cash equivalents $ $ $ - $ Short-term investments - - Accounts receivable, net - - Investments - - Accrued liabilities - ) - ) Total $ $ $ - $ December 31, 2016 Level 1 Level 2 Level 3 Total Cash $ $ - $ - $ Money market funds - - Commercial paper - - Variable rate demand notes - - Municipal securities - - U.S. government agency securities - - Foreign currency derivatives - ) - ) Total $ $ $ - $ Amounts included in: Cash and cash equivalents $ $ $ - $ Short-term investments - - Accounts receivable, net - - Investments - - Accrued liabilities - ) - ) Total $ $ $ - $ All 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 municipal securities, commercial paper, certificates of deposit, VRDNs and U.S. government agency securities, is based on other observable inputs, specifically a market approach which utilizes valuation models, pricing systems, mathematical tools and other relevant information for the same or similar securities. The Company’s valuation of its Level 2 foreign currency 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 six-months ended June 30, 2017 or the year ended December 31, 2016, and there were no changes in the Company’s valuation techniques.

DERIVATIVE INSTRUMENTS AND HEDG

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES	6 Months Ended
	Jun. 30, 2017
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES	5. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company is exposed to foreign currency exchange rate risks related primarily to its foreign business operations. During the six-months ended June 30, 2017 and the year ended December 31, 2016, 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 June 30, 2017 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 (expense) 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: June 30, 2017 Derivatives not designated as Notional Fair Balance Sheet Location Assets: Foreign currency exchange contracts: Receive CAD/pay USD $ $ Accounts receivable, net Receive USD/pay ZAR Accounts receivable, net Receive USD/pay MXN Accounts receivable, net Receive SGD/pay USD Accounts receivable, net Receive USD/pay BRL Accounts receivable, net Receive USD/pay CLP Accounts receivable, net Receive USD/pay COP Accounts receivable, net Liabilities: Foreign currency exchange contracts: Receive USD/pay GBP $ $ Accrued liabilities Receive USD/pay EUR Accrued liabilities Receive USD/pay AUD Accrued liabilities Receive USD/pay NZD Accrued liabilities December 31, 2016 Derivatives not designated as Notional Fair Balance Sheet Location Assets: Foreign currency exchange contracts: Receive CAD/pay USD $ $ Accounts receivable, net Receive SGD/pay USD Accounts receivable, net Receive NOK/pay USD Accounts receivable, net Receive USD/pay CLP Accounts receivable, net Receive USD/pay COP Accounts receivable, net Liabilities: Foreign currency exchange contracts: Receive USD/pay GBP $ $ Accrued liabilities Receive USD/pay EUR Accrued liabilities Receive USD/pay AUD Accrued liabilities Receive USD/pay ZAR Accrued liabilities Receive USD/pay MXN Accrued liabilities Receive USD/pay BRL Accrued liabilities Receive USD/pay NZD Accrued liabilities The net (losses) gains on derivative instruments in the condensed consolidated statements of income were as follows: Amount of (loss) gain Three-months ended Derivatives not designated as Location of (loss) gain June 30, 2017 June 30, 2016 Foreign currency exchange contracts Interest and other (expense) income, net $ $ Amount of (loss) gain Six-months ended Derivatives not designated as Location of (loss) gain June 30, 2017 June 30, 2016 Foreign currency exchange contracts Interest and other (expense) income, net $ (9,467) $ 458

INVENTORIES

INVENTORIES	6 Months Ended
	Jun. 30, 2017
INVENTORIES
INVENTORIES	6. INVENTORIES Inventories consist of the following at: June 30, December 31, Raw materials $ $ Finished goods $ $

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET	6 Months Ended
	Jun. 30, 2017
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET	7. PROPERTY AND EQUIPMENT, NET Property and equipment consist of the following at: June 30, December 31, Land $ $ Leasehold improvements Furniture and fixtures Office and computer equipment Computer software Equipment Buildings Vehicles Less: accumulated depreciation and amortization $ $ Total depreciation and amortization expense recorded was $8.6 million and $7.5 million for the three-months ended June 30, 2017 and 2016, respectively. Total depreciation and amortization expense recorded was $16.8 million and $14.7 million for the six-months ended June 30, 2017 and 2016, respectively.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2017
GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL AND OTHER INTANGIBLE ASSETS	8. GOODWILL AND OTHER INTANGIBLE ASSETS The following is a roll-forward of goodwill for the six-months ended June 30, 2017 by reportable segment: Monster Strategic Other Total Balance at December 31, 2016 $ $ $ - $ Acquisitions - - - - Balance at June 30, 2017 $ $ $ - $ Intangible assets consist of the following at: June 30, December 31, Amortizing intangibles $ $ Accumulated amortization Non-amortizing intangibles $ $ Amortizing intangibles primarily consist of customer relationships. 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, generally five to seven years. Total amortization expense recorded was $3.0 million and $2.9 million for the three-months ended June 30, 2017 and 2016, respectively. Total amortization expense recorded was $6.0 million and $4.6 million for the six-months ended June 30, 2017 and 2016, respectively.

DISTRIBUTION AGREEMENTS

DISTRIBUTION AGREEMENTS	6 Months Ended
	Jun. 30, 2017
DISTRIBUTION AGREEMENTS
DISTRIBUTION AGREEMENTS	9. DISTRIBUTION AGREEMENTS 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. The Company incurred termination costs of $0.2 million and $25.3 million for the three-months ended June 30, 2017 and 2016, respectively. The Company incurred termination costs of $20.1 million and $28.7 million for the six-months ended June 30, 2017 and 2016, respectively. Such termination costs have been expensed in full and are included in operating expenses for the three- and six-months ended June 30, 2017 and 2016. 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 $10.2 million and $12.1 million for the three-months ended June 30, 2017 and 2016, respectively. Revenue recognized was $20.1 million and $20.2 million for the six-months ended June 30, 2017 and 2016, respectively.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2017
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	10. COMMITMENTS AND CONTINGENCIES The Company had purchase commitments aggregating approximately $32.6 million at June 30, 2017, 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 $146.0 million at June 30, 2017, which related primarily to sponsorships and other marketing activities. The Company had operating lease commitments aggregating approximately $18.3 million at June 30, 2017, which related primarily to warehouse and office space. In September 2016, the Company completed its acquisition of approximately 49 acres of land, located in Rialto, CA, for a purchase price of approximately $39.1 million. The Company is constructing an approximately 1,000,000 square-foot building, which it hopes to have LEED certified, to replace its current leased warehouse and distribution facilities located in Corona, CA. The Company has entered into an approximately $37.6 million guaranteed maximum price construction contract for the construction of the building of which $17.1 million remained outstanding as of June 30, 2017. In December 2016, the Company entered into a credit facility with HSBC Bank (China) Company Limited, Shanghai Branch consisting of a working capital line of credit under which the Company may borrow up to $4.0 million of non-collateralized debt. In February 2017, the working capital line limit was increased from $4.0 million to $9.0 million. Interest on borrowings under the line of credit is based on the People’s Bank of China benchmark lending rates multiplied by 1.05. As of June 30, 2017, the Company had $6.0 million outstanding on this line of credit including interest, which is included in accounts payable in the condensed consolidated balance sheet. Legal Proceedings Litigation – The Company has been named a defendant in numerous personal injury lawsuits, claiming that the death or other serious injury of the plaintiffs was caused by consumption of Monster Energy® brand energy drinks. The plaintiffs in these lawsuits allege strict product liability, negligence, fraudulent concealment, breach of implied warranties and wrongful death. The Company believes that each complaint is without merit and plans a vigorous defense. The Company also believes that any damages, if awarded, would not have a material adverse effect on the Company’s financial position or results of operations. State Attorney General Inquiry – In July 2012, the Company received a subpoena from 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 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. On January 13, 2017, the Court issued an opinion in which it agreed with certain Company arguments regarding the scope of the subpoena and the Attorney General’s investigation, but denied the motion to quash and granted the Attorney General’s cross-motion to compel compliance. 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. Furthermore, from time to time in the normal course of business, the Company is named in other litigation, including consumer class actions, intellectual property litigation and claims from prior 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 June 30, 2017, the Company’s condensed consolidated balance sheet includes accrued loss contingencies of approximately $1.5 million.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE LOSS	6 Months Ended
	Jun. 30, 2017
ACCUMULATED OTHER COMPREHENSIVE LOSS
ACCUMULATED OTHER COMPREHENSIVE LOSS	11. ACCUMULATED OTHER COMPREHENSIVE LOSS Changes in accumulated other comprehensive loss by component, after tax, for the six-months ended June 30, 2017 are as follows: Currency Unrealized Total Balance at December 31, 2016 $ $ $ Other comprehensive loss (gain) before reclassifications - - - Amounts reclassified from accumulated other comprehensive loss (gain) - - - Net current-period other comprehensive loss (gain) Balance at June 30, 2017 $ $ $

TREASURY STOCK

TREASURY STOCK	6 Months Ended
	Jun. 30, 2017
TREASURY STOCK
TREASURY STOCK	12. TREASURY STOCK On February 28, 2017, the Company’s Board of Directors authorized a new share repurchase program for the purchase of up to $500.0 million of our outstanding common stock (the “February 2017 Repurchase Plan”). As of August 8, 2017, no shares have been repurchased pursuant to the February 2017 Repurchase Plan. During the three-months ended June 30, 2017, 4,846 shares of common stock were purchased from employees in lieu of cash payments for options exercised or withholding taxes due, for a total amount of $0.2 million. While such purchases are considered common stock repurchases, they are not counted as purchases against the Company’s authorized share repurchase programs. Such shares are included in common stock in treasury in the accompanying condensed consolidated balance sheet at June 30, 2017.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2017
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	13. STOCK-BASED COMPENSATION The Company has two stock-based compensation plans under which shares were available for grant at June 30, 2017: the Monster Beverage Corporation 2011 Omnibus Incentive Plan (the “2011 Omnibus Incentive Plan”) and the Monster Beverage Corporation Stock 2017 Compensation Plan for Non-Employee Directors (the “2017 Directors Plan”). The Company recorded $12.8 million and $11.5 million of compensation expense relating to outstanding options, restricted stock awards, stock appreciation rights and restricted stock units during the three-months ended June 30, 2017 and 2016, respectively. The Company recorded $26.0 million and $21.6 million of compensation expense relating to outstanding options, restricted stock awards, stock appreciation rights and restricted stock units during the six-months ended June 30, 2017 and 2016, respectively. The excess tax benefit 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 June 30, 2017 and 2016 was $1.9 million and $2.0 million, respectively. The excess tax benefit 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 six-months ended June 30, 2017 and 2016 was $11.3 million and $3.6 million, respectively. In 2016, the Company adopted the Monster Beverage Deferred Compensation Plan (the “Deferred Compensation Plan”) (a sub plan to the 2011 Omnibus Incentive Plan). Deferrals under the Deferred Compensation Plan are unfunded and unsecured. As of June 30, 2017, deferrals under the Deferred Compensation Plan are solely comprised of cash compensation and equity compensation coming due after June 30, 2018 and are not material in the aggregate. During the quarter ending June 30, 2017, the Company adopted the Monster Beverage Corporation Deferred Compensation Plan for Non-Employee Directors (the “Non-Employee Director Deferral Plan”) (a sub-plan to the 2017 Directors Plan), pursuant to which non-employee directors may elect to defer cash and/or equity based compensation and to receive the deferred compensation, either at a pre-determined time in the future or upon departure from the Company’s Board of Directors, as provided under the Non-Employee Director Deferral Plan. Deferrals under the Non-Employee Director Deferral Plan are unfunded and unsecured. As of June 30, 2017, there were no deferrals under the Non-Employee Director Deferral Plan. Stock Options Under the Company’s stock-based compensation plans, all stock options granted as of June 30, 2017 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 June 30, Six-Months Ended June 30, 2017 2016 2017 2016 Dividend yield Expected volatility Risk-free interest rate Expected term 6.1 years 6.4 years 6.1 years 6.3 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 Outstanding at January 1, 2017 $ $ Granted 01/01/17 - 03/31/17 $ Granted 04/01/17 - 06/30/17 $ Exercised $ Cancelled or forfeited $ Outstanding at June 30, 2017 $ $ Vested and expected to vest in the future at June 30, 2017 $ $ Exercisable at June 30, 2017 $ $ The weighted-average grant-date fair value of options granted during the three-months ended June 30, 2017 and 2016 was $18.97 per share and $17.44 per share, respectively. The weighted-average grant-date fair value of options granted during the six-months ended June 30, 2017 and 2016 was $18.01 per share and $16.89 per share, respectively. The total intrinsic value of options exercised during the three-months ended June 30, 2017 and 2016 was $8.5 million and $10.9 million, respectively. The total intrinsic value of options exercised during the six-months ended June 30, 2017 and 2016 was $40.9 million and $21.4 million, respectively. Cash received from option exercises under all plans for the three-months ended June 30, 2017 and 2016 was approximately $5.5 million and $4.1 million, respectively. Cash received from option exercises under all plans for the six-months ended June 30, 2017 and 2016 was approximately $19.1 million and $8.1 million, respectively. At June 30, 2017, there was $101.2 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 3.0 years. Restricted Stock Awards and Restricted Stock Units The cost of stock-based compensation 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 Non-vested at January 1, 2017 $ Granted 01/01/17- 03/31/17 $ Granted 04/01/17- 06/30/17 $ Vested $ Forfeited/cancelled $ Non-vested at June 30, 2017 $ The weighted-average grant-date fair value of restricted stock units and restricted stock awards granted during the three-months ended June 30, 2017 and 2016 was $50.86 per share and $49.65 per share, respectively. The weighted-average grant-date fair value of restricted stock units and restricted stock awards granted during the six-months ended June 30, 2017 and 2016 was $46.65 per share and $44.71 per share, respectively. As of June 30, 2017, 0.5 million of restricted stock units and restricted stock awards are expected to vest over their respective terms. At June 30, 2017, total unrecognized compensation expense relating to non-vested restricted stock awards and non-vested restricted stock units was $20.4 million, which is expected to be recognized over a weighted-average period of 2.0 years.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2017
INCOME TAXES
INCOME TAXES	14. INCOME TAXES The following is a roll-forward of the Company’s total gross unrecognized tax benefits, not including interest and penalties, for the six-months ended June 30, 2017: Gross Unrecognized Tax Balance at December 31, 2016 $ 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 June 30, 2017 $ 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 June 30, 2017, the Company had approximately $1.1 million in accrued 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 any 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 August 7, 2015, the Internal Revenue Service (the “IRS”) began its examination of the Company’s U.S. federal income tax returns for the years ended December 31, 2012 and 2013. On October 18, 2016, the IRS began its examination of the Company’s U.S. federal income tax return for the year ended December 31, 2014. On March 27, 2017, the IRS began its examination of the Company’s U.S. federal income tax return for the year ended December 31, 2015. The Company is in various stages of examination with certain states and certain foreign jurisdictions. The Company’s 2012 through 2016 U.S. federal income tax returns are subject to examination by the IRS. The Company’s state income tax returns are subject to examination for the 2012 through 2016 tax years.

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2017
EARNINGS PER SHARE
EARNINGS PER SHARE	15. EARNINGS PER SHARE A reconciliation of the weighted-average shares used in the basic and diluted earnings per common share computations is presented below (in thousands): Three-Months Ended Six-Months Ended June 30, June 30, 2017 2016 2017 2016 Weighted-average shares outstanding: Basic Dilutive Diluted For the three-months ended June 30, 2017 and 2016, options and awards outstanding totaling 8.8 million shares and 2.0 million shares, respectively, were excluded from the calculations as their effect would have been antidilutive. For the six-months ended June 30, 2017 and 2016, options and awards outstanding totaling 8.4 million shares and 1.6 million shares, respectively, were excluded from the calculations as their effect would have been antidilutive.

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Jun. 30, 2017
SEGMENT INFORMATION
SEGMENT INFORMATION	16. SEGMENT INFORMATION The Company has three operating and reportable segments, (i) Monster Energy® Drinks segment (“Monster Energy® Drinks”), which is comprised of the Company’s Monster Energy® drinks, Monster Hydro TM energy drinks and Mutant® Super Soda drinks, (ii) Strategic Brands segment (“Strategic Brands”), which is comprised of the various energy drink brands acquired from The Coca-Cola Company (“TCCC”) in 2015 and (iii) Other segment (“Other”), which is comprised of certain products sold by American Fruits & Flavors LLC, a wholly-owned subsidiary of the Company, to independent third-party customers. The Company’s Monster Energy® Drinks segment generates net operating revenues by selling ready-to-drink packaged drinks primarily to bottlers and full service beverage distributors. In some cases, the Company sells directly to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience chains, food service customers and the military. The Company’s Strategic Brands segment primarily generates net operating revenues by selling “concentrates” and/or “beverage bases” to authorized bottling and canning operations. Such bottlers generally combine the concentrates and/or beverage bases with sweeteners, water and other ingredients to produce ready-to-drink packaged energy drinks. The ready-to-drink packaged energy drinks are then sold to other bottlers, full service distributors or retailers, including, retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience chains, food service customers, drug stores and the military. To a lesser extent, the Company’s Strategic Brands segment generates net operating revenues by selling ready-to-drink packaged energy drinks to bottlers and full service beverage distributors. Generally, the Monster Energy® Drinks segment generates higher per case net operating revenues, but lower per case gross profit margins than the Strategic Brands segment. Corporate and unallocated amounts that do not relate to a reportable segment have been allocated to “Corporate & Unallocated.” No asset information, other than goodwill and other intangible assets, has been provided for in the Company’s reportable segments as management does not measure or allocate such assets on a segment basis. The net revenues derived from the Company’s reportable segments and other financial information related thereto for the three- and six-months ended June 30, 2017 and 2016 are as follows: Three-Months Ended Six-Months Ended June 30, June 30, 2017 2016 2017 2016 Net sales: Monster Energy® Drinks (1) $ $ $ $ Strategic Brands Other Corporate and unallocated - - - - $ $ $ $ Three-Months Ended Six-Months Ended June 30, June 30, 2017 2016 2017 2016 Operating Income: Monster Energy® Drinks (1) (2) $ $ $ $ Strategic Brands Other Corporate and unallocated $ $ $ $ Three-Months Ended Six-Months Ended June 30, June 30, 2017 2016 2017 2016 Income before tax: Monster Energy® Drinks (1) (2) $ $ $ $ Strategic Brands Other Corporate and unallocated $ $ $ $ (1) Includes $10.2 million and $12.1 million for the three-months ended June 30, 2017 and 2016, respectively, related to the recognition of deferred revenue. Includes $20.1 million and $20.2 million for the six-months ended June 30, 2017 and 2016, respectively, related to the recognition of deferred revenue. (2) Includes $0.2 million and $25.3 million for the three-months ended June 30, 2017 and 2016, respectively, related to distributor termination costs. Includes $20.1 million and $28.7 million for the six-months ended June 30, 2017 and 2016, respectively, related to distributor termination costs. Three-Months Ended Six-Months Ended June 30, June 30, 2017 2016 2017 2016 Depreciation and amortization: Monster Energy® Drinks $ $ $ $ Strategic Brands Other Corporate and unallocated $ $ $ $ June 30, December 31, Goodwill and other intangible assets: Monster Energy® Drinks $ $ Strategic Brands Other Corporate and unallocated - - $ $ Corporate and unallocated expenses for the three-months ended June 30, 2017 include $38.4 million of payroll costs, of which $12.8 million was attributable to stock-based compensation expenses (see Note 13, “Stock-Based Compensation”), as well as $14.0 million attributable to professional service expenses, including accounting and legal costs, and $8.6 million of other operating expenses. Corporate and unallocated expenses for the three-months ended June 30, 2016 include $31.1 million of payroll costs, of which $11.5 million was attributable to stock-based compensation expenses (see Note 13, “Stock-Based Compensation”), as well as $19.6 million attributable to professional service expenses, including accounting and legal costs, and $8.7 million of other operating expenses. Corporate and unallocated expenses for the six-months ended June 30, 2017 include $76.1 million of payroll costs, of which $26.0 million was attributable to stock-based compensation expenses (see Note 13, “Stock-Based Compensation”), as well as $26.4 million attributable to professional service expenses, including accounting and legal costs, and $17.3 million of other operating expenses. Corporate and unallocated expenses for the six-months ended June 30, 2016 include $59.5 million of payroll costs, of which $21.5 million was attributable to stock-based compensation expenses (see Note 13, “Stock-Based Compensation”), as well as $35.5 million attributable to professional service expenses, including accounting and legal costs, and $15.2 million of other operating expenses. TCCC, through certain wholly-owned subsidiaries (the “TCCC Subsidiaries”), accounted for approximately 17% and 42% of the Company’s net sales for the three-months ended June 30, 2017 and 2016, respectively. The TCCC Subsidiaries accounted for approximately 25% and 44% of the Company’s net sales for the six-months ended June 30, 2017 and 2016, respectively. As part of TCCC’s North America Refranchising initiative (the “North America Refranchising”), the territories of certain TCCC Subsidiaries have been transitioned to certain independent/non wholly-owned TCCC bottlers/distributors. Accordingly, the Company’s percentage of net sales classified as sales to the TCCC Subsidiaries decreased for three- and six-months ended June 30, 2017. Net sales to customers outside the United States amounted to $247.9 million and $200.2 million for the three-months ended June 30, 2017 and 2016, respectively. Net sales to customers outside the United States amounted to $438.8 million and $349.3 million for the six-months ended June 30, 2017 and 2016, respectively.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2017
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	17. RELATED PARTY TRANSACTIONS TCCC controls more than 10% of the voting interests of the Company. TCCC, through the TCCC Subsidiaries and through certain TCCC affiliated companies (the “TCCC Affiliates”) purchases and distributes certain of the Company’s products both domestically and in certain international territories. The Company also pays TCCC a commission based on certain sales within the TCCC distribution network. TCCC commissions, based on sales to the TCCC Affiliates for the three-months ended June 30, 2017 and 2016, were $12.8 million and $8.3 million, respectively. TCCC commissions, based on sales to the TCCC Affiliates for the six-months ended June 30, 2017 and 2016, were $20.7 million and $10.9 million, respectively. TCCC commissions, based on sales to the TCCC Subsidiaries, are accounted for as a reduction to revenue and are reported in net sales to the TCCC Subsidiaries. Net sales to the TCCC Subsidiaries for the three-months ended June 30, 2017 and 2016 were $154.5 million and $344.0 million, respectively. Net sales to the TCCC Subsidiaries for the six-months ended June 30, 2017 and 2016 were $409.7 million and $659.2 million, respectively. As part of the North America Refranchising, the territories of certain TCCC Subsidiaries have been transitioned to certain independent/non wholly-owned TCCC bottlers/distributors. Accordingly, the Company’s net sales classified as sales to the TCCC Subsidiaries decreased for three- and six-months ended June 30, 2017. The Company also purchases concentrates from TCCC which are then sold to both the TCCC Affiliates and the TCCC Subsidiaries. Concentrate purchases from TCCC were $6.6 million and $8.0 million for the three-months ended June 30, 2017 and 2016, respectively. Concentrate purchases from TCCC were $12.5 million and $14.7 million for the six-months ended June 30, 2017 and 2016, respectively. Certain TCCC Subsidiaries also contract manufacture certain of the Company’s Monster Energy® brand energy drinks as well as Mutant® Super Soda drinks. Contract manufacturing expenses were $2.9 million and $2.2 million for the three-months ended June 30, 2017 and 2016, respectively. Contract manufacturing expenses were $5.1 million and $3.8 million for the six-months ended June 30, 2017 and 2016, respectively. Accounts receivable, accounts payable and accrued promotional allowances related to the TCCC Subsidiaries are as follows at: June 30, December 31, Accounts receivable, net $ $ TCCC transaction receivable $ - $ Accounts payable $ $ Accrued promotional allowances $ $ 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 June 30, 2017 and 2016 were $1.2 million and $0.2 million, respectively. Expenses incurred with such company in connection with promotional materials purchased during the six-months ended June 30, 2017 and 2016 were $1.4 million and $0.3 million, respectively.

INVESTMENTS (Tables)

INVESTMENTS (Tables)	6 Months Ended
	Jun. 30, 2017
INVESTMENTS
Summary of investments in available-for-sale	June 30, 2017 Amortized Cost Gross Gross Fair Continuous Continuous Available-for-sale Short-term: Commercial paper $ $ $ - $ $ - $ - Certificates of deposit - - - - Municipal securities - U.S. government agency securities - - Variable rate demand notes - - - - Long-term: Municipal securities - - U.S. government agency securities - - Total $ $ $ $ $ $ - December 31, 2016 Amortized Cost Gross Gross Fair Continuous Continuous Available-for-sale Short-term: Commercial paper $ $ - $ - $ $ - $ - Municipal securities - - U.S. government agency securities - - Variable rate demand notes - - - - Long-term: Municipal securities - - Total $ $ - $ $ $ $ -
Summarizes the underlying contractual maturities of the Company's investments	June 30, 2017 December 31, 2016 Amortized Cost Fair Value Amortized Cost Fair Value Less than 1 year: Commercial paper $ $ $ $ Certificates of deposit - - Municipal securities U.S. government agency securities Due 1 -10 years: Municipal securities U.S. government agency securities - - Variable rate demand notes Due 11 - 20 years: Variable rate demand notes Due 21 - 30 years: Variable rate demand notes Due 31 - 40 years: Variable rate demand notes - - Total $ $ $ $

FAIR VALUE OF CERTAIN FINANCI26

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2017
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Schedule of financial assets and liabilities recorded at fair value on a recurring basis	June 30, 2017 Level 1 Level 2 Level 3 Total Cash $ $ - $ - $ Money market funds - - Certificates of deposit - - Commercial paper - - Variable rate demand notes - - Municipal securities - - U.S. government agency securities - - Foreign currency derivatives - - Total $ $ $ - $ Amounts included in: Cash and cash equivalents $ $ $ - $ Short-term investments - - Accounts receivable, net - - Investments - - Accrued liabilities - ) - ) Total $ $ $ - $ December 31, 2016 Level 1 Level 2 Level 3 Total Cash $ $ - $ - $ Money market funds - - Commercial paper - - Variable rate demand notes - - Municipal securities - - U.S. government agency securities - - Foreign currency derivatives - ) - ) Total $ $ $ - $ Amounts included in: Cash and cash equivalents $ $ $ - $ Short-term investments - - Accounts receivable, net - - Investments - - Accrued liabilities - ) - ) Total $ $ $ - $

DERIVATIVE INSTRUMENTS AND HE27

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)	6 Months Ended
	Jun. 30, 2017
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	June 30, 2017 Derivatives not designated as Notional Fair Balance Sheet Location Assets: Foreign currency exchange contracts: Receive CAD/pay USD $ $ Accounts receivable, net Receive USD/pay ZAR Accounts receivable, net Receive USD/pay MXN Accounts receivable, net Receive SGD/pay USD Accounts receivable, net Receive USD/pay BRL Accounts receivable, net Receive USD/pay CLP Accounts receivable, net Receive USD/pay COP Accounts receivable, net Liabilities: Foreign currency exchange contracts: Receive USD/pay GBP $ $ Accrued liabilities Receive USD/pay EUR Accrued liabilities Receive USD/pay AUD Accrued liabilities Receive USD/pay NZD Accrued liabilities December 31, 2016 Derivatives not designated as Notional Fair Balance Sheet Location Assets: Foreign currency exchange contracts: Receive CAD/pay USD $ $ Accounts receivable, net Receive SGD/pay USD Accounts receivable, net Receive NOK/pay USD Accounts receivable, net Receive USD/pay CLP Accounts receivable, net Receive USD/pay COP Accounts receivable, net Liabilities: Foreign currency exchange contracts: Receive USD/pay GBP $ $ Accrued liabilities Receive USD/pay EUR Accrued liabilities Receive USD/pay AUD Accrued liabilities Receive USD/pay ZAR Accrued liabilities Receive USD/pay MXN Accrued liabilities Receive USD/pay BRL Accrued liabilities Receive USD/pay NZD Accrued liabilities
Schedule of net gains (losses) on derivative instruments in the condensed consolidated statements of income	Amount of (loss) gain Three-months ended Derivatives not designated as Location of (loss) gain June 30, 2017 June 30, 2016 Foreign currency exchange contracts Interest and other (expense) income, net $ $ Amount of (loss) gain Six-months ended Derivatives not designated as Location of (loss) gain June 30, 2017 June 30, 2016 Foreign currency exchange contracts Interest and other (expense) income, net $ (9,467) $ 458

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2017
INVENTORIES
Schedule of inventories	June 30, December 31, Raw materials $ $ Finished goods $ $

PROPERTY AND EQUIPMENT, NET (Ta

PROPERTY AND EQUIPMENT, NET (Tables)	6 Months Ended
	Jun. 30, 2017
PROPERTY AND EQUIPMENT, NET
Schedule of property and equipment	June 30, December 31, Land $ $ Leasehold improvements Furniture and fixtures Office and computer equipment Computer software Equipment Buildings Vehicles Less: accumulated depreciation and amortization $ $

GOODWILL AND OTHER INTANGIBLE30

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 30, 2017
GOODWILL AND OTHER INTANGIBLE ASSETS
Schedule of Goodwill	Monster Strategic Other Total Balance at December 31, 2016 $ $ $ - $ Acquisitions - - - - Balance at June 30, 2017 $ $ $ - $
Schedule of intangibles	June 30, December 31, Amortizing intangibles $ $ Accumulated amortization Non-amortizing intangibles $ $

ACCUMULATED OTHER COMPREHENSI31

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)	6 Months Ended
	Jun. 30, 2017
ACCUMULATED OTHER COMPREHENSIVE LOSS
Changes in accumulated other comprehensive loss by component, after tax	Currency Unrealized Total Balance at December 31, 2016 $ $ $ Other comprehensive loss (gain) before reclassifications - - - Amounts reclassified from accumulated other comprehensive loss (gain) - - - Net current-period other comprehensive loss (gain) Balance at June 30, 2017 $ $ $

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2017
STOCK-BASED COMPENSATION
Schedule of weighted-average assumptions used to estimate the fair value of options granted	Three-Months Ended June 30, Six-Months Ended June 30, 2017 2016 2017 2016 Dividend yield Expected volatility Risk-free interest rate Expected term 6.1 years 6.4 years 6.1 years 6.3 years
Summary of Company's activities with respect to its stock option plans	Options Number of Weighted- Weighted- Aggregate Outstanding at January 1, 2017 $ $ Granted 01/01/17 - 03/31/17 $ Granted 04/01/17 - 06/30/17 $ Exercised $ Cancelled or forfeited $ Outstanding at June 30, 2017 $ $ Vested and expected to vest in the future at June 30, 2017 $ $ Exercisable at June 30, 2017 $ $
Summary of Company's activities with respect to non-vested restricted stock units	Number of Weighted Non-vested at January 1, 2017 $ Granted 01/01/17- 03/31/17 $ Granted 04/01/17- 06/30/17 $ Vested $ Forfeited/cancelled $ Non-vested at June 30, 2017 $

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
	Jun. 30, 2017
INCOME TAXES
Schedule of roll-forward of the Company's total gross unrecognized tax benefits, not including interest and penalties	Gross Unrecognized Tax Balance at December 31, 2016 $ 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 June 30, 2017 $

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2017
EARNINGS PER SHARE
Schedule of reconciliation of the weighted average shares used in the basic and diluted earnings per common share computations	A reconciliation of the weighted-average shares used in the basic and diluted earnings per common share computations is presented below (in thousands): Three-Months Ended Six-Months Ended June 30, June 30, 2017 2016 2017 2016 Weighted-average shares outstanding: Basic Dilutive Diluted

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2017
SEGMENT INFORMATION
Schedule of net revenues and other financial information by segment	Three-Months Ended Six-Months Ended June 30, June 30, 2017 2016 2017 2016 Net sales: Monster Energy® Drinks (1) $ $ $ $ Strategic Brands Other Corporate and unallocated - - - - $ $ $ $ Three-Months Ended Six-Months Ended June 30, June 30, 2017 2016 2017 2016 Operating Income: Monster Energy® Drinks (1) (2) $ $ $ $ Strategic Brands Other Corporate and unallocated $ $ $ $ Three-Months Ended Six-Months Ended June 30, June 30, 2017 2016 2017 2016 Income before tax: Monster Energy® Drinks (1) (2) $ $ $ $ Strategic Brands Other Corporate and unallocated $ $ $ $ (1) Includes $10.2 million and $12.1 million for the three-months ended June 30, 2017 and 2016, respectively, related to the recognition of deferred revenue. Includes $20.1 million and $20.2 million for the six-months ended June 30, 2017 and 2016, respectively, related to the recognition of deferred revenue. (2) Includes $0.2 million and $25.3 million for the three-months ended June 30, 2017 and 2016, respectively, related to distributor termination costs. Includes $20.1 million and $28.7 million for the six-months ended June 30, 2017 and 2016, respectively, related to distributor termination costs. Three-Months Ended Six-Months Ended June 30, June 30, 2017 2016 2017 2016 Depreciation and amortization: Monster Energy® Drinks $ $ $ $ Strategic Brands Other Corporate and unallocated $ $ $ $ June 30, December 31, Goodwill and other intangible assets: Monster Energy® Drinks $ $ Strategic Brands Other Corporate and unallocated - - $ $

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	6 Months Ended
	Jun. 30, 2017
RELATED PARTY TRANSACTIONS
Schedule of related party transactions	June 30, December 31, Accounts receivable, net $ $ TCCC transaction receivable $ - $ Accounts payable $ $ Accrued promotional allowances $ $

INVESTMENTS (Details)

INVESTMENTS (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Available-for-sale
Amortized Cost	$ 372,582	$ 223,144
Gross Unrealized Holding Gains	11
Gross Unrealized Holding Losses	103	196
Fair Value	372,490	222,948
Continuous Unrealized Loss Position less than 12 Months	103	196
Short-term | Commercial paper
Available-for-sale
Amortized Cost	73,037	40,382
Gross Unrealized Holding Gains	3
Fair Value	73,040	40,382
Short-term | Certificates of deposit
Available-for-sale
Amortized Cost	37,210
Fair Value	37,210
Short-term | Municipal securities
Available-for-sale
Amortized Cost	152,287	140,379
Gross Unrealized Holding Gains	8
Gross Unrealized Holding Losses	42	181
Fair Value	152,253	140,198
Continuous Unrealized Loss Position less than 12 Months	42	181
Short-term | U.S. government agency securities
Available-for-sale
Amortized Cost	28,465	26,057
Gross Unrealized Holding Losses	22	6
Fair Value	28,443	26,051
Continuous Unrealized Loss Position less than 12 Months	22	6
Short-term | Variable rate demand notes
Available-for-sale
Amortized Cost	32,905	13,923
Fair Value	32,905	13,923
Long-term | Municipal securities
Available-for-sale
Amortized Cost	32,704	2,403
Gross Unrealized Holding Losses	17	9
Fair Value	32,687	2,394
Continuous Unrealized Loss Position less than 12 Months	17	$ 9
Long-term | U.S. government agency securities
Available-for-sale
Amortized Cost	15,974
Gross Unrealized Holding Losses	22
Fair Value	15,952
Continuous Unrealized Loss Position less than 12 Months	$ 22

INVESTMENTS - Maturity Period (

INVESTMENTS - Maturity Period (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Investments
Amortized Cost	$ 372,582	$ 223,144
Fair Value	372,490	222,948
Commercial paper | Less than 1 year
Investments
Amortized Cost	73,037	40,382
Fair Value	73,040	40,382
Certificates of deposit | Less than 1 year
Investments
Amortized Cost	37,210
Fair Value	37,210
Municipal securities | Less than 1 year
Investments
Amortized Cost	152,287	140,379
Fair Value	152,253	140,198
Municipal securities | Due 1 - 10 years
Investments
Amortized Cost	32,704	2,403
Fair Value	32,687	2,394
U.S. government agency securities | Less than 1 year
Investments
Amortized Cost	28,465	26,057
Fair Value	28,443	26,051
U.S. government agency securities | Due 1 - 10 years
Investments
Amortized Cost	15,974
Fair Value	15,952
Variable rate demand notes | Due 1 - 10 years
Investments
Amortized Cost	3,918	3,917
Fair Value	3,918	3,917
Variable rate demand notes | Due 11 - 20 years
Investments
Amortized Cost	10,006	6,003
Fair Value	10,006	6,003
Variable rate demand notes | Due 21 - 30 years
Investments
Amortized Cost	14,979	4,003
Fair Value	14,979	$ 4,003
Variable rate demand notes | Due 31 - 40 years
Investments
Amortized Cost	4,002
Fair Value	$ 4,002

FAIR VALUE OF CERTAIN FINANCI39

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES - Assets - Recurring Basis (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Fair value amounts included in the carrying value of
Cash and cash equivalents	$ 777,655	$ 377,582	$ 434,769	$ 2,175,417
Short-term investments	323,851	220,554
Investments	48,639	2,394
Asset transfers between Level 1 and Level 2 measurements	0	0
Total fair value
Fair value amounts included in the carrying value of
Cash and cash equivalents	777,655	377,582
Short-term investments	323,851	220,554
Accounts receivable, net	853	236
Investments	48,639	2,394
Accrued liabilities	(371)	(764)
Assets measured at fair value	1,150,627	600,002
Cash	311,631	278,972
Foreign currency derivatives	482	(528)
Money market funds | Total fair value
Fair value amounts included in the carrying value of
Assets measured at fair value	363,656	76,112
Certificates of deposit | Total fair value
Fair value amounts included in the carrying value of
Assets measured at fair value	57,756
Commercial paper | Total fair value
Fair value amounts included in the carrying value of
Assets measured at fair value	90,257	47,855
Variable rate demand notes | Total fair value
Fair value amounts included in the carrying value of
Assets measured at fair value	32,905	13,923
Municipal securities | Total fair value
Fair value amounts included in the carrying value of
Assets measured at fair value	234,558	157,617
U.S. government agency securities | Total fair value
Fair value amounts included in the carrying value of
Assets measured at fair value	59,382	26,051
Level 1
Fair value amounts included in the carrying value of
Cash and cash equivalents	675,287	355,084
Assets measured at fair value	675,287	355,084
Cash	311,631	278,972
Level 1 | Money market funds
Fair value amounts included in the carrying value of
Assets measured at fair value	363,656	76,112
Level 2
Fair value amounts included in the carrying value of
Cash and cash equivalents	102,368	22,498
Short-term investments	323,851	220,554
Accounts receivable, net	853	236
Investments	48,639	2,394
Accrued liabilities	(371)	(764)
Assets measured at fair value	475,340	244,918
Foreign currency derivatives	482	(528)
Level 2 | Certificates of deposit
Fair value amounts included in the carrying value of
Assets measured at fair value	57,756
Level 2 | Commercial paper
Fair value amounts included in the carrying value of
Assets measured at fair value	90,257	47,855
Level 2 | Variable rate demand notes
Fair value amounts included in the carrying value of
Assets measured at fair value	32,905	13,923
Level 2 | Municipal securities
Fair value amounts included in the carrying value of
Assets measured at fair value	234,558	157,617
Level 2 | U.S. government agency securities
Fair value amounts included in the carrying value of
Assets measured at fair value	$ 59,382	$ 26,051

DERIVATIVE INSTRUMENTS AND HE40

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Notional Amount and Fair Value (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Foreign currency exchange contracts | Maximum
Derivative Instruments and Hedging Activities
Term of derivative instrument	1 month
Derivatives not designated as hedging instruments | Receive CAD/pay USD | Accounts receivable, net
Derivative Instruments and Hedging Activities
Notional amount, Assets	$ 20,193	$ 22,314
Fair Value, Assets	104	173
Derivatives not designated as hedging instruments | Receive USD/pay ZAR | Accounts receivable, net
Derivative Instruments and Hedging Activities
Notional amount, Assets	20,664
Fair Value, Assets	365
Derivatives not designated as hedging instruments | Receive USD/pay ZAR | Accrued liabilities
Derivative Instruments and Hedging Activities
Notional amount, Liabilities		20,405
Fair Value, Liabilities		(296)
Derivatives not designated as hedging instruments | Receive USD/pay MXN | Accounts receivable, net
Derivative Instruments and Hedging Activities
Notional amount, Assets	19,948
Fair Value, Assets	336
Derivatives not designated as hedging instruments | Receive USD/pay MXN | Accrued liabilities
Derivative Instruments and Hedging Activities
Notional amount, Liabilities		25,864
Fair Value, Liabilities		(4)
Derivatives not designated as hedging instruments | Receive SGD/pay USD | Accounts receivable, net
Derivative Instruments and Hedging Activities
Notional amount, Assets	10,091	7,915
Fair Value, Assets	7	24
Derivatives not designated as hedging instruments | Receive USD/pay BRL | Accounts receivable, net
Derivative Instruments and Hedging Activities
Notional amount, Assets	4,589
Fair Value, Assets	25
Derivatives not designated as hedging instruments | Receive USD/pay BRL | Accrued liabilities
Derivative Instruments and Hedging Activities
Notional amount, Liabilities		3,138
Fair Value, Liabilities		(3)
Derivatives not designated as hedging instruments | Receive USD/pay CLP | Accounts receivable, net
Derivative Instruments and Hedging Activities
Notional amount, Assets	4,747	4,094
Fair Value, Assets	2	9
Derivatives not designated as hedging instruments | Receive USD/pay COP | Accounts receivable, net
Derivative Instruments and Hedging Activities
Notional amount, Assets	1,906	2,330
Fair Value, Assets	14	2
Derivatives not designated as hedging instruments | Receive USD/pay GBP | Accrued liabilities
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	17,728	7,718
Fair Value, Liabilities	(118)	(57)
Derivatives not designated as hedging instruments | Receive USD/pay EUR | Accrued liabilities
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	19,834	29,621
Fair Value, Liabilities	(62)	(325)
Derivatives not designated as hedging instruments | Receive USD/pay AUD | Accrued liabilities
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	24,791	15,135
Fair Value, Liabilities	(186)	(74)
Derivatives not designated as hedging instruments | Receive USD/pay NZD | Accrued liabilities
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	1,971	2,076
Fair Value, Liabilities	$ (5)	(5)
Derivatives not designated as hedging instruments | Receive NOK/pay USD | Accounts receivable, net
Derivative Instruments and Hedging Activities
Notional amount, Assets		2,138
Fair Value, Assets		$ 28

DERIVATIVE INSTRUMENTS AND HE41

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Nonhedging Designation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Derivatives not designated as hedging instruments | Foreign currency exchange contracts | Interest and other income, net
Net (losses) gains on derivative instruments
Amount of (loss) gain recognized in income on derivatives	$ (4,439)	$ 141	$ (9,467)	$ 458

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
INVENTORIES
Raw materials	$ 79,924	$ 58,658
Finished goods	110,676	103,313
Inventories, net	$ 190,600	$ 161,971

PROPERTY AND EQUIPMENT, NET (De

PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Property and equipment, net
Property and equipment, gross	$ 335,252		$ 335,252		$ 283,252
Less: accumulated depreciation and amortization	(123,697)		(123,697)		(109,909)
Property and equipment, net	211,555		211,555		173,343
Total depreciation and amortization expense	8,600	$ 7,500	16,800	$ 14,700
Land
Property and equipment, net
Property and equipment, gross	47,373		47,373		46,596
Leasehold improvements
Property and equipment, net
Property and equipment, gross	3,906		3,906		2,687
Furniture and fixtures
Property and equipment, net
Property and equipment, gross	4,467		4,467		3,635
Office and computer equipment
Property and equipment, net
Property and equipment, gross	12,598		12,598		11,701
Computer software
Property and equipment, net
Property and equipment, gross	3,411		3,411		3,274
Equipment
Property and equipment, net
Property and equipment, gross	129,907		129,907		114,230
Buildings
Property and equipment, net
Property and equipment, gross	98,043		98,043		69,547
Vehicles
Property and equipment, net
Property and equipment, gross	$ 35,547		$ 35,547		$ 31,582

GOODWILL AND OTHER INTANGIBLE44

GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Goodwill
Goodwill, Beginning Balance			$ 1,331,643
Goodwill, Ending Balance	$ 1,331,643		1,331,643
Amortizing intangibles	71,377		71,377		$ 71,290
Accumulated amortization	(20,459)		(20,459)		(14,535)
Amortizing intangibles, net	50,918		50,918		56,755
Non-amortizing intangibles	981,956		981,956		975,880
Intangible, net	1,032,874		1,032,874		$ 1,032,635
Amortization of in intangible assets	3,000	$ 2,900	$ 6,000	$ 4,600
Minimum
Goodwill
Useful life of intangible assets			5 years
Maximum
Goodwill
Useful life of intangible assets			7 years
Monster Energy Drinks
Goodwill
Goodwill, Beginning Balance			$ 693,644
Goodwill, Ending Balance	693,644		693,644
Strategic Brands
Goodwill
Goodwill, Beginning Balance			637,999
Goodwill, Ending Balance	637,999		637,999
Other
Goodwill
Goodwill, Ending Balance

DISTRIBUTION AGREEMENTS (Detail

DISTRIBUTION AGREEMENTS (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
DISTRIBUTION AGREEMENTS
Termination costs	$ 0.2	$ 25.3	$ 20.1	$ 28.7
Distribution agreement, revenue recognition period			20 years
Revenue recognized	$ 10.2	$ 12.1	$ 20.1	$ 20.2

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Commitments and obligations (Details) $ in Millions	1 Months Ended	6 Months Ended
	Sep. 30, 2016USD ($)a	Jun. 30, 2017USD ($)ft²
Commitments and Contingencies
Aggregate contractual obligations		$ 146
Aggregate operating lease commitments		$ 18.3
Land | Purchase Agreement
Commitments and Contingencies
Acres of land | a	49
Purchase agreement to acquire real estate property	$ 39.1
Building and Building Improvements
Commitments and Contingencies
Area of real estate property | ft²		1,000,000
Guaranteed Maximum Purchase Price		$ 37.6
Guaranteed maximum construction price, remaining amount		17.1
Raw materials
Commitments and Contingencies
Purchase Commitments		$ 32.6
Period over which obligations will be paid		1 year

COMMITMENTS AND CONTINGENCIES47

COMMITMENTS AND CONTINGENCIES - Line of Credit Facility (Details) - Line of credit - HSBC China $ in Millions	1 Months Ended
	Dec. 31, 2016USD ($)	Jun. 30, 2017USD ($)	Feb. 28, 2017USD ($)
Commitments and Contingencies
Maximum borrowing capacity	$ 4		$ 9
Accounts payable
Commitments and Contingencies
Amount outstanding		$ 6
People's Bank of China
Commitments and Contingencies
Effective interest rate on borrowing	People's Bank of China
Multiplier for calculating effective rate from benchmark rate	1.05

COMMITMENTS AND CONTINGENCIES48

COMMITMENTS AND CONTINGENCIES - Loss Contingencies (Details) $ in Millions	Jun. 30, 2017USD ($)
COMMITMENTS AND CONTINGENCIES
Accrued loss contingencies	$ 1.5

ACCUMULATED OTHER COMPREHENSI49

ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)
Components of accumulated other comprehensive loss:
Balance at the beginning of the period	$ 23,249
Net current-period other comprehensive loss (gain)	(6,416)
Balance at the end of the period	16,833
Currency Translation Losses
Components of accumulated other comprehensive loss:
Balance at the beginning of the period	23,056
Net current-period other comprehensive loss (gain)	(6,311)
Balance at the end of the period	16,745
Unrealized Gains (Losses) on Available-for-Sale Securities
Components of accumulated other comprehensive loss:
Balance at the beginning of the period	193
Net current-period other comprehensive loss (gain)	(105)
Balance at the end of the period	$ 88

TREASURY STOCK (Details)

TREASURY STOCK (Details) - USD ($) $ in Thousands	Aug. 08, 2017	Jun. 30, 2017	Feb. 28, 2017
Equity, Class of Treasury Stock
Number of shares repurchased of common stock from employees in lieu of cash or withholding taxes due		4,846
Cash payment for repurchase of common stock from employees in lieu of cash or withholding taxes due		$ 200
February 2017 Repurchase Plan
Equity, Class of Treasury Stock
Stock repurchase program, authorized amount			$ 500,000
Common stock repurchased (in shares)	0

STOCK-BASED COMPENSATION - Plan

STOCK-BASED COMPENSATION - Plans (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)plan	Jun. 30, 2016USD ($)
Stock-based compensation
Stock-based compensation plans | plan			2
Compensation expense on share-based plans	$ 12.8	$ 11.5	$ 26	$ 21.6
Excess tax benefit realized for tax deductions from non-qualified stock option exercises and disqualifying dispositions of incentive stock options	1.9	$ 2	11.3	$ 3.6
Non-Employee Director Deferral Plan
Stock-based compensation
Deferrals	$ 0		$ 0

STOCK-BASED COMPENSATION - Fair

STOCK-BASED COMPENSATION - Fair Value Assumptions (Details) - Stock options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2017	Mar. 31, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Weighted-average assumptions used to estimate the fair value of options granted
Dividend yield (as a percent)	0.00%		0.00%	0.00%	0.00%
Expected volatility (as a percent)	36.50%		36.20%	36.60%	36.20%
Risk-free interest rate (as a percent)	1.80%		1.30%	2.10%	1.40%
Expected term	6 years 1 month 6 days		6 years 4 months 24 days	6 years 1 month 6 days	6 years 3 months 18 days
Stock Options, Number of Shares
Balance at the beginning of the period (in shares)		22,643		22,643
Granted (in shares)	26	1,319
Exercised (in shares)				(1,278)
Cancelled or forfeited (in shares)				(299)
Balance at the end of the period (in shares)	22,411			22,411		22,643
Vested and expected to vest in the future at the end of the period (in shares)	21,157			21,157
Exercisable at the end of the period (in shares)	13,135			13,135
Stock options, Weighted-Average Exercise Price Per Share
Balance at the beginning of the period (in dollars per share)		$ 23.55		$ 23.55
Granted (in dollars per share)	$ 49.71	$ 45.94
Exercised (in dollars per share)				14.94
Cancelled or forfeited (in dollars per share)				40.47
Balance at the end of the period (in dollars per share)	25.16			25.16		$ 23.55
Vested and expected to vest in the future at the end of the period (in dollars per share)	24.12			24.12
Exercisable at the end of the period (in dollars per share)	$ 14.33			$ 14.33
Weighted-Average Remaining Contractual Term
Balance at the beginning of the period				5 years 7 months 6 days		5 years 9 months 18 days
Balance at the end of the period				5 years 7 months 6 days		5 years 9 months 18 days
Vested and expected to vest in the future at the end of the period				5 years 4 months 24 days
Exercisable at the end of the period				3 years 8 months 12 days
Aggregate Intrinsic Value
Balance at the beginning of the period		$ 474,739		$ 474,739
Balance at the end of the period	$ 549,689			549,689		$ 474,739
Vested and expected to vest in the future at the end of the period	540,993			540,993
Exercisable at the end of the period	$ 464,352			$ 464,352

STOCK-BASED COMPENSATION - Equi

STOCK-BASED COMPENSATION - Equity Awards (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2017	Mar. 31, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Stock options
Stock-based compensation
Weighted-average grant-date fair value of options granted (in dollars per share)	$ 18.97		$ 17.44	$ 18.01	$ 16.89
Total intrinsic value of options exercised	$ 8.5		$ 10.9	$ 40.9	$ 21.4
Cash received from option exercises	5.5		$ 4.1	19.1	$ 8.1
Total unrecognized compensation expense related to non-vested shares granted to employees	$ 101.2			$ 101.2
Cost expected to be recognized over a weighted-average period				3 years
Stock units expected to vest (in shares)	21,157			21,157
Restricted stock units
Stock-based compensation
Total unrecognized compensation expense related to non-vested shares granted to employees	$ 20.4			$ 20.4
Cost expected to be recognized over a weighted-average period				2 years
Stock units expected to vest (in shares)	500			500
Number of Shares
Non-vested at the beginning of the period (in shares)		556		556
Granted (in shares)	23	252
Vested (in shares)				(283)
Forfeited/cancelled (in shares)				(2)
Non-vested at the end of the period (in shares)	546			546
Weighted Average Grant-Date Fair Value
Non-vested at the beginning of the period (in dollars per share)		$ 39.95		$ 39.95
Granted (in dollars per share)	$ 50.86	$ 46.27	$ 49.65	46.65	$ 44.71
Vested (in dollars per share)				37.95
Forfeited/cancelled (in dollars per share)				20.69
Non-vested at the end of the period (in dollars per share)	$ 44.43			$ 44.43

INCOME TAXES - Unrecognized Tax

INCOME TAXES - Unrecognized Tax Benefit Rollforward (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)
Gross unrecognized tax benefits, roll forward
Balance at the beginning of the period	$ 9
Additions for tax positions related to the prior year	6,540
Decreases related to settlement with taxing authority	(9)
Balance at the end of the period	6,540
Accrued interest and penalties related to unrecognized tax benefits	$ 1,100

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Weighted-average shares outstanding:
Basic	567,910	602,937	567,384	605,886
Dilutive	10,110	11,967	10,335	11,958
Diluted	578,020	614,904	577,719	617,844
Options and awards outstanding excluded from the calculations as their effect would have been antidilutive (in shares)	8,800	2,000	8,400	1,600

SEGMENT INFORMATION - Product L

SEGMENT INFORMATION - Product Line (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)item	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Segment information
Number of reportable segments | item			3
Number of operating segments | item			3
Net sales	$ 907,068	$ 827,488	$ 1,649,214	$ 1,507,674
Operating income	350,041	288,523	614,303	543,237
Income before tax	347,490	288,301	612,410	543,623
Recognition of deferred revenue	10,200	12,100	20,100	20,200
Depreciation and amortization	11,593	10,306	22,775	19,329
Goodwill and other intangible assets	2,364,517		2,364,517		$ 2,364,278
Stock-based compensation expense	12,800	11,500	26,000	21,600
Corporate and Unallocated
Segment information
Operating income	(61,075)	(59,124)	(119,766)	(110,529)
Income before tax	(63,718)	(59,367)	(121,643)	(110,199)
Depreciation and amortization	1,725	1,598	3,418	3,072
Payroll costs	38,400	31,100	76,100	59,500
Stock-based compensation expense	12,800	11,500	26,000	21,500
Professional service expenses	14,000	19,600	26,400	35,500
Other operating expenses	8,600	8,700	17,300	15,200
Monster Energy Drinks | Operating segment
Segment information
Net sales	815,261	743,453	1,483,831	1,365,381
Operating income	356,223	298,942	635,654	566,329
Income before tax	356,316	298,974	635,651	566,412
Recognition of deferred revenue	10,200	12,100	20,100	20,200
Distribution Agreements Termination Cost	200	25,300	20,100	28,700
Depreciation and amortization	6,873	5,795	13,413	11,573
Goodwill and other intangible assets	1,340,125		1,340,125		1,334,494
Strategic Brands | Operating segment
Segment information
Net sales	85,633	77,400	153,669	135,852
Operating income	53,175	48,019	95,281	87,095
Income before tax	53,174	48,008	95,268	87,068
Depreciation and amortization	1,842	1,778	3,638	3,548
Goodwill and other intangible assets	998,625		998,625		1,001,749
Other | Operating segment
Segment information
Net sales	6,174	6,635	11,714	6,441
Operating income	1,718	686	3,134	342
Income before tax	1,718	686	3,134	342
Depreciation and amortization	1,153	$ 1,135	2,306	$ 1,136
Goodwill and other intangible assets	$ 25,767		$ 25,767		$ 28,035

SEGMENT INFORMATION - Concentra

SEGMENT INFORMATION - Concentration Risk (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenue, Major Customer [Line Items]
Net sales	$ 907,068	$ 827,488	$ 1,649,214	$ 1,507,674
Outside United States
Revenue, Major Customer [Line Items]
Net sales	$ 247,900	$ 200,200	$ 438,800	$ 349,300
Coca-Cola Refreshments ("CCR")
Revenue, Major Customer [Line Items]
Percentage of net sales from major customer	17.00%	42.00%	25.00%	44.00%

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)item	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Related party transactions
TCCC transaction receivable					$ 125,000
TCCC
Related party transactions
Voting interest (as a percent)	10.00%		10.00%
Commission expense	$ 12,800	$ 8,300	$ 20,700	$ 10,900
Net sales	154,500	344,000	409,700	659,200
Purchases from Related Party	6,600	8,000	12,500	14,700
Manufacturing expenses	2,900	2,200	5,100	3,800
Accounts receivable, net	99,337		99,337		151,756
TCCC transaction receivable					125,000
Accounts payable	(22,332)		(22,332)		(41,210)
Accrued promotional allowances	(20,257)		$ (20,257)		$ (27,056)
Directors, Officers and immediate family
Related party transactions
Number of directors and officers who are principal owners of a company that provides promotional materials | item			2
Expenses incurred in connection with materials or services provided by a related party	$ 1,200	$ 200	$ 1,400	$ 300