Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 26, 2024 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2024 | |
Document Fiscal Year Focus | 2024 | |
Entity File Number | 001-18761 | |
Entity Registrant Name | MONSTER BEVERAGE CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-1809393 | |
Entity Address, Address Line One | 1 Monster Way | |
Entity Address, City or Town | Corona | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92879 | |
City Area Code | 951 | |
Local Phone Number | 739 - 6200 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | MNST | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,041,728,228 | |
Entity Central Index Key | 0000865752 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 2,576,524 | $ 2,297,675 |
Short-term investments | 984,201 | 955,605 |
Accounts receivable, net | 1,370,239 | 1,193,964 |
Inventories | 939,630 | 971,406 |
Prepaid expenses and other current assets | 124,580 | 116,195 |
Prepaid income taxes | 40,340 | 54,151 |
Total current assets | 6,035,514 | 5,588,996 |
INVESTMENTS | 8,162 | 76,431 |
PROPERTY AND EQUIPMENT, net | 923,290 | 890,796 |
DEFERRED INCOME TAXES, net | 175,271 | 175,003 |
GOODWILL | 1,417,941 | 1,417,941 |
OTHER INTANGIBLE ASSETS, net | 1,430,762 | 1,427,139 |
OTHER ASSETS | 107,126 | 110,216 |
Total Assets | 10,098,066 | 9,686,522 |
CURRENT LIABILITIES: | ||
Accounts payable | 533,729 | 564,379 |
Accrued liabilities | 204,679 | 183,988 |
Accrued promotional allowances | 318,895 | 269,061 |
Deferred revenue | 43,776 | 41,914 |
Accrued compensation | 52,638 | 87,392 |
Income taxes payable | 75,111 | 14,955 |
Total current liabilities | 1,228,828 | 1,161,689 |
DEFERRED REVENUE | 198,759 | 204,251 |
OTHER LIABILITIES | 92,690 | 91,838 |
COMMITMENTS AND CONTINGENCIES (Note 11) | ||
STOCKHOLDERS' EQUITY: | ||
Common stock - $0.005 par value; 5,000,000 shares authorized; 1,124,870 shares issued and 1,041,698 shares outstanding as of March 31, 2024; 1,122,592 shares issued and 1,041,571 shares outstanding as of December 31, 2023 | 5,624 | 5,613 |
Additional paid-in capital | 5,034,948 | 4,975,115 |
Retained earnings | 6,381,785 | 5,939,736 |
Accumulated other comprehensive loss | (157,940) | (125,337) |
Common stock in treasury, at cost; 83,172 shares and 81,021 shares as of March 31, 2024 and December 31, 2023, respectively | (2,686,628) | (2,566,383) |
Total stockholders' equity | 8,577,789 | 8,228,744 |
Total Liabilities and Stockholders' Equity | $ 10,098,066 | $ 9,686,522 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Common stock, par value (in dollars per share) | $ 0.005 | $ 0.005 |
Common stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares issued | 1,124,870 | 1,122,592 |
Common stock, shares outstanding | 1,041,698 | 1,041,571 |
Common stock in treasury, shares | 83,172 | 81,021 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||
NET SALES | $ 1,899,098 | $ 1,698,930 |
COST OF SALES | 871,969 | 801,081 |
GROSS PROFIT | 1,027,129 | 897,849 |
OPERATING EXPENSES | 485,138 | 412,785 |
OPERATING INCOME | 541,991 | 485,064 |
INTEREST and OTHER INCOME, net | 35,754 | 12,496 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 577,745 | 497,560 |
PROVISION FOR INCOME TAXES | 135,696 | 100,116 |
NET INCOME | $ 442,049 | $ 397,444 |
NET INCOME PER COMMON SHARE: | ||
Basic (in dollar per share) | $ 0.42 | $ 0.38 |
Diluted (in dollar per share) | $ 0.42 | $ 0.38 |
WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK AND COMMON STOCK EQUIVALENTS: | ||
Basic (in shares) | 1,041,081 | 1,044,909 |
Diluted (in shares) | 1,051,282 | 1,059,069 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income, as reported | $ 442,049 | $ 397,444 |
Other comprehensive income (loss): | ||
Change in foreign currency translation adjustment | (30,695) | 7,981 |
Available-for-sale investments: | ||
Change in net unrealized gain (loss) on available-for-sale investments | 223 | 3,181 |
Change in net gain (loss) on commodity derivatives | (2,131) | 0 |
Other comprehensive income (loss) | (32,603) | 11,162 |
Comprehensive income | $ 409,446 | $ 408,606 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury stock | Total |
Balance at Dec. 31, 2022 | $ 6,418 | $ 4,776,804 | $ 9,001,173 | $ (159,073) | $ (6,600,281) | $ 7,025,041 |
Balance (in shares) at Dec. 31, 2022 | 1,283,688 | (239,088) | ||||
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | ||||||
Stock-based compensation | 15,743 | 15,743 | ||||
Stock options/awards | $ 19 | 36,329 | 36,348 | |||
Stock options/awards (in shares) | 3,704 | |||||
Unrealized gain (loss), net on available-for-sale securities | 3,181 | 3,181 | ||||
Retirement of treasury stock | $ (850) | 425 | (4,692,425) | $ 4,692,850 | ||
Retirement of treasury stock (in shares) | (170,000) | 170,000 | ||||
Repurchase of common stock | $ (90,378) | (90,378) | ||||
Repurchase of common stock (in shares) | (1,688) | |||||
Foreign currency translation | 7,981 | 7,981 | ||||
Change in net gain (loss) on commodity derivatives | 0 | |||||
Net income | 397,444 | 397,444 | ||||
Balance at Mar. 31, 2023 | $ 5,587 | 4,829,301 | 4,706,192 | (147,911) | $ (1,997,809) | 7,395,360 |
Balance (in shares) at Mar. 31, 2023 | 1,117,392 | (70,776) | ||||
Balance at Dec. 31, 2023 | $ 5,613 | 4,975,115 | 5,939,736 | (125,337) | $ (2,566,383) | 8,228,744 |
Balance (in shares) at Dec. 31, 2023 | 1,122,592 | (81,021) | ||||
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | ||||||
Stock-based compensation | 21,452 | 21,452 | ||||
Stock options/awards | $ 11 | 38,381 | 38,392 | |||
Stock options/awards (in shares) | 2,278 | |||||
Unrealized gain (loss), net on available-for-sale securities | 223 | 223 | ||||
Repurchase of common stock | $ (120,245) | (120,245) | ||||
Repurchase of common stock (in shares) | (2,151) | |||||
Foreign currency translation | (30,695) | (30,695) | ||||
Change in net gain (loss) on commodity derivatives | (2,131) | (2,131) | ||||
Net income | 442,049 | 442,049 | ||||
Balance at Mar. 31, 2024 | $ 5,624 | $ 5,034,948 | $ 6,381,785 | $ (157,940) | $ (2,686,628) | $ 8,577,789 |
Balance (in shares) at Mar. 31, 2024 | 1,124,870 | (83,172) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 442,049 | $ 397,444 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 20,475 | 16,808 |
Non-cash lease expense | 3,185 | 2,160 |
Gain on disposal of property and equipment | (177) | (385) |
Stock-based compensation | 22,472 | 16,051 |
Deferred income taxes | 9 | 0 |
Effect on cash of changes in operating assets and liabilities: | ||
Accounts receivable | (195,081) | (167,512) |
Inventories | 22,708 | 35,495 |
Prepaid expenses and other assets | (9,507) | 1,273 |
Prepaid income taxes | 11,840 | 3,986 |
Accounts payable | (9,062) | 51,124 |
Accrued liabilities | 28,259 | 14,207 |
Accrued promotional allowances | 52,814 | 48,265 |
Accrued compensation | (35,653) | (30,261) |
Income taxes payable | 60,512 | 41,617 |
Other liabilities | 335 | (751) |
Deferred revenue | (3,036) | (5,046) |
Net cash provided by operating activities | 412,142 | 424,475 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Sales of available-for-sale investments | 382,125 | 522,501 |
Purchases of available-for-sale investments | (342,228) | (518,751) |
Purchases of property and equipment | (66,044) | (40,100) |
Proceeds from sale of property and equipment | 422 | 564 |
Additions to intangibles | (8,612) | (3,952) |
Increase in other assets | (985) | (13,028) |
Net cash used in investing activities | (35,322) | (52,766) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payments on debt | (2,896) | (7,271) |
Issuance of common stock | 38,392 | 36,348 |
Purchases of common stock held in treasury | (120,245) | (35,126) |
Net cash used in financing activities | (84,749) | (6,049) |
Effect of exchange rate changes on cash and cash equivalents | (13,222) | (141) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 278,849 | 365,519 |
CASH AND CASH EQUIVALENTS, beginning of period | 2,297,675 | 1,307,141 |
CASH AND CASH EQUIVALENTS, end of period | 2,576,524 | 1,672,660 |
Cash paid during the period for: | ||
Interest | 91 | 96 |
Income taxes | $ 63,634 | $ 56,985 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS | ||
Accrued liabilities for intangible assets | $ 11.7 | $ 9.6 |
Accounts payable for purchases of equipment | 3.2 | $ 2.5 |
Accounts receivable related to available-for-sale short-term investment sales | 3 | |
Accured liabilities purchased from employees | $ 55.3 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023 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, 2024 and 2023, 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 Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures |
REVENUE RECOGNITION
REVENUE RECOGNITION | 3 Months Ended |
Mar. 31, 2024 | |
REVENUE RECOGNITION | |
REVENUE RECOGNITION | 2. REVENUE RECOGNITION Revenues are accounted for in accordance with FASB Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers”. The Company has four operating and reportable segments: (i) Monster Energy® Drinks segment (“Monster Energy® Drinks”), which is primarily comprised of the Company’s Monster Energy® drinks, Reign Total Body Fuel® high performance energy drinks, Reign Storm® total wellness energy drinks, Bang Energy® drinks and Monster Tour Water®, (ii) Strategic Brands segment (“Strategic Brands”), which is primarily comprised of the various energy drink brands acquired from The Coca-Cola Company (“TCCC”) in 2015 as well as the Company’s affordable energy brands, Predator® and Fury®, (iii) Alcohol Brands segment (“Alcohol Brands”), which is comprised of various craft beers, hard seltzers and flavored malt beverages (“FMBs”) and (iv) Other segment (“Other”), which is comprised of certain products sold by American Fruits and Flavors, LLC, a wholly-owned subsidiary of the Company, to independent third-party customers (the “AFF Third-Party Products”). The Company’s Monster Energy® Drinks segment primarily generates net operating revenues by selling ready-to-drink packaged drinks primarily to bottlers and full service beverage distributors (“bottlers/distributors”). In some cases, the Company sells ready-to-drink packaged drinks directly to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, drug stores, foodservice customers, value stores, e-commerce retailers 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 by such bottlers to other bottlers/distributors and to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, foodservice customers, drug stores, value stores, e-commerce retailers and the military. To a lesser extent, the Strategic Brands segment generates net operating revenues by selling certain ready-to-drink packaged energy drinks to bottlers/distributors. The Company’s Alcohol Brands segment primarily generates operating revenues by selling kegged and ready-to-drink canned beers, hard seltzers and FMBs primarily to beer distributors in the United States. The majority of the Company’s revenue is recognized when it satisfies a single performance obligation by transferring control of its products to a customer. Control is generally transferred when the Company’s products are either shipped or delivered based on the terms contained within the underlying contracts or agreements. Certain of the Company’s bottlers/distributors may also perform a separate function as a co-packer on the Company’s behalf. In such cases, control of the Company’s products passes to such bottlers/distributors when they notify the Company that they have taken possession or transferred the relevant portion of the Company’s finished goods. The Company’s general payment terms are short-term in duration. The Company does not have significant financing components or payment terms. The Company did not have any material unsatisfied performance obligations as of March 31, 2024 and December 31, 2023. The Company excludes from revenues all taxes assessed by a governmental authority that are imposed on the sale of its products and collected from customers. Distribution expenses to transport the Company’s products, where applicable, and warehousing expenses after manufacture are accounted for within operating expenses. Promotional and other allowances (variable consideration) recorded as a reduction to net sales for the Company’s energy drink products primarily include consideration given to the Company’s non-alcohol bottlers/distributors or retail customers, including, but not limited to, the following: ● discounts granted off list prices to support price promotions to end-consumers by retailers; ● reimbursements given to the Company’s bottlers/distributors for agreed portions of their promotional spend with retailers, including slotting, shelf space allowances and other fees for both new and existing products; ● the Company’s agreed share of fees given to bottlers/distributors and/or directly to retailers for advertising, in-store marketing and promotional activities; ● the Company’s agreed share of slotting, shelf space allowances and other fees given directly to retailers, club stores and/or wholesalers; ● incentives given to the Company’s bottlers/distributors and/or retailers for achieving or exceeding certain predetermined sales goals; ● discounted or free products; ● contractual fees given to the Company’s bottlers/distributors related to sales made directly by the Company to certain customers that fall within the bottlers’/distributors’ sales territories; and ● commissions to TCCC based on the Company’s sales to wholly-owned subsidiaries of TCCC (the “TCCC Subsidiaries”) and/or to TCCC bottlers/distributors accounted for under the equity method by TCCC (the “TCCC Related Parties”). The Company’s promotional allowance programs for its energy drink products are executed through separate agreements in the ordinary course of business. These agreements generally provide for one or more of the arrangements described above and are of varying durations, typically ranging from one week to one year. The Company’s promotional and other allowances for its energy drink products are calculated based on various programs with bottlers/distributors and retail customers, and accruals are established at the time of initial product sale for the Company’s anticipated liabilities. These accruals are based on agreed upon terms as well as the Company’s historical experience with similar programs and require management’s judgment with respect to estimating consumer participation and/or bottler/distributor and retail customer performance levels. Differences between such estimated expenses and actual expenses for promotional and other allowance costs have historically been insignificant and are recognized in earnings in the period such differences are determined. Promotional and other allowances for our Alcohol Brands segment primarily include price promotions where permitted. Amounts received pursuant to new and/or amended distribution agreements entered into with certain bottlers/distributors relating to the costs associated with terminating the Company’s prior distributors, are accounted for as deferred revenue and recognized as revenue ratably over the anticipated life of the respective distribution agreements, generally over 20 years. The Company also enters into license agreements that generate revenues associated with third-party sales of non-beverage products bearing the Company’s trademarks including, but not limited to, clothing, hats, t-shirts, jackets, helmets and automotive wheels. Management believes that adequate provision has been made for cash discounts, returns and spoilage based on the Company’s historical experience. Disaggregation of Revenue The following tables disaggregate the Company’s revenue by geographical markets and reportable segments: Three-Months Ended March 31, 2024 Latin Asia Pacific America U.S. and (including and Net Sales Canada EMEA 1 Oceania) Caribbean Total Monster Energy® Drinks $ 1,094,846 $ 352,229 $ 122,018 $ 159,958 $ 1,729,051 Strategic Brands 49,642 43,337 9,197 6,268 108,444 Alcohol Brands 56,070 — — — 56,070 Other 5,533 — — — 5,533 Total Net Sales $ 1,206,091 $ 395,566 $ 131,215 $ 166,226 $ 1,899,098 Three-Months Ended March 31, 2023 Latin Asia Pacific America U.S. and (including and Net Sales Canada EMEA 1 Oceania) Caribbean Total Monster Energy® Drinks $ 1,021,328 $ 277,111 $ 121,994 $ 141,235 $ 1,561,668 Strategic Brands 43,043 30,951 8,983 3,381 86,358 Alcohol Brands 46,290 — — — 46,290 Other 4,614 — — — 4,614 Total Net Sales $ 1,115,275 $ 308,062 $ 130,977 $ 144,616 $ 1,698,930 1 Europe, Middle East and Africa (“EMEA”) Contract Liabilities Amounts received from certain bottlers/distributors at inception of their distribution contracts or at the inception of certain sales/marketing programs are accounted for as deferred revenue. As of March 31, 2024, the Company had $242.5 million of deferred revenue, which is included in current and long-term deferred revenue in the Company’s condensed consolidated balance sheet. As of December 31, 2023, the Company had $246.2 million of deferred revenue, which is included in current and long-term deferred revenue in the Company’s condensed consolidated balance sheet. During both the three-months ended March 31, 2024 and 2023, $9.9 million of deferred revenue was recognized in net sales. See Note 10. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2024 | |
LEASES | |
LEASES | 3. LEASES The Company leases identified assets consisting primarily of office and warehouse space, warehouse equipment and vehicles. Leases are classified as either finance leases or operating leases based on criteria in ASC 842, “Leases”. The Company’s leases have remaining lease terms of less than one year to 10 years, some which leases leases The components of lease cost were as follows: Three-Months Ended March 31, 2024 2023 Operating lease cost $ 3,802 $ 2,467 Short-term lease cost 2,670 979 Variable lease cost 213 215 Finance leases: Amortization of right-of-use assets 595 123 Interest on lease liabilities 91 14 Finance lease cost 686 137 Total lease cost $ 7,371 $ 3,798 Supplemental cash flow information was as follows: Three-Months Ended March 31, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 3,607 $ 2,391 Operating cash outflows from finance leases 91 14 Financing cash outflows from finance leases 2,897 598 Right-of-use assets obtained in exchange for lease obligations: Finance leases 747 2,227 Operating leases 1,091 313 Supplemental balance sheet information was as follows: March 31, December 31, Balance Sheet Location 2024 2023 Operating leases: Right-of-use assets Other assets $ 56,421 $ 58,845 Current lease liabilities Accrued liabilities $ 11,122 $ 11,088 Noncurrent lease liabilities Other liabilities 46,474 48,459 Total operating lease liabilities $ 57,596 $ 59,547 Finance leases: Right-of-use assets Property and equipment, net $ 10,091 $ 11,147 Current lease liabilities Accrued liabilities $ 4,297 $ 6,449 Noncurrent lease liabilities Other liabilities 14 19 Total finance lease liabilities $ 4,311 $ 6,468 Weighted-average remaining lease term and weighted-average discount rate for the Company’s leases were as follows: March 31, 2024 December 31, 2023 Weighted-average remaining lease term in years: Operating leases 6.2 6.3 Finance leases 0.5 0.7 Weighted-average discount rate: Operating leases 4.7 % 4.7 % Finance leases 6.3 % 6.3 % The following table outlines maturities of the Company’s lease liabilities as of March 31, 2024: Undiscounted Future Lease Payments Operating Leases Finance Leases 2024 (from April 1, 2024 to December 31, 2024) $ 10,213 $ 4,275 2025 11,942 118 2026 9,824 2 2027 9,242 — 2028 7,709 — 2029 and thereafter 17,820 — Total lease payments 66,750 4,395 Less imputed interest (9,154) (84) Total $ 57,596 $ 4,311 As of March 31, 2024, the Company did not have any significant leases that had not yet commenced. |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2024 | |
INVESTMENTS | |
INVESTMENTS | 4. INVESTMENTS The following table summarizes the Company’s investments at: Continuous Continuous Gross Gross Unrealized Unrealized Unrealized Unrealized Loss Position Loss Position Amortized Holding Holding Fair less than 12 greater than 12 March 31, 2024 Cost Gains Losses Value Months Months Available-for-sale Short-term: Commercial paper $ 157,074 $ 11 $ — $ 157,085 $ — $ — Certificates of deposit 24,831 — — 24,831 — — U.S. government agency securities 101,893 16 54 101,855 54 — U.S. treasuries 530,697 23 390 530,330 390 — Corporate bonds 170,198 32 130 170,100 130 — Long-term: Corporate bonds 8,205 — 43 8,162 43 — Total $ 992,898 $ 82 $ 617 $ 992,363 $ 617 $ — Continuous Continuous Gross Gross Unrealized Unrealized Unrealized Unrealized Loss Position Loss Position Amortized Holding Holding Fair less than 12 greater than 12 December 31, 2023 Cost Gains Losses Value Months Months Available-for-sale Short-term: Commercial paper $ 163,775 $ — $ 1 $ 163,774 $ 1 $ — Certificates of deposit 15,590 — — 15,590 — — Municipal securities 361 — — 361 — — U.S. government agency securities 116,524 90 66 116,548 66 — U.S. treasuries 412,936 205 1,084 412,057 1,084 — Corporate bonds 247,340 89 154 247,275 154 — Long-term: U.S. government agency securities 23,485 51 5 23,531 5 — U.S. treasuries 35,896 79 8 35,967 8 — Corporate bonds 16,903 32 2 16,933 2 — Total $ 1,032,810 $ 546 $ 1,320 $ 1,032,036 $ 1,320 $ — During the three-months ended March 31, 2024 and 2023, realized gains or losses recognized on the sale of investments were not significant. The Company’s investments at March 31, 2024 and December 31, 2023 carried investment grade credit ratings. The following table summarizes the underlying contractual maturities of the Company’s investments at: March 31, 2024 December 31, 2023 Amortized Cost Fair Value Amortized Cost Fair Value Less than 1 year: Commercial paper $ 157,074 $ 157,085 $ 163,775 $ 163,774 Municipal securities — — 361 361 U.S. government agency securities 101,893 101,855 116,524 116,548 Certificates of deposit 24,831 24,831 15,590 15,590 U.S. treasuries 530,697 530,330 412,936 412,057 Corporate bonds 170,198 170,100 247,340 247,275 Due 1 - 10 years: U.S. treasuries — — 35,896 35,967 U.S. government agency securities — — 23,485 23,531 Corporate bonds 8,205 8,162 16,903 16,933 Total $ 992,898 $ 992,363 $ 1,032,810 $ 1,032,036 |
FAIR VALUE OF CERTAIN FINANCIAL
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | 3 Months Ended |
Mar. 31, 2024 | |
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 ASC 820, “Fair Value Measurement”, 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 that 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: March 31, 2024 Level 1 Level 2 Level 3 Total Cash $ 973,260 $ — $ — $ 973,260 Money market funds 1,026,552 — — 1,026,552 Certificates of deposit — 74,208 — 74,208 Commercial paper — 193,959 — 193,959 Corporate bonds — 205,924 — 205,924 U.S. government agency securities — 146,214 — 146,214 U.S. treasuries — 948,770 — 948,770 Foreign currency derivatives — (591) — (591) Commodity derivatives — 2,279 — 2,279 Total $ 1,999,812 $ 1,570,763 $ — $ 3,570,575 Amounts included in: Cash and cash equivalents $ 1,999,812 $ 576,712 $ — $ 2,576,524 Short-term investments — 984,201 — 984,201 Accounts receivable, net — 2,981 — 2,981 Other assets — 332 — 332 Investments — 8,162 — 8,162 Accrued liabilities — (1,625) — (1,625) Total $ 1,999,812 $ 1,570,763 $ — $ 3,570,575 December 31, 2023 Level 1 Level 2 Level 3 Total Cash $ 1,105,701 $ — $ — $ 1,105,701 Money market funds 960,873 — — 960,873 Certificates of deposit — 33,824 — 33,824 Commercial paper — 163,774 — 163,774 Corporate bonds — 264,208 — 264,208 Municipal securities — 361 — 361 U.S. government agency securities — 159,585 — 159,585 U.S. treasuries — 641,385 — 641,385 Foreign currency derivatives — (1,083) — (1,083) Commodity derivatives — 4,410 — 4,410 Total $ 2,066,574 $ 1,266,464 $ — $ 3,333,038 Amounts included in: Cash and cash equivalents $ 2,066,574 $ 231,101 $ — $ 2,297,675 Short-term investments — 955,605 — 955,605 Accounts receivable, net — 4,618 — 4,618 Other assets — 316 — 316 Investments — 76,431 — 76,431 Accrued liabilities — (1,607) — (1,607) Total $ 2,066,574 $ 1,266,464 $ — $ 3,333,038 All of the Company’s short-term and long-term investments are classified within Level 1 or Level 2 of the fair value hierarchy. The Company’s valuation of its Level 1 investments is based on quoted market prices in active markets for identical securities. The Company’s valuation of its Level 2 investments 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 three-months ended March 31, 2024, or during the year-ended December 31, 2023, and there were no changes in the Company’s valuation techniques. |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 3 Months Ended |
Mar. 31, 2024 | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 6. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company accounts for its derivative instruments and hedging activities under ASC 815, “Derivatives and Hedging.” The following table presents the fair values of the Company’s derivative instruments: Fair value March 31, December 31, Derivatives designated as hedging instruments 2024 2023 Balance Sheet location Assets: Commodity contracts $ 2,379 $ 4,480 Accounts receivable, net Commodity contracts $ 332 $ 316 Other assets Liabilities: Commodity contracts $ (432) $ (386) Accrued liabilities Fair value March 31, December 31, Derivatives not designated as hedging instruments 2024 2023 Balance Sheet location Assets: Foreign currency exchange contracts $ 602 $ 138 Accounts receivable, net Liabilities: Foreign currency exchange contracts $ (1,193) $ (1,221) Accrued liabilities Cash Flow Hedging Strategy The Company uses cash flow hedges to minimize the variability in cash flows of forecasted transactions caused by fluctuations in commodity prices. The changes in the fair values of derivatives designated as cash flow hedges are recorded in accumulated other comprehensive income (loss) (“AOCI”) and are reclassified into the line item in our condensed consolidated statement of income in which the hedged items are recorded in the same period that the hedged items affect earnings. The changes in the fair values of hedges that are determined to be ineffective are immediately reclassified from AOCI into earnings. The maximum length of time for which the Company hedges its exposure to the variability in future cash flows is currently less than two years. The Company has entered into commodity hedge contracts to mitigate the price risk associated with a portion of its forecasted aluminum purchases. These derivative instruments were designated as part of the Company’s commodity cash flow hedging program. The objective of this hedging program is to reduce the variability of cash flows associated with future purchases of aluminum. The total notional values of derivatives that were designated and qualified for this program were $126.1 million and $98.3 million as of March 31, 2024 and December 31, 2023, respectively. Transactions under the commodity cash flow hedging program were executed beginning in May 2023. The following table presents the impact that changes in the fair values of derivatives designated as cash flow hedges had on other comprehensive income (“OCI”), AOCI and earnings: Three-months ended March 31, 2024 Derivatives Gain (loss) designated as Gain (loss) recognized Location of gain (loss) reclassified from hedging instruments in AOCI recognized in income AOCI into income Commodity contracts $ 2,279 Cost of sales $ (966) As of March 31, 2024, the Company estimates that it will reclassify into earnings net gains (losses) of $1.9 million from the amount recorded in AOCI as the anticipated cash flows occur during the next 12 months. Economic (Non-Designated) Hedging Strategy The Company is exposed to foreign currency exchange rate risks related primarily to its foreign business operations. During the three-months ended March 31, 2024 and 2023, 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, 2024 have terms of approximately 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. Therefore, gains and losses on the Company’s foreign currency exchange contracts are recognized in interest and other income (expense), 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 total notional values of derivatives related to our foreign currency economic hedges were $230.5 million and $282.7 million as of March 31, 2024 and December 31, 2023, respectively. The net gains (losses) on derivatives not designated as hedging instruments in the condensed consolidated statements of income were as follows: Gain (loss) recognized in income on derivatives Three-months ended Derivatives not designated as Location of gain (loss) March 31, March 31, hedging instruments recognized in income on derivatives 2024 2023 Foreign currency exchange contracts Interest and other income, net $ 5,343 $ (7,852) Certain of the Company’s counterparty agreements contain provisions that require the Company to post collateral on derivative instruments in a net liability position. As of March 31, 2024, $0.6 million was posted as collateral. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2024 | |
INVENTORIES | |
INVENTORIES | 7. INVENTORIES Inventories consist of the following at: March 31, December 31, 2024 2023 Raw materials $ 285,966 $ 330,021 Work in process 1,601 1,403 Finished goods 652,063 639,982 $ 939,630 $ 971,406 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 2023 Land $ 153,340 $ 152,253 Leasehold improvements 38,159 37,946 Furniture and fixtures 11,401 11,422 Office and computer equipment 26,421 25,560 Computer software 5,053 5,344 Equipment 449,321 426,466 Buildings 212,359 211,951 Vehicles 69,937 69,527 Assets under construction 234,627 211,562 1,200,618 1,152,031 Less: accumulated depreciation and amortization (277,328) (261,235) $ 923,290 $ 890,796 Total depreciation and amortization expense was $19.2 million and $14.8 million for the three-months ended March 31, 2024 and 2023, respectively. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2024 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 9. The following is a roll-forward of goodwill for the three-months ended March 31, 2024 and 2023 by reportable segment: Monster Energy® Strategic Alcohol Drinks Brands Brands Other Total Balance at December 31, 2023 $ 693,644 $ 637,999 $ 86,298 $ — $ 1,417,941 Acquisitions — — — — — Balance at March 31, 2024 $ 693,644 $ 637,999 $ 86,298 $ — $ 1,417,941 Monster Energy® Strategic Alcohol Drinks Brands Brands Other Total Balance at December 31, 2022 $ 693,644 $ 637,999 $ 86,298 $ — $ 1,417,941 Acquisitions — — — — — Balance at March 31, 2023 $ 693,644 $ 637,999 $ 86,298 $ — $ 1,417,941 Intangible assets consist of the following at: March 31, December 31, 2024 2023 Amortizing intangibles $ 144,378 $ 144,582 Accumulated amortization (75,982) (74,699) 68,396 69,883 Non-amortizing intangibles 1,362,366 1,357,256 $ 1,430,762 $ 1,427,139 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 ten The following is the future estimated amortization expense related to amortizing intangibles as of March 31, 2024: 2024 (from April 1, 2024 to December 31, 2024) $ 4,461 2025 5,947 2026 5,947 2027 5,946 2028 5,945 2029 and thereafter 40,150 $ 68,396 |
DISTRIBUTION AGREEMENTS
DISTRIBUTION AGREEMENTS | 3 Months Ended |
Mar. 31, 2024 | |
DISTRIBUTION AGREEMENTS | |
DISTRIBUTION AGREEMENTS | 10. DISTRIBUTION AGREEMENTS In the normal course of business, amounts received pursuant to new and/or amended distribution agreements entered into with certain bottlers/distributors, relating to the costs associated with terminating agreements with the Company’s prior distributors, or at the inception of certain sales/marketing programs are accounted for as deferred revenue and are recognized as revenue ratably over the anticipated life of the respective agreement, generally 20 years or program duration, as the case may be. Revenue recognized was $9.9 million for both the three-months ended March 31, 2024 and 2023. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 11. COMMITMENTS AND CONTINGENCIES The Company had purchase commitments aggregating approximately $345.5 million at March 31, 2024, 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 $451.1 million at March 31, 2024, which related primarily to sponsorships and other marketing activities. The Company has a credit facility with HSBC Bank (China) Company Limited, Shanghai Branch, of $15.0 million. At March 31, 2024, the interest rate on borrowings under the line of credit was 5.5%. As of March 31, 2024, no amount was outstanding on this line of credit. Litigation — 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, and any related insurance reimbursements. As of March 31, 2024 and December 31, 2023, $0.3 million of loss contingencies were included in the Company’s accompanying condensed consolidated balance sheet. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and 2023 are as follows: Accumulated Net Gains Unrealized (Losses) Currency Gains (Losses) on Commodity Translation on Available-for- Derivatives Gains (Losses) Sale Securities Total Balance at December 31, 2023 $ 4,410 $ (128,989) $ (758) $ (125,337) Other comprehensive income (loss) before reclassifications (2,131) (30,695) 223 (32,603) Net current-period other comprehensive income (loss) (2,131) (30,695) 223 (32,603) Balance at March 31, 2024 $ 2,279 $ (159,684) $ (535) $ (157,940) Accumulated Net Gains Unrealized (Losses) Currency Gains (Losses) on Commodity Translation on Available-for- Derivatives Gains (Losses) Sale Securities Total Balance at December 31, 2022 $ — $ (153,230) $ (5,843) $ (159,073) Other comprehensive income (loss) before reclassifications — 7,981 3,181 11,162 Net current-period other comprehensive income (loss) — 7,981 3,181 11,162 Balance at March 31, 2023 $ — $ (145,249) $ (2,662) $ (147,911) |
TREASURY STOCK
TREASURY STOCK | 3 Months Ended |
Mar. 31, 2024 | |
TREASURY STOCK | |
TREASURY STOCK | 13. TREASURY STOCK On November 2, 2022, the Company’s Board of Directors authorized a share repurchase program for the purchase of up to an additional $500.0 million of the Company’s outstanding common stock (the “November 2022 Repurchase Plan”). During the three-months ended March 31, 2024, the Company purchased approximately 1.8 million shares of common stock at an average purchase price of $54.96 per share, for a total amount of approximately $97.2 million (excluding broker commissions), under the November 2022 Repurchase Plan. As of May 7, 2024, $142.4 million remained available for repurchase under the November 2022 Repurchase Plan. On November 7, 2023, the Company’s Board of Directors authorized a share repurchase program for the purchase of up to an additional $500.0 million of the Company’s outstanding common stock (the “November 2023 Repurchase Plan”). During the three-months ended March 31, 2024, no shares were repurchased under the November 2023 Repurchase Plan. As of May 7, 2024, $500.0 million remained available for repurchase under the November 2023 Repurchase Plan. The aggregate amount of the Company’s outstanding common stock that remains available for repurchase under all previously authorized repurchase plans is $642.4 million as of May 7, 2024. During the three-months ended March 31, 2024, 0.4 million 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 $23.0 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 consolidated balance sheet at March 31, 2024. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024: (i) the Monster Beverage Corporation 2020 Omnibus Incentive Plan, including the Monster Beverage Corporation Deferred Compensation Plan as a sub-plan thereunder, and (ii) the Monster Beverage Corporation 2017 Compensation Plan for Non-Employee Directors as Amended and Restated on February 23, 2022, including the Monster Beverage Corporation Deferred Compensation Plan for Non-Employee Directors as a sub-plan thereunder. The Company recorded $22.5 million and $16.1 million of compensation expense relating to outstanding options, restricted stock units, performance share units and other share-based awards during the three-months ended March 31, 2024 and 2023, respectively. The tax benefit for tax deductions from non-qualified stock option exercises, disqualifying dispositions of incentive stock options and vesting of restricted stock units and performance share units for the three-months ended March 31, 2024 and 2023 was $7.5 million and $25.9 million, respectively. Stock Options Under the Company’s stock-based compensation plans, all stock options granted as of March 31, 2024 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 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 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, 2024 2023 Dividend yield 0.0 % 0.0 % Expected volatility 27.5 % 27.6 % Risk-free interest rate 4.3 % 3.7 % Expected term 6.4 years 6.3 years Expected Volatility Risk-Free Interest Rate Expected Term The following table summarizes the Company’s activities with respect to its stock option plans as follows: Weighted- Weighted- Average Average Remaining Number of Exercise Contractual Shares (in Price Per Term (in Aggregate Options thousands) Share years) Intrinsic Value Outstanding at January 1, 2024 24,983 $ 33.64 5.8 $ 598,866 Granted 01/01/24 - 03/31/24 4,332 $ 60.29 Exercised (1,457) $ 26.35 Cancelled or forfeited (14) $ 40.13 Outstanding at March 31, 2024 27,844 $ 38.17 6.3 $ 592,303 Vested and expected to vest in the future at March 31, 2024 26,628 $ 37.55 6.2 $ 582,560 Exercisable at March 31, 2024 15,538 $ 29.22 4.3 $ 467,020 The weighted-average grant-date fair value of options granted during the three-months ended March 31, 2024 and 2023 was $22.69 per share and $18.23 per share, respectively. The total intrinsic value of options exercised during the three-months ended March 31, 2024 and 2023 was $47.6 million and $131.0 million, respectively. Cash received from option exercises under all plans for the three-months ended March 31, 2024 and 2023 was $38.4 million and $36.3 million, respectively. At March 31, 2024, there was $174.7 million of total unrecognized compensation expense related to non-vested options granted to employees under the Company’s stock-based compensation plans. That cost is expected to be recognized over a weighted-average period of 3.6 years. Restricted Stock Units and Performance Share Units The cost of stock-based compensation for restricted stock units and performance share 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 or performance share 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 units and performance share units as follows: Weighted Number of Average Shares (in Grant-Date thousands) Fair Value Non-vested at January 1, 2024 1,964 $ 40.95 Granted 01/01/24 - 03/31/24 1 502 $ 57.04 Vested (821) $ 40.63 Forfeited/cancelled (1) $ 30.36 Non-vested at March 31, 2024 1,644 $ 46.03 1 The grant activity for performance share units is recorded based on the target performance level earning 100% of target performance share units. The actual number of performance share units earned could range from 0% to 200% of target depending on the achievement of pre-established performance goals. The weighted-average grant-date fair value of restricted stock units and/or performance share units granted during the three-months ended March 31, 2024 and 2023 was $60.27 and $50.83 per share, respectively. As of March 31, 2024, 1.6 million of restricted stock units and performance share units are expected to vest over their respective terms. At March 31, 2024, total unrecognized compensation expense relating to non-vested restricted stock units and performance share units was $49.6 million, which is expected to be recognized over a weighted-average period of 1.8 years. Other Share-Based Awards The Company has granted other share-based awards to certain employees that are payable in cash. These awards are classified as liabilities and are valued based on the fair value of the award at the grant date and are remeasured at each reporting date until settlement, with compensation expense being recognized in proportion to the completed requisite service period up until date of settlement. At March 31, 2024, other share-based awards outstanding included grants that vest over three years payable in the first quarters of 2025, 2026 and 2027. At March 31, 2024, there was $0.8 million of total unrecognized compensation expense related to nonvested other share-based awards granted to employees under the Company’s stock-based compensation plans. That cost is expected to be recognized over a weighted-average period of 1.3 years. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024: Gross Unrecognized Tax Benefits Balance at December 31, 2023 $ 3,109 Additions for tax positions related to the current year 2,900 Additions for tax positions related to the prior years — Decreases for tax positions related to the prior years — Balance at March 31, 2024 $ 6,009 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, 2024, the Company had approximately $0.7 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. The Company is in various stages of examination with certain states and certain foreign jurisdictions. The Company’s 2020 through 2023 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 2019 through 2023 tax years. The United Kingdom and Ireland income tax returns are subject to examination for the 2019 through 2023 tax years. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2024 | |
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 (in thousands): Three-Months Ended March 31, 2024 2023 Weighted-average shares outstanding: Basic 1,041,081 1,044,909 Dilutive 10,201 14,160 Diluted 1,051,282 1,059,069 For the three-months ended March 31, 2024 and 2023, options and awards outstanding totaling 5.0 million shares and 2.6 million shares, respectively, were excluded from the calculations as their effect would have been antidilutive. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2024 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 17. SEGMENT INFORMATION The Company has four operating and reportable segments: (i) Monster Energy® Drinks segment, which is primarily comprised of the Company’s Monster Energy® drinks, Reign Total Body Fuel® high performance energy drinks, Reign Storm® total wellness energy drinks, Bang Energy® drinks and Monster Tour Water®, (ii) Strategic Brands segment, which is primarily comprised of the various energy drink brands acquired from TCCC in 2015 as well as the Company’s affordable energy brands, Predator® and Fury®, (iii) Alcohol Brands segment, which is comprised of various craft beers, hard seltzers and FMBs and (iv) Other segment, which is comprised of the AFF Third-Party Products. The Company’s Monster Energy® Drinks segment primarily generates net operating revenues by selling ready-to-drink packaged drinks primarily to bottlers/distributors. In some cases, the Company sells ready-to-drink packaged drinks directly to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, drug stores, foodservice customers, value stores, e-commerce retailers 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 by such bottlers to other bottlers/distributors and to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, foodservice customers, drug stores, value stores, e-commerce retailers and the military. To a lesser extent, the Strategic Brands segment generates net operating revenues by selling certain ready-to-drink packaged energy drinks to bottlers/distributors. Generally, the Monster Energy® Drinks segment generates higher per case net operating revenues, but lower per case gross profit margin percentages than the Strategic Brands segment. The Company’s Alcohol Brands segment primarily generates operating revenues by selling kegged and ready-to-drink canned beers, hard seltzers and FMBs primarily to beer distributors in the United States. Generally, the Alcohol Brands segment has lower gross profit margin percentages than the Monster Energy® Drinks 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 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-months ended March 31, 2024 and 2023 were as follows: Three-Months Ended March 31, 2024 2023 Net sales: Monster Energy® Drinks 1 $ 1,729,051 $ 1,561,669 Strategic Brands 108,444 86,357 Alcohol Brands 56,070 46,290 Other 5,533 4,614 Corporate and unallocated — — $ 1,899,098 $ 1,698,930 Three-Months Ended March 31, 2024 2023 Operating Income: Monster Energy® Drinks 1 $ 628,122 $ 560,819 Strategic Brands 62,019 51,771 Alcohol Brands (6,017) (6,883) Other 1,001 (293) Corporate and unallocated (143,134) (120,350) $ 541,991 $ 485,064 Three-Months Ended March 31, 2024 2023 Income before tax: Monster Energy® Drinks 1 $ 629,160 $ 561,674 Strategic Brands 62,035 51,788 Alcohol Brands (6,016) (6,867) Other 1,016 (293) Corporate and unallocated (108,450) (108,742) $ 577,745 $ 497,560 (1) Includes $9.9 million for both the three-months ended March 31, 2024 and 2023, related to the recognition of deferred revenue. Three-Months Ended March 31, 2024 2023 Depreciation and amortization: Monster Energy® Drinks $ 12,608 $ 8,989 Strategic Brands 229 221 Alcohol Brands 3,738 4,051 Other 40 1,123 Corporate and unallocated 3,860 2,424 $ 20,475 $ 16,808 Corporate and unallocated expenses for the three-months ended March 31, 2024 include $98.6 million of payroll costs, of which $22.0 million was attributable to stock-based compensation expenses (see Note 14 “Stock-Based Compensation”), as well as $20.0 million attributable to professional service expenses, including accounting and legal costs, and $24.5 million of other operating expenses. Corporate and unallocated expenses for the three-months ended March 31, 2023 include $80.3 million of payroll costs, of which $15.7 million was attributable to stock-based compensation expenses (see Note 14 “Stock-Based Compensation”), as well as $22.1 million attributable to professional service expenses, including accounting and legal costs, and $18.0 million of other operating expenses. Coca-Cola Europacific Partners accounted for approximately 14% and 13% of the Company’s net sales for the three-months ended March 31, 2024 and 2023, respectively. Coca-Cola Consolidated, Inc. accounted for approximately 10% of the Company’s net sales for both the three-months ended March 31, 2024 and 2023. Reyes Holdings, LLC accounted for approximately 9% of the Company’s net sales for both the three-months ended March 31, 2024 and 2023. Net sales to customers outside the United States amounted to $744.1 million and $622.9 million for the three-months ended March 31, 2024 and 2023, respectively. Such sales were approximately 39% and 37% of net sales for the three-months ended March 31, 2024 and 2023, respectively. Goodwill and other intangible assets for the Company’s reportable segments were as follows at: March 31, December 31, 2024 2023 Goodwill and other intangible assets: Monster Energy® Drinks $ 1,668,188 $ 1,663,814 Strategic Brands 982,676 982,471 Alcohol Brands 197,839 198,795 Other — — $ 2,848,703 $ 2,845,080 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2024 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 18. RELATED PARTY TRANSACTIONS TCCC controls approximately 19.6% of the voting interests of the Company. The TCCC Subsidiaries, the TCCC Related Parties and certain TCCC independent bottlers, purchase and distribute the Company’s products in domestic and certain international markets. The Company also pays TCCC a commission based on certain sales within the TCCC distribution network. TCCC commissions, based on sales to the TCCC Subsidiaries and the TCCC Related Parties, were $22.5 million and $15.7 million for the three-months ended March 31, 2024 and 2023, respectively, and are included as a reduction to net sales. TCCC commissions, based on sales to TCCC independent bottlers, were $9.7 million and $8.8 million for the three-months ended March 31, 2024 and 2023, respectively, and are included in operating expenses. Net sales to the TCCC Subsidiaries for the three-months ended March 31, 2024 and 2023 were $41.7 million and $35.1 million, respectively. The Company also purchases concentrates from TCCC which are then sold to certain of the Company’s bottlers/distributors. Concentrate purchases from TCCC were $8.0 million and $6.5 million for the three-months ended March 31, 2024 and 2023, respectively. Certain TCCC Subsidiaries also contract manufacture certain of the Company’s energy drinks. Such contract manufacturing expenses were $9.0 million and $7.4 million for the three-months ended March 31, 2024 and 2023, respectively. Accounts receivable, accounts payable, accrued promotional allowances and accrued liabilities related to the TCCC Subsidiaries were as follows at: March 31, December 31, 2024 2023 Accounts receivable, net $ 139,825 $ 135,246 Accounts payable $ (35,923) $ (68,386) Accrued promotional allowances $ (15,260) $ (13,794) Accrued liabilities $ (25,325) $ (19,745) One director of the Company through certain trusts, and a family member of one director are the 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, 2024 and 2023 were $1.9 million and $1.1 million, respectively. The Company occasionally charters a private aircraft that is indirectly owned by Mr. Rodney C. Sacks, Co-Chief Executive Officer and Chairman of the Board of Directors. On certain occasions, Mr. Sacks is accompanied by guests and other Company personnel when using such aircraft for business travel. During the three-months ended March 31, 2024 and 2023, the Company incurred no costs in relation to the aircraft. In December 2018, the Company and a director of the Company entered into a 50-50 partnership that purchased land, and real property thereon, in Kona, Hawaii for the purpose of producing coffee products. In October 2023, the partnership made a special, one-time distribution to each of the partners, reflecting the amount of their initial capital contributions. This partnership meets the definition of a Variable Interest Entity (“VIE”) for which the Company has determined that it is the primary beneficiary. Therefore, the Company consolidates the VIE in the accompanying consolidated financial statements. The aggregate carrying values of the VIE’s assets and liabilities, after elimination of any intercompany transactions and balances, as well as the results of operations for all periods presented, are not material to the Company’s consolidated financial statements. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2024 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 19. SUBSEQUENT EVENTS On May 1, 2024, the Board of Directors authorized the Company to commence a modified “Dutch auction” tender offer to repurchase up to $3.0 billion of its outstanding shares of common stock. The Company anticipates commencing the tender offer in May 2024. Details of the tender offer, including the offer price, conditions, potential participation by management and other terms, will be set forth in the offering materials to be distributed to shareholders upon commencement of the tender offer. The Company expects to fund the tender offer with approximately $2.0 billion of cash on hand and approximately $1.0 billion in combined borrowings, consisting of a new revolving credit facility and a new delayed draw term loan facility, each expected to be consummated prior to the completion of the tender offer. The tender offer will be made outside of the Company’s previously authorized repurchase programs and will allow the Company to retain the ability to purchase additional shares through the previously authorized repurchase programs in the future. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
BASIS OF PRESENTATION | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
REVENUE RECOGNITION | |
Schedule of disaggregation of revenue by geographical markets | Three-Months Ended March 31, 2024 Latin Asia Pacific America U.S. and (including and Net Sales Canada EMEA 1 Oceania) Caribbean Total Monster Energy® Drinks $ 1,094,846 $ 352,229 $ 122,018 $ 159,958 $ 1,729,051 Strategic Brands 49,642 43,337 9,197 6,268 108,444 Alcohol Brands 56,070 — — — 56,070 Other 5,533 — — — 5,533 Total Net Sales $ 1,206,091 $ 395,566 $ 131,215 $ 166,226 $ 1,899,098 Three-Months Ended March 31, 2023 Latin Asia Pacific America U.S. and (including and Net Sales Canada EMEA 1 Oceania) Caribbean Total Monster Energy® Drinks $ 1,021,328 $ 277,111 $ 121,994 $ 141,235 $ 1,561,668 Strategic Brands 43,043 30,951 8,983 3,381 86,358 Alcohol Brands 46,290 — — — 46,290 Other 4,614 — — — 4,614 Total Net Sales $ 1,115,275 $ 308,062 $ 130,977 $ 144,616 $ 1,698,930 1 Europe, Middle East and Africa (“EMEA”) |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
LEASES | |
Schedule of lease cost | Three-Months Ended March 31, 2024 2023 Operating lease cost $ 3,802 $ 2,467 Short-term lease cost 2,670 979 Variable lease cost 213 215 Finance leases: Amortization of right-of-use assets 595 123 Interest on lease liabilities 91 14 Finance lease cost 686 137 Total lease cost $ 7,371 $ 3,798 |
Schedule of supplemental cash flow information related to leases | Three-Months Ended March 31, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 3,607 $ 2,391 Operating cash outflows from finance leases 91 14 Financing cash outflows from finance leases 2,897 598 Right-of-use assets obtained in exchange for lease obligations: Finance leases 747 2,227 Operating leases 1,091 313 |
Schedule of ROU assets for operating and finance leases | March 31, December 31, Balance Sheet Location 2024 2023 Operating leases: Right-of-use assets Other assets $ 56,421 $ 58,845 Current lease liabilities Accrued liabilities $ 11,122 $ 11,088 Noncurrent lease liabilities Other liabilities 46,474 48,459 Total operating lease liabilities $ 57,596 $ 59,547 Finance leases: Right-of-use assets Property and equipment, net $ 10,091 $ 11,147 Current lease liabilities Accrued liabilities $ 4,297 $ 6,449 Noncurrent lease liabilities Other liabilities 14 19 Total finance lease liabilities $ 4,311 $ 6,468 |
Schedule of weighted-average remaining lease terms and weighted-average discount rates | March 31, 2024 December 31, 2023 Weighted-average remaining lease term in years: Operating leases 6.2 6.3 Finance leases 0.5 0.7 Weighted-average discount rate: Operating leases 4.7 % 4.7 % Finance leases 6.3 % 6.3 % |
Schedule of outlines maturities of the Company's lease liabilities | Undiscounted Future Lease Payments Operating Leases Finance Leases 2024 (from April 1, 2024 to December 31, 2024) $ 10,213 $ 4,275 2025 11,942 118 2026 9,824 2 2027 9,242 — 2028 7,709 — 2029 and thereafter 17,820 — Total lease payments 66,750 4,395 Less imputed interest (9,154) (84) Total $ 57,596 $ 4,311 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
INVESTMENTS | |
Summary of investments in available-for-sale | Continuous Continuous Gross Gross Unrealized Unrealized Unrealized Unrealized Loss Position Loss Position Amortized Holding Holding Fair less than 12 greater than 12 March 31, 2024 Cost Gains Losses Value Months Months Available-for-sale Short-term: Commercial paper $ 157,074 $ 11 $ — $ 157,085 $ — $ — Certificates of deposit 24,831 — — 24,831 — — U.S. government agency securities 101,893 16 54 101,855 54 — U.S. treasuries 530,697 23 390 530,330 390 — Corporate bonds 170,198 32 130 170,100 130 — Long-term: Corporate bonds 8,205 — 43 8,162 43 — Total $ 992,898 $ 82 $ 617 $ 992,363 $ 617 $ — Continuous Continuous Gross Gross Unrealized Unrealized Unrealized Unrealized Loss Position Loss Position Amortized Holding Holding Fair less than 12 greater than 12 December 31, 2023 Cost Gains Losses Value Months Months Available-for-sale Short-term: Commercial paper $ 163,775 $ — $ 1 $ 163,774 $ 1 $ — Certificates of deposit 15,590 — — 15,590 — — Municipal securities 361 — — 361 — — U.S. government agency securities 116,524 90 66 116,548 66 — U.S. treasuries 412,936 205 1,084 412,057 1,084 — Corporate bonds 247,340 89 154 247,275 154 — Long-term: U.S. government agency securities 23,485 51 5 23,531 5 — U.S. treasuries 35,896 79 8 35,967 8 — Corporate bonds 16,903 32 2 16,933 2 — Total $ 1,032,810 $ 546 $ 1,320 $ 1,032,036 $ 1,320 $ — |
Summary of the underlying contractual maturities of investments | March 31, 2024 December 31, 2023 Amortized Cost Fair Value Amortized Cost Fair Value Less than 1 year: Commercial paper $ 157,074 $ 157,085 $ 163,775 $ 163,774 Municipal securities — — 361 361 U.S. government agency securities 101,893 101,855 116,524 116,548 Certificates of deposit 24,831 24,831 15,590 15,590 U.S. treasuries 530,697 530,330 412,936 412,057 Corporate bonds 170,198 170,100 247,340 247,275 Due 1 - 10 years: U.S. treasuries — — 35,896 35,967 U.S. government agency securities — — 23,485 23,531 Corporate bonds 8,205 8,162 16,903 16,933 Total $ 992,898 $ 992,363 $ 1,032,810 $ 1,032,036 |
FAIR VALUE OF CERTAIN FINANCI_2
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | |
Schedule of financial assets and liabilities recorded at fair value on a recurring basis | March 31, 2024 Level 1 Level 2 Level 3 Total Cash $ 973,260 $ — $ — $ 973,260 Money market funds 1,026,552 — — 1,026,552 Certificates of deposit — 74,208 — 74,208 Commercial paper — 193,959 — 193,959 Corporate bonds — 205,924 — 205,924 U.S. government agency securities — 146,214 — 146,214 U.S. treasuries — 948,770 — 948,770 Foreign currency derivatives — (591) — (591) Commodity derivatives — 2,279 — 2,279 Total $ 1,999,812 $ 1,570,763 $ — $ 3,570,575 Amounts included in: Cash and cash equivalents $ 1,999,812 $ 576,712 $ — $ 2,576,524 Short-term investments — 984,201 — 984,201 Accounts receivable, net — 2,981 — 2,981 Other assets — 332 — 332 Investments — 8,162 — 8,162 Accrued liabilities — (1,625) — (1,625) Total $ 1,999,812 $ 1,570,763 $ — $ 3,570,575 December 31, 2023 Level 1 Level 2 Level 3 Total Cash $ 1,105,701 $ — $ — $ 1,105,701 Money market funds 960,873 — — 960,873 Certificates of deposit — 33,824 — 33,824 Commercial paper — 163,774 — 163,774 Corporate bonds — 264,208 — 264,208 Municipal securities — 361 — 361 U.S. government agency securities — 159,585 — 159,585 U.S. treasuries — 641,385 — 641,385 Foreign currency derivatives — (1,083) — (1,083) Commodity derivatives — 4,410 — 4,410 Total $ 2,066,574 $ 1,266,464 $ — $ 3,333,038 Amounts included in: Cash and cash equivalents $ 2,066,574 $ 231,101 $ — $ 2,297,675 Short-term investments — 955,605 — 955,605 Accounts receivable, net — 4,618 — 4,618 Other assets — 316 — 316 Investments — 76,431 — 76,431 Accrued liabilities — (1,607) — (1,607) Total $ 2,066,574 $ 1,266,464 $ — $ 3,333,038 |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |
Schedule of fair value of derivative instruments | Fair value March 31, December 31, Derivatives designated as hedging instruments 2024 2023 Balance Sheet location Assets: Commodity contracts $ 2,379 $ 4,480 Accounts receivable, net Commodity contracts $ 332 $ 316 Other assets Liabilities: Commodity contracts $ (432) $ (386) Accrued liabilities Fair value March 31, December 31, Derivatives not designated as hedging instruments 2024 2023 Balance Sheet location Assets: Foreign currency exchange contracts $ 602 $ 138 Accounts receivable, net Liabilities: Foreign currency exchange contracts $ (1,193) $ (1,221) Accrued liabilities |
Schedule of changes in the fair values of derivatives designated as cash flow hedges had on other comprehensive income ("OCI"), AOCI and earnings | Three-months ended March 31, 2024 Derivatives Gain (loss) designated as Gain (loss) recognized Location of gain (loss) reclassified from hedging instruments in AOCI recognized in income AOCI into income Commodity contracts $ 2,279 Cost of sales $ (966) |
Schedule of net gains (losses) on derivative instruments in the consolidated statements of income | Gain (loss) recognized in income on derivatives Three-months ended Derivatives not designated as Location of gain (loss) March 31, March 31, hedging instruments recognized in income on derivatives 2024 2023 Foreign currency exchange contracts Interest and other income, net $ 5,343 $ (7,852) |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
INVENTORIES | |
Schedule of inventories | March 31, December 31, 2024 2023 Raw materials $ 285,966 $ 330,021 Work in process 1,601 1,403 Finished goods 652,063 639,982 $ 939,630 $ 971,406 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
PROPERTY AND EQUIPMENT, NET | |
Schedule of property and equipment | March 31, December 31, 2024 2023 Land $ 153,340 $ 152,253 Leasehold improvements 38,159 37,946 Furniture and fixtures 11,401 11,422 Office and computer equipment 26,421 25,560 Computer software 5,053 5,344 Equipment 449,321 426,466 Buildings 212,359 211,951 Vehicles 69,937 69,527 Assets under construction 234,627 211,562 1,200,618 1,152,031 Less: accumulated depreciation and amortization (277,328) (261,235) $ 923,290 $ 890,796 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
Schedule of goodwill | Monster Energy® Strategic Alcohol Drinks Brands Brands Other Total Balance at December 31, 2023 $ 693,644 $ 637,999 $ 86,298 $ — $ 1,417,941 Acquisitions — — — — — Balance at March 31, 2024 $ 693,644 $ 637,999 $ 86,298 $ — $ 1,417,941 Monster Energy® Strategic Alcohol Drinks Brands Brands Other Total Balance at December 31, 2022 $ 693,644 $ 637,999 $ 86,298 $ — $ 1,417,941 Acquisitions — — — — — Balance at March 31, 2023 $ 693,644 $ 637,999 $ 86,298 $ — $ 1,417,941 |
Schedule of intangible assets | March 31, December 31, 2024 2023 Amortizing intangibles $ 144,378 $ 144,582 Accumulated amortization (75,982) (74,699) 68,396 69,883 Non-amortizing intangibles 1,362,366 1,357,256 $ 1,430,762 $ 1,427,139 |
Schedule of future estimated amortization expense related to amortizing intangibles | 2024 (from April 1, 2024 to December 31, 2024) $ 4,461 2025 5,947 2026 5,947 2027 5,946 2028 5,945 2029 and thereafter 40,150 $ 68,396 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
Schedule of components of accumulated other comprehensive loss | Accumulated Net Gains Unrealized (Losses) Currency Gains (Losses) on Commodity Translation on Available-for- Derivatives Gains (Losses) Sale Securities Total Balance at December 31, 2023 $ 4,410 $ (128,989) $ (758) $ (125,337) Other comprehensive income (loss) before reclassifications (2,131) (30,695) 223 (32,603) Net current-period other comprehensive income (loss) (2,131) (30,695) 223 (32,603) Balance at March 31, 2024 $ 2,279 $ (159,684) $ (535) $ (157,940) Accumulated Net Gains Unrealized (Losses) Currency Gains (Losses) on Commodity Translation on Available-for- Derivatives Gains (Losses) Sale Securities Total Balance at December 31, 2022 $ — $ (153,230) $ (5,843) $ (159,073) Other comprehensive income (loss) before reclassifications — 7,981 3,181 11,162 Net current-period other comprehensive income (loss) — 7,981 3,181 11,162 Balance at March 31, 2023 $ — $ (145,249) $ (2,662) $ (147,911) |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
STOCK-BASED COMPENSATION | |
Schedule of weighted-average assumptions used to estimate the fair value of options granted | Three-Months Ended March 31, 2024 2023 Dividend yield 0.0 % 0.0 % Expected volatility 27.5 % 27.6 % Risk-free interest rate 4.3 % 3.7 % Expected term 6.4 years 6.3 years |
Schedule of activities with respect to its stock option plans | Weighted- Weighted- Average Average Remaining Number of Exercise Contractual Shares (in Price Per Term (in Aggregate Options thousands) Share years) Intrinsic Value Outstanding at January 1, 2024 24,983 $ 33.64 5.8 $ 598,866 Granted 01/01/24 - 03/31/24 4,332 $ 60.29 Exercised (1,457) $ 26.35 Cancelled or forfeited (14) $ 40.13 Outstanding at March 31, 2024 27,844 $ 38.17 6.3 $ 592,303 Vested and expected to vest in the future at March 31, 2024 26,628 $ 37.55 6.2 $ 582,560 Exercisable at March 31, 2024 15,538 $ 29.22 4.3 $ 467,020 |
Schedule of activities with respect to non-vested restricted stock units and performance share units | Weighted Number of Average Shares (in Grant-Date thousands) Fair Value Non-vested at January 1, 2024 1,964 $ 40.95 Granted 01/01/24 - 03/31/24 1 502 $ 57.04 Vested (821) $ 40.63 Forfeited/cancelled (1) $ 30.36 Non-vested at March 31, 2024 1,644 $ 46.03 1 The grant activity for performance share units is recorded based on the target performance level earning 100% of target performance share units. The actual number of performance share units earned could range from 0% to 200% of target depending on the achievement of pre-established performance goals. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
INCOME TAXES | |
Schedule of roll-forward of the total gross unrecognized tax benefits, not including interest and penalties | Gross Unrecognized Tax Benefits Balance at December 31, 2023 $ 3,109 Additions for tax positions related to the current year 2,900 Additions for tax positions related to the prior years — Decreases for tax positions related to the prior years — Balance at March 31, 2024 $ 6,009 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
EARNINGS PER SHARE | |
Schedule of reconciliation of the weighted average shares used in the basic and diluted earnings per common 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 March 31, 2024 2023 Weighted-average shares outstanding: Basic 1,041,081 1,044,909 Dilutive 10,201 14,160 Diluted 1,051,282 1,059,069 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
SEGMENT INFORMATION | |
Schedule of net revenues and other financial information by segment | Three-Months Ended March 31, 2024 2023 Net sales: Monster Energy® Drinks 1 $ 1,729,051 $ 1,561,669 Strategic Brands 108,444 86,357 Alcohol Brands 56,070 46,290 Other 5,533 4,614 Corporate and unallocated — — $ 1,899,098 $ 1,698,930 Three-Months Ended March 31, 2024 2023 Operating Income: Monster Energy® Drinks 1 $ 628,122 $ 560,819 Strategic Brands 62,019 51,771 Alcohol Brands (6,017) (6,883) Other 1,001 (293) Corporate and unallocated (143,134) (120,350) $ 541,991 $ 485,064 Three-Months Ended March 31, 2024 2023 Income before tax: Monster Energy® Drinks 1 $ 629,160 $ 561,674 Strategic Brands 62,035 51,788 Alcohol Brands (6,016) (6,867) Other 1,016 (293) Corporate and unallocated (108,450) (108,742) $ 577,745 $ 497,560 (1) Includes $9.9 million for both the three-months ended March 31, 2024 and 2023, related to the recognition of deferred revenue. Three-Months Ended March 31, 2024 2023 Depreciation and amortization: Monster Energy® Drinks $ 12,608 $ 8,989 Strategic Brands 229 221 Alcohol Brands 3,738 4,051 Other 40 1,123 Corporate and unallocated 3,860 2,424 $ 20,475 $ 16,808 |
Schedule of goodwill and other intangible assets for the reportable segments | March 31, December 31, 2024 2023 Goodwill and other intangible assets: Monster Energy® Drinks $ 1,668,188 $ 1,663,814 Strategic Brands 982,676 982,471 Alcohol Brands 197,839 198,795 Other — — $ 2,848,703 $ 2,845,080 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
RELATED PARTY TRANSACTIONS | |
Schedule of related party transactions | March 31, December 31, 2024 2023 Accounts receivable, net $ 139,825 $ 135,246 Accounts payable $ (35,923) $ (68,386) Accrued promotional allowances $ (15,260) $ (13,794) Accrued liabilities $ (25,325) $ (19,745) |
REVENUE RECOGNITION - (Details)
REVENUE RECOGNITION - (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
REVENUE RECOGNITION | |
Number of operating segments | 4 |
Number of reportable segments | 4 |
Distribution agreement, revenue recognition period | 20 years |
REVENUE RECOGNITION - Disaggreg
REVENUE RECOGNITION - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
REVENUE RECOGNITION | ||
Total net sales | $ 1,899,098 | $ 1,698,930 |
U.S. and Canada | ||
REVENUE RECOGNITION | ||
Total net sales | 1,206,091 | 1,115,275 |
EMEA | ||
REVENUE RECOGNITION | ||
Total net sales | 395,566 | 308,062 |
Asia Pacific (including Oceania) | ||
REVENUE RECOGNITION | ||
Total net sales | 131,215 | 130,977 |
Latin America and Caribbean | ||
REVENUE RECOGNITION | ||
Total net sales | 166,226 | 144,616 |
Monster Energy Drinks | ||
REVENUE RECOGNITION | ||
Total net sales | 1,729,051 | 1,561,668 |
Monster Energy Drinks | U.S. and Canada | ||
REVENUE RECOGNITION | ||
Total net sales | 1,094,846 | 1,021,328 |
Monster Energy Drinks | EMEA | ||
REVENUE RECOGNITION | ||
Total net sales | 352,229 | 277,111 |
Monster Energy Drinks | Asia Pacific (including Oceania) | ||
REVENUE RECOGNITION | ||
Total net sales | 122,018 | 121,994 |
Monster Energy Drinks | Latin America and Caribbean | ||
REVENUE RECOGNITION | ||
Total net sales | 159,958 | 141,235 |
Strategic Brands | ||
REVENUE RECOGNITION | ||
Total net sales | 108,444 | 86,358 |
Strategic Brands | U.S. and Canada | ||
REVENUE RECOGNITION | ||
Total net sales | 49,642 | 43,043 |
Strategic Brands | EMEA | ||
REVENUE RECOGNITION | ||
Total net sales | 43,337 | 30,951 |
Strategic Brands | Asia Pacific (including Oceania) | ||
REVENUE RECOGNITION | ||
Total net sales | 9,197 | 8,983 |
Strategic Brands | Latin America and Caribbean | ||
REVENUE RECOGNITION | ||
Total net sales | 6,268 | 3,381 |
Alcohol Brands | ||
REVENUE RECOGNITION | ||
Total net sales | 56,070 | 46,290 |
Alcohol Brands | U.S. and Canada | ||
REVENUE RECOGNITION | ||
Total net sales | 56,070 | 46,290 |
Alcohol Brands | EMEA | ||
REVENUE RECOGNITION | ||
Total net sales | 0 | 0 |
Alcohol Brands | Asia Pacific (including Oceania) | ||
REVENUE RECOGNITION | ||
Total net sales | 0 | 0 |
Alcohol Brands | Latin America and Caribbean | ||
REVENUE RECOGNITION | ||
Total net sales | 0 | 0 |
Other | ||
REVENUE RECOGNITION | ||
Total net sales | 5,533 | 4,614 |
Other | U.S. and Canada | ||
REVENUE RECOGNITION | ||
Total net sales | 5,533 | 4,614 |
Other | EMEA | ||
REVENUE RECOGNITION | ||
Total net sales | 0 | 0 |
Other | Asia Pacific (including Oceania) | ||
REVENUE RECOGNITION | ||
Total net sales | 0 | 0 |
Other | Latin America and Caribbean | ||
REVENUE RECOGNITION | ||
Total net sales | $ 0 | $ 0 |
REVENUE RECOGNITION - Contract
REVENUE RECOGNITION - Contract Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Contract Liabilities | |||
Deferred revenue | $ 242.5 | $ 246.2 | |
Deferred revenue recognized in net sales | $ 9.9 | $ 9.9 |
LEASES - Lease Terms (Details)
LEASES - Lease Terms (Details) | 3 Months Ended |
Mar. 31, 2024 | |
LEASES | |
Operating leases, options to extend | true |
Finance leases, options to extend | true |
Operating leases, options to terminate | true |
Finance leases, options to terminate | true |
Minimum | |
LEASES | |
Operating leases, lease term (in years) | 1 year |
Finance leases, lease term (in years) | 1 year |
Maximum | |
LEASES | |
Operating leases, lease term (in years) | 10 years |
Finance leases, lease term (in years) | 11 years |
Operating leases, renewal lease term (in years) | 5 years |
Finance leases, renewal lease term (in years) | 5 years |
Operating leases, termination period (in years) | 1 year |
Finance leases, termination period (in years) | 1 year |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
LEASES | ||
Operating lease cost | $ 3,802 | $ 2,467 |
Short-term lease cost | 2,670 | 979 |
Variable lease cost | 213 | 215 |
Finance leases: | ||
Amortization of right-of-use assets | 595 | 123 |
Interest on lease liabilities | 91 | 14 |
Finance lease cost | 686 | 137 |
Total lease cost | $ 7,371 | $ 3,798 |
LEASES - Supplemental cash flow
LEASES - Supplemental cash flow information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash outflows from operating leases | $ 3,607 | $ 2,391 |
Operating cash outflows from finance leases | 91 | 14 |
Financing cash outflows from finance leases | 2,897 | 598 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Finance leases | 747 | 2,227 |
Operating leases | $ 1,091 | $ 313 |
LEASES - Supplemental balance s
LEASES - Supplemental balance sheet information (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
LEASES | ||
Right-of-use assets | $ 56,421 | $ 58,845 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets, Noncurrent | Other Assets, Noncurrent |
Current lease liabilities | $ 11,122 | $ 11,088 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued Liabilities, Current | Accrued Liabilities, Current |
Noncurrent lease liabilities | $ 46,474 | $ 48,459 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Total operating lease liabilities | $ 57,596 | $ 59,547 |
Finance leases: | ||
Right-of-use assets | $ 10,091 | $ 11,147 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net |
Current lease liabilities | $ 4,297 | $ 6,449 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities, Current | Accrued Liabilities, Current |
Noncurrent lease liabilities | $ 14 | $ 19 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Total finance lease liabilities | $ 4,311 | $ 6,468 |
LEASES - Weighted-average remai
LEASES - Weighted-average remaining lease term and weighted-average discount rate (Details) | Mar. 31, 2024 | Dec. 31, 2023 |
LEASES | ||
Weighted-average remaining lease term (years), Operating leases | 6 years 2 months 12 days | 6 years 3 months 18 days |
Weighted-average remaining lease term (years), Finance leases | 6 months | 8 months 12 days |
Weighted-average discount rate, Operating leases | 4.70% | 4.70% |
Weighted-average discount rate, Finance leases | 6.30% | 6.30% |
LEASES - Undiscounted future le
LEASES - Undiscounted future lease payments for operating and finance leases (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Operating Leases | ||
2024 (from April 1, 2024 to December 31, 2024) | $ 10,213 | |
2025 | 11,942 | |
2026 | 9,824 | |
2027 | 9,242 | |
2028 | 7,709 | |
2029 and thereafter | 17,820 | |
Total lease payments | 66,750 | |
Less imputed interest | (9,154) | |
Total operating lease liabilities | 57,596 | $ 59,547 |
Finance Leases | ||
2024 (from April 1, 2024 to December 31, 2024) | 4,275 | |
2025 | 118 | |
2026 | 2 | |
2028 | 0 | |
2029 and thereafter | 0 | |
Total lease payments | 4,395 | |
Less imputed interest | (84) | |
Total finance lease liabilities | $ 4,311 | $ 6,468 |
INVESTMENTS (Details)
INVESTMENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Available-for-sale | ||
Amortized Cost | $ 992,898 | $ 1,032,810 |
Gross Unrealized Holding Gains | 82 | 546 |
Gross Unrealized Holding Losses | 617 | 1,320 |
Fair Value | 992,363 | 1,032,036 |
Continuous Unrealized Loss Position less than 12 Months | 617 | 1,320 |
Continuous Unrealized Loss Position greater than 12 Months | 0 | 0 |
Short-term | Commercial paper | ||
Available-for-sale | ||
Amortized Cost | 157,074 | 163,775 |
Gross Unrealized Holding Gains | 11 | 0 |
Gross Unrealized Holding Losses | 0 | 1 |
Fair Value | 157,085 | 163,774 |
Continuous Unrealized Loss Position less than 12 Months | 0 | 1 |
Continuous Unrealized Loss Position greater than 12 Months | 0 | 0 |
Short-term | Certificates of deposit | ||
Available-for-sale | ||
Amortized Cost | 24,831 | 15,590 |
Gross Unrealized Holding Gains | 0 | 0 |
Gross Unrealized Holding Losses | 0 | 0 |
Fair Value | 24,831 | 15,590 |
Continuous Unrealized Loss Position less than 12 Months | 0 | 0 |
Continuous Unrealized Loss Position greater than 12 Months | 0 | 0 |
Short-term | Municipal securities | ||
Available-for-sale | ||
Amortized Cost | 361 | |
Gross Unrealized Holding Gains | 0 | |
Gross Unrealized Holding Losses | 0 | |
Fair Value | 361 | |
Continuous Unrealized Loss Position less than 12 Months | 0 | |
Continuous Unrealized Loss Position greater than 12 Months | 0 | |
Short-term | U.S. government agency securities | ||
Available-for-sale | ||
Amortized Cost | 101,893 | 116,524 |
Gross Unrealized Holding Gains | 16 | 90 |
Gross Unrealized Holding Losses | 54 | 66 |
Fair Value | 101,855 | 116,548 |
Continuous Unrealized Loss Position less than 12 Months | 54 | 66 |
Continuous Unrealized Loss Position greater than 12 Months | 0 | 0 |
Short-term | U.S. treasuries | ||
Available-for-sale | ||
Amortized Cost | 530,697 | 412,936 |
Gross Unrealized Holding Gains | 23 | 205 |
Gross Unrealized Holding Losses | 390 | 1,084 |
Fair Value | 530,330 | 412,057 |
Continuous Unrealized Loss Position less than 12 Months | 390 | 1,084 |
Continuous Unrealized Loss Position greater than 12 Months | 0 | 0 |
Short-term | Corporate bonds | ||
Available-for-sale | ||
Amortized Cost | 170,198 | 247,340 |
Gross Unrealized Holding Gains | 32 | 89 |
Gross Unrealized Holding Losses | 130 | 154 |
Fair Value | 170,100 | 247,275 |
Continuous Unrealized Loss Position less than 12 Months | 130 | 154 |
Continuous Unrealized Loss Position greater than 12 Months | 0 | 0 |
Long-term | U.S. government agency securities | ||
Available-for-sale | ||
Amortized Cost | 23,485 | |
Gross Unrealized Holding Gains | 51 | |
Gross Unrealized Holding Losses | 5 | |
Fair Value | 23,531 | |
Continuous Unrealized Loss Position less than 12 Months | 5 | |
Continuous Unrealized Loss Position greater than 12 Months | 0 | |
Long-term | U.S. treasuries | ||
Available-for-sale | ||
Amortized Cost | 35,896 | |
Gross Unrealized Holding Gains | 79 | |
Gross Unrealized Holding Losses | 8 | |
Fair Value | 35,967 | |
Continuous Unrealized Loss Position less than 12 Months | 8 | |
Continuous Unrealized Loss Position greater than 12 Months | 0 | |
Long-term | Corporate bonds | ||
Available-for-sale | ||
Amortized Cost | 8,205 | 16,903 |
Gross Unrealized Holding Gains | 0 | 32 |
Gross Unrealized Holding Losses | 43 | 2 |
Fair Value | 8,162 | 16,933 |
Continuous Unrealized Loss Position less than 12 Months | 43 | 2 |
Continuous Unrealized Loss Position greater than 12 Months | $ 0 | $ 0 |
INVESTMENTS - Maturity Period (
INVESTMENTS - Maturity Period (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
INVESTMENTS | ||
Amortized Cost | $ 992,898 | $ 1,032,810 |
Fair Value | 992,363 | 1,032,036 |
Commercial paper | Less than 1 year | ||
INVESTMENTS | ||
Amortized Cost | 157,074 | 163,775 |
Fair Value | 157,085 | 163,774 |
Municipal securities | Less than 1 year | ||
INVESTMENTS | ||
Amortized Cost | 0 | 361 |
Fair Value | 0 | 361 |
U.S. government agency securities | Less than 1 year | ||
INVESTMENTS | ||
Amortized Cost | 101,893 | 116,524 |
Fair Value | 101,855 | 116,548 |
U.S. government agency securities | Due 1 - 10 years | ||
INVESTMENTS | ||
Amortized Cost | 0 | 23,485 |
Fair Value | 0 | 23,531 |
Certificates of deposit | Less than 1 year | ||
INVESTMENTS | ||
Amortized Cost | 24,831 | 15,590 |
Fair Value | 24,831 | 15,590 |
U.S. treasuries | Less than 1 year | ||
INVESTMENTS | ||
Amortized Cost | 530,697 | 412,936 |
Fair Value | 530,330 | 412,057 |
U.S. treasuries | Due 1 - 10 years | ||
INVESTMENTS | ||
Amortized Cost | 0 | 35,896 |
Fair Value | 0 | 35,967 |
Corporate bonds | Less than 1 year | ||
INVESTMENTS | ||
Amortized Cost | 170,198 | 247,340 |
Fair Value | 170,100 | 247,275 |
Corporate bonds | Due 1 - 10 years | ||
INVESTMENTS | ||
Amortized Cost | 8,205 | 16,903 |
Fair Value | $ 8,162 | $ 16,933 |
FAIR VALUE OF CERTAIN FINANCI_3
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Cash and cash equivalents | $ 2,576,524 | $ 2,297,675 |
Short-term investments | 984,201 | 955,605 |
Investments | 8,162 | 76,431 |
Asset transfers between Level 1 and Level 2 measurements | 0 | 0 |
Total fair value | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Cash | 973,260 | 1,105,701 |
Assets measured at fair value | 3,570,575 | 3,333,038 |
Fair value liabilities | (591) | (1,083) |
Cash and cash equivalents | 2,576,524 | 2,297,675 |
Short-term investments | 984,201 | 955,605 |
Accounts receivable, net | 2,981 | 4,618 |
Other assets | 332 | 316 |
Investments | 8,162 | 76,431 |
Accrued liabilities | (1,625) | (1,607) |
Total fair value | Money market funds | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Assets measured at fair value | 1,026,552 | 960,873 |
Total fair value | Certificates of deposit | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Assets measured at fair value | 74,208 | 33,824 |
Total fair value | Commercial paper | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Assets measured at fair value | 193,959 | 163,774 |
Total fair value | Corporate bonds | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Assets measured at fair value | 205,924 | 264,208 |
Total fair value | Municipal securities | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Assets measured at fair value | 361 | |
Total fair value | U.S. government agency securities | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Assets measured at fair value | 146,214 | 159,585 |
Total fair value | U.S. treasuries | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Assets measured at fair value | 948,770 | 641,385 |
Total fair value | Commodity derivatives | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Fair value liabilities | 2,279 | 4,410 |
Level 1 | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Cash | 973,260 | 1,105,701 |
Assets measured at fair value | 1,999,812 | 2,066,574 |
Fair value liabilities | 0 | 0 |
Cash and cash equivalents | 1,999,812 | 2,066,574 |
Short-term investments | 0 | 0 |
Accounts receivable, net | 0 | 0 |
Other assets | 0 | |
Investments | 0 | 0 |
Accrued liabilities | 0 | 0 |
Level 1 | Money market funds | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Assets measured at fair value | 1,026,552 | 960,873 |
Level 1 | Certificates of deposit | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Assets measured at fair value | 0 | 0 |
Level 1 | Commercial paper | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Assets measured at fair value | 0 | 0 |
Level 1 | Corporate bonds | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Assets measured at fair value | 0 | 0 |
Level 1 | Municipal securities | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Assets measured at fair value | 0 | |
Level 1 | U.S. government agency securities | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Assets measured at fair value | 0 | 0 |
Level 1 | U.S. treasuries | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Assets measured at fair value | 0 | 0 |
Level 2 | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Cash | 0 | 0 |
Assets measured at fair value | 1,570,763 | 1,266,464 |
Fair value liabilities | (591) | (1,083) |
Cash and cash equivalents | 576,712 | 231,101 |
Short-term investments | 984,201 | 955,605 |
Accounts receivable, net | 2,981 | 4,618 |
Other assets | 332 | 316 |
Investments | 8,162 | 76,431 |
Accrued liabilities | (1,625) | (1,607) |
Level 2 | Money market funds | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Assets measured at fair value | 0 | 0 |
Level 2 | Certificates of deposit | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Assets measured at fair value | 74,208 | 33,824 |
Level 2 | Commercial paper | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Assets measured at fair value | 193,959 | 163,774 |
Level 2 | Corporate bonds | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Assets measured at fair value | 205,924 | 264,208 |
Level 2 | Municipal securities | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Assets measured at fair value | 361 | |
Level 2 | U.S. government agency securities | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Assets measured at fair value | 146,214 | 159,585 |
Level 2 | U.S. treasuries | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Assets measured at fair value | 948,770 | 641,385 |
Level 2 | Commodity derivatives | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Fair value liabilities | 2,279 | 4,410 |
Level 3 | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Cash | 0 | 0 |
Assets measured at fair value | 0 | 0 |
Fair value liabilities | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Accounts receivable, net | 0 | 0 |
Other assets | 0 | |
Investments | 0 | 0 |
Accrued liabilities | 0 | 0 |
Level 3 | Money market funds | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Assets measured at fair value | 0 | 0 |
Level 3 | Certificates of deposit | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Assets measured at fair value | 0 | 0 |
Level 3 | Commercial paper | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Assets measured at fair value | 0 | 0 |
Level 3 | Corporate bonds | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Assets measured at fair value | 0 | 0 |
Level 3 | Municipal securities | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Assets measured at fair value | 0 | |
Level 3 | U.S. government agency securities | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Assets measured at fair value | 0 | 0 |
Level 3 | U.S. treasuries | ||
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES | ||
Assets measured at fair value | $ 0 | $ 0 |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Fair value (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Derivatives designated as hedging instruments | Accounts receivables, net | Commodity contracts | ||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||
Fair value assets | $ 2,379 | $ 4,480 |
Derivatives designated as hedging instruments | Other assets | Commodity contracts | ||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||
Fair value assets | 332 | 316 |
Derivatives designated as hedging instruments | Accrued liabilities | Commodity contracts | ||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||
Fair value liabilities | (432) | (386) |
Derivatives not designated as hedging instruments | Accounts receivables, net | Foreign currency exchange contracts | ||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||
Fair value assets | 602 | 138 |
Derivatives not designated as hedging instruments | Accrued liabilities | Foreign currency exchange contracts | ||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||
Fair value liabilities | $ (1,193) | $ (1,221) |
DERIVATIVE INSTRUMENTS AND HE_4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Hedging designation (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |||
Gain (loss) recognized in AOCI | $ (2,131) | $ 0 | |
Derivatives designated as hedging instruments | Commodity derivatives | Cash Flow Hedging | |||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |||
Notional value | 126,100 | $ 98,300 | |
Gain (loss) recognized in AOCI | $ 2,279 | ||
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of Goods and Services Sold | ||
Gain (loss) reclassified from AOCI into income | $ (966) | ||
Amount to be reclassified | $ 1,900 |
DERIVATIVE INSTRUMENTS AND HE_5
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Non hedging designation (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |||
Collateral amount | $ 600 | ||
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 | |||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |||
Notional value | $ 230,500 | $ 282,700 | |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | |
Amount of loss recognized in income on derivatives | $ 5,343 | $ (7,852) |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
INVENTORIES | ||
Raw materials | $ 285,966 | $ 330,021 |
Work in process | 1,601 | 1,403 |
Finished goods | 652,063 | 639,982 |
Inventories | $ 939,630 | $ 971,406 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
PROPERTY AND EQUIPMENT, NET | |||
Property and equipment, gross | $ 1,200,618 | $ 1,152,031 | |
Less: accumulated depreciation and amortization | (277,328) | (261,235) | |
Property and equipment, net | 923,290 | 890,796 | |
Total depreciation and amortization expense | 19,200 | $ 14,800 | |
Land | |||
PROPERTY AND EQUIPMENT, NET | |||
Property and equipment, gross | 153,340 | 152,253 | |
Leasehold improvements | |||
PROPERTY AND EQUIPMENT, NET | |||
Property and equipment, gross | 38,159 | 37,946 | |
Furniture and fixtures | |||
PROPERTY AND EQUIPMENT, NET | |||
Property and equipment, gross | 11,401 | 11,422 | |
Office and computer equipment | |||
PROPERTY AND EQUIPMENT, NET | |||
Property and equipment, gross | 26,421 | 25,560 | |
Computer software | |||
PROPERTY AND EQUIPMENT, NET | |||
Property and equipment, gross | 5,053 | 5,344 | |
Equipment | |||
PROPERTY AND EQUIPMENT, NET | |||
Property and equipment, gross | 449,321 | 426,466 | |
Buildings | |||
PROPERTY AND EQUIPMENT, NET | |||
Property and equipment, gross | 212,359 | 211,951 | |
Vehicles | |||
PROPERTY AND EQUIPMENT, NET | |||
Property and equipment, gross | 69,937 | 69,527 | |
Assets under construction | |||
PROPERTY AND EQUIPMENT, NET | |||
Property and equipment, gross | $ 234,627 | $ 211,562 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | ||
Goodwill, beginning balance | $ 1,417,941 | $ 1,417,941 |
Acquisitions | 0 | 0 |
Goodwill, ending balance | 1,417,941 | 1,417,941 |
Monster Energy Drinks | ||
GOODWILL AND OTHER INTANGIBLE ASSETS | ||
Goodwill, beginning balance | 693,644 | 693,644 |
Acquisitions | 0 | 0 |
Goodwill, ending balance | 693,644 | 693,644 |
Strategic Brands | ||
GOODWILL AND OTHER INTANGIBLE ASSETS | ||
Goodwill, beginning balance | 637,999 | 637,999 |
Acquisitions | 0 | 0 |
Goodwill, ending balance | 637,999 | 637,999 |
Alcohol Brands | ||
GOODWILL AND OTHER INTANGIBLE ASSETS | ||
Goodwill, beginning balance | 86,298 | 86,298 |
Acquisitions | 0 | 0 |
Goodwill, ending balance | 86,298 | 86,298 |
Other | ||
GOODWILL AND OTHER INTANGIBLE ASSETS | ||
Goodwill, beginning balance | 0 | 0 |
Acquisitions | 0 | 0 |
Goodwill, ending balance | $ 0 | $ 0 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Intangible assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |||
Amortizing intangibles | $ 144,378 | $ 144,582 | |
Accumulated amortization | (75,982) | (74,699) | |
Amortizing intangibles, net | 68,396 | 69,883 | |
Non-amortizing intangibles | 1,362,366 | 1,357,256 | |
Intangibles, net | 1,430,762 | $ 1,427,139 | |
Amortization expense | $ 1,300 | $ 2,000 | |
Minimum | |||
GOODWILL AND OTHER INTANGIBLE ASSETS | |||
Useful life of intangible assets | 10 years | ||
Maximum | |||
GOODWILL AND OTHER INTANGIBLE ASSETS | |||
Useful life of intangible assets | 15 years |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Amortization expense (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Future estimated amortization expense related to amortizing intangibles | ||
2024 (from April 1, 2024 to December 31, 2024) | $ 4,461 | |
2025 | 5,947 | |
2026 | 5,947 | |
2027 | 5,946 | |
2028 | 5,945 | |
2029 and thereafter | 40,150 | |
Amortizing intangibles, net | $ 68,396 | $ 69,883 |
DISTRIBUTION AGREEMENTS (Detail
DISTRIBUTION AGREEMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
DISTRIBUTION AGREEMENTS | ||
Distribution agreement (in years) | 20 years | |
Revenue recognized | $ 9.9 | $ 9.9 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES | ||
Aggregate contractual obligations | $ 451.1 | |
Loss contingencies | 0.3 | $ 0.3 |
HSBC Bank (China) Company Limited | Line of credit | ||
COMMITMENTS AND CONTINGENCIES | ||
Maximum borrowing capacity | $ 15 | |
Interest rate (as a percent) | 5.50% | |
Amount outstanding | $ 0 | |
Raw material items | ||
COMMITMENTS AND CONTINGENCIES | ||
Purchase commitments | $ 345.5 | |
Obligation term ( in years) | 1 year |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Components of accumulated other comprehensive loss: | ||
Balance at the beginning of the period | $ (125,337) | $ (159,073) |
Other comprehensive income (loss) before reclassifications | (32,603) | 11,162 |
Net current-period other comprehensive income (loss) | (32,603) | 11,162 |
Balance at the end of the period | (157,940) | (147,911) |
Accumulated Net Gains (Losses) on Commodity Derivatives | ||
Components of accumulated other comprehensive loss: | ||
Balance at the beginning of the period | 4,410 | 0 |
Other comprehensive income (loss) before reclassifications | (2,131) | 0 |
Net current-period other comprehensive income (loss) | (2,131) | 0 |
Balance at the end of the period | 2,279 | 0 |
Currency Translation Gains (Losses) | ||
Components of accumulated other comprehensive loss: | ||
Balance at the beginning of the period | (128,989) | (153,230) |
Other comprehensive income (loss) before reclassifications | (30,695) | 7,981 |
Net current-period other comprehensive income (loss) | (30,695) | 7,981 |
Balance at the end of the period | (159,684) | (145,249) |
Unrealized Gains (Losses) on Available-for-Sale Securities | ||
Components of accumulated other comprehensive loss: | ||
Balance at the beginning of the period | (758) | (5,843) |
Other comprehensive income (loss) before reclassifications | 223 | 3,181 |
Net current-period other comprehensive income (loss) | 223 | 3,181 |
Balance at the end of the period | $ (535) | $ (2,662) |
TREASURY STOCK (Details)
TREASURY STOCK (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |||
Mar. 31, 2024 | May 07, 2024 | Nov. 07, 2023 | Nov. 02, 2022 | |
TREASURY STOCK | ||||
Number of shares repurchased of common stock from employees in lieu of cash or withholding taxes due | 0.4 | |||
Cash payment for repurchase of common stock from employees in lieu of cash or withholding taxes due | $ 23 | |||
Subsequent event | ||||
TREASURY STOCK | ||||
Share repurchase program, authorized remaining amount | $ 642.4 | |||
November 2022 Repurchase Plan | ||||
TREASURY STOCK | ||||
Common stock repurchased (in shares) | 1.8 | |||
Repurchase price of stock | $ 97.2 | |||
Share repurchase program, authorized amount | $ 500 | |||
Average purchase price (in dollars per share) | $ 54.96 | |||
November 2022 Repurchase Plan | Subsequent event | ||||
TREASURY STOCK | ||||
Share repurchase program, authorized remaining amount | 142.4 | |||
November 2023 Repurchase Plan | ||||
TREASURY STOCK | ||||
Common stock repurchased (in shares) | 0 | |||
Share repurchase program, authorized amount | $ 500 | |||
November 2023 Repurchase Plan | Subsequent event | ||||
TREASURY STOCK | ||||
Share repurchase program, authorized remaining amount | $ 500 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 USD ($) plan | Mar. 31, 2023 USD ($) | |
STOCK-BASED COMPENSATION | ||
Stock-based compensation plans | plan | 2 | |
Compensation expense on share-based plans | $ 22.5 | $ 16.1 |
Excess tax benefit realized for tax deductions from non-qualified stock option exercises and disqualifying dispositions of incentive stock options | $ 7.5 | $ 25.9 |
STOCK-BASED COMPENSATION - Fair
STOCK-BASED COMPENSATION - Fair Value Assumptions (Details) - Employee Stock Option | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Weighted-average assumptions used to estimate the fair value of options granted | ||
Dividend yield (as a percent) | 0% | 0% |
Expected volatility (as a percent) | 27.50% | 27.60% |
Risk-free interest rate (as a percent) | 4.30% | 3.70% |
Expected term | 6 years 4 months 24 days | 6 years 3 months 18 days |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock Option Activity (Details) - Employee Stock Option - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Stock options, Number of Shares | ||
Balance at the beginning of the period (in shares) | 24,983 | |
Granted (in shares) | 4,332 | |
Exercised (in shares) | (1,457) | |
Cancelled or forfeited (in shares) | (14) | |
Balance at the end of the period (in shares) | 27,844 | 24,983 |
Vested and expected to vest in the future at the end of the period (in shares) | 26,628 | |
Exercisable at the end of the period (in shares) | 15,538 | |
Stock options, Weighted-Average Exercise Price Per Share | ||
Balance at the beginning of the period (in dollars per share) | $ 33.64 | |
Granted (in dollars per share) | 60.29 | |
Exercised (in dollars per share) | 26.35 | |
Cancelled or forfeited (in dollars per share) | 40.13 | |
Balance at the end of the period (in dollars per share) | 38.17 | $ 33.64 |
Vested and expected to vest in the future at the end of the period (in dollars per share) | 37.55 | |
Exercisable at the end of the period (in dollars per share) | $ 29.22 | |
Weighted-Average Remaining Contractual Term (in years) | ||
Weighted-Average Remaining Contractual Terms (in years) | 6 years 3 months 18 days | 5 years 9 months 18 days |
Vested and expected to vest in the future at the end of the period | 6 years 2 months 12 days | |
Exercisable at the end of the period | 4 years 3 months 18 days | |
Aggregate Intrinsic Value | ||
Balance at the beginning of the period | $ 598,866 | |
Balance at the end of the period | 592,303 | $ 598,866 |
Vested and expected to vest in the future at the end of the period | 582,560 | |
Exercisable at the end of the period | $ 467,020 |
STOCK-BASED COMPENSATION - Equi
STOCK-BASED COMPENSATION - Equity Awards (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Employee Stock Option | ||
STOCK-BASED COMPENSATION | ||
Weighted-average grant-date fair value of options granted (in dollars per share) | $ 22.69 | $ 18.23 |
Total intrinsic value of options exercised | $ 47.6 | $ 131 |
Cash received from option exercises | $ 38.4 | $ 36.3 |
Stock units expected to vest (in shares) | 26,628 | |
Total unrecognized compensation expense related to non-vested shares granted to employees | $ 174.7 | |
Cost expected to be recognized over a weighted-average period | 3 years 7 months 6 days | |
Restricted Stock Units, and Performance Share Units | ||
STOCK-BASED COMPENSATION | ||
Stock units expected to vest (in shares) | 1,600 | |
Total unrecognized compensation expense related to non-vested shares granted to employees | $ 49.6 | |
Cost expected to be recognized over a weighted-average period | 1 year 9 months 18 days | |
Number of Shares | ||
Non-vested at the beginning of the period (in shares) | 1,964 | |
Granted (in shares) | 502 | |
Vested (in shares) | (821) | |
Forfeited/cancelled (in shares) | (1) | |
Non-vested at the end of the period (in shares) | 1,644 | |
Weighted Average Grant-Date Fair Value | ||
Non-vested at the beginning of the period (in dollars per share) | $ 40.95 | |
Granted (in dollars per share) | 57.04 | |
Vested (in dollars per share) | 40.63 | |
Forfeited/cancelled (in dollars per share) | 30.36 | |
Non-vested at the end of the period (in dollars per share) | 46.03 | |
Restricted Stock Units, and/or Performance Share Units | ||
STOCK-BASED COMPENSATION | ||
Weighted-average grant-date fair value of options granted (in dollars per share) | $ 60.27 | $ 50.83 |
Performance Share Units | ||
STOCK-BASED COMPENSATION | ||
Percentage of target performance | 100% | |
Performance Share Units | Minimum | ||
STOCK-BASED COMPENSATION | ||
Percentage of target performance | 0% | |
Performance Share Units | Maximum | ||
STOCK-BASED COMPENSATION | ||
Percentage of target performance | 200% | |
Other Share-Based Awards | ||
STOCK-BASED COMPENSATION | ||
Total unrecognized compensation expense related to non-vested shares granted to employees | $ 0.8 | |
Cost expected to be recognized over a weighted-average period | 1 year 3 months 18 days |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefit Rollforward (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
INCOME TAXES | |
Balance at the beginning of the period | $ 3,109 |
Additions for tax positions related to the current year | 2,900 |
Additions for tax positions related to the prior year | 0 |
Decreases for tax positions related to prior years | 0 |
Balance at the end of the period | 6,009 |
Accrued interest and penalties related to unrecognized tax benefits | $ 700 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Weighted-average shares outstanding: | ||
Basic | 1,041,081 | 1,044,909 |
Dilutive | 10,201 | 14,160 |
Diluted | 1,051,282 | 1,059,069 |
Totaling options and awards outstanding (in shares) | 5,000 | 2,600 |
SEGMENT INFORMATION - Net Reven
SEGMENT INFORMATION - Net Revenues (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) segment | Mar. 31, 2023 USD ($) | |
SEGMENT INFORMATION | ||
Number of reportable segments | segment | 4 | |
Number of operating segments | segment | 4 | |
Net Sales | $ 1,899,098 | $ 1,698,930 |
Operating Income | 541,991 | 485,064 |
Income before tax | 577,745 | 497,560 |
Depreciation and amortization | 20,475 | 16,808 |
Recognition of deferred revenue | 9,900 | 9,900 |
Corporate and unallocated | ||
SEGMENT INFORMATION | ||
Net Sales | 0 | 0 |
Operating Income | (143,134) | (120,350) |
Income before tax | (108,450) | (108,742) |
Depreciation and amortization | 3,860 | 2,424 |
Monster Energy Drinks | ||
SEGMENT INFORMATION | ||
Net Sales | 1,729,051 | 1,561,668 |
Monster Energy Drinks | Operating segment | ||
SEGMENT INFORMATION | ||
Net Sales | 1,729,051 | 1,561,669 |
Operating Income | 628,122 | 560,819 |
Income before tax | 629,160 | 561,674 |
Depreciation and amortization | 12,608 | 8,989 |
Recognition of deferred revenue | 9,900 | 9,900 |
Strategic Brands | ||
SEGMENT INFORMATION | ||
Net Sales | 108,444 | 86,358 |
Strategic Brands | Operating segment | ||
SEGMENT INFORMATION | ||
Net Sales | 108,444 | 86,357 |
Operating Income | 62,019 | 51,771 |
Income before tax | 62,035 | 51,788 |
Depreciation and amortization | 229 | 221 |
Alcohol Brands | ||
SEGMENT INFORMATION | ||
Net Sales | 56,070 | 46,290 |
Alcohol Brands | Operating segment | ||
SEGMENT INFORMATION | ||
Net Sales | 56,070 | 46,290 |
Operating Income | (6,017) | (6,883) |
Income before tax | (6,016) | (6,867) |
Depreciation and amortization | 3,738 | 4,051 |
Other | ||
SEGMENT INFORMATION | ||
Net Sales | 5,533 | 4,614 |
Other | Operating segment | ||
SEGMENT INFORMATION | ||
Net Sales | 5,533 | 4,614 |
Operating Income | 1,001 | (293) |
Income before tax | 1,016 | (293) |
Depreciation and amortization | $ 40 | $ 1,123 |
SEGMENT INFORMATION - Expenses
SEGMENT INFORMATION - Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
SEGMENT INFORMATION | ||
Stock-based compensation expense | $ 22.5 | $ 16.1 |
Corporate and unallocated | ||
SEGMENT INFORMATION | ||
Payroll costs | 98.6 | 80.3 |
Stock-based compensation expense | 22 | 15.7 |
Professional service expenses | 20 | 22.1 |
Other operating expenses | $ 24.5 | $ 18 |
SEGMENT INFORMATION - Concentra
SEGMENT INFORMATION - Concentration Risk (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
SEGMENT INFORMATION | ||
Net Sales | $ 1,899,098 | $ 1,698,930 |
Sales | Outside United States | ||
SEGMENT INFORMATION | ||
Net Sales | $ 744,100 | $ 622,900 |
Sales | Customer concentration | Outside United States | ||
SEGMENT INFORMATION | ||
Percentage of net sales | 39% | 37% |
Coca-Cola Europacific Partners | Sales | Customer concentration | ||
SEGMENT INFORMATION | ||
Percentage of net sales | 14% | 13% |
Coca-Cola Consolidated, Inc | Sales | Customer concentration | ||
SEGMENT INFORMATION | ||
Percentage of net sales | 10% | |
Reyes Holdings, LLC | Sales | Customer concentration | ||
SEGMENT INFORMATION | ||
Percentage of net sales | 9% |
SEGMENT INFORMATION - Goodwill
SEGMENT INFORMATION - Goodwill and other intangible assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
SEGMENT INFORMATION | ||
Goodwill and other intangible assets | $ 2,848,703 | $ 2,845,080 |
Monster Energy Drinks | Operating segment | ||
SEGMENT INFORMATION | ||
Goodwill and other intangible assets | 1,668,188 | 1,663,814 |
Strategic Brands | Operating segment | ||
SEGMENT INFORMATION | ||
Goodwill and other intangible assets | 982,676 | 982,471 |
Alcohol Brands | Operating segment | ||
SEGMENT INFORMATION | ||
Goodwill and other intangible assets | $ 197,839 | $ 198,795 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 USD ($) director | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
RELATED PARTY TRANSACTIONS | |||
Net Sales | $ 1,899,098 | $ 1,698,930 | |
Expenses incurred in connection with materials or services provided by a related party | 485,138 | 412,785 | |
Monster Energy Drinks | |||
RELATED PARTY TRANSACTIONS | |||
Net Sales | 1,729,051 | 1,561,668 | |
Related Party | Coca Cola Company | |||
RELATED PARTY TRANSACTIONS | |||
Net Sales | 41,700 | 35,100 | |
Purchases from related party | $ 8,000 | 6,500 | |
Related Party | Coca Cola Company | Voting Interests | |||
RELATED PARTY TRANSACTIONS | |||
Related Party Ownership Interest (as a percent) | 19.60% | ||
Related Party | TCCC Subsidiaries and TCCC Related parties | |||
RELATED PARTY TRANSACTIONS | |||
Commission expenses | $ 22,500 | 15,700 | |
Related Party | TCCC Subsidiaries and TCCC Related parties | Monster Energy Drinks | |||
RELATED PARTY TRANSACTIONS | |||
Contract manufacturing expenses | 9,000 | 7,400 | |
Related Party | TCCC Related Parties and TCCC Independent Bottlers | Operating expense | |||
RELATED PARTY TRANSACTIONS | |||
Commission expenses | 9,700 | 8,800 | |
Related Party | TCCC Subsidiaries | |||
RELATED PARTY TRANSACTIONS | |||
Accounts receivable, net | 139,825 | $ 135,246 | |
Accounts payable | (35,923) | (68,386) | |
Accrued promotional allowances | (15,260) | (13,794) | |
Accrued liabilities | $ (25,325) | $ (19,745) | |
Principal Owners | |||
RELATED PARTY TRANSACTIONS | |||
Number of directors | director | 1 | ||
Expenses incurred in connection with materials or services provided by a related party | $ 1,900 | $ 1,100 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent event - Dutch auction tender offer $ in Billions | May 01, 2024 USD ($) |
Maximum | |
SUBSEQUENT EVENTS | |
Repurchase price of stock | $ 3 |
Forecast | |
SUBSEQUENT EVENTS | |
Cash on hand | 2 |
Combined borrowings | $ 1 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Rule 10b5-1 Arrangement Modified | false |
Non-Rule 10b5-1 Arrangement Modified | false |